Indiana 2025 Regular Session

Indiana House Bill HB1576 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1576
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-28-6-9; IC 6-3.1-34; IC 36-7-14.
7	7	Synopsis: Small town opportunity initiative. Adds provisions
8	8	concerning the awarding of redevelopment tax credits by the Indiana
9	9	economic development corporation (IEDC) for projects located in
10	10	counties, cities, and towns that meet specified population and project
11	11	criteria. Provides for the minimum and maximum credit percentages
12	12	for such a project. Specifies that a credit awarded to a taxpayer for such
13	13	a project is not subject to repayment and prohibits the IEDC from
14	14	including a repayment provision as part of an agreement entered into
15	15	for the award of the credit. Provides that the aggregate limit of
16	16	applicable tax credits that the IEDC may certify for a state fiscal year
17	17	excludes the first $100,000,000 in redevelopment tax credits for
18	18	projects in counties, cities, and towns meeting the criteria added by the
19	19	bill. Allows a redevelopment commission (commission) in a county,
20	20	city, or town for which a project meeting the criteria added by the bill
21	21	has received a redevelopment tax credit to establish a program to
22	22	enhance investments made for those projects in the form of a 60 year
23	23	allocation area to accomplish the purposes of the program. Sets forth
24	24	the procedures that a commission is required to take to establish such
25	25	a program. Requires the commission to annually transfer at least 12%
26	26	of the aggregate allocated tax proceeds from the allocation area to
27	27	school corporations located within the allocation area.
28	28	Effective: July 1, 2025.
29	29	Goss-Reaves, Snow
30	30	January 21, 2025, read first time and referred to Committee on Ways and Means.
31	31	2025 IN 1576—LS 7654/DI 129 Introduced
32	32	First Regular Session of the 124th General Assembly (2025)
33	33	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
34	34	Constitution) is being amended, the text of the existing provision will appear in this style type,
35	35	additions will appear in this style type, and deletions will appear in this style type.
36	36	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
37	37	provision adopted), the text of the new provision will appear in this style type. Also, the
38	38	word NEW will appear in that style type in the introductory clause of each SECTION that adds
39	39	a new provision to the Indiana Code or the Indiana Constitution.
40	40	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
41	41	between statutes enacted by the 2024 Regular Session of the General Assembly.
42	42	HOUSE BILL No. 1576
43	43	A BILL FOR AN ACT to amend the Indiana Code concerning
44	44	taxation.
45	45	Be it enacted by the General Assembly of the State of Indiana:
46	46	1 SECTION 1. IC 5-28-6-9, AS AMENDED BY P.L.201-2023,
47	47	2 SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
48	48	3 JULY 1, 2025]: Sec. 9. (a) Subject to subsection (c), the aggregate
49	49	4 amount of applicable tax credits that the corporation may certify for a
50	50	5 state fiscal year for all taxpayers is two hundred fifty million dollars
51	51	6 ($250,000,000). However, the first one hundred million dollars
52	52	7 ($100,000,000) in redevelopment tax credits awarded in a state
53	53	8 fiscal year under IC 6-3.1-34 that are awarded for qualified
54	54	9 community projects (as defined in IC 6-3.1-34-5.5) are excluded
55	55	10 from the calculation of the aggregate amount of applicable tax
56	56	11 credits allowed under this section.
57	57	12 (b) For purposes of determining the amount of applicable tax credits
58	58	13 that have been certified for a state fiscal year, the following apply:
59	59	14 (1) An applicable tax credit is considered awarded in the state
60	60	15 fiscal year in which the taxpayer can first claim the credit,
61	61	16 determined without regard to any carryforward period or
62	62	17 carryback period.
63	63	2025 IN 1576—LS 7654/DI 129 2
64	64	1 (2) An applicable tax credit awarded by the corporation before
65	65	2 July 1, 2022, shall be counted toward the aggregate credit
66	66	3 limitation under this section.
67	67	4 (3) If an accelerated credit is awarded under IC 6-3.1-26-15, the
68	68	5 amount counted toward the aggregate credit limitation under this
69	69	6 section for a state fiscal year shall be the amount of the credit for
70	70	7 the taxable year described in subdivision (1) prior to any discount.
71	71	8 (c) Notwithstanding subsection (a), if the corporation determines
72	72	9 that:
73	73	10 (1) an applicable tax credit should be certified in a state fiscal
74	74	11 year; and
75	75	12 (2) certification of the applicable tax credit will result in an
76	76	13 aggregate amount of applicable tax credits certified for that state
77	77	14 fiscal year that exceeds the maximum amount provided in
78	78	15 subsection (a);
79	79	16 the corporation may, after review by the budget committee, certify the
80	80	17 applicable tax credit to the taxpayer.
81	81	18 SECTION 2. IC 6-3.1-34-2.5 IS ADDED TO THE INDIANA
82	82	19 CODE AS A NEW SECTION TO READ AS FOLLOWS
83	83	20 [EFFECTIVE JULY 1, 2025]: Sec. 2.5. As used in this chapter,
84	84	21 "downtown" refers to:
85	85	22 (1) the central business district of a city or town; or
86	86	23 (2) any commercial or mixed use area within a neighborhood
87	87	24 of a city or town that has traditionally served, since the
88	88	25 founding of the community, as the retail service and
89	89	26 communal focal point within the community.
