Indiana 2026 Regular Session

Indiana House Bill HB1156

Introduced
1/5/26  

Caption

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Summary

HB1156 amends Indiana’s veterans property tax deduction statute to remove the assessed-value cap that currently limits eligibility for certain disabled veterans. Under current law, the deduction is available to a veteran with a total disability, or to a veteran age 62 or older with at least a 10% disability, but only if the veteran’s Indiana property falls below a specified assessed-value threshold. The bill keeps the existing eligibility requirements tied to military service, honorable discharge, disability documentation, and ownership or contract-purchase status, but eliminates the cap so that qualifying veterans are no longer disqualified based on property value. The bill also preserves the deduction for surviving spouses in qualifying circumstances, including when the veteran died in service or met the disability requirements before death. It retains the existing rule that the deduction cannot be claimed on property sold under a contract where the buyer pays the taxes, and it keeps the assessor reporting requirement for increases in assessed value due to substantial renovations or new improvements. The bill is effective July 1, 2026, and applies to assessment dates after December 31, 2026, with a sunset provision for one section in 2029.

Impact

HB1156 would change Indiana Code 6-1.1-12-14 by removing the assessed-value limitation for the veterans property tax deduction for qualifying disabled veterans and eligible surviving spouses. In practical terms, more veterans who meet the service, discharge, age, and disability criteria would be able to claim the deduction regardless of the value of their home or qualifying property. The bill would likely reduce local property tax collections to the extent additional claims are approved, while increasing the number of eligible taxpayers and shifting administration to county assessors and auditors who process the deduction.

Sentiment

Based on the bill’s caption and introduced text, the measure appears to be framed as a veterans’ tax relief bill and is likely to receive generally favorable treatment as a benefit for disabled veterans and their surviving spouses. No committee transcript or vote record was provided, so there is no direct evidence of debate, amendments, or opposition in the available materials. The introduced version suggests a straightforward policy goal of expanding eligibility rather than restructuring the deduction itself.

Contention

The main policy issue is the removal of the assessed-value cap, which expands eligibility and could increase the fiscal impact on local governments. Supporters would likely emphasize fairness and additional relief for disabled veterans, especially older veterans with modest disabilities whose homes have appreciated in value. Any opposition would likely focus on lost property tax revenue, the breadth of the expansion, and whether the deduction should remain targeted to lower-value properties. No specific objections or competing viewpoints appear in the provided committee or vote materials.

Companion Bills

No companion bills found.

Previously Filed As

IN HB1283

U.S.S. Indianapolis CA-35 Day.

IN HB1219

Taxation of grain processing equipment.

IN SB0347

Indiana economic development corporation.

IN HB1095

Indiana crime guns task force.

IN HB1280

Taxation of military income.

IN HB1383

Indiana civilian cyber corps.

IN SB0288

Taxation of fuel.

IN HB1008

Indiana-Illinois boundary adjustment commission.

IN HB1269

Indiana economic development corporation.

IN HB1337

Time observance in Indiana.

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