SENATE BILL No. 38
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-3-11.
Synopsis: Income tax credit for contributions to education savings
plans. Allows an adjusted gross income tax credit to individuals and
married couples for contributions to an education savings plan.
Provides that the credit is equal to 20% of the contribution. Provides
that the credit allowed for a particular contribution may not exceed
$1,000. Provides that the aggregate amount of credits claimed by a
taxpayer in a particular year may not exceed the taxpayer's adjusted
gross income tax liability for that year.
Effective: January 1, 2007.
January 9, 2006, read first time and referred to Committee on Tax and Fiscal Policy.
Second Regular Session 114th General Assembly (2006)
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SENATE BILL No. 38
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3-3-11; (06)IN0038.1.1. -->
SECTION 1. IC 6-3-3-11 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]: Sec. 11. (a) As used in this section, "education
savings plan" means:
(1) a trust program; or
(2) any other program;
established in any state that qualifies as a qualified state tuition
program under Section 529 of the Internal Revenue Code.
(b) As used in this section, "taxpayer" means:
(1) an individual filing a single return; or
(2) a married couple filing a joint return.
(c) Subject to the applicable limits in this section, a taxpayer is
entitled to a credit against the taxpayer's adjusted gross income tax
imposed by IC 6-3-1 through IC 6-3-7 for a taxable year equal to
twenty percent (20%) of the amount of each contribution made by
the taxpayer to an education savings plan during the taxable year.
(d) The amount of the credit under this section for a particular
contribution may not exceed one thousand dollars ($1,000).
(e) The aggregate amount of credits allowed by this section to a
taxpayer in a particular taxable year may not exceed the amount
of the taxpayer's adjusted gross income tax imposed by IC 6-3-1
through IC 6-3-7 for the taxable year, reduced by the sum of all
credits (as determined without regard to this section) allowed by
IC 6-3-1 through IC 6-3-7.
(f) A taxpayer is not entitled to a carryback, carryover, or
refund of an unused credit.
(g) A taxpayer may not sell, assign, convey, or otherwise
transfer the tax credit provided by this section.
(h) To receive the credit provided by this section, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department. The taxpayer
shall submit to the department all information that the department
determines is necessary for the calculation of the credit provided
by this section.
SOURCE: ; (06)IN0038.1.2. -->
SECTION 2. [EFFECTIVE JANUARY 1, 2007] IC 6-3-3-11, as
added by this act, applies to taxable years beginning after
December 31, 2006.