Indiana legislation · 2026 Regular Session
Indiana HB1378: Child care tax credits.
Status: In committee, January 8, 2026
Provides a child and dependent care refundable tax credit against an individual's Indiana adjusted gross income tax for employment related child and dependent care expenses based on the percentage of the federal child and dependent care tax credit the taxpayer claimed for the taxable year for federal income tax purposes. Provides a child tax credit against an individual's Indiana adjusted gross income tax. 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.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning taxation.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 6-3-3-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 11. (a) Each taxable year, an individual who is eligible to claim the federal child and dependent care tax credit under Section 21 of the Internal Revenue Code is entitled to a credit against the individual's, and the individual's spouse's in the case of a joint return, adjusted gross income tax liability equal to: (1) the allowable amount of the federal child and dependent care tax credit that the taxpayer claimed on the taxpayer's federal income tax return for the taxable year under Section 21 of the Internal Revenue Code; multiplied by (2) twenty percent (20%). (b) If the credit provided by this section exceeds the amount of the individual's adjusted gross income tax liability for the taxable year, reduced by the sum of all credits for the taxable year that are applied before the application of the credit provided by this 2026 IN 1378--LS 6788/DI section, the excess shall be refunded to the individual. SECTION 2. IC 6-3-3-15 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 15. (a) As used in …
Sponsors
- Chris Campbell (D, HD-026) · primary sponsor
- Carolyn Jackson (D, HD-001)
- Sue Errington (D, HD-034)
Latest actions
- : First reading: referred to Committee on Ways and Means
- : Authored by Representative Campbell
- : Coauthored by Representatives Jackson C, Errington
Subjects: CHILDREN AND MINORS; Child Care Programs, TAXES; Adjusted Gross Income Taxes, TAXES; Credits
Common questions
- What is HB1378?
- HB1378 is a bill in the Indiana Legislature (2026 Regular Session): Child care tax credits.
- What does HB1378 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning taxation.
- What is the status of HB1378?
- In committee as of January 8, 2026. Latest action: First reading: referred to Committee on Ways and Means (January 8, 2026).
- Who sponsored HB1378?
- Chris Campbell (D, HD-026), with 2 co-sponsors.
- Where is the official record for HB1378?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1378
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.