Introduced Version
HOUSE BILL No. 1668
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-8.
Synopsis: Assessment of wind, solar, and battery devices. Requires a
new public utility company owner of a wind power device to report, in
years after the first year of ownership, the valuation of the wind power
device at the same valuation amount entered in the public utility
company's first annual report after the change in ownership, less
adjustments for depreciation according to a schedule prescribed by the
department of local government finance (department). Requires a new
public utility company owner of a solar power device or a utility scale
battery energy storage system to report the valuation of the solar power
device or utility scale battery energy storage system at the same
valuation amount that the previous owner last valued the solar power
device or utility scale battery energy storage system prior to the change
in ownership, less adjustments for depreciation according to a schedule
prescribed by the department. Requires the department to create
depreciation schedules. Requires the department to prepare and present
reports to the interim study committee on energy, utilities, and
telecommunications on: (1) the valuation of the devices and systems;
and (2) the department's progress in implementing the bill's provisions.
Effective: January 1, 2026.
Culp
January 21, 2025, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2025 IN 1668—LS 7328/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1668
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-8-19.5, AS ADDED BY P.L.144-2023,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2026]: Sec. 19.5. (a) This section applies to: a public
4 utility company that:
5 (1) a public utility company that owns or operates one (1) or
6 more wind power devices as a result of a change in ownership;
7 and
8 (2) is filing the public utility company's first annual report as the
9 new owner of the wind power devices following a assessment
10 dates following the change in ownership of the wind power
11 devices.
12 (b) This section does not apply to a public utility company that owns
13 or operates one (1) or more wind power devices and that has signed or
14 countersigned an economic development agreement, or another
15 financial agreement, that is entered into:
16 (1) with the county in which the public utility company's wind
17 power devices are located; and
2025 IN 1668—LS 7328/DI 125 2
1 (2) for the purpose of:
2 (A) repowering the wind power devices; or
3 (B) upgrading the technology used in the wind power devices;
4 before a sale or transfer of the wind power devices.
5 (c) (b) As used in this section, "annual report" means the statement
6 of value and description of property described in section 19 of this
7 chapter.
8 (d) (c) As used in this section, "change of ownership", with respect
9 to one (1) or more wind power devices owned by a public utility
10 company, means any:
11 (1) transaction or series of related transactions (whether as a
12 result of a tender offer, merger, consolidation, reorganization,
13 acquisition, sale or transfer of equity securities, proxy, power of
14 attorney, or otherwise) that results in, or occurs in connection
15 with, another public utility company acquiring beneficial
16 ownership, directly or indirectly, of a majority of the then issued
17 and outstanding voting securities or combined voting rights of the
18 public utility company; or
19 (2) sale, lease, exchange, conveyance, transfer, distribution, or
20 other disposition whether:
21 (A) for cash, securities, equity interests, or other consideration;
22 or
23 (B) made in connection with any liquidation, dissolution, or
24 winding up of the affairs of the public utility company;
25 of substantially all of the public utility company's wind power
26 devices to another public utility company.
27 (e) (d) As used in this section, "wind power device" means a device,
28 including a windmill or a wind turbine, that is designed to use the
29 kinetic energy of moving air to provide mechanical energy or to
30 produce electricity.
31 (f) (e) Notwithstanding any other law or rule adopted by the
32 department, a public utility company described in subsection (a) shall:
33 (1) value the wind power devices at the same valuation amount
34 that the previous owner valued the wind power devices prior to
35 the change in ownership on the previous owner's last annual
36 report;
37 (2) enter that valuation amount on the public utility company's
38 first annual report following the change in ownership; and
39 (3) notify the department in a timely manner of the change in
40 ownership;
41 if the valuation amount that the public utility company would otherwise
42 enter on the report, in accordance with this chapter and the rules
2025 IN 1668—LS 7328/DI 125 3
1 prescribed by the department, is lower than the valuation amount that
2 the previous owner valued the wind power devices before the change
3 in ownership on the previous owner's last annual report.
