Introduced Version
SENATE BILL No. 443
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1.
Synopsis: Business personal property tax. Increases the acquisition
cost threshold for the business personal property tax exemption from
$80,000 to $160,000. Phases down the minimum valuation percentage
from 30% to zero over a three year period. Provides a tax credit to all
taxpayers with real property tax liability equal to the difference in the
taxpayer's property tax liability before the enactment of the phase down
and the taxpayer's property tax liability calculated as if current law
were in effect.
Effective: January 1, 2025 (retroactive); January 1, 2026.
Freeman, Garten
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 443—LS 7450/DI 120 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.
SENATE BILL No. 443
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 6-1.1-3-7.2, AS AMENDED BY P.L.137-2022,
2 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.2. (a) This section
4 applies to assessment dates occurring after December 31, 2015.
5 (b) As used in this section, "affiliate" means an entity that
6 effectively controls or is controlled by a taxpayer or is associated with
7 a taxpayer under common ownership or control, whether by
8 shareholdings or other means.
9 (c) As used in this section, "business personal property" means
10 personal property that:
11 (1) is otherwise subject to assessment and taxation under this
12 article;
13 (2) is used in a trade or business or otherwise held, used, or
14 consumed in connection with the production of income; and
15 (3) was:
16 (A) acquired by the taxpayer in an arms length transaction
17 from an entity that is not an affiliate of the taxpayer, if the
2025 IN 443—LS 7450/DI 120 2
1 personal property has been previously used in Indiana before
2 being placed in service in the county; or
3 (B) acquired in any manner, if the personal property has never
4 been previously used in Indiana before being placed in service
5 in the county.
6 The term does not include mobile homes assessed under IC 6-1.1-7,
7 personal property held as an investment, or personal property that is
8 assessed under IC 6-1.1-8 and is owned by a public utility subject to
9 regulation by the Indiana utility regulatory commission. However, the
10 term does include the personal property of a telephone company or a
11 communications service provider if that personal property meets the
12 requirements of subdivisions (1) through (3), regardless of whether that
13 personal property is assessed under IC 6-1.1-8 and regardless of
14 whether the telephone company or communications service provider is
15 subject to regulation by the Indiana utility regulatory commission.
16 (d) Notwithstanding section 7 of this chapter, if the acquisition cost
17 of a taxpayer's total business personal property in a county is less than
18 eighty thousand dollars ($80,000) one hundred sixty thousand
19 dollars ($160,000) for that assessment date, the taxpayer's business
20 personal property in the county for that assessment date is exempt from
21 taxation.
22 (e) Subject to subsection (f), a taxpayer that is eligible for the
23 exemption under this section for an assessment date shall include the
24 following information on the taxpayer's personal property tax return:
25 (1) A declaration that the taxpayer's business personal property in
26 the county is exempt from property taxation.
27 (2) Whether the taxpayer's business personal property within the
28 county is in one (1) location or multiple locations.
29 (3) An address for the location of the property.
30 If the business personal property is in multiple locations within a
31 county, the taxpayer shall provide an address for the location where the
32 sum of acquisition costs for business personal property is greatest. If
33 two (2) or more addresses contain the greatest equivalent sum of
34 acquisition costs for business personal property within a given county,
35 the taxpayer shall choose only one (1) address to list on the return.
36 (f) Beginning after December 31, 2022, a taxpayer that has included
37 the information required under subsection (e) on the taxpayer's
38 personal property tax return to claim the exemption under this section
39 is not required to file a personal property return for the taxpayer's
40 business personal property for an assessment date that occurs after the
41 assessment date for which the information is first provided under
42 subsection (e), unless or until the taxpayer no longer qualifies for the
2025 IN 443—LS 7450/DI 120 3
1 exemption under subsection (d) for a subsequent assessment date.
2 SECTION 2. IC 6-1.1-3-22, AS AMENDED BY P.L.159-2020,
3 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) Except to the
5 extent that it conflicts with a statute and subject to subsection (f), 50
6 IAC 4.2 (as in effect January 1, 2001), which was formerly
7 incorporated by reference into this section, is reinstated as a rule.
8 (b) Tangible personal property within the scope of 50 IAC 4.2 (as
9 in effect January 1, 2001) shall be assessed on the assessment dates in
10 calendar years 2003 and thereafter in conformity with 50 IAC 4.2 (as
11 in effect January 1, 2001).
12 (c) The publisher of the Indiana Administrative Code shall publish
13 50 IAC 4.2 (as in effect January 1, 2001) in the Indiana Administrative
14 Code.
15 (d) 50 IAC 4.3 and any other rule to the extent that it conflicts with
16 this section is void.
