Budget & Taxes

in committee · Indiana · House Jan 6, 2026

HB 1265: Natural resource entrance fees.

Allows counties to adopt an ordinance to impose a surcharge of not more than $2 in addition to the fees charged by the department of natural resources (department) for entry into state parks and state recreation areas. Requires the department to collect the surcharge and to report and pay the surcharge to each county treasurer. Provides that the revenue collected is to be used for purposes related to first responders and infrastructure improvements. Provides that the surcharge may not be imposed on a person who holds an annual pass.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a $2 surcharge on park fees, directing revenue to first responders and infrastructure - funds essential public services per topic description.95% confidence

Sub-Topics Fees & Licensing

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in committee · Indiana · House Jan 8, 2026

HB 1425: Social service provider tax credit.

Allows a qualified taxpayer to claim a credit against the taxpayer's state tax liability for designated contributions to qualified nonprofit organizations that provide: (1) comprehensive case management services for at risk families; (2) family support services; (3) in-school programs, community based events, or online resources to assist fathers in learning and improving parenting skills; or (4) programs that provide mutual support systems among mothers in raising children or information for mothers to enhance child development.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for contributions to social service nonprofits, reducing taxpayer liability while incentivizing funding for public services like family support and parenting programs.92% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Indiana · Senate Jan 5, 2026

SB 184: Sales tax on utility service.

Phases down in equal reductions over four years the state gross retail tax rate imposed on the sale of the following utility services to a person for domestic consumption: (1) Electrical energy. (2) Natural or artificial gas. (3) Water. (4) Steam. (5) Steam heating service.

Topics ✓ Budget & TaxesSupports Budget & TaxesPhases down sales tax on essential utilities (electricity, gas, water), providing tax relief for households and aligning with tax reduction indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Indiana · Senate Jan 8, 2026

SB 217: Circuit breaker credit for homesteads.

SB 217 would cap annual property tax increases for homeowners' primary residences at 4%. It directly affects residents living in their main home by preventing their tax bills from rising more than 4% from one year to the next. The key provision sets a maximum 4% yearly increase on the actual tax amount, regardless of property value changes. This policy change ensures predictable annual tax costs for eligible homeowners without requiring new tax payments or credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCaps property tax increases at 4% for primary residences, providing tax relief for homeowners and promoting fiscal predictability in taxation.95% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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in committee · Indiana · House Jan 8, 2026

HB 1366: Workforce development incentives.

Provides for a nonrefundable apprenticeship tax credit (credit) for an eligible employer. Provides that the amount of the credit is $2,500 for each apprentice employed. Specifies procedures for claiming the credit. Requires a board to issue a license, certificate, registration, or permit to an individual to allow the individual to practice the individual's occupation in Indiana if the individual satisfies certain conditions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $2,500 apprenticeship tax credit per apprentice, offering tax relief to employers as a workforce development incentive.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $2,500 tax credit per apprentice to incentivize employer-sponsored training, directly advancing workforce development and employment opportunities.90% confidence

Sub-Topics Tax Credits Tax Incentives Apprenticeships Professional Licensing Workforce Development Tags Licensing

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in committee · Indiana · House Jan 6, 2026

HB 1284: Local income taxes.

Provides that within a county's total expenditure rate, the county may adopt: (1) up to a 0.7% rate (instead of a 1.2% rate) for county general purpose revenue; (2) up to a 0.2% rate (instead of a 0.4% rate) for fire protection and emergency medical services; (3) up to a 0.2% rate for nonmunicipal civil taxing unit general purpose revenue; and (4) up to a 1.9% rate (instead of a 1.2% rate) for certain cities and towns that are not eligible to adopt a municipal LIT rate. Eliminates provisions that expire local income tax rates each year. Authorizes a city or town to impose a municipal LIT rate up to 1.9% (instead of 1.2%). Modifies the population threshold required for a city or town to impose a municipal LIT rate. Modifies the formula used to determine distribution amounts of revenue from a tax rate imposed for fire protection and emergency medical services.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces maximum local income tax rates (e.g., 1.2% → 0.7%), providing tax relief and aligning with fiscal responsibility for local budgets.90% confidence ✗ HealthcareOpposes HealthcareBill reduces max tax rate for EMS from 0.4% to 0.2%, limiting potential funding for emergency medical services, a healthcare service.85% confidence

Sub-Topics Business Taxes Government Spending Income Tax

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in committee · Indiana · House Jan 5, 2026

HB 1244: Tax increment financing.

