DeLaney pleased House Republicans support his proposed unemployment tax break

INDIANAPOLIS – State Rep. Ed DeLaney (D-Indianapolis) was pleased today to see an amendment adapted to Senate Bill 383 containing his proposal to allow Hoosiers to claim a tax deduction on unemployment benefits beyond the $10,200 dollars exempted by the American Rescue Plan Act (ARPA).

ARPA mandates that, while unemployment benefits are typically counted as income for tax purposes, the first $10,200 received last year will not be taxed federally. The new amendment will provide for that same amount to be excluded from taxable income on the state level.

This tax break was first proposed by DeLaney in the House Ways and Means Committee, before being successfully introduced by a Republican representative today on the House floor.

“Coming out of a year of struggle for so many Hoosiers, the last thing we should be asking is to tax the funds that got them through 2020,” DeLaney said. “We need to invigorate our economy, and that means leaving more money in the pockets of Hoosiers who were hit hardest by the pandemic.”

Indiana's unemployment rate spiked to 16.9% in April of 2020. It has since fallen back to 4% by February 2021, but the past 12 months proved to be a large economic setback for many Hoosiers and their families. ARPA's unemployment exemption acknowledges that reality, and DeLaney is pleased the Indiana General Assembly has chosen to acknowledge it as well.

“On the House floor, we always hear how great tax breaks are, but those breaks always seem to go to corporations,” DeLaney added. “This is a tax break for working families in a moment when it is greatly needed. My colleagues across the aisle found this relief so important that they decided to introduce it themselves. At the end of the day, this is a victory for all Hoosiers.”