LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7250 NOTE PREPARED: Jan 3, 2025
BILL NUMBER: SB 394 BILL AMENDED:
SUBJECT: Various tax and fiscal matters.
FIRST AUTHOR: Sen. Qaddoura BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Pending
DEDICATED
FEDERAL
Summary of Legislation: Provides a maximum property tax liability credit for certain homestead owners
based on the owner's age and annual income. Specifies the amount of the credit. Makes certain changes to
the deduction amounts and qualification requirements for the disabled veteran deductions. Provides a 100%
property tax exemption for permanently disabled veterans. Increases the amount of certain personal
exemptions from $1,000 to $3,500 for individual taxpayers who satisfy certain income criteria. Provides an
additional adjusted gross income tax deduction of $5,000 for educators in elementary or secondary education,
police officers, firefighters, and veterans. Provides an adjusted gross income tax deduction for taxpayers who
install solar energy panels on the taxpayer's homestead equal to the cost of the labor and materials for the
installation of the solar energy panels. Repeals the renter's deduction and instead provides a refundable
income tax credit for renters. Provides that the amount of the credit is $6,000, or $7,500 in the case of a
disabled veteran. Provides a refundable income tax mortgage credit for first time home buyers. Provides that
the amount of the credit is $15,000, which may be claimed for five consecutive taxable years. Provides an
adjusted gross income tax deduction for the first $16,000 of retirement income received by an individual who
is at least 62 years of age. Defines "retirement income". Provides a sales tax exemption for utility services,
including water, natural gas, and electricity. Provides a sales and use tax exemption period during the last
week of January and the last week of August each year for school supplies, backpacks, clothing, or
computers, if the item is purchased for use by: (A) a student in a public or private elementary or secondary
school; or (B) a student attending a postsecondary school; in Indiana. Appropriates $140,000,000 for the
biennium to the department of education to be used as supplemental funding for the federal Child Care and
Development Fund voucher program. Increases the maximum amount of the income tax credit for an
individual employed as a teacher for amounts expended for classroom supplies from $100 to $1,000 per
taxable year. Increases the cigarette tax by $1 per pack. Increases the river boat wagering tax, and increases
the supplemental wagering tax, slot machine wagering tax, and sports wagering tax and deposits the revenue
from the increases in the state general fund. Increases the beer excise tax, liquor excise tax, wine excise tax,
and hard cider excise tax and deposits the revenue from the increases in the state general fund.
Effective Date: July 1, 2025; December 31, 2025; January 1, 2026.
SB 394 1 Explanation of State Expenditures: As of the above date, the fiscal analysis of this bill has not been
completed. Please contact the Office of Fiscal and Management Analysis for an update of this fiscal impact
statement.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
SB 394 2