Introduced Version
SENATE BILL No. 361
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-28; IC 5-33-7; IC 6-3; IC 6-3.1;
IC 35-52-6-20.5; IC 36-7-32.5.
Synopsis: Economic development. Makes certain amendments to the
hoosier business investment tax credit, the economic development for
a growing economy tax credit, the headquarters relocation tax credit,
and the redevelopment tax credit. Establishes an innovation
development district (district) program. Allows the Indiana economic
development corporation (IEDC) to designate an area as a district
under certain procedures and enter into an agreement for the terms and
conditions of the district. Establishes the innovation development
district fund (fund) administered by the IEDC. Provides for the transfer
of incremental tax revenue in a district to the fund. Provides that the
IEDC may make grants, loans, or investments from the fund for
specified purposes. Provides an exemption from wage withholding
requirements for an employer within a district that meets certain
requirements and procedures. Provides that the IEDC may transfer
funds between its accounts without review or approval by the state
board of finance, budget agency, or budget committee. Limits the total
amount of credits that the IEDC may award for a calendar year for all
taxpayers for all applicable tax credits to $600,000,000. Requires the
Indiana destination development corporation to design and implement
a new remote worker grant program to provide grants to new remote
workers for certain qualifying expenses. Limits the total amount of
grants that may be awarded under the new remote worker grant
program in a fiscal year. Makes conforming changes.
Effective: January 1, 2022 (retroactive); July 1, 2022; January 1, 2023.
Mishler
January 11, 2022, read first time and referred to Committee on Appropriations.
2022 IN 361—LS 7135/DI 120 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 361
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-28-2-8 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 8. "Applicable tax
4 credit" means any of the following:
5 (1) IC 6-3.1-13.
6 (2) IC 6-3.1-19.
7 (3) IC 6-3.1-26.
8 (4) IC 6-3.1-30.
9 (5) IC 6-3.1-34.
10 SECTION 2. IC 5-28-5-17 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
12 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 17. The corporation
13 may transfer funds between its accounts without review or
14 approval by the state board of finance, budget agency, or budget
15 committee.
16 SECTION 3. IC 5-28-6-9 IS ADDED TO THE INDIANA CODE
17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2022 IN 361—LS 7135/DI 120 2
1 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 9. (a) The total amount
2 of credits that the corporation may award for a calendar year for
3 all taxpayers for all applicable tax credits is six hundred million
4 dollars ($600,000,000).
5 (b) If the corporation has not or does not expect to exhaust the
6 limit on the award of applicable credits, the corporation may
7 award some or all of the remaining credits to taxpayers that make
8 contributions to the Indiana promotion fund established by
9 IC 5-28-5-12 in accordance with the policy established by the
10 corporation under subsection (d).
11 (c) Credits provided to taxpayers providing contributions to the
12 Indiana promotion fund may not be carried back or refunded.
13 (d) The corporation shall establish a policy for the award and
14 distribution of credits that must be approved by the board.
15 SECTION 4. IC 5-33-7 IS ADDED TO THE INDIANA CODE AS
16 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2022]:
18 Chapter 7. Remote Worker Grant Program
19 Sec. 1. The following definitions apply throughout this chapter:
20 (1) "New remote worker" means an individual who:
21 (A) is a full-time employee of a business with its domicile
22 or primary place of business outside Indiana;
23 (B) becomes a full-time resident of Indiana on or after
24 January 1, 2022; and
25 (C) performs the majority of their employment duties
26 remotely while located in residence in Indiana.
27 (2) "Program" refers to the new remote worker grant
28 program as set forth in section 2 of this chapter.
29 (3) "Qualifying remote worker expenses" means actual costs
30 a new remote worker incurs for one (1) or more of the
31 following that are necessary to perform their employment
32 duties:
33 (A) Relocation to Indiana.
34 (B) Computer hardware or software.
35 (C) Access to broadband internet.
36 (D) Membership in a co-working space or similar location.
37 Sec. 2. (a) The corporation shall design and implement a new
38 remote worker grant program, which shall include a process to
39 certify new remote workers and qualifying expenses for a grant
40 under this section.
41 (b) A new remote worker may be eligible for a grant under the
42 program for qualifying remote worker expense in an amount that
2022 IN 361—LS 7135/DI 120 3
1 shall not exceed:
2 (1) five thousand dollars ($5,000) per year; and
3 (2) a total of fifteen thousand dollars ($15,000) per new
4 remote worker over the life of the program.
5 (c) A new remote worker is not eligible for a grant if their
6 employer receives a credit under IC 6-3.1-13-17.
7 Sec. 3. The corporation shall award grants under the program
8 on a first-come, first-served basis, subject to available funding, as
9 follows:
10 (1) Not more than one million dollars ($1,000,000) in fiscal
11 year 2022; and
12 (2) Not more than one million five hundred thousand dollars
13 ($1,500,000) in fiscal year 2023.
14 Sec. 4. (a) The corporation shall:
15 (1) adopt procedures for implementing the program;
16 (2) promote awareness for the program, including through
17 coordination with relevant trade groups and by integration
18 into the corporation's marketing efforts; and
19 (3) adopt measurable goals, performance measures, and an
20 audit strategy to assess the utilization and performance of the
21 program.
22 (b) On or before October 1, 2023, the corporation shall submit
23 a report to the general assembly, in an electronic format under
24 IC 5-14-6, concerning the implementation of the new remote
25 worker grant program under this section, including:
26 (1) a description of the procedures adopted pursuant to
27 subsection (a)(1);
28 (2) the promotion and marketing of the program pursuant to
29 subsection (a)(2);
30 (3) any additional recommendations for qualifying remote
31 worker expenses or qualifying workers that should be eligible
32 under the program; and
33 (4) any recommendations for the maximum amount of the
34 grant.
35 SECTION 5. IC 6-3-2-27 IS ADDED TO THE INDIANA CODE
36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
37 JANUARY 1, 2023]: Sec. 27. (a) If an employer is claiming an
38 exemption from the requirements of IC 6-3-4-8 as provided in
39 IC 6-3-4-8.6, a taxpayer is entitled to a deduction equal to the taxes
40 owed on the wages paid by the employer to the taxpayer.
41 (b) To claim the deduction, the taxpayer shall include a copy of
42 the employer's exemption certificate with the taxpayer's annual tax
2022 IN 361—LS 7135/DI 120 4
1 return.
2 SECTION 6. IC 6-3-4-8, AS AMENDED BY P.L.159-2021,
3 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JANUARY 1, 2023]: Sec. 8. (a) Except as provided in subsection
5 subsections (d) and (m), every employer making payments of wages
6 subject to tax under this article, regardless of the place where such
7 payment is made, who is required under the provisions of the Internal
8 Revenue Code to withhold, collect, and pay over income tax on wages
9 paid by such employer to such employee, shall, at the time of payment
10 of such wages, deduct and retain therefrom the amount prescribed in
11 withholding instructions issued by the department. The department
12 shall base its withholding instructions on the adjusted gross income tax
13 rate for persons, on the total local income tax rate that the taxpayer is
14 subject to under IC 6-3.6, and on the total amount of exclusions the
15 taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
16 However, the withholding instructions on the adjusted gross income of
17 a nonresident alien (as defined in Section 7701 of the Internal Revenue
18 Code) are to be based on applying not more than one (1) withholding
19 exclusion, regardless of the total number of exclusions that
20 IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
21 on the taxpayer's final return for the taxable year. Such employer
22 making payments of any wages:
23 (1) shall be liable to the state of Indiana for the payment of the tax
24 required to be deducted and withheld under this section and shall
25 not be liable to any individual for the amount deducted from the
26 individual's wages and paid over in compliance or intended
27 compliance with this section; and
28 (2) shall make return of and payment to the department monthly
29 of the amount of tax which under this article and IC 6-3.6 the
30 employer is required to withhold.
