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Bill

SB 407

Tax credit for employer guard and reserve expenses.

2025 Regular Session Introduced by Blake Doriot and 3 co-sponsors

Indiana would grant employers a state income tax credit for costs incurred when employees serve in the National Guard or military reserves.

Senators Doriot and Maxwell added as coauthors
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Bill Summary · SB 407

Legislative bill overview

SB 407 creates a state income tax credit for employers who pay expenses related to employees serving in the Indiana National Guard or military reserves. The credit would apply to costs employers incur when employees take time away from work for military service, duty, or training obligations. The bill incentivizes private sector support for military personnel by offsetting employers' financial burden.

Why is this important

Military service members often face income disruptions and employers may experience staffing costs when employees deploy or attend required training. This tax credit could improve retention of military-connected workers in Indiana's private sector and reduce financial strain on small businesses that employ guardsmen and reservists. However, the actual fiscal impact depends on the credit's size, eligibility criteria, and how many employers would claim it.

Potential points of contention

  • Cost to state revenue: The bill's fiscal impact is not yet specified; critics may argue Indiana cannot afford tax credits without knowing the price tag
  • Definition and verification: Unclear what "guard and reserve expenses" specifically covers and how employers would document and verify qualifying costs
  • Equity concerns: The credit may disproportionately benefit larger employers with more guard/reserve workers, raising fairness questions for businesses without military employees

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

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