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
Newborn tax credit. Amends the definition of adjusted gross income to remove the additional dependent child exemption of $1,500 in the first taxable year in which an allowed child is claimed. Establishes a refundable tax credit for newborn children, which an eligible taxpayer may claim only in the first taxable year in which a particular newborn child is eligible for the exemption allowed under specified provisions of the Internal Revenue Code. Defines "eligible taxpayer". Provides that the amount of the credit is $500 per newborn child, or $250 per eligible newborn child in the case of a married individual filing a separate return. Prorates the credit in the case of a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year.
AI Summary
This bill establishes a new tax credit for newborn children in Indiana, providing financial support to eligible families with a newborn. The bill creates a refundable tax credit of $500 per newborn child (or $250 for married individuals filing separately) that can only be claimed in the first taxable year the child is eligible for a dependent exemption. To qualify, taxpayers must have an adjusted gross income not exceeding 720% of the federal poverty level and be a resident of Indiana. The credit is prorated for taxpayers who are only residents for part of the tax year. Additionally, the bill removes the existing additional $3,000 dependent child exemption in the first year a child is claimed. The purpose appears to be providing targeted financial assistance to families with newborns while simplifying the existing tax code. The bill will apply to taxable years beginning after December 31, 2024, and is designed to help lower and middle-income families with the costs associated with a new child.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
First reading: referred to Committee on Tax and Fiscal Policy (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/455/details |
| BillText | https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0455/SB0455.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0455/fiscal-notes/SB0455.01.INTR.FN001.pdf |
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