HOUSE BILL No. 1416
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-34.
Synopsis: Tax credit for family caregivers. Provides that if a taxpayer
has income of less than $50,000, the taxpayer is eligible for an income
tax credit for expenses incurred in providing care to an elderly family
member who: (1) has the same principal place of abode as the taxpayer;
(2) has income of less than $30,000; and (3) is not receiving long term
care services under certain programs. Specifies that the amount of the
credit is equal to 50% of the expenses incurred by the taxpayer in
providing care to such eligible family members during the taxable year.
Provides that the maximum credit amount is $500. Specifies that a
taxpayer is not entitled to a refund, carryback, or carryforward of any
Effective: January 1, 2014.
Crouch, Thompson, Cherry, Pryor
January 22, 2013, read first time and referred to Committee on Ways and Means.
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1416
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; (13)IN1416.1.1. -->
SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]:
Chapter 34. Tax Credit for In-Home Care Provided to An
Elderly Family Member
Sec. 1. (a) As used in this chapter, "eligible family member"
means an individual who:
(1) is at least sixty-five (65) years of age during a taxable year;
(A) a lineal ancestor or lineal descendant;
(B) a sibling;
(C) an aunt or uncle;
(D) a niece or nephew; or
(E) a cousin;
of a taxpayer;
(3) has the same principal place of abode as the taxpayer for
more than fifty percent (50%) of the taxable year;
(4) has federal adjusted gross income of less than thirty
thousand dollars ($30,000) for the taxable year; and
(5) does not receive long term care services:
(A) under the community and home options to institutional
care for the elderly and disabled program;
(B) under an aged and disabled Medicaid waiver;
(C) under the federal Social Services Block Grant;
(D) under Title III of the federal Older Americans Act;
(E) under the Community Integration and Habilitation
Medicaid waiver; or
(F) under the Family Supports Medicaid waiver;
during the taxable year.
(b) The term does not include the spouse of a taxpayer.
Sec. 2. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability incurred under IC 6-3-1 through
IC 6-3-7 (the adjusted gross income tax).
Sec. 3. As used in this chapter, "taxpayer" means an individual
who is a resident taxpayer for the taxable year. In the case of a
joint return, the term includes the individual and the individual's
Sec. 4. A taxpayer who:
(1) has federal adjusted gross income of less than fifty
thousand dollars ($50,000) for the taxable year; and
(2) without compensation, provides care to one (1) or more
eligible family members during the taxable year;
is eligible to receive a credit against the taxpayer's state tax
liability for the taxable year as provided in this chapter, in the
amount determined under section 5 of this chapter.
Sec. 5. (a) Subject to subsections (b) through (c), the total
amount of the credit that a taxpayer described in section 4 of this
chapter is eligible to receive for a taxable year is equal to the lesser
(1) five hundred dollars ($500);
(2) the result of:
(A) the amount of expenses incurred by the taxpayer in
providing care to eligible family members during the
taxable year (including expenses for training, supplies,
transportation related to the care of eligible family
members, and any home modifications or specialized
medical equipment necessary for the care of eligible family
members); multiplied by
(B) fifty percent (50%); or
(3) the taxpayer's state tax liability for the taxable year.
(b) Only one (1) taxpayer may claim a credit under this chapter
for expenses incurred in a taxable year to provide care for a
particular eligible family member. If more than one (1) taxpayer
incurs expenses in a taxable year to provide care for an eligible
family member, the credit may only be claimed by the taxpayer
that incurs the greatest amount of expenses in providing care in the
taxable year to that eligible family member.
(c) If a taxpayer resides in Indiana for less than the taxpayer's
entire taxable year, the total amount of the tax credit shall be
reduced to an amount that bears the same ratio to the total as the
taxpayer's income taxable in Indiana bears to the taxpayer's total
Sec. 6. A taxpayer is not entitled to a refund, carryback, or
carryforward of any credit amount under this chapter.
Sec. 7. To obtain a tax credit under this chapter, a taxpayer
must claim the tax 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 tax credit under this chapter.
Sec. 8. The department shall adopt rules under IC 4-22-2 as
necessary to carry out this chapter.
SOURCE: ; (13)IN1416.1.2. -->
SECTION 2. [EFFECTIVE JANUARY 1, 2014] (a) IC 6-3.1-34, as
added by this act, applies only to taxable years beginning after
December 31, 2013.
(b) This SECTION expires July 1, 2017.