HB 1369

                                                           Introduced Version
          HOUSE BILL No. 1369
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 36-7-32.5-15.
Synopsis: Various property tax matters. Expires various property tax
exemptions allowed in current law. Provides that certain property tax
abatements may not be granted after December 31, 2030. Authorizes
a county fiscal body to adopt an ordinance that exempts certain
homesteads owned by an individual who is at least 65 years of age from
property taxation. Makes corresponding changes.
Effective: July 1, 2026; January 1, 2027.
                                Lucas
   January 8, 2026, read first time and referred to Committee on Ways and Means.
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                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1369
    A BILL FOR AN ACT to amend the Indiana Code concerning
 taxation.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 6-1.1-10-6 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 6. (a) Property which
3 is owned by a domestic corporation of this state is exempt from
4 property taxation if:
5      (1) the corporation owns a water system or waterworks;
6      (2) the corporation is, pursuant to a contract, supplying its entire
7      output of water at wholesale rates to a city or town of this state;
8      and
9      (3) the city or town which receives the water owns at least
10      ninety-five percent (95%) of the corporation's capital stock.
11    (b) For purposes of this section, stock is preferred stock and not
12 capital stock if:
13      (1) fixed dividends are payable to the stock owner at a rate not to
14      exceed six percent (6%) per year; and
15      (2) the stock owner has no further right to participate in the profits
16      of the corporation.
17    (c) This section applies only to property taxes imposed for an
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1 assessment date before January 1, 2027.
2     (d) This section expires January 1, 2028.
3     SECTION 2. IC 6-1.1-10-7 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 7. (a) Property is
5 exempt from property taxation if it is owned by a non-profit corporation
6 which is engaged in the sale and distribution of water. However, this
7 exemption only applies if the corporation is operated on a not-for-profit
8 basis.
9     (b) This section applies only to property taxes imposed for an
10 assessment date before January 1, 2027.
11     (c) This section expires January 1, 2028.
12     SECTION 3. IC 6-1.1-10-8 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 8. (a) Property is
14 exempt from property taxation if it is owned by a non-profit corporation
15 which is engaged in a sewage disposal service within a rural area of
16 this state. However, this exemption only applies if the corporation is
17 operated on a not-for-profit basis.
18     (b) This section applies only to property taxes imposed for an
19 assessment date before January 1, 2027.
20     (c) This section expires January 1, 2028.
21     SECTION 4. IC 6-1.1-10-9 IS AMENDED TO READ AS
22 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 9. (a) For purposes of
23 this section, "industrial waste control facility" means personal property
24 which is:
25(1) included either as a part of or an adjunct to a privately owned
26manufacturing or industrial plant or coal mining operation; and
27(2) used predominantly to:
28(A) prevent, control, reduce, or eliminate pollution of a stream
29or a public body of water located within or adjoining this state
30by treating, pretreating, stabilizing, isolating, collecting,
31holding, controlling, or disposing of waste or contaminants
32generated by the plant; or
33(B) meet state or federal reclamation standards for a coal
34mining operation.
35 The term includes personal property that is under construction or in the
36 process of installation and that will be used for the purposes described
37 in this subsection when placed in service. The term also includes spare
38 parts held exclusively for installation in or as part of personal property
39 that qualifies for the exemption under this section.
40     (b) An industrial waste control facility is exempt from property
41 taxation if it is not used in the production of property for sale.
42     (c) This section applies only to property taxes imposed for an
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1 assessment date before January 1, 2027.
2     (d) This section expires January 1, 2028.
3     SECTION 5. IC 6-1.1-10-10, AS AMENDED BY P.L.100-2021,
4 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]: Sec. 10. (a) The owner of an industrial waste control
6 facility who wishes to obtain the exemption provided in section 9 of
7 this chapter shall file an exemption claim along with the owner's annual
8 personal property return. The claim shall describe and state the
9 assessed value of the property for which an exemption is claimed.
