Senate Bill 361 (Economic Development), authored by Sen. Ryan Mishler (R-Bremen), was held in the Senate Appropriations Committee on Thursday. Mishler, also the committee chair,  stated that he would be working with Secretary of Commerce Brad Chambers on an amendment to alleviate concerns raised by numerous witnesses about sections in the bill establishing “innovation development districts” – regional development areas of the state from which incremental tax increases will be collected by the Indiana Economic Development Corporation (IEDC) for other economic development projects.

The Chamber testified in support of SB 361 and highlighted two features of the bill: (1) establishing a remote worker program administered by the Indiana Destination Development Corporation (IDDC) and (2) modifications to existing tax credit programs that help employers.

This is the second session that a remote worker incentive program has been a Chamber priority. I explained to the committee that remote workers who move to Indiana are purely incremental to the state’s economy as they bring new jobs with them, they are a “net add” for Indiana’s talent pool and are new consumers who buy goods and services from local businesses. Most importantly, the investment to attract these workers can be mathematically justified as giving the state a positive return on investment.

Senate Bill 361 also proposes several changes to IEDC’s most in-demand incentives to better support the economy of the future; e.g., removing the tax credit caps on the Hoosier Business Investment (HBI), Headquarters Relocation Tax Credit (HQRTC) and Redevelopment Tax Credit (RTC), and instead adding a comprehensive, $600 million “aggregate cap” to encompass Economic Development for Growing Economy (EDGE), HBI, HQRTC, RTC and the Community Revitalization Enhancement District (CRED).

Furthermore, SB 361 makes several key changes to the RTC, including increasing the repayment cap from $7 million to $20 million, removing the tiered award structure in favor of a flat 30% rate and allowing an exemption from repayment for certain major projects.

These changes combined, and SB 361 as a whole, expand IEDC’s ability to invest in transformational projects, bolster the state’s attractiveness for business and improve the state’s ability to market itself as a place people should consider when looking to relocate themselves and/or their families.

Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com