As Introduced
136th General Assembly
Regular Session H. B. No. 133
2025-2026
Representative Craig
Cosponsors: Representatives Brennan, Daniels, Deeter, Fischer, Hiner, King,
Thomas, D., White, A., Williams
To amend section 5747.98 and to enact section
5747.87 of the Revised Code to authorize a
nonrefundable income tax credit for small
employers that cover their employees with an
individual coverage health reimbursement
arrangement.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.98 be amended and section
5747.87 of the Revised Code be enacted to read as follows:
Sec. 5747.87. (A) As used in this section, "individual
coverage health reimbursement arrangement" means a health
reimbursement arrangement established pursuant to 45 C.F.R.
146.123.
(B) There is allowed a nonrefundable credit against a
taxpayer's aggregate tax liability under section 5747.02 of the
Revised Code for a taxpayer that, during the taxable year is
either of the following:
(1) An employer that employs more than one and less than
fifty-one total employees, cumulatively and regardless of any
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As Introduced
particular employee's length of tenure, provides an individual
coverage health reimbursement arrangement to some or all of the
employer's employees, and contributes at least four hundred
dollars per employee to that arrangement during the taxable
year;
(2) The owner of a direct or indirect interest in such an
employer that is a pass-through entity.
The credit shall equal four hundred dollars multiplied by
the number of the employer's employees who were provided
benefits under an individual coverage health reimbursement
arrangement, cumulatively and regardless of any particular
employee's length of tenure, during the taxpayer's taxable year.
The credit shall be claimed in the order prescribed by
section 5747.98 of the Revised Code. A taxpayer described in
division (B)(2) of this section may claim its proportionate or
distributive share of the credit allowed under this section.
The tax commissioner may request that a taxpayer claiming
a credit under this section furnish information as is necessary
to support the claim for the credit under this section, and no
credit shall be allowed unless the requested information is
provided.
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;
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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 individual coverage health reimbursement
arrangement credit under section 5747.87 of the Revised Code;
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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
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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
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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 section 5747.98 of the Revised
Code is hereby repealed.
Section 3. The enactment of section 5747.87 of the Revised
Code by this act applies to taxable years ending on or after the
effective date of this section.
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