Budget & Taxes

Requires the state to make contributions after December 31, 2026, that match, dollar for dollar, each state employee's deferred compensation contributions, not to exceed $28 per paycheck. Specifies limitations on state contributions, including the availability of biennial appropriations. Allows in certain circumstances the budget agency to suspend contributions, resume contributions, and make contributions that were missed due to suspension. Specifies a process by which portions of the funding sources for the retirement medical benefits account must be transferred to the state comptroller for the purpose of making matching contributions. Provides as a default rule that after December 31, 2026, each participant's membership in the retirement medical benefits account is terminated, participant subaccounts are forfeited, and subaccount amounts must be transferred to the state general fund. Specifies exceptions. Requires the state comptroller to transfer certain amounts from the state general fund to each participant's defined contribution plan. Specifies a time frame within which a participant in the retirement medical benefits account may elect to remain a participant. Establishes the 2027 retiree health benefit trust. Provides that the retiree health benefit trust fund will be terminated when certain conditions are met. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.)

Provides that an individual who is a volunteer firefighter is entitled to a credit of $200 against the individual's adjusted gross income tax liability each taxable year.

Provides that a redevelopment commission may use money from certain funds for the purpose of retiring debt service earlier. Provides that a redevelopment commission making accelerated debt payments may retain the assessed value associated with the original debt service schedule. Requires a redevelopment commission to include an invitation to overlapping taxing units to participate in the hearing regarding a proposed redevelopment project. Allows a redevelopment commission to expend money for the maintenance of an infrastructure project within a tax increment financing district if: (1) the infrastructure project was originally funded or supported by tax increment financing funds; and (2) the use of the funds is limited to the remaining life of the project. Allows a redevelopment commission to share tax increment finance district revenue with certain local economic development organizations under certain conditions.

Establishes the division of historic sites (division) in the department of natural resources. Transfers management of historic sites from the Indiana state museum and historic sites corporation to the division. Makes conforming changes. Makes an appropriation.

Provides that, for purposes of receiving a grant from the military family relief fund, eligibility criteria shall be based on the financial need of the applicant regardless of the applicant's income or assets.

Requires the office of the secretary of family and social services (office) to apply to the United States Department of Health and Human Services to amend the state plan for the federal Child Care and Development Fund (CCDF) voucher program to increase the maximum initial eligibility limit for purposes of initial eligibility to 150% of the federal poverty level. Requires the office to fully fund: (1) each eligible applicant for a CCDF voucher payment; and (2) eligible CCDF provider reimbursement rates at a specified rate. Provides that the office may not place an eligible CCDF applicant on a waiting list. Provides that an eligible child for the prekindergarten program is an individual who, among other conditions, is a member of a household with an annual income that does not exceed 150% of the federal poverty level (instead of 135% for individuals enrolled on or after May 1, 2025, under current law). Removes the limitation on state money that may be used for a prekindergarten voucher during a state fiscal year. Requires the office of family and social services to establish reimbursement rates for prekindergarten providers that are equal to or greater than the rates established that were in effect on January 1, 2025. Makes an appropriation to the prekindergarten program fund.

Requires the state police department (department) to use part of an appropriation from House Enrolled Act 1001 (2025) to process rape kits and to eliminate the backlog of untested rape kits. Permits the department to issue grants to law enforcement agencies and testing labs to eliminate the backlog of untested rape kits. Requires the department to make a report to the general assembly by October 1, 2027, concerning the status of untested rape kits.

Creates uniform food and beverage tax authorization provisions for cities and counties that are not required or authorized to impose a food and beverage tax under any other food and beverage tax enabling statute. Specifies the food and beverage tax adoption procedure, maximum food and beverage tax rate, uses of revenue from a food and beverage tax, and the duration of the food and beverage tax.

Establishes the hunger-free campus grant program (grant program) to provide grants to state educational institutions for purposes of addressing food insecurity among students enrolled in state educational institutions. Provides that the commission for higher education (commission) shall provide a grant under the grant program to a state educational institution if at least one campus is designated by the commission as a hunger-free campus. Establishes criteria that a campus of a state educational institution must meet in order to be designated as a hunger-free campus. Makes an appropriation.

Freezes an individual's property tax liability attributable to the individual's homestead based on the date on which the individual acquired an ownership interest in the homestead.