IN HB1251

Establishes a tax credit against state tax liability for employers who pay tuition expenses for employees attending state educational institutions, effective January 1, 2015.

Credits apply only to courses where the employee achieves a final grade of at least 2.0 on a 4.0 grading scale (or equivalent on other scales).

Tuition includes required books, course supplies, and course fees; credits are not allowed if the employer has already claimed a federal deduction for the same expenses.

Applies to sole proprietors, partnerships, limited liability companies, corporations, and limited liability partnerships; pass-through entities without state tax liability can allocate credits to shareholders, partners, or members based on distributive income.

Unused credits can be carried forward for up to five additional taxable years; employers must maintain records including employee name, institution, course name, semester, payment amount, and final grade.