17 (e) A reference in 50 IAC 4.2 to a governmental entity that has been
18 terminated or a statute that has been repealed or amended shall be
19 treated as a reference to its successor.
20 (f) The department of local government finance may not amend or
21 repeal the following (all as in effect January 1, 2001):
22 (1) 50 IAC 4.2-4-3(f).
23 (2) 50 IAC 4.2-4-7.
24 (3) 50 IAC 4.2-4-9.
25 (4) (3) 50 IAC 4.2-5-7.
26 (5) (4) 50 IAC 4.2-5-13.
27 (6) (5) 50 IAC 4.2-6-1.
28 (7) (6) 50 IAC 4.2-6-2.
29 (8) (7) 50 IAC 4.2-8-9.
30 However, the department of local government finance may amend
31 these rules to conform with statutory changes.
32 (g) Notwithstanding any other provision of this section, 50
33 IAC 4.2-4-6(c) is void effective July 1, 2015. The publisher of the
34 Indiana Administrative Code and the Indiana Register shall remove this
35 provision from the Indiana Administrative Code.
36 (h) Notwithstanding any other provision of this section, 50
37 IAC 4.2-4-9 is void effective January 1, 2025. Notwithstanding any
38 other provision of this section, the department of local government
39 finance may adopt rules amending 50 IAC 4.2 to reflect the
40 enactment of section 29 of this chapter.
41 SECTION 3. IC 6-1.1-3-23, AS AMENDED BY P.L.220-2011,
42 SECTION 119, IS AMENDED TO READ AS FOLLOWS
2025 IN 443—LS 7450/DI 120 4
1 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23. (a) In
2 enacting this section, the general assembly finds the following:
3 (1) The economy of northern Indiana has historically been heavily
4 dependent upon:
5 (A) the domestic steel industry, particularly the integrated steel
6 mill business, which produces steel from basic raw materials
7 through blast furnace and related operations; and
8 (B) the oil refining and petrochemical industry.
9 (2) Northern Indiana is the only area of Indiana with integrated
10 steelmaking facilities.
11 (3) During the last thirty (30) years, the domestic steel industry
12 has experienced significant financial difficulties. More than
13 one-half (1/2) of the integrated steel mills in the United States
14 were shut down or deintegrated, with the remainder requiring
15 significant investment and the addition of new processes to make
16 the facilities economically competitive with newer foreign and
17 domestic steelmaking facilities and processes.
18 (4) The United States needs to protect the capacity of the oil
19 refining and petrochemical industry. No oil refineries have been
20 built in the United States since 1976.
21 (5) Given the economic conditions affecting older integrated
22 steelmaking facilities, integrated steel mills claimed abnormal
23 obsolescence in reporting the assessed value of equipment located
24 at the integrated steelmaking facilities that began operations
25 before 1970, thereby reporting the equipment's assessed value at
26 far below thirty percent (30%) of the equipment's total cost (far
27 below the "thirty percent (30%) floor" value generally applicable
28 to equipment exhibiting only normal obsolescence under the
29 current department of local government finance rules).
30 (6) Current law existing before January 1, 2003, obligates the
31 taxpayers making abnormal obsolescence claims to pay personal
32 property taxes based only on, and permits communities to
33 determine property tax budgets and rates based only on, the
34 reported personal property assessed values until the personal
35 property appeals are resolved. Consequently, as a result of
36 abnormal obsolescence claims, the property tax base of
37 communities in northern Indiana is severely reduced for an
38 indeterminate period (if not permanently). The prospect of future
39 appeals and their attendant problems on an ongoing basis must be
40 addressed.
41 (7) A new, optional method for valuing the equipment of
42 integrated steel mills and entities that are at least fifty percent
2025 IN 443—LS 7450/DI 120 5
1 (50%) owned by an affiliate of an integrated steel mill ("related
2 entities") and the oil refining and petrochemical industry in
3 northern Indiana is needed. That optional method:
4 (A) recognizes the loss of value and difficulty in valuing
5 equipment at integrated steelmaking facilities and facilities of
6 the oil refining and petrochemical industry that commenced
7 operations decades ago and at the facilities of related entities;
8 (B) recognizes that depreciable personal property used in
9 integrated steelmaking and in oil refinery or petrochemical
10 operations and by related entities is affected by different
11 economic and market forces than depreciable personal
12 property used in other industries and certain other segments of
13 the steel industry and therefore experiences different amounts
14 of obsolescence and depreciation; and
15 (C) can be used to simply and efficiently arrive at a value
16 commensurate with that property's age, use, obsolescence, and
17 market circumstances instead of the current method and its
18 potentially contentious and lengthy appeals. Such an optional
19 method would benefit the communities where these older
20 facilities are located.
