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Bill Summary · SB 395

Legislative bill overview

SB 395 proposes modifications to Indiana's child and dependent care tax credit, a tax benefit that helps working families offset costs for childcare and dependent care expenses. The bill was recently introduced and referred to the Tax and Fiscal Policy Committee for initial review. Specific details about what changes are being proposed are not yet publicly available in standard legislative databases.

Why is this important

Child and dependent care tax credits directly affect working parents' household budgets and can influence labor force participation, particularly among secondary earners. Changes to these credits impact state revenue, family affordability, and potentially economic competitiveness for attracting and retaining working families in Indiana.

Potential points of contention

  • Income eligibility thresholds: Disputes may arise over whether credit limits should favor lower-income families versus broader middle-class access
  • Credit amount and structure: Debate over whether to increase/decrease the credit percentage or maximum benefit amount, affecting fiscal impact
  • Dependent definitions: Questions about who qualifies (age limits, relationship status, care provider requirements) that could expand or restrict eligible families

Compiled from official sources — confirm details with the bill’s official record.

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