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Yes: 251 • No: 32
IndianaHB 1406Second Regular Session 124th General Assembly (2026)HouseWALLET
Tax and fiscal matters.
Sponsored By: Jeffrey Thompson (Republican)
Became Law
ways and meansthe senatetax and fiscal policy
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 9 benefits, 3 costs, 4 mixed.
Help for Indiana startups and funds
If your certified credit is bigger than your tax bill, you can carry it forward up to five years. For credits on investments after June 30, 2020 and before July 1, 2029, you can assign $10,000 or more to another person with notice and reporting. IEDC certifies “qualified Indiana businesses” with Indiana HQ, under $10 million average revenue in the prior two years, tech and R&D focus, and other tests. Investment funds can be certified if their policy targets commercialization and prioritizes Indiana‑backed or Indiana‑based companies. Certified funds get paperwork to give investors for tax filing.
Small Town Opportunity redevelopment credits
The Small Town Opportunity program supports big downtown projects of at least $15 million. Approved for‑profit projects get a 20% tax credit. Approved nonprofit projects get 30%. The state also awards $35 million each year to development authorities to grant to approved redevelopment investments. For nonprofits, some pre‑application site costs can count if they had site control and the state finds it in the public interest. Certified projects have no statutory or rule‑based repayment duty. Plans must show strong local matches, clear 5‑ and 10‑year goals, and at least a 4‑to‑1 total investment return compared to state funds. From July 1, 2026 to June 30, 2028, certain regional nonprofits may act as development authorities.
30% floor on business equipment values
For assets placed in service on or before January 1, 2025, your depreciable personal property value in a taxing district cannot go below 30% of adjusted cost. That can raise assessed value and property tax. Newer property placed after January 1, 2025 is not subject to this floor, unless it sits in an older TIF area or is owned by certain utilities. Equipment not in service, special tooling, and permanently retired items are excluded.
Credit cap and ban on foreign-tied firms
IEDC can certify no more than $300 million in tax credits each state fiscal year for years ending on or after July 1, 2025. Of that, $50 million is reserved for community projects. The agency cannot give credits to companies organized in, headquartered in, or majority owned by a country listed as a foreign adversary as of July 1, 2026. False statements lead to revocation and repayment. The $300 million cap section ends December 31, 2032.
Property tax break for childcare centers
For assessment dates after December 31, 2025, a for‑profit early childhood provider serving children under six can qualify for the educational‑use property tax exemption. The provider must meet all rules in section 46. Only the part of the property used for education is exempt.
Sales tax break for small nonprofits
Qualifying nonprofits are exempt from sales tax on their small sales. The exemption holds if sales are $100,000 or less in the current or prior year. If sales go over $100,000, the group must collect sales tax until it stays under $100,000 for two straight years. Some youth and patriotic groups are now included. Certain sales by public libraries of items from circulated collections are also exempt.
Hospital and care facility tax breaks
Land bought by an Indiana nonprofit hospital system to build an exempt facility can be tax‑exempt if the system gets a certificate of occupancy (or completion paperwork) within four years. If it later sells, leases, or transfers the land, the system must pay the taxes not charged from January 1 of the fourth year through the transfer year; installment plans are allowed. For property taxes first due in 2025 and 2026, certain nonprofit care providers, including registered CCRCs with entry fees at or below $500,000 per unit, are treated as charitable and are exempt. That temporary rule ends January 1, 2027.
Limits and deposits for tech parks
Each certified technology park’s incremental tax fund has a $5 million lifetime cap. After reaching it, a Level 2 park can get up to $250,000 a year or its income tax increment, whichever is less. Level 3 parks follow similar caps but stop getting some tax deposits after June 30, 2029. The state now defines how to calculate the income tax increment for park wages. Monthly distributions go to redevelopment groups by the 20th.
SNAP EBT app adds security controls
When Indiana hires SNAP EBT vendors, the contract must include a mobile app. The app lets you lock or unlock your card, block out‑of‑state or online transactions, and get alerts for suspicious activity. This requirement ends July 1, 2029.
Fewer private transfer fees on homes
Only transfers where the owner gets paid can trigger a private transfer‑fee covenant. The law narrows “transfer” to those paid transactions. Some sales may avoid these fees.
