(THE CENTER SQUARE) – A COVID-19 business tax adjustment could become permanent in Ohio, allowing employers to attract more remote workers, according to the bill’s sponsors.

After the House of Representatives unanimously passed House Bill 121, the Senate now gets the legislation allowing businesses to claim net profits at their principal place of business rather than part of remote workers' profits.

During the COVID-19 shutdown, when nearly everyone worked remotely, the change was applied but removed when the emergency shutdown ended.

“By streamlining tax filings, reducing administrative burdens, and providing a simplified method for businesses to calculate their tax liabilities, we enable companies to allocate resources more efficiently,” state Rep. Monica Robb Bladsdel, R-Columbiana County, said. “This will foster reinvestment in their operations, drive economic growth, and create new opportunities for job seekers.”

Robb Bladsdel said the bill would end compliance burdens on businesses and allow them to attract more remote workers to the state.

“By embracing tax simplification and supporting the growth of our businesses, we can build a stronger, more vibrant economy in Ohio,” she said.

Business groups like the Ohio Chamber of Commerce, Ohio Business Roundtable, National Federal of Independent Business and the Ohio Manufacturers’ Association supported the legislation with committee testimony.

“Determining where returns must be filed, and subsequently preparing those returns, may in some instances be more costly to businesses than the underlying tax,” Justin Cook said on behalf of the manufacturers' association. “Against this backdrop, we believe HB121 is a step toward reducing unnecessary administrative burdens on Ohio manufacturers and other businesses operating within the state.”

There was no opposition testimony in the committee, which unanimously passed the bill.