indiana legislative update

2014 Edition  |  Table of Contents
 

Economic Development and Tax Credits
By Tim C. Cook, JD

Affected Code Section: Ind. Code § 2-5-3.2-1 to 2-5-3.2-1 (addition)
Effective Date: July 1, 2014
Enacted By: House Bill 1020
Explanation: Directs the Commission on State Tax and Financing Policy to conduct a detailed review of all tax incentives, defined broadly to include exemptions, deductions, preferential rates, or other tax benefits that reduces a tax burden. Requires incentive programs to be reviewed at least once every five years from the effective date to 2023.
 

Affected Code Section: Ind. Code § 4-4-35-1 to 4-4-35-9 (addition)
Effective Date: May 1, 2014
Enacted By: House Bill 1332
Explanation: Establishes the Office of Small Business and Entrepreneurship which is led by a director appointed by the lieutenant governor. The office is charged with operating the Indiana Small Business Development Center, maintaining a network of resources to inform small businesses to benefit from state and federal programs, employing a small business ombudsman, supporting the development of small business in Indiana, administering the Young Entrepreneur Program, and developing and administering programs to support the growth of small business. The small business ombudsman is charged many duties, including working with state agencies to permit flexibility and the ability to grant common sense exemptions for first time offenders, seeking to consolidate forms and eliminate duplicated paperwork, coordinating with the Office of Management and Budget to perform cost-benefit analyses, review outdated information requests from state agencies to small businesses, and attempting to resolve compliance matters between a state agency and a small business. Directs that state agencies are to cooperate with the small business ombudsman.
 

Affected Code Section: Ind. Code § 4-4-36-1 to 4-4-35-13 (addition)
Effective Date: May 1, 2014
Enacted By: House Bill 1332
Explanation: Incorporates statutory language regarding the Young Entrepreneur Program to reflect the change in the program’s administration from the Indiana Economic Development Corporation to the Office of Small Business and Entrepreneurship.
 

Affected Code Section: Ind. Code § 5-28-6-8 (addition)
Effective Date: Upon passage
Enacted By: House Bill 1035
Explanation: Requires the Indiana Economic Development Corporation to conduct an in-depth assessment of Indiana’s regional metropolitan areas and report on area-specific needs and potential initiatives to create economic growth. Requires a report to be submitted to the Indiana Economic Development Corporation board by Oct. 1, 2014.
 

Affected Code Section: Ind. Code § 5-28-7-6 (addition)
Effective Date: July 1, 2014
Enacted By: House Bill 1003
Explanation: Authorizes the Indiana Economic Development Corporation to award a Skills Enhancement Fund (SEF) grant to schools engaged in a cooperative training arrangement with businesses.
 

Affected Code Section: Ind. Code § 5-28-17-5 (repeal)
Effective Date: May 1, 2014
Enacted By: House Bill 1332
Explanation: Repeals language relating to the small business ombudsman as an employee of the Indiana Economic Development Corporation. The small business ombudsman will be employed by the Office of Small Business and Entrepreneurship going forward.
 

Affected Code Section: Ind. Code § 5-28-35 (repeal)
Effective Date: May 1, 2014
Enacted By: House Bill 1332
Explanation: Repeals language regarding the young entrepreneurs program to reflect the change in the program’s administration from the Indiana Economic Development Corporation to the Office of Small Business and Entrepreneurship.
 

Affected Code Section: Ind. Code § 6-3.1-13-13 & 6-3.1-13-14 (amendment)
Effective Date: July 1, 2014
Enacted By: House Bill 1003
Explanation: Authorizes the Indiana Economic Development Corporation to award Economic Development for a Growing Economy (EDGE) tax credits to employers that enter into a cooperative training arrangement with a school for the training of students in high demand jobs requiring an industry certification.
 

