LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6748 NOTE PREPARED: Jan 27, 2025
BILL NUMBER: HB 1615 BILL AMENDED:
SUBJECT: Military Base Development.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill establishes the Indiana Military Base Infrastructure Grant Program for
physical infrastructure projects located on current or proposed Indiana military bases.
The bill provides that the: (1) Indiana Defense Task Force, in consultation with the Indiana Economic
Development Corporation (IEDC) shall develop policies and guidelines regarding the application process
for the program; and (2) IEDC shall administer the program.
The bill provides that the Budget Committee must make a recommendation to the Budget Agency on whether
to approve a proposed grant. The bill also requires the Budget Agency to approve a proposed grant before
the grant may be awarded. The bill establishes the Indiana Military Base Infrastructure Grant Fund within
the state treasury as a dedicated fund.
The bill provides that if a Level 2 Certified Technology Park (CTP): (1) has reached the limit of deposits for
a Level 2 park; (2) maintains its certification; and (3) is located within a military base enhancement area; the
park shall become a Level 3 park upon reaching its Level 2 deposit limit.
The bill provides that a Level 3 park may receive an additional annual incremental income tax deposit of up
to $500,000.
The bill makes an appropriation.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Indiana Military Base Infrastructure Grant Program: The bill
establishes the Indiana Military Base Infrastructure Grant Program, which would be administered by the
IEDC. The bill's requirements represent an additional workload and expenditure on the IEDC. The IEDC can
use money appropriated for the program to cover the additional expenses.
The bill requires the Indiana Defense Task Force, in consultation with the IEDC, to develop policies and
HB 1615 1 guidelines for grant application. Before the IEDC may allocate money for grants, the IEDC would submit
grant proposals to the Budget Committee to make recommendations to the Budget Agency, and the Budget
Agency must approve the proposals. These requirements are within the agencies' routine functions and should
be able to be implemented using existing resources.
Indiana Military Base Infrastructure Grant Fund: The bill establishes the nonreverting Indiana Military Base
Infrastructure Grant Fund, which would be administered by the IEDC. The fund consists of appropriations
from the General Assembly and interest. Money in the fund may be used for grants approved by the Budget
Agency and the IEDC's administrative expenses incurred to administer the fund and the program. The bill
appropriates $25 M to the fund in FY 2026 and $25 M in FY 2027.
Certified Technology Parks: The Department of State Revenue (DOR) will incur additional expenses to
compute additional incremental tax distributions. The DOR's current level of staff and resources should be
sufficient to implement the provisions within the bill.
The IEDC will determine if a CTP qualifies for the Level 3 criteria and conduct re-certification every three
years. The IEDC's current level of staff and resources should be sufficient to implement this provision.
Explanation of State Revenues: Certified Technology Parks: The bill provides that if a Level 2 CTP meets
certain criteria, it will become a Level 3 CTP and may receive an additional annual incremental income tax
deposit of up to $500,000. The additional revenue is comprised of the incremental state and local income tax
captures. The bill may decrease revenue to the state General Fund by an estimated maximum of $1.2 M each
year beginning in FY 2026.
Additional Information - The CTP program was created to help businesses involved in high technology to
locate in Indiana and facilitate job creation by these businesses. CTPs are authorized to capture incremental
revenue from sales tax, state income tax, and local income tax. Each CTP has a lifetime limit of $5 M in
revenue the CTP can capture, with an annual additional revenue capture limit of $250,000 for Level 2 CTPs
after reaching the $5 M cap. This bill establishes Level 3 CTPs and authorizes an additional annual deposit
of up to $500,000 multiplied by the number of redevelopment commissions that have entered into a written
agreement for the operation of the CTP. LSA identified one CTP that could potentially qualify for the Level
3 criteria. This CTP spans three counties. The total state and local additional revenue captured by the CTP
would be up to $1.5 M each year.
Explanation of Local Expenditures:
Explanation of Local Revenues: Establishing Level 3 CTPs will increase the amount of local income tax
(LIT) revenue distributed to the CTPs. The estimated increase in LIT captured by qualified CTPs is up to
$0.3 M each year beginning in FY 2026.
State Agencies Affected: Indiana Economic Development Corporation; Indiana Defense Task Force; State
Budget Agency; Department of State Revenue.
Local Agencies Affected: Redevelopment commissions.
Information Sources: Department of State Revenue; Office of Fiscal and Management Analysis, 2021 Tax
Incentive Evaluation; Indiana Economic Development Corporation,
https://iedc.in.gov/program/certified-technology-parks/overview.
HB 1615 2 Fiscal Analyst: Qian Li, 317-232-9671.
HB 1615 3