Indiana Senate Bill SB0361 Latest Draft

                            Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 361
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:
SECTION 1. IC 5-1.2-4-4, AS ADDED BY P.L.189-2018,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) 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) 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 issue bonds
under terms and conditions determined by the authority
payable solely from:
(A) revenues that are deposited in a local innovation
development district fund established under
SEA 361 — CC 1 2
IC 36-7-32.5-19;
(B) revenues generated from a project under
IC 36-7-32.5-19; and
(C) appropriations from the general assembly; and
(2) (3) perform any other functions determined by the authority to
be necessary or appropriate to carry out the purposes of this
section.
(b) The proceeds of bonds issued under subsection (a)(2) may be
used to pay the costs of projects:
(1) described in IC 36-7-32.5-19; and
(2) located within or directly serving 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).
SECTION 2. IC 5-28-2-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 1.5. "Applicable tax credit" means a tax credit
available under any of the following:
(1) IC 6-3.1-13.
(2) IC 6-3.1-19.
(3) IC 6-3.1-26.
(4) IC 6-3.1-30.
(5) IC 6-3.1-34.
(6) IC 6-3.1-36.
SECTION 3. IC 5-28-6-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 9. (a) 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
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.
SEA 361 — CC 1 3
(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 designated as exempt under
IC 36-7-32.5-15(b) by an executive or the Indiana economic
development corporation 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)
allocation area under this chapter or under:
(1) IC 8-22-3.5;
(2) IC 36-7-14;
(3) IC 36-7-15.1;
SEA 361 — CC 1 4
(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 6. IC 6-3-5-5 IS ADDED TO THE INDIANA CODE AS
A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2022]: Sec. 5. (a) If the Indiana economic development corporation
established by IC 5-28-3-1 enters into an agreement with a
taxpayer for an economic development for a growing economy tax
credit under IC 6-3.1-13, and the taxpayer elects to forgo claiming
the credit against any state tax liability for that taxable year and
requests the department to remit to the taxpayer an amount equal
to the credit for the taxable year as set forth under
IC 6-3.1-13-20(b), the provisions of this section shall apply.
(b) Before making a payment to a taxpayer under this section,
the taxpayer shall provide to the department:
(1) a copy of the taxpayer's agreement with the Indiana
economic development corporation;
(2) the credit awarded to the taxpayer for that taxable year;
and
(3) any other information required by the department.
(c) A payment by the department cannot exceed the actual
incremental income tax withholdings collected by the department
as a result of the employment of new employees subject to an
agreement entered into under IC 6-3.1-13.
(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
SEA 361 — CC 1 5
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.
(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.
SEA 361 — CC 1 6
(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 36-7-32.5-20. Payments made under this section
are subject to available funding.
SECTION 7. IC 6-3.1-13-17, AS AMENDED BY P.L.197-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 17. (a) If the applicant proposes a project that
will be located at a physical location in Indiana, in determining the
credit amount that should be awarded to an applicant under section 15
of this chapter that proposes a project to create jobs in Indiana, the
corporation may take into consideration the following factors:
(1) The economy of the county where the projected investment is
to occur.
(2) The potential impact on the economy of Indiana.
(3) The incremental payroll attributable to the project.
(4) The capital investment attributable to the project.
(5) The amount the average wage paid by the applicant exceeds
the average wage paid:
(A) within the county in which the project will be located, in
the case of an application submitted before January 1, 2006; or
(B) in the case of an application submitted after December 31,
2005:
(i) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in the
county in which the applicant's business is located, if there
is more than one (1) business in that NAICS industry sector
in the county in which the applicant's business is located;
(ii) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in Indiana,
if the applicant's business is the only business in that NAICS
industry sector in the county in which the applicant's
business is located but there is more than one (1) business in
that NAICS industry sector in Indiana; or
(iii) to all employees working in the same county as the
county in which the applicant's business is located, if there
is no other business in Indiana in the same NAICS industry
sector to which the applicant's business belongs.
(6) The costs to Indiana and the affected political subdivisions
with respect to the project.
(7) The financial assistance and incentives that are otherwise
SEA 361 — CC 1 7
provided by Indiana and the affected political subdivisions.
(8) The extent to which the incremental income tax withholdings
attributable to the applicant's project are needed for the purposes
of an incremental tax financing fund or industrial development
fund under IC 36-7-13 or a certified technology park fund under
IC 36-7-32.
As appropriate, the corporation shall consider the factors in this section
subsection to determine the credit amount awarded to an applicant for
a project to retain existing jobs in Indiana under section 15.5 of this
chapter.
(b) Subject to the limitations of subsection (c), if an applicant
proposes a project that proposes to create new jobs in Indiana but
does not propose a physical location in Indiana, the corporation
may consider the following factors:
(1) The potential impact on the economy in Indiana.
(2) The incremental payroll attributable to the project.
(3) The amount of average wage paid by the applicant that
exceeds the average wage paid to all employees working in the
same NAICS industry sector to which the applicant's business
belongs in Indiana.
(4) The cost to Indiana with respect to the project.
(5) The financial assistance and incentives that are otherwise
provided by Indiana.
(6) The extent of Indiana income tax that is paid by eligible
employees.
(c) An applicant proposing a project that meets the
requirements of subsection (b) must propose:
(1) to create at least fifty (50) new full-time jobs; and
(2) to pay an average hourly wage of at least one hundred fifty
percent (150%) of the state average wage;
in order to be eligible to receive a credit under this chapter.
