The credit given for 529 fund contributions is not a refundable tax credit. That means once your tax liability has been reduced to $0, you will not get any further credit for the contribution.
In your case, the amount of tax you owe is less than $1,000. Your credit is limited to the amount of taxes you owe (as reported on line 8 on the IT-40.)
See pages 2 and 3 of the State of Indiana Information Bulletin.
http://www.in.gov/dor/files/ib98.pdf
