LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7190 NOTE PREPARED: Mar 25, 2025
BILL NUMBER: HB 1616 BILL AMENDED: Mar 25, 2025
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Sen. Glick
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. It establishes that the Department of Natural
Resources (DNR) can not certify credits into future years, but may maintain credits previously certified
(credits granted before March 10, 2025 for expenditures incurred before July 1, 2024).
Submerged Lands Preserves: The bill provides conditions and guidelines under which the 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: (Revised) 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. 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.
HB 1616 1 The bill would change the timing in which the DNR certifies these 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. The DNR would no longer be allowed to certify credits into future years, but maintains that credits
previously certified may still be claimed (credits granted before March 10, 2025 for expenditures incurred
before July 1, 2024).
Explanation of Local Expenditures: (Revised) Tax Lien Sales Involving Mineral Interests: County auditors
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 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