10     (b) The owner must:
11(1) provide a written statement attesting that the property claimed
12as exempt meets the requirements for the exemption under section
139 of this chapter; and
14(2) file the statement along with the owner's exemption claim and
15annual personal property return.
16     (c) The township assessor (if any) or county assessor may
17 investigate any claim and determine if the property for which the
18 exemption is claimed is being utilized as an industrial waste control
19 facility. The assessor may require additional documents from the
20 property owner to support the owner's exemption claim.
21     (d) A determination under subsection (c) concerning an exemption
22 claim remains in effect:
23(1) as long as the owner owns the property and uses the property
24as an industrial waste control facility; or
25(2) for five (5) years;
26 whichever is less. In addition, during the five (5) years after the
27 determination, the owner of the property must notify the assessor in
28 writing if any of the property on which the determination was based is
29 disposed of or removed from service as an industrial waste control
30 facility.
31     (e) The assessor may revoke a determination made under subsection
32 (c) if the assessor finds that the property is not predominantly used as
33 an industrial waste control facility.
34     (f) The township or county assessor shall allow or deny in whole or
35 in part each exemption claim.
36     (g) The assessor shall reduce the assessed value of the owner's
37 personal property for the year for which an exemption is claimed by the
38 amount of exemption allowed.
39     (h) This section applies only to property taxes imposed for an
40 assessment date before January 1, 2027.
41     (i) This section expires January 1, 2028.
42     SECTION 6. IC 6-1.1-10-11, AS AMENDED BY P.L.100-2021,
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1 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2026]: Sec. 11. (a) A determination concerning an exemption
3 claim under section 10 of this chapter may be appealed by the property
4 owner to the circuit court, superior court, or probate court of the county
5 in which the property is located. The court shall try the appeal without
6 a jury. Either the property owner or the township or county assessor
7 may appeal the court's decision in the same manner that other civil
8 cases may be appealed.
9     (b) This section applies only to property taxes imposed for an
10 assessment date before January 1, 2027.
11     (c) This section expires January 1, 2028.
12     SECTION 7. IC 6-1.1-10-12 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 12. (a) Personal
14 property is exempt from property taxation if:
15(1) it is part of a stationary or unlicensed mobile air pollution
16control system of a private manufacturing, fabricating,
17assembling, extracting, mining, processing, generating, refining,
18or other industrial facility;
19(2) it is not primarily used in the production of property for sale;
20(3) it is employed predominantly in the operation of the air
21pollution control system;
22(4) the air pollution control system is designed and used for the
23improvement of public health and welfare by the prevention or
24elimination of air contamination caused by industrial waste or
25contaminants;
26(5) a sanitary treatment or elimination service for the waste or
27contaminants is not provided by public authorities; and
28(6) it is acquired for the purpose of complying with any state,
29local, or federal environmental quality statutes, regulations, or
30standards.
31     (b) The property that is exempt under this section includes the
32 following personal property:
33(1) Personal property that is under construction or in the process
34of installation and that will be used for the purposes described in
35subsection (a) when placed in service.
36(2) Spare parts held exclusively for installation in or as part of
37personal property that qualifies for the exemption under this
38section.
39     (c) This section applies only to property taxes imposed for an
40 assessment date before January 1, 2027.
41     (d) This section expires January 1, 2028.
42     SECTION 8. IC 6-1.1-10-13, AS AMENDED BY P.L.146-2008,
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1 SECTION 105, IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2026]: Sec. 13. (a) The owner of personal
3 property which is part of a stationary or unlicensed mobile air pollution
4 control system who wishes to obtain the exemption provided in section
5 12 of this chapter shall claim the exemption on the owner's annual
6 personal property return. On the return, the owner shall describe and
7 state the assessed value of the property for which the exemption is
8 claimed.
9     (b) The township or county assessor shall:
10(1) review the exemption claim; and
11(2) allow or deny it in whole or in part.
12 In making the decision, the township or county assessor shall consider
13 the requirements stated in section 12 of this chapter.