90	90	27 SECTION 3. IC 6-3.1-34-5.5 IS ADDED TO THE INDIANA
91	91	28 CODE AS A NEW SECTION TO READ AS FOLLOWS
92	92	29 [EFFECTIVE JULY 1, 2025]: Sec. 5.5. As used in this chapter,
93	93	30 "qualified community project" means a project undertaken by a
94	94	31 taxpayer at a qualified redevelopment site that:
95	95	32 (1) is located in the:
96	96	33 (A) downtown area of a city or a town with a population of
97	97	34 less than thirty thousand (30,000); or
98	98	35 (B) unincorporated territory of a county with a population
99	99	36 of less than seventy-five thousand (75,000) if the site of the
100	100	37 project is an area of the unincorporated territory that
101	101	38 serves as the retail service and communal focal point
102	102	39 within the unincorporated territory;
103	103	40 (2) involves:
104	104	41 (A) historic preservation;
105	105	42 (B) redevelopment; or
106	106	2025 IN 1576—LS 7654/DI 129 3
107	107	1 (C) rehabilitation;
108	108	2 of real property; and
109	109	3 (3) has a total project budget of at least fifteen million dollars
110	110	4 ($15,000,000).
111	111	5 SECTION 4. IC 6-3.1-34-16, AS AMENDED BY P.L.135-2022,
112	112	6 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
113	113	7 JULY 1, 2025]: Sec. 16. The corporation shall consider the following
114	114	8 factors in deciding whether to award a credit under this chapter for a
115	115	9 proposed qualified investment:
116	116	10 (1) Evidence that the project aligns with the community's
117	117	11 development plans.
118	118	12 (2) The economic development potential for the project for which
119	119	13 the taxpayer proposes to make the qualified investment.
120	120	14 (3) Evidence of barriers preventing the development or
121	121	15 redevelopment of the qualified redevelopment site in which the
122	122	16 qualified investment is made, such as significant environmental
123	123	17 contamination requiring remediation.
124	124	18 (4) The level of commitment by the public sector and local
125	125	19 government to assist in the financing of improvements or
126	126	20 redevelopment activities benefiting the qualified redevelopment
127	127	21 site in which the qualified investment is made.
128	128	22 (5) Evidence of support by residents, businesses, and private
129	129	23 organizations in the surrounding community for the project for
130	130	24 which the taxpayer proposes to make the qualified investment.
131	131	25 (6) The level of economic distress in the surrounding community
132	132	26 and the extent to which the project for which the taxpayer
133	133	27 proposes to make the qualified investment mitigates the economic
134	134	28 distress.
135	135	29 (7) The extent to which the project is estimated to enhance the
136	136	30 economic opportunity, health, safety, aesthetics, or amenities of
137	137	31 the community in a manner that:
138	138	32 (A) improves quality of life factors for residents of the region;
139	139	33 and
140	140	34 (B) increases the ability of the region to attract and retain a
141	141	35 talented workforce.
142	142	36 (8) In the case of a qualified community project, the extent to
143	143	37 which:
144	144	38 (A) the downtown area of a city or town; or
145	145	39 (B) the retail service and communal focal point within the
146	146	40 unincorporated territory of a county;
147	147	41 will be benefited by the planned historic preservation,
148	148	42 redevelopment, or rehabilitation of real property at the
149	149	2025 IN 1576—LS 7654/DI 129 4
150	150	1 qualified redevelopment site in which the qualified investment
151	151	2 is made.
152	152	3 (8) (9) Any other factors as determined by the corporation.
153	153	4 SECTION 5. IC 6-3.1-34-17, AS AMENDED BY P.L.135-2022,
154	154	5 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
155	155	6 JULY 1, 2025]: Sec. 17. (a) The following apply if the corporation
156	156	7 determines that a credit should be awarded under this chapter:
157	157	8 (1) The corporation shall require the taxpayer to enter into an
158	158	9 agreement with the corporation as a condition of receiving a
159	159	10 credit under this chapter.
160	160	11 (2) The agreement with the corporation must:
161	161	12 (A) prescribe the method of certifying the taxpayer's qualified
162	162	13 investment; and
163	163	14 (B) include provisions that authorize the corporation to work
164	164	15 with the department and the taxpayer, if the corporation
165	165	16 determines that the taxpayer is noncompliant with the terms of
166	166	17 the agreement or the provisions of this chapter, to bring the
167	167	18 taxpayer into compliance or to protect the interests of the state.
168	168	19 (3) The corporation shall specify the taxpayer's expenditures that
169	169	20 will be considered a qualified investment.
170	170	21 (4) The corporation shall determine the applicable credit
171	171	22 percentage under subsections (b) and (c).
172	172	23 (b) If the corporation determines that a credit should be awarded
173	173	24 under this chapter, the corporation shall determine the applicable credit
174	174	25 percentage for a qualified investment certified by the corporation.
175	175	26 However, and Except as provided in subsection (c), the applicable
176	176	27 credit percentage may not exceed thirty percent (30%). However, in
177	177	28 the case of a taxpayer that makes a qualified investment in a
178	178	29 qualified community project, the applicable credit percentage may
179	179	30 not be less than twenty percent (20%) and may not exceed thirty
180	180	31 percent (30%) as described in this subsection.
181	181	32 (c) The corporation may increase the credit amount by not more
182	182	33 than an additional five percent (5%) if:
183	183	34 (1) the qualified redevelopment site is located in a federally
184	184	35 designated qualified opportunity zone (Section 1400Z-1 and
185	185	36 1400Z-2 of the Internal Revenue Code); or
186	186	37 (2) the project qualifies for federal new markets tax credits under
187	187	38 Section 45D of the Internal Revenue Code.
188	188	39 (d) To be eligible for the credit for a qualified investment, a
189	189	40 taxpayer's expenditures that are considered a qualified investment must
190	190	41 be certified by the corporation not later than two (2) taxable years after
191	191	42 the end of the calendar year in which the taxpayer's expenditures are
192	192	2025 IN 1576—LS 7654/DI 129 5
193	193	1 made.
