Indiana Business Property Tax Reform: What You Need to Know Indiana has taken a significant step toward easing tax burdens on businesses with the passage of Senate Enrolled Act 1 (SEA 1). Effective retroactively from January 1, 2025, the new legislation raises the business personal property exemption threshold from $80,000 to $1 million per county in acquisition cost. That threshold will double to $2 million for 2026 . In another major shift, the longstanding “30% floor” on the depreciation of equipment will be phased out for assets installed after January 1, 2025 —a change that could substantially reduce taxable values for qualifying new equipment. However, because these changes were enacted after many 2025 returns were filed, taxpayers may need to file amended returns . As of now, the Indiana Department of Local Government Finance (DLGF) has not yet released final guidance on how these provisions will be administered. Key Takeaways: Exemption threshold jumps to $1M in 2025 and $2M in 2026. Applies retroactively to January 1, 2025. 30% depreciation floor being eliminated for new equipment. Amended returns may be needed for early filers. Final administrative guidance from the DLGF is still pending. Given the ongoing changes, businesses should strongly consider filing returns in 2025—even if they believe they’re exempt—to remain compliant while administrative details are finalized . Have questions about how SEA 1 affects your business? Contact Baden Tax Management today to ensure you're positioned for compliance—and savings.

From Compliance to Strategic Partner: How Baden Helps CFOs and Tax Leaders See the Big Picture Tax compliance is often viewed as a necessary operational task, but it can also be a powerful tool for strategic financial management. Companies that view compliance as a routine back-office function may miss opportunities to optimize tax strategy, manage risk, and improve overall financial performance. Baden Tax Management goes beyond traditional compliance services. It helps CFOs and tax leaders integrate tax strategy into their broader financial goals. By shifting compliance from a regulatory obligation to a strategic advantage, companies can achieve stronger financial outcomes. The Limitations of a Compliance-Only Approach Many businesses treat tax compliance as a checklist item rather than a strategic function. This approach can result in missed opportunities and inefficiencies, including: Tax overpayment. Without a proactive strategy, companies may overpay on property taxes, miss abatements, exemptions, or miss other savings opportunities. Inefficient compliance processes. Managing multi-state tax compliance manually or with outdated processes can create unnecessary administrative burdens. Reactive problem-solving. Companies that only address compliance issues as they arise are more vulnerable to errors, penalties, and regulatory changes. Lack of financial visibility. Without a strategic tax approach, compliance is disconnected from financial planning, which leaves tax leaders without important insights. A more strategic approach can turn tax compliance into an opportunity for financial improvement rather than just an operational requirement. How Baden Helps CFOs and Tax Leaders Leverage Compliance Strategically Baden Tax Management helps businesses move beyond traditional compliance by identifying tax-saving opportunities, optimizing processes, and aligning compliance with broader financial objectives. Here’s how we do it: Comprehensive analysis and optimization. We analyze every aspect of a company’s tax position, identifying ways to improve compliance efficiency and reduce unnecessary costs. Integration with financial strategy. We work closely with CFOs and tax leaders to ensure tax compliance is aligned with corporate financial goals, improving cash flow and cost management. Proactive planning and risk management. By anticipating regulatory changes and planning ahead, we help companies stay ahead of tax obligations and minimize exposure to penalties. Efficiency through technology. Many tax departments struggle with outdated compliance processes that slow down operations. We help companies implement technology-driven solutions to streamline compliance, reduce administrative burdens, and improve reporting accuracy. The Benefits of a Strategic Compliance Approach By working with a tax compliance partner that understands the bigger picture, CFOs and tax leaders can: Reduce unnecessary tax burdens. A strategic approach helps identify tax-saving opportunities that might otherwise be missed. Improve efficiency and resource allocation. Streamlined compliance processes allow internal resources to focus on more valuable financial initiatives. Enhance financial planning and visibility. A proactive compliance strategy offers better financial forecasting and risk management. Reduce long-term tax liability. With a structured approach to compliance, companies can minimize unnecessary tax obligations over time. Compliance as a Strategic Advantage Tax compliance isn’t merely about meeting deadlines—it’s about uncovering opportunities to optimize financial results. Baden Tax Management assists CFOs and tax leaders in transforming compliance from a requirement into a strategic advantage, enhancing efficiency, lowering costs, and boosting financial performance. If you’re ready to take a more strategic approach to tax compliance, contact Baden Tax Management today.