COLUMBUS, Ohio — On October 21, 2024, Ohio lawmakers introduced H.B. No. 682, the “Paid Parental Leave Act,” aimed at encouraging businesses to provide paid parental leave by offering income tax credits. Sponsored by a bipartisan group of legislators, including Representatives Josh Williams (R), Melanie Miller (R), and Darnell Brewer (D), the bill has garnered moderate partisan support, with six Republican sponsors and one Democrat.
The proposed legislation would amend section 5747.98 and enact section 5747.74 of the Ohio Revised Code. Under the act, employers who provide at least 56 days of paid parental leave for employees experiencing the birth, adoption, or stillbirth of a child would be eligible for a non-refundable tax credit. The credit would be calculated as the lesser of $300 per day of parental leave or the total amount of benefits paid, with a cap of $54,000 annually for each employer.
If the credit exceeds the employer’s tax liability, the excess can be carried forward for up to three years. Employers must be registered with the federal E-Verify system to qualify for the tax credit, ensuring compliance with employment verification laws.
The Ohio Tax Commissioner will be required to report annually on the number of credits claimed and the total value of the program. The Act is set to apply to tax years starting January 1, 2024.
While the bill remains in the early stages, it signals a legislative push to address parental leave by incentivizing businesses through tax benefits.