Sub. H.B. No. 116 Summary

• Amends sections 5733.40 and 5747.01 of the Ohio Revised Code to allow taxpayers to deduct the full amount of bonus depreciation and enhanced expensing allowances in a single year, matching federal income tax treatment.

• For tax years beginning in 2023 or later, taxpayers can elect to deduct entire amounts of bonus depreciation and section 179 expensing that were previously required to be added back and deducted over multiple years.

• Allows taxpayers to make the election irrevocably on their first tax return filed after January 1, 2023, providing flexibility for depreciation deduction timing.

• Applies to both individuals and pass-through entities calculating adjusted gross income and Ohio taxable income under the state's income tax system.