*HB1601.1*
February 13, 2025
HOUSE BILL No. 1601
_____
DIGEST OF HB 1601 (Updated February 12, 2025 8:03 pm - DI 134)
Citations Affected: IC 6-1.1; IC 6-2.5.
Synopsis: Quantum research tax incentives. Amends the state sales
and use tax exemption for data centers to include projects for
investments in a quantum computing research, advanced computing,
and defense infrastructure network that result in a minimum qualified
investment within five years of at least $50,000,000.
Effective: July 1, 2025; January 1, 2026.
Soliday
January 21, 2025, read first time and referred to Committee on Ways and Means.
February 13, 2025, amended, reported — Do Pass.
HB 1601—LS 7625/DI 129 February 13, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1601
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-10-54 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2026]: Sec. 54. (a) As used in this section,
4 "designating body" means the fiscal body of:
5 (1) a county that does not contain a consolidated city; or
6 (2) a municipality.
7 (b) As used in this section, "eligible business" means an entity
8 that meets the following requirements:
9 (1) The entity is engaged in a business that:
10 (A) operates; or
11 (B) leases qualified property for use in;
12 one (1) or more facilities.
13 (2) The entity's qualified property is located at a facility in
14 Indiana.
15 (3) The entity, the lessor of qualified property (if the entity is
16 a lessee), and all lessees of qualified property invest in the
17 aggregate at least one hundred million dollars ($100,000,000)
HB 1601—LS 7625/DI 129 2
1 in real and personal property at one (1) or more facilities in
2 Indiana after June 30, 2022.
3 (4) The average wage of employees who are located in the
4 county or municipality and engaged in the operation of the
5 facility is at least one hundred twenty-five percent (125%) of
6 the county average wage for the county in which the facility
7 operates.
8 (c) As used in this section, "facility" has the meaning set forth
9 in IC 6-2.5-15-5.
10 (d) As used in this section, "fiscal body" has the meaning set
11 forth in IC 36-1-2-6.
12 (e) As used in this section, "municipality" has the meaning set
13 forth in IC 36-1-2-11.
14 (f) As used in this section, "qualified property" means quantum
15 safe fiber network equipment purchased after December 31, 2022,
16 and any additions to or replacements to such property.
17 (g) As used in this section, "quantum safe fiber network
18 equipment" has the meaning set forth in IC 6-2.5-15-13.3.
19 (h) A designating body may enter into an agreement with an
20 eligible business to grant the eligible business a property tax
21 exemption. In the case of a county, the exemption applies only to
22 qualified property that is located in unincorporated territory of the
23 county. In the case of a municipality, the exemption applies only to
24 qualified property that is located in the municipality. The property
25 tax exemption applies to the qualified property only if the
26 designating body and the eligible business enter into an agreement
27 concerning the property tax exemption. The agreement must
28 specify the duration of the property tax exemption. The agreement
29 may specify that if the ownership of qualified property is
30 transferred by an eligible business, the transferee is entitled to the
31 property tax exemption on the same terms as the transferor. If a
32 designating body enters into an agreement with an eligible
33 business, the qualified property owned by the eligible business is
34 exempt from property taxation as provided in the resolution and
35 the agreement.
36 (i) If a designating body enters into an agreement under
37 subsection (h) to provide a property tax exemption, the property
38 tax exemption continues for the period specified in the agreement.
39 SECTION 2. IC 6-2.5-15-0.5 IS ADDED TO THE INDIANA
40 CODE AS A NEW SECTION TO READ AS FOLLOWS
41 [EFFECTIVE JULY 1, 2025]: Sec. 0.5. As used in this chapter,
42 "advanced computing" means a computational method or
HB 1601—LS 7625/DI 129 3
1 technology, including hardware, software, and quantum safe fiber
2 network equipment, that is designed, engineered, and installed to
3 solve large, complex problems or process large data sets, including
4 quantum computing, artificial intelligence, edge computing, and
5 computational sets that use entanglement nodes that are beyond
6 the capability of classical digital computational computing.
7 SECTION 3. IC 6-2.5-15-3, AS ADDED BY P.L.256-2019,
8 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2025]: Sec. 3. As used in this chapter, "eligible data center
10 costs" means expenditures made after December 31, 2018, 2024, for
11 the development, acquisition, construction, and operation of a facility
12 to be used:
13 (1) as a qualified data center; or
14 (2) as part of a quantum computing research, advanced
15 computing, and defense infrastructure network that is
16 connected by quantum safe fiber network equipment and used
17 for quantum research or advanced computing at, or related
18 to, a qualified military installation in Indiana or the I-Light
19 network;
20 including costs of all quantum safe fiber network equipment,
21 rights-of-way, conduit, other required access, land, buildings, site
22 improvements, modular data centers, computer data center equipment
23 acquisition and permitting, lease payments, site characterization and
24 assessment, engineering, and design used directly and exclusively in a
25 qualified data center or as part of a quantum computing research,
26 advanced computing, and defense infrastructure network
27 described in subdivision (2).
