HB 116 — Enact the Ohio Blockchain Basics Act
Last action — Referred to committee
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✓Introduced
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✓In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill has passed the House. Introduced February 24, 2025. It now moves to the second chamber.
Next likely step: consideration and a floor vote in the Senate.
Odds of enactment
Moderate chanceBased on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Passed House
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
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Mixed recorded votes
2 passed, 1 failed in recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
To amend sections 301.30, 504.04, 715.013, 718.01, 1315.01, and 5747.01 and to enact sections 101.88, 1352.01, 1352.02, 1352.03, and 1352.04 of the Revised Code to enact the Ohio Blockchain Basics Act to address mining, taxation, and regulation of digital assets and digital asset investments by the state retirement systems.
Bill Text
What changed in the latest version
84 added · 83 removedPlain-language change summary
The recent amendments to Bill HB 116 show that multiple lines referencing the House Technology and Innovation Committee were removed, while various lines related to the House's passage of the bill were added. This change indicates that the bill has moved beyond committee review and has successfully passed through the House, reflecting a broader consensus among lawmakers. The updates matter because they signify the bill's progress in the legislative process, potentially bringing it closer to becoming law.
As ReportedPassed by the House Technology and Innovation Committee 136th General Assembly Regular Session Sub.
Representatives Fischer, Lorenz, Mathews, T., McClain, Williams, ClaggettClaggett, Click, Daniels, Deeter, Dovilla, Gross, Hall, T., King, Lear, Mathews, A., Miller, M., Plummer, Roemer, Swearingen, Willis, Workman To amend sections 301.30, 504.04, 715.013, 718.01, 1 1315.01, and 5747.01 and to enact sections 2 1352.01, 1352.02, 1352.03, and 1352.04 of the 3 Revised Code to enact the Ohio Blockchain Basics 4 Act to address mining, taxation, and regulation 5 of digital assets.
As used in this section, "auxiliary 18 container" has the same meaning as in section 3767.32 of the 19 Sub.
116 Page 2 As ReportedPassed by the House Technologycontainer" andhas Innovationthe Committeesame meaning as in section 3767.32 of the 19 Revised Code.
38 (1) Exercise all powers of local self-government within 39 the unincorporated area of the township, other than powers that 40 are in conflict with general laws, except that the township 41 shall comply with the requirements and prohibitions of this 42 chapter, and shall enact no taxes other than those authorized by 43 general law, and except that no resolution adopted pursuant to 44 this chapter shall encroach upon the powers, duties, and 45 privileges of elected township officers or change, alter, 46 combine, eliminate, or otherwise modify the form or structure of 47 the township government unless the change is required or 48 permittedSub. by this chapter;
49 Sub.
116 Page 3 As ReportedPassed by the House Technologypermitted and Innovation Committee (2) Adopt and enforce within the unincorporated area of 50 the township local police, sanitary, and other similar 51 regulations that are not in conflict with general laws or 52 otherwise prohibited by division (B) of this section;chapter;
49 (2) Adopt and enforce within the unincorporated area of 50 the township local police, sanitary, and other similar 51 regulations that are not in conflict with general laws or 52 otherwise prohibited by division (B) of this section;
73 (5) Increase, decrease, or otherwise alter the powers or 74 duties of a township under any other chapter of the Revised Code 75 pertaining to agriculture or the conservation or development of 76 naturalSub. resources;
77 Sub.
116 Page 4 As ReportedPassed by the House Technologynatural andresources; Innovation Committee (6) Establish regulations affecting hunting, trapping, 78 fishing, or the possession, use, or sale of firearms;
77 (6) Establish regulations affecting hunting, trapping, 78 fishing, or the possession, use, or sale of firearms;
of the Revised Code, 105 except that the board of township trustees shall appoint a full- 106 Sub.
116 Page 5 As ReportedPassed by the House Technologyexcept andthat Innovationthe Committeeboard of township trustees shall appoint a full- 106 time or part-time law director pursuant to section 504.15 of the 107 Revised Code, and except that a five-member board of township 108 trustees approved for the township before September 26, 2003, 109 shall continue to serve as the legislative authority with 110 successive members serving for four-year terms of office until a 111 termination of a limited home rule government under section 112 504.03 of the Revised Code.
134 (2) A fee, tax, assessment, or other charge on digital 135 Sub.
116 Page 6 As ReportedPassed by the House Technology(2) andA Innovationfee, Committeetax, assessment, or other charge on digital 135 assets used as a method of payment for goods and services that 136 is based on the use of the digital assets as a method of 137 payment, on the sales, use, or consumption of such digital 138 assets, or on the basis of receipts received from the sale of 139 such digital assets.
160 Except as provided in section 718.81 of the Revised Code, if a 161 term used in this chapter that is not otherwise defined in this 162 chapter is used in a comparable context in both the laws of the 163 United States relating to federal income tax and in Title LVII 164 Sub.
116 Page 7 As ReportedPassed by the House TechnologyUnited States relating to federal income tax and Innovationin CommitteeTitle LVII 164 of the Revised Code and the use is not consistent, then the use 165 of the term in the laws of the United States relating to federal 166 income tax shall control over the use of the term in Title LVII 167 of the Revised Code.
If a qualified municipal corporation, on or 188 before December 31, 2013, exempts income earned by individuals 189 who are not residents of the qualified municipal corporation and 190 net profit of persons that are not wholly located within the 191 qualified municipal corporation, such individual or person shall 192 have no municipal taxable income for the purposes of the tax 193 Sub.
116 Page 8 As ReportedPassed by the House Technologyhave andno Innovationmunicipal Committeetaxable income for the purposes of the tax 193 levied by the qualified municipal corporation and may be 194 exempted by the qualified municipal corporation from the 195 requirements of section 718.03 of the Revised Code.
219 (1)(a) For residents, all income, salaries, qualifying 220 wages, commissions, and other compensation from whatever source 221 earned or received by the resident, including the resident's 222 distributive share of the net profit of pass-through entities 223 Sub.
116 Page 9 As ReportedPassed by the House Technologydistributive andshare Innovationof Committeethe net profit of pass-through entities 223 owned directly or indirectly by the resident and any net profit 224 of the resident, except as provided in division (D)(5) of this 225 section.
250 (d) Any amount of a net operating loss used to reduce a 251 taxpayer's net profit for a taxable year shall reduce the amount 252 Sub.
116 Page 10 As ReportedPassed by the House Technologytaxpayer's andnet Innovationprofit Committeefor a taxable year shall reduce the amount 252 of net operating loss that may be carried forward to any 253 subsequent year for use by that taxpayer.
279 (b) A municipal corporation that taxed any type of 280 intangible income on March 29, 1988, pursuant to Section 3 of 281 Sub.
116 Page 11 As ReportedPassed by the House Technologyintangible andincome Innovationon CommitteeMarch 29, 1988, pursuant to Section 3 of 281 S.B.
308 (5) Compensation paid under section 3501.28 or 3501.36 of 309 the Revised Code to a person serving as a precinct election 310 official to the extent that such compensation does not exceed 311 Sub.
116 Page 12 As ReportedPassed by the House Technologyofficial andto Innovationthe Committeeextent that such compensation does not exceed 311 one thousand dollars for the taxable year.
338 (13) Compensation paid to a person employed within the 339 Sub.
116 Page 13 As ReportedPassed by the House Technology(13) andCompensation Innovationpaid Committeeto a person employed within the 339 boundaries of a United States air force base under the 340 jurisdiction of the United States air force that is used for the 341 housing of members of the United States air force and is a 342 center for air force operations, unless the person is subject to 343 taxation because of residence or domicile.
