SB 96

As Introduced
136th General Assembly
   Regular Session  S. B. No. 96
       2025-2026
  Senators Craig, Blackshear
  Cosponsors: Senators Weinstein, DeMora, Smith
  A BILL
  To amend sections 5747.08 and 5747.98 and to enact  1
  sections 5747.87 and 5747.88 of the Revised Code  2
  to authorize a nonrefundable income tax credit  3
  for the cost of handgun training and firearms  4
  storage and locking devices.  5
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 5747.08 and 5747.98 be amended  6
and sections 5747.87 and 5747.88 of the Revised Code be enacted  7
to read as follows:  8
     Sec. 5747.08. An annual return with respect to the tax  9
imposed by section 5747.02 of the Revised Code and each tax  10
imposed under Chapter 5748. of the Revised Code shall be made by  11
every taxpayer for any taxable year for which the taxpayer is  12
liable for the tax imposed by that section or under that  13
chapter, unless the total credits allowed under division (E) of  14
section 5747.05 and divisions (F) and (G) of section 5747.055 of  15
the Revised Code for the year are equal to or exceed the tax  16
imposed by section 5747.02 of the Revised Code, in which case no  17
return shall be required unless the taxpayer is liable for a tax  18
S. B. No. 96  Page 2
As Introduced
imposed pursuant to Chapter 5748. of the Revised Code.  19
       (A) If an individual is deceased, any return or notice  20
required of that individual under this chapter shall be made and  21
filed by that decedent's executor, administrator, or other  22
person charged with the property of that decedent.  23
       (B) If an individual is unable to make a return or notice  24
required by this chapter, the return or notice required of that  25
individual shall be made and filed by the individual's duly  26
authorized agent, guardian, conservator, fiduciary, or other  27
person charged with the care of the person or property of that  28
individual.  29
       (C) Returns or notices required of an estate or a trust  30
shall be made and filed by the fiduciary of the estate or trust.  31
       (D)(1)(a) Except as otherwise provided in division (D)(1)  32
(b) of this section, any pass-through entity may file a single  33
return on behalf of one or more of the entity's investors other  34
than an investor that is a person subject to the tax imposed  35
under section 5733.06 of the Revised Code. The single return  36
shall set forth the name, address, and social security number or  37
other identifying number of each of those pass-through entity  38
investors and shall indicate the distributive share of each of  39
those pass-through entity investor's income taxable in this  40
state in accordance with sections 5747.20 to 5747.231 of the  41
Revised Code. Such pass-through entity investors for whom the  42
pass-through entity elects to file a single return are not  43
entitled to the exemption or credit provided for by sections  44
5747.02 and 5747.022 of the Revised Code; shall calculate the  45
tax before business credits at the highest rate of tax set forth  46
in section 5747.02 of the Revised Code for the taxable year for  47
which the return is filed; and are entitled to only their  48
S. B. No. 96  Page 3
As Introduced
distributive share of the business credits as defined in  49
division (D)(2) of this section. A single check drawn by the  50
pass-through entity shall accompany the return in full payment  51
of the tax due, as shown on the single return, for such  52
investors, other than investors who are persons subject to the  53
tax imposed under section 5733.06 of the Revised Code.  54
       (b)(i) A pass-through entity shall not include in such a  55
single return any investor that is a trust to the extent that  56
any direct or indirect current, future, or contingent  57
beneficiary of the trust is a person subject to the tax imposed  58
under section 5733.06 of the Revised Code.  59
       (ii) A pass-through entity shall not include in such a  60
single return any investor that is itself a pass-through entity  61
to the extent that any direct or indirect investor in the second  62
pass-through entity is a person subject to the tax imposed under  63
section 5733.06 of the Revised Code.  64
       (c) Except as provided by division (L) of this section,  65
nothing in division (D) of this section precludes the tax  66
commissioner from requiring such investors to file the return  67
and make the payment of taxes and related interest, penalty, and  68
interest penalty required by this section or section 5747.02,  69
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)  70
of this section precludes such an investor from filing the  71
annual return under this section, utilizing the refundable  72
credit equal to the investor's proportionate share of the tax  73
paid by the pass-through entity on behalf of the investor under  74
division (I) of this section, and making the payment of taxes  75
imposed under section 5747.02 of the Revised Code. Nothing in  76
division (D) of this section shall be construed to provide to  77
such an investor or pass-through entity any additional deduction  78
S. B. No. 96  Page 4
As Introduced
or credit, other than the credit provided by division (I) of  79
this section, solely on account of the entity's filing a return  80
in accordance with this section. Such a pass-through entity also  81
