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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowWhile many chairs are winding down hearings on the bills assigned to their committees, one of the most anticipated pieces of legislation for the 2025 session had its first committee hearing this week.
The Senate Tax and Fiscal Policy Committee on Tuesday considered Senate Bill 1, which is the vehicle for Gov. Mike Braun’s ambitious property tax overhaul. The legislation includes expanded homestead deductions and stricter caps on tax bills as well as targeted relief for some homeowners. The bill motivated local government officials, who worry the bill will reduce their revenue substantially, to come the Statehouse to testify.
IBJ is tracking SB 1 and other key bills that could impact the state’s economic development, health care and workforce efforts. 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.
- 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: Senate introduction and committee assignment
- 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: Amended and passed 22-1 in House Ways and Means Committee, Feb. 5
- Awaiting: Consideration on House floor
- Status: Progressing
- 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: Second hearing in House Judiciary Committee, Feb. 3 (held for more amendments)
- Awaiting: Committee vote
- Status: Progressing
- Provides a sales tax rebate to incentivize projects that enhance tourism and allows for the creation of tourism improvement districts
- Author: Rep. Michael Karickhoff, R-Kokomo
- Last action: Amended and passed 11-0 in House Government and Regulatory Reform Committee, Feb. 3
- Awaiting: Hearing in House Ways & Means Committee
- Status: Progressing
- Establishes parameters for what agricultural land could be included in an economic revitalization area
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Senate Tax and Fiscal Policy Committee
- Status: No movement
- Requires the governor to terminate economic development deals with companies or firms based in an adversary country
- Author: Sen. Mike Bohacek, R-Michiana Shores
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Senate Homeland Security and Transportation Committee
- Status: No movement
- Creates a tax credit for certain capital investments made in rural funds to incentivize investment in rural businesses
- Author: Rep. Shane Lindauer, R-Jasper
- Last action: Introduced Jan. 21
- Awaiting: Hearing in House Ways and Means Committee
- Status: No movement
Indiana Economic Development Corp.
The IEDC has been developing the LEAP Research and Innovation District in Boone County, but critics—including several lawmakers and, at times, Braun—have questioned the transparency around and cost of the land deals used to create the district, possible projects to bring water to the site and the infrastructure development needed to make the area suitable for bit projects. Several bills address LEAP.
- Specifies regional economic development funding, such as READI, must fall within certain project requirements.
- Authors: Sens. Greg Goode, R-Terre Haute; and Jeff Raatz, R-Richmond
- Last action: Hearing in Senate Appropriations Committee, Jan. 23
- Awaiting: Committee vote
- Status: Progressing
- Designates an ombudsman or a state employee to investigate and resolves complaints related to the IEDC, requires the IEDC board to include two nonvoting legislative members, and requires the IEDC to establish a dashboard with information about economic incentives and compliance that is more accessible to the public
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Commerce and Technology Committee
- Status: No movement
- Requires two lawmakers be appointed to the IEDC board and dedicates 5% of IEDC funding for fiscal years 2026 and 2027 to be used for economic development projects located in counties with a population of less than 50,000 (similar to Senate Bill 251)
- Author: Rep. Matt Commons, R-Williamsport
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Government and Regulatory Reform Committee
- Status: No movement
- Requires a regional development authority, not the IEDC, to designate an area within its territory as a regional innovation development and manufacturing district
- Author: Rep. Dave Heine, R-Fort Wayne
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Ways and Means Committee
- Status: No movement
- Requires all Regional Economic Acceleration and Development Initiative, or READI, 1.0 funds be spent before READI 2.0 funds can be made available. 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: Introduced Jan. 21
- Awaiting: Hearing in House Ways and Means Committee
- Status: No movement
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: Amended and passed 13-0 in the Senate Education and Career Development Committee, Feb. 5
- Awaiting: Hearing in Senate Appropriations 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 11-0 in Senate Pensions and Labor Committee, Jan. 29
- Awaiting: Hearing in Senate Appropriations Committee
- Status: Progressing
- Creates a workforce housing assistance program so workers can receive financial support to buy a home
- Author: Rep. Doug Miller, R-Elkhart
- Last action: Amended and passed 11-1 in the House Financial Institutions Committee, Jan. 28
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
- Reduces the maximum time a person is allowed to be on unemployment benefits by almost half
- Author: Sen. Scott Alexander, R-Muncie
- Last action: Hearing in Senate Pensions and Labor Committee
- Awaiting: Committee vote
- Status: Progressing
- Prohibits nondisclosure agreements
- Author: Rep. Chris Judy, R-Fort Wayne
- Last action: Introduced Jan. 21
- Awaiting: Hearing in the House Employment, Labor and Pensions Committee
- Status: No movement
Data centers
Indiana has become fertile ground for tech companies to build massive data centers, with four major investments totaling more than $14 billion announced in the last year. Those data centers are filled with computers, servers and cooling systems that run around the clock and use huge amounts of electricity, prompting concerns about the centers’ impact on power supply.
