Indiana 2024 Regular Session

Indiana House Bill HB1301 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1301
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-2-30.
7	7	Synopsis: Income tax deduction for recent graduates. Provides an
8	8	adjusted gross income tax deduction for Indiana residents who obtain:
9	9	(1) a bachelor's or an associate degree from a postsecondary
10	10	educational institution; or (2) a certificate from a high value workforce
11	11	certificate program, as determined by the commission for higher
12	12	education (commission); in taxable years immediately following the
13	13	taxable year in which the individual obtained the degree or certificate.
14	14	Provides that a qualified individual is entitled to the tax deduction in
15	15	each of the first two or four taxable years, depending on the type of
16	16	degree or certificate obtained, that begin immediately following the
17	17	taxable year in which the qualified individual completed the applicable
18	18	educational program. Provides that the tax deduction for a particular
19	19	qualified year is equal to the lesser of: (1) the amount of the qualified
20	20	individual's Indiana adjusted gross income; or (2) $50,000. Requires
21	21	the commission to, in part, determine and certify an individual's
22	22	eligibility for the tax deduction.
23	23	Effective: January 1, 2025.
24	24	O'Brien
25	25	January 10, 2024, read first time and referred to Committee on Ways and Means.
26	26	2024 IN 1301—LS 6829/DI 125 Introduced
27	27	Second Regular Session of the 123rd General Assembly (2024)
28	28	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
29	29	Constitution) is being amended, the text of the existing provision will appear in this style type,
30	30	additions will appear in this style type, and deletions will appear in this style type.
31	31	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
32	32	provision adopted), the text of the new provision will appear in this style type. Also, the
33	33	word NEW will appear in that style type in the introductory clause of each SECTION that adds
34	34	a new provision to the Indiana Code or the Indiana Constitution.
35	35	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
36	36	between statutes enacted by the 2023 Regular Session of the General Assembly.
37	37	HOUSE BILL No. 1301
38	38	A BILL FOR AN ACT to amend the Indiana Code concerning
39	39	taxation.
40	40	Be it enacted by the General Assembly of the State of Indiana:
41	41	1 SECTION 1. IC 6-3-2-30 IS ADDED TO THE INDIANA CODE
42	42	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
43	43	3 JANUARY 1, 2025]: Sec. 30. (a) As used in this section,
44	44	4 "commission" means the commission for higher education.
45	45	5 (b) As used in this section, "qualified individual" means an
46	46	6 individual who satisfies the following requirements:
47	47	7 (1) The individual is an Indiana resident.
48	48	8 (2) The individual has been issued a certificate of eligibility by
49	49	9 the commission certifying either of the following:
50	50	10 (A) The individual graduated after December 31, 2024,
51	51	11 from a postsecondary educational institution located in
52	52	12 Indiana with a bachelor's degree or an associate degree.
53	53	13 (B) The individual successfully completed, after December
54	54	14 31, 2024, all requirements to obtain a certificate from a
55	55	15 high value workforce certificate program, as determined
56	56	16 by the commission, located in Indiana.
57	57	17 (c) As used in this section, "qualified taxable year" refers:
58	58	2024 IN 1301—LS 6829/DI 125 2
59	59	1 (1) for a qualified individual who obtained a bachelor's degree
60	60	2 from a postsecondary educational institution, to the first four
61	61	3 (4) taxable years; or
62	62	4 (2) for a qualified individual who obtained:
63	63	5 (A) an associate degree from a postsecondary educational
64	64	6 institution; or
65	65	7 (B) a certificate from a high value workforce certificate
66	66	8 program described in subsection (b)(2)(B);
67	67	9 to the first two (2) taxable years;
68	68	10 immediately following the taxable year in which a qualified
69	69	11 individual completed the applicable educational program described
70	70	12 in subsection (b)(2).
71	71	13 (d) In each qualified taxable year with respect to a particular
72	72	14 qualified individual, the qualified individual is entitled to an
73	73	15 adjusted gross income tax deduction in an amount equal to the
74	74	16 lesser of:
75	75	17 (1) the qualified individual's adjusted gross income for that
76	76	18 particular taxable year; or
77	77	19 (2) fifty thousand dollars ($50,000).
78	78	20 (e) Before filing a tax return for the first qualified taxable year
79	79	21 for which a taxpayer wishes to claim a deduction under this
80	80	22 section, the taxpayer must apply to the commission for a certificate
81	81	23 of eligibility on a form prescribed by the commission. A taxpayer
82	82	24 shall attach to the application a transcript and any other
83	83	25 information requested by the commission to enable the commission
84	84	26 to determine whether the taxpayer satisfies the criteria described
85	85	27 in subsection (b)(2).
86	86	28 (f) The commission shall issue a certificate of eligibility to each
87	87	29 applicant taxpayer determined by the commission to have satisfied
88	88	30 the criteria described in subsection (b)(2). A certificate of eligibility
89	89	31 issued by the commission applies to each qualified taxable year for
90	90	32 which a taxpayer claims a deduction under this section.
91	91	33 (g) To receive the deduction provided by this section, a qualified
92	92	34 individual must claim the deduction on the qualified individual's
93	93	35 annual state tax return or returns in the manner prescribed by the
94	94	36 department. The qualified individual shall submit to the
95	95	37 department a copy of the certificate of eligibility issued under
96	96	38 subsection (f) and all information that the department determines
97	97	39 is necessary for the determination of the deduction provided by
98	98	40 this section.
99	99	41 (h) In determining whether a certificate program is a high value
100	100	42 workforce certificate program, the commission shall consider at
101	101	2024 IN 1301—LS 6829/DI 125 3
102	102	1 least the following for each certificate program:
103	103	2 (1) Workforce demand and needs.
104	104	3 (2) Wage level data and information.
105	105	4 (3) Program content and completion data.
106	106	5 (4) Job placement data.
107	107	6 (5) The program's impact on public safety.
108	108	2024 IN 1301—LS 6829/DI 125