EagleCountryOnline.com

Governor Pence Signs Tax Reform Bill

Posted On March 25, 2014

By Katlyn Reece

(Indianapolis, Ind.) – Indiana Governor Mike Pence signed into law Tuesday a tax reform bill that may help small businesses looking to make new investments in themselves.

The bill, Senate Enrolled Act 1, will lower the corporate tax rate and make it possible to phase out the business personal property tax. Once in place, the changes will save Indiana businesses $185 million per year, Pence claims.

“Job creation is job one in Indiana and the legislation signed today will strengthen our competitive edge to attract new businesses and good-paying jobs to our state,” Pence said. “We are in a national and global competition for jobs and these important reforms will improve our pro-business tax environment and bring good jobs for Hoosiers.”

SEA 1 will provide counties with the option to eliminate the tax on new investment, offer specific companies an extended abatement of the tax, or exempt small businesses with less than $20,000 in business personal property from the tax entirely.

Governor Pence also signed HEA 1035, which will start a study through the Indiana Economic Development Corporation to analyze and recommend quality of life improvements to regional cities in Indiana.

Other bills signed in by Governor Pence Tuesday are HEA 1198, which will ease the need for small business owners to grow their business by requiring executive agency participation in the Business One Stop online portal; SEA 375, which will allow new fundraising tools for small businesses; SEA 421, which will cut red tape and unnecessary licensing requirements for small businesses; and SEA 111, which will protect Indiana farmers from increases in property taxes without warning.

Pence says that since April of last year he has signed over $600 million in annual tax relief into law, an amount that could go up more depending on whether counties decide to phase out the business personal property tax.