28 SECTION 4. IC 6-2.5-15-5, AS ADDED BY P.L.256-2019,
29 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 5. As used in this chapter, "facility" means one (1)
31 or more tracts of land in Indiana and:
32 (1) a structure or building contained on the land used
33 specifically for:
34 (1) quantum research or commercialization;
35 (2) quantum safe fiber network equipment;
36 (3) advanced computing;
37 (4) quantum research or advanced computing for the
38 defense industry;
39 (5) the qualified equipment that is placed in the structure
40 or building; or
41 (6) one (1) or more quantum safe fiber networks;
42 including any structures and personal property contained on
HB 1601—LS 7625/DI 129 4
1 the land that is required to operate a quantum safe fiber
2 network; and
3 (2) any structures and personal property contained on the land for
4 the operation of a data center;
5 in either a single location or multiple distributed locations.
6 SECTION 5. IC 6-2.5-15-5.7 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2025]: Sec. 5.7. As used in this chapter,
9 "I-Light" has the meaning set forth in IC 8-1-32.7-3.
10 SECTION 6. IC 6-2.5-15-6.5 IS ADDED TO THE INDIANA
11 CODE AS A NEW SECTION TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2025]: Sec. 6.5. As used in this chapter,
13 "interest in a quantum computing research, advanced computing,
14 and defense infrastructure network" means an entity that is the
15 owner of, the operator of, or a qualified colocation tenant in, any
16 element of a quantum safe fiber network or a quantum computing,
17 advanced computing, and defense infrastructure network.
18 (b) The term includes an interest in a portion of a quantum
19 computing research, advanced computing, and defense
20 infrastructure network.
21 SECTION 7. IC 6-2.5-15-7, AS ADDED BY P.L.256-2019,
22 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 7. As used in this chapter, "operator" means an
24 entity, other than an owner or a qualified colocation tenant, operating
25 a data center or a quantum computing research, advanced
26 computing, and defense infrastructure network pursuant to a lease
27 or other contract with the owner or a lessor. The term includes a
28 licensed property management company, a property lessor, or any other
29 individual or entity responsible for the control, oversight, or
30 maintenance of a facility. The term also includes an affiliate of an
31 operator.
32 SECTION 8. IC 6-2.5-15-9, AS ADDED BY P.L.256-2019,
33 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 9. As used in this chapter, "qualified colocation
35 tenant" means an entity that contracts with the owner or operator of a:
36 (1) qualified data center; or
37 (2) quantum computing, advanced computing, and defense
38 infrastructure network;
39 that is certified under this chapter to use or occupy all or part of the
40 data center or quantum computing, advanced computing, and
41 defense infrastructure network for a period of two (2) or more years.
42 SECTION 9. IC 6-2.5-15-11, AS ADDED BY P.L.256-2019,
HB 1601—LS 7625/DI 129 5
1 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 11. As used in this chapter, "qualified data center
3 equipment" means data center equipment or quantum computing
4 research, advanced computing, and defense infrastructure network
5 equipment located at in a qualified data center or a quantum
6 computing research, advanced computing, and defense
7 infrastructure network.
8 SECTION 10. IC 6-2.5-15-13, AS ADDED BY P.L.256-2019,
9 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 13. As used in this chapter, "qualified investment"
11 means, with respect to a qualified data center or a quantum
12 computing research, advanced computing, and defense
13 infrastructure network, the aggregate nonduplicative eligible data
14 center costs or the eligible quantum computing research, advanced
15 computing, and defense infrastructure network costs, as applicable,
16 expended by any entity with an interest in the qualified data center or
17 a quantum computing research, advanced computing, and defense
18 infrastructure network.
