The Indiana General Assembly convened earlier this month to consider new mid-cycle congressional maps. The measure failed in the Senate, effectively ending a controversial debate that drew national attention and dominated statewide policy discussions for the past five months.

The General Assembly will reconvene on January 5, 2026. The legislative session is expected to end on February 27 due to the early start in December. NFIB will be working diligently under the condensed schedule to tackle the following priority issues.

Legislative updates include:

Federal Income Tax Law Conformity

Our top priority is to advocate for legislation that would conform Indiana’s tax code with the new federal tax provisions. The Small Business Deduction passed by Congress in the One Big Beautiful Bill allows small businesses nationwide to deduct up to 20% of their business income and was a top federal priority for NFIB members. Unless the Indiana General Assembly updates our tax code to match the new federal provisions, Hoosier small business owners will not receive the full impact of the tax relief Congress intended. TAKE ACTION: Tell your lawmakers to protect the federal 20% Small Business Deduction!

Local Income Tax Reform

Property tax reform passed during the 2025 legislative session and made significant changes to Indiana’s local income tax system. As the local impact of these changes are addressed this session, it is crucial that the General Assembly keep small businesses in mind as they consider making further changes to the state tax code that will allow Indiana’s Main Street to thrive.

Lawsuit Abuse Reform

NFIB will be working with several other business advocacy organizations to support a comprehensive legal reform package aimed at addressing rising business insurance costs. If you have experienced a frivolous lawsuit or rising costs, please let us know by taking our survey.

Small Business Healthcare Insurance

The small business health care market is in crisis mode. As such, NFIB will continue to focus opportunities to expand health care insurance options for small businesses while increasing competition in the industry to drive down rates. In addition, NFIB will play defense on any potential health care proposals that drive up costs for employers.

Energy Cost and Reliability

The Indiana Strategic Energy Growth Task Force will be making recommendations for new policies for the legislature’s consideration that address ways to respond to the state’s increased energy demands. Other legislative proposals may include the adoption of performance-based ratemaking and multi-year rate plans to address rising utility rates. NFIB will be supportive of policies that support reliability and affordability.