- 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: Consideration by the full House
- Status: Progressing
- Requires data center developments to provide the Indiana Utility Regulatory Commission with quarterly reports about electricity usage
- Author: Sen. J.D. Ford D-Indianapolis
- Last action: Introduced Jan. 8.
- Awaiting: Hearing in Senate Utilities Committee
- Status: No movement
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.
- 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 22-0 in the House Family, Children and Human Affairs Committee, Feb. 4
- Awaiting: Consideration on House floor
- Status: Progressing
- 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 10-1 in Senate Health and Provider Services Committee, Jan. 29
- Awaiting: Hearing in Senate Appropriations Committee
- Status: Progressing
- Allows a child care provider to continue receiving voucher payments until a final decision about their license or eligibility is no longer in good standing
- Author: Rep. Ethan Manning, R-Logansport
- Last action: Introduced Jan. 13.
- Awaiting: Hearing in the House Family, Children and Human Affairs Committee
- Status: No movement
- Establishes a fund to incentivize employers to contribute to the child care costs of the employer’s employees
- Bill author: Rep. Wendy Dant Chesser, D-Jeffersonville
- Last action: Introduced
- Awaiting: Hearing in the House Family, Children and Human Affairs Committee
- Status: No movement
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.
- 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: Amended and passed 10-3 in House Courts and Criminal Code Committee, Feb. 5
- Awaiting: Hearing in House Ways and Means 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: Amended and passed Senate 48-1, Feb. 3
- Awaiting: House introduction and committee assignment
- Status: Progressing
- 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: Amended and passed 22-0 House Ways and Means Committee Feb. 4
- Awaiting: Consideration on the House floor
- 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: House introduction and committee assignment
- Status: Progressing
- Allows Marion County residents to vote, through a referendum, for property-tax hikes that would be used to pay for road improvements and gives local communities options for addressing road-funding gaps, while also attempting to address the state’s road-funding issues
- Author: Rep. Jim Pressel, R-Rolling Prairie
- Last action: Hearing in House Roads and Transportation Committee, Jan. 27
- Awaiting: Committee vote Feb. 10
- Status: Progressing
- Gives power to the attorney general to bring actions against towns, cities and counties that have an ordinance prohibiting public camping but have a policy not to enforce it
- Author: Sen. Aaron Freeman, R-Indianapolis
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Senate Local Government Committee
- Status: No movement
- Allow a Marion Superior Court judge to be removed through a ballot question
- Author: Rep. Andrew Ireland, R-Indianapolis
- Last action: Introduced Jan. 21
- Awaiting: Hearing in the House Courts and Criminal Code Committee
- Status: No movement
- Require the Indiana Department of Transportation to build at least one additional lanes on Interstate 70 east and westbound
- Author: Rep. Tonya Pfaff, D-Terre Haute
- Last action: Introduced Jan. 8
- Awaiting: Hearing in House Roads and Transportation Committee
- Status: No movement
Taxes
Braun and legislative leaders have prioritized changes that would reduce property taxes and could have a significant impact on local government spending.
