Indiana 2025 Regular Session

Indiana House Bill HB1668 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1668
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-8.
7	7	Synopsis: Assessment of wind, solar, and battery devices. Requires a
8	8	new public utility company owner of a wind power device to report, in
9	9	years after the first year of ownership, the valuation of the wind power
10	10	device at the same valuation amount entered in the public utility
11	11	company's first annual report after the change in ownership, less
12	12	adjustments for depreciation according to a schedule prescribed by the
13	13	department of local government finance (department). Requires a new
14	14	public utility company owner of a solar power device or a utility scale
15	15	battery energy storage system to report the valuation of the solar power
16	16	device or utility scale battery energy storage system at the same
17	17	valuation amount that the previous owner last valued the solar power
18	18	device or utility scale battery energy storage system prior to the change
19	19	in ownership, less adjustments for depreciation according to a schedule
20	20	prescribed by the department. Requires the department to create
21	21	depreciation schedules. Requires the department to prepare and present
22	22	reports to the interim study committee on energy, utilities, and
23	23	telecommunications on: (1) the valuation of the devices and systems;
24	24	and (2) the department's progress in implementing the bill's provisions.
25	25	Effective: January 1, 2026.
26	26	Culp
27	27	January 21, 2025, read first time and referred to Committee on Utilities, Energy and
28	28	Telecommunications.
29	29	2025 IN 1668—LS 7328/DI 125 Introduced
30	30	First Regular Session of the 124th General Assembly (2025)
31	31	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
32	32	Constitution) is being amended, the text of the existing provision will appear in this style type,
33	33	additions will appear in this style type, and deletions will appear in this style type.
34	34	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
35	35	provision adopted), the text of the new provision will appear in this style type. Also, the
36	36	word NEW will appear in that style type in the introductory clause of each SECTION that adds
37	37	a new provision to the Indiana Code or the Indiana Constitution.
38	38	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
39	39	between statutes enacted by the 2024 Regular Session of the General Assembly.
40	40	HOUSE BILL No. 1668
41	41	A BILL FOR AN ACT to amend the Indiana Code concerning
42	42	taxation.
43	43	Be it enacted by the General Assembly of the State of Indiana:
44	44	1 SECTION 1. IC 6-1.1-8-19.5, AS ADDED BY P.L.144-2023,
45	45	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
46	46	3 JANUARY 1, 2026]: Sec. 19.5. (a) This section applies to: a public
47	47	4 utility company that:
48	48	5 (1) a public utility company that owns or operates one (1) or
49	49	6 more wind power devices as a result of a change in ownership;
50	50	7 and
51	51	8 (2) is filing the public utility company's first annual report as the
52	52	9 new owner of the wind power devices following a assessment
53	53	10 dates following the change in ownership of the wind power
54	54	11 devices.
55	55	12 (b) This section does not apply to a public utility company that owns
56	56	13 or operates one (1) or more wind power devices and that has signed or
57	57	14 countersigned an economic development agreement, or another
58	58	15 financial agreement, that is entered into:
59	59	16 (1) with the county in which the public utility company's wind
60	60	17 power devices are located; and
61	61	2025 IN 1668—LS 7328/DI 125 2
62	62	1 (2) for the purpose of:
63	63	2 (A) repowering the wind power devices; or
64	64	3 (B) upgrading the technology used in the wind power devices;
65	65	4 before a sale or transfer of the wind power devices.
66	66	5 (c) (b) As used in this section, "annual report" means the statement
67	67	6 of value and description of property described in section 19 of this
68	68	7 chapter.
69	69	8 (d) (c) As used in this section, "change of ownership", with respect
70	70	9 to one (1) or more wind power devices owned by a public utility
71	71	10 company, means any:
72	72	11 (1) transaction or series of related transactions (whether as a
73	73	12 result of a tender offer, merger, consolidation, reorganization,
74	74	13 acquisition, sale or transfer of equity securities, proxy, power of
75	75	14 attorney, or otherwise) that results in, or occurs in connection
76	76	15 with, another public utility company acquiring beneficial
77	77	16 ownership, directly or indirectly, of a majority of the then issued
78	78	17 and outstanding voting securities or combined voting rights of the
79	79	18 public utility company; or
80	80	19 (2) sale, lease, exchange, conveyance, transfer, distribution, or
81	81	20 other disposition whether:
82	82	21 (A) for cash, securities, equity interests, or other consideration;
83	83	22 or
84	84	23 (B) made in connection with any liquidation, dissolution, or
85	85	24 winding up of the affairs of the public utility company;
86	86	25 of substantially all of the public utility company's wind power
87	87	26 devices to another public utility company.
