Cutting the business tax on equipment and modernizing tax incentives to attract more businesses to Indiana are among the main elements of Governor Eric Holcomb’s 2022 Next Level Agenda, which he announced on Monday after- midday.
The annual Next Level agenda is a list of legislative and administrative priorities aimed primarily at strengthening the state’s economy.
The elimination of the 30% depreciation floor on corporate property tax on new equipment is one of the main items on the governor’s agenda.
Republican lawmakers in the House have already pushed for the idea of ââgradually lowering or removing the 30% depreciation floor, among other tax cuts. Republicans in the Senate were more hesitant about the idea.
The law requires companies to pay a tax on at least 30% of the purchase price of machinery and equipment each year, even if the equipment is several years old and is no longer worth 30% of its original cost. Holcomb’s proposal specifies to eliminate the floor on new equipment only and not on all equipment, which could lessen the blow to the drop in tax revenues.
There have been concerns among local governments, which will likely oppose the tax reduction if there is no provision to replace lost revenue.
The reduction in the equipment tax was part of an overall economic development goal, which is one of five categories on Holcomb’s agenda. Another priority is to work with lawmakers to modernize the Indiana Economic Development Corp. incentive toolkit. in order to remain competitive and attract new businesses to the state.
This includes making the organization’s tax credit portfolio more flexible, allowing the IEDC to tailor tax incentives to each business. The agenda also calls for allowing the IEDC to focus on providing more up-front incentives, instead of just long-term tax credits. In addition, creating incentives to attract more remote worker jobs from out-of-state companies to Indiana residents was also a priority.
Other items on Holcomb’s agenda:
- Amend legislation to streamline the system to get $ 125 for each Hoosier as part of the automatic taxpayer-triggered refund announced earlier this year, and have an additional 900,000 taxpayers pay income taxes but not earn not enough money to file a credit-eligible return.
- Connect unemployed Hoosiers with employers, jobs and training through a data-driven workforce system.
- Establish staff within the Law Enforcement Training Board to expand statewide training and program development and oversight that includes implicit bias and cultural awareness.
- Help local governments implement strategies to strengthen cybersecurity.
- Advance capital projects authorized in the current state budget.
- Remove the stigma of mental health by facilitating access to those in need of services, raising awareness, expanding education and increasing the mental health workforce.