The Ohio Senate unanimously passed S.B. 18 Tuesday. The measure would conform the state's tax code to several changes to federal law that would directly affect the tax base of many Ohio income taxpayers by adjusting their federal adjusted gross income, according to a bill summary.
The changes include a temporary look-back rule for determination of earned income for purposes of the earned income tax credit, the allowance of a 30-year depreciation period for certain residential rental property and the temporary allowance of a full deduction for business meals.
The bill also would clarify the tax treatment of Paycheck Protection Program loan forgiveness, including a clarification that expenses paid with covered loans can be deductible, according to a bill summary.
Additionally, the measure exempts second-draw PPP loan amounts forgiven under federal law from the commercial activity tax. A similar exemption already exists for first-draw loan amounts forgiven under the Coronavirus Aid, Relief and Economic Security Act
.The bill was introduced by Sens. Kristina Roegner, R-Hudson, and Tim Schaffer, R-Lancaster. It will next be considered by the state House of Representatives.
--Editing by Vincent Sherry.
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