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Bill

SB 213

Income tax deduction for theft loss.

2026 Regular Session Introduced by Travis Holdman and 2 co-sponsors

Indiana would allow taxpayers to deduct personal property theft losses from state income tax, reducing state revenue while providing relief to theft victims.

Committee report: amend do pass, adopted
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WeVote Research Nonpartisan
Bill Summary · SB 213

Legislative bill overview

SB 213 would allow Indiana taxpayers to claim an income tax deduction for personal property losses due to theft. This modifies the state's tax code to provide financial relief to victims of theft by reducing their taxable income in the year the loss occurs.

Why is this important

Theft victims already face financial hardship from their losses. This deduction could provide meaningful tax relief, particularly for lower-income residents who may lack insurance coverage. However, the fiscal impact depends on how broadly "theft" is defined and what documentation requirements exist.

Potential points of contention

  • Revenue impact: The bill could reduce state tax collections, requiring clarification on estimated cost and whether this is offset elsewhere in the budget
  • Defining eligible losses: Questions remain about which types of theft qualify (vehicle vs. personal items), minimum loss thresholds, and whether federally-deductible casualty losses are already covered
  • Verification burden: Determining legitimate theft versus fraudulent claims requires clear documentation standards (police reports, proof of ownership, value assessment)
  • Equity concerns: Insurance holders may already recoup losses through claims; this deduction effectively subsidizes uninsured theft victims, raising questions about fairness
  • Complexity: Creates administrative challenges for the Indiana Department of Revenue in validating claims

Compiled from official sources — confirm details with the bill’s official record.

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