LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6375 NOTE PREPARED: Jan 2, 2024
BILL NUMBER: HB 1144 BILL AMENDED:
SUBJECT: Income Tax Credit for Firearms Safety Expenses.
FIRST AUTHOR: Rep. Lucas BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides a state income tax credit for expenses incurred to receive
qualified firearms instruction or to purchase a qualified firearms storage device. It provides that the tax credit
is equal to the amount of the incurred expenses. It also provides that the maximum amount allowed as a tax
credit is $300 for individuals filing single returns or $600 for married couples filing joint returns. The bill
provides that a tax credit may not exceed the taxpayer's state income tax liability. It provides that a taxpayer
is not entitled to a carryover, carryback, or refund of any unused tax credit.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Department of State Revenue (DOR): The DOR will incur additional
expenses to revise their website, tax forms, instructions, and computer programs to reflect the changes made
by the bill. The DOR's current level of resources should be sufficient to implement these changes.
Explanation of State Revenues: The bill establishes a nonrefundable tax credit for qualified firearms
training and purchase of qualified firearms storage devices. The tax credit is effective in tax year 2025 and
may decrease revenue deposited into the General Fund by an estimated $23 M beginning in FY 2026. The
actual revenue impact of the bill will depend on the number of taxpayers who claim the credit and the amount
claimed.
The tax credit is equal to the amount spent on qualified firearms training and firearms storage devices
purchased, up to $300 per year or $600 for joint filers. The credit may be applied to Individual Adjusted
Gross Income (AGI) Tax. The credit may not be carried forward or back.
HB 1144 1 Additional Information - The Indiana State Police reported 135,633 new handgun licenses issued during
calendar year 2021. The estimate assumes 60% of the individuals with new handgun licenses complete a
firearm safety course. The cost for firearm safety courses, storage, and safety equipment vary. A sample of
firearm training providers offered courses ranging from $25 to $1,195, with an average of $140 per course.
The estimated revenue loss for firearm safety devices is based on data on sales of firearm safety devices from
other states that exempt firearm safety devices from sales tax, adjusted for tax rate, price, and population.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of State Revenue.
Local Agencies Affected:
Information Sources: Indiana State Police Firearm Licensing Statistics, 2021.
https://www.in.gov/isp/files/Quarterly-Firearms-Statistics-Q1-4-2021-Rollup.pdf;
https://comptroller.texas.gov/transparency/reports/tax-exemptions-and-incidence/
https://www.ncja.org/crimeandjusticenews/several-states-exempt-gun-safety-devices-from-sales-taxes;
https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/2023%20Tax%20Expenditure
%20Report%20%28PDF%29.pdf;
https://www.capitol.tn.gov/Bills/113/Fiscal/HB7012.pdf;
https://data.census.gov/table/ACSST1Y2021.S1101?q=S1101&g=040XX00US47;
https://dor.wa.gov/sites/default/files/2022-03/20_Retail_Sales_and_Use_Tax_0.pdf;
BEA Regional Price Parities CY 2022.
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1144 2