19 SECTION 11. IC 6-2.5-15-13.2 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 13.2. As used in this chapter,
22 "quantum safe fiber network" means a fiber network that includes
23 each of the following attributes:
24 (1) A fiber infrastructure comprised of:
25 (A) standard single mode optical fibers (G.652.D) with
26 wavelengths that are between one thousand three hundred
27 ten (1,310) nanometers and one thousand five hundred fifty
28 (1,550) nanometers;
29 (B) quantum safe coherent routing reconfigurable line
30 system flexgrid optics; and
31 (C) wave servers that are compliant with the federal Trade
32 Agreements Act of 1979 (Public Law 96-39, 93 Stat. 144, as
33 amended);
34 on electronics and glass that are deployed after December 31,
35 2021, with minimal splicing, that will achieve a signal loss of
36 not more than fifteen (15) decibels. Each fiber splice may
37 account for not more than two-tenths (0.2) decibels per
38 kilometer at a wavelength of one thousand five hundred fifty
39 (1,550) nanometers.
40 (2) A fiber infrastructure that is connected to:
41 (A) a military installation of the United States of America;
42 (B) the Indiana National Guard;
HB 1601—LS 7625/DI 129 6
1 (C) another military outlet or I-Light; or
2 (D) an institution of higher learning conducting quantum
3 computing research or advanced computing research.
4 (3) A network engineered with physical intermediate access
5 points (nodes) not more than sixty (60) miles apart.
6 (4) A network with physical intermediate access points
7 (nodes) equipped with physical access control and remote
8 monitoring.
9 (5) A network deployed with equipment supporting
10 co-propagation of a quantum signal and an aggregate signal
11 of amplified dense wavelength-division multiplexing (DWDM)
12 channels in the ITU-T C-band or L-band.
13 (6) A network anticipated to be able to support the
14 deployment of quantum repeaters and support quantum
15 entanglement over distance.
16 (7) A network that complies with the federal Trade
17 Agreements Act of 1979 (Public Law 96-39, 93 Stat. 144) as
18 amended.
19 SECTION 12. IC 6-2.5-15-13.3 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 13.3. (a) As used in this chapter,
22 "quantum safe fiber network equipment" means optical gear,
23 transmission equipment, fiber, computer equipment, software, or
24 any other equipment or software of any type purchased or leased
25 for the processing, storage, retrieval, communication, or
26 transmission of data over a quantum safe fiber network that:
27 (1) is preapproved by the corporation;
28 (2) adheres to all compliance standards of the federal Trade
29 Agreements Act of 1979 (Public Law 96-39, 93 Stat. 144, as
30 amended) throughout the entire network, including all access
31 physical intermediate access points (nodes);
32 (3) has a manufacturing origin point in North America;
33 (4) uses coherent optics or technology from D-Wave Quantum
34 Systems, Inc., or its successor entity, and reconfigurable line
35 system technology; and
36 (5) supports quantum safe algorithms that are compliant with
37 National Institute of Standards and Technology of the United
38 States Department of Commerce requirements, including
39 post-quantum cryptography and other post quantum resistant
40 cryptography implementations.
41 (b) The term includes the following:
42 (1) Quantum-safe optical gear and federal Trade Agreements
HB 1601—LS 7625/DI 129 7
1 Act of 1979 (Public Law 96-39, 93 Stat. 144, as amended)
2 compliant American-made fiber optic cable, installed after
3 December 31, 2021.
4 (2) Servers, routers, connections, monitoring and security
5 systems, and other enabling machinery, equipment, and
6 hardware, regardless of whether the property is affixed to or
7 incorporated into real property.
8 (3) Equipment used in the operation of computer equipment
9 or software or for the benefit of a quantum computing
10 research, advanced computing, and defense infrastructure
11 network, including component parts, installations,
12 refreshments, replacements, and upgrades, regardless of
13 whether the property is affixed to or incorporated into real
14 property.
15 (4) All equipment necessary for the transformation,
16 generation, distribution, or management of electricity that is
17 required to operate advanced computer or quantum
18 computer server equipment, including substations,
19 generators, uninterruptible energy equipment, supplies,
20 conduit, fuel piping and storage, cabling, duct banks, switches,
21 switchboards, batteries, testing equipment, and backup
22 generators.
23 (5) All equipment necessary to cool and maintain a controlled
24 environment for the operation of the computer servers and
25 other components of a quantum fiber network, including
26 chillers, mechanical equipment, refrigerant piping, fuel piping
27 and storage, adiabatic and free cooling systems, cooling
28 towers, water softeners, air handling units, indoor direct
29 exchange units, fans, ducting, and filters.
30 (6) All water conservation systems, including facilities or
31 mechanisms that are designed to collect, conserve, and reuse
32 water required for the infrastructure of a quantum fiber
33 network.
34 (7) All computer server equipment, chassis, networking
35 equipment, switches, racks, fiber optic and copper cabling,
36 trays, and conduit required for a quantum fiber network.