194	194	2 SECTION 6. IC 6-3.1-34-18, AS AMENDED BY P.L.201-2023,
195	195	3 SECTION 102, IS AMENDED TO READ AS FOLLOWS
196	196	4 [EFFECTIVE JULY 1, 2025]: Sec. 18. (a) Except as provided in
197	197	5 subsection (b), if the corporation awards a tax credit to a taxpayer
198	198	6 under this chapter that exceeds twenty million dollars ($20,000,000),
199	199	7 the corporation shall include in an agreement entered into under section
200	200	8 17 of this chapter a provision that requires the taxpayer to repay to the
201	201	9 corporation the portion of the credit that exceeds twenty million dollars
202	202	10 ($20,000,000) with interest. Notwithstanding the date on which a tax
203	203	11 credit is awarded under this chapter, any repayment of any part of a
204	204	12 credit awarded under this chapter shall be deposited in the state general
205	205	13 fund.
206	206	14 (b) Notwithstanding subsection (a), the corporation may exclude
207	207	15 from its agreement entered into under section 17 of this chapter a
208	208	16 repayment provision for any portion of the credit if the award is for a
209	209	17 qualified redevelopment site subject to a proposal that will result in a
210	210	18 qualified investment of at least one hundred million dollars
211	211	19 ($100,000,000).
212	212	20 (c) If the corporation enters into an agreement with a taxpayer under
213	213	21 section 17 of this chapter that includes a repayment provision under
214	214	22 subsection (a), the corporation shall include in the repayment provision
215	215	23 a provision establishing the interest rate that will be applied. The
216	216	24 interest rate shall be determined by the board and approved by the
217	217	25 budget agency.
218	218	26 (d) This subsection applies to an active multi-phased project
219	219	27 occurring on a defined footprint for which the taxpayer has received
220	220	28 approval for at least the first phase of the active multi-phased project
221	221	29 from the corporation's board before July 1, 2018, for a tax credit under
222	222	30 IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The
223	223	31 following apply to a project described in this subsection:
224	224	32 (1) Only qualified investments that are made after June 30, 2021,
225	225	33 are eligible for a credit award under this chapter.
226	226	34 (2) The annual amount of credits awarded under this chapter for
227	227	35 the project may not exceed five million dollars ($5,000,000).
228	228	36 (3) The corporation may not include a repayment provision as part
229	229	37 of an agreement entered into under section 17 of this chapter for
230	230	38 the credits awarded for the project.
231	231	39 (e) A tax credit awarded to a taxpayer for a qualified investment
232	232	40 made in a qualified community project is not subject to repayment
233	233	41 under this section, and the corporation may not include a
234	234	42 repayment provision as part of an agreement entered into under
235	235	2025 IN 1576—LS 7654/DI 129 6
236	236	1 section 17 of this chapter for the credits awarded for the qualified
237	237	2 community project.
238	238	3 (e) (f) The part of any credit that is subject to a repayment provision
239	239	4 under this section must be included in the calculation of the aggregate
240	240	5 amount of applicable tax credits that the corporation may certify for a
241	241	6 state fiscal year under IC 5-28-6-9.
242	242	7 SECTION 7. IC 36-7-14-25.1, AS AMENDED BY P.L.236-2023,
243	243	8 SECTION 176, IS AMENDED TO READ AS FOLLOWS
244	244	9 [EFFECTIVE JULY 1, 2025]: Sec. 25.1. (a) In addition to other
245	245	10 methods of raising money for property acquisition or redevelopment in
246	246	11 a redevelopment project area, and in anticipation of the special tax to
247	247	12 be levied under section 27 of this chapter, the taxes allocated under
248	248	13 section 39 of this chapter, or other revenues of the district, or any
249	249	14 combination of these sources, the redevelopment commission may, by
250	250	15 bond resolution and subject to subsections (c) and (p), issue the bonds
251	251	16 of the special taxing district in the name of the unit. The amount of the
252	252	17 bonds may not exceed the total, as estimated by the commission, of all
253	253	18 expenses reasonably incurred in connection with the acquisition and
254	254	19 redevelopment of the property, including:
255	255	20 (1) the total cost of all land, rights-of-way, and other property to
256	256	21 be acquired and redeveloped;
257	257	22 (2) all reasonable and necessary architectural, engineering, legal,
258	258	23 financing, accounting, advertising, bond discount, and
259	259	24 supervisory expenses related to the acquisition and redevelopment
260	260	25 of the property or the issuance of bonds;
261	261	26 (3) capitalized interest permitted by this chapter and a debt
262	262	27 service reserve for the bonds to the extent the redevelopment
263	263	28 commission determines that a reserve is reasonably required; and
264	264	29 (4) expenses that the redevelopment commission is required or
265	265	30 permitted to pay under IC 8-23-17.
266	266	31 (b) If the redevelopment commission plans to acquire different
267	267	32 parcels of land or let different contracts for redevelopment work at
268	268	33 approximately the same time, whether under one (1) or more
269	269	34 resolutions, the commission may provide for the total cost in one (1)
270	270	35 issue of bonds.
