Ind. Code ch. 6-3.1-21

Ind. Code ch. 6-3.1-21
in effect

Ind. Code § 6-3.1-21-1 Creation of credit

Sec. 1. This chapter creates the Indiana earned income tax credit. As added by P.L.273-1999, SEC.227.

Ind. Code § 6-3.1-21-6 Credit; amount; calculation; eligible persons; determination of taxpayer's earned income; cost of living adjustments under the Internal Revenue Code

Sec. 6. (a) Except as provided by subsections (b), (d), and (e), an individual who is eligible for an earned income tax credit under Section 32 of the Internal Revenue Code as in effect on January 1, 2023, is eligible for a credit under this chapter equal to ten percent (10%) of the amount of the federal earned income tax credit that the individual: (1) is eligible to receive in the taxable year; and (2) claimed for the taxable year; under Section 32 of the Internal Revenue Code as in effect on January 1, 2023. (b) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year, the amount of the credit is equal to the product of: (1) the amount determined under subsection (a); multiplied by (2) the quotient of the taxpayer's income taxable in Indiana divided by the taxpayer's total income. (c) If the credit amount exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the excess shall be refunded to the taxpayer. (d) If a taxpayer properly elects to determine the taxpayer's earned income in accordance with the federal Bipartisan Budget Act of 2018 for purposes of the credit under Section 32 of the Internal Revenue Code for a taxable year beginning after December 31, 2016, the election shall be treated as being made for purposes of the credit under this chapter. (e) The minimum earned income amounts and phaseout threshold amounts for the credit under this section are subject to the same cost of living adjustments provided in the Internal Revenue Code. As added by P.L.273-1999, SEC.227. Amended by P.L.192-2002(ss), SEC.114; P.L.131-2008, SEC.17; P.L.146-2008, SEC.325; P.L.1-2009, SEC.52; P.L.229-2011, SEC.87; P.L.242-2015, SEC.23; P.L.214-2018(ss), SEC.11; P.L.168-2021, SEC.1; P.L.201-2023, SEC.100.

Ind. Code § 6-3.1-21-8 Claim for credit on return; submission of information

Sec. 8. To obtain a credit under this chapter, a taxpayer must claim the credit in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue all information that the department of state revenue determines is necessary for the calculation of the credit provided by this chapter. As added by P.L.273-1999, SEC.227. Amended by P.L.192-2002(ss), SEC.115; P.L.172-2011, SEC.65; P.L.242-2015, SEC.24.

Ind. Code § 6-3.1-21-9 Application of credit to TANF

Sec. 9. (a) The division of family resources shall apply the refundable portion of the credits provided under this chapter as expenditures toward Indiana's maintenance of effort under the federal Temporary Assistance for Needy Families (TANF) program (45 CFR 265). (b) The department of state revenue shall collect and provide the data requested by the division of family resources that is necessary to comply with this section. As added by P.L.273-1999, SEC.227. Amended by P.L.145-2006, SEC.17; P.L.1-2009, SEC.53.

Ind. Code § 6-3.1-21-10 Repealed

As added by P.L.273-1999, SEC.227. Amended by P.L.291-2001, SEC.152; P.L.192-2002(ss), SEC.116; P.L.246-2005, SEC.74. Repealed by P.L.146-2008, SEC.817.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026