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OH HB365
Bill
Status
3/13/2013
Primary Sponsor
Philip Rose
Click for details
AI Summary
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Allows taxpayers claiming enhanced federal depreciation deductions under Internal Revenue Code section 168(k) or section 179 to reduce the required add-back for Ohio income tax purposes if they increase payroll by at least 10% in the year the deduction is taken compared to the preceding year.
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Substitutes "two-thirds" for "five-sixths" in the depreciation add-back calculation for taxable years beginning in 2012 or later when income taxes withheld increase by 10% or more.
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Exempts taxpayers from adding back depreciation amounts entirely if the increase in income taxes withheld by the taxpayer and any pass-through entities equals or exceeds the total depreciation deductions claimed.
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Defines "income taxes withheld" as amounts withheld and remitted under Ohio law by an employer during the taxable year.
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Modifies the deduction provisions in subsequent years to allow taxpayers to deduct portions of previously added-back depreciation amounts over multiple years based on the method of calculation used.
Legislative Description
To allow taxpayers who claim an enhanced federal income tax depreciation deduction to reduce the amount of the deduction the taxpayer must add-back for Ohio income tax purposes if the taxpayer increases payroll in the year the enhanced federal deduction is taken by at least ten per cent over the preceding year.
Income tax-depreciation add-back-reduce if increase payroll
Last Action
Effective Date
3/13/2013