Bill Text: IN SB0239 | 2013 | Regular Session | Amended
Bill Title: Tax credit for quality child care.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2013-03-04 - First reading: referred to Committee on Ways and Means [SB0239 Detail]
Download: Indiana-2013-SB0239-Amended.html
Reprinted
February 26, 2013
SENATE BILL No. 239
_____
DIGEST OF SB 239
(Updated February 25, 2013 2:55 pm - DI 73)
Citations Affected: IC 6-3.1; IC 12-17.2.
Synopsis: Tax credit for quality child care. Establishes the paths to
quality income tax credit. Provides that an individual is entitled to a
nonrefundable income tax credit for each dependent child of the
individual who is at least three years of age and less than six years of
age and who is attending a child care facility that voluntarily
participates in the paths to quality rating system (qualified child care
facility) and that has a quality rating of level 2 or higher. Provides that
the amount of the credit is based on the number of months the
dependent child attends the qualified child care facility and the quality
rating of the qualified child care facility. Requires the division of
family resources to adopt rules to administer the paths to quality rating
system.
Effective: Upon passage; January 1, 2014.
Holdman
, Head, Taylor
January 7, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
February 21, 2013, amended, reported favorably _ Do Pass.
February 25, 2013, read second time, amended, ordered engrossed.
Reprinted
February 26, 2013
First Regular Session 118th General Assembly (2013)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
SENATE BILL No. 239
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-34; (13)SB0239.2.1. -->
SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]:
Chapter 34. Paths to Quality Tax Credit
Sec. 1. As used in this chapter, "child care facility" means a:
(1) child care center licensed under IC 12-17.2-4;
(2) child care home licensed under IC 12-17.2-5; or
(3) child care ministry licensed or registered under IC 12-17.2-6.
Sec. 2. As used in this chapter, "dependent child" means a child at least three (3) years of age and less than six (6) years of age who:
(1) qualifies as a dependent of a taxpayer (as defined in Section 152 of the Internal Revenue Code); and
(2) is the natural or adopted child of the taxpayer or, if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court appointed guardian or custodian of the child.
If the parents of a child are divorced, a taxpayer under this section refers to the parent who is eligible to take the exemption for the child under Section 151 of the Internal Revenue Code.
Sec. 3. As used in this chapter, "division" refers to the division of family resources established under IC 12-13-1-1.
Sec. 4. As used in this chapter, "paths to quality program" refers to the program established by IC 12-17.2-2-14.
Sec. 5. As used in this chapter, "qualified child care facility" means a child care facility that voluntarily participates in the paths to quality program.
Sec. 6. As used in this chapter, "qualified dependent child" means a dependent child who attends a qualified child care facility that receives a level 2 through level 4 quality rating.
Sec. 7. As used in this chapter, "quality rating" means the level number awarded to a qualified child care facility under the quality rating system.
Sec. 8. As used in this chapter, "quality rating system" means the quality rating system established by the division under IC 12-17.2-2-14(c).
Sec. 9. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credits provided in this chapter.
Sec. 10. As used in this chapter, except as provided in section 2 of this chapter, "taxpayer" means an individual.
Sec. 11. (a) Each taxable year, a taxpayer is entitled to credit against the taxpayer's state tax liability for each qualified dependent child of the taxpayer who regularly attends a qualified child care facility during the taxpayer's taxable year if the qualified child care facility has a quality rating of level 2, level 3, or level 4. A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
(b) The amount of the credit to which a taxpayer is entitled for each qualified dependent child equals the STEP TWO total in the following formula:
STEP ONE: For each month in which the qualified dependent child:
(A) is at least three (3) years of age and is less than six (6) years of age during any part of the month; and
(B) attends the qualified child care facility for at least one hundred (100) hours;
determine the monthly credit amount under subsection (c) based on the quality rating of the qualified child care facility for that month.
STEP TWO: Determine the sum of the amounts calculated under STEP ONE for each month during the taxpayer's taxable year.
(c) The monthly credit amount for a qualified dependent child who attends a qualified child care facility at least one hundred (100) hours during that month equals the following:
(1) If the qualified dependent child attends a qualified child care facility with a quality rating of level 4, twenty dollars ($20).
(2) If the qualified dependent child attends a qualified child care facility with a quality rating of level 3, fifteen dollars ($15).
(3) If the qualified dependent child attends a qualified child care facility with a quality rating of level 2, five dollars ($5).
The quality rating for a qualified child care facility for the month in which the quality rating for the facility changes is the lower quality rating assigned to the qualified child care facility during that month.
Sec. 12. Not later than January 15 of each year, the division shall send a letter to each qualified child care facility certifying the quality rating awarded to the qualified child care facility for each month during the previous calendar year.
Sec. 13. To receive a credit under section 11 of this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary to validate eligibility and calculate a credit provided under section 11 of this chapter.
Sec. 14. The department, with the advice of the division, shall adopt rules under IC 4-22-2 to administer this chapter.
Chapter 34. Paths to Quality Tax Credit
Sec. 1. As used in this chapter, "child care facility" means a:
(1) child care center licensed under IC 12-17.2-4;
(2) child care home licensed under IC 12-17.2-5; or
(3) child care ministry licensed or registered under IC 12-17.2-6.
