OSCPA staff report
While the phrase, “What might have been,” often indicates disappointment, thanks to the efforts of OSCPA on the new state budget, Ohio accountants can say it with relief.
The Legislature on July 18 ended weeks of political haggling to approve Ohio’s biennial budget bill (Am. Sub. HB 166) more than two weeks after the original deadline. As noteworthy as the bill was for what it contained, what it did NOT include was at least as important, Society government relations leaders said.
The Business Income Deduction (BID) was kept at $250,000, and it maintains the 3% flat rate cap on income above it. OSCPA also convinced legislators to avoid tying the BID to the federal 199A law, a harmful provision that was frequently mentioned as an option.
The provision would have had a negative impact on CPAs, as well as a broad array of specified service trades and businesses (SSTB), OSCPA Tax Policy Director Greg Saul, Esq., CAE, said.
“That was one of the things we didn’t want to see, just because of all the confusion around that,” Saul said. “The IRS just came out with 47 frequently asked questions on the 199A deduction.”
View the video above to learn more, and to hear OSCPA’s VP of Government Relations, Barb Benton, CAE, discuss the occupations that might not be able to take the Business Income Deduction in the future.
Preservation of the Business Income Deduction is at the top of OSCPA’s list of legislative priorities for the year. Learn what else we’re doing on your behalf, including diversity and inclusion efforts, state conformity to federal partnership audit rules, and regulatory reform in this comprehensive list (PDF).