Bill Text: IN HB1009 | 2010 | Regular Session | Introduced
Bill Title: Child and dependent tax credit.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-05 - First reading: referred to Committee on Ways and Means [HB1009 Detail]
Download: Indiana-2010-HB1009-Introduced.html
Citations Affected: IC 6-3.1-33.
Synopsis: Child and dependent tax credit. Provides a refundable
income tax credit to individuals for certain household, child care, or
dependent care expenses associated with an individual's gainful
employment. Provides that the amount of the credit is 50% of the
amount allowed for the federal child and dependent care credit.
Provides that an individual whose federal adjusted gross income
exceeds $45,000 is not eligible for the credit.
Effective: January 1, 2011.
January 5, 2010, read first time and referred to Committee on Ways and Means.
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 33. Child and Dependent Care Tax Credit
Sec. 1. As used in this chapter, "applicable percentage" has the meaning set forth in Section 21(a)(2) of the Internal Revenue Code.
Sec. 2. As used in this chapter, "eligible employment-related expenses" means the amount of employment-related expenses (as defined in Section 21(b)(2) of the Internal Revenue Code) that remains after applying the dollar limitations of Section 21(c) and Section 21(d) of the Internal Revenue Code.
Sec. 3. (a) Subject to subsection (b) and the special rules of Section 21(e) of the Internal Revenue Code, an individual may claim a credit under this chapter in each taxable year equal to the product of the following:
(1) Fifty percent (50%).
(2) The applicable percentage.
(3) The eligible employment-related expenses paid by the individual during the taxable year.
(b) An individual whose federal adjusted gross income (as defined in Section 62 of the Internal Revenue Code) exceeds forty-five thousand dollars ($45,000) for the taxable year is not eligible for the credit provided by this chapter.
Sec. 4. If the credit amount provided by this chapter exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the department shall refund the excess to the taxpayer.
Sec. 5. To obtain a credit under this chapter, a taxpayer must claim the credit in the manner prescribed by the department. The taxpayer must submit to the department all information that the department determines to be necessary for the calculation of the credit provided by this chapter.
