The 2023 Indiana General Assembly session saw big policy wins for the business community across the board. Below are the Top 20 victories, alphabetized by policy area, that the Indiana Chamber championed and played a vital role in getting across the finish line:

Economic Development/Technology

HB 1001 – State Budget (Economic Development Matters): Includes $500 million to fund a second round of Gov. Holcomb’s Regional Economic Development and Leadership Initiative (aka READI) that focuses on quality of place and building up local/regional communities. Allocates $500 million to the Indiana Economic Development Corporation (IEDC) to help the agency close big deals. Doubles the appropriation (to $40 million) for the Manufacturing Readiness Grant to assist manufacturers modernize their technology as well as designates $150 million for the site acquisition revolving fund to attract significant projects/employers.

Chamber commentary: On the economic development front, the Governor and IEDC were big winners, and we were very supportive of their proposals. These IEDC funds will give economic development officials more tools at their disposal as they compete with other states for job-creating expansions and new investments in transformative projects.

House Bill 1555 – Military Family Occupational Licenses: Provides that a military service applicant who has held an occupational license, certification, registration or permit (license) in another jurisdiction for at least one year may qualify for an Indiana license. Removes the requirement that an applicant have a license for at least two of the five years preceding the date of the application.

Chamber commentary: Before 2020, only a handful of states enacted legislation to universally recognize occupational licenses. Today, 20 states have laws like HB 1555, but they capture professionals beyond just military members, spouses and children. The Indiana Chamber is hopeful that this is a foot in the door for expanding this regulatory practice to all qualified professionals who will add value to the state’s workforce and economy.

Senate Bill 5 – Consumer Data Protection: Establishes a new article in the Indiana Code concerning consumer data protection, to take effect January 1, 2026. Sets forth exemptions from the bill’s requirements concerning the responsibilities of controllers of consumers’ personal data, and the rights of Indiana consumers with respect to their personal and sensitive data (e.g., correct or delete data held by a controller, obtain copy of the data, etc.).

Chamber commentary: This is a big win for Indiana as it can now signal the state’s expectations for managing data to prospective companies and residents.

SB 271 – Certified Technology Parks: Increases from $100,000 to $250,000 the annual additional incremental income tax deposit amount that a certified technology park (CTP) captures once it has reached its limit on deposits.

Chamber commentary: The Indiana Chamber supported the introduced version of the bill that called for an increase to $500,000, as we believe that number presents a sweet spot for CTPs to exponentially improve the services they provide and the facilities in which they provide them. Still, we are grateful for the notable increase to 250,000; it’s a step in the right direction.

­­Education/Workforce Development

House Bill 1002 – Career Advising Grant Program: Contains a number of provisions aimed at expanding work based learning opportunities, making high school graduation requirements more relevant to real-world expectations and creating funding flexibility (through the creation of “Career Scholarship Accounts”) to help students to complete on-the-job training and postsecondary credentials.

Chamber commentary: Touted as a transformative bill to “reinvent high school,” we believe it will serve its purpose to provide a more relevant secondary education that better prepares Hoosier students for the realities and opportunities of today’s workforce.

House Bill 1449 – Twenty-First Century Scholars Program Enrollment: Provides that the Indiana Commission for Higher Education and the Department of Education shall identify income eligible students for automatic enrollment in the 21st Century Scholars program.

Chamber commentary: It’s imperative that Indiana provides a pathway for thousands more Hoosier students, especially those from low-income households and challenging circumstances, to earn postsecondary credentials. This move was critical to that happening.

Senate Bill 167 – FAFSA: Requires high school seniors to complete and submit the Free Application for Federal Student Aid (FAFSA) unless the student opts out with the consent of a parent, principal or school counselor.

Chamber commentary: This long-time Indiana Chamber priority will dramatically increase access to student financial aid and is expected to strengthen Indiana’s talent pipeline and reverse a troubling decline in postsecondary participation rates.

Senate Bill 186 (Passed in House Bill 1001) – Tax Credit for Employer Supported Childcare: Establishes a state tax credit for a taxpayer that makes qualified childcare expenditures or qualified childcare resource and referral expenditures in providing childcare to the taxpayer’s employees.

Chamber commentary: This much-needed strategy is aimed at leveraging public dollars to spur additional private sector investment that addresses childcare accessibility and affordability gaps.

Senate Bill 380 – Curbing Graduation Waiver Abuse: Amends the definition of “graduation” for purposes of the high school graduation rate determination.