21 (8) Such an optional method would be to authorize a fifth pool in
22 the depreciation schedule for valuing the equipment of integrated
23 steel mills, related entities, and the oil refining and petrochemical
24 industry that reflects all adjustments to the value of that
25 equipment for depreciation and obsolescence, including abnormal
26 obsolescence, which precludes any taxpayer electing such a
27 method from taking any other obsolescence adjustment for the
28 equipment, and which applies only at the election of the taxpayer.
29 (9) The purpose for authorizing the Pool 5 method is to provide
30 a more simplified and efficient method for valuing the equipment
31 of integrated steel mills and the oil refining and petrochemical
32 industry that recognizes the loss of value and unusual problems
33 associated with the valuation of the equipment or facilities that
34 began operations before 1970 in those industries in northern
35 Indiana, as well as for valuing the equipment of related entities,
36 to stabilize local property tax revenue by eliminating the need for
37 abnormal obsolescence claims, and to encourage those industries
38 to continue to invest in northern Indiana, thereby contributing to
39 the economic life and well-being of communities in northern
40 Indiana, the residents of northern Indiana, and Indiana generally.
41 (10) The specific circumstances described in this section do not
42 exist throughout the rest of Indiana.
2025 IN 443—LS 7450/DI 120 6
1 (b) For purposes of this section:
2 (1) "adjusted cost" refers to the adjusted cost established in 50
3 IAC 4.2-4-4 (as in effect on January 1, 2003);
4 (2) "depreciable personal property" has the meaning set forth in
5 50 IAC 4.2-4-1 (as in effect on January 1, 2003);
6 (3) "integrated steel mill" means a person, including a subsidiary
7 of a corporation, that produces steel by processing iron ore and
8 other raw materials in a blast furnace in Indiana;
9 (4) "oil refinery/petrochemical company" means a person that
10 produces a variety of petroleum products by processing an annual
11 average of at least one hundred thousand (100,000) barrels of
12 crude oil per day;
13 (5) "permanently retired depreciable personal property" has the
14 meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,
15 2003);
16 (6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in
17 effect on January 1, 2003);
18 (7) "special integrated steel mill or oil refinery/petrochemical
19 equipment" means depreciable personal property, other than
20 special tools and permanently retired depreciable personal
21 property:
22 (A) that:
23 (i) is owned, leased, or used by an integrated steel mill or an
24 entity that is at least fifty percent (50%) owned by an
25 affiliate of an integrated steel mill; and
26 (ii) falls within Asset Class 33.4 as set forth in IRS Rev.
27 Proc. 87-56, 1987-2, C.B. 647; or
28 (B) that:
29 (i) is owned, leased, or used as an integrated part of an oil
30 refinery/petrochemical company or its affiliate; and
31 (ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS
32 Rev. Proc. 87-56, 1987-2, C.B. 647;
33 (8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as
34 in effect on January 1, 2003); and
35 (9) "year of acquisition" refers to the year of acquisition
36 determined under 50 IAC 4.2-4-6 (as in effect on January 1,
37 2003).
38 (c) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
39 IAC 4.2-4-7, a taxpayer may elect to calculate the true tax value of the
40 taxpayer's special integrated steel mill or oil refinery/petrochemical
41 equipment by multiplying the adjusted cost of that equipment by the
42 percentage set forth in the following table:
2025 IN 443—LS 7450/DI 120 7
1 Year of Acquisition Percentage
2 1 40%
3 2 56%
4 3 42%
5 4 32%
6 5 24%
7 6 18%
8 7 15%
9 8 and older 10%
10 (d) The department of local government finance shall designate the
11 table under subsection (c) as "Pool No. 5" on the business personal
12 property tax return.
13 (e) The percentage factors in the table under subsection (c)
14 automatically reflect all adjustments for depreciation and obsolescence,
15 including abnormal obsolescence, for special integrated steel mill or oil
16 refinery/petrochemical equipment. The equipment is entitled to all
17 exemptions, credits, and deductions for which it qualifies.
18 (f) The minimum valuation limitations under 50 IAC 4.2-4-9
19 section 29 of this chapter do not apply to special integrated steel mill
20 or oil refinery/petrochemical equipment valued under this section. The
21 value of the equipment is not included in the calculation of that
22 minimum valuation limitation for the taxpayer's other assessable
23 depreciable personal property in the taxing district.
