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 6362 NOTE PREPARED: Jan 2, 2024
BILL NUMBER: HB 1318 BILL AMENDED:
SUBJECT: Tax Credit for Safe Gun Storage Expenses.
FIRST AUTHOR: Rep. Hall BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides that a taxpayer is entitled to a credit against the taxpayer's state
income tax liability in a taxable year equal to the lesser of:
(1) 20% multiplied by the safe gun storage expenses incurred by the taxpayer during the taxable
year; or
(2) $500 in the case of an individual filing a single return (or $250 in the case of a married individual
filing a separate return).
The bill defines "safe gun storage expenses" as the purchase price of a qualified firearms storage device. It
defines "qualified firearms storage device" as: (1) a safe, lockbox, cabinet, or other container designed to
store firearms securely by restricting access to the firearms by a locking device; or (2) a locking device that,
when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating
the device.
It provides that to obtain the credit, the taxpayer must claim the credit in the manner prescribed by the
Department of State Revenue (DOR). It requires the taxpayer to submit to the DOR proof of the taxpayer's
safe gun storage expenses and all information that the DOR determines is necessary for the calculation of
the credit. The bill also prohibits the taxpayer from claiming any carryover, carryback, or refund of any
unused 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
HB 1318 1 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 safe gun storage
expenses. The tax credit is effective in tax year 2025 and may decrease revenue deposited into the General
Fund by an estimated $2.4 M beginning in FY 2026.
The tax credit is equal to the lesser of 20% of the amount spent on safe gun storage expenses up to $500. The
credit may be applied to Individual Adjusted Gross Income (AGI) Tax. The credit may not be carried forward
or back. The estimated revenue loss is based on 20% of 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: 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 1318 2