SB 497 Indiana Senate · 2025 Regular Session

Tax credit for newborn children.

Summary

Establishes a tax credit for newborn children, which an eligible taxpayer may claim only in the first taxable year in which a particular newborn child is eligible for the exemption allowed under specified provisions of the Internal Revenue Code. Defines "eligible taxpayer". Provides that the amount of the credit is $500 per newborn child, or $250 per eligible newborn child in the case of a married individual filing a separate return. Prorates the credit in the case of a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year. Limits the total amount of credits that may be awarded in a calendar year to $10,000. Provides for the expiration of the credit.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 14, 2025 Last action Mar 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Senate Bill (S) → Senate Bill (H) · 5 edits

MODERATE

SB 497 was amended from an introduced version to a Senate version with several substantive changes including the addition of a $10,000 annual cap on tax credits, an expiration date of December 31, 2027, and a sunset provision for the enabling section. The bill now explicitly adds a new chapter to the Indiana Code rather than just amending existing sections, and includes more detailed definitions for eligible newborn children and taxpayers.

Scope change

The bill's scope expanded to include a new chapter in the Indiana Code with specific expiration dates and a total annual credit limit, making the program more structured and time-limited.

FISCAL

Added a $10,000 annual cap on the total tax credits that can be awarded in any calendar year, with credits processed on a first-come, first-served basis.

TIMELINE

Added an expiration date of December 31, 2027 for the tax credit chapter itself, and July 1, 2028 for the enabling section.

DEFINITION

Added specific definitions for 'eligible newborn child' and 'eligible taxpayer' with income thresholds based on 720% of the federal poverty level.

TECHNICAL

Changed the bill structure from amending existing IC 6-3-1-3.5 to adding a new chapter IC 6-3.1-42, with more detailed section organization.

ENFORCEMENT

Added provisions requiring the department to track credit claims chronologically and deny additional credits once the $10,000 cap is reached.

Floor votes · Senate Feb 20, 2025

How they voted

47–0

Passed · 3 other

Total votes 50

Feb 20, 2025

D Democratic10

8 Yea 2

80% Yea

R Republican40

39 Yea 1

97% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2025

Upper · Passed

Third reading: passed; Roll Call 207: yeas 47, nays 0

upper

Feb 11, 2025

Upper · Passed

Committee report: amend do pass, adopted

upper

4 primary · 15 co-sponsors