31 (b) An employer shall pay taxes withheld under subsection (a)
32 during a particular month to the department no later than thirty (30)
33 days after the end of that month. However, in place of monthly
34 reporting periods, the department may permit an employer to report and
35 pay the tax for a calendar year reporting period, if the average monthly
36 amount of all tax required to be withheld by the employer in the
37 previous calendar year does not exceed one thousand dollars ($1,000).
38 An employer using a reporting period (other than a monthly reporting
39 period) must file the employer's return and pay the tax for a reporting
40 period no later than the last day of the month immediately following
41 the close of the reporting period.
42 (c) For purposes of determining whether an employee is subject to
2022 IN 361—LS 7135/DI 120 5
1 taxation under IC 6-3.6, an employer is entitled to rely on the statement
2 of an employee as to the employee's county of residence as represented
3 by the statement of address in forms claiming exemptions for purposes
4 of withholding, regardless of when the employee supplied the forms.
5 Every employee shall notify the employee's employer within five (5)
6 days after any change in the employee's county of residence.
7 (d) A county that makes payments of wages subject to tax under this
8 article:
9 (1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
10 (2) for the performance of the duties of the precinct election
11 officer imposed by IC 3 that are performed on election day;
12 is not required, at the time of payment of the wages, to deduct and
13 retain from the wages the amount prescribed in withholding
14 instructions issued by the department.
15 (e) Every employer shall, at the time of each payment made by the
16 employer to the department, deliver to the department a return upon the
17 form prescribed by the department showing, with regard to wages paid
18 to the employer's employees:
19 (1) the amount of adjusted gross income tax deducted therefrom
20 in accordance with the provisions of this section;
21 (2) the amount of income tax, if any, imposed under IC 6-3.6 and
22 deducted therefrom in accordance with this section; and
23 (3) any other information the department may require.
24 Every employer making a declaration of withholding as provided in this
25 section shall furnish the employer's employees annually, but not later
26 than thirty (30) days after the end of the calendar year, a record of the
27 total amount of adjusted gross income tax and the amount of each
28 income tax, if any, imposed under IC 6-3.6, withheld from the
29 employees, on the forms prescribed by the department. In addition, the
30 employer shall file Form WH-3 annual withholding tax reports with the
31 department not later than thirty-one (31) days after the end of the
32 calendar year.
33 (f) All money deducted and withheld by an employer shall
34 immediately upon such deduction be the money of the state, and every
35 employer who deducts and retains any amount of money under the
36 provisions of this article shall hold the same in trust for the state of
37 Indiana and for payment thereof to the department in the manner and
38 at the times provided in this article. Any employer may be required to
39 post a surety bond in the sum the department determines to be
40 appropriate to protect the state with respect to money withheld pursuant
41 to this section.
42 (g) The provisions of IC 6-8.1 relating to additions to tax in case of
2022 IN 361—LS 7135/DI 120 6
1 delinquency and penalties shall apply to employers subject to the
2 provisions of this section, and for these purposes any amount deducted
3 or required to be deducted and remitted to the department under this
4 section shall be considered to be the tax of the employer, and with
5 respect to such amount the employer shall be considered the taxpayer.
6 In the case of a corporate or partnership employer, every officer,
7 employee, or member of such employer, who, as such officer,
8 employee, or member is under a duty to deduct and remit such taxes,
9 shall be personally liable for such taxes, penalties, and interest.
10 (h) Amounts deducted from wages of an employee during any
11 calendar year in accordance with the provisions of this section shall be
12 considered to be in part payment of the tax imposed on such employee
13 for the employee's taxable year which begins in such calendar year, and
14 a return made by the employer under subsection (b) shall be accepted
15 by the department as evidence in favor of the employee of the amount
16 so deducted from the employee's wages. Where the total amount so
17 deducted exceeds the amount of tax on the employee as computed
18 under this article and IC 6-3.6, the department shall, after examining
19 the return or returns filed by the employee in accordance with this
20 article and IC 6-3.6, refund the amount of the excess deduction.
21 However, under rules promulgated by the department, the excess or any
22 part thereof may be applied to any taxes or other claim due from the
23 taxpayer to the state of Indiana or any subdivision thereof. In the event
24 that the excess tax deducted is less than one dollar ($1), no refund shall
25 be made.
26 (i) This section shall in no way relieve any taxpayer from the
27 taxpayer's obligation of filing a return or returns at the time required
28 under this article and IC 6-3.6, and, should the amount withheld under
29 the provisions of this section be insufficient to pay the total tax of such
30 taxpayer, such unpaid tax shall be paid at the time prescribed by
31 section 5 of this chapter.
32 (j) Notwithstanding subsection (b), an employer of a domestic
33 service employee that enters into an agreement with the domestic
34 service employee to withhold federal income tax under Section 3402
35 of the Internal Revenue Code may withhold Indiana income tax on the
36 domestic service employee's wages on the employer's Indiana
37 individual income tax return in the same manner as allowed by Section
38 3510 of the Internal Revenue Code.
39 (k) To the extent allowed by Section 1137 of the Social Security
40 Act, an employer of a domestic service employee may report and remit
41 state unemployment insurance contributions on the employee's wages
42 on the employer's Indiana individual income tax return in the same
2022 IN 361—LS 7135/DI 120 7
1 manner as allowed by Section 3510 of the Internal Revenue Code.
2 (l) A person who knowingly fails to remit trust fund money as set
3 forth in this section commits a Level 6 felony.
4 (m) Subject to the limitations of this chapter, an employer
5 within an innovation development district designated under
6 IC 36-7-32.5 that:
7 (1) maintains a fixed place of business within the innovation
8 development district; and
9 (2) makes payments of wages subject to tax under this article
10 to a new employee (as defined in IC 6-3.1-13-6) for
11 performance of the duties of the new employee;
12 is not required, at the time of payment of the wages to the new
13 employee, to deduct and retain from the wages the amount
14 prescribed in withholding instructions issued by the department.
15 SECTION 7. IC 6-3-4-8.6 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
17 JANUARY 1, 2023]: Sec. 8.6. (a) Subject to the requirements of this
18 section and as provided in section 8(m) of this chapter, an
19 employer that maintains a fixed place of business within an
20 innovation development district established under IC 36-7-32.5 for
21 the payment of wages subject to tax under this article to new
22 employees (as defined in IC 6-3.1-13-6) is exempt from the
23 requirements of section 8 of this chapter for wages paid to new
24 employees employed within the innovation development district.
