*ES0361.1* February 22, 2022 ENGROSSED SENATE BILL No. 361 _____ DIGEST OF SB 361 (Updated February 22, 2022 11:07 am - DI 125) Citations Affected: IC 5-1.2; IC 5-28; IC 6-1.1; IC 6-3; IC 6-3.1; IC 8-14; IC 8-22; IC 36-1; IC 36-7; noncode. 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. Adds veteran owned businesses to the list of businesses that would qualify for an enhanced venture capital tax credit. 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 $300,000,000. Specifies the procedure by which the IEDC may designate an area as an innovation development district (district). Provides that an innovation development district board (board) must be established to govern each innovation development district. Requires the IEDC to enter into a final agreement with the board establishing the terms and conditions governing a district. Requires the board to establish a local innovation development district fund for a district. Provides for the uses of money (Continued next page) Effective: Upon passage; July 1, 2022; January 1, 2023; July 1, 2023. Mishler, Holdman, Niezgodski, Ford Jon, Busch, Buck, Gaskill, Alting (HOUSE SPONSORS — BROWN T, SNOW, JORDAN, HAMILTON) 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. February 1, 2022, engrossed. Read third time, passed. Yeas 48, nays 1. HOUSE ACTION February 8, 2022, read first time and referred to Committee on Ways and Means. February 22, 2022, amended, reported — Do Pass. ES 361—LS 7135/DI 120 Digest Continued in a local innovation development district fund. Provides that money in a local innovation development district fund is continuously appropriated for the uses of the fund. Authorizes a county, city, or town to establish a workforce retention and recruitment program and fund (fund) for the purposes of recruiting and retaining individuals who will satisfy the current and future workforce needs of the unit's employers or provide substantial economic impact to the unit, including providing incentives in the form of grants or loans to qualified workers. Authorizes the unit to transfer money into the fund from other sources. Provides that the executive of the unit shall administer the fund in coordination with a workforce fund board of managers appointed by the executive of the unit. Provides that the IEDC may award a tax credit for media production expenses for certain media productions in Indiana beginning July 1, 2023. Provides for the augmentation of the amount appropriated to the IEDC in an amount not to exceed $300,000,000 for the purposes of business promotion and innovation. Specifies that funds appropriated to the IEDC for the purposes of business promotion and innovation do not revert to the state general fund. Requires the IEDC to identify state laws and regulations that burden existing businesses or inhibit creation of new businesses and provide a report with recommendations to the general assembly and budget committee. Makes conforming changes. ES 361—LS 7135/DI 120ES 361—LS 7135/DI 120 February 22, 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. ENGROSSED SENATE BILL No. 361 A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration and to make an appropriation. 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, 2022]: Sec. 4. (a) In addition to the powers listed in section 1 4 of 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) at the request of the Indiana economic development 16 corporation established by IC 5-28-3-1, and subject to 17 subsections (b), (c), and (d), enter into leases and issue bonds ES 361—LS 7135/DI 120 2 1 under terms and conditions determined by the authority 2 payable solely from: 3 (A) revenues that are deposited in a local innovation 4 development district fund established under 5 IC 36-7-32.5-21; 6 (B) revenues generated from a project under 7 IC 36-7-32.5-21; and 8 (C) appropriations from the general assembly; and 9 (2) (3) perform any other functions determined by the authority to 10 be necessary or appropriate to carry out the purposes of this 11 section. 12 (b) The proceeds of bonds issued under subsection (a)(2) may be 13 used to pay the costs of projects: 14 (1) described in IC 36-7-32.5-21; and 15 (2) located within or directly servicing the innovation 16 development district in which the revenue was generated. 17 (c) Before the authority enters into leases or issues bonds under 18 subsection (a)(2), the proposed lease or issuance of bonds must be 19 reviewed by the budget committee. 20 (d) The authority may not issue more than one billion dollars 21 ($1,000,000,000) of bonds under subsection (a)(2). 22 SECTION 2. IC 5-28-2-1.5 IS ADDED TO THE INDIANA CODE 23 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 24 1, 2022]: Sec. 1.5. "Applicable tax credit" means a tax credit 25 available under any of the following: 26 (1) IC 6-3.1-13. 27 (2) IC 6-3.1-19. 28 (3) IC 6-3.1-26. 29 (4) IC 6-3.1-30. 30 (5) IC 6-3.1-34. 31 (6) IC 6-3.1-36. 32 SECTION 3. IC 5-28-6-9 IS ADDED TO THE INDIANA CODE 33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 34 1, 2022]: Sec. 9. (a) The aggregate amount of applicable tax credits 35 that the corporation may award for a state fiscal year for all 36 taxpayers is three hundred million dollars ($300,000,000). 37 (b) For purposes of determining the amount of applicable tax 38 credits that have been awarded for a state fiscal year, the following 39 apply: 40 (1) An applicable tax credit is considered awarded in the state 41 fiscal year in which the taxpayer can first claim the credit, 42 determined without regard to any carryforward period or ES 361—LS 7135/DI 120 3 1 carryback period. 2 (2) An applicable tax credit awarded by the corporation 3 before July 1, 2022, shall be counted toward the aggregate 4 credit limitation under this section. 5 (3) If an accelerated credit is awarded under IC 6-3.1-26-15, 6 the amount counted toward the aggregate credit limitation 7 under this section for a state fiscal year shall be the amount of 8 the credit for the taxable year described in subdivision (1) 9 prior to any discount. 10 SECTION 4. IC 6-1.1-10-50 IS ADDED TO THE INDIANA CODE 11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 12 1, 2022]: Sec. 50. Property identified under IC 36-7-32.5-17 by an 13 innovation development district board established under 14 IC 36-7-32.5-14 is exempt from property taxation. 15 SECTION 5. IC 6-1.1-39-0.5, AS ADDED BY P.L.38-2021, 16 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2022]: Sec. 0.5. (a) This section does not apply to a parcel that 18 is included in more than one (1) allocation area established by: 19 (1) an ordinance adopted under section 2 of this chapter and 20 confirmed under section 3 of this chapter; 21 (2) a resolution adopted under IC 8-22-3.5-5 and confirmed under 22 IC 8-22-3.5-6; 23 (3) a resolution establishing an allocation provision under 24 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 25 IC 36-7-14-16, and IC 36-7-14-17; 26 (4) a resolution establishing an allocation provision under 27 IC 36-7-15.1-26 that is adopted and approved under 28 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 29 (5) a resolution establishing an allocation provision under 30 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 31 IC 36-7-30-11, and IC 36-7-30-12; 32 (6) a resolution establishing an allocation provision under 33 IC 36-7-30.5-30 that is adopted and approved under 34 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or 35 (7) a resolution designating a certified technology park as an 36 allocation area that is approved and adopted under IC 36-7-32-15; 37 on or before May 1, 2021. In addition, a new allocation area may not 38 be established under this chapter that includes a parcel that is located 39 in an allocation area described in this subsection. 40 (b) Except as provided in subsection (a), but notwithstanding any 41 other provision, for the purpose of the allocation of property taxes 42 under this chapter, a parcel may not be included in more than one (1) ES 361—LS 7135/DI 120 4 1 allocation area under this chapter or under: 2 (1) IC 8-22-3.5; 3 (2) IC 36-7-14; 4 (3) IC 36-7-15.1; 5 (4) IC 36-7-30; 6 (5) IC 36-7-30.5; or 7 (6) IC 36-7-32; or 8 (7) IC 36-7-32.5. 9 SECTION 6. IC 6-3-5-5 IS ADDED TO THE INDIANA CODE AS 10 A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 11 2022]: Sec. 5. (a) If the Indiana economic development corporation 12 established by IC 5-28-3-1 enters into an agreement with a 13 taxpayer for an economic development for a growing economy tax 14 credit under IC 6-3.1-13, and the taxpayer elects to forgo claiming 15 the credit against any state tax liability for that taxable year and 16 requests the department to remit to the taxpayer an amount equal 17 to the credit for the taxable year as set forth under 18 IC 6-3.1-13-20(b), the provisions of this section shall apply. 19 (b) Before making a payment to a taxpayer under this section, 20 the taxpayer shall provide to the department: 21 (1) a copy of the taxpayer's agreement with the Indiana 22 economic development corporation; 23 (2) the credit awarded to the taxpayer for that taxable year; 24 and 25 (3) any other information required by the department. 26 (c) A payment by the department cannot exceed the actual 27 incremental income tax withholdings collected by the department 28 as a result of the employment of new employees subject to an 29 agreement entered into under IC 6-3.1-13. 30 (d) In the case of a credit awarded under IC 6-3.1-13 to a 31 taxpayer that is a pass through entity, the: 32 (1) pass through entity has the authority to make the election 33 with regard to the credit; 34 (2) shareholders, partners, members, and beneficiaries of the 35 pass through entity may not make an election separate from 36 the pass through entity with regard to the credit; 37 (3) pass through entity is entitled to the payment allowable 38 under this section; and 39 (4) pass through entity may not pass through any portion of 40 the credit for which the pass through entity requests payment 41 as a tax credit to the shareholders, partners, members, or 42 beneficiaries of the pass through entity. ES 361—LS 7135/DI 120 5 1 (e) If a payment under this section is included in the federal 2 adjusted gross income of an individual or the federal taxable 3 income of any other entity, the payment must be treated as: 4 (1) adjusted gross income from Indiana sources under this 5 article and IC 6-5.5; 6 (2) business income for purposes of this article; and 7 (3) a receipt from Indiana sources for apportionment 8 purposes under IC 6-3-2 and IC 6-5.5-4. 9 (f) For purposes of offsetting refunds and overpayments, a 10 payment under this section is treated as an overpayment of tax 11 under this article and IC 6-5.5 for purposes of IC 6-8.1-9-2, 12 IC 6-8.1-9.5, and IC 6-8.1-9.7. 13 (g) A payment under this section is subject to IC 6-3.1-13-22 in 14 the same manner as if the payment had been claimed as a credit. 15 (h) If all or a portion of a payment under this section is 16 determined to have been made in error or is subject to assessment 17 under IC 6-3.1-13-22, the department may issue an assessment for 18 repayment of such amount before the later of: 19 (1) ten (10) years from the date of the payment; or 20 (2) three (3) years from the date the Indiana economic 21 development corporation notifies the department of the 22 taxpayer's noncompliance pursuant to IC 6-3.1-13-22. 23 (i) An assessment for repayment shall be treated as a proposed 24 assessment for purposes of administrative review and judicial 25 appeal under IC 6-8.1-5. However, review of the Indiana economic 26 development corporation's determination of noncompliance shall 27 be limited to an abuse of discretion by the Indiana economic 28 development corporation. 29 (j) For purposes of this section, an election for payment in lieu 30 of claiming the credit under IC 6-3.1-13 for a taxable year is not 31 allowed if: 32 (1) the taxpayer has claimed all or part of the credit for the 33 taxable year; 34 (2) in the case of a taxpayer who is a pass through entity, the 35 taxpayer passes through all or part of the credit as a tax 36 credit, regardless of whether the pass through entity 37 subsequently provides information to the department, the 38 Indiana economic development corporation, or any other 39 affected person or entity, that the credit should not be passed 40 through as a tax credit or whether the credit otherwise has 41 been claimed as a tax credit; or 42 (3) the taxpayer makes the election after the due date of the ES 361—LS 7135/DI 120 6 1 taxpayer's return under IC 6-3, IC 6-5.5, IC 6-8-15, or 2 IC 27-1-18-2, determined without regard to extensions, on 3 which it would have claimed the credit for which the taxpayer 4 is requesting payment under this section. 5 (k) The amount needed to make a payment under this section 6 shall be paid from funds appropriated to the Indiana economic 7 development corporation for business promotion and innovation 8 or from the statewide innovation development district fund 9 established by IC 36-7-32.5-22. Payments made under this section 10 are subject to available funding. 11 SECTION 7. IC 6-3.1-13-17, AS AMENDED BY P.L.197-2005, 12 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 13 JULY 1, 2022]: Sec. 17. (a) If the applicant proposes a project that 14 will be located at a physical location in Indiana, in determining the 15 credit amount that should be awarded to an applicant under section 15 16 of this chapter that proposes a project to create jobs in Indiana, the 17 corporation may take into consideration the following factors: 18 (1) The economy of the county where the projected investment is 19 to occur. 20 (2) The potential impact on the economy of Indiana. 21 (3) The incremental payroll attributable to the project. 22 (4) The capital investment attributable to the project. 23 (5) The amount the average wage paid by the applicant exceeds 24 the average wage paid: 25 (A) within the county in which the project will be located, in 26 the case of an application submitted before January 1, 2006; or 27 (B) in the case of an application submitted after December 31, 28 2005: 29 (i) to all employees working in the same NAICS industry 30 sector to which the applicant's business belongs in the 31 county in which the applicant's business is located, if there 32 is more than one (1) business in that NAICS industry sector 33 in the county in which the applicant's business is located; 34 (ii) to all employees working in the same NAICS industry 35 sector to which the applicant's business belongs in Indiana, 36 if the applicant's business is the only business in that NAICS 37 industry sector in the county in which the applicant's 38 business is located but there is more than one (1) business in 39 that NAICS industry sector in Indiana; or 40 (iii) to all employees working in the same county as the 41 county in which the applicant's business is located, if there 42 is no other business in Indiana in the same NAICS industry ES 361—LS 7135/DI 120 7 1 sector to which the applicant's business belongs. 2 (6) The costs to Indiana and the affected political subdivisions 3 with respect to the project. 4 (7) The financial assistance and incentives that are otherwise 5 provided by Indiana and the affected political subdivisions. 6 (8) The extent to which the incremental income tax withholdings 7 attributable to the applicant's project are needed for the purposes 8 of an incremental tax financing fund or industrial development 9 fund under IC 36-7-13 or a certified technology park fund under 10 IC 36-7-32. 11 As appropriate, the corporation shall consider the factors in this section 12 subsection to determine the credit amount awarded to an applicant for 13 a project to retain existing jobs in Indiana under section 15.5 of this 14 chapter. 15 (b) Subject to the limitations of subsection (c), if an applicant 16 proposes a project that proposes to create new jobs in Indiana but 17 does not propose a physical location in Indiana, the corporation 18 may consider the following factors: 19 (1) The potential impact on the economy in Indiana. 20 (2) The incremental payroll attributable to the project. 21 (3) The amount of average wage paid by the applicant that 22 exceeds the average wage paid to all employees working in the 23 same NAICS industry sector to which the applicant's business 24 belongs in Indiana. 25 (4) The cost to Indiana with respect to the project. 26 (5) The financial assistance and incentives that are otherwise 27 provided by Indiana. 28 (6) The extent of Indiana income tax that is paid by eligible 29 employees. 30 (c) An applicant proposing a project that meets the 31 requirements of subsection (b) must propose: 32 (1) to create at least fifty (50) new full-time jobs; and 33 (2) to pay an average hourly wage of at least one hundred fifty 34 percent (150%) of the state average wage; 35 in order to be eligible to receive a credit under this chapter. 36 SECTION 8. IC 6-3.1-13-18, AS AMENDED BY P.L.86-2018, 37 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 38 JULY 1, 2022]: Sec. 18. (a) The corporation shall determine the 39 amount and duration of a tax credit awarded under this chapter. The 40 duration of the credit may not exceed ten (10) twenty (20) taxable 41 years. The credit may be stated as a percentage of the incremental 42 income tax withholdings attributable to the applicant's project and may ES 361—LS 7135/DI 120 8 1 include a fixed dollar limitation. In the case of a credit awarded for a 2 project to create new jobs in Indiana, the credit amount may not exceed 3 the incremental income tax withholdings. However, the credit amount 4 claimed for a taxable year may exceed the taxpayer's state tax liability 5 for the taxable year, in which case the excess may, at the discretion of 6 the corporation, be refunded to the taxpayer. 