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hb889_00_IN
As Introduced
136th
General Assembly
Regular
Session
H. B. No. 889
2025-2026
Representative White, E.
Cosponsors: Representatives Brennan,
Piccolantonio, Upchurch
To
amend sections 5747.08 and 5747.98 and to enact section 5747.87 of
the Revised Code
to
authorize a nonrefundable income tax credit for fertility treatment
expenses.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5747.08 and 5747.98 be amended and section 5747.87 of the
Revised Code be enacted to read as follows:
Sec.
5747.08.
An
annual return with respect to the tax imposed by section 5747.02 of
the Revised Code and each tax imposed under Chapter 5748. of the
Revised Code shall be made by every taxpayer for any taxable year for
which the taxpayer is liable for the tax imposed by that section or
under that chapter, unless the total credits allowed under division
(E) of section 5747.05 and divisions (F) and (G) of section 5747.055
of the Revised Code for the year are equal to or exceed the tax
imposed by section 5747.02 of the Revised Code, in which case no
return shall be required unless the taxpayer is liable for a tax
imposed pursuant to Chapter 5748. of the Revised Code.
(A)
If an individual is deceased, any return or notice required of that
individual under this chapter shall be made and filed by that
decedent's executor, administrator, or other person charged with the
property of that decedent.
(B)
If an individual is unable to make a return or notice required by
this chapter, the return or notice required of that individual shall
be made and filed by the individual's duly authorized agent,
guardian, conservator, fiduciary, or other person charged with the
care of the person or property of that individual.
(C)
Returns or notices required of an estate or a trust shall be made and
filed by the fiduciary of the estate or trust.
(D)(1)(a)
Except as otherwise provided in division (D)(1)(b) of this section,
any pass-through entity may file a single return on behalf of one or
more of the entity's investors other than an investor that is a
person subject to the tax imposed under section 5733.06 of the
Revised Code. The single return shall set forth the name, address,
and social security number or other identifying number of each of
those pass-through entity investors and shall indicate the
distributive share of each of those pass-through entity investor's
income taxable in this state in accordance with sections 5747.20 to
5747.231 of the Revised Code. Such pass-through entity investors for
whom the pass-through entity elects to file a single return are not
entitled to the exemption or credit provided for by sections 5747.02
and 5747.022 of the Revised Code; shall calculate the tax before
business credits at the highest rate of tax set forth in section
5747.02 of the Revised Code for the taxable year for which the return
is filed; and are entitled to only their distributive share of the
business credits as defined in division (D)(2) of this section. A
single check drawn by the pass-through entity shall accompany the
return in full payment of the tax due, as shown on the single return,
for such investors, other than investors who are persons subject to
the tax imposed under section 5733.06 of the Revised Code.
(b)(i)
A pass-through entity shall not include in such a single return any
investor that is a trust to the extent that any direct or indirect
current, future, or contingent beneficiary of the trust is a person
subject to the tax imposed under section 5733.06 of the Revised Code.
(ii)
A pass-through entity shall not include in such a single return any
investor that is itself a pass-through entity to the extent that any
direct or indirect investor in the second pass-through entity is a
person subject to the tax imposed under section 5733.06 of the
Revised Code.
(c)
Except as provided by division (L) of this section, nothing in
division (D) of this section precludes the tax commissioner from
requiring such investors to file the return and make the payment of
taxes and related interest, penalty, and interest penalty required by
this section or section 5747.02, 5747.09, or 5747.15 of the Revised
Code. Nothing in division (D) of this section precludes such an
investor from filing the annual return under this section, utilizing
the refundable credit equal to the investor's proportionate share of
the tax paid by the pass-through entity on behalf of the investor
under division (I) of this section, and making the payment of taxes
imposed under section 5747.02 of the Revised Code. Nothing in
division (D) of this section shall be construed to provide to such an
investor or pass-through entity any additional deduction or credit,
other than the credit provided by division (I) of this section,
solely on account of the entity's filing a return in accordance with
this section. Such a pass-through entity also shall make the filing
and payment of estimated taxes on behalf of the pass-through entity
investors other than an investor that is a person subject to the tax
imposed under section 5733.06 of the Revised Code.
