Ohio Proposes $1,000 Child Tax Credit for 2025

Ohio Governor Mike DeWine has proposed a $1,000 refundable Child Tax Credit for families with children under seven, aimed at providing financial relief for childcare, education, and other essential expenses. This initiative, expected to cost $450 million annually, is part of broader budget negotiations and would be funded through an increase in tobacco taxes. The proposal marks a significant move as it would represent the first refundable child tax credit in a Republican-controlled state, potentially benefiting low- and middle-income households. Advocates emphasize the importance of such credits, especially following the expiration of the expanded federal child tax credit in 2021, which had helped reduce childhood poverty rates. With neighboring Indiana also seeking to implement child tax credits, the interest in these programs has surged in states led by Republican legislatures, reflecting a shift in fiscal policy perspectives. Eligibility for Ohio's credit includes income thresholds that incentivize work, allowing parents earning as little as $2,500 to qualify for a portion of the credit.