Stimulating developments have occurred recently to reestablish important tax deductions for small business owners in Ohio.
Early in June:
- The Ohio House of Representatives passed their version of a state budget, including an increase of $1.2 billion in business taxes.
- The House budget cuts personal income tax rates by 6.6% but switched tax burden to small business owner.
- The House voted to lower the amount of Small Business Deduction from $250,000 to $100,000.
- The Ohio Senate restores existing tax deductions for small business owners.
- The Senate increased income tax cuts for all brackets from 6.6% to 8%, phased in over two years.
Changes on Small Business Deduction is still under debate. The bill now moves to a joint House-Senate conference committee where the Legislature and DeWine Administration negotiate differences. Reports were favorable for the overturn for Ohio’s small business owners and their significance in the state’s economy. Contact your advisor to discuss how this impacts your business.
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