Indiana taxpayers will be eligible for a $200 tax refund following Gov. Eric Holcomb’s signing of the inflation relief bill late Friday evening.
Gov. Holcomb had initially proposed $225 in refunds when he called the Indiana General Assembly into a special session. However, lawmakers decided to lower that amount to $200 as part of a compromise between the House and Senate.
In addition, the bill also caps the state’s gas use tax rate at $0.295 per gallon through June 30, 2023.
The tax refund payments would use $1 billion of Indiana’s $6.1 billion budget surplus for the rebates.
As part of the inflation relief bill, lawmakers also agreed to move $1 billion from the state’s surplus toward the state teacher pension fund.
In a statement released late Friday evening, Gov. Holcomb said, “Today, I proudly signed Senate Enrolled Act 2 to return $1 billion back to Hoosier taxpayers. This fulfills what I set out to accomplish when calling the General Assembly into special session in order help Hoosiers hurting from historically high inflation.”