SB 40: Authorize tax credit for pregnancy resource center donations

As Introduced

136th General Assembly Regular Session 2025-2026

S. B. No. 40

Senator O'Brien

Cosponsors: Senators Koehler, Cirino, Schaffer

A B I L L

To amend sections 5747.98 and 5751.98 and to enact 1
sections 5747.74 and 5751.56 of the Revised Code 2
to authorize a nonrefundable tax credit for 3
donations to certain pregnancy resource centers 4
and maternity homes. 5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5747.98 and 5751.98 be amended 6
and sections 5747.74 and 5751.56 of the Revised Code be enacted 7
to read as follows: 8
Sec. 5747.74. (A) As used in this section, "tax credit 9
certificate" has the same meaning as in section 5751.56 of the 10
Revised Code. 11
(B) There is hereby allowed a nonrefundable credit against 12
a taxpayer's aggregate tax liability under section 5747.02 of 13
the Revised Code equal to the amount stated in a tax credit 14
certificate issued to the taxpayer, to the extent the 15
certificate authorizes the credit to be claimed against that tax 16
liability, except that the amount claimed may not exceed fifty 17
per cent of the applicant's aggregate tax liability for the 18

S. B. No. 40 As Introduced

taxable year, before applying any other credit against that tax.

The credit shall be claimed for the taxable year in which 20
the certificate is issued and in the order required by section 21
5747.98 of the Revised Code. Any credit amount in excess of 22
fifty per cent of the taxpayer's tax liability, after allowing 23
for any other credits preceding the credit in that order, may be 24
carried forward for five taxable years, but the amount of the 25
excess credit claimed in any such year may not exceed fifty per 26
cent of the applicant's tax liability for the taxable year, 27
before applying any other credit against that tax, and shall be 28
deducted from the balance carried forward to the next year. 29
(C) If the person issued a tax credit certificate is a 30
pass-through entity, the credit may be allocated among the 31
entity's equity owners in proportion to their ownership 32
interests or in such proportions or amounts as the equity owners 33
mutually agree. 34
Sec. 5747.98. (A) To provide a uniform procedure for 35
calculating a taxpayer's aggregate tax liability under section 36
5747.02 of the Revised Code, a taxpayer shall claim any credits 37
to which the taxpayer is entitled in the following order: 38
The nonrefundable credit for donations to pregnancy 39
resource centers under section 5747.74 of the Revised Code; 40
Either the retirement income credit under division (B) of 41
section 5747.055 of the Revised Code or the lump sum retirement 42
income credits under divisions (C), (D), and (E) of that 43
section; 44
Either the senior citizen credit under division (F) of 45
section 5747.055 of the Revised Code or the lump sum 46
distribution credit under division (G) of that section; 47

S. B. No. 40 As Introduced

The dependent care credit under section 5747.054 of the 48
Revised Code; 49
The credit for displaced workers who pay for job training 50
under section 5747.27 of the Revised Code; 51
The campaign contribution credit under section 5747.29 of 52
the Revised Code; 53
The twenty-dollar personal exemption credit under section 54
5747.022 of the Revised Code; 55
The joint filing credit under division (G)(E) of section 56
5747.05 of the Revised Code; 57
The earned income credit under section 5747.71 of the 58
Revised Code; 59
The nonrefundable credit for education expenses under 60
section 5747.72 of the Revised Code; 61
The nonrefundable credit for donations to scholarship 62
granting organizations under section 5747.73 of the Revised 63
Code; 64
The nonrefundable credit for tuition paid to a 65
nonchartered nonpublic school under section 5747.75 of the 66
Revised Code; 67
The nonrefundable vocational job credit under section 68
5747.057 of the Revised Code; 69
The nonrefundable job retention credit under division (B) 70
of section 5747.058 of the Revised Code; 71
The enterprise zone credit under section 5709.66 of the 72
Revised Code; 73