88	88	27 (e) (d) As used in this section, "wind power device" means a device,
89	89	28 including a windmill or a wind turbine, that is designed to use the
90	90	29 kinetic energy of moving air to provide mechanical energy or to
91	91	30 produce electricity.
92	92	31 (f) (e) Notwithstanding any other law or rule adopted by the
93	93	32 department, a public utility company described in subsection (a) shall:
94	94	33 (1) value the wind power devices at the same valuation amount
95	95	34 that the previous owner valued the wind power devices prior to
96	96	35 the change in ownership on the previous owner's last annual
97	97	36 report;
98	98	37 (2) enter that valuation amount on the public utility company's
99	99	38 first annual report following the change in ownership; and
100	100	39 (3) notify the department in a timely manner of the change in
101	101	40 ownership;
102	102	41 if the valuation amount that the public utility company would otherwise
103	103	42 enter on the report, in accordance with this chapter and the rules
104	104	2025 IN 1668—LS 7328/DI 125 3
105	105	1 prescribed by the department, is lower than the valuation amount that
106	106	2 the previous owner valued the wind power devices before the change
107	107	3 in ownership on the previous owner's last annual report.
108	108	4 (g) (f) For years subsequent to the first year after the change in
109	109	5 ownership, the public utility company shall calculate value and report
110	110	6 the valuation of the wind power devices on the annual report in
111	111	7 accordance with this chapter and the rules prescribed by the
112	112	8 department. However, in determining the just value of the property of
113	113	9 the public utility company in any year subsequent to the first year after
114	114	10 the change in ownership, the department shall not consider valuations
115	115	11 determined by another governmental agency, notwithstanding section
116	116	12 26(b)(5) of this chapter. at the same valuation amount entered on
117	117	13 the public utility company's first annual report under subsection
118	118	14 (e)(2), less adjustments for depreciation made according to a
119	119	15 schedule prescribed by the department.
120	120	16 (h) (g) The department shall:
121	121	17 (1) make changes to the annual report form necessary to conform
122	122	18 with the provisions of this section; and
123	123	19 (2) create a depreciation schedule using the previous owner's
124	124	20 cost basis for purposes of determining valuation amounts
125	125	21 under subsection (f).
126	126	22 (i) (h) The Indiana utility regulatory commission shall include a
127	127	23 provision in an order issued under IC 8-1-2.5-5 to a public utility
128	128	24 company that:
129	129	25 (1) owns or operates one (1) or more wind power devices; or
130	130	26 (2) plans to own or operate one (1) or more wind power devices;
131	131	27 requiring the public utility company to notify the department of any
132	132	28 change in ownership of the wind power devices.
133	133	29 (j) (i) Before November 1, 2024, 2026, and before November 1,
134	134	30 2025, 2027, the department shall prepare, submit in an electronic
135	135	31 format under IC 5-14-6, and present to the interim study committee on
136	136	32 energy, utilities, and telecommunications established by
137	137	33 IC 2-5-1.3-4(8) a report on the valuation of wind power devices and the
138	138	34 progress of implementing this section.
139	139	35 SECTION 2. IC 6-1.1-8-19.6 IS ADDED TO THE INDIANA
140	140	36 CODE AS A NEW SECTION TO READ AS FOLLOWS
141	141	37 [EFFECTIVE JANUARY 1, 2026]: Sec. 19.6. (a) This section applies
142	142	38 to:
143	143	39 (1) a public utility company that owns or operates one (1) or
144	144	40 more solar power devices as a result of a change in
145	145	41 ownership; and
146	146	42 (2) assessment dates following the change in ownership of the
147	147	2025 IN 1668—LS 7328/DI 125 4
148	148	1 solar power devices.
