House approves tax conformity legislation

Written on Mar 01, 2018

The Ohio House on Wednesday passed the substitute version of Senate Bill 22, the tax conformity bill, which has been updated for tax year 2017.

The original version of the bill was intended to deal with the 2016 tax year conformity issues, but H.B. 11 (Scherer) was instead signed into law last year.

Because the bill passed the Senate last year, it will only be subject to an "up or down" concurrence vote later this month on agreement to the House amendments. No further Senate committee hearings are necessary.

OSCPA supported the bill in written testimony submitted Feb. 27 to the House Ways & Means Committee. Changes in the current substitute bill include an:

  • Authorization for taxpayers to claim an exemption for dependents on their Ohio return even though they are no longer able to claim a corresponding federal exemption.
  • Emergency clause. There were only two conformity issues from the Tax Cuts and Jobs Act (H.R. 1) affecting tax year 2017, but several tax provisions signed into law in the Bipartisan Budget Act of 2018, H.R. 1892, were retroactively extended for 2017 only and require conformity.
  • Expansion of Ohio’s 529 education savings plan so that, as recently authorized in federal law, plan earnings used for K-12 education expenses are tax-exempt, and so that amounts contributed to Ohio’s 529 plan are eligible for Ohio’s tax deduction even if ultimately used to pay K-12 education expenses.

Stay tuned for further updates on the Senate concurrence vote and Governor’s Kasich’s signature.

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