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In a move to boost economic growth and support small businesses in the state, Indiana has announced new tax breaks for small businesses starting in 2026. The new tax breaks, a part of the state's ongoing efforts to promote entrepreneurship and job creation, aim to provide much-needed relief to small businesses struggling in the wake of the COVID-19 pandemic.Under the new tax breaks, small businesses with annual gross receipts of $500,000 or less will be eligible for a 5% tax credit on their state income tax. This incentive is designed to help small businesses reinvest in their operations, create new job opportunities, and stimulate economic growth in local communities.Additionally, the state will be implementing a new tax exemption for small businesses on their first $50,000 in sales tax. This move is expected to provide immediate relief to small businesses facing financial difficulties due to the impact of the pandemic and help them recover and rebuild in the post-pandemic economy.Governor Eric Holcomb praised the new tax breaks as a crucial step in supporting Indiana's small business community and driving economic recovery. "Small businesses are the backbone of our economy, and we must do everything we can to support them during this challenging time," said Governor Holcomb. "These tax breaks will provide much-needed relief to small businesses and help them thrive and grow in Indiana."The Indiana Department of Revenue will be working closely with small businesses to ensure they are aware of and able to take advantage of these new tax breaks. Eligible businesses will be able to claim the tax credits and exemptions when filing their state income tax returns for the 2026 tax year.Overall, the new tax breaks for small businesses in Indiana are expected to create a more favorable business climate, stimulate economic growth, and help small businesses recover from the challenges they have faced in recent years. It is hoped that these measures will not only benefit small businesses but also contribute to the overall economic wellbeing of the state.