SB264 would have expanded the state's Economic Development for a Growing Economy tax credit by allowing larger subsidies for companies that pay to relocate workers to Indiana or retain employees by increasing their hourly wages by at least 25 percent. It also would have clarified requirements for certifying qualified Indiana investment funds.

The Indiana State Senate passed SB264 on January 26, 2026 by a vote of 41 to 3. We have assigned pluses to the nays because this legislation expands a preferential tax credit that allows government to favor certain businesses over others. Such targeted credits distort the free market, shift a greater share of the tax burden onto those who do not qualify, and empower government to pick economic winners and losers. Instead, the General Assembly should reduce and eliminate taxes broadly and uniformly for all individuals and businesses.