(2)
For the purposes of this section, "business credits" means
the credits listed in section 5747.98 of the Revised Code excluding
the following credits:
(a)
The retirement income credit under division (B) of section 5747.055
of the Revised Code;
(b)
The senior citizen credit under division (F) of section 5747.055 of
the Revised Code;
(c)
The lump sum distribution credit under division (G) of section
5747.055 of the Revised Code;
(d)
The dependent care credit under section 5747.054 of the Revised Code;
(e)
The lump sum retirement income credit under division (C) of section
5747.055 of the Revised Code;
(f)
The lump sum retirement income credit under division (D) of section
5747.055 of the Revised Code;
(g)
The lump sum retirement income credit under division (E) of section
5747.055 of the Revised Code;
(h)
The credit for displaced workers who pay for job training under
section 5747.27 of the Revised Code;
(i)
The twenty-dollar personal exemption credit under section 5747.022 of
the Revised Code;
(j)
The joint filing credit under division (E) of section 5747.05 of the
Revised Code;
(k)
The nonresident credit under division (A) of section 5747.05 of the
Revised Code;
(l)
The credit for a resident's out-of-state income under division (B) of
section 5747.05 of the Revised Code;
(m)
The earned income tax credit under section 5747.71 of the Revised
Code;
(n)
The lead abatement credit under section 5747.26 of the Revised Code;
(o)
The credit for education expenses under section 5747.72 of the
Revised Code;
(p)
The credit for tuition paid to a nonchartered nonpublic school under
section 5747.75 of the Revised Code
;
(q)
The credit for fertility treatment expenses under section 5747.87 of
the Revised Code
.
(3)
The election provided for under division (D) of this section applies
only to the taxable year for which the election is made by the
pass-through entity. Unless the tax commissioner provides otherwise,
this election, once made, is binding and irrevocable for the taxable
year for which the election is made. Nothing in this division shall
be construed to provide for any deduction or credit that would not be
allowable if a nonresident pass-through entity investor were to file
an annual return.
(4)
If a pass-through entity makes the election provided for under
division (D) of this section, the pass-through entity shall be liable
for any additional taxes, interest, interest penalty, or penalties
imposed by this chapter if the tax commissioner finds that the single
return does not reflect the correct tax due by the pass-through
entity investors covered by that return. Nothing in this division
shall be construed to limit or alter the liability, if any, imposed
on pass-through entity investors for unpaid or underpaid taxes,
interest, interest penalty, or penalties as a result of the
pass-through entity's making the election provided for under division
(D) of this section. For the purposes of division (D) of this
section, "correct tax due" means the tax that would have
been paid by the pass-through entity had the single return been filed
in a manner reflecting the commissioner's findings. Nothing in
division (D) of this section shall be construed to make or hold a
pass-through entity liable for tax attributable to a pass-through
entity investor's income from a source other than the pass-through
entity electing to file the single return.
(E)
If a husband and wife file a joint federal income tax return for a
taxable year, they shall file a joint return under this section for
that taxable year, and their liabilities are joint and several, but,
if the federal income tax liability of either spouse is determined on
a separate federal income tax return, they shall file separate
returns under this section.
If
either spouse is not required to file a federal income tax return and
either or both are required to file a return pursuant to this
chapter, they may elect to file separate or joint returns, and,
pursuant to that election, their liabilities are separate or joint
and several. If a husband and wife file separate returns pursuant to
this chapter, each must claim the taxpayer's own exemption, but not
both, as authorized under section 5747.02 of the Revised Code on the
taxpayer's own return.