Affected Code Section: Ind. Code § 6-3.1-13-15.7 (addition)
Effective Date: July 1, 2014
Enacted By: House Bill 1003
Explanation: Provides that EDGE tax credits for cooperative training arrangements between employers and schools can be applied for after June 30, 2014 for tax years from 2015 to 2018. Permits the Indiana Economic Development Corporation to establish additional eligibility conditions and to consult with the Indiana Career Council on eligibility and performance conditions. Caps the amount of credits that may be awarded for employers entering into cooperative training arrangements to $2,500,000 per year.
 

Affected Code Section: Ind. Code § 6-3.1-13-19.7 (addition)
Effective Date: July 1, 2014
Enacted By: House Bill 1003
Explanation: Requires an EDGE tax credit agreement for employers entering into cooperative training arrangements to contain certain terms, including a requirement to maintain the cooperative training arrangement for two years after the last amount of tax credit was claimed. Limits the credit to employees whose course of study included a cooperative training arrangement between the employer and the school.
 

Affected Code Section: Ind. Code § 36-7-14-2.5 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Prohibits a redevelopment commission from entering into any obligation payable from public funds without approval from the legislative body of the unit except for certain transactions involving the acquisition of real property. Requires the approving ordinance from the legislative body to specify the maximum amount of the obligation, maximum interest rates, and the maximum term of the obligation.
 

Affected Code Section: Ind. Code § 36-7-14-3 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Provides a legislative body with the authority to review a redevelopment commission or department of redevelopment’s annual budget. Subjects the redevelopment commission or department of redevelopment to audit by the state board of accounts, the public meetings law, and the public records law.
 

Affected Code Section: Ind. Code § 36-7-14-8 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Appoints the fiscal officer of the unit establishing a redevelopment commission as the treasurer of the redevelopment commission. Requires the treasurer to report annually to the fiscal body of the unit.
 

Affected Code Section: Ind. Code § 36-7-14-12.2 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Removes the power of eminent domain from the listed authority of a redevelopment commission. Restricts the power of a redevelopment commission to provide financial assistance to individuals and families to lease or purchase residential units to the purchase or lease of multiple unit residential structures.
 

Affected Code Section: Ind. Code § 36-7-14-12.4 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Prohibits a redevelopment commission, department of redevelopment, or any other entity established or controlled by a redevelopment commission or department of redevelopment from owning or leasing a single family residential unit after June 30, 2014.
 

Affected Code Section: Ind. Code § 36-7-14-13 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Subjects a redevelopment commission or department of redevelopment to the same rules that apply to other commissions or departments of the unit.
 

Affected Code Section: Ind. Code § 36-7-14-15 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires the legislative body of the unit establishing the redevelopment commission to approve any amendment of a resolution or plan for an existing redevelopment project area.
 

Affected Code Section: Ind. Code § 36-7-14-19, 36-7-14-20, & 36-7-14-22.5 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Makes various changes restricting redevelopment commissions from entering into agreements to acquire real property. Grants the power to enter into agreements to acquire real property to the legislative body of the unit establishing the redevelopment commission.
 

Affected Code Section: Ind. Code § 36-7-14-25.1, 36-7-14-25.2, 36-7-14-43, & 36-7-14.5-22 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Makes various changes removing power from redevelopment commissions to enter issue or determine terms of bonds and granting the power to the legislative body of the unit establishing the redevelopment commission.
 

Affected Code Section: Ind. Code § 36-7-14-27 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval from the legislative body of the unit establishing the redevelopment commission before a redevelopment commission can levy a special tax on property within the redevelopment district.
 

Affected Code Section: Ind. Code § 36-7-14-27.5 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval from the legislative body of the unit establishing the redevelopment commission before a redevelopment commission can borrow money.
 

Affected Code Section: Ind. Code § 36-7-14-32.5 (repeal)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Removes language granting the power of eminent domain by a redevelopment commission.
 

Affected Code Section: Ind. Code § 36-7-14-39 & 36-7-14-46 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires a specific finding of fact that the adoption of the Tax Increment Financing (TIF) allocation provision will result in new property taxes in the area that would not have been generated but for the adoption of the TIF allocation provision. Requires a redevelopment commission to submit a determination of excess assessed value to the legislative body of the unit establishing the redevelopment commission.
 

