Make the earned income tax credit partially refundable

HB 903 proposes to make Ohio's earned income tax credit partially refundable, meaning eligible low-income individuals could receive cash payments even if they owe no state taxes. The bill creates a new refundable credit equal to 10% of the federal earned income credit amount, while also increasing the existing nonrefundable portion to 30% of that same federal figure. This change would directly affect taxpayers who currently cannot benefit from the credit because their tax liability is zero or low. The legislation also updates the order in which various tax credits are applied to ensure the new refundable credit is processed correctly within the state tax system.