H.B. 577 Summary

• Creates a new refundable child care expense credit for Ohio taxpayers whose household income does not exceed 750% of the federal poverty line.

• Credit equals eligible child care expenses multiplied by a credit percentage ranging from 100% (at or below 450% of poverty line) down to 10% (701-750% of poverty line).

• Eligible expenses are those qualifying as employment-related expenses under federal tax code Section 21, for care of dependent children under age 13, without regard to federal limitations.

• Maximum credit per family is $3,000 for one qualifying child or $6,000 for two or more qualifying children per tax year; taxpayers cannot claim this credit and the dependent care credit simultaneously.

• Credit is refundable and claimed in a specified order under Section 5747.98 of the Revised Code; applies to tax years beginning on or after the bill's effective date.