By CHRIS JETER
State Representative
I remember filling out paperwork after getting ready to start officer training school back in 2005, and other people were passing around a paper that had all the states that exempted you from the individual income tax. Other people were saying you needed to put down one of those states as your home of record. To me, it was so foreign to put any other state but Indiana down.
We want our nation’s service members to choose our state, and hopefully join our workforce and plant their roots here. To attract and encourage more service members to locate our state, I co-authored legislation this session to phase in a complete income-tax exemption for military pay for Indiana’s active military members.
Currently, active military members can qualify for a maximum $5,000 exemption from the state individual income tax, and active duty Indiana National Guard and reserve members receive a full exemption. If passed, House Bill 1034 would include a 25 percent exemption on military pay in 2024, 50 percent exemption in 2025, a 75 percent exemption in 2026 and end with a full exemption by 2027.
Military members are a tremendous asset and their skills transition well into the civilian workforce. Indiana is facing a skilled labor shortage, with more than 85,000 open job opportunities. These professionals have the leadership, communication, and technical skills our state needs, and this legislation would offer a great incentive for them to live and work here.
After their service, veterans can begin careers in a number of fields, like health care, technology and law enforcement, but the first step is finding a place to call home. With neighboring states like Michigan and Kentucky already offering a complete exemption for military income, Indiana needs to offer the same incentives to service members and support those looking to make a life here.
Indiana is home to many skilled veterans, and it’s important we continue to encourage more active-duty military members to locate to our communities when they transition out of the service. House Bill 1034 recently advanced to the Indiana Senate for further consideration. To follow it throughout the legislative process, visit iga.in.gov. To stay in touch, sign up for my e-newsletter at in.gov/h88.
State Rep. Chris Jeter (R-Fishers) represents House District 88, which includes portions of Hamilton, Hancock, Madison and Marion counties.