To amend sections 5747.08 and 5747.98 and to enact section 5747.053 of the Revised Code to authorize a nonrefundable income tax credit for family caregiving expenses.
Summary
SB 205 would create a new nonrefundable Ohio income tax credit for family caregivers who pay out-of-pocket expenses to care for an eligible family member. The credit would equal 30% of eligible expenses, up to $2,000 per taxpayer per year, and unused credit could be carried forward to future tax years. The bill defines who qualifies as a family caregiver and an eligible family member, including age, residency, relationship, income limits, and a requirement that the care recipient need help with at least two activities of daily living.
The bill also defines the kinds of expenses that count, such as home modifications, vehicle modifications, assistive equipment, respite care, adult day care, home care aides, transportation, legal and financial services, and related technology. It excludes ordinary household maintenance. The tax commissioner would be authorized to adopt rules to administer the credit, and the bill amends the state tax credit ordering statute so the new caregiver credit is claimed in the prescribed sequence alongside other Ohio income tax credits.
Impact
The bill would add a new section to Ohio’s income tax code, section 5747.053, and amend sections 5747.08 and 5747.98 to integrate the credit into filing and credit-ordering rules. It would reduce state income tax liability for qualifying caregivers, potentially lowering revenue collections, while also creating administrative responsibilities for the Department of Taxation and the tax commissioner. The credit would apply to taxable years ending on or after the effective date, and it would affect individual taxpayers who care for older or disabled relatives living in private homes, as well as joint filers and multiple caregivers sharing care responsibilities.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the measure appears to be framed as a supportive, family-centered tax relief proposal rather than a controversial policy change. Its stated purpose is to help residents offset the costs of unpaid caregiving, which suggests a generally favorable policy rationale. There is no available voting history or transcript evidence showing formal opposition or support, so the public and legislative sentiment cannot be measured beyond the bill’s pro-caregiver design.
Contention
The main points of potential contention are the eligibility limits and fiscal cost. The bill restricts the credit to caregivers with income below specified thresholds and to care recipients age 50 or older who need help with at least two activities of daily living, which may exclude some caregivers and families. It also limits qualifying expenses to documented out-of-pocket costs and excludes general home maintenance, which could lead to disputes over what counts as eligible care-related spending. Any concern about lost state revenue or administrative complexity would likely center on lawmakers and budget analysts, though no specific objections are recorded in the provided materials.