OH HB578

Establishes a nonrefundable income tax credit equal to 50% of cash contributions made to qualifying child care programs, capped at $100,000 per taxable year.

Defines qualifying child care programs as licensed child care programs, child day camps, and other child care providers as defined in Ohio Revised Code section 5104.01.

Prohibits taxpayers from claiming the credit for contributions to programs from which they receive services, except employers who receive employee discounts regardless of whether contributions are exchanged for the discount.

Requires taxpayers to provide the tax commissioner with receipts or documentation from the child care program confirming the contribution amount and that funds will be used for current operating and capital expenses.

Pass-through entity investors may claim their proportionate share of the credit, but total credits allocated to all investors cannot exceed $100,000 per entity's taxable year.