summary
Introduced
01/08/2026
01/08/2026
In Committee
01/08/2026
01/08/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Redevelopment tax credits. Provides that $50,000,000 of the $300,000,000 of the Indiana economic development corporation's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that the purpose of the initiative is to undertake qualified community projects within local government units that have a project budget of at least $15,000,000 per project to do the following: (1) Advance historic preservation. (2) Redevelop or rehabilitate distressed buildings or underutilized property. (3) Redevelop or rehabilitate sites where distressed buildings once stood. Allows a redevelopment tax credit for: (1) a for-profit taxpayer undertaking a qualified community project under the initiative equal to 20% of the taxpayer's cost of the project; and (2) a nonprofit taxpayer undertaking a qualified community project under the initiative equal to 30% of the taxpayer's cost of the project. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Provides for certain items that are included in a nonprofit taxpayer's qualified investment.
AI Summary
This bill establishes the "small town opportunity initiative" to fund qualified community projects in local government units, dedicating $50 million annually from the Indiana Economic Development Corporation's (IEDC) total tax credit allocation for this purpose. These projects, which must have a budget of at least $15 million, aim to advance historic preservation, redevelop or rehabilitate distressed or underutilized properties, or revitalize sites where buildings once stood, specifically within downtown areas of smaller cities and towns or unincorporated areas serving as community focal points. The bill allows for redevelopment tax credits for businesses undertaking these projects, offering a 20% credit for for-profit entities and a 30% credit for nonprofit entities based on their project costs, with no repayment obligation for these initiative projects. Important terms include "downtown area," defined as a central business district or a traditional retail and communal focal point within a neighborhood, and "nonprofit taxpayer," referring to a tax-exempt organization focused on community revitalization with local leadership. The initiative is set to be administered by the IEDC and will be in effect until December 31, 2032.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Representative Goss-Reaves added as coauthor (on 01/13/2026)
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/2026/bills/house/1397/details |
| BillText | https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1397/HB1397.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1397/fiscal-notes/HB1397.01.INTR.FN001.pdf |
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