Chamber commentary: In a talent-driven economy, high school diplomas and postsecondary credentials represent a critical currency that must be valued by higher education institutions and employers alike. As such, the use of high school waivers should be limited and rare. Unfortunately, waivers have become pervasive in some school communities with the percentage of students graduating with a waiver equating to a quarter or more of a given graduating class. This new law should help mitigate that troubling trend.

Senate Bill 404– Access to Transcripts: Prohibits Indiana postsecondary educational institutions from withholding a transcript for a current/former student if the student owes a debt to the institution, provided that the student is making a good-faith effort to pay the outstanding debt.

Chamber commentary: This is another policy that will help with skilling up Hoosiers by placing only reasonable guardrails on the practice of college transcript holds.

Energy/Environment

HB 1007 – Creates Energy Plan for Indiana: It provides that when the state makes decisions concerning Indiana’s electric generation resource mix, energy infrastructure and electric service, the Indiana Utility Regulatory Commission (IURC) must consider the following attributes of electric utility service: reliability, affordability, resiliency, stability and environmental sustainability. The bill also requires the IURC to commence a comprehensive study of performance-based ratemaking for investor-owned electricity suppliers.

Chamber commentary: The last energy plan for Indiana was created in 2006.The Indiana Chamber has been advocating for a statewide energy plan for several years and the timing is ripe. The 21st Century Energy Policy Task Forces just completed four years of work and the Indiana Chamber Foundation completed an energy study in November 2020. This will help guide Indiana’s energy makeup moving forward and provide certainty for the business community.

Senate Bill 155 – IDEM Matters: Requires the Environmental Rules Board to adopt rules raising two Title V operating permit program fees, increasing the annual fee for a Part 70 permit to $6,100 and the annual fee for a federally enforceable state operating permit to $6,100 for five years. It also mandates that a federal regulation that classifies or amends a designation of attainment, nonattainment or unclassifiable for any area in Indiana under the Federal Clean Air Act is effective and enforceable in Indiana on the effective date of the federal regulation.

Chamber commentary: This legislation was needed so that the Indiana Department of Environmental Management (IDEM) can keep its primacy over air permitting. The U.S. Environmental Protection Agency sent a warning letter to IDEM in October 2022 threatening to take over the Title V program in the future. Thankfully, that – and any increased delays and costs to businesses and manufacturers as a result – now will not happen.

Health Care

Senate Bill 1 – Behavioral Health Matters: Puts a framework in place to help combat the growing mental health crisis affecting Hoosiers. Includes a timeline for Indiana to apply to the federal government: (1) for a Medicaid state plan amendment/waiver to require reimbursement for eligible certified community behavioral health clinic services; or (2) to participate in the expansion of a community mental health services demonstration program. Requires the state to establish and maintain the 9-8-8 crisis response center and toll-free help line to provide confidential emotional support and referrals to certain resources to individuals. Reestablishes the Indiana Behavioral Health Commission.

Chamber commentary: Mental health concerns cost Indiana employers $885 million annually in lost productivity and they cost the state $708 million per year in direct health care costs. We applaud the Indiana General Assembly for passing this bill and setting up the framework that addresses the critical mental health issues afflicting so many Hoosiers.

Senate Bill 4 – Public Health Commission: Implements certain changes recommended by the Governor’s Public Health Commission and to improve Indiana’s public woeful health rankings. Notably, it provides local health departments the option to receive more funding if they agree to certain conditions that will help them raise their local health metrics.

Chamber commentary: This bill represents a critical step to improving the quality of life in Indiana’s rural communities. Attracting talent in rural Indiana has long been a challenge for employers. The highly skilled employees that are needed throughout Indiana want thriving, healthy communities to live, work and raise a family.

Taxation/Public Finance

House Bill 1001 – State Budget: Appropriates money for capital expenditures, the operation of the state, K-12 and higher education, the delivery of Medicaid and other services, and various other distributions and purposes. Additional money also dedicated toward the unfunded public pension liability and other strategic investments and capital investments.

Chamber commentary: Indiana is well positioned for the future with a balanced budget and reserves of 12%. The two-year budget includes historic investments in the workforce pipeline, economic development, infrastructure and tax relief. The Indiana Chamber applauds the work of the General Assembly on this important bill, which includes countless victories for the business community.

House Bill 1005 – Housing: Creates a program and fund called the Residential Housing Infrastructure Assistance Program and Fund, which is run by the Indiana Finance Authority (IFA). The state budget allocated $75 million for the fund. Local governments can apply for loans from the fund to pay for infrastructure projects related to residential housing development. The bill also sets guidelines on how the money in the fund should be distributed, with 70% going to municipalities with a population of less than 50,000 and 30% going to other local governments. The IFA will establish a system to prioritize loan applications and may also create a leveraged loan program for participants.

