Statehouse Spotlight: Key Bills That Could Reshape Johnson County’s Economy

By Aspire Economic Development + Chamber Alliance | | 3.25.25

Aspire Economic Development Chamber Alliance Johnson County Indiana

Aspire Johnson County continues to monitor key legislative developments at the Indiana Statehouse that could significantly impact our local business community and economic growth. As we navigate the 2025 session, we are focused on advocating for policies that attract talent, ensure equitable road funding, and improve access to affordable childcare. Several important bills aligned with our priorities are currently under consideration present both challenges and opportunities for our community.

This update outlines the latest legislative activity and explains why these issues matter to our business community and Johnson County’s future prosperity.

State Budget and Tax Policies – Ensuring Business Competitiveness

The state budget (HB 1001) remains the centerpiece of this session, with profound implications for Indiana’s business climate, talent attraction, and infrastructure investment. This week, the Senate Appropriations Committee held public testimony on HB 1001, which sets the framework for Indiana’s biennial budget.

Why It Matters:

Aspire Johnson County has consistently advocated for tax policies that attract high-growth, high-wage industries such as life sciences, technology, and defense. Indiana's business tax climate is already strong, but talent availability is becoming as critical as tax incentives in business location decisions. If Indiana’s budget fails to adequately invest in workforce development, education, and infrastructure, it could undermine the state’s competitive edge.

Additionally, any reductions in local tax revenue stemming from state-level tax cuts could jeopardize critical quality-of-place investments. Communities rely on these funds to support schools, public safety, and infrastructure—key factors for attracting businesses and workforce talent. Aspire supports balanced tax policies that strengthen Indiana's competitiveness without shifting the burden to local governments or businesses.

Road Funding – Fighting for Fairness for Growing Communities

HB 1461, which addresses road funding, is a top legislative priority for Aspire Johnson County. The current funding formula is based on road mileage rather than road capacity, which means that a four-lane road receives the same funding as a two-lane road. This disproportionately impacts fast-growing communities like Johnson County.

Why It Matters:

Johnson County’s rapid residential and business growth has increased traffic and wear on local infrastructure. Without an updated road funding formula that accounts for road capacity, communities like ours will struggle to keep up with demand. This limits our ability to invest in critical infrastructure such as multimodal corridors, safety enhancements, and road expansions – all of which are essential for supporting business operations and workforce mobility.

Testimony from local officials has underscored the need for more flexibility and fairness in road funding. While some resistance remains over the potential imposition of a wheel tax, Aspire continues to support revisions that better reflect the demands on high-traffic and multi-lane roads. Equitable road funding is not just a transportation issue – it’s an economic development imperative.

Childcare – Supporting Working Families and Workforce Retention

SB 463, which seeks to improve childcare quality and accessibility, aligns closely with Aspire’s focus on workforce development and talent attraction. The bill includes measures to update provider standards, expand childcare options, and create a pilot program for microcenter childcare facilities.

Why It Matters:

Access to affordable, quality childcare remains a significant barrier to workforce participation. Many working parents are forced to limit their employment options or leave the workforce altogether due to insufficient childcare options. This affects not only household income but also local labor availability and business productivity.

Aspire strongly supports SB 463’s focus on increasing the supply of childcare providers and improving staff-to-child ratios. However, the removal of tax credits and local matching grant provisions by the Senate Appropriations Committee is concerning. Employers have voiced support for incentives that would encourage businesses to invest in childcare solutions for their employees. Aspire will continue working with coalition partners to push for this bill, as it is critical to expanding provider capacity and improving workforce participation.

Foreign Adversaries – Protecting National Security Without Sacrificing Jobs

HB 1032 addresses foreign adversaries' influence on Indiana’s economy and infrastructure. While Aspire supports the spirit of national security protections, the bill's language could lead to unintended economic consequences, including the loss of nearly 500 jobs in Johnson County.

Why It Matters:

Under current law, companies based in countries designated as foreign adversaries are restricted from owning or leasing real estate within 10 miles of a military installation. HB 1032 would expand this restriction to a complete prohibition on operations in Indiana by these companies.

Johnson County company closures or relocations would result in hundreds of lost jobs and a significant hit to the local economy, including local tax revenue. Aspire is advocating for an amendment that would allow exceptions for companies cleared as safe by the Committee on Foreign Investment in the United States (CFIUS), a joint office under the Department of Treasury and Homeland Security.

Indiana can protect critical infrastructure and national security without penalizing businesses that have already met federal security standards. Aspire is committed to working with lawmakers to find a solution that safeguards both security and economic stability.

Entrepreneurship – Strengthening Indiana’s Business Ecosystem

SB 516 establishes an Office of Entrepreneurship and Innovation under the Indiana Economic Development Corporation (IEDC) to support early-stage and small businesses. This office is tasked with developing and administering programs to support the growth of small businesses, entrepreneurship, and innovation across Indiana. The bill also increases transparency when the IEDC acquires large tracts of land and formalizes the role of the IEDC President.

Why It Matters:

Entrepreneurship is the foundation of a thriving economy. Small businesses and startups create jobs, foster innovation, and diversify local economies. By providing centralized resources and improving accountability in economic development projects, SB 516 could strengthen Indiana’s business ecosystem and encourage long-term growth.

Aspire supports the bill’s focus on transparency and accountability, which aligns with our commitment to fostering a business-friendly environment. Ensuring that new businesses have access to resources, capital, and state-level support will help Indiana remain competitive in attracting and retaining talent and investment.

Looking Ahead

As the session progresses, Aspire Johnson County will remain actively engaged in advocating for pro-business policies and working to mitigate potential negative impacts of certain proposals. With the April 15th revenue forecast and committee deadlines fast approaching, the coming weeks will be pivotal.

We encourage our members to stay informed and engaged. Your voice matters and Aspire will continue to represent the interests of our business community at the Statehouse. Please reach out to us with any questions or to learn more about how you can support our advocacy efforts.