37 (8) All conduit, ducting, and fiber optic and copper cabling
38 required for a quantum fiber network.
39 (9) All monitoring equipment and security systems.
40 (10) All software required for the operation, development,
41 and maintenance of a quantum fiber network.
42 (11) All intangible rights to use conduit or existing fibers
HB 1601—LS 7625/DI 129 8
1 directly related to a quantum fiber network.
2 (12) All tangible and intangible personal property that is
3 required for operation of each intermediate access point
4 (node) connected to a quantum fiber network, excluding
5 property used in the administration of the facility.
6 (13) Other tangible and intangible personal property that is
7 essential to the operations of a quantum fiber network,
8 excluding property used in the administration of the facility.
9 (14) All electricity used by qualified quantum fiber network
10 equipment, excluding electricity used in the administration of
11 the facility.
12 SECTION 13. IC 6-2.5-15-13.4 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025]: Sec. 13.4. As used in this chapter,
15 "quantum computing research, advanced computing, and defense
16 infrastructure network" means the quantum safe fiber network
17 between two (2) or more facilities using qualified equipment to
18 create and connect qualified facilities to a quantum safe fiber
19 network that create a minimum qualified investment of at least
20 fifty million dollars ($50,000,000) on or before the fifth anniversary
21 of the issuance of the specific transaction award certificate by the
22 corporation. The term includes the land, buildings, site
23 improvements, permitting, lease payments, site characterization
24 and assessment, engineering and design, quantum safe fiber
25 network equipment, rights-of-way, and any other required access,
26 used directly to be a part of:
27 (1) a qualified advanced computing or a qualified quantum
28 computing research initiative within Indiana;
29 (2) the deployment or expansion of advanced computing,
30 within Indiana;
31 (3) the expansion of the defense industry within Indiana; or
32 (4) the quantum computing research, advanced computing
33 and defense infrastructure network connected to and used
34 for:
35 (A) quantum research (including computing,
36 communication, and networking);
37 (B) advanced computing; or
38 (C) defense infrastructure network;
39 at or related to the federal or state of Indiana military
40 installations, research universities, I-Light, or any other
41 Department of Defense or Indiana National Guard
42 installation within Indiana.
HB 1601—LS 7625/DI 129 9
1 SECTION 14. IC 6-2.5-15-14, AS ADDED BY P.L.256-2019,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 14. (a) A qualified data center user or a quantum
4 computing research, advanced computing, and defense
5 infrastructure network operator that holds an interest in a qualified
6 data center or an interest in a quantum computing research,
7 advanced computing, and defense infrastructure network may
8 apply to the corporation for a specific transaction award certificate to
9 make purchases, other than the purchase of utilities described in
10 IC 6-2.5-4-5, that are exempt under this chapter. The request must be
11 on a form prescribed by the corporation.
12 (b) The corporation has exclusive authority over issues related to
13 issuing a specific transaction award certificate.
14 (c) If the corporation issues a specific transaction award certificate
15 under this chapter, the certificate must state that the facility is a
16 qualified data center or a quantum computing research, advanced
17 computing, and defense infrastructure network, as applicable.
18 (d) A specific transaction award certificate issued by the corporation
19 shall expire not later than:
20 (A) twenty-five (25) years after the date of issuance; or
21 (B) fifty (50) years after the date of issuance if the qualified
22 investment is seven hundred fifty million dollars ($750,000,000)
23 ($50,000,000) or greater within three (3) years of the issuance
24 of the transaction award certificate.
25 SECTION 15. IC 6-2.5-15-15, AS ADDED BY P.L.256-2019,
26 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 15. The following apply if the corporation
28 approves an application for a specific transaction award certificate:
29 (1) The corporation shall require the qualified data center user or
30 quantum computing research, advanced computing, and
31 defense infrastructure network operator, as applicable, to
32 enter into an agreement with the corporation as a condition of
33 receiving a specific transaction award certificate under this
34 chapter.
35 (2) The agreement with the corporation must include:
36 (A) a detailed description of the project that is the subject of
37 the agreement that includes documentation of compliance
38 with the requirement that the investment be specific to
39 infrastructure for the Indiana defense industry or
40 quantum computing research or advanced computing;
41 (B) the duration of the specific transaction award certificate
42 and the first taxable year for which the award provided by this
HB 1601—LS 7625/DI 129 10
1 chapter may be used; and
2 (C) a requirement that the qualified data center user or
3 quantum computing research, advanced computing, and
4 defense infrastructure network operator, as applicable,
5 annually report to the corporation on the amount of taxes that
6 were not paid by the qualified data center user or quantum
7 computing research, advanced computing, and defense
8 infrastructure network operator in connection with the
9 purchase of data center equipment or quantum computing
10 research, advanced computing, and defense infrastructure
11 network equipment, as applicable.
