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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndiana lawmakers returned to the Statehouse this week after a weeklong break at the legislative session’s halfway point.
Committee dockets weren’t too packed, but the House Ways and Means Committee heard Senate Bill 1, which is the property tax relief legislation that is likely the most contentious bill of the session. About 40 people signed up to testify for several hours Wednesday afternoon and into the late evening.
IBJ is watching key bills that could impact the state’s economic development, health care and workforce efforts and is following developments in legislation related to property taxes and Medicaid. And, of course, we’re tracking that budget bill, which will determine state spending for fiscal years 2026 and 2027 and will likely be the landing place for many issues related to taxes and spending.
Here’s the status of some of the bills we’re watching during the session, which is expected to adjourn at the end of April.
Economic development
After eight years of former Gov. Eric Holcomb’s development-focused tenure, Braun—an entrepreneur and former CEO—wants a greater focus on entrepreneurship and small businesses.
- Prevents the state from signing agreements with companies that are majority-controlled by citizens or residents of adversary nations or are headquartered within one
- Author: Rep. Craig Haggard, R-Mooresville
- Last action: Passed House 68-21, Feb. 20
- Awaiting: Hearing in Senate Judiciary Committee
- Status: Progressing
- Creates the Office of Entrepreneurship and Innovation, which would develop and administer programs to support small business, entrepreneurship and innovation
- Author: Rep. Jake Teshka, R-North Liberty
- Last action: Passed House 85-7, Feb. 11
- Awaiting: Hearing in Senate Commerce and Technology Committee
- Status: Progressing
- Creates the Office of Entrepreneurship and Innovation and establishes certain IEDC provisions for land sales and its president’s appointment
- Author: Sen. Brian Buchanan, R-Lebanon
- Last action: Passed Senate 49-0, Feb. 20
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
- Creates an Indiana-Ireland commission to advance trade relations
- Author: Rep. Timothy O’Brien, R-Evansville
- Last action: Passed House 86-1, Feb. 3
- Awaiting: Hearing in Senate Commerce and Technology Committee
- Status: Progressing
- Expand data center tax exemption to include quantum computing research, advanced computing and defense infrastructure with at least a $50 million investment in five years
- Author: Rep. Edmond Soliday, R-Valparaiso
- Last action: Passed House 76-18, Feb. 18
- Awaiting: Hearing in Senate Tax and Fiscal Policy Committee
- Status: Progressing
- Prohibits a company from a foreign adversary from building a data center in Indiana without an electricity usage study and requires the project to generate its own electricity
- Author: Sen. Eric Koch, R-Bedford
- Last action: Passed Senate 48-0, Feb. 4
- Awaiting: Hearing in House Utilities, Energy and Telecommunications Committee
- Status: Progressing
Workforce
Over the past few years, state leaders have overhauled the state’s high school curriculum and graduation requirements to prioritize career coaching and alternative paths to higher education. The state has also been working to boost training and certificate programs for young and adult learners.
- Requires the Department of Education to prepare a plan to develop a market-driven credential program with at least three priority industry pathways
- Author: Sen. Greg Goode, R-Terre Haute
- Last action: Passed Senate 48-1, Feb. 20
- Awaiting: Hearing in House Education Committee
- Status: Progressing
- Establishes a reemployment skills training pilot program for those on unemployment benefits
- Author: Sen. Liz Brown, R-Fort Wayne
- Last action: Passed Senate 45-2, Feb. 20
- Awaiting: Hearing in House Employment, Labor and Pensions Committee
- Status: Progressing
Child care
Child care—and the lack of available and affordable options—has been plaguing families in Indiana and across the country. Business leaders now worry the price and lack of options will prevent new workers from moving to the state and remove others from the workforce.