271	271	36 (c) The legislative body of the unit must adopt a resolution that
272	272	37 specifies the public purpose of the bond, the use of the bond proceeds,
273	273	38 the maximum principal amount of the bond, the term of the bond, and
274	274	39 the maximum interest rate or rates of the bond, any provision for
275	275	40 redemption before maturity, and any provision for the payment of
276	276	41 capitalized interest. The bonds must be dated as set forth in the bond
277	277	42 resolution and negotiable, subject to the requirements of the bond
278	278	2025 IN 1576—LS 7654/DI 129 7
279	279	1 resolution for registering the bonds. The resolution authorizing the
280	280	2 bonds must state:
281	281	3 (1) the denominations of the bonds;
282	282	4 (2) the place or places at which the bonds are payable; and
283	283	5 (3) the term of the bonds, which may not exceed:
284	284	6 (A) fifty (50) years, for bonds issued before July 1, 2008;
285	285	7 (B) thirty (30) years, for bonds issued after June 30, 2008, to
286	286	8 finance:
287	287	9 (i) an integrated coal gasification powerplant (as defined in
288	288	10 IC 6-3.1-29-6);
289	289	11 (ii) a part of an integrated coal gasification powerplant (as
290	290	12 defined in IC 6-3.1-29-6); or
291	291	13 (iii) property used in the operation or maintenance of an
292	292	14 integrated coal gasification powerplant (as defined in
293	293	15 IC 6-3.1-29-6);
294	294	16 that received a certificate of public convenience and necessity
295	295	17 from the Indiana utility regulatory commission under
296	296	18 IC 8-1-8.5 et seq. before July 1, 2008;
297	297	19 (C) thirty-five (35) years, for bonds issued after June 30, 2019,
298	298	20 to finance a project that is located in a redevelopment project
299	299	21 area, an economic development area, or an urban renewal
300	300	22 project area and that includes, as part of the project, the use
301	301	23 and repurposing of two (2) or more buildings and structures
302	302	24 that are:
303	303	25 (i) at least seventy-five (75) years old; and
304	304	26 (ii) located at a site at which manufacturing previously
305	305	27 occurred over a period of at least seventy-five (75) years; or
306	306	28 (D) sixty (60) years, for bonds issued after June 30, 2025,
307	307	29 to finance a project for the accomplishment of the
308	308	30 purposes of a qualified community project program
309	309	31 established under section 59 of this chapter; or
310	310	32 (D) (E) twenty-five (25) years, for bonds issued after June 30,
311	311	33 2008, that are not described in clause (B), or (C), or (D).
312	312	34 The bond resolution may also state that the bonds are redeemable
313	313	35 before maturity with or without a premium, as determined by the
314	314	36 redevelopment commission.
315	315	37 (d) The redevelopment commission shall certify a copy of the
316	316	38 resolution authorizing the bonds to the municipal or county fiscal
317	317	39 officer, who shall then prepare the bonds, subject to subsections (c) and
318	318	40 (p). The seal of the unit must be impressed on the bonds, or a facsimile
319	319	41 of the seal must be printed on the bonds.
320	320	42 (e) The bonds must be executed by the appropriate officer of the
321	321	2025 IN 1576—LS 7654/DI 129 8
322	322	1 unit and attested by the municipal or county fiscal officer.
323	323	2 (f) The bonds are exempt from taxation for all purposes.
324	324	3 (g) The municipal or county fiscal officer shall give notice of the
325	325	4 sale of the bonds by publication in accordance with IC 5-3-1. The
326	326	5 municipal fiscal officer, or county fiscal officer or executive, shall sell
327	327	6 the bonds to the highest bidder, but may not sell them for less than
328	328	7 ninety-seven percent (97%) of their par value. However, bonds payable
329	329	8 solely or in part from tax proceeds allocated under section 39(b)(4) of
330	330	9 this chapter, or other revenues of the district may be sold at a private
331	331	10 negotiated sale.
332	332	11 (h) Except as provided in subsection (i), a redevelopment
333	333	12 commission may not issue the bonds when the total issue, including
334	334	13 bonds already issued and to be issued, exceeds two percent (2%) of the
335	335	14 adjusted value of the taxable property in the special taxing district, as
336	336	15 determined under IC 36-1-15.
337	337	16 (i) The bonds are not a corporate obligation of the unit but are an
338	338	17 indebtedness of the taxing district. The bonds and interest are payable,
339	339	18 as set forth in the bond resolution of the redevelopment commission:
340	340	19 (1) from a special tax levied upon all of the property in the taxing
341	341	20 district, as provided by section 27 of this chapter;
342	342	21 (2) from the tax proceeds allocated under section 39(b)(4) of this
343	343	22 chapter;
344	344	23 (3) from other revenues available to the redevelopment
345	345	24 commission; or
346	346	25 (4) from a combination of the methods stated in subdivisions (1)
347	347	26 through (3).
348	348	27 If the bonds are payable solely from the tax proceeds allocated under
349	349	28 section 39(b)(4) of this chapter, other revenues of the redevelopment
350	350	29 commission, or any combination of these sources, they may be issued
351	351	30 in any amount not to exceed the maximum amount approved by the
352	352	31 legislative body in the resolution described in subsection (c).
353	353	32 (j) Proceeds from the sale of bonds may be used to pay the cost of
354	354	33 interest on the bonds for a period not to exceed five (5) years from the
355	355	34 date of issuance.
356	356	35 (k) All laws relating to the giving of notice of the issuance of bonds,
357	357	36 the giving of notice of a hearing on the appropriation of the proceeds
358	358	37 of the bonds, the right of taxpayers to appear and be heard on the
359	359	38 proposed appropriation, and the approval of the appropriation by the
360	360	39 department of local government finance apply to all bonds issued under
361	361	40 this chapter that are payable from the special benefits tax levied
362	362	41 pursuant to section 27 of this chapter or from taxes allocated under
363	363	42 section 39 of this chapter.
364	364	2025 IN 1576—LS 7654/DI 129 9
365	365	1 (l) All laws relating to:
366	366	2 (1) the filing of petitions requesting the issuance of bonds; and
367	367	3 (2) the right of:
368	368	4 (A) taxpayers and voters to remonstrate against the issuance of
369	369	5 bonds in the case of a proposed bond issue described by
370	370	6 IC 6-1.1-20-3.1(a); or
371	371	7 (B) voters to vote on the issuance of bonds in the case of a
372	372	8 proposed bond issue described by IC 6-1.1-20-3.5(a);
373	373	9 apply to bonds issued under this chapter except for bonds payable
374	374	10 solely from tax proceeds allocated under section 39(b)(4) of this
375	375	11 chapter, other revenues of the redevelopment commission, or any
376	376	12 combination of these sources.
377	377	13 (m) If a debt service reserve is created from the proceeds of bonds,
378	378	14 the debt service reserve may be used to pay principal and interest on
379	379	15 the bonds as provided in the bond resolution.
