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

Plain English Breakdown

The official source material does not provide specific details about the amount of the credits beyond their relation to federal rules.

Indiana Child Care Tax Credits Act

This act creates new refundable tax credits in Indiana to help individuals pay for employment-related child and dependent care expenses.

What This Bill Does

• Creates a refundable tax credit for individuals who have employment-related child or dependent care costs, based on the percentage of federal child and dependent care tax credit claimed by the taxpayer.
• Adds another tax credit specifically for children against an individual's Indiana adjusted gross income tax.
• Allows businesses to claim certain expenses related to providing child care for their employees as qualified expenditures.

Who It Names or Affects

• People who need child or dependent care to work
• Businesses that provide child care services to their employees

Terms To Know

refundable tax credit

A type of tax credit where you can get money back even if the credit is more than what you owe in taxes.

qualified expenditures

Spending that meets certain requirements and can be used to reduce your tax bill.

Limits and Unknowns

• The exact amount of the credits depends on federal tax rules.
• It is not clear when this act will become law or how it will affect people's taxes in practice.

Official Summary Text

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

Current Bill Text

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

Child care tax credits.

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 percentage of the federal child and dependent care tax credit the taxpayer claimed for the taxable year for federal income tax purposes. Provides a child tax credit against an individual's Indiana adjusted gross income tax. Provides that costs incurred: (1) for the operating costs of a child care facility operated for a taxpayer's employees; or (2) under a contract with a child care facility to provide child care services to employees of the taxpayer, or under a contract with an intermediate entity that contracts with one or more child care facilities for child care services; are qualified expenditures for purposes of the employer child care expenditure income tax credit.