12 SECTION 16. IC 6-2.5-15-16, AS ADDED BY P.L.256-2019,
13 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 16. The sale of qualified data center or quantum
15 computing research, advanced computing, and defense
16 infrastructure network equipment is exempt from the state gross
17 retail tax if the qualified data center equipment or quantum
18 computing research, advanced computing, and defense
19 infrastructure network equipment, as applicable:
20 (1) is sold to a qualified data center user or a quantum
21 computing research, advanced computing, and defense
22 infrastructure network approved by the corporation under this
23 chapter; and
24 (2) will be located in a qualified data center, or is a part of a
25 quantum safe fiber network or is a part of a quantum
26 computing research, advanced computing, and defense
27 infrastructure network.
28 SECTION 17. IC 6-2.5-15-17, AS ADDED BY P.L.256-2019,
29 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 17. A qualified data center user or a quantum
31 computing research, advanced computing, and defense
32 infrastructure network operator is not entitled to the exemption
33 provided by section 16 of this chapter unless the qualified data center
34 user or the quantum computing research, advanced computing, and
35 defense infrastructure network operator provides the seller with an
36 exemption certificate on a form prescribed by the department and a
37 copy of the specific transaction award certificate issued by the
38 corporation. In the case of utilities described in IC 6-2.5-4-5, the
39 qualified data center user may issue an exemption certificate on a form
40 prescribed by the department and a copy of the specific transaction
41 award certificate issued by the corporation to cover all utility purchases
42 from that seller. However, for the corporation to issue a specific
HB 1601—LS 7625/DI 129 11
1 transaction award certificate for utilities described in IC 6-2.5-4-5, the
2 qualified data center user must agree to report and remit use tax under
3 this article to the department on the part of the utility purchases used
4 for administration of the facility.
5 SECTION 18. IC 6-2.5-15-18, AS ADDED BY P.L.256-2019,
6 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 18. (a) This section does not apply to a qualified
8 data center user that is a qualified colocation tenant.
9 (b) (a) If the corporation determines that a qualified data center user
10 or a quantum computing research, advanced computing, and
11 defense infrastructure network operator that did not pay taxes as a
12 result of the award provided under this chapter, and is not entitled to
13 the award because of the qualified data center user's noncompliance
14 with the requirements of the sales tax award certificate agreement or
15 this chapter, the corporation shall, after giving the qualified data center
16 user or the operator an opportunity to explain the noncompliance:
17 (1) notify the department of the noncompliance; and
18 (2) request the department to impose an assessment on the
19 qualified data center user or the quantum computing research,
20 advanced computing, and defense infrastructure network
21 operator in an amount that may not exceed the sum of the taxes
22 not paid as a result of the exemption provided under this chapter
23 together with interest and penalties required or permitted by law.
24 (c) (b) Notwithstanding the provisions of IC 6-8.1-5-2, an
25 assessment under subsection (b) (a) is considered timely if the
26 department issues a proposed assessment:
27 (1) not later than one hundred eighty (180) days from the date the
28 department is notified of the noncompliance; or
29 (2) the date on which a proposed assessment could otherwise be
30 issued in a timely manner under IC 6-8.1-5-2;
31 whichever is later.
32 SECTION 19. IC 6-2.5-15-19, AS ADDED BY P.L.256-2019,
33 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 19. Except as provided in section 18 of this
35 chapter, if the corporation approves a qualified data center user's or a
36 quantum computing research, advanced computing, and defense
37 infrastructure network operator's application to receive a specific
38 transaction award certificate and enters into an agreement with the
39 qualified data center user or the quantum computing research,
40 advanced computing, and defense infrastructure network operator
41 for a specific transaction award certificate, the corporation's
42 certification of the qualified data center or the quantum computing
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1 research, advanced computing, and defense infrastructure network
2 remains in effect, even if there is a future transfer, sale, or disposition,
3 directly or indirectly, of the qualified data center or the quantum
4 computing research, advanced computing, and defense
5 infrastructure network. A subsequent owner shall enter into an
6 agreement with the corporation before the subsequent owner is entitled
7 to receive a specific transaction award certificate for the remainder of
8 the eligibility period.
