INDIANAPOLIS -- Sen. Evan Bayh was in Indianapolis Thursday to promote his new bill that he said would dramatically increase property tax relief.

Bayh's proposal would lift caps on how much homeowners can deduct and extend a current provision that allows anyone who filed a standard income tax form to claim property tax deductions, the same as those who itemized, 6News' Julie Pursley reported.

The "Homeowner Tax Fairness Act of 2009" bill would be more equitable to all homeowners, Bayh said.

"People need to plan from year to year. They shouldn't wonder whether they're going to get tax relief one year then have it disappear the next," Bayh said.

John Davis faces an uncertain future in his home on Indianapolis' southeast side. His job is being eliminated in a few weeks because of the economy, and he's worried about paying a mortgage and property taxes.

Davis benefited from a federal provision in the last two years that allowed anyone who filed a standard income tax form to claim property tax deductions.

With that provision about to expire, Bayh said he wants lawmakers to make it permanent.

"This would be a big help, especially next year, depending if I can find a job or not," Davis said.

The current provision caps the amount those who don't itemize can deduct at $500, but Bayh wants that lifted.

"I want our seniors and our middle class working people to be able to know that every year, they'll be able to deduct their property taxes and that they will have that relief they can plan into the family budget," Bayh said.

Here's a breakdown of what the proposal would provide:

A family that does not itemize that makes $75,000 and has a $3,000 property tax bill would get a $750 tax cut.

A senior citizen who doesn't itemize, lives on a fixed income of $35,000 and pays $1,500 in property taxes would see a $225 tax cut.

Bayh said he believes 20 million Americans, including 500,000 Hoosiers would benefit from his plan.