The 2021 legislative session was an overall catalyst for business recovery and featured a variety of policy victories for you and your organizations.
What do these policy changes mean for your business? Let’s take a look at how companies of all types will benefit.
ALL: Civil immunity related to COVID-19
The Chamber’s top priority in 2021 retroactively protects employers that followed accepted safety guidelines from litigation regarding possible coronavirus exposure to employees or visitors.
Prior to its passage, cases were being filed across the country against businesses, despite the fact a person could be exposed to the virus virtually anywhere. With most businesses already facing challenging circumstances, the Chamber emphasized the importance of this legislation beginning in the summer of 2020.
SMALL BUSINESSES: Greater personal property tax relief
This is a welcome development for many Hoosier small businesses, which found themselves sometimes paying more in business personal property tax compliance than the taxes themselves.
Senate Bill 336 doubles the exemption threshold as of July 1. Any small business owner with less than $80,000 in machinery and equipment (based on acquisition costs) does not have to pay the tax. This translates to approximately 100,000 small businesses that are relieved of this burden.
THOSE NEEDING STRONGER CONNECTIVITY AND INFRASTRUCTURE: Broadband expansion and state water resources plan development
Connectivity is critical to long-term economic development, education and health care. In 2021, various bills passed to ensure access to and adoption of high-speed broadband in unserved or underserved portions of the state. By allocating $250 million to these efforts, Indiana is continuing to show its commitment to modern connectivity and technology, which goes a long way in making areas attractive and viable for businesses and individuals.
The Chamber has also been making waves on the water issue for years (including our 2014 water study); 2021 improvements will establish additional steps and funding toward the much-needed state plan.
THOSE WANTING TO IMPROVE THE WORKFORCE: Partial tobacco reforms and expanded school choice
Indiana’s health and smoking rate metrics remain problematic for both impacted individuals and their employers. Think high health care costs and chronic absenteeism. One positive in this area for 2021 was the passage of the state’s first ever tax on vaping and e-liquid products at a rate similar to traditional tobacco products. This will serve to discourage youth from vaping and becoming cigarette smokers as they grow up and enter the workforce.
On the education front, bridging gaps between the business community and the education system remains a focus for many Hoosier employers. The budget bill establishes the Indiana education savings account program that allows eligible families to receive an annual grant amount to pay for tuition/eligible expenses at an accredited non-public school. Ultimately, this provides parents with greater choice, flexibility and autonomy in choosing the education option that best serves the learning needs of their students, which can produce a positive future workforce impact.
THOSE INTERESTED IN STRONGER COMMUNITIES: Regional economic development program and Venture Capital Investment (VCI) tax credit improvements
As part of the budget bill, $500 million in quality of place investments were added to foster economic growth throughout the state via regional collaboration, planning and cooperation.
Furthermore, despite Indiana stacking up favorably on many pro-business metrics, the state simply needs more money coming in to spur growth. Those efforts took a giant step forward with increases in available VCI tax credits as well as a bump to further benefit minority- and women-owned businesses.
These were among the many items to help grow your business. For more on the Chamber’s 2021 policy efforts or to view the full Final Legislative Report, visit www.indianachamber.com/policy.
Matt Ottinger is manager of PR and digital media for the Indiana Chamber. He is also a writer for the Chamber’s award-winning BizVoice magazine and has been with the organization in this tenure since 2007. He also worked for the Chamber in 2003 before moving to Wyoming for several years.
