HB 1322 Summary

• Establishes refundable income tax credits for individuals with children attending child care facilities participating in the "paths to quality" rating system, with credit amounts ranging from $200-$400 per child based on facility quality rating (levels 2-4).

• Provides refundable tax credits to taxpayers for eligible business and employer child care expenses (construction, equipment, maintenance, and employee childcare payments up to $50,000), with credit rates of 10-20% based on facility quality rating.

• Entitles qualified child care facilities to refundable tax credits for providing care to children in the Child Care and Development Fund program, with monthly credit amounts ranging from $1,000-$1,500 based on quality rating and number of participating children.

• Requires the Division of Family Resources to adopt rules to administer the paths to quality rating system in partnership with specified organizations including the Indiana Association for the Education of Young Children and Indiana Head Start Collaboration Office.

• Effective January 1, 2013, with provisions allowing unused credits to be refunded or carried forward to subsequent tax years.