361 (c) If, on December 6, 2002, a municipal corporation was 362 imposing, assessing, and collecting a tax on an S corporation 363 shareholder's distributive share of net profits of the S 364 corporation to the extent the distributive share would be 365 allocated or apportioned to this state under divisions (B)(1) 366 and (2) of section 5733.05 of the Revised Code if the S 367 corporation were a corporation subject to taxes imposed under 368 ChapterSub. 5733.
of the Revised Code, the municipal corporation may 369 Sub.
116 Page 14 As ReportedPassed by the House TechnologyChapter and5733. Innovation Committee continue to impose the tax on such distributive shares to the 370 extent such shares would be so allocated or apportioned to this 371 state only until December 31, 2004, unless a majority of the 372 electors of the municipal corporation voting on the question of 373 continuing to tax such shares after that date voted in favor of 374 that question at an election held November 2, 2004.
of the Revised Code, the municipal corporation may 369 continue to impose the tax on such distributive shares to the 370 extent such shares would be so allocated or apportioned to this 371 state only until December 31, 2004, unless a majority of the 372 electors of the municipal corporation voting on the question of 373 continuing to tax such shares after that date voted in favor of 374 that question at an election held November 2, 2004.
396 (b) The exemption provided in division (C)(16)(a) of this 397 section does not apply with respect to the municipal corporation 398 in which the employee resided at the time the employee earned 399 Sub.
116 Page 15 As ReportedPassed by the House Technologyin andwhich Innovationthe Committeeemployee resided at the time the employee earned 399 the qualifying wages.
427 (i) The individual's base of operation is located in the 428 Sub.
116 Page 16 As ReportedPassed by the House Technology(i) andThe Innovationindividual's Committeebase of operation is located in the 428 municipal corporation.
If 456 the compensation is subject to taxation because of residence, 457 municipal income tax shall be payable only to the municipal 458 Sub.
116 Page 17 As ReportedPassed by the House Technologymunicipal andincome Innovationtax Committeeshall be payable only to the municipal 458 corporation of residence.
Show all 226 changed lines (186 more)
485 Any item of income that is exempt income of a pass-through 486 entity under division (C) of this section is exempt income of 487 Sub.
116 Page 18 As ReportedPassed by the House Technologyentity andunder Innovationdivision Committee(C) of this section is exempt income of 487 each owner of the pass-through entity to the extent of that 488 owner's distributive or proportionate share of that item of the 489 entity's income.
511 (c)(i) For taxable years beginning in 2018, 2019, 2020, 512 2021, or 2022, a person may not deduct, for purposes of an 513 income tax levied by a municipal corporation that levies an 514 income tax before January 1, 2016, more than fifty per cent of 515 the amount of the deduction otherwise allowed by division (D)(3) 516 Sub.
116 Page 19 As ReportedPassed by the House Technologythe andamount Innovationof Committeethe deduction otherwise allowed by division (D)(3) 516 of this section.
543 (5) For the purposes of this chapter, and notwithstanding 544 any other provision of this chapter, the net profit of a 545 Sub.
116 Page 20 As ReportedPassed by the House Technologyany andother Innovationprovision Committeeof this chapter, the net profit of a 545 publicly traded partnership that makes the election described in 546 division (D)(5) of this section shall be taxed as if the 547 partnership were a C corporation, and shall not be treated as 548 the net profit or income of any owner of the partnership.
574 (2) Add an amount equal to five per cent of intangible 575 Sub.
116 Page 21 As ReportedPassed by the House Technology(2) andAdd Innovationan Committeeamount equal to five per cent of intangible 575 income deducted under division (E)(1) of this section, but 576 excluding that portion of intangible income directly related to 577 the sale, exchange, or other disposition of property described 578 in section 1221 of the Internal Revenue Code;
602 (8) Deduct exempt income to the extent not otherwise 603 deducted or excluded in computing adjusted federal taxable 604 Sub.
116 Page 22 As ReportedPassed by the House Technologydeducted andor Innovationexcluded Committeein computing adjusted federal taxable 604 income.
Amounts paid 632 or accrued to a qualified self-employed retirement plan with 633 respect to a partner, former partner, shareholder, former 634 Sub.
116 Page 23 As ReportedPassed by the House Technologyrespect andto Innovationa Committeepartner, former partner, shareholder, former 634 shareholder, member, or former member of the taxpayer, amounts 635 paid or accrued to or for health insurance for a partner, former 636 partner, shareholder, former shareholder, member, or former 637 member, and amounts paid or accrued to or for life insurance for 638 a partner, former partner, shareholder, former shareholder, 639 member, or former member shall not be allowed as a deduction.
661 (L)(1) "Taxpayer" means a person subject to a tax levied 662 Sub.
116 Page 24 As ReportedPassed by the House Technology(L)(1) and"Taxpayer" Innovationmeans Committeea person subject to a tax levied 662 on income by a municipal corporation in accordance with this 663 chapter.
688 (b) For purposes of division (L)(2)(a)(v) of this section, 689 a municipal corporation was the primary place of business of a 690 limited liability company if, for the limited liability 691 Sub.
116 Page 25 As ReportedPassed by the House Technologylimited andliability Innovationcompany Committeeif, for the limited liability 691 company's taxable year ending in 2003, its income tax liability 692 was greater in that municipal corporation than in any other 693 municipal corporation in Ohio, and that tax liability to that 694 municipal corporation for its taxable year ending in 2003 was at 695 least four hundred thousand dollars.
719 (R) "Qualifying wages" means wages, as defined in section 720 Sub.
116 Page 26 As ReportedPassed by the House Technology(R) and"Qualifying Innovationwages" Committeemeans wages, as defined in section 720 3121(a) of the Internal Revenue Code, without regard to any wage 721 limitations, adjusted as follows:
747 (b) Any amount not included in wages because the amount 748 Sub.
116 Page 27 As ReportedPassed by the House Technology(b) andAny Innovationamount Committeenot included in wages because the amount 748 arises from the sale, exchange, or other disposition of a stock 749 option, the exercise of a stock option, or the sale, exchange, 750 or other disposition of stock purchased under a stock option and 751 the municipal corporation has not, by resolution or ordinance, 752 exempted the amount from withholding and tax adopted before 753 January 1, 2016.
774 (ii) For no preceding taxable year did the amount 775 constitute wages as defined in section 3121(a) of the Internal 776 RevenueSub. Code;
777 Sub.
116 Page 28 As ReportedPassed by the House TechnologyRevenue andCode; Innovation Committee (iii) For no succeeding taxable year will the amount 778 constitute wages;
777 (iii) For no succeeding taxable year will the amount 778 constitute wages;
804 (a) A municipal corporation acting as the agent of another 805 municipalSub. corporation;
806 Sub.
116 Page 29 As ReportedPassed by the House Technology and Innovation Committee (b) A person retained by a municipal corporationcorporation; to 807 administer a tax levied by the municipal corporation, but only 808 if the municipal corporation does not compensate the person in 809 whole or in part on a contingency basis;
806 (b) A person retained by a municipal corporation to 807 administer a tax levied by the municipal corporation, but only 808 if the municipal corporation does not compensate the person in 809 whole or in part on a contingency basis;
832 (AA) "Municipal corporation" includes a joint economic 833 development district or joint economic development zone that 834 Sub.
116 Page 30 As ReportedPassed by the House Technology(AA) and"Municipal Innovationcorporation" Committeeincludes a joint economic 833 development district or joint economic development zone that 834 levies an income tax under section 715.691, 715.70, 715.71, or 835 715.72 of the Revised Code.
