As the 2023 Legislative Session is winding down, bills are being sent to the office of Governor Holcomb to be signed into law or vetoed. As of March 22, Governor Holcomb has signed two bills into law, with eight others awaiting action.

Senate Enrolled ACT 2 (SEA 002) - Taxation of pass-through entities

On Feb. 22nd, Governor Eric Holcomb signed the bipartisan Indiana Senate Enrolled Act 2, joining 29 other states that have enacted pass-through entity tax (PTET) legislation. 

Pass-through entity tax allows state income tax to be paid directly by the pass-through entity rather than the pass-through level entity owner. The PTE tax legislation aims to maximize the individual state tax deduction for federal purposes and reduce federal income tax.

PTE tax is only one of the workarounds states have considered after the enactment of The Tax Cuts and Jobs Act of 2017 (TCJA) which limited the deduction for state and local taxes to $10,000 for individuals who itemize deductions for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026.

SEA 002 was authored by Sen. Scott Baldwin (R), District 20, and Senator Chris Garten (R), District 45. It was co-authored by Sen. Jon Ford (R), District 38, Sen. Linda Rogers (R), District 11, Sen. Kyle Walker (R), District 31, Sen. Fady Qaddoura (D), District 30, Sen. Lonnie Randolph (D), District 2 and Sen. Brian Buchanan (R) District 7. The bill was Sponsored by Rep. Craig Snow (R), District 22,  Rep. Jeffrey Thompson (R), District 28, Rep. Edward DeLaney (D), District 86, and Rep. Gregory Porter (D), District 96.

Senate Enrolled Act 9 (SEA 009) - Energy Utilities

Senate Bill 9 authorizes the Indiana Utility Regulatory Commission (IURC) to adopt a review process for when a public utility producing at least 80 megawatts requests to retire, sell or transfer an electric generation facility. When considering a public utility's intention to relieve ownership of an electric generation facility, the IURC must examine its impact on state and local energy needs. In addition, accelerated depreciation will not be permitted on early closures unless there is a catastrophic event to the generation plant. 

SEA 009 was sent to Holcomb's office on March 22 and was signed by Holcomb the same day. 

The bill was Authored by Sen. Jean Leising (R), District 42,  Sen. Eric Koch (R), District 44, and Sen. Susan Glick (R), District 13. It was co-authored by Sen. James Tomes (R), District 49, and  Sen. Vaneta Becker (R), District 50. The bill was sponsored by Rep. Edmond Soliday (R), District 4, Rep. Ethan Manning (R), District 23, and  Rep. Randall Frye (R), District 67.

The following bills were sent to Governor Holcomb's office on March 29 and require action by the Governor today, April 5. To read more about each bill, visit https://iga.in.gov/ legislative/2023/bills /senate

•Senate Bill 48 (SB 048) - Child Sex Offenses 
•Senate Bill 114 (SB 114) - Receivership for past due utility bills
•Senate Bill 296 (SB 296) - Sale of tax-delinquent real property
•Senate Bill 374 (SB 374) - Regional water, sewage, or solid waste districts 
•Senate Bill 445 (SB 445) - Electronic monitoring standards  
•Senate Bill 480 (SB 480) - Gender transition procedure for minors
•House Bill 1323 (HB 1323) - Information Privacy Relating to Firearms 
•House Bill 1327 (HB 1327) - Accountancy

In order for a bill to reach the office of the governor, enrolled acts are signed by the Speaker of the House and the President Pro Tempore and then sent to the office of the lt. governor for signature. They are then returned to the office of the secretary of the Senate (for Senate Enrolled Acts) or the clerk of the House of Representatives (for House Enrolled Acts) and then to the office of the governor. 

From there, the governor reviews all legislation and has seven days to sign or veto the bill. If he does not sign it, it automatically becomes law on the eighth day after receipt.