25 (b) An employer meeting the requirements of this section and
26 section 8(m) of this chapter may apply to the Indiana economic
27 development corporation and the department to receive an
28 exemption under this section. The application shall be on a form
29 prescribed by the department.
30 (c) The department, in consultation with the Indiana economic
31 development corporation, may grant an exemption to an employer
32 if the department determines the employer meets the requirements
33 of this section and section 8(m) of this chapter.
34 (d) If the department grants an employer an exemption, the
35 employer shall report annually on the wages paid to new employees
36 within the innovation development district on a form prescribed by
37 the department.
38 (e) An exemption granted under this chapter shall not last
39 longer than the latest of:
40 (1) December 31, 2027;
41 (2) six (6) years after the establishment of an innovation
42 development district in which the employer already has
2022 IN 361—LS 7135/DI 120 8
1 operations; or
2 (3) six (6) years after the employer establishes a fixed place of
3 business within an innovation development district.
4 (f) If an employer is exempt from the requirements of section 8
5 of this chapter, the employer shall annually provide a copy of its
6 exemption certificate to each new employee during the term of the
7 exemption.
8 (g) An employer who knowingly fails to annually provide a new
9 employee a copy of its exemption certificate during the term of the
10 exemption commits a Level 6 felony.
11 SECTION 8. IC 6-3-5-5 IS ADDED TO THE INDIANA CODE AS
12 A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1,
13 2022]: Sec. 5. (a) If the Indiana economic development corporation
14 established by IC 5-28 enters into an agreement with a taxpayer
15 for an economic development for a growing economy tax credit
16 under IC 6-3.1-13, and the taxpayer elects to forgo claiming the
17 credit against any state tax liability for that taxable year and
18 requests the department to remit to the taxpayer an amount equal
19 to the credit for the taxable year as set forth under
20 IC 6-3.1-13-20(b), the provisions of this section shall apply.
21 (b) Before making a payment to a taxpayer under this section,
22 the department shall request from the taxpayer:
23 (1) a copy of the taxpayer's agreement with the Indiana
24 economic development corporation;
25 (2) the credit awarded to the taxpayer for that taxable year;
26 and
27 (3) any other information required by the department.
28 (c) A payment by the department cannot exceed the actual
29 incremental income tax withholdings collected by the department
30 as a result of the employment of new employees subject to an
31 agreement entered into under IC 6-3.1-13.
32 (d) The amount needed to make a payment under this section is
33 appropriated from the state general fund.
34 SECTION 9. IC 6-3.1-13-17, AS AMENDED BY P.L.197-2005,
35 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2022]: Sec. 17. (a) If the applicant proposes a project that
37 will be located at a physical location in Indiana, in determining the
38 credit amount that should be awarded to an applicant under section 15
39 of this chapter that proposes a project to create jobs in Indiana, the
40 corporation may take into consideration the following factors:
41 (1) The economy of the county where the projected investment is
42 to occur.
2022 IN 361—LS 7135/DI 120 9
1 (2) The potential impact on the economy of Indiana.
2 (3) The incremental payroll attributable to the project.
3 (4) The capital investment attributable to the project.
4 (5) The amount the average wage paid by the applicant exceeds
5 the average wage paid:
6 (A) within the county in which the project will be located, in
7 the case of an application submitted before January 1, 2006; or
8 (B) in the case of an application submitted after December 31,
9 2005:
10 (i) to all employees working in the same NAICS industry
11 sector to which the applicant's business belongs in the
12 county in which the applicant's business is located, if there
13 is more than one (1) business in that NAICS industry sector
14 in the county in which the applicant's business is located;
15 (ii) to all employees working in the same NAICS industry
16 sector to which the applicant's business belongs in Indiana,
17 if the applicant's business is the only business in that NAICS
18 industry sector in the county in which the applicant's
19 business is located but there is more than one (1) business in
20 that NAICS industry sector in Indiana; or
21 (iii) to all employees working in the same county as the
22 county in which the applicant's business is located, if there
23 is no other business in Indiana in the same NAICS industry
24 sector to which the applicant's business belongs.
25 (6) The costs to Indiana and the affected political subdivisions
26 with respect to the project.
27 (7) The financial assistance and incentives that are otherwise
28 provided by Indiana and the affected political subdivisions.
29 (8) The extent to which the incremental income tax withholdings
30 attributable to the applicant's project are needed for the purposes
31 of an incremental tax financing fund or industrial development
32 fund under IC 36-7-13 or a certified technology park fund under
33 IC 36-7-32.
34 As appropriate, the corporation shall consider the factors in this section
35 subsection to determine the credit amount awarded to an applicant for
36 a project to retain existing jobs in Indiana under section 15.5 of this
37 chapter.
38 (b) Subject to the limitations of subsection (c), if an applicant
39 proposes a project that proposes to create new jobs in Indiana but
40 does not propose a physical location in Indiana, the corporation
41 may consider the following factors:
42 (1) The potential impact on the economy in Indiana.
2022 IN 361—LS 7135/DI 120 10
1 (2) The incremental payroll attributable to the project.
2 (3) The amount of average wage paid by the applicant that
3 exceeds the average wage paid to all employees working in the
4 same NAICS industry sector to which the applicant's business
5 belongs in Indiana.
6 (4) The cost to Indiana with respect to the project.
7 (5) The financial assistance and incentives that are otherwise
8 provided by Indiana.
9 (6) The extent of Indiana income tax that is paid by eligible
10 employees.
11 (c) An applicant proposing a project that meets the
12 requirements of subsection (b) must propose:
13 (1) to create at least fifty (50) new full-time jobs; and
14 (2) to pay an average hourly wage of at least one hundred fifty
15 percent (150%) of the state average wage;
16 in order to be eligible to receive a credit under this chapter.
17 SECTION 10. IC 6-3.1-13-18, AS AMENDED BY P.L.86-2018,
18 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2022]: Sec. 18. (a) The corporation shall determine the
20 amount and duration of a tax credit awarded under this chapter. The
21 duration of the credit may not exceed ten (10) twenty (20) taxable
22 years. The credit may be stated as a percentage of the incremental
23 income tax withholdings attributable to the applicant's project and may
24 include a fixed dollar limitation. In the case of a credit awarded for a
25 project to create new jobs in Indiana, the credit amount may not exceed
26 the incremental income tax withholdings. However, the credit amount
27 claimed for a taxable year may exceed the taxpayer's state tax liability
28 for the taxable year, in which case the excess may, at the discretion of
29 the corporation, be refunded to the taxpayer.
30 (b) For state fiscal year 2006 and each state fiscal year thereafter,
31 the aggregate amount of credits awarded under this chapter for projects
32 to retain existing jobs in Indiana may not exceed ten million dollars
33 ($10,000,000) per year.
34 (c) This subsection does not apply to a business that was enrolled
35 and participated in the E-Verify program (as defined in IC 22-5-1.7-3)
36 during the time the taxpayer conducted business in Indiana in the
37 taxable year. A credit under this chapter may not be computed on any
38 amount withheld from an individual or paid to an individual for
39 services provided in Indiana as an employee, if the individual was,
40 during the period of service, prohibited from being hired as an
41 employee under 8 U.S.C. 1324a.