SECTION 8. IC 6-3.1-13-18, AS AMENDED BY P.L.86-2018,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 18. (a) The corporation shall determine the
amount and duration of a tax credit awarded under this chapter. The
duration of the credit may not exceed ten (10) twenty (20) taxable
years. The credit may be stated as a percentage of the incremental
income tax withholdings attributable to the applicant's project and may
include a fixed dollar limitation. In the case of a credit awarded for a
project to create new jobs in Indiana, the credit amount may not exceed
the incremental income tax withholdings. However, the credit amount
claimed for a taxable year may exceed the taxpayer's state tax liability
SEA 361 — CC 1 8
for the taxable year, in which case the excess may, at the discretion of
the corporation, be refunded to the taxpayer.
(b) For state fiscal year 2006 and each state fiscal year thereafter,
the aggregate amount of credits awarded under this chapter for projects
to retain existing jobs in Indiana may not exceed ten million dollars
($10,000,000) per year.
(c) (b) This subsection does not apply to a business that was
enrolled and participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business in
Indiana in the taxable year. A credit under this chapter may not be
computed on any amount withheld from an individual or paid to an
individual for services provided in Indiana as an employee, if the
individual was, during the period of service, prohibited from being
hired as an employee under 8 U.S.C. 1324a.
SECTION 9. IC 6-3.1-13-20, AS AMENDED BY P.L.4-2005,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 20. (a) Except as provided in subsection (b), a
taxpayer claiming a credit under this chapter must claim the credit on
the taxpayer's annual state tax return or returns in the manner
prescribed by the department of state revenue. The taxpayer shall
submit to the department of state revenue all information that the
department determines necessary for the calculation of the credit
provided by this chapter and the determination of whether the credit
was properly claimed.
(b) Notwithstanding subsection (a), if a taxpayer is entitled to a
credit under this chapter, the taxpayer may, with the approval of
the corporation, elect to forgo claiming the credit against any state
tax liability and submit the credit to the department with a request
to receive a payment from the corporation, to be paid from funds
appropriated to the corporation for business promotion and
innovation or from the statewide innovation development district
fund established by IC 36-7-32.5-20, that is equal to the credit for
that taxable year as provided in IC 6-3-5-5.
SECTION 10. 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
SEA 361 — CC 1 9
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
thirty percent (30%).
(2) One million five hundred thousand dollars ($1,500,000).
SECTION 11. IC 6-3.1-26-20, AS AMENDED BY P.L.158-2019,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 20. (a) The corporation shall certify the amount
of the qualified investment that is eligible for a credit under this
chapter. In determining the credit amount that should be awarded, the
corporation shall grant a credit only for the amount of the qualified
investment that is directly related to:
(1) expanding the workforce in Indiana; or
(2) substantially enhancing the logistics industry and or
improving the overall Indiana economy.
SEA 361 — CC 1 10
(b) The total amount of credits that the corporation may approve
under this chapter for a state fiscal year for all taxpayers for all
qualified investments is:
(1) fifty million dollars ($50,000,000) for credits based on a
qualified investment that is not being claimed as a logistics
investment; and
(2) five million dollars ($5,000,000) for credits based on a
qualified investment that is being claimed as a logistics
investment.
For purposes of applying the limit under this subsection, a tax credit
that is accelerated under section 15(d) or 16(d) of this chapter shall be
valued at the amount of the tax credit before the tax credit is
discounted.
(c) (b) A person that desires to claim a tax credit for a qualified
investment shall file with the department, in the form that the
department may prescribe, an application:
(1) stating separately the amount of the credit awards for qualified
investments that have been granted to the taxpayer by the
corporation that will be claimed as a credit; that is covered by:
(A) subsection (b)(1); and
(B) subsection (b)(2);
(2) stating separately the amount sought to be claimed as a credit;
that is covered by:
(A) subsection (b)(1); and
(B) subsection (b)(2); and
(3) identifying whether the credit will be claimed during the state
fiscal year in which the application is filed or the immediately
succeeding state fiscal year.
(d) (c) The department shall separately record the time of filing of
each application for a credit award for a qualified investment covered
by subsection (b)(1) and for a qualified investment covered by
subsection (b)(2) and shall, except as provided in subsection (e), (d),
approve the credit to the taxpayer in the chronological order in which
the application is filed in the state fiscal year. The department shall
promptly notify an applicant whether, or the extent to which, the tax
credit is allowable in the state fiscal year proposed by the taxpayer.
(e) (d) If the total credit awards for qualified investments, that are
covered by:
(1) subsection (b)(1); and
(2) subsection (b)(2);
including carryover credit awards covered by each subsection for a
previous state fiscal year, equal the maximum amount allowable in the
SEA 361 — CC 1 11
state fiscal year, an application for such a credit award that is filed later
for that same state fiscal year may not be granted by the department.
However, if an applicant for which a credit has been awarded and
applied for with the department fails to claim the credit, an amount
equal to the credit previously applied for but not claimed may be
allowed to the next eligible applicant or applicants until the total
amount has been allowed.
