Indiana HB1138 introduces a child care tax credit for eligible taxpayers based on their federal child and dependent care tax credit.

Indiana HB1138 amends the Indiana Code to provide a child and dependent care refundable tax credit against an individual's Indiana adjusted gross income tax for employment-related child and dependent care expenses. The credit is based on the taxpayer's Indiana adjusted gross income and a percentage of the federal child and dependent care tax credit claimed for the taxable year. The credit phases out based on income levels, offering 100% for incomes up to $40,000, 75% for incomes between $40,000 and $60,000, 50% for incomes between $60,000 and $75,000, and no credit for incomes over $75,000.

Indiana HB1138 introduces a child care tax credit for eligible taxpayers based on their federal child and dependent care tax credit.

Indiana HB1138 amends the Indiana Code to provide a child and dependent care refundable tax credit against an individual's Indiana adjusted gross income tax for employment-related child and dependent care expenses. The credit is based on the taxpayer's Indiana adjusted gross income and a percentage of the federal child and dependent care tax credit claimed for the taxable year. The credit phases out based on income levels, offering 100% for incomes up to $40,000, 75% for incomes between $40,000 and $60,000, 50% for incomes between $60,000 and $75,000, and no credit for incomes over $75,000.