HB 1225

                                                           Introduced Version
          HOUSE BILL No. 1225
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-7-32.
Synopsis: Certified technology parks. Provides that if a Level 2
certified technology park (park): (1) has reached the limit of deposits
for a Level 2 park; (2) maintains its certification; and (3) is located
within a qualified military base enhancement area; the park shall
become a Level 3 park upon reaching its Level 2 deposit limit.
Provides that a Level 3 park may receive an additional annual
incremental income tax deposit of up to $250,000.
Effective: July 1, 2026.
                            Lindauer
   January 5, 2026, read first time and referred to Committee on Ways and Means.
2026  IN 1225—LS 6310/DI 134
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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                   HOUSE BILL No. 1225
    A BILL FOR AN ACT to amend the Indiana Code concerning local
 government.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 36-7-32-8.5, AS AMENDED BY P.L.154-2020,
2 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 8.5. As used in this chapter, "income tax
4 incremental amount" means the following:
5      (1) Except as provided in subdivision (2), the remainder of:
6(A) the total amount of state adjusted gross income taxes and
7local income taxes paid by employees employed in the
8territory comprising the certified technology park with respect
9to wages and salary earned for work in the territory comprising
10the certified technology park for a particular state fiscal year;
11minus
12(B) the sum of the:
13(i) income tax base period amount as defined in section 8 of
14this chapter; and
15(ii) tax credits awarded by the Indiana economic
16development corporation under IC 6-3.1-13 to businesses
17operating in a certified technology park as the result of
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1wages earned for work in the certified technology park for
2the state fiscal year;
3      as determined by the department of state revenue.
4      (2) In the case of a certified technology park for which the amount
5      limit under section 22(c), or 22(d), or 22(e) of this chapter has
6      been exceeded, the remainder of:
7(A) the total amount of state adjusted gross income taxes and
8local income taxes paid by employees employed in the
9territory comprising the certified technology park with respect
10to wages and salary earned for work in the territory comprising
11the certified technology park for a particular state fiscal year;
12minus
13(B) the sum of the:
14(i) income tax base period amount as defined in section 8 of
15this chapter; and
16(ii) tax credits awarded by the Indiana economic
17development corporation under IC 6-3.1-13 to businesses
18operating in a certified technology park as the result of
19wages earned for work in the certified technology park for
20the state fiscal year;
21      as determined by the department of state revenue.
22    SECTION 2. IC 36-7-32-22, AS AMENDED BY P.L.145-2025,
23 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2026]: Sec. 22. (a) The treasurer of state shall establish an
25 incremental tax financing fund for each certified technology park
26 designated under this chapter. The fund shall be administered by the
27 treasurer of state. Money in the fund does not revert to the state general
28 fund at the end of a state fiscal year.
29    (b) Subject to subsection (c), the following amounts shall be
30 deposited during each state fiscal year in the incremental tax financing
31 fund established for a certified technology park under subsection (a):
32      (1) The aggregate amount of state gross retail and use taxes that
33      are remitted under IC 6-2.5 by businesses operating in the
34      certified technology park, until the amount of state gross retail
35      and use taxes deposited equals the gross retail incremental
36      amount for the certified technology park.
37      (2) Except as provided in subdivision (3), the aggregate amount
38      of the following taxes paid by employees employed in the
39      certified technology park with respect to wages earned for work
40      in the certified technology park, until the amount deposited equals
41      the income tax incremental amount as defined in section 8.5(1) of
42      this chapter:
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1(A) The adjusted gross income tax.
2(B) The local income tax (IC 6-3.6).
3(3) In the case of a certified technology park to which subsection
4(e) applies, the amount determined under subsection (e), if any.
5    (c) Except as provided in subsections (d), and (e), and (f), not more
6 than a total of five million dollars ($5,000,000) may be deposited in a
7 particular incremental tax financing fund for a certified technology
8 park over the life of the certified technology park.
