Bill > HB1149

This bill establishes an early childhood scholarship tax credit program that allows taxpayers to receive a 50% tax credit for contributions made to scholarship granting organizations (SGOs) that provide financial assistance for pre-kindergarten child care. The tax credit is limited to $100 million in total credits per state fiscal year and can be carried forward for up to nine years. Qualified children must be six years old or younger and reside in Indiana, and the scholarships can only be used at qualified early child care providers such as licensed child care centers, homes, or ministries that meet specific quality standards (like Level 3 or 4 in the Paths to QUALITY program). The bill requires SGOs to use at least 90% of contributions for scholarships, provide receipts to donors, conduct background checks on employees, and publicly report their financial activities. Additionally, the bill prohibits school corporations from limiting early childhood education program participation solely to district residents, thereby expanding access to these educational opportunities. The tax credit is designed to help families afford high-quality early childhood care and education by providing financial incentives for donations to scholarship organizations.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/house/1149/details