A host of pro-jobs, pro-economy bills were backed by the Indiana Chamber and passed during the 2025 Indiana General Assembly. There are also others on which the Chamber was neutral or opposed that will still be significant. Below is a compilation of these new laws that are likely impactful for your organization:
ECONOMIC DEVELOPMENT/INNOVATION/TECHNOLOGY
HB 1322 – Blockchain Technology
By 2026, the state must explore using blockchain technology to improve customer service – likely focusing on workforce, research or regulatory improvements. Part of the state’s push into cutting-edge digital innovation.
HB 1601 – Sales Tax Exemption for Data Centers
This amends the sales and use tax exemption for data centers to include investments in quantum computing research, offering financial benefits to companies and institutions involved in quantum information science – positioning Indiana for leadership in next-gen computing.
SB 431 – Data Center Oversight
No foreign-owned data centers may now be constructed without joint energy usage studies by both the Indiana Utility Regulatory Commission and the Indiana Economic Development Corporation (IEDC). This also mandates that these centers self-generate electricity, ensure they don’t destabilize the power grid and aims to protect Indiana’s energy infrastructure amid rapid tech-sector growth.
SB 516 – Office of Entrepreneurship & Innovation
This measure establishes a new Office of Entrepreneurship and Innovation with duties to support tech startups, innovation districts and economic growth. It also transfers oversight of certified technology parks from the IEDC to this new office and requires annual financial reporting for innovation districts and tighter local oversight of large land purchases by the IEDC.
EDUCATION/WORKFORCE DEVELOPMENT
SB 287 – Partisan School Board Elections
This requires a petition of nomination for a school board office to state either the candidate’s political party affiliation, that the candidate is an independent candidate or that the candidate elects not to disclose any affiliation with a political party – or that the candidate is not affiliated with a political party and does not identify as an independent candidate.
SB 365 – Career Coaching
This law provides that the Indiana Department of Education shall administer and implement the comprehensive career navigation and coaching system developed by the Indiana Commission for Higher Education and administer the career coaching grant fund.
SB 448 – Realignment of Postsecondary Education
This moves the state towards realignment of postsecondary education and training programs. Among the provisions, it requires the Indiana Commission for Higher Education to formally approve or disapprove all new campuses, schools, branches, degree programs or credentials and require a review at least once every 10 years. It also requires the development of a plan for market driven, stackable credential and qualifications system around key industry sectors and provides for new data collection and analysis on employment, income, credentials and other data necessary to improve evaluation and planning of training and education programs.
HB 1002 – K-12 Education Deregulation
Touted and criticized for its “deregulation” measures, this is more of a cleanup effort that removes outdated and unnecessary provisions in statutes and relieves burdens of compliance. It marks the first of an envisioned three-year deregulation effort of Title 20 statutes governing Indiana’s public schools.
HB 1498 – School Accountability
This restarts the A-F school accountability system. The A-F model is important because parents, taxpayers and employers need a clear and relatable means to evaluate and compare school performance, as well as for the development of data-driven improvement strategies.
HB 1515 – Education and Higher Education Matters
This ensures that charter schools also have access to STEM teacher recruitment grants, as well as pilot programs for facility and transportation planning.
HB 1634 – Math Education
This requires each school corporation and charter middle school to automatically enroll a student who meets certain conditions in a middle school advanced math course. Less than half of Indiana’s K-12 students are proficient in mathematics and this will help encourage rapid improvements in math via early assessment and intervention with students.
ENERGY
HB 1007 – Grid Reliability & Energy Capacity
This law creates a fast-track approval process for utilities planning to add power capacity to meet large load needs. Utilities must include in their long-term plans strategies to replace any retiring coal or gas plants. If reliability is threatened, the Utility Regulatory Commission may halt retirement until replacement capacity is secured. The bill also introduces a state tax credit for companies manufacturing Small Modular Reactor components, encouraging nuclear-related economic development in Indiana.
SB 425 – Energy Production Zones
This creates a new designation for “energy production zones” to streamline permitting for replacement power generation facilities. Within these zones, utilities may construct new fossil fuel or nuclear generation facilities without obtaining local zoning or land-use approvals, provided they meet specific public notice and hearing requirements and secure state-level approval where required. The law does not apply to solar or wind projects, which remain subject to local permitting. The law also tolls certain state and local permitting deadlines to prevent administrative delays that could slow down energy redevelopment projects.
