*SB0361.2*
Reprinted
February 1, 2022
SENATE BILL No. 361
_____
DIGEST OF SB 361 (Updated January 31, 2022 5:39 pm - DI 120)
Citations Affected: IC 5-1.2; IC 5-28; IC 5-33; IC 6-3; IC 6-3.1;
IC 35-52; IC 36-7.
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 beginning July 1, 2023. Establishes
innovation development district (district) program beginning July 1,
2023. 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. Limits the
total amount of credits that the Indiana economic development
corporation (IEDC) may award for a calendar year for all taxpayers for
all applicable tax credits to $400,000,000. However, provides that,
subject to review by the budget committee, the IEDC may award an
(Continued next page)
Effective: July 1, 2023.
Mishler, Holdman, Ford Jon, Busch
January 11, 2022, read first time and referred to Committee on Appropriations.
January 27, 2022, amended, reported favorably — Do Pass.
January 31, 2022, read second time, amended, ordered engrossed.
SB 361—LS 7135/DI 120 Digest Continued
additional $200,000,000, in addition to the $400,000,000 limit, but that
the additional credits shall not be assigned or transferred. Provides that
the IEDC may award a tax credit for media production expenses for
certain media productions in Indiana beginning July 1, 2023. 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 beginning July 1,
2023. Limits the total amount of grants that may be awarded under the
new remote worker grant program in a fiscal year. Makes conforming
changes.
SB 361—LS 7135/DI 120SB 361—LS 7135/DI 120 Reprinted
February 1, 2022
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 5-1.2-4-4, AS ADDED BY P.L.189-2018,
2 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 4. In addition to the powers listed in section 1 of
4 this chapter, the authority may:
5 (1) enter into leases and issue bonds under terms and conditions
6 determined by the authority and use the proceeds of the bonds to:
7 (A) acquire obligations issued by any entity authorized to
8 acquire, finance, construct, or lease capital improvements
9 under IC 5-1-17;
10 (B) acquire any obligations issued by the northwest Indiana
11 regional development authority established by IC 36-7.5-2-1;
12 or
13 (C) carry out the purposes of IC 5-1-17.5 within a motorsports
14 investment district; and
15 (2) issue bonds under terms and conditions determined by the
16 authority payable solely from:
17 (A) revenues generated by a project under IC 36-7-32.5;
SB 361—LS 7135/DI 120 2
1 (B) net increment distributed to the Indiana economic
2 development corporation by the department of state
3 revenue under IC 36-7-32.5-16;
4 (C) property tax increment distributed to the Indiana
5 development corporation by a redevelopment commission
6 under IC 36-7-32.5-12 for assessments after December 31,
7 2023; or
8 (D) any combination of the methods set forth in clauses (A)
9 through (C);
10 and use the proceeds of the bonds to pay the cost of projects
11 described in IC 36-7-32.5-19; and
12 (2) (3) perform any other functions determined by the authority to
13 be necessary or appropriate to carry out the purposes of this
14 section.
15 SECTION 2. IC 5-28-2-1.5 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2023]: Sec. 1.5. "Applicable tax credit" means any of the
18 following:
19 (1) IC 6-3.1-13.
20 (2) IC 6-3.1-19.
21 (3) IC 6-3.1-26.
22 (4) IC 6-3.1-30.
23 (5) IC 6-3.1-34.
24 (6) IC 6-3.1-36.
25 SECTION 3. IC 5-28-6-9 IS ADDED TO THE INDIANA CODE
26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
27 1, 2023]: Sec. 9. (a) Except as provided in subsection (b), the total
28 amount of credits that the corporation may award for a calendar
29 year for all taxpayers for all applicable tax credits is four hundred
30 million dollars ($400,000,000).
31 (b) Subject to review by the budget committee, the corporation
32 may award for a calendar year for all taxpayers an additional two
33 hundred million dollars ($200,000,000) for all applicable tax credits
34 in addition to those under subsection (a). However, the tax credits
35 awarded under this subsection shall not be assigned or transferred.
36 (c) If the corporation has not or does not expect to exhaust the
37 limit on the award of applicable credits, the corporation may
38 award some or all of the remaining credits to taxpayers that make
39 contributions to the Indiana promotion fund established by
40 IC 5-28-5-12 in accordance with the policy established by the
41 corporation under subsection (e).
42 (d) Credits provided to taxpayers providing contributions to the
SB 361—LS 7135/DI 120 3
1 Indiana promotion fund may not be carried back or refunded.
2 (e) The corporation shall establish a policy for the award and
3 distribution of credits that must be approved by the board.
4 SECTION 4. IC 5-33-7 IS ADDED TO THE INDIANA CODE AS
5 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
6 1, 2023]:
7 Chapter 7. Remote Worker Grant Program
8 Sec. 1. The following definitions apply throughout this chapter:
9 (1) "New remote worker" means an individual who:
10 (A) is a full-time employee of a business with its domicile
11 or primary place of business outside Indiana;
12 (B) becomes a full-time resident of Indiana on or after
13 January 1, 2023; and
14 (C) performs the majority of their employment duties
15 remotely while located in residence in Indiana.
16 (2) "Program" refers to the new remote worker grant
17 program as set forth in section 2 of this chapter.
18 (3) "Qualifying remote worker expenses" means actual costs
19 a new remote worker incurs for one (1) or more of the
20 following that are necessary to perform their employment
21 duties:
22 (A) Relocation to Indiana.
23 (B) Computer hardware or software.
24 (C) Access to broadband internet.
25 (D) Membership in a co-working space or similar location.
26 Sec. 2. (a) The corporation shall design and implement a new
27 remote worker grant program, which shall include a process to
28 certify new remote workers and qualifying expenses for a grant
29 under this section.
30 (b) A new remote worker may be eligible for a grant under the
31 program for qualifying remote worker expense in an amount that
32 shall not exceed:
33 (1) five thousand dollars ($5,000) per year; and
34 (2) a total of fifteen thousand dollars ($15,000) per new
35 remote worker over the life of the program.
36 (c) A new remote worker is not eligible for a grant if their
37 employer receives a credit under IC 6-3.1-13-17.
38 Sec. 3. The corporation shall award grants under the program
39 on a first-come, first-served basis, subject to available funding, as
40 follows:
41 (1) Not more than one million dollars ($1,000,000) in fiscal
42 year 2023; and
SB 361—LS 7135/DI 120 4
1 (2) Not more than one million five hundred thousand dollars
2 ($1,500,000) in fiscal year 2024.
3 Sec. 4. (a) The corporation shall:
4 (1) adopt procedures for implementing the program;
5 (2) promote awareness for the program, including through
6 coordination with relevant trade groups and by integration
7 into the corporation's marketing efforts; and
8 (3) adopt measurable goals, performance measures, and an
9 audit strategy to assess the utilization and performance of the
10 program.
11 (b) On or before October 1, 2024, the corporation shall submit
12 a report to the general assembly, in an electronic format under
13 IC 5-14-6, concerning the implementation of the new remote
14 worker grant program under this section, including:
15 (1) a description of the procedures adopted pursuant to
16 subsection (a)(1);
17 (2) the promotion and marketing of the program pursuant to
18 subsection (a)(2);
19 (3) any additional recommendations for qualifying remote
20 worker expenses or qualifying workers that should be eligible
21 under the program; and
22 (4) any recommendations for the maximum amount of the
23 grant.
24 SECTION 5. IC 6-3-2-27 IS ADDED TO THE INDIANA CODE
25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
26 1, 2023]: Sec. 27. (a) If an employer is claiming an exemption from
27 the requirements of IC 6-3-4-8 as provided in IC 6-3-4-8.6, a
28 taxpayer is entitled to a deduction equal to the taxes owed on the
29 wages paid by the employer to the taxpayer.
30 (b) To claim the deduction, the taxpayer shall include a copy of
31 the employer's exemption certificate with the taxpayer's annual tax
32 return.
