Ind. Code ch. 6-3.1-35.8

in effect

Ind. Code § 6-3.1-35.8-1 Definitions

Sec. 1. (a) As used in this chapter, "foster care" means living in a place licensed under IC 31-27. (b) As used in this chapter, "person" means an individual, a corporation, a limited liability company, a partnership, or another legal entity. (c) As used in this chapter, "qualifying contribution" means a monetary payment made by a person to the insuring foster youth trust fund established by IC 31-26-4.5-4. (d) As used in this chapter, "qualifying foster care organization" means an organization that meets the following qualifications: (1) The organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. (2) The organization provides: (A) foster care prevention services and programs as required by 42 U.S.C. 671; or (B) direct assistance to individuals in the foster care system. (3) The organization spends at least fifty percent (50%) of its available revenue on qualified services to Indiana residents. (4) The organization affirms that it will continue spending at least fifty percent (50%) of its available revenue on qualified services to Indiana residents. (5) The organization provides ongoing qualified services to at least two hundred (200) Indiana residents. (e) As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under: (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and (2) IC 6-5.5 (the financial institutions tax); as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter. (f) As used in this chapter, "tax credit" means a deduction from any tax otherwise due under IC 6-3 or IC 6-5.5. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.1.

Ind. Code § 6-3.1-35.8-2 Eligible persons

Sec. 2. A person who makes a qualifying contribution or makes a monetary contribution to a qualifying foster care organization shall receive a tax credit as provided in section 3 of this chapter. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.2.

Ind. Code § 6-3.1-35.8-3 Amount of credit; pass through entities

Sec. 3. (a) Subject to the limitations provided in subsection (b) and sections 5 and 6 of this chapter, the department shall grant a tax credit against any state tax liability due equal to fifty percent (50%) of a qualifying contribution or of the amount of the monetary contribution by a person to a qualifying foster care organization that is approved by the department of child services under section 4(c) of this chapter. (b) The tax credit which a taxpayer receives under this chapter may not exceed ten thousand dollars ($10,000) for any taxable year of the taxpayer. (c) If a person that is: (1) exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or (2) a partnership; does not have any tax liability against which the credit provided by this section may be applied, a shareholder or a partner of the business firm is entitled to a credit against the shareholder's or partner's liability under the adjusted gross income tax. (d) The amount of the tax credit provided by this section under subsection (c) is equal to: (1) the tax credit determined for the business firm for the taxable year under subsection (a); multiplied by (2) the percentage of the business firm's distributive income to which the shareholder or the partner is entitled. The tax credit provided by this section is in addition to any credit to which a shareholder or partner is otherwise entitled under this chapter. However, a business firm and a shareholder or partner of that business firm may not claim a credit under this chapter for the same qualifying contribution or monetary contribution to a qualifying foster care organization. (e) To apply a credit against the state tax liability of a business firm or person, the business firm or person must claim the credit on the annual state tax return of the business firm or person in the manner prescribed by the department. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.3.

Ind. Code § 6-3.1-35.8-4 Application process; proof of payment; approval of a qualified foster care organization

Sec. 4. (a) Any business firm or person that desires to claim a tax credit as provided in this chapter shall file with the department, in the form that the department may prescribe, an application stating the amount of the contribution or investment that it made that would qualify for a tax credit, proof of payment of the contribution, the amount sought to be claimed as a credit, and any other information that the department determines is necessary to determine whether the business firm or person is eligible for the credit. (b) The department shall notify the applicant not later than forty-five (45) days after the department receives an application for a tax credit under subsection (a) that the applicant has been: (1) approved for the tax credit; or (2) denied the tax credit. (c) An organization must apply to the department of child services for approval as a qualifying foster care organization for purposes of this chapter. The department of child services shall approve each organization applicant that is a qualifying foster care organization as defined in section 1(d) of this chapter and provide a list of each approved organization annually to the department before January 1 of each year. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.4.

Ind. Code § 6-3.1-35.8-5 Annual aggregate credit limit

Sec. 5. (a) The amount of tax credits allowed under this chapter may not exceed two million dollars ($2,000,000) for the period beginning July 1, 2021, through December 31, 2023. (b) The amount of tax credits allowed under this chapter may not exceed two million dollars ($2,000,000) in each calendar year beginning after December 31, 2023, and ending before January 1, 2028. (c) The department shall record the time of filing of each application for allowance of a tax credit required under section 4 of this chapter and shall approve the applications, if they otherwise qualify for a tax credit under this chapter, in the chronological order in which the applications are filed in the calendar year. (d) When the total tax credits approved under this section equal the maximum amount allowable, no application thereafter filed for that calendar year shall be approved. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.5.

Ind. Code § 6-3.1-35.8-6 Unused credits

Sec. 6. A tax credit shall be allowable under this chapter only for the taxable year of the taxpayer in which the contribution qualifying for the credit is paid. A taxpayer is not entitled to a refund of any unused credit. As added by P.L.165-2021, SEC.91.

Ind. Code § 6-3.1-35.8-6.1 Information posted by the department

Sec. 6.1. The department shall provide the following information on the department's website: (1) The application for the tax credit provided in this chapter. (2) A timeline for receiving the credit provided in this chapter. (3) The total amount of credits awarded under this chapter during the current calendar year. As added by P.L.97-2023, SEC.6.

Ind. Code § 6-3.1-35.8-7 Applicable tax years

Sec. 7. This chapter applies to taxable years beginning after December 31, 2021. As added by P.L.165-2021, SEC.91.

Ind. Code § 6-3.1-35.8-8 Expiration

Sec. 8. This chapter expires January 1, 2028. As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.7.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026