HB 1470 Summary

• Establishes an income tax reduction reserve fund that distributes annual refundable tax credits to Indiana residents from general revenue fund surpluses exceeding 10% of appropriations.

• Increases the personal deduction from $1,000 to $1,265 for tax years beginning after December 31, 2011, with inflation adjustments thereafter; increases deductions for dependent exemptions and property tax payments.

• Phases out Indiana's inheritance tax by 2023 through increasing credits (9% starting July 1, 2013, reaching 100% by July 1, 2023) and eliminates estate and generation-skipping transfer taxes after June 30, 2023.

• Reduces corporate income tax rates annually from 8.5% to 5.5% between July 1, 2013 and July 1, 2017; prohibits net operating loss carrybacks for losses incurred after December 31, 2011.

• Permits county and city fiscal bodies to grant 100% deductions or credits on personal property taxes; allows enhanced tax abatements for vacant buildings in designated downtown areas; modifies tobacco tax on moist snuff to $0.50 per ounce.