33 SECTION 6. IC 6-3-4-8, AS AMENDED BY P.L.159-2021,
34 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2023]: Sec. 8. (a) Except as provided in subsection
36 subsections (d) and (m), every employer making payments of wages
37 subject to tax under this article, regardless of the place where such
38 payment is made, who is required under the provisions of the Internal
39 Revenue Code to withhold, collect, and pay over income tax on wages
40 paid by such employer to such employee, shall, at the time of payment
41 of such wages, deduct and retain therefrom the amount prescribed in
42 withholding instructions issued by the department. The department
SB 361—LS 7135/DI 120 5
1 shall base its withholding instructions on the adjusted gross income tax
2 rate for persons, on the total local income tax rate that the taxpayer is
3 subject to under IC 6-3.6, and on the total amount of exclusions the
4 taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
5 However, the withholding instructions on the adjusted gross income of
6 a nonresident alien (as defined in Section 7701 of the Internal Revenue
7 Code) are to be based on applying not more than one (1) withholding
8 exclusion, regardless of the total number of exclusions that
9 IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
10 on the taxpayer's final return for the taxable year. Such employer
11 making payments of any wages:
12 (1) shall be liable to the state of Indiana for the payment of the tax
13 required to be deducted and withheld under this section and shall
14 not be liable to any individual for the amount deducted from the
15 individual's wages and paid over in compliance or intended
16 compliance with this section; and
17 (2) shall make return of and payment to the department monthly
18 of the amount of tax which under this article and IC 6-3.6 the
19 employer is required to withhold.
20 (b) An employer shall pay taxes withheld under subsection (a)
21 during a particular month to the department no later than thirty (30)
22 days after the end of that month. However, in place of monthly
23 reporting periods, the department may permit an employer to report and
24 pay the tax for a calendar year reporting period, if the average monthly
25 amount of all tax required to be withheld by the employer in the
26 previous calendar year does not exceed one thousand dollars ($1,000).
27 An employer using a reporting period (other than a monthly reporting
28 period) must file the employer's return and pay the tax for a reporting
29 period no later than the last day of the month immediately following
30 the close of the reporting period.
31 (c) For purposes of determining whether an employee is subject to
32 taxation under IC 6-3.6, an employer is entitled to rely on the statement
33 of an employee as to the employee's county of residence as represented
34 by the statement of address in forms claiming exemptions for purposes
35 of withholding, regardless of when the employee supplied the forms.
36 Every employee shall notify the employee's employer within five (5)
37 days after any change in the employee's county of residence.
38 (d) A county that makes payments of wages subject to tax under this
39 article:
40 (1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
41 (2) for the performance of the duties of the precinct election
42 officer imposed by IC 3 that are performed on election day;
SB 361—LS 7135/DI 120 6
1 is not required, at the time of payment of the wages, to deduct and
2 retain from the wages the amount prescribed in withholding
3 instructions issued by the department.
4 (e) Every employer shall, at the time of each payment made by the
5 employer to the department, deliver to the department a return upon the
6 form prescribed by the department showing, with regard to wages paid
7 to the employer's employees:
8 (1) the amount of adjusted gross income tax deducted therefrom
9 in accordance with the provisions of this section;
10 (2) the amount of income tax, if any, imposed under IC 6-3.6 and
11 deducted therefrom in accordance with this section; and
12 (3) any other information the department may require.
13 Every employer making a declaration of withholding as provided in this
14 section shall furnish the employer's employees annually, but not later
15 than thirty (30) days after the end of the calendar year, a record of the
16 total amount of adjusted gross income tax and the amount of each
17 income tax, if any, imposed under IC 6-3.6, withheld from the
18 employees, on the forms prescribed by the department. In addition, the
19 employer shall file Form WH-3 annual withholding tax reports with the
20 department not later than thirty-one (31) days after the end of the
21 calendar year.
22 (f) All money deducted and withheld by an employer shall
23 immediately upon such deduction be the money of the state, and every
24 employer who deducts and retains any amount of money under the
25 provisions of this article shall hold the same in trust for the state of
26 Indiana and for payment thereof to the department in the manner and
27 at the times provided in this article. Any employer may be required to
28 post a surety bond in the sum the department determines to be
29 appropriate to protect the state with respect to money withheld pursuant
30 to this section.
31 (g) The provisions of IC 6-8.1 relating to additions to tax in case of
32 delinquency and penalties shall apply to employers subject to the
33 provisions of this section, and for these purposes any amount deducted
34 or required to be deducted and remitted to the department under this
35 section shall be considered to be the tax of the employer, and with
36 respect to such amount the employer shall be considered the taxpayer.
37 In the case of a corporate or partnership employer, every officer,
38 employee, or member of such employer, who, as such officer,
39 employee, or member is under a duty to deduct and remit such taxes,
40 shall be personally liable for such taxes, penalties, and interest.
41 (h) Amounts deducted from wages of an employee during any
42 calendar year in accordance with the provisions of this section shall be
SB 361—LS 7135/DI 120 7
1 considered to be in part payment of the tax imposed on such employee
2 for the employee's taxable year which begins in such calendar year, and
3 a return made by the employer under subsection (b) shall be accepted
4 by the department as evidence in favor of the employee of the amount
5 so deducted from the employee's wages. Where the total amount so
6 deducted exceeds the amount of tax on the employee as computed
7 under this article and IC 6-3.6, the department shall, after examining
8 the return or returns filed by the employee in accordance with this
9 article and IC 6-3.6, refund the amount of the excess deduction.
10 However, under rules promulgated by the department, the excess or any
11 part thereof may be applied to any taxes or other claim due from the
12 taxpayer to the state of Indiana or any subdivision thereof. In the event
13 that the excess tax deducted is less than one dollar ($1), no refund shall
14 be made.
15 (i) This section shall in no way relieve any taxpayer from the
16 taxpayer's obligation of filing a return or returns at the time required
17 under this article and IC 6-3.6, and, should the amount withheld under
18 the provisions of this section be insufficient to pay the total tax of such
19 taxpayer, such unpaid tax shall be paid at the time prescribed by
20 section 5 of this chapter.
21 (j) Notwithstanding subsection (b), an employer of a domestic
22 service employee that enters into an agreement with the domestic
23 service employee to withhold federal income tax under Section 3402
24 of the Internal Revenue Code may withhold Indiana income tax on the
25 domestic service employee's wages on the employer's Indiana
26 individual income tax return in the same manner as allowed by Section
27 3510 of the Internal Revenue Code.
28 (k) To the extent allowed by Section 1137 of the Social Security
29 Act, an employer of a domestic service employee may report and remit
30 state unemployment insurance contributions on the employee's wages
31 on the employer's Indiana individual income tax return in the same
32 manner as allowed by Section 3510 of the Internal Revenue Code.
33 (l) A person who knowingly fails to remit trust fund money as set
34 forth in this section commits a Level 6 felony.
35 (m) Subject to the limitations of this chapter, an employer
36 within an innovation development district designated under
37 IC 36-7-32.5 that:
38 (1) maintains a fixed place of business within the innovation
39 development district; and
40 (2) makes payments of wages subject to tax under this article
41 to a new employee (as defined in IC 6-3.1-13-6) for
42 performance of the duties of the new employee;
SB 361—LS 7135/DI 120 8
1 is not required, at the time of payment of the wages to the new
2 employee, to deduct and retain from the wages the amount
3 prescribed in withholding instructions issued by the department.
4 SECTION 7. IC 6-3-4-8.6 IS ADDED TO THE INDIANA CODE
5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
6 1, 2023]: Sec. 8.6. (a) Subject to the requirements of this section and
7 as provided in section 8(m) of this chapter, an employer that
8 maintains a fixed place of business within an innovation
9 development district established under IC 36-7-32.5 for the
10 payment of wages subject to tax under this article to new
11 employees (as defined in IC 6-3.1-13-6) is exempt from the
12 requirements of section 8 of this chapter for wages paid to new
13 employees employed within the innovation development district.
14 (b) An employer meeting the requirements of this section and
15 section 8(m) of this chapter may apply to the Indiana economic
16 development corporation and the department to receive an
17 exemption under this section. The application shall be on a form
18 prescribed by the department.
19 (c) The department, in consultation with the Indiana economic
20 development corporation, may grant an exemption to an employer
21 if the department determines the employer meets the requirements
22 of this section and section 8(m) of this chapter.
23 (d) If the department grants an employer an exemption, the
24 employer shall report annually on the wages paid to new employees
25 within the innovation development district on a form prescribed by
26 the department.
27 (e) An exemption granted under this chapter shall not last
28 longer than the latest of:
29 (1) December 31, 2027;
30 (2) six (6) years after the establishment of an innovation
31 development district in which the employer already has
32 operations; or
33 (3) six (6) years after the employer establishes a fixed place of
34 business within an innovation development district.
35 (f) If an employer is exempt from the requirements of section 8
36 of this chapter, the employer shall annually provide a copy of its
37 exemption certificate to each new employee during the term of the
38 exemption.
