Bill > SB0497

This bill establishes a tax credit for newborn children in Indiana, designed to provide financial support to eligible families with newborns. The credit is available only in the first taxable year a child qualifies as a dependent, and is limited to taxpayers whose adjusted gross income does not exceed 720% of the federal poverty level. Eligible taxpayers can claim $500 per newborn child, or $250 for married individuals filing separately, with the credit amount prorated for those residing in Indiana for only part of the tax year. The bill includes specific definitions for terms like "eligible newborn child" and "eligible taxpayer", referencing the Internal Revenue Code's dependent exemption guidelines. There is a strict annual cap of $10,000 on total credits awarded, which will be distributed on a first-come, first-served basis. The credits cannot be carried back or refunded if unused, and the entire program is set to expire on December 31, 2027. The bill is retroactively effective from January 1, 2025, and aims to provide targeted financial assistance to lower-income families with newborn children.