7 (b) For state fiscal year 2006 and each state fiscal year thereafter, 8 the aggregate amount of credits awarded under this chapter for projects 9 to retain existing jobs in Indiana may not exceed ten million dollars 10 ($10,000,000) per year. 11 (c) This subsection does not apply to a business that was enrolled 12 and participated in the E-Verify program (as defined in IC 22-5-1.7-3) 13 during the time the taxpayer conducted business in Indiana in the 14 taxable year. A credit under this chapter may not be computed on any 15 amount withheld from an individual or paid to an individual for 16 services provided in Indiana as an employee, if the individual was, 17 during the period of service, prohibited from being hired as an 18 employee under 8 U.S.C. 1324a. 19 SECTION 9. IC 6-3.1-13-20, AS AMENDED BY P.L.4-2005, 20 SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 21 JULY 1, 2022]: Sec. 20. (a) Except as provided in subsection (b), a 22 taxpayer claiming a credit under this chapter must claim the credit on 23 the taxpayer's annual state tax return or returns in the manner 24 prescribed by the department of state revenue. The taxpayer shall 25 submit to the department of state revenue all information that the 26 department determines necessary for the calculation of the credit 27 provided by this chapter and the determination of whether the credit 28 was properly claimed. 29 (b) Notwithstanding subsection (a), if a taxpayer is entitled to a 30 credit under this chapter, the taxpayer may, with the approval of 31 the corporation, elect to forgo claiming the credit against any state 32 tax liability and submit the credit to the department with a request 33 to receive a payment from the corporation, to be paid from funds 34 appropriated to the corporation for business promotion and 35 innovation or from the statewide innovation development district 36 fund established by IC 36-7-32.5-22, that is equal to the credit for 37 that taxable year as provided in IC 6-3-5-5. 38 SECTION 10. IC 6-3.1-24-8, AS AMENDED BY P.L.165-2021, 39 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 40 JANUARY 1, 2023]: Sec. 8. (a) A certification provided under section 41 7 of this chapter must include notice to the investors of the maximum 42 amount of tax credits available under this chapter for the provision of ES 361—LS 7135/DI 120 9 1 qualified investment capital to the qualified Indiana business. 2 (b) For a calendar year ending before January 1, 2011, the maximum 3 amount of tax credits available under this chapter for the provision of 4 qualified investment capital to a particular qualified Indiana business 5 equals the lesser of: 6 (1) the total amount of qualified investment capital provided to 7 the qualified Indiana business in the calendar year, multiplied by 8 twenty percent (20%); or 9 (2) five hundred thousand dollars ($500,000). 10 (c) For a calendar year beginning after December 31, 2010, and 11 ending before January 1, 2022, the maximum amount of tax credits 12 available under this chapter for the provision of qualified investment 13 capital to a particular qualified Indiana business equals the lesser of the 14 following: 15 (1) The total amount of qualified investment capital provided to 16 the qualified Indiana business in the calendar year, multiplied by 17 twenty percent (20%). 18 (2) One million dollars ($1,000,000). 19 (d) For a calendar year beginning after December 31, 2021, the 20 maximum amount of tax credits available under this chapter for the 21 provision of qualified investment capital to a particular qualified 22 Indiana business equals the lesser of the following: 23 (1) The total amount of qualified investment capital provided to 24 the qualified Indiana business in the calendar year, multiplied by 25 twenty-five percent (25%). 26 (2) One million dollars ($1,000,000). 27 (e) Notwithstanding subsection (d), for a calendar year beginning 28 after December 31, 2021, the maximum amount of tax credits available 29 under this chapter for the provision of qualified investment capital to 30 a particular qualified Indiana business, if the qualified Indiana business 31 is a minority business enterprise, or a women's business enterprise, or 32 a veteran owned business equals the lesser of the following: 33 (1) The total amount of qualified investment capital provided to 34 the qualified Indiana business in the calendar year, multiplied by 35 thirty percent (30%). 36 (2) One million five hundred thousand dollars ($1,500,000). 37 SECTION 11. IC 6-3.1-26-20, AS AMENDED BY P.L.158-2019, 38 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 39 JULY 1, 2022]: Sec. 20. (a) The corporation shall certify the amount 40 of the qualified investment that is eligible for a credit under this 41 chapter. In determining the credit amount that should be awarded, the 42 corporation shall grant a credit only for the amount of the qualified ES 361—LS 7135/DI 120 10 1 investment that is directly related to: 2 (1) expanding the workforce in Indiana; or 3 (2) substantially enhancing the logistics industry and or 4 improving the overall Indiana economy. 5 (b) The total amount of credits that the corporation may approve 6 under this chapter for a state fiscal year for all taxpayers for all 7 qualified investments is: 8 (1) fifty million dollars ($50,000,000) for credits based on a 9 qualified investment that is not being claimed as a logistics 10 investment; and 11 (2) five million dollars ($5,000,000) for credits based on a 12 qualified investment that is being claimed as a logistics 13 investment. 14 For purposes of applying the limit under this subsection, a tax credit 15 that is accelerated under section 15(d) or 16(d) of this chapter shall be 16 valued at the amount of the tax credit before the tax credit is 17 discounted. 18 (c) (b) A person that desires to claim a tax credit for a qualified 19 investment shall file with the department, in the form that the 20 department may prescribe, an application: 21 (1) stating separately the amount of the credit awards for qualified 22 investments that have been granted to the taxpayer by the 23 corporation that will be claimed as a credit; that is covered by: 24 (A) subsection (b)(1); and 25 (B) subsection (b)(2); 26 (2) stating separately the amount sought to be claimed as a credit; 27 that is covered by: 28 (A) subsection (b)(1); and 29 (B) subsection (b)(2); and 30 (3) identifying whether the credit will be claimed during the state 31 fiscal year in which the application is filed or the immediately 32 succeeding state fiscal year. 33 (d) (c) The department shall separately record the time of filing of 34 each application for a credit award for a qualified investment covered 35 by subsection (b)(1) and for a qualified investment covered by 36 subsection (b)(2) and shall, except as provided in subsection (e), (d), 37 approve the credit to the taxpayer in the chronological order in which 38 the application is filed in the state fiscal year. The department shall 39 promptly notify an applicant whether, or the extent to which, the tax 40 credit is allowable in the state fiscal year proposed by the taxpayer. 41 (e) (d) If the total credit awards for qualified investments, that are 42 covered by: ES 361—LS 7135/DI 120 11 1 (1) subsection (b)(1); and 2 (2) subsection (b)(2); 3 including carryover credit awards covered by each subsection for a 4 previous state fiscal year, equal the maximum amount allowable in the 5 state fiscal year, an application for such a credit award that is filed later 6 for that same state fiscal year may not be granted by the department. 7 However, if an applicant for which a credit has been awarded and 8 applied for with the department fails to claim the credit, an amount 9 equal to the credit previously applied for but not claimed may be 10 allowed to the next eligible applicant or applicants until the total 11 amount has been allowed. 12 SECTION 12. IC 6-3.1-30-8, AS AMENDED BY P.L.158-2019, 13 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2022]: Sec. 8. (a) Subject to entering into an agreement with 15 the corporation under sections 14 and 15 of this chapter, if the 16 corporation certifies that a taxpayer: 17 (1) is an eligible business; 18 (2) completes a qualifying project; and 19 (3) incurs relocation costs; and 20 (4) employs: 21 (A) at least seventy-five (75) employees in Indiana, in the case 22 of a taxpayer that qualifies as an eligible business under 23 section 2(1) of this chapter; or 24 (B) at least ten (10) employees in Indiana, in the case of a 25 taxpayer that qualifies as an eligible business under section 26 2(2) of this chapter; 27 the taxpayer is entitled to a credit against the taxpayer's state tax 28 liability for the taxable year in which the relocation costs are incurred. 29 subject to subsection (c). The credit allowed under this section is equal 30 to the amount determined under section 9 of this chapter. 31 (b) For purposes of establishing the employment level required by 32 subsection (a)(4), a taxpayer may include: 33 (1) individuals who: 34 (A) were employed in Indiana by the taxpayer before the 35 taxpayer commenced a qualifying project; and 36 (B) remain employed in Indiana after the completion of the 37 taxpayer's qualifying project; and 38 (2) individuals who: 39 (A) were not employed in Indiana by the taxpayer before the 40 taxpayer commenced a qualifying project; and 41 (B) are employed in Indiana by the taxpayer as a result of the 42 completion of the taxpayer's qualifying project. ES 361—LS 7135/DI 120 12 1 (c) The total amount of credits that may be approved by the 2 corporation for all eligible businesses described in section 2(2) of this 3 chapter may not exceed five million dollars ($5,000,000) in a state 4 fiscal year. 5 SECTION 13. IC 6-3.1-34-6, AS AMENDED BY P.L.154-2020, 6 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2022]: Sec. 6. As used in this chapter, "qualified 8 redevelopment site" means a vacant or underutilized property in 9 Indiana as determined by the corporation. 10 (1) land on which a vacant building or complex of buildings was 11 placed in service at least fifteen (15) years before the date on 12 which the application is filed with the corporation under this 13 chapter; 14 (2) land on which a vacant building or complex of buildings: 15 (A) was placed in service at least fifteen (15) years before the 16 date on which the demolition of the vacant building or 17 complex of buildings was completed; and 18 (B) that was demolished in an effort to protect the health, 19 safety, and welfare of the community; 20 (3) land on which a vacant building or complex of buildings: 21 (A) was placed in service at least fifteen (15) years before the 22 date on which the demolition of the vacant building or 23 complex of buildings was completed; 24 (B) was placed in service as a public building; 25 (C) was owned by a unit of local government; and 26 (D) has not been redeveloped since the building was taken out 27 of service as a public building; 28 (4) vacant land; 29 (5) mine reclamation site; or 30 (6) brownfields consisting of more than fifty (50) acres. 31 For a complex of buildings to be considered a qualified redevelopment 32 site under subdivision (1), (2) or (3), the buildings must have been 33 located on a single parcel or contiguous parcels of land that were under 34 common ownership at the time the site was placed in service. 35 SECTION 14. IC 6-3.1-34-8, AS ADDED BY P.L.158-2019, 36 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 37 JULY 1, 2022]: Sec. 8. As used in this chapter, "rehabilitation" means 38 the betterment of real property including remodeling or repair. in any 39 way. 40 SECTION 15. IC 6-3.1-34-17, AS AMENDED BY P.L.154-2020, 41 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 42 JULY 1, 2022]: Sec. 17. (a) The following apply if the corporation ES 361—LS 7135/DI 120 13 1 determines that a credit should be awarded under this chapter: 2 (1) The corporation shall require the taxpayer to enter into an 3 agreement with the corporation as a condition of receiving a 4 credit under this chapter. 5 (2) The agreement with the corporation must: 6 (A) prescribe the method of certifying the taxpayer's qualified 7 investment; and 8 (B) include provisions that authorize the corporation to work 9 with the department and the taxpayer, if the corporation 10 determines that the taxpayer is noncompliant with the terms of 11 the agreement or the provisions of this chapter, to bring the 12 taxpayer into compliance or to protect the interests of the state. 13 (3) The corporation shall specify the taxpayer's expenditures that 14 will be considered a qualified investment. 15 (4) The corporation shall determine the applicable credit 16 percentage under subsections (b) and (c). 17 (b) If the corporation determines that a credit should be awarded 18 under this chapter, the corporation shall determine the applicable credit 19 percentage for a qualified investment certified by the corporation. 20 However, and except as provided in subsection (c), the applicable 21 credit percentage may not exceed the following: thirty percent (30%). 22 (1) If the qualified redevelopment site was placed in service at 23 least fifteen (15) years ago but less than thirty (30) years ago, or 24 is vacant land or a brownfield described in section 6(6) of this 25 chapter: 26 (A) fifteen percent (15%), if the qualified redevelopment site 27 is part of a development plan of a regional development 28 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or 29 (B) ten percent (10%), if the qualified redevelopment site is 30 not part of a development plan of a regional development 31 authority described under clause (A). 32 (2) If the qualified redevelopment site was placed in service at 33 least thirty (30) years ago but less than forty (40) years ago: 34 (A) twenty percent (20%), if the qualified redevelopment site 35 is part of a development plan of a regional development 36 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or 37 (B) ten percent (10%), if the qualified redevelopment site is 38 not part of a development plan of a regional development 39 authority described under clause (A). 40 (3) If the qualified redevelopment site was placed in service at 41 least forty (40) years ago: 42 (A) twenty-five percent (25%), if the qualified redevelopment ES 361—LS 7135/DI 120 14 1 site is part of a development plan of a regional development 2 authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or 3 (B) fifteen percent (15%), if the qualified redevelopment site 4 is not part of a development plan of a regional development 5 authority described under clause (A). 6 (c) The corporation may increase the credit amount by not more 7 than an additional five percent (5%) if: 8 (1) the qualified redevelopment site is located in a federally 9 designated qualified opportunity zone (Section 1400Z-1 and 10 1400Z-2 of the Internal Revenue Code); or 11 (2) the project qualifies for federal new markets tax credits under 12 Section 45D of the Internal Revenue Code. 13 (d) To be eligible for the credit for a qualified investment, a 14 taxpayer's expenditures that are considered a qualified investment must 15 be certified by the corporation not later than two (2) taxable years after 16 the end of the calendar year in which the taxpayer's expenditures are 17 made. 18 SECTION 16. IC 6-3.1-34-18, AS ADDED BY P.L.158-2019, 19 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 20 JULY 1, 2022]: Sec. 18. (a) Subject to subsection (e), Except as 21 provided in subsection (b), if the corporation awards a tax credit to 22 a taxpayer under this chapter that exceeds twenty million dollars 23 ($20,000,000), the corporation shall include in an agreement 24 entered into under section 17 of this chapter a provision that 25 requires the taxpayer to repay to the corporation the portion of the 26 credit that exceeds twenty million dollars ($20,000,000) with 27 interest. may, as part of an agreement entered into under section 17 of 28 this chapter: 29 (1) require a taxpayer to repay all or part of a credit awarded 30 under this chapter over a period of years; and 31 (2) limit the maximum amount of a credit awarded to a taxpayer 32 under this chapter that may be claimed during a taxable year. 33 (b) The corporation may elect to enter into an agreement with a 34 local unit that has jurisdiction over the real property that is subject to 35 the proposed qualified investment, through which such agreement the 36 local unit commits local revenue generated by the project to the 37 corporation rather than the corporation including a repayment provision 38 in an agreement with a taxpayer under subsection (a)(1). The total 39 amount of revenue committed under an agreement entered into under 40 this subsection may not exceed the credit repayment amount 41 determined under subsection (a)(1). Any amounts received under an 42 agreement entered into under this subsection shall be deposited in the ES 361—LS 7135/DI 120 15 1 state general fund. 2 (c) Notwithstanding subsections (a) and (b), if the corporation 3 awards a tax credit to a taxpayer under this chapter that exceeds seven 4 million dollars ($7,000,000), the corporation shall include in an 5 agreement entered into under section 17 of this chapter a provision that 6 requires the taxpayer to repay the portion of the credit that exceeds 7 seven million dollars ($7,000,000). 8 (b) Notwithstanding subsection (a), the corporation may exclude 9 from its agreement entered into under section 17 of this chapter a 10 repayment provision for any portion of the credit if the award is 11 for a qualified redevelopment site subject to a proposal that will 12 result in a qualified investment of at least one hundred million 13 dollars ($100,000,000). 14 (d) (c) If the corporation enters into an agreement with a taxpayer 15 under section 17 of this chapter that includes a repayment provision 16 under subsection (a)(1) or (c), (a), the corporation shall include in the 17 repayment provision a provision establishing the interest rate that will 18 be applied. The interest rate shall be determined by the board and 19 approved by the budget agency. 20 (e) (d) This subsection applies to an active multi-phased project 21 occurring on a defined footprint for which the taxpayer has received 22 approval for at least the first phase of the active multi-phased project 23 from the corporation's board before July 1, 2018, for a tax credit under 24 IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The 25 following apply to a project described in this subsection: 26 (1) Only qualified investments that are made after June 30, 2021, 27 are eligible for a credit award under this chapter. 28 (2) The annual amount of credits awarded under this chapter for 29 the project may not exceed five million dollars ($5,000,000). 30 (3) The corporation may not include a repayment provision as part 31 of an agreement entered into under section 17 of this chapter for 32 the credits awarded for the project. 