LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7190 NOTE PREPARED: Apr 21, 2025
BILL NUMBER: HB 1616 BILL AMENDED: Apr 14, 2025
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Glick
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: 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.
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 committees
HB 1616 1 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 by establishing a $10,000 cap on individual credits certified after March 9, 2025. The
program has an annual cap of $250,000 for all credits. The impact will not be seen until FY 2030 or after as
DNR states that, due to the annual cap and the increased use of the program in recent years, they have
previously certified credits into FY 2030. The DNR would no longer be allowed to certify credits into future
years. However the bill maintains that credits previously certified may still be claimed (credits granted before
March 10, 2025 for expenditures incurred before July 1, 2024).
The timing of the revenue impact, beginning in FY 2030, is indeterminate and will depend on the amounts
of the credits previously certified but not yet claimed, the timing of when those taxpayers have tax liabilities
sufficient to claim the credits (credits may be carried forward for up to 15 years), and whether the $10,000
cap would impact the number and/or total amounts of future credits certified each year. (The 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: 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.
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