IndianaIndiana employers may count child care costs toward state tax credits
For tax years beginning in 2026, employers’ facility costs, employee care services, and referrals may count as qualifying child care expenses.
What it does
Employers’ facility costs, employee care services, and referral services are listed as expenses that may qualify for a state tax credit.
Redevelopment districts may use certain property tax money for grants or loans that support child care facilities in or serving their areas.
Argument forEmployers could count more kinds of child care costs, including care services and referrals, toward expenses that may qualify for a state tax credit.
Argument againstUsing redevelopment money for child care could leave less available for other listed projects, such as paying debts or improving local facilities.
More detail
The law lists expenses that count as qualifying child care costs in the state tax code. The definition concerns taxpayers with state tax liability; the printed text’s employee-count limit is unclear because amendment formatting is not visible. The listed costs include operating an employee child care facility, contracting for employee care, and contracting for referral services. These definitions apply to tax years beginning after December 31, 2025. The section applying them expires June 30, 2028.
Redevelopment districts may use certain property tax money to support child care facilities. This applies to redevelopment districts and child care facilities in or serving their allocation areas. The money may support building, expanding, or operating facilities in the district’s area or serving it. The fund cannot pay the redevelopment commission’s operating expenses.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 3Signed by the Governor Mike BraunBecame Law
- Mar 3Public Law 58Major
- Feb 27Signed by the President Pro TemporeMajor
- Feb 27Signed by the President of the SenateMajor
- Feb 26Signed by the SpeakerMajor
- Feb 24Returned to the House without amendmentsMinor
- Vote recorded HB 1177 - Buchanan - 3rd Reading. Result: pass.Upper
- Feb 24Third reading: passed; Roll Call 237: yeas 48, nays 0Passed Senate
- Feb 24Senator Alting added as cosponsor
- Feb 19Senator Randolph added as cosponsor
- Feb 19Second reading: ordered engrossedMinor
- Feb 17Committee report: do pass, adoptedMinor
- Feb 12Senator Becker added as cosponsor
- Feb 5First reading: referred to Committee on Tax and Fiscal PolicyMinor
- Feb 3Referred to the SenateMinor
- Feb 2Senate sponsors: Senators Buchanan, Clark, Goode
- Vote recorded HB 1177 - Cash - 3rd Reading. Result: pass.Lower
- Feb 2Third reading: passed; Roll Call 172: yeas 80, nays 0Passed House
- Feb 2Cosponsor: Senator Charbonneau
- Jan 29Amendment #1 (Porter) failed; Roll Call 156: yeas 28, nays 63Major
- Vote recorded HB 1177 - Cash - 2nd Reading. Result: fail.Lower
- Jan 29Second reading: ordered engrossedMinor
- Jan 27Committee report: do pass, adoptedMinor
- Jan 22Representative Lopez added as coauthor
- Jan 8Representative Porter added as coauthor
- Jan 5First reading: referred to Committee on Ways and MeansMinor
- Jan 5Authored by Representative Cash
- Jan 5Coauthored by Representative PattersonIntroduced
Taxes & BudgetEconomy & Jobs