The credit for beginning farmers who participate in a 74

S. B. No. 40 As Introduced

financial management program under division (B) of section 75
5747.77 of the Revised Code; 76
The credit for commercial vehicle operator training 77
expenses under section 5747.82 of the Revised Code; 78
The nonrefundable welcome home Ohio (WHO) program credit 79
under section 122.633 of the Revised Code; 80
The credit for selling or renting agricultural assets to 81
beginning farmers under division (A) of section 5747.77 of the 82
Revised Code; 83
The credit for purchases of qualifying grape production 84
property under section 5747.28 of the Revised Code; 85
The small business investment credit under section 5747.81 86
of the Revised Code; 87
The nonrefundable lead abatement credit under section 88
5747.26 of the Revised Code; 89
The opportunity zone investment credit under section 90
122.84 of the Revised Code; 91
The enterprise zone credits under section 5709.65 of the 92
Revised Code; 93
The research and development credit under section 5747.331 94
of the Revised Code; 95
The credit for rehabilitating a historic building under 96
section 5747.76 of the Revised Code; 97
The nonrefundable Ohio low-income housing tax credit under 98
section 5747.83 of the Revised Code; 99
The nonrefundable affordable single-family home credit 100
under section 5747.84 of the Revised Code; 101

S. B. No. 40 As Introduced

The nonresident credit under division (A) of section 102
5747.05 of the Revised Code; 103
The credit for a resident's out-of-state income under 104
division (B) of section 5747.05 of the Revised Code; 105
The refundable motion picture and broadway theatrical 106
production credit under section 5747.66 of the Revised Code; 107
The refundable credit for film and theater capital 108
improvement projects under section 5747.67 of the Revised Code; 109
The refundable jobs creation credit or job retention 110
credit under division (A) of section 5747.058 of the Revised 111
Code; 112
The refundable credit for taxes paid by a qualifying 113
entity granted under section 5747.059 of the Revised Code; 114
The refundable credits for taxes paid by a qualifying 115
pass-through entity granted under division (I) of section 116
5747.08 of the Revised Code; 117
The refundable credit under section 5747.80 of the Revised 118
Code for losses on loans made to the Ohio venture capital 119
program under sections 150.01 to 150.10 of the Revised Code; 120
The refundable credit for rehabilitating a historic 121
building under section 5747.76 of the Revised Code; 122
The refundable credit under section 5747.39 of the Revised 123
Code for taxes levied under section 5747.38 of the Revised Code 124
paid by an electing pass-through entity. 125
(B) For any credit, except the refundable credits 126
enumerated in this section and the credit granted under division 127
(H) of section 5747.08 of the Revised Code, the amount of the 128

S. B. No. 40 As Introduced

credit for a taxable year shall not exceed the taxpayer's 129
aggregate amount of tax due under section 5747.02 of the Revised 130
Code, after allowing for any other credit that precedes it in 131
the order required under this section. Any excess amount of a 132
particular credit may be carried forward if authorized under the 133
section creating that credit. Nothing in this chapter shall be 134
construed to allow a taxpayer to claim, directly or indirectly, 135
a credit more than once for a taxable year. 136
Sec. 5751.56. (A) As used in this section: 137
(1) "Affiliate" means a person that has with another 138
person a legal relationship created or governed by at least one 139
written instrument that demonstrates any of the following: 140
(a) Common ownership, management, or control; 141
(b) A franchise agreement; 142
(c) The granting or extension of a license or other 143
agreement that authorizes a person to use the other person's 144
brand name, trademark, service mark, or other registered 145
identification mark. 146
(2) "Nontherapeutic abortion" has the same meaning as in 147
section 9.04 of the Revised Code. 148
(3) "Promote" means to advocate for, assist with, 149
encourage, or popularize through advertising or publicity. 150
(4)(a) "Qualifying pregnancy resource center" means a 151
person to which all of the following apply: 152
(i) The person is an organization exempt from taxation 153
under section 501(a) of the Internal Revenue Code, as described 154
in section 501(c)(3) of the Internal Revenue Code; 155

