INDIANA – On Wednesday, House and Senate leaders and Governor Braun agreed to the final details of a property tax relief bill. The bill includes property tax relief that will reduce the cost of capital investment for many manufacturers.
The “small business exemption” threshold will increase from $80,000 to $2 million in 2026, providing real and lasting relief to small manufacturing businesses. For equipment not tied to local debt financing, Indiana’s 30% depreciation floor (the highest in the nation) will go away for newly purchased property.
These changes help small manufacturers the most and mitigate the shift of the property tax burden to Indiana businesses because of tax relief to homeowners. The IMA thanks Governor Braun, Speaker Huston, Leader Bray, Chairman Thompson, Chairman Holdman, and the many legislators and stakeholders who worked hard for property tax relief for Hoosiers.
IMA President and CEO Andrew Berger said, “Lowering taxes on manufacturing capital investment is a fundamental policy goal of the IMA. We are pleased that the business tax relief portions in Senate Bill 1 are focused on that objective – particularly for small businesses. Property tax relief for homeowners has always been the primary aim of the governor and legislative leaders. Including property tax relief focused on Indiana’s most important industry – manufacturing – balances the bill meaningfully.”