33 SECTION 17. IC 6-3.1-34-22 IS REPEALED [EFFECTIVE JULY 34 1, 2022]. Sec. 22. (a) Except as provided in subsection (b), the total 35 amount of credits that the corporation may award under this chapter for 36 a state fiscal year for all taxpayers for all qualified investments is fifty 37 million dollars ($50,000,000). The portion of the credits that is subject 38 to a repayment provision under section 18(b) or 18(c) of this chapter is 39 not included in the calculation of the annual limit. 40 (b) If the corporation determines that a credit should be awarded 41 under this chapter for a taxpayer's qualified investment but the award: 42 (1) will result in the corporation's cumulative credit awards under ES 361—LS 7135/DI 120 16 1 this chapter for a state fiscal year for all taxpayers for all qualified 2 investments to exceed the limit established by subsection (a); or 3 (2) should not be considered when calculating the corporation's 4 cumulative credit awards under this chapter for a state fiscal year 5 for all taxpayers for all qualified investments; 6 the corporation may, after review by the budget committee, enter into 7 an agreement with the taxpayer under section 17 of this chapter. 8 SECTION 18. IC 6-3.1-36 IS ADDED TO THE INDIANA CODE 9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 10 JULY 1, 2023]: 11 Chapter 36. Film and Media Production Tax Credit 12 Sec. 1. As used in this chapter, "corporation" refers to the 13 Indiana economic development corporation established by 14 IC 5-28-3-1. 15 Sec. 2. As used in this chapter, "qualified applicant" means a 16 person, corporation, limited liability partnership, limited liability 17 company, or other entity that is engaged in the business of making 18 a qualified media production in Indiana. 19 Sec. 3. As used in this chapter, "qualified media production" 20 means: 21 (1) a feature length film, including an independent or studio 22 production, or a documentary; 23 (2) a television episodic series, program, or feature; 24 (3) a digital media production that is intended for reasonable 25 commercial exploitation; or 26 (4) any other similar production as determined by the 27 corporation; 28 that is produced in Indiana. 29 Sec. 4. As used in this chapter, "qualified production expenses" 30 means expenses incurred by a qualified applicant for a qualified 31 media production. 32 Sec. 5. As used in this chapter, "state tax liability" means a 33 taxpayer's total tax liability that is incurred under: 34 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); 35 and 36 (2) IC 6-5.5 (the financial institutions tax); 37 as computed after the application of the credits that under 38 IC 6-3.1-1-2 are to be applied before the credit provided by this 39 chapter. 40 Sec. 6. As used in this chapter, "taxpayer" means a qualified 41 applicant that has any state tax liability. 42 Sec. 7. (a) A qualified applicant may apply to the corporation ES 361—LS 7135/DI 120 17 1 for a tax credit under this chapter. The corporation shall prescribe 2 the form and contents of the application. 3 (b) The corporation shall evaluate an applicant's eligibility for 4 a tax credit under this chapter. 5 (c) The corporation may certify the eligibility of a taxpayer that 6 meets the requirements for a tax credit under this chapter. 7 (d) If the corporation certifies a taxpayer under subsection (c), 8 the corporation shall determine the percentage used to calculate 9 the amount of a tax credit under section 8(2) of this chapter. 10 Sec. 8. If the corporation certifies a taxpayer under section 7(c) 11 of this chapter, the taxpayer is entitled to a tax credit under this 12 chapter equal to: 13 (1) the amount of the taxpayer's qualified production 14 expenses; multiplied by 15 (2) a percentage determined by the corporation, not to exceed 16 thirty percent (30%). 17 Sec. 9. If a pass through entity is entitled to a credit under 18 section 8 of this chapter but does not have state tax liability against 19 which the tax credit may be applied, a shareholder, partner, 20 member, or beneficiary of the pass through entity is entitled to a 21 tax credit equal to: 22 (1) the tax credit determined for the pass through entity for 23 the taxable year; multiplied by 24 (2) the percentage of the pass through entity's distributive 25 income to which the shareholder, partner, member, or 26 beneficiary is entitled. 27 Sec. 10. To receive the credit provided by this chapter, a 28 taxpayer must claim the credit on the taxpayer's state tax return 29 or returns in the manner prescribed by the department. 30 Sec. 11. (a) The amount of the credit provided by this chapter 31 that a taxpayer uses during a particular taxable year may not 32 exceed the state tax liability of the taxpayer. 33 (b) If the credit provided by this chapter exceeds the taxpayer's 34 state tax liability for the first taxable year containing the taxable 35 year for which the corporation awards the credit, then the excess 36 may be carried over to succeeding taxable years and used as a 37 credit against the state tax liability of the taxpayer during those 38 taxable years. 39 (c) Each time that the credit is carried over to a succeeding 40 taxable year, it is to be reduced by the amount that was used as a 41 credit during the immediately preceding taxable year. The credit 42 provided by this chapter may be carried forward and applied to ES 361—LS 7135/DI 120 18 1 succeeding taxable years for nine (9) taxable years following the 2 first taxable year containing the taxable year for which the 3 corporation awards the credit. 4 (d) If a taxpayer fails to claim a credit under this chapter for a 5 year in which the taxpayer is otherwise permitted to claim the 6 credit, the credit will be considered to be used for purposes of 7 subsection (c). 8 (e) If a taxpayer claims a credit under this chapter, the 9 department and the department of insurance may disclose 10 information necessary to verify that amounts in excess of the credit 11 allowable under this chapter have not been claimed. 12 Sec. 12. A tax credit awarded under this chapter is subject to the 13 limitations set forth in IC 5-28-6-9. 14 Sec. 13. This chapter expires July 1, 2027. 15 SECTION 19. IC 8-14-15.1-7, AS ADDED BY P.L.217-2017, 16 SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2022]: Sec. 7. (a) The next level Indiana fund investment 18 board is established. The board consists of the following members: 19 (1) The secretary of commerce or the secretary's designee, who 20 shall serve as the chairperson of the board. 21 (2) The director of the office of management and budget or the 22 director's designee. 23 (3) Two (2) individuals appointed by the governor who have 24 experience and knowledge in investments. 25 (4) The treasurer of state or the treasurer's designee. 26 (5) One (1) individual appointed by the speaker of the house 27 of representatives who has experience and knowledge in 28 venture capital investments. 29 (6) One (1) individual appointed by the president pro tempore 30 of the senate who has experience and knowledge in venture 31 capital investments. 32 (b) The board shall serve as trustee of the trust and direct the 33 investment of the trust. 34 (c) The board shall adopt an investment policy in conformance with 35 section 8 of this chapter. 36 (d) The board shall hold regular meetings at least quarterly. The 37 board may hold special meetings at the call of the treasurer of state or 38 with a written request signed by at least two (2) members of the board. 39 (e) The board may hold its meetings at offices in Indiana that the 40 chairperson or the requesting members designate. All meetings must 41 be open to the public in accordance with IC 5-14-1.5. The board shall 42 keep a record of its proceedings. ES 361—LS 7135/DI 120 19 1 (f) Three (3) Five (5) members of the board constitute a quorum for 2 the transaction of business of the board. Each member of the board is 3 entitled to one (1) vote. A vote of at least three (3) five (5) members of 4 the board present is required for the board to adopt a resolution or take 5 other action at a regular or special meeting. 6 SECTION 20. IC 8-22-3.5-1.5, AS ADDED BY P.L.38-2021, 7 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 8 JULY 1, 2022]: Sec. 1.5. (a) This section does not apply to a parcel that 9 is included in more than one (1) allocation area established by: 10 (1) an ordinance adopted under section 5 of this chapter and 11 confirmed under section 6 of this chapter; 12 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under 13 IC 6-1.1-39-3; 14 (3) a resolution establishing an allocation provision under 15 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 16 IC 36-7-14-16, and IC 36-7-14-17; 17 (4) a resolution establishing an allocation provision under 18 IC 36-7-15.1-26 that is adopted and approved under 19 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 20 (5) a resolution establishing an allocation provision under 21 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 22 IC 36-7-30-11, and IC 36-7-30-12; 23 (6) a resolution establishing an allocation provision under 24 IC 36-7-30.5-30 that is adopted and approved under 25 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or 26 (7) a resolution designating a certified technology park as an 27 allocation area that is approved and adopted under IC 36-7-32-15; 28 on or before May 1, 2021. In addition, a new allocation area may not 29 be established under this chapter that includes a parcel that is located 30 in an allocation area described in this subsection. 31 (b) Except as provided in subsection (a), but notwithstanding any 32 other provision, for the purpose of the allocation of property taxes 33 under this chapter, a parcel may not be included in more than one (1) 34 allocation area established under this chapter or under: 35 (1) IC 6-1.1-39; 36 (2) IC 36-7-14; 37 (3) IC 36-7-15.1; 38 (4) IC 36-7-30; 39 (5) IC 36-7-30.5; or 40 (6) IC 36-7-32; or 41 (7) IC 36-7-32.5. 42 SECTION 21. IC 36-1-29.5 IS ADDED TO THE INDIANA CODE ES 361—LS 7135/DI 120 20 1 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 2 JULY 1, 2022]: 3 Chapter 29.5. Workforce Retention and Recruitment Program 4 and Fund 5 Sec. 1. As used in this chapter, "fund" means a workforce 6 retention and recruitment fund established by the fiscal officer of 7 a unit under section 9 of this chapter. 8 Sec. 2. As used in this chapter, "incentive agreement" means an 9 agreement described in section 8(b) of this chapter. 10 Sec. 3. As used in this chapter, "program" means a workforce 11 retention and recruitment program established by the executive of 12 a unit under section 8(a) of this chapter. 13 Sec. 4. As used in this chapter, "qualified nonprofit 14 organization" means a private, nonprofit entity formed as a 15 partnership between one (1) or more units, private sector 16 businesses, or community or philanthropic organizations to 17 develop and implement a workforce retention and recruitment 18 strategy that has an organizational structure that conforms with 19 the requirements of a policy developed by the workforce fund 20 managers under section 10 of this chapter. 21 Sec. 5. As used in this chapter, "qualified worker" means an 22 individual described in section 11 of this chapter. 23 Sec. 6. As used in this chapter, "unit" means a county, city, or 24 town. 25 Sec. 7. As used in this chapter, "workforce fund managers" 26 means a workforce fund board of managers established by the 27 executive of a unit under section 10 of this chapter. 28 Sec. 8. (a) The executive of a unit may by resolution or executive 29 order establish a workforce retention and recruitment program for 30 the purposes of recruiting and retaining individuals who will 31 satisfy the current and future workforce needs of the unit's 32 employers or provide substantial economic impact to the unit, 33 including providing incentives in the form of grants or loans to 34 qualified workers. 35 (b) A program must require each qualified worker who receives 36 a grant or loan from the fund to enter into an incentive agreement 37 with the workforce fund managers. An incentive agreement must 38 include the following terms: 39 (1) The duration of time each qualified worker agrees to 40 reside within the unit following the date specified in the 41 agreement. 42 (2) A penalty clause if a qualified worker fails to fulfill the ES 361—LS 7135/DI 120 21 1 terms of the agreement. 2 However, the workforce fund managers may waive a penalty under 3 subdivision (2) regarding any part of a grant or loan that the 4 qualified worker may have received and that is due under the 5 incentive agreement. 6 Sec. 9. (a) If the executive of a unit establishes a program under 7 section 8 of this chapter, the fiscal officer of the unit shall establish 8 a workforce retention and recruitment fund for the purposes of the 9 program. 10 (b) The fund shall consist of the following: 11 (1) Any private grants or contributions. 12 (2) Appropriations to the fund included in the unit's budget. 13 (3) Transfers of money to the fund under section 12 of this 14 chapter. 15 (4) Any repayments to the fund under section 8(b) of this 16 chapter. 17 (c) The executive of the unit shall administer the fund in 18 coordination with a workforce fund board of managers established 19 under section 10 of this chapter, including any qualified nonprofit 20 organization established by the workforce fund managers under 21 that section. 22 (d) Any money remaining in a fund at the end of the calendar 23 year does not revert to the unit's general fund. 24 Sec. 10. (a) The executive of a unit that establishes a program 25 under section 8 of this chapter shall appoint a five (5) member 26 workforce fund board of managers. The duties of the workforce 27 fund managers shall include: 28 (1) adopting rules and bylaws they consider necessary for the 29 proper conduct of their proceedings, the carrying out of other 30 duties, and the safeguarding of the money or property placed 31 in their custody; 32 (2) by resolution or in accordance with their rules and bylaws, 33 prescribing the date and manner of notice of their regular 34 meetings; 35 (3) identifying the most appropriate and fiscally responsible 36 incentives that will attract or retain individuals or families 37 who will satisfy the current and future workforce needs of the 38 unit's employers or provide substantial economic impact to 39 the unit; 40 (4) developing and implementing marketing strategies to 41 recruit or retain these individuals or families; 42 (5) identifying and recruiting applicants who may receive ES 361—LS 7135/DI 120 22 1 incentives from the fund; 2 (6) establishing an application process for individuals and 3 families; 4 (7) evaluating applicants; and 5 (8) offering incentives to qualified applicants. 6 (b) Three (3) of the workforce fund managers constitute a 7 quorum and the concurrence of three (3) of the workforce fund 8 managers is necessary to authorize any action. 9 (c) The workforce fund managers may establish a qualified 10 nonprofit organization for purposes of carrying out a program and 11 the purposes of a fund under this chapter. 12 Sec. 11. To qualify for a grant or loan from a fund, an individual 13 must be: 14 (1) a graduate of an Indiana college or university who: 15 (A) was a resident of another state before enrolling at the 16 Indiana college or university; 17 (B) relocates to a location within the unit; and 18 (C) accepts and commences employment with an employer 19 located within the unit under the terms of an incentive 20 agreement; 21 (2) an out-of-state resident who relocates to a location within 22 the unit in order to accept and commence employment with 23 an employer located within the unit under the terms of an 24 incentive agreement; or 25 (3) an out-of-state resident who relocates to a location within 26 the unit and works remotely for an employer, regardless of 27 the employer's domicile. 28 Sec. 12. (a) The fiscal body of a unit may transfer or deposit the 29 following into a fund: 30 (1) Any private grants or contributions. 31 (2) Appropriations to the fund included in the unit's budget. 32 (3) Except for money in a fund with a restricted purpose, but 33 otherwise notwithstanding any use of funds prohibition as 34 long as the transfer or deposit is authorized by the relevant 35 statutory procedure: 36 (A) any surplus, unexpended, unappropriated, 37 unencumbered, or otherwise available public or private 38 money; and 39 (B) from any general account, reverting or nonreverting 40 fund, special account, or trust, other than a fund or 41 account that receives bond proceeds, created or 42 administered by any department, board, authority, ES 361—LS 7135/DI 120 23 1 commission, political subdivision, special service district, 2 special taxing district, or any other instrumentality of local 3 government under IC 36 with authority to collect or 4 receive taxes, interest, or any other public or private 5 money. 6 (b) Notwithstanding any other statute, an executive of a unit 7 that has established a program under section 8 of this chapter, 8 after consulting with the fiscal body and fiscal officer of the unit, 9 may authorize a transfer or loan to a fund from any dedicated fund 10 or account, other than a fund or account that receives bond 11 proceeds, before the purpose for which the dedicated fund or 12 account was established has been accomplished. 13 (c) Two (2) or more units may, by written agreement, 14 collaborate, commingle funds, or otherwise work together for the 15 benefit of administering or carrying out the purposes of the units' 16 funds. 17 Sec. 13. Any separate body corporate and politic or regional, 18 multicounty, or metropolitan authority or commission may, by 19 written agreement, establish a mutually beneficial relationship 20 with one (1) or more units for purposes of administering or 21 carrying out the purposes of the unit's fund or units' funds. 22 Sec. 14. (a) Not later than April 15 of each year, the workforce 23 fund managers shall file with the executive of the unit and fiscal 24 body of the unit a report setting out their activities during the 25 preceding calendar year. 26 (b) The report of the workforce fund managers under this 27 section must show: 28 (1) the names of the then qualified and acting workforce fund 29 managers; 30 (2) the amount of the expenditures made during the preceding 31 year and their general purpose; 32 (3) the amount of funds on hand at the close of the calendar 33 year; and 34 (4) other information deemed necessary to disclose the 35 activities of the workforce fund managers and the results 36 obtained. 