Indiana House Bill HB1533

Indiana 2023 Regular Session

• Introduced: 1/19/23
• Refer: 1/19/23

Caption

Individual tax deductions and credits.

Impact

If enacted, HB1533 will significantly impact state tax laws by altering how families can deduct educational expenses related to their children. The increase to $1,500 per dependent child highlights a commitment to making private educational resources more accessible. Furthermore, by creating tax credits tied to contributions to public school foundations, the bill encourages community investment in education, promoting local support through state incentivization. This shift could alter the financial landscape for schools and families seeking quality educational opportunities outside public institutions.

Summary

House Bill 1533 aims to amend existing tax policy within the Indiana Code concerning taxation, particularly in relation to individual tax deductions and credits. The bill increases the amount deductible per dependent child for unreimbursed education expenditures from $1,000 to $1,500. This amendment is designed to support families with educational costs incurred in private schooling. Additionally, the bill repeals an existing tax credit for contributions made to ABLE accounts and introduces two new tax credits to incentivize contributions to public school foundations, potentially enhancing financial support for local educational initiatives.

Contention

However, the bill does raise points of contention among stakeholders. Opponents may argue that the repeal of the ABLE account credit could disadvantage families with dependents requiring special needs education, as these accounts were crucial for assisting families in saving for disability-related expenses. Additionally, while the support for public school foundations is largely seen as positive, there may be concerns over equitable funding distribution, ensuring that all schools, especially those in lower-income areas, can benefit adequately from the proposed tax credits.