860 (HH) "Casino operator" and "casino facility" have the same 861 meaningsSub. as in section 3772.01 of the Revised Code.
862 Sub.
116 Page 31 As ReportedPassed by the House Technologymeanings and Innovation Committee (II) "Video lottery terminal" has the same meaning as in 863 section 3770.213772.01 of the Revised Code.
862 (II) "Video lottery terminal" has the same meaning as in 863 section 3770.21 of the Revised Code.
889 (1) An individual stockholder, or a member of the 890 stockholder's family enumerated in section 318 of the Internal 891 Sub.
116 Page 32 As ReportedPassed by the House Technology(1) andAn Innovationindividual Committeestockholder, or a member of the 890 stockholder's family enumerated in section 318 of the Internal 891 Revenue Code, if the stockholder and the members of the 892 stockholder's family own directly, indirectly, beneficially, or 893 constructively, in the aggregate, at least fifty per cent of the 894 value of the taxpayer's outstanding stock;
912 (PP)(1) "Assessment" means a written finding by the tax 913 administrator that a person has underpaid municipal income tax, 914 or owes penalty and interest, or any combination of tax, 915 penalty, or interest, to the municipal corporation that 916 commences the person's time limitation for making an appeal to 917 the local board of tax review pursuant to section 718.11 of the 918 Revised Code, and has "ASSESSMENT" written in all capital 919 lettersSub. at the top of such finding.
920 Sub.
116 Page 33 As ReportedPassed by the House Technologyletters andat Innovation Committee (2) "Assessment" does not include an informal notice 921 denying a request for refund issued under division (B)(3) of 922 section 718.19 of the Revisedtop Code, a billing statement 923 notifying a taxpayer of currentsuch orfinding. past-due balances owed to the 924 municipal corporation, a tax administrator's request for 925 additional information, a notification to the taxpayer of 926 mathematical errors, or a tax administrator's other written 927 correspondence to a person or taxpayer that does not meet the 928 criteria prescribed by division (PP)(1) of this section.
920 (2) "Assessment" does not include an informal notice 921 denying a request for refund issued under division (B)(3) of 922 section 718.19 of the Revised Code, a billing statement 923 notifying a taxpayer of current or past-due balances owed to the 924 municipal corporation, a tax administrator's request for 925 additional information, a notification to the taxpayer of 926 mathematical errors, or a tax administrator's other written 927 correspondence to a person or taxpayer that does not meet the 928 criteria prescribed by division (PP)(1) of this section.
944 (SS)(1) "Pre-2017 net operating loss carryforward" means 945 any net operating loss incurred in a taxable year beginning 946 before January 1, 2017, to the extent such loss was permitted, 947 by a resolution or ordinance of the municipal corporation that 948 was adopted by the municipal corporation before January 1, 2016, 949 to be carried forward and utilized to offset income or net 950 Sub.
116 Page 34 As ReportedPassed by the House Technologyto be carried forward and Innovationutilized Committeeto offset income or net 950 profit generated in such municipal corporation in future taxable 951 years.
976 (UU) "Audit" means the examination of a person or the 977 inspection of the books, records, memoranda, or accounts of a 978 person for the purpose of determining liability for a municipal 979 incomeSub. tax.
980 Sub.
116 Page 35 As ReportedPassed by the House Technologyincome andtax. Innovation Committee (VV) "Publicly traded partnership" means any partnership, 981 an interest in which is regularly traded on an established 982 securities market.
980 (VV) "Publicly traded partnership" means any partnership, 981 an interest in which is regularly traded on an established 982 securities market.
1007 (A) "Authorized delegate" means a person designated by a 1008 licensee under section 1315.11 of the Revised Code to receive, 1009 Sub.
116 Page 36 As ReportedPassed by the House Technologylicensee andunder Innovationsection Committee1315.11 of the Revised Code to receive, 1009 directly or indirectly, money or its equivalent for transmission 1010 by the licensee.
1032 (G) "Transmit money" means to receive, directly or 1033 indirectly and by any means, money or its equivalent from a 1034 person and to deliver, pay, or make accessible, by any means, 1035 method, manner, or device, whether or not a payment instrument 1036 is used, the money received or its equivalent to the same or 1037 another person, at the same or another time, and at the same or 1038 Sub.
116 Page 37 As ReportedPassed by the House Technologyanother person, at the same or another time, and Innovationat Committeethe same or 1038 another place, but does not include transactions in which the 1039 recipient of the money or its equivalent is the principal or 1040 authorized representative of the principal in a transaction for 1041 which the money or its equivalent is received, other than the 1042 transmission of money or its equivalent.
1064 (2) Deployed to a blockchain, typically referred to as a 1065 smart contract, including an additional standardized set of 1066 rulesSub. based on a previously existing blockchain;
1067 Sub.
116 Page 38 As ReportedPassed by the House Technologyrules andbased Innovationon Committeea (3)previously Usedexisting toblockchain; facilitate the transfer of data and electronic 1068 records and allow that data and those electronic records to be 1069 broadcast to nodes.
1067 (3) Used to facilitate the transfer of data and electronic 1068 records and allow that data and those electronic records to be 1069 broadcast to nodes.
1091 (H) "Node" means a computational device that communicates 1092 with other devices or participants on a blockchain to maintain 1093 consensus and integrity of that blockchain, create and validate 1094 transaction blocks, contain and update a copy of a blockchain, 1095 orSub. any combination of the foregoing.
1096 Sub.
116 Page 39 As ReportedPassed by the House Technologyor andany Innovationcombination Committeeof (I)the "Politicalforegoing. subdivision" means a county, township, or 1097 municipal corporation.
1096 (I) "Political subdivision" means a county, township, or 1097 municipal corporation.
(A) Any person may engage in digital asset 1120 mining in areas of this state zoned for residential use, 1121 provided that the person complies with all applicable local 1122 ordinances, resolutions, regulations, and orders in areas zoned 1123 forSub. residential use, including those adopted in accordance with 1124 sections 505.172 and 715.49 of the Revised Code.
1125 Sub.
116 Page 40 As ReportedPassed by the House Technologyfor andresidential Innovationuse, Committeeincluding (B)those Aadopted digitalin assetaccordance miningwith business1124 maysections operate505.172 inand any715.49 1126 area of this state that is zoned for industrial use, provided 1127 the digitalRevised assetCode. mining business meets the requirements for 1128 industrial use.
1125 (B) A digital asset mining business may operate in any 1126 area of this state that is zoned for industrial use, provided 1127 the digital asset mining business meets the requirements for 1128 industrial use.
1150 (5)Sub. Operating a node or series of nodes on a blockchain 1151 protocol.
1152 Sub.
116 Page 41 As ReportedPassed by the House Technology(5) andOperating Innovationa Committeenode (B) A business providing or offeringseries toof providenodes digitalon 1153 asset mining or staking services is not considered to be 1154 offering a securityblockchain or1151 investmentprotocol. contract for the purposes of 1155 Chapter 1308.
1152 (B) A business providing or offering to provide digital 1153 asset mining or staking services is not considered to be 1154 offering a security or investment contract for the purposes of 1155 Chapter 1308.
1179 (3) Deduct interest or dividends on obligations of the 1180 United States and its territories and possessions or of any 1181 Sub.
116 Page 42 As ReportedPassed by the House Technology(3) Deduct interest or dividends on obligations of the 1180 United States and Innovationits Committeeterritories and possessions or of any 1181 authority, commission, or instrumentality of the United States 1182 to the extent that the interest or dividends are included in 1183 federal adjusted gross income but exempt from state income taxes 1184 under the laws of the United States.
