Plan to cut business equipment tax draws debate

Indiana Statehouse
(WISH Photo, file)

INDIANAPOLIS (AP) — Members of an Indiana House committee still are divided over cutting the state’s business equipment tax after nearly three hours of discussion.

The House Ways and Means Committee heard testimony Monday on a Senate proposal to cut the tax for small businesses. A separate House plan would give counties the option to cut the business tax only on new equipment.

Both plans address Gov. Mike Pence’s proposal to cut the tax entirely in an effort to boost the state economy and attract more jobs. Local governments and schools now draw $1 billion in revenue from the tax.

Whether cutting the tax will draw more businesses to the state is unclear. A report released last week shows little evidence that the tax affects companies’ decisions to relocate to Indiana. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

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