39 (g) An employer who knowingly fails to annually provide a new
40 employee a copy of its exemption certificate during the term of the
41 exemption commits a Level 6 felony.
42 SECTION 8. IC 6-3-5-5 IS ADDED TO THE INDIANA CODE AS
SB 361—LS 7135/DI 120 9
1 A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2 2023]: Sec. 5. (a) If the Indiana economic development corporation
3 established by IC 5-28 enters into an agreement with a taxpayer
4 for an economic development for a growing economy tax credit
5 under IC 6-3.1-13, and the taxpayer elects to forgo claiming the
6 credit against any state tax liability for that taxable year and
7 requests the department to remit to the taxpayer an amount equal
8 to the credit for the taxable year as set forth under
9 IC 6-3.1-13-20(b), the provisions of this section shall apply.
10 (b) Before making a payment to a taxpayer under this section,
11 the department shall request from the taxpayer:
12 (1) a copy of the taxpayer's agreement with the Indiana
13 economic development corporation;
14 (2) the credit awarded to the taxpayer for that taxable year;
15 and
16 (3) any other information required by the department.
17 (c) A payment by the department cannot exceed the actual
18 incremental income tax withholdings collected by the department
19 as a result of the employment of new employees subject to an
20 agreement entered into under IC 6-3.1-13.
21 (d) The amount needed to make a payment under this section is
22 appropriated from the state general fund.
23 SECTION 9. IC 6-3.1-13-17, AS AMENDED BY P.L.197-2005,
24 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2023]: Sec. 17. (a) If the applicant proposes a project that
26 will be located at a physical location in Indiana, in determining the
27 credit amount that should be awarded to an applicant under section 15
28 of this chapter that proposes a project to create jobs in Indiana, the
29 corporation may take into consideration the following factors:
30 (1) The economy of the county where the projected investment is
31 to occur.
32 (2) The potential impact on the economy of Indiana.
33 (3) The incremental payroll attributable to the project.
34 (4) The capital investment attributable to the project.
35 (5) The amount the average wage paid by the applicant exceeds
36 the average wage paid:
37 (A) within the county in which the project will be located, in
38 the case of an application submitted before January 1, 2006; or
39 (B) in the case of an application submitted after December 31,
40 2005:
41 (i) to all employees working in the same NAICS industry
42 sector to which the applicant's business belongs in the
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1 county in which the applicant's business is located, if there
2 is more than one (1) business in that NAICS industry sector
3 in the county in which the applicant's business is located;
4 (ii) to all employees working in the same NAICS industry
5 sector to which the applicant's business belongs in Indiana,
6 if the applicant's business is the only business in that NAICS
7 industry sector in the county in which the applicant's
8 business is located but there is more than one (1) business in
9 that NAICS industry sector in Indiana; or
10 (iii) to all employees working in the same county as the
11 county in which the applicant's business is located, if there
12 is no other business in Indiana in the same NAICS industry
13 sector to which the applicant's business belongs.
14 (6) The costs to Indiana and the affected political subdivisions
15 with respect to the project.
16 (7) The financial assistance and incentives that are otherwise
17 provided by Indiana and the affected political subdivisions.
18 (8) The extent to which the incremental income tax withholdings
19 attributable to the applicant's project are needed for the purposes
20 of an incremental tax financing fund or industrial development
21 fund under IC 36-7-13 or a certified technology park fund under
22 IC 36-7-32.
23 As appropriate, the corporation shall consider the factors in this section
24 subsection to determine the credit amount awarded to an applicant for
25 a project to retain existing jobs in Indiana under section 15.5 of this
26 chapter.
27 (b) Subject to the limitations of subsection (c), if an applicant
28 proposes a project that proposes to create new jobs in Indiana but
29 does not propose a physical location in Indiana, the corporation
30 may consider the following factors:
31 (1) The potential impact on the economy in Indiana.
32 (2) The incremental payroll attributable to the project.
33 (3) The amount of average wage paid by the applicant that
34 exceeds the average wage paid to all employees working in the
35 same NAICS industry sector to which the applicant's business
36 belongs in Indiana.
37 (4) The cost to Indiana with respect to the project.
38 (5) The financial assistance and incentives that are otherwise
39 provided by Indiana.
40 (6) The extent of Indiana income tax that is paid by eligible
41 employees.
42 (c) An applicant proposing a project that meets the
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1 requirements of subsection (b) must propose:
2 (1) to create at least fifty (50) new full-time jobs; and
3 (2) to pay an average hourly wage of at least one hundred fifty
4 percent (150%) of the state average wage;
5 in order to be eligible to receive a credit under this chapter.
6 SECTION 10. IC 6-3.1-13-18, AS AMENDED BY P.L.86-2018,
7 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 18. (a) The corporation shall determine the
9 amount and duration of a tax credit awarded under this chapter. The
10 duration of the credit may not exceed ten (10) twenty (20) taxable
11 years. The credit may be stated as a percentage of the incremental
12 income tax withholdings attributable to the applicant's project and may
13 include a fixed dollar limitation. In the case of a credit awarded for a
14 project to create new jobs in Indiana, the credit amount may not exceed
15 the incremental income tax withholdings. However, the credit amount
16 claimed for a taxable year may exceed the taxpayer's state tax liability
17 for the taxable year, in which case the excess may, at the discretion of
18 the corporation, be refunded to the taxpayer.
19 (b) For state fiscal year 2006 and each state fiscal year thereafter,
20 the aggregate amount of credits awarded under this chapter for projects
21 to retain existing jobs in Indiana may not exceed ten million dollars
22 ($10,000,000) per year.
23 (c) This subsection does not apply to a business that was enrolled
24 and participated in the E-Verify program (as defined in IC 22-5-1.7-3)
25 during the time the taxpayer conducted business in Indiana in the
26 taxable year. A credit under this chapter may not be computed on any
27 amount withheld from an individual or paid to an individual for
28 services provided in Indiana as an employee, if the individual was,
29 during the period of service, prohibited from being hired as an
30 employee under 8 U.S.C. 1324a.
31 SECTION 11. IC 6-3.1-13-20, AS AMENDED BY P.L.4-2005,
32 SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2023]: Sec. 20. (a) Except as provided in subsection (b), a
34 taxpayer claiming a credit under this chapter must claim the credit on
35 the taxpayer's annual state tax return or returns in the manner
36 prescribed by the department of state revenue. The taxpayer shall
37 submit to the department of state revenue all information that the
38 department determines necessary for the calculation of the credit
39 provided by this chapter and the determination of whether the credit
40 was properly claimed.
41 (b) Notwithstanding subsection (a), if a taxpayer is entitled to a
42 credit under this chapter, the taxpayer may, with the approval of
SB 361—LS 7135/DI 120 12
1 the corporation, elect to forgo claiming the credit against any state
2 tax liability and submit the credit to the department with a request
3 to receive a payment from the department equal to the credit for
4 that taxable year as provided in IC 6-3-5-5.
5 SECTION 12. IC 6-3.1-26-20, AS AMENDED BY P.L.158-2019,
6 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2023]: Sec. 20. (a) The corporation shall certify the amount
8 of the qualified investment that is eligible for a credit under this
9 chapter. In determining the credit amount that should be awarded, the
10 corporation shall grant a credit only for the amount of the qualified
11 investment that is directly related to:
12 (1) expanding the workforce in Indiana; or
13 (2) substantially enhancing the logistics industry and or
14 improving the overall Indiana economy.
15 (b) The total amount of credits that the corporation may approve
16 under this chapter for a state fiscal year for all taxpayers for all
17 qualified investments is:
18 (1) fifty million dollars ($50,000,000) for credits based on a
19 qualified investment that is not being claimed as a logistics
20 investment; and
21 (2) five million dollars ($5,000,000) for credits based on a
22 qualified investment that is being claimed as a logistics
23 investment.
24 For purposes of applying the limit under this subsection, a tax credit
25 that is accelerated under section 15(d) or 16(d) of this chapter shall be
26 valued at the amount of the tax credit before the tax credit is
27 discounted.
28 (c) (b) A person that desires to claim a tax credit for a qualified
29 investment shall file with the department, in the form that the
30 department may prescribe, an application:
31 (1) stating separately the amount of the credit awards for qualified
32 investments that have been granted to the taxpayer by the
33 corporation that will be claimed as a credit; that is covered by:
34 (A) subsection (b)(1); and
35 (B) subsection (b)(2);
36 (2) stating separately the amount sought to be claimed as a credit;
37 that is covered by:
38 (A) subsection (b)(1); and
39 (B) subsection (b)(2); and
40 (3) identifying whether the credit will be claimed during the state
41 fiscal year in which the application is filed or the immediately
42 succeeding state fiscal year.
