Introduced Version






HOUSE BILL No. 1025

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-33.

Synopsis: Child and dependent care tax credit. Provides a refundable income tax credit to individuals for certain household, child care, or dependent care expenses associated with an individual's gainful employment. Provides that the amount of the credit is 50% of the amount allowed for the federal child and dependent care credit. Provides that an individual whose federal adjusted gross income exceeds $45,000 is not eligible for the credit.

Effective: January 1, 2010.





Day




    January 7, 2009, read first time and referred to Committee on Small Business and Economic Development.







Introduced

First Regular Session 116th General Assembly (2009)


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 2008 Regular Session of the General Assembly.

HOUSE BILL No. 1025



    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 6-3.1-33; (09)IN1025.1.1. -->     SECTION 1. IC 6-3.1-33 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]:
     Chapter 33. Child and Dependent Care Tax Credit
    Sec. 1. As used in this chapter, "applicable percentage" has the meaning set forth in Section 21(a)(2) of the Internal Revenue Code.
    Sec. 2. As used in this chapter, "eligible employment-related expenses" means the amount of employment-related expenses (as defined in Section 21(b)(2) of the Internal Revenue Code) that remains after applying the dollar limitations of Section 21(c) and Section 21(d) of the Internal Revenue Code.
    Sec. 3. (a) Subject to subsection (b) and the special rules of Section 21(e) of the Internal Revenue Code, an individual may claim a credit under this chapter in each taxable year equal to the product of the following:
        (1) Fifty percent (50%).
        (2) The applicable percentage.
        (3) The eligible employment-related expenses paid by the individual during the taxable year.
    (b) An individual whose federal adjusted gross income (as defined in Section 62 of the Internal Revenue Code) exceeds forty-five thousand dollars ($45,000) for the taxable year is not eligible for the credit provided by this chapter.
    Sec. 4. If the credit amount provided by this chapter exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the department shall refund the excess to the taxpayer.

    Sec. 5. To obtain a credit under this chapter, a taxpayer must claim the credit in the manner prescribed by the department. The taxpayer must submit to the department all information that the department determines to be necessary for the calculation of the credit provided by this chapter.
SOURCE: ; (09)IN1025.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2010] IC 6-3.1-33, as added by this act, applies only to taxable years beginning after December 31, 2009.