Introduced Version
SENATE BILL No. 361
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-2-6.
Synopsis: Renter's deduction for disabled veterans. Provides an
additional tax deduction for a disabled veteran who rents a dwelling for
use as the disabled veteran's principal place of residence.
Effective: January 1, 2026.
Niezgodski
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 361—LS 6988/DI 116 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. 361
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, 2026]: Sec. 6. (a) Each taxable year, an individual who
4 rents a dwelling for use as the individual's principal place of residence
5 may deduct from the individual's adjusted gross income (as defined in
6 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).
10 (b) Notwithstanding subsection (a):
11 (1) a married couple filing a joint return for a particular taxable
12 year may not claim a deduction under this section of more than
13 three thousand dollars ($3,000); and
14 (2) a married individual filing a separate return for a particular
15 taxable year may not claim a deduction under this section of more
16 than one thousand five hundred dollars ($1,500).
17 (c) Each taxable year, an individual who is a disabled veteran
2025 IN 361—LS 6988/DI 116 2
1 and claims a deduction under subsection (a) for the taxable year
2 may deduct an additional amount from the individual's adjusted
3 gross income equal to the lesser of:
4 (1) the amount of the deduction granted under subsection (a)
5 multiplied by the individual's disability rating as determined
6 by the United States Department of Veterans Affairs; or
7 (2) three thousand dollars ($3,000).
8 (c) (d) The deduction provided by this section does not apply to an
9 individual who rents a dwelling that is exempt from Indiana property
10 tax.
11 (d) (e) For purposes of this section, a "dwelling" includes a single
12 family dwelling and unit of a multi-family dwelling.
13 SECTION 2. [EFFECTIVE JANUARY 1, 2026] (a) IC 6-3-2-6, as
14 amended by this act, applies to taxable years beginning after
15 December 31, 2025.
16 (b) This SECTION expires July 1, 2029.
2025 IN 361—LS 6988/DI 116