SECTION 12. IC 6-3.1-30-8, AS AMENDED BY P.L.158-2019,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) Subject to entering into an agreement with
the corporation under sections 14 and 15 of this chapter, if the
corporation certifies that a taxpayer:
(1) is an eligible business;
(2) completes a qualifying project; and
(3) incurs relocation costs; and
(4) employs:
(A) at least seventy-five (75) employees in Indiana, in the case
of a taxpayer that qualifies as an eligible business under
section 2(1) of this chapter; or
(B) at least ten (10) employees in Indiana, in the case of a
taxpayer that qualifies as an eligible business under section
2(2) of this chapter;
the taxpayer is entitled to a credit against the taxpayer's state tax
liability for the taxable year in which the relocation costs are incurred.
subject to subsection (c). The credit allowed under this section is equal
to the amount determined under section 9 of this chapter.
(b) For purposes of establishing the employment level required by
subsection (a)(4), a taxpayer may include:
(1) individuals who:
(A) were employed in Indiana by the taxpayer before the
taxpayer commenced a qualifying project; and
(B) remain employed in Indiana after the completion of the
taxpayer's qualifying project; and
(2) individuals who:
(A) were not employed in Indiana by the taxpayer before the
taxpayer commenced a qualifying project; and
(B) are employed in Indiana by the taxpayer as a result of the
completion of the taxpayer's qualifying project.
(c) The total amount of credits that may be approved by the
corporation for all eligible businesses described in section 2(2) of this
chapter may not exceed five million dollars ($5,000,000) in a state
fiscal year.
SEA 361 — CC 1 12
SECTION 13. IC 6-3.1-34-6, AS AMENDED BY P.L.154-2020,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. As used in this chapter, "qualified
redevelopment site" means a vacant or underutilized property in
Indiana as determined by the corporation.
(1) land on which a vacant building or complex of buildings was
placed in service at least fifteen (15) years before the date on
which the application is filed with the corporation under this
chapter;
(2) land on which a vacant building or complex of buildings:
(A) was placed in service at least fifteen (15) years before the
date on which the demolition of the vacant building or
complex of buildings was completed; and
(B) that was demolished in an effort to protect the health,
safety, and welfare of the community;
(3) land on which a vacant building or complex of buildings:
(A) was placed in service at least fifteen (15) years before the
date on which the demolition of the vacant building or
complex of buildings was completed;
(B) was placed in service as a public building;
(C) was owned by a unit of local government; and
(D) has not been redeveloped since the building was taken out
of service as a public building;
(4) vacant land;
(5) mine reclamation site; or
(6) brownfields consisting of more than fifty (50) acres.
For a complex of buildings to be considered a qualified redevelopment
site under subdivision (1), (2) or (3), the buildings must have been
located on a single parcel or contiguous parcels of land that were under
common ownership at the time the site was placed in service.
SECTION 14. IC 6-3.1-34-8, AS ADDED BY P.L.158-2019,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. As used in this chapter, "rehabilitation" means
the betterment of real property including remodeling or repair. in any
way.
SECTION 15. IC 6-3.1-34-16, AS ADDED BY P.L.158-2019,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 16. (a) The corporation shall consider the
following factors in deciding whether to award a credit under this
chapter for a proposed qualified investment:
(1) Evidence that the project aligns with the community's
development plans.
SEA 361 — CC 1 13
(2) The economic development potential for the project for which
the taxpayer proposes to make the qualified investment.
(3) Evidence of barriers preventing the development or
redevelopment of the qualified redevelopment site in which the
qualified investment is made, such as significant environmental
contamination requiring remediation.
(4) The level of commitment by the public sector and local
government to assist in the financing of improvements or
redevelopment activities benefiting the qualified redevelopment
site in which the qualified investment is made.
(5) Evidence of support by residents, businesses, and private
organizations in the surrounding community for the project for
which the taxpayer proposes to make the qualified investment.
(6) The level of economic distress in the surrounding community
and the extent to which the project for which the taxpayer
proposes to make the qualified investment mitigates the economic
distress.
(7) The extent to which the project is estimated to enhance the
economic opportunity, health, safety, aesthetics, or amenities of
the community in a manner that:
(A) improves quality of life factors for residents of the region;
and
(B) increases the ability of the region to attract and retain a
talented workforce.
(8) Any other factors as determined by the corporation.
(b) The corporation shall not approve an application to receive a tax
credit under this chapter for a qualified investment made in a qualified
redevelopment site described in section 6(2) of this chapter unless the
applicant can provide evidence that the local unit having jurisdiction
over the property made a determination that the qualified
redevelopment site was unsafe (as defined in IC 36-7-9-4), and the
local unit took appropriate steps to remedy the unsafe conditions at the
qualified redevelopment site, which led to its demolition.
SECTION 16. IC 6-3.1-34-17, AS AMENDED BY P.L.154-2020,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 17. (a) The following apply if the corporation
determines that a credit should be awarded under this chapter:
(1) The corporation shall require the taxpayer to enter into an
agreement with the corporation as a condition of receiving a
credit under this chapter.
(2) The agreement with the corporation must:
(A) prescribe the method of certifying the taxpayer's qualified
SEA 361 — CC 1 14
investment; and
(B) include provisions that authorize the corporation to work
with the department and the taxpayer, if the corporation
determines that the taxpayer is noncompliant with the terms of
the agreement or the provisions of this chapter, to bring the
taxpayer into compliance or to protect the interests of the state.
(3) The corporation shall specify the taxpayer's expenditures that
will be considered a qualified investment.
