INDIANAPOLIS, Ind (WEHT) – Indiana House Republicans advanced a tax cut package on January 21 that could put over $1.3 billion back in Hoosiers’ pockets, according to State Representative Tim O’Brien (R-Evansville), co-author of House Bill 1002.

The state’s budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. O’Brien said if House Bill 1002 becomes law, it would be the largest tax cut in state history. “Due to decades of strong leadership, Indiana finds itself in the enviable position of expecting $3.3 billion more in revenue over the biennium than what was projected,” O’Brien said. “Now we can do the right thing and return the money to the taxpayers with responsible cuts that will continue to grow our state’s economy.”

O’Brien said the bill would deliver direct relief to working Hoosiers by phasing down Indiana’s individual income tax from 3.23% to 3% by 2026. If passed, Hoosiers would also pay less on their utility bills with the elimination of the 1.4% Utility Receipts Tax, which would take effect in July. Currently, individuals and businesses pay the Utility Receipts Tax on their monthly electric, natural gas, water, steam, sewage and telecommunications bills.

About 4.3 million Hoosier taxpayers are set to receive a $125 refund after they file their taxes in 2022 due to higher-than-expected state revenue numbers during the 2021 fiscal year. House Bill 1002 would help streamline this process and ensure about another 900,000 taxpayers also receive a refund.

O’Brien said Indiana has paid down well over $1 billion in debt over the last year alone. Visit this website for more information on House Bill 1002, as the bill is now moving to the Indiana Senate.