INDIANAPOLIS (AP) – Indiana taxpayers will receive a $111 credit on their state income tax returns next year as the state distributes part of its budget surplus.

Gov. Mitch Daniels on Wednesday announced the credit that will be $222 for couples filing joint returns. The credit represents the automatic taxpayer refund plan that Daniels pushed through the state Legislature last year.

That refund kicked with the state’s reserves reaching about $2.1 billion. The governor’s office says about $360 million will go toward the tax credits, with another $360 million to the state’s pension liabilities.

Daniels says including the credit on tax returns is simpler and less expensive than mailing out additional checks.

Critics argue that Daniels created the surplus by cutting money for public schools, the child welfare agency and other important services.
Daniels pushed through the state Legislature last year.