1205 (8) Add any loss or deduct any gain resulting from the 1206 sale, exchange, or other disposition of public obligations to 1207 the extent that the loss has been deducted or the gain has been 1208 includedSub. in computing federal adjusted gross income.
1209 Sub.
116 Page 43 As ReportedPassed by the House Technologyincluded andin Innovationcomputing Committeefederal (9)adjusted Deductgross orincome. add amounts, as provided under section 1210 5747.70 of the Revised Code, related to contributions made to or 1211 tuition units purchased under a qualified tuition program 1212 established pursuant to section 529 of the Internal Revenue 1213 Code.
1209 (9) Deduct or add amounts, as provided under section 1210 5747.70 of the Revised Code, related to contributions made to or 1211 tuition units purchased under a qualified tuition program 1212 established pursuant to section 529 of the Internal Revenue 1213 Code.
1233 (b) Deduct, to the extent not otherwise deducted or 1234 excluded in computing federal or Ohio adjusted gross income 1235 during the taxable year, the amount the taxpayer paid during the 1236 taxable year, not compensated for by any insurance or otherwise, 1237 for medical care of the taxpayer, the taxpayer's spouse, and 1238 dependents,Sub. to the extent the expenses exceed seven and one-half 1239 per cent of the taxpayer's federal adjusted gross income.
1240 Sub.
116 Page 44 As ReportedPassed by the House Technologydependents, andto Innovation Committee (c) For purposes of division (A)(10) of this section, 1241 "medical care" has the meaningextent given in section 213 of the 1242expenses Internalexceed Revenueseven Code, subject to the special rules, 1243 limitations, and exclusionsone-half set1239 forthper therein,cent andof "qualified 1244 long-term care" has the sametaxpayer's meaningfederal givenadjusted ingross sectionincome. 7702B(c) 1245 of the Internal Revenue Code.
1240 (c) For purposes of division (A)(10) of this section, 1241 "medical care" has the meaning given in section 213 of the 1242 Internal Revenue Code, subject to the special rules, 1243 limitations, and exclusions set forth therein, and "qualified 1244 long-term care" has the same meaning given in section 7702B(c) 1245 of the Internal Revenue Code.
1267 (12) Deduct any portion of the deduction described in 1268 section 1341(a)(2) of the Internal Revenue Code, for repaying 1269 previously reported income received under a claim of right, that 1270 Sub.
116 Page 45 As ReportedPassed by the House Technologysection and1341(a)(2) Innovationof Committeethe Internal Revenue Code, for repaying 1269 previously reported income received under a claim of right, that 1270 meets both of the following requirements:
1296 (a) The amount was deducted or excluded from the 1297 computation of the taxpayer's federal adjusted gross income as 1298 required to be reported for the taxpayer's taxable year under 1299 Sub.
116 Page 46 As ReportedPassed by the House Technologycomputation andof Innovationthe Committeetaxpayer's federal adjusted gross income as 1298 required to be reported for the taxpayer's taxable year under 1299 the Internal Revenue Code;
1326 (iii) Subject to division (A)(17)(a)(v) of this section, 1327 for taxable years beginning in 2012 or thereafter, if the 1328 Sub.
116 Page 47 As ReportedPassed by the House Technology(iii) andSubject Innovationto Committeedivision (A)(17)(a)(v) of this section, 1327 for taxable years beginning in 2012 or thereafter, if the 1328 increase in income taxes withheld by the taxpayer is equal to or 1329 greater than ten per cent of income taxes withheld by the 1330 taxpayer during the taxpayer's immediately preceding taxable 1331 year, "two-thirds" shall be substituted for "five-sixths" for 1332 the purpose of divisions (A)(17)(a)(i) and (ii) of this section.
1356 (b)Sub. Nothing in division (A)(17) of this section shall be 1357 construed to adjust or modify the adjusted basis of any asset.
1358 Sub.
116 Page 48 As ReportedPassed by the House Technology(b) andNothing Innovationin Committee (c) To the extent the add-back required under division (A)(A)(17) 1359 (17)(a) of this section is attributable to property generating 1360 nonbusiness income or loss allocated under section 5747.20 of 1361 the Revised Code, the add-back shall be sitused1357 construed to theadjust same 1362 location as the nonbusiness income or lossmodify generated by the 1363adjusted propertybasis for the purpose of determiningany theasset. credit under 1364 division (A) of section 5747.05 of the Revised Code.
1358 (c) To the extent the add-back required under division (A) 1359 (17)(a) of this section is attributable to property generating 1360 nonbusiness income or loss allocated under section 5747.20 of 1361 the Revised Code, the add-back shall be sitused to the same 1362 location as the nonbusiness income or loss generated by the 1363 property for the purpose of determining the credit under 1364 division (A) of section 5747.05 of the Revised Code.
1385 (iii) "Qualifying section 179 depreciation expense" means 1386 the difference between (I) the amount of depreciation expense 1387 Sub.
116 Page 49 As ReportedPassed by the House Technology(iii) and"Qualifying Innovationsection Committee179 depreciation expense" means 1386 the difference between (I) the amount of depreciation expense 1387 directly or indirectly allowed to a taxpayer under section 179 1388 of the Internal Revised Code, and (II) the amount of 1389 depreciation expense directly or indirectly allowed to the 1390 taxpayer under section 179 of the Internal Revenue Code as that 1391 section existed on December 31, 2002.
1414 (c) No deduction is available under division (A)(18)(a) of 1415 this section with regard to any depreciation allowed by section 1416 Sub.
116 Page 50 As ReportedPassed by the House Technology(c) andNo Innovationdeduction Committeeis available under division (A)(18)(a) of 1415 this section with regard to any depreciation allowed by section 1416 168(k) of the Internal Revenue Code and by the qualifying 1417 section 179 depreciation expense amount to the extent that such 1418 depreciation results in or increases a federal net operating 1419 loss carryback or carryforward.
The 1444 deduction may not be claimed for military pay and allowances 1445 received by the taxpayer while the taxpayer is stationed in this 1446 Sub.
116 Page 51 As ReportedPassed by the House Technologydeduction may not be claimed for military pay and Innovationallowances Committee1445 received by the taxpayer while the taxpayer is stationed in this 1446 state.
If 1471 the taxpayer receives income on account of retirement paid under 1472 the federal civil service retirement system or federal employees 1473 retirement system, or under any successor retirement program 1474 enacted by the congress of the United States that is established 1475 Sub.
116 Page 52 As ReportedPassed by the House Technologyretirement andsystem, Innovationor Committeeunder any successor retirement program 1474 enacted by the congress of the United States that is established 1475 and maintained for retired employees of the United States 1476 government, and such retirement income is based, in whole or in 1477 part, on credit for the taxpayer's uniformed service, the 1478 deduction allowed under this division shall include only that 1479 portion of such retirement income that is attributable to the 1480 taxpayer's uniformed service, to the extent that portion of such 1481 retirement income is otherwise included in federal adjusted 1482 gross income and is not otherwise deducted under this section.
1500 (26) Deduct, to the extent not otherwise deducted or 1501 excluded in computing federal or Ohio adjusted gross income for 1502 the taxable year, any income derived from a transfer agreement 1503 orSub. from the enterprise transferred under that agreement under 1504 section 4313.02 of the Revised Code.