9 SECTION 20. IC 6-2.5-15-20, AS ADDED BY P.L.256-2019,
10 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 20. Beginning in 2030, and every ten (10) years
12 thereafter, the corporation shall submit to the legislative council in an
13 electronic format under IC 5-14-6 an economic and fiscal impact study
14 evaluating the statewide impact of data center investments and
15 quantum computing research, advanced computing, and defense
16 infrastructure network investments in Indiana.
HB 1601—LS 7625/DI 129 13
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1601, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, delete lines 1 through 17.
Delete pages 2 through 3.
Page 4, delete lines 1 through 17, begin a new paragraph and insert:
"SECTION 1. IC 6-1.1-10-54 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 54. (a) As used in this
section, "designating body" means the fiscal body of:
(1) a county that does not contain a consolidated city; or
(2) a municipality.
(b) As used in this section, "eligible business" means an entity
that meets the following requirements:
(1) The entity is engaged in a business that:
(A) operates; or
(B) leases qualified property for use in;
one (1) or more facilities.
(2) The entity's qualified property is located at a facility in
Indiana.
(3) The entity, the lessor of qualified property (if the entity is
a lessee), and all lessees of qualified property invest in the
aggregate at least one hundred million dollars ($100,000,000)
in real and personal property at one (1) or more facilities in
Indiana after June 30, 2022.
(4) The average wage of employees who are located in the
county or municipality and engaged in the operation of the
facility is at least one hundred twenty-five percent (125%) of
the county average wage for the county in which the facility
operates.
(c) As used in this section, "facility" has the meaning set forth
in IC 6-2.5-15-5.
(d) As used in this section, "fiscal body" has the meaning set
forth in IC 36-1-2-6.
(e) As used in this section, "municipality" has the meaning set
forth in IC 36-1-2-11.
(f) As used in this section, "qualified property" means quantum
safe fiber network equipment purchased after December 31, 2022,
and any additions to or replacements to such property.
(g) As used in this section, "quantum safe fiber network
HB 1601—LS 7625/DI 129 14
equipment" has the meaning set forth in IC 6-2.5-15-13.3.
(h) A designating body may enter into an agreement with an
eligible business to grant the eligible business a property tax
exemption. In the case of a county, the exemption applies only to
qualified property that is located in unincorporated territory of the
county. In the case of a municipality, the exemption applies only to
qualified property that is located in the municipality. The property
tax exemption applies to the qualified property only if the
designating body and the eligible business enter into an agreement
concerning the property tax exemption. The agreement must
specify the duration of the property tax exemption. The agreement
may specify that if the ownership of qualified property is
transferred by an eligible business, the transferee is entitled to the
property tax exemption on the same terms as the transferor. If a
designating body enters into an agreement with an eligible
business, the qualified property owned by the eligible business is
exempt from property taxation as provided in the resolution and
the agreement.
(i) If a designating body enters into an agreement under
subsection (h) to provide a property tax exemption, the property
tax exemption continues for the period specified in the agreement.
SECTION 2. IC 6-2.5-15-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 0.5. As used in this chapter,
"advanced computing" means a computational method or
technology, including hardware, software, and quantum safe fiber
network equipment, that is designed, engineered, and installed to
solve large, complex problems or process large data sets, including
quantum computing, artificial intelligence, edge computing, and
computational sets that use entanglement nodes that are beyond
the capability of classical digital computational computing.
SECTION 3. IC 6-2.5-15-3, AS ADDED BY P.L.256-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. As used in this chapter, "eligible data center
costs" means expenditures made after December 31, 2018, 2024, for
the development, acquisition, construction, and operation of a facility
to be used:
(1) as a qualified data center; or
(2) as part of a quantum computing research, advanced
computing, and defense infrastructure network that is
connected by quantum safe fiber network equipment and used
for quantum research or advanced computing at, or related
HB 1601—LS 7625/DI 129 15
to, a qualified military installation in Indiana or the I-Light
network;
including costs of all quantum safe fiber network equipment,
rights-of-way, conduit, other required access, land, buildings, site
improvements, modular data centers, computer data center equipment
acquisition and permitting, lease payments, site characterization and
assessment, engineering, and design used directly and exclusively in a
qualified data center or as part of a quantum computing research,
advanced computing, and defense infrastructure network
described in subdivision (2).