42 SECTION 11. IC 6-3.1-13-20, AS AMENDED BY P.L.4-2005,
2022 IN 361—LS 7135/DI 120 11
1 SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2022]: Sec. 20. (a) Except as provided in subsection (b), a
3 taxpayer claiming a credit under this chapter must claim the credit on
4 the taxpayer's annual state tax return or returns in the manner
5 prescribed by the department of state revenue. The taxpayer shall
6 submit to the department of state revenue all information that the
7 department determines necessary for the calculation of the credit
8 provided by this chapter and the determination of whether the credit
9 was properly claimed.
10 (b) Notwithstanding subsection (a), if a taxpayer is entitled to a
11 credit under this chapter, the taxpayer may, with the approval of
12 the corporation, elect to forgo claiming the credit against any state
13 tax liability and submit the credit to the department with a request
14 to receive a payment from the department equal to the credit for
15 that taxable year as provided in IC 6-3-5-5.
16 SECTION 12. IC 6-3.1-26-20, AS AMENDED BY P.L.158-2019,
17 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 20. (a) The corporation
19 shall certify the amount of the qualified investment that is eligible for
20 a credit under this chapter. In determining the credit amount that
21 should be awarded, the corporation shall grant a credit only for the
22 amount of the qualified investment that is directly related to:
23 (1) expanding the workforce in Indiana; or
24 (2) substantially enhancing the logistics industry and or
25 improving the overall Indiana economy.
26 (b) The total amount of credits that the corporation may approve
27 under this chapter for a state fiscal year for all taxpayers for all
28 qualified investments is:
29 (1) fifty million dollars ($50,000,000) for credits based on a
30 qualified investment that is not being claimed as a logistics
31 investment; and
32 (2) five million dollars ($5,000,000) for credits based on a
33 qualified investment that is being claimed as a logistics
34 investment.
35 For purposes of applying the limit under this subsection, a tax credit
36 that is accelerated under section 15(d) or 16(d) of this chapter shall be
37 valued at the amount of the tax credit before the tax credit is
38 discounted.
39 (c) (b) A person that desires to claim a tax credit for a qualified
40 investment shall file with the department, in the form that the
41 department may prescribe, an application:
42 (1) stating separately the amount of the credit awards for qualified
2022 IN 361—LS 7135/DI 120 12
1 investments that have been granted to the taxpayer by the
2 corporation that will be claimed as a credit; that is covered by:
3 (A) subsection (b)(1); and
4 (B) subsection (b)(2);
5 (2) stating separately the amount sought to be claimed as a credit;
6 that is covered by:
7 (A) subsection (b)(1); and
8 (B) subsection (b)(2); and
9 (3) identifying whether the credit will be claimed during the state
10 fiscal year in which the application is filed or the immediately
11 succeeding state fiscal year.
12 (d) (c) The department shall separately record the time of filing of
13 each application for a credit award for a qualified investment covered
14 by subsection (b)(1) and for a qualified investment covered by
15 subsection (b)(2) and shall, except as provided in subsection (e), (d),
16 approve the credit to the taxpayer in the chronological order in which
17 the application is filed in the state fiscal year. The department shall
18 promptly notify an applicant whether, or the extent to which, the tax
19 credit is allowable in the state fiscal year proposed by the taxpayer.
20 (e) (d) If the total credit awards for qualified investments, that are
21 covered by:
22 (1) subsection (b)(1); and
23 (2) subsection (b)(2);
24 including carryover credit awards covered by each subsection for a
25 previous state fiscal year, equal the maximum amount allowable in the
26 state fiscal year, an application for such a credit award that is filed later
27 for that same state fiscal year may not be granted by the department.
28 However, if an applicant for which a credit has been awarded and
29 applied for with the department fails to claim the credit, an amount
30 equal to the credit previously applied for but not claimed may be
31 allowed to the next eligible applicant or applicants until the total
32 amount has been allowed.
33 SECTION 13. IC 6-3.1-30-8, AS AMENDED BY P.L.158-2019,
34 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 8. (a) Subject to entering
36 into an agreement with the corporation under sections 14 and 15 of this
37 chapter, if the corporation certifies that a taxpayer:
38 (1) is an eligible business;
39 (2) completes a qualifying project; and
40 (3) incurs relocation costs; and
41 (4) employs:
42 (A) at least seventy-five (75) employees in Indiana, in the case
2022 IN 361—LS 7135/DI 120 13
1 of a taxpayer that qualifies as an eligible business under
2 section 2(1) of this chapter; or
3 (B) at least ten (10) employees in Indiana, in the case of a
4 taxpayer that qualifies as an eligible business under section
5 2(2) of this chapter;
6 the taxpayer is entitled to a credit against the taxpayer's state tax
7 liability for the taxable year in which the relocation costs are incurred.
8 subject to subsection (c). The credit allowed under this section is equal
9 to the amount determined under section 9 of this chapter.
10 (b) For purposes of establishing the employment level required by
11 subsection (a)(4), a taxpayer may include:
12 (1) individuals who:
13 (A) were employed in Indiana by the taxpayer before the
14 taxpayer commenced a qualifying project; and
15 (B) remain employed in Indiana after the completion of the
16 taxpayer's qualifying project; and
17 (2) individuals who:
18 (A) were not employed in Indiana by the taxpayer before the
19 taxpayer commenced a qualifying project; and
20 (B) are employed in Indiana by the taxpayer as a result of the
21 completion of the taxpayer's qualifying project.
22 (c) The total amount of credits that may be approved by the
23 corporation for all eligible businesses described in section 2(2) of this
24 chapter may not exceed five million dollars ($5,000,000) in a state
25 fiscal year.
26 SECTION 14. IC 6-3.1-34-6, AS AMENDED BY P.L.154-2020,
27 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 6. As used in this
29 chapter, "qualified redevelopment site" means a vacant or
30 underutilized property in Indiana as determined by the
31 corporation.
32 (1) land on which a vacant building or complex of buildings was
33 placed in service at least fifteen (15) years before the date on
34 which the application is filed with the corporation under this
35 chapter;
36 (2) land on which a vacant building or complex of buildings:
37 (A) was placed in service at least fifteen (15) years before the
38 date on which the demolition of the vacant building or
39 complex of buildings was completed; and
40 (B) that was demolished in an effort to protect the health,
41 safety, and welfare of the community;
42 (3) land on which a vacant building or complex of buildings:
2022 IN 361—LS 7135/DI 120 14
1 (A) was placed in service at least fifteen (15) years before the
2 date on which the demolition of the vacant building or
3 complex of buildings was completed;
4 (B) was placed in service as a public building;
5 (C) was owned by a unit of local government; and
6 (D) has not been redeveloped since the building was taken out
7 of service as a public building;
8 (4) vacant land;
9 (5) mine reclamation site; or
10 (6) brownfields consisting of more than fifty (50) acres.
11 For a complex of buildings to be considered a qualified redevelopment
12 site under subdivision (1), (2) or (3), the buildings must have been
13 located on a single parcel or contiguous parcels of land that were under
14 common ownership at the time the site was placed in service.