4 (g) (f) For years subsequent to the first year after the change in
5 ownership, the public utility company shall calculate value and report
6 the valuation of the wind power devices on the annual report in
7 accordance with this chapter and the rules prescribed by the
8 department. However, in determining the just value of the property of
9 the public utility company in any year subsequent to the first year after
10 the change in ownership, the department shall not consider valuations
11 determined by another governmental agency, notwithstanding section
12 26(b)(5) of this chapter. at the same valuation amount entered on
13 the public utility company's first annual report under subsection
14 (e)(2), less adjustments for depreciation made according to a
15 schedule prescribed by the department.
16 (h) (g) The department shall:
17 (1) make changes to the annual report form necessary to conform
18 with the provisions of this section; and
19 (2) create a depreciation schedule using the previous owner's
20 cost basis for purposes of determining valuation amounts
21 under subsection (f).
22 (i) (h) The Indiana utility regulatory commission shall include a
23 provision in an order issued under IC 8-1-2.5-5 to a public utility
24 company that:
25 (1) owns or operates one (1) or more wind power devices; or
26 (2) plans to own or operate one (1) or more wind power devices;
27 requiring the public utility company to notify the department of any
28 change in ownership of the wind power devices.
29 (j) (i) Before November 1, 2024, 2026, and before November 1,
30 2025, 2027, the department shall prepare, submit in an electronic
31 format under IC 5-14-6, and present to the interim study committee on
32 energy, utilities, and telecommunications established by
33 IC 2-5-1.3-4(8) a report on the valuation of wind power devices and the
34 progress of implementing this section.
35 SECTION 2. IC 6-1.1-8-19.6 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JANUARY 1, 2026]: Sec. 19.6. (a) This section applies
38 to:
39 (1) a public utility company that owns or operates one (1) or
40 more solar power devices as a result of a change in
41 ownership; and
42 (2) assessment dates following the change in ownership of the
2025 IN 1668—LS 7328/DI 125 4
1 solar power devices.
2 (b) As used in this section, "annual report" means the statement
3 of value and description of property described in section 19 of this
4 chapter.
5 (c) As used in this section, "change of ownership", with respect
6 to one (1) or more solar power devices owned by a public utility
7 company, means any:
8 (1) transaction or series of related transactions (whether as a
9 result of a tender offer, merger, consolidation, reorganization,
10 acquisition, sale or transfer of equity securities, proxy, power
11 of attorney, or otherwise) that results in, or occurs in
12 connection with, another public utility company acquiring
13 beneficial ownership, directly or indirectly, of a majority of
14 the then issued and outstanding voting securities or combined
15 voting rights of the public utility company; or
16 (2) sale, lease, exchange, conveyance, transfer, distribution, or
17 other disposition whether:
18 (A) for cash, securities, equity interests, or other
19 consideration; or
20 (B) made in connection with any liquidation, dissolution, or
21 winding up of the affairs of the public utility company;
22 of substantially all of the public utility company's solar power
23 devices to another public utility company.
24 (d) As used in this section, "solar power device" means a device,
25 such as a solar thermal, a photovoltaic, or other solar energy
26 system, that is designed to use the radiant light or heat from the
27 sun to produce electricity.
28 (e) Following a change of ownership, the public utility company
29 that is the new owner of the solar power devices shall notify the
30 department in a timely manner of the change in ownership.
31 (f) Notwithstanding any other law or rule adopted by the
32 department, if the valuation amount that a public utility company
33 would otherwise enter on its first annual report following a change
34 in ownership, in accordance with this chapter and the rules
35 prescribed by the department, is lower than the valuation amount
36 that the previous owner valued the solar power devices before the
37 change in ownership on the previous owner's last annual report,
38 the public utility company shall:
39 (1) value the solar power devices at a valuation amount that
40 is equal to, or greater than, the valuation amount that the
41 previous owner valued the solar power devices prior to the
42 change in ownership on the previous owner's last annual
2025 IN 1668—LS 7328/DI 125 5
1 report; and
2 (2) enter that valuation amount on the public utility
3 company's first annual report following the change in
4 ownership.