14     (c) The township or county assessor shall reduce the assessed value
15 of the owner's personal property for the year for which the exemption
16 is claimed by the amount of exemption allowed.
17     (d) This section applies only to property taxes imposed for an
18 assessment date before January 1, 2027.
19     (e) This section expires January 1, 2028.
20     SECTION 9. IC 6-1.1-10-14, AS AMENDED BY P.L.146-2008,
21 SECTION 106, IS AMENDED TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2026]: Sec. 14. (a) The action taken by a
23 township or county assessor on an exemption claim filed under section
24 10 or 13 of this chapter shall be treated as an assessment of personal
25 property. Thus, the assessor's action is subject to all the provisions of
26 this article pertaining to notice, review, or appeal of personal property
27 assessments.
28     (b) This section applies only to property taxes imposed for an
29 assessment date before January 1, 2027.
30     (c) This section expires January 1, 2028.
31     SECTION 10. IC 6-1.1-10-15, AS AMENDED BY P.L.104-2022,
32 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2026]: Sec. 15. (a) The acquisition and improvement of land
34 for use by the public as an airport and the maintenance of commercial
35 passenger aircraft is a municipal purpose regardless of whether the
36 airport or maintenance facility is owned or operated by a municipality.
37 The owner of any airport located in this state, who holds a valid and
38 current public airport certificate issued by the Indiana department of
39 transportation, may claim an exemption for only so much of the land as
40 is reasonably necessary to and used for public airport purposes. A
41 person maintaining commercial passenger aircraft in a county having
42 a population of:
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1(1) more than two hundred fifty thousand (250,000) and less than
2three hundred thousand (300,000); or
3(2) more than three hundred fifty thousand (350,000) and less
4than four hundred thousand (400,000);
5 may claim an exemption for commercial passenger aircraft not subject
6 to the aircraft excise tax under IC 6-6-6.5 that is being assessed under
7 this article, if it is located in the county only for the purposes of
8 maintenance.
9     (b) The exemption provided by this section is noncumulative and
10 applies only to property that would not otherwise be exempt. Nothing
11 contained in this section applies to or affects any other tax exemption
12 provided by law.
13     (c) As used in this section, "land used for public airport purposes"
14 includes the following:
15(1) That part of airport land used for the taking off or landing of
16aircraft, taxiways, runway and taxiway lighting, access roads, auto
17and aircraft parking areas, and all buildings providing basic
18facilities for the traveling public.
19(2) Real property owned by the airport owner and used for airport
20operation and maintenance purposes, which includes the
21following property:
22(A) Leased property that:
23(i) is used for agricultural purposes; and
24(ii) is located within the area that federal law and regulations
25of the Federal Aviation Administration restrict to activities
26and purposes compatible with normal airport operations.
27(B) Runway protection zones.
28(C) Avigation easements.
29(D) Safety and transition areas, as specified in IC 8-21-10
30concerning the regulation of tall structures and 14 CFR Part 77
31concerning the safe, efficient use and preservation of the
32navigable airspace.
33(E) Land purchased using funds that include grant money
34provided by the Federal Aviation Administration or the
35Indiana department of transportation.
36(3) Real property used in providing for the shelter, storage, or care
37of aircraft, including hangars.
38(4) Housing for weather and signaling equipment, navigational
39aids, radios, or other electronic equipment.
40 The term does not include land areas used solely for purposes unrelated
41 to aviation.
42     (d) This section applies only to property taxes imposed for an
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1 assessment date before January 1, 2027.
2     (e) This section expires January 1, 2028.
3     SECTION 11. IC 6-1.1-10-15.5 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 15.5. (a) As used in this
5 section, "airport development zone" means an airport development
6 zone designated under IC 8-22-3.5-5.
7     (b) As used in this section, "allocated tax proceeds" refers to
8 property taxes allocated under IC 8-22-3.5-9.
9     (c) As used in this section, "commission" has the meaning set forth
10 in IC 8-22-3.5-2.