15 SECTION 15. IC 6-3.1-34-8, AS ADDED BY P.L.158-2019,
16 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 8. As used in this
18 chapter, "rehabilitation" means the betterment of real property
19 including remodeling or repair. in any way.
20 SECTION 16. IC 6-3.1-34-17, AS AMENDED BY P.L.154-2020,
21 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 17. (a) The following
23 apply if the corporation determines that a credit should be awarded
24 under this chapter:
25 (1) The corporation shall require the taxpayer to enter into an
26 agreement with the corporation as a condition of receiving a
27 credit under this chapter.
28 (2) The agreement with the corporation must:
29 (A) prescribe the method of certifying the taxpayer's qualified
30 investment; and
31 (B) include provisions that authorize the corporation to work
32 with the department and the taxpayer, if the corporation
33 determines that the taxpayer is noncompliant with the terms of
34 the agreement or the provisions of this chapter, to bring the
35 taxpayer into compliance or to protect the interests of the state.
36 (3) The corporation shall specify the taxpayer's expenditures that
37 will be considered a qualified investment.
38 (4) The corporation shall determine the applicable credit
39 percentage under subsections (b) and (c).
40 (b) If the corporation determines that a credit should be awarded
41 under this chapter, the corporation shall determine the applicable credit
42 percentage for a qualified investment certified by the corporation.
2022 IN 361—LS 7135/DI 120 15
1 However, and except as provided in subsection (c), the applicable
2 credit percentage may not exceed the following: thirty percent (30%).
3 (1) If the qualified redevelopment site was placed in service at
4 least fifteen (15) years ago but less than thirty (30) years ago, or
5 is vacant land or a brownfield described in section 6(6) of this
6 chapter:
7 (A) fifteen percent (15%), if the qualified redevelopment site
8 is part of a development plan of a regional development
9 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
10 (B) ten percent (10%), if the qualified redevelopment site is
11 not part of a development plan of a regional development
12 authority described under clause (A).
13 (2) If the qualified redevelopment site was placed in service at
14 least thirty (30) years ago but less than forty (40) years ago:
15 (A) twenty percent (20%), if the qualified redevelopment site
16 is part of a development plan of a regional development
17 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
18 (B) ten percent (10%), if the qualified redevelopment site is
19 not part of a development plan of a regional development
20 authority described under clause (A).
21 (3) If the qualified redevelopment site was placed in service at
22 least forty (40) years ago:
23 (A) twenty-five percent (25%), if the qualified redevelopment
24 site is part of a development plan of a regional development
25 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
26 (B) fifteen percent (15%), if the qualified redevelopment site
27 is not part of a development plan of a regional development
28 authority described under clause (A).
29 (c) The corporation may increase the credit amount by not more
30 than an additional five percent (5%) if:
31 (1) the qualified redevelopment site is located in a federally
32 designated qualified opportunity zone (Section 1400Z-1 and
33 1400Z-2 of the Internal Revenue Code); or
34 (2) the project qualifies for federal new markets tax credits under
35 Section 45D of the Internal Revenue Code.
36 (d) To be eligible for the credit for a qualified investment, a
37 taxpayer's expenditures that are considered a qualified investment must
38 be certified by the corporation not later than two (2) taxable years after
39 the end of the calendar year in which the taxpayer's expenditures are
40 made.
41 SECTION 17. IC 6-3.1-34-18, AS ADDED BY P.L.158-2019,
42 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2022 IN 361—LS 7135/DI 120 16
1 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 18. (a) Subject to
2 subsection (e), If the corporation awards a tax credit to a taxpayer
3 under this chapter that exceeds twenty million dollars
4 ($20,000,000), the corporation shall include in an agreement
5 entered into under section 17 of this chapter a provision that
6 requires the taxpayer to repay to the corporation the portion of the
7 credit that exceeds twenty million dollars ($20,000,000) with
8 interest. may, as part of an agreement entered into under section 17 of
9 this chapter:
10 (1) require a taxpayer to repay all or part of a credit awarded
11 under this chapter over a period of years; and
12 (2) limit the maximum amount of a credit awarded to a taxpayer
13 under this chapter that may be claimed during a taxable year.
14 (b) The corporation may elect to enter into an agreement with a
15 local unit that has jurisdiction over the real property that is subject to
16 the proposed qualified investment, through which such agreement the
17 local unit commits local revenue generated by the project to the
18 corporation rather than the corporation including a repayment provision
19 in an agreement with a taxpayer under subsection (a)(1). The total
20 amount of revenue committed under an agreement entered into under
21 this subsection may not exceed the credit repayment amount
22 determined under subsection (a)(1). Any amounts received under an
23 agreement entered into under this subsection shall be deposited in the
24 state general fund.
25 (c) Notwithstanding subsections (a) and (b), if the corporation
26 awards a tax credit to a taxpayer under this chapter that exceeds seven
27 million dollars ($7,000,000), the corporation shall include in an
28 agreement entered into under section 17 of this chapter a provision that
29 requires the taxpayer to repay the portion of the credit that exceeds
30 seven million dollars ($7,000,000).
31 (b) Notwithstanding subsection (a), the corporation may exclude
32 from its agreement entered into under section 17 of this chapter a
33 repayment provision for any portion of the credit if the award is
34 for a qualified redevelopment site subject to a proposal that will
35 result in a qualified investment of at least one hundred million
36 dollars ($100,000,000).
37 (d) (c) If the corporation enters into an agreement with a taxpayer
38 under section 17 of this chapter that includes a repayment provision
39 under subsection (a)(1) or (c), (a), the corporation shall include in the
40 repayment provision a provision establishing the interest rate that will
41 be applied. The interest rate shall be determined by the board and
42 approved by the budget agency. corporation at its discretion.
2022 IN 361—LS 7135/DI 120 17
1 (e) (d) This subsection applies to an active multi-phased project
2 occurring on a defined footprint for which the taxpayer has received
3 approval for at least the first phase of the active multi-phased project
4 from the corporation's board before July 1, 2018, for a tax credit under
5 IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The
6 following apply to a project described in this subsection:
7 (1) Only qualified investments that are made after June 30, 2021,
8 are eligible for a credit award under this chapter.
9 (2) The annual amount of credits awarded under this chapter for
10 the project may not exceed five million dollars ($5,000,000).
11 (3) The corporation may not include a repayment provision as part
12 of an agreement entered into under section 17 of this chapter for
13 the credits awarded for the project.
14 SECTION 18. IC 6-3.1-34-22 IS REPEALED [EFFECTIVE
15 JANUARY 1, 2022 (RETROACTIVE)]. Sec. 22. (a) Except as
16 provided in subsection (b), the total amount of credits that the
17 corporation may award under this chapter for a state fiscal year for all
18 taxpayers for all qualified investments is fifty million dollars
19 ($50,000,000). The portion of the credits that is subject to a repayment
20 provision under section 18(b) or 18(c) of this chapter is not included in
21 the calculation of the annual limit.
