OH HB804

Creates a refundable state income tax credit for child care expenses for taxpayers with household income at or below 750% of the federal poverty line, applicable to children under age 5

Maximum credit amounts are $2,000 for one qualifying child or $4,000 for two or more qualifying children, multiplied by a credit percentage that decreases as income rises (100% at or below 550% FPL, down to 25% at 701-750% FPL)

Taxpayers claiming this new credit cannot also claim the existing dependent care credit under section 5747.054 for the same child care expenses in the same tax year

Applies to taxable years beginning on or after January 1, 2027

Amends Ohio Revised Code sections 5747.08 and 5747.98 and enacts new section 5747.74