Indiana DOR Expands Employer Child Care Expenditure Credit

The Indiana Department of Revenue (DOR) has issued an informational bulletin implementing amendments to the Employer Child Care Expenditure Credit enacted under SEA 1177 (2026), effective for tax years beginning in 2026. The credit allows eligible employers to claim 50 percent of qualified child care expenditures, up to $100,000 per employer, subject to a $2.5 million statewide annual cap awarded on a first-come, first-served basis. Beginning in 2026, the employee threshold increases from 100 to 500 employees, and qualifying expenditures are expanded to include operating costs, training programs, scholarships, employee compensation, contracted services, and referral services. The amendments also simplify ...