STATEHOUSE – Indiana lawmakers recently voted in support of passing the largest tax cut in the state's history, sending the $1 billion tax-relief package to the governor where it could soon become law.

Known as the House Enrolled Act 1002, this legislation will drop the state's individual income tax from 3.23% to 2.9% over seven years. Once fully phased in, Indiana would have one of the lowest income tax rates in the nation.

The bill will also help lower utility bills for Hoosiers and businesses by eliminating the 1.46% Utility Receipts Tax currently paid on electricity, natural gas, water, steam, sewage and telephone bills.

The move comes as the state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. As revenues continue to outpace expectations, Hoosier taxpayers can expect a $125 refund this spring as part of a combined refund of over $545 million.

Lawmakers Hoo the new law will ensure the maximum number of Hoosiers qualify for the refund.