By State Sen. Mark Messmer (R-Jasper)
For the last decade, Republicans at the Statehouse have worked to make Indiana a business-friendly state.
One way the state can help attract companies is by offering tax credits to make business operations more affordable in Indiana than other states.
Senate Enrolled Act 2, a Senate Republican priority bill, changes the state law so LLCs and sub S Corps can deduct all state tax payments on federal returns, resulting in an estimated $112 million in federal tax savings for Indiana small businesses in tax years 2022 and 2023.
Earlier this year, the General Assembly also passed House Enrolled Act 1106, which creates a nonrefundable state income tax credit for companies investing in reclaimed coal mines and adjacent properties.
This new tax credit expires on Dec. 31, 2027 and will be administered by the Indiana Economic Development Corporation.
This credit is equal to 30% of the amount invested, or $5 million, whichever is less, and the combined tax credit cannot exceed $25 million over the five-year period it is available.
The new law is intended to encourage the state to consider more rural areas of Indiana as potential locations for economic development, and incentivize more companies to set up shop here.
House Enrolled Act 1106 is especially beneficial for southwest Indiana, including the counties in Senate District 48, where most of the state's reclaimed coal mines are located.
The bill passed out of the General Assembly with bipartisan support, and retroactively went into effect on Jan. 1.
As always, feel free to contact my office directly with your questions and concerns by email at Senator.Messmer@iga.in.gov or by phone at 800-382-9467.
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State Sen. Mark Messmer (R-Jasper) represents Senate District 48, which
includes Crawford, Dubois, Gibson, Perry, Pike and Spencer counties.
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