Created as the result of a surplus from 2021’s state revenue, excess money also was supplied to a retirement fund for Indiana retirees including teachers while the remaining $545 million will be given back to 4.3 million Hoosiers. Controversy regarding the usage of this money was addressed earlier in debate on the bill.

Sen. Travis Holdman, R-Markle, speaks in support of Senate Bill 1 in January. If enacted, the bill would give Hoosier taxpayers a $125 return.  Photo by Isaac Gleitz, TheStatehouseFile.com.

Now an additional estimated 440,000 taxpayers will receive a tax refund depending on how they filed in 2021. A base return of $125 will be issued to these newly eligible Hoosiers, increasing the amount of Indiana tax refunds received. Even without meeting the state’s usual income threshold for $1,000 or more annually, qualifying citizens will receive this bonus.

“It includes those people who maybe didn’t have an Indiana tax liability for some reason, either Social Security or disabled income that they have,” Rep. Timothy Brown, R-Crawfordsville, said. “It increases the number of people getting a refund.”

Its proposal earlier this year promoted a “simple and fair” automatic taxpayer refund and had Holcomb’s support.

SB 1 passed 88-0 and will go into effect with Holcomb’s signature.