INDIANAPOLIS — State Senator Fady Qaddoura’s (D-Indianapolis) Senate Bill (SB) 394 aimed to provide tax relief to hard working Hoosiers was heard in Tax and Fiscal Policy Committee today.

As the Ranking Minority Member of the Senate Committee on Tax and Fiscal Policy, Sen. Qaddoura emphasized the importance of prioritizing investments that benefit Hoosiers. “My bill proposes key tax changes designed to offer tax relief to those who need it most while balancing fiscal responsibility and the interests of Hoosiers,” he said.

The bill includes reforms across eight major areas of tax and fiscal policy:

  • Property Tax: offers credits to reduce property tax liability—0% cap for senior citizens and 3% annual cap for families making less than $400,000 annually.
  • Veterans’ Benefits: full property tax exemption for permanently disabled veterans.
  • State Income Tax Deduction: increases personal exemptions for families making less than $400,000 annually and introduces additional deductions for educators, police officers, firefighters, and veterans.
  • Renewable Energy Incentives: allows deductions for the full cost related to installing solar panels.
  • Housing Tax Credits: expands the renter’s deduction with a refundable credit, with higher amounts for disabled veterans and introduces a $15,000 mortgage credit for first-time homebuyers.
  • Retirement Income Exemption: exempts the first $16,000 retirement income for individuals aged 62 and older.
  • Utility Taxes: exempts utility services such as water, gas and electricity from sales tax
  • Educational Tax Holiday: establishes sales tax holidays in January and August for school supplies.
  • Appropriation: allocates $140 million to fund childcare programs for more than 20,000 children.

Additionally, Senate Bill 1, was heard in committee, which includes sweeping property tax cuts. These cuts, if enacted, could have devastating consequences for public schools and local government services.

“With a biennial budget of more than $46 billion, the General Assembly can be strategic in how it allocates funds to meet the needs of Hoosiers without negatively impacting local services,” said Qaddoura. “My bill focuses on responsible tax reforms that prioritize the financial security of Hoosiers while protecting funding for public schools and the sustainability of local services such as public safety. On the other hand, SB 1, in its current form, threatens these essential services.”

Sen. Qaddoura urges lawmakers to consider the far-reaching consequences of SB 1 and work in a bipartisan fashion toward responsible, equitable fiscal policies that protect the interests of all Hoosiers.

“It is my commitment to work together with my colleagues to ensure policy proposals from SB 394 are included in the final draft of the legislation that provides relief to Hoosiers without harming local services such as public safety,” said Qaddoura.