Indiana’s Senate Enrolled Act 1 (SEA 1) of 2025 is a comprehensive property tax reform law signed by Governor Mike Braun on April 15, 2025. It provides an estimated $1.3 billion in relief for homeowners, farmers, and businesses over three years.
Key Tax Relief Provisions
  • Homestead Tax Credit: Most homeowners will receive a new annual property tax credit of 10% of their bill, capped at $300.
  • Senior & Veteran Benefits: Deductions for seniors (65+), blind, disabled, and veterans are converted into more substantial tax credits, with an additional $150 credit for those over 65.
  • Business Personal Property Exemption: The threshold for business equipment tax exemption is significantly increased:
    • 2026: Exempts businesses with less than $1 million in personal property.
    • 2027+: Exempts businesses with less than $2 million in personal property.
  • Valuation Floor Removal: Eliminates the 30% “valuation floor” for personal property placed in service after January 1, 2025.
  • Agricultural Land: Adjusts the assessment formula for two years to reduce farmland taxes by an estimated $116 million.
Local Government & School Impact
Critics and local officials have raised concerns about the fiscal impact on local services:
  • Revenue Loss: Public schools are projected to lose roughly $744 million by 2028, potentially impacting transportation and facility maintenance.
  • Funding Gaps: Local governments may face a combined $1.8 billion funding loss, which could affect police, fire, and emergency services.
  • Local Income Tax (LIT) Shift: To offset losses, the law provides new tools for local units to raise income taxes, leading some to call it a “bait-and-switch” that shifts the tax burden from property owners to workers.
Transparency Measures
  • Public Hearings: Starting in 2026, local political subdivisions must hold public hearings and pass ordinances for any rate or levy increases, even if they result from assessed value growth.
  • Charter School Sharing: Requires school corporations to share revenue from operating and operations fund levies with certain charter schools beginning in 2028.