Indiana Senate advances tax cut on overtime and tipsRep. Jeff Thompson, left, chats with Rep. Greg Porter during the State of the State speech on Jan. 14, 2026. (Photo by Niki Kelly/Indiana Capital Chronicle)(INDIANA CAPITAL CHRONICLE) — A one-year state income tax break on overtime and tips for Hoosier workers has cleared the Indiana Senate as lawmakers pick and choose among the federal tax cuts that President Donald Trump pushed through Congress last summer. The 94-0 House vote on Senate Bill 212 made it the first bill to clear the Legislature this session and be sent to Gov. Sen. Travis Holdman, who chairs the Senate Tax and Fiscal Policy Committee, said the revenue drop would be covered by the growing state surplus. He argued that there was no difference between “an appropriation and a tax expenditure, they take from the state treasury and equal the same.”It remains unclear whether House Republicans will support the tax and overtime tax cut.