Tax Credit Legislation
Although SB 260 cleared the Senate, it did not receive a hearing in the House Ways & Means Committee and the bill died. We would like to thank the bill authors, Senator Brian Buchanan, Senator Justin Busch and Senator Linda Rogers, Co-Authors Senator Lonnie Randolph, Senator Shelli Yoder, and Senator John Crane and House Sponsors, Representative Bob Cherry, Representative Kendell Culp, Representative Carey Hamilton and Representative Renee Pack.
At this time, we encourage our members to continue to promote the great things your foundations are doing to enrich public education and create awareness that these opportunities for Indiana students would not be possible without foundation funding. We also encourage you to include your representative on your foundation eNewsletter lists, invite them to events, attend their local legislative advocacy events, and follow them on social media (hopefully they'll follow you back!).
Thank you to all our members who called, wrote letters, and encouraged your board members and school leaders to do the same.
HB SB260 has been assigned to the House Ways and Means Committee. Unfortunately, in order to increase our chances of clearing the senate, the maximum amount of credits in a fiscal year was lowered from $5mil to $100K. We are now asking members to reach out to the House Ways and Means committee and let them know you would like this bill to be heard, and to be impactful, raise the limit back to $5mil from $100,000. A sample email can be found here. Additionally, an easy-to-copy excel list of email addresses for the House Ways and Means Committee can be found here.
Please reach out to the House Ways and Means committee members listed below directly. I would also request if any of these members are in your district, that you request your board members and superintendents reach out directly as well! Don’t be afraid to ask friends and family to connect with their Reps as well! If you are unsure, Find Your Legislator here.
Chair: Representative Jeffrey Thompson - email@example.com - portions of Hendricks, Boone and Montgomery counties.
Co: Chair Representative Robert Cherry - firstname.lastname@example.org - includes portions of Hancock and Madison counties
Representative Edward Clere - email@example.com - most of Floyd County, including New Albany, Floyds Knobs and Georgetown
Representative Robert Heaton - firstname.lastname@example.org - includes all of Owen County, and portions of Clay, Monroe and Vigo counties
Representative Dave Heine - email@example.com - includes a portion of Allen County
Representative Beau Baird - firstname.lastname@example.org - includes all of Putnam County and a portion of Montgomery County
Representative Ben Smaltz - email@example.com - includes all of DeKalb County, and portions of Noble and Steuben counties
Representative Chuck Goodrich - firstname.lastname@example.org - includes a portion of Hamilton County
Representative Jack Jordan - email@example.com - includes all of Fulton County, and portions of Marshall and Pulaski counties
Representative Chris Judy - firstname.lastname@example.org - includes a portions of Allen and Whitley counties
Representative Lorissa Sweet - email@example.com - includes Huntington County, and portions of Miami, Wabash and Wells counties
Representative Peggy Mayfield - firstname.lastname@example.org - includes portions of Johnson, Morgan and Monroe counties
Representative Timothy O'Brien - email@example.com - consists of portions of Vanderburgh and Warrick counties
Representative J.D. Prescott - firstname.lastname@example.org - includes Randolph, Blackford and portions of Jay, Henry and Delaware counties
Representative Elizabeth Rowray - email@example.com - includes portions of Delaware and Madison counties
Representative Harold Slager - firstname.lastname@example.org - includes a portion of Lake County in northwest Indiana
Representative Gregory Porter - email@example.com - includes areas of Marion County
Representative Chris Campbell - firstname.lastname@example.org - includes areas of West Lafayette, Lafayette and Tippecanoe County
Representative Edward DeLaney - email@example.com - includes areas of Marion County
Representative Mike Andrade - firstname.lastname@example.org - includes areas of Marion County
Representative Earl Harris - email@example.com - includes areas of East Chicago, Gary, Whiting and Hammond
Representative Sheila Klinker - firstname.lastname@example.org - serving parts of both Lafayette and West Lafayette
Representative Tonya Pfaff - email@example.com - includes areas of Terre Haute and Vigo County
Representative Cherrish Pryor - firstname.lastname@example.org - includes areas of Marion County
Representative Craig Snow - email@example.com - includes portions of Kosciusko and Wabash
SB260 received a 3rd reading in the Senate and passed with 46 yeas, one nay, and one excused. The bill now advances to the House. Senator Crane has been added as a co-author. The House sponsor is Representative Cherry, and Representative Culp has been added as a co-author.
The process now repeats in the House. The House must act on the bill, otherwise the bill “dies.“ If action is taken, the bill must pass through First Reading, Committee, Second Reading and Third Reading. The bill can “die” at any step of the way. At the same stages as in the Senate process, as long as the bill continues to advance, amendments may be proposed and accepted.