149	149	2 (b) As used in this section, "annual report" means the statement
150	150	3 of value and description of property described in section 19 of this
151	151	4 chapter.
152	152	5 (c) As used in this section, "change of ownership", with respect
153	153	6 to one (1) or more solar power devices owned by a public utility
154	154	7 company, means any:
155	155	8 (1) transaction or series of related transactions (whether as a
156	156	9 result of a tender offer, merger, consolidation, reorganization,
157	157	10 acquisition, sale or transfer of equity securities, proxy, power
158	158	11 of attorney, or otherwise) that results in, or occurs in
159	159	12 connection with, another public utility company acquiring
160	160	13 beneficial ownership, directly or indirectly, of a majority of
161	161	14 the then issued and outstanding voting securities or combined
162	162	15 voting rights of the public utility company; or
163	163	16 (2) sale, lease, exchange, conveyance, transfer, distribution, or
164	164	17 other disposition whether:
165	165	18 (A) for cash, securities, equity interests, or other
166	166	19 consideration; or
167	167	20 (B) made in connection with any liquidation, dissolution, or
168	168	21 winding up of the affairs of the public utility company;
169	169	22 of substantially all of the public utility company's solar power
170	170	23 devices to another public utility company.
171	171	24 (d) As used in this section, "solar power device" means a device,
172	172	25 such as a solar thermal, a photovoltaic, or other solar energy
173	173	26 system, that is designed to use the radiant light or heat from the
174	174	27 sun to produce electricity.
175	175	28 (e) Following a change of ownership, the public utility company
176	176	29 that is the new owner of the solar power devices shall notify the
177	177	30 department in a timely manner of the change in ownership.
178	178	31 (f) Notwithstanding any other law or rule adopted by the
179	179	32 department, if the valuation amount that a public utility company
180	180	33 would otherwise enter on its first annual report following a change
181	181	34 in ownership, in accordance with this chapter and the rules
182	182	35 prescribed by the department, is lower than the valuation amount
183	183	36 that the previous owner valued the solar power devices before the
184	184	37 change in ownership on the previous owner's last annual report,
185	185	38 the public utility company shall:
186	186	39 (1) value the solar power devices at a valuation amount that
187	187	40 is equal to, or greater than, the valuation amount that the
188	188	41 previous owner valued the solar power devices prior to the
189	189	42 change in ownership on the previous owner's last annual
190	190	2025 IN 1668—LS 7328/DI 125 5
191	191	1 report; and
192	192	2 (2) enter that valuation amount on the public utility
193	193	3 company's first annual report following the change in
194	194	4 ownership.
195	195	5 (g) For years subsequent to the first year after the change in
196	196	6 ownership, the public utility company shall value and report the
197	197	7 solar power devices at the same valuation amount entered on the
198	198	8 public utility company's first annual report under subsection (f)(2),
199	199	9 less adjustments for depreciation made according to a schedule
200	200	10 prescribed by the department.
201	201	11 (h) The department shall:
202	202	12 (1) make changes to the annual report form necessary to
203	203	13 conform with the provisions of this section; and
204	204	14 (2) create a depreciation schedule using the previous owner's
205	205	15 cost basis for purposes of determining valuation amounts
206	206	16 under subsection (g).
207	207	17 (i) The Indiana utility regulatory commission shall include a
208	208	18 provision in an order issued under IC 8-1-2.5-5 to a public utility
209	209	19 company that:
210	210	20 (1) owns or operates one (1) or more solar power devices; or
211	211	21 (2) plans to own or operate one (1) or more solar power
212	212	22 devices;
213	213	23 requiring the public utility company to notify the department of
214	214	24 any change in ownership of the solar power devices.
215	215	25 (j) Before November 1, 2026, and before November 1, 2027, the
216	216	26 department shall:
217	217	27 (1) prepare a report on the valuation of solar power devices
218	218	28 and the progress of implementing this section;
219	219	29 (2) submit the report to the general assembly in an electronic
220	220	30 format under IC 5-14-6; and
221	221	31 (3) present the report to the interim study committee on
222	222	32 energy, utilities, and telecommunications established by
223	223	33 IC 2-5-1.3-4(8).
