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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 129
2025-2026
Senator Koehler
Cosponsors: Senators Lang, Romanchuk
To
amend sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 and to
enact sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22,
5736.51, 5747.74, and 5751.56 of the Revised Code
to
authorize a refundable tax credit for a portion of employer group
health plan premiums.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 be amended
and sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51,
5747.74, and 5751.56 of the Revised Code be enacted to read as
follows:
Sec.
5725.39.
(A)
As used in this section:
(1)
"Health benefit plan," "basic health care services,"
and "resident" have the same meanings as in section 5751.56
of the Revised Code.
(2)
"Taxpayer" means a domestic insurance company subject to
the tax imposed under section 5725.18 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5725.18 of the Revised Code for a taxpayer that purchases a
group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the calendar
year to purchase such a plan for the taxpayer's employees who are
residents. No person shall claim the credit authorized by this
section based on coverage provided through a program of
self-insurance.
The
credit shall be claimed in the order required under section 5725.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5725.18 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded to the
taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5726.62, 5727.242, 5727.301, 5729.22,
5736.51, 5747.74, or 5751.56 of the Revised Code.
Sec.
5725.98.
(A)
To provide a uniform procedure for calculating the amount of tax
imposed by section 5725.18 of the Revised Code that is due under this
chapter, a taxpayer shall claim any credits and offsets against tax
liability to which it is entitled in the following order:
The
credit for an insurance company or insurance company group under
section 5729.031 of the Revised Code;
The
credit for eligible employee training costs under section 5725.31 of
the Revised Code;
The
credit for purchasers of qualified low-income community investments
under section 5725.33 of the Revised Code;
The
nonrefundable job retention credit under division (B) of section
122.171 of the Revised Code;
The
nonrefundable credit for investments in rural business growth funds
under section 122.152 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5725.36 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5725.37 of the Revised Code;
The
nonrefundable credit for contributing capital to a transformational
mixed use development project under section 5725.35 of the Revised
Code;
The
nonrefundable opportunity zone investment credit under section
5725.38 of the Revised Code;
The
offset of assessments by the Ohio life and health insurance guaranty
association permitted by section 3956.20 of the Revised Code;
The
refundable credit for rehabilitating a historic building under
section 5725.34 of the Revised Code;
The
refundable credit for Ohio job retention under former division (B)(2)
or (3) of section 122.171 of the Revised Code as those divisions
existed before September 29, 2015, the effective date of the
amendment of this section by H.B. 64 of the 131st general assembly;
The
refundable credit for Ohio job creation under section 5725.32 of the
Revised Code;
The
refundable credit under section 5725.19 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code
;
The
refundable credit for employer health benefit plan premiums under
section 5725.39 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, the amount of the credit for a taxable year shall not exceed
the tax due 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.
Sec.
5726.62.
(A)
As used in this section, "health benefit plan," "basic
health care services," and "resident" have the same
meanings as in section 5751.56 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5726.02 of the Revised Code for a taxpayer that purchases a
group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the taxable
year to purchase such a plan for the taxpayer's employees who are
residents. No person shall claim the credit authorized by this
section based on coverage provided through a program of
self-insurance.
The
credit shall be claimed in the order required under section 5726.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5726.02 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded to the
taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5727.242, 5727.301, 5729.22,
5736.51, 5747.74, or 5751.56 of the Revised Code.
Sec.
5726.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under section 5726.02 of the Revised Code, a taxpayer shall claim any
credits to which the taxpayer is entitled under this chapter in the
following order:
The
nonrefundable job retention credit under division (B) of section
5726.50 of the Revised Code;
The
nonrefundable credit for purchases of qualified low-income community
investments under section 5726.54 of the Revised Code;
The
nonrefundable credit for qualified research expenses under section
5726.56 of the Revised Code;
The
nonrefundable credit for qualifying dealer in intangibles taxes under
section 5726.57 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5726.58 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5726.60 of the Revised Code;
The
nonrefundable welcome home Ohio (WHO) program credit under section
122.633 of the Revised Code;
The
nonrefundable opportunity zone investment credit under section
5726.61 of the Revised Code;
The
refundable credit for rehabilitating an historic building under
section 5726.52 of the Revised Code;
The
refundable job retention or job creation credit under division (A) of
section 5726.50 of the Revised Code;
The
refundable credit under section 5726.53 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code;
The
refundable motion picture and broadway theatrical production credit
under section 5726.55 of the Revised Code;
The
refundable credit for film and theater capital improvement projects
under section 5726.59 of the Revised Code
;
The
refundable credit for employer health benefit plan premiums under
section 5726.62 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, the amount of the credit for a taxable year shall not exceed
the tax due 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.
