Indiana legislation · 2026 Regular Session
Indiana SB259: Partnership composite returns.
Status: Signed into law, March 3, 2026
Removes penalty provisions that apply if a pass through entity fails to include in a composite return nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive share income of greater than $0. Makes conforming changes.
What the bill says
An act to amend the Indiana Code concerning taxation.
From the enrolled text:
AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 6-3-2.1-2, AS AMENDED BY P.L.194-2023, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The following definitions apply throughout this chapter: (1) "Electing entity" means a pass through entity described in IC 6-3-1-35 that is subject to Subchapter K or Subchapter S of the Internal Revenue Code and makes the election under this chapter. (2) "Entity owner" means the direct or indirect owners of an electing entity that are ultimately taxable on the entity's income under Subchapter K or Subchapter S of the Internal Revenue Code, except an owner described in subdivision (4)(A) through (4)(C). (3) "Nonresident" (B) a nonresident shareholder as defined by IC 6-3-4-13(n); (C) a nonresident beneficiary as defined by IC 6-3-4-15(i); IC 6-3-4-15(j); or (D) in the case of a shareholder of a corporation described in IC 6-3-2-2.8(2), a corporation described in Section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under Section 501(a) of the Internal Revenue Code and that is not domiciled in Indiana; SEA 259 whichever is applicable. (4) "Owner" means a direct or indirect owner of an electing entity and includes a beneficiary of an estate or trust. However an owner shall not include: (A) an entity described in IC 6-3-2-2.8(3) that is …
Sponsors
- Scott Baldwin (R, SD-020) · primary sponsor
- Travis Holdman (R, SD-019)
- Lonnie Randolph (D, SD-002)
Latest actions
- : Signed by the Governor
- : Public Law 48
- : Signed by the President of the Senate
- : Signed by the Speaker
- : Signed by the President Pro Tempore
- : Returned to the Senate without amendments
- : Third reading: passed; Roll Call 311: yeas 93, nays 0
- : Second reading: ordered engrossed
- : Committee report: do pass, adopted
- : First reading: referred to Committee on Ways and Means
Votes
- SB0259.03.COMH (February 23, 2026): 93 yea, 0 nay, passed
- SB0259.02.COMS (January 26, 2026): 44 yea, 0 nay, passed
Subjects: BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Generally, TAXES; Estate and Inheritance Taxes
Common questions
- What is SB259?
- SB259 is a bill in the Indiana Legislature (2026 Regular Session): Partnership composite returns.
- What does SB259 do?
- In its own words: An act to amend the Indiana Code concerning taxation.
- What is the status of SB259?
- Signed into law as of March 3, 2026. Latest action: Signed by the Governor (March 3, 2026).
- Who sponsored SB259?
- Scott Baldwin (R, SD-020), with 2 co-sponsors.
- Where is the official record for SB259?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/senate/259
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.