- Adds employee training, scholarship programs and compensation for employees with a higher level of training to permitted uses of funds for the employer child care expenditure tax credit; also sets staff ratios and maximum group sizes based on certain age ranges in licensed child care centers
- Author: Sen. Ed Charbonneau, R-Valparaiso
- Last action: Passed Senate 44-5, Feb. 20
- Awaiting Hearing in House Family, Children and Human Affairs Committee
- Status: Progressing
- Allows a single-owner child care company or nonprofit, including YMCAs and school-affiliated organizations, to open multiple locations under one license
- Bill author: Rep. Dave Heine, R-Fort Wayne
- Last action: Passed House 48-0, Feb. 11
- Awaiting: Hearing in Senate Family and Children Services Committee
- Status: Progressing
Indianapolis
The capital city is a demographic and political outlier in Indiana, sometimes causing the Republican supermajority to target legislation toward conflicting priorities and initiatives. But also, as the state’s largest city, some legislation impacts its government and residents more than others.
- Classify the town of Cumberland as an excluded city and no longer part of the consolidated city of Indianapolis
- Author: Rep. Doug Miller, R-Elkhart
- Last action: Passed 8-0 in the Senate Local Government Committee, March 6
- Awaiting: Hearing in Senate Tax and Fiscal Policy Committee
- Status: Progressing
- Address road-funding disparities through a range of funding mechanisms, including an increase to the maximum rate for county wheel and vehicle excise tax and required county bonding abilities. (Previously included Marion County referendum language)
- Author: Rep. Jim Pressel, R-Rolling Prairie
- Last action: Passed House 71-21, Feb. 20
- Awaiting: Hearing in Senate Homeland Security and Transportation Committee
- Status: Progressing
- Establishes a special prosecutor unit, prosecutor review board and public prosecution fund, in part to investigate whether prosecuting attorneys are “noncompliant” with state laws. Similar legislation has previously been used to target Marion County Prosecutor Ryan Mears.
- Author: Rep. Chris Jeter, R-Fishers
- Last action: Passed House 72-24, Feb. 19
- Awaiting: Hearing in Senate Corrections and Criminal Law Committee
- Status: Progressing
- Increases the penalties for street takeovers, which are most prevalent in Marion County. Specifically, the legislation would make “spinning” a Class B misdemeanor.
- Authors: Sens. James Tomes, R-Wadesville; Aaron Freeman, R-Indianapolis; and Rick Niemeyer, R-Lowell
- Last action: Passed Senate 48-1, Feb. 3
- Awaiting: Hearing in House Courts and Criminal Code Committee
- Status: Progressing
- Allows a court to order an expungement in certain eviction cases
- Authors: Sens. Liz Brown, R-Fort Wayne; Greg Taylor, D-Indianapolis; and Mike Bohacek, R-Michiana Shores
- Last action: Amended and passed Senate 49-0, Jan. 28
- Awaiting: Hearing in House Judiciary Committee
- Status: Progressing
Taxes
Braun and legislative leaders have prioritized changes that would reduce property taxes and could have a significant impact on local government spending.
- Institutes a number of property tax-related items, including referenda timing changes, a county payment-deferral program and reform of how the state establishes a cap for how much a local body can increase its property tax collections
- Author: Sen. Travis Holdman, R-Markle
- Last action: Hearing in House Ways and Means Committee, March 5
- Awaiting: Vote in committee
- Status: Progressing
- Creates a $500 tax credit for families with newborn children
- Author: Sen. Greg Walker, R-Columbus
- Last Action: Passed Senate unanimously, Feb. 20
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
- Increases the acquisition cost threshold for the business personal property tax exemption
- Authors: Sens. Aaron Freeman, R-Indianapolis; and Chris Garten, R-Charlestown
- Last action: Passed Senate 39-7, Feb. 13
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
- Continues to decrease the adjusted gross income tax rate annually until it reaches 2.70% for tax year 2032. The 2025 tax rate is 3.0%.
- Author: Sen. Travis Holdman, R-Markle
- Last action: Passed Senate 49-0, Jan. 28
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
Health
Reducing the cost of health care is a major priority for policymakers. And the debate comes as the state’s Medicaid costs continue to balloon, making the low-income health insurance program a budgetary concern.