24 (g) An election to value special integrated steel mill or oil
25 refinery/petrochemical equipment under this section:
26 (1) must be made by reporting the equipment under this section
27 on a business personal property tax return;
28 (2) applies to all of the taxpayer's special integrated steel mill or
29 oil refinery/petrochemical equipment located in the state (whether
30 owned or leased, or used as an integrated part of the equipment);
31 and
32 (3) is binding on the taxpayer for the assessment date for which
33 the election is made.
34 The department of local government finance shall prescribe the forms
35 to make the election beginning with the March 1, 2003, assessment
36 date. Any special integrated steel mill or oil refinery/petrochemical
37 equipment acquired by a taxpayer that has made an election under this
38 section is valued under this section.
39 (h) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
40 property that would, notwithstanding this section, be reported in a pool
41 other than Pool No. 5 is attributable to special integrated steel mill or
42 oil refinery/petrochemical equipment, the taxpayer may elect to
2025 IN 443—LS 7450/DI 120 8
1 calculate the true tax value of all of that property as special integrated
2 steel mill or oil refinery/petrochemical equipment. The true tax value
3 of property for which an election is made under this subsection is
4 calculated under subsections (c) through (g).
5 SECTION 4. IC 6-1.1-3-23.5, AS AMENDED BY P.L.236-2023,
6 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23.5. (a) For purposes of
8 this section:
9 (1) "adjusted cost" has the meaning set forth in section 23(b)(1)
10 of this chapter;
11 (2) "depreciable personal property" has the meaning set forth in
12 section 23(b)(2) of this chapter;
13 (3) "mini-mill" means a person, including a subsidiary of a
14 corporation, that produces steel using an electric arc furnace in
15 Indiana;
16 (4) "permanently retired depreciable personal property" has the
17 meaning set forth in section 23(b)(5) of this chapter;
18 (5) "pool" has the meaning set forth in section 23(b)(6) of this
19 chapter;
20 (6) "mini-mill equipment" means depreciable personal property,
21 other than special tools and permanently retired depreciable
22 personal property, that is owned, leased, or used by a mini-mill or
23 an entity that is at least fifty percent (50%) owned by an affiliate
24 of a mini-mill in the production of steel;
25 (7) "special tools" has the meaning set forth in section 23(b)(8) of
26 this chapter; and
27 (8) "year of acquisition" for purposes of applying the table in
28 section 23(c) of this chapter, has the meaning set forth in section
29 23(b)(9) of this chapter.
30 (b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
31 IAC 4.2-4-7, beginning with the January 1, 2023, assessment date, a
32 taxpayer may elect to calculate the true tax value of the taxpayer's
33 mini-mill equipment by multiplying the adjusted cost of that equipment
34 by the applicable percentage set forth in the table designated as "Pool
35 No. 5" under section 23(c) and 23(d) of this chapter.
36 (c) The percentage factors in the table under section 23(c) of this
37 chapter automatically reflect all adjustments for depreciation and
38 obsolescence, including abnormal obsolescence, for mini-mill
39 equipment. The equipment is entitled to all exemptions, credits, and
40 deductions for which it qualifies.
41 (d) The minimum valuation limitations under 50 IAC 4.2-4-9
42 section 29 of this chapter do not apply to mini-mill equipment valued
2025 IN 443—LS 7450/DI 120 9
1 under this section. The value of the equipment is not included in the
2 calculation of that minimum valuation limitation for the taxpayer's
3 other assessable depreciable personal property in the taxing district.
4 (e) An election to value mini-mill equipment under this section:
5 (1) must be made by reporting the equipment under this section
6 on a business personal property tax return;
7 (2) applies to all of the taxpayer's mini-mill equipment located in
8 the state (whether owned or leased, or used as an integrated part
9 of the equipment); and
10 (3) is binding on the taxpayer for the assessment date for which
11 the election is made.
12 The department of local government finance shall prescribe the forms
13 to make the election beginning with the January 1, 2023, assessment
14 date. Any mini-mill equipment acquired by a taxpayer that has made
15 an election under this section is valued under this section.
16 (f) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
17 property that would, notwithstanding this section, be reported in a pool
18 other than "Pool No. 5" (as designated under section 23 of this chapter)
19 is attributable to mini-mill equipment, the taxpayer may elect to
20 calculate the true tax value of all of that property as mini-mill
21 equipment. The true tax value of property for which an election is made
22 under this subsection is calculated under subsections (b) through (e).
23 SECTION 5. IC 6-1.1-3-25, AS ADDED BY P.L.238-2017,
24 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 25. (a) As used in this
26 section, "district" refers to an entrepreneur and enterprise district
27 designated under IC 5-28-15.5.
