KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB1138 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Children Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Carey Hamilton
Last action
2026-01-05
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about the percentage or exact calculation method for the tax credit amount.

Child Care Tax Credit Bill

This bill proposes to create a refundable tax credit in Indiana to help people pay for child or dependent care expenses when they work.

What This Bill Does

  • Proposes creating a new tax credit for individuals who incur employment-related child and dependent care expenses.

Who It Names or Affects

  • People who need child or dependent care to be able to work
  • Taxpayers in Indiana

Terms To Know

Refundable Tax Credit
A tax credit that can give you money back even if it's more than the taxes you owe.
Indiana Adjusted Gross Income (IAGI)
The amount of income used to calculate your Indiana state income tax after certain deductions are taken out.

Limits and Unknowns

  • It's not clear what percentage of the federal child and dependent care tax credit will be applied.
  • This bill has only been introduced and needs more steps before it becomes a law.

Bill History

  1. 2026-01-05 House

    Authored by Representative Hamilton

  2. 2026-01-05 House

    First reading: referred to Committee on Ways and Means

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Child care tax credit.

Current Bill Text

Read the full stored bill text 
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Child care tax credit.

Provides a child and dependent care refundable tax credit against an individual's Indiana adjusted gross income tax for employment related child and dependent care expenses based on the taxpayer's Indiana adjusted gross income and a percentage of the federal child and dependent care tax credit the taxpayer claimed for the taxable year for federal income tax purposes.