In a move aimed at bolstering the state's economy and supporting small businesses, the Indiana Legislature has passed new business legislation that will have sweeping impacts on the state's commercial landscape. The bill, which was signed into law by Governor Sarah Thompson on June 7, 2026, includes provisions that will streamline regulatory processes, provide tax incentives for entrepreneurs, and promote innovation in key industries.One of the key components of the new legislation is the establishment of a Small Business Innovation Research (SBIR) program, which will provide funding and support for small businesses engaged in research and development activities. This initiative is aimed at encouraging entrepreneurship and fostering innovation in sectors such as technology, healthcare, and manufacturing.Additionally, the new law includes provisions to simplify the process for starting and operating a business in Indiana. Under the legislation, small businesses will have access to a streamlined permitting and licensing system, reducing bureaucratic hurdles and allowing entrepreneurs to focus on growing their enterprises. The law also includes measures to provide tax relief for small businesses, including deductions for start-up costs and incentives for hiring and training employees.Governor Thompson lauded the passage of the legislation as a crucial step towards fostering economic growth in Indiana. "This new law will help to level the playing field for small businesses and promote a business-friendly environment in our state," she said in a statement. "By reducing barriers to entry, providing support for innovation, and offering tax incentives, we are sending a clear message that Indiana is open for business."Business leaders and industry stakeholders have also welcomed the new legislation, citing its potential to spur investment and create jobs in the state. "This law will help to attract new businesses to Indiana and support the growth of our homegrown enterprises," said John Smith, president of the Indiana Chamber of Commerce. "By cutting red tape and providing financial incentives, we are laying the groundwork for a thriving business community that will benefit all Hoosiers."The new business legislation is set to go into effect on January 1, 2027, with state agencies tasked with implementing the various provisions. Lawmakers have expressed confidence that the new law will have a positive impact on Indiana's economy, paving the way for increased prosperity and opportunity for businesses of all sizes.