Tax conformity bill passes Senate

Written on Mar 22, 2018

OSCPA staff report

The Ohio Senate on Wednesday passed Senate Bill 22, the tax conformity bill, which now heads to Governor Kasich’s desk for his consideration. An emergency clause is part of the legislation, allowing it to take effect immediately upon Gov. Kasich’s signature.

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, paving the way for faster consideration this year.

The Ohio House passed the substitute version of the bill at the end of February. OSCPA supported the bill in  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.

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