Bill > HB1159

This bill amends Indiana tax law to provide an additional tax deduction for disabled veterans who rent their primary residence. Currently, renters can deduct up to $3,000 from their adjusted gross income, but this bill introduces a new provision specifically for disabled veterans. Under the new law, disabled veterans can claim an extra deduction calculated by multiplying their basic rental deduction by their disability rating (as determined by the U.S. Department of Veterans Affairs), up to a maximum of $3,000. For married couples filing jointly, the deduction will be based on the spouse with the higher disability rating. The additional deduction is subject to the same limitations as the standard rental deduction, meaning joint filers cannot claim more than $3,000 in additional deductions. The bill will take effect for tax years beginning after December 31, 2025, and is set to expire on July 1, 2029. This change aims to provide financial relief for disabled veterans by reducing their state tax burden, recognizing their service and potential economic challenges.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1159/details