STATEHOUSE (July 6, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by local lawmakers.
Currently, active-duty service members are eligible for a $5,000 deduction from the state individual income tax. Under the new law recently signed by Gov. Eric Holcomb, active-duty military members will receive a complete income tax exemption beginning in January regardless of their deployment status. National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
"Service members make so many sacrifices to protect this great nation," said State Rep. Beau Baird (R-Greencastle), co-author of the new law. "Indiana has long stood as a welcoming state for veterans, and this law builds on our reputation and commitment. We hope this incentivizes service members to stay in our state or move here."
According to State Rep. Jeff Thompson (R-Lizton), chair of the House Ways and Means Committee and co-author of the law, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
"Our state's strong fiscal standing is providing opportunities to cut taxes in a number of areas, including on the behalf of those who serve in the military," Thompson said. "This is a commonsense approach to making sure military members keep more of their hard-earned money."
"Our Hoosier military members deserve our gratitude and support, and this new law is a way to show how much we appreciate their service," said State Rep. Sharon Negele (R-Attica). "This tax cut will help offset the cost of living for military families and encourage them to stay in or locate to our state."
"Our state values Hoosiers with military experience and the skills they bring to the table," said State Rep. Mark Genda (R-Frankfort). "This tax cut is a great way to say thank you and will hopefully motivate more service members to call Indiana home."
To learn more about new state laws, visit in.gov/gov/newsroom/2023-bill-watch.
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State Rep. Beau Baird (R-Greencastle) represents House District 44,
which includes all of Putnam County and a portion of Montgomery County.
Click here to download a high-resolution photo.
State Rep. Mark Genda (R-Frankfort) represents House District 41,
which includes portions of Boone, Clinton, Montgomery and Tippecanoe counties.
Click here to download a high-resolution photo.
State Rep. Sharon Negele (R-Attica) represents House District 13,
which includes all of Benton and Warren counties and portions of Fountain, Jasper,
Montgomery, Newton, Tippecanoe and White counties.
Click here to download a high-resolution photo.
State Rep. Jeff Thompson (R-Lizton) represents House District 28,
which includes portions of Boone, Hendricks and Montgomery counties.
Click here to download a high-resolution photo.
