IN HB1135

Creates a 50% transfer tax on the fair market value of any single family residence (1-4 units) acquired by applicable taxpayers—defined as partnerships, corporations, or REITs that manage pooled investor funds—after December 31, 2026

Imposes a $50,000 annual excise tax per excess single family residence owned above the maximum permissible limit, with hedge fund taxpayers ($50M+ in assets) required to fully divest over 10 years and other applicable taxpayers allowed to retain up to 50 units

Establishes the Housing Down Payment Assistance Fund, administered by the Indiana Housing and Community Development Authority, funded by the new taxes and penalties to help homebuyers purchase single family residences

Exempts 501(c)(3) nonprofits, organizations primarily engaged in construction/rehabilitation, properties acquired through foreclosure, owner-occupied residences, and properties using federal funding

Requires applicable taxpayers to report acquisition dates and buyer certifications to the Department of Revenue, with a $20,000 penalty for reporting failures