To amend section 5747.98 and to enact section 5747.74 of the Revised Code to create an income tax credit for employers that provide a marriage bonus and to name this act the Invest in Marriage Act.
Summary
HB342 would create a new nonrefundable Ohio income tax credit for employers that pay a “marriage bonus” to an employee in the calendar year the employee marries, provided the employer has adopted a qualifying policy offering at least $1,000. The credit would equal $1,000 per eligible employee, and an employer could claim it for the year the bonus is paid. If the employer is a pass-through entity or a taxpayer with an ownership interest in the employer, the credit would flow through in proportion to that ownership interest.
The bill caps the total amount of marriage bonuses eligible for the credit at $50,000 per employer per taxable year, which effectively limits the annual credit exposure. It also allows unused credit amounts to be carried forward for up to five years, subject to the usual ordering rules for Ohio tax credits. The Tax Commissioner would be authorized to require documentation, including the employer’s policy and employee pay stubs, and employers would have to keep records for at least five years. The act would apply to taxable years ending on or after its effective date and would be titled the “Invest in Marriage Act.”
Impact
The bill would add a new section 5747.74 to the Ohio Revised Code and amend section 5747.98 to place the new marriage-bonus credit in the state’s tax-credit ordering sequence. As a result, employers and certain owners of employers would be able to reduce Ohio income tax liability by claiming the new credit, subject to the per-employee and per-employer limits and carryforward rules. The measure would also give the Department of Taxation administrative authority to verify claims and adopt implementing rules.
Sentiment
No committee testimony or votes were provided, and the bill was only introduced, so there is no recorded legislative sentiment in the supplied materials. Based on the text alone, the proposal appears supportive of marriage incentives and employer-provided benefits, but the available record does not show whether lawmakers or stakeholders broadly favored or opposed it.
Contention
The main policy issue is whether the state should use the tax code to encourage marriage through employer compensation practices. Potential points of contention include the fairness of granting a tax credit tied to marital status, the administrative burden on employers and the Tax Commissioner, and the fiscal cost of the credit. The bill text does not include any recorded objections, but these are the likely areas where debate would occur.
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To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
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