(4) The corporation shall determine the applicable credit
percentage under subsections (b) and (c).
(b) If the corporation determines that a credit should be awarded
under this chapter, the corporation shall determine the applicable credit
percentage for a qualified investment certified by the corporation.
However, and except as provided in subsection (c), the applicable
credit percentage may not exceed the following: thirty percent (30%).
(1) If the qualified redevelopment site was placed in service at
least fifteen (15) years ago but less than thirty (30) years ago, or
is vacant land or a brownfield described in section 6(6) of this
chapter:
(A) fifteen percent (15%), if the qualified redevelopment site
is part of a development plan of a regional development
authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
(B) ten percent (10%), if the qualified redevelopment site is
not part of a development plan of a regional development
authority described under clause (A).
(2) If the qualified redevelopment site was placed in service at
least thirty (30) years ago but less than forty (40) years ago:
(A) twenty percent (20%), if the qualified redevelopment site
is part of a development plan of a regional development
authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
(B) ten percent (10%), if the qualified redevelopment site is
not part of a development plan of a regional development
authority described under clause (A).
(3) If the qualified redevelopment site was placed in service at
least forty (40) years ago:
(A) twenty-five percent (25%), if the qualified redevelopment
site is part of a development plan of a regional development
authority established under IC 36-7.5-2-1 or IC 36-7.6-2-3; or
(B) fifteen percent (15%), if the qualified redevelopment site
is not part of a development plan of a regional development
authority described under clause (A).
(c) The corporation may increase the credit amount by not more
SEA 361 — CC 1 15
than an additional five percent (5%) if:
(1) the qualified redevelopment site is located in a federally
designated qualified opportunity zone (Section 1400Z-1 and
1400Z-2 of the Internal Revenue Code); or
(2) the project qualifies for federal new markets tax credits under
Section 45D of the Internal Revenue Code.
(d) To be eligible for the credit for a qualified investment, a
taxpayer's expenditures that are considered a qualified investment must
be certified by the corporation not later than two (2) taxable years after
the end of the calendar year in which the taxpayer's expenditures are
made.
SECTION 17. IC 6-3.1-34-18, AS ADDED BY P.L.158-2019,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 18. (a) Subject to subsection (e), Except as
provided in subsection (b), if the corporation awards a tax credit to
a taxpayer under this chapter that exceeds twenty million dollars
($20,000,000), the corporation shall include in an agreement
entered into under section 17 of this chapter a provision that
requires the taxpayer to repay to the corporation the portion of the
credit that exceeds twenty million dollars ($20,000,000) with
interest. may, as part of an agreement entered into under section 17 of
this chapter:
(1) require a taxpayer to repay all or part of a credit awarded
under this chapter over a period of years; and
(2) limit the maximum amount of a credit awarded to a taxpayer
under this chapter that may be claimed during a taxable year.
(b) The corporation may elect to enter into an agreement with a
local unit that has jurisdiction over the real property that is subject to
the proposed qualified investment, through which such agreement the
local unit commits local revenue generated by the project to the
corporation rather than the corporation including a repayment provision
in an agreement with a taxpayer under subsection (a)(1). The total
amount of revenue committed under an agreement entered into under
this subsection may not exceed the credit repayment amount
determined under subsection (a)(1). Any amounts received under an
agreement entered into under this subsection shall be deposited in the
state general fund.
(c) Notwithstanding subsections (a) and (b), if the corporation
awards a tax credit to a taxpayer under this chapter that exceeds seven
million dollars ($7,000,000), the corporation shall include in an
agreement entered into under section 17 of this chapter a provision that
requires the taxpayer to repay the portion of the credit that exceeds
SEA 361 — CC 1 16
seven million dollars ($7,000,000).
(b) Notwithstanding subsection (a), the corporation may exclude
from its agreement entered into under section 17 of this chapter a
repayment provision for any portion of the credit if the award is
for a qualified redevelopment site subject to a proposal that will
result in a qualified investment of at least one hundred million
dollars ($100,000,000).
(d) (c) If the corporation enters into an agreement with a taxpayer
under section 17 of this chapter that includes a repayment provision
under subsection (a)(1) or (c), (a), the corporation shall include in the
repayment provision a provision establishing the interest rate that will
be applied. The interest rate shall be determined by the board and
approved by the budget agency.
(e) (d) This subsection applies to an active multi-phased project
occurring on a defined footprint for which the taxpayer has received
approval for at least the first phase of the active multi-phased project
from the corporation's board before July 1, 2018, for a tax credit under
IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The
following apply to a project described in this subsection:
(1) Only qualified investments that are made after June 30, 2021,
are eligible for a credit award under this chapter.
(2) The annual amount of credits awarded under this chapter for
the project may not exceed five million dollars ($5,000,000).
(3) The corporation may not include a repayment provision as part
of an agreement entered into under section 17 of this chapter for
the credits awarded for the project.
SECTION 18. IC 6-3.1-34-22 IS REPEALED [EFFECTIVE JULY
1, 2022]. Sec. 22. (a) Except as provided in subsection (b), the total
amount of credits that the corporation may award under this chapter for
a state fiscal year for all taxpayers for all qualified investments is fifty
million dollars ($50,000,000). The portion of the credits that is subject
to a repayment provision under section 18(b) or 18(c) of this chapter is
not included in the calculation of the annual limit.
