Indianapolis

Indiana Rep. Smaltz Champions Bill to Expand Child Care Tax Credits for Businesses

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Published on February 10, 2026
Indiana Rep. Smaltz Champions Bill to Expand Child Care Tax Credits for BusinessesSource: Indiana House Republicans

State Rep. Ben Smaltz (R-Auburn) is advancing House Bill 1177, which would expand the state’s employer child care tax credit. The bill would allow businesses with up to 500 employees that provide child care services—either in-house or through third parties—to claim credits for operating costs, staff wages, and employee training.

Smaltz said rising child care costs make new support measures necessary. He explained that House Bill 1177 would strengthen incentives for employers to provide child care, helping working families access affordable, reliable services while supporting local economic growth, according to Indiana House Republicans.

House Bill 1177 would also allow local redevelopment commissions to use tax increment financing revenues to build, expand, or maintain child care facilities. The measure is intended to support child care infrastructure for Hoosier families.

Updates and information on the bill are available at iga.in.gov. If enacted, the legislation would expand child care access for Hoosier families.