28 (b) Notwithstanding section 22(b) of this chapter and
29 IC 6-1.1-8-44(b), assessable depreciable personal property that:
30 (1) is located in a district;
31 (2) is placed in service in the district by the owner of the property
32 after the designation of the district under IC 5-28-15.5; and
33 (3) is used within the district by one (1) or more employees who
34 perform the majority of their service within the district;
35 is not subject to the valuation limitations in 50 IAC 4.2-4-9 section 29
36 of this chapter or 50 IAC 5.1-6-9. IC 6-1.1-8-45.
37 SECTION 6. IC 6-1.1-3-29 IS ADDED TO THE INDIANA CODE
38 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
39 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 29. (a) Except as
40 provided in subsection (b), the total valuation of a taxpayer's
41 assessable depreciable personal property in a single taxing district
42 may not be less than the following percentage of the adjusted cost
2025 IN 443—LS 7450/DI 120 10
1 of all the taxpayer's assessable depreciable personal property in
2 the taxing district:
3 (1) Thirty percent (30%) for assessment dates before January
4 1, 2025.
5 (2) Twenty-five percent (25%) for an assessment date after
6 December 31, 2024, and before January 1, 2026.
7 (3) Eighteen percent (18%) for an assessment date after
8 December 31, 2025, and before January 1, 2027.
9 (4) Zero percent (0%) for an assessment date after December
10 31, 2026.
11 (b) The limitation set forth in subsection (a) is to be applied
12 before any special adjustment for abnormal obsolescence. The
13 limitation does not apply to equipment not placed in service,
14 special tooling, and permanently retired depreciable personal
15 property.
16 SECTION 7. IC 6-1.1-8-44, AS AMENDED BY P.L.38-2021,
17 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 44. (a) Except to the
19 extent that it conflicts with a statute and subject to subsection (f), 50
20 IAC 5.1 (as in effect January 1, 2001), which was formerly
21 incorporated by reference into this section, is reinstated as a rule.
22 (b) Tangible personal property within the scope of 50 IAC 5.1 (as
23 in effect January 1, 2001) shall be assessed on the assessment dates in
24 calendar years 2003 and thereafter in conformity with 50 IAC 5.1 (as
25 in effect January 1, 2001).
26 (c) The publisher of the Indiana Administrative Code shall publish
27 50 IAC 5.1 (as in effect January 1, 2001) in the Indiana Administrative
28 Code.
29 (d) 50 IAC 5.2 and any other rule to the extent that it conflicts with
30 this section is void.
31 (e) A reference in 50 IAC 5.1 to a governmental entity that has been
32 terminated or a statute that has been repealed or amended shall be
33 treated as a reference to its successor.
34 (f) The department of local government finance may not amend or
35 repeal the following (all as in effect January 1, 2001):
36 (1) 50 IAC 5.1-6-6.
37 (2) 50 IAC 5.1-6-7.
38 (3) 50 IAC 5.1-6-8.
39 (4) 50 IAC 5.1-6-9.
40 (5) (4) 50 IAC 5.1-8-1.
41 (6) (5) 50 IAC 5.1-9-1.
42 (7) (6) 50 IAC 5.1-9-2.
2025 IN 443—LS 7450/DI 120 11
1 However, the department of local government finance may amend
2 these rules to reflect statutory changes.
3 (g) Notwithstanding any other provision of this section, 50
4 IAC 5.1-6-9 is void effective January 1, 2025. Notwithstanding any
5 other provision of this section, the department of local government
6 finance may adopt rules amending 50 IAC 5.1 to reflect the
7 enactment of section 45 of this chapter.
8 SECTION 8. IC 6-1.1-8-45 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
10 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 45. (a) Except as
11 provided in subsection (b), the total valuation of a taxpayer's
12 assessable depreciable personal property in a single taxing district
13 may not be less than the following percentage of the adjusted cost
14 of all the taxpayer's assessable depreciable personal property in
15 the taxing district:
16 (1) Thirty percent (30%) for assessment dates before January
17 1, 2025.
18 (2) Twenty-five percent (25%) for an assessment date after
19 December 31, 2024, and before January 1, 2026.
20 (3) Eighteen percent (18%) for an assessment date after
21 December 31, 2025, and before January 1, 2027.
22 (4) Zero percent (0%) for an assessment date after December
23 31, 2026.
24 (b) The limitation set forth in subsection (a) is to be applied
25 before any special adjustment for abnormal obsolescence. The
26 limitation does not apply to equipment not placed in service,
27 special tooling, and permanently retired depreciable personal
28 property.
