summary
Introduced
01/21/2025
01/21/2025
In Committee
01/21/2025
01/21/2025
Crossed Over
Passed
Dead
04/24/2025
04/24/2025
Introduced Session
2025 Regular Session
Bill Summary
Small town opportunity initiative. Adds provisions concerning the awarding of redevelopment tax credits by the Indiana economic development corporation (IEDC) for projects located in counties, cities, and towns that meet specified population and project criteria. Provides for the minimum and maximum credit percentages for such a project. Specifies that a credit awarded to a taxpayer for such a project is not subject to repayment and prohibits the IEDC from including a repayment provision as part of an agreement entered into for the award of the credit. Provides that the aggregate limit of applicable tax credits that the IEDC may certify for a state fiscal year excludes the first $100,000,000 in redevelopment tax credits for projects in counties, cities, and towns meeting the criteria added by the bill. Allows a redevelopment commission (commission) in a county, city, or town for which a project meeting the criteria added by the bill has received a redevelopment tax credit to establish a program to enhance investments made for those projects in the form of a 60 year allocation area to accomplish the purposes of the program. Sets forth the procedures that a commission is required to take to establish such a program. Requires the commission to annually transfer at least 12% of the aggregate allocated tax proceeds from the allocation area to school corporations located within the allocation area.
AI Summary
This bill creates a small town opportunity initiative designed to provide economic development support for smaller communities in Indiana. It introduces new provisions for redevelopment tax credits specifically targeting projects in cities, towns, and unincorporated areas with populations under 30,000 or 75,000, respectively. The bill allows the Indiana Economic Development Corporation (IEDC) to award tax credits for qualified community projects involving historic preservation, redevelopment, or rehabilitation of real property with a total project budget of at least $15 million. Key provisions include excluding the first $100 million in redevelopment tax credits from the state's annual tax credit aggregate limit, establishing a minimum credit percentage of 20% and maximum of 30% for these projects, and prohibiting repayment requirements for credits awarded to qualified community projects. Additionally, the bill enables local redevelopment commissions to establish 60-year allocation areas for these projects and requires them to transfer at least 12% of allocated tax proceeds annually to local school corporations. The initiative aims to stimulate economic development and investment in smaller Indiana communities by providing financial incentives and flexibility for significant redevelopment projects in downtown or central community areas.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
First reading: referred to Committee on Ways and Means (on 01/21/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2025/bills/house/1576/details |
| BillText | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1576/HB1576.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1576/fiscal-notes/HB1576.01.INTR.FN001.pdf |
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