HB1378

Indiana HB1378 provides tax credits for child care expenditures and federal child care tax credits.

Indiana HB1378 amends the Indiana Code to introduce tax credits for child care expenditures and federal child care tax credits. It defines "qualified child care expenditure" as costs for operating a child care facility for employees or under contract. The bill allows a credit against Indiana adjusted gross income tax equal to 20% of the federal child and dependent care tax credit claimed. If the credit exceeds the tax liability, the excess is refunded. The provisions apply to taxable years beginning after December 31, 2025, and the act expires June 30, 2028.