Introduced Version






HOUSE BILL No. 1594

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-22 .

Synopsis: Tax credit for stay at home parents. Provides a $500 adjusted gross income tax credit for a stay at home parent.

Effective: July 1, 2001.





Murphy




    January 17, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1594



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-22; (01)IN1594.1.1. -->     SECTION 1. IC 6-3.1-22 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 22. Stay At Home Parent Tax Credit
    Sec. 1. This chapter creates the stay at home parent tax credit.
    Sec. 2. For purposes of this chapter, "child" means an individual:
        (1) who is less than thirteen (13) years of age; and
        (2) with respect to whom a parent is entitled to a deduction under Section 151(c) of the Internal Revenue Code.
    Sec. 3. For purposes of this chapter, "earned income" means the sum of the:
        (1) wages, salaries, tips, and other employee compensation; and
        (2) net earnings from self-employment (as computed under Section 32(c)(2) of the Internal Revenue Code);
of an individual taxpayer.
    Sec. 4. For purposes of this chapter, "parent" means the biological or adoptive parent or the stepparent of a child.
    Sec. 5. As used in this chapter, "stay at home parent" means a taxpayer who:
        (1) is a parent;
        (2) has no earned income; and
        (3) stays at home to provide for:
            (A) the care, health, safety, and supervision; and
            (B) the social, emotional, and educational growth;
        of the taxpayer's child or children;
for the entire taxable year.
    Sec. 6. A stay at home parent is entitled to a credit against:
        (1) the stay at home parent's adjusted gross income tax liability; or
        (2) the adjusted gross income tax liability of the stay at home parent and the stay at home parent's spouse, if the stay at home parent files a joint return;
for the taxable year in the amount of five hundred dollars ($500).
    Sec. 7. A stay at home parent who is married must file a joint return to be eligible to receive a credit under this chapter.