11     (d) As used in this section, "qualified airport development project"
12 has the meaning set forth in IC 8-22-3.5-3.
13     (e) Before a person maintaining commercial passenger aircraft that
14 is not subject to the aircraft excise tax under IC 6-6-6.5 may claim an
15 exemption from property taxation for the commercial passenger
16 aircraft, the commission must adopt a resolution authorizing the
17 exemption for the commercial passenger aircraft.
18     (f) After the commission adopts a resolution described in subsection
19 (e), a person maintaining a commercial passenger aircraft that is not
20 subject to the aircraft excise tax under IC 6-6-6.5 may claim an
21 exemption from property taxation for the commercial passenger aircraft
22 if the following conditions exist when the commission adopts the
23 resolution:
24(1) The person is:
25(A) a tenant or subtenant of any portion of the qualified airport
26development project; and
27(B) a current user of all or any portion of the qualified airport
28development project.
29(2) For purposes of maintenance, the aircraft will be located in the
30airport development zone.
31(3) If bonds have been issued, either:
32(A) the pledge of allocated tax proceeds to the payment of any
33bonds issued under IC 8-22-3-18.1 to finance any portion of
34the costs of the qualified airport development project has been
35discharged; or
36(B) any bonds to which allocated tax proceeds were pledged
37have been paid in full in accordance with the documents under
38which the bonds were issued.
39If this subdivision applies, the person may not claim the
40exemption for a period longer than the original term of the bonds.
41     (g) This section applies only to property taxes imposed for an
42 assessment date before January 1, 2027.
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1     (h) This section expires January 1, 2028.
2     SECTION 12. IC 6-1.1-10-16, AS AMENDED BY P.L.230-2025,
3 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JANUARY 1, 2027]: Sec. 16. (a) All or part of a building is exempt
5 from property taxation if it is owned, occupied, and used by a person
6 for kindergarten through grade 12 educational or literary, scientific,
7 religious or charitable purposes.
8     (b) A building is exempt from property taxation if it is owned,
9 occupied, and used by a town, city, township, or county for
10 kindergarten through grade 12 educational literary, scientific,
11 fraternal, or charitable purposes.
12     (c) A tract of land, including the campus and athletic grounds of an
13 a kindergarten through grade 12 educational institution, is exempt
14 from property taxation if:
15(1) a building that is exempt under subsection (a) or (b) is situated
16on it; or
17(2) a parking lot or structure that serves a building referred to in
18subdivision (1) is situated on it. or
19(3) the tract:
20(A) is owned by a nonprofit entity established for the purpose
21of retaining and preserving land and water for their natural
22characteristics;
23(B) does not exceed five hundred (500) acres; and
24(C) is not used by the nonprofit entity to make a profit.
25     (d) A tract of land is exempt from property taxation if:
26(1) it is purchased for the purpose of erecting a building that is to
27be owned, occupied, and used in such a manner that the building
28will be exempt under subsection (a) or (b); and
29(2) not more than four (4) years after the property is purchased,
30and for each year after the four (4) year period, the owner
31demonstrates substantial progress and active pursuit towards the
32erection of the intended building and use of the tract for the
33exempt purpose. To establish substantial progress and active
34pursuit under this subdivision, the owner must prove the existence
35of factors such as the following:
36(A) Organization of and activity by a building committee or
37other oversight group.
38(B) Completion and filing of building plans with the
39appropriate local government authority.
40(C) Cash reserves dedicated to the project of a sufficient
41amount to lead a reasonable individual to believe the actual
42construction can and will begin within four (4) years.
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1(D) The breaking of ground and the beginning of actual
2construction.
3(E) Any other factor that would lead a reasonable individual to
4believe that construction of the building is an active plan and
5that the building is capable of being completed within eight (8)
6years considering the circumstances of the owner.
