STATEHOUSE (March 22, 2022) – A $1 billion tax-relief package supported by State Rep. Beau Baird (R-Greencastle) is now law.
According to Baird, the largest tax cut in the state's history drops Indiana's individual income tax from 3.23% to 2.9% over seven years. He said once fully phased in, Indiana will have one of the lowest income tax rates in the nation.
"Years of fiscal responsibility and paying down debt left us room to make the largest tax cut in Indiana's history," Baird said. "Hoosiers know best when it comes to spending and investing the money they earned. We'll continue promoting a limited government that works for the people, not the other way around."
The law also helps lower utility bills for Hoosiers and businesses by eliminating the 1.4% Utility Receipts Tax currently paid on electricity, natural gas, water, steam, sewage and telephone bills.
Baird said once both tax cuts are fully implemented, Hoosiers will save over $1 billion a year.
The law includes using reserves to make a one-time, $2.5 billion payment toward pre-'96 teacher pension obligations. This comes after Indiana has paid down well over $1 billion in debt over the last year alone.
House Enrolled Act 1002, a priority for Republican lawmakers, comes as the state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. As revenues continue to outpace expectations, Hoosier taxpayers can expect a $125 refund this spring as part of a combined refund of over $545 million. Another new law supported by Baird will ensure the maximum number of Hoosiers qualify for the refund.
-30-
State Rep. Beau Baird (R-Greencastle) represents House District 44, which includes
all of Putnam County and portions of Clay, Morgan, Owen and Parke counties.
Click here to download a high-resolution photo.
CAPTION: State Rep. Beau Baird (R-Greencastle) listens to testimony in the House Chamber Wednesday, March 9, 2022, at the Indiana Statehouse. Baird supported a $1 billion tax-relief package that was recently signed into law by the governor.
