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Senate amendment would raise senior circuit‑breaker thresholds and create a first‑time homebuyer property tax deduction
Summary
An amended version of Senate Bill 392 would increase the income and assessed‑value thresholds for the 65-and‑older and disabled veterans circuit‑breaker credits, enlarge the deduction amounts and add a new limited first‑time homebuyer property‑tax deduction for eligible households under age 35 (with a five‑year limit). The committee held the bill;
Senator Rogers presented an amended Senate Bill 392 that substantially rewrites earlier language to expand income and assessed‑value thresholds for the 65‑and‑older and disabled‑veteran circuit‑breaker credits, increase the maximum deduction amounts and create a new first‑time homebuyer property‑tax deduction.
Under the amendment, the maximum deduction for the 65/disabled‑veteran category would increase from $14,000 to $20,000 and the assessed‑value threshold would rise from $240,000 to $300,000, with an annual automatic adjustment tied to median home sale prices as calculated by the Department of Local Government Finance (DLGF). The amendment also creates a $20,000 annual deduction for eligible first‑time homebuyers: households where all members are 35 or younger, all dependents are under 18, household income does not exceed $75,000 and the gross assessed value of the home is under $250,000; DLGF would prepare an application, and taxpayers must apply by Jan. 15 of the calendar year.
AARP Indiana, Habitat for Humanity, the Indiana Association of Realtors and veterans' advocates testified in favor, saying the changes would expand eligibility for existing credits and help seniors, veterans and younger buyers facing rising housing costs. "By making adjustments suggested in the bill, more older Hoosiers will qualify to participate in the program that already exists," Amber Marr of AARP Indiana said.
County and municipal associations and the state auditors' group asked for technical fixes to administration and raised concerns about regional variation in housing costs and potential software updates for local auditors. Witnesses and some senators flagged the age cap and five‑year limit for the first‑time homebuyer deduction as items for further discussion; committee members said they intend to hold the bill and return to it for further drafting.
The committee held the measure for additional work and requested stakeholder meetings to refine eligibility, indexing provisions and administrative filing requirements.
