INDIANAPOLIS — The Indiana Senate passed a bill that would give 4.3 million Hoosier taxpayers a $125 refund after filing their 2021 taxes. The bill now goes to the House.
The refund was proposed by Gov. Eric Holcomb because the state closed the fiscal year with an unprecedented amount in reserves, allowing the opportunity to return some of that back to citizens.
An estimated $545 million will go back into the pockets of Hoosiers after they file taxes. The DOR expects to to have all refunds processed by May 1, 2022 for Hoosiers that complete their taxes by the April 18 deadline.
The $125 credit represents a 12-13% tax cut for most Hoosiers. The typical taxpayer liability is around $1,000.
Republicans in the House pushed though a plan for broad cuts to Indiana’s business and individual taxes, sending it to an uncertain fate in the GOP-dominated Senate.
House members voted 68-25 mostly along party lines Thursday in favor of the proposal potentially cutting more than $1 billion a year in various taxes.
Key parts of the House plan would cut Indiana's current individual income tax rate of 3.23% over the next four years to 3%, along with reducing several business taxes.
Republican Gov. Eric Holcomb and GOP Senate leaders have raised doubts about taking action on major tax cuts this year.