Governor approves changes to BID eligibility

Written on Nov 07, 2019

Gov. Mike DeWine on Nov. 6 signed into law an OSCPA-supported bill that strikes the ban barring lobbyists and attorneys from using the business income tax deduction.

House amendments to tax omnibus bill SB26, approved in the Senate Oct. 23, add back those two professions to CPAs and all other qualified PTE owners as again being eligible for the BID. The changes also address questions that remained from this summer’s biennial budget bill.

One new development of note in SB26 is a provision requiring all BID recipients to include their occupation on their tax return, using a code from the North American Industry Classification System. This addition is intended to better track exactly which professions are benefiting from the BID.

Barbara Benton, CAE, OSCPA’s vice president of government relations, said it is likely that additional attacks on the BID will come up again during the next biennial budget process in 2021.

“PTE owners should keep in mind that the addition of occupational coding was done to allow legislators to better understand what specific services are being provided and how much these PTE owners are benefiting from the BID,” Benton said. “They will consider this information when they discuss whether they should adjust BID benefits in the next biennial budget.”

SB26 also gives teachers a tax break on school supply purchases and adds a sales tax exemption for feminine hygiene products and prescribed adult incontinence products.

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