5 (g) For years subsequent to the first year after the change in
6 ownership, the public utility company shall value and report the
7 solar power devices at the same valuation amount entered on the
8 public utility company's first annual report under subsection (f)(2),
9 less adjustments for depreciation made according to a schedule
10 prescribed by the department.
11 (h) The department shall:
12 (1) make changes to the annual report form necessary to
13 conform with the provisions of this section; and
14 (2) create a depreciation schedule using the previous owner's
15 cost basis for purposes of determining valuation amounts
16 under subsection (g).
17 (i) The Indiana utility regulatory commission shall include a
18 provision in an order issued under IC 8-1-2.5-5 to a public utility
19 company that:
20 (1) owns or operates one (1) or more solar power devices; or
21 (2) plans to own or operate one (1) or more solar power
22 devices;
23 requiring the public utility company to notify the department of
24 any change in ownership of the solar power devices.
25 (j) Before November 1, 2026, and before November 1, 2027, the
26 department shall:
27 (1) prepare a report on the valuation of solar power devices
28 and the progress of implementing this section;
29 (2) submit the report to the general assembly in an electronic
30 format under IC 5-14-6; and
31 (3) present the report to the interim study committee on
32 energy, utilities, and telecommunications established by
33 IC 2-5-1.3-4(8).
34 SECTION 3. IC 6-1.1-8-19.7 IS ADDED TO THE INDIANA
35 CODE AS A NEW SECTION TO READ AS FOLLOWS
36 [EFFECTIVE JANUARY 1, 2026]: Sec. 19.7. (a) This section applies
37 to:
38 (1) a public utility company that owns or operates one (1) or
39 more utility scale battery energy storage systems as a result
40 of a change in ownership; and
41 (2) assessment dates following the change in ownership of the
42 utility scale battery energy storage systems.
2025 IN 1668—LS 7328/DI 125 6
1 (b) As used in this section, "annual report" means the statement
2 of value and description of property described in section 19 of this
3 chapter.
4 (c) As used in this section, "change of ownership", with respect
5 to one (1) or more utility scale battery energy storage systems
6 owned by a public utility company, means any:
7 (1) transaction or series of related transactions (whether as a
8 result of a tender offer, merger, consolidation, reorganization,
9 acquisition, sale or transfer of equity securities, proxy, power
10 of attorney, or otherwise) that results in, or occurs in
11 connection with, another public utility company acquiring
12 beneficial ownership, directly or indirectly, of a majority of
13 the then issued and outstanding voting securities or combined
14 voting rights of the public utility company; or
15 (2) sale, lease, exchange, conveyance, transfer, distribution, or
16 other disposition whether:
17 (A) for cash, securities, equity interests, or other
18 consideration; or
19 (B) made in connection with any liquidation, dissolution, or
20 winding up of the affairs of the public utility company;
21 of substantially all of the public utility company's utility scale
22 battery energy storage systems to another public utility
23 company.
24 (d) As used in this section, "utility scale battery energy storage
25 system" means a system capable of storing and releasing greater
26 than 1MW of electrical energy for a minimum of one (1) hour
27 utilizing an AC inverter and DC storage, or equipment which
28 receives, stores, and delivers energy using batteries, compressed
29 air, pumped hydropower, hydrogen storage (including hydrolysis),
30 thermal energy storage, regenerative fuel cells, flywheels,
31 capacitors, and superconducting magnets, but does not include
32 foundations or property used to directly or indirectly connect the
33 AC inverter or DC storage of such system to electrical energy
34 production equipment or the customer's meter.
35 (e) Following a change of ownership, the public utility company
36 that is the new owner of the utility scale battery energy storage
37 systems shall notify the department in a timely manner of the
38 change in ownership.
39 (f) Notwithstanding any other law or rule adopted by the
40 department, if the valuation amount that a public utility company
41 would otherwise enter on its first annual report following a change
42 in ownership, in accordance with this chapter and the rules
2025 IN 1668—LS 7328/DI 125 7
1 prescribed by the department, is lower than the valuation amount
2 that the previous owner valued the utility scale battery energy
3 storage system before the change in ownership on the previous
4 owner's last annual report, the public utility company shall:
5 (1) value the utility scale battery energy storage systems at a
6 valuation amount that is equal to, or greater than, the
7 valuation amount that the previous owner valued the utility
8 scale battery energy storage systems prior to the change in
9 ownership on the previous owner's last annual report; and
10 (2) enter that valuation amount on the public utility
11 company's first annual report following the change in
12 ownership.
