As Introduced

136th General Assembly

Regular Session S. B. No. 129

2025-2026

To amend sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 and to enact sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, 5747.74, and 5751.56 of the Revised Code to authorize a refundable tax credit for a portion of employer group health plan premiums.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 be amended and sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, 5747.74, and 5751.56 of the Revised Code be enacted to read as follows:

Sec. 5725.39. (A) As used in this section:

(1) "Health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(2) "Taxpayer" means a domestic insurance company subject to the tax imposed under section 5725.18 of the Revised Code.

(B) There is allowed a refundable credit against the tax imposed by section 5725.18 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the calendar year to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The credit shall be claimed in the order required under section 5725.98 of the Revised Code. If the credit amount exceeds the tax otherwise due under section 5725.18 of the Revised Code after deducting all other credits in that order, the excess shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, 5747.74, or 5751.56 of the Revised Code.

Sec. 5725.98. (A) To provide a uniform procedure for calculating the amount of tax imposed by section 5725.18 of the Revised Code that is due under this chapter, a taxpayer shall claim any credits and offsets against tax liability to which it is entitled in the following order:

The credit for an insurance company or insurance company group under section 5729.031 of the Revised Code;

The credit for eligible employee training costs under section 5725.31 of the Revised Code;

The credit for purchasers of qualified low-income community investments under section 5725.33 of the Revised Code;

The nonrefundable job retention credit under division (B) of section 122.171 of the Revised Code;

The nonrefundable credit for investments in rural business growth funds under section 122.152 of the Revised Code;

The nonrefundable Ohio low-income housing tax credit under section 5725.36 of the Revised Code;

The nonrefundable affordable single-family home credit under section 5725.37 of the Revised Code;

The nonrefundable credit for contributing capital to a transformational mixed use development project under section 5725.35 of the Revised Code;

The nonrefundable opportunity zone investment credit under section 5725.38 of the Revised Code;

The offset of assessments by the Ohio life and health insurance guaranty association permitted by section 3956.20 of the Revised Code;

The refundable credit for rehabilitating a historic building under section 5725.34 of the Revised Code;

The refundable credit for Ohio job retention under former division (B)(2) or (3) of section 122.171 of the Revised Code as those divisions existed before September 29, 2015, the effective date of the amendment of this section by H.B. 64 of the 131st general assembly;

The refundable credit for Ohio job creation under section 5725.32 of the Revised Code;

The refundable credit under section 5725.19 of the Revised Code for losses on loans made under the Ohio venture capital program under sections 150.01 to 150.10 of the Revised Code;

The refundable credit for employer health benefit plan premiums under section 5725.39 of the Revised Code.

(B) For any credit except the refundable credits enumerated in this section, the amount of the credit for a taxable year 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 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. 5726.62. (A) As used in this section, "health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(B) There is allowed a refundable credit against the tax imposed by section 5726.02 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the taxable year to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The credit shall be claimed in the order required under section 5726.98 of the Revised Code. If the credit amount exceeds the tax otherwise due under section 5726.02 of the Revised Code after deducting all other credits in that order, the excess shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5727.242, 5727.301, 5729.22, 5736.51, 5747.74, or 5751.56 of the Revised Code.

Sec. 5726.98. (A) To provide a uniform procedure for calculating the amount of tax due under section 5726.02 of the Revised Code, a taxpayer shall claim any credits to which the taxpayer is entitled under this chapter in the following order:

The nonrefundable job retention credit under division (B) of section 5726.50 of the Revised Code;

The nonrefundable credit for purchases of qualified low-income community investments under section 5726.54 of the Revised Code;

The nonrefundable credit for qualified research expenses under section 5726.56 of the Revised Code;

The nonrefundable credit for qualifying dealer in intangibles taxes under section 5726.57 of the Revised Code;

The nonrefundable Ohio low-income housing tax credit under section 5726.58 of the Revised Code;

The nonrefundable affordable single-family home credit under section 5726.60 of the Revised Code;

The nonrefundable welcome home Ohio (WHO) program credit under section 122.633 of the Revised Code;

The nonrefundable opportunity zone investment credit under section 5726.61 of the Revised Code;

The refundable credit for rehabilitating an historic building under section 5726.52 of the Revised Code;

The refundable job retention or job creation credit under division (A) of section 5726.50 of the Revised Code;

The refundable credit under section 5726.53 of the Revised Code for losses on loans made under the Ohio venture capital program under sections 150.01 to 150.10 of the Revised Code;

The refundable motion picture and broadway theatrical production credit under section 5726.55 of the Revised Code;

The refundable credit for film and theater capital improvement projects under section 5726.59 of the Revised Code;

The refundable credit for employer health benefit plan premiums under section 5726.62 of the Revised Code.

Sec. 5727.242. (A) As used in this section:

(1) "Health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(2) "Taxpayer" means a person subject to the tax imposed by section 5727.24 of the Revised Code.

(B) There is hereby allowed a refundable credit against the tax imposed by section 5727.24 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the calendar quarter or calendar year, as applicable, to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The taxpayer shall claim the credit after the credit authorized in sections 5727.241 and 5727.291 of the Revised Code. Any credit amount in excess of the taxpayer's tax liability shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5726.62, 5727.301, 5729.22, 5736.51, 5747.74, or 5751.56 of the Revised Code.

Sec. 5727.301. (A) As used in this section:

(1) "Health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(2) "Taxpayer" means a person subject to the tax imposed by section 5727.30 of the Revised Code.