SB 361—LS 7135/DI 120 13
1 (d) (c) The department shall separately record the time of filing of
2 each application for a credit award for a qualified investment covered
3 by subsection (b)(1) and for a qualified investment covered by
4 subsection (b)(2) and shall, except as provided in subsection (e), (d),
5 approve the credit to the taxpayer in the chronological order in which
6 the application is filed in the state fiscal year. The department shall
7 promptly notify an applicant whether, or the extent to which, the tax
8 credit is allowable in the state fiscal year proposed by the taxpayer.
9 (e) (d) If the total credit awards for qualified investments, that are
10 covered by:
11 (1) subsection (b)(1); and
12 (2) subsection (b)(2);
13 including carryover credit awards covered by each subsection for a
14 previous state fiscal year, equal the maximum amount allowable in the
15 state fiscal year, an application for such a credit award that is filed later
16 for that same state fiscal year may not be granted by the department.
17 However, if an applicant for which a credit has been awarded and
18 applied for with the department fails to claim the credit, an amount
19 equal to the credit previously applied for but not claimed may be
20 allowed to the next eligible applicant or applicants until the total
21 amount has been allowed.
22 SECTION 13. IC 6-3.1-30-8, AS AMENDED BY P.L.158-2019,
23 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2023]: Sec. 8. (a) Subject to entering into an agreement with
25 the corporation under sections 14 and 15 of this chapter, if the
26 corporation certifies that a taxpayer:
27 (1) is an eligible business;
28 (2) completes a qualifying project; and
29 (3) incurs relocation costs; and
30 (4) employs:
31 (A) at least seventy-five (75) employees in Indiana, in the case
32 of a taxpayer that qualifies as an eligible business under
33 section 2(1) of this chapter; or
34 (B) at least ten (10) employees in Indiana, in the case of a
35 taxpayer that qualifies as an eligible business under section
36 2(2) of this chapter;
37 the taxpayer is entitled to a credit against the taxpayer's state tax
38 liability for the taxable year in which the relocation costs are incurred.
39 subject to subsection (c). The credit allowed under this section is equal
40 to the amount determined under section 9 of this chapter.
41 (b) For purposes of establishing the employment level required by
42 subsection (a)(4), a taxpayer may include:
SB 361—LS 7135/DI 120 14
1 (1) individuals who:
2 (A) were employed in Indiana by the taxpayer before the
3 taxpayer commenced a qualifying project; and
4 (B) remain employed in Indiana after the completion of the
5 taxpayer's qualifying project; and
6 (2) individuals who:
7 (A) were not employed in Indiana by the taxpayer before the
8 taxpayer commenced a qualifying project; and
9 (B) are employed in Indiana by the taxpayer as a result of the
10 completion of the taxpayer's qualifying project.
11 (c) The total amount of credits that may be approved by the
12 corporation for all eligible businesses described in section 2(2) of this
13 chapter may not exceed five million dollars ($5,000,000) in a state
14 fiscal year.
15 SECTION 14. IC 6-3.1-34-6, AS AMENDED BY P.L.154-2020,
16 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2023]: Sec. 6. As used in this chapter, "qualified
18 redevelopment site" means a vacant or underutilized property in
19 Indiana as determined by the corporation.
20 (1) land on which a vacant building or complex of buildings was
21 placed in service at least fifteen (15) years before the date on
22 which the application is filed with the corporation under this
23 chapter;
24 (2) land on which a vacant building or complex of buildings:
25 (A) was placed in service at least fifteen (15) years before the
26 date on which the demolition of the vacant building or
27 complex of buildings was completed; and
28 (B) that was demolished in an effort to protect the health,
29 safety, and welfare of the community;
30 (3) land on which a vacant building or complex of buildings:
31 (A) was placed in service at least fifteen (15) years before the
32 date on which the demolition of the vacant building or
33 complex of buildings was completed;
34 (B) was placed in service as a public building;
35 (C) was owned by a unit of local government; and
36 (D) has not been redeveloped since the building was taken out
37 of service as a public building;
38 (4) vacant land;
39 (5) mine reclamation site; or
40 (6) brownfields consisting of more than fifty (50) acres.
41 For a complex of buildings to be considered a qualified redevelopment
42 site under subdivision (1), (2) or (3), the buildings must have been
SB 361—LS 7135/DI 120 15
1 located on a single parcel or contiguous parcels of land that were under
2 common ownership at the time the site was placed in service.
3 SECTION 15. IC 6-3.1-34-8, AS ADDED BY P.L.158-2019,
4 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 8. As used in this chapter, "rehabilitation" means
6 the betterment of real property including remodeling or repair. in any
7 way.
8 SECTION 16. IC 6-3.1-34-17, AS AMENDED BY P.L.154-2020,
9 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 17. (a) The following apply if the corporation
11 determines that a credit should be awarded under this chapter:
12 (1) The corporation shall require the taxpayer to enter into an
13 agreement with the corporation as a condition of receiving a
14 credit under this chapter.
15 (2) The agreement with the corporation must:
16 (A) prescribe the method of certifying the taxpayer's qualified
17 investment; and
18 (B) include provisions that authorize the corporation to work
19 with the department and the taxpayer, if the corporation
20 determines that the taxpayer is noncompliant with the terms of
21 the agreement or the provisions of this chapter, to bring the
22 taxpayer into compliance or to protect the interests of the state.
23 (3) The corporation shall specify the taxpayer's expenditures that
24 will be considered a qualified investment.
25 (4) The corporation shall determine the applicable credit
26 percentage under subsections (b) and (c).
27 (b) If the corporation determines that a credit should be awarded
28 under this chapter, the corporation shall determine the applicable credit
29 percentage for a qualified investment certified by the corporation.
30 However, and except as provided in subsection (c), the applicable
31 credit percentage may not exceed the following: thirty percent (30%).
32 (1) If the qualified redevelopment site was placed in service at
33 least fifteen (15) years ago but less than thirty (30) years ago, or
34 is vacant land or a brownfield described in section 6(6) of this
35 chapter:
36 (A) fifteen percent (15%), if the qualified redevelopment site
37 is part of a development plan of a regional development
38 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
39 (B) ten percent (10%), if the qualified redevelopment site is
40 not part of a development plan of a regional development
41 authority described under clause (A).
42 (2) If the qualified redevelopment site was placed in service at
SB 361—LS 7135/DI 120 16
1 least thirty (30) years ago but less than forty (40) years ago:
2 (A) twenty percent (20%), if the qualified redevelopment site
3 is part of a development plan of a regional development
4 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
5 (B) ten percent (10%), if the qualified redevelopment site is
6 not part of a development plan of a regional development
7 authority described under clause (A).
8 (3) If the qualified redevelopment site was placed in service at
9 least forty (40) years ago:
10 (A) twenty-five percent (25%), if the qualified redevelopment
11 site is part of a development plan of a regional development
12 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
13 (B) fifteen percent (15%), if the qualified redevelopment site
14 is not part of a development plan of a regional development
15 authority described under clause (A).
16 (c) The corporation may increase the credit amount by not more
17 than an additional five percent (5%) if:
18 (1) the qualified redevelopment site is located in a federally
19 designated qualified opportunity zone (Section 1400Z-1 and
20 1400Z-2 of the Internal Revenue Code); or
21 (2) the project qualifies for federal new markets tax credits under
22 Section 45D of the Internal Revenue Code.
23 (d) To be eligible for the credit for a qualified investment, a
24 taxpayer's expenditures that are considered a qualified investment must
25 be certified by the corporation not later than two (2) taxable years after
26 the end of the calendar year in which the taxpayer's expenditures are
27 made.
28 SECTION 17. IC 6-3.1-34-18, AS ADDED BY P.L.158-2019,
29 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2023]: Sec. 18. (a) Subject to subsection (e), If the
31 corporation awards a tax credit to a taxpayer under this chapter
32 that exceeds twenty million dollars ($20,000,000), the corporation
33 shall include in an agreement entered into under section 17 of this
34 chapter a provision that requires the taxpayer to repay to the
35 corporation the portion of the credit that exceeds twenty million
36 dollars ($20,000,000) with interest. may, as part of an agreement
37 entered into under section 17 of this chapter:
38 (1) require a taxpayer to repay all or part of a credit awarded
39 under this chapter over a period of years; and
40 (2) limit the maximum amount of a credit awarded to a taxpayer
41 under this chapter that may be claimed during a taxable year.
