INDIANAPOLIS – Governor Mike Pence signed into law two bills dealing with economic development Tuesday, including a series of tax cuts for Indiana businesses.
Pence signed Senate Enrolled Act 1, which cuts the state’s corporate tax rate, and gives local governments the option to reduce the business personal property tax, on business equipment and machinery. For months, the governor has said he thinks more businesses would come to the Hoosier state if Indiana were to phase out the tax.
Many neighboring states don’t have the tax, or are in the process of phasing it out. Still, some worry reducing the tax would mean drastically less money for local governments, or more taxes for homeowners. The new law will also reduce the state’s corporate tax rate- but the law won’t go into effect for at least another year.
“When it’s fully effected, we will have the 2nd lowest corporate tax rate in America,” said Pence. “And we may have to put that on billboards all over the country.”
Pence’s office also announced Tuesday that GE Aviation would be making a major jobs announcement, involving its first ever aviation production facility in Indiana. The governor was planning to join company executives Wednesday in West Lafayette.
“We’re very encouraged about a widening number of companies that are choosing the Hoosier state,” said Pence. “Tomorrow’s announcement with GE Aviation is among a series of stories that we’re excited to be a part of.”
The governor’s office also announced Tuesday that Pence would be traveling to Germany on a jobs mission next month. He made a similar trip to Japan last year.
“I believe it’s absolutely essential that we promote policies that encourage new investment, and expand opportunities for all of our citizens,” said Pence.
It was already a busy week for the governor – who must decide by Thursday whether to sign or veto legislation sent to his desk by the General Assembly this year, including the mass transit bill. Pence said he was meeting Tuesday with local leaders to discuss the issue, and would make a decision within the next 24 hours.
“We’re listening to all sides,” said Pence. “I have an open mind about the issue and understand the importance of mass transit to economic development, but we really want to take some time and study the way this has been structured. I want to make sure taxpayers are being protected.”
The governor also signed into law an act which creates a new adoption tax credit- $1,000 per adopted child.
He also signed a bill that requires the state to examine its recycling policies, with the goal of eventually recycling 50 percent of the state’s municipal waste.
“As we envision the future for Indiana, ensuring the well-being of our Hoosier families is of the utmost importance,” said Governor Pence. “From the creation of Indiana’s first adoption tax credit to acting as responsible stewards of our natural resources, the bills I sign today will enhance the quality of life for Hoosier families today and tomorrow.”