House Republicans block debate on Porter proposal for Child and Dependent Care Tax Credit

INDIANAPOLIS – State Representative Gregory W. Porter (D-Indianapolis) attempted to offer a proposal yesterday (Jan. 23, 2020) for a child and dependent care tax credit to help ease the cost of child care for working Hoosier families. The proposal, Amendment 2 to House Bill 1059, was blocked by House Republicans from debate on the Indiana House floor.

“House Republicans say they care about the people of our state but the fact that they wouldn’t let me offer a proposal that would invest in our human capital tells a different story,” said Porter.

“This child and dependent care tax credit would make it easier for parents or guardians to remain in the workforce without putting too much stress on the family budget. I hope that the hardworking families across our state, who are spending, on average, close to $9,000 per year on child care for each child, are paying close attention to who is working to support them and give them economic relief.”

Porter’s proposal, like the current federal tax credit, is inversely correlated to the family’s income – the more money they make, the less they can receive as a credit. Hoosiers would receive 100 percent of the tax credit if their adjusted gross income is less than $40,000; 75 percent if their income is greater than $40,000 and not more than $60,000; 50 percent if their income is greater than $60,000 and not more than $80,000; 25 percent if their income is greater than $80,000 and not more than $100,000.

“If they’re getting the federal tax credit, that means they’re eligible for the state tax credit,” Porter said. “And it’s a portion of that. They may get a few hundred dollars back, or several hundred dollars back, depending on their income and how much they’re paying.”

This isn’t the first time House Democrats have tried to get a child and dependent care tax credit signed into law. Last year, State Rep. Carey Hamilton (D-Indianapolis) authored and State Rep. Lisa Beck (D-Lakes of the Four Seasons) co-authored House Bill 1288, which was what Porter’s proposal was based on. House Bill 1288 died in the House Ways and Means Committee. 24 states have a child and dependent care tax credit.