Legal Reform

State Director Natalie Carroll recently testified before the House Judiciary Committee in support of House Bill 1417, legislation that aims to lessen frivolous lawsuits in the state. The bill focuses on two main legal reform items; it brings greater clarity and predictability to how public nuisance actions may be used thereby providing better protection for businesses and increases the cap on qualified settlement offers, to encourage early compromise and avoid long, costly litigation. These legal reforms are an important step toward maintaining a more balanced and fairer legal climate. HB 1417 passed out of the House and will now move to the Senate.

Take Action: Now is the time to tell your lawmakers to support House Bill 1417 and provide much-needed legal reform for small businesses! Contact your legislator here.

Taxes

Last year, NFIB worked hard to increase the business personal property (BPP) tax exemption from $80,000 to $2 million starting in the 2027 tax year. With this increase, Hoosier small businesses are essentially exempt from this onerous tax.

However, Indiana legislators are discussing undoing this huge tax relief before it takes effect. This would significantly reduce the number of small businesses that could benefit from this tax relief.

Tell your legislators to save the BPP tax exemption and that you deserve to keep more of your hard-earned money!

NFIB is also championing Senate Bill 259, legislation to remove unnecessary and burdensome reporting requirements for pass-through entities and eliminate the associated penalty. Passage of this bill is estimated to save small businesses nearly $20,000 annually. NFIB was the only business group to testify on it this session.

NFIB was disappointed that the legislature failed to conform with the 20% Small Business Deduction in the One Big Beautiful Bill Act with the passage of Senate Bill 212. The State Income Tax Law Conformity bill focused on those conformity provisions that impact income earned in 2025.  The only Internal Revenue Code provisions in the bill include the Adoption Credit, the Safe Harbor for Absence of Deductible for Telehealth and the removal of the Accelerated Cost Recovery System for solar and wind projects. SB 212 passed the Senate and the House and was signed into law by the Governor.

House Bill 1329, Real Property Assessment, establishes the real property assessment task force (task force) to review issues related to real property assessment in Indiana. It sets forth membership and requires the task force to issue a report to the general assembly not later than November 1, 2026. NFIB is working to ensure that small businesses are part of the discussion.

NFIB worked with stakeholders and the sponsor of House Bill 1144, Tourism Improvement Districts, to make improvements to the bill. The bill allows for the creation of a tourism improvement district at which point the businesses within the defined district will be assessed a fee (aka, special tax). An amendment to create an opt-out for small businesses that do not wish to participate in the project because they do not feel they would benefit from it, passed in the House Committee hearing. The bill was then amended in HB 1210, the Department of Local Government Finance bill.

Energy

NFIB is monitoring House Bill 1002, a bill aimed at stabilizing energy rates and providing more certainty for consumers. The legislation mainly focuses primarily on residential ratepayers, however the multi-year rate plans and performance-based rate (PRR) plans apply to the commercial ratepayers. Energy is a top priority for Indiana small businesses, and we will continue to be at the forefront of this issue.

Economic Development

Senate Bill 281 has the potential to serve as a catalyst for regional collaboration to drive economic growth. This bill introduces a mechanism for tax credits that can be awarded to taxpayers who make qualified investments in redevelopment projects. NFIB will continue to monitor this bill to ensure that it provides sustainable development and creates real opportunities for small businesses. The bill passed out of the Senate and will move forward to the House Chamber.

Health Care

House Bill 1271, Payment of Health Claims, aims to address health care affordability and increase accountability for hospitals and insurers. While the intent is good, the approach may have unintended consequences that could be harmful to small businesses. Reducing the recoupment window of former claims from two years to six months could lead to higher premiums as recoupment becomes more difficult. NFIB is committed to working with the bill author to address these concerns.

NFIB supports House Bill 1335 which sets forth additional requirements for a nonprofit hospital’s community benefits plan (plan). It requires a nonprofit hospital to spend more under the nonprofit hospital’s plan than the nonprofit hospital’s estimated tax exemption value and adds additional reporting requirements for a nonprofit hospital’s annual plan report (report). By requiring nonprofit hospitals to spend more on community benefits than they receive in tax exemptions, the bill ensures these entities provide a measurable return to the public. The bill passed out of the House and now moves to the Senate.

Environment

NFIB is monitoring Senate Bill 277, an environmental bill aimed at improving regulatory clarity and consistency while preserving existing environmental protections. SB 277 makes several technical updates across Indiana’s environmental statutes, including clarifying permitting coordination, refining definitions related to land application and waste management, and updating processes for underground and aboveground storage tank remediation. It streamlines the environmental permitting process and curbs regulatory overreach. It passed out of the Senate and now moves to the House.