SEA 1 creates a new credit for qualifying homestead property owners, reducing local tax collections

What happened

Stifel consultant Chad Blacklock told the oversight board that, under Senate Enrolled Act 1, qualifying homeowners whose homes fall within the constitutional one-percent homestead category will receive a new credit on their 2026 property-tax bill: the lesser of 10% of their final tax bill or $300. Credit applies to qualifying one-percent homestead properties, 1:03:03 New credit: the lesser of 10% or $300, 1:03:09 He said the law also adds a new $150 credit to the existing over-65 benefit for qualifying homeowners. New additional $150 credit for qualifying homeowners over 65, 1:05:31 Using a $200,000 home already capped at a $2,000 tax bill, Blacklock said the new credit would cut that bill by another $200 — money that Vigo County Schools and every other local government taxing that property will not collect. $200,000-home example, 1:03:39 Revenue loss to local governments including schools, 1:04:14

The outcome

No vote was taken on the presentation; the board moved to public comment and adjournment after the briefing. Board moves to adjournment after the presentation, 1:16:41

Sources

• Credit applies to qualifying one-percent homestead properties, 1:03:03
• New homestead credit: the lesser of 10% or $300, 1:03:09
• New additional $150 credit for qualifying homeowners over 65, 1:05:31
• Worked example on a $200,000 home, 1:03:39
• Revenue loss extends to schools and other local governments, 1:04:14

Also known as: SEA 1 homestead credit · Senate Enrolled Act 1 · new property tax credit 2026 · homeowner tax credit · why is my property tax bill different