(Statehouse) – Hoosier military members are set to receive much-needed tax relief thanks to a new law authored by State Rep. Randy Frye (R-Greensburg).
Currently, active-duty service members are eligible for a $5,000 dollar deduction from the state individual income tax.
Under the new law (House Enrolled Act 1034) recently signed by Gov. Eric Holcomb, active-duty military members will receive a complete income tax exemption beginning in January regardless of their deployment status.
Frye said National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
“All of our military members are valued, and we appreciate them for defending our country and our freedoms,” Frye said. “With this tax cut, we can really show our appreciation and put money back into their pockets. We also believe this move will encourage more service members to locate to the Hoosier state.”
According to Frye, chair of the House Veterans Affairs and Public Safety Committee, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
“Our military members possess leadership and technical skills that could help fill the thousands of open jobs in our state,” Frye said. “With this tax cut, we will be better positioned to attract military members to live and raise their families here, and when their service is over, lend their talents to the private sector.”
To follow legislation signed into law by the governor, visit in.gov/gov/newsroom/2023-bill-watch.
(State Representative Randy Frye press release)
