IN HB1378

Creates a refundable Indiana child and dependent care tax credit equal to 20% of the federal child and dependent care tax credit claimed by the taxpayer

Establishes a refundable child tax credit of $300 per qualifying child for Indiana taxpayers who are eligible for the federal child tax credit

Expands the employer child care expenditure tax credit to include operating costs of employer-operated child care facilities, including employee training, scholarship programs, and compensation for workers with higher child care training levels

Allows employer child care tax credits for contracts with child care facilities or intermediate entities that arrange child care services for employees, as well as child care resource and referral services

Effective retroactively to January 1, 2026, applying to taxable years beginning after December 31, 2025; declared an emergency measure