(F)
Each return or notice required to be filed under this section shall
contain the signature of the taxpayer or the taxpayer's duly
authorized agent and of the person who prepared the return for the
taxpayer, and shall include the taxpayer's social security number.
Each return shall be verified by a declaration under the penalties of
perjury. The tax commissioner shall prescribe the form that the
signature and declaration shall take.
(G)
Each return or notice required to be filed under this section shall
be made and filed as required by section 5747.04 of the Revised Code,
on or before the fifteenth day of April of each year, on forms that
the tax commissioner shall prescribe, together with remittance made
payable to the treasurer of state in the combined amount of the state
and all school district income taxes shown to be due on the form.
Upon
good cause shown, the commissioner may extend the period for filing
any notice or return required to be filed under this section and may
adopt rules relating to extensions. If the extension results in an
extension of time for the payment of any state or school district
income tax liability with respect to which the return is filed, the
taxpayer shall pay at the time the tax liability is paid an amount of
interest computed at the rate per annum prescribed by section 5703.47
of the Revised Code on that liability from the time that payment is
due without extension to the time of actual payment. Except as
provided in section 5747.132 of the Revised Code, in addition to all
other interest charges and penalties, all taxes imposed under this
chapter or Chapter 5748. of the Revised Code and remaining unpaid
after they become due, except combined amounts due of one dollar or
less, bear interest at the rate per annum prescribed by section
5703.47 of the Revised Code until paid or until the day an assessment
is issued under section 5747.13 of the Revised Code, whichever occurs
first.
If
the commissioner considers it necessary in order to ensure the
payment of the tax imposed by section 5747.02 of the Revised Code or
any tax imposed under Chapter 5748. of the Revised Code, the
commissioner may require returns and payments to be made otherwise
than as provided in this section.
To
the extent that any provision in this division conflicts with any
provision in section 5747.026 of the Revised Code, the provision in
that section prevails.
(H)
The amounts withheld pursuant to section 5747.06, 5747.062, 5747.063,
5747.064, 5747.065, or 5747.071 of the Revised Code shall be allowed
to the ultimate recipient of the income as credits against payment of
the appropriate taxes imposed on the ultimate recipient by section
5747.02 and under Chapter 5748. of the Revised Code. As used in this
division, "ultimate recipient" means the person who is
required to report income from which amounts are withheld pursuant to
section 5747.06, 5747.062, 5747.063, 5747.064, 5747.065, or 5747.071
of the Revised Code on the annual return required to be filed under
this section.
(I)
If a pass-through entity elects to file a single return under
division (D) of this section and if any investor is required to file
the annual return and make the payment of taxes required by this
chapter on account of the investor's other income that is not
included in a single return filed by a pass-through entity or any
other investor elects to file the annual return, the investor is
entitled to a refundable credit equal to the investor's proportionate
share of the tax paid by the pass-through entity on behalf of the
investor. The investor shall claim the credit for the investor's
taxable year in which or with which ends the taxable year of the
pass-through entity. Nothing in this chapter shall be construed to
allow any credit provided in this chapter to be claimed more than
once. For the purpose of computing any interest, penalty, or interest
penalty, the investor shall be deemed to have paid the refundable
credit provided by this division on the day that the pass-through
entity paid the estimated tax or the tax giving rise to the credit.
(J)
The tax commissioner shall ensure that each return required to be
filed under this section includes a box that the taxpayer may check
to authorize a paid tax preparer who prepared the return to
communicate with the department of taxation about matters pertaining
to the return. The return or instructions accompanying the return
shall indicate that by checking the box the taxpayer authorizes the
department of taxation to contact the preparer concerning questions
that arise during the processing of the return and authorizes the
preparer only to provide the department with information that is
missing from the return, to contact the department for information
about the processing of the return or the status of the taxpayer's
refund or payments, and to respond to notices about mathematical
errors, offsets, or return preparation that the taxpayer has received
from the department and has shown to the preparer.