Sec.
5727.242.
(A)
As used in this section:
(1)
"Health benefit plan," "basic health care services,"
and "resident" have the same meanings as in section 5751.56
of the Revised Code.
(2)
"Taxpayer" means a person subject to the tax imposed by
section 5727.24 of the Revised Code.
(B)
There is hereby allowed a refundable credit against the tax imposed
by section 5727.24 of the Revised Code for a taxpayer that purchases
a group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the calendar
quarter or calendar year, as applicable, to purchase such a plan for
the taxpayer's employees who are residents. No person shall claim the
credit authorized by this section based on coverage provided through
a program of self-insurance.
The
taxpayer shall claim the credit after the credit authorized in
sections 5727.241 and 5727.291 of the Revised Code. Any credit amount
in excess of the taxpayer's tax liability shall be refunded to the
taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5726.62, 5727.301, 5729.22,
5736.51, 5747.74, or 5751.56 of the Revised Code.
Sec.
5727.301.
(A)
As used in this section:
(1)
"Health benefit plan," "basic health care services,"
and "resident" have the same meanings as in section 5751.56
of the Revised Code.
(2)
"Taxpayer" means a person subject to the tax imposed by
section 5727.30 of the Revised Code.
(B)
There is hereby allowed a refundable credit against the tax imposed
by section 5727.30 of the Revised Code for a taxpayer that purchases
a group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the calendar
year to purchase such a plan for the taxpayer's employees who are
residents. No person shall claim the credit authorized by this
section based on coverage provided through a program of
self-insurance.
The
taxpayer shall claim the credit after the credit authorized in
section 5727.29 of the Revised Code. Any credit amount in excess of
the taxpayer's tax liability shall be refunded to the taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5726.62, 5727.242, 5729.22,
5736.51, 5747.74, or 5751.56 of the Revised Code.
Sec.
5729.22.
(A)
As used in this section:
(1)
"Health benefit plan," "basic health care services,"
and "resident" have the same meanings as in section 5751.56
of the Revised Code.
(2)
"Taxpayer" means a foreign insurance company subject to the
tax imposed by section 5729.03 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5729.03 of the Revised Code for a taxpayer that purchases a
group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the calendar
year to purchase such a plan for the taxpayer's employees who are
residents. No person shall claim the credit authorized by this
section based on coverage provided through a program of
self-insurance.
The
credit shall be claimed in the order required under section 5729.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5729.03 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded to the
taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5726.39, 5726.62, 5727.242, 5727.301,
5736.51, 5747.74, or 5751.56 of the Revised Code.
Sec.
5729.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under this chapter, a taxpayer shall claim any credits and offsets
against tax liability to which it is entitled in the following order:
The
credit for an insurance company or insurance company group under
section 5729.031 of the Revised Code;
The
credit for eligible employee training costs under section 5729.07 of
the Revised Code;
The
credit for purchases of qualified low-income community investments
under section 5729.16 of the Revised Code;
The
nonrefundable job retention credit under division (B) of section
122.171 of the Revised Code;
The
nonrefundable credit for investments in rural business growth funds
under section 122.152 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5729.19 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5729.20 of the Revised Code;
The
nonrefundable credit for contributing capital to a transformational
mixed use development project under section 5729.18 of the Revised
Code;
The
nonrefundable opportunity zone investment credit under section
5729.21 of the Revised Code;
The
offset of assessments by the Ohio life and health insurance guaranty
association against tax liability permitted by section 3956.20 of the
Revised Code;
The
refundable credit for rehabilitating a historic building under
section 5729.17 of the Revised Code;
The
refundable credit for Ohio job retention under former division (B)(2)
or (3) of section 122.171 of the Revised Code as those divisions
existed before September 29, 2015, the effective date of the
amendment of this section by H.B. 64 of the 131st general assembly;
The
refundable credit for Ohio job creation under section 5729.032 of the
Revised Code;
The
refundable credit under section 5729.08 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code
;
The
refundable credit for employer health benefit plan premiums under
section 5729.22 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, the amount of the credit for a taxable year shall not exceed
the tax due 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.
Sec.
5736.51.
