Bill > SB0154

This bill makes two key changes to Indiana's tax code to benefit educators and parents with school-age children. First, it increases the maximum income tax credit for teachers from $100 to $500 per taxable year for classroom supplies, which are defined as items that qualify for the federal educator expense deduction. Second, the bill expands the unreimbursed education expenditure tax deduction to include students who attend public schools (defined as traditional public schools and charter schools), in addition to students in private schools. The deduction amount will now be the lesser of: (1) $1,000 multiplied by the number of dependent children for whom education expenditures were made, or (2) the total actual unreimbursed education expenditures incurred for those children. These changes will apply retroactively to taxable years beginning after December 31, 2024, and are set to expire on June 30, 2028. The bill aims to provide financial support to teachers who often spend their own money on classroom supplies and to offer tax relief to parents investing in their children's education.