Introduced Version






SENATE BILL No. 38

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3-3-11.

Synopsis: Income tax credit for contributions to education savings plans. Allows an adjusted gross income tax credit to individuals and married couples for contributions to an education savings plan. Provides that the credit is equal to 20% of the contribution. Provides that the credit allowed for a particular contribution may not exceed $1,000. Provides that the aggregate amount of credits claimed by a taxpayer in a particular year may not exceed the taxpayer's adjusted gross income tax liability for that year.

Effective: January 1, 2007.





Kenley




    January 9, 2006, read first time and referred to Committee on Tax and Fiscal Policy.







Introduced

Second Regular Session 114th General Assembly (2006)


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.
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SENATE BILL No. 38



    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 6-3-3-11; (06)IN0038.1.1. -->     SECTION 1. IC 6-3-3-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 11. (a) As used in this section, "education savings plan" means:
        (1) a trust program; or
        (2) any other program;
established in any state that qualifies as a qualified state tuition program under Section 529 of the Internal Revenue Code.
    (b) As used in this section, "taxpayer" means:
        (1) an individual filing a single return; or
        (2) a married couple filing a joint return.
    (c) Subject to the applicable limits in this section, a taxpayer is entitled to a credit against the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable year equal to twenty percent (20%) of the amount of each contribution made by the taxpayer to an education savings plan during the taxable year.
    (d) The amount of the credit under this section for a particular

contribution may not exceed one thousand dollars ($1,000).
    (e) The aggregate amount of credits allowed by this section to a taxpayer in a particular taxable year may not exceed the amount of the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the taxable year, reduced by the sum of all credits (as determined without regard to this section) allowed by IC 6-3-1 through IC 6-3-7.
    (f) A taxpayer is not entitled to a carryback, carryover, or refund of an unused credit.
    (g) A taxpayer may not sell, assign, convey, or otherwise transfer the tax credit provided by this section.
    (h) To receive the credit provided by this section, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this section.

SOURCE: ; (06)IN0038.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2007] IC 6-3-3-11, as added by this act, applies to taxable years beginning after December 31, 2006.