Donors could claim Indiana tax credits for approved family charities

Taxpayers could claim a state tax credit for money they designate for this credit when they give it to certified family support charities. The credit would apply to donors with Indiana state tax liability. The credit could not exceed the contribution or half the donor's state tax bill. A donor could apply for no more than $1 million in credits per tax year. The state could award no more than $5 million per fiscal year, on a first-come, first-served basis. The rules would apply to tax years beginning on or after January 1, 2027. The chapter would expire January 1, 2036, but eligible credits from earlier gifts could still be used.

The state would certify family support charities that meet the program rules. Groups would need federal charity tax exemption, permission to operate in Indiana, and at least 10 years of qualifying family support work there before their first application. Groups could not provide abortion services, directly or indirectly, or offer information about them. Their services would need ongoing quality checks and reviews of results. Groups would apply for certification again each calendar year.

Certified charities would check people working directly with children in programs funded by these gifts and spend the gifts on services for Indiana residents. The checks would cover local, state, and national criminal records and the national sex offender list. Charities could spend no more than 5% of these gifts on administrative costs. The state would revoke certification for rule violations or lost eligibility and require a charity to return the gifts if its certification was revoked or it otherwise failed to comply. A charity required to return gifts could not qualify again.