Indiana lawmakers are expected to take up conformity with the federal One Big Beautiful Bill Act (OBBBA) as one of the first major items of the upcoming session. Because Indiana currently conforms to federal tax law only through January 1, 2023, legislators must decide which of the new federal provisions to adopt for Tax Year 2025.
Governor Braun’s administration has already convened an internal working group to assess fiscal impacts, and several provisions are likely to receive close scrutiny. These include new incentives for domestic manufacturing investment, changes to research and business expensing rules, and temporary federal deductions for workers, like “no tax on tips,” overtime pay and interest on qualifying car loans. Some of these measures would simplify compliance or enhance Indiana’s competitiveness, while others present meaningful short-term revenue implications.
The Chamber will remain actively engaged as the session begins, working to ensure Indiana’s conformity decisions balance competitiveness, predictability and long-term fiscal health. We will continue to keep members updated and provide opportunities for input as lawmakers prepare to debate these provisions.