37 (c) Not later than April 15 of each year, a copy of each report 38 under this section must be submitted to the department of local 39 government finance in an electronic format specified by the 40 department of local government finance. 41 SECTION 22. IC 36-7-14-57, AS ADDED BY P.L.38-2021, 42 SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE ES 361—LS 7135/DI 120 24 1 JULY 1, 2022]: Sec. 57. (a) This section does not apply to a parcel that 2 is included in more than one (1) allocation area established by: 3 (1) a resolution establishing an allocation provision under section 4 39 of this chapter that is adopted and approved under sections 15 5 through 17 of this chapter; 6 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under 7 IC 6-1.1-39-3; 8 (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under 9 IC 8-22-3.5-6; 10 (4) a resolution establishing an allocation provision under 11 IC 36-7-15.1-26 that is adopted and approved under 12 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 13 (5) a resolution establishing an allocation provision under 14 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 15 IC 36-7-30-11, and IC 36-7-30-12; 16 (6) a resolution establishing an allocation provision under 17 IC 36-7-30.5-30 that is adopted and approved under 18 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or 19 (7) a resolution designating a certified technology park as an 20 allocation area that is approved and adopted under IC 36-7-32-15; 21 on or before May 1, 2021. In addition, a new allocation area may not 22 be established under this chapter that includes a parcel that is located 23 in an allocation area described in this subsection. 24 (b) Except as provided in subsection (a), but notwithstanding any 25 other provision, for the purpose of the allocation of property taxes 26 under this chapter, a parcel may not be included in more than one (1) 27 allocation area established under this chapter or under: 28 (1) IC 6-1.1-39; 29 (2) IC 8-22-3.5; 30 (3) IC 36-7-15.1; 31 (4) IC 36-7-30; 32 (5) IC 36-7-30.5; or 33 (6) IC 36-7-32; or 34 (7) IC 36-7-32.5. 35 SECTION 23. IC 36-7-15.1-63, AS ADDED BY P.L.38-2021, 36 SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 37 JULY 1, 2022]: Sec. 63. (a) This section does not apply to a parcel that 38 is included in more than one (1) allocation area established by: 39 (1) a resolution establishing an allocation provision under section 40 26 of this chapter that is adopted and approved under sections 8 41 through 10 of this chapter; 42 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under ES 361—LS 7135/DI 120 25 1 IC 6-1.1-39-3; 2 (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under 3 IC 8-22-3.5-6; 4 (4) a resolution establishing an allocation provision under 5 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 6 IC 36-7-14-16, and IC 36-7-14-17; 7 (5) a resolution establishing an allocation provision under 8 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 9 IC 36-7-30-11, and IC 36-7-30-12; 10 (6) a resolution establishing an allocation provision under 11 IC 36-7-30.5-30 that is adopted and approved under 12 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or 13 (7) a resolution designating a certified technology park as an 14 allocation area that is approved and adopted under IC 36-7-32-15; 15 on or before May 1, 2021. In addition, a new allocation area may not 16 be established under this chapter that includes a parcel that is located 17 in an allocation area described in this subsection. 18 (b) Except as provided in subsection (a), but notwithstanding any 19 other provision, for the purpose of the allocation of property taxes 20 under this chapter, a parcel may not be included in more than one (1) 21 allocation area established under this chapter or under: 22 (1) IC 6-1.1-39; 23 (2) IC 8-22-3.5; 24 (3) IC 36-7-14; 25 (4) IC 36-7-30; 26 (5) IC 36-7-30.5; or 27 (6) IC 36-7-32; or 28 (7) IC 36-7-32.5. 29 SECTION 24. IC 36-7-30-36, AS ADDED BY P.L.38-2021, 30 SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 31 JULY 1, 2022]: Sec. 36. (a) This section does not apply to a parcel that 32 is included in more than one (1) allocation area established by: 33 (1) a resolution establishing an allocation provision under section 34 25 of this chapter that is adopted and approved under sections 10 35 through 12 of this chapter; 36 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under 37 IC 6-1.1-39-3; 38 (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under 39 IC 8-22-3.5-6; 40 (4) a resolution establishing an allocation provision under 41 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 42 IC 36-7-14-16, and IC 36-7-14-17; ES 361—LS 7135/DI 120 26 1 (5) a resolution establishing an allocation provision under 2 IC 36-7-15.1-26 that is adopted and approved under 3 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 4 (6) a resolution establishing an allocation provision under 5 IC 36-7-30.5-30 that is adopted and approved under 6 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or 7 (7) a resolution designating a certified technology park as an 8 allocation area that is approved and adopted under IC 36-7-32-15; 9 on or before May 1, 2021. In addition, a new allocation area may not 10 be established under this chapter that includes a parcel that is located 11 in an allocation area described in this subsection. 12 (b) Except as provided in subsection (a), but notwithstanding any 13 other provision, for the purpose of the allocation of property taxes 14 under this chapter, a parcel may not be included in more than one (1) 15 allocation area established under this chapter or under: 16 (1) IC 6-1.1-39; 17 (2) IC 8-22-3.5; 18 (3) IC 36-7-14; 19 (4) IC 36-7-15.1; 20 (5) IC 36-7-30.5; or 21 (6) IC 36-7-32; or 22 (7) IC 36-7-32.5. 23 SECTION 25. IC 36-7-30.5-37, AS ADDED BY P.L.38-2021, 24 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 25 JULY 1, 2022]: Sec. 37. (a) This section does not apply to a parcel that 26 is included in more than one (1) allocation area established by: 27 (1) a resolution establishing an allocation provision under section 28 30 of this chapter that is adopted and approved under sections 16 29 through 18 of this chapter; 30 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under 31 IC 6-1.1-39-3; 32 (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under 33 IC 8-22-3.5-6; 34 (4) a resolution establishing an allocation provision under 35 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 36 IC 36-7-14-16, and IC 36-7-14-17; 37 (5) a resolution establishing an allocation provision under 38 IC 36-7-15.1-26 that is adopted and approved under 39 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 40 (6) a resolution establishing an allocation provision under 41 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 42 IC 36-7-30-11, and IC 36-7-30-12; or ES 361—LS 7135/DI 120 27 1 (7) a resolution designating a certified technology park as an 2 allocation area that is approved and adopted under IC 36-7-32-15; 3 on or before May 1, 2021. In addition, a new allocation area may not 4 be established under this chapter that includes a parcel that is located 5 in an allocation area described in this subsection. 6 (b) Except as provided in subsection (a), but notwithstanding any 7 other provision, for the purpose of the allocation of property taxes 8 under this chapter, a parcel may not be included in more than one (1) 9 allocation area established under this chapter or under: 10 (1) IC 6-1.1-39; 11 (2) IC 8-22-3.5; 12 (3) IC 36-7-14; 13 (4) IC 36-7-15.1; 14 (5) IC 36-7-30; or 15 (6) IC 36-7-32; or 16 (7) IC 36-7-32.5. 17 SECTION 26. IC 36-7-32-28, AS ADDED BY P.L.38-2021, 18 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 19 JULY 1, 2022]: Sec. 28. (a) This section does not apply to a parcel that 20 is included in more than one (1) allocation area established by: 21 (1) a resolution designating a certified technology park as an 22 allocation area that is approved and adopted under section 15 of 23 this chapter; 24 (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under 25 IC 6-1.1-39-3; 26 (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under 27 IC 8-22-3.5-6; 28 (4) a resolution establishing an allocation provision under 29 IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, 30 IC 36-7-14-16, and IC 36-7-14-17; 31 (5) a resolution establishing an allocation provision under 32 IC 36-7-15.1-26 that is adopted and approved under 33 IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; 34 (6) a resolution establishing an allocation provision under 35 IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, 36 IC 36-7-30-11, and IC 36-7-30-12; or 37 (7) a resolution establishing an allocation provision under 38 IC 36-7-30.5-30 that is adopted and approved under 39 IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; 40 on or before May 1, 2021. In addition, a new allocation area may not 41 be established under this chapter that includes a parcel that is located 42 in an allocation area described in this subsection. ES 361—LS 7135/DI 120 28 1 (b) Except as provided in subsection (a), but notwithstanding any 2 other provision, for the purpose of the allocation of property taxes 3 under this chapter, a parcel may not be included in more than one (1) 4 allocation area established under this chapter or under: 5 (1) IC 6-1.1-39; 6 (2) IC 8-22-3.5; 7 (3) IC 36-7-14; 8 (4) IC 36-7-15.1; 9 (5) IC 36-7-30; or 10 (6) IC 36-7-30.5; or 11 (7) IC 36-7-32.5. 12 SECTION 27. IC 36-7-32.5 IS ADDED TO THE INDIANA CODE 13 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2022]: 15 Chapter 32.5. Innovation Development Districts 16 Sec. 1. As used in this chapter, "base assessed value" means the 17 net assessed value of all the taxable real and personal property that 18 is assessed as commercial or industrial property under the rules of 19 the department of local government finance and is located in an 20 innovation development district as finally determined for the 21 assessment date immediately preceding the effective date of the 22 designation by the corporation under section 10 of this chapter. 23 Sec. 2. As used in this chapter, "board" refers to the innovation 24 development district board established under section 14 of this 25 chapter to govern an innovation development district. 26 Sec. 3. As used in this chapter, "corporation" refers to the 27 Indiana economic development corporation established by 28 IC 5-28-3-1. 29 Sec. 4. As used in this chapter, "gross retail base period 30 amount" means the aggregate amount of state gross retail and use 31 taxes remitted under IC 6-2.5 by the businesses: 32 (1) operating in the territory comprising an innovation 33 development district; and 34 (2) that is, in the case of the: 35 (A) state gross retail tax, collected by a business for sales 36 occurring at a physical location of the business in the 37 innovation development district; and 38 (B) state use tax, incurred with regard to property used in 39 the innovation development district; 40 during the full state fiscal year that precedes the date on which the 41 innovation development district was designated under section 10 42 of this chapter. ES 361—LS 7135/DI 120 29 1 Sec. 5. As used in this chapter, "gross retail incremental 2 amount" means the remainder of: 3 (1) the aggregate amount of state gross retail and use taxes 4 that are remitted under IC 6-2.5 by businesses: 5 (A) operating in the territory comprising an innovation 6 development district; and 7 (B) that is, in the case of the: 8 (i) state gross retail tax, collected by a business for sales 9 occurring at a physical location of the business in the 10 innovation development district; and 11 (ii) state use tax, incurred with regard to property used 12 in the innovation development district; 13 during a state fiscal year; minus 14 (2) the gross retail base period amount; 15 as determined by the department of state revenue. 16 Sec. 6. As used in this chapter, "income tax base period 17 amount" means the aggregate amount of adjusted gross income 18 taxes paid by employees employed in the territory comprising an 19 innovation development district with respect to wages and salary 20 earned for work in the innovation development district for the 21 state fiscal year that precedes the date on which the innovation 22 development district was designated under section 10 of this 23 chapter. 24 Sec. 7. As used in this chapter, "income tax incremental 25 amount" means the remainder of: 26 (1) the total amount of state adjusted gross income taxes paid 27 by employees employed in the territory comprising the 28 innovation development district with respect to wages and 29 salary earned for work in the territory comprising the 30 innovation development district for a particular state fiscal 31 year; minus 32 (2) the sum of the: 33 (A) income tax base period amount; plus 34 (B) tax credits awarded by the Indiana economic 35 development corporation under IC 6-3.1-13 to businesses 36 operating in an innovation development district as the 37 result of wages earned for work in the innovation 38 development district for the state fiscal year; 39 as determined by the department of state revenue. 40 Sec. 8. As used in this chapter, "legislative body" means the 41 following: 42 (1) The board of county commissioners, for a county not ES 361—LS 7135/DI 120 30 1 subject to IC 36-2-3.5 or IC 36-3-1. 2 (2) The county council, for a county subject to IC 36-2-3.5. 3 (3) The city-county council, for a consolidated city or county 4 having a consolidated city. 5 (4) The common council, for a city other than a consolidated 6 city. 7 (5) The town council, for a town. 8 Sec. 9. As used in this chapter, "net increment" means the sum 9 of: 10 (1) the gross retail incremental amount; plus 11 (2) the income tax incremental amount; 12 as determined by the department of state revenue. 13 Sec. 10. (a) Before the corporation may designate territory 14 within the jurisdiction of a city, town, or county, or within the 15 jurisdiction of more than one (1) city, town, or county, as an 16 innovation development district under this section, the board of the 17 corporation established under IC 5-28-4 shall establish policies and 18 guidelines that the corporation must follow when notifying and 19 collaborating with a legislative body, or, if applicable, legislative 20 bodies, to designate territory within the jurisdiction of a city, town, 21 or county as an innovation development district under this section. 22 (b) After notifying and collaborating with the legislative body, 23 or, if an innovation development district will include territory 24 within the jurisdiction of more than one (1) city, town, or county, 25 with the legislative bodies, in the manner provided under the 26 policies and guidelines established under subsection (a), the 27 corporation may designate territory within the jurisdiction of a 28 city, town, or county, or territory within the jurisdiction of more 29 than one (1) city, town, or county, as an innovation development 30 district if the corporation determines that the designation will 31 support economic growth. 32 (c) The corporation may not designate an innovation 33 development district under this section after June 30, 2025. 34 Sec. 11. (a) The corporation may not designate an area as an 35 innovation development district under section 10 of this chapter, 36 if the business or businesses that are expected to locate within the 37 innovation development district: 38 (1) currently operate in Indiana in a location outside of the 39 proposed innovation development district; and 40 (2) intend to substantially reduce or cease operations at the 41 other location or locations within Indiana in order to relocate 42 to a location within the innovation development district. ES 361—LS 7135/DI 120 31 1 (b) Notwithstanding any other provision of this chapter, an 2 innovation development district may not be established in an 3 existing allocation area established under IC 6-1.1-39, IC 8-22-3.5, 4 IC 36-7-14, IC 36-7-15.1, IC 36-7-30, IC 36-7-30.5, IC 36-7-32, 5 IC 36-7.5-4.5, or any other provision that authorizes the 6 establishment of an allocation area. 7 (c) A development within the innovation development district is 8 subject to any zoning ordinance or other zoning law that otherwise 9 applies to territory within the innovation development district. 10 Sec. 12. (a) Except as provided in subsection (b), after June 30, 11 2022, and before July 1, 2025, the corporation may not designate 12 more than five (5) innovation development districts under section 13 10 of this chapter. 14 (b) Notwithstanding subsection (a), after June 30, 2022, and 15 before July 1, 2025, the corporation may designate additional 16 innovation development districts under section 10 of this chapter 17 after review by the budget committee. 18 Sec. 13. The term of an area's designation as an innovation 19 development district may not exceed thirty (30) years. 20 Sec. 14. (a) After an innovation development district is 21 designated under section 10 of this chapter, the legislative body, or, 22 if applicable, the legislative bodies, and the corporation shall 23 establish an innovation development district board to govern the 24 innovation development district. 25 (b) The board consists of five (5) members appointed as follows: 26 (1) Three (3) members appointed by the secretary of 27 commerce appointed under IC 5-28-3-4. 28 (2) Two (2) members appointed by the legislative body, or, if 29 applicable, the legislative bodies. 30 Each member of the board must be a resident of the county, or, if 31 applicable, one (1) of the counties, in which the innovation 32 development district is located. A member of the board serves at 33 the pleasure of the appointing authority. A vacancy on the board 34 shall be filled in the same manner as the original appointment. 35 (c) After the members of have been appointed under this 36 section, the board and the corporation shall enter into an 37 agreement establishing the terms and conditions governing the 38 innovation development district. After entering into the agreement, 39 the subsequent failure of any party to comply with the terms of the 40 agreement may result in the termination or rescission of the 41 designation of the area as an innovation development district. 