Indiana 2025 2025 Regular Session

Indiana House Bill HB1616 Introduced / Fiscal Note

Filed 04/15/2025

                    LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7190	NOTE PREPARED: Apr 14, 2025
BILL NUMBER: HB 1616	BILL AMENDED: Apr 14, 2025
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Lindauer	BILL STATUS: 2
nd
 Reading - 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.
Interim Study Committee Topic: The bill asks the Legislative Council to assign to an appropriate interim
study committee the topic of studying the economic value of public land for recreation in Indiana.
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.
(Revised) Interim Study Committee Topic: The bill urges the Legislative Council to assign the topic of
studying the economic value of public land for recreation in Indiana and specifies what the study must
include. The Legislative Council could assign the topic to an existing interim study committee or establish
a new interim study committee to study this topic during the next interim. Interim study committees operate
on budgets established by the Legislative Council based on committee size. Legislative Council resolutions
in the past have established budgets for interim study committees in the amount of $13,500 per interim for
HB 1616	1 committees with fewer than 16 members and $17,500 for committees with 16 members or more. If the
Legislative Council were to assign this topic to an existing committee and the committee were to have any
extra meetings to address this topic, there would be additional expenditures for legislator per diem and travel
reimbursement for the committee members. Any additional expenditures must be within the committee’s
budget.
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. 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. 
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: 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; General Assembly; 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