SECTION 4. IC 6-2.5-15-5, AS ADDED BY P.L.256-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. As used in this chapter, "facility" means one (1)
or more tracts of land in Indiana and:
(1) a structure or building contained on the land used
specifically for:
(1) quantum research or commercialization;
(2) quantum safe fiber network equipment;
(3) advanced computing;
(4) quantum research or advanced computing for the
defense industry;
(5) the qualified equipment that is placed in the structure
or building; or
(6) one (1) or more quantum safe fiber networks;
including any structures and personal property contained on
the land that is required to operate a quantum safe fiber
network; and
(2) any structures and personal property contained on the land for
the operation of a data center;
in either a single location or multiple distributed locations.".
Page 4, delete lines 22 through 33, begin a new paragraph and
insert:
"SECTION 6. IC 6-2.5-15-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6.5. As used in this chapter,
"interest in a quantum computing research, advanced computing,
and defense infrastructure network" means an entity that is the
owner of, the operator of, or a qualified colocation tenant in, any
element of a quantum safe fiber network or a quantum computing,
advanced computing, and defense infrastructure network.
(b) The term includes an interest in a portion of a quantum
computing research, advanced computing, and defense
HB 1601—LS 7625/DI 129 16
infrastructure network.".
Page 4, line 37, after "owner" delete ",".
Page 4, line 37, reset in roman "or a qualified colocation tenant,".
Page 4, line 38, reset in roman "data center".
Page 4, line 38, after "data center" insert "or a".
Page 5, delete lines 3 through 28, begin a new paragraph and insert:
"SECTION 8. IC 6-2.5-15-9, AS ADDED BY P.L.256-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 9. As used in this chapter, "qualified colocation
tenant" means an entity that contracts with the owner or operator of a:
(1) qualified data center; or
(2) quantum computing, advanced computing, and defense
infrastructure network;
that is certified under this chapter to use or occupy all or part of the
data center or quantum computing, advanced computing, and
defense infrastructure network for a period of two (2) or more
years.".
Page 5, line 32, reset in roman "data center".
Page 5, line 32, after "data center" insert "equipment or".
Page 5, line 34, reset in roman "data center.".
Page 5, line 34, after "center" delete "." and insert "or a".
Page 5, delete lines 37 through 39.
Page 6, line 1, reset in roman "qualified data center,".
Page 6, line 1, after "center" delete "," and insert "or a".
Page 6, line 3, reset in roman "data center".
Page 6, line 3, after "center" insert "costs or the eligible".
Page 6, line 5, after "costs" insert ", as applicable,".
Page 6, line 6, reset in roman "the qualified data center.".
Page 6, line 6, after "center." delete "." and insert "or".
Page 6, line 11, delete "capable" and insert "safe".
Page 6, line 13, delete "standard single mode" and insert ":
(A) standard single mode optical fibers (G.652.D) with
wavelengths that are between one thousand three hundred
ten (1,310) nanometers and one thousand five hundred fifty
(1,550) nanometers;
(B) quantum safe coherent routing reconfigurable line
system flexgrid optics; and
(C) wave servers that are compliant with the federal Trade
Agreements Act of 1979 (Public Law 96-39, 93 Stat. 144, as
amended);
on electronics and glass that are deployed after December 31,
2021, with minimal splicing, that will achieve a signal loss of
HB 1601—LS 7625/DI 129 17
not more than fifteen (15) decibels. Each fiber splice may
account for not more than two-tenths (0.2) decibels per
kilometer at a wavelength of one thousand five hundred fifty
(1,550) nanometers.".
Page 6, delete lines 14 through 15.
Page 6, line 23, after "points" insert "(nodes)".
Page 6, line 24, after "with" delete "a".
Page 6, line 24, delete "point" and insert "points (nodes)".
Page 6, line 38, after "13.3." insert "(a)".
Page 6, line 39, delete "capable" and insert "safe".
Page 6, line 40, after "transmission equipment" insert ", fiber,".
Page 7, line 1, delete "capable" and insert "safe".
Page 7, line 1, delete "that is preapproved" and insert "that:
(1) is preapproved by the corporation;
(2) adheres to all compliance standards of the federal Trade
Agreements Act of 1979 (Public Law 96-39, 93 Stat. 144, as
amended) throughout the entire network, including all access
physical intermediate access points (nodes);
(3) has a manufacturing origin point in North America;
(4) uses coherent optics or technology from D-Wave Quantum
Systems, Inc., or its successor entity, and reconfigurable line
system technology; and
(5) supports quantum safe algorithms that are compliant with
National Institute of Standards and Technology of the United
States Department of Commerce requirements, including
post-quantum cryptography and other post quantum resistant
cryptography implementations.".
