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Some new Indiana laws' effects come after July 1, including income tax cut

By Brandon Smith

Posted July 1, 2022

Lawmakers passed a $1 billion tax cut package in 2022. But Hoosiers won’t start to see the bulk of those cuts until January 2023.

The majority of laws passed each year by the Indiana General Assembly take effect July 1. But there are always a few that take a little longer.

Lawmakers passed a $1 billion tax cut package this year in HEA 1002. But Hoosiers won’t start to see the bulk of those cuts until January. That’s when the first stage of an income tax cut will take effect.

The individual income tax rate will be about 2.5 percent lower starting next year. It won’t be cut again until at least 2025, and then again in 2027 and 2029. But those cuts starting in 2025 will only happen if state revenues grow at least 2 percent.

And the savings from those cuts will be modest. If you make $50,000 a year, the first cut will save you about $40 a year.

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 73224. Your comments and questions in response to our weekly text help us find the answers you need on statewide issues.

Also taking effect in January is a bill, HEA 1313, requiring health care providers to screen Hoosier children for lead poisoning.

Other measures took effect more immediately but have due dates in them that are past July 1. For example, lawmakers this year created a task force to examine housing shortages in Indiana. That report, required by HEA 1306, isn’t due until Nov. 1.

Similarly, SEA 271 orders the Indiana Utility Regulatory Commission to create rules for small modular nuclear reactors. The agency has until July 1 of next year to do so.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.