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Bill Summary · HB 1378

Legislative bill overview

HB 1378 proposes to establish or modify child care tax credits in Indiana, allowing families to claim tax benefits for child care expenses. The bill was introduced in January 2026 and is currently in the House Ways and Means Committee for initial review. Specific provisions have not yet been publicly detailed at this early legislative stage.

Why is this important

Child care costs represent a significant financial burden for working families, often consuming 10-30% of household income. Tax credits can improve affordability and potentially increase workforce participation, particularly among lower and middle-income families. The policy also reflects broader state priorities regarding family support and economic competitiveness in attracting and retaining workers.

Potential points of contention

  • Cost and funding: Tax credits reduce state revenue; legislators may debate whether the fiscal impact is justified or if funds should address child care supply directly instead
  • Income eligibility limits: Disagreement likely over whether credits should benefit higher-income families or be targeted primarily to low-to-moderate income households
  • Credit structure: Questions may arise about whether credits should be refundable (providing money back to families earning little) versus non-refundable, and appropriate claim amounts

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

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