224	224	34 SECTION 3. IC 6-1.1-8-19.7 IS ADDED TO THE INDIANA
225	225	35 CODE AS A NEW SECTION TO READ AS FOLLOWS
226	226	36 [EFFECTIVE JANUARY 1, 2026]: Sec. 19.7. (a) This section applies
227	227	37 to:
228	228	38 (1) a public utility company that owns or operates one (1) or
229	229	39 more utility scale battery energy storage systems as a result
230	230	40 of a change in ownership; and
231	231	41 (2) assessment dates following the change in ownership of the
232	232	42 utility scale battery energy storage systems.
233	233	2025 IN 1668—LS 7328/DI 125 6
234	234	1 (b) As used in this section, "annual report" means the statement
235	235	2 of value and description of property described in section 19 of this
236	236	3 chapter.
237	237	4 (c) As used in this section, "change of ownership", with respect
238	238	5 to one (1) or more utility scale battery energy storage systems
239	239	6 owned by a public utility company, means any:
240	240	7 (1) transaction or series of related transactions (whether as a
241	241	8 result of a tender offer, merger, consolidation, reorganization,
242	242	9 acquisition, sale or transfer of equity securities, proxy, power
243	243	10 of attorney, or otherwise) that results in, or occurs in
244	244	11 connection with, another public utility company acquiring
245	245	12 beneficial ownership, directly or indirectly, of a majority of
246	246	13 the then issued and outstanding voting securities or combined
247	247	14 voting rights of the public utility company; or
248	248	15 (2) sale, lease, exchange, conveyance, transfer, distribution, or
249	249	16 other disposition whether:
250	250	17 (A) for cash, securities, equity interests, or other
251	251	18 consideration; or
252	252	19 (B) made in connection with any liquidation, dissolution, or
253	253	20 winding up of the affairs of the public utility company;
254	254	21 of substantially all of the public utility company's utility scale
255	255	22 battery energy storage systems to another public utility
256	256	23 company.
257	257	24 (d) As used in this section, "utility scale battery energy storage
258	258	25 system" means a system capable of storing and releasing greater
259	259	26 than 1MW of electrical energy for a minimum of one (1) hour
260	260	27 utilizing an AC inverter and DC storage, or equipment which
261	261	28 receives, stores, and delivers energy using batteries, compressed
262	262	29 air, pumped hydropower, hydrogen storage (including hydrolysis),
263	263	30 thermal energy storage, regenerative fuel cells, flywheels,
264	264	31 capacitors, and superconducting magnets, but does not include
265	265	32 foundations or property used to directly or indirectly connect the
266	266	33 AC inverter or DC storage of such system to electrical energy
267	267	34 production equipment or the customer's meter.
268	268	35 (e) Following a change of ownership, the public utility company
269	269	36 that is the new owner of the utility scale battery energy storage
270	270	37 systems shall notify the department in a timely manner of the
271	271	38 change in ownership.
272	272	39 (f) Notwithstanding any other law or rule adopted by the
273	273	40 department, if the valuation amount that a public utility company
274	274	41 would otherwise enter on its first annual report following a change
275	275	42 in ownership, in accordance with this chapter and the rules
276	276	2025 IN 1668—LS 7328/DI 125 7
277	277	1 prescribed by the department, is lower than the valuation amount
278	278	2 that the previous owner valued the utility scale battery energy
279	279	3 storage system before the change in ownership on the previous
280	280	4 owner's last annual report, the public utility company shall:
281	281	5 (1) value the utility scale battery energy storage systems at a
282	282	6 valuation amount that is equal to, or greater than, the
283	283	7 valuation amount that the previous owner valued the utility
284	284	8 scale battery energy storage systems prior to the change in
285	285	9 ownership on the previous owner's last annual report; and
286	286	10 (2) enter that valuation amount on the public utility
287	287	11 company's first annual report following the change in
288	288	12 ownership.
289	289	13 (g) For years subsequent to the first year after the change in
290	290	14 ownership, the public utility company shall value and report the
291	291	15 utility scale battery energy storage systems at the same valuation
292	292	16 amount entered on the public utility company's first annual report
293	293	17 under subsection (f)(2), less adjustments for depreciation made
294	294	18 according to a schedule prescribed by the department.
