Introduced Version
SENATE BILL No. 339
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-43.
Synopsis: Caregiver tax credit. Provides that a qualified taxpayer is
entitled to a credit against the qualified taxpayer's state income tax
liability in a taxable year equal to the lesser of: (1) the value of
qualified services that the qualified taxpayer performed in the
immediately preceding taxable year; or (2) $10,000 (or $5,000 in the
case of a married individual filing a separate return). Provides that
"qualified services" means services, as determined by the office of the
secretary of family and social services (FSSA), that a qualified taxpayer
performs in caring for an ill or aging qualified family member that the
qualified taxpayer otherwise would have compensated a third-party
caregiver to perform. Provides that the term does not include services
that would otherwise be required to be performed by a licensed
physician, a licensed nurse, or other medical professional. Requires the
FSSA to: (1) develop criteria that a service must satisfy to be
considered a qualified service; (2) derive a formula, using published
industry data and standards, to determine the value of the qualified
services performed by a qualified taxpayer during a taxable year; and
(3) adopt any other guidelines necessary to allow or disallow a credit.
Requires a qualified taxpayer to submit to the FSSA all relevant
information regarding the performance of qualified services necessary
for the FSSA to determine the value of the qualified services. Requires
the FSSA to notify a qualified taxpayer in writing the value of the
services that the qualified taxpayer performed for purposes of claiming
the credit.
Effective: July 1, 2025.
Young M
January 13, 2025, read first time and referred to Committee on Appropriations.
2025 IN 339—LS 7306/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
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SENATE BILL No. 339
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-3.1-43 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 43. Income Tax Credit for Family Caregivers
5 Sec. 1. This chapter applies to taxable years beginning after
6 December 31, 2025.
7 Sec. 2. As used in this chapter, "FSSA" means the office of the
8 secretary of family and social services.
9 Sec. 3. As used in this chapter, "qualified family member"
10 means a qualified taxpayer's spouse, child, grandchild, parent, or
11 sibling.
12 Sec. 4. (a) As used in this chapter, "qualified services" means
13 services, as determined by the FSSA, that a qualified taxpayer
14 performs in caring for an ill or aging qualified family member that
15 the qualified taxpayer otherwise would have compensated a third
16 party caregiver to perform.
17 (b) The term does not include services that would otherwise be
2025 IN 339—LS 7306/DI 134 2
1 required to be performed by a licensed physician, a licensed nurse,
2 or other medical professional.
3 Sec. 5. As used in this chapter, "qualified taxpayer" means an
4 individual filing a single return, or a married couple filing a joint
5 return, who:
6 (1) is an Indiana resident;
7 (2) performed qualified services during a taxable year; and
8 (3) has state income tax liability.
9 Sec. 6. As used in this chapter, "state income tax liability"
10 means a taxpayer's adjusted gross income tax liability under
11 IC 6-3.
12 Sec. 7. (a) Before January 1, 2026, the FSSA shall:
13 (1) develop criteria that a service must satisfy to be
14 considered a qualified service for purposes of this chapter;
15 (2) derive a formula, using published industry data and
16 standards, to determine the value of the qualified services
17 performed by a qualified taxpayer during a taxable year; and
18 (3) adopt any other guidelines necessary to allow or disallow
19 a credit under this section.
20 (b) The FSSA shall update the criteria, formula, and guidelines
21 described in subsection (a) as necessary.
22 Sec. 8. Not later than January 31 of the year following the
23 immediately preceding taxable year in which a qualified taxpayer
24 performed qualified services, the qualified taxpayer shall submit
25 to the FSSA all relevant information regarding the performance of
26 the qualified services performed during the immediately preceding
27 taxable year necessary for the FSSA to determine the value of the
28 qualified services.
29 Sec. 9. Not later than March 31 of the year following the
30 immediately preceding taxable year in which a qualified taxpayer
31 performed qualified services, the FSSA shall notify a qualified
32 taxpayer in writing the value of the services, as determined under
33 section 7(a)(2) of this chapter, that the qualified taxpayer
34 performed in the immediately preceding taxable year for purposes
35 of claiming the credit under this chapter.
36 Sec. 10. (a) Subject to subsection (b), a taxpayer is entitled to a
37 credit against the taxpayer's state income tax liability in a taxable
38 year equal to the lesser of the following:
39 (1) The value of the services, as determined by the FSSA
40 under section 7(a)(2) of this chapter, that the qualified
41 taxpayer performed in the immediately preceding taxable
42 year.
2025 IN 339—LS 7306/DI 134 3
1 (2) Ten thousand dollars ($10,000), or five thousand dollars
2 ($5,000) in the case of a married individual filing a separate
3 return.
4 (b) A credit awarded under this chapter may not exceed the
5 taxpayer's state income tax liability.
6 Sec. 11. To obtain a credit under this chapter, a taxpayer must
7 claim the credit in the manner prescribed by the department. The
8 taxpayer shall submit to the department proof of the taxpayer's
9 qualified expenses and all other information that the department
10 determines is necessary.
11 Sec. 12. A taxpayer is not entitled to any carryover, carryback,
12 or refund of any unused credit.
2025 IN 339—LS 7306/DI 134