Licensed money transfer companies would charge for sending money abroad

Licensed money transfer companies would collect a fee from people sending money abroad. The fee would apply when the recipient is outside the United States. The fee would be $5 for a transfer of up to $500. For a larger transfer, it would be $5 plus 3% of the amount above $500. The fee provision would take effect July 1, 2026.

Eligible senders could claim an Indiana income tax credit for the fees they paid. The credit would cover U.S. citizens and nationals, and people with lawful permanent or conditional permanent resident status who paid the fee during the tax year. A person would have to claim the credit on an Indiana tax return and provide information the state requires. The credit could only reduce income tax owed after earlier credits. Any unused amount could not be refunded or used in another year. The credit would apply to tax years beginning on or after January 1, 2026.

The state would put 80% of fee revenue in a services fund and 20% in its general fund. The fee money in the services fund would pay for two Medicaid support programs, including applied behavior analysis, to reduce waiting lists and make more places available. Half the fee money in the services fund could be used after budget committee review. The other half could be used once deposited. The funding rules would take effect July 1, 2026.