SB 260 called for 2nd Reading. No Amendments, no discussion. It is now eligible for a third reading. At this stage of the process, legislators may debate the bill's merits. During third reading, a roll call vote is taken. A constitutional majority in either chamber is required for the bill to pass: 51 or more votes in the House, 26 or more in the Senate. Fewer votes than this results in the rejection of the bill in the originating chamber.
Senators Randolph and Yoder have been added as coauthors, Senator Rogers added as a third author. The bill was amended and the maximum amount of credits that may be awarded in a state fiscal year was lowered from $5,000,000 to $100,000.
Thank you to the legislative committee, INAPEF partners organizations: ICPE, ISTA, ISRSA, and ISBA, and members who showed up today in support of SB 260. The bill was held. We are hopeful it will be revised and heard again soon.
With that in mind, we are once again encouraging members, friends, school boards, teachers, superintendents and anyone else who advocates for public ed, to take time today to email and/or call your local lawmakers, as well as the Senate Tax & Fiscal Policy Committee today to voice your support. We encourage you to let them know how education foundations are personally impacting you schools and communities. If we receive any updates on this bill, SB 260 or HB 1019, we will notify members.
Senate Tax & Fiscal Policy Committee Contacts Listed in Update Below (1/4/23)
We have a hearing scheduled for SB 260 THIS TUESDAY, February 7th at 9:30 a.m. We need people to testify, show up for the hearing, and/or email the committee in support of this!
Tuesday, February 7th 9:30 a.m.
Committee Room 431
200 W Washington St
Indianapolis, IN 46204
Committee Hearing for SB 260 in the Senate Tax and Fiscal Policy Committee
SB 260 State tax credit for public school foundation. Provides a 25% state tax credit for contributions made to a public school foundation for taxable years beginning after December 31, 2023, and before January 1, 2026. Provides that the amount allowable as a credit in a taxable year may not exceed: (1) $1,000 in the case of an individual filing a single return or a corporation; or (2) $2,000 in the case of a married couple filing a joint return. Provides that the maximum amount of credits that may be awarded in a state fiscal year may not exceed $5,000,000.
Please reach out to the committee members listed below directly, I would also request if any of these members are in your district, that you request your board members and superintendents reach out directly as well! If you are unsure, Find Your Legislator here.
Chair: Travis Holdman. Senator.Holdman@iga.in.gov
Sen. Travis Holdman Senator.Holdman@iga.in.gov Adams, Blackford, Jay and Wells counties and a portion of Allen County
Sen. Scott Baldwin. - Senator.Baldwin@iga.in.gov Portions of Hamilton County
Sen. Brian Buchanan - Senator.Buchanan@iga.in.gov Clinton County and portions of Boone, Hendricks and Montgomery counties
Sen. Ed Charbonneau - Senator.Charbonneau@iga.in.gov Pulaski and White counties, and portions of Jasper and Porter counties
Sen. Mike Gaskill - Senator.Gaskill@iga.in.gov Madison County and portions of Hamilton County
Sen. Ryan Mishler - Senator.Mishler@iga.in.gov Portions of Elkhart, Kosciusko, Marshall and St. Joseph counties
Sen. Rick Niemeyer - Senator.Neimey@iga.in.gov Benton and Newton counties, and portions of Lake and Jasper counties
Sen. Linda Rogers - Senator.Rogers@iga.in.gov Portions of Elkhart and St. Joseph counties
Sen. Kyle Walker - Senator.Kyle.Walker@iga.in.gov Bartholomew county and a portion of Johnson county
Sen. Greg Walker - Senator.Greg.Walker@iga.in.gov Bartholomew county and a portion of Johnson county
Sen. Fady Qaddoura - firstname.lastname@example.org. Northside of Indianapolis including portions of Washington, Pike and Lawrence Townships.
Sen. Eddie Melton - email@example.com. Communities include Gary, Lake Station, New Chicago, Hobart, Ainsworth, Merrillville and Crown Point
Sen. David Niezgodski - firstname.lastname@example.org. Portions of St. Joseph County including South Bend and New Carlisle
Sen. Lonnie Randolph - email@example.com. Communities include East Chicago, Whiting, Munster, Hammond, and portions of Highland.
We appreciate everyone who has advocated this year for these tax credits already, keep up the good work! Please let me know ASAP if you can attend and/or testify on Tuesday, so the Legislative Committee can plan accordingly.
