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