Introduced Version






HOUSE BILL No. 1158

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-33.

Synopsis: Income tax credit for textbook fees. Provides a refundable income tax credit for textbook expenses paid by a taxpayer whose household income does not exceed 350% of the federal income poverty level for dependents of the taxpayer who are enrolled in a public school or an accredited nonpublic school.

Effective: January 1, 2009 (retroactive).





VanDenburgh




    January 12, 2009, read first time and referred to Committee on Education.







Introduced

First Regular Session 116th General Assembly (2009)


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HOUSE BILL No. 1158



    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)IN1158.1.1. -->     SECTION 1. IC 6-3.1-33 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]:
    Chapter 33. Tax Credit for Elementary and Secondary Education Textbooks
    Sec. 1. As used in this chapter, "eligible dependent" means a dependent who is enrolled in any grade from kindergarten through grade 12 in a public school or an accredited nonpublic school.
    Sec. 2. As used in this chapter, "public school" has the meaning set forth in IC 20-18-2-15.
    Sec. 3. As used in this chapter, "qualifying taxpayer" means a taxpayer with a household income that does not exceed three hundred fifty percent (350%) of the federal income poverty level.
    Sec. 4. As used in this chapter, "textbook expense" means an expense that is:
        (1) incurred by a qualifying taxpayer and paid to a public school or an accredited nonpublic school for textbooks and

instructional materials for an eligible dependent;
        (2) paid on or before the deadline for the payment as determined by the public school or accredited nonpublic school; and
        (3) not reimbursed to the qualifying taxpayer.
    Sec. 5. Each taxable year, a qualifying taxpayer who incurs a textbook expense during the taxable year is entitled to a credit against adjusted gross income tax imposed on the qualifying taxpayer under IC 6-3 for the taxable year. The amount of the credit is as follows:
        (1) In the case of a qualifying taxpayer with a household income that does not exceed two hundred fifty percent (250%) of the federal poverty level, the amount of the credit is equal to the qualifying taxpayer's textbook expense.
        (2) In the case of a qualifying taxpayer with a household income that:
            (A) exceeds two hundred fifty percent (250%); and
            (B) does not exceed three hundred fifty percent (350%);
        of the federal poverty level, the amount of the credit is equal to fifty percent (50%) of the qualifying taxpayer's textbook expense.
    Sec. 6. If the amount of the credit provided by this chapter to a qualifying taxpayer for a taxable year exceeds the sum of the taxes imposed on the qualifying taxpayer under IC 6-3 for the taxable year after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter, the excess shall be returned to the qualifying taxpayer as a refund.

     Sec. 7. (a) A qualifying taxpayer claiming a credit under this chapter must claim the credit on the qualifying taxpayer's annual state tax return or returns in the manner prescribed by the department.
    (b) The qualifying taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this chapter and the determination of whether the credit was properly claimed.

    Sec. 8. The department shall adopt rules under IC 4-22-2 to carry out this chapter.

SOURCE: ; (09)IN1158.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)] IC 6-3.1-33, as added by this act, applies only to taxable years beginning after December 31, 2008.
SOURCE: ; (09)IN1158.1.3. -->     SECTION 3. An emergency is declared for this act.