(K)
The tax commissioner shall permit individual taxpayers to instruct
the department of taxation to cause any refund of overpaid taxes to
be deposited directly into a checking account, savings account, or an
individual retirement account or individual retirement annuity, or
preexisting college savings plan or program account offered by the
Ohio tuition trust authority under Chapter 3334. of the Revised Code,
as designated by the taxpayer, when the taxpayer files the annual
return required by this section electronically.
(L)
If, for the taxable year, a nonresident or trust that is the owner of
an electing pass-through entity, as defined in section 5747.38 of the
Revised Code, does not have Ohio adjusted gross income or, in the
case of a trust, modified Ohio taxable income other than from one or
more electing pass-through entities, the nonresident or trust shall
not be required to file an annual return under this section. Nothing
in this division precludes such an owner from filing the annual
return under this section, utilizing the refundable credit under
section 5747.39 of the Revised Code equal to the owner's
proportionate share of the tax levied under section 5747.38 of the
Revised Code and paid by the electing pass-through entity, and making
the payment of taxes imposed under section 5747.02 of the Revised
Code.
(M)
The tax commissioner may adopt rules to administer this section.
Sec.
5747.87.
(A)
As used in this section:
(1)
"Assisted reproductive technology" means any
fertility-related treatment in which eggs are surgically removed from
a woman's ovaries, combined with sperm in a laboratory, and
transferred back to the woman or another gestational carrier,
including in vitro fertilization, gamete intrafallopian transfer, or
zygote intrafallopian transfer. "Assisted reproductive
technology" does not include any treatment in which only sperm
are handled, such as intrauterine insemination or procedures in which
a woman takes drugs to stimulate egg production without planning to
have the eggs surgically retrieved.
(2)
"Treatment for conditions that impact fertility" means any
treatment or procedure that seeks to remedy one or more medical
conditions or diagnoses that affect the male or female reproductive
system and result in the inability to conceive through sexual
intercourse, with the goal of achieving a successful pregnancy
without the use of assisted reproductive technology. "Treatment
for conditions that impact fertility" includes treatment for any
of the following: conditions that result in a failure to ovulate,
issues in the menstrual cycle, structural problems of the male or
female reproductive system, infections that impact fertility,
conditions that result in the failure of an egg to mature properly,
implantation failure, endometriosis, polycystic ovary syndrome,
primary ovary insufficiency, uterine fibroids, autoimmune disorders
that impact fertility, and sperm disorders. Such treatments include
medications that stimulate ovulation, intrauterine insemination, and
laparascopic surgery.
(B)
There is allowed a nonrefundable credit against a qualifying
taxpayer's aggregate tax liability under section 5747.02 of the
Revised Code equal to the amount of expenses incurred by the taxpayer
or, if filing a joint return, the taxpayer's spouse in the taxable
year for treatment for conditions that impact fertility or assisted
reproductive technology treatment, up to the following limitation, as
applicable:
(1)
For treatment for conditions that impact fertility, three thousand
five hundred dollars;
(2)
For assisted reproductive technology treatment, nine thousand five
hundred dollars.
The
credit shall be claimed in the order required under section 5747.98
of the Revised Code. If the credit exceeds the taxpayer's aggregate
tax due under section 5747.02 of the Revised Code for that taxable
year after allowing for credits that precede the credit under this
section in that order, such excess shall be allowed as a credit in
each of the ensuing seven taxable years, but the amount of any excess
credit allowed in any such taxable year shall be deducted from the
balance carried forward to the ensuing taxable year.
(C)
The taxpayer shall provide, upon request of the tax commissioner, any
documentation necessary to verify the taxpayer is entitled to the
credit under this section.
Sec.
5747.98.