(b) If the corporation determines that a credit should be awarded
under this chapter for a taxpayer's qualified investment but the award:
(1) will result in the corporation's cumulative credit awards under
this chapter for a state fiscal year for all taxpayers for all qualified
investments to exceed the limit established by subsection (a); or
(2) should not be considered when calculating the corporation's
cumulative credit awards under this chapter for a state fiscal year
for all taxpayers for all qualified investments;
the corporation may, after review by the budget committee, enter into
SEA 361 — CC 1 17
an agreement with the taxpayer under section 17 of this chapter.
SECTION 19. IC 6-3.1-36 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]:
Chapter 36. Film and Media Production Tax Credit
Sec. 1. As used in this chapter, "corporation" refers to the
Indiana economic development corporation established by
IC 5-28-3-1.
Sec. 2. 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. 3. 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 music production;
(4) a digital media production that is intended for reasonable
commercial exploitation; or
(5) any other similar production as determined by the
corporation;
that is produced in Indiana.
Sec. 4. As used in this chapter, "qualified production expenses"
means expenses incurred by a qualified applicant for a qualified
media production.
Sec. 5. 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);
and
(2) IC 6-5.5 (the financial institutions 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. 6. As used in this chapter, "taxpayer" means a qualified
applicant that has any state tax liability.
Sec. 7. (a) A qualified applicant may apply to the 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
SEA 361 — CC 1 18
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 8(2) of this chapter.
Sec. 8. If the corporation certifies a taxpayer under section 7(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, not to exceed
thirty percent (30%).
 Sec. 9. If a pass through entity is entitled to a credit under
section 8 of this chapter but does not have state tax liability against
which the tax credit may be applied, a shareholder, partner,
member, or beneficiary 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
income to which the shareholder, partner, member, or
beneficiary is entitled.
Sec. 10. 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. 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
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
SEA 361 — CC 1 19
credit, the credit will be considered to be used for purposes of
subsection (c).
Sec. 12. A tax credit awarded under this chapter is subject to the
limitations set forth in IC 5-28-6-9.
Sec. 13. This chapter expires July 1, 2027.
SECTION 20. 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.
(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 21. 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:
SEA 361 — CC 1 20
(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)
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 22. 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.
SEA 361 — CC 1 21
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
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.
SEA 361 — CC 1 22
(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
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
SEA 361 — CC 1 23
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
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
SEA 361 — CC 1 24
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
(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 23. 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;
SEA 361 — CC 1 25
(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
(7) IC 36-7-32.5.
SECTION 24. 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;
SEA 361 — CC 1 26
(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 25. 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
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
SEA 361 — CC 1 27
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 26. 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;
(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:
SEA 361 — CC 1 28
(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 27. 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;
(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
SEA 361 — CC 1 29
(6) IC 36-7-30.5; or
(7) IC 36-7-32.5.
SECTION 28. IC 36-7-32.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]:
Chapter 32.5. Innovation Development Districts
Sec. 1. As used in this chapter, "base assessed value" means the
net assessed value of all the taxable real property that is assessed
as commercial or industrial property under the rules of the
department of local government finance, and taxable personal
property, that is located in an innovation development district as
finally determined for the assessment date immediately preceding
the effective date of the designation by the corporation under
section 9 of this chapter.
Sec. 2. As used in this chapter, "corporation" refers to the
Indiana economic development corporation established by
IC 5-28-3-1.
Sec. 3. As used in this chapter, "executive" means the following:
(1) In the case of a county that does not have a consolidated
city, the president of the board of county commissioners.
(2) In the case of a county having a consolidated city, the
mayor.
(3) In the case of a city, the mayor.
(4) In the case of a town that:
(A) does not have a mayor, the president of the town
council; or
(B) does have a mayor, the mayor.
Sec. 4. As used in this chapter, "gross retail base period
amount" means the aggregate amount of state gross retail and use
taxes remitted under IC 6-2.5 by the businesses:
(1) operating in the territory comprising an innovation
development district; and
(2) that is, in the case of the:
(A) state gross retail tax, collected by a business for sales
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;
during the full state fiscal year that precedes the date on which the
innovation development district was designated under section 9 of
this chapter.
Sec. 5. As used in this chapter, "gross retail incremental
SEA 361 — CC 1 30
amount" means the remainder of:
(1) the aggregate amount of state gross retail and use taxes
that are remitted under IC 6-2.5 by businesses:
(A) operating in the territory comprising an innovation
development district; 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;
during a state fiscal year; minus
(2) the gross retail base period amount;
as determined by the department of state revenue.
Sec. 6. As used in this chapter, "income tax base period
amount" means the aggregate amount of state adjusted gross
income taxes paid by employees employed in the territory
comprising an innovation development district with respect to
wages and salary earned for work in the innovation development
district for the state fiscal year that precedes the date on which the
innovation development district was designated under section 9 of
this chapter.
Sec. 7. As used in this chapter, "income tax incremental
amount" means the remainder of:
(1) the total amount of state adjusted gross income taxes paid
by employees employed in the territory comprising the
innovation development district with respect to wages and
salary earned for work in the territory comprising the
innovation development district for a particular state fiscal
year; minus
(2) the sum of the:
(A) income tax base period amount; plus
(B) tax credits awarded by the Indiana economic
development corporation under IC 6-3.1-13 to businesses
operating in an innovation development district as the
result of wages earned for work in the innovation
development district for the state fiscal year;
as determined by the department of state revenue.
