This upcoming week is a critical deadline week for the Indiana General Assembly as we head into the crossover break. The committee report deadline is Monday, February 17th for both the House and the Senate - which means that all bills must have been heard in committee by that date or are considered dead. Wednesday, February 19th is second reading deadline - the last date for full-floor amendments to bills, and Thursday, February 20th is third reading deadline - the last date for bills to receive a final vote in the first house before they crossover to the second chamber. Read on for information important to you.

Bill Updates:

Immigration

• HB 1531 - This bill addresses multiple aspects of immigration policy within Indiana, proposing changes to state regulations concerning the employment and housing of undocumented immigrants, aiming to align state law with federal immigration standards. Additionally, it outlines new requirements for law enforcement agencies in cooperating with federal immigration authorities and establishes penalties for entities (namely businesses) that fail to comply with these provisions.

• • The bill is scheduled to be heard in the House Judiciary committee on Monday, Feb 17th at 9:30 AM.

• • Many Chambers of Commerce are engaging in opposition to this bill - please let us know if you would like for us to engage on your behalf.

DEI

• SB 289 - A bill restricting diversity, equity, and inclusion (DEI) programs sparked intense debate in the Senate. Democrats strongly opposed the measure, warning that it would weaken efforts to combat discrimination. Controversy also surrounded Lieutenant Governor Micah Beckwith, who presided over the vote while live-tweeting about the bill. Despite these concerns, the Senate passed the legislation with a 34-13 vote. Supporters argued it promotes transparency, while opponents cautioned that it could negatively impact marginalized communities. The bill now moves to the House, where it will be sponsored by Rep. Jeter (R-Fishers) and Rep. McNamara (R-Evansville) for further consideration.

• • Here is a news article that gives some more insight: Indiana colleges end DEI efforts due to state bill, federal orders

Housing and Building Matters

• HB 1005: This bill aims to improve Indiana’s housing infrastructure by promoting land use policies that increase housing density and affordability. Effective July 1, 2025, it gives priority access to housing assistance loans for participants adopting these policies. It also formalizes the role of private providers in plan reviews and inspections, setting clear guidelines and insurance requirements. The bill streamlines permit processing by enforcing strict response timelines for local authorities. The fiscal was removed in committee, but it is anticipated that it might come back in some fashion in the budget in the future.

• • HB 1005 passed on 3rd reading unanimously (93-0) in the House and now moves to the Senate, where it will be sponsored by Sen. Rogers (R-Granger) and Sen. Garten (R-Charlestown).

• HB 1519 - This bill revises Indiana’s housing policies to improve affordability, particularly for low- to moderate-income families, by expanding access to housing loans. It grants the Indiana Housing and Community Development Authority new powers to assist individuals facing economic hardship in securing home financing.

• • A key provision is the creation of the Workforce Housing Assistance Program, which defines eligible borrowers as first-time homebuyers earning up to 160% of the county’s AMI, among other qualifying entities. To support this initiative, the bill establishes the Workforce Housing Assistance Revolving Fund, which will provide loans for home purchases, down payments, and renovations. The fund will receive money from legislative appropriations, gifts, and loan repayments, with 2% allocated for administrative costs and at least 5% designated for community development financial institutions.
  • To ensure oversight, the bill requires annual reports to the budget committee on program progress and loan distributions. The bill passed out of the House Financial Institutions Committee and was recommitted to House Ways & Means, where it was not scheduled for a hearing before the deadline.

Workforce Development

• HB 1172 - Governor Braun’s plan to streamline small business support by creating an Office of Entrepreneurship and Innovation took a significant step forward with this bill. By consolidating existing state programs, the initiative aims to enhance business development without adding fiscal burden, as it is already accounted for in the governor’s budget.

• • The proposal gained traction despite concerns from some about its potential impact on Small Business Development Centers and fears of government overreach. Chambers of Commerce endorsed the measure, citing its potential to boost job creation and economic growth.
  • Following a 10-2 committee vote, the bill moved to Ways & Means, where lawmakers reinforced its benefits for business incentives. It passed with an amendment (21-1) before advancing to the full House.
  • Now, with bipartisan backing (85-7), the bill has cleared the House and is on its way to the Senate, where Sen. Buchanan (R-Lebanon) will lead its consideration.
  • Here’s a news piece with further information: Indiana House Bill 1172 would create state agency supporting small businesses, entrepreneurs - Indiana Economic Digest

• SB 516 - This legislation establishes the Office of Small Business and Innovation to support entrepreneurship and economic development in Indiana. It aligns Innovation Development Districts (IDDs) with Tax Increment Financing (TIF) districts, requires local notification before the Indiana Economic Development Corporation (IEDC) purchases land, and allows schools to use funding for IDDs without restrictions.

• • The bill also clarifies IEDC operations, creates an IEDC president reporting to the Commerce Secretary, and removes legislators from the IDD board, raising concerns about representation and transparency.
  • In Senate Appropriations, the bill was amended to remove provisions allowing schools to receive incremental tax financing. It now advances to the Senate floor for consideration.

Childcare

• SB 463 - This bill aims to improve the quality and availability of childcare services in Indiana by implementing new regulations and standards for providers. It seeks to expand access to affordable childcare options, supporting working parents and enhancing children’s development, particularly in underserved communities.

• • It was amended in the Senate Appropriations committee to remove both the tax credit portion and the local matching grant portion.
  • Conversations are being had with bill author Sen. Charbonneau suggested the intent to put that language back in the budget on the second side, but coalitions are also willing to work with House legislators to reinsert the language on the House side.
  • The bill will likely be amended on 2^nd reading to just make it clear that centers could (if they choose) continue to adopt more restrictive staff ratios and group sizes.
  • The bill has received strong support from several Chambers of Commerce, as childcare remains a key priority for their employer members. It is now on its way to the Senate floor for 2nd reading amendments and deliberation.

