Indiana lawmakers advance tax cut bills

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The Indiana Senate has passed a bill that would give 4.3 million Hoosier taxpayers a $125 refund after filing their 2021 taxes.

INDIANAPOLIS — The Indiana Senate has passed a bill that would give 4.3 million Hoosier taxpayers a $125 refund after filing their 2021 taxes. The bill now goes to the House.

The refund was proposed by Gov. Eric Holcomb because the state ended the fiscal year with an unprecedented amount of reserves, which allowed some of that money to be returned to citizens.

An estimated $545 million will return to the Hoosiers’ pockets after they file their taxes. The DOR expects all refunds to be processed by May 1, 2022 for Hoosiers who complete their taxes by the April 18 deadline.

RELATED: Holcomb: Every Hoosier Gets A Tax Refund

The $125 credit represents a 12-13% tax reduction for most Hoosiers. The typical taxpayer liability is around $1,000.

Republicans in the House pushed a Plan Broad Indiana Business and Personal Tax Cuts, sending him to an uncertain fate in the GOP-dominated Senate.

House members voted 68 to 25 on Thursday, mostly along party lines, in favor of the proposal to potentially cut more than $1 billion a year in various taxes.

Key elements of the House plan would reduce Indiana’s current personal income tax rate from 3.23% over the next four years to 3%, as well as reducing several business taxes.

Republican Gov. Eric Holcomb and GOP Senate leaders have raised doubts about taking action on deep tax cuts this year.


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