Indiana 2025 Regular Session

Indiana Senate Bill SB0154 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 154
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.
7	7	Synopsis: Various tax matters. Increases the maximum amount of the
8	8	income tax credit for an individual employed as a teacher for amounts
9	9	expended for classroom supplies from $100 to $500 per taxable year.
10	10	Adds students who attend public schools for purposes of eligibility for
11	11	the unreimbursed education expenditure tax deduction. Provides that
12	12	the amount of the deduction is the lesser of: (1) $1,000 multiplied by
13	13	the number of the taxpayer's dependent children for whom the taxpayer
14	14	made education expenditures in the taxable year; or (2) the total
15	15	amount of actual unreimbursed education expenditures that the
16	16	taxpayer incurs for each of the taxpayer's dependent children in the
17	17	taxable year. (Under current law, the amount is $1,000 multiplied by
18	18	the number of the taxpayer's dependent children for whom the taxpayer
19	19	made education expenditures in the taxable year.) Defines "public
20	20	school".
21	21	Effective: January 1, 2025 (retroactive).
22	22	Randolph Lonnie M
23	23	January 8, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
24	24	2025 IN 154—LS 6603/DI 120 Introduced
25	25	First Regular Session of the 124th General Assembly (2025)
26	26	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
27	27	Constitution) is being amended, the text of the existing provision will appear in this style type,
28	28	additions will appear in this style type, and deletions will appear in this style type.
29	29	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
30	30	provision adopted), the text of the new provision will appear in this style type. Also, the
31	31	word NEW will appear in that style type in the introductory clause of each SECTION that adds
32	32	a new provision to the Indiana Code or the Indiana Constitution.
33	33	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
34	34	between statutes enacted by the 2024 Regular Session of the General Assembly.
35	35	SENATE BILL No. 154
36	36	A BILL FOR AN ACT to amend the Indiana Code concerning
37	37	taxation.
38	38	Be it enacted by the General Assembly of the State of Indiana:
39	39	1 SECTION 1. IC 6-3-2-22, AS AMENDED BY P.L.92-2020,
40	40	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41	41	3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) The following
42	42	4 definitions apply throughout this section:
43	43	5 (1) "Dependent child" means an individual who:
44	44	6 (A) is eligible to receive a free elementary or high school
45	45	7 education in an Indiana school corporation;
46	46	8 (B) qualifies as a dependent (as defined in Section 152 of the
47	47	9 Internal Revenue Code) of the taxpayer; and
48	48	10 (C) is the natural or adopted child of the taxpayer or, if custody
49	49	11 of the child has been awarded in a court proceeding to
50	50	12 someone other than the mother or father, the court appointed
51	51	13 guardian or custodian of the child.
52	52	14 If the parents of a child are divorced, the term refers to the parent
53	53	15 who is eligible to take the exemption for the child under Section
54	54	16 151 of the Internal Revenue Code.
55	55	17 (2) "Education expenditure" refers to any expenditures made in
56	56	2025 IN 154—LS 6603/DI 120 2
57	57	1 connection with enrollment, attendance, or participation of the
58	58	2 taxpayer's dependent child in a public school or private
59	59	3 elementary or high school education program. The term includes
60	60	4 tuition, fees, computer software, textbooks, workbooks, curricula,
61	61	5 school supplies, (other than personal computers), and other
62	62	6 written materials used primarily for academic instruction or for
63	63	7 academic tutoring, or both.
64	64	8 (3) "Private elementary or high school education program" means
65	65	9 attendance at:
66	66	10 (A) a nonpublic school (as defined in IC 20-18-2-12); or
67	67	11 (B) a state accredited nonpublic school (as defined in
68	68	12 IC 20-18-2-18.7);
69	69	13 in Indiana that satisfies a child's obligation under IC 20-33-2 for
70	70	14 compulsory attendance at a school. The term does not include the
71	71	15 delivery of instructional service in a home setting to a dependent
72	72	16 child who is enrolled in a school corporation or a charter school.
73	73	17 (4) "Public school" means attendance at:
74	74	18 (A) a public school (as defined in IC 20-18-2-15); or
75	75	19 (B) a charter school (as defined in IC 20-24-1-4);
76	76	20 in Indiana that satisfies a child's obligation under IC 20-33-2
77	77	21 for compulsory attendance at a school.
78	78	22 (b) This section applies to taxable years beginning after December
79	79	23 31, 2010.
80	80	24 (c) A taxpayer who makes an unreimbursed education expenditure
81	81	25 during the taxpayer's taxable year is entitled to a deduction against the
82	82	26 taxpayer's adjusted gross income in the taxable year.
83	83	27 (d) The amount of the deduction is equal to the lesser of the
84	84	28 following:
85	85	29 (1) The product of:
86	86	30 (A) one thousand dollars ($1,000); multiplied by
87	87	31 (2) (B) the number of the taxpayer's dependent children for
88	88	32 whom the taxpayer made education expenditures in the taxable
89	89	33 year.
90	90	34 (2) The total amount of actual unreimbursed education
91	91	35 expenditures that the taxpayer incurs for each of the
92	92	36 taxpayer's dependent children in the taxable year.
93	93	37 A husband and wife are entitled to only one (1) deduction under this
94	94	38 section.
95	95	39 (e) To receive the deduction provided by this section, a taxpayer
96	96	40 must claim the deduction on the taxpayer's annual state tax return or
97	97	41 returns in the manner prescribed by the department.
98	98	42 SECTION 2. IC 6-3-3-14.5, AS ADDED BY P.L.213-2015,
99	99	2025 IN 154—LS 6603/DI 120 3
100	100	1 SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
101	101	2 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14.5. (a) As used in this
102	102	3 section, "classroom supplies" means any items that qualify for the
103	103	4 educator expense deduction under Section 62(a)(2)(D) of the Internal
104	104	5 Revenue Code. (as effective December 31, 2013).
105	105	6 (b) Each taxable year, an individual employed as a teacher (as
106	106	7 defined in IC 20-18-2-22(a)) is entitled to a credit against the
107	107	8 individual's adjusted gross income tax liability for amounts expended
108	108	9 during the taxable year for classroom supplies. The amount of the
109	109	10 credit is the lesser of:
110	110	11 (1) one five hundred dollars ($100); ($500); or
111	111	12 (2) the total amount expended for classroom supplies during a
112	112	13 taxable year.
113	113	14 (c) The credit provided by this section may not exceed the amount
114	114	15 of the individual's adjusted gross income tax liability for the taxable
115	115	16 year, reduced by the sum of all credits for the taxable year that are
116	116	17 applied before the application of the credit provided by this section.
117	117	18 The amount of any unused credit under this section for a taxable year
118	118	19 may not be carried forward to a succeeding taxable year, carried back
119	119	20 to a preceding taxable year, or refunded.
120	120	21 SECTION 3. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
121	121	22 (a) IC 6-3-2-22 and IC 6-3-3-14.5, both as amended by this act,
122	122	23 apply to taxable years beginning after December 31, 2024.
123	123	24 (b) This SECTION expires June 30, 2028.
124	124	25 SECTION 4. An emergency is declared for this act.
125	125	2025 IN 154—LS 6603/DI 120