SB259 • 2026

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

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Senator Scott Baldwin
Last action: 2026-03-03
Official status: Enrolled Senate Bill (S)
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how this change will affect tax collection processes or what happens when nonresidents do have income.

Indiana Tax Law Changes for Partnership Returns

This law removes penalties for pass-through entities if they don't include nonresident partners, shareholders, or beneficiaries with no distributive share income in their composite tax returns.

What This Bill Does

Removes penalties for pass-through entities that do not list nonresident partners, shareholders, or beneficiaries with no distributive share income on composite tax returns.

Who It Names or Affects

Pass-through entities like partnerships and LLCs in Indiana
Nonresident partners, shareholders, or beneficiaries with no distributive share income

Terms To Know

pass-through entity: A type of business where profits are passed through to the owners who pay taxes on their personal returns.
composite return: A single tax form that includes information about multiple people or entities.

Limits and Unknowns

The law does not specify what happens if a nonresident partner, shareholder, or beneficiary has income.
It is unclear how this change will affect the overall tax collection process for Indiana.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SB0259.01.INTR.AMS03

Committee Introduced Senate Bill (S) • Senator Scott Baldwin

Filed

Plain English: The amendment changes the rules for partnership composite tax returns in Indiana.

Adds a new section to the Indiana Code that requires partnerships to file composite income tax returns if they meet certain criteria.

The exact criteria and details of what partnerships must do under this amendment are not provided, making it unclear how many partnerships will be affected.
It is unclear from the text whether existing rules for partnership tax filings will be replaced or supplemented by these new requirements.

Bill History

2026-03-03 Senate
Signed by the Governor
2026-03-03 Senate
Public Law 48
2026-02-26 Senate
Signed by the President of the Senate
2026-02-25 House
Signed by the Speaker
2026-02-24 House
Returned to the Senate without amendments
2026-02-24 Senate
Signed by the President Pro Tempore
2026-02-23 House
Third reading: passed; Roll Call 311: yeas 93, nays 0
2026-02-19 House
Second reading: ordered engrossed
2026-02-17 House
Committee report: do pass, adopted
2026-01-28 House
First reading: referred to Committee on Ways and Means
2026-01-27 Senate
Referred to the House
2026-01-26 Senate
Third reading: passed; Roll Call 83: yeas 44, nays 0
2026-01-26 Senate
House sponsor: Representative Snow
2026-01-26 Senate
Senator Holdman added as second author
2026-01-22 Senate
Second reading: ordered engrossed
2026-01-20 Senate
Committee report: amend do pass, adopted
2026-01-15 Senate
Senator Randolph added as coauthor
2026-01-08 Senate
Authored by Senator Baldwin
2026-01-08 Senate
First reading: referred to Committee on Tax and Fiscal Policy

Official Summary Text

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

Current Bill Text

Read the full stored bill text

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

Partnership composite returns.

Removes penalty provisions that apply if a pass through entity fails to include in a composite return nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive share income of greater than $0. Makes conforming changes.