Sec. 8. As used in this chapter, "net increment" means the sum
of:
(1) the gross retail incremental amount; plus
(2) the income tax incremental amount;
SEA 361 — CC 1 31
as determined by the department of state revenue.
Sec. 9. (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 uniform
policies and guidelines that the corporation must follow when
notifying and collaborating with an executive, or, if applicable,
executives, to designate territory within the jurisdiction of a city,
town, or county as an innovation development district under this
section. The corporation shall publish the uniform policies and
procedures established under this subsection on the corporation's
Internet web site.
(b) Subject to section 12(a) of this chapter, after notifying and
collaborating with the executive, or, if an innovation development
district will include territory within the jurisdiction of more than
one (1) city, town, or county, with the executives of each city, town,
or county, 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. 10. (a) The corporation may not designate an area as an
innovation development district under section 9 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:
(1) IC 5-1-17.5;
(2) IC 6-1.1-39;
(3) IC 8-22-3.5;
(4) IC 36-7-13;
SEA 361 — CC 1 32
(5) IC 36-7-14;
(6) IC 36-7-15.1;
(7) IC 36-7-30;
(8) IC 36-7-30.5;
(9) IC 36-7-31;
(10) IC 36-7-31.3;
(11) IC 36-7-31.5;
(12) IC 36-7-32;
(13) IC 36-7.5-4.5; or
(14) 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. 11. (a) Except as provided in subsection (b), the term of an
area's designation as an innovation development district may not
exceed thirty (30) years.
(b) The term of an area's designation as an innovation
development district may be extended beyond the thirty (30) year
term under subsection (a) after budget committee review.
Sec. 12. (a) If the total costs and benefits of the proposed
investment of an innovation development district are expected to
be an amount less than two billion dollars ($2,000,000,000), the
following apply:
(1) The executive, or, if applicable, the executives, and the
corporation shall enter into an agreement establishing the
terms and conditions governing the innovation development
district in accordance with this section.
(2) If the executive, or, if applicable, the executives, and the
corporation cannot enter into an agreement under subdivision
(1), the designation of territory under section 9 of this chapter
is no longer effective and the innovation development district
may not be designated or otherwise established under this
chapter.
(b) The agreement must include the following provisions:
(1) A description of the area, including a list of all parcels to
be included within the innovation development district.
(2) Covenants and restrictions, if any, upon all or a part of the
properties contained within the innovation development
district and terms of enforcement of any covenants or
restrictions.
(3) The due diligence and financial commitments of any party
SEA 361 — CC 1 33
to the agreement and of any owner or developer of property
within the innovation development district.
(4) The financial projections of the innovation development
district.
(5) The proposed use of the:
(A) net increment; and
(B) incremental property tax amount described in section
14(c) of this chapter;
that is captured within the innovation development district.
(6) The aggregate percentage of annual incremental property
tax revenue that will be transferred to the city, town, county,
or school corporation, or, if applicable, the cities, towns,
counties, or school corporations, under section 19(e) of this
chapter. The aggregate percentage transferred may not be
less than twelve percent (12%) of the annual amount of
incremental property tax revenue deposited in the local
innovation development district fund established by section 19
of this chapter.
(7) Subject to the limitations of this chapter, the duration of
the designation of an area as an innovation development
district.
(8) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal
and equitable remedies and rights, and penalties and
damages, actual or liquidated, upon the occurrence of an
event of default.
(9) The public facilities to be developed for the innovation
development district and the estimated costs of those public
facilities.
(c) An executive may discuss the terms of the agreement
described in this section and hold a meeting as an executive session
under IC 5-14-1.5-6.1 with:
(1) in the case of a city other than a consolidated city, the
common council;
(2) in the case of a consolidated city, or a county having a
consolidated city, the city-county council;
(3) in the case of a town, the town council; and
(4) in the case of a county that does not have a consolidated
city, the board of county commissioners.
(d) Within fifteen (15) days of entering into an agreement under
subsection (a), the corporation shall submit a written report on the
agreement to the budget committee.
SEA 361 — CC 1 34
(e) Neither an executive nor the corporation may exercise the
power of eminent domain within an innovation development
district.
Sec. 13. If an innovation development district is designated
under section 9 of this chapter or described under section 12 of this
chapter, each executive shall designate the innovation development
district as an allocation area for purposes of the allocation and
distribution of property taxes. Each executive shall provide notice
of the designation to the county auditor and to each taxing unit that
has authority to levy property taxes in the geographic area where
the innovation development district is located. The notice must
state the general boundaries of the innovation development district
and include a list of all parcels to be included within the innovation
development district.
Sec. 14. (a) An allocation area designated under section 13 of
this chapter must:
(1) apply to the entire innovation development district; and
(2) require that any property tax assessed on taxable real and
personal property used for commercial or industrial purposes
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the innovation
development district be allocated and distributed as provided
in subsections (b) and (c).
(b) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the taxable real and personal
property for the assessment date with respect to which the
allocation and distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of
the respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed
for the assessment date with respect to which the allocation
and distribution is made that are attributable to taxes
imposed after being approved by the voters in a referendum
or local public question conducted after April 30, 2010, not
otherwise included in subdivision (1) shall be allocated to and,
when collected, paid into the funds of the taxing unit for
which the referendum or local public question was conducted.