42 (b) The corporation may elect to enter into an agreement with a
SB 361—LS 7135/DI 120 17
1 local unit that has jurisdiction over the real property that is subject to
2 the proposed qualified investment, through which such agreement the
3 local unit commits local revenue generated by the project to the
4 corporation rather than the corporation including a repayment provision
5 in an agreement with a taxpayer under subsection (a)(1). The total
6 amount of revenue committed under an agreement entered into under
7 this subsection may not exceed the credit repayment amount
8 determined under subsection (a)(1). Any amounts received under an
9 agreement entered into under this subsection shall be deposited in the
10 state general fund.
11 (c) Notwithstanding subsections (a) and (b), if the corporation
12 awards a tax credit to a taxpayer under this chapter that exceeds seven
13 million dollars ($7,000,000), the corporation shall include in an
14 agreement entered into under section 17 of this chapter a provision that
15 requires the taxpayer to repay the portion of the credit that exceeds
16 seven million dollars ($7,000,000).
17 (b) Notwithstanding subsection (a), the corporation may exclude
18 from its agreement entered into under section 17 of this chapter a
19 repayment provision for any portion of the credit if the award is
20 for a qualified redevelopment site subject to a proposal that will
21 result in a qualified investment of at least one hundred million
22 dollars ($100,000,000).
23 (d) (c) If the corporation enters into an agreement with a taxpayer
24 under section 17 of this chapter that includes a repayment provision
25 under subsection (a)(1) or (c), (a), the corporation shall include in the
26 repayment provision a provision establishing the interest rate that will
27 be applied. The interest rate shall be determined by the board and
28 approved by the budget agency. corporation at its discretion.
29 (e) (d) This subsection applies to an active multi-phased project
30 occurring on a defined footprint for which the taxpayer has received
31 approval for at least the first phase of the active multi-phased project
32 from the corporation's board before July 1, 2018, for a tax credit under
33 IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The
34 following apply to a project described in this subsection:
35 (1) Only qualified investments that are made after June 30, 2021,
36 are eligible for a credit award under this chapter.
37 (2) The annual amount of credits awarded under this chapter for
38 the project may not exceed five million dollars ($5,000,000).
39 (3) The corporation may not include a repayment provision as part
40 of an agreement entered into under section 17 of this chapter for
41 the credits awarded for the project.
42 SECTION 18. IC 6-3.1-34-22 IS REPEALED [EFFECTIVE JULY
SB 361—LS 7135/DI 120 18
1 1, 2023]. Sec. 22. (a) Except as provided in subsection (b), the total
2 amount of credits that the corporation may award under this chapter for
3 a state fiscal year for all taxpayers for all qualified investments is fifty
4 million dollars ($50,000,000). The portion of the credits that is subject
5 to a repayment provision under section 18(b) or 18(c) of this chapter is
6 not included in the calculation of the annual limit.
7 (b) If the corporation determines that a credit should be awarded
8 under this chapter for a taxpayer's qualified investment but the award:
9 (1) will result in the corporation's cumulative credit awards under
10 this chapter for a state fiscal year for all taxpayers for all qualified
11 investments to exceed the limit established by subsection (a); or
12 (2) should not be considered when calculating the corporation's
13 cumulative credit awards under this chapter for a state fiscal year
14 for all taxpayers for all qualified investments;
15 the corporation may, after review by the budget committee, enter into
16 an agreement with the taxpayer under section 17 of this chapter.
17 SECTION 19. IC 6-3.1-36 IS ADDED TO THE INDIANA CODE
18 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2023]:
20 Chapter 36. Film and Media Production Tax Credit
21 Sec. 1. As used in this chapter, "qualified applicant" means a
22 person, corporation, limited liability partnership, limited liability
23 company, or other entity that is engaged in the business of making
24 a qualified media production in Indiana.
25 Sec. 2. As used in this chapter, "qualified media production"
26 means:
27 (1) a feature length film, including an independent or studio
28 production, or a documentary;
29 (2) a television episodic series, program, or feature;
30 (3) a digital media production that is intended for reasonable
31 commercial exploitation; or
32 (4) any other similar production as determined by the
33 corporation;
34 that is produced in Indiana.
35 Sec. 3. As used in this chapter, "qualified production expenses"
36 means expenses incurred by a qualified applicant for a qualified
37 media production.
38 Sec. 4. As used in this chapter, "state tax liability" means a
39 taxpayer's total tax liability that is incurred under:
40 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
41 (2) IC 6-5.5 (the financial institutions tax); and
42 (3) IC 27-1-18-2 (the insurance premiums tax);
SB 361—LS 7135/DI 120 19
1 as computed after the application of the credits that under
2 IC 6-3.1-1-2 are to be applied before the credit provided by this
3 chapter.
4 Sec. 5. As used in this chapter, "taxpayer" means a qualified
5 applicant that has any state tax liability.
6 Sec. 6. (a) A qualified applicant may apply to the Indiana
7 economic development corporation for a tax credit under this
8 chapter. The corporation shall prescribe the form and contents of
9 the application.
10 (b) The corporation shall evaluate an applicant's eligibility for
11 a tax credit under this chapter.
12 (c) The corporation may certify the eligibility of a taxpayer that
13 meets the requirements for a tax credit under this chapter.
14 (d) If the corporation certifies a taxpayer under subsection (c),
15 the corporation shall determine the percentage used to calculate
16 the amount of a tax credit under section 7(2) of this chapter.
17 Sec. 7. If the corporation certifies a taxpayer under section 6(c)
18 of this chapter, the taxpayer is entitled to a tax credit under this
19 chapter equal to:
20 (1) the amount of the taxpayer's qualified production
21 expenses; multiplied by
22 (2) a percentage determined by the corporation.
23 Sec. 8. If a pass through entity is entitled to a credit under
24 section 7 of this chapter but does not have state tax liability against
25 which the tax credit may be applied, a shareholder, partner, or
26 member of the pass through entity is entitled to a tax credit equal
27 to:
28 (1) the tax credit determined for the pass through entity for
29 the taxable year; multiplied by
30 (2) the percentage of the pass through entity's distributive
31 income to which the shareholder, partner, or member is
32 entitled.
33 Sec. 9. To receive the credit provided by this chapter, a taxpayer
34 must claim the credit on the taxpayer's state tax return or returns
35 in the manner prescribed by the department.
36 Sec. 10. A tax credit awarded under this chapter is subject to the
37 limitations set forth in IC 5-28-6-9.
38 SECTION 20. IC 35-52-6-20.5 IS ADDED TO THE INDIANA
39 CODE AS A NEW SECTION TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2023]: Sec. 20.5. IC 6-3-4-8.6 defines a crime
41 concerning taxes.
42 SECTION 21. IC 36-7-32.5 IS ADDED TO THE INDIANA CODE
SB 361—LS 7135/DI 120 20
1 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2023]:
3 Chapter 32.5. Innovation Development Districts
4 Sec. 1. As used in this chapter, "base assessed value" means the
5 remainder of:
6 (1) the net assessed value of all the taxable real and personal
7 property located in an innovation development district as
8 finally determined for the assessment date immediately
9 preceding the effective date of the designation by the
10 corporation under section 8 of this chapter; plus
11 (2) to the extent it is not included in subdivision (1), the net
12 assessed value of property that is assessed as residential
13 property under the rules of the department of local
14 government finance, within the innovation development
15 district, as finally determined for the current assessment date.
16 Sec. 2. As used in this chapter, "gross retail base period
17 amount" means the aggregate amount of state gross retail and use
18 taxes remitted under IC 6-2.5 by the businesses operating in the
19 territory comprising an innovation development district during the
20 full state fiscal year that precedes the date on which the innovation
21 development district was designated under section 8 of this
22 chapter.
23 Sec. 3. As used in this chapter, "gross retail incremental
24 amount" means the remainder of:
25 (1) the aggregate amount of state gross retail and use taxes
26 that are remitted under IC 6-2.5 by businesses operating in
27 the territory comprising an innovation development district
28 during a state fiscal year; minus
29 (2) the gross retail base period amount;
30 as determined by the department of state revenue.