shall make the filing and payment of estimated taxes on behalf  82
of the pass-through entity investors other than an investor that  83
is a person subject to the tax imposed under section 5733.06 of  84
the Revised Code.  85
       (2) For the purposes of this section, "business credits"  86
means the credits listed in section 5747.98 of the Revised Code  87
excluding the following credits:  88
       (a) The retirement income credit under division (B) of  89
section 5747.055 of the Revised Code;  90
       (b) The senior citizen credit under division (F) of  91
section 5747.055 of the Revised Code;  92
       (c) The lump sum distribution credit under division (G) of  93
section 5747.055 of the Revised Code;  94
       (d) The dependent care credit under section 5747.054 of  95
the Revised Code;  96
       (e) The lump sum retirement income credit under division  97
(C) of section 5747.055 of the Revised Code;  98
       (f) The lump sum retirement income credit under division  99
(D) of section 5747.055 of the Revised Code;  100
       (g) The lump sum retirement income credit under division  101
(E) of section 5747.055 of the Revised Code;  102
       (h) The credit for displaced workers who pay for job  103
training under section 5747.27 of the Revised Code;  104
       (i) The twenty-dollar personal exemption credit under  105
S. B. No. 96  Page 5
As Introduced
section 5747.022 of the Revised Code;  106
       (j) The joint filing credit under division (E) of section  107
5747.05 of the Revised Code;  108
       (k) The nonresident credit under division (A) of section  109
5747.05 of the Revised Code;  110
       (l) The credit for a resident's out-of-state income under  111
division (B) of section 5747.05 of the Revised Code;  112
       (m) The earned income tax credit under section 5747.71 of  113
the Revised Code;  114
       (n) The lead abatement credit under section 5747.26 of the  115
Revised Code;  116
       (o) The credit for education expenses under section  117
5747.72 of the Revised Code;  118
       (p) The credit for tuition paid to a nonchartered  119
nonpublic school under section 5747.75 of the Revised Code;  120
       (q) The handgun training credit under section 5747.87 of  121
the Revised Code;  122
       (r) The credit for secure storage or locking device  123
purchases under section 5747.88 of the Revised Code.  124
       (3) The election provided for under division (D) of this  125
section applies only to the taxable year for which the election  126
is made by the pass-through entity. Unless the tax commissioner  127
provides otherwise, this election, once made, is binding and  128
irrevocable for the taxable year for which the election is made.  129
Nothing in this division shall be construed to provide for any  130
deduction or credit that would not be allowable if a nonresident  131
pass-through entity investor were to file an annual return.  132
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As Introduced
       (4) If a pass-through entity makes the election provided  133
for under division (D) of this section, the pass-through entity  134
shall be liable for any additional taxes, interest, interest  135
penalty, or penalties imposed by this chapter if the tax  136
commissioner finds that the single return does not reflect the  137
correct tax due by the pass-through entity investors covered by  138
that return. Nothing in this division shall be construed to  139
limit or alter the liability, if any, imposed on pass-through  140
entity investors for unpaid or underpaid taxes, interest,  141
interest penalty, or penalties as a result of the pass-through  142
entity's making the election provided for under division (D) of  143
this section. For the purposes of division (D) of this section,  144
"correct tax due" means the tax that would have been paid by the  145
pass-through entity had the single return been filed in a manner  146
reflecting the commissioner's findings. Nothing in division (D)  147
of this section shall be construed to make or hold a pass-  148
through entity liable for tax attributable to a pass-through  149
entity investor's income from a source other than the pass-  150
through entity electing to file the single return.  151
       (E) If a husband and wife file a joint federal income tax  152
return for a taxable year, they shall file a joint return under  153
this section for that taxable year, and their liabilities are  154
joint and several, but, if the federal income tax liability of  155
either spouse is determined on a separate federal income tax  156
return, they shall file separate returns under this section.  157
       If either spouse is not required to file a federal income  158
tax return and either or both are required to file a return  159
pursuant to this chapter, they may elect to file separate or  160
joint returns, and, pursuant to that election, their liabilities  161
are separate or joint and several. If a husband and wife file  162
separate returns pursuant to this chapter, each must claim the  163
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As Introduced
taxpayer's own exemption, but not both, as authorized under  164
section 5747.02 of the Revised Code on the taxpayer's own  165
return.  166
       (F) Each return or notice required to be filed under this  167
section shall contain the signature of the taxpayer or the  168
taxpayer's duly authorized agent and of the person who prepared  169
the return for the taxpayer, and shall include the taxpayer's  170
social security number. Each return shall be verified by a  171
declaration under the penalties of perjury. The tax commissioner  172
shall prescribe the form that the signature and declaration  173
shall take.  174
       (G) Each return or notice required to be filed under this  175
section shall be made and filed as required by section 5747.04  176
of the Revised Code, on or before the fifteenth day of April of  177
each year, on forms that the tax commissioner shall prescribe,  178
together with remittance made payable to the treasurer of state  179
in the combined amount of the state and all school district  180
income taxes shown to be due on the form.  181
       Upon good cause shown, the commissioner may extend the  182
period for filing any notice or return required to be filed  183
under this section and may adopt rules relating to extensions.  184
If the extension results in an extension of time for the payment  185
of any state or school district income tax liability with  186
respect to which the return is filed, the taxpayer shall pay at  187
the time the tax liability is paid an amount of interest  188
computed at the rate per annum prescribed by section 5703.47 of  189
the Revised Code on that liability from the time that payment is  190
due without extension to the time of actual payment. Except as  191
provided in section 5747.132 of the Revised Code, in addition to  192
all other interest charges and penalties, all taxes imposed  193
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As Introduced
under this chapter or Chapter 5748. of the Revised Code and  194
remaining unpaid after they become due, except combined amounts  195
due of one dollar or less, bear interest at the rate per annum  196
prescribed by section 5703.47 of the Revised Code until paid or  197
until the day an assessment is issued under section 5747.13 of  198
the Revised Code, whichever occurs first.  199
       If the commissioner considers it necessary in order to  200
ensure the payment of the tax imposed by section 5747.02 of the  201
Revised Code or any tax imposed under Chapter 5748. of the  202
Revised Code, the commissioner may require returns and payments  203
to be made otherwise than as provided in this section.  204
       To the extent that any provision in this division  205
conflicts with any provision in section 5747.026 of the Revised  206
Code, the provision in that section prevails.  207
       (H) The amounts withheld pursuant to section 5747.06,  208
5747.062, 5747.063, 5747.064, 5747.065, or 5747.071 of the  209
Revised Code shall be allowed to the ultimate recipient of the  210
income as credits against payment of the appropriate taxes  211
imposed on the ultimate recipient by section 5747.02 and under  212
Chapter 5748. of the Revised Code. As used in this division,  213
"ultimate recipient" means the person who is required to report  214
income from which amounts are withheld pursuant to section  215
5747.06, 5747.062, 5747.063, 5747.064, 5747.065, or 5747.071 of  216
the Revised Code on the annual return required to be filed under  217
this section.  218
       (I) If a pass-through entity elects to file a single  219
return under division (D) of this section and if any investor is  220
required to file the annual return and make the payment of taxes  221
required by this chapter on account of the investor's other  222
income that is not included in a single return filed by a pass-  223
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As Introduced
through entity or any other investor elects to file the annual  224
return, the investor is entitled to a refundable credit equal to  225
the investor's proportionate share of the tax paid by the pass-  226
through entity on behalf of the investor. The investor shall  227
claim the credit for the investor's taxable year in which or  228
with which ends the taxable year of the pass-through entity.  229
Nothing in this chapter shall be construed to allow any credit  230
provided in this chapter to be claimed more than once. For the  231
purpose of computing any interest, penalty, or interest penalty,  232
the investor shall be deemed to have paid the refundable credit  233
provided by this division on the day that the pass-through  234
entity paid the estimated tax or the tax giving rise to the  235
credit.  236
       (J) The tax commissioner shall ensure that each return  237
required to be filed under this section includes a box that the  238
taxpayer may check to authorize a paid tax preparer who prepared  239
the return to communicate with the department of taxation about  240
matters pertaining to the return. The return or instructions  241
accompanying the return shall indicate that by checking the box  242
the taxpayer authorizes the department of taxation to contact  243
the preparer concerning questions that arise during the  244
processing of the return and authorizes the preparer only to  245
provide the department with information that is missing from the  246
return, to contact the department for information about the  247
processing of the return or the status of the taxpayer's refund  248