7 If the owner of the property sells, leases, or otherwise transfers a tract
8 of land that is exempt under this subsection, the owner is liable for the
9 property taxes that were not imposed upon the tract of land during the
10 period beginning January 1 of the fourth year following the purchase
11 of the property and ending on December 31 of the year of the sale,
12 lease, or transfer. The county auditor of the county in which the tract
13 of land is located may establish an installment plan for the repayment
14 of taxes due under this subsection. The plan established by the county
15 auditor may allow the repayment of the taxes over a period of years
16 equal to the number of years for which property taxes must be repaid
17 under this subsection.
18     (e) Personal property is exempt from property taxation if it is owned
19 and used in such a manner that it would be exempt under subsection (a)
20 or (b) if it were a building.
21     (f) A hospital's property that is exempt from property taxation under
22 subsection (a), (b), or (e) shall remain exempt from property taxation
23 even if the property is used in part to furnish goods or services to
24 another hospital whose property qualifies for exemption under this
25 section.
26     (g) Property owned by a shared hospital services organization that
27 is exempt from federal income taxation under Section 501(c)(3) or
28 501(e) of the Internal Revenue Code is exempt from property taxation
29 if it is owned, occupied, and used exclusively to furnish goods or
30 services to a hospital whose property is exempt from property taxation
31 under subsection (a), (b), or (e).
32     (h) This section does not exempt from property tax an office or a
33 practice of a physician or group of physicians that is owned by a
34 hospital licensed under IC 16-21-2 or other property that is not
35 substantially related to or supportive of the inpatient facility of the
36 hospital unless the office, practice, or other property:
37(1) provides or supports the provision of charity care (as defined
38in IC 16-18-2-52.5), including providing funds or other financial
39support for health care services for individuals who are indigent
40(as defined in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
41(2) provides or supports the provision of community benefits (as
42defined in IC 16-21-9-1), including research, education, or
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1government sponsored indigent health care (as defined in
2IC 16-21-9-2).
3 However, participation in the Medicaid or Medicare program alone
4 does not entitle an office, practice, or other property described in this
5 subsection to an exemption under this section.
6     (i) A tract of land or a tract of land plus all or part of a structure on
7 the land is exempt from property taxation if:
8(1) the tract is acquired for the purpose of erecting, renovating, or
9improving a single family residential structure that is to be given
10away or sold:
11(A) in a charitable manner;
12(B) by a nonprofit organization; and
13(C) to low income individuals who will:
14(i) use the land as a family residence; and
15(ii) not have an exemption for the land under this section;
16(2) the tract does not exceed three (3) acres; and
17(3) the tract of land or the tract of land plus all or part of a
18structure on the land is not used for profit while exempt under this
19section.
20     (j) An exemption under subsection (i) terminates when the property
21 is conveyed by the nonprofit organization to another owner.
22     (k) When property that is exempt in any year under subsection (i) is
23 conveyed to another owner, the nonprofit organization receiving the
24 exemption must file a certified statement with the auditor of the county,
25 notifying the auditor of the change not later than sixty (60) days after
26 the date of the conveyance. The county auditor shall immediately
27 forward a copy of the certified statement to the county assessor. A
28 nonprofit organization that fails to file the statement required by this
29 subsection is liable for the amount of property taxes due on the
30 property conveyed if it were not for the exemption allowed under this
31 chapter.
32     (l) If property is granted an exemption in any year under subsection
33 (i) and the owner:
34(1) fails to transfer the tangible property within eight (8) years
35after the assessment date for which the exemption is initially
36granted; or
37(2) transfers the tangible property to a person who:
38(A) is not a low income individual; or
39(B) does not use the transferred property as a residence for at
40least one (1) year after the property is transferred;
41 the person receiving the exemption shall notify the county recorder and
42 the county auditor of the county in which the property is located not
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1 later than sixty (60) days after the event described in subdivision (1) or
2 (2) occurs. The county auditor shall immediately inform the county
3 assessor of a notification received under this subsection.
4     (m) If subsection (l)(1) or (l)(2) applies, the owner shall pay, not
5 later than the date that the next installment of property taxes is due, an
6 amount equal to the sum of the following:
7(1) The total property taxes that, if it were not for the exemption
8under subsection (i), would have been levied on the property in
9each year in which an exemption was allowed.