(A)
To provide a uniform procedure for calculating a taxpayer's aggregate
tax liability under section 5747.02 of the Revised Code, a taxpayer
shall claim any credits to which the taxpayer is entitled in the
following order:
Either
the retirement income credit under division (B) of section 5747.055
of the Revised Code or the lump sum retirement income credits under
divisions (C), (D), and (E) of that section;
Either
the senior citizen credit under division (F) of section 5747.055 of
the Revised Code or the lump sum distribution credit under division
(G) of that section;
The
dependent care credit under section 5747.054 of the Revised Code;
The
credit for displaced workers who pay for job training under section
5747.27 of the Revised Code;
The
campaign contribution credit under section 5747.29 of the Revised
Code;
The
twenty-dollar personal exemption credit under section 5747.022 of the
Revised Code;
The
joint filing credit under division
(G)
(E)
of section 5747.05 of the Revised Code;
The
earned income credit under section 5747.71 of the Revised Code;
The
nonrefundable credit for education expenses under section 5747.72 of
the Revised Code;
The
nonrefundable credit for donations to scholarship granting
organizations under section 5747.73 of the Revised Code;
The
nonrefundable credit for tuition paid to a nonchartered nonpublic
school under section 5747.75 of the Revised Code;
The
nonrefundable vocational job credit under section 5747.057 of the
Revised Code;
The
nonrefundable job retention credit under division (B) of section
5747.058 of the Revised Code;
The
enterprise zone credit under section 5709.66 of the Revised Code;
The
credit for beginning farmers who participate in a financial
management program under division (B) of section 5747.77 of the
Revised Code;
The
credit for commercial vehicle operator training expenses under
section 5747.82 of the Revised Code;
The
nonrefundable welcome home Ohio (WHO) program credit under section
122.633 of the Revised Code;
The
credit for selling or renting agricultural assets to beginning
farmers under division (A) of section 5747.77 of the Revised Code;
The
credit for purchases of qualifying grape production property under
section 5747.28 of the Revised Code;
The
small business investment credit under section 5747.81 of the Revised
Code;
The
nonrefundable lead abatement credit under section 5747.26 of the
Revised Code;
The
opportunity zone investment credit under section 5747.86 of the
Revised Code;
The
nonrefundable credit for fertility treatment expenses under section
5747.87 of the Revised Code;
The
enterprise zone credits under section 5709.65 of the Revised Code;
The
research and development credit under section 5747.331 of the Revised
Code;
The
credit for rehabilitating a historic building under section 5747.76
of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5747.83 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5747.84 of the Revised Code;
The
nonresident credit under division (A) of section 5747.05 of the
Revised Code;
The
credit for a resident's out-of-state income under division (B) of
section 5747.05 of the Revised Code;
The
refundable motion picture and broadway theatrical production credit
under section 5747.66 of the Revised Code;
The
refundable credit for film and theater capital improvement projects
under section 5747.67 of the Revised Code;
The
refundable jobs creation credit or job retention credit under
division (A) of section 5747.058 of the Revised Code;
The
refundable credit for taxes paid by a qualifying entity granted under
section 5747.059 of the Revised Code;
The
refundable credits for taxes paid by a qualifying pass-through entity
granted under division (I) of section 5747.08 of the Revised Code;
The
refundable credit under section 5747.80 of the Revised Code for
losses on loans made to the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code;
The
refundable credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
The
refundable credit under section 5747.39 of the Revised Code for taxes
levied under section 5747.38 of the Revised Code paid by an electing
pass-through entity.
(B)
For any credit, except the refundable credits enumerated in this
section and the credit granted under division (H) of section 5747.08
of the Revised Code, the amount of the credit for a taxable year
shall not exceed the taxpayer's aggregate amount of tax due under
section 5747.02 of the Revised Code, after allowing for any other
credit that precedes it in the order required under this section. Any
excess amount of a particular credit may be carried forward if
authorized under the section creating that credit. Nothing in this
chapter shall be construed to allow a taxpayer to claim, directly or
indirectly, a credit more than once for a taxable year.
Section
2.
That
existing sections 5747.08 and 5747.98 of the Revised Code are hereby
repealed.