or payments, and to respond to notices about mathematical  249
errors, offsets, or return preparation that the taxpayer has  250
received from the department and has shown to the preparer.  251
       (K) The tax commissioner shall permit individual taxpayers  252
to instruct the department of taxation to cause any refund of  253
overpaid taxes to be deposited directly into a checking account,  254
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As Introduced
savings account, or an individual retirement account or  255
individual retirement annuity, or preexisting college savings  256
plan or program account offered by the Ohio tuition trust  257
authority under Chapter 3334. of the Revised Code, as designated  258
by the taxpayer, when the taxpayer files the annual return  259
required by this section electronically.  260
       (L) If, for the taxable year, a nonresident or trust that  261
is the owner of an electing pass-through entity, as defined in  262
section 5747.38 of the Revised Code, does not have Ohio adjusted  263
gross income or, in the case of a trust, modified Ohio taxable  264
income other than from one or more electing pass-through  265
entities, the nonresident or trust shall not be required to file  266
an annual return under this section. Nothing in this division  267
precludes such an owner from filing the annual return under this  268
section, utilizing the refundable credit under section 5747.39  269
of the Revised Code equal to the owner's proportionate share of  270
the tax levied under section 5747.38 of the Revised Code and  271
paid by the electing pass-through entity, and making the payment  272
of taxes imposed under section 5747.02 of the Revised Code.  273
       (M) The tax commissioner may adopt rules to administer  274
this section.  275
       Sec. 5747.87. A nonrefundable tax credit against a  276
taxpayer's aggregate tax liability under section 5747.02 of the  277
Revised Code is allowed for the cost of a course, class, or  278
program described in division (B)(3)(a), (b), (c), or (e) of  279
section 2923.125 of the Revised Code. The amount of the credit  280
shall equal the cost of the course, class, or program, but the  281
amount of credit claimed by the taxpayer for any taxable year  282
may not exceed two hundred fifty dollars.  283
       The credit shall be claimed for the taxable year in which  284
S. B. No. 96  Page 11
As Introduced
the taxpayer completed the course, class, or program, and in the  285
order prescribed by section 5747.98 of the Revised Code.  286
       The tax commissioner shall not prepare or keep a list of  287
taxpayers who have claimed the credit authorized by this  288
section.  289
       Sec. 5747.88. (A) As used in this section:  290
       (1) "Secure storage device" means a locked safe,  291
container, case, lock box, or other device that is designed to  292
be, or can be, used to store a firearm provided that it can only  293
be unlocked by means of a key, combination, biometric  294
identifier, or other similar means.  295
       (2) "Locking device" means a tamper-resistant mechanical  296
lock or device that disables a firearm and renders the firearm  297
inoperable without first deactivating the device. A locking  298
device can only be unlocked by means of a key, combination,  299
biometric identifier, or other similar means.  300
       (B) There is hereby allowed a nonrefundable credit against  301
a taxpayer's aggregate tax liability under section 5747.02 of  302
the Revised Code for amounts spent by the taxpayer during the  303
taxable year to purchase secure storage devices or locking  304
devices. The amount of the credit on the basis of each secure  305
storage device or locking device shall equal the lesser of two  306
hundred fifty dollars or the purchase price of the secure  307
storage device or locking device.  308
       The taxpayer shall claim the credit in the order required  309
under section 5747.98 of the Revised Code.  310
       The tax commissioner may request that a taxpayer furnish a  311
sales receipt or any other information necessary to support a  312
claim for credit under this section, and no credit shall be  313
S. B. No. 96  Page 12
As Introduced
allowed unless the requested information is provided.  314
       The tax commissioner shall not prepare or keep a list of  315
taxpayers who have claimed the credit authorized by this  316
section.  317
       Sec. 5747.98. (A) To provide a uniform procedure for  318
calculating a taxpayer's aggregate tax liability under section  319
5747.02 of the Revised Code, a taxpayer shall claim any credits  320
to which the taxpayer is entitled in the following order:  321
       Either the retirement income credit under division (B) of  322
section 5747.055 of the Revised Code or the lump sum retirement  323
income credits under divisions (C), (D), and (E) of that  324
section;  325
       Either the senior citizen credit under division (F) of  326
section 5747.055 of the Revised Code or the lump sum  327
distribution credit under division (G) of that section;  328
       The dependent care credit under section 5747.054 of the  329
Revised Code;  330
       The credit for displaced workers who pay for job training  331
under section 5747.27 of the Revised Code;  332
       The campaign contribution credit under section 5747.29 of  333
the Revised Code;  334
