A Senate finance committee has approved a one-year state income tax break on overtime pay and tips for Hoosier workers.
The amendment, added to Senate Bill 243, would apply to 2026 wages and cost the state an estimated $251 million, to be covered by the current budget surplus.
Lawmakers say they will decide in 2027 whether to make the tax break permanent.
The bill passed the committee 11–1 and now moves to the full Senate for consideration.