Affected Code Section: Ind. Code § 36-7-14-48 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires a redevelopment commission to submit a determination of excess assessed value to the legislative body of the unit establishing the commission.
 

Affected Code Section: Ind. Code § 36-7-14.5-7 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Subjects a redevelopment authority to audit by the State Board of Accounts, the public meetings law, and the public records law.
 

Affected Code Section: Ind. Code § 36-7-14.5-9 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires the secretary-treasurer of a redevelopment authority to report annually to the fiscal body of the legislative unit that established the redevelopment authority.
 

Affected Code Section: Ind. Code § 36-7-14.5-11 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Prohibits a redevelopment authority or any other entity established or controlled by a redevelopment authority from owning or leasing a single family residential unit after June 30, 2014.
 

Affected Code Section: Ind. Code § 36-7-14.5-13, 36-7-14.5-14, & 36-7-14.5-18 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval of the fiscal body of the unit establishing the redevelopment commission before the commission can lease or sell improvements to a redevelopment authority.
 

Affected Code Section: Ind. Code § 36-7-14.5-19 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval from the legislative body of the unit establishing the redevelopment authority before it can issue bonds.
 

Affected Code Section: Ind. Code § 36-7-14.5-21 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval from the fiscal body of the unit establishing the redevelopment authority before it can enter into a trust indenture.
 

Affected Code Section: Ind. Code § 36-7-15.1-3.5 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Makes the controller of a consolidated city the fiscal officer of the Marion County Redevelopment Commission. Grants powers to the controller to carry out his/her duties.
 

Affected Code Section: Ind. Code § 36-7-15.1-4.2 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Subjects the Marion County Redevelopment Commission to audit by the State Board of Accounts, the public meetings law, the public records law, and the public works law.
 

Affected Code Section: Ind. Code § 36-7-15.1-4.3 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Prohibits the Marion County Redevelopment Commission, Marion County Department of Redevelopment, or any other entity established or controlled by a redevelopment commission or department of redevelopment from owning or leasing a single family residential unit after June 30, 2014.
 

Affected Code Section: Ind. Code § 36-7-15.1-12 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires prior approval from the legislative body of the unit establishing the Marion County Redevelopment Authority before it can enter into an agreement to make payments for a property purchase for a term exceeding five years.
 

Affected Code Section: Ind. Code § 36-7-15.1-26 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires a specific finding of fact that the adoption of the TIF allocation provision will result in new property taxes in the area that would not have been generated but for the adoption of the TIF allocation provision. Requires the Marion County Redevelopment Commission to submit a determination of excess assessed value to the legislative body of the unit that established it.
 

Affected Code Section: Ind. Code § 36-7-15.3-7 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Prohibits the Marion County Redevelopment Authority or any other entity established or controlled by a redevelopment authority from owning or leasing a single family residential unit after June 30, 2014.
 

Affected Code Section: Ind. Code § 36-7-15.3-8.5 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Subjects the Marion County Redevelopment Authority to audit by the state board of accounts, the public meetings law, the public records law, and the public works law.
 

Affected Code Section: Public Law 118-2014, Section 39
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Requires the Commission on State Tax and Financing Policy to study redevelopment commissions, authorities, and departments. Requires the Department of Local Government Finance to prepare a report on redevelopment commissions.
 

Affected Code Section: Public Law 118-2014, Section 40
Effective Date: July 1, 2014
Enacted By: Senate Bill 118
Explanation: Directs that events which occur after June 30, 2014, will receive application of the new law. The new law applies to obligations entered into after June 30, bonds with a resolution adopted after June 30, leases with a public hearing after June 30, and warrants issued after June 30.

 

Connect with Tim 
Tim C. Cook is the partner-in-charge of Katz, Sapper & Miller's State and Local Tax Practice as well as KSM Economic Development, part of the Katz, Sapper & Miller Network. Tim supervises and coordinates all state and local tax consulting services, including business incentives and site selection services, multi-state taxes, unclaimed property, and controversy services.