- Enacts parts of Gov. Mike Braun’s property tax plan, including expanded homestead deductions, tight tax bill caps with targeted relief and referenda reform
- Author: Sen. Travis Holdman, R-Markle
- Last action: Hearing in Senate Tax and Fiscal Policy Committee, Feb. 4
- Awaiting: Committee vote
- 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: House introduction and committee assignment
- Status: Progressing
- Increases the acquisition cost threshold for the business personal property tax exemption from $80,000 to $160,000
- Authors: Sens. Aaron Freeman, R-Indianapolis; and Chris Garten, R-Charlestown
- Last action: Passed 8-2 in the Senate Tax and Fiscal Policy Committee, Jan. 28
- Awaiting: Consideration by full Senate
- Status: Progressing
- Allows a county to establish a property tax payment deferral program
- Authors: Sens. Linda Rogers, R-Granger; Travis Holdman, R-Markle; and Brian Buchanan, R-Lebanon
- Last action: Hearing in the Senate Tax and Fiscal Policy Committee, Jan. 28
- Awaiting: Committee vote
- Status: Progressing
- Requires a school referendum to take place during a primary election conducted in a general election year (rather than during a primary or municipal election)
- Authors: Sens. Brian Buchanan, R-Lebanon; Mike Gaskill, R-Pendleton; and Linda Rogers, R-Granger
- Last action: Hearing in the Senate Tax and Fiscal Policy Committee, Jan. 28
- Awaiting: Committee vote
- Status: Progressing
- Amends the formula that determines how much property tax revenue a county can collect. The formula would no longer be uniform statewide but tailored to each county based on four fiscal metrics.
- Author: Sen. Scott Baldwin, R-Noblesville
- Last action: Hearing in the Senate Tax and Fiscal Policy Committee, Jan. 28
- Awaiting: Committee vote
- Status: Progressing
- Increases the cigarette tax from $1 to $2
- Author: Rep. Elizabeth Rowray, R-Yorktown
- Last action: Introduced Jan. 9
- Awaiting: Hearing in House Ways and Means Committee
- Status: No movement
- Provides sales tax exemptions for feminine hygiene products and adult diapers
- Author: Rep. Mark Genda, R-Frankfort
- Last action: Introduced Jan. 8.
- Awaiting: Hearing in House Ways and Means Committee
- Status: No movement
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.
- Enacts a range of measures to increase transparency
- Author: Rep. Brad Barrett, R-Richmond
- Last action: Amended and passed 7-3 in House Insurance Committee, Feb. 4
- Awaiting: Hearing in House Ways and Means Committee
- Status: Progressing
- More closely polices nonprofit hospitals and what they charge for services. Says that if charges at a nonprofit hospital exceed 200% of that rate at the time of the charge, the hospital would face forfeiture of its state nonprofit status.
- Author: Rep. Martin Carbaugh, R-Fort Wayne
- Last action: Hearing in Public Health Committee, Jan. 28
- Awaiting: Committee vote
- Status: Progressing
- Installs 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: Amended and passed 11-0 in Senate Health and Provider Services Committee, Jan. 29
- Awaiting: Consideration by full Senate
- 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: Hearing in Senate Appropriations Committee Jan. 16
- Awaiting: Committee vote
- Status: Progressing
- Creates work requirements for some Medicaid recipients
- Author: Rep. Harold Slager, R-Schererville
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Public Health Committee
- Status: No movement
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 manufacturing of a small modular nuclear reactor
- Author: Rep. Ed Soliday, R-Valparaiso
- Last action: Amended and passed 16-7 in House Ways and Means Committee, Feb. 5
- Awaiting: Consideration by full House
- Hearing in 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: House introduction and committee assignment
- 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: House introduction and committee assignment
- Status: Progressing
- Creates a two-year task force to study water regulation and installs a moratorium to limit significant water withdrawal projects and pipelines that would transfer water out of the Wabash region for two years
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Utilities Committee
- Status: No movement
And everything else
- 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
- Awaiting: House introduction and committee assignment
- 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: Senate introduction and committee assignment
- Status: Progressing
- 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: Introduced Jan. 21
- Awaiting: Hearing in House Government and Regulatory Reform Committee
- Status: No movement
- Legalizes marijuana for those over age 21
- Author: Rep. Heath VanNatter, R-Kokomo
- Last action: Introduced Jan. 21
- Awaiting: Hearing in House Courts and Criminal Code Committee
- Status: No movement
- Bans sale of e-liquid or vape products
- Author: Rep. Elizabeth Rowray, R-Yorktown
- Last action: Introduced Jan. 8
- Awaiting: Hearing in House Public Policy Committee
- Status: No movement
Know of a bill that should be on our radar? Contact IBJ’s statehouse reporter Cate Charron at ccharron@ibj.com.
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WHAT ABOUT WATER USEAGE?? A single data center can consume up to 5 million gallons of drinking water per day.