Tax credits legislation sails through Indiana Senate
The Indiana Senate on Monday passed a bill that would grant tax credits to individuals and corporations donating to public school foundations.
Senate Bill 260 would allow a 25% tax credit on such contributions. The credits would be capped at $1,000 for single taxpayers and corporations and $2,000 for married joint filers.
The bill’s primary author, state Sen. Brian Buchanan, R-Lebanon, described it as “a simple bill” to his colleagues on the floor.
“Indiana’s public school foundations offer financial support to public schools by funding scholarships, teacher education and other capital projects,” Buchanan said. “SB260 would encourage Hoosiers and private corporations to make an investment in Indiana’s future by contributing to these organizations.”
The Senate voted 46-1 in favor of the bill.
The credits would be offered during the 2024 and 2025 tax years. Initially, the bill called for the tax credits to be capped at $5 million per fiscal year, but a revised version caps the total amount of credits available at $100,000 for each fiscal year.
The credit could be applied toward any part of the taxpayer’s state liability, which includes the gross income tax, the financial institutions tax and the insurance premiums tax.
According to the Indiana Association of Public Education Foundations, there are more than 60 such foundations across the state. The nonprofit groups raise more than $16 million yearly to support students from kindergarten to high school.
The foundations provide money for such initiatives as summer and intersession enrichment camps, grant writing training for teachers, literacy development programs, dual-credit programs and after-school homework clubs that also provide bus transportation.
The bill now heads to the House for its consideration.
A similar bill, House Bill 1019, has been filed in that chamber by state Rep. Carey Hamilton, D-Indianapolis, but that bill has not moved since it was assigned to the Ways and Means Committee last month.