Energy Siting Bills Stalled and Weakened
HB 1628, SB 425 / Chamber Supports
House Bill 1628 and Senate Bill 425 were both heard in committee this week as part of ongoing discussions on energy siting reform, a key priority for the Chamber this session. House Bill 1628, authored by Rep. Craig Snow (R-Warsaw), was heard twice in the House Committee on Utilities, Energy and Telecommunications, receiving over five hours of testimony.
The bill aims to balance the state’s interest in maintaining a reliable energy grid with the parochial concerns of local officials. The committee amended the bill to limit the amount of land available for renewable energy development, prohibit such development on prime agricultural land, plus outline a process for appeals to the Indiana Utility Regulatory Commission when local negotiations fail. No vote was taken, and with the committee report deadline looming on Monday, it is unlikely the bill will advance.
In the Senate, Senate Bill 425, authored by Sen. Eric Koch (R-Bedford), was amended to exclude wind and solar projects from its energy production zone provisions, significantly narrowing its scope. The neutered version of the bill advanced on a party-line vote and will be considered by the full Senate next week.
These bills reflect the tension between Indiana’s need for a robust, reliable energy grid and the local objections that frequently stall development. The Chamber continues to advocate for a balanced framework that supports the state’s long-term energy and economic goals.
Fiscal Panel Advances Road Funding Bill
HB 1461 / Chamber Supports
The House Ways and Means Committee recently heard House Bill 1461, focused on enhancing funding for state and local road and bridge projects. Representative Jim Pressel (R-Rolling Prairie), the bill’s author, explained that the bill modifies the existing Community Crossings Matching Grant program by capping the total annual funding at $200 million, split evenly across two tiers. The bill also directs funds in excess of the cap to the state for railroad crossing upgrades in FY26 and then to state highways for each succeeding fiscal year. Notably, the bill requires local governments to adopt a wheel tax to remain eligible for these funds, a condition that sparked debate among committee members.
The measure also includes language that modifies toll lane provisions from the 2017 road funding bill, granting the Governor broader authority to seek federal waivers for tolling.
Several amendments were proposed, addressing issues like toll exclusions for certain counties and adjustments to vehicle excise tax brackets, but most failed. The bill ultimately passed out of committee on a 14-9 vote, with several members noting concerns about specific provisions and expressing hope for further revisions on the House floor.
Property Tax Bill Overhaul Sparks Pushback From Governor Braun
SB 1 / Chamber Neutral
Senate Bill 1, authored by Sen. Travis Holdman (R-Markle), is a key element of Governor Mike Braun’s legislative agenda, designed to provide broad property tax relief for Hoosier homeowners. The original bill sought to restructure Indiana’s property tax system with significant reforms, including a new formula for the homestead standard deduction. The bill also repealed the supplemental homestead deduction and introduced a maximum property tax liability credit for all taxable real property, with higher relief for homestead properties.
Additional provisions targeted greater transparency and taxpayer engagement. The bill required referendums on school and other controlled projects to be held only during general elections in even-numbered years. It also mandated that the Department of Local Government Finance develop a property tax transparency portal to allow taxpayers to compare current and projected tax liabilities and provide feedback.
However, significant changes were made to the bill this week by the Senate Tax and Fiscal Policy Committee, which removed major provisions from Braun’s initial proposal. The revised version of SB 1 offers more targeted relief to older Hoosiers and veterans, focusing on deferrals and deductions rather than direct credits. The changes significantly reduce the fiscal impact on local governments, which was estimated to be in excess of $1 billion statewide.
This prompted sharp responses from Governor Braun and Lieutenant Governor Beckwith, who expressed disappointment in the stripped-down version. Braun emphasized the importance of providing real relief for taxpayers and urged legislators to restore key elements of the bill, while Beckwith noted that meaningful relief is essential for maintaining affordability and fairness for Indiana families.
Unusually Calm Seas in K-12 and Workforce Legislation
HB 1634, HB 1499 and SB 365 / Chamber Supports
House and Senate education and workforce committees have completed their work for the first half of session as the deadline for committees to report all legislation is next week.
The House passed Chamber-supported House Bill 1634, sponsored by Rep. Jake Teshka (R-North Liberty), with several provisions to drive more focus on mathematics instruction and student performance improvements. The House Education Committee moved forward House Bill 1499, sponsored by Rep. Robert Behning (R-Indianapolis), to support expanded literacy interventions and an adjustment sought by the Chamber in the EARN Indiana program requirements for students in work study programs.
