Key facts
- Indiana Governor Mike Braun has extended the state's gas and excise tax suspension for another 120 days.
- The extension is based on a new energy emergency declaration citing disruptions to global oil shipping lanes.
- The previous tax holiday, initiated in April and expanded in May, was set to expire on August 7, 2026.
- The state has spent approximately $140 million per month on the tax suspension.
- The total cost of the tax holiday so far is about half a billion dollars.
- The state's strong budget surplus of approximately $2 billion annually made the relief possible.
Indiana Governor Mike Braun has again extended the state's suspension of gas and excise taxes, citing a new energy emergency. The holiday, which was set to expire on August 7, 2026, will now continue for another 120 days.
Braun first initiated the gas tax holiday in April and added the excise tax in May, collectively shaving about sixty cents off the price per gallon. The previous energy emergency was declared due to the war with Iran. The current extension is prompted by disruptions to global oil shipping lanes, attributed to the ongoing conflict in Ukraine and wildfires in Canada.
Attorney General Todd Rokita affirmed the governor's authority to declare separate emergencies based on changed conditions, supporting the temporary relief for Hoosiers. However, some lawmakers have expressed concerns about the financial impact on local governments, which rely on tax revenue for infrastructure projects. Governor Braun stated that local governments would be reimbursed, with initial funds already approved.
The state has spent approximately $140 million each month the taxes have been suspended, totaling about half a billion dollars. Braun defended the cost, emphasizing the direct benefit to average Indiana residents and stating that the state's strong budget surplus of around $2 billion annually allows for this relief without impacting other budget items like childcare.
Legislators largely supported the continued relief, with Senator Ryan Mishler and House Speaker Todd Huston acknowledging the financial hardship on families. Representative Gregory Porter, however, suggested that the primary cause of spiking gas prices is President Trump's war in Iran and expressed concern about the long-term impact on funding for roads, schools, and healthcare.