HB 1306 increases Indiana’s income tax credit for teachers who buy classroom supplies with their own money. Under current law, the credit is capped at $100 per taxable year; the bill raises that cap to $300, while keeping the credit limited to the actual amount spent if that amount is lower. The bill defines classroom supplies by reference to the federal educator expense deduction and applies the credit only to individuals employed as teachers as defined in Indiana law.
The bill is retroactive to taxable years beginning after December 31, 2024, and it includes an emergency clause. It also states that any unused credit cannot be carried forward, carried back, or refunded, so the credit remains nonrefundable and limited to the taxpayer’s Indiana adjusted gross income tax liability. The bill would amend IC 6-3-3-14.5 and temporarily apply through June 30, 2027, unless extended or reenacted.
Impact
HB 1306 would directly amend Indiana’s tax code by increasing the maximum teacher classroom-supplies income tax credit from $100 to $300 per year. The change affects individual teachers who incur out-of-pocket expenses for eligible classroom supplies and reduces their adjusted gross income tax liability up to the new cap. Because the credit remains nonrefundable and nontransferable, the bill does not create a payment beyond tax liability, but it does increase the potential tax benefit for qualifying educators.
Sentiment
The available context suggests generally favorable treatment of the bill, as it is a targeted tax benefit for teachers and was introduced with bipartisan sponsorship. No committee testimony or recorded votes are provided, so there is no direct evidence of opposition or debate in the supplied materials. The bill’s emergency clause and retroactive effective date suggest an intent to deliver the increased benefit quickly and for the current tax year.
Contention
No specific points of contention are documented in the provided committee transcripts or vote history. Potential areas of policy debate, based on the bill text alone, would likely include the cost of expanding the credit, whether the increase should be larger or permanent, and whether a tax credit is the best way to support teachers compared with direct appropriations or reimbursements. However, the supplied record does not show any named opponents or formal objections.