Authorize tax credit for pregnancy resource center donations
Legislative Analysis Report Authorize tax credit for pregnancy resource center donations
1. Primary Purpose of the Bill
This bill intends to encourage charitable giving to pregnancy resource centers and licensed maternity homes in Ohio by establishing a nonrefundable tax credit for individuals and businesses that make cash donations to these certified organizations.
TaxationHealthFamily
2. Changes to Existing Law
ORC Sec. 5747.74 Enacts a nonrefundable state income tax credit for cash donations to certified pregnancy resource centers. The credit is capped at 50% of the taxpayer's tax liability for the year, with any excess allowed to be carried forward for up to five years.
ORC Sec. 5747.98 Amends the order in which income tax credits must be claimed, placing the new pregnancy resource center donation credit at the very top of the list.
ORC Sec. 5751.56 Establishes the certification process for qualifying pregnancy resource centers and maternity homes. It also creates a nonrefundable Commercial Activity Tax (CAT) credit for donations to these centers, sets a statewide annual credit limit of $10 million, and limits credits for donations to any single center to $5 million per year.
ORC Sec. 5751.98 Amends the order in which Commercial Activity Tax credits must be claimed, placing the new pregnancy resource center donation credit at the very top of the list.
3. Key Information for Citizens
🗳️ What You Need to Know
- Taxpayers can receive a tax credit equal to the amount of cash they donate to certified pregnancy resource centers or maternity homes.
- The credit can be used to reduce either Ohio personal income tax or the Commercial Activity Tax (CAT).
- The credit cannot reduce your tax bill by more than 50% in a single year, but any unused credit can be carried forward for up to five years.
- To qualify for donations, a center must be a tax-exempt 501(c)(3) organization, be located in Ohio, serve mostly Ohio residents, and provide free or low-cost pregnancy services.
- Organizations that perform, promote, or are affiliated with nontherapeutic abortions are strictly excluded from receiving these tax-credit-eligible donations.
- The state will limit the total amount of these tax credits to $10 million per calendar year across the entire state.
4. Entities Affected
- Individual Ohio taxpayers
- Ohio businesses subject to the Commercial Activity Tax (CAT)
- Nonprofit pregnancy resource centers and licensed maternity homes
- The Ohio Department of Taxation
5. Regulatory Impact & Enforcement
Agency Authority: The Ohio Department of Taxation and the Tax Commissioner are granted the authority to certify qualifying pregnancy resource centers, process tax credit applications, issue tax credit certificates, request periodic recertifications, revoke non-compliant certifications, and maintain a public list of certified centers on the department's website.
Penalties & Mandates: Pregnancy centers must apply for certification under penalty of perjury. Certified centers are mandated to notify the Tax Commissioner of any changes to their eligibility within 60 days.
Implementation Timeline: Not applicable
6. Estimated Fiscal Impact
State Revenue Impact
-$10,000,000 / year (maximum reduction)
Local Government Impact
Not applicable
Implementation Costs
Not applicable
Net Annual Fiscal Effect
-$10,000,000 / year (maximum reduction)
Policy doesn’t happen in a vacuum. Meet the representatives and senators who introduced this bill and are pushing it through the chamber. Click on any sponsor to see their district, party affiliation, and what other legislation they’ve championed this session.
Primary Sponsors
Sandra O'Brien
District
32
Chamber
Senate
Party
Republican
Co-Sponsors
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Status Changes
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Referred to committee
Jan 29 2025
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Documents
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