31 Sec. 4. As used in this chapter, "income tax base period
32 amount" means the aggregate amount of the following taxes paid
33 by employees employed in the territory comprising an innovation
34 development district with respect to wages and salary earned for
35 work in the innovation development district for the state fiscal year
36 that precedes the date on which the innovation development
37 district was designated under section 8 of this chapter:
38 (1) The adjusted gross income tax.
39 (2) The local income tax (IC 6-3.6).
40 Sec. 5. As used in this chapter, "income tax incremental
41 amount" means the remainder of:
42 (1) the total amount of state adjusted gross income taxes and
SB 361—LS 7135/DI 120 21
1 local income taxes paid by employees employed in the
2 territory comprising the innovation development district with
3 respect to wages and salary earned for work in the territory
4 comprising the innovation development district for a
5 particular state fiscal year; minus
6 (2) the sum of the:
7 (A) income tax base period amount; and
8 (B) tax credits awarded by the Indiana economic
9 development corporation under IC 6-3.1-13 to businesses
10 operating in an innovation development district as the
11 result of wages earned for work in the innovation
12 development district for the state fiscal year;
13 as determined by the department of state revenue.
14 Sec. 6. As used in this chapter, "net increment" means the sum
15 of:
16 (1) the gross retail incremental amount; and
17 (2) the income tax incremental amount;
18 as determined by the department of state revenue.
19 Sec. 7. (a) A unit may apply to the corporation for designation
20 of all or part of the territory within the jurisdiction of the unit's
21 redevelopment commission as an innovation development district
22 and to enter into an agreement governing the terms and conditions
23 of the designation. The application must be in a form specified by
24 the corporation and must include information the corporation
25 determines necessary to make the determinations required under
26 section 8 of this chapter.
27 (b) Multiple units may submit a joint application for designation
28 of all or part of the territory within each respective jurisdiction of
29 each unit's redevelopment commission as an innovation
30 development district and enter into an agreement governing the
31 terms and conditions of the designation. The application must be
32 in a form specified by the corporation and must include
33 information the corporation determines necessary to make the
34 determinations required under section 8 of this chapter.
35 (c) Notwithstanding subsections (a) and (b), the corporation
36 may designate all or part of the territory within the jurisdiction of
37 the unit's redevelopment commission as an innovation development
38 district. The unit shall enter into an agreement with the
39 redevelopment commission governing the terms and conditions of
40 the designation.
41 Sec. 8. (a) After June 30, 2023, the corporation may designate an
42 area as an innovation development district if the corporation
SB 361—LS 7135/DI 120 22
1 determines that the designation will support the acceleration of
2 economic growth in Indiana.
3 (b) Before the corporation designates an area as an innovation
4 development district, the unit, or units under section 7(b), the
5 corporation shall submit the application for review by the budget
6 committee.
7 (c) The corporation may not approve an application or
8 designate an area as an innovation development district if such a
9 designation would result in a substantial reduction or cessation of
10 operations in another location in Indiana in order to relocate them
11 within the innovation development district.
12 (d) The duration of a designation under this chapter may not
13 exceed an initial term of thirty (30) taxable years. The corporation
14 may extend its designation for up to an additional twenty (20) years
15 if the innovation development district generally conforms with the
16 performance metrics for job creation, capital investment, or
17 population growth, established when the district was designated
18 and as determined by the corporation.
19 (e) Notwithstanding any other provision of this chapter, an
20 innovation development district may not be established in an
21 existing allocation area established under IC 6-1.1-39, IC 36-7-14,
22 IC 36-7-15.1, IC 36-7-30, IC 36-7-30.5, IC 36-7-32, or any other
23 provision that authorizes the establishment of an allocation area.
24 Sec. 9. (a) A redevelopment commission may enter into an
25 agreement with the corporation establishing the terms and
26 conditions governing an innovation development district
27 designated under section 8 of this chapter. Upon designation of the
28 innovation development district under the terms of the agreement,
29 subsequent failure of any party to comply with the terms of the
30 agreement may result in the termination or rescission of the
31 designation of the area as an innovation development district.
32 (b) The agreement must include the following provisions:
33 (1) A description of the area to be included within the
34 innovation development district.
35 (2) Covenants and restrictions, if any, upon all or a part of the
36 properties contained within the innovation development
37 district and terms of enforcement of any covenants or
38 restrictions.
39 (3) The due diligence and financial commitments of any party
40 to the agreement and of any owner or developer of property
41 within the innovation development district.
SB 361—LS 7135/DI 120 23
1 (4) The financial projections of the innovation development
2 district, as determined by the corporation.
3 (5) The maximum net increment and property tax increment
4 amount that may be captured within the innovation
5 development district.
6 (6) The proposed use of the net increment and property tax
7 incremental amount captured within the innovation
8 development district.
9 (7) Subject to the limitations of this chapter, the duration of
10 the corporation's designation of an area as an innovation
11 development district.
12 (8) The terms of enforcement of the agreement, which may
13 include the definition of events of default, cure periods, legal
14 and equitable remedies and rights, and penalties and
15 damages, actual or liquidated, upon the occurrence of an
16 event of default.
17 (9) The public facilities to be developed for the innovation
18 development district and the costs of those public facilities, as
19 approved by the corporation.
20 Sec. 10. (a) If the corporation designates an area as an
21 innovation development district, the redevelopment commission
22 shall adopt a resolution designating an innovation development
23 district as an allocation area for purposes of the allocation and
24 distribution of property taxes.
25 (b) After adoption of the resolution under subsection (a), the
26 redevelopment commission shall:
27 (1) publish notice of the adoption and substance of the
28 resolution in accordance with IC 5-3-1; and
29 (2) file the following information with each taxing unit that
30 has authority to levy property taxes in the geographic area
31 where the innovation development district is located:
32 (A) A copy of the notice required under subdivision (1).
33 (B) A statement disclosing the impact of the innovation
34 development district, including the following:
35 (i) The estimated economic benefits and costs incurred
36 by the innovation development district, as measured by
37 increased employment and anticipated growth of real
38 and personal property assessed values.
39 (ii) The anticipated impact on tax revenues of each
40 taxing unit.
41 The notice must state the general boundaries of the innovation
42 development district and must state that written remonstrances
SB 361—LS 7135/DI 120 24
1 may be filed with the redevelopment commission until the time
2 designated for the hearing. The notice must also name the place,
3 date, and time when the redevelopment commission will receive
4 and hear remonstrances and objections from persons interested in
5 or affected by the proceedings pertaining to the proposed
6 allocation area and will determine the public utility and benefit of
7 the proposed allocation area. The commission shall file the
8 information required by subdivision (2) with the officers of the
9 taxing unit who are authorized to fix budgets, tax rates, and tax
10 levies under IC 6-1.1-17-5 at least ten (10) days before the date of
11 the public hearing. All persons affected in any manner by the
12 hearing, including all taxpayers within the taxing district of the
13 redevelopment commission, shall be considered notified of the
14 pendency of the hearing and of subsequent acts, hearings,
15 adjournments, and orders of the redevelopment commission
16 affecting the allocation area if the redevelopment commission gives
17 the notice required by this subsection.
18 (c) At the hearing, which may be recessed and reconvened
19 periodically, the redevelopment commission shall hear all persons
20 interested in the proceedings and shall consider all written
21 remonstrances and objections that have been filed. After
22 considering the evidence presented, the redevelopment commission
23 shall take final action determining the public utility and benefit of
24 the proposed allocation area confirming, modifying and
25 confirming, or rescinding the resolution. The final action taken by
26 the redevelopment commission shall be recorded and is final and
27 conclusive, except that an appeal may be taken in the manner
28 prescribed by section 11 of this chapter.
29 (d) If the redevelopment commission confirms, or modifies and
30 confirms, the resolution, the redevelopment commission shall file
31 a copy of the resolution with both the auditor of the county in
32 which the innovation development district is located and the
33 department of local government finance, together with any
34 supporting documents that are relevant to the computation of
35 assessed values in the allocation area, within thirty (30) days after
36 the date on which the redevelopment commission takes final action
37 on the resolution.