22 (b) If the corporation determines that a credit should be awarded
23 under this chapter for a taxpayer's qualified investment but the award:
24 (1) will result in the corporation's cumulative credit awards under
25 this chapter for a state fiscal year for all taxpayers for all qualified
26 investments to exceed the limit established by subsection (a); or
27 (2) should not be considered when calculating the corporation's
28 cumulative credit awards under this chapter for a state fiscal year
29 for all taxpayers for all qualified investments;
30 the corporation may, after review by the budget committee, enter into
31 an agreement with the taxpayer under section 17 of this chapter.
32 SECTION 19. IC 35-52-6-20.5 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JANUARY 1, 2023]: Sec. 20.5. IC 6-3-4-8.6 defines a
35 crime concerning taxes.
36 SECTION 20. IC 36-7-32.5 IS ADDED TO THE INDIANA CODE
37 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
38 JANUARY 1, 2023]:
39 Chapter 32.5. Innovation Development Districts
40 Sec. 1. As used in this chapter, "base assessed value" means the
41 remainder of:
42 (1) the net assessed value of all the taxable real and personal
2022 IN 361—LS 7135/DI 120 18
1 property located in an innovation development district as
2 finally determined for the assessment date immediately
3 preceding the effective date of the designation by the
4 corporation under section 8 of this chapter; plus
5 (2) to the extent it is not included in subdivision (1), the net
6 assessed value of property that is assessed as residential
7 property under the rules of the department of local
8 government finance, within the innovation development
9 district, as finally determined for the current assessment date.
10 Sec. 2. As used in this chapter, "gross retail base period
11 amount" means the aggregate amount of state gross retail and use
12 taxes remitted under IC 6-2.5 by the businesses operating in the
13 territory comprising an innovation development district during the
14 full state fiscal year that precedes the date on which the innovation
15 development district was designated under section 8 of this
16 chapter.
17 Sec. 3. As used in this chapter, "gross retail incremental
18 amount" means the remainder of:
19 (1) the aggregate amount of state gross retail and use taxes
20 that are remitted under IC 6-2.5 by businesses operating in
21 the territory comprising an innovation development district
22 during a state fiscal year; minus
23 (2) the gross retail base period amount;
24 as determined by the department of state revenue.
25 Sec. 4. As used in this chapter, "income tax base period
26 amount" means the aggregate amount of the following taxes paid
27 by employees employed in the territory comprising an innovation
28 development district with respect to wages and salary earned for
29 work in the innovation development district for the state fiscal year
30 that precedes the date on which the innovation development
31 district was designated under section 8 of this chapter:
32 (1) The adjusted gross income tax.
33 (2) The local income tax (IC 6-3.6).
34 Sec. 5. As used in this chapter, "income tax incremental
35 amount" means the remainder of:
36 (1) the total amount of state adjusted gross income taxes and
37 local income taxes paid by employees employed in the
38 territory comprising the innovation development district with
39 respect to wages and salary earned for work in the territory
40 comprising the innovation development district for a
41 particular state fiscal year; minus
42 (2) the sum of the:
2022 IN 361—LS 7135/DI 120 19
1 (A) income tax base period amount; and
2 (B) tax credits awarded by the Indiana economic
3 development corporation under IC 6-3.1-13 to businesses
4 operating in an innovation development district as the
5 result of wages earned for work in the innovation
6 development district for the state fiscal year;
7 as determined by the department of state revenue.
8 Sec. 6. As used in this chapter, "net increment" means the sum
9 of:
10 (1) the gross retail incremental amount; and
11 (2) the income tax incremental amount;
12 as determined by the department of state revenue.
13 Sec. 7. (a) A unit may apply to the corporation for designation
14 of all or part of the territory within the jurisdiction of the unit's
15 redevelopment commission as an innovation development district
16 and to enter into an agreement governing the terms and conditions
17 of the designation. The application must be in a form specified by
18 the corporation and must include information the corporation
19 determines necessary to make the determinations required under
20 section 8 of this chapter.
21 (b) Multiple units may submit a joint application for designation
22 of all or part of the territory within each respective jurisdiction of
23 each unit's redevelopment commission as an innovation
24 development district and enter into an agreement governing the
25 terms and conditions of the designation. The application must be
26 in a form specified by the corporation and must include
27 information the corporation determines necessary to make the
28 determinations required under section 8 of this chapter.
29 (c) Notwithstanding subsections (a) and (b), the corporation
30 may designate all or part of the territory within the jurisdiction of
31 the unit's redevelopment commission as an innovation development
32 district and enter into an agreement with the redevelopment
33 commission governing the terms and conditions of the designation.
34 Sec. 8. (a) After December 31, 2022, the corporation may
35 designate an area as an innovation development district if the
36 corporation determines that the designation will support the
37 acceleration of economic growth in Indiana.
38 (b) Unless otherwise provided by subsection (e), before the
39 corporation designates an area as an innovation development
40 district, the unit, or units under section 7(b), the corporation shall
41 submit the application for review by the budget committee. The
42 budget committee shall meet not later than sixty (60) days after
2022 IN 361—LS 7135/DI 120 20
1 receipt of the application to review the application.
2 (c) The corporation may not approve an application or
3 designate an area as an innovation development district if such a
4 designation would result in a substantial reduction or cessation of
5 operations in another location in Indiana in order to relocate them
6 within the innovation development district.
7 (d) The duration of a designation under this chapter may not
8 exceed an initial term of thirty (30) taxable years. The corporation
9 may extend its designation for up to an additional twenty (20) years
10 if the innovation development district generally conforms with the
11 performance metrics for job creation, capital investment, or
12 population growth, established when the district was designated
13 and as determined by the corporation.
14 (e) Notwithstanding subsection (c) and subject to the limitations
15 of subsections (d) and (f), the corporation may approve an
16 application or designate an area as an innovation development
17 district without review by the budget committee if, according to the
18 corporation:
19 (1) the designation is for a project:
20 (A) creating substantial jobs and development;
21 (B) that involves an investment of an least one million
22 dollars ($1,000,000); and
23 (C) that is in an industry sector that is considered an
24 industry of the future, as determined by the corporation;
25 (2) the designation is for a project:
26 (A) creating substantial jobs and development; and
27 (B) that involves an investment of at least two hundred
28 million dollars ($200,000,000), but less than one billion
29 dollars ($1,000,000,000); or
30 (3) the designation will reasonably result in:
31 (A) the increase in average annual population growth
32 within the district of at least three percent (3%) within ten
33 (10) years; or
34 (B) the net increase of assessed valuation of property
35 within the district of at least one billion dollars
36 ($1,000,000,000) within twenty (20) years.
37 (f) The corporation may only designate a total of ten (10)
38 innovation development districts under subsection (e)(2) during
39 each state fiscal year.
40 Sec. 9. (a) A redevelopment commission may enter into an
41 agreement with the corporation establishing the terms and
42 conditions governing an innovation development district
2022 IN 361—LS 7135/DI 120 21
1 designated under section 8 of this chapter. Upon designation of the
2 innovation development district under the terms of the agreement,
3 subsequent failure of any party to comply with the terms of the
4 agreement may result in the termination or rescission of the
5 designation of the area as an innovation development district.