10(2) Interest on the property taxes at the rate of ten percent (10%)
11per year.
12     (n) The liability imposed by subsection (m) is a lien upon the
13 property receiving the exemption under subsection (i). An amount
14 collected under subsection (m) shall be collected as an excess levy. If
15 the amount is not paid, it shall be collected in the same manner that
16 delinquent taxes on real property are collected.
17     (o) (g) Property referred to in this section shall be assessed to the
18 extent required under IC 6-1.1-11-9.
19     (p) This subsection applies to assessment dates occurring before
20 January 1, 2026. A for-profit provider of early childhood education
21 services to children who are at least four (4) but less than six (6) years
22 of age on the annual assessment date may receive the exemption
23 provided by this section for property used for educational purposes
24 only if all the requirements of section 46 of this chapter are satisfied.
25 A for-profit provider of early childhood education services that
26 provides the services only to children younger than four (4) years of
27 age may not receive the exemption provided by this section for
28 property used for educational purposes.
29     (q) This subsection applies to assessment dates occurring after
30 December 31, 2025. Property used by a for-profit provider of early
31 childhood education services to children who are less than six (6) years
32 of age on the annual assessment date may receive the exemption
33 provided by this section for property used for educational purposes
34 only if all the requirements of section 46 of this chapter are satisfied.
35     (r) This subsection applies only to property taxes that are first due
36 and payable in calendar years 2025 and 2026. All or part of a building
37 is deemed to serve a charitable purpose and is exempt from property
38 taxation if it is owned by a nonprofit entity that is:
39(1) registered as a continuing care retirement community under
40IC 23-2-4 and charges an entry fee of not more than five hundred
41thousand dollars ($500,000) per unit;
42(2) defined as a small house health facility under
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1      IC 16-18-2-331.9;
2      (3) licensed as a health care or residential care facility under
3      IC 16-28; or
4      (4) licensed under IC 31-27 and designated as a qualified
5      residential treatment provider that provides services under a
6      contract with the department of child services.
7 This subsection expires January 1, 2027.
8    SECTION 13. IC 6-1.1-10-16.5, AS AMENDED BY P.L.104-2022,
9 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2026]: Sec. 16.5. (a) This section applies to real property
11 located in either of the following:
12      (1) A county having a population of more than twenty thousand
13      (20,000) and less than twenty thousand four hundred (20,400).
14      (2) A county having a population of more than twenty-four
15      thousand six hundred (24,600) and less than twenty-five thousand
16      (25,000).
17    (b) A tract of real property owned by a nonprofit public benefit
18 corporation (as defined in IC 23-17-2-23) is exempt from property
19 taxation if all of the following apply:
20      (1) The tract is located:
21(A) under a lake or reservoir; or
22(B) adjacent to a lake or reservoir.
23      (2) The lake or reservoir under which or adjacent to which the
24      tract is located was formed by a dam or control structure owned
25      and operated by a public utility for the generation of hydroelectric
26      power.
27      (3) The public benefit corporation that owns the tract is exempt
28      from federal income taxation under Section 501(c)(3) of the
29      Internal Revenue Code and has maintained its tax exempt status
30      for the previous three (3) years.
31      (4) The public benefit corporation that owns the tract is primarily
32      engaged in active efforts to protect and enhance the environment
33      and water quality of the lake or reservoir under which or adjacent
34      to which the tract is located in order to facilitate the public
35      recreational use of the lake or reservoir.
36    (c) A tract of real property owned by a nonprofit public benefit
37 corporation described in subsection (b) is exempt from property
38 taxation if the tract is used by the public benefit corporation in the
39 public benefit corporation's efforts to enhance the environment and
40 water quality of a lake or reservoir described in subsection (b).
41    (d) This section applies only to property taxes imposed for an
42 assessment date before January 1, 2027.
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1    (e) This section expires January 1, 2028.
