On the eve of a final vote, Republican leaders from the Indiana House and Senate who are driving a long-term road and bridge funding bill expressed optimism about the legislation. HB 1002, which ultimately seeks to pump $1.2 billion additional dollars per year into infrastructure work throughout the state, must clear both chambers on Friday before heading to Governor Eric Holcomb for final approval. The plan would be funded through a combination of a 10 cent-per-gallon increase on gasoline, additional special fees and surcharges, and shifting 4.5 cents of the existing state sales tax on gas from the Indiana General Fund to the State Highway Fund.

Roads and Transportation Chair Ed Soliday (R-4) says the plan will cover increased funding for a full 20 years.

House Speaker Brian Bosma (R-88) says "this comprehensive road funding plan marks the strongest infrastructure investment in state history. We met our long-term goal of creating a comprehensive, responsible and sustainable plan that funds our roads for the next generation. Hoosiers recognize the need to maintain and improve our infrastructure, and this conservative approach directs all fees paid at the pump directly to roads. This plan also ensures those who utilize our roads are paying for them. House and Senate lawmakers ultimately struck the right balance between funding Indiana’s greatest asset while protecting budget stability."

Senate President Pro Tem David Long (R-16) says "this legislation delivers a historic long-term investment in Indiana’s transportation infrastructure. Investing in our roads is crucial to public safety, economic development and quality of life across the state. This is a responsible, comprehensive funding plan and I look forward to seeing the positive benefits for our state in the years ahead."

Provisions in the bill include:

  • Up to $1.2 billion for state and local roads and bridges beginning in 2024

Funding sources include:

  • 10 cent per gallon increase on gasoline user fees
  • special fuel and motor carrier surcharge taxes indexed each year for seven years (capped at a 1 cent per year increase)
  • shifting the 4.5 cent gas sales tax to the State Highway Fund over the course of five years starting in 2020
  • a new $15 annual fee on all vehicles
  • a $150 annual fee on electric vehicles
  • a $50 fee for hybrids registered in Indiana
  • study of potentially opening the door for the state to approve additional tolling