42 (d) The agreement must include the following provisions: ES 361—LS 7135/DI 120 32 1 (1) A description of the area, including a list of all parcels to 2 be included within the innovation development district. 3 (2) Covenants and restrictions, if any, upon all or a part of the 4 properties contained within the innovation development 5 district and terms of enforcement of any covenants or 6 restrictions. 7 (3) The due diligence and financial commitments of any party 8 to the agreement and of any owner or developer of property 9 within the innovation development district. 10 (4) The financial projections of the innovation development 11 district. 12 (5) The proposed use of the net increment and property tax 13 incremental amount described in section 16(c) of this chapter 14 that is captured within the innovation development district. 15 (6) Subject to the limitations of this chapter, the duration of 16 the designation of an area as an innovation development 17 district. 18 (7) The terms of enforcement of the agreement, which may 19 include the definition of events of default, cure periods, legal 20 and equitable remedies and rights, and penalties and 21 damages, actual or liquidated, upon the occurrence of an 22 event of default. 23 (8) The public facilities to be developed for the innovation 24 development district and the estimated costs of those public 25 facilities. 26 (e) Within fifteen (15) days of entering into an agreement under 27 subsection (c), the corporation shall submit a written report on the 28 agreement to the budget committee. 29 Sec. 15. (a) After the corporation and a board enter into an 30 agreement described in section 14 of this chapter concerning the 31 terms and conditions governing the innovation development 32 district, the legislative body, or, if applicable, legislative bodies, 33 shall adopt a resolution designating an innovation development 34 district as an allocation area for purposes of the allocation and 35 distribution of property taxes. 36 (b) After adoption of the resolution under subsection (a), the 37 legislative body, or, if applicable, legislative bodies, shall: 38 (1) publish notice of the adoption and substance of the 39 resolution in accordance with IC 5-3-1; and 40 (2) file the following information with each taxing unit that 41 has authority to levy property taxes in the geographic area 42 where the innovation development district is located: ES 361—LS 7135/DI 120 33 1 (A) A copy of the notice required under subdivision (1). 2 (B) A statement disclosing the impact of the innovation 3 development district, including the estimated economic 4 benefits and costs incurred by the innovation development 5 district, as measured by increased employment and 6 anticipated growth of real and personal property assessed 7 values. 8 The notice must state the general boundaries of the innovation 9 development district and include a list of all parcels to be included 10 within the innovation development district. 11 Sec. 16. (a) An allocation provision adopted under section 15 of 12 this chapter must: 13 (1) apply to the entire innovation development district; and 14 (2) require that any property tax assessed on taxable property 15 used for commercial or industrial purposes subsequently 16 levied by or for the benefit of any public body entitled to a 17 distribution of property taxes in the innovation development 18 district be allocated and distributed as provided in subsections 19 (b) and (c). 20 (b) Except as otherwise provided in this section: 21 (1) the proceeds of the taxes attributable to the lesser of: 22 (A) the assessed value of the taxable property for the 23 assessment date with respect to which the allocation and 24 distribution is made; or 25 (B) the base assessed value; 26 shall be allocated and, when collected, paid into the funds of 27 the respective taxing units; and 28 (2) the excess of the proceeds of the property taxes imposed 29 for the assessment date with respect to which the allocation 30 and distribution is made that are attributable to taxes 31 imposed after being approved by the voters in a referendum 32 or local public question conducted after April 30, 2010, not 33 otherwise included in subdivision (1) shall be allocated to and, 34 when collected, paid into the funds of the taxing unit for 35 which the referendum or local public question was conducted. 36 (c) Except as provided in subsection (d), all the property tax 37 proceeds that: 38 (1) exceed those described in subsection (b); and 39 (2) are attributable to the assessed value of taxable property 40 used for commercial or industrial purposes; 41 shall be paid into the appropriate local innovation development 42 district fund established by section 21 of this chapter by the county ES 361—LS 7135/DI 120 34 1 auditor at the same time that the county auditor distributes 2 property taxes to other local units of government under 3 IC 6-1.1-27. Any remaining property tax proceeds that exceed 4 those described in subsection (b) that are not described in 5 subdivision (2) shall be allocated and, when collected, paid into the 6 funds of the respective taxing units. 7 (d) Notwithstanding any other law, each assessor shall, upon 8 petition of the board, reassess the taxable property situated upon 9 or in, or added to, the innovation development district effective on 10 the next assessment date after the petition. 11 (e) 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. 17. (a) A board may enter into a written agreement with a 20 taxpayer who owns, or is otherwise obligated to pay property taxes 21 on, tangible property that is or will be located in an allocation area 22 established under this chapter in which the taxpayer waives review 23 of any assessment of the taxpayer's tangible property that is 24 located in the allocation area for an assessment date that occurs 25 during the term of any specified bond or lease obligations that are 26 payable, in whole or in part, from property taxes in accordance 27 with an allocation provision for the allocation area and any 28 applicable statute, ordinance, or resolution. 29 (b) Notwithstanding any other law, a board may exempt from 30 taxation any tangible real or personal property that is: 31 (1) assessed as commercial or industrial property under the 32 rules of the department of local government finance; and 33 (2) located within the innovation development district. 34 Sec. 18. (a) The state board of accounts, the department of state 35 revenue, and the department of local government finance may 36 adopt rules under IC 4-22-2 and prescribe the forms and 37 procedures that the state board of accounts, the department of 38 state revenue, and the department of local government finance 39 consider appropriate for the implementation of an innovation 40 development district under this chapter. However, before adopting 41 rules under this section, the state board of accounts, the 42 department of state revenue, and the department of local ES 361—LS 7135/DI 120 35 1 government finance shall submit a report to the budget committee 2 that: 3 (1) describes the rules proposed by the state board of 4 accounts, the department of state revenue, and the 5 department of local government finance; and 6 (2) recommends statutory changes necessary to implement the 7 provisions of this chapter. 8 (b) After each reassessment of real property in an area under a 9 county's reassessment plan prepared under IC 6-1.1-4-4.2, the 10 department of local government finance shall adjust the base 11 assessed value one (1) time to neutralize any effect of the 12 reassessment of the real property in the area on the property tax 13 proceeds allocated to the local innovation development district 14 fund established by section 21 of this chapter. 15 (c) After each annual adjustment under IC 6-1.1-4-4.5, the 16 department of local government finance shall adjust the base 17 assessed value to neutralize any effect of the annual adjustment on 18 the property tax proceeds allocated to the local innovation 19 development district fund established by section 21 of this chapter. 20 Sec. 19. (a) After entering into an agreement under section 14 of 21 this chapter, the board shall send to the department of state 22 revenue: 23 (1) a certified copy of the designation of the innovation 24 development district under section 10 of this chapter; 25 (2) a certified copy of the agreement entered into under 26 section 14 of this chapter; and 27 (3) a complete list of the employers in the innovation 28 development district and the street names and the range of 29 street numbers of each street in the innovation development 30 district. 31 The board shall update the list provided under subdivision (3) 32 before July 1 of each year. 33 (b) Not later than sixty (60) days after receiving a copy of the 34 designation of the innovation development district, the department 35 of state revenue shall determine the gross retail base period 36 amount and the income tax base period amount. 37 Sec. 20. (a) Before the first business day in October of each year, 38 the department of state revenue shall calculate the income tax 39 incremental amount and the gross retail incremental amount for 40 the preceding state fiscal year for each innovation development 41 district designated under this chapter. 42 (b) Taxpayers operating in an innovation development district ES 361—LS 7135/DI 120 36 1 shall report annually, in the manner and form prescribed by the 2 department of state revenue, information that the department of 3 state revenue determines necessary to calculate the net increment. 4 (c) A taxpayer operating in an innovation development district 5 that files a consolidated tax return with the department of state 6 revenue shall also file annually an informational return with the 7 department of state revenue for each business location of the 8 taxpayer within the innovation development district. 9 (d) If a taxpayer fails to report the information required by this 10 section or file an informational return required by this section, the 11 department of state revenue shall use the best information 12 available in calculating the income tax incremental amount and 13 gross retail incremental amount. 14 (e) The department of state revenue shall transfer the amount 15 calculated as provided in subsection (a) to the applicable local 16 innovation development district fund established for the innovation 17 development district under section 21 of this chapter by November 18 1 of each year. 19 Sec. 21. (a) Each board shall establish a local innovation 20 development district fund for an innovation development district 21 designated under section 10 of this chapter. 22 (b) Each fund consists of: 23 (1) deposits of incremental property tax revenue from the 24 county auditor as provided in section 16(c) of this chapter; 25 and 26 (2) transfers from the department under section 20 of this 27 chapter. 28 (c) The board established for the innovation development 29 district shall administer each local innovation development district 30 fund established under this section. The expenses of administering 31 each fund shall be paid from money in that fund. 32 (d) A board may use money in each fund for the following 33 purposes: 34 (1) The acquisition, improvement, preparation, demolition, 35 disposal, construction, reconstruction, remediation, 36 rehabilitation, restoration, preservation, maintenance, repair, 37 furnishing, and equipping of public facilities, including but 38 not limited to utilities and transportation infrastructure. 39 (2) The operation of public facilities. 40 (3) The acquisition of land within the innovation development 41 district. 42 (4) The recruitment of new businesses and new employees to ES 361—LS 7135/DI 120 37 1 the innovation development district. 2 (5) The training of individuals employed in the innovation 3 development district. 4 (6) For any other purpose authorized by an agreement 5 between the corporation and the board entered into under 6 section 14 of this chapter. 7 (e) Not later than August 1 of each year, the board shall transfer 8 an amount equal to twelve percent (12%) of the incremental 9 property tax revenues that were deposited into the fund in the 10 immediately preceding state fiscal year to the general fund of each 11 city, town, county, or school corporation with territory located 12 within the innovation development district. If the board is required 13 to transfer funds to more than one (1) city, town, county, or school 14 corporation under this subsection, the amount transferred to each 15 city, town, county, and school corporation must be allocated among 16 each city, town, county, and school corporation proportionately 17 based on each city's, town's, county's, and school corporation's 18 gross property tax levy. 19 (f) This subsection applies only to a city, town, or county that 20 receives funds under subsection (e). A city, town, or county may 21 use funds received under subsection (e) to pay any: 22 (1) costs incurred by the city, town, or county to construct, 23 maintain, or operate utilities, transportation infrastructure, 24 or any other public facility that provides services to the 25 innovation development district; or 26 (2) other costs deemed necessary by the city, town, or county 27 to provide police or fire protection to the innovation 28 development district. 29 (g) Each state fiscal year, the board may, after making the 30 transfer required under subsection (e) and satisfying all debt 31 service obligations due and payable during the state fiscal year for 32 bonds issued under IC 5-1.2-4-4(a)(2), transfer from each local 33 innovation development district fund to the statewide innovation 34 development district fund established by section 22 of this chapter 35 an amount not to exceed one hundred percent (100%) of the net 36 incremental revenue derived from state income taxes and gross 37 retail taxes deposited into each fund during the immediately 38 preceding state fiscal year. 39 (h) Money in each local innovation development district fund at 40 the end of a state fiscal year does not revert to the state general 41 fund. 42 (i) Money in each local innovation development district fund is ES 361—LS 7135/DI 120 38 1 continuously appropriated for the purposes specified in this 2 section. 3 Sec. 22. (a) The statewide innovation development district fund 4 is established within the state treasury to provide grants or loans 5 to support the development or expansion of industry in Indiana. 6 (b) The fund consists of: 7 (1) Transfers from a local innovation development district 8 fund under section 21(g) of this chapter. 9 (2) Appropriations from the general assembly. 10 (3) Loan repayments, including earnings from loans under 11 subsection (d). 12 (c) The corporation shall administer the fund. The following 13 may be paid from money in the fund: 14 (1) The expenses of administering the fund. 15 (2) Nonrecurring administrative expenses incurred to carry 16 out the purposes of this chapter. 17 (d) Earnings from loans made under this chapter shall be 18 deposited in the fund. 19 (e) The corporation may make grants, loans, or investments 20 from the fund for the following purposes: 21 (1) For the purposes identified in section 21(d) of this chapter. 22 (2) For the acquisition and improvement of land or other 23 property. 24 (3) For costs associated with creating new innovation 25 development districts. 26 (4) For the development of partnerships, including grants and 27 loans, between the state, advanced industry and higher 28 educational institutions focused on development, expansion, 29 or retention in the state. 30 (5) For the stimulation of investments in entrepreneurial or 31 high growth potential companies in the state. 32 (6) For workforce training assistance in the state. 33 (f) The corporation may use money in the fund to make a 34 payment in lieu of a growing economy tax credit as provided in 35 IC 6-3-5-5. 36 Sec. 23. (a) Except as provided in subsection (b), money in the 37 statewide innovation development district fund established by 38 section 22 of this chapter at the end of the state fiscal year does not 39 revert to the state general fund. 40 (b) Notwithstanding subsection (a), if the unobligated balance 41 of the statewide innovation development district fund established 42 by section 22 of this chapter exceeds five hundred million dollars ES 361—LS 7135/DI 120 39 1 ($500,000,000) at the close of any state fiscal year, the amount of 2 funds in excess of five hundred million dollars ($500,000,000) shall 3 be transferred to the state general fund. 4 (c) Money in the fund is continuously appropriated for the 5 purposes of this chapter. 6 Sec. 24. The corporation shall provide information on the 7 innovation development district program in its economic incentive 8 and compliance report submitted pursuant to IC 5-28-28-5, and to 9 the budget committee, that includes the following: 10 (1) Metrics established by the corporation to evaluate the 11 effectiveness of the innovation development district in 12 promoting economic growth in the state. 13 (2) The number and amount of grants or loans from the 14 statewide innovation development district fund established by 15 section 22 of this chapter that are contractually awarded by 16 the corporation for each innovation development district and 17 in total for all innovation development districts statewide. 18 (3) The name of each entity receiving a grant or loan from the 19 statewide innovation development district fund established by 20 section 22 of this chapter for each innovation development 21 district and for all innovation development districts statewide. 