# Indiana HB 1345: Income tax replacement.

Indiana HB 1345, Income tax replacement., is a First Regular Session 124th General Assembly (2025) House bill sponsored by Bruce Borders (Republican); status failed, last action 2025-01-13 (First reading: referred to Committee on Ways and Means) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/IN-HB1345-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Indiana HB 1345
- State: Indiana
- Session: First Regular Session 124th General Assembly (2025)
- Title: Income tax replacement.
- Status: failed
- Chamber: House
- Introduced: 2025-01-13
- Last action: 2025-01-13, First reading: referred to Committee on Ways and Means
- Sponsor: Bruce Borders (Republican)
- Cosponsors: 0
- Subjects: ways and means
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Eliminates the state adjusted gross income tax by reducing the rate to zero. Provides that the reduction in revenue resulting from the elimination of the state adjusted gross income tax must be offset by adjustments to the state gross retail tax. Provides that in calculating the local income tax (LIT), which is imposed based on a local taxpayer's state adjusted gross income, the calculation of a taxpayer's state adjusted gross income for LIT purposes shall be calculated under the adjusted gross income tax provisions as if those provisions, and the most recent adjusted gross income tax rate before its elimination, were still in effect.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Bruce Borders (Republican), House

## Actions (2)

- 2025-01-13: First reading: referred to Committee on Ways and Means (House)
- 2025-01-13: Authored by Representative Borders (House)

## Bill text

- Introduced House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1345/versions/HB1345.01.INTR?format=pdf)

## Related bills

- SB 324: Criminal procedures. (signed)
- SB 231: Various corrections matters. (signed)
- SB 80: Code publication. (signed)
- SB 453: Various tax matters. (signed)
- SB 464: Financial institutions and consumer credit. (signed)
- SB 371: Workforce matters. (signed)

## Sources
- [Introduced House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1345/versions/HB1345.01.INTR?format=pdf)

## Related
- [SB 324: Criminal procedures.](https://policyrisk.com/state-bill/IN-SB324-2025)
- [SB 231: Various corrections matters.](https://policyrisk.com/state-bill/IN-SB231-2025)
- [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2025)
- [SB 453: Various tax matters.](https://policyrisk.com/state-bill/IN-SB453-2025)
- [SB 464: Financial institutions and consumer credit.](https://policyrisk.com/state-bill/IN-SB464-2025)
- [SB 371: Workforce matters.](https://policyrisk.com/state-bill/IN-SB371-2025)
- [Indiana bills](https://policyrisk.com/states/indiana/bills)
- [Indiana state hub](https://policyrisk.com/states/indiana)
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Source: PRIA, https://policyrisk.com/state-bill/IN-HB1345-2025 (as of 2026-10-17).