---
type: "Bill"
title: "Partnership composite returns."
description: "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."
jurisdiction: "us/states/in"
legislature: "Indiana General Assembly"
session: "2026"
identifier: "SB 259"
citation: "Indiana SB 259 (2026)"
classification: ["bill"]
subjects: ["BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Generally", "TAXES; Estate and Inheritance Taxes"]
status: "enacted"
primary_sponsors: ["Craig Snow", "Scott Baldwin", "Travis Holdman"]
version_count: 4
action_count: 19
vote_count: 2
first_action: "2026-01-08"
last_action: "2026-03-03"
source: "openstates"
source_identifier: "ocd-bill/142074e8-90e1-4f13-bfcd-ad27f4f5a9ff"
source_url: "https://api.iga.in.gov/2026/bills/sb0259"
source_hash: "b8ec5d3c97349a92b22b01fee2b94c6461383727458e9a11bf4157773249c6f9"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-in"]
---

# Indiana SB 259 (2026) — Partnership composite returns.

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.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Enrolled Senate Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0259/SB0259.04.ENRH.pdf)
2. **Introduced Senate Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0259/SB0259.01.INTR.pdf)
3. **Senate Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0259/SB0259.02.COMS.pdf)
4. **Senate Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0259/SB0259.03.COMH.pdf)

## Votes

- SB 259 - Baldwin - 3rd Reading — **44–0** (pass) · upper
- SB 259 - Snow - 3rd Reading — **93–0** (pass) · lower

## Sponsors

- Craig Snow — primary (person)
- Scott Baldwin — primary (person)
- Travis Holdman — primary (person)
- Lonnie Randolph — coauthor (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-01-08** Authored by Senator Baldwin
- **2026-01-08** First reading: referred to Committee on Tax and Fiscal Policy `reading-1, referral-committee`
- **2026-01-15** Senator Randolph added as coauthor
- **2026-01-20** Committee report: amend do pass, adopted `committee-passage`
- **2026-01-22** Second reading: ordered engrossed `reading-2`
- **2026-01-26** House sponsor: Representative Snow
- **2026-01-26** Third reading: passed; Roll Call 83: yeas 44, nays 0 `passage, reading-3, reading-3`
- **2026-01-26** Senator Holdman added as second author
- **2026-01-27** Referred to the House `referral`
- **2026-01-28** First reading: referred to Committee on Ways and Means `reading-1, referral-committee`
- **2026-02-17** Committee report: do pass, adopted `committee-passage`
- **2026-02-19** Second reading: ordered engrossed `reading-2`
- **2026-02-23** Third reading: passed; Roll Call 311: yeas 93, nays 0 `passage, reading-3, reading-3`
- **2026-02-24** Returned to the Senate without amendments `receipt`
- **2026-02-24** Signed by the President Pro Tempore `passage`
- **2026-02-25** Signed by the Speaker `passage`
- **2026-02-26** Signed by the President of the Senate `passage`
- **2026-03-03** Public Law 48 `became-law`
- **2026-03-03** Signed by the Governor `executive-signature`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/142074e8-90e1-4f13-bfcd-ad27f4f5a9ff`. Confidence: reported (aggregated from official Indiana legislature records).