Budget & Taxes

Provides for an annual cost of living adjustment (COLA) for participants of the prosecuting attorneys retirement fund based on the percentage increase in the Consumer Price Index.

Prohibits an Indiana governmental entity from making a payment from any fund under its control for the costs associated with procuring an abortion, including travel expenses, unless the abortion is necessary to preserve the life of the pregnant woman. Specifies that the prohibition does not apply to a payment made by an Indiana governmental entity to provide group health insurance for employees of the Indiana governmental entity.

Provides for a thirteenth check in calendar year 2026 for certain members, participants, or beneficiaries of the: (1) Indiana state teachers' retirement fund; (2) Indiana public employees' retirement fund; (3) state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan; (4) state police pre-1987 benefit system; and (5) state police 1987 benefit system.

Establishes the digital alert pilot program (pilot program) administered by the department of homeland security (department) to provide grants to providers of fire, emergency medical, and law enforcement services for the use of digital alert technology to notify motorists regarding the location of providers' emergency vehicles. Establishes the digital alert pilot program grant fund. Requires the secretary of public safety and the executive director of the Indiana criminal justice institute to provide a plan to the department not later than September 1, 2026, for leveraging available federal funds to fund the pilot program.

Provides a sales tax exemption for the sale or furnishing of the following services or commodities by a power subsidiary or a person engaged as a public utility to a person for commercial or domestic consumption: (1) Electrical energy. (2) Natural or artificial gas. (3) Water. (4) Steam. (5) Steam heating service. Makes conforming amendments.

Sets forth additional requirements for a nonprofit hospital's community benefits plan (plan). Requires a nonprofit hospital to spend more under the nonprofit hospital's plan than the nonprofit hospital's estimated tax exemption value. Allows the Indiana department of health (state department) to enforce compliance with the plan requirements. Sets forth additional reporting requirements for a nonprofit hospital's annual plan report (report). Requires the state department to review the report for compliance and to verify certain reported expenditure data. Allows for the assessment of a penalty for violations.

Permits the use of cannabis by: (1) a person at least 21 years of age; and (2) a person with a serious medical condition as determined by the person's physician. Establishes the adult use cannabis excise tax, and requires a retailer to transfer the tax to the department of state revenue for deposit in the state general fund. Exempts veterans from payment of the sales tax on medical or adult use cannabis. Establishes a cannabis program (program) to permit the cultivation, processing, testing, transportation, and sale of cannabis by holders of a valid permit. Establishes the Indiana cannabis commission (ICC) as a state agency to oversee, implement, and enforce the program, and establishes the ICC advisory committee to review the effectiveness of the program. Requires that permit holders take steps to prevent diversion of cannabis to unauthorized persons. Requires that cannabis and cannabis products be properly labeled, placed in child resistant packaging, and tested by an independent testing laboratory before being made available for purchase. Prohibits packaging cannabis in a manner that is appealing to children. Authorizes research on cannabis in accordance with rules set forth by the ICC. Establishes a procedure for the expungement of a cannabis related conviction if the act constituting the conviction becomes legal. Makes conforming amendments.

Expires various property tax exemptions allowed in current law. Provides that certain property tax abatements may not be granted after December 31, 2030. Authorizes a county fiscal body to adopt an ordinance that exempts certain homesteads owned by an individual who is at least 65 years of age from property taxation. Makes corresponding changes.

Requires the Indiana economic development corporation (IEDC) to commit $35,000,000 in redevelopment tax credits each state fiscal year among development authorities, qualified nonprofit organizations, and certain local economic development organizations that may be granted to taxpayers for qualified investments. Provides that the IEDC and an operating partner shall administer the federal Unmanned Aircraft System Test Site program in Indiana. Requires that $15,000,000 of the $300,000,000 of the IEDC's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Amends the venture capital investment tax credit (tax credit) to specify: (1) that certain investment policies of funds that qualify as a "qualified Indiana investment fund" apply only to investable capital, excluding management fees, legal fees, and other expenses incurred in the operation of the fund; (2) that a taxpayer is not prevented from combining individual tax credits of less than $10,000 for assignment; and (3) qualified business eligibility. Provides that if a Level 2 certified technology park (park): (1) has reached the limit of deposits for a Level 2 park; (2) maintains its certification; and (3) is located within a qualified military base enhancement area; the park shall become a Level 3 park and may receive an additional annual incremental income tax deposit of up to $250,000 until July 1, 2029.

Prohibits a school corporation, public school, governing body of a school corporation, or state educational institution from spending public funds to: (1) hire or contract with, for the purpose of lobbying a member of the general assembly, a person required to register as a lobbyist; or (2) pay a nonprofit association or organization that: (A) primarily represents school corporations, public schools, governing bodies, or state educational institutions; and (B) hires or contracts with a person required to register as a lobbyist. Provides that a taxpayer or resident of Indiana may bring a civil action for a violation of the prohibited conduct. Provides that a school corporation may not convert a scheduled instructional day to virtual instruction because of the planned or coordinated absence of teachers or other personnel for the purpose of participating in a protest, demonstration, or political advocacy event. Provides that a school corporation that violates this provision is subject to a reduction in state tuition support for each day of violation. Provides that a school employer may not deduct any dues, fee, assessment, or other sum of money from the wages or other earnings of an employee to hold for or pay to a school employee organization. Repeals provisions regarding certain deductions of dues from pay by school employers.