Bill > HB1565

This bill establishes a new tax credit program for taxpayers who make designated contributions to qualified nonprofit organizations providing specific social services in Indiana. The bill defines a qualified nonprofit organization as a 501(c)(3) organization that has been operating in Indiana for at least ten years and provides services such as case management for at-risk families, family support services, father parenting resources, or mother and child support programs. Importantly, these organizations cannot provide abortion services. Taxpayers can claim a tax credit equal to the lesser of their total designated contributions or 50% of their state tax liability, with a maximum individual credit of $1 million per year and a total statewide credit limit of $5 million annually. The credit can be carried forward to future tax years but cannot be refunded. Qualified nonprofit organizations must spend at least 95% of designated contributions on services for Indiana residents, conduct background checks on staff working with children, submit annual financial audits, and provide contribution certificates to donors. The tax credit program will be in effect from January 1, 2026, to January 1, 2035, and credits will be granted on a first-come, first-served basis.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1565/details