Sec. 2. As used in this chapter, "dependent child" means a child at least three (3) years of age and less than six (6) years of age who:
(1) qualifies as a dependent of a taxpayer (as defined in Section 152 of the Internal Revenue Code); and
(2) is the natural or adopted child of the taxpayer or, if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court appointed guardian or custodian of the child.
If the parents of a child are divorced, a taxpayer under this section refers to the parent who is eligible to take the exemption for the child under Section 151 of the Internal Revenue Code.
Sec. 3. As used in this chapter, "division" refers to the division of family resources established under IC 12-13-1-1.
Sec. 4. As used in this chapter, "paths to quality program" refers to the program established by IC 12-17.2-2-14.
Sec. 5. As used in this chapter, "qualified child care facility" means a child care facility that voluntarily participates in the paths to quality program.
Sec. 6. As used in this chapter, "qualified dependent child" means a dependent child who attends a qualified child care facility that receives a level 2 through level 4 quality rating.
Sec. 7. As used in this chapter, "quality rating" means the level number awarded to a qualified child care facility under the quality rating system.
Sec. 8. As used in this chapter, "quality rating system" means the quality rating system established by the division under IC 12-17.2-2-14(c).
Sec. 9. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credits provided in this chapter.
Sec. 10. As used in this chapter, except as provided in section 2 of this chapter, "taxpayer" means an individual.
Sec. 11. (a) Each taxable year, a taxpayer is entitled to credit against the taxpayer's state tax liability for each qualified dependent child of the taxpayer who regularly attends a qualified child care facility during the taxpayer's taxable year if the qualified child care facility has a quality rating of level 2, level 3, or level 4. A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
(b) The amount of the credit to which a taxpayer is entitled for each qualified dependent child equals the STEP TWO total in the following formula:
STEP ONE: For each month in which the qualified dependent child:
(A) is at least three (3) years of age and is less than six (6) years of age during any part of the month; and
(B) attends the qualified child care facility for at least one hundred (100) hours;
determine the monthly credit amount under subsection (c) based on the quality rating of the qualified child care facility for that month.
STEP TWO: Determine the sum of the amounts calculated under STEP ONE for each month during the taxpayer's taxable year.
(c) The monthly credit amount for a qualified dependent child who attends a qualified child care facility at least one hundred (100) hours during that month equals the following:
(1) If the qualified dependent child attends a qualified child care facility with a quality rating of level 4, twenty dollars ($20).
(2) If the qualified dependent child attends a qualified child care facility with a quality rating of level 3, fifteen dollars ($15).
(3) If the qualified dependent child attends a qualified child care facility with a quality rating of level 2, five dollars ($5).
The quality rating for a qualified child care facility for the month in which the quality rating for the facility changes is the lower quality rating assigned to the qualified child care facility during that month.
Sec. 12. Not later than January 15 of each year, the division shall send a letter to each qualified child care facility certifying the quality rating awarded to the qualified child care facility for each month during the previous calendar year.
Sec. 13. To receive a credit under section 11 of this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary to validate eligibility and calculate a credit provided under section 11 of this chapter.
Sec. 14. The department, with the advice of the division, shall adopt rules under IC 4-22-2 to administer this chapter.
SOURCE: IC 12-17.2-2-14; (13)SB0239.2.2. -->
SECTION 2. IC 12-17.2-2-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) As used in this section,
"program" refers to the paths to quality program established by
subsection (b).
(b) The paths to quality program is established. The program is a voluntary child care facility quality rating and improvement system implemented by the division in partnership with the following organizations:
(1) Indiana Association for the Education of Young Children.
(2) Indiana Association for Child Care Resource and Referral.
(3) Indiana Head Start Collaboration Office.
(4) Indiana Department of Education.
(5) Early Childhood Alliance.
(6) 4 C's of Southern Indiana.
(c) The program shall use four (4) levels at which a child care facility participating in the program may be rated, with level 4 indicating the highest level of quality child care.
(d) The division shall adopt rules under IC 4-22-2 to administer the paths to quality program rating system. The rules must include procedures that outline eligibility and application procedures for the program, the establishment of procedures relating to the rating process, and the establishment or alteration of standards used in the rating process.
(e) The division shall adopt rules under IC 4-22-2 to establish the steering council of the program to make recommendations to the division on program issues and resources. Rules adopted under this subsection must require that council members be appointed from partner organizations that assist in the implementation of the program and serve to coordinate the project plan.
(b) The paths to quality program is established. The program is a voluntary child care facility quality rating and improvement system implemented by the division in partnership with the following organizations:
(1) Indiana Association for the Education of Young Children.
(2) Indiana Association for Child Care Resource and Referral.
(3) Indiana Head Start Collaboration Office.
(4) Indiana Department of Education.
(5) Early Childhood Alliance.
(6) 4 C's of Southern Indiana.
(c) The program shall use four (4) levels at which a child care facility participating in the program may be rated, with level 4 indicating the highest level of quality child care.
(d) The division shall adopt rules under IC 4-22-2 to administer the paths to quality program rating system. The rules must include procedures that outline eligibility and application procedures for the program, the establishment of procedures relating to the rating process, and the establishment or alteration of standards used in the rating process.
(e) The division shall adopt rules under IC 4-22-2 to establish the steering council of the program to make recommendations to the division on program issues and resources. Rules adopted under this subsection must require that council members be appointed from partner organizations that assist in the implementation of the program and serve to coordinate the project plan.
SOURCE: ; (13)SB0239.2.3. -->
SECTION 3. An emergency is declared for this act.
