By Kevin Brinegar, Indiana Chamber president and CEO
The Indiana Department of Revenue (IDOR) has unveiled a web page with a new pass-through entity tax (PTET) form, instructions and an FAQ. As Hoosier businesses prepare to file their 2022 return, they can consult the site to ensure that tax savings aren’t left on the table.
As you may recall, Senate Enrolled Act 2 was a top priority of the Indiana Chamber during the 2023 legislative session and the first bill to be signed into law in 2023. Legislators fast-tracked the bill so that most business owners (pass-through entities) with federal tax burdens could take advantage of the tax relief for the 2022 tax year.
In addition to the information released by IDOR, the Indiana CPA Society has a PTET resource hub with detailed information about the law as well as a recorded informational session.
More than 500,000 Hoosier businesses are eligible for this tax relief, which is estimated to total more than $100 million statewide.
Another Indiana Chamber policy priority is about to be realized; this one will have meaningful impact on students.
Senate Bill 167, authored by Sen. Jean Leising (R-Oldenburg), is on its way to the Governor’s desk for signature and will require high school seniors to file the Free Application for Federal Student Aid (FAFSA) unless opted out by the student’s parent, school counselor or principal. The measure aims to increase student access to the wide range of grants and scholarships available to pay for postsecondary education and training that has become essential in a talent-driven economy.
This brings to a close the five-year struggle to pass the FAFSA requirement and put more students on the path to earning postsecondary credentials aligned with workforce needs.
Despite some improvement in recent years, Indiana ranks 37th nationally in postsecondary attainment, and the state’s college-going rate has dropped to its lowest point in years with only 53% of recent high school grads continuing their education. By making the FAFSA an “opt out” rather than an “opt in,” Indiana can begin to reverse this trend and strengthen its talent pipeline of skilled workers.
Indiana will join eight other states (Louisiana, Texas, Illinois, California, Alabama, Colorado, New Hampshire and Maryland) that have passed similar policies to boost postsecondary participation and completion rates.
Louisiana, the first state to adopt the FAFSA policy, went from worst to first in the nation in FAFSA filing rates, which also contributed to improvements in other key metrics, including high school graduation, college-going and completion rates. Combined with the Chamber’s push this session to auto-enroll eligible students in the state’s 21st Century Scholars program (House Bill 1449), Indiana is well-positioned to make critical gains in postsecondary attainment that are key to improving the state’s economic development prospects while also disrupting the cycle of generational poverty.
Bills of importance to the business community and the Indiana Chamber’s position on each one are listed in the latest edition of our Legislative Agenda. View it and other resources at our online policy center.
