Bill > SB0510

This bill provides enhanced tax benefits for disabled veterans in Indiana by modifying two key areas of tax law. First, for veterans who have previously received a property tax deduction, the bill changes how increases in property assessed value are considered for future deductions, specifically stating that increases in assessed value after December 31, 2025, will not disqualify a veteran from receiving the existing property tax deduction. Second, the bill introduces an additional state income tax deduction specifically for disabled veterans who rent their primary residence. Under this new provision, a disabled veteran can deduct an additional amount based on their disability rating, which is calculated as either the standard rental deduction multiplied by their disability percentage or $3,000, whichever is less. The bill aims to provide financial relief for disabled veterans by protecting their existing property tax benefits and offering an enhanced rental deduction that recognizes the potential economic challenges faced by veterans with disabilities. Both provisions have specific effective dates in 2025 and 2026, respectively, and are set to expire on July 1, 2029.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/510/details