380	380	16 (n) Any amount remaining in the debt service reserve after all of the
381	381	17 bonds of the issue for which the debt service reserve was established
382	382	18 have matured shall be:
383	383	19 (1) deposited in the allocation fund established under section
384	384	20 39(b)(4) of this chapter; and
385	385	21 (2) to the extent permitted by law, transferred to the county or
386	386	22 municipality that established the department of redevelopment for
387	387	23 use in reducing the county's or municipality's property tax levies
388	388	24 for debt service.
389	389	25 (o) If bonds are issued under this chapter that are payable solely or
390	390	26 in part from revenues to the redevelopment commission from a project
391	391	27 or projects, the redevelopment commission may adopt a resolution or
392	392	28 trust indenture or enter into covenants as is customary in the issuance
393	393	29 of revenue bonds. The resolution or trust indenture may pledge or
394	394	30 assign the revenues from the project or projects, but may not convey or
395	395	31 mortgage any project or parts of a project. The resolution or trust
396	396	32 indenture may also contain any provisions for protecting and enforcing
397	397	33 the rights and remedies of the bond owners as may be reasonable and
398	398	34 proper and not in violation of law, including covenants setting forth the
399	399	35 duties of the redevelopment commission. The redevelopment
400	400	36 commission may establish fees and charges for the use of any project
401	401	37 and covenant with the owners of any bonds to set those fees and
402	402	38 charges at a rate sufficient to protect the interest of the owners of the
403	403	39 bonds. Any revenue bonds issued by the redevelopment commission
404	404	40 that are payable solely from revenues of the commission shall contain
405	405	41 a statement to that effect in the form of bond.
406	406	42 (p) If the total principal amount of bonds authorized by a resolution
407	407	2025 IN 1576—LS 7654/DI 129 10
408	408	1 of the redevelopment commission adopted before July 1, 2008, is equal
409	409	2 to or greater than three million dollars ($3,000,000), the bonds may not
410	410	3 be issued without the approval, by resolution, of the legislative body of
411	411	4 the unit. Bonds authorized in any principal amount by a resolution of
412	412	5 the redevelopment commission adopted after June 30, 2008, may not
413	413	6 be issued without the approval of the legislative body of the unit.
414	414	7 SECTION 8. IC 36-7-14-25.2, AS AMENDED BY P.L.220-2021,
415	415	8 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
416	416	9 JULY 1, 2025]: Sec. 25.2. (a) Subject to the prior approval of the fiscal
417	417	10 body of the unit under subsection (c), a redevelopment commission
418	418	11 may enter into a lease of any property that could be financed with the
419	419	12 proceeds of bonds issued under this chapter with a lessor for a term not
420	420	13 to exceed:
421	421	14 (1) fifty (50) years, for a lease entered into before July 1, 2008;
422	422	15 (2) thirty-five (35) years, for leases entered into after June 30,
423	423	16 2019, to finance a project that is located in a redevelopment
424	424	17 project area, an economic development area, or an urban renewal
425	425	18 project area and that includes, as part of the project, the use and
426	426	19 repurposing of two (2) or more buildings and structures that are:
427	427	20 (A) at least seventy-five (75) years old; and
428	428	21 (B) located at a site at which manufacturing previously
429	429	22 occurred over a period of at least seventy-five (75) years; or
430	430	23 (3) sixty (60) years, for leases entered into after June 30, 2025,
431	431	24 to finance a project for the accomplishment of the purposes of
432	432	25 a qualified community project program established under
433	433	26 section 59 of this chapter; or
434	434	27 (3) (4) twenty-five (25) years, for a lease that is not described in
435	435	28 subdivision (1), or (2), or (3), or a lease entered into by the
436	436	29 commission of a qualified city for the purpose of financing a
437	437	30 mixed use development project.
438	438	31 The lease may provide for payments to be made by the redevelopment
439	439	32 commission from special benefits taxes levied under section 27 of this
440	440	33 chapter, taxes allocated under section 39 of this chapter, any other
441	441	34 revenues available to the redevelopment commission, or any
442	442	35 combination of these sources.
443	443	36 (b) A lease may provide that payments by the redevelopment
444	444	37 commission to the lessor are required only to the extent and only for the
445	445	38 period that the lessor is able to provide the leased facilities in
446	446	39 accordance with the lease. The terms of each lease must be based upon
447	447	40 the value of the facilities leased and may not create a debt of the unit
448	448	41 or the district for purposes of the Constitution of the State of Indiana.
449	449	42 (c) A lease may be entered into by the redevelopment commission
450	450	2025 IN 1576—LS 7654/DI 129 11
451	451	1 only after a public hearing by the redevelopment commission at which
452	452	2 all interested parties are provided the opportunity to be heard. After the
453	453	3 public hearing, the redevelopment commission may adopt a resolution
454	454	4 authorizing the execution of the lease on behalf of the unit if it finds
455	455	5 that the service to be provided throughout the term of the lease will
456	456	6 serve the public purpose of the unit and is in the best interests of its
457	457	7 residents. Any lease approved by a resolution of the redevelopment
458	458	8 commission must also be approved by an ordinance or resolution of the
459	459	9 fiscal body of the unit. The approving ordinance or resolution of the
460	460	10 fiscal body must include the following:
461	461	11 (1) The maximum annual lease rental for the lease.
462	462	12 (2) The maximum interest rate or rates, any provisions for
463	463	13 redemption before maturity, and any provisions for the payment
464	464	14 of capitalized interest associated with the lease.
465	465	15 (3) The maximum term of the lease.
466	466	16 (d) Upon execution of a lease providing for payments by the
467	467	17 redevelopment commission in whole or in part from the levy of special
468	468	18 benefits taxes under section 27 of this chapter and upon approval of the
469	469	19 lease by the unit's fiscal body, the redevelopment commission shall
470	470	20 publish notice of the execution of the lease and its approval in
471	471	21 accordance with IC 5-3-1. Fifty (50) or more taxpayers residing in the
472	472	22 redevelopment district who will be affected by the lease and who may
473	473	23 be of the opinion that no necessity exists for the execution of the lease
474	474	24 or that the payments provided for in the lease are not fair and
475	475	25 reasonable may file a petition in the office of the county auditor within
476	476	26 thirty (30) days after the publication of the notice of execution and
477	477	27 approval. The petition must set forth the petitioners' names, addresses,
478	478	28 and objections to the lease and the facts showing that the execution of
479	479	29 the lease is unnecessary or unwise or that the payments provided for in
480	480	30 the lease are not fair and reasonable, as the case may be.
