Indiana 2025 Regular Session

Indiana House Bill HB1544 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. 1544
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-35.6.
7	7	Synopsis: Tax credit for public school foundation. Provides a 25%
8	8	state tax credit for contributions made to a public school foundation for
9	9	taxable years beginning after December 31, 2025, and before January
10	10	1, 2028. Provides that the amount allowable as a credit in a taxable year
11	11	may not exceed: (1) $1,000 in the case of an individual filing a single
12	12	return or a corporation; or (2) $2,000 in the case of a married couple
13	13	filing a joint return. Provides that the maximum amount of credits that
14	14	may be awarded in a state fiscal year may not exceed $1,000,000.
15	15	Effective: July 1, 2025.
16	16	Heaton, Heine, Pfaff, Hamilton
17	17	January 21, 2025, read first time and referred to Committee on Ways and Means.
18	18	2025 IN 1544—LS 6683/DI 134 Introduced
19	19	First Regular Session of the 124th General Assembly (2025)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2024 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1544
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	taxation.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 6-3.1-35.6 IS ADDED TO THE INDIANA CODE
34	34	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2025]:
36	36	4 Chapter 35.6. Public School Foundation Contribution Tax
37	37	5 Credit
38	38	6 Sec. 1. This chapter applies only to taxable years beginning after
39	39	7 December 31, 2025, and before January 1, 2028.
40	40	8 Sec. 2. As used in this chapter, "credit" refers to a credit
41	41	9 granted under this chapter.
42	42	10 Sec. 3. As used in this chapter, "pass through entity" has the
43	43	11 meaning set forth in IC 6-3-1-35.
44	44	12 Sec. 4. As used in this chapter, "public elementary school or
45	45	13 public secondary school" means any Indiana public school or
46	46	14 school corporation, including a charter school (as defined in
47	47	15 IC 20-24-1-4), that offers any combination of grades from
48	48	16 kindergarten through grade 12.
49	49	17 Sec. 5. As used in this chapter, "public school foundation"
50	50	2025 IN 1544—LS 6683/DI 134 2
51	51	1 means a nonprofit organization that is:
52	52	2 (1) exempt from federal income taxation under Section
53	53	3 501(c)(3) of the Internal Revenue Code; and
54	54	4 (2) organized and operated solely for the benefit of an Indiana
55	55	5 public elementary school or public secondary school.
56	56	6 The term includes a public school foundation established under
57	57	7 IC 20-26-5-22.5.
58	58	8 Sec. 6. As used in this chapter, "state tax liability" means a
59	59	9 taxpayer's total tax liability that is incurred under:
60	60	10 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
61	61	11 (2) IC 6-5.5 (the financial institutions tax); and
62	62	12 (3) IC 27-1-18-2 (the insurance premiums tax);
63	63	13 as computed after the application of the credits that under
64	64	14 IC 6-3.1-1-2 are to be applied before the credit provided by this
65	65	15 chapter.
66	66	16 Sec. 7. As used in this chapter, "taxpayer" means an individual
67	67	17 or entity that has any state tax liability.
68	68	18 Sec. 8. (a) At the election of the taxpayer, a credit is allowed
69	69	19 against the taxpayer's state tax liability for the taxable year in
70	70	20 which the taxpayer makes a contribution to a public school
71	71	21 foundation. Subject to the limitations provided by this chapter, the
72	72	22 amount of the credit for a taxable year is equal to twenty-five
73	73	23 percent (25%) of the total amount of the contributions made by the
74	74	24 taxpayer.
75	75	25 (b) The amount allowable as a credit under this section for any
76	76	26 taxable year may not exceed:
77	77	27 (1) one thousand dollars ($1,000) in the case of:
78	78	28 (A) an individual filing a single return; or
79	79	29 (B) a corporation; or
80	80	30 (2) two thousand dollars ($2,000) in the case of a married
81	81	31 couple filing a joint return.
82	82	32 Sec. 9. (a) A public school foundation receiving a contribution
83	83	33 that will be used as the basis for a tax credit under this chapter
84	84	34 must provide to the department by August 1 of each year the
85	85	35 following information regarding the public school foundation's use
86	86	36 of the contributions received under this chapter:
87	87	37 (1) The name of the public school foundation.
88	88	38 (2) The total number and total dollar amount of contributions
89	89	39 received during the previous school year.
90	90	40 (3) A description of each use or purpose for which the
91	91	41 contributions were spent.
92	92	42 (4) A copy of the public school foundation's annual financial
93	93	2025 IN 1544—LS 6683/DI 134 3
94	94	1 audit.
95	95	2 In addition, the public school foundation shall make the annual
96	96	3 financial audit available to a member of the public upon request.
97	97	4 The information provided under this subsection is a public record.
98	98	5 (b) The report must be certified under penalties of perjury by
99	99	6 the chief executive officer of the public school foundation.
100	100	7 Sec. 10. (a) Subject to section 1 of this chapter, if the credit
101	101	8 provided by this chapter exceeds the taxpayer's state tax liability
102	102	9 for the taxable year for which the credit is first claimed, the excess
103	103	10 may be carried forward to succeeding taxable years and used as a
104	104	11 credit against the taxpayer's state tax liability during those taxable
105	105	12 years. Each time the credit is carried forward to a succeeding
106	106	13 taxable year, the credit is reduced by the amount that was used as
107	107	14 a credit during the immediately preceding taxable year.
108	108	15 (b) A taxpayer is not entitled to a carryback or refund of any
109	109	16 unused credit.
110	110	17 Sec. 11. If a pass through entity is entitled to a credit under this
111	111	18 chapter but does not have state tax liability against which the tax
112	112	19 credit may be applied, a shareholder, partner, or member of the
113	113	20 pass through entity is entitled to a tax credit equal to:
114	114	21 (1) the tax credit determined for the pass through entity for
115	115	22 the taxable year; multiplied by
116	116	23 (2) the percentage of the pass through entity's distributive
117	117	24 income to which the shareholder, partner, or member is
118	118	25 entitled.
119	119	26 Sec. 12. To apply a credit against the taxpayer's state tax
120	120	27 liability, a taxpayer must claim the credit on the taxpayer's annual
121	121	28 state tax return or returns in the manner prescribed by the
122	122	29 department. The taxpayer shall submit to the department the
123	123	30 information that the department determines is necessary for the
124	124	31 department to determine whether the taxpayer is eligible for the
125	125	32 credit.
126	126	33 Sec. 13. The total amount of tax credits awarded under this
127	127	34 chapter may not exceed one million dollars ($1,000,000) each state
128	128	35 fiscal year.
129	129	36 Sec. 14. The department, on a website used by the department
130	130	37 to provide information to the public, shall provide the following
131	131	38 information:
132	132	39 (1) The form the department prescribes for claiming the
133	133	40 credit provided by this chapter.
134	134	41 (2) A timeline for receiving the credit provided by this
135	135	42 chapter.
136	136	2025 IN 1544—LS 6683/DI 134 4
137	137	1 (3) The total amount of credits awarded under this chapter
138	138	2 during the current state fiscal year.
139	139	3 SECTION 2. [EFFECTIVE JULY 1, 2025] (a) Notwithstanding
140	140	4 the July 1, 2025, effective date for IC 6-3.1-35.6, as added by this
141	141	5 act, the credit provided by IC 6-3.1-35.6, as added by this act, may
142	142	6 be claimed only for taxable years beginning after December 31,
143	143	7 2025, and before January 1, 2028.
144	144	8 (b) This SECTION expires June 30, 2028.
145	145	2025 IN 1544—LS 6683/DI 134