Clearer property tax bills and e-delivery
County treasurers send one detailed property tax statement each year by April 15. It shows current and late taxes, where your money goes, last year’s amounts, and a payment coupon. Counties can email statements only if they pass an ordinance and you opt in by March 15. Bills first due in 2027 must say if your 2027 bill is lower than 2026 and by how much.
One-time $300K for grain licensing
For the fiscal year starting July 1, 2026, the budget agency may add up to $300,000 from the license fee fund to run the grain buyers and warehouse licensing program. The budget committee reviews this action. This authority ends July 1, 2027.
Bedford food and beverage tax
Starting July 1, 2026, Bedford can adopt a city food and beverage tax after a public hearing. The rate must be in 0.25% steps and can’t be more than 1.00%. Money goes to economic development and tourism or to pay related debt. This tax ends January 1, 2049.
Cash rounding and timing rules
Starting March 15, 2026, businesses may round totals to the nearest five cents, or round up or down. Amounts under $0.05 may be rounded to $0.00 or $0.05. New cash‑transaction timing rules apply to sales delivered after March 14, 2026, unless you signed and paid before March 15, 2026. Another timing section applies to cash transactions after December 31, 2026. These timing sections expire January 1, 2030.
Delaware County merges hospitality tax boards
Delaware County may combine its innkeeper’s tax and food and beverage tax boards into one entity by ordinance. The old boards end, and the new one takes over funds, contracts, and duties. Members must live in the county.
New tests for public library levies
For libraries whose boards are not mostly elected officials, the budget growth test now uses a 0.5 multiplier. If a library misses a filing, the fallback maximum levy formula uses 0.49 instead of 0.8. Changes take effect July 1, 2026.
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Sponsors & Cosponsors
Sponsor
Jeffrey Thompson
Republican • House
Cosponsors
Scott Baldwin
Republican • Senate
Travis Holdman
Republican • Senate
Roll Call Votes
House vote • 2/27/2026
Roll Call 426 on HB1406.03.COMS.CCH001
Yes: 65 • No: 31
Senate vote • 2/27/2026
Roll Call 332 on HB1406.03.COMS.CCS001
Yes: 46 • No: 1 • Other: 3
Senate vote • 2/24/2026
Roll Call 261 on HB1406.03.COMS
Yes: 48 • No: 0
House vote • 2/2/2026
Roll Call 186 on HB1406.02.COMH
Yes: 92 • No: 0 • Other: 2
Actions Timeline
Public Law 162
3/12/2026HouseSigned by the Governor
3/12/2026HouseSigned by the President Pro Tempore
3/5/2026SenateSigned by the Speaker
3/3/2026HouseSigned by the President of the Senate
3/2/2026SenateRepresentative Porter removed as conferee
2/27/2026HouseRules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 426: yeas 65, nays 31
2/27/2026HouseCCR # 1 filed in the House
2/27/2026HouseCCR # 1 filed in the House
2/27/2026HouseRules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 332: yeas 46, nays 1
2/27/2026SenateCCR # 1 filed in the Senate
2/27/2026SenateRepresentative Snow added as conferee
2/27/2026HouseHouse conferees appointed: Thompson, Porter
2/25/2026HouseSenate advisors appointed: Baldwin, Niezgodski
2/25/2026SenateMotion to dissent filed
2/25/2026HouseReturned to the House with amendments
2/25/2026SenateSenate conferees appointed: Holdman, Hunley
2/25/2026SenateHouse dissented from Senate amendments
2/25/2026HouseHouse advisors appointed: Jordan, Prescott, Pryor
2/25/2026HouseThird reading: passed; Roll Call 261: yeas 48, nays 0
2/24/2026SenateSecond reading: ordered engrossed
2/23/2026SenateSenator Baldwin added as second sponsor
2/17/2026SenateCommittee report: amend do pass, adopted
2/17/2026SenateFirst reading: referred to Committee on Tax and Fiscal Policy
2/5/2026SenateReferred to the Senate
2/3/2026House
Bill Text
Enrolled House Bill (H)
House Bill (H)
House Bill (S)
Introduced House Bill (H)
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