(INDIANAPOLIS) - Indiana legislators are moving ahead with plans to exclude some of President Donald Trump's federal tax cuts from the state tax code, citing cost concerns, according to reporting by the Indiana Capital Chronicle.
A business tax break included in last summer's federal package -- dubbed the "One Big Beautiful Bill" -- would not apply to Indiana taxes under legislation advancing in the state Senate. Republican fiscal leaders say fully conforming state law to the federal changes could cost Indiana more than $900 million over the next two years, based on estimates from Gov. Mike Braun's administration.
The Senate Tax and Fiscal Committee has advanced Senate Bill 212, which adopts only a limited number of the new federal tax provisions. Committee chair Travis Holdman, R-Markle, said a production property tax break was excluded because of its projected price tag -- starting at roughly $60 million and climbing to nearly $300 million over several years.
Lawmakers have not yet decided whether Indiana will adopt other federal tax breaks, including temporary deductions for tipped wages, overtime pay, and interest on loans for U.S.-built vehicles. Those provisions alone could total hundreds of millions in tax savings if adopted.
Any tax changes approved by the Senate will still need consideration by the Indiana House, where leaders say discussions are ongoing.