2    SECTION 14. IC 6-1.1-10-16.7, AS AMENDED BY P.L.74-2021,
3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2026]: Sec. 16.7. (a) Except as otherwise provided in this
5 section, for assessment dates after December 31, 2021, all or part of
6 real property is exempt from property taxation if:
7(1) the improvements on the real property were constructed,
8rehabilitated, or acquired for the purpose of providing housing to
9income eligible persons under the federal low income housing tax
10credit program under 26 U.S.C. 42;
11(2) the real property is subject to an extended use agreement
12under 26 U.S.C. 42 as administered by the Indiana housing and
13community development authority; and
14(3) the owner of the property has entered into an agreement to
15make payments in lieu of taxes under IC 36-1-8-14.2 (before its
16expiration), IC 36-2-6-22 (before its expiration), IC 36-3-2-11
17(before its expiration), IC 36-1-8-14.3, IC 36-2-6-23, or
18IC 36-3-2-12.
19    (b) This section may not be construed in such a way as to:
20(1) alter the terms of an agreement with the holders of any
21outstanding notes, bonds, or other obligations of an issuing body;
22(2) authorize the issuing body to alter the terms of an agreement
23described in subdivision (1); or
24(3) impair, or authorize the issuing body to impair, the rights and
25remedies of any creditor of the issuing body.
26    (c) This section applies only to property taxes imposed for an
27 assessment date before January 1, 2027.
28    (d) This section expires January 1, 2028.
29    SECTION 15. IC 6-1.1-10-16.8, AS ADDED BY P.L.249-2015,
30 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2026]: Sec. 16.8. (a) This section applies to a dwelling or
32 other building that is situated in a special flood hazard area as
33 designated by the Federal Emergency Management Agency in which
34 the mandatory purchase of flood insurance applies.
35    (b) The basement of a dwelling or other building described in
36 subsection (a) is exempt from property taxation if:
37(1) the basement floor level has been elevated to mitigate the risk
38of flooding; and
39(2) as a result, the basement is rendered unusable as living space.
40    (c) This section applies only to property taxes imposed for an
41 assessment date before January 1, 2027.
42    (d) This section expires January 1, 2028.
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                                    14
1     SECTION 16. IC 6-1.1-10-17 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 17. (a) Tangible
3 property is exempt from property taxation if it is owned by a
4 corporation which is organized and operated under IC 10-18-7 for the
5 purpose of perpetuating the memory of soldiers and sailors.
6     (b) This section applies only to property taxes imposed for an
7 assessment date before January 1, 2027.
8     (c) This section expires January 1, 2028.
9     SECTION 17. IC 6-1.1-10-18 IS AMENDED TO READ AS
10 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 18. (a) Tangible
11 property is exempt from property taxation if it is owned by an Indiana
12 not-for-profit corporation which is organized and operated for the
13 primary purpose of coordinating, promoting, encouraging, housing, or
14 providing financial support to activities in the field of fine arts.
15     (b) For purposes of this section, the field of fine arts includes, but
16 is not limited to, the following art forms:
17(1) classical, semi-classical, or modern instrumental and vocal
18music;
19(2) classical dance, including ballet, modern adaptations of formal
20dance, and ethnic dance;
21(3) painting, drawing, and the graphic arts;
22(4) sculpture;
23(5) architecture;
24(6) drama and musical theater.
25     (c) This section applies only to property taxes imposed for an
26 assessment date before January 1, 2027.
27     (d) This section expires January 1, 2028.
28     SECTION 18. IC 6-1.1-10-18.5, AS AMENDED BY P.L.230-2025,
29 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2026]: Sec. 18.5. (a) This section does not exempt from
31 property tax an office or a practice of a physician or group of
32 physicians that is owned by a hospital licensed under IC 16-21-2 or
33 other property that is not substantially related to or supportive of the
34 inpatient facility of the hospital unless the office, practice, or other
35 property:
36(1) provides or supports the provision of charity care (as defined
37in IC 16-18-2-52.5), including funds or other financial support for
38health care services for individuals who are indigent (as defined
39in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
40(2) provides or supports the provision of community benefits (as
41defined in IC 16-21-9-1), including research, education, or
42government sponsored indigent health care (as defined in
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                                    15
1      IC 16-21-9-2).
2 However, participation in the Medicaid or Medicare program, alone,
3 does not entitle an office, a practice, or other property described in this
4 subsection to an exemption under this section.