13 (g) For years subsequent to the first year after the change in
14 ownership, the public utility company shall value and report the
15 utility scale battery energy storage systems at the same valuation
16 amount entered on the public utility company's first annual report
17 under subsection (f)(2), less adjustments for depreciation made
18 according to a schedule prescribed by the department.
19 (h) The department shall:
20 (1) make changes to the annual report form necessary to
21 conform with the provisions of this section; and
22 (2) create a depreciation schedule using the previous owner's
23 cost basis for purposes of determining valuation amounts
24 under subsection (g).
25 (i) The Indiana utility regulatory commission shall include a
26 provision in an order issued under IC 8-1-2.5-5 to a public utility
27 company that:
28 (1) owns or operates one (1) or more utility scale battery
29 energy storage systems; or
30 (2) plans to own or operate one (1) or more utility scale
31 battery energy storage systems;
32 requiring the public utility company to notify the department of
33 any change in ownership of the utility scale battery energy storage
34 systems.
35 (j) Before November 1, 2026, and before November 1, 2027, the
36 department shall:
37 (1) prepare a report on the valuation of utility scale battery
38 energy storage systems and the progress of implementing this
39 section;
40 (2) submit the report to the general assembly in an electronic
41 format under IC 5-14-6; and
42 (3) present the report to the interim study committee on
2025 IN 1668—LS 7328/DI 125 8
1 energy, utilities, and telecommunications established by
2 IC 2-5-1.3-4(8).
3 SECTION 4. IC 6-1.1-8-26, AS AMENDED BY P.L.144-2023,
4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JANUARY 1, 2026]: Sec. 26. (a) On or before June 1st of each year,
6 the department of local government finance shall determine the just
7 value of the property of each public utility company. Except for:
8 (1) wind power devices described in section 19.5 of this chapter;
9 (2) solar power devices described in section 19.6 of this
10 chapter;
11 (3) utility scale battery energy storage systems described in
12 section 19.7 of this chapter; and
13 (4) railcar companies;
14 the department of local government finance shall determine that just
15 value by first determining the approximate unit value of each public
16 utility company.
17 (b) The value of the distributable property of a public utility
18 company, other than a railcar company, equals the remainder of:
19 (1) the unit value of the company; minus
20 (2) the value of the company's fixed property.
21 The value of the distributable property of a railcar company equals the
22 value of all of the company's distributable property multiplied by the
23 adjustment factor provided under section 12 of this chapter.
24 (b) (c) In order to determine the unit value of a public utility
25 company, the department of local government finance may consider:
26 (1) book value;
27 (2) cost of replacement or reproduction, less depreciation;
28 (3) cost of establishing and developing the business;
29 (4) amount and market value or sales price of outstanding
30 securities;
31 (5) valuations determined by another governmental agency or
32 indicated by a judicial decision, including but not limited to
33 determinations made for rate making purposes;
34 (6) statistics and reports prepared or filed by the company;
35 (7) statistics and reports prepared by another governmental
36 agency or by a private organization if the organization is
37 considered reliable by investors and investment dealers;
38 (8) earnings capitalized at a reasonable rate; and
39 (9) any other information which the department considers
40 relevant.
41 SECTION 5. [EFFECTIVE JANUARY 1, 2026] (a) IC 6-1.1-8-19.6
42 and IC 6-1.1-8-19.7, both as added by this act, apply to assessment
2025 IN 1668—LS 7328/DI 125 9
1 dates occurring after December 31, 2025.
2 (b) IC 6-1.1-8-19.5 and IC 6-1.1-8-26, both as amended by this
3 act, apply to assessment dates occurring after December 31, 2025.
4 (c) This SECTION expires January 1, 2028.
2025 IN 1668—LS 7328/DI 125