# Indiana SB 259: Partnership composite returns. Indiana SB 259, Partnership composite returns., is a Second Regular Session 124th General Assembly (2026) Senate bill sponsored by Scott Baldwin (Republican); status signed, last action 2026-03-03 (Signed by the Governor); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/IN-SB259-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana SB 259 - State: Indiana - Session: Second Regular Session 124th General Assembly (2026) - Title: Partnership composite returns. - Status: signed - Chamber: Senate - Introduced: 2026-01-08 - Last action: 2026-03-03, Signed by the Governor - Sponsor: Scott Baldwin (Republican) - Cosponsors: 3 - Subjects: tax and fiscal policy, the house, ways and means - Touches household money: yes - Roll calls: 2 (137 yes, 0 no in all) - Economic provisions PRIA read: 3 ## Summary Removes penalty provisions that apply if a pass through entity fails to include in a composite return nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive share income of greater than $0. Makes conforming changes. ## Bill overview: provisions PRIA read - Penalty relief for small partnerships: benefit, low. For returns due after December 31, 2024, qualifying partnerships get help avoiding penalties for late or incomplete Indiana IT-65 returns. The law presumes reasonable cause when all five conditions are met. The partnership has no more than 10 partners; a married couple filing jointly counts as one.… - Businesses face penalties for missing nonresidents: cost, low. A pass-through entity faces a $500 penalty when its combined tax return leaves out a required nonresident. The penalty is per entity, not per omitted person. For trusts and estates, it covers omitted nonresident beneficiaries with more than $0 of Indiana-source distributable net income. No penalty… - Nonresident tax rules cover some nonprofits: cost, low. Indiana's pass-through entity tax rules now count some tax-exempt nonprofit corporations as nonresidents. This covers 501(c)(3) corporations exempt under Section 501(a) whose legal home is outside Indiana. They must also own shares in a corporation covered by IC 6-3-2-2.8(2). This classification ch… ## Sponsors and cosponsors - Sponsor: Scott Baldwin (Republican), Senate - Cosponsor: Craig Snow (Republican), House - Cosponsor: Lonnie Randolph (Democratic), Senate - Cosponsor: Travis Holdman (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-02-23 | House | Third reading: passed | pass | 93 | 0 | | | 2026-01-26 | Senate | Third reading: passed | pass | 44 | 0 | | ## Actions (19) - 2026-03-03: Signed by the Governor (Senate) - 2026-03-03: Public Law 48 (Senate) - 2026-02-26: Signed by the President of the Senate (Senate) - 2026-02-25: Signed by the Speaker (House) - 2026-02-24: Signed by the President Pro Tempore (Senate) - 2026-02-24: Returned to the Senate without amendments (House) - 2026-02-23: Third reading: passed; Roll Call 311: yeas 93, nays 0 (House) - 2026-02-19: Second reading: ordered engrossed (House) - 2026-02-17: Committee report: do pass, adopted (House) - 2026-01-28: First reading: referred to Committee on Ways and Means (House) - 2026-01-27: Referred to the House (Senate) - 2026-01-26: Senator Holdman added as second author (Senate) - 2026-01-26: Third reading: passed; Roll Call 83: yeas 44, nays 0 (Senate) - 2026-01-26: House sponsor: Representative Snow (Senate) - 2026-01-22: Second reading: ordered engrossed (Senate) - 2026-01-20: Committee report: amend do pass, adopted (Senate) - 2026-01-15: Senator Randolph added as coauthor (Senate) - 2026-01-08: First reading: referred to Committee on Tax and Fiscal Policy (Senate) - 2026-01-08: Authored by Senator Baldwin (Senate) ## Bill text - Enrolled Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.04.ENRH?format=pdf) - Introduced Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.01.INTR?format=pdf) - Senate Bill (H): [PDF](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.02.COMS?format=pdf) - Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.03.COMH?format=pdf) ## Related bills - SB 239: Various education matters. (signed) - SB 204: Various education matters. (signed) - SB 179: Indiana department of transportation. (signed) - SB 185: Alcohol and tobacco matters. (signed) - SB 80: Code publication. (signed) - HB 1424: Farm and homestead food sales. (signed) ## Sources - [Enrolled Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.04.ENRH?format=pdf) - [Introduced Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.01.INTR?format=pdf) - [Senate Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.02.COMS?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0259/versions/SB0259.03.COMH?format=pdf) ## Related - [SB 239: Various education matters.](https://policyrisk.com/state-bill/IN-SB239-2026) - [SB 204: Various education matters.](https://policyrisk.com/state-bill/IN-SB204-2026) - [SB 179: Indiana department of transportation.](https://policyrisk.com/state-bill/IN-SB179-2026) - [SB 185: Alcohol and tobacco matters.](https://policyrisk.com/state-bill/IN-SB185-2026) - [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2026) - [HB 1424: Farm and homestead food sales.](https://policyrisk.com/state-bill/IN-HB1424-2026) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-SB259-2026 (as of 2026-11-01).