481	481	31 (e) Upon the filing of the petition, the county auditor shall
482	482	32 immediately certify a copy of it, together with such other data as may
483	483	33 be necessary in order to present the questions involved, to the
484	484	34 department of local government finance. Upon receipt of the certified
485	485	35 petition and information, the department of local government finance
486	486	36 shall fix a time for a hearing, which must be not less than five (5) or
487	487	37 more than thirty (30) days after the time is fixed. The department of
488	488	38 local government finance may either hold the hearing in the affected
489	489	39 county or through electronic means. Notice of the hearing shall be
490	490	40 given by the department of local government finance to the members
491	491	41 of the fiscal body, to the redevelopment commission, and to the first
492	492	42 fifty (50) petitioners on the petition by a letter signed by the
493	493	2025 IN 1576—LS 7654/DI 129 12
494	494	1 commissioner or deputy commissioner of the department and enclosed
495	495	2 with fully prepaid postage sent to those persons at their usual place of
496	496	3 residence, at least five (5) days before the date of the hearing. The
497	497	4 decision of the department of local government finance on the appeal
498	498	5 upon the necessity for the execution of the lease, and as to whether the
499	499	6 payments under it are fair and reasonable, is final.
500	500	7 (f) A redevelopment commission entering into a lease payable from
501	501	8 allocated taxes under section 39 of this chapter or other available funds
502	502	9 of the redevelopment commission may:
503	503	10 (1) pledge the revenue to make payments under the lease pursuant
504	504	11 to IC 5-1-14-4; and
505	505	12 (2) establish a special fund to make the payments.
506	506	13 (g) Lease rentals may be limited to money in the special fund so that
507	507	14 the obligations of the redevelopment commission to make the lease
508	508	15 rental payments are not considered debt of the unit or the district for
509	509	16 purposes of the Constitution of the State of Indiana.
510	510	17 (h) Except as provided in this section, no approvals of any
511	511	18 governmental body or agency are required before the redevelopment
512	512	19 commission enters into a lease under this section.
513	513	20 (i) An action to contest the validity of the lease or to enjoin the
514	514	21 performance of any of its terms and conditions must be brought within
515	515	22 thirty (30) days after the publication of the notice of the execution and
516	516	23 approval of the lease. However, if the lease is payable in whole or in
517	517	24 part from tax levies and an appeal has been taken to the department of
518	518	25 local government finance, an action to contest the validity or enjoin the
519	519	26 performance must be brought within thirty (30) days after the decision
520	520	27 of the department.
521	521	28 (j) If a redevelopment commission exercises an option to buy a
522	522	29 leased facility from a lessor, the redevelopment commission may
523	523	30 subsequently sell the leased facility, without regard to any other statute,
524	524	31 to the lessor at the end of the lease term at a price set forth in the lease
525	525	32 or at fair market value established at the time of the sale by the
526	526	33 redevelopment commission through auction, appraisal, or arms length
527	527	34 negotiation. If the facility is sold at auction, after appraisal, or through
528	528	35 negotiation, the redevelopment commission shall conduct a hearing
529	529	36 after public notice in accordance with IC 5-3-1 before the sale. Any
530	530	37 action to contest the sale must be brought within fifteen (15) days of
531	531	38 the hearing.
532	532	39 SECTION 9. IC 36-7-14-58 IS ADDED TO THE INDIANA CODE
533	533	40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
534	534	41 1, 2025]: Sec. 58. (a) Sections 59 through 62 of this chapter apply
535	535	42 to a commission located in a county or municipality for which tax
536	536	2025 IN 1576—LS 7654/DI 129 13
537	537	1 credit has been awarded to a taxpayer under IC 6-3.1-34 for a
538	538	2 qualified community project.
539	539	3 (b) The following definitions apply for purposes of sections 59
540	540	4 through 62 of this chapter:
541	541	5 (1) "Qualified community project" has the meaning set forth
542	542	6 in IC 6-3.1-34-5.5.
543	543	7 (2) "Qualified community project program" means a
544	544	8 program for the enhancement of investments made in a
545	545	9 qualified community project that is established by a
546	546	10 commission under section 59 of this chapter.
547	547	11 SECTION 10. IC 36-7-14-59 IS ADDED TO THE INDIANA
548	548	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
549	549	13 [EFFECTIVE JULY 1, 2025]: Sec. 59. (a) A commission may
550	550	14 establish a program by resolution for the enhancement of qualified
551	551	15 community projects in an area within the jurisdiction of the
552	552	16 commission.
553	553	17 (b) The program, which may include any relevant elements the
554	554	18 commission considers appropriate, may be adopted as part of a
555	555	19 redevelopment plan or amendment to a redevelopment plan, and
556	556	20 must establish an allocation area for purposes of sections 39 and 62
557	557	21 of this chapter for the accomplishment of the program. The
558	558	22 program must be approved by the municipal legislative body or
559	559	23 county executive as specified in section 17 of this chapter.
560	560	24 (c) The notice and hearing provisions of sections 17 and 17.5 of
561	561	25 this chapter, including notice under section 17(c) of this chapter to
562	562	26 a taxing unit that is wholly or partly located within an allocation
563	563	27 area, apply to the resolution adopted under subsection (b). Judicial
564	564	28 review of the resolution may be made under section 18 of this
565	565	29 chapter.
