Cutting taxes for Hoosier small businesses

Cutting taxes for Hoosier small businesses

Wednesday, February 8, 2023

Indiana has worked hard to become one of the best states in the country for doing business, which is why it was recently named the No. 1 state to start a business in 2023 by Forbes.

Small-business owners are among the hardest working Hoosiers in our state. Currently, they are navigating an uneven playing field when it comes to qualifying for the same federal tax deductions as larger corporations.

Senate Bill 2 would change state tax law so LLCs and S Corps can deduct all state tax payments on federal tax returns, resulting in what could be $50 million in federal tax savings for Hoosier businesses.

Small businesses are the backbone of our communities and economy, with nearly 500,000 small businesses in Indiana employing more than 1.2 million Hoosiers statewide. Senate Republicans believe offering this targeted tax relief would continue to make our state an even greater destination for maintaining business and attracting talent and start-ups.

SB 2 passed the Senate unanimously and will now move to the House of Representatives for further consideration.

For more information about SB 2, click here