(Indianapolis, IN) – Legislation authored by State Rep. Randy Frye (R-Greensburg) that would phase in an income tax exemption for military pay earned by active duty members was among 68 bills signed into law by Gov. Eric Holcomb on Monday.
Currently, active-duty service members are eligible for a $5,000 dollar deduction from the state individual income tax.
Under House Enrolled Act 1034, 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.
“We need and want skilled veterans to call Indiana home,” Frye said. “With this tax cut, we can incentivize more military members to settle here in our state, and help honor their commitment to serving our great nation.”
Frye said Indiana is already facing a skilled labor shortage, with more than 85,000 open job opportunities. He said veterans, with the necessary leadership and technical skills, could help fill these positions and help drive the workforce.
Neighboring states including Michigan and Kentucky offer a complete military income tax exemption for residents.
Visit https://www.in.gov/gov/newsroom/2023-bill-watch/ for a complete of bills signed into law this legislative session.
