Bill > SB0025

This bill increases the maximum renter's income tax deduction in Indiana from $3,000 to $4,000 per taxable year, starting January 1, 2025. The legislation modifies existing tax law to allow individual renters to deduct the lesser of their actual rent paid or $4,000 from their adjusted gross income. For married couples filing jointly, the maximum deduction remains the same relative proportion, now set at $4,000 instead of $3,000, while married individuals filing separately can deduct up to $2,000 instead of the previous $1,500. The deduction does not apply to rentals of properties exempt from Indiana property tax, and the definition of "dwelling" includes both single-family homes and multi-family housing units. The bill includes a provision that makes this change retroactive to taxable years beginning after December 31, 2024, and specifies that the amendments will automatically expire on January 1, 2028. An emergency clause is also included, which typically allows the law to take effect immediately upon passage.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/25/details