Budget & Taxes

in committee · Indiana · House Jan 6, 2026

HB 1331: School scholarship tax credits.

Increases the percentage of the contribution allowed to be claimed for the school scholarship tax credit (tax credit) from 50% to 75%. Allows taxpayers that commit to making a contribution of at least the same amount for at least two consecutive years to claim the tax credit in an amount equal to 90% of the amount of the contribution. Increases the total amount of tax credits that may be awarded for a state fiscal year from $18,500,000 to $80,000,000. Provides a calculation for an annual increase of the total amount of tax credits for future state fiscal years based on the tax credit's usage. Expands the definition of "participating school" for purposes of the certification of scholarship granting organizations by removing language providing for accreditation and administration of tests under the statewide assessment program or other norm-referenced assessment of the school's students. Requires the receipt prescribed by the department of state revenue for use in an agreement to be a scholarship granting organization to include whether a taxpayer commits to making contributions of at least the same amount for at least two consecutive years.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit percentages (50%→75%) and funding cap ($18.5M→$80M) for school scholarships, directly expanding tax relief and education funding under Budget & Taxes.92% confidence ✓ EducationSupports EducationIncreases tax credit percentage for school scholarships and raises annual funding cap from $18.5M to $80M, expanding access to education savings accounts.95% confidence

Sub-Topics Revenue Tax Credits School Choice Student Financial Aid Testing & Assessment

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in committee · Indiana · Senate Jan 8, 2026

SB 218: Circuit breaker credits for homesteads.

Authorizes the fiscal body of a county, city, or town (municipality) to reduce its homestead property tax cap. Requires the reduced property tax cap to apply only in determining the net property tax revenue of the municipality that adopted it and not to any other taxing unit within the taxing district. Authorizes a municipality that has adopted a reduced homestead property tax cap to adopt any of the following local option taxes, either singly or in combination, the revenue from which must be used as property tax replacement revenue due to the reduced homestead property tax cap: (1) Local option sales tax. (2) Supplemental local income tax. (3) Supplemental innkeeper's tax. (4) Supplemental food and beverage tax. Makes conforming changes and removes obsolete provisions. Makes an appropriation.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes reduced homestead property tax caps for municipalities, providing direct tax relief to homeowners and aligning with tax relief indicators for middle/lower income.90% confidence ✓ HousingSupports HousingBill reduces homestead property tax caps, lowering costs for homeowners and increasing housing affordability for owner-occupants, a subset of housing policy.75% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives Property Taxes

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in committee · Indiana · House Jan 22, 2026

HB 1344: Funding of prosecuting attorney operations.

Establishes the public prosecution fund and a prosecuting attorney compensation fee (a court fee) of $10 for certain actions and $50 for certain actions which will be deposited in the state general fund. Provides that a county may be reimbursed for certain prosecutorial expenses from the fund, unless the prosecuting attorney in the county is a noncompliant prosecuting attorney. Requires the Indiana prosecuting attorney's council to set standards for reimbursement.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates court fees ($10/$50) deposited into state general fund, establishing dedicated funding for prosecutorial operations and reimbursement standards, promoting fiscal management.95% confidence

Sub-Topics State Budget

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in committee · Indiana · House Jan 5, 2026

HB 1225: Certified technology parks.

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 upon reaching its Level 2 deposit limit. Provides that a Level 3 park may receive an additional annual incremental income tax deposit of up to $250,000.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables $250,000 annual tax increment deposit for Level 3 technology parks, expanding tax revenue mechanism under Tax Increment Financing (TIF) for economic development.95% confidence ✓ TechnologySupports TechnologyProvides tax incentives for technology parks, funding tech infrastructure development through incremental income tax deposits.90% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · Indiana · House Jan 5, 2026

HB 1168: Property tax exemption for qualified veterans.

Provides a property tax deduction for an individual, or the surviving spouse of an individual, who has been rated by the United States Department of Veterans Affairs as individually unemployable.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for veterans, reducing tax burden for lower-income veterans per VA disability rating.90% confidence ✓ VeteransSupports VeteransProvides direct property tax deduction for veterans rated individually unemployable by VA, expanding financial benefits for qualifying veterans and their spouses.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Benefits Veteran Employment Veteran Housing

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signed · Indiana · House Mar 3, 2026

HB 1177: Child care assistance.

