As Introduced
136th General Assembly
Regular Session S. B. No. 40
2025-2026
Senator O'Brien
Cosponsors: Senators Koehler, Cirino, Schaffer
A B I LL
To amend sections 5747.98 and 5751.98 and to enact
sections 5747.74 and 5751.56 of the Revised Code
to authorize a nonrefundable tax credit for
donations to certain pregnancy resource centers
and maternity homes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.98 and 5751.98 be amended
and sections 5747.74 and 5751.56 of the Revised Code be enacted
to read as follows:
Sec. 5747.74. (A) As used in this section, "tax credit
certificate" has the same meaning as in section 5751.56 of the
Revised Code.
(B) There is hereby allowed a nonrefundable credit against
a taxpayer's aggregate tax liability under section 5747.02 of
the Revised Code equal to the amount stated in a tax credit
certificate issued to the taxpayer, to the extent the
certificate authorizes the credit to be claimed against that tax
liability, except that the amount claimed may not exceed fifty
per cent of the applicant's aggregate tax liability for the
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As Introduced
taxable year, before applying any other credit against that tax.
The credit shall be claimed for the taxable year in which
the certificate is issued and in the order required by section
5747.98 of the Revised Code. Any credit amount in excess of
fifty per cent of the taxpayer's tax liability, after allowing
for any other credits preceding the credit in that order, may be
carried forward for five taxable years, but the amount of the
excess credit claimed in any such year may not exceed fifty per
cent of the applicant's tax liability for the taxable year,
before applying any other credit against that tax, and shall be
deducted from the balance carried forward to the next year.
(C) If the person issued a tax credit certificate is a
pass-through entity, the credit may be allocated among the
entity's equity owners in proportion to their ownership
interests or in such proportions or amounts as the equity owners
mutually agree.
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:
The nonrefundable credit for donations to pregnancy
resource centers under section 5747.74 of the Revised Code;
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;
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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 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
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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
122.84 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;
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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.
(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
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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:
(1) "Affiliate" means a person that has with another
person a legal relationship created or governed by at least one
written instrument that demonstrates any of the following:
(a) Common ownership, management, or control;
(b) A franchise agreement;
(c) The granting or extension of a license or other
agreement that authorizes a person to use the other person's
brand name, trademark, service mark, or other registered
identification mark.
(2) "Nontherapeutic abortion" has the same meaning as in
section 9.04 of the Revised Code.
(3) "Promote" means to advocate for, assist with,
encourage, or popularize through advertising or publicity.
(4)(a) "Qualifying pregnancy resource center" means a
person to which all of the following apply:
(i) The person is an organization exempt from taxation
under section 501(a) of the Internal Revenue Code, as described
in section 501(c)(3) of the Internal Revenue Code;
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(ii) The person maintains its principal office or presence
in this state;
(iii) At least fifty per cent of its clients claim to be
residents of this state;
(iv) The person's principal purpose is to provide free or
low-cost assistance, which may include pregnancy tests,
ultrasounds, counseling, material support, and similar services
for pregnant women in carrying their pregnancies to term.
(b) "Qualifying pregnancy resource center" includes a
maternity home licensed under Chapter 3711. of the Revised Code
that meets the requirements described in divisions (A)(4)(a)(i)
to (iii) of this section and that is not an organization
described in division (A)(4)(c)(iii) of this section.
(c) "Qualifying pregnancy resource center" does not
include any of the following:
(i) A hospital as defined in section 3727.01 of the
Revised Code;
(ii) A nursing home or residential care facility as
defined in section 3721.01 of the Revised Code;
(iii) An organization that does any of the following:
(I) Performs nontherapeutic abortions;
(II) Promotes nontherapeutic abortions;
(III) Contracts with any person that performs or promotes
nontherapeutic abortions;
(IV) Is an affiliate of any person that performs or
promotes nontherapeutic abortions.
(5) "Tax credit certificate" means the certificate issued
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by the tax commissioner under division (C) of this section.
(6) "Certified pregnancy resource center" means a
qualifying pregnancy resource center certified by the tax
commissioner under division (B) of this section.
