STATEHOUSE (Jan. 6, 2022) – As the state’s labor shortage stretches into 2022, State Rep. Tim O’Brien (R-Evansville) authored legislation to provide an income tax deduction to help retain Indiana’s top talent and strengthen the workforce.
The legislation, authored by O’Brien, would make it so recent in-state college graduates and those who earn a high-value job certificate pay no state income tax on up to $50,000 of their income. The tax deduction would be for two to four years, depending on the type of degree.
“This incentive could encourage more Hoosiers to apply for jobs close to home instead of leaving the state for employment,” O’Brien said. “Indiana’s employers need more highly educated workers to meet the demand and this proposal would help address our labor shortage.”
There are more than 150,000 unfilled jobs in the state, according to the Indiana Department of Workforce Development. Yet Indiana’s unemployment rate in November was 3 percent, which represents 100,096 individuals, according to the U.S. Department of Labor. O’Brien said this shows how Indiana won’t fill its job openings without attracting new talent to enter the workforce.
A 2019 study by the Senate Joint Economic Committee found Indiana suffers from a net loss of almost 11% of all highly educated adults upon graduation.
House Bill 1119 is assigned to the House Ways and Means Committee for consideration. To learn more and watch legislative proceedings, visit iga.in.gov.
