Hoosier State Today

The Indiana House of Representatives has taken a significant step towards reforming the state's tax system by passing an amended version of Senate Bill 1, with a vote of 65–29. This revised bill introduces modifications to the business personal property (BPP) tax reform, retaining certain taxation while increasing the de minimis exemption threshold and limiting the 30% depreciation floor application.

Indiana Chamber President and CEO Vanessa Green Sinders commented on the development, stating, "This is a smart, pro-growth reform that will reduce compliance burdens and unlock investment across Indiana. Increasing the de minimis threshold and exempting new equipment from the 30% depreciation floor directly benefits small- and medium-sized business owners in every corner of the state."

Sinders emphasized the potential impact of the changes, saying, "These changes help create a more attractive climate for capital investment and support the continued growth of key industries in Indiana. Modernizing our personal property tax structure is essential to maintaining a competitive edge – particularly as neighboring states work to strengthen their own business environments."

She added, "It’s important to recognize that when Indiana employers grow, the entire state benefits – through higher wages, more employment opportunities, and increased revenues that support essential public services. This is not a zero-sum debate between homeowners and businesses. It’s about building a stronger economy that works for all Hoosiers."

The initiative has received support from key state leaders, with Sinders expressing gratitude, "We appreciate Governor Braun’s leadership and commend Speaker Huston and President Pro Tem Bray for advancing a forward-looking reform package that positions Indiana for long-term economic success. We urge the Senate to concur and finalize this important legislation."