1505 Sub.
116 Page 53 As ReportedPassed by the House Technology and Innovation Committee (27) Deduct, to the extent not otherwise deducted or 1506from excluded in computing federal or Ohio adjusted gross income for 1507 the taxableenterprise year,transferred Ohiounder collegethat opportunityagreement orunder federal1504 Pell grant 1508 amounts received by the taxpayer or the taxpayer's spouse or 1509 dependent pursuant to section 3333.1224313.02 of the Revised CodeCode. or 20 1510 U.S.C.
1505 (27) Deduct, to the extent not otherwise deducted or 1506 excluded in computing federal or Ohio adjusted gross income for 1507 the taxable year, Ohio college opportunity or federal Pell grant 1508 amounts received by the taxpayer or the taxpayer's spouse or 1509 dependent pursuant to section 3333.122 of the Revised Code or 20 1510 U.S.C.
1530 (i) Compensation paid to a qualifying employee described 1531 in division (A)(14)(a) of section 5703.94 of the Revised Code to 1532 theSub. extent such compensation is for disaster work conducted in 1533 this state during a disaster response period pursuant to a 1534 qualifying solicitation received by the employee's employer;
1535 Sub.
116 Page 54 As ReportedPassed by the House Technology and Innovation Committee (ii) Compensation paid to a qualifying employee described 1536 in division (A)(14)(b) of section 5703.94 of the Revised Code to 1537 the extent such compensation is for disaster work conducted in 15381533 this state by the employee during thea disaster response period 1539pursuant onto criticala infrastructure1534 ownedqualifying orsolicitation usedreceived by the employee's 1540 employer;
1535 (ii) Compensation paid to a qualifying employee described 1536 in division (A)(14)(b) of section 5703.94 of the Revised Code to 1537 the extent such compensation is for disaster work conducted in 1538 this state by the employee during the disaster response period 1539 on critical infrastructure owned or used by the employee's 1540 employer;
1561 (32)Sub. Deduct, to the extent not otherwise deducted or 1562 excluded in computing federal or Ohio adjusted gross income for 1563 the taxable year, amounts received by the taxpayer as a 1564 disability severance payment, computed under 10 U.S.C.
1212, 1565 Sub.
116 Page 55 As ReportedPassed by the House Technology(32) andDeduct, Innovationto Committeethe followingextent dischargenot otherwise deducted or release1562 underexcluded honorablein conditionscomputing fromfederal 1566or theOhio armedadjusted forcesgross ofincome for 1563 the Unitedtaxable States,year, amounts received by the taxpayer as defineda in1564 sectiondisability 1567severance 5907.01payment, ofcomputed theunder Revised10 Code.U.S.C.
1212, 1565 following discharge or release under honorable conditions from 1566 the armed forces of the United States, as defined in section 1567 5907.01 of the Revised Code.
and 1589 (ii) Fifty per cent of the capital gain received by the 1590 taxpayerSub. in the taxable year from a qualifying interest in an 1591 Ohio venture capital operating company attributable to the 1592 company's investments in all other businesses during the period 1593 for which the company was an Ohio venture operating company.
1594 Sub.
116 Page 56 As ReportedPassed by the House Technologytaxpayer andin Innovationthe Committeetaxable (b)year Addfrom amountsa previouslyqualifying deductedinterest byin thean taxpayer1591 underOhio 1595venture divisioncapital (A)(35)(a)operating ofcompany thisattributable sectionto if the director1592 ofcompany's 1596investments developmentin certifiesall toother thebusinesses taxduring commissioner that the 1597period requirements1593 for which the deductioncompany werewas notan met.Ohio venture operating company.
1594 (b) Add amounts previously deducted by the taxpayer under 1595 division (A)(35)(a) of this section if the director of 1596 development certifies to the tax commissioner that the 1597 requirements for the deduction were not met.
The taxpayer shall provide, upon request of the 1619 taxSub. commissioner, any documentation necessary to verify the 1620 portion of the addition that is business income under this 1621 division.
1622 (37) Deduct, to the extent not otherwise deducted or 1623 Sub.
116 Page 57 As ReportedPassed by the House Technologytax andcommissioner, Innovationany Committeedocumentation excludednecessary into computingverify federal or Ohio adjusted gross income for 1624 the taxable1620 year,portion amounts delivered to a qualifying institution 1625 pursuant to section 3333.128 of the Revisedaddition Codethat foris thebusiness benefitincome 1626under ofthis the1621 taxpayerdivision. or the taxpayer's spouse or dependent.
1622 (37) Deduct, to the extent not otherwise deducted or 1623 excluded in computing federal or Ohio adjusted gross income for 1624 the taxable year, amounts delivered to a qualifying institution 1625 pursuant to section 3333.128 of the Revised Code for the benefit 1626 of the taxpayer or the taxpayer's spouse or dependent.
1645 Notwithstanding any provision to the contrary, the 1646 derailment is not required to meet the definition of a 1647 "qualified disaster" pursuant to section 139 of the Internal 1648 RevenueSub. Code to qualify for the deduction under this section.
1649 (40) Deduct, to the extent included in federal adjusted 1650 gross income, income attributable to loan repayments on behalf 1651 of the taxpayer under the rural practice incentive program under 1652 Sub.
116 Page 58 As ReportedPassed by the House TechnologyRevenue andCode Innovationto Committeequalify sectionfor 3333.135the ofdeduction theunder Revisedthis Code.section.
1649 (40) Deduct, to the extent included in federal adjusted 1650 gross income, income attributable to loan repayments on behalf 1651 of the taxpayer under the rural practice incentive program under 1652 section 3333.135 of the Revised Code.
1676 As used in division (A)(43) of this section, "homeownership 1677 savingsSub. account," "account owner," and "eligible expenses" have 1678 the same meanings as in section 5747.85 of the Revised Code.
1679 (44) Deduct, to the extent not otherwise deducted or 1680 excluded in computing federal or Ohio adjusted gross income for 1681 Sub.
116 Page 59 As ReportedPassed by the House Technologysavings andaccount," Innovation"account Committeeowner," theand taxable"eligible year,expenses" capitalhave gains1678 received by the taxpayersame frommeanings 1682 the sale of a digital asset used as ain methodsection of5747.85 payment for 1683 goods or services, provided the amount of payment in the 1684Revised transactionCode. does not exceed the deduction threshold.
1679 (44) Deduct, to the extent not otherwise deducted or 1680 excluded in computing federal or Ohio adjusted gross income for 1681 the taxable year, capital gains received by the taxpayer from 1682 the sale of a digital asset used as a method of payment for 1683 goods or services, provided the amount of payment in the 1684 transaction does not exceed the deduction threshold.
After making an 1707 adjustment,Sub. the commissioner shall certify the new deduction 1708 threshold to the tax administrator of each municipal corporation 1709 to which division (C)(2)(b) of section 718.01 of the Revised 1710 Code applies.
1711 Sub.
116 Page 60 As ReportedPassed by the House Technologyadjustment, andthe Innovationcommissioner Committeeshall (b)certify "Consumer price index" means the consumernew pricededuction index1708 1712threshold forto allthe urbantax consumersadministrator (Unitedof Stateseach citymunicipal average,corporation all1709 items),to 1713which prepareddivision by(C)(2)(b) theof Unitedsection States718.01 department of labor,the bureauRevised of1710 1714Code laborapplies. statistics.
1711 (b) "Consumer price index" means the consumer price index 1712 for all urban consumers (United States city average, all items), 1713 prepared by the United States department of labor, bureau of 1714 labor statistics.
1.469-5T, in the activities of the business during the 1735 taxable year in which the sale occurs or during any of the five 1736 precedingSub. taxable years.
1737 (C) "Nonbusiness income" means all income other than 1738 business income and may include, but is not limited to, 1739 compensation, rents and royalties from real or tangible personal 1740 Sub.
