Indiana 2025 Regular Session

Indiana House Bill HB1584 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. 1584
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-3.
7	7	Synopsis: Child care tax credits. Provides a child and dependent care
8	8	refundable tax credit against an individual's Indiana adjusted gross
9	9	income tax for employment related child and dependent care expenses
10	10	based on the taxpayer's Indiana adjusted gross income and a percentage
11	11	of the federal child and dependent care tax credit the taxpayer claimed
12	12	for the taxable year for federal income tax purposes. Provides a
13	13	refundable tax credit against an individual's Indiana adjusted gross
14	14	income tax for employment at a child care facility with a rating in the
15	15	paths to QUALITY program.
16	16	Effective: January 1, 2025 (retroactive).
17	17	Hamilton
18	18	January 21, 2025, read first time and referred to Committee on Ways and Means.
19	19	2025 IN 1584—LS 6374/DI 125 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. 1584
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 6-3-3-11 IS ADDED TO THE INDIANA CODE
35	35	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) Each taxable
37	37	4 year, an individual who is eligible to claim the federal child and
38	38	5 dependent care tax credit under Section 21 of the Internal Revenue
39	39	6 Code is entitled to a credit against the individual's, and the
40	40	7 individual's spouse's in the case of a joint return, adjusted gross
41	41	8 income tax liability equal to:
42	42	9 (1) the allowable amount of the federal child and dependent
43	43	10 care tax credit that the taxpayer claimed on the taxpayer's
44	44	11 federal income tax return for the taxable year under Section
45	45	12 21 of the Internal Revenue Code; multiplied by
46	46	13 (2) the following percentage:
47	47	14 (A) If the adjusted gross income of the individual, and the
48	48	15 individual's spouse in the case of a joint return, is forty
49	49	16 thousand dollars ($40,000) or less, one hundred percent
50	50	17 (100%).
51	51	2025 IN 1584—LS 6374/DI 125 2
52	52	1 (B) If the adjusted gross income of the individual, and the
53	53	2 individual's spouse in the case of a joint return, is greater
54	54	3 than forty thousand dollars ($40,000) and not more than
55	55	4 sixty thousand dollars ($60,000), seventy-five percent
56	56	5 (75%).
57	57	6 (C) If the adjusted gross income of the individual, and the
58	58	7 individual's spouse in the case of a joint return, is greater
59	59	8 than sixty thousand dollars ($60,000) and not more than
60	60	9 seventy-five thousand dollars ($75,000), fifty percent
61	61	10 (50%).
62	62	11 If the adjusted gross income of the individual, and the individual's
63	63	12 spouse in the case of a joint return, is greater than seventy-five
64	64	13 thousand dollars ($75,000), the individual is not entitled to a credit
65	65	14 against the individual's adjusted gross income tax liability.
66	66	15 (b) If the credit provided by this section exceeds the amount of
67	67	16 the individual's adjusted gross income tax liability for the taxable
68	68	17 year, reduced by the sum of all credits for the taxable year that are
69	69	18 applied before the application of the credit provided by this
70	70	19 section, the excess shall be refunded to the individual.
71	71	20 SECTION 2. IC 6-3-3-16 IS ADDED TO THE INDIANA CODE
72	72	21 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
73	73	22 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 16. (a) As used in this
74	74	23 section, "paths to QUALITY program" refers to the paths to
75	75	24 QUALITY program established by IC 12-17.2-2-14.2.
76	76	25 (b) Each taxable year, an individual employed by a child care
77	77	26 facility that participates in the paths to QUALITY program is
78	78	27 entitled to a credit against the individual's adjusted gross income
79	79	28 tax liability in an amount determined in accordance with the
80	80	29 following:
81	81	30 (1) For an individual employed as a director or staff at a child
82	82	31 care facility with a Level 4 paths to QUALITY program
83	83	32 rating, three thousand dollars ($3,000).
84	84	33 (2) For an individual employed as a director or staff at a child
85	85	34 care facility with a Level 3 paths to QUALITY program
86	86	35 rating, two thousand five hundred dollars ($2,500).
87	87	36 (3) For an individual employed as a director or staff at a child
88	88	37 care facility with a Level 2 paths to QUALITY program
89	89	38 rating, two thousand dollars ($2,000).
90	90	39 (4) For an individual employed as a director or staff at a child
91	91	40 care facility with a Level 1 paths to QUALITY program
92	92	41 rating, one thousand five hundred dollars ($1,500).
93	93	42 (c) If the credit provided by this section exceeds the amount of
94	94	2025 IN 1584—LS 6374/DI 125 3
95	95	1 the individual's adjusted gross income tax liability for the taxable
96	96	2 year, reduced by the sum of all credits for the taxable year that are
97	97	3 applied before the application of the credit provided by this
98	98	4 section, the excess shall be refunded to the individual.
99	99	5 SECTION 3. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
100	100	6 (a) IC 6-3-3-11 and IC 6-3-3-16, both as added by this act, apply to
101	101	7 taxable years beginning after December 31, 2024.
102	102	8 (b) This SECTION expires June 30, 2028.
103	103	9 SECTION 4. An emergency is declared for this act.
104	104	2025 IN 1584—LS 6374/DI 125