S. B. No. 40 As Introduced

(ii) The person maintains its principal office or presence 156
in this state; 157
(iii) At least fifty per cent of its clients claim to be 158
residents of this state; 159
(iv) The person's principal purpose is to provide free or 160
low-cost assistance, which may include pregnancy tests, 161
ultrasounds, counseling, material support, and similar services 162
for pregnant women in carrying their pregnancies to term. 163
(b) "Qualifying pregnancy resource center" includes a 164
maternity home licensed under Chapter 3711. of the Revised Code 165
that meets the requirements described in divisions (A)(4)(a)(i) 166
to (iii) of this section and that is not an organization 167
described in division (A)(4)(c)(iii) of this section. 168
(c) "Qualifying pregnancy resource center" does not 169
include any of the following: 170
(i) A hospital as defined in section 3727.01 of the 171
Revised Code; 172
(ii) A nursing home or residential care facility as 173
defined in section 3721.01 of the Revised Code; 174
(iii) An organization that does any of the following: 175
(I) Performs nontherapeutic abortions; 176
(II) Promotes nontherapeutic abortions; 177
(III) Contracts with any person that performs or promotes 178
nontherapeutic abortions; 179
(IV) Is an affiliate of any person that performs or 180
promotes nontherapeutic abortions. 181
(5) "Tax credit certificate" means the certificate issued 182

S. B. No. 40 As Introduced

by the tax commissioner under division (C) of this section. 183
(6) "Certified pregnancy resource center" means a 184
qualifying pregnancy resource center certified by the tax 185
commissioner under division (B) of this section. 186
(B) A person may apply to the tax commissioner, on forms 187
and in the manner prescribed by the commissioner, to be 188
certified as a qualifying pregnancy resource center. With this 189
application, the person shall certify that it meets all of the 190
requirements of a qualifying pregnancy resource center by 191
submitting the following information: 192
(1) Verification that the person qualifies as an 193
organization exempt from taxation under section 501(a) of the 194
Internal Revenue Code, as described in section 501(c)(3) of the 195
Internal Revenue Code; 196
(2) A statement that the person maintains its principal 197
office or presence in this state and that at least fifty per 198
cent of its clients claim to be residents of this state; 199
(3) A statement that the person does not perform or 200
promote nontherapeutic abortions, contract with any person that 201
performs or promotes nontherapeutic abortions, and is not an 202
affiliate of any person that performs or promotes nontherapeutic 203
abortions. 204
The application shall be signed by an officer of the 205
person under penalty of perjury. The tax commissioner shall 206
review each application and determine if the person meets the 207
requirements of a qualifying pregnancy resource center. The 208
commissioner shall notify the applicant of the commissioner's 209
determination within thirty days after the commissioner receives 210
the application. 211

S. B. No. 40 As Introduced

After granting certification to a person, the commissioner may periodically request recertification from the person. Upon receiving a recertification request, the person shall send to the tax commissioner all of the information required under divisions (B)(1) to (3) of this section and anything else required by the commissioner to verify that the person continues to qualify as a qualifying pregnancy resource center. A person granted a certification under this division shall notify the commissioner of any changes that may affect eligibility within sixty days after such a change. The commissioner shall revoke the certification of any person that no longer qualifies as a qualifying pregnancy resource center under this section. After a person's certification is revoked, the person may again be certified if the person submits another application and written certification to the tax commissioner as required under this division. The commissioner shall post and maintain a list of all qualifying pregnancy resource centers on the department of taxation's web site.