       The twenty-dollar personal exemption credit under section  335
5747.022 of the Revised Code;  336
       The joint filing credit under division (G) (E) of section  337
5747.05 of the Revised Code;  338
       The earned income credit under section 5747.71 of the  339
Revised Code;  340
S. B. No. 96  Page 13
As Introduced
        The nonrefundable credit for education expenses under  341
section 5747.72 of the Revised Code;  342
        The nonrefundable credit for donations to scholarship  343
granting organizations under section 5747.73 of the Revised  344
Code;  345
        The nonrefundable credit for tuition paid to a  346
nonchartered nonpublic school under section 5747.75 of the  347
Revised Code;  348
        The nonrefundable vocational job credit under section  349
5747.057 of the Revised Code;  350
        The nonrefundable handgun training credit under section  351
5747.87 of the Revised Code;  352
        The nonrefundable credit for secure storage or locking  353
device purchases under section 5747.88 of the Revised Code;  354
        The nonrefundable job retention credit under division (B)  355
of section 5747.058 of the Revised Code;  356
        The enterprise zone credit under section 5709.66 of the  357
Revised Code;  358
        The credit for beginning farmers who participate in a  359
financial management program under division (B) of section  360
5747.77 of the Revised Code;  361
        The credit for commercial vehicle operator training  362
expenses under section 5747.82 of the Revised Code;  363
        The nonrefundable welcome home Ohio (WHO) program credit  364
under section 122.633 of the Revised Code;  365
        The credit for selling or renting agricultural assets to  366
beginning farmers under division (A) of section 5747.77 of the  367
S. B. No. 96  Page 14
As Introduced
Revised Code;  368
       The credit for purchases of qualifying grape production  369
property under section 5747.28 of the Revised Code;  370
       The small business investment credit under section 5747.81  371
of the Revised Code;  372
       The nonrefundable lead abatement credit under section  373
5747.26 of the Revised Code;  374
       The opportunity zone investment credit under section  375
122.84 of the Revised Code;  376
       The enterprise zone credits under section 5709.65 of the  377
Revised Code;  378
       The research and development credit under section 5747.331  379
of the Revised Code;  380
       The credit for rehabilitating a historic building under  381
section 5747.76 of the Revised Code;  382
       The nonrefundable Ohio low-income housing tax credit under  383
section 5747.83 of the Revised Code;  384
       The nonrefundable affordable single-family home credit  385
under section 5747.84 of the Revised Code;  386
       The nonresident credit under division (A) of section  387
5747.05 of the Revised Code;  388
       The credit for a resident's out-of-state income under  389
division (B) of section 5747.05 of the Revised Code;  390
       The refundable motion picture and broadway theatrical  391
production credit under section 5747.66 of the Revised Code;  392
       The refundable credit for film and theater capital  393
S. B. No. 96  Page 15
As Introduced
improvement projects under section 5747.67 of the Revised Code;  394
        The refundable jobs creation credit or job retention  395
credit under division (A) of section 5747.058 of the Revised  396
Code;  397
        The refundable credit for taxes paid by a qualifying  398
entity granted under section 5747.059 of the Revised Code;  399
        The refundable credits for taxes paid by a qualifying  400
pass-through entity granted under division (I) of section  401
5747.08 of the Revised Code;  402
        The refundable credit under section 5747.80 of the Revised  403
Code for losses on loans made to the Ohio venture capital  404
program under sections 150.01 to 150.10 of the Revised Code;  405
        The refundable credit for rehabilitating a historic  406
building under section 5747.76 of the Revised Code;  407
        The refundable credit under section 5747.39 of the Revised  408
Code for taxes levied under section 5747.38 of the Revised Code  409
paid by an electing pass-through entity.  410
        (B) For any credit, except the refundable credits  411
enumerated in this section and the credit granted under division  412
(H) of section 5747.08 of the Revised Code, the amount of the  413
credit for a taxable year shall not exceed the taxpayer's  414
aggregate amount of tax due under section 5747.02 of the Revised  415
Code, after allowing for any other credit that precedes it in  416
the order required under this section. Any excess amount of a  417
particular credit may be carried forward if authorized under the  418
section creating that credit. Nothing in this chapter shall be  419
construed to allow a taxpayer to claim, directly or indirectly,  420
a credit more than once for a taxable year.  421
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As Introduced
       Section 2. That existing sections 5747.08 and 5747.98 of  422
the Revised Code are hereby repealed.  423
       Section 3. The enactment by this act of sections 5747.87  424
and 5747.88 of the Revised Code applies to taxable years ending  425
on or after the effective date of this section.  426