6 (b) The agreement must include the following provisions:
7 (1) A description of the area to be included within the
8 innovation development district.
9 (2) Covenants and restrictions, if any, upon all or a part of the
10 properties contained within the innovation development
11 district and terms of enforcement of any covenants or
12 restrictions.
13 (3) The due diligence and financial commitments of any party
14 to the agreement and of any owner or developer of property
15 within the innovation development district.
16 (4) The financial projections of the innovation development
17 district, as determined by the corporation.
18 (5) The maximum net increment and property tax increment
19 amount that may be captured within the innovation
20 development district.
21 (6) The proposed use of the net increment and property tax
22 incremental amount captured within the innovation
23 development district.
24 (7) Subject to the limitations of this chapter, the duration of
25 the corporation's designation of an area as an innovation
26 development district.
27 (8) The terms of enforcement of the agreement, which may
28 include the definition of events of default, cure periods, legal
29 and equitable remedies and rights, and penalties and
30 damages, actual or liquidated, upon the occurrence of an
31 event of default.
32 (9) The public facilities to be developed for the innovation
33 development district and the costs of those public facilities, as
34 approved by the corporation.
35 Sec. 10. (a) If the corporation designates an area as an
36 innovation development district, the redevelopment commission
37 shall adopt a resolution designating an innovation development
38 district as an allocation area for purposes of the allocation and
39 distribution of property taxes.
40 (b) After adoption of the resolution under subsection (a), the
41 redevelopment commission shall:
2022 IN 361—LS 7135/DI 120 22
1 (1) publish notice of the adoption and substance of the
2 resolution in accordance with IC 5-3-1; and
3 (2) file the following information with each taxing unit that
4 has authority to levy property taxes in the geographic area
5 where the innovation development district is located:
6 (A) A copy of the notice required under subdivision (1).
7 (B) A statement disclosing the impact of the innovation
8 development district, including the following:
9 (i) The estimated economic benefits and costs incurred
10 by the innovation development district, as measured by
11 increased employment and anticipated growth of real
12 and personal property assessed values.
13 (ii) The anticipated impact on tax revenues of each
14 taxing unit.
15 The notice must state the general boundaries of the innovation
16 development district and must state that written remonstrances
17 may be filed with the redevelopment commission until the time
18 designated for the hearing. The notice must also name the place,
19 date, and time when the redevelopment commission will receive
20 and hear remonstrances and objections from persons interested in
21 or affected by the proceedings pertaining to the proposed
22 allocation area and will determine the public utility and benefit of
23 the proposed allocation area. The commission shall file the
24 information required by subdivision (2) with the officers of the
25 taxing unit who are authorized to fix budgets, tax rates, and tax
26 levies under IC 6-1.1-17-5 at least ten (10) days before the date of
27 the public hearing. All persons affected in any manner by the
28 hearing, including all taxpayers within the taxing district of the
29 redevelopment commission, shall be considered notified of the
30 pendency of the hearing and of subsequent acts, hearings,
31 adjournments, and orders of the redevelopment commission
32 affecting the allocation area if the redevelopment commission gives
33 the notice required by this subsection.
34 (c) At the hearing, which may be recessed and reconvened
35 periodically, the redevelopment commission shall hear all persons
36 interested in the proceedings and shall consider all written
37 remonstrances and objections that have been filed. After
38 considering the evidence presented, the redevelopment commission
39 shall take final action determining the public utility and benefit of
40 the proposed allocation area confirming, modifying and
41 confirming, or rescinding the resolution. The final action taken by
42 the redevelopment commission shall be recorded and is final and
2022 IN 361—LS 7135/DI 120 23
1 conclusive, except that an appeal may be taken in the manner
2 prescribed by section 11 of this chapter.
3 (d) If the redevelopment commission confirms, or modifies and
4 confirms, the resolution, the redevelopment commission shall file
5 a copy of the resolution with both the auditor of the county in
6 which the innovation development district is located and the
7 department of local government finance, together with any
8 supporting documents that are relevant to the computation of
9 assessed values in the allocation area, within thirty (30) days after
10 the date on which the redevelopment commission takes final action
11 on the resolution.
12 Sec. 11. (a) A person who files a written remonstrance with the
13 redevelopment commission under section 10 of this chapter and
14 who is aggrieved by the final action taken may, within ten (10) days
15 after that final action, file with the office of the clerk of the circuit
16 or superior court of the county a copy of the redevelopment
17 commission's resolution and the person's remonstrance against the
18 resolution, together with the person's bond as provided by
19 IC 34-13-5-7.
20 (b) An appeal under this section shall be promptly heard by the
21 court without a jury. All remonstrances upon which an appeal has
22 been taken shall be consolidated and heard and determined within
23 thirty (30) days after the time of filing of the appeal. The court
24 shall decide the appeal based on the record and evidence before the
25 redevelopment commission, not by trial de novo, and may confirm
26 the final action of the redevelopment commission or sustain the
27 remonstrances. The judgment of the court is final and conclusive,
28 unless an appeal is taken as in other civil actions.
29 Sec. 12. (a) An allocation provision adopted under section 10 of
30 this chapter must:
31 (1) apply to the entire innovation development district; and
32 (2) require that any property tax on taxable property
33 subsequently levied by or for the benefit of any public body
34 entitled to a distribution of property taxes in the innovation
35 development district be allocated and distributed as provided
36 in subsections (b) and (c).
37 (b) Except as otherwise provided in this section:
38 (1) the proceeds of the taxes attributable to the lesser of:
39 (A) the assessed value of the taxable property for the
40 assessment date with respect to which the allocation and
41 distribution is made; or
42 (B) the base assessed value;
2022 IN 361—LS 7135/DI 120 24
1 shall be allocated and, when collected, paid into the funds of
2 the respective taxing units; and
3 (2) the excess of the proceeds of the property taxes imposed
4 for the assessment date with respect to which the allocation
5 and distribution is made that are attributable to taxes
6 imposed after being approved by the voters in a referendum
7 or local public question conducted after April 30, 2010, not
8 otherwise included in subdivision (1) shall be allocated to and,
9 when collected, paid into the funds of the taxing unit for
10 which the referendum or local public question was conducted.
11 (c) Except provided in subsections (d) and (e), all the property
12 tax proceeds that exceed those described in subsection (b) shall be
13 allocated to the redevelopment commission for the innovation
14 development district and, when collected, paid into the innovation
15 development district fund established by section 17 of this chapter.
16 (d) The corporation may enter into an agreement with the
17 redevelopment commission that permits the redevelopment
18 commission to retain ten percent (10%) of the new incremental
19 property tax proceeds that exceed those described in subsection (b)
20 for use by the redevelopment commission in accordance with the
21 requirements of IC 36-7-14.
22 (e) Notwithstanding any other law, each assessor shall, upon
23 petition of the corporation, reassess the taxable property situated
24 upon or in, or added to, the innovation development district
25 effective on the next assessment date after the petition.