295	295	19 (h) The department shall:
296	296	20 (1) make changes to the annual report form necessary to
297	297	21 conform with the provisions of this section; and
298	298	22 (2) create a depreciation schedule using the previous owner's
299	299	23 cost basis for purposes of determining valuation amounts
300	300	24 under subsection (g).
301	301	25 (i) The Indiana utility regulatory commission shall include a
302	302	26 provision in an order issued under IC 8-1-2.5-5 to a public utility
303	303	27 company that:
304	304	28 (1) owns or operates one (1) or more utility scale battery
305	305	29 energy storage systems; or
306	306	30 (2) plans to own or operate one (1) or more utility scale
307	307	31 battery energy storage systems;
308	308	32 requiring the public utility company to notify the department of
309	309	33 any change in ownership of the utility scale battery energy storage
310	310	34 systems.
311	311	35 (j) Before November 1, 2026, and before November 1, 2027, the
312	312	36 department shall:
313	313	37 (1) prepare a report on the valuation of utility scale battery
314	314	38 energy storage systems and the progress of implementing this
315	315	39 section;
316	316	40 (2) submit the report to the general assembly in an electronic
317	317	41 format under IC 5-14-6; and
318	318	42 (3) present the report to the interim study committee on
319	319	2025 IN 1668—LS 7328/DI 125 8
320	320	1 energy, utilities, and telecommunications established by
321	321	2 IC 2-5-1.3-4(8).
322	322	3 SECTION 4. IC 6-1.1-8-26, AS AMENDED BY P.L.144-2023,
323	323	4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
324	324	5 JANUARY 1, 2026]: Sec. 26. (a) On or before June 1st of each year,
325	325	6 the department of local government finance shall determine the just
326	326	7 value of the property of each public utility company. Except for:
327	327	8 (1) wind power devices described in section 19.5 of this chapter;
328	328	9 (2) solar power devices described in section 19.6 of this
329	329	10 chapter;
330	330	11 (3) utility scale battery energy storage systems described in
331	331	12 section 19.7 of this chapter; and
332	332	13 (4) railcar companies;
333	333	14 the department of local government finance shall determine that just
334	334	15 value by first determining the approximate unit value of each public
335	335	16 utility company.
336	336	17 (b) The value of the distributable property of a public utility
337	337	18 company, other than a railcar company, equals the remainder of:
338	338	19 (1) the unit value of the company; minus
339	339	20 (2) the value of the company's fixed property.
340	340	21 The value of the distributable property of a railcar company equals the
341	341	22 value of all of the company's distributable property multiplied by the
342	342	23 adjustment factor provided under section 12 of this chapter.
343	343	24 (b) (c) In order to determine the unit value of a public utility
344	344	25 company, the department of local government finance may consider:
345	345	26 (1) book value;
346	346	27 (2) cost of replacement or reproduction, less depreciation;
347	347	28 (3) cost of establishing and developing the business;
348	348	29 (4) amount and market value or sales price of outstanding
349	349	30 securities;
350	350	31 (5) valuations determined by another governmental agency or
351	351	32 indicated by a judicial decision, including but not limited to
352	352	33 determinations made for rate making purposes;
353	353	34 (6) statistics and reports prepared or filed by the company;
354	354	35 (7) statistics and reports prepared by another governmental
355	355	36 agency or by a private organization if the organization is
356	356	37 considered reliable by investors and investment dealers;
357	357	38 (8) earnings capitalized at a reasonable rate; and
358	358	39 (9) any other information which the department considers
359	359	40 relevant.
360	360	41 SECTION 5. [EFFECTIVE JANUARY 1, 2026] (a) IC 6-1.1-8-19.6
361	361	42 and IC 6-1.1-8-19.7, both as added by this act, apply to assessment
362	362	2025 IN 1668—LS 7328/DI 125 9
363	363	1 dates occurring after December 31, 2025.
364	364	2 (b) IC 6-1.1-8-19.5 and IC 6-1.1-8-26, both as amended by this
365	365	3 act, apply to assessment dates occurring after December 31, 2025.
366	366	4 (c) This SECTION expires January 1, 2028.
367	367	2025 IN 1668—LS 7328/DI 125