(B) A person may apply to the tax commissioner, on forms
and in the manner prescribed by the commissioner, to be
certified as a qualifying pregnancy resource center. With this
application, the person shall certify that it meets all of the
requirements of a qualifying pregnancy resource center by
submitting the following information:
(1) Verification that the person qualifies as an
organization exempt from taxation under section 501(a) of the
Internal Revenue Code, as described in section 501(c)(3) of the
Internal Revenue Code;
(2) A statement that the person maintains its principal
office or presence in this state and that at least fifty per
cent of its clients claim to be residents of this state;
(3) A statement that the person does not perform or
promote nontherapeutic abortions, contract with any person that
performs or promotes nontherapeutic abortions, and is not an
affiliate of any person that performs or promotes nontherapeutic
abortions.
The application shall be signed by an officer of the
person under penalty of perjury. The tax commissioner shall
review each application and determine if the person meets the
requirements of a qualifying pregnancy resource center. The
commissioner shall notify the applicant of the commissioner's
determination within thirty days after the commissioner receives
the application.
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After granting certification to a person, the commissioner
may periodically request recertification from the person. Upon
receiving a recertification request, the person shall send to
the tax commissioner all of the information required under
divisions (B)(1) to (3) of this section and anything else
required by the commissioner to verify that the person continues
to qualify as a qualifying pregnancy resource center. A person
granted a certification under this division shall notify the
commissioner of any changes that may affect eligibility within
sixty days after such a change. The commissioner shall revoke
the certification of any person that no longer qualifies as a
qualifying pregnancy resource center under this section. After a
person's certification is revoked, the person may again be
certified if the person submits another application and written
certification to the tax commissioner as required under this
division. The commissioner shall post and maintain a list of all
qualifying pregnancy resource centers on the department of
taxation's web site.
(C)(1) A person that contributes cash to one or more
certified pregnancy resource centers in a calendar year may,
within sixty days after making that contribution, submit an
application to the tax commissioner for a tax credit authorized
by this section. The application shall be made on a form and in
a manner that the commissioner shall prescribe. The application
shall state the amount of the contribution, the tax against
which the credit would be claimed, and any other information the
commissioner may require. The applicant shall also include with
the application a copy of a receipt or other document issued by
the qualifying pregnancy resource center acknowledging the
taxpayer's contribution to the center, the amount of the
contribution, and the date the contribution was made.
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Except as provided in division (C)(3) of this section, the
commissioner shall evaluate applications in the order in which
they are received and issue a determination to an applicant not
later than thirty days after receipt of an application. If the
commissioner denies an application, the determination shall
state the reason for the denial. If the commissioner approves an
application, the determination shall include a tax credit
certificate listing the amount of credit that the applicant may
claim and the tax against which it may be claimed.
(2) The amount of the credit shall equal the amount of the
applicant's contribution to a certified pregnancy resource
center in the current calendar year, as approved by the
commissioner and listed on the tax credit certificate.
(3) The commissioner may not approve more than ten million
dollars in total tax credits in a calendar year and may not
approve more than five million dollars in tax credits on the
basis of donations to the same certified pregnancy resource
center in a calendar year.
(D) There is hereby allowed a nonrefundable credit against
a taxpayer's aggregate tax liability under section 5747.02 of
the Revised Code or against the tax imposed under section
5751.02 of the Revised Code, as authorized by the tax credit
certificate, equal to the amount listed on that certificate. The
credit shall be claimed in the manner prescribed by division (E)
of this section or by section 5747.74 of the Revised Code, as
applicable. A taxpayer shall include a copy of the taxpayer's
tax credit certificate with the return on which the credit is
claimed.
(E) A taxpayer issued a tax credit certificate authorizing
the taxpayer to claim a credit against the tax levied under
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section 5751.02 of the Revised Code may claim a credit against
that tax equal to the amount stated in the certificate for the
tax period in which the certificate is issued, but the amount
claimed may not exceed fifty per cent of the applicant's tax
liability for the tax period, before applying any other credit
against that tax. The credit shall be claimed in the order
required by section 5751.98 of the Revised Code. Any credit
amount in excess of fifty per cent of the taxpayer's tax
liability, after allowing for any other credits preceding the
credit in that order, may be carried forward for five calendar
years, but the amount of the excess credit claimed in any such
year may not exceed fifty per cent of the taxpayer's tax
liability for the tax period, before applying any other credit
against that tax, and shall be deducted from the balance carried
forward to the next year.
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 credit for donations to pregnancy
resource centers under section 5751.56 of the Revised Code;
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
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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.
(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 5747.98 and 5751.98 of
the Revised Code are hereby repealed.
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