IN SB0145

Increases Indiana earned income tax credit from 9% to 10% of the federal earned income tax credit for eligible individuals under Internal Revenue Code Section 32.

Applies to individuals eligible for the federal earned income tax credit as it existed before amendment by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312).

For nonresident taxpayers or those residing in Indiana for less than the entire tax year, the credit amount is calculated by multiplying the credit by the quotient of income taxable in Indiana divided by total income.

Credits exceeding adjusted gross income tax liability for the year are refunded to the taxpayer, less any advance payments made by the employer under IC 6-3-4-8.

Effective January 1, 2015 (retroactive) for taxable years beginning after December 31, 2014, with this amendment expiring January 1, 2018.