Introduced Version
HOUSE BILL No. 1301
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-2-30.
Synopsis: Income tax deduction for recent graduates. Provides an
adjusted gross income tax deduction for Indiana residents who obtain:
(1) a bachelor's or an associate degree from a postsecondary
educational institution; or (2) a certificate from a high value workforce
certificate program, as determined by the commission for higher
education (commission); in taxable years immediately following the
taxable year in which the individual obtained the degree or certificate.
Provides that a qualified individual is entitled to the tax deduction in
each of the first two or four taxable years, depending on the type of
degree or certificate obtained, that begin immediately following the
taxable year in which the qualified individual completed the applicable
educational program. Provides that the tax deduction for a particular
qualified year is equal to the lesser of: (1) the amount of the qualified
individual's Indiana adjusted gross income; or (2) $50,000. Requires
the commission to, in part, determine and certify an individual's
eligibility for the tax deduction.
Effective: January 1, 2025.
O'Brien
January 10, 2024, read first time and referred to Committee on Ways and Means.
2024 IN 1301—LS 6829/DI 125 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1301
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-3-2-30 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025]: Sec. 30. (a) As used in this section,
4 "commission" means the commission for higher education.
5 (b) As used in this section, "qualified individual" means an
6 individual who satisfies the following requirements:
7 (1) The individual is an Indiana resident.
8 (2) The individual has been issued a certificate of eligibility by
9 the commission certifying either of the following:
10 (A) The individual graduated after December 31, 2024,
11 from a postsecondary educational institution located in
12 Indiana with a bachelor's degree or an associate degree.
13 (B) The individual successfully completed, after December
14 31, 2024, all requirements to obtain a certificate from a
15 high value workforce certificate program, as determined
16 by the commission, located in Indiana.
17 (c) As used in this section, "qualified taxable year" refers:
2024 IN 1301—LS 6829/DI 125 2
1 (1) for a qualified individual who obtained a bachelor's degree
2 from a postsecondary educational institution, to the first four
3 (4) taxable years; or
4 (2) for a qualified individual who obtained:
5 (A) an associate degree from a postsecondary educational
6 institution; or
7 (B) a certificate from a high value workforce certificate
8 program described in subsection (b)(2)(B);
9 to the first two (2) taxable years;
10 immediately following the taxable year in which a qualified
11 individual completed the applicable educational program described
12 in subsection (b)(2).
13 (d) In each qualified taxable year with respect to a particular
14 qualified individual, the qualified individual is entitled to an
15 adjusted gross income tax deduction in an amount equal to the
16 lesser of:
17 (1) the qualified individual's adjusted gross income for that
18 particular taxable year; or
19 (2) fifty thousand dollars ($50,000).
20 (e) Before filing a tax return for the first qualified taxable year
21 for which a taxpayer wishes to claim a deduction under this
22 section, the taxpayer must apply to the commission for a certificate
23 of eligibility on a form prescribed by the commission. A taxpayer
24 shall attach to the application a transcript and any other
25 information requested by the commission to enable the commission
26 to determine whether the taxpayer satisfies the criteria described
27 in subsection (b)(2).
28 (f) The commission shall issue a certificate of eligibility to each
29 applicant taxpayer determined by the commission to have satisfied
30 the criteria described in subsection (b)(2). A certificate of eligibility
31 issued by the commission applies to each qualified taxable year for
32 which a taxpayer claims a deduction under this section.
33 (g) To receive the deduction provided by this section, a qualified
34 individual must claim the deduction on the qualified individual's
35 annual state tax return or returns in the manner prescribed by the
36 department. The qualified individual shall submit to the
37 department a copy of the certificate of eligibility issued under
38 subsection (f) and all information that the department determines
39 is necessary for the determination of the deduction provided by
40 this section.
41 (h) In determining whether a certificate program is a high value
42 workforce certificate program, the commission shall consider at
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1 least the following for each certificate program:
2 (1) Workforce demand and needs.
3 (2) Wage level data and information.
4 (3) Program content and completion data.
5 (4) Job placement data.
6 (5) The program's impact on public safety.
2024 IN 1301—LS 6829/DI 125