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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HB1149 • 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 Education Taxes
Passed Legislature

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

Sponsor
Representative Dave Heine
Last action
2026-01-12
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details on the specific conditions that must be included in the agreement between SGOs and the Department of Education.

Pre-K Care Scholarship Tax Credit

This bill creates a tax credit for people who donate money to organizations that give scholarships for pre-kindergarten care.

What This Bill Does

  • Creates a new tax credit called the Early Childhood Scholarship Tax Credit.
  • The credit is worth 50% of what someone donates to an approved scholarship granting organization (SGO).
  • Limits how much total tax credits can be given each year to $100 million.
  • Requires the Department of Education to check and approve SGOs that meet certain rules.

Who It Names or Affects

  • People who donate money to scholarship granting organizations for early childhood care.
  • Scholarship granting organizations that provide scholarships for pre-kindergarten care.
  • Children attending qualified early child care providers.

Terms To Know

scholarship granting organization (SGO)
An organization that gives out scholarships to help pay for early childhood education programs.
qualified early child care provider
A place or program that meets certain standards and can accept scholarship funds from SGOs.

Limits and Unknowns

  • The total tax credits given each year are limited to $100 million.
  • It is not clear when the bill will become law or how it will be enforced.

Bill History

  1. 2026-01-12 House

    Representative Heaton removed as coauthor

  2. 2026-01-12 House

    Representative Smaltz added as coauthor

  3. 2026-01-05 House

    Authored by Representative Heine

  4. 2026-01-05 House

    Coauthored by Representatives McGuire, O'Brien, Heaton

  5. 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.
Pre-kindergarten care SGO tax credit.

Current Bill Text

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

Pre-kindergarten care SGO tax credit.

Establishes an early childhood scholarship tax credit for contributions made to a scholarship granting organization that conducts a program to provide scholarships for children who attend a qualified early child care provider. Provides that the amount of the credit is equal to 50% of the amount of the contribution. Limits the total amount of tax credits awarded in a state fiscal year to not more than $100,000,000. Requires the department of education (department) to certify early childhood scholarship granting organizations that meet certain criteria. Requires qualified early childhood scholarship granting organizations to enter into an agreement with the department. Specifies conditions that must be included in the agreement. Provides that a school corporation that operates an early childhood education program may not limit consideration for participation in the program solely to those residing within the school district.