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Committee hears bill to create tax credit incentivizing paid parental leave
Summary
Sponsors told the House Ways and Means Committee that House Bill 231 would create a nonrefundable tax credit for employers who provide paid parental leave, capped at $300 per day and $54,000 per employer per year, with carryover for unused credits and annual reporting by the Ohio tax commissioner.
Representatives Williams and Melanie Miller told the House Ways and Means Committee on Feb. 20 that House Bill 231 would create a nonrefundable tax credit to encourage employers to provide paid parental leave.
"The credit will equal the lesser of the amount of benefits paid to the employee, or $300 per day of paid parental leave," Williams said, and the measure would cap employer benefits at $54,000 per year while allowing unused credit to carry over for up to three years. Miller said the bill "doesn't impose a new mandate on employers" but instead "creates a nonrefundable tax credit that would encourage and reward businesses that voluntarily offer paid parental leave." She also noted the Ohio tax commissioner would report annually by Sept. 1 on the number of businesses claiming the credit and the total value of credits awarded.
Committee members pressed sponsors on implementation and fiscal questions. Chair Romer asked whether an existing state policy for leave covered state employees; Williams said she did not have the state policy on hand and would provide details later. Ranking Member Troy asked about a fiscal estimate; Williams said the committee had requested a fiscal analysis and that the budgetary impact would depend on employer take‑up. Representative Siegrist asked whether the credit applies only to parents (not grandparents or other caregivers); sponsors confirmed the credit is limited to parents and includes adoption, but not foster parents, which sponsors said was intentional to avoid overlapping compensation with state foster‑care payments.
Sponsors said the credit would allow businesses that already offer paid leave to receive the incentive and that the carryover period was chosen to help smaller businesses recoup costs spread across years. The committee did not vote on the bill; the hearing concluded with sponsors offering to supply additional information to members.
The committee is expected to request a fiscal analysis before any further action.
