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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HB1169 • 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.

Taxes
Passed Legislature

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

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

Plain English Breakdown

The exact requirements for receiving the tax credit were not specified in the provided official summary, leaving some uncertainty about eligibility criteria.

Increasing Tax Credit for College Savings Plans

This bill increases the tax credit for contributions made to Indiana's college savings plan (Indiana529) starting in 2027.

What This Bill Does

  • Increases the tax credit from $1,500 to $2,500 for a contribution to an Indiana529 plan.
  • For married individuals filing separately, raises the tax credit from $750 to $1,250.
  • Applies these changes starting in 01/01/2027.

Who It Names or Affects

  • Taxpayers who contribute to Indiana's college savings plans (Indiana529).

Terms To Know

tax credit
A reduction of the amount of tax owed, which can lower a taxpayer’s liability.

Limits and Unknowns

  • Does not specify what happens if someone does not meet the requirements for the tax credit.
  • It is unclear how many taxpayers will be affected by this change.
  • This bill has passed both chambers of the Indiana legislature but its final status and implementation are pending.

Bill History

  1. 2026-01-05 House

    Authored by Representative Klinker

  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.
College savings tax credit.

Current Bill Text

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

College savings tax credit.

Beginning in taxable year 2027, increases the credit provided for a contribution to an Indiana529 savings plan against a taxpayer's adjusted gross income from $1,500 to $2,500 (and from $750 to $1,250 in the case of a married individual filing a separate return), subject to other requirements.