LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7190 NOTE PREPARED: Feb 13, 2025
BILL NUMBER: HB 1616 BILL AMENDED: Feb 13, 2025
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) Tax Lien Sales Involving Mineral Interests: The bill establishes a
procedure to be followed when there are unpaid taxes assessed on a mineral interest.
Residential Historic Rehabilitation Credit: The bill adds a $10,000 cap on a tax credit for a taxpayer who
completes preservation or rehabilitation of a historic property.
Submerged Lands Preserves: The bill provides conditions and guidelines under which the Department of
Natural Resources (DNR) may establish submerged lands preserves.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Submerged Lands Preserves: The bill could increase workload and
expenditures for the DNR’s Division of Nature Preserves as it allows them to establish a submerged lands
preserve. It requires that any current nature preserve that includes certain abandoned property (pertaining
to submerged aircraft or watercraft) to be reclassified as a submerged lands preserve. The bill allows the
Natural Resources Commission (NRC) to adopt rules to implement these provisions. The DNR and the NRC
should be able to implement these requirements using existing staffing and resources.
Explanation of State Revenues: Residential Historic Rehabilitation Credits: Revenues to the state General
Fund could increase, but not until FY 2030 or after, by establishing a $10,000 cap on individual credits. This
would apply to credits certified after June 2025, but the impact would not be seen until all previously
certified credits are no longer able to be claimed, as homeowners are able to carry the credit forward for up
to 15 years, since they may not have enough tax liability to use the credit right away. Additionally, the
program has an annual cap of $250,000 for all credits. The DNR states that due to the annual cap and the
increased use of the program in recent years, they are currently certifying credits for FY 2030. This program
offers a credit of 20% of eligible expenses. Therefore, the new cap would reduce credits for any project with
total qualified expenditures over $50,000.
Explanation of Local Expenditures: (Revised) Tax Lien Sales Involving Mineral Interests: County auditors
HB 1616 1 would have additional tasks regarding the tax lien sale on a mineral interest to post a copy of a notice on the
county’s website, to provide electronic access to the notice through the Indiana Gateway, and to provide a
copy of the notice to the DNR.
Explanation of Local Revenues:
State Agencies Affected: Department of Natural Resources; Natural Resources Commission.
Local Agencies Affected: County auditors.
Information Sources:
https://www.indy.gov/activity/prepare-for-a-tax-sale
Marion County, Indiana 2023 Online Tax Sale Information and Procedures;
https://www.in.gov/dnr/historic-preservation/financial-assistance/residential-tax-credit/.
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1616 2