House committee hears bill to create employer tax credit for paid leave for living organ donors

The Ohio House Ways and Means Committee held a first hearing on House Bill 122, a measure to create an employer income tax credit that would reimburse paid leave for employees who serve as living organ donors, sponsors told the committee.

Supporters said the credit would remove a barrier to donation and could yield downstream savings by reducing reliance on costly treatments such as dialysis. "But these costs, I think, are something Ohio can readily afford," Representative Lambton told the committee, citing a Legislative Service Commission (LSC) estimate of potential revenue loss under a maximum-use scenario.

The bill would allow qualifying employers a credit of up to $300 per day for donor leave, with a maximum credit of $9,000 per eligible employee and a stated limit of $54,000 per taxable year, sponsors said. LSC’s fiscal estimate, explained during testimony, assumed about 81 eligible working donors in 2022 and projected roughly $700,000 in foregone state revenue under the maximum assumptions; witnesses said the actual fiscal impact could be lower if donors return to work sooner or earn less than the $300-per-day assumed maximum.

Representative Hall, a joint sponsor, told the committee that nearly 3,000 Ohioans are currently on transplant waiting lists and that more than 1,900 of those are waiting for kidney transplants. "Living organ donation offers a solution to the transplantable, kidneys, shortage," Hall said, arguing the credit would encourage employers to provide paid leave and increase the pool of available organs.

Testimony also noted that eligible living donations under HB 122 would follow the federal National Organ Transplant Act’s standards and procedures. The bill would require the Ohio Tax Commissioner to issue an annual report on the paid donor leave credit to the chairs of the main Ohio Senate and Ohio House committees that handle taxation.

Committee members asked clarifying questions during a roughly 30-minute exchange. Representative Demetrio asked about fiscal impact beyond the LSC estimate; sponsors reiterated that the $700,000 figure reflects maximum-use assumptions and pointed to potential offsets if transplant recipients avoid long-term dialysis or similar costs. Representative Richardson asked why the measure provides a credit rather than a deduction; sponsors replied that a credit more directly reimburses employers dollar-for-dollar so employers are not out of pocket for the period of paid leave. Members also confirmed the credit is nonrefundable.

A motion by one member to suspend the rules and take the bill up for an immediate vote was met with an objection; no suspension or vote occurred. The committee concluded the first hearing on HB 122 with no formal action taken and no amendments adopted.

The committee record shows discussion focused on the bill’s fiscal assumptions, the scope of eligible donations, and how the credit would operate for employers and employees. No formal vote or referral was announced during the hearing; sponsors said they would be available for follow-up questions as the bill proceeds through committee stages.