INDIANAPOLIS — Supporting Hoosier families is the goal of two bills filed in the Senate.
One would put more money in the pockets of Hoosiers with newborns.
"It's something that does make the state more competitive for families, especially families with young children to want to live here,” Brian Lohsl said.
Lohsl and his wife just had their daughter, Logan, five months ago. Lawmakers hope to help families like theirs through Senate Bills 115 and 497.
Senate Bill 497 would create a tax credit for families with newborns and those who have recently adopted.
It creates a refundable $500 tax credit for newborns and adoptive children. To be eligible for the credit, parents’ income must be below 720% of the federal poverty level about $225,000 annually for a family of four, according to the U.S. Department of Health and Human Services. Indiana currently has an enhanced additional child exemption for newborn and adoptive children being claimed for the first time of $1,500, which equates to $45 in tax relief. That's according to the Indiana Community Action Poverty Institute. The organization says this bill would repurpose that exemption into a more robust credit, enhancing the tax relief when parents welcome a new child from the current $45 to $500.
The bill has a $34 million price tag. However, a newborn tax credit is something Lohsl says would be a big help.
"With a tax credit, that would have been money that could have gone towards childcare or her diapers or her formula. That would have really been beneficial,” Lohsl said.
Democratic Senator Rodney Pol, of Chesterton, is the author of Senate Bill 115. It would require paid family leave for workers if they've just had a baby, fostered or adopted a child, and workers who are caring for a sick relative.
Pol feels this legislation could attract more workers to the state.
"You are 26% more likely to return to your job if you have this paid family leave,” Pol said. "It's a worthy investment both for employers and also for families."
Lohsl says these two pieces of legislation are encouraging.
"It proves that the state is thinking of all Hoosiers, not just those over 18,” Lohsl said.
Both bills have bi-partisan support, according to their sponsors. Both are waiting on a committee hearing.