(B) There is hereby allowed a refundable credit against the tax imposed by section 5727.30 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the calendar year to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The taxpayer shall claim the credit after the credit authorized in section 5727.29 of the Revised Code. Any credit amount in excess of the taxpayer's tax liability shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5726.62, 5727.242, 5729.22, 5736.51, 5747.74, or 5751.56 of the Revised Code.

Sec. 5729.22. (A) As used in this section:

(1) "Health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(2) "Taxpayer" means a foreign insurance company subject to the tax imposed by section 5729.03 of the Revised Code.

(B) There is allowed a refundable credit against the tax imposed by section 5729.03 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the calendar year to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The credit shall be claimed in the order required under section 5729.98 of the Revised Code. If the credit amount exceeds the tax otherwise due under section 5729.03 of the Revised Code after deducting all other credits in that order, the excess shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5726.39, 5726.62, 5727.242, 5727.301, 5736.51, 5747.74, or 5751.56 of the Revised Code.

Sec. 5729.98. (A) To provide a uniform procedure for calculating the amount of tax due under this chapter, a taxpayer shall claim any credits and offsets against tax liability to which it is entitled in the following order:

The credit for an insurance company or insurance company group under section 5729.031 of the Revised Code;

The credit for eligible employee training costs under section 5729.07 of the Revised Code;

The credit for purchases of qualified low-income community investments under section 5729.16 of the Revised Code;

The nonrefundable job retention credit under division (B) of section 122.171 of the Revised Code;

The nonrefundable credit for investments in rural business growth funds under section 122.152 of the Revised Code;

The nonrefundable Ohio low-income housing tax credit under section 5729.19 of the Revised Code;

The nonrefundable affordable single-family home credit under section 5729.20 of the Revised Code;

The nonrefundable credit for contributing capital to a transformational mixed use development project under section 5729.18 of the Revised Code;

The nonrefundable opportunity zone investment credit under section 5729.21 of the Revised Code;

The offset of assessments by the Ohio life and health insurance guaranty association against tax liability permitted by section 3956.20 of the Revised Code;

The refundable credit for rehabilitating a historic building under section 5729.17 of the Revised Code;

The refundable credit for Ohio job creation under section 5729.032 of the Revised Code;

The refundable credit under section 5729.08 of the Revised Code for losses on loans made under the Ohio venture capital program under sections 150.01 to 150.10 of the Revised Code;

The refundable credit for employer health benefit plan premiums under section 5729.22 of the Revised Code.

Sec. 5736.51. (A) As used in this section, "health benefit plan," "basic health care services," and "resident" have the same meanings as in section 5751.56 of the Revised Code.

(B) There is allowed a refundable credit against the tax imposed by this chapter for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the tax period to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The taxpayer shall claim the credit after any credits allowed under section 5736.50 of the Revised Code. Any credit amount in excess of the taxpayer's tax liability shall be refunded to the taxpayer.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5747.74, or 5751.56 of the Revised Code.

Sec. 5747.74. (A) As used in this section, "health benefit plan" and "basic health care services" have the same meanings as in section 5751.56 of the Revised Code.

(B) There is allowed a refundable credit against the taxpayer's aggregate tax liability under section 5747.02 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the taxable year to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The credit shall be claimed in the order required under section 5747.98 of the Revised Code. If the credit amount exceeds the tax otherwise due under section 5747.02 of the Revised Code after deducting all other credits in that order, the excess shall be refunded to the taxpayer. Nothing in this section limits or disallows pass-through treatment of the credit.

No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, or 5751.56 of the Revised Code.

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;

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) 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 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 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 Code for taxes levied under section 5747.38 of the Revised Code paid by an electing pass-through entity;

The refundable credit for employer health benefit plan premiums under section 5747.74 of the Revised Code.

(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.

Sec. 5751.56. (A) As used in this section, "health benefit plan" has the same meaning as in section 3922.01 of the Revised Code, "basic health care services" has the same meaning as in section 1751.01 of the Revised Code, and "resident" has the same meaning as in section 5747.01 of the Revised Code.

(B) There is allowed a refundable credit against the tax imposed by section 5751.02 of the Revised Code for a taxpayer that purchases a group health benefit plan that provides coverage for basic health care services to one or more of the taxpayer's employees who are residents. The credit shall equal one and three-tenths per cent of the portion of the premiums paid by the taxpayer during the tax period to purchase such a plan for the taxpayer's employees who are residents. No person shall claim the credit authorized by this section based on coverage provided through a program of self-insurance.

The credit shall be claimed in the order required under section 5751.98 of the Revised Code. If the credit amount exceeds the tax otherwise due under section 5751.02 of the Revised Code after deducting all other credits in that order, the excess shall be refunded to the taxpayer.

A person that is not required to register with the tax commissioner under section 5751.04 of the Revised Code and pay the tax under this chapter may not claim the credit authorized by this section.

(C) No credit shall be allowed under this section on the basis of group health benefit plan premiums if those premiums are the basis of a credit claimed under section 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, or 5747.74 of the Revised Code.

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 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 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;

The refundable credit for employer health benefit plan premiums under section 5751.56 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 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 of the Revised Code are hereby repealed.

Section 3. The enactment by this act of sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, 5747.74, and 5751.56 of the Revised Code applies to premiums paid on and after the effective date of this section by an employer for a group health benefit plan that provides coverage for basic health care services, as those terms are defined in section 5751.56 of the Revised Code, as enacted by this act.