IndianaIndiana tax rules would use a July 2025 federal code date
If passed, HB 1332 would use the July 4, 2025 federal tax code for three listed provisions in Indiana tax calculations, starting retroactively on January 1, 2026.
What it does
For three named federal tax provisions, Indiana’s tax rules would use the federal code as it stood on July 4, 2025.
Argument forUsing the 2025 federal code for these provisions could make Indiana tax calculations track those federal rules more closely.
Argument againstKeeping a general 2023 date while using a 2025 date for three provisions could make some Indiana tax calculations harder to follow.
More detail
For three listed federal tax provisions, Indiana’s definition of the Internal Revenue Code would use the federal code in effect on July 4, 2025. The listed provisions are federal tax code sections 23, 168(e)(3)(B)(vi), and 223(c)(2)(E). For these provisions only, references to January 1, 2023, in this section would be treated as references to July 4, 2025. The act states that it would take effect retroactively on January 1, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 6First reading: referred to Committee on Ways and MeansLatest
- Jan 6Authored by Representative ThompsonIntroduced
Taxes & Budget