Ohio has released recent guidance following the enactment of Am. Sub. H.B. 33. The major changes from the Information Release is summarized below:
• Effective for tax periods beginning on and after January 1, 2024, the CAT annual minimum tax is eliminated.
• For calendar year 2024, the exclusion amount is increased from $1 million to $3 million.
• For calendar year 2025 and thereafter, the exclusion amount is increased to $6 million.
• Taxpayers with $3 million or less in taxable gross receipts in 2024 and $6 million or less in 2025 will not be required to file a return with the Department of Taxation.
• The CAT rate of 0.26% remains unchanged and continues to apply to those taxpayers with taxable gross receipts over $3 million in 2024, and over $6 million in 2025 and
thereafter.
• Annual filing is eliminated after the 2023 annual return, which is due May 10, 2024. Only quarterly returns may be filed for tax periods beginning on and after January 1, 2024.
The CAT for periods prior to 2024 remains unchanged and taxpayers can reference Information Release CAT 2013-05 for information regarding the CAT annual minimum tax, exclusion, and rate for periods prior to 2024.
Below are great visuals released by the department of the changes.
