Indiana 2025 Regular Session

Indiana Senate Bill SB0339 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. 339
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-43.
7	7	Synopsis: Caregiver tax credit. Provides that a qualified taxpayer is
8	8	entitled to a credit against the qualified taxpayer's state income tax
9	9	liability in a taxable year equal to the lesser of: (1) the value of
10	10	qualified services that the qualified taxpayer performed in the
11	11	immediately preceding taxable year; or (2) $10,000 (or $5,000 in the
12	12	case of a married individual filing a separate return). Provides that
13	13	"qualified services" means services, as determined by the office of the
14	14	secretary of family and social services (FSSA), that a qualified taxpayer
15	15	performs in caring for an ill or aging qualified family member that the
16	16	qualified taxpayer otherwise would have compensated a third-party
17	17	caregiver to perform. Provides that the term does not include services
18	18	that would otherwise be required to be performed by a licensed
19	19	physician, a licensed nurse, or other medical professional. Requires the
20	20	FSSA to: (1) develop criteria that a service must satisfy to be
21	21	considered a qualified service; (2) derive a formula, using published
22	22	industry data and standards, to determine the value of the qualified
23	23	services performed by a qualified taxpayer during a taxable year; and
24	24	(3) adopt any other guidelines necessary to allow or disallow a credit.
25	25	Requires a qualified taxpayer to submit to the FSSA all relevant
26	26	information regarding the performance of qualified services necessary
27	27	for the FSSA to determine the value of the qualified services. Requires
28	28	the FSSA to notify a qualified taxpayer in writing the value of the
29	29	services that the qualified taxpayer performed for purposes of claiming
30	30	the credit.
31	31	Effective: July 1, 2025.
32	32	Young M
33	33	January 13, 2025, read first time and referred to Committee on Appropriations.
34	34	2025 IN 339—LS 7306/DI 134 Introduced
35	35	First Regular Session of the 124th General Assembly (2025)
36	36	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
37	37	Constitution) is being amended, the text of the existing provision will appear in this style type,
38	38	additions will appear in this style type, and deletions will appear in this style type.
39	39	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
40	40	provision adopted), the text of the new provision will appear in this style type. Also, the
41	41	word NEW will appear in that style type in the introductory clause of each SECTION that adds
42	42	a new provision to the Indiana Code or the Indiana Constitution.
43	43	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
44	44	between statutes enacted by the 2024 Regular Session of the General Assembly.
45	45	SENATE BILL No. 339
46	46	A BILL FOR AN ACT to amend the Indiana Code concerning
47	47	taxation.
48	48	Be it enacted by the General Assembly of the State of Indiana:
49	49	1 SECTION 1. IC 6-3.1-43 IS ADDED TO THE INDIANA CODE
50	50	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
51	51	3 JULY 1, 2025]:
52	52	4 Chapter 43. Income Tax Credit for Family Caregivers
53	53	5 Sec. 1. This chapter applies to taxable years beginning after
54	54	6 December 31, 2025.
55	55	7 Sec. 2. As used in this chapter, "FSSA" means the office of the
56	56	8 secretary of family and social services.
57	57	9 Sec. 3. As used in this chapter, "qualified family member"
58	58	10 means a qualified taxpayer's spouse, child, grandchild, parent, or
59	59	11 sibling.
60	60	12 Sec. 4. (a) As used in this chapter, "qualified services" means
61	61	13 services, as determined by the FSSA, that a qualified taxpayer
62	62	14 performs in caring for an ill or aging qualified family member that
63	63	15 the qualified taxpayer otherwise would have compensated a third
64	64	16 party caregiver to perform.
65	65	17 (b) The term does not include services that would otherwise be
66	66	2025 IN 339—LS 7306/DI 134 2
67	67	1 required to be performed by a licensed physician, a licensed nurse,
68	68	2 or other medical professional.
69	69	3 Sec. 5. As used in this chapter, "qualified taxpayer" means an
70	70	4 individual filing a single return, or a married couple filing a joint
71	71	5 return, who:
72	72	6 (1) is an Indiana resident;
73	73	7 (2) performed qualified services during a taxable year; and
74	74	8 (3) has state income tax liability.
75	75	9 Sec. 6. As used in this chapter, "state income tax liability"
76	76	10 means a taxpayer's adjusted gross income tax liability under
77	77	11 IC 6-3.
78	78	12 Sec. 7. (a) Before January 1, 2026, the FSSA shall:
79	79	13 (1) develop criteria that a service must satisfy to be
80	80	14 considered a qualified service for purposes of this chapter;
81	81	15 (2) derive a formula, using published industry data and
82	82	16 standards, to determine the value of the qualified services
83	83	17 performed by a qualified taxpayer during a taxable year; and
84	84	18 (3) adopt any other guidelines necessary to allow or disallow
85	85	19 a credit under this section.
86	86	20 (b) The FSSA shall update the criteria, formula, and guidelines
87	87	21 described in subsection (a) as necessary.
88	88	22 Sec. 8. Not later than January 31 of the year following the
89	89	23 immediately preceding taxable year in which a qualified taxpayer
90	90	24 performed qualified services, the qualified taxpayer shall submit
91	91	25 to the FSSA all relevant information regarding the performance of
92	92	26 the qualified services performed during the immediately preceding
93	93	27 taxable year necessary for the FSSA to determine the value of the
94	94	28 qualified services.
95	95	29 Sec. 9. Not later than March 31 of the year following the
96	96	30 immediately preceding taxable year in which a qualified taxpayer
97	97	31 performed qualified services, the FSSA shall notify a qualified
98	98	32 taxpayer in writing the value of the services, as determined under
99	99	33 section 7(a)(2) of this chapter, that the qualified taxpayer
100	100	34 performed in the immediately preceding taxable year for purposes
101	101	35 of claiming the credit under this chapter.
102	102	36 Sec. 10. (a) Subject to subsection (b), a taxpayer is entitled to a
103	103	37 credit against the taxpayer's state income tax liability in a taxable
104	104	38 year equal to the lesser of the following:
105	105	39 (1) The value of the services, as determined by the FSSA
106	106	40 under section 7(a)(2) of this chapter, that the qualified
107	107	41 taxpayer performed in the immediately preceding taxable
108	108	42 year.
109	109	2025 IN 339—LS 7306/DI 134 3
110	110	1 (2) Ten thousand dollars ($10,000), or five thousand dollars
111	111	2 ($5,000) in the case of a married individual filing a separate
112	112	3 return.
113	113	4 (b) A credit awarded under this chapter may not exceed the
114	114	5 taxpayer's state income tax liability.
115	115	6 Sec. 11. To obtain a credit under this chapter, a taxpayer must
116	116	7 claim the credit in the manner prescribed by the department. The
117	117	8 taxpayer shall submit to the department proof of the taxpayer's
118	118	9 qualified expenses and all other information that the department
119	119	10 determines is necessary.
120	120	11 Sec. 12. A taxpayer is not entitled to any carryover, carryback,
121	121	12 or refund of any unused credit.
122	122	2025 IN 339—LS 7306/DI 134