Indiana Senate Republicans announced an agenda for the current session that includes several tax-related bills.
A point of emphasis is Senate Bill 2, authored by Sen. Scott Baldwin (R-Noblesville), which focuses on reducing federal tax burdens on businesses through state legislative action. Namely, the state and local tax (SALT) deduction would provide tax relief to most Hoosier businesses (pass-through entities) in Indiana and potentially result in an estimated $50 million in federal tax savings.
We’re excited to support this proposal – which we have been advocating for in the proceeding months – as it will allow Hoosier business owners to reinvest in their businesses and continue to drive economic growth in our state. Additionally, this tax relief will not cost the state anything, making it a win-win for both business owners and the state of Indiana.
Senate Bill 3, authored by Sen. Travis Holdman (R-Markle), proposes the creation of a commission to study the feasibility of ending Indiana’s income tax and reforming property taxes to maintain the state’s competitive tax climate. Additionally, the commission is charged with studying how to continue paying down the unfunded liability of the Teachers’ Retirement Fund, which has an outstanding liability of about $6 billion. Once this liability is paid off, it’s expected to free up $1 billion per year in the state budget for tax cuts or other public needs.
David Ober is the Indiana Chamber’s vice president of taxation and public finance. Ober, a native of Noble County, started with the Chamber in June 2022 and is a former state legislator and commissioner for the Indiana Utility Regulatory Commission.