(c) Except as provided in subsection (d), all the property tax
proceeds that:
(1) exceed those described in subsection (b); and
SEA 361 — CC 1 35
(2) are attributable to the assessed value of taxable real and
personal property used for commercial or industrial
purposes;
shall be paid into the appropriate local innovation development
district fund established by section 19 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
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.
(d) Notwithstanding any other law, each assessor shall, upon
petition of an executive or the corporation, reassess the taxable real
and personal property situated upon or in, or added to, the
innovation development district effective on the next assessment
date after the petition.
(e) Notwithstanding any other law, the assessed value of all
taxable real and personal property in the innovation development
district, for purposes of tax limitation, property tax replacement,
and formulation of the budget, tax rate, and tax levy for each
political subdivision in which the property is located is the lesser
of:
(1) the assessed value of the taxable real and personal
property as valued without regard to this section; or
(2) the base assessed value.
Sec. 15. (a) An executive or the corporation may enter into a
written agreement with a taxpayer who owns, or is otherwise
obligated to pay property taxes on, tangible property that is or will
be located in an allocation area established under this chapter in
which the taxpayer waives review of any assessment of the
taxpayer's tangible property that is located in the allocation area
for an assessment date that occurs during the term of any specified
bond or lease obligations that are payable, in whole or in part,
from property taxes in accordance with an allocation provision for
the allocation area and any applicable statute, ordinance, or
resolution.
(b) Except as provided in subsection (c), but notwithstanding
any other law, an executive or the corporation may exempt from
taxation any tangible real property improvements or personal
property, or a part of real property improvements or personal
property, that:
(1) in the case of real property improvements, is assessed as
SEA 361 — CC 1 36
commercial or industrial property under the rules of the
department of local government finance;
(2) is located within the innovation development district; and
(3) was:
(A) in the case of real property improvements,
constructed; and
(B) in the case of personal property, first entered into
service;
after the date that the innovation development district was
designated under section 9 of this chapter.
The executive, or the corporation, as applicable, shall notify the
county assessor and county auditor of the county in which the real
property improvement or personal property is located of an
exemption provided under this subsection. An executive who
provided an exemption, or the corporation, if the corporation
provided the exemption, may terminate the exemption by
providing notice to the county assessor and county auditor of the
county in which the real property improvement or personal
property is located. An exemption, or the termination of an
exemption, is effective beginning with the assessment date that
immediately follows the date that the notice required under this
subsection is provided by the executive or the corporation.
(c) An executive and the corporation may not exempt from
taxation any real property improvements or personal property
described in subsection (b) after any bonds have been issued by the
Indiana finance authority under IC 5-1.2-4-4(a)(2) that are payable
from revenues deposited in a local innovation development district
fund established under section 19 of this chapter as long as the
bonds remain outstanding.
Sec. 16. (a) The state board of accounts, the department of state
revenue, and the department of local government finance may
adopt rules under IC 4-22-2 and prescribe the forms and
procedures that the state board of accounts, the department of
state revenue, and the department of local government finance
consider appropriate for the implementation of an innovation
development district under this chapter. 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
SEA 361 — CC 1 37
department of local government finance; and
(2) recommends statutory changes necessary to implement the
provisions of this chapter.
(b) After each reassessment of real property in an area under a
county's reassessment plan prepared under IC 6-1.1-4-4.2, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the
reassessment of the real property in the area on the property tax
proceeds allocated to the local innovation development district
fund established by section 19 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value to neutralize any effect of the annual adjustment on
the property tax proceeds allocated to the local innovation
development district fund established by section 19 of this chapter.
Sec. 17. (a) If an innovation development district is designated
under section 9 of this chapter, the corporation shall send to the
department of state revenue:
(1) a certified copy of the designation of the innovation
development district under section 9 of this chapter;
(2) if an agreement is entered into under section 12 of this
chapter, a certified copy of the agreement; and
(3) a complete list of the employers in the innovation
development district and the street names and the range of
street numbers of each street in the innovation development
district.
The corporation shall update the list provided under subdivision
(3) before July 1 of each year.
(b) Not later than sixty (60) days after receiving a copy of the
designation of the innovation development district, the department
of state revenue shall determine the gross retail base period
amount and the income tax base period amount.
Sec. 18. (a) Before the first business day in October of each year,
the department of state revenue shall calculate the income tax
incremental amount and the gross retail incremental amount for
the preceding state fiscal year for each innovation development
district designated under this chapter.
(b) Taxpayers operating in an innovation development district
shall report annually, in the manner and form prescribed by the
department of state revenue, information that the department of
state revenue determines necessary to calculate the net increment.
(c) A taxpayer operating in an innovation development district
SEA 361 — CC 1 38
that files a consolidated tax return with the department of state
revenue shall also file annually an informational return with the
department of state revenue for each business location of the
taxpayer within the innovation development district.
(d) If a taxpayer fails to report the information required by this
section or file an informational return required by this section, the
department of state revenue shall use the best information
available in calculating the income tax incremental amount and
gross retail incremental amount.
(e) The department of state revenue shall transfer the amount
calculated as provided in subsection (a) to the applicable local
innovation development district fund established for the innovation
development district under section 19 of this chapter by November
1 of each year.