29 SECTION 9. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.8-2022,
30 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4.5. (a) An applicant
32 must provide a statement of benefits to the designating body. The
33 applicant must provide the completed statement of benefits form to the
34 designating body before the hearing specified in section 2.5(c) of this
35 chapter or before the installation of the new manufacturing equipment,
36 new farm equipment, new research and development equipment, new
37 logistical distribution equipment, or new information technology
38 equipment for which the person desires to claim a deduction under this
39 chapter. The department of local government finance shall prescribe a
40 form for the statement of benefits. The statement of benefits must
41 include the following information:
42 (1) A description of the new manufacturing equipment, new farm
2025 IN 443—LS 7450/DI 120 12
1 equipment, new research and development equipment, new
2 logistical distribution equipment, or new information technology
3 equipment that the person proposes to acquire. A statement of
4 benefits for new farm equipment must describe each piece of new
5 farm equipment with sufficient detail to afford identification.
6 (2) With respect to:
7 (A) new manufacturing equipment not used to dispose of solid
8 waste or hazardous waste by converting the solid waste or
9 hazardous waste into energy or other useful products; and
10 (B) new farm equipment, new research and development
11 equipment, new logistical distribution equipment, or new
12 information technology equipment;
13 an estimate of the number of individuals who will be employed or
14 whose employment will be retained by the person as a result of
15 the installation of the new manufacturing equipment, new farm
16 equipment, new research and development equipment, new
17 logistical distribution equipment, or new information technology
18 equipment and an estimate of the annual salaries of these
19 individuals.
20 (3) An estimate of the cost of the new manufacturing equipment,
21 new farm equipment, new research and development equipment,
22 new logistical distribution equipment, or new information
23 technology equipment.
24 (4) With respect to new manufacturing equipment used to dispose
25 of solid waste or hazardous waste by converting the solid waste
26 or hazardous waste into energy or other useful products, an
27 estimate of the amount of solid waste or hazardous waste that will
28 be converted into energy or other useful products by the new
29 manufacturing equipment.
30 The statement of benefits may be incorporated in a designation
31 application. Notwithstanding any other law, a statement of benefits is
32 a public record that may be inspected and copied under IC 5-14-3-3.
33 (b) The designating body must review the statement of benefits
34 required under subsection (a). The designating body shall determine
35 whether an area should be designated an economic revitalization area
36 or whether the deduction shall be allowed, based on (and after it has
37 made) the following findings:
38 (1) Whether the estimate of the cost of the new manufacturing
39 equipment, new farm equipment, new research and development
40 equipment, new logistical distribution equipment, or new
41 information technology equipment is reasonable for equipment of
42 that type.
2025 IN 443—LS 7450/DI 120 13
1 (2) With respect to:
2 (A) new manufacturing equipment not used to dispose of solid
3 waste or hazardous waste by converting the solid waste or
4 hazardous waste into energy or other useful products; and
5 (B) new farm equipment, new research and development
6 equipment, new logistical distribution equipment, or new
7 information technology equipment;
8 whether the estimate of the number of individuals who will be
9 employed or whose employment will be retained can be
10 reasonably expected to result from the installation of the new
11 manufacturing equipment, new farm equipment, new research and
12 development equipment, new logistical distribution equipment, or
13 new information technology equipment.
14 (3) Whether the estimate of the annual salaries of those
15 individuals who will be employed or whose employment will be
16 retained can be reasonably expected to result from the proposed
17 installation of new manufacturing equipment, new farm
18 equipment, new research and development equipment, new
19 logistical distribution equipment, or new information technology
20 equipment.
21 (4) With respect to new manufacturing equipment used to dispose
22 of solid waste or hazardous waste by converting the solid waste
23 or hazardous waste into energy or other useful products, whether
24 the estimate of the amount of solid waste or hazardous waste that
25 will be converted into energy or other useful products can be
26 reasonably expected to result from the installation of the new
27 manufacturing equipment.
28 (5) Whether any other benefits about which information was
29 requested are benefits that can be reasonably expected to result
30 from the proposed installation of new manufacturing equipment,
31 new farm equipment, new research and development equipment,
32 new logistical distribution equipment, or new information
33 technology equipment.
34 (6) Whether the totality of benefits is sufficient to justify the
35 deduction.
36 The designating body may not designate an area an economic
37 revitalization area or approve the deduction unless it makes the
38 findings required by this subsection in the affirmative.
