On May 6, 2025, Indiana Governor Mike Braun signed House Bill 1001 (HB 1001), the state's biennial budget bill, which will require the Indiana Department of Revenue (Department) to establish a tax amnesty program for taxpayers with an unpaid tax liability for a listed tax due and payable before January 1, 2023.

HB 1001 provides that the amnesty provisions are effective on July 1, 2025, with the amnesty period to be determined by the Department. The amnesty program may not exceed eight weeks and must end on the earlier of the date set by the Department or January 1, 2027. HB 1001 calls for the waiver of interest and penalties for participating taxpayers.

The amnesty program appears to apply to most Indiana taxes except those related to riverboat or racetrack gambling. Taxpayer may not participate in this new amnesty program if they have participated in any prior Indiana amnesty program or special amnesty program for use tax on claimed racehorses.

HB 1001 authorizes the Department to adopt administrative rules to facilitate the program.

Implications

Indiana previously offered tax amnesty programs in 2005 and 2015. Taxpayers should monitor developments in this area as the Department will issue guidance on the amnesty program for sometime after June 30, 2025.