The Senate passed Chamber-supported Senate Bill 365, authored by Sen. Jeff Raatz (R-Richmond), that significantly expands data collection and analysis of various workforce development, training and education programs to measure impacts.
We're preparing for the second half of the session with optimism that several Chamber priorities in this arena will come to fruition.
Rural Investment Program Aims High But Faces Concerns
SB 346 / Chamber Neutral
Senate Bill 346 establishes a state tax credit to incentivize investment in small businesses in rural Indiana. The policy is part of Governor Mike Braun’s Freedom and Opportunity Agenda and is also included in his introduced budget. Certified rural funds, approved by the Indiana Economic Development Corporation, will allocate these investments to eligible businesses with fewer than 250 employees located in designated rural areas. The bill sets a $15 million annual cap on credits, which become available in the program’s third year.
While the bill’s goal of fostering rural economic growth is commendable, its restrictive eligibility criteria for businesses and investors may reduce its impact. The narrow geographic focus, tied to USDA rural area designations, excludes many businesses in semi-rural regions that share similar challenges.
Moreover, limiting the pool of potential investors could stifle the capital needed for business expansion.
To maximize its effectiveness, this program should be structured like the Venture Capital Investment Tax Credit, which provides broader eligibility and greater access to capital. Aligning SB 346 with this model would better reflect the Freedom and Opportunity Agenda’s goal of promoting widespread economic opportunity across rural and semi-rural Indiana.
Immigration Matters in the Spotlight
HB 1032, HB 1114, HB 1531 / Chamber Opposes
More immigration-related legislation was filed this year than we can recall in the last decade, if not longer. The following is a summary of three bills that have been (or will be) heard in committee before the deadline. For the most part, the Chamber has worked behind the scenes with the bills’ authors and the attorney general’s office to improve the legislation from their introduced versions. However, the Chamber does not support any of these bills and will continue monitoring them closely.
House Bill 1531, authored by Rep. J.D. Prescott (R-Union City), addresses various immigration matters directly, with implications for undocumented individuals and governmental bodies. The bill clarifies that any law enforcement official (federal, state and local) may enforce federal immigration laws; federal, state and local law enforcement agencies can enforce federal immigration laws to the full extent permitted by federal law; and mandates that all governmental bodies must comply with immigration detainer requests. The measure also requires schools to report specific student information to the Indiana Department of Education, including data on “unlawfully present students.”
Most relevant to the Chamber’s interests is the section of the bill empowering the state’s attorney general to investigate and prosecute employers who are suspected of “recruiting, hiring or employing unauthorized aliens.” Although the penalties are tiered based on the outcomes of previous enforcement actions, the bill does authorize the attorney general to seek the total suspension of an employer’s operating authority. The Chamber is advocating for stronger protections for employers who unintentionally engage in these activities.
House Bill 1531 is being heard on Monday in the House Judiciary Committee.
Meanwhile, House Bill 1032, authored by Rep. Craig Haggard (R-Mooresville), focuses on foreign interests and prohibits certain transactions with individuals and entities connected to “foreign adversaries” – i.e., China, Iran, North Korea, Russia, Cuba, Venezuela and any other country/state/territory designated by the Governor. A final provision extends to individuals from “countries of concern” as well, including Burma, Eritrea, Nicaragua, Pakistan, Saudi Arabia, Tajikistan, and Turkmenistan. The measure is eligible for second reading next week.
House Bill 1114, authored by Rep. Alex Zimmerman (R-North Vernon), concerns driving without a license and related offenses. While it does not directly target immigration status, it introduces stricter penalties for unlicensed drivers, which could disproportionately affect undocumented individuals who are ineligible for a driver's license. The full House passed the bill 69-24 on Thursday.
Separately, one policy not moving forward this year is driving privilege cards for undocumented residents. Despite bills being filed in both the House and Senate, none received a hearing. However, Rep. Jim Pressel (R- Rolling Prairie) invited the Indiana Chamber, on behalf of stakeholders, to submit a letter requesting a summer study committee to determine the feasibility of a pilot program that would narrow the scope of eligibility for driving card recipients; for example, undocumented individuals between the ages of 16 and 21.
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