39 (c) Except as provided in subsection (f), and subject to subsection
40 (g) and section 15 of this chapter, an owner of new manufacturing
41 equipment, new farm equipment, new research and development
42 equipment, new logistical distribution equipment, or new information
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1 technology equipment whose statement of benefits is approved is
2 entitled to a deduction from the assessed value of that equipment for
3 the number of years determined by the designating body under section
4 17 or 18 of this chapter. Except as provided in subsection (d) and in
5 section 2(i)(3) of this chapter, and subject to subsection (g) and section
6 15 of this chapter, the amount of the deduction that an owner is entitled
7 to for a particular year equals the product of:
8 (1) the assessed value of the new manufacturing equipment, new
9 farm equipment, new research and development equipment, new
10 logistical distribution equipment, or new information technology
11 equipment in the year of deduction under the abatement schedule
12 established under section 17 or 18 of this chapter; multiplied by
13 (2) the percentage prescribed by the designating body under
14 section 17 or 18 of this chapter.
15 (d) With respect to new manufacturing equipment and new research
16 and development equipment installed before March 2, 2001, the
17 deduction under this section is the amount that causes the net assessed
18 value of the property after the application of the deduction under this
19 section to equal the net assessed value after the application of the
20 deduction under this section that results from computing:
21 (1) the deduction under this section as in effect on March 1, 2001;
22 and
23 (2) the assessed value of the property under 50 IAC 4.2, as in
24 effect on March 1, 2001, or, in the case of property subject to
25 IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
26 (e) The designating body shall determine the number of years the
27 deduction is allowed under section 17 or 18 of this chapter. Except as
28 provided by section 18 of this chapter, the deduction may not be
29 allowed for more than ten (10) years. This determination shall be made:
30 (1) as part of the resolution adopted under section 2.5 of this
31 chapter; or
32 (2) by resolution adopted within sixty (60) days after receiving a
33 copy of a property owner's certified deduction application from
34 the county auditor. A certified copy of the resolution shall be sent
35 to the county auditor.
36 A determination about the number of years the deduction is allowed
37 that is made under subdivision (1) is final and may not be changed by
38 following the procedure under subdivision (2).
39 (f) The owner of new manufacturing equipment that is directly used
40 to dispose of hazardous waste is not entitled to the deduction provided
41 by this section for a particular assessment year if during that
42 assessment year the owner:
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1 (1) is convicted of a criminal violation under IC 13, including
2 IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
3 (2) is subject to an order or a consent decree with respect to
4 property located in Indiana based on a violation of a federal or
5 state rule, regulation, or statute governing the treatment, storage,
6 or disposal of hazardous wastes that had a major or moderate
7 potential for harm.
8 (g) For purposes of subsection (c), the assessed value of new
9 manufacturing equipment, new farm equipment, new research and
10 development equipment, new logistical distribution equipment, or new
11 information technology equipment that is part of an owner's assessable
12 depreciable personal property in a single taxing district subject to the
13 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
14 IC 6-1.1-8-45 is the product of:
15 (1) the assessed value of the equipment determined without
16 regard to the valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29
17 or 50 IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
18 (2) the quotient of:
19 (A) the amount of the valuation limitation determined under
20 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
21 for all of the owner's depreciable personal property in the
22 taxing district; divided by
23 (B) the total true tax value of all of the owner's depreciable
24 personal property in the taxing district that is subject to the
25 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
26 IAC 5.1-6-9 IC 6-1.1-8-45 determined:
27 (i) under the depreciation schedules in the rules of the
28 department of local government finance before any
29 adjustment for abnormal obsolescence; and
30 (ii) without regard to the valuation limitation in 50
31 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
32 IC 6-1.1-8-45.
33 SECTION 10. IC 6-1.1-40-10, AS AMENDED BY
34 P.L.212-2018(ss), SECTION 16, IS AMENDED TO READ AS
35 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
36 Sec. 10. (a) The deduction under this section applies only to new
37 manufacturing equipment installed before July 1, 2018.
38 (b) Subject to subsection (e), an owner of new manufacturing
39 equipment whose statement of benefits is approved is entitled to a
40 deduction from the assessed value of that equipment for a period of ten
41 (10) years. Except as provided in subsections (c) and (d), and subject
42 to subsection (e) and section 14 of this chapter, for the first five (5)
2025 IN 443—LS 7450/DI 120 16
1 years, the amount of the deduction for new manufacturing equipment
2 that an owner is entitled to for a particular year equals the assessed
3 value of the new manufacturing equipment. Subject to subsection (e)
4 and section 14 of this chapter, for the sixth through the tenth year, the
5 amount of the deduction equals the product of:
6 (1) the assessed value of the new manufacturing equipment;
7 multiplied by
8 (2) the percentage prescribed in the following table:
9 YEAR OF DEDUCTION PERCENTAGE
10 6th 100%
11 7th 95%
12 8th 80%
13 9th 65%
14 10th 50%
15 11th and thereafter 0%
16 (c) A deduction under this section is not allowed in the first year the
17 deduction is claimed for new manufacturing equipment to the extent
18 that it would cause the assessed value of all of the personal property of
19 the owner in the taxing district in which the equipment is located to be
20 less than the assessed value of all of the personal property of the owner
21 in that taxing district in the immediately preceding year.