Sec. 19. (a) The corporation shall establish a local innovation
development district fund for each innovation development district
designated under section 9 of this chapter.
(b) Each fund consists of:
(1) deposits of incremental property tax revenue from the
county auditor as provided in section 14(c) of this chapter;
and
(2) transfers from the department of state revenue under
section 18 of this chapter.
(c) The corporation 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) The corporation may use money in each fund as follows:
(1) If an agreement described in section 12 of this chapter has
been entered into between the corporation and the executive,
or, if applicable, the executives, for any purpose authorized in
the agreement.
(2) If an agreement described in section 12 of this chapter has
not been entered into between the corporation and the
executive, or, if applicable, the executives, for the following
purposes:
(A) 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.
SEA 361 — CC 1 39
(B) The operation of public facilities.
(C) The acquisition of land within the innovation
development district.
(D) The recruitment of new businesses and new employees
to the innovation development district.
(E) The training of individuals employed in the innovation
development district.
(e) Not later than August 1 of each year, the corporation shall
transfer:
(1) if an agreement described in section 12 of this chapter has
been entered into between the corporation and the executive,
or if applicable, the executives, the amount of incremental
property tax revenues determined in the agreement; and
(2) if an agreement described in section 12 of this chapter has
not been entered into between the corporation and the
executive, or if applicable, the executives, an amount of
incremental property tax revenues that may not be less than
twelve percent (12%) of the annual amount of incremental
property tax revenue deposited under subsection (b)(1);
to the general fund of each city, town, county, or school
corporation with territory located within the innovation
development district. If the corporation 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
property tax levy applied to property located within the innovation
development district. A transfer under this subsection does not
reduce the actual or maximum permissible levy of a city, town,
county, or school corporation and may not be considered in
determining a city's, town's, county's, or school corporation's
maximum permissible ad valorem property tax levy limit under
IC 6-1.1-18.5.
(f) Each state fiscal year, the corporation 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 20 of this chapter
an amount not to exceed one hundred percent (100%) of the net
incremental revenue derived from state income taxes and gross
SEA 361 — CC 1 40
retail taxes deposited into each fund during the immediately
preceding state fiscal year.
(g) Money in each local innovation development district fund at
the end of a state fiscal year does not revert to the state general
fund.
(h) Money in each local innovation development district fund is
continuously appropriated for the purposes specified in this
section.
Sec. 20. (a) The statewide innovation development district fund
is established within the state treasury to provide grants or loans
to support the development or expansion of industry in Indiana.
(b) The fund consists of the following:
(1) Transfers from a local innovation development district
fund under section 19(f) of this chapter.
(2) Appropriations from the general assembly.
(3) Loan repayments, including earnings from loans under
subsection (d).
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) The expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The corporation may make grants, loans, or investments
from the fund for the following purposes:
(1) For the purposes identified in section 19(d) of this chapter.
(2) For the acquisition and improvement of land or other
property.
(3) For costs associated with creating new innovation
development districts.
(4) For the development of partnerships, including grants and
loans, between the state, advanced industry, and higher
educational institutions focused on development, expansion,
or retention in the state.
(5) For the stimulation of investments in entrepreneurial or
high growth potential companies in the state.
(6) For workforce training assistance in the state.
(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.
Sec. 21. (a) Except as provided in subsection (b), money in the
SEA 361 — CC 1 41
statewide innovation development district fund established by
section 20 of this chapter at the end of the state fiscal year does not
revert to the state general fund.
(b) Notwithstanding subsection (a), if the unobligated balance
of the statewide innovation development district fund established
by section 20 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.
(c) Money in the fund is continuously appropriated for the
purposes of this chapter.
Sec. 22. The corporation shall provide information on the
innovation development district program in its economic incentive
and compliance report submitted pursuant to IC 5-28-28-5, and to
the budget committee, that includes the following:
(1) Metrics established by the corporation to evaluate the
effectiveness of the innovation development district in
promoting economic growth in the state.
(2) The number and amount of grants or loans from the
statewide innovation development district fund established by
section 20 of this chapter that are contractually awarded by
the corporation for each innovation development district and
in total for all innovation development districts statewide.
(3) The name of each entity receiving a grant or loan from the
statewide innovation development district fund established by
section 20 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
SEA 361 — CC 1 42
personal property, without regard to any exemption
granted by an executive or the corporation under section
15(b) of this chapter, that is:
(i) located within the innovation development district;
and
(ii) in the case of real property, assessed as commercial
or industrial property under the rules of the department
of local government finance;
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 19 of this chapter in each state
fiscal year after the state fiscal year in which the
innovation development district was designated;
(H) the amount of incremental state gross retail and use
tax revenue deposited into the local innovation
development district fund established by section 19 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 19 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
19 of this chapter that was transferred into the statewide
innovation development district fund established under
section 20 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.
SEA 361 — CC 1 43
SECTION 29. [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 36-7-32.5-20.
(b) Notwithstanding any other law, the money augmented from
the state general fund under subsection (a) to the Indiana economic
development corporation for business promotion and innovation
does not revert to the state general fund at the end of the state
fiscal year and remains available in subsequent state fiscal years
for the uses specified under state law.
(c) This SECTION expires July 1, 2025.
SECTION 30. [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 31. An emergency is declared for this act.
SEA 361 — CC 1 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: 	Time: 
SEA 361 — CC 1