Introduced Version
SENATE BILL No. 392
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12-14; IC 6-1.1-20.6-8.5.
Synopsis: Property tax relief for seniors and veterans. Makes certain
changes to the qualification requirements and credit amount for the
over 65 circuit breaker credit. Makes certain changes to the
qualification requirements and deduction amount for the property tax
deduction for disabled veterans who are either totally disabled or at
least 62 years of age with a partial disability.
Effective: January 1, 2025 (retroactive).
Rogers, Gaskill, Buchanan
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 392—LS 6684/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. 392
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 6-1.1-12-14, AS AMENDED BY P.L.136-2024,
2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14. (a) Except as
4 provided in subsection (c) and except as provided in section 40.5 of
5 this chapter, an individual may have the sum of fourteen thousand
6 dollars ($14,000) set forth in subsection (g) deducted from the
7 assessed value of the real property, mobile home not assessed as real
8 property, or manufactured home not assessed as real property that the
9 individual owns (or the real property, mobile home not assessed as real
10 property, or manufactured home not assessed as real property that the
11 individual is buying under a contract that provides that the individual
12 is to pay property taxes on the real property, mobile home, or
13 manufactured home if the contract or a memorandum of the contract is
14 recorded in the county recorder's office) if:
15 (1) the individual served in the military or naval forces of the
16 United States for at least ninety (90) days;
17 (2) the individual received an honorable discharge;
2025 IN 392—LS 6684/DI 120 2
1 (3) the individual either:
2 (A) has a total disability; or
3 (B) is at least sixty-two (62) years old and has a disability of at
4 least ten percent (10%);
5 (4) the individual's disability is evidenced by:
6 (A) a pension certificate or an award of compensation issued
7 by the United States Department of Veterans Affairs; or
8 (B) a certificate of eligibility issued to the individual by the
9 Indiana department of veterans' affairs after the Indiana
10 department of veterans' affairs has determined that the
11 individual's disability qualifies the individual to receive a
12 deduction under this section; and
13 (5) the individual:
14 (A) owns the real property, mobile home, or manufactured
15 home; or
16 (B) is buying the real property, mobile home, or manufactured
17 home under contract;
18 on the date the statement required by section 15 of this chapter is
19 filed.
20 (b) Except as provided in subsections (c) and (d), the surviving
21 spouse of an individual may receive the deduction provided by this
22 section if:
23 (1) the individual satisfied the requirements of subsection (a)(1)
24 through (a)(4) at the time of death; or
25 (2) the individual:
26 (A) was killed in action;
27 (B) died while serving on active duty in the military or naval
28 forces of the United States; or
29 (C) died while performing inactive duty training in the military
30 or naval forces of the United States; and
31 the surviving spouse satisfies the requirement of subsection (a)(5) at
32 the time the deduction statement is filed. The surviving spouse is
33 entitled to the deduction regardless of whether the property for which
34 the deduction is claimed was owned by the deceased veteran or the
35 surviving spouse before the deceased veteran's death.
36 (c) Except as provided in subsection (f), no one is entitled to the
37 deduction provided by this section if the assessed value of the
38 individual's Indiana real property, Indiana mobile home not assessed as
39 real property, and Indiana manufactured home not assessed as real
40 property, as shown by the tax duplicate, exceeds the assessed value
41 limit specified in subsection (d).
42 (d) Except as provided in subsection (f), for the:
2025 IN 392—LS 6684/DI 120 3
1 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
2 assessment dates, the assessed value limit for purposes of
3 subsection (c) is one hundred seventy-five thousand dollars
4 ($175,000);
5 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
6 January 1, 2023, assessment dates, the assessed value limit for
7 purposes of subsection (c) is two hundred thousand dollars
8 ($200,000); and
9 (3) January 1, 2024, assessment date, and for each assessment
10 date thereafter, the assessed value limit for purposes of subsection
11 (c) is two hundred forty thousand dollars ($240,000).
12 (4) January 1, 2025, assessment date, the assessed value limit
13 for purposes of subsection (c) is three hundred thousand
14 dollars ($300,000), and beginning for the January 1, 2026,
15 assessment date and each assessment date thereafter, the
16 amount shall be adjusted annually by a percentage equal to
17 the percentage increase, if any, as determined under
18 subsection (h).
19 (e) An individual who has sold real property, a mobile home not
20 assessed as real property, or a manufactured home not assessed as real
21 property to another person under a contract that provides that the
22 contract buyer is to pay the property taxes on the real property, mobile
23 home, or manufactured home may not claim the deduction provided
24 under this section against that real property, mobile home, or
25 manufactured home.
26 (f) For purposes of determining the assessed value of the real
27 property, mobile home, or manufactured home under subsection (d) for
28 an individual who has received a deduction under this section in a
29 previous year, increases in assessed value that occur after the later of:
30 (1) December 31, 2019; or
31 (2) the first year that the individual has received the deduction;
32 are not considered unless the increase in assessed value is attributable
33 to substantial renovation or new improvements. Where there is an
34 increase in assessed value for purposes of the deduction under this
35 section, the assessor shall provide a report to the county auditor
36 describing the substantial renovation or new improvements, if any, that
37 were made to the property prior to the increase in assessed value.
