As Introduced
136th General Assembly
Regular Session H. B. No. 242
2025-2026
Representatives Lawson-Rowe, Thomas, C.
Cosponsors: Representatives Brennan, Brownlee, Fischer, McNally, Mohamed,
White, E.
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 having a
dog spayed or neutered or for completing a dog
training course.
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.
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(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
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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
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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;
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(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 spaying or neutering or training a dog
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
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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.
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(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
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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
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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
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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 nonrefundable tax credit against a
taxpayer's aggregate tax liability under section 5747.02 of the
Revised Code is allowed for the cost of having a dog that is
owned by the taxpayer surgically spayed or neutered or for the
cost of one complete dog training course for a dog owned by the
taxpayer. Training courses that qualify for the credit consist
of obedience training that teaches dogs appropriate social
behavior with humans and animals and to respond to commands and
cues.
The amount of the credit shall equal the cost of the
surgery or course, but the amount of credit claimed by the
taxpayer for any taxable year may not exceed three hundred fifty
dollars. The credit shall be claimed for the taxable year in
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which the taxpayer incurred the cost for the surgery or course,
and in the order prescribed by section 5747.98 of the Revised
Code. The taxpayer may claim only one credit under this section
per taxable year.
The tax commissioner may request that a taxpayer furnish a
sales receipt or any other information necessary to support a
claim for credit under this section, and no credit shall be
allowed unless the requested information is provided.
The tax commissioner shall not prepare or keep a list of
taxpayers who have claimed the credit authorized by this
section.
The credit is allowable for taxable years ending on or
after the effective date of 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;
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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 credit for spaying or neutering or
training a dog under section 5747.87 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;
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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;
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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
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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.
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