summary
Introduced
01/13/2025
01/13/2025
In Committee
01/13/2025
01/13/2025
Crossed Over
Passed
Dead
04/24/2025
04/24/2025
Introduced Session
2025 Regular Session
Bill Summary
Caregiver tax credit. Provides that a qualified taxpayer is entitled to a credit against the qualified taxpayer's state income tax liability in a taxable year equal to the lesser of: (1) the value of qualified services that the qualified taxpayer performed in the immediately preceding taxable year; or (2) $10,000 (or $5,000 in the case of a married individual filing a separate return). Provides that "qualified services" means services, as determined by the office of the secretary of family and social services (FSSA), that a qualified taxpayer performs in caring for an ill or aging qualified family member that the qualified taxpayer otherwise would have compensated a third-party caregiver to perform. Provides that the term does not include services that would otherwise be required to be performed by a licensed physician, a licensed nurse, or other medical professional. Requires the FSSA to: (1) develop criteria that a service must satisfy to be considered a qualified service; (2) derive a formula, using published industry data and standards, to determine the value of the qualified services performed by a qualified taxpayer during a taxable year; and (3) adopt any other guidelines necessary to allow or disallow a credit. Requires a qualified taxpayer to submit to the FSSA all relevant information regarding the performance of qualified services necessary for the FSSA to determine the value of the qualified services. Requires the FSSA to notify a qualified taxpayer in writing the value of the services that the qualified taxpayer performed for purposes of claiming the credit.
AI Summary
This bill creates a new tax credit for family caregivers in Indiana, allowing qualifying taxpayers to receive a credit against their state income tax for providing care to ill or aging family members. The credit is equal to the lesser of the determined value of care services provided or $10,000 (or $5,000 for married individuals filing separately), with several important conditions. A "qualified taxpayer" must be an Indiana resident who has performed care services for a spouse, child, grandchild, parent, or sibling, and has state income tax liability. The Office of the Secretary of Family and Social Services (FSSA) will develop criteria to evaluate these care services, create a formula to determine their monetary value, and establish guidelines for the credit. Caregivers must submit detailed information about their services by January 31 of the following year, and the FSSA will notify them of the calculated service value by March 31. Importantly, the credit cannot exceed the taxpayer's state income tax liability, and there are no provisions for carrying over, carrying back, or receiving a refund for unused credits. The tax credit will apply to taxable years beginning after December 31, 2025, and specifically excludes services that would typically be performed by licensed medical professionals.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
First reading: referred to Committee on Appropriations (on 01/13/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2025/bills/senate/339/details |
| Fiscal Note #2: Introduced | https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0339/fiscal-notes/SB0339.01.INTR.FN002.pdf |
| BillText | https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0339/SB0339.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0339/fiscal-notes/SB0339.01.INTR.FN001.pdf |
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