38 (g) The amount of the deduction under subsection (a) is equal
39 to:
40 (1) fourteen thousand dollars ($14,000), if the assessed value
41 of the individual's property is three hundred thousand dollars
42 ($300,000) or less; and
2025 IN 392—LS 6684/DI 120 4
1 (2) seven thousand dollars ($7,000), if the assessed value of the
2 individual's Indiana real property is more than three hundred
3 thousand dollars ($300,000), but not more than four hundred
4 thousand dollars ($400,000);
5 and beginning for the January 1, 2026, assessment date and each
6 assessment date thereafter, each of the assessed value dollar
7 amounts shall be adjusted annually by a percentage equal to the
8 percentage increase, if any, as determined under subsection (h).
9 (h) As used in this subsection, "median home sale price" means
10 the median home sale price as determined each month for Indiana
11 by the National Association of Realtors. The annual adjustment
12 under subsections (d)(4) and (g) is equal to the year over year
13 change in:
14 (1) the year end average of the monthly median home sale
15 prices in Indiana statewide for the immediately preceding
16 calendar year before the assessment date; compared to
17 (2) the year end average of the monthly median home sale
18 prices in Indiana statewide for the calendar year preceding
19 the assessment date by two (2) years;
20 expressed as a percentage, but not less than zero (0). For purposes
21 of applying the annual adjustment under subsections (d)(4) and (g),
22 the annual percentage increase, if any, is applied to the adjusted
23 amount from the immediately preceding year.
24 SECTION 2. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
25 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. (a) This section
27 applies to an individual who:
28 (1) qualified for a standard deduction granted under
29 IC 6-1.1-12-37 for the individual's homestead property in the
30 immediately preceding calendar year (or was married at the time
31 of death to a deceased spouse who qualified for a standard
32 deduction granted under IC 6-1.1-12-37 for the individual's
33 homestead property in the immediately preceding calendar year);
34 (2) qualifies for a standard deduction granted under
35 IC 6-1.1-12-37 for the same homestead property in the current
36 calendar year;
37 (3) is or will be at least sixty-five (65) years of age on or before
38 December 31 of the calendar year immediately preceding the
39 current calendar year; and
40 (4) had:
41 (A) for an assessment date before January 1, 2025:
42 (A) (i) in the case of an individual who filed a single return,
2025 IN 392—LS 6684/DI 120 5
1 adjusted gross income (as defined in Section 62 of the
2 Internal Revenue Code) not exceeding thirty thousand
3 dollars ($30,000), and beginning for the January 1, 2023,
4 assessment date, and each assessment date thereafter,
5 adjusted annually by an amount equal to the percentage cost
6 of living increase applied for Social Security benefits for the
7 immediately preceding calendar year; or
8 (B) (ii) in the case of an individual who filed a joint income
9 tax return with the individual's spouse, combined adjusted
10 gross income (as defined in Section 62 of the Internal
11 Revenue Code) not exceeding forty thousand dollars
12 ($40,000), and beginning for the January 1, 2023,
13 assessment date, and each assessment date thereafter,
14 adjusted annually by an amount equal to the percentage cost
15 of living increase applied for Social Security benefits for the
16 immediately preceding calendar year; and
17 (B) for an assessment date after December 31, 2024,
18 household income not exceeding seventy-five thousand
19 dollars ($75,000), and beginning for the January 1, 2026,
20 assessment date, and each assessment date thereafter,
21 adjusted annually by an amount equal to the percentage
22 cost of living increase applied for Social Security benefits
23 for the immediately preceding calendar year;
24 for the calendar year preceding by two (2) years the calendar year
25 in which property taxes are first due and payable.
26 For purposes of applying the annual cost of living increases described
27 in subdivision (4)(A) and (4)(B), the annual percentage increase is
28 applied to the adjusted amount of income from the immediately
29 preceding year. For purposes of subdivision (4)(B), "household
30 income" means the adjusted gross income (as defined in Section 62
31 of the Internal Revenue Code) of an individual, or if applicable, the
32 combined adjusted gross income of the individual and the
33 individual's spouse if the spouse resides with the individual.
34 (b) Except as provided in subsection (g), this section does not apply
35 if:
36 (1) for an individual who received a credit under this section
37 before January 1, 2020, the gross assessed value of the homestead
38 on the assessment date for which property taxes are imposed is at
39 least two hundred thousand dollars ($200,000);
40 (2) for an individual who initially applies for a credit under this
41 section after December 31, 2019, and before January 1, 2023, the
42 assessed value of the individual's Indiana real property is at least
2025 IN 392—LS 6684/DI 120 6
1 two hundred thousand dollars ($200,000); or
2 (3) for an individual who initially applies for a credit under this
3 section after December 31, 2022, and before January 1, 2025,
4 the assessed value of the individual's Indiana real property is at
5 least two hundred forty thousand dollars ($240,000); or
6 (4) for an individual who initially applies for a credit under
7 this section after December 31, 2024, the assessed value of the
8 individual's Indiana real property is at least three hundred
9 thousand dollars ($300,000), and beginning for the January 1,
10 2026, assessment date and each assessment date thereafter,
11 the amount shall be adjusted annually by a percentage equal
12 to the percentage increase, if any, as determined under
13 subsection (h).