116 Page 61 As ReportedPassed by the House Technologypreceding andtaxable Innovationyears. Committee property, capital gains, interest, dividends and distributions, 1741 patent or copyright royalties, or lottery winnings, prizes, and 1742 awards.
1737 (C) "Nonbusiness income" means all income other than 1738 business income and may include, but is not limited to, 1739 compensation, rents and royalties from real or tangible personal 1740 property, capital gains, interest, dividends and distributions, 1741 patent or copyright royalties, or lottery winnings, prizes, and 1742 awards.
1763 ForSub. the purposes of division (I)(3) of this section:
1764 (a) A trust resides in this state for the trust's current 1765 taxable year to the extent, as described in division (I)(3)(d) 1766 of this section, that the trust consists directly or indirectly, 1767 Sub.
116 Page 62 As ReportedPassed by the House TechnologyFor andthe Innovationpurposes Committee in whole or in part, of assets,division net(I)(3) of anythis relatedsection: liabilities, 1768 that were transferred, or caused to be transferred, directly or 1769 indirectly, to the trust by any of the following:
1764 (a) A trust resides in this state for the trust's current 1765 taxable year to the extent, as described in division (I)(3)(d) 1766 of this section, that the trust consists directly or indirectly, 1767 in whole or in part, of assets, net of any related liabilities, 1768 that were transferred, or caused to be transferred, directly or 1769 indirectly, to the trust by any of the following:
1791 (b) A trust is irrevocable to the extent that the 1792 transferorSub. is not considered to be the owner of the net assets 1793 of the trust under sections 671 to 678 of the Internal Revenue 1794 Code.
1795 (c) With respect to a trust other than a charitable lead 1796 Sub.
116 Page 63 As ReportedPassed by the House Technologytransferor andis Innovationnot Committeeconsidered trust,to "qualifyingbe beneficiary" has the sameowner meaningof asthe 1797net "potentialassets current1793 beneficiary" as defined in section 1361(e)(2) 1798 of the Internal Revenue Code, and with respect to a charitable 1799 lead trust "qualifyingunder beneficiary"sections is671 any current, future, or 1800 contingent beneficiary, but with respect to any678 trust 1801 "qualifying beneficiary" excludes a person or a governmental 1802 entity or instrumentality to any of which a contribution would 1803 qualify for the charitable deduction under section 170 of the 1804 Internal Revenue 1794 Code.
1795 (c) With respect to a trust other than a charitable lead 1796 trust, "qualifying beneficiary" has the same meaning as 1797 "potential current beneficiary" as defined in section 1361(e)(2) 1798 of the Internal Revenue Code, and with respect to a charitable 1799 lead trust "qualifying beneficiary" is any current, future, or 1800 contingent beneficiary, but with respect to any trust 1801 "qualifying beneficiary" excludes a person or a governmental 1802 entity or instrumentality to any of which a contribution would 1803 qualify for the charitable deduction under section 170 of the 1804 Internal Revenue Code.
The numerator of the 1822 revised qualifying ratio is the sum of (1) the fair market value 1823 of the trust's assets immediately prior to the subsequent 1824 transfer, net of any related liabilities, multiplied by the 1825 qualifying ratio last computed without regard to the subsequent 1826 Sub.
116 Page 64 As ReportedPassed by the House Technologyrevised andqualifying Innovationratio Committeeis the sum of (1) the fair market value 1823 of the trust's assets immediately prior to the subsequent 1824 transfer, net of any related liabilities, multiplied by the 1825 qualifying ratio last computed without regard to the subsequent 1826 transfer, and (2) the fair market value of the subsequently 1827 transferred assets at the time transferred, net of any related 1828 liabilities, from sources enumerated in division (I)(3)(a) of 1829 this section.
1850 (f) For the purposes of division (I)(3)(e)(ii) of this 1851 section,Sub. a "qualifying transfer" is a transfer of assets, net of 1852 any related liabilities, directly or indirectly to a trust, if 1853 the transfer is described in any of the following:
1854 (i) The transfer is made to a trust, created by the 1855 Sub.
116 Page 65 As ReportedPassed by the House Technologysection, anda Innovation"qualifying Committeetransfer" decedentis beforea thetransfer decedent'sof deathassets, andnet whileof the1852 decedentany wasrelated 1856liabilities, domicileddirectly inor thisindirectly state for the purposes of this chapter, and, 1857 prior to thea deathtrust, ofif the1853 decedent, the trusttransfer becameis irrevocabledescribed 1858 while the decedent was domiciled in thisany stateof for the purposesfollowing: 1859 of this chapter.
1854 (i) The transfer is made to a trust, created by the 1855 decedent before the decedent's death and while the decedent was 1856 domiciled in this state for the purposes of this chapter, and, 1857 prior to the death of the decedent, the trust became irrevocable 1858 while the decedent was domiciled in this state for the purposes 1859 of this chapter.
1879 (v) The transfer is made to a trust on account of the will 1880 ofSub. a testator who was domiciled in this state at the time of the 1881 testator's death for purposes of the taxes levied under Chapter 1882 5731.
of the Revised Code.
1883 (vi) The transfer is made to a trust created by or caused 1884 Sub.
116 Page 66 As ReportedPassed by the House Technologyof and Innovation Committee to be created by a court,testator andwho the trust was directlydomiciled or 1885 indirectly created in connectionthis withstate orat asthe atime result of the 18861881 testator's death of an individual who, for purposes of the taxes levied 1887 under Chapter 1882 5731.
of the Revised Code.
1883 (vi) The transfer is made to a trust created by or caused 1884 to be created by a court, and the trust was directly or 1885 indirectly created in connection with or as a result of the 1886 death of an individual who, for purposes of the taxes levied 1887 under Chapter 5731.
1909 (O)Sub. "Dependents" means one of the following:
1910 (1) For taxable years beginning on or after January 1, 1911 2018, and before January 1, 2026, dependents as defined in the 1912 Sub.
116 Page 67 As ReportedPassed by the House Technology(O) and"Dependents" Innovationmeans Committeeone Internalof Revenuethe Code;following:
1910 (1) For taxable years beginning on or after January 1, 1911 2018, and before January 1, 2026, dependents as defined in the 1912 Internal Revenue Code;
1934 (S) "Taxable income" or "Ohio taxable income" applies only 1935 to estates and trusts, and means federal taxable income, as 1936 defined and used in the Internal Revenue Code, adjusted as 1937 follows:Sub.
1938 (1) Add interest or dividends, net of ordinary, necessary, 1939 and reasonable expenses not deducted in computing federal 1940 Sub.
116 Page 68 As ReportedPassed by the House Technologyfollows: and Innovation Committee taxable income, on obligations or securities of any state or of 1941 any political subdivision or authority of any state, other than 1942 this state and its subdivisions and authorities, but only to the 1943 extent that such net amount is not otherwise includible in Ohio 1944 taxable income and is described in either division (S)(1)(a) or 1945 (b) of this section:
1938 (1) Add interest or dividends, net of ordinary, necessary, 1939 and reasonable expenses not deducted in computing federal 1940 taxable income, on obligations or securities of any state or of 1941 any political subdivision or authority of any state, other than 1942 this state and its subdivisions and authorities, but only to the 1943 extent that such net amount is not otherwise includible in Ohio 1944 taxable income and is described in either division (S)(1)(a) or 1945 (b) of this section:
1962 (4) Deduct interest or dividends, net of related expenses 1963 deducted in computing federal taxable income, on obligations of 1964 the United States and its territories and possessions or of any 1965 authority, commission, or instrumentality of the United States 1966 to the extent that the interest or dividends are exempt from 1967 state taxes under the laws of the United States, but only to the 1968 extent that such amount is included in federal taxable income 1969 Sub.
