IN HB1331

Establishes the Indiana Companion Animal Sterilization Fund and program, administered by the Board of Veterinary Medical Examiners, to reimburse veterinarians who provide free spaying/neutering services to dogs and cats owned by Medicaid recipients, with reimbursement capped at $50 per procedure (adjusted annually for inflation starting 2014)

Imposes a $50 fee on retail sales of unsterilized dogs and cats, collected by the retail merchant and deposited into the sterilization fund

Adds a $3 fee on each rabies vaccination performed by veterinary services providers, with proceeds deposited into the sterilization fund

Increases the annual pet food inspection fee for packages of 10 pounds or less from $50 to $80, with the additional $30 directed to the sterilization fund

Creates a $50 tax credit against state tax liability for veterinary providers who perform both a rabies vaccination and spay/neuter services on a companion animal owned by a Medicaid recipient, with unused credits carried forward up to 5 years