- Institutes measures to push insurers and related financial officials to act in the best financial interests of their clients
- Author: Sen. Justin Busch, R-Fort Wayne
- Last action: Hearing in House Insurance Committee, March 4
- Awaiting: Vote in committee
- Status: Progressing
- Forces a hospital to forfeit its state nonprofit status if its charges exceed 300% of the Medicare reimbursement rate at the time of the charge
- Author: Rep. Martin Carbaugh, R-Fort Wayne
- Last action: Passed House 68-26, Feb. 20
- Awaiting: Hearing in Senate Health and Provider Services Committee
- Status: Progressing
- Addresses the use of presumptive eligibility, which offers temporary health coverage for low-income people not yet receiving Medicaid. Reels in the Healthy Indiana Plan, or HIP, by applying an enrollment cap, coverage limits and work requirements
- Author: Sens. Ryan Mishler, R-Mishawaka; Chris Garten, R-Charlestown; and Ed Charbonneau, R-Valparaiso
- Last action: Passed Senate 40-9, Feb. 18
- Awaiting: Hearing in House Public Health Committee
- Status: Progressing
- Enacts a range of measures to increase transparency
- Author: Rep. Brad Barrett, R-Richmond
- Last action: Passed House 66-32, Feb. 18
- Awaiting: Hearing in House Health and Provider Services Committee
- Status: Progressing
Water policy & utilities
The state’s management of its natural resources and energy systems has risen to public consciousness thanks to questions about water for the LEAP District and debates about electricity for data centers.
- Creates a tax credit for expenses in the manufacturing of a small modular nuclear reactor
- Author: Rep. Ed Soliday, R-Valparaiso
- Last action: Passed House 67-25, Feb. 13
- Awaiting: Hearing in Senate Utilities Committee
- Status: Progressing
- Requires the leaders of projects that will move significant amounts of water from one water basin in the state to another to obtain a permit from the Indiana Department of Natural Resources
- Author: Sen. Eric Koch, R-Bedford
- Last action: Passed Senate 48-0, Feb. 4
- Awaiting: Hearing in House Utilities, Energy and Telecommunications Committee
- Status: Progressing
- Establishes a small modular nuclear reactor pilot program and designate eligible sites for such projects
- Author: Sen. Eric Koch, R-Bedford
- Last action: Passed Senate 41-7, Feb. 3
- Awaiting: Hearing in House Utilities, Energy and Telecommunications Committee
- Status: Progressing
And everything else
- Creates a boundary adjustment commission that would study whether to recommend absorption of Illinois counties that want to secede from the Democrat-led state
- Author: House Speaker Rep. Todd Huston, R-Fishers
- Last action: Passed House 69-25, Feb. 20
- Awaiting: Hearing in Senate Public Policy Committee
- Status: Progressing
- Requires a social media company to obtain parental consent before allowing a child under 16 to use the platform
- Authors: Sens. Mike Bohacek, R-Michiana Shores; and Liz Brown, R-Fort Wayne
- Last action: Passed by Senate 42-7, Jan. 23
- Awaiting: Hearing in House Judiciary Committee
- Status: Progressing
- Provide regulations for bare-knuckle fighting, professional wrestling, boxing and sparring through the Indiana Gaming Association
- Author: Rep. Craig Haggard, R-Mooresville
- Last action: Passed House 86-5, Jan. 28
- Awaiting: Hearing in Senate Public Policy Committee
- Status: Progressing
- Legalizes use of electronic pull-tabs largely for use at veteran organizations
- Author: Sen. Kyle Walker, R-Fishers
- Last action: Passed House 37-13, Feb. 4
- Awaiting: Hearing in House Public Policy Committee
- Status: Progressing
- Prohibits an employer from knowingly or intentionally employing an undocumented immigrant
- Author: Rep. J.D. Prescott, R-Union City
- Last action: Passed House 64-26, Feb. 20
- Awaiting: Hearing in Senate Judiciary Committee
- Status: Progressing
- Makes it easier for property owners to oust squatters in certain circumstances where trespassing law may not cover
- Author: Sen. Mike Gaskill, R-Pendleton
- Last action: Passed Senate 48-1, Feb. 3
- Awaiting: Hearing in House Judiciary Committee
- Status: Progressing
Know of a bill that should be on our radar? Contact IBJ’s statehouse reporter Cate Charron at [email protected].
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If property taxes go down, new taxes will be implemented to offset the revenue shortfall for municipalities. “I lowered your and didn’t create the new taxes”. Terrific.