116 Page 69 As ReportedPassed by the House Technologyto andthe Innovationextent Committeethat the interest or dividends are exempt from 1967 state taxes under the laws of the United States, but only to the 1968 extent that such amount is included in federal taxable income 1969 and is described in either division (S)(1)(a) or (b) of this 1970 section;
1993 (8) Except in the case of the final return of an estate, 1994 add any amount deducted by the taxpayer on both its Ohio estate 1995 tax return pursuant to section 5731.14 of the Revised Code, and 1996 onSub. its federal income tax return in determining federal taxable 1997 income;
1998 Sub.
116 Page 70 As ReportedPassed by the House Technologyon andits Innovation Committee (9)(a) Deduct any amount included in federal taxable 1999 income solelytax becausereturn the amount represents a reimbursement or 2000 refund of expenses that in adetermining previousfederal yeartaxable the1997 decedentincome; had 2001 deducted as an itemized deduction pursuant to section 63 of the 2002 Internal Revenue Code and applicable treasury regulations.
1998 (9)(a) Deduct any amount included in federal taxable 1999 income solely because the amount represents a reimbursement or 2000 refund of expenses that in a previous year the decedent had 2001 deducted as an itemized deduction pursuant to section 63 of the 2002 Internal Revenue Code and applicable treasury regulations.
2025 (11) Add any amount claimed as a credit under section 2026 5747.059 of the Revised Code to the extent that the amount 2027 Sub.
116 Page 71 As ReportedPassed by the House Technology(11) andAdd Innovationany Committeeamount claimed as a credit under section 2026 5747.059 of the Revised Code to the extent that the amount 2027 satisfies either of the following:
2052 (13) Add the net amount of income described in section 2053 641(c) of the Internal Revenue Code to the extent that amount is 2054 notSub. included in federal taxable income.
2055 (14) Deduct the amount the taxpayer would be required to 2056 Sub.
116 Page 72 As ReportedPassed by the House Technologynot andincluded Innovationin Committeefederal deduct under division (A)(18) of this section if the taxpayer's 2057 Ohio taxable incomeincome. were was computed in the same manner as an 2058 individual's Ohio adjusted gross income is computed under this 2059 section.
2055 (14) Deduct the amount the taxpayer would be required to 2056 deduct under division (A)(18) of this section if the taxpayer's 2057 Ohio taxable income were was computed in the same manner as an 2058 individual's Ohio adjusted gross income is computed under this 2059 section.
2082 (U) As used in divisions (A)(7), (A)(8), (S)(6), and (S) 2083 (7) of this section, "public obligations," "purchase 2084 obligations," and "interest or interest equivalent" have the 2085 Sub.
116 Page 73 As ReportedPassed by the House Technology(7) of this section, "public obligations," "purchase 2084 obligations," and Innovation"interest Committeeor interest equivalent" have the 2085 same meanings as in section 5709.76 of the Revised Code.
2111 (a) The book value of the qualifying investee's physical 2112 assets in this state and everywhere, as of the last day of the 2113 Sub.
116 Page 74 As ReportedPassed by the House Technology(a) The book value of the qualifying investee's physical 2112 assets in this state and Innovationeverywhere, Committeeas of the last day of the 2113 qualifying investee's fiscal or calendar year ending immediately 2114 prior to the date on which the trust recognizes the gain or 2115 loss, is available to the trust.
2140 (b) The qualifying trust amount multiplied by a fraction, 2141 Sub.
116 Page 75 As ReportedPassed by the House Technology(b) andThe Innovationqualifying Committeetrust amount multiplied by a fraction, 2141 the numerator of which is the sum of the book value of the 2142 qualifying investee's physical assets in this state on the last 2143 day of the qualifying investee's fiscal or calendar year ending 2144 immediately prior to the day on which the trust recognizes the 2145 qualifying trust amount, and the denominator of which is the sum 2146 of the book value of the qualifying investee's total physical 2147 assets everywhere on the last day of the qualifying investee's 2148 fiscal or calendar year ending immediately prior to the day on 2149 which the trust recognizes the qualifying trust amount.
With 2164 respect to a trust or portion of a trust that is not a resident 2165 as ascertained in accordance with division (I)(3)(d) of this 2166 section, the trust's portion of modified nonbusiness income 2167 recognized from the sale, exchange, or other disposition of a 2168 debt interest in or equity interest in a section 5747.212 2169 entity, as defined in section 5747.212 of the Revised Code, 2170 without regard to division (A) of that section, shall not be 2171 allocated to this state in accordance with section 5747.20 of 2172 Sub.
116 Page 76 As ReportedPassed by the House Technologyallocated andto Innovationthis Committeestate in accordance with section 5747.20 of 2172 the Revised Code but shall be apportioned to this state in 2173 accordance with division (B) of section 5747.212 of the Revised 2174 Code without regard to division (A) of that section.
2194 (ii) If the qualifying investee, or if the qualifying 2195 investee and any members of the qualifying controlled group of 2196 which the qualifying investee is a member on the last day of the 2197 qualifying investee's fiscal or calendar year ending immediately 2198 prior to the date on which the trust recognizes the gain or 2199 loss, separately or cumulatively own, directly or indirectly, on 2200 the last day of the qualifying investee's fiscal or calendar 2201 year ending immediately prior to the date on which the trust 2202 Sub.
116 Page 77 As ReportedPassed by the House Technologyyear andending Innovationimmediately Committeeprior to the date on which the trust 2202 recognizes the qualifying trust amount, more than fifty per cent 2203 of the equity of a pass-through entity, then the qualifying 2204 investee and the other members are deemed to own the 2205 proportionate share of the pass-through entity's physical assets 2206 which the pass-through entity directly or indirectly owns on the 2207 last day of the pass-through entity's calendar or fiscal year 2208 ending within or with the last day of the qualifying investee's 2209 fiscal or calendar year ending immediately prior to the date on 2210 which the trust recognizes the qualifying trust amount.
If the upper level pass-through entity 2225 directly and indirectly owns less than fifty per cent of the 2226 equity of the lower level pass-through entity on each day of the 2227 upper level pass-through entity's calendar or fiscal year in 2228 which or with which ends the calendar or fiscal year of the 2229 lower level pass-through entity and if, based upon clear and 2230 convincing evidence, complete information about the location and 2231 cost of the physical assets of the lower pass-through entity is 2232 not available to the upper level pass-through entity, then 2233 Sub.
116 Page 78 As ReportedPassed by the House Technologynot andavailable Innovationto Committeethe upper level pass-through entity, then 2233 solely for purposes of ascertaining if a gain or loss 2234 constitutes a qualifying trust amount, the upper level pass- 2235 through entity shall be deemed as owning no equity of the lower 2236 level pass-through entity for each day during the upper level 2237 pass-through entity's calendar or fiscal year in which or with 2238 which ends the lower level pass-through entity's calendar or 2239 fiscal year.
116 Page 79 As ReportedPassed by the House Technology and Innovation Committee (a) "Qualifying person" means any person other than a 2262 qualifying corporation.
116 Page 80 As ReportedPassed by the House Technology and Innovation Committee controls, directly, indirectly, or constructively through 2290 related interests, five per cent or more of the ownership or 2291 equity interests.