• Other childcare bills moving in the first half:

• • HB 1102 - a bill allowing public schools to contract with religious non-profits to provide pre-kindergarten services (something they already can do for out-of-school time programming). This bill moved out of the House unanimously (91-0).
  • HB 1248 - a bill on foster families accessing CCDF, was amended in Ways & Means to address priority for foster families and to require FSSA's secretary to set aside a small portion of CCDF vouchers for foster families. It moved out of Ways & Means Committee unanimously. The CCDF waitlist issue still remains - which would impact the feasibility of this language.
  • HB 1253 - Representative Heine’s legislation with the multi-site licensure language, moved out of the House 91-0, where Senators Brown and Charbonneau will be the Senate Sponsors.

• In the House version of the budget:

• • Funding for On My Way Pre-K remains flat at $27M per year.
  • It does not include an appropriation increase for CCDF to address the wait lists - but it includes $155M in "hold harmless" funds for families that are currently receiving CCDF vouchers. This would seem to mean the state would continue to reauthorize existing vouchers and allow something like a natural attrition process to happen back down to a lower level of enrollment.
  • The budget does not include the local child care assistance fund (the local matching grant program) that Governor Braun proposed in his version of the budget..

Road Funding

• HB 1461 - This bill focuses on road funding in Indiana, modifying the Community Crossings Grant Program, originally established in 2017, to set a $200 million limit split between two tiers, with excess funds directed to local projects. The bill requires local governments to adopt a wheel tax to be eligible for these grants, a provision that has sparked controversy. It also reduces the local match requirement for small communities and clarifies bridge maintenance responsibilities.

• • Discussions included concerns over the wheel tax’s impact on local governments, potential alternative funding methods, and tolling provisions related to interstate highways. Amendments addressing retail delivery fees, vehicle excise tax updates, and regional tolling exemptions were proposed but failed, while an amendment exempting Allen County from certain provisions was adopted.
  • Despite concerns over the wheel tax from Rep. Smaltz (R-Auburn) and the tolling language from Rep. Harris (D-East Chicago), the bill passed out of committee with a vote of 14-9 and now moves forward to the House floor for 2nd Reading.

• • 1. Here is a news article that gives some more insight: Road funding bill advances, but with multiple revenue generators taken out | news - Indiana Public Media

Property Taxes

• SB 1 - Indiana’s omnibus property tax reform, and a priority of Governor Braun, this bill aims to provide relief for homeowners while balancing the financial needs of local governments and schools. The bill originally drafted proposes raising the homestead deduction from a $45,000 maximum to a $48,000 minimum, plus 60% of the home's assessed value for properties valued at $125,000 or less, or just 60% of the assessed value for higher-valued homes. Additionally, it caps property tax growth at 2% for homeowners over 65 and 3% for everyone else.

• • The committee significantly amended the bill to include several key provisions:

• • 1. A first-time homebuyer tax credit with a $75,000 income cap and a January 15 application deadline.

• • 1. Expanded deductions for disabled veterans and seniors, with the assessed value (AV) threshold adjusted annually.

• • 1. Language from SB 6, allowing local governments to defer property taxes for qualifying residents, managed by county treasurers with lien repayment options.

• • 1. New maximum levy growth quotients (MLGQ) to reduce property tax burdens, freezing the MLGQ for three years, with a projected fiscal impact of $687 million by year three.

• • 1. Limits school referendums to even-numbered years, with a cooling-off period and flexibility for safety and operating referendums.

• • Despite these amendments, concerns remain over school funding losses projected at $183 million by 2028, and the bill’s total fiscal impact could reach $800 million. Some lawmakers, including Sen. Qaddoura (D-Indianapolis), expressed skepticism about its effects on schools and public safety funding. Others, like Sen. Hunley (D-Indianapolis), acknowledged efforts to help homeowners but raised concerns about added hurdles for schools seeking referendums.
  • The bill passed out of committee with a vote of 10-3 and was then heard on 2nd Reading on the Senate floor, where many amendments were filed and debated but ultimately failed. The bill is now on the 3rd Reading calendar for next week.
  • Here are two articles that give a good view of the overall bill:

• • 1. Senate lawmakers scale back Braun’s ambitious property tax proposal in heavily amended bill – Indianapolis Business Journal

• • 1. Senate property tax relief drops main portions of Gov. Braun’s plan - IIndiana Capital Chronicle

• SB 345 - This bill seeks to reform Indiana’s property tax system by easing tax burdens, increasing transparency, and refining assessment processes. It proposes partial tax exemptions for childcare centers that serve all children, incentives for wastewater facilities, and updates to wage growth calculations for government entities. Additionally, it allows nonprofit-operated homes to apply broader sales comparisons in property sales.

• • While supporters, including the Indiana Manufacturers Association, argue the childcare provisions will help workforce participation, some raised concerns about restrictive property classifications and unintended effects. The bill was held for further discussion and was not scheduled for another hearing before the deadline..
  • SB 443 - This bill introduces significant updates regarding business personal property taxation in Indiana. The threshold for tax exemption was increased from $80,000 to $100,000 for the total acquisition cost of a taxpayer's business personal property within a county. The effective date for these changes is January 1, 2025, with retroactive implications. It also streamlines the filing process by allowing taxpayers who qualify for the exemption to omit filing personal property tax returns for subsequent assessment dates unless eligibility is lost. Additionally, the bill includes provisions for taxpayers on how to report exempt business personal property details.

• • 1. The bill passed on 3rd reading with a 39-7 vote and now moves to the House, where it will be sponsored by Rep. Snow (R-Warsaw).

Here is a link to your live bill tracker.