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).
January 12, 2009, read first time and referred to Committee on Education.
A BILL FOR AN ACT to amend the Indiana Code concerning
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.