Indianapolis, Indiana – The Indiana Chamber of Commerce is voicing strong support for new property tax relief measures unveiled by House Republicans, calling the proposed reforms a step in the right direction for the state’s economy. The focus of the legislative package includes changes to Indiana’s business personal property tax, a long-debated issue that business leaders say has hindered growth for years.
The business personal property tax, which is levied on equipment and machinery, has been criticized for discouraging investment in new technologies and penalizing businesses looking to expand. With the proposed reforms, lawmakers are aiming to remove this obstacle and modernize the state’s tax structure.
“Indiana’s business personal property tax has long been an impediment to growth, penalizing investment and placing our employers at a disadvantage compared to those in neighboring states,” said Indiana Chamber President and CEO Vanessa Green Sinders. “The reforms announced today represent meaningful progress toward a more modern, competitive tax structure.”
The Indiana Chamber, in partnership with Ernst & Young, conducted an analysis that highlighted the economic benefits of removing the tax on new equipment. According to the study, eliminating the tax could result in up to $3.1 billion in GDP growth for the state and lead to the creation of thousands of new jobs.
“This is a smart, forward-looking policy decision that will benefit businesses across the state and support continued investment in Indiana’s economy,” said Sinders. “We commend legislative leaders for their work to improve the competitiveness of our tax climate.”
As Indiana continues to position itself as a business-friendly state, proponents of the bill believe this move sends a strong message to companies looking for a place to grow. Supporters also argue that aligning Indiana’s tax policies more closely with those of surrounding states could help attract new industries and keep homegrown businesses from relocating.
The legislation is still working its way through the General Assembly, but with strong backing from both lawmakers and business groups, the proposed tax changes may soon become law.