14 (c) An individual is entitled to an additional credit under this section
15 for property taxes first due and payable for a calendar year on a
16 homestead if:
17 (1) the individual and the homestead qualify for the credit under
18 subsection (a) for the calendar year;
19 (2) the homestead is not disqualified for the credit under
20 subsection (b) for the calendar year; and
21 (3) the filing requirements under subsection (e) are met.
22 (d) The amount of the credit is equal to the greater of zero (0) or the
23 result of:
24 (1) the property tax liability first due and payable on the
25 homestead property for the calendar year; minus
26 (2) the result of:
27 (A) the property tax liability first due and payable on the
28 qualified homestead property for the immediately preceding
29 year after the application of the credit granted under this
30 section for that year; multiplied by
31 (B) the following:
32 (i) One and two hundredths (1.02), if the assessed value of
33 the individual's Indiana real property is three hundred
34 thousand dollars ($300,000) or less.
35 (ii) One and four hundredths (1.04), if the assessed value
36 of the individual's Indiana real property is more than
37 three hundred thousand dollars ($300,000), but not more
38 than four hundred thousand dollars ($400,000);
39 and beginning for the January 1, 2026, assessment date
40 and each assessment date thereafter, each of the assessed
41 value dollar amounts shall be adjusted annually by a
42 percentage equal to the percentage increase, if any, as
2025 IN 392—LS 6684/DI 120 7
1 determined under subsection (h).
2 However, property tax liability imposed on any improvements to or
3 expansion of the homestead property after the assessment date for
4 which property tax liability described in subdivision (2) was imposed
5 shall not be considered in determining the credit granted under this
6 section in the current calendar year.
7 (e) Applications for a credit under this section shall be filed in the
8 manner provided for an application for a deduction under
9 IC 6-1.1-12-9. However, an individual who remains eligible for the
10 credit in the following year is not required to file a statement to apply
11 for the credit in the following year. An individual who receives a credit
12 under this section in a particular year and who becomes ineligible for
13 the credit in the following year shall notify the auditor of the county in
14 which the homestead is located of the individual's ineligibility not later
15 than sixty (60) days after the individual becomes ineligible.
16 (f) The auditor of each county shall, in a particular year, apply a
17 credit provided under this section to each individual who received the
18 credit in the preceding year unless the auditor determines that the
19 individual is no longer eligible for the credit.
20 (g) For purposes of determining the:
21 (1) assessed value of the homestead on the assessment date for
22 which property taxes are imposed under subsection (b)(1);
23 (2) assessed value of the individual's Indiana real property under
24 subsection (b)(2); or
25 (3) assessed value of the individual's Indiana real property under
26 subsection (b)(3); or
27 (4) assessed value of the individual's Indiana real property
28 under subsection (b)(4);
29 for an individual who has received a credit under this section in a
30 previous year, increases in assessed value that occur after the later of
31 December 31, 2019, or the first year that the individual has received
32 the credit are not considered unless the increase in assessed value is
33 attributable to substantial renovation or new improvements. Where
34 there is an increase in assessed value for purposes of the credit under
35 this section, the assessor shall provide a report to the county auditor
36 describing the substantial renovation or new improvements, if any, that
37 were made to the property prior to the increase in assessed value.
38 (h) As used in this subsection, "median home sale price" means
39 the median home sale price as determined each month for Indiana
40 by the National Association of Realtors. The annual adjustment
41 under subsection (b)(4) and (d)(1)(B) is equal to the year over year
42 change in:
2025 IN 392—LS 6684/DI 120 8
1 (1) the year end average of the monthly median home sale
2 prices in Indiana statewide for the immediately preceding
3 calendar year before the assessment date; compared to
4 (2) the year end average of the monthly median home sale
5 prices in Indiana statewide for the calendar year preceding
6 the assessment date by two (2) years;
7 expressed as a percentage, but not less than zero (0). For purposes
8 of applying the annual adjustment under subsections (b)(4) and
9 (d)(2)(B), the annual percentage increase, if any, is applied to the
10 adjusted amount from the immediately preceding year. However,
11 the assessed value limit amount under subsection (b)(4) shall not be
12 adjusted to more than four hundred thousand dollars ($400,000).
13 SECTION 3. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
14 (a) IC 6-1.1-12-14 and IC 6-1.1-20.6-8.5, both as amended by this
15 act, apply to assessment dates occurring after December 31, 2024,
16 for property taxes first due and payable in 2026.
17 (b) This SECTION expires July 1, 2028.
18 SECTION 4. An emergency is declared for this act.
2025 IN 392—LS 6684/DI 120