22 (d) If a deduction is not fully allowed under subsection (c) in the
23 first year the deduction is claimed, then the percentages specified in
24 subsection (b) apply in the subsequent years to the amount of deduction
25 that was allowed in the first year.
26 (e) For purposes of subsection (b), the assessed value of new
27 manufacturing equipment that is part of an owner's assessable
28 depreciable personal property in a single taxing district subject to the
29 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
30 IC 6-1.1-8-45 is the product of:
31 (1) the assessed value of the equipment (excluding equipment
32 installed after June 30, 2018) determined without regard to the
33 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
34 IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
35 (2) the quotient of:
36 (A) the amount of the valuation limitation determined under
37 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
38 for all of the owner's depreciable personal property in the
39 taxing district; divided by
40 (B) the total true tax value of all of the owner's depreciable
41 personal property in the taxing district that is subject to the
42 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
2025 IN 443—LS 7450/DI 120 17
1 IAC 5.1-6-9 IC 6-1.1-8-45 determined:
2 (i) under the depreciation schedules in the rules of the
3 department of local government finance before any
4 adjustment for abnormal obsolescence; and
5 (ii) without regard to the valuation limitation in 50
6 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
7 IC 6-1.1-8-45.
8 SECTION 11. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
10 JANUARY 1, 2026]:
11 Chapter 51. Property Tax Liability Credit
12 Sec. 1. This section applies to taxes first due and payable
13 beginning after December 31, 2025.
14 Sec. 2. As used in this chapter, "property tax liability" means
15 liability for the tax imposed on tangible property under this article
16 determined after application of all credits and deductions under
17 this article, but does not include any interest or penalty imposed
18 under this article.
19 Sec. 3. As used in this chapter, "qualified taxpayer" refers to all
20 taxpayers with real property tax liability in a calendar year. The
21 term does not include taxpayers who have personal property tax
22 liability in the calendar year.
23 Sec. 4. A credit shall be applied against a qualified taxpayer's
24 property tax liability as set forth in this chapter.
25 Sec. 5. The amount of the credit is equal to the result of:
26 (1) the property tax liability first due and payable on the
27 qualified taxpayer's property for the calendar year; minus
28 (2) the property tax liability imposed on the qualified
29 taxpayer's property for the calendar year, but calculated as
30 if IC 6-1.1-3-29 and IC 6-1.1-8-45 were not added in 2025, and
31 applying IC 6-1.1-3 and IC 6-1.1-8 as in effect on December
32 31, 2024.
33 Sec. 6. The auditor of each county shall apply the credit under
34 this chapter to the determination of the property tax liability for all
35 qualified taxpayers.
36 SECTION 12. [EFFECTIVE JANUARY 1, 2025
37 (RETROACTIVE)] (a) IC 6-1.1-3-7.2, as amended by this act,
38 applies to assessment dates occurring after December 31, 2024.
39 (b) This SECTION expires January 1, 2027.
40 SECTION 13. [EFFECTIVE JANUARY 1, 2025
41 (RETROACTIVE)] IC 6-1.1-3-29 and IC 6-1.1-8-45, both as added
42 by this act, apply as follows:
2025 IN 443—LS 7450/DI 120 18
1 (1) The thirty percent (30%) floor in IC 6-1.1-3-29(a)(1) and
2 IC 6-1.1-8-45(a)(1) applies to assessments occurring in 2024
3 or before, for taxes first due and payable in 2025 or before.
4 (2) The twenty-five percent (25%) floor in IC 6-1.1-3-29(a)(2)
5 and IC 6-1.1-8-45(a)(2) applies to assessments made in 2025,
6 for property taxes first due and payable in 2026.
7 (3) The eighteen percent (18%) floor in IC 6-1.1-3-29(a)(3)
8 and IC 6-1.1-8-45(a)(3) applies to assessments made in 2026,
9 for property taxes first due and payable in 2027.
10 (4) The zero percent (0%) floor in IC 6-1.1-3-29(a)(4) and
11 IC 6-1.1-8-45(a)(4) applies to assessments occurring in 2027
12 and after, for taxes first due and payable in 2028 and after.
13 SECTION 14. An emergency is declared for this act.
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