Introduced Version
SENATE BILL No. 25
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-2-6.
Synopsis: Income tax deduction for renters. Increases the maximum
renter's deduction for income tax purposes from $3,000 to $4,000 per
taxable year.
Effective: January 1, 2025 (retroactive).
Tomes
January 8, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 25—LS 6011/DI 120 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 25
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-3-2-6, AS AMENDED BY P.L.146-2020,
2 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. (a) Each taxable year,
4 an individual who rents a dwelling for use as the individual's principal
5 place of residence may deduct from the individual's adjusted gross
6 income (as defined in IC 6-3-1-3.5(a)), the lesser of:
7 (1) the amount of rent paid by the individual with respect to the
8 dwelling during the taxable year; or
9 (2) three thousand dollars ($3,000). four thousand dollars
10 ($4,000).
11 (b) Notwithstanding subsection (a):
12 (1) a married couple filing a joint return for a particular taxable
13 year may not claim a deduction under this section of more than
14 three thousand dollars ($3,000); four thousand dollars ($4,000);
15 and
16 (2) a married individual filing a separate return for a particular
17 taxable year may not claim a deduction under this section of more
2025 IN 25—LS 6011/DI 120 2
1 than one thousand five hundred dollars ($1,500). two thousand
2 dollars ($2,000).
3 (c) The deduction provided by this section does not apply to an
4 individual who rents a dwelling that is exempt from Indiana property
5 tax.
6 (d) For purposes of this section, a "dwelling" includes a single
7 family dwelling and unit of a multi-family dwelling.
8 SECTION 2. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
9 (a) IC 6-3-2-6, as amended by this act, applies to taxable years
10 beginning after December 31, 2024.
11 (b) This SECTION expires January 1, 2028.
12 SECTION 3. An emergency is declared for this act.
2025 IN 25—LS 6011/DI 120