Indiana 2025 Regular Session

Indiana House Bill HB1524 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. 1524
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-41.2.
7	7	Synopsis: Tax credit for contributions to qualified nonprofits. Provides
8	8	a state tax credit (credit) for contributions made to a qualified nonprofit
9	9	organization for taxable years beginning after December 31, 2025.
10	10	Provides that the amount allowable as a credit in a taxable year is equal
11	11	to the lesser of: (1) the total amount of the contributions made by the
12	12	taxpayer to one or more qualified nonprofit organizations; or (2) 50%
13	13	of the taxpayer's state tax liability. Provides that the maximum amount
14	14	of credits that may be awarded in a state fiscal year may not exceed
15	15	$1,000,000.
16	16	Effective: July 1, 2025.
17	17	Sweet
18	18	January 21, 2025, read first time and referred to Committee on Ways and Means.
19	19	2025 IN 1524—LS 7674/DI 134 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1524
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	taxation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 6-3.1-41.2 IS ADDED TO THE INDIANA CODE
35	35	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2025]:
37	37	4 Chapter 41.2. Qualified Nonprofit Donation Tax Credit
38	38	5 Sec. 1. This chapter applies only to taxable years beginning after
39	39	6 December 31, 2025.
40	40	7 Sec. 2. As used in this chapter, "credit" refers to a credit
41	41	8 granted under this chapter.
42	42	9 Sec. 3. As used in this chapter, "pass through entity" has the
43	43	10 meaning set forth in IC 6-3-1-35.
44	44	11 Sec. 4. As used in this chapter, "qualified nonprofit
45	45	12 organization" means an organization that is:
46	46	13 (1) exempt from federal income taxation under Section
47	47	14 501(c)(3) of the Internal Revenue Code; and
48	48	15 (2) organized and operated for any of the following:
49	49	16 (A) Recovery residential services.
50	50	17 (B) Foster placement services.
51	51	2025 IN 1524—LS 7674/DI 134 2
52	52	1 (C) Pregnancy resource services.
53	53	2 (D) Addiction recovery services.
54	54	3 Sec. 5. As used in this chapter, "state tax liability" means a
55	55	4 taxpayer's total tax liability that is incurred under:
56	56	5 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
57	57	6 (2) IC 6-5.5 (the financial institutions tax); and
58	58	7 (3) IC 27-1-18-2 (the insurance premiums tax);
59	59	8 as computed after the application of the credits that under
60	60	9 IC 6-3.1-1-2 are to be applied before the credit provided by this
61	61	10 chapter.
62	62	11 Sec. 6. As used in this chapter, "taxpayer" means an individual
63	63	12 or entity that has any state tax liability.
64	64	13 Sec. 7. Subject to the limitations provided by this chapter, at the
65	65	14 election of the taxpayer a credit is allowed against the taxpayer's
66	66	15 state tax liability for the taxable year in which the taxpayer makes
67	67	16 a contribution to a qualified nonprofit organization.
68	68	17 Sec. 8. The amount allowable as a credit under this chapter for
69	69	18 any taxable year is equal to the lesser of:
70	70	19 (1) the total amount of the contributions made by the taxpayer
71	71	20 to one (1) or more qualified nonprofit organizations; or
72	72	21 (2) fifty percent (50%) of the taxpayer's state tax liability.
73	73	22 Sec. 9. (a) A qualified nonprofit organization receiving a
74	74	23 contribution that will be used as the basis for a tax credit under
75	75	24 this chapter must provide to the department by August 1 of each
76	76	25 year the following information regarding the qualified nonprofit
77	77	26 organization's use of the contributions received under this chapter:
78	78	27 (1) The name of the qualified nonprofit organization.
79	79	28 (2) The total number and total dollar amount of contributions
80	80	29 received during the previous taxable year.
81	81	30 (3) A description of each use or purpose for which the
82	82	31 contributions were spent.
83	83	32 (4) A copy of the qualified nonprofit organization's annual
84	84	33 financial audit.
85	85	34 In addition, the qualified nonprofit organization shall make the
86	86	35 annual financial audit available to a member of the public upon
87	87	36 request. The information provided under this subsection is a public
88	88	37 record.
89	89	38 (b) The report must be certified under penalties of perjury by
90	90	39 the chief executive officer of the qualified nonprofit organization.
91	91	40 Sec. 10. (a) Subject to section 1 of this chapter, if the credit
92	92	41 provided by this chapter exceeds the taxpayer's state tax liability
93	93	42 for the taxable year for which the credit is first claimed, the excess
94	94	2025 IN 1524—LS 7674/DI 134 3
95	95	1 may be carried forward to succeeding taxable years and used as a
96	96	2 credit against the taxpayer's state tax liability during those taxable
97	97	3 years. Each time the credit is carried forward to a succeeding
98	98	4 taxable year, the credit is reduced by the amount that was used as
99	99	5 a credit during the immediately preceding taxable year.
100	100	6 (b) A taxpayer is not entitled to a carryback or refund of any
101	101	7 unused credit.
102	102	8 Sec. 11. If a pass through entity is entitled to a credit under this
103	103	9 chapter but does not have state tax liability against which the tax
104	104	10 credit may be applied, a shareholder, partner, or member of the
105	105	11 pass through entity is entitled to a tax credit equal to:
106	106	12 (1) the tax credit determined for the pass through entity for
107	107	13 the taxable year; multiplied by
108	108	14 (2) the percentage of the pass through entity's distributive
109	109	15 income to which the shareholder, partner, or member is
110	110	16 entitled.
111	111	17 Sec. 12. To apply a credit against the taxpayer's state tax
112	112	18 liability, a taxpayer must claim the credit on the taxpayer's annual
113	113	19 state tax return or returns in the manner prescribed by the
114	114	20 department. The taxpayer shall submit to the department the
115	115	21 information that the department determines is necessary for the
116	116	22 department to determine whether the taxpayer is eligible for the
117	117	23 credit.
118	118	24 Sec. 13. The total amount of tax credits awarded under this
119	119	25 chapter may not exceed one million dollars ($1,000,000) each state
120	120	26 fiscal year.
121	121	27 Sec. 14. The department, on a website used by the department
122	122	28 to provide information to the public, shall provide the following
123	123	29 information:
124	124	30 (1) The form the department prescribes for claiming the
125	125	31 credit provided by this chapter.
126	126	32 (2) A timeline for receiving the credit provided by this
127	127	33 chapter.
128	128	34 (3) The total amount of credits awarded under this chapter
129	129	35 during the current state fiscal year.
130	130	36 Sec. 15. A taxpayer claiming a credit for a contribution under
131	131	37 this chapter may not claim a credit for the same contribution
132	132	38 under any other law.
133	133	2025 IN 1524—LS 7674/DI 134