Snow: Tax Relief Coming Soon For Hoosier Small Businesses
Snow: Tax Relief Coming Soon For Hoosier Small Businesses
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Staff Report-
Snow: Tax Relief Coming Soon For Hoosier Small BusinessesSTATEHOUSE – Legislation sponsored by State Rep. Craig Snow (R-Warsaw) providing Hoosier small businesses with tax relief was signed into law Wednesday by Gov. Eric Holcomb.
The new law, unanimously supported at every step and the first to be enacted during the 2023 legislative session, will provide about $50 million in federal tax savings for Indiana's small-business owners, according to a news release. Snow said the law will level the playing field to allow small businesses to qualify for the same federal tax deductions that larger corporations already enjoy.
"This is a commonsense move to provide tax relief to small-business owners across Indiana and make our state more competitive," Snow said. "We continue to send a strong message to job creators both large and small that Indiana is the best place to start and grow a business."
Under federal law, businesses can deduct their state tax payments from their federal tax liability. For businesses that pay income tax as a corporation, such as C corporations, this deduction is unlimited. However, for corporations where the owners or shareholders pay their own individual income taxes, such as LLCs and S Corps, this deduction is limited to $10,000. Snow said the law will allow LLCs and S Corps to receive an unlimited federal deduction for their state tax payments.
Indiana now joins at least 29 other states that have already made this change to their tax laws. The Indiana Chamber of Commerce, the Indiana CPA Society and the Indiana Bankers Association support the law.
