LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6748 NOTE PREPARED: Mar 31, 2025
BILL NUMBER: HB 1615 BILL AMENDED: Mar 18, 2025
SUBJECT: Certified Technology Parks.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Bassler
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill increases the maximum amount of an additional annual deposit amount
for a Level 2 Certified Technology Park (CTP) to: (1) $500,000; or (2) $500,000 multiplied by the number
of redevelopment commissions that have entered into a written agreement for the operation of the Level 2
park; as applicable.
The bill provides that if a Level 2 park: (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 Level 2 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 $250,000.
Effective Date: July 1, 2025.
Explanation of State Expenditures: 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: Summary - The bill increases the Level 2 park capture limit and establishes
a Level 3 park upon reaching certain requirements. The estimated impact to the state General Fund is up to
$2.0 M annually beginning in FY 2026.
Level 2 CTP: The bill increases the maximum annual amount for Level 2 parks to $500,000. (Under current
law, the limit is $250,000.) According to FY 2024 CTP distribution data from the DOR, there are currently
six CTPs (including one CTP that spans three counties) that have reached a lifetime limit of $5 M and are
certified as Level 2 parks. Based on the additional deposits to Level 2 CTPs in FY 2024, the estimated impact
HB 1615 1 on the state General Fund would be up to $1.4 M annually. The actual impact could be greater if additional
CTPs qualify for the Level 2 designation and begin receiving additional deposits.
Level 3 CTP: 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 $250,000. 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 $0.6 M each year.
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. Under current law, 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. The bill increases the Level 2 CTP capture limit to $500,000.
The total state and local additional revenue captured from this increase would be up to $2.0 M each year.
This bill also establishes Level 3 CTPs and authorizes an additional annual deposit of up to $250,000
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
$0.75 M each year.
Explanation of Local Expenditures:
Explanation of Local Revenues: Summary - The estimated impact on the local revenue is up to $0.75 M
annually beginning in FY 2026.
Level 2 CTP: Increasing the Level 2 parks' maximum annual capture limit would increase local income tax
(LIT) revenue distributed to the CTPs up to $0.6 M annually beginning in FY 2026.
Level 3 CTP: Establishing Level 3 CTPs will increase the amount of LIT revenue distributed to the CTPs.
The estimated increase in LIT captured by qualified CTPs is up to $0.15 M each year beginning in FY 2026.
State Agencies Affected: Indiana Economic Development Corporation; 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.
Fiscal Analyst: Qian Li, 317-232-9671.
HB 1615 2