Bill > HB1306

This bill increases the state income tax credit for teachers who purchase classroom supplies from $100 to $300 per taxable year, effective January 1, 2025. The credit applies to items that qualify under the federal educator expense deduction, which typically includes things like books, school supplies, computer equipment, and other materials used in the classroom. Teachers can claim a tax credit for the amount they spend on these supplies, up to the new maximum of $300, which can be used to directly reduce their state income tax liability. The credit cannot be carried forward to future years or refunded if it exceeds the teacher's tax liability. The bill includes a provision that makes this change retroactive for taxable years beginning after December 31, 2024, and sets an expiration date of June 30, 2027, effectively making this a temporary expansion of the existing tax credit. By increasing the tax credit, the bill aims to provide additional financial support to teachers who often spend their own money on classroom materials.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1306/details