Page 7, line 2, delete "by the corporation. The term includes the
following:", begin a new paragraph and insert:
"(b) The term includes the following:".
Page 7, line 3, delete "Quantum-enabled" and insert
"Quantum-safe".
Page 7, line 5, delete "cable." and insert "cable, installed after
December 31, 2021.".
Page 8, line 5, after "point" insert "(node)".
Page 8, line 18, delete "capable" and insert "safe".
Page 8, line 19, delete "quantum capable".
Page 8, line 20, after "equipment to" insert "create and".
Page 8, line 20, delete "capable" and insert "safe".
Page 8, line 27, delete "capable" and insert "safe".
Page 8, line 37, delete "research;" and insert "research (including
computing, communication, and networking);".
HB 1601—LS 7625/DI 129 18
Page 8, line 39, delete "infrastructure;" and insert "infrastructure
network;".
Page 9, line 4, reset in roman "data center user".
Page 9, line 4, after "user" insert "or a".
Page 9, line 6, reset in roman "qualified".
Page 9, line 7, reset in roman "data center".
Page 9, line 7, delete "portion of" and insert "or an interest in".
Page 9, line 10, after "purchases" insert ",".
Page 9, line 10, reset in roman "other than the purchase of utilities
described in IC 6-2.5-4-5,".
Page 9, line 17, reset in roman "data center.".
Page 9, line 17, after "center" delete "." and insert "or a".
Page 9, line 18, delete "network." and insert "network, as
applicable.".
Page 9, line 20, after "than" insert ":".
Page 9, line 21, reset in roman "(A) twenty-five (25) years after the
date of issuance; or".
Page 9, line 22, reset in roman "(B)".
Page 9, line 30, reset in roman "data center user".
Page 9, line 30, after "user" insert "or".
Page 9, line 32, after "operator" insert ", as applicable,".
Page 10, line 2, reset in roman "data center user".
Page 10, line 2, after "user" insert "or".
Page 10, line 4, after "operator" insert ", as applicable,".
Page 10, line 6, reset in roman "qualified data center user".
Page 10, line 6, after "user" insert "or".
Page 10, line 8, reset in roman "data center".
Page 10, line 8, after "center" insert "equipment or".
Page 10, line 10, after "equipment" delete "." and insert ", as
applicable.".
Page 10, line 13, reset in roman "qualified data center".
Page 10, line 13, after "center" insert "or".
Page 10, line 16, reset in roman "qualified data center".
Page 10, line 16, after "center" insert "equipment or".
Page 10, line 18, after "equipment" delete ":" and insert ", as
applicable:".
Page 10, line 19, reset in roman "qualified data center user".
Page 10, line 19, after "user" insert "or a".
Page 10, line 22, reset in roman "will be located in a qualified data".
Page 10, line 22, after "data" delete "center." and insert "center, or
is a part of a quantum safe fiber network or".
Page 10, line 27, reset in roman "qualified data center user".
HB 1601—LS 7625/DI 129 19
Page 10, line 27, after "user" insert "or a".
Page 10, line 30, reset in roman "qualified data center".
Page 10, line 31, reset in roman "user".
Page 10, line 31, after "user" insert "or the".
Page 10, line 35, reset in roman "In the case of utilities described in
IC 6-2.5-4-5, the".
Page 10, reset in roman lines 36 through 42.
Page 11, reset in roman line 1.
Page 11, line 6, reset in roman "qualified data center user".
Page 11, line 6, after "user" insert "or a".
Page 11, line 9, after "chapter," insert "and".
Page 11, line 9, reset in roman "is not entitled to the award".
Page 11, reset in roman lines 10 through 11.
Page 11, line 12, reset in roman "chapter,".
Page 11, line 12, reset in roman "qualified data center user".
Page 11, line 12, after "user" insert "or the".
Page 11, line 16, reset in roman "qualified data center user".
Page 11, line 16, after "user" insert "or the".
Page 11, line 32, reset in roman "qualified data center user's".
Page 11, line 32, after "user's" insert "or a".
Page 11, line 36, reset in roman "qualified data center user".
Page 11, line 36, after "user" insert "or the".
Page 11, line 39, reset in roman "qualified data center".
Page 11, line 39, after "center" insert "or the".
Page 11, line 42, reset in roman "qualified data center".
Page 11, line 42, after "center" delete "." and insert "or the".
Page 12, line 10, reset in roman "data center".
Page 12, line 10, after "center" insert "investments and".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1601 as introduced.)
THOMPSON
Committee Vote: yeas 20, nays 3.
HB 1601—LS 7625/DI 129