38 Sec. 11. (a) A person who files a written remonstrance with the
39 redevelopment commission under section 10 of this chapter and
40 who is aggrieved by the final action taken may, within ten (10) days
41 after that final action, file with the office of the clerk of the circuit
42 or superior court of the county a copy of the redevelopment
SB 361—LS 7135/DI 120 25
1 commission's resolution and the person's remonstrance against the
2 resolution, together with the person's bond as provided by
3 IC 34-13-5-7.
4 (b) An appeal under this section shall be promptly heard by the
5 court without a jury. All remonstrances upon which an appeal has
6 been taken shall be consolidated and heard and determined within
7 thirty (30) days after the time of filing of the appeal. The court
8 shall decide the appeal based on the record and evidence before the
9 redevelopment commission, not by trial de novo, and may confirm
10 the final action of the redevelopment commission or sustain the
11 remonstrances. The judgment of the court is final and conclusive,
12 unless an appeal is taken as in other civil actions.
13 Sec. 12. (a) An allocation provision adopted under section 10 of
14 this chapter must:
15 (1) apply to the entire innovation development district; and
16 (2) require that any property tax assessed after December 31,
17 2023, and on taxable property subsequently levied by or for
18 the benefit of any public body entitled to a distribution of
19 property taxes in the innovation development district be
20 allocated and distributed as provided in subsections (b) and
21 (c).
22 (b) Except as otherwise provided in this section:
23 (1) the proceeds of the taxes attributable to the lesser of:
24 (A) the assessed value of the taxable property for the
25 assessment date with respect to which the allocation and
26 distribution is made; or
27 (B) the base assessed value;
28 shall be allocated and, when collected, paid into the funds of
29 the respective taxing units; and
30 (2) the excess of the proceeds of the property taxes imposed
31 for the assessment date with respect to which the allocation
32 and distribution is made that are attributable to taxes
33 imposed after being approved by the voters in a referendum
34 or local public question conducted after April 30, 2010, not
35 otherwise included in subdivision (1) shall be allocated to and,
36 when collected, paid into the funds of the taxing unit for
37 which the referendum or local public question was conducted.
38 (c) Except provided in subsections (d) and (e), all the property
39 tax proceeds that exceed those described in subsection (b) shall be
40 allocated to the redevelopment commission for the innovation
41 development district and, when collected, paid into the innovation
42 development district fund established by section 17 of this chapter.
SB 361—LS 7135/DI 120 26
1 (d) The corporation may enter into an agreement with the
2 redevelopment commission that permits the redevelopment
3 commission to retain ten percent (10%) of the new incremental
4 property tax proceeds that exceed those described in subsection (b)
5 for use by the redevelopment commission in accordance with the
6 requirements of IC 36-7-14.
7 (e) Notwithstanding any other law, each assessor shall, upon
8 petition of the corporation, reassess the taxable property situated
9 upon or in, or added to, the innovation development district
10 effective on the next assessment date after the petition.
11 (f) Notwithstanding any other law, the assessed value of all
12 taxable property in the innovation development district, for
13 purposes of tax limitation, property tax replacement, and
14 formulation of the budget, tax rate, and tax levy for each political
15 subdivision in which the property is located is the lesser of:
16 (1) the assessed value of the taxable property as valued
17 without regard to this section; or
18 (2) the base assessed value.
19 Sec. 13. The corporation or a redevelopment commission may
20 enter into a written agreement with a taxpayer who owns, or is
21 otherwise obligated to pay property taxes on, tangible property
22 that is or will be located in an allocation area established under this
23 chapter in which the taxpayer waives review of any assessment of
24 the taxpayer's tangible property that is located in the allocation
25 area for an assessment date that occurs during the term of any
26 specified bond or lease obligations that are payable, in whole or in
27 part, from property taxes in accordance with an allocation
28 provision for the allocation area and any applicable statute,
29 ordinance, or resolution. An agreement described in this section
30 may precede the establishment of the allocation area or the
31 determination to issue bonds or enter into leases payable from the
32 allocated property taxes.
33 Sec. 14. (a) The state board of accounts and department of local
34 government finance shall make the rules and prescribe the forms
35 and procedures that the state board of accounts and department of
36 local government finance consider appropriate for the
37 implementation of an allocation area under this chapter.
38 (b) After each reassessment of real property in an area under a
39 county's reassessment plan prepared under IC 6-1.1-4-4.2, the
40 department of local government finance shall adjust the base
41 assessed value one (1) time to neutralize any effect of the
42 reassessment of the real property in the area on the property tax
SB 361—LS 7135/DI 120 27
1 proceeds allocated to the innovation development district fund
2 under section 17 of this chapter. After each annual adjustment
3 under IC 6-1.1-4-4.5, the department of local government finance
4 shall adjust the base assessed value to neutralize any effect of the
5 annual adjustment on the property tax proceeds allocated to the
6 innovation development district fund established by section 17 of
7 this chapter.
8 Sec. 15. (a) After entering into an agreement under section 9 of
9 this chapter, the redevelopment commission shall send to the
10 department of state revenue:
11 (1) a certified copy of the designation of the innovation
12 development district under section 8 of this chapter;
13 (2) a certified copy of the agreement entered into under
14 section 9 of this chapter; and
15 (3) a complete list of the employers in the innovation
16 development district and the street names and the range of
17 street numbers of each street in the innovation development
18 district.
19 The redevelopment commission shall update the list provided
20 under subdivision (3) before July 1 of each year.
21 (b) Not later than sixty (60) days after receiving a copy of the
22 designation of the innovation development district, the department
23 of state revenue shall determine the gross retail base period
24 amount and the income tax base period amount.
25 Sec. 16. (a) Before the first business day in October of each year,
26 the department of state revenue shall calculate the income tax
27 incremental amount and the gross retail incremental amount for
28 the preceding state fiscal year for each innovation development
29 district designated under this chapter.
30 (b) Taxpayers operating in an innovation development district
31 shall report annually, in the manner and form prescribed by the
32 department of state revenue, information that the department
33 determines necessary to calculate the net increment.
34 (c) A taxpayer operating in an innovation development district
35 that files a consolidated tax return with the department of state
36 revenue shall also file annually an informational return with the
37 department of state revenue for each business location of the
38 taxpayer within the innovation development district.
39 (d) If a taxpayer fails to report the information required by this
40 section or file an informational return required by this section, the
41 department of state revenue shall use the best information
SB 361—LS 7135/DI 120 28
1 available in calculating the income tax incremental amount and
2 gross retail incremental amount.
3 (e) The department of state revenue shall transfer the amount
4 calculated as provided in subsection (a) to the innovation
5 development district fund established by section 17 of this chapter
6 by November 1 of each year.
7 Sec. 17. (a) The innovation development district fund is
8 established within the state treasury to provide grants or loans to
9 support the development or expansion of an advanced industry in
10 Indiana.
11 (b) The fund consists of:
12 (1) Transfers from the general fund by the department of
13 state revenue as provided in section 16 this chapter.
14 (2) Transfers from a redevelopment commission as provided
15 in section 12 of this chapter.
16 (3) Loan repayments, including earnings from loans under
17 subsection (d).
18 (c) The corporation shall administer the fund. The following
19 may be paid from money in the fund:
20 (1) Expense of administering the fund.
21 (2) Nonrecurring administrative expenses incurred to carry
22 out the purposes of this chapter.
23 (d) Earnings from loans made under this chapter shall be
24 deposited in the fund.
25 (e) The corporation may make grants, loans, or investments
26 from the fund for the following purposes:
27 (1) For the purposes identified in IC 36-7-32-23(b).
28 (2) For the acquisition and improvement of land or other
29 property and to support the expansion of industry in the state.
30 (3) For the acquisition, development or investment in
31 business, technologies, equipment, or products that have
32 potential for economic growth and expansion in the state.
33 (4) For the development of partnerships, including grants and
34 loans, between the state, advanced industry and higher
35 educational institutions focused on development, expansion,
36 or retention in the state in the interest of economic
37 development.
38 (5) For the stimulation of investments in entrepreneurial or
39 high growth potential companies in the state.
40 (6) For technology and equipment modernization and
41 development, and training assistance in the state.
SB 361—LS 7135/DI 120 29
1 (7) For any other purpose determined by the corporation that
2 supports the development or expansion of industry in the
3 state.
4 Sec. 18. (a) Money in the innovation development district fund
5 established by section 17 of this chapter at the end of the state
6 fiscal year does not revert to the state general fund.
7 (b) Money in the fund is continuously appropriated for the
8 purposes of this chapter.
9 (c) Money in the fund may be transferred to any fund
10 administered by the corporation.
