STATEHOUSE (March 25, 2014) — Today, Gov. Mike Pence signed into law State Sen. Brandt Hershman’s (R-Buck Creek) legislation to boost Hoosier job and economic growth.
Senate Enrolled Act 1 phases down the corporate income tax to 4.9 percent over six years, giving Indiana the second-lowest rate in the nation. It also gives local government units three new options for cutting the business personal property tax:
· A county can choose to exempt all businesses with less than $20,000 in personal property.
· A county can choose to eliminate the tax on all new personal property.
· A local unit can offer an extended personal property tax abatement for up to 20 years.
Hershman said these changes will bring Indiana to a new level of economic competitiveness.
“The corporate tax is widely recognized as the most harmful tax to economic growth. This legislation will ensure that Indiana continues its national leadership role in tax reform and that the Hoosier State will be on the short list of every major job-creating investment in the Midwest,” Hershman said. “In addition, it will allow local governments to attract investment by addressing the personal property tax in a way that fits their financial situations. I’m grateful for the hard work and support of Governor Pence and members of the House of Representatives, which has allowed us to pass a law that benefits all areas of our state.”
Hershman added that several other states have recently called for similar tax reductions. Earlier this year, Illinois House Speaker Michael Madigan and Kentucky Gov. Steve Beshear – both Democrats –introduced plans to cut their states’ corporate income tax rates.
Hershman joined Pence and other legislators for the bill signing at the Indiana Economic Development Corporation’s March board meeting, which was held at One Click Ventures in Greenwood. Pence lauded the passage of SEA 1.
“Job creation is job one in Indiana, and the legislation signed today will strengthen our competitive edge to attract new businesses and good-paying jobs to our state,” Pence said. “We are in a national and global competition for jobs, and these important reforms will improve our pro-business tax environment and bring good jobs for Hoosiers.”
Since prior business tax reforms, 33 Illinois companies have relocated to Indiana. Additionally, Indiana has generated the second-most manufacturing jobs in the nation since 2009.