22 (4) The amount and name of each entity for which there is a 23 unfunded obligation at the close of each state fiscal year. 24 (5) A report on each innovation development district 25 designated under this chapter that includes a description of: 26 (A) the general boundaries of the innovation development 27 district; 28 (B) the total acreage encompassed within the innovation 29 development district; 30 (C) the base assessed value of the innovation development 31 district; 32 (D) the gross retail base period amount determined for the 33 innovation development district; 34 (E) the income tax base period amount determined for the 35 innovation development district; 36 (F) the gross assessed value of all tangible real and 37 personal property, without regard to any exemption 38 granted by the board under section 17(b) of this chapter, 39 that is: 40 (i) assessed as commercial or industrial property under 41 the rules of the department of local government finance; 42 and ES 361—LS 7135/DI 120 40 1 (ii) located within the innovation development district; 2 in each calendar year after the calendar year in which the 3 innovation development district was designated; 4 (G) the amount of incremental property tax revenue 5 deposited into the local innovation development district 6 fund established by section 21 of this chapter in each state 7 fiscal year after the state fiscal year in which the 8 innovation development district was designated; 9 (H) the amount of incremental state gross retail and use 10 tax revenue deposited into the local innovation 11 development district fund established by section 21 of this 12 chapter in each state fiscal year after the state fiscal year 13 in which the innovation development district was 14 designated; 15 (I) the amount of incremental state adjusted gross income 16 tax revenue deposited into the local innovation 17 development district fund established by section 21 of this 18 chapter in each state fiscal year after the state fiscal year 19 in which the innovation development district was 20 designated; 21 (J) the amount of revenue deposited into the local 22 innovation development district fund established by section 23 21 of this chapter that was transferred into the statewide 24 innovation development district fund established under 25 section 22 of this chapter in each state fiscal year after the 26 state fiscal year in which the innovation development 27 district was designated; 28 (K) the aggregate amount of bonds issued by the Indiana 29 finance authority under IC 5-1.2-4-4(a)(2) to pay for 30 projects within the innovation development district; 31 (L) the annual amount of debt service payments due on the 32 bonds described in clause (K); and 33 (M) a description of all economic development incentives 34 granted by the corporation to businesses located within the 35 innovation development district. 36 SECTION 28. [EFFECTIVE UPON PASSAGE] (a) For the 37 biennium beginning July 1, 2021, and ending June 30, 2023, the 38 budget agency shall augment from the state general fund the 39 amount of money appropriated for the Indiana economic 40 development corporation for business promotion and innovation 41 in P.L.165-2021, SECTION 6, by an amount not to exceed three 42 hundred million dollars ($300,000,000). Notwithstanding ES 361—LS 7135/DI 120 41 1 P.L.165-2021 or any other law, the Indiana economic development 2 corporation may transfer any funds allocated for business 3 promotion and innovation to the statewide innovation development 4 district fund established by IC 36-7-32.5-22 or to the Indiana 5 promotion fund established by IC 5-28-5-12. 6 (b) Notwithstanding any other law, funds appropriated to the 7 Indiana economic development corporation for business promotion 8 and innovation do not revert to the state general fund at the end of 9 the state fiscal year and remain available in subsequent state fiscal 10 years for the uses specified under state law. 11 (c) This SECTION expires July 1, 2025. 12 SECTION 29. [EFFECTIVE UPON PASSAGE] (a) As used in this 13 SECTION, "corporation" refers to the Indiana economic 14 development corporation established by IC 5-28-3-1. 15 (b) The corporation shall identify and review state laws and 16 regulations that: 17 (1) are burdensome to existing Indiana businesses; or 18 (2) inhibit the creation of new businesses and industries in the 19 state. 20 (c) Not later than November 1, 2022, the corporation shall 21 provide a report with recommendations for amending the state 22 laws and regulations identified and reviewed under subsection (b) 23 to the general assembly and the budget committee in an electronic 24 format under IC 5-14-6. 25 (d) This SECTION expires July 1, 2023. 26 SECTION 30. An emergency is declared for this act. ES 361—LS 7135/DI 120 42 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. ES 361—LS 7135/DI 120 43 (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; (3) a digital media production that is intended for reasonable ES 361—LS 7135/DI 120 44 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 (2) the percentage of the pass through entity's distributive ES 361—LS 7135/DI 120 45 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 ES 361—LS 7135/DI 120 46 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 _____ COMMITTEE REPORT Mr. Speaker: Your Committee on Ways and Means, to which was referred Senate Bill 361, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: ES 361—LS 7135/DI 120 47 Delete the title and insert the following: A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration and to make an appropriation. Replace the effective dates in SECTIONS 1 through 3 with "[EFFECTIVE JULY 1, 2022]". Replace the effective dates in SECTIONS 8 through 18 with "[EFFECTIVE JULY 1, 2022]". Replace the effective date in SECTION 21 with "[EFFECTIVE JULY 1, 2022]". Page 1, line 3, after "4." insert "(a)". Page 1, line 15, after "(2)" insert "at the request of the Indiana economic development corporation established by IC 5-28-3-1, and subject to subsections (b), (c), and (d), enter into leases and". Page 1, line 17, delete "generated by a project under IC 36-7-32.5;" and insert "that are deposited in a local innovation development district fund established under IC 36-7-32.5-21; (B) revenues generated from a project under IC 36-7-32.5-21; and (C) appropriations from the general assembly; and". Page 2, delete lines 1 through 11. Page 2, between lines 14 and 15, begin a new paragraph and insert: "(b) The proceeds of bonds issued under subsection (a)(2) may be used to pay the costs of projects: (1) described in IC 36-7-32.5-21; and (2) located within or directly servicing the innovation development district in which the revenue was generated. (c) Before the authority enters into leases or issues bonds under subsection (a)(2), the proposed lease or issuance of bonds must be reviewed by the budget committee. (d) The authority may not issue more than one billion dollars ($1,000,000,000) of bonds under subsection (a)(2).". Page 2, line 17, after "means" insert "a tax credit available under". Page 2, line 27, delete "Except as provided in subsection (b), the total" and insert "The aggregate amount of applicable tax credits that the corporation may award for a state fiscal year for all taxpayers is three hundred million dollars ($300,000,000). (b) For purposes of determining the amount of applicable tax credits that have been awarded for a state fiscal year, the following apply: (1) An applicable tax credit is considered awarded in the state fiscal year in which the taxpayer can first claim the credit, determined without regard to any carryforward period or ES 361—LS 7135/DI 120 48 carryback period. (2) An applicable tax credit awarded by the corporation before July 1, 2022, shall be counted toward the aggregate credit limitation under this section. (3) If an accelerated credit is awarded under IC 6-3.1-26-15, the amount counted toward the aggregate credit limitation under this section for a state fiscal year shall be the amount of the credit for the taxable year described in subdivision (1) prior to any discount. SECTION 4. IC 6-1.1-10-50 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 50. Property identified under IC 36-7-32.5-17 by an innovation development district board established under IC 36-7-32.5-14 is exempt from property taxation. SECTION 5. IC 6-1.1-39-0.5, AS ADDED BY P.L.38-2021, SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 0.5. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) an ordinance adopted under section 2 of this chapter and confirmed under section 3 of this chapter; (2) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; (3) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (4) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; (5) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; (6) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) ES 361—LS 7135/DI 120 49 allocation area under this chapter or under: (1) IC 8-22-3.5; (2) IC 36-7-14; (3) IC 36-7-15.1; (4) IC 36-7-30; (5) IC 36-7-30.5; or (6) IC 36-7-32; or (7) IC 36-7-32.5.". Page 2, delete lines 28 through 42. Delete pages 3 through 7. Page 8, delete lines 1 through 41. Page 9, line 3, delete "IC 5-28" and insert "IC 5-28-3-1". Page 9, line 10, after "section," insert "the taxpayer shall provide to the department:". Page 9, delete line 11. Page 9, delete lines 21 through 22, begin a new paragraph and insert: "(d) In the case of a credit awarded under IC 6-3.1-13 to a taxpayer that is a pass through entity, the: (1) pass through entity has the authority to make the election with regard to the credit; (2) shareholders, partners, members, and beneficiaries of the pass through entity may not make an election separate from the pass through entity with regard to the credit; (3) pass through entity is entitled to the payment allowable under this section; and (4) pass through entity may not pass through any portion of the credit for which the pass through entity requests payment as a tax credit to the shareholders, partners, members, or beneficiaries of the pass through entity. (e) If a payment under this section is included in the federal adjusted gross income of an individual or the federal taxable income of any other entity, the payment must be treated as: (1) adjusted gross income from Indiana sources under this article and IC 6-5.5; (2) business income for purposes of this article; and (3) a receipt from Indiana sources for apportionment purposes under IC 6-3-2 and IC 6-5.5-4. (f) For purposes of offsetting refunds and overpayments, a payment under this section is treated as an overpayment of tax under this article and IC 6-5.5 for purposes of IC 6-8.1-9-2, IC 6-8.1-9.5, and IC 6-8.1-9.7. ES 361—LS 7135/DI 120 50 (g) A payment under this section is subject to IC 6-3.1-13-22 in the same manner as if the payment had been claimed as a credit. (h) If all or a portion of a payment under this section is determined to have been made in error or is subject to assessment under IC 6-3.1-13-22, the department may issue an assessment for repayment of such amount before the later of: (1) ten (10) years from the date of the payment; or (2) three (3) years from the date the Indiana economic development corporation notifies the department of the taxpayer's noncompliance pursuant to IC 6-3.1-13-22. (i) An assessment for repayment shall be treated as a proposed assessment for purposes of administrative review and judicial appeal under IC 6-8.1-5. However, review of the Indiana economic development corporation's determination of noncompliance shall be limited to an abuse of discretion by the Indiana economic development corporation. (j) For purposes of this section, an election for payment in lieu of claiming the credit under IC 6-3.1-13 for a taxable year is not allowed if: (1) the taxpayer has claimed all or part of the credit for the taxable year; (2) in the case of a taxpayer who is a pass through entity, the taxpayer passes through all or part of the credit as a tax credit, regardless of whether the pass through entity subsequently provides information to the department, the Indiana economic development corporation, or any other affected person or entity, that the credit should not be passed through as a tax credit or whether the credit otherwise has been claimed as a tax credit; or (3) the taxpayer makes the election after the due date of the taxpayer's return under IC 6-3, IC 6-5.5, IC 6-8-15, or IC 27-1-18-2, determined without regard to extensions, on which it would have claimed the credit for which the taxpayer is requesting payment under this section. (k) The amount needed to make a payment under this section shall be paid from funds appropriated to the Indiana economic development corporation for business promotion and innovation or from the statewide innovation development district fund established by IC 36-7-32.5-22. Payments made under this section are subject to available funding.". Page 12, line 3, delete "department" and insert "corporation, to be paid from funds appropriated to the corporation for business ES 361—LS 7135/DI 120 51 promotion and innovation or from the statewide innovation development district fund established by IC 36-7-32.5-22, that is". Page 12, between lines 4 and 5, begin a new paragraph and insert: "SECTION 14. IC 6-3.1-24-8, AS AMENDED BY P.L.165-2021, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2023]: Sec. 8. (a) A certification provided under section 7 of this chapter must include notice to the investors of the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to the qualified Indiana business. (b) For a calendar year ending before January 1, 2011, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of: (1) the total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%); or (2) five hundred thousand dollars ($500,000). (c) For a calendar year beginning after December 31, 2010, and ending before January 1, 2022, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%). (2) One million dollars ($1,000,000). (d) For a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty-five percent (25%). (2) One million dollars ($1,000,000). (e) Notwithstanding subsection (d), for a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business, if the qualified Indiana business is a minority business enterprise, or a women's business enterprise, or a veteran owned business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by ES 361—LS 7135/DI 120 52 thirty percent (30%). (2) One million five hundred thousand dollars ($1,500,000).". Page 12, strike lines 24 through 27. Page 16, line 30, delete "If" and insert "Except as provided in subsection (b), if". Page 17, line 27, reset in roman "board and". Page 17, line 28, reset in roman "approved by the budget agency.". Page 17, line 28, delete "corporation at its discretion.". Page 18, between lines 20 and 21, begin a new paragraph and insert: "Sec. 1. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1.". Page 18, line 21, delete "1." and insert "2.". Page 18, line 25, delete "2." and insert "3.". Page 18, line 35, delete "3." and insert "4.". Page 18, line 38, delete "4." and insert "5.". Page 18, line 40, after "tax);" insert "and". Page 18, line 41, delete "and". Page 18, delete line 42. Page 19, line 4, delete "5." and insert "6.". Page 19, line 6, delete "6." and insert "7.". Page 19, line 6, delete "Indiana". Page 19, line 7, delete "economic development". Page 19, line 16, delete "7(2)" and insert "8(2)". Page 19, line 17, delete "7." and insert "8.". Page 19, line 17, delete "6(c)" and insert "7(c)". Page 19, line 22, delete "corporation." and insert "corporation, not to exceed thirty percent (30%).". Page 19, line 23, delete "8." and insert "9.". Page 19, line 24, delete "7" and insert "8". Page 19, line 25, delete "or". Page 19, line 26, delete "member" and insert "member, or beneficiary". Page 19, line 31, delete "or member" and insert "member, or beneficiary". Page 19, line 33, delete "9." and insert "10.". Page 19, between lines 35 and 36, begin a new paragraph and insert: "Sec. 11. (a) The amount of the credit provided by this chapter that a taxpayer uses during a particular taxable year may not exceed the state tax liability of the taxpayer. (b) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the first taxable year containing the taxable ES 361—LS 7135/DI 120 53 year for which the corporation awards the credit, then the excess may be carried over to succeeding taxable years and used as a credit against the state tax liability of the taxpayer during those taxable years. (c) Each time that the credit is carried over to a succeeding taxable year, it is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for nine (9) taxable years following the first taxable year containing the taxable year for which the corporation awards the credit. (d) If a taxpayer fails to claim a credit under this chapter for a year in which the taxpayer is otherwise permitted to claim the credit, the credit will be considered to be used for purposes of subsection (c). (e) If a taxpayer claims a credit under this chapter, the department and the department of insurance may disclose information necessary to verify that amounts in excess of the credit allowable under this chapter have not been claimed.". Page 19, line 36, delete "10." and insert "12.". Page 19, delete lines 38 through 41, begin a new paragraph and insert: "Sec. 13. This chapter expires July 1, 2027. SECTION 19. IC 8-14-15.1-7, AS ADDED BY P.L.217-2017, SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) The next level Indiana fund investment board is established. The board consists of the following members: (1) The secretary of commerce or the secretary's designee, who shall serve as the chairperson of the board. (2) The director of the office of management and budget or the director's designee. (3) Two (2) individuals appointed by the governor who have experience and knowledge in investments. (4) The treasurer of state or the treasurer's designee. (5) One (1) individual appointed by the speaker of the house of representatives who has experience and knowledge in venture capital investments. (6) One (1) individual appointed by the president pro tempore of the senate who has experience and knowledge in venture capital investments. (b) The board shall serve as trustee of the trust and direct the investment of the trust. ES 361—LS 7135/DI 120 54 (c) The board shall adopt an investment policy in conformance with section 8 of this chapter. (d) The board shall hold regular meetings at least quarterly. The board may hold special meetings at the call of the treasurer of state or with a written request signed by at least two (2) members of the board. (e) The board may hold its meetings at offices in Indiana that the chairperson or the requesting members designate. All meetings must be open to the public in accordance with IC 5-14-1.5. The board shall keep a record of its proceedings. (f) Three (3) Five (5) members of the board constitute a quorum for the transaction of business of the board. Each member of the board is entitled to one (1) vote. A vote of at least three (3) five (5) members of the board present is required for the board to adopt a resolution or take other action at a regular or special meeting. SECTION 20. IC 8-22-3.5-1.5, AS ADDED BY P.L.38-2021, SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 1.5. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) an ordinance adopted under section 5 of this chapter and confirmed under section 6 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (4) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; (5) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; (6) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) ES 361—LS 7135/DI 120 55 allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 36-7-14; (3) IC 36-7-15.1; (4) IC 36-7-30; (5) IC 36-7-30.5; or (6) IC 36-7-32; or (7) IC 36-7-32.5. SECTION 21. IC 36-1-29.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Chapter 29.5. Workforce Retention and Recruitment Program and Fund Sec. 1. As used in this chapter, "fund" means a workforce retention and recruitment fund established by the fiscal officer of a unit under section 9 of this chapter. Sec. 2. As used in this chapter, "incentive agreement" means an agreement described in section 8(b) of this chapter. Sec. 3. As used in this chapter, "program" means a workforce retention and recruitment program established by the executive of a unit under section 8(a) of this chapter. Sec. 4. As used in this chapter, "qualified nonprofit organization" means a private, nonprofit entity formed as a partnership between one (1) or more units, private sector businesses, or community or philanthropic organizations to develop and implement a workforce retention and recruitment strategy that has an organizational structure that conforms with the requirements of a policy developed by the workforce fund managers under section 10 of this chapter. Sec. 5. As used in this chapter, "qualified worker" means an individual described in section 11 of this chapter. Sec. 6. As used in this chapter, "unit" means a county, city, or town. Sec. 7. As used in this chapter, "workforce fund managers" means a workforce fund board of managers established by the executive of a unit under section 10 of this chapter. Sec. 8. (a) The executive of a unit may by resolution or executive order establish a workforce retention and recruitment program for the purposes of recruiting and retaining individuals who will satisfy the current and future workforce needs of the unit's employers or provide substantial economic impact to the unit, including providing incentives in the form of grants or loans to ES 361—LS 7135/DI 120 56 qualified workers. (b) A program must require each qualified worker who receives a grant or loan from the fund to enter into an incentive agreement with the workforce fund managers. An incentive agreement must include the following terms: (1) The duration of time each qualified worker agrees to reside within the unit following the date specified in the agreement. (2) A penalty clause if a qualified worker fails to fulfill the terms of the agreement. However, the workforce fund managers may waive a penalty under subdivision (2) regarding any part of a grant or loan that the qualified worker may have received and that is due under the incentive agreement. Sec. 9. (a) If the executive of a unit establishes a program under section 8 of this chapter, the fiscal officer of the unit shall establish a workforce retention and recruitment fund for the purposes of the program. (b) The fund shall consist of the following: (1) Any private grants or contributions. (2) Appropriations to the fund included in the unit's budget. (3) Transfers of money to the fund under section 12 of this chapter. (4) Any repayments to the fund under section 8(b) of this chapter. (c) The executive of the unit shall administer the fund in coordination with a workforce fund board of managers established under section 10 of this chapter, including any qualified nonprofit organization established by the workforce fund managers under that section. (d) Any money remaining in a fund at the end of the calendar year does not revert to the unit's general fund. Sec. 10. (a) The executive of a unit that establishes a program under section 8 of this chapter shall appoint a five (5) member workforce fund board of managers. The duties of the workforce fund managers shall include: (1) adopting rules and bylaws they consider necessary for the proper conduct of their proceedings, the carrying out of other duties, and the safeguarding of the money or property placed in their custody; (2) by resolution or in accordance with their rules and bylaws, prescribing the date and manner of notice of their regular ES 361—LS 7135/DI 120 57 meetings; (3) identifying the most appropriate and fiscally responsible incentives that will attract or retain individuals or families who will satisfy the current and future workforce needs of the unit's employers or provide substantial economic impact to the unit; (4) developing and implementing marketing strategies to recruit or retain these individuals or families; (5) identifying and recruiting applicants who may receive incentives from the fund; (6) establishing an application process for individuals and families; (7) evaluating applicants; and (8) offering incentives to qualified applicants. (b) Three (3) of the workforce fund managers constitute a quorum and the concurrence of three (3) of the workforce fund managers is necessary to authorize any action. (c) The workforce fund managers may establish a qualified nonprofit organization for purposes of carrying out a program and the purposes of a fund under this chapter. Sec. 11. To qualify for a grant or loan from a fund, an individual must be: (1) a graduate of an Indiana college or university who: (A) was a resident of another state before enrolling at the Indiana college or university; (B) relocates to a location within the unit; and (C) accepts and commences employment with an employer located within the unit under the terms of an incentive agreement; (2) an out-of-state resident who relocates to a location within the unit in order to accept and commence employment with an employer located within the unit under the terms of an incentive agreement; or (3) an out-of-state resident who relocates to a location within the unit and works remotely for an employer, regardless of the employer's domicile. Sec. 12. (a) The fiscal body of a unit may transfer or deposit the following into a fund: (1) Any private grants or contributions. (2) Appropriations to the fund included in the unit's budget. (3) Except for money in a fund with a restricted purpose, but otherwise notwithstanding any use of funds prohibition as ES 361—LS 7135/DI 120 58 long as the transfer or deposit is authorized by the relevant statutory procedure: (A) any surplus, unexpended, unappropriated, unencumbered, or otherwise available public or private money; and (B) from any general account, reverting or nonreverting fund, special account, or trust, other than a fund or account that receives bond proceeds, created or administered by any department, board, authority, commission, political subdivision, special service district, special taxing district, or any other instrumentality of local government under IC 36 with authority to collect or receive taxes, interest, or any other public or private money. (b) Notwithstanding any other statute, an executive of a unit that has established a program under section 8 of this chapter, after consulting with the fiscal body and fiscal officer of the unit, may authorize a transfer or loan to a fund from any dedicated fund or account, other than a fund or account that receives bond proceeds, before the purpose for which the dedicated fund or account was established has been accomplished. (c) Two (2) or more units may, by written agreement, collaborate, commingle funds, or otherwise work together for the benefit of administering or carrying out the purposes of the units' funds. Sec. 13. Any separate body corporate and politic or regional, multicounty, or metropolitan authority or commission may, by written agreement, establish a mutually beneficial relationship with one (1) or more units for purposes of administering or carrying out the purposes of the unit's fund or units' funds. Sec. 14. (a) Not later than April 15 of each year, the workforce fund managers shall file with the executive of the unit and fiscal body of the unit a report setting out their activities during the preceding calendar year. (b) The report of the workforce fund managers under this section must show: (1) the names of the then qualified and acting workforce fund managers; (2) the amount of the expenditures made during the preceding year and their general purpose; (3) the amount of funds on hand at the close of the calendar year; and ES 361—LS 7135/DI 120 59 (4) other information deemed necessary to disclose the activities of the workforce fund managers and the results obtained. (c) Not later than April 15 of each year, a copy of each report under this section must be submitted to the department of local government finance in an electronic format specified by the department of local government finance. SECTION 22. IC 36-7-14-57, AS ADDED BY P.L.38-2021, SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 57. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) a resolution establishing an allocation provision under section 39 of this chapter that is adopted and approved under sections 15 through 17 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; (4) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; (5) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; (6) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 8-22-3.5; (3) IC 36-7-15.1; (4) IC 36-7-30; (5) IC 36-7-30.5; or (6) IC 36-7-32; or ES 361—LS 7135/DI 120 60 (7) IC 36-7-32.5. SECTION 23. IC 36-7-15.1-63, AS ADDED BY P.L.38-2021, SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 63. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) a resolution establishing an allocation provision under section 26 of this chapter that is adopted and approved under sections 8 through 10 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; (4) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (5) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; (6) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 8-22-3.5; (3) IC 36-7-14; (4) IC 36-7-30; (5) IC 36-7-30.5; or (6) IC 36-7-32; or (7) IC 36-7-32.5. SECTION 24. IC 36-7-30-36, AS ADDED BY P.L.38-2021, SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 36. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) a resolution establishing an allocation provision under section ES 361—LS 7135/DI 120 61 25 of this chapter that is adopted and approved under sections 10 through 12 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; (4) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (5) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; (6) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 8-22-3.5; (3) IC 36-7-14; (4) IC 36-7-15.1; (5) IC 36-7-30.5; or (6) IC 36-7-32; or (7) IC 36-7-32.5. SECTION 25. IC 36-7-30.5-37, AS ADDED BY P.L.38-2021, SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 37. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) a resolution establishing an allocation provision under section 30 of this chapter that is adopted and approved under sections 16 through 18 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; ES 361—LS 7135/DI 120 62 (4) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (5) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; (6) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; or (7) a resolution designating a certified technology park as an allocation area that is approved and adopted under IC 36-7-32-15; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 8-22-3.5; (3) IC 36-7-14; (4) IC 36-7-15.1; (5) IC 36-7-30; or (6) IC 36-7-32; or (7) IC 36-7-32.5. SECTION 26. IC 36-7-32-28, AS ADDED BY P.L.38-2021, SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 28. (a) This section does not apply to a parcel that is included in more than one (1) allocation area established by: (1) a resolution designating a certified technology park as an allocation area that is approved and adopted under section 15 of this chapter; (2) a resolution adopted under IC 6-1.1-39-2 and confirmed under IC 6-1.1-39-3; (3) a resolution adopted under IC 8-22-3.5-5 and confirmed under IC 8-22-3.5-6; (4) a resolution establishing an allocation provision under IC 36-7-14-39 that is adopted and approved under IC 36-7-14-15, IC 36-7-14-16, and IC 36-7-14-17; (5) a resolution establishing an allocation provision under IC 36-7-15.1-26 that is adopted and approved under IC 36-7-15.1-8, IC 36-7-15.1-9, and IC 36-7-15.1-10; ES 361—LS 7135/DI 120 63 (6) a resolution establishing an allocation provision under IC 36-7-30-25 that is adopted and approved under IC 36-7-30-10, IC 36-7-30-11, and IC 36-7-30-12; or (7) a resolution establishing an allocation provision under IC 36-7-30.5-30 that is adopted and approved under IC 36-7-30.5-16, IC 36-7-30.5-17, and IC 36-7-30.5-18; on or before May 1, 2021. In addition, a new allocation area may not be established under this chapter that includes a parcel that is located in an allocation area described in this subsection. (b) Except as provided in subsection (a), but notwithstanding any other provision, for the purpose of the allocation of property taxes under this chapter, a parcel may not be included in more than one (1) allocation area established under this chapter or under: (1) IC 6-1.1-39; (2) IC 8-22-3.5; (3) IC 36-7-14; (4) IC 36-7-15.1; (5) IC 36-7-30; or (6) IC 36-7-30.5; or (7) IC 36-7-32.5.". Page 20, delete line 5. Page 20, line 6, delete "(1) the". Page 20, run in lines 4 through 6. Page 20, line 7, after "property" insert "that is assessed as commercial or industrial property under the rules of the department of local government finance and is". Page 20, line 10, delete "8" and insert "10". Page 20, line 10, delete "chapter; plus" and insert "chapter.". Page 20, delete lines 11 through 15. Page 20, between lines 15 and 16, begin a new paragraph and insert: "Sec. 2. As used in this chapter, "board" refers to the innovation development district board established under section 14 of this chapter to govern an innovation development district. Sec. 3. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1.". Page 20, line 16, delete "2." and insert "4.". Page 20, line 18, after "businesses" insert ": (1)". Page 20, line 19, after "district" insert "; and (2) that is, in the case of the: (A) state gross retail tax, collected by a business for sales ES 361—LS 7135/DI 120 64 occurring at a physical location of the business in the innovation development district; and (B) state use tax, incurred with regard to property used in the innovation development district;". Page 20, line 19, beginning with "during" begin a new line blocked left. Page 20, line 21, delete "8" and insert "10". Page 20, line 23, delete "3." and insert "5.". Page 20, line 26, after "businesses" insert ": (A)". Page 20, line 27, after "district" insert "; and (B) that is, in the case of the: (i) state gross retail tax, collected by a business for sales occurring at a physical location of the business in the innovation development district; and (ii) state use tax, incurred with regard to property used in the innovation development district;". Page 20, line 28, beginning with "during" begin a new line block indented. Page 20, line 31, delete "4." and insert "6.". Page 20, line 32, delete "the following" and insert "adjusted gross income". Page 20, line 37, delete "8 of this chapter:" and insert "10 of this chapter.". Page 20, delete lines 38 through 39. Page 20, line 40, delete "5." and insert "7.". Page 20, line 42, delete "and". Page 21, line 1, delete "local income taxes". Page 21, line 7, delete "and" and insert "plus". Page 21, between lines 13 and 14, begin a new paragraph and insert: "Sec. 8. As used in this chapter, "legislative body" means the following: (1) The board of county commissioners, for a county not subject to IC 36-2-3.5 or IC 36-3-1. (2) The county council, for a county subject to IC 36-2-3.5. (3) The city-county council, for a consolidated city or county having a consolidated city. (4) The common council, for a city other than a consolidated city. (5) The town council, for a town.". Page 21, line 14, delete "6." and insert "9.". Page 21, line 16, delete "and" and insert "plus". ES 361—LS 7135/DI 120 65 Page 21, delete lines 19 through 42, begin a new paragraph and insert: "Sec. 10. (a) Before the corporation may designate territory within the jurisdiction of a city, town, or county, or within the jurisdiction of more than one (1) city, town, or county, as an innovation development district under this section, the board of the corporation established under IC 5-28-4 shall establish policies and guidelines that the corporation must follow when notifying and collaborating with a legislative body, or, if applicable, legislative bodies, to designate territory within the jurisdiction of a city, town, or county as an innovation development district under this section. (b) After notifying and collaborating with the legislative body, or, if an innovation development district will include territory within the jurisdiction of more than one (1) city, town, or county, with the legislative bodies, in the manner provided under the policies and guidelines established under subsection (a), the corporation may designate territory within the jurisdiction of a city, town, or county, or territory within the jurisdiction of more than one (1) city, town, or county, as an innovation development district if the corporation determines that the designation will support economic growth. (c) The corporation may not designate an innovation development district under this section after June 30, 2025. Sec. 11. (a) The corporation may not designate an area as an innovation development district under section 10 of this chapter, if the business or businesses that are expected to locate within the innovation development district: (1) currently operate in Indiana in a location outside of the proposed innovation development district; and (2) intend to substantially reduce or cease operations at the other location or locations within Indiana in order to relocate to