Indiana Business Property Tax Reform: Critical Update for 2025

latest indiana business property tax update:

Recent legislative changes have significantly altered the approach to Indiana’s business personal property tax exemption for 2025.

Here’s what your clients need to know now:

KEY LEGISLATIVE UPDATE:

• The previously announced $1 million exemption threshold for the 2025 assessment year has been repealed. The exemption threshold for 2025 remains at $80,000 per county in acquisition cost.

• The exemption will jump to $2 million per county for the 2026 assessment year and beyond, as originally planned.

• If your clients filed a 2025 business personal property tax return before April 15, 2025 and claimed the now-repealed $1 million exemption, they must file an amended return by May 31, 2025 to remain compliant with the law.

• The phase-out of the “30% floor” on depreciation for new equipment placed in service after January 1, 2025, remains in effect.

Contact Baden Tax Management today to ensure you're positioned for compliance—and savings.