9    (d) Except as provided in subsection (e), subsections (e) and (f), in
10 the case of a certified technology park that is operating under a written
11 agreement entered into by two (2) or more redevelopment
12 commissions, and subject to section 26(b)(4) of this chapter:
13(1) not more than a total of five million dollars ($5,000,000) may
14be deposited over the life of the certified technology park in the
15incremental tax financing fund of each redevelopment
16commission participating in the operation of the certified
17technology park; and
18(2) the total amount that may be deposited in all incremental tax
19financing funds, over the life of the certified technology park, in
20aggregate, may not exceed the result of:
21(A) five million dollars ($5,000,000); multiplied by
22(B) the number of redevelopment commissions that have
23entered into a written agreement for the operation of the
24certified technology park.
25    (e) If a certified technology park has reached the limit on deposits
26 under subsection (c) or (d) and maintains its certification under section
27 11(c) of this chapter, the certified technology park shall become a
28 Level 2 certified technology park and an additional annual deposit
29 amount shall be deposited in the incremental tax financing fund for the
30 certified technology park equal to the following:
31(1) For a certified technology park to which subsection (c)
32applies, the lesser of:
33(A) the income tax incremental amount as defined in section
348.5(2) of this chapter; or
35(B) two hundred fifty thousand dollars ($250,000).
36(2) For a certified technology park to which subsection (d)
37applies, the lesser of:
38(A) the aggregate income tax incremental amounts as defined
39in section 8.5(2) of this chapter attributable to each
40redevelopment commission that has entered into a written
41agreement for the operation of the certified technology park;
42or
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1(B) two hundred fifty thousand dollars ($250,000) multiplied
2by the number of redevelopment commissions that have
3entered into a written agreement for the operation of the
4certified technology park.
5(3) The following apply to deposits under this subsection:
6(A) If a certified technology park reached its limit on deposits
7based on a state fiscal year ending before July 1, 2020, the
8certified technology park shall receive deposits based on the
9income tax incremental amount as defined in section 8.5(2) of
10this chapter for each state fiscal year ending after June 30,
112019.
12(B) If a certified technology park reached its limit on deposits
13based on a state fiscal year ending after June 30, 2020, the
14certified technology park shall receive deposits based on the
15income tax incremental amount as defined in section 8.5(2) of
16this chapter for the state fiscal year in which it reached its limit
17on deposits under subsection (c) or (d) and each state fiscal
18year thereafter.
19(C) If a certified technology park is permitted to receive
20deposits under this subsection during the state fiscal year in
21which it reached its limit on deposits under subsection (c) or
22(d), the income tax incremental amount for purposes of
23subdivision (1)(A) or (1)(B) for that state fiscal year shall be
24reduced by an amount equal to:
25(i) the deposit amount for the state fiscal year under
26subsection (b) required to reach the limit on deposits under
27subsection (c) or (d); minus
28(ii) the gross retail incremental amount determined under
29section 6.5 of this chapter;
30but not less than zero (0).
31     (f) This subsection applies to a certified technology park that is
32 located within a qualified military base enhancement area under
33 IC 36-7-34. If a certified technology park has reached the limit on
34 deposits under subsection (e) and maintains its certification under
35 section 11(c) of this chapter, the certified technology park shall
36 become a Level 3 certified technology park and an additional
37 annual deposit amount shall be deposited in the incremental tax
38 financing fund for the certified technology park equal to the lesser
39 of:
40(1) the aggregate income tax incremental amounts as defined
41in section 8.5(2) of this chapter attributable to each
42redevelopment commission that has entered into a written
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1agreement for the operation of the certified technology park;
2or
3(2) two hundred fifty thousand dollars ($250,000) multiplied
4by the number of redevelopment commissions that have
5entered into a written agreement for the operation of the
6certified technology park.
7    (f) (g) This subsection applies to a Level 2 or Level 3 certified
8 technology park designated in subsection (e) or (f). When the office
9 recertifies a certified technology park as required under section 11 of
10 this chapter, the office shall make a determination of whether the
11 certified technology park shall continue to be designated as a Level 2
12 or Level 3 certified technology park.
13    (g) (h) On or before the twentieth day of each month, all amounts
14 held in the incremental tax financing fund established for a certified
15 technology park shall be distributed to the redevelopment commission
16 for deposit in the certified technology park fund established under
17 section 23 of this chapter.
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