Senate Bill 185 Summary

• Creates a tax credit against adjusted gross income tax liability for taxpayers who donate to qualified developmental disability care providers.

• Qualifies nonprofit organizations that are exempt under Section 501(c)(3) of the Internal Revenue Code, provide services to persons with developmental disabilities in Indiana, and are either accredited by specified national organizations (CARF, Council on Quality and Leadership, JCAHO, National Commission on Quality Assurance, or approved independent national organization) or under contract with the division of disability and rehabilitative services.

• Tax credit equals the lesser of $1,000 or 50% of aggregate donations made during a taxable year, and cannot exceed the taxpayer's adjusted gross income tax liability after other credits are applied.

• Allows shareholders, partners, or members of pass-through entities without state tax liability to claim the credit based on their distributive share of the entity's income.

• Effective January 1, 2016, for taxable years beginning after December 31, 2015; unused credits cannot be carried forward, carried back, or refunded.