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Governor signs small business federal tax savings bill into law

The exterior of a state government building in downtown Indianapolis. Along the top of the building is lettering reading "Indiana A State that Works."
FILE PHOTO: Justin Hicks
IPB News
The first bill signed into law in 2023 is a measure meant to save Indiana small businesses money on their federal taxes.

Hoosier small businesses can get greater federal tax savings this year because of the first bill from the 2023 session that’s been signed into law.

The measure signed Wednesday, SB 2, allows small business owners who file individual income taxes (not corporate income taxes) to fully deduct their state tax payments from their federal taxes.

Previously, those deductions were capped at $10,000.

READ MORE: Bill to save small businesses millions in federal taxes heads to governor's desk

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Proponents of the bill say it could save about 500,000 businesses in Indiana more than $100 million.

Brandon is our Statehouse bureau chief. Contact him at or follow him on Twitter at @brandonjsmith5.

Brandon Smith has covered the Statehouse for Indiana Public Broadcasting for more than a decade, spanning three governors and a dozen legislative sessions. He's also the host of Indiana Week in Review, a weekly political and policy discussion program seen and heard across the state. He previously worked at KBIA in Columbia, Missouri and WSPY in Plano, Illinois. His first job in radio was in another state capitol - Jefferson City, Missouri - as a reporter for three stations around the Show-Me State.