Bill > HB1584

This bill introduces two new child care-related tax credits for Indiana residents. First, the bill creates a refundable tax credit for individuals who claim the federal child and dependent care tax credit, with the credit amount varying based on household income: 100% for households earning $40,000 or less, 75% for households earning between $40,000 and $60,000, and 50% for households earning between $60,000 and $75,000, with no credit available for households earning over $75,000. Second, the bill establishes a tax credit for employees working at child care facilities participating in the "paths to QUALITY" program, with credit amounts ranging from $1,500 to $3,000 depending on the facility's quality rating level (with higher-rated facilities offering larger credits). Both tax credits are refundable, meaning that if the credit exceeds the individual's tax liability, the excess will be refunded. These credits will apply to taxable years beginning after December 31, 2024, and are set to expire on June 30, 2028. The bill aims to support working parents and incentivize employment in high-quality child care facilities.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1584/details