Bill > SB0361

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 each year. The bill introduces a new provision specifically for disabled veterans, allowing them to claim an additional deduction based on their disability rating from the United States Department of Veterans Affairs. This additional deduction will be the lesser of either the original rent deduction multiplied by the veteran's disability rating or $3,000. For example, a disabled veteran with a 50% disability rating who qualifies for the standard $3,000 rent deduction could potentially claim an additional $1,500 deduction. The changes will take effect on January 1, 2026, and the provision is set to expire on July 1, 2029. The bill maintains existing limitations for married couples filing jointly or separately and continues to exclude rentals of properties exempt from Indiana property tax.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/361/details