Indiana Senate Bill 394

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Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 13 2025 - 25% progression
Action: 2025-01-13 - First reading: referred to Committee on Tax and Fiscal Policy
Pending: Senate Tax and Fiscal Policy Committee
Hearing: Feb 4 @ 9:00 am in Room 431
Text: Latest bill text (Introduced) [PDF]

Various tax and fiscal matters. Provides a maximum property tax liability credit for certain homestead owners based on the owner's age and annual income. Specifies the amount of the credit. Makes certain changes to the deduction amounts and qualification requirements for the disabled veteran deductions. Provides a 100% property tax exemption for permanently disabled veterans. Increases the amount of certain personal exemptions from $1,000 to $3,500 for individual taxpayers who satisfy certain income criteria. Provides an additional adjusted gross income tax deduction of $5,000 for educators in elementary or secondary education, police officers, firefighters, and veterans. Provides an adjusted gross income tax deduction for taxpayers who install solar energy panels on the taxpayer's homestead equal to the cost of the labor and materials for the installation of the solar energy panels. Repeals the renter's deduction and instead provides a refundable income tax credit for renters. Provides that the amount of the credit is $6,000, or $7,500 in the case of a disabled veteran. Provides a refundable income tax mortgage credit for first time home buyers. Provides that the amount of the credit is $15,000, which may be claimed for five consecutive taxable years. Provides an adjusted gross income tax deduction for the first $16,000 of retirement income received by an individual who is at least 62 years of age. Defines "retirement income". Provides a sales tax exemption for utility services, including water, natural gas, and electricity. Provides a sales and use tax exemption period during the last week of January and the last week of August each year for school supplies, backpacks, clothing, or computers, if the item is purchased for use by: (A) a student in a public or private elementary or secondary school; or (B) a student attending a postsecondary school; in Indiana. Appropriates $140,000,000 for the biennium to the department of education to be used as supplemental funding for the federal Child Care and Development Fund voucher program. Increases the maximum amount of the income tax credit for an individual employed as a teacher for amounts expended for classroom supplies from $100 to $1,000 per taxable year. Increases the cigarette tax by $1 per pack. Increases the river boat wagering tax, and increases the supplemental wagering tax, slot machine wagering tax, and sports wagering tax and deposits the revenue from the increases in the state general fund. Increases the beer excise tax, liquor excise tax, wine excise tax, and hard cider excise tax and deposits the revenue from the increases in the state general fund.

Various tax and fiscal matters.

Sen. Fady Qaddoura [D]

Date	Chamber	Action
2025-01-13	Senate	First reading: referred to Committee on Tax and Fiscal Policy
2025-01-13	Senate	Authored by Senator Qaddoura

Type	Source
Summary	https://iga.in.gov/legislative/2025/bills/senate/394/details
Text	https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0394/SB0394.01.INTR.pdf
Supplement	https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0394/fiscal-notes/SB0394.01.INTR.FN001.pdf
Supplement	https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0394/fiscal-notes/SB0394.01.INTR.FN002.pdf