INDIANAPOLIS (AP) — A plan for gradually cutting Indiana’s individual income tax rate over the next seven years has been signed into law by Gov. Eric Holcomb.

The governor’s office announced Wednesday that Holcomb had signed the bill approved by legislators last week that will reduce the state’s current income tax rate of 3.23% to 2.9% in small steps until its planned full implementation in 2029.

Holcomb and some legislative leaders for months resisted backing significant tax cuts, citing concerns about inflation and a possible economic slowdown. Republicans rejected a call from Democrats for suspending the state’s gasoline tax, which Democrats argued would provide residents with immediate savings.