Bill > SB0217

This bill establishes a new chapter in Indiana law to create a "circuit breaker credit" for homesteads, which are primary residences. This credit aims to limit the year-over-year increase in property tax liability for qualified individuals owning a homestead to no more than 4%. A qualified individual is defined as someone who received a standard homestead deduction in the previous year and is receiving one for the same property in the current year. The credit is calculated by comparing the current year's property tax liability to the previous year's liability, adjusted by a 4% increase, and the credit amount is the difference, ensuring the tax doesn't exceed that limit, except for taxes related to voter-approved referendums or for property used for business purposes. The county auditor will automatically identify eligible homesteads and apply the credit, meaning no application is required from the homeowner. This provision will take effect for taxes due and payable after December 31, 2026.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/senate/217/details