The legislative committee, chaired by Cyrilla Helm, Executive Director, Foundation of Monroe County Schools, and Jane Nichols, Executive Director, Vigo County Schools Education Foundation, is excited to report that three tax credit bills have been introduced in the 2023 Legislative Session have been assigned to a committee. In the Senate, both bills, SB 257 & SB 260 have been assigned to the Tax and Fiscal policy and in the House, HB 1019 has been assigned to Ways and Means. Please find below, summaries of each bill:
SB 257 (Senator Yoder): Provides a 50% state tax credit for contributions made to a public school foundation for taxable years beginning after December 31, 2023, and before January 1, 2026. Provides that the amount allowable as a credit in a taxable year may not exceed: (1) $1,000 in the case of an individual filing a single return or a corporation; or (2) $2,000 in the case of a married couple filing a joint return. Provides that the maximum amount of credits that may be awarded in a state fiscal year may not exceed $5,000,000.
SB 260 (Senators Buchanan and Busch): State tax credit for public school foundation. Provides a 25% state tax credit for contributions made to a public school foundation for taxable years beginning after December 31, 2023, and before January 1, 2026. Provides that the amount allowable as a credit in a taxable year may not exceed: (1) $1,000 in the case of an individual filing a single return or a corporation; or (2) $2,000 in the case of a married couple filing a joint return. Provides that the maximum amount of credits that may be awarded in a state fiscal year may not exceed $5,000,000.
HB1019 (Representatives Hamilton and Cherry): Education foundation tax credit. Provides for an adjusted gross income tax credit for donations to a public school foundation. Provides that the maximum individual taxpayer credit is $1,000 in the case of a single return or $2,000 in the case of a joint return. Provides that the maximum corporate taxpayer credit is greater of 10% of the corporation's total adjusted gross income tax liability or $5,000.
Members – It is time to start writing to the committee chairs with our support of the bills and request a hearing. Hopefully, some encouragement will help the bills get a hearing. You may remember, the Senate approved this in the 2021 session year, but the bill failed to receive a hearing in the house and the bill died. This legislation will greatly impact K-12 Education; it impacts student learning while helping grow the footprint of education foundations in Indiana.
This letter was sent from INAPEF to all lawmakers and can be edited to fit your needs. This can also be found in the online Member Resource Library under Advocacy. Also attached for your convenience, is a copy of the legislative committee’s presentation about the history of INAPEF’s tax credit efforts, which was presented by the committee at the INAPEF Annual Conference in November.
In addition to sending your own letters, please encourage your board members, teachers, friends, and family to send letters and/or emails. If you are concerned from a legal standpoint, regarding advocating on behalf of your charitable foundation, the IRS states: In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.
Please also encourage your superintendent to make phone calls to your local representatives!
DO NO HESITATE - ACT TODAY! We do not want this bill to die in committee! The legislative committee truly believes this year is the best chance we have had, to get this proposed legislation turned into a law!
Lawmaker Email Addresses:
Senate bills 257 and 260 (the same BUT 257 asks for 50% tax credit) assigned to Tax and Fiscal Policy
Chair Sen Travis Holdman Senator.Holdman@iga.in.gov
260 Author Sen Buchanan Senator.Buchanan@iga.in.gov
260 Author Sen Busch. Senator.Busch@iga.in.gov
257 Author Sen Yoder firstname.lastname@example.org
House bill 1019 assigned to Ways and Means
Chair Rep. Thompson - email@example.com
Author Rep. Cherry – firstname.lastname@example.org
Author Rep Hamilton - email@example.com
Letter to Indiana Lawmakers
INAPEF has been pursuing legislation that allows tax credits for public education foundations. Our legislative committee is hard at work meeting with state lawmakers to have the bill authored and ensure it receives a hearing in 2023. In October, a letter was sent to all 150 Indiana lawmakers detailing why a tax credit is needed and how it will impact our schools.
What is a Tax Credit?
According to the IRS website, "tax credits provide a dollar-for-dollar reduction of your income tax liability." This means that a $1,000 tax credit saves you $1,000 in taxes.
On the other hand, tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For instance, if you are in the 25% tax bracket, a $1,000 deduction saves you $250 in tax.
Tax Credits vs Tax Deductions
Tax credits is differ from tax deductions. A tax credit is always worth more than an dollar-equivalent tax deduction, because deductions are calculated using percentages. Referring to the numbers on the left, you can see that a $1,000 credit offers $750 more in savings than a $1,000 deduction."
How Tax Credits Benefit your Foundation
Being able to offer tax credits could increase the donation amounts you receive and bring in new donors who are interested in lowering their income tax liability. There are donors who specifically seek tax credit opportunities because of the additional savings that they provide.