SB 215 – Redevelopment Projects
Authored by Sen. Travis Holdman (R-Markle)

Provides that the expiration date of an allocation area established by the redevelopment commission of a qualified city for the purpose of financing a mixed use development project only may not be more than 50 years. Authorizes a qualified city to enter into leases financed with incremental tax revenue from the allocation area for a term not to exceed 50 years for the purpose of financing a mixed use development project. Defines “qualified city” and “mixed use development project” for purposes of these provisions. Provides, that if in any state fiscal year, the Indiana Economic Development Corporation (IEDC) determines that it will award an amount of tax credits under $1,000,000, the IEDC must first receive state budget committee review. Establishes the regional economic acceleration and development initiative (READI) fund to provide grants and loans to support economic development and regional economic acceleration and development. Provides that the IEDC administers the fund. Provides that the IEDC board may review applications for grants and loans from the fund. Allows the board to form a strategic review committee. Requires the IEDC to establish a policy for the regional economic acceleration and development initiative. Makes an appropriation.

Chamber position: Support

The latest: On February 16, the Senate Tax and Fiscal Policy Committee passed SB 215 unanimously (13-0).

Indiana Chamber action/commentary: The Chamber testified in support of this bill that would invest in regional economic development. Senate Bill 215 seeks to invest $150 million (over two years) in quality of place investments that will spur economic growth throughout the state via regional collaboration, planning and cooperation.

Senate Bill 215 introduces the “READI” fund to signify that Indiana is “ready” to move forward out of the COVID-19 pandemic. Chairman Holdman’s amendment was drafted to create a “shiny object” that emphasizes the importance of regional economic development.

Senator Holdman noted that going into the pandemic Indiana had “$2 billion in the bank, far exceeding what any of our neighboring states had.” He continued by noting that now we must move “faster” down the path of economic growth, and the best way to do so is by supporting our regional economic development partnerships that are structured to accomplish this mission effectively and efficiently.

The Chamber testified in support of the bill, stating the General Assembly must be “bold and creative” in developing a regional economic development growth strategy. We reiterated the chairman’s point that the best path forward for the state “as a whole” is to tackle many of our eminent challenges (e.g. health, workforce, innovation and housing) at the local level – and through community collaboration and strategic cooperation.|

SB 213 – Certified Technology Parks
Authored by Sen. Travis Holdman (R-Markle)

Specifies additional information that a certified technology park is required to provide to the Indiana Economic Development Corporation in the course of a review. Provides that if a park has reached the limit on deposits and maintains its certification the park shall become a Level 2 park. Increases, from $100,000 to $250,000, the annual additional incremental income tax deposit amount that a park captures once it has reached its limit on deposits. Clarifies the calculation of the additional incremental income tax deposit amount in the year in which a park reaches its limit on deposits. Provides that when the corporation certifies a Level 2 park the corporation shall make a determination of whether the park shall continue to be designated as a Level 2 park.

Chamber position: Support

The latest: This week the bill was passed unanimously by the Senate Tax and Fiscal Policy Committee (13-0).

Indiana Chamber action/commentary: On Tuesday, the Chamber once again testified in support of a bill that would give Certified Technology Parks (CTPs) additional funding. When we began this effort several years ago, we – along with our stakeholder contingent – set a goal of up to $500,000 for additional tax increment capture to support innovation and entrepreneurship throughout the state.

With this bill, beginning July 1, 2020, CTPs that have reached the initial $5 million cap may capture up to $100,000 per year. Due to these extraordinary times, we are not seeking an increase in law to $500,000 per year. Instead, we are pursuing an increase from a maximum of $100,000 per year to a maximum of $250,000 per year (without adding another lifetime cap or automatically resetting the tax base).

CTPs are as important as ever to our state’s future because they serve to diversify our local economies. This legislation would provide meaningful support to aid small business innovators, which have been battered by the recent economic shock.

We estimate this legislation’s fiscal impact to the state over the next two years at a maximum of $1.6 million. The CTP program is uniquely positioned to support many of the state’s most important economic goals: jobs, wages, innovation, workforce development and small business growth. Best of all, the CTP program is performance-based. If CTPs aren’t meeting their obligations to their community or to the state, they cannot obtain additional increment.

In testimony, the Chamber also made the following point to the committee: That CTPs should not be confused with “co-working spaces” or other business incubators. CTPs are unique in that they are a creation of a local “redevelopment commission” that identified as an unutilized or under-utilized location within the community and transformed it into a place that supports high-tech entrepreneurial activity. 

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