HEALTHCARE
HB 1003 – Health Care Costs & Transparency
This law promotes medical billing transparency, requiring providers (such as hospitals, labs and imaging centers) to promptly offer good-faith price estimates and publicly post pricing for common procedures. Insurers must provisionally credential doctors who switch employers, improving continuity of care. The law clarifies rules to prevent hospitals from charging inflated facility fees for services available in lower-cost settings.
HB 1004 – Hospital Cost Containment
Targeting high hospital prices, HB 1004 establishes benchmarks for hospital pricing. Starting in 2029, the law requires Indiana’s largest nonprofit hospitals must meet these benchmarks or face temporary loss of nonprofit status. Indiana adjusts hospital assessments, leveraging federal funds to increase Medicaid reimbursements. For employers, this could ultimately reduce healthcare premiums by limiting cost-shifting to commercial payers.
SB 3 – Fiduciary Duty in Health Plan Administration
This requires third-party administrators, PBMs, brokers and consultants managing employer-sponsored health plans are required to act in the best financial interest of the employer plan sponsor, not just their own. While not establishing a full common law fiduciary duty, the law imposes a higher standard than typical vendor contracts, essentially requiring loyalty and prudent decision-making in the employer’s favor. The aim is to increase transparency, curb conflicts of interest (like undisclosed rebates or fees) and help employers secure fairer, more cost-effective health plan management.
SB 118 – 340B Drug Pricing Program Transparency
This mandates that healthcare providers participating in the 340B drug pricing program report annual savings data to the state, revealing how discounted drug prices benefit patients and communities. This transparency helps employers and policymakers understand whether 340B savings effectively reduce overall drug costs and support patient care, giving employers get clearer insights into healthcare spending efficiency.
SB 140 – Pharmacy Benefit Manager (PBM) Reform
This tightens PBM regulations, prohibiting reimbursements below pharmacies’ costs and banning forced use of PBM-affiliated pharmacies. It prevents retroactive claim denials, stabilizing pharmacy finances and maintaining accessible pharmacy networks.
SB 480 – Prior Authorization Reform
The law makes several changes to Indiana’s prior authorization rules for private health insurance. Insurers may no longer require prior authorization for the first 12 visits of any new episode of physical therapy or chiropractic care. Claims also cannot be denied solely because the referring provider was out-of-network. It sets new requirements for utilization review entities, including that adverse determinations must be made by a board-certified clinical peer in the same specialty.
INFRASTRUCTURE
HB 1461 – Infrastructure Funding and Asset Management
Several changes were made to Indiana’s local transportation funding programs. It reserves the first $100 million of the Community Crossings Matching Grant Program for smaller communities and lowers their required local match to 20%, easing access to state funds for road and bridge improvements. Counties with consolidated cities gain new authority to impose vehicle excise and wheel taxes, with all resulting revenue restricted to eligible transportation projects.
TAX & PUBLIC FINANCE
HB 1001 – State Budget
Indiana’s new two-year budget (approximately $44 billion) imposes a 5% spending cut on most state agencies and increases the cigarette tax by $2.00 per pack to boost revenue. It maintains planned income tax cuts, moving toward a 2.9% flat rate by 2027. Education funding rises by about 5%, while new oversight measures require ongoing evaluation of tax incentives and fiscal review of emergency orders.
HB 1427 – Local Government Finance Reform
This law delays SB 1’s business personal property tax exemption expansion ($2 million exemption begins in 2026) and repeals a new veterans’ property tax credit. Businesses providing on-site childcare gain a new partial property tax exemption. Cable franchise fees are capped, reducing local fees on cable providers.
SB 1 – Property Tax Relief
This major tax-relief law provides property tax cuts totaling $1.3 billion, significantly expanding the business personal property tax exemption to $2 million in 2026 ($1 million intermediate step originally planned for 2025, eliminated by HB 1427). New equipment bought from 2025 onward can depreciate below 30%. The law also temporarily lowers farmland assessments, helping ag businesses.
SB 451 – Future Individual Income Tax Reductions
This establishes a conditional framework to lower Indiana’s individual income tax below 2.9% starting in 2030 if state revenues consistently grow. Each reduction (0.05% increments) could save taxpayers approximately $150–$200 million annually.
