HOUSE BILL No. 1143
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-34.
Synopsis: Child and dependent 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: July 1, 2012.
Day, Heuer, Crouch, Truitt
January 9, 2012, read first time and referred to Committee on Ways and Means.
Second Regular Session 117th General Assembly (2012)
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HOUSE BILL No. 1143
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 6-3.1-34; (12)IN1143.1.1. -->
SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]:
Chapter 34. Child and Dependent Care Tax Credit
Sec. 1. This chapter applies only to taxable years beginning after
December 31, 2012.
Sec. 2. As used in this chapter, "applicable percentage" has the
meaning set forth in Section 21(a)(2) of the Internal Revenue Code.
Sec. 3. 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
21(d) of the Internal Revenue Code.
Sec. 4. (a) Subject to subsection (b) and the special rules of
Section 21(e) of the Internal Revenue Code, an individual filing a
single return or a married couple filing a joint return 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 or married couple, as applicable, during the
(b) An individual filing a single return or a married couple filing
a joint return 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. 5. 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. 6. 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.