Signed by Governor Mike Pence

Vote Smart's Synopsis:

Vote to adopt a conference report that reduces state tax rates, effective July 1, 2015.

Highlights:

• Reduces the corporate tax rate from 6.5% in 2016 to 4.9% in 2022 (Sec. 10).

• Authorizes a county to implement an exemption ordinance on “business personal property” if the acquisition cost of such property is less than $20,000 (Sec. 1).

• Defines “business personal property” as the following (Sec. 2):

• Personal property that is otherwise subject to assessment and taxation under the provisions of this bill; and

• Personal property that is used in a trade or business or otherwise held, used or consumed in connection with the production of income.

• Authorizes an exemption on “new personal property” so long as the property was not previously used for services in the state before its acquisition (Sec. 2).

• Authorizes a county income tax council to establish an enhanced abatement schedule for a deduction so long as it does not exceed 20 years (Sec. 6).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that reduces state tax rates, effective July 1, 2015.

Highlights:

• Reduces the corporate tax rate from 6.5% in 2016 to 4.9% in 2022 (Sec. 10).

• Authorizes a county to implement an exemption ordinance on “business personal property” if the acquisition cost of such property is less than $20,000 (Sec. 1).

• Defines “business personal property” as the following (Sec. 2):

• Personal property that is otherwise subject to assessment and taxation under the provisions of this bill; and

• Personal property that is used in a trade or business or otherwise held, used or consumed in connection with the production of income.

• Authorizes an exemption on “new personal property” so long as the property was not previously used for services in the state before its acquisition (Sec. 2).

• Authorizes a county income tax council to establish an enhanced abatement schedule for a deduction so long as it does not exceed 20 years (Sec. 6).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces certain state income tax rates and repeals certain tax credits.

Highlights:

• Reduces the state corporate income tax rate and state franchise income tax rate from 6.5 percent to the following rates (Secs. 4 & 14):
• 6.0 percent after June 30, 2016 and before July 1, 2017;
• 5.5 percent after June 30, 2017 and before July 1, 2018;
• 5.0 percent after June 30, 2018 and before July 1, 2019; and
• 4.9 percent after June 30, 2019.

• Exempts an individual’s business personal property from a county’s personal property tax if his or her business personal property in the county is valued less than $25,000 as reported for federal income tax purposes (Sec. 1). 

• Defines “business personal property” as personal property used in a trade or business or otherwise held, used, or consumed in connection with the production of income (Sec. 1).

• Establishes a commission on business personal property and business taxation that consists of certain individuals including, but not limited to, the following individuals (Sec. 16):
• 1 individual nominated by the Indiana Association of Cities and Towns;
• 1 individual nominated by the Indiana State Chamber of Commerce; and
• 6 members of the Indiana Legislature appointed by the leaders of the majority and minority parties.  

• Reduces the tax credit for a qualified research expense conducted in the State of Indiana beginning January 1, 2015 as follows (Sec. 6):
• From 10 percent to 5 percent for qualified research expenses; or
• From 15 percent to 7.5 percent for qualified research expenses less than $1 million. 

• Repeals an income tax credit for a taxpayer who contributes to a postsecondary educational institution within Indiana or to a foundation operated solely for the benefit of a postsecondary educational institution beginning January 1, 2015 (Sec. 5).

• Prohibits a taxpayer from claiming certain tax credits in a taxable year between December 31, 2014 and January 1, 2024 including, but not limited to, the following tax credits (Secs. 9-10 & 13):
• A tax credit for the production and distribution of biodiesel or blended biodiesel; 
• A tax credit for the production of ethanol; and
• A tax credit for a new employer tax credit for “wages paid.”

• Repeals the certain tax credits for taxpayers that include, but are not limited to, the following tax credits (Secs. 9-10 & 13):
• Blended biodiesel tax credits on January 1, 2021;
• Ethanol production tax credits on January 1, 2021; and
• New employer tax credit on January 1, 2024.

Full Bill Text