Indiana legislation · 2026 Regular Session
Indiana HB1177: Child care assistance.
Status: Signed into law, March 3, 2026
Increases the maximum number of individuals an entity may employ to be eligible for the employer child care expenditure income tax credit. Provides that costs incurred: (1) for the operating costs of a child care facility operated for a taxpayer's employees; or (2) under a contract with a child care facility to provide child care services to employees of the taxpayer, or under a contract with an intermediate entity that contracts with one or more child care facilities for child care services; are qualified expenditures for purposes of the employer child care expenditure income tax credit. Allows a redevelopment commission to use revenue collected in a tax increment financing district to expend money or provide financial assistance to entities for the purpose of encouraging or incentivizing the construction or expansion of child care facilities.
What the bill says
An act to amend the Indiana Code concerning taxation.
From the enrolled text:
AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 6-3.1-39.5-1, AS ADDED BY P.L.201-2023, SECTION 103, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 1. As used in this chapter, "Indiana qualified child care facility" means a facility that is: (1) a qualified child care facility (as defined in Section 45F of the Internal Revenue Code); (2) located in Indiana; and (3) licensed by the division of family resources under IC 12-17.2. and (4) (B) by a taxpayer jointly with one (1) or more other individuals or entities; or (C) under a contract described in Section 45F(c)(1)(A)(iii) of the Internal Revenue Code with the taxpayer. SECTION 2. IC 6-3.1-39.5-3, AS ADDED BY P.L.201-2023, SECTION 103, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 3. As used in this chapter, "qualified child care expenditure" means an expenditure: (1) for the acquisition, construction, rehabilitation, or expansion HEA 1177 of property used as part of an Indiana qualified child care facility of a taxpayer that is operated for the taxpayer's employees; (2) incurred under a contract between a taxpayer and an Indiana qualified child care facility to provide for the operating costs, acquisition, construction, rehabilitation, or expansion of property used as part of the Indiana qualified child care facility; or (3) for …
Sponsors
- Becky Cash (R, HD-025) · primary sponsor
- Lindsay Patterson (R, HD-055)
- Gregory Porter (D, HD-096)
- Lopez, Danny (R)
Latest actions
- : Signed by the Governor
- : Public Law 58
- : Signed by the President Pro Tempore
- : Signed by the President of the Senate
- : Signed by the Speaker
- : Returned to the House without amendments
- : Third reading: passed; Roll Call 237: yeas 48, nays 0
- : Senator Alting added as cosponsor
- : Senator Randolph added as cosponsor
- : Second reading: ordered engrossed
Votes
- HB1177.03.COMS (February 24, 2026): 48 yea, 0 nay, passed
- HB1177.02.COMH (February 2, 2026): 80 yea, 0 nay, passed
- HB1177.02.COMH.AMH001 (January 29, 2026): 28 yea, 63 nay, failed
Subjects: CHILDREN AND MINORS; Child Care Programs, TAXES; Credits, TAXES; Tax Increment Financing (TIF), CIVIL LAW AND PROCEDURE; Contracts and Legal Documents, TAXES; Gross Income Taxes, FINANCIAL SERVICES; Generally
Common questions
- What is HB1177?
- HB1177 is a bill in the Indiana Legislature (2026 Regular Session): Child care assistance.
- What does HB1177 do?
- In its own words: An act to amend the Indiana Code concerning taxation.
- What is the status of HB1177?
- Signed into law as of March 3, 2026. Latest action: Signed by the Governor (March 3, 2026).
- Who sponsored HB1177?
- Becky Cash (R, HD-025), with 3 co-sponsors.
- Where is the official record for HB1177?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1177
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.