566	566	30 (d) Before formal submission of any qualified community
567	567	31 project program to the commission, the department of
568	568	32 redevelopment shall:
569	569	33 (1) consult with persons interested in or affected by the
570	570	34 proposed program, including the superintendents and
571	571	35 governing body presidents of all school corporations located
572	572	36 within the proposed allocation area;
573	573	37 (2) provide the affected neighborhood associations, residents,
574	574	38 and township assessors with an adequate opportunity to
575	575	39 participate in an advisory role in planning, implementing, and
576	576	40 evaluating the proposed program; and
577	577	41 (3) hold at least one (1) public meeting to obtain the views of
578	578	42 neighborhood associations and residents of the affected
579	579	2025 IN 1576—LS 7654/DI 129 14
580	580	1 neighborhood. The department of redevelopment shall send
581	581	2 notice thirty (30) days prior to the public meeting to the fiscal
582	582	3 officer of all affected taxing units and to the superintendents
583	583	4 and governing body presidents of all school corporations
584	584	5 located within the proposed allocation area.
585	585	6 (e) A qualified community project program established under
586	586	7 this section must terminate not later than sixty (60) years after the
587	587	8 date on which the first obligation was incurred to pay principal
588	588	9 and interest on bonds or lease rentals on leases payable from tax
589	589	10 increment revenues from the program.
590	590	11 (f) A county or municipality may request from the department
591	591	12 of local government finance a report, if it exists, describing the
592	592	13 effect of current assessed value allocated to tax increment
593	593	14 financing allocation areas on the amount of the tax levy or
594	594	15 proceeds and the credit for excessive property taxes under
595	595	16 IC 6-1.1-20.6 for the taxing units within the boundaries of the
596	596	17 qualified community project program.
597	597	18 SECTION 11. IC 36-7-14-60 IS ADDED TO THE INDIANA
598	598	19 CODE AS A NEW SECTION TO READ AS FOLLOWS
599	599	20 [EFFECTIVE JULY 1, 2025]: Sec. 60. (a) Except as provided in
600	600	21 subsections (b) and (c), all the rights, powers, privileges, and
601	601	22 immunities that may be exercised by the commission in blighted,
602	602	23 deteriorated, or deteriorating areas may be exercised by the
603	603	24 commission in implementing its qualified community project
604	604	25 program, including the following:
605	605	26 (1) The special tax levied in accordance with section 27 of this
606	606	27 chapter may be used to accomplish the purposes of the
607	607	28 program.
608	608	29 (2) Bonds may be issued under this chapter to accomplish the
609	609	30 program for qualified community projects, but only one (1)
610	610	31 issue of bonds may be issued and payable from increments in
611	611	32 any allocation area except for refunding bonds or bonds
612	612	33 issued in an amount necessary to complete a qualified
613	613	34 community project program for which bonds were previously
614	614	35 issued.
615	615	36 (3) Leases may be entered into under this chapter to
616	616	37 accomplish the qualified community project program.
617	617	38 (4) The tax exemptions set forth in section 37 of this chapter
618	618	39 are applicable.
619	619	40 (5) Property taxes may be allocated under section 39 of this
620	620	41 chapter.
621	621	42 (b) A commission may not exercise the power of eminent
622	622	2025 IN 1576—LS 7654/DI 129 15
623	623	1 domain in implementing its qualified community project program.
624	624	2 (c) A commission may not enter into lease financing or bond
625	625	3 financing unless the commission first obtains approval of the
626	626	4 county or municipal legislative body.
627	627	5 (d) The property in a qualified community project program may
628	628	6 not be encumbered, used as collateral, subjected to a monetary
629	629	7 assessment, or otherwise restricted in any way in order to provide
630	630	8 security for repayment of a bond that is issued or a lease that is
631	631	9 entered into for or in connection with the qualified community
632	632	10 project program, including any:
633	633	11 (1) lien;
634	634	12 (2) mortgage;
635	635	13 (3) covenant; or
636	636	14 (4) special assessment.
637	637	15 SECTION 12. IC 36-7-14-61 IS ADDED TO THE INDIANA
638	638	16 CODE AS A NEW SECTION TO READ AS FOLLOWS
639	639	17 [EFFECTIVE JULY 1, 2025]: Sec. 61. The commission must make
640	640	18 the following findings in the resolution establishing a qualified
641	641	19 community project program under section 59 of this chapter:
642	642	20 (1) The public health and welfare will be benefited by
643	643	21 accomplishment of the program.
644	644	22 (2) The accomplishment of the program will be of public
645	645	23 utility and benefit as measured by:
646	646	24 (A) an increase in the property tax base; or
647	647	25 (B) other similar public benefits.
648	648	26 SECTION 13. IC 36-7-14-62 IS ADDED TO THE INDIANA
649	649	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
650	650	28 [EFFECTIVE JULY 1, 2025]: Sec. 62. (a) Notwithstanding section
651	651	29 39(a) of this chapter, with respect to the allocation and distribution
652	652	30 of property taxes for the accomplishment of the purposes of a
653	653	31 qualified community project program established under section 59
654	654	32 of this chapter, "base assessed value" means the net assessed value
655	655	33 of all of the property, other than personal property, as finally
656	656	34 determined for the assessment date immediately preceding the
657	657	35 effective date of the allocation provision, as adjusted under section
658	658	36 39(h) of this chapter.
659	659	37 (b) An allocation provision described in this section must
660	660	38 provide that the commission shall annually transfer at least twelve
661	661	39 percent (12%) of the aggregate allocated tax proceeds from the
662	662	40 allocation area to school corporations located within the allocation
663	663	41 area.
664	664	42 (c) The allocation fund established under section 39(b) of this
665	665	2025 IN 1576—LS 7654/DI 129 16
666	666	1 chapter for the allocation area for a qualified community project
667	667	2 program established under section 59 of this chapter may be used
668	668	3 only for purposes related to the accomplishment of the purposes of
669	669	4 the program, including, but not limited to, the following:
670	670	5 (1) The construction of any infrastructure (including streets,
671	671	6 roads, and sidewalks) or local public improvements in,
672	672	7 serving, or benefiting a qualified community project.