Increases the maximum number of individuals an entity may employ to be eligible for the employer child care expenditure income tax credit. Provides that costs incurred: (1) for the operating costs of a child care facility operated for a taxpayer's employees; or (2) under a contract with a child care facility to provide child care services to employees of the taxpayer, or under a contract with an intermediate entity that contracts with one or more child care facilities for child care services; are qualified expenditures for purposes of the employer child care expenditure income tax credit. Allows a redevelopment commission to use revenue collected in a tax increment financing district to expend money or provide financial assistance to entities for the purpose of encouraging or incentivizing the construction or expansion of child care facilities.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility for employer child care costs, providing tax relief to businesses under tax policy, directly advancing tax credit programs.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit for employer child care supports employee retention and benefits, aligning with employment standards by reducing workforce barriers.85% confidence

Sub-Topics Government Spending Income Tax Tax Credits

in committee · Indiana · House Jan 13, 2026

HB 1397: Redevelopment tax credits.

Provides that $50,000,000 of the $300,000,000 of the Indiana economic development corporation's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that the purpose of the initiative is to undertake qualified community projects within local government units that have a project budget of at least $15,000,000 per project to do the following: (1) Advance historic preservation. (2) Redevelop or rehabilitate distressed buildings or underutilized property. (3) Redevelop or rehabilitate sites where distressed buildings once stood. Allows a redevelopment tax credit for: (1) a for-profit taxpayer undertaking a qualified community project under the initiative equal to 20% of the taxpayer's cost of the project; and (2) a nonprofit taxpayer undertaking a qualified community project under the initiative equal to 30% of the taxpayer's cost of the project. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Provides for certain items that are included in a nonprofit taxpayer's qualified investment.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $50M tax credits for redevelopment projects, using tax incentives to fund community initiatives per IEDC's tax credit framework.90% confidence

Sub-Topics Tax Credits Tax Incentives Tags Economic Development

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in committee · Indiana · House Jan 5, 2026

HB 1219: Prekindergarten program enrollment.

Amends the definition of "eligible child" for purposes of the prekindergarten program (program). Removes provisions regarding the program that require: (1) the office of the secretary of family and social services to determine the number of eligible children who will participate in the program; and (2) a percentage of matching funds from other sources. Establishes the prekindergarten expansion grant fund to provide grants to potential eligible providers and existing eligible providers. Makes a continuous appropriation to the prekindergarten program fund from the state general fund in an amount sufficient to carry out the purposes of the fund. Makes an appropriation to the prekindergarten expansion grant fund from the state general fund. Repeals certain provisions regarding the definitions of "eligible child", "extended enrollment period", "limited eligibility child", "priority enrollment period", "child care employee", and "child of a child care employee". Repeals or removes provisions regarding prekindergarten vouchers for limited eligibility children and children of child care employees. Makes conforming changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes Prekindergarten Expansion Grant Fund for state-funded program, directly increasing budget allocation under Budget and Appropriations subject.95% confidence

Sub-Topics Appropriations State Budget

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in committee · Indiana · House Jan 5, 2026

HB 1169: College savings tax credit.

Beginning in taxable year 2027, increases the credit provided for a contribution to an Indiana529 savings plan against a taxpayer's adjusted gross income from $1,500 to $2,500 (and from $750 to $1,250 in the case of a married individual filing a separate return), subject to other requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit for 529 plans, providing tax relief for education savings, directly advancing tax policy through expanded credits.95% confidence ✓ EducationSupports EducationIncreases tax credit for 529 college savings plans, directly supporting higher education affordability and access through financial assistance.95% confidence

Sub-Topics Tax Credits Higher Education

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in committee · Indiana · House Jan 12, 2026

HB 1187: Property tax credits for veterans.

Increases the property tax deduction for a veteran who is totally disabled to an amount equal to 100% of the assessed value of the individual's real property (instead of $14,000). Expires property tax deductions for certain veterans, and, beginning with property taxes imposed for the 2026 assessment date and thereafter, instead provides a property tax liability credit against local property taxes for veterans who previously claimed a deduction. Includes a mechanism to establish an additional maximum property tax liability credit for a veteran who previously claimed a deduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax relief for disabled veterans via 100% deduction/credit, reducing their tax burden per bill's tax credit provisions.95% confidence ✓ VeteransSupports VeteransIncreases property tax deduction for disabled veterans to 100% assessed value, expanding financial benefit beyond previous $14,000 limit.95% confidence

Sub-Topics Property Tax Veteran Benefits Veteran Housing

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