SB 9: Incorporate Internal Revenue Code changes into Ohio law - Ohio

As Passed by the House → As Enrolled · 10 edits · Mar 5, 2026

MAJOR

This bill updates Ohio tax law to automatically incorporate changes in the federal Internal Revenue Code made after March 7, 2025, ensuring Ohio tax calculations stay aligned with federal rules. It adds new deductions and definitions for various income types, including expanded provisions for military benefits, medical expenses, venture capital investments, and disaster-related income. The bill also clarifies how trusts and estates are taxed and establishes new definitions for business income, pass-through entities, and other tax terms.

Scope change

The bill expands the scope of Ohio's tax code by adding numerous new deductions and clarifying definitions that were not previously codified in Ohio law, while maintaining the automatic incorporation mechanism for future federal tax changes.

TIMELINE

Establishes that Ohio tax law will automatically incorporate federal Internal Revenue Code changes made after March 7, 2025, without requiring separate legislation for each update.

ELIGIBILITY

Adds new deductions for military pay and allowances, organ donation expenses, veterans bonuses, and disability severance payments for active duty service members.

Creates new deductions for medical care insurance premiums, qualified long-term care insurance, and medical care expenses exceeding 7.5% of federal adjusted gross income.

Introduces deductions for venture capital investments in Ohio businesses, with 100% deduction for gains from Ohio investments and 50% for gains from other investments.

Expands deductions for educators, disaster workers, and individuals with medical savings accounts and homeownership savings accounts.

Adds deductions for Ohio college opportunity grants, Pell grants, adoption grants, and contributions to ABLE savings accounts.

Creates a deduction for qualified organ donation expenses up to $10,000, available only once for all taxable years beginning in 2007 or later.

DEFINITION

Adds comprehensive definitions for business income, nonbusiness income, pass-through entities, trusts, estates, and various tax-related terms used throughout the code.

Establishes new definitions for modified business income, modified nonbusiness income, and qualifying trust amounts specifically for trust taxation.

REQUIREMENT

Requires taxpayers to provide documentation to the tax commissioner for certain deductions, particularly those related to depreciation and pass-through entity additions.

As Passed by the Senate → As Passed by the House · 4 edits · Feb 25, 2026

MODERATE

The bill was amended to expand its scope from amending only section 5701.11 of the Revised Code to also amending section 5747.01, which governs tax definitions. The effective date for incorporating Internal Revenue Code changes was updated from March 15, 2023, to March 7, 2025, and the bill now includes new House cosponsors. These changes ensure the tax code remains current with federal updates and clarify how certain terms are defined for Ohio tax purposes.

Scope change

The bill's scope was expanded to include amendments to section 5747.01 in addition to section 5701.11, broadening the legislative changes to cover both the effective date provision and the definitions section of the tax code.

TIMELINE

The effective date for incorporating changes in the Internal Revenue Code was updated from March 15, 2023, to March 7, 2025, allowing Ohio law to reflect more recent federal tax law updates.

SCOPE

Section 5747.01 was added to the list of sections being amended, expanding the bill to include changes to tax definitions used throughout the tax code.

TECHNICAL

New House cosponsors were added to the bill, including Representatives Thomas, D., Abrams, Callender, Claggett, Click, Craig, Daniels, Deeter, Dovilla, Fowler Arthur, Gross, Hall, T., Hiner, John, Klopfenstein, Mathews, A., Mathews, T., Miller, K., Peterson, Richardson, Schmidt, Stewart, Thomas, J., Williams, Willis, Workman, and Young.

The original Senate-only cosponsor list was modified to include the new House cosponsors, and the bill header was changed from 'As Passed by the Senate' to 'As Passed by the House'.

As Introduced → As Passed by the Senate · 4 edits · Feb 12, 2025

MODERATE

The bill was amended during Senate passage to update the effective date reference from the 135th General Assembly to the 136th General Assembly, reflect the correct bill number (S.B. 109 instead of S.B. 9), and add cosponsor information. These are primarily technical corrections rather than substantive policy changes.

Scope change

No substantive change to the bill's scope or applicability; changes are administrative and formatting updates.

TECHNICAL

Updated the General Assembly session reference from '135th' to '136th' to reflect the correct legislative session.

Corrected the bill number reference from 'S.B. 9' to 'S.B. 109' in the effective date clause.

Added a list of cosponsors to the bill text.

Reformatted the bill header and section numbering to match Senate passage conventions.

Incorporate Internal Revenue Code changes into Ohio law

What changed between versions

How they voted

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