As Introduced
136th General Assembly
Regular Session H. B. No. 48
2025-2026
Representatives Mathews, A., Santucci
A B I L L
To amend sections 5747.70 and 5747.78 of the
Revised Code to modify the income tax deductions
for contributions to 529 plans and ABLE
accounts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.70 and 5747.78 of the
Revised Code be amended to read as follows:
Sec. 5747.70. (A) In computing Ohio adjusted gross income,
a deduction from federal adjusted gross income is allowed to a
taxpayer who contributes to or purchases tuition units under a
qualified tuition program established in accordance with section
529 of the Internal Revenue Code. The amount of the deduction
shall equal the amount contributed or purchased during the
taxable year to the extent that the amounts of such
contributions and purchases were not deducted in determining the
contributor's or purchaser's federal adjusted gross income for
the taxable year. The combined amount of contributions and
purchases deducted in any taxable year by a taxpayer or the
taxpayer and the taxpayer's spouse, regardless of whether the
taxpayer and the taxpayer's spouse file separate returns or a
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As Introduced
joint return, is limited to four thousand dollars shall not
exceed the annual contribution limit for each beneficiary for
whom contributions or purchases are made. If the combined annual
contributions and purchases for a beneficiary exceed four
thousand dollarsthe annual contribution limit , the excess may be
carried forward and deducted in future taxable years until the
contributions and purchases have been fully deducted.
(B) In computing Ohio adjusted gross income, a deduction
from federal adjusted gross income is allowed for:
(1) Income related to tuition units and contributions that
as of the end of the taxable year have not been refunded
pursuant to the termination of a qualified tuition program
payment contract or account to the extent that such income is
included in federal adjusted gross income.
(2) The excess of the total purchase price of tuition
units refunded during the taxable year pursuant to the
termination of a qualified tuition program payment contract over
the amount of the refund, to the extent the amount of the excess
was not deducted in determining federal adjusted gross income.
Division (B)(2) of this section applies only to units for which
no deduction was allowable under division (A) of this section.
(C) In computing Ohio adjusted gross income, there shall
be added to federal adjusted gross income the amount of loss
related to tuition units and contributions that as of the end of
the taxable year have not been refunded pursuant to the
termination of a qualified tuition program payment contract or
account to the extent that such loss was deducted in determining
federal adjusted gross income.
(D) For taxable years in which distributions or refunds
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48 H. B. No. 48 Page 3
As Introduced
are made under a qualified tuition program for any reason other
than payment of higher education expenses, or the beneficiary's
death, disability, or receipt of a scholarship as described in
section 3334.10 of the Revised Code:
(1) If the distribution or refund is paid to the purchaser
or contributor or beneficiary, any portion of the distribution
or refund not included in the recipient's federal adjusted gross
income shall be added to the recipient's federal adjusted gross
income in determining the recipient's Ohio adjusted gross
income, except that the amount added shall not exceed amounts
previously deducted under division (A) of this section less any
amounts added under division (D)(1) of this section in a prior
taxable year.
(2) If amounts paid by a purchaser or contributor on or
after January 1, 2000, are distributed or refunded to someone
other than the purchaser or contributor or beneficiary, the
amount of the payment not included in the recipient's federal
adjusted gross income, less any amounts added under division (D)
of this section in a prior taxable year, shall be added to the
recipient's federal adjusted gross income in determining the
recipient's Ohio adjusted gross income.
(E) As used in this section, the "annual contribution
limit" for taxable years beginning in 2025 equals eight thousand
dollars, if the taxpayer and the taxpayer's spouse file a joint
return, or four thousand dollars, in the case of all other
taxpayers. For taxable years beginning in 2026 and thereafter,
the tax commissioner shall adjust the annual contribution limits
in the manner described in this division.
In August of each year, beginning in 2026, the
commissioner shall multiply each annual contribution limit by
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As Introduced
the percentage increase in the gross domestic product deflator
for that period calculated during that August under section
5747.025 of the Revised Code; add the resulting product to the
respective annual contribution limit for taxable years beginning
in the preceding calendar year; and round the resulting sum up
to the nearest multiple of fifty dollars. The adjusted amounts
apply to taxable years beginning in the calendar year in which
the adjustment is made and to taxable years beginning in each
ensuing calendar year until a calendar year in which a new
adjustment is made pursuant to this division. The commissioner
shall not make a new adjustment in any calendar year in which
the amount resulting from the adjustment would be less than the
amount resulting from the adjustment in the preceding calendar
year.
Sec. 5747.78. In computing Ohio adjusted gross income, a
deduction from federal adjusted gross income is allowed to a
contributor for amounts contributed during the taxable year to
an ABLE savings account opened in accordance with sections
113.50 to 113.56 of the Revised Code to the extent that the
amounts contributed have not been deducted in computing the
contributor's federal adjusted gross income for the taxable
year. The total amount of contributions deducted for any taxable
year by a taxpayer or the taxpayer and the taxpayer's spouse,
regardless of whether the taxpayer and the taxpayer's spouse
file separate returns or a joint return, shall not exceed the
annual contribution limit for each beneficiary for whom
contributions are made. If the total annual contributions for a
beneficiary exceed the annual contribution limit, the excess may
be carried forward and deducted in future taxable years until
the contributions have been fully deducted.
As used in this section, "annual contribution limit" means
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As Introduced
the limit prescribed in section 5747.70 of the Revised Code on
the dollar amount of contributions and purchases that a
taxpayer, or a taxpayer and the taxpayer's spouse, may deduct
during a taxable year under that section with respect to each
beneficiary for whom contributions or purchases are made has the
same meaning as in section 5747.70 of the Revised Code .
Section 2. That existing sections 5747.70 and 5747.78 of
the Revised Code are hereby repealed.
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