116 Page 81 As ReportedPassed by the House Technology and Innovation Committee to the franchisor's relationship with a franchisee or an 2317 employee of a franchisee, unless the franchisor agrees to assume 2318 that role in writing or a court of competent jurisdiction 2319 determines that the franchisor exercises a type or degree of 2320 control over the franchisee or the franchisee's employees that 2321 is not customarily exercised by a franchisor for the purpose of 2322 protecting the franchisor's trademark, brand, or both.
116 Page 82 As ReportedPassed by the House Technology and Innovation Committee of section 1.52 of the Revised Code that amendments are to be 2346 harmonized if reasonably capable of simultaneous operation, 2347 finds that the composite is the resulting version of the section 2348 in effect prior to the effective date of the section as 2349 presented in this act.
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View plain text versions (3)
- As Passed by the House View text Current pdf
- Reported As Reported by the House Technology and Innovation Committee pdf
- Introduced As Introduced pdf
Action History
-
As Passed by the House
Sponsors
- Steve Demetriou · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 133 not signed on · 25 voted No
Sponsors (1)
- Steve Demetriou Republican
Co-sponsors (0)
None.
Not signed on (133)
133 members have not signed on to this bill.
Show all 133 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
Roll call published as PDF — view source.
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 9 | 0 | 0 | 0 |
| Democratic | 3 | 0 | 0 | 0 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 13 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (13)
| Member | Party | Vote |
|---|---|---|
| Sedrick Denson | — | Yea |
| Christine Cockley | Democratic | Yea |
| Erika White | Democratic | Yea |
| Ismail Mohamed | Democratic | Yea |
| Adam Holmes | Republican | Yea |
| Heidi Workman | Republican | Yea |
| Melanie Miller | Republican | Yea |
| Riordan T. McClain | Republican | Yea |
| Ron Ferguson | Republican | Yea |
| Steve Demetriou | Republican | Yea |
| Thaddeus J. Claggett | Republican | Yea |
| Thomas Hall | Republican | Yea |
| Ty D. Mathews | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 63 | 0 | 0 | 0 |
| Democratic | 7 | 25 | 0 | 0 |
| Unaffiliated | 0 | 1 | 0 | 0 |
| Total | 70 | 26 | 0 | 0 |
| % of votes cast | 73% | 27% | 0% | 0% |
How each member voted (96)
| Member | Party | Vote |
|---|---|---|
| Sedrick Denson | — | Nay |
| Beryl Brown Piccolantonio | Democratic | Nay |
| Bride Rose Sweeney | Democratic | Yea |
| C. Allison Russo | Democratic | Nay |
| Cecil Thomas | Democratic | Yea |
| Chris Glassburn | Democratic | Nay |
| Christine Cockley | Democratic | Nay |
| Crystal Lett | Democratic | Nay |
| Dani Isaacsohn | Democratic | Nay |
| Daniel P. Troy | Democratic | Nay |
| Darnell T. Brewer | Democratic | Nay |
| Derrick Hall | Democratic | Yea |
| Desiree Tims | Democratic | Nay |
| Dontavius L. Jarrells | Democratic | Nay |
| Elgin Rogers, Jr. | Democratic | Yea |
| Eric Synenberg | Democratic | Nay |
| Erika White | Democratic | Nay |
| Ismail Mohamed | Democratic | Yea |
| Joseph A. Miller, III | Democratic | Nay |
| Juanita O. Brent | Democratic | Nay |
| Karen Brownlee | Democratic | Nay |
| Latyna M. Humphrey | Democratic | Nay |
| Lauren McNally | Democratic | Nay |
| Mark Sigrist | Democratic | Yea |
| Meredith R. Lawson-Rowe | Democratic | Nay |
| Michele Grim | Democratic | Nay |
| Munira Abdullahi | Democratic | Nay |
| Phillip M. Robinson, Jr. | Democratic | Nay |
| Rachel B. Baker | Democratic | Nay |
| Sean P. Brennan | Democratic | Nay |
| Terrence Upchurch | Democratic | Yea |
| Tristan Rader | Democratic | Nay |
| Veronica R. Sims | Democratic | Nay |
| Adam C. Bird | Republican | Yea |
| Adam Holmes | Republican | Yea |
| Adam Mathews | Republican | Yea |
| Andrea White | Republican | Yea |
| Angela N. King | Republican | Yea |
| Bernard Willis | Republican | Yea |
| Beth Lear | Republican | Yea |
| Bill Roemer | Republican | Yea |
| Bob Peterson | Republican | Yea |
| Brian Lampton | Republican | Yea |
| Brian Lorenz | Republican | Yea |
| Brian Stewart | Republican | Yea |
| Cindy Abrams | Republican | Yea |
| D. J. Swearingen | Republican | Yea |
| David Thomas | Republican | Yea |
| Gary Click | Republican | Yea |
| Gayle Manning | Republican | Yea |
| Haraz N. Ghanbari | Republican | Yea |
| Heidi Workman | Republican | Yea |
| Jack K. Daniels | Republican | Yea |
| James M. Hoops | Republican | Yea |
| Jamie Callender | Republican | Yea |
| Jason Stephens | Republican | Yea |
| Jean Schmidt | Republican | Yea |
| Jeff LaRe | Republican | Yea |
| Jennifer Gross | Republican | Yea |
| Jim Thomas | Republican | Yea |
| Jodi Salvo | Republican | Yea |
| Johnathan Newman | Republican | Yea |
| Josh Williams | Republican | Yea |
| Justin Pizzulli | Republican | Yea |
| Kellie Deeter | Republican | Yea |
| Kevin D. Miller | Republican | Yea |
| Kevin Ritter | Republican | Yea |
| Levi Dean | Republican | Yea |
| Marilyn John | Republican | Yea |
| Mark Hiner | Republican | Yea |
| Mark Johnson | Republican | Yea |
| Matt Huffman | Republican | Yea |
| Matthew Kishman | Republican | Yea |
| Melanie Miller | Republican | Yea |
| Meredith Craig | Republican | Yea |
| Michael D. Dovilla | Republican | Yea |
| Michelle Teska | Republican | Yea |
| Mike Odioso | Republican | Yea |
| Monica Robb Blasdel | Republican | Yea |
| Nick Santucci | Republican | Yea |
| Phil Plummer | Republican | Yea |
| Riordan T. McClain | Republican | Yea |
| Rodney Creech | Republican | Yea |
| Ron Ferguson | Republican | Yea |
| Roy Klopfenstein | Republican | Yea |
| Sarah Fowler Arthur | Republican | Yea |
| Scott Oelslager | Republican | Yea |
| Steve Demetriou | Republican | Yea |
| Tex Fischer | Republican | Yea |
| Thaddeus J. Claggett | Republican | Yea |
| Thomas Hall | Republican | Yea |
| Tim Barhorst | Republican | Yea |
| Tom Young | Republican | Yea |
| Tracy M. Richardson | Republican | Yea |
| Ty D. Mathews | Republican | Yea |
| Ty Moore | Republican | Yea |
Subjects
Frequently asked questions
- What does HB 116 do?
- To amend sections 301.30, 504.04, 715.013, 718.01, 1315.01, and 5747.01 and to enact sections 101.88, 1352.01, 1352.02, 1352.03, and 1352.04 of the Revised Code to enact the Ohio Blockchain Basics Act to address mining, taxation, and regulation of digital assets and digital asset investments by the state retirement systems.
- Who sponsors HB 116?
- HB 116 is sponsored by Steve Demetriou (Republican).
- What is the current status of HB 116?
- This bill has passed the House. Introduced February 24, 2025. It now moves to the second chamber.
- Where can I track HB 116?
- Track HB 116 free on One Click Politics — get push/email alerts when it moves.
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