(A)
As used in this section, "health benefit plan," "basic
health care services," and "resident" have the same
meanings as in section 5751.56 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by this
chapter for a taxpayer that purchases a group health benefit plan
that provides coverage for basic health care services to one or more
of the taxpayer's employees who are residents. The credit shall equal
one and three-tenths per cent of the portion of the premiums paid by
the taxpayer during the tax period to purchase such a plan for the
taxpayer's employees who are residents. No person shall claim the
credit authorized by this section based on coverage provided through
a program of self-insurance.
The
taxpayer shall claim the credit after any credits allowed under
section 5736.50 of the Revised Code. Any credit amount in excess of
the taxpayer's tax liability shall be refunded to the taxpayer.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301,
5729.22, 5747.74, or 5751.56 of the Revised Code.
Sec.
5747.74.
(A)
As used in this section, "health benefit plan" and "basic
health care services" have the same meanings as in section
5751.56 of the Revised Code.
(B)
There is allowed a refundable credit against the taxpayer's aggregate
tax liability under section 5747.02 of the Revised Code for a
taxpayer that purchases a group health benefit plan that provides
coverage for basic health care services to one or more of the
taxpayer's employees who are residents. The credit shall equal one
and three-tenths per cent of the portion of the premiums paid by the
taxpayer during the taxable year to purchase such a plan for the
taxpayer's employees who are residents. No person shall claim the
credit authorized by this section based on coverage provided through
a program of self-insurance.
The
credit shall be claimed in the order required under section 5747.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5747.02 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded to the
taxpayer. Nothing in this section limits or disallows pass-through
treatment of the credit.
No
credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301,
5729.22, 5736.51, or 5751.56 of the Revised Code.
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) 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
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
;
The
refundable credit for employer health benefit plan premiums under
section 5747.74 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.
Sec.
5751.56.
(A)
As used in this section, "health benefit plan" has the same
meaning as in section 3922.01 of the Revised Code, "basic health
care services" has the same meaning as in section 1751.01 of the
Revised Code, and "resident" has the same meaning as in
section 5747.01 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5751.02 of the Revised Code for a taxpayer that purchases a
group health benefit plan that provides coverage for basic health
care services to one or more of the taxpayer's employees who are
residents. The credit shall equal one and three-tenths per cent of
the portion of the premiums paid by the taxpayer during the tax
period to purchase such a plan for the taxpayer's employees who are
residents. No person shall claim the credit authorized by this
section based on coverage provided through a program of
self-insurance.
The
credit shall be claimed in the order required under section 5751.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5751.02 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded to the
taxpayer.
A
person that is not required to register with the tax commissioner
under section 5751.04 of the Revised Code and pay the tax under this
chapter may not claim the credit authorized by this section.
(C)
No credit shall be allowed under this section on the basis of group
health benefit plan premiums if those premiums are the basis of a
credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301,
5729.22, 5736.51, or 5747.74 of the Revised Code.
Sec.
5751.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under this chapter, a taxpayer shall claim any credits to which it is
entitled in the following order:
The
nonrefundable jobs retention credit under division (B) of section
5751.50 of the Revised Code;
The
nonrefundable credit for qualified research expenses under division
(B) of section 5751.51 of the Revised Code;
The
nonrefundable credit for a borrower's qualified research and
development loan payments under division (B) of section 5751.52 of
the Revised Code;
The
nonrefundable credit for calendar years 2010 to 2029 for unused net
operating losses under division (B) of section 5751.53 of the Revised
Code;
The
refundable motion picture and broadway theatrical production credit
under section 5751.54 of the Revised Code;
The
refundable credit for film and theater capital improvement projects
under section 5751.55 of the Revised Code;
The
refundable jobs creation credit or job retention credit under
division (A) of section 5751.50 of the Revised Code;
The
refundable credit for calendar year 2030 for unused net operating
losses under division (C) of section 5751.53 of the Revised Code
;
The
refundable credit for employer health benefit plan premiums under
section 5751.56 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, the amount of the credit for a tax period shall not exceed
the tax due 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 the credit.
Section
2.
That
existing sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 of
the Revised Code are hereby repealed.
Section
3.
The
enactment by this act of sections 5725.39, 5726.62, 5727.242,
5727.301, 5729.22, 5736.51, 5747.74, and 5751.56 of the Revised Code
applies to premiums paid on and after the effective date of this
section by an employer for a group health benefit plan that provides
coverage for basic health care services, as those terms are defined
in section 5751.56 of the Revised Code, as enacted by this act.