IndianaHB 1177Second Regular Session 124th General Assembly (2026)HouseWALLET

Child care assistance.

Sponsored By: Becky Cash (Republican)

Signed by Governor

Summary

Increases the maximum number of individuals an entity may employ to be eligible for the employer child care expenditure income tax credit. Provides that costs incurred: (1) for the operating costs of a child care facility operated for a taxpayer's employees; or (2) under a contract with a child care facility to provide child care services to employees of the taxpayer, or under a contract with an intermediate entity that contracts with one or more child care facilities for child care services; are qualified expenditures for purposes of the employer child care expenditure income tax credit. Allows a redevelopment commission to use revenue collected in a tax increment financing district to expend money or provide financial assistance to entities for the purpose of encouraging or incentivizing the construction or expansion of child care facilities.

ways and meansthe senatetax and fiscal policy

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

More employers qualify for childcare tax breaks

Retroactive to January 1, 2026, Indiana’s employer child care tax credit covers businesses with up to 500 employees, up from 100. Businesses must owe state tax and cannot have been in the child care business before making qualifying expenses. Facilities must meet federal Section 45F rules, be in Indiana, and hold an Indiana Division of Family Resources license. Employers no longer need to operate, jointly operate, or contract with the facility for it to qualify. Eligible expenses expand to include facility operating costs, staff training, scholarships, and higher pay tied to child care training. Employee care contracts, including those through intermediaries, and child care resource and referral contracts also qualify. The law also repeals the credit repayment rule for events within five years after the credit’s tax year ends.

Local funds can support childcare facilities

Beginning July 1, 2026, redevelopment districts can use local allocation funds to help child care facilities build, expand, or stay open. Facilities must be located in or serve the area covered by the fund. Help can include grants, loans, or direct spending, subject to existing funding restrictions and payment priorities. The money cannot cover the redevelopment commission’s operating costs. The law sets no funding amount and guarantees no payment to a facility or household.

Sponsors & Cosponsors

Sponsor

  • Becky Cash

    Republican • House

Cosponsors

  • Brett Clark

    Republican • Senate

  • Brian Buchanan

    Republican • Senate

  • Danny Lopez

    Republican • House

  • Ed Charbonneau

    Republican • Senate

  • Greg Goode

    Republican • Senate

  • Gregory Porter

    Democratic • House

  • Lindsay Patterson

    Republican • House

  • Lonnie Randolph

    Democratic • Senate

  • Ron Alting

    Republican • Senate

  • Vaneta Becker

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 156 • No: 63

Senate vote • 2/24/2026

Third reading: passed

Yes: 48 • No: 0

House vote • 2/2/2026

Third reading: passed

Yes: 80 • No: 0

House vote • 1/29/2026

Amendment #1 (Porter) failed

Yes: 28 • No: 63

Actions Timeline

  1. Signed by the Governor

    3/3/2026House
  2. Public Law 58

    3/3/2026House
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the Speaker

    2/26/2026House
  6. Returned to the House without amendments

    2/24/2026Senate
  7. Third reading: passed; Roll Call 237: yeas 48, nays 0

    2/24/2026Senate
  8. Senator Alting added as cosponsor

    2/24/2026Senate
  9. Senator Randolph added as cosponsor

    2/19/2026Senate
  10. Second reading: ordered engrossed

    2/19/2026Senate
  11. Committee report: do pass, adopted

    2/17/2026Senate
  12. Senator Becker added as cosponsor

    2/12/2026Senate
  13. First reading: referred to Committee on Tax and Fiscal Policy

    2/5/2026Senate
  14. Referred to the Senate

    2/3/2026House
  15. Senate sponsors: Senators Buchanan, Clark, Goode

    2/2/2026House
  16. Third reading: passed; Roll Call 172: yeas 80, nays 0

    2/2/2026House
  17. Cosponsor: Senator Charbonneau

    2/2/2026House
  18. Amendment #1 (Porter) failed; Roll Call 156: yeas 28, nays 63

    1/29/2026House
  19. Second reading: ordered engrossed

    1/29/2026House
  20. Committee report: do pass, adopted

    1/27/2026House
  21. Representative Lopez added as coauthor

    1/22/2026House
  22. Representative Porter added as coauthor

    1/8/2026House
  23. First reading: referred to Committee on Ways and Means

    1/5/2026House
  24. Authored by Representative Cash

    1/5/2026House
  25. Coauthored by Representative Patterson

    1/5/2026House

Bill Text

  • Enrolled House Bill (H)

  • House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

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