(C)(1) A person that contributes cash to one or more 230
certified pregnancy resource centers in a calendar year may, 231
within sixty days after making that contribution, submit an 232
application to the tax commissioner for a tax credit authorized 233
by this section. The application shall be made on a form and in 234
a manner that the commissioner shall prescribe. The application 235
shall state the amount of the contribution, the tax against 236
which the credit would be claimed, and any other information the 237
commissioner may require. The applicant shall also include with 238
the application a copy of a receipt or other document issued by 239
the qualifying pregnancy resource center acknowledging the 240
taxpayer's contribution to the center, the amount of the 241
contribution, and the date the contribution was made. 242

S. B. No. 40 As Introduced

Except as provided in division (C)(3) of this section, the 243
commissioner shall evaluate applications in the order in which 244
they are received and issue a determination to an applicant not 245
later than thirty days after receipt of an application. If the 246
commissioner denies an application, the determination shall 247
state the reason for the denial. If the commissioner approves an 248
application, the determination shall include a tax credit 249
certificate listing the amount of credit that the applicant may 250
claim and the tax against which it may be claimed. 251
(2) The amount of the credit shall equal the amount of the 252
applicant's contribution to a certified pregnancy resource 253
center in the current calendar year, as approved by the 254
commissioner and listed on the tax credit certificate. 255
(3) The commissioner may not approve more than ten million 256
dollars in total tax credits in a calendar year and may not 257
approve more than five million dollars in tax credits on the 258
basis of donations to the same certified pregnancy resource 259
center in a calendar year. 260
(D) There is hereby allowed a nonrefundable credit against 261
a taxpayer's aggregate tax liability under section 5747.02 of 262
the Revised Code or against the tax imposed under section 263
5751.02 of the Revised Code, as authorized by the tax credit 264
certificate, equal to the amount listed on that certificate. The 265
credit shall be claimed in the manner prescribed by division (E) 266
of this section or by section 5747.74 of the Revised Code, as 267
applicable. A taxpayer shall include a copy of the taxpayer's 268
tax credit certificate with the return on which the credit is 269
claimed. 270
(E) A taxpayer issued a tax credit certificate authorizing 271
the taxpayer to claim a credit against the tax levied under 272

S. B. No. 40 As Introduced

section 5751.02 of the Revised Code may claim a credit against that tax equal to the amount stated in the certificate for the tax period in which the certificate is issued, but the amount claimed may not exceed fifty per cent of the applicant's tax liability for the tax period, before applying any other credit against that tax. The credit shall be claimed in the order required by section 5751.98 of the Revised Code. Any credit amount in excess of fifty per cent of the taxpayer's tax liability, after allowing for any other credits preceding the credit in that order, may be carried forward for five calendar years, but the amount of the excess credit claimed in any such year may not exceed fifty per cent of the taxpayer's tax liability for the tax period, before applying any other credit against that tax, and shall be deducted from the balance carried forward to the next year.

Sec. 5751.98. (A) To provide a uniform procedure for calculating the amount of tax due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order:

The nonrefundable credit for donations to pregnancy 292
resource centers under section 5751.56 of the Revised Code; 293
The nonrefundable jobs retention credit under division (B) 294
of section 5751.50 of the Revised Code; 295
The nonrefundable credit for qualified research expenses 296
under division (B) of section 5751.51 of the Revised Code; 297
The nonrefundable credit for a borrower's qualified 298
research and development loan payments under division (B) of 299
section 5751.52 of the Revised Code; 300

The nonrefundable credit for calendar years 2010 to 2029

S. B. No. 40 As Introduced

for unused net operating losses under division (B) of section 302
5751.53 of the Revised Code; 303
The refundable motion picture and broadway theatrical 304
production credit under section 5751.54 of the Revised Code; 305
The refundable credit for film and theater capital 306
improvement projects under section 5751.55 of the Revised Code; 307
The refundable jobs creation credit or job retention 308
credit under division (A) of section 5751.50 of the Revised 309
Code; 310
The refundable credit for calendar year 2030 for unused 311
net operating losses under division (C) of section 5751.53 of 312
the Revised Code. 313
(B) For any credit except the refundable credits 314
enumerated in this section, the amount of the credit for a tax 315
period shall not exceed the tax due after allowing for any other 316
credit that precedes it in the order required under this 317
section. Any excess amount of a particular credit may be carried 318
forward if authorized under the section creating the credit. 319
Section 2. That existing sections 5747.98 and 5751.98 of 320
the Revised Code are hereby repealed. 321