a location within the innovation development district. (b) 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 8-22-3.5, IC 36-7-14, IC 36-7-15.1, IC 36-7-30, IC 36-7-30.5, IC 36-7-32, IC 36-7.5-4.5, or any other provision that authorizes the establishment of an allocation area. (c) A development within the innovation development district is subject to any zoning ordinance or other zoning law that otherwise applies to territory within the innovation development district. Sec. 12. (a) Except as provided in subsection (b), after June 30, ES 361—LS 7135/DI 120 66 2022, and before July 1, 2025, the corporation may not designate more than five (5) innovation development districts under section 10 of this chapter. (b) Notwithstanding subsection (a), after June 30, 2022, and before July 1, 2025, the corporation may designate additional innovation development districts under section 10 of this chapter after review by the budget committee. Sec. 13. The term of an area's designation as an innovation development district may not exceed thirty (30) years. Sec. 14. (a) After an innovation development district is designated under section 10 of this chapter, the legislative body, or, if applicable, the legislative bodies, and the corporation shall establish an innovation development district board to govern the innovation development district. (b) The board consists of five (5) members appointed as follows: (1) Three (3) members appointed by the secretary of commerce appointed under IC 5-28-3-4. (2) Two (2) members appointed by the legislative body, or, if applicable, the legislative bodies. Each member of the board must be a resident of the county, or, if applicable, one (1) of the counties, in which the innovation development district is located. A member of the board serves at the pleasure of the appointing authority. A vacancy on the board shall be filled in the same manner as the original appointment. (c) After the members of have been appointed under this section, the board and the corporation shall enter into an agreement establishing the terms and conditions governing the innovation development district. After entering into the agreement, the". Page 22, delete lines 1 through 28. Page 22, line 32, delete "(b)" and insert "(d)". Page 22, line 33, delete "area" and insert "area, including a list of all parcels". Page 23, line 2, after "district" delete ", as determined by the corporation." and insert ".". Page 23, delete lines 3 through 5. Page 23, line 6, delete "(6)" and insert "(5)". Page 23, line 7, after "amount" insert "described in section 16(c) of this chapter that is". Page 23, line 9, delete "(7)" and insert "(6)". Page 23, line 10, delete "corporation's". Page 23, line 12, delete "(8)" and insert "(7)". ES 361—LS 7135/DI 120 67 Page 23, line 17, delete "(9)" and insert "(8)". Page 23, line 18, after "and the" insert "estimated". Page 23, line 18, after "facilities" delete ", as" and insert ".". Page 23, delete line 19, begin a new paragraph and insert: "(e) Within fifteen (15) days of entering into an agreement under subsection (c), the corporation shall submit a written report on the agreement to the budget committee.". Page 23, line 20, delete "10." and insert "15.". Page 23, line 20, delete "If the corporation designates an area as an" and insert "After the corporation and a board enter into an agreement described in section 14 of this chapter concerning the terms and conditions governing the". Page 23, line 21, delete "redevelopment commission" and insert "legislative body, or, if applicable, legislative bodies,". Page 23, line 26, delete "redevelopment commission" and insert "legislative body, or, if applicable, legislative bodies,". Page 23, line 34, delete "following:". Page 23, line 35, delete "(i) The". Page 23, run in lines 34 through 35. Page 23, delete lines 39 through 40. Page 23, line 42, delete "must state that written remonstrances" and insert "include a list of all parcels to be included within the innovation development district.". Delete page 24. Page 25, delete lines 1 through 12. Page 25, line 13, delete "12." and insert "16.". Page 25, line 13, delete "10" and insert "15". Page 25, line 16, delete "after December 31,". Page 25, line 17, delete "2023, and". Page 25, line 17, after "property" insert "used for commercial or industrial purposes". Page 25, line 38, delete "provided in subsections (d) and (e)," and insert "as provided in subsection (d),". Page 25, line 39, delete "that exceed those described in subsection (b) shall be" and insert "that: (1) exceed those described in subsection (b); and (2) are attributable to the assessed value of taxable property used for commercial or industrial purposes; shall be paid into the appropriate local innovation development district fund established by section 21 of this chapter by the county auditor at the same time that the county auditor distributes property taxes to other local units of government under ES 361—LS 7135/DI 120 68 IC 6-1.1-27. Any remaining property tax proceeds that exceed those described in subsection (b) that are not described in subdivision (2) shall be allocated and, when collected, paid into the funds of the respective taxing units.". Page 25, delete lines 40 through 42. Page 26, delete lines 1 through 6. Page 26, line 7, delete "(e)" and insert "(d)". Page 26, line 8, delete "corporation," and insert "board,". Page 26, line 11, delete "(f)" and insert "(e)". Page 26, line 19, delete "13. The corporation or a redevelopment commission" and insert "17. (a) A board". Page 26, line 29, delete "An agreement described in this section". Page 26, delete lines 30 through 32, begin a new paragraph and insert: "(b) Notwithstanding any other law, a board may exempt from taxation any tangible real or personal property that is: (1) assessed as commercial or industrial property under the rules of the department of local government finance; and (2) located within the innovation development district.". Page 26, line 33, delete "14." and insert "18.". Page 26, line 33, delete "accounts and" and insert "accounts, the department of state revenue, and the". Page 26, line 34, delete "shall make the rules" and insert "may adopt rules under IC 4-22-2". Page 26, line 35, delete "accounts and" and insert "accounts, the department of state revenue, and the". Page 26, line 37, delete "allocation area" and insert "innovation development district". Page 26, line 37, after "chapter." insert "However, before adopting rules under this section, the state board of accounts, the department of state revenue, and the department of local government finance shall submit a report to the budget committee that: (1) describes the rules proposed by the state board of accounts, the department of state revenue, and the department of local government finance; and (2) recommends statutory changes necessary to implement the provisions of this chapter.". Page 27, line 1, after "to the" insert "local". Page 27, line 2, delete "under section 17" and insert "established by section 21". Page 27, line 2, delete "After", begin a new paragraph and insert: ES 361—LS 7135/DI 120 69 "(c) After". Page 27, line 5, after "to the" insert "local". Page 27, line 6, delete "17" and insert "21". Page 27, line 8, delete "15." and insert "19.". Page 27, line 8, delete "9" and insert "14". Page 27, line 9, delete "redevelopment commission" and insert "board". Page 27, line 12, delete "8" and insert "10". Page 27, line 14, delete "9" and insert "14". Page 27, line 19, delete "redevelopment commission" and insert "board". Page 27, line 25, delete "16." and insert "20.". Page 27, line 32, after "the department" insert "of state revenue". Page 28, line 4, after "to the" insert "applicable local". Page 28, line 5, delete "by section 17" and insert "for the innovation development district under section 21". Page 28, between lines 6 and 7, begin a new paragraph and insert: "Sec. 21. (a) Each board shall establish a local innovation development district fund for an innovation development district designated under section 10 of this chapter. (b) Each fund consists of: (1) deposits of incremental property tax revenue from the county auditor as provided in section 16(c) of this chapter; and (2) transfers from the department under section 20 of this chapter. (c) The board established for the innovation development district shall administer each local innovation development district fund established under this section. The expenses of administering each fund shall be paid from money in that fund. (d) A board may use money in each fund for the following purposes: (1) The acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of public facilities, including but not limited to utilities and transportation infrastructure. (2) The operation of public facilities. (3) The acquisition of land within the innovation development district. (4) The recruitment of new businesses and new employees to the innovation development district. ES 361—LS 7135/DI 120 70 (5) The training of individuals employed in the innovation development district. (6) For any other purpose authorized by an agreement between the corporation and the board entered into under section 14 of this chapter. (e) Not later than August 1 of each year, the board shall transfer an amount equal to twelve percent (12%) of the incremental property tax revenues that were deposited into the fund in the immediately preceding state fiscal year to the general fund of each city, town, county, or school corporation with territory located within the innovation development district. If the board is required to transfer funds to more than one (1) city, town, county, or school corporation under this subsection, the amount transferred to each city, town, county, and school corporation must be allocated among each city, town, county, and school corporation proportionately based on each city's, town's, county's, and school corporation's gross property tax levy. (f) This subsection applies only to a city, town, or county that receives funds under subsection (e). A city, town, or county may use funds received under subsection (e) to pay any: (1) costs incurred by the city, town, or county to construct, maintain, or operate utilities, transportation infrastructure, or any other public facility that provides services to the innovation development district; or (2) other costs deemed necessary by the city, town, or county to provide police or fire protection to the innovation development district. (g) Each state fiscal year, the board may, after making the transfer required under subsection (e) and satisfying all debt service obligations due and payable during the state fiscal year for bonds issued under IC 5-1.2-4-4(a)(2), transfer from each local innovation development district fund to the statewide innovation development district fund established by section 22 of this chapter an amount not to exceed one hundred percent (100%) of the net incremental revenue derived from state income taxes and gross retail taxes deposited into each fund during the immediately preceding state fiscal year. (h) Money in each local innovation development district fund at the end of a state fiscal year does not revert to the state general fund. (i) Money in each local innovation development district fund is continuously appropriated for the purposes specified in this ES 361—LS 7135/DI 120 71 section.". Page 28, line 7, delete "17." and insert "22.". Page 28, line 7, after "The" insert "statewide". Page 28, line 9, delete "an advanced". Page 28, line 12, delete "the general fund by the department of" and insert "a local innovation development district fund under section 21(g) of this chapter. (2) Appropriations from the general assembly.". Page 28, delete lines 13 through 15. Page 28, line 20, delete "Expense" and insert "The expenses". Page 28, line 27, delete "IC 36-7-32-23(b)." and insert "section 21(d) of this chapter.". Page 28, line 29, delete "and to support the expansion of industry in the state." and insert ".". Page 28, line 30, delete "the acquisition, development or investment in" and insert "costs associated with creating new innovation development districts.". Page 28, delete lines 31 through 32. Page 28, line 36, delete "in the interest of economic" and insert ".". Page 28, delete line 37. Page 28, line 40, delete "technology and equipment modernization and" and insert "workforce". Page 28, line 41, delete "development, and". Page 29, delete lines 1 through 3, begin a new paragraph and insert: "(f) The corporation may use money in the fund to make a payment in lieu of a growing economy tax credit as provided in IC 6-3-5-5.". Page 29, line 4, delete "18. (a) Money in the" and insert "23. (a) Except as provided in subsection (b), money in the statewide". Page 29, line 5, delete "17" and insert "22". Page 29, between lines 6 and 7, begin a new paragraph and insert: "(b) Notwithstanding subsection (a), if the unobligated balance of the statewide innovation development district fund established by section 22 of this chapter exceeds five hundred million dollars ($500,000,000) at the close of any state fiscal year, the amount of funds in excess of five hundred million dollars ($500,000,000) shall be transferred to the state general fund.". Page 29, line 7, delete "(b)" and insert "(c)". Page 29, delete lines 9 through 23. Page 29, line 24, delete "20." and insert "24.". Page 29, line 26, after "IC 5-28-28-5" insert ", and to the budget committee, that includes". ES 361—LS 7135/DI 120 72 Page 29, line 27, delete "including". Page 29, line 29, delete "Innovation Development District" and insert "innovation development district". Page 29, line 31, delete "fund" and insert "statewide innovation development district fund established by section 22 of this chapter that are". Page 29, line 32, after "each" insert "innovation development". Page 29, line 33, after "all" insert "innovation development". Page 29, line 35, delete "fund for each district and for all districts statewide." and insert "statewide innovation development district fund established by section 22 of this chapter for each innovation development district and for all innovation development districts statewide. (4) The amount and name of each entity for which there is a unfunded obligation at the close of each state fiscal year. (5) A report on each innovation development district designated under this chapter that includes a description of: (A) the general boundaries of the innovation development district; (B) the total acreage encompassed within the innovation development district; (C) the base assessed value of the innovation development district; (D) the gross retail base period amount determined for the innovation development district; (E) the income tax base period amount determined for the innovation development district; (F) the gross assessed value of all tangible real and personal property, without regard to any exemption granted by the board under section 17(b) of this chapter, that is: (i) assessed as commercial or industrial property under the rules of the department of local government finance; and (ii) located within the innovation development district; in each calendar year after the calendar year in which the innovation development district was designated; (G) the amount of incremental property tax revenue deposited into the local innovation development district fund established by section 21 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; ES 361—LS 7135/DI 120 73 (H) the amount of incremental state gross retail and use tax revenue deposited into the local innovation development district fund established by section 21 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (I) the amount of incremental state adjusted gross income tax revenue deposited into the local innovation development district fund established by section 21 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (J) the amount of revenue deposited into the local innovation development district fund established by section 21 of this chapter that was transferred into the statewide innovation development district fund established under section 22 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (K) the aggregate amount of bonds issued by the Indiana finance authority under IC 5-1.2-4-4(a)(2) to pay for projects within the innovation development district; (L) the annual amount of debt service payments due on the bonds described in clause (K); and (M) a description of all economic development incentives granted by the corporation to businesses located within the innovation development district. SECTION 28. [EFFECTIVE UPON PASSAGE] (a) For the biennium beginning July 1, 2021, and ending June 30, 2023, the budget agency shall augment from the state general fund the amount of money appropriated for the Indiana economic development corporation for business promotion and innovation in P.L.165-2021, SECTION 6, by an amount not to exceed three hundred million dollars ($300,000,000). Notwithstanding P.L.165-2021 or any other law, the Indiana economic development corporation may transfer any funds allocated for business promotion and innovation to the statewide innovation development district fund established by IC 36-7-32.5-22 or to the Indiana promotion fund established by IC 5-28-5-12. (b) Notwithstanding any other law, funds appropriated to the Indiana economic development corporation for business promotion and innovation do not revert to the state general fund at the end of ES 361—LS 7135/DI 120 74 the state fiscal year and remain available in subsequent state fiscal years for the uses specified under state law. (c) This SECTION expires July 1, 2025. SECTION 29. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1. (b) The corporation shall identify and review state laws and regulations that: (1) are burdensome to existing Indiana businesses; or (2) inhibit the creation of new businesses and industries in the state. (c) Not later than November 1, 2022, the corporation shall provide a report with recommendations for amending the state laws and regulations identified and reviewed under subsection (b) to the general assembly and the budget committee in an electronic format under IC 5-14-6. (d) This SECTION expires July 1, 2023. SECTION 30. An emergency is declared for this act.". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to SB 361 as reprinted February 1, 2022.) BROWN T Committee Vote: yeas 14, nays 8. ES 361—LS 7135/DI 120