Chamber commentary: Housing needs have impeded economic development in many areas. This bill will provide an ability to assist in needed residential development to accommodate potential employees for employers considering local investment.

House Bill 1454 – Department of Local Government Finance: As introduced, contained mostly innocuous updates to agency programs as well as the property tax assessment and appeals process. But it became a Christmas tree bill that ballooned to 200 pages and included various tax policies.

Chamber commentary: Almost as large as the budget bill, this legislation includes policy victories for various sectors of the business community. A provision that the Chamber opposed related to taxation of certain tobacco products was included in the bill. But largely, this measure was positive.

Senate Bill 2 –Taxation of Pass-Through Entities: Allows certain types of businesses known as “pass-through entities” (such as partnerships and S corporations) to elect to pay federal taxes at the entity level based on each owner’s share of adjusted gross income.

Chamber commentary: This bill, the first passed in the 2023 session, allowed for more than a half-million business owners eligible for this tax relief to have certainty as they prepare to file their 2022 returns. The associated tax relief is estimated to exceed $100 million and will not impact state revenues.

Senate Bill 3 – State and Local Tax Review Commission: Establishes the State and Local Tax Review Commission, consisting of 14 members, to review: (1) paying down the unfunded pension liability, (2) methods to reduce state debt, (3) elimination of the individual income tax and replacement revenues, (4) property tax structure, (5) state and local government efficiency, and (6) reserve fund balances and Indiana’s fiscal health.

Chamber commentary: The Indiana Chamber supports a comprehensive review of the state system of taxation and only then deliberative action. This legislation provides a forum for these important discussions. We believe more representation from Indiana business owners on the commission is needed.

Senate Bill 300 (Passed in House Bill 1005) – Residential Tax Increment Financing: Removes the threshold conditions for establishing a residential housing development program and a tax increment allocation area for the program, including the condition that the governing body of each school corporation affected by the program pass a resolution approving the program before the program may go into effect.

Chamber commentary: It’s a reality that housing needs have impeded economic development in many areas. This bill provides an ability to assist in needed residential development to accommodate potential employees for employers considering local investment.

Senate Bill 419 – State Tax Matters: Makes certain changes regarding net operating losses for purposes of determining state adjusted gross income. Provides that certain amounts for providing or expanding access to broadband service in Indiana may be subtracted from a taxpayer’s state corporate adjusted gross income. Provides for successor tax liability for unpaid sales taxes following a business asset sale. Repeals an outdated provision requiring separate exemption certificates for manufacturers and wholesalers. Clarifies the acquisition date for purposes of adding back interest from tax exempt bonds issued by another state in determining Indiana adjusted gross income. Amends provisions regarding the exemption for certain income derived from patents. Requires a taxpayer to: (1) deduct from the taxpayer’s adjusted gross income for a taxable year the amount of specified research or experimental expenditures paid or incurred by the taxpayer during the taxable year; and (2) add to the taxpayer’s adjusted gross income an amount equal to the deduction claimed under Section 174 of the Internal Revenue Code for the taxable year. Makes clarifying changes and technical corrections to the affordable and workforce housing tax credit. Provides that compensation received by an individual who: (1) is not a resident of Indiana; and (2) receives compensation for employment duties performed in Indiana for 30 days or less during the calendar year; is exempt from the adjusted gross income tax. Authorizes the Indiana Department of Revenue to publish or disclose the status of a governmental or nonprofit entity’s sales tax exemption certificate. Provides that a person who knowingly or intentionally sells, purchases, installs, transfers or possesses: (1) an automated sales suppression device or a zapper; or (2) phantomware; commits a Level 5 felony. Makes clarifying and technical corrections to provisions under the electronic cigarette tax.

Chamber commentary: While all these provisions are beneficial to business, two are of particular significance and will aid in innovation and in workforce attraction. First, businesses now can do immediate R&D expensing for state tax purposes. The remote worker provision – via the 30-day safe harbor provision – will make things easier for employers and their out-of-state workers. If remote workers are physically in Indiana for 30 days or less, then there’s no state tax filing that needs to be made, and the business doesn’t have to do any kind of withholding. This is an important step to make Indiana favorable to out-of-state remote workers and will help the state mitigate the projected losses to its workforce over the next decade (due in large part to Baby Boomers retiring).