House Bill 1405 – Taxation of Data Centers
Authored by Rep. Ed Soliday (R-Valparaiso)
Co-Authored by Reps. Jim Pressel (R-Rolling Prairie) and Matt Lehman (R-Berne)

Provides that a county or municipal fiscal body may designate an area in which a property tax exemption will be provided for certain enterprise information technology equipment. Provides a state sales and use tax exemption for the purchase of certain data center equipment that is located in a data center that meets certain investment requirements. Expires the exemption June 30, 2026. Full details.

Chamber Position: Support

The Latest: The House Ways and Means Committee received extensive testimony from a large coalition of supporters. The committee did not vote yet on the bill.

Chamber Action/Commentary: Site locators indicate that Indiana fails to even be considered for large data center projects due to the more competitive environment created by so many other states that offer more substantial and comprehensive incentives than Indiana. While data centers are not high-volume employers themselves, they make huge capital investments that entice their customers and affiliated service providers to locate nearby. The very presence of a data center often attracts high technology companies in need of their services. Indiana should be competing for these developments.

The Chamber attended the hearing and conveyed support for the bill to the committee. We are also encouraging House Ways and Means Committee Co-Chairs, Rep. Tim Brown (R-Crawfordsville) and Rep. Todd Huston (R-Fishers), to schedule the bill for a vote in an upcoming hearing.

Resource: Adam H. Berry at (317) 264-6892 or email: