IN SB0129

Increases the Indiana earned income tax credit from 9% to 10% of the federal earned income tax credit for eligible individuals.

Applies to individuals eligible for an earned income tax credit under Section 32 of the Internal Revenue Code as it existed before the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

For nonresident taxpayers or residents in Indiana for less than the entire taxable year, the credit amount is reduced proportionally based on income taxable in Indiana divided by total income.

Excess credit amounts that exceed the taxpayer's adjusted gross income tax liability for the taxable year shall be refunded to the taxpayer.

Effective January 1, 2016 (retroactive) and applies only to taxable years beginning after December 31, 2015, with the amendment expiring January 1, 2019.