IN HB1261

Creates a refundable tax credit for qualified employees who obtain an approved degree or certification through an employer-sponsored education agreement, effective January 1, 2015.

Tax credit equals the lesser of one-third of qualified education expenses or $10,000, claimed on annual state tax returns.

Qualified employees must be full-time Indiana residents with no more than 5% ownership interest in their employer, having completed at least 50% of required coursework at a state educational institution.

Employers must approve the degree or certification and reimburse employees for at least one-third of qualified education expenses or $10,000, whichever is less.

Employees reimbursed for at least two-thirds of qualified education expenses are ineligible for the tax credit; unused credits cannot be carried back or forward.