To amend sections 5747.71 and 5747.98 of the Revised Code to make the earned income tax credit partially refundable.
HB903 would change Ohio’s earned income tax credit (EITC) by making part of it refundable. Under current law in the bill text, the state EITC is a nonrefundable credit equal to 20% of the federal earned income credit. The bill adds a new refundable credit equal to 10% of the federal credit, while retaining the existing nonrefundable 20% credit. In practical terms, eligible taxpayers with little or no Ohio income tax liability could receive a refund for the refundable portion, rather than only using the credit to reduce tax owed.
The bill also amends Ohio’s credit-ordering statute to place the new refundable EITC at the end of the list of credits and to clarify how it interacts with other credits. The amendment applies to taxable years ending on or after the effective date. Because the bill is introduced only and there are no recorded votes or committee transcripts in the provided materials, the measure appears to be in an early stage of consideration before the House Ways and Means Committee.
HB903 would amend sections 5747.71 and 5747.98 of the Revised Code. It would create a refundable earned income tax credit equal to 10% of the federal EITC and preserve a separate nonrefundable Ohio EITC equal to 20% of the federal credit. This would expand the benefit for low-income working taxpayers, especially those whose Ohio tax liability is too small to use a nonrefundable credit fully. The bill would also revise the statutory credit-priority order to include the new refundable credit and maintain existing rules limiting credits to the amount of tax due unless a credit is expressly refundable.
Based on the bill’s sponsorship and caption, the measure appears to be framed as a tax relief and anti-poverty policy for working families. The available record shows no committee testimony, amendments, or votes, so there is no documented opposition or support beyond the fact that the bill was introduced with multiple cosponsors and referred to the House Ways and Means Committee. Overall sentiment in the provided materials is neutral-to-supportive, with the proposal presented as an expansion of the earned income tax credit rather than a controversial restructuring of the tax code.
The main policy issue is fiscal and distributive: supporters would likely view refundability as a way to better assist low-income workers, while potential critics could object to the state revenue cost or to making a credit payable even when no tax is owed. Another possible point of contention is the interaction between the new refundable credit and the existing nonrefundable credit, since the bill effectively splits the Ohio EITC into two components and changes the credit-ordering statute. No specific objections, amendments, or competing viewpoints are included in the provided committee or vote history.