Bill > HB1169

This bill, effective January 1, 2027, increases the Indiana state tax credit available for contributions made to an Indiana529 plan, which is a savings plan designed to help families save for future education expenses. Specifically, the maximum credit amount for an individual taxpayer will rise from $1,500 to $2,500, and for a married individual filing separately, it will increase from $750 to $1,250. The credit is calculated as 20% of the total contributions made to an Indiana529 plan during the taxable year, up to these new maximums, and is applied against a taxpayer's adjusted gross income tax. This change aims to encourage more families to save for college by providing a larger tax incentive.