Make the earned income tax credit partially refundable

hb903_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 903

2025-2026

Representatives Sims, Bryant Bailey

Cosponsors: Representatives
Piccolantonio, Lett, Synenberg, Brewer, Brennan, Rader, Upchurch

To
amend sections 5747.71 and 5747.98 of the Revised Code
to
make the earned income tax credit partially refundable.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 5747.71 and 5747.98 of the Revised Code be amended to read
as follows:

Sec.
5747.71.
(A)
As used in this section, "eligible individual" has the same
meaning as in section 32 of the Internal Revenue Code.

(B)

There
is hereby allowed a nonrefundable credit against a taxpayer's
aggregate tax liability under section 5747.02 of the Revised Code for
a taxpayer who is an
"
eligible
individual
"
as defined in section 32 of the Internal Revenue Code
.
The credit shall equal
thirty

twenty

per
cent of the federal credit allowed for the taxable year. The credit
shall not exceed the aggregate amount of tax otherwise due under
section 5747.02 of the Revised Code after deducting any other
nonrefundable credits that precede the credit allowed under this
section in the order prescribed by section 5747.98 of the Revised
Code.

The
credit shall be claimed in the order prescribed by section 5747.98 of
the Revised Code.

(C)
There is hereby allowed a refundable credit against a taxpayer's
aggregate tax liability under section 5747.02 of the Revised Code for
a taxpayer who is an eligible individual. The credit shall equal ten
per cent of the credit allowed on the taxpayer's federal income tax
return pursuant to section 32 of the Internal Revenue Code for the
taxable year. The credit shall be claimed in the order prescribed by
section 5747.98 of the Revised Code. If the credit authorized by this
division exceeds the aggregate amount of tax otherwise due after
deducting all other credits in that order, the excess shall be
refunded to the taxpayer.

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
twenty-dollar personal exemption credit under section 5747.022 of the
Revised Code;

The
joint filing credit under division (E) of section 5747.05 of the
Revised Code;

The

nonrefundable

earned
income credit under
division
(B) of
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
nonrefundable credit for transformational mixed use development tax
credit certificate holders under section 5747.87 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
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 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
;

The
refundable earned income credit under division (C) of section 5747.71
of the Revised Code
.

(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 5747.71 and 5747.98 of the Revised Code are hereby
repealed.

Section
3.
The
amendment by this act of sections 5747.71 and 5747.98 of the Revised
Code applies to taxable years ending on or after the effective date
of this section.