26 (f) Notwithstanding any other law, the assessed value of all
27 taxable property in the innovation development district, for
28 purposes of tax limitation, property tax replacement, and
29 formulation of the budget, tax rate, and tax levy for each political
30 subdivision in which the property is located is the lesser of:
31 (1) the assessed value of the taxable property as valued
32 without regard to this section; or
33 (2) the base assessed value.
34 Sec. 13. The corporation or a redevelopment commission may
35 enter into a written agreement with a taxpayer who owns, or is
36 otherwise obligated to pay property taxes on, tangible property
37 that is or will be located in an allocation area established under this
38 chapter in which the taxpayer waives review of any assessment of
39 the taxpayer's tangible property that is located in the allocation
40 area for an assessment date that occurs during the term of any
41 specified bond or lease obligations that are payable, in whole or in
42 part, from property taxes in accordance with an allocation
2022 IN 361—LS 7135/DI 120 25
1 provision for the allocation area and any applicable statute,
2 ordinance, or resolution. An agreement described in this section
3 may precede the establishment of the allocation area or the
4 determination to issue bonds or enter into leases payable from the
5 allocated property taxes.
6 Sec. 14. (a) The state board of accounts and department of local
7 government finance shall make the rules and prescribe the forms
8 and procedures that the state board of accounts and department of
9 local government finance consider appropriate for the
10 implementation of an allocation area under this chapter.
11 (b) After each reassessment of real property in an area under a
12 county's reassessment plan prepared under IC 6-1.1-4-4.2, the
13 department of local government finance shall adjust the base
14 assessed value one (1) time to neutralize any effect of the
15 reassessment of the real property in the area on the property tax
16 proceeds allocated to the innovation development district fund
17 under section 17 of this chapter. After each annual adjustment
18 under IC 6-1.1-4-4.5, the department of local government finance
19 shall adjust the base assessed value to neutralize any effect of the
20 annual adjustment on the property tax proceeds allocated to the
21 innovation development district fund established by section 17 of
22 this chapter.
23 Sec. 15. (a) After entering into an agreement under section 9 of
24 this chapter, the redevelopment commission shall send to the
25 department of state revenue:
26 (1) a certified copy of the designation of the innovation
27 development district under section 8 of this chapter;
28 (2) a certified copy of the agreement entered into under
29 section 9 of this chapter; and
30 (3) a complete list of the employers in the innovation
31 development district and the street names and the range of
32 street numbers of each street in the innovation development
33 district.
34 The redevelopment commission shall update the list provided
35 under subdivision (3) before July 1 of each year.
36 (b) Not later than sixty (60) days after receiving a copy of the
37 designation of the innovation development district, the department
38 of state revenue shall determine the gross retail base period
39 amount and the income tax base period amount.
40 Sec. 16. (a) Before the first business day in October of each year,
41 the department of state revenue shall calculate the income tax
42 incremental amount and the gross retail incremental amount for
2022 IN 361—LS 7135/DI 120 26
1 the preceding state fiscal year for each innovation development
2 district designated under this chapter.
3 (b) Taxpayers operating in an innovation development district
4 shall report annually, in the manner and form prescribed by the
5 department of state revenue, information that the department
6 determines necessary to calculate the net increment.
7 (c) A taxpayer operating in an innovation development district
8 that files a consolidated tax return with the department of state
9 revenue shall also file annually an informational return with the
10 department of state revenue for each business location of the
11 taxpayer within the innovation development district.
12 (d) If a taxpayer fails to report the information required by this
13 section or file an informational return required by this section, the
14 department of state revenue shall use the best information
15 available in calculating the income tax incremental amount and
16 gross retail incremental amount.
17 (e) The department of state revenue shall transfer the amount
18 calculated as provided in subsection (a) to the innovation
19 development district fund established by section 17 of this chapter
20 by November 1 of each year.
21 Sec. 17. (a) The innovation development district fund is
22 established within the state treasury to provide grants or loans to
23 support the development or expansion of an advanced industry in
24 Indiana.
25 (b) The fund consists of:
26 (1) Transfers from the general fund by the department of
27 state revenue as provided in section 16 this chapter.
28 (2) Transfers from a redevelopment commission as provided
29 in section 12 of this chapter.
30 (3) Loan repayments, including earnings from loans under
31 subsection (d).
32 (c) The corporation shall administer the fund. The following
33 may be paid from money in the fund:
34 (1) Expense of administering the fund.
35 (2) Nonrecurring administrative expenses incurred to carry
36 out the purposes of this chapter.
37 (d) Earnings from loans made under this chapter shall be
38 deposited in the fund.
39 (e) The corporation may make grants, loans, or investments
40 from the fund for the following purposes:
41 (1) For the purposes identified in IC 36-7-32-23(b).
2022 IN 361—LS 7135/DI 120 27
1 (2) For the acquisition and improvement of land or other
2 property and to support the expansion of industry in the state.
3 (3) For the acquisition, development or investment in
4 business, technologies, equipment, or products that have
5 potential for economic growth and expansion in the state.
6 (4) For the development of partnerships, including grants and
7 loans, between the state, advanced industry and higher
8 educational institutions focused on development, expansion,
9 or retention in the state in the interest of economic
10 development.
11 (5) For the stimulation of investments in entrepreneurial or
12 high growth potential companies in the state.
13 (6) For technology and equipment modernization and
14 development, and training assistance in the state.
15 (7) For any other purpose determined by the corporation that
16 supports the development or expansion of industry in the
17 state.
18 Sec. 18. (a) Money in the innovation development district fund
19 established by section 17 of this chapter at the end of the state
20 fiscal year does not revert to the state general fund.
21 (b) Money in the fund is continuously appropriated for the
22 purposes of this chapter.
23 (c) Money in the fund may be transferred to any fund
24 administered by the corporation.
25 Sec. 19. (a) The corporation, in order to accelerate the rate of
26 economic growth in Indiana, is hereby authorized and empowered
27 to construct, maintain, and operate, in cooperation with the federal
28 government, or otherwise, at such locations within a designated
29 innovation development district, projects to accelerate economic
30 growth and to issue bonds payable solely from:
31 (1) revenues generated by the project;
32 (2) net increment distributed to the corporation by the
33 department under section 16 of this chapter;
34 (3) property tax increment distributed to the corporation by
35 a redevelopment commission under section 12 of this chapter;
36 or
37 (4) any combination of the methods in subdivisions (1)
38 through (3);
39 to pay the cost of such projects.
40 (b) If there is insufficient revenue generated by the sources
41 identified under subsection (a) to make lease rental payments
42 associated with bonds issued under this section, there is
2022 IN 361—LS 7135/DI 120 28
1 appropriated from the state general fund sufficient revenues to
2 meet these obligations.
3 Sec. 20. The corporation shall provide information on the
4 innovation development district program in its economic incentive
5 and compliance report submitted pursuant to IC 5-28-28-5
6 including the following:
7 (1) Metrics established by the corporation to evaluate the
8 effectiveness of the Innovation Development District in
9 promoting economic growth in the state.
10 (2) The number and amount of grants or loans from the fund
11 contractually awarded by the corporation.
12 (3) The name of each entity receiving a grant or loan from the
13 fund.
14 SECTION 21. An emergency is declared for this act.
2022 IN 361—LS 7135/DI 120