673	673	8 (2) The acquisition of real property and interests in real
674	674	9 property for rehabilitation purposes within the allocation
675	675	10 area.
676	676	11 (3) The preparation of real property in anticipation of
677	677	12 development of the real property within the allocation area.
678	678	13 (4) To do any of the following:
679	679	14 (A) Pay the principal of and interest on bonds or any other
680	680	15 obligations payable from allocated tax proceeds in the
681	681	16 allocation area that are incurred by the redevelopment
682	682	17 district for the purpose of financing or refinancing the
683	683	18 qualified community project program established under
684	684	19 section 59 of this chapter for the allocation area.
685	685	20 (B) Establish, augment, or restore the debt service reserve
686	686	21 for bonds payable solely or in part from allocated tax
687	687	22 proceeds in the allocation area.
688	688	23 (C) Pay the principal of and interest on bonds payable
689	689	24 from allocated tax proceeds in the allocation area and from
690	690	25 the special tax levied under section 27 of this chapter.
691	691	26 (D) Pay the principal of and interest on bonds issued by the
692	692	27 unit to pay for local public improvements that are
693	693	28 physically located in or physically connected to the
694	694	29 allocation area.
695	695	30 (E) Pay premiums on the redemption before maturity of
696	696	31 bonds payable solely or in part from allocated tax proceeds
697	697	32 in the allocation area.
698	698	33 (F) Make payments on leases payable from allocated tax
699	699	34 proceeds in the allocation area under section 25.2 of this
700	700	35 chapter.
701	701	36 (G) Reimburse the unit for expenditures made by the unit
702	702	37 for local public improvements (which include buildings,
703	703	38 parking facilities, and other items described in section
704	704	39 25.1(a) of this chapter) that are physically located in or
705	705	40 physically connected to the allocation area.
706	706	41 (d) Notwithstanding section 39(b) of this chapter, the
707	707	42 commission shall, relative to the allocation fund established under
708	708	2025 IN 1576—LS 7654/DI 129 17
709	709	1 section 39(b) of this chapter for an allocation area for a qualified
710	710	2 community project program established under section 59 of this
711	711	3 chapter, do the following before June 15 of each year:
712	712	4 (1) Determine the amount, if any, by which the assessed value
713	713	5 of the taxable property in the allocation area for the most
714	714	6 recent assessment date minus the base assessed value, when
715	715	7 multiplied by the estimated tax rate of the allocation area, will
716	716	8 exceed the amount of assessed value needed to produce the
717	717	9 property taxes necessary to:
718	718	10 (A) make the transfer required under subsection (b);
719	719	11 (B) make the distribution required under section 39(b)(2)
720	720	12 and 39(b)(3) of this chapter;
721	721	13 (C) make, when due, principal and interest payments on
722	722	14 bonds described in section 39(b)(4) of this chapter;
723	723	15 (D) pay the amount necessary for other purposes described
724	724	16 in section 39(b)(4) of this chapter; and
725	725	17 (E) reimburse the county or municipality for anticipated
726	726	18 expenditures described in subsection (c)(2).
727	727	19 (2) Provide a written notice to the county auditor, the fiscal
728	728	20 body of the county or municipality that established the
729	729	21 department of redevelopment, the officers who are authorized
730	730	22 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
731	731	23 each of the other taxing units that are wholly or partly located
732	732	24 within the allocation area, and (in an electronic format) the
733	733	25 department of local government finance. The notice must:
734	734	26 (A) state the amount, if any, of excess property taxes that
735	735	27 the commission has determined may be paid to the
736	736	28 respective taxing units in the manner prescribed in section
737	737	29 39(b)(1) of this chapter; or
738	738	30 (B) state that the commission has determined that there is
739	739	31 no excess assessed value that may be allocated to the
740	740	32 respective taxing units in the manner prescribed in
741	741	33 subdivision (1).
742	742	34 The county auditor shall allocate to the respective taxing units the
743	743	35 amount, if any, of excess assessed value determined by the
744	744	36 commission.
745	745	37 (e) If the amount of excess assessed value determined by the
746	746	38 commission is expected to generate more than two hundred percent
747	747	39 (200%) of the amount of allocated tax proceeds:
748	748	40 (1) necessary to make, when due, principal and interest
749	749	41 payments on bonds described in section 39(b)(4) of this
750	750	42 chapter; plus
751	751	2025 IN 1576—LS 7654/DI 129 18
752	752	1 (2) the amount necessary for other purposes described in
753	753	2 section 39(b)(4) of this chapter;
754	754	3 the commission shall submit to the county or municipal legislative
755	755	4 body its determination of the excess assessed value that the
756	756	5 commission proposes to allocate to the respective taxing units in
757	757	6 the manner prescribed in subsection (d)(2). The county or
758	758	7 municipal legislative body may approve the commission's
759	759	8 determination or modify the amount of the excess assessed value
760	760	9 that will be allocated to the respective taxing units in the manner
761	761	10 prescribed in subsection (d)(2).
762	762	11 (f) An allocation area must terminate on the date the qualified
763	763	12 community project program is terminated as set forth in section
764	764	13 59(e) of this chapter.
765	765	14 SECTION 14. [EFFECTIVE JULY 1, 2025] (a) IC 6-3.1-34-2.5
766	766	15 and IC 6-3.1-34-5.5, both as added by this act, apply to taxable
767	767	16 years beginning after December 31, 2025.
768	768	17 (b) IC 6-3.1-34-16, IC 6-3.1-34-17, and IC 6-3.1-34-18, all as
769	769	18 amended by this act, apply to taxable years beginning after
770	770	19 December 31, 2025.
771	771	20 (c) This SECTION expires July 1, 2027.
772	772	2025 IN 1576—LS 7654/DI 129