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HB1340 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Energy Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Ryan Dvorak
Last action
2026-01-06
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the financial impact of the bill or its applicability to non-residents.

Sales Tax Exemption for Utility Services

This bill removes sales tax on certain utility services like electricity, natural gas, water, and steam for both commercial and residential use.

What This Bill Does

  • Provides a sales tax exemption for the sale or furnishing of electrical energy by a power subsidiary or public utility to individuals for commercial or domestic consumption.
  • Exempts natural or artificial gas from sales tax when sold or furnished by a power subsidiary or public utility for commercial or domestic use.
  • Eliminates sales tax on water provided by a power subsidiary or public utility for both commercial and residential customers.
  • Makes steam and steam heating services exempt from sales tax when sold or furnished by a power subsidiary or public utility to individuals for commercial or domestic consumption.

Who It Names or Affects

  • People who use electricity at home or work.
  • Businesses that consume natural gas, water, steam, or steam heating service.
  • Residents using utility services like water and natural gas in their homes.

Terms To Know

Public Utility
A company that provides essential services like electricity, water, and gas to the public.
Sales Tax Exemption
An exception from paying sales tax on certain goods or services.

Limits and Unknowns

  • The bill does not specify how much money will be saved by consumers.
  • It is unclear if this change affects only Indiana residents or includes businesses and visitors as well.

Bill History

  1. 2026-01-06 House

    Authored by Representative Dvorak

  2. 2026-01-06 House

    First reading: referred to Committee on Ways and Means

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Sales tax exemption for utility service.

Current Bill Text

Read the full stored bill text
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Sales tax exemption for utility service.

Provides a sales tax exemption for the sale or furnishing of the following services or commodities by a power subsidiary or a person engaged as a public utility to a person for commercial or domestic consumption: (1) Electrical energy. (2) Natural or artificial gas. (3) Water. (4) Steam. (5) Steam heating service. Makes conforming amendments.