11 Sec. 19. (a) The corporation, in order to accelerate the rate of
12 economic growth in Indiana, is hereby authorized and empowered
13 to construct, maintain, and operate, in cooperation with the federal
14 government, or otherwise, at such locations within a designated
15 innovation development district, projects to accelerate economic
16 growth. The Indiana finance authority may issue bonds to pay the
17 cost of such projects payable solely from revenue as set forth in
18 IC 5-1.2-4-4(2).
19 (b) If there is insufficient revenue generated by the sources
20 identified under subsection (a) to make lease rental payments
21 associated with bonds issued under this section, there is
22 appropriated from the state general fund sufficient revenues to
23 meet these obligations.
24 Sec. 20. The corporation shall provide information on the
25 innovation development district program in its economic incentive
26 and compliance report submitted pursuant to IC 5-28-28-5
27 including the following:
28 (1) Metrics established by the corporation to evaluate the
29 effectiveness of the Innovation Development District in
30 promoting economic growth in the state.
31 (2) The number and amount of grants or loans from the fund
32 contractually awarded by the corporation for each district
33 and in total for all districts statewide.
34 (3) The name of each entity receiving a grant or loan from the
35 fund for each district and for all districts statewide.
SB 361—LS 7135/DI 120 30
COMMITTEE REPORT
Madam President: The Senate Committee on Appropriations, to
which was referred Senate Bill No. 361, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
"SECTION 1. IC 5-1.2-4-4, AS ADDED BY P.L.189-2018,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 4. In addition to the powers listed in section
1 of this chapter, the authority may:
(1) enter into leases and issue bonds under terms and conditions
determined by the authority and use the proceeds of the bonds to:
(A) acquire obligations issued by any entity authorized to
acquire, finance, construct, or lease capital improvements
under IC 5-1-17;
(B) acquire any obligations issued by the northwest Indiana
regional development authority established by IC 36-7.5-2-1;
or
(C) carry out the purposes of IC 5-1-17.5 within a motorsports
investment district; and
(2) issue bonds under terms and conditions determined by the
authority payable solely from:
(A) revenues generated by a project under IC 36-7-32.5;
(B) net increment distributed to the Indiana economic
development corporation by the department of state
revenue under IC 36-7-32.5-16;
(C) property tax increment distributed to the Indiana
development corporation by a redevelopment commission
under IC 36-7-32.5-12; or
(D) any combination of the methods set forth in clauses (A)
through (C);
and use the proceeds of the bonds to pay the cost of projects
described in IC 36-7-32.5-19; and
(2) (3) perform any other functions determined by the authority to
be necessary or appropriate to carry out the purposes of this
section.
SECTION 2. IC 5-28-2-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2022 (RETROACTIVE)]: Sec. 1.5. "Applicable tax
credit" means any of the following:
(1) IC 6-3.1-13.
(2) IC 6-3.1-19.
SB 361—LS 7135/DI 120 31
(3) IC 6-3.1-26.
(4) IC 6-3.1-30.
(5) IC 6-3.1-34.
(6) IC 6-3.1-36.".
Page 2, delete lines 1 through 14, begin a new paragraph and insert:
"SECTION 3. IC 5-28-6-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2022 (RETROACTIVE)]: Sec. 9. (a) Except as
provided in subsection (b), the total amount of credits that the
corporation may award for a calendar year for all taxpayers for all
applicable tax credits is four hundred million dollars
($400,000,000).
(b) Subject to review by the budget committee, the corporation
may award for a calendar year for all taxpayers an additional two
hundred million dollars ($200,000,000) for all applicable tax credits
in addition to those under subsection (a). However, the tax credits
awarded under this subsection shall not be assigned or transferred.
(c) If the corporation has not or does not expect to exhaust the
limit on the award of applicable credits, the corporation may
award some or all of the remaining credits to taxpayers that make
contributions to the Indiana promotion fund established by
IC 5-28-5-12 in accordance with the policy established by the
corporation under subsection (e).
(d) Credits provided to taxpayers providing contributions to the
Indiana promotion fund may not be carried back or refunded.
(e) The corporation shall establish a policy for the award and
distribution of credits that must be approved by the board.".
Page 17, between lines 31 and 32, begin a new paragraph and insert:
"SECTION 19. IC 6-3.1-36 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]:
Chapter 36. Film and Media Production Tax Credit
Sec. 1. As used in this chapter, "qualified applicant" means a
person, corporation, limited liability partnership, limited liability
company, or other entity that is engaged in the business of making
a qualified media production in Indiana.
Sec. 2. As used in this chapter, "qualified media production"
means:
(1) a feature length film, including an independent or studio
production, or a documentary;
(2) a television episodic series, program, or feature;
SB 361—LS 7135/DI 120 32
(3) a digital media production that is intended for reasonable
commercial exploitation; or
(4) any other similar production as determined by the
corporation;
that is produced in Indiana.
Sec. 3. As used in this chapter, "qualified production expenses"
means expenses incurred by a qualified applicant for a qualified
media production.
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 5. As used in this chapter, "taxpayer" means a qualified
applicant that has any state tax liability.
Sec. 6. (a) A qualified applicant may apply to the Indiana
economic development corporation for a tax credit under this
chapter. The corporation shall prescribe the form and contents of
the application.
(b) The corporation shall evaluate an applicant's eligibility for
a tax credit under this chapter.
(c) The corporation may certify the eligibility of a taxpayer that
meets the requirements for a tax credit under this chapter.
(d) If the corporation certifies a taxpayer under subsection (c),
the corporation shall determine the percentage used to calculate
the amount of a tax credit under section 7(2) of this chapter.
Sec. 7. If the corporation certifies a taxpayer under section 6(c)
of this chapter, the taxpayer is entitled to a tax credit under this
chapter equal to:
(1) the amount of the taxpayer's qualified production
expenses; multiplied by
(2) a percentage determined by the corporation.
Sec. 8. If a pass through entity is entitled to a credit under
section 7 of this chapter but does not have state tax liability against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
SB 361—LS 7135/DI 120 33
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
Sec. 9. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's state tax return or returns
in the manner prescribed by the department.
Sec. 10. A tax credit awarded under this chapter is subject to the
limitations set forth in IC 5-28-6-9.".
Page 19, line 32, after "district" insert ".".
Page 19, line 32, delete "and" and insert "The unit shall".
Page 19, line 38, delete "Unless otherwise provided by subsection
(e), before" and insert "Before".
Page 19, line 41, after "committee." delete "The".
Page 19, delete line 42.
Page 20, delete line 1.
Page 20, delete lines 14 through 39, begin a new paragraph and
insert:
"(f) Notwithstanding any other provision of this chapter, an
innovation development district may not be established in an
existing allocation area established under IC 6-1.1-39, IC 36-7-14,
IC 36-7-15.1, IC 36-7-30, IC 36-7-30.5, IC 36-7-32, or any other
provision that authorizes the establishment of an allocation area.".
Page 27, delete lines 25 through 39, begin a new paragraph and
insert:
"Sec. 19. (a) The corporation, in order to accelerate the rate of
economic growth in Indiana, is hereby authorized and empowered
to construct, maintain, and operate, in cooperation with the federal
government, or otherwise, at such locations within a designated
innovation development district, projects to accelerate economic
growth. The Indiana finance authority may issue bonds to pay the
cost of such projects payable solely from revenue as set forth in
IC 5-1.2-4-4(2).".
Page 28, line 11, delete "." and insert "for each district and in total
for all districts statewide.".
Page 28, line 13, delete "." and insert "for each district and for all
SB 361—LS 7135/DI 120 34
districts statewide.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 361 as introduced.)
MISHLER, Chairperson
Committee Vote: Yeas 11, Nays 1.
_____
SENATE MOTION
Madam President: I move that Senate Bill 361 be amended to read
as follows:
Replace the effective dates in SECTIONS 1 through 21 with
"[EFFECTIVE JULY 1, 2023]".
Page 2, line 6, delete "; or" and insert "for assessments after
December 31, 2023; or".
Page 3, line 13, delete "2022;" and insert "2023;".
Page 3, line 42, delete "2022;" and insert "2023;".
Page 4, line 2, delete "2023." and insert "2024.".
Page 4, line 11, delete "2023," and insert "2024,".
Page 22, line 3, delete "December 31, 2022," and insert "June 30,
2023,".
Page 22, line 23, delete "(f)" and insert "(e)".
Page 25, line 21, after "tax" insert "assessed after December 31,
2023, and".
Page 29, delete line 40.
(Reference is to SB 361 as printed January 28, 2022.)
MISHLER
SB 361—LS 7135/DI 120