Provides that 10% of the excess property tax proceeds collected in an allocation area must be allocated among school corporations, libraries, and taxing units that provide police services, fire protection, emergency medical service, or public safety services in the allocation area.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates 10% of excess property tax proceeds to schools, libraries, and public safety services, directly funding essential programs through tax revenue distribution.90% confidence ✓ Criminal JusticeSupports Criminal JusticeAllocates 10% of TIF funds to police/fire/EMS services, directly funding law enforcement and public safety within criminal justice framework.90% confidence ✓ EducationSupports EducationBill allocates 10% of TIF proceeds directly to school corporations, providing dedicated funding for K-12 education infrastructure and operations per explicit allocation requirement.90% confidence ✓ HealthcareSupports HealthcareBill allocates 10% of tax proceeds to EMS providers, explicitly listed under HEALTH in subjects, directly funding emergency medical services.85% confidence

Sub-Topics Property Tax Tax Incentives Policing Tags Public Safety

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passed · Indiana · Senate Jan 28, 2026

SB 264: Economic development tax credits.

Amends the economic development for a growing economy (EDGE) tax credit to: (1) authorize the Indiana economic development corporation (IEDC) to increase the value of an EDGE credit to a company for new job creation based on the amount of expenses of the company to relocate an individual to Indiana to fill the position; and (2) explicitly permit the IEDC to provide EDGE credits to a company that is retaining an employee through a minimum of a 25% increase in hourly wages paid to the individual. Clarifies provisions that apply to IEDC certification of a fund as a qualified Indiana investment fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credits for businesses to incentivize job creation and wage increases, directly advancing tax incentive policy under Budget & Taxes.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill explicitly incentivizes 25% wage increases for employee retention via tax credits, directly advancing higher wages under Labor & Employment.90% confidence

Sub-Topics Tax Credits Tax Incentives Professional Licensing Tags Economic Development

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in committee · Indiana · House Jan 6, 2026

HB 1337: Property and local income tax.

Provides that property taxes imposed to pay debt service: (1) on certain bonds; and (2) to make lease payments on certain leases; are not considered for purposes of calculating a person's supplemental tax credit. Provides that the expenditure tax rate for a county or municipality expires on December 31, 2029, and on December 31 of every fourth calendar year thereafter (instead of every calendar year under current law).

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes property taxes for debt service from tax credit calculations, increasing supplemental tax credits for individuals, aligning with tax relief indicators.90% confidence

Sub-Topics Debt & Bonds Property Tax Tax Incentives

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passed · Indiana · Senate Feb 12, 2026

SB 161: Education matters.

Requires the Indiana department of education to elect to participate as a covered state in the federal tax credit scholarship program for elementary and secondary education under Section 25F of the Internal Revenue Code (enacted in Public Law 119-21, commonly known as the One Big Beautiful Bill Act of 2025). Makes conforming changes to the school scholarship tax credit in current law. Requires the governor and the department of workforce development, in consultation with the commission for higher education, to: (1) establish a process to identify eligible workforce training programs; (2) establish a process for institutions and programs to apply for recognition as an eligible workforce training program; (3) coordinate certain workforce training matters; and (4) require eligible workforce training programs to provide certain datasets to the department. Provides that the department of workforce development must maintain alignment with federal rules governing workforce Pell grants.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates state participation in federal tax credit scholarship program, expanding tax credits for education expenses per tax credit subjects and summary.95% confidence ✓ EducationSupports EducationRequires Indiana to participate in federal tax credit scholarship program for K-12, expanding educational access via financial assistance (vouchers/scholarships)95% confidence

Sub-Topics Tax Credits School Choice Student Financial Aid

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