Indiana 2023 Regular Session

Indiana Senate Bill SB0238 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 238
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-35.1.
7	7	Synopsis: Child and dependent care tax credit. Provides a refundable
8	8	child and dependent care tax credit to taxpayers whose adjusted gross
9	9	income for the taxable year is not more than 250% of the federal
10	10	poverty level. Provides that the credit is equal to the lesser of: (1) an
11	11	amount ranging from $200 to $1,000, depending on the extent to which
12	12	the taxpayer's adjusted gross income exceeds the federal poverty level;
13	13	or (2) 20% of the taxpayer's employment related expenses.
14	14	Effective: January 1, 2023 (retroactive).
15	15	Taylor G
16	16	January 10, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
17	17	2023 IN 238—LS 6361/DI 129 Introduced
18	18	First Regular Session of the 123rd General Assembly (2023)
19	19	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
20	20	Constitution) is being amended, the text of the existing provision will appear in this style type,
21	21	additions will appear in this style type, and deletions will appear in this style type.
22	22	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
23	23	provision adopted), the text of the new provision will appear in this style type. Also, the
24	24	word NEW will appear in that style type in the introductory clause of each SECTION that adds
25	25	a new provision to the Indiana Code or the Indiana Constitution.
26	26	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
27	27	between statutes enacted by the 2022 Regular Session of the General Assembly.
28	28	SENATE BILL No. 238
29	29	A BILL FOR AN ACT to amend the Indiana Code concerning
30	30	taxation.
31	31	Be it enacted by the General Assembly of the State of Indiana:
32	32	1 SECTION 1. IC 6-3.1-35.1 IS ADDED TO THE INDIANA CODE
33	33	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
34	34	3 JANUARY 1, 2023 (RETROACTIVE)]:
35	35	4 Chapter 35.1. Child and Dependent Care Tax Credit
36	36	5 Sec. 1. As used in this chapter, "adjusted gross income" has the
37	37	6 meaning set forth in IC 6-3-1-3.5.
38	38	7 Sec. 2. (a) As used in this chapter, "employment related
39	39	8 expenses" means amounts that are:
40	40	9 (1) paid for the care of a qualifying individual; and
41	41	10 (2) incurred to enable an individual taxpayer, including an
42	42	11 individual taxpayer's spouse in the case of a joint return, to be
43	43	12 gainfully employed.
44	44	13 (b) The term does not include an amount paid for services
45	45	14 outside the taxpayer's household at a camp where a qualifying
46	46	15 individual stays overnight.
47	47	16 (c) The term does not include amounts paid for services outside
48	48	17 the taxpayer's household that are not provided in conformity with
49	49	2023 IN 238—LS 6361/DI 129 2
50	50	1 applicable state and local laws.
51	51	2 Sec. 3. As used in this chapter, "federal poverty level" refers to
52	52	3 the poverty income guidelines published by the United States
53	53	4 Department of Health and Human Services.
54	54	5 Sec. 4. As used in this chapter, "qualifying individual" has the
55	55	6 meaning set forth in Section 21(b)(1) of the Internal Revenue Code.
56	56	7 Sec. 5. As used in this chapter, "state income tax liability"
57	57	8 means the total income tax liability incurred under IC 6-3, as
58	58	9 computed after application of the credits that under IC 6-3.1-1-2
59	59	10 are to be applied before the credit provided by this chapter.
60	60	11 Sec. 6. An individual taxpayer, including an individual
61	61	12 taxpayer's spouse in the case of a joint return, who has:
62	62	13 (1) employment related expenses during the taxable year; and
63	63	14 (2) adjusted gross income, or combined adjusted gross income
64	64	15 with the taxpayer's spouse in the case of a joint return, of not
65	65	16 more than two hundred fifty percent (250%) of the federal
66	66	17 poverty level for the taxable year;
67	67	18 is entitled to a refundable credit against the taxpayer's state
68	68	19 income tax liability for the taxable year.
69	69	20 Sec. 7. The amount of a credit allowed under section 6 of this
70	70	21 chapter for a taxable year is equal to the following:
71	71	22 (1) The lesser of:
72	72	23 (A) the amount of employment related expenses incurred
73	73	24 in the taxable year multiplied by twenty percent (20%); or
74	74	25 (B) one thousand dollars ($1,000);
75	75	26 if the taxpayer's adjusted gross income, or combined adjusted
76	76	27 gross income with the taxpayer's spouse in the case of a joint
77	77	28 return, is not more than one hundred eighty-five percent
78	78	29 (185%) of the federal poverty level.
79	79	30 (2) The lesser of:
80	80	31 (A) the amount of employment related expenses incurred
81	81	32 in the taxable year multiplied by twenty percent (20%); or
82	82	33 (B) eight hundred dollars ($800);
83	83	34 if the taxpayer's adjusted gross income, or combined adjusted
84	84	35 gross income with the taxpayer's spouse in the case of a joint
85	85	36 return, is more than one hundred eighty-five percent (185%)
86	86	37 but not more than two hundred one percent (201%) of the
87	87	38 federal poverty level.
88	88	39 (3) The lesser of:
89	89	40 (A) the amount of employment related expenses incurred
90	90	41 in the taxable year multiplied by twenty percent (20%); or
91	91	42 (B) six hundred dollars ($600);
92	92	2023 IN 238—LS 6361/DI 129 3
93	93	1 if the taxpayer's adjusted gross income, or combined adjusted
94	94	2 gross income with the taxpayer's spouse in the case of a joint
95	95	3 return, is more than two hundred one percent (201%) but not
96	96	4 more than two hundred seventeen percent (217%) of the
97	97	5 federal poverty level.
98	98	6 (4) The lesser of:
99	99	7 (A) the amount of employment related expenses incurred
100	100	8 in the taxable year multiplied by twenty percent (20%); or
101	101	9 (B) four hundred dollars ($400);
102	102	10 if the taxpayer's adjusted gross income, or combined adjusted
103	103	11 gross income with the taxpayer's spouse in the case of a joint
104	104	12 return, is more than two hundred seventeen percent (217%)
105	105	13 but not more than two hundred thirty-three percent (233%)
106	106	14 of the federal poverty level.
107	107	15 (5) The lesser of:
108	108	16 (A) the amount of employment related expenses incurred
109	109	17 in the taxable year multiplied by twenty percent (20%); or
110	110	18 (B) two hundred dollars ($200);
111	111	19 if the taxpayer's adjusted gross income, or combined adjusted
112	112	20 gross income with the taxpayer's spouse in the case of a joint
113	113	21 return, is more than two hundred thirty-three percent (233%)
114	114	22 but not more than two hundred fifty percent (250%) of the
115	115	23 federal poverty level.
116	116	24 Sec. 8. If both spouses reside in the same household, the total
117	117	25 amount of the credit computed under section 7 of this chapter may
118	118	26 be claimed only once.
119	119	27 Sec. 9. If the credit provided under this chapter exceeds the state
120	120	28 income tax liability due from the taxpayer for the taxable year, the
121	121	29 excess shall be refunded to the taxpayer.
122	122	30 Sec. 10. (a) The department may adopt rules under IC 4-22-2 to
123	123	31 implement this chapter.
124	124	32 (b) The department may require that a taxpayer apply for a
125	125	33 credit under this chapter on a form designated by the department.
126	126	34 SECTION 2. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
127	127	35 (a) IC 6-3.1-35.1, as added by this act, applies only to taxable years
128	128	36 beginning after December 31, 2022.
129	129	37 (b) This SECTION expires January 1, 2026.
130	130	38 SECTION 3. An emergency is declared for this act.
131	131	2023 IN 238—LS 6361/DI 129