5    (b) Tangible property is exempt from property taxation if it is:
6      (1) owned by an Indiana nonprofit corporation; and
7      (2) used by an Indiana nonprofit corporation in the operation of
8      a hospital licensed under IC 16-21, a health facility licensed under
9      IC 16-28, a residential care facility for the aged and licensed
10      under IC 16-28, or a Christian Science home or sanatorium.
11    (c) This subsection applies only to property taxes first due and
12 payable in calendar years 2025 and 2026. Tangible property that is not
13 otherwise exempt from property taxation under subsection (b) is
14 exempt from property taxation if it is:
15      (1) owned by an Indiana nonprofit corporation; and
16      (2) used by an Indiana nonprofit corporation in the operation of
17      a continuing care retirement community under IC 23-2-4 that
18      charges an entry fee of not more than five hundred thousand
19      dollars ($500,000) per unit as described in section 16(r)(1) of this
20      chapter, a small house health facility under IC 16-18-2-331.9, or
21      a qualified residential treatment provider listed in section 16(r)(4)
22      of this chapter.
23 This subsection expires January 1, 2027.
24    (d) Property referred to in this section shall be assessed to the extent
25 required under IC 6-1.1-11-9.
26    (e) This section applies only to property taxes imposed for an
27 assessment date before January 1, 2027.
28    (f) This section expires January 1, 2028.
29    SECTION 19. IC 6-1.1-10-19 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 19. (a) Tangible
31 property is exempt from property taxation if it is:
32      (1) owned by a corporation which has established a public library
33      under Indiana law; and
34      (2) used exclusively for public library purposes.
35    (b) This section applies only to property taxes imposed for an
36 assessment date before January 1, 2027.
37    (c) This section expires January 1, 2028.
38    SECTION 20. IC 6-1.1-10-20 IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 20. (a) Tangible
40 property is exempt from property taxation if it is:
41      (1) owned by a manual labor school, a technical high school, a
42      trade school, or a college which is incorporated within this state;
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                                    16
1and
2(2) used, and in the case of real property actually occupied, for the
3purpose for which the institution is incorporated.
4 However, the institution's real property which is exempt from taxation
5 under this section may not exceed eight hundred (800) acres in any one
6 (1) county of this state.
7    (b) This section applies only to property taxes imposed for an
8 assessment date before January 1, 2027.
9    (c) This section expires January 1, 2028.
10    SECTION 21. IC 6-1.1-10-22 IS AMENDED TO READ AS
11 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 22. (a) A tract of land,
12 not exceeding one (1) acre, and the improvements situated on the land
13 are exempt from property taxation if they are:
14(1) owned by a church; and
15(2) exclusively used by the church as a dormitory for the students
16of a college or university which is located within this state.
17    (b) This section applies only to property taxes imposed for an
18 assessment date before January 1, 2027.
19    (c) This section expires January 1, 2028.
20    SECTION 22. IC 6-1.1-10-23 IS AMENDED TO READ AS
21 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 23. (a) Subject to the
22 limitations contained in subsection (b), of this section, tangible
23 property is exempt from property taxation if it is owned by a fraternal
24 beneficiary association which is incorporated, organized, or licensed
25 under the laws of this state.
26    (b) This exemption does not apply to real property unless it is
27 actually occupied and exclusively used by the association in carrying
28 out the purpose for which it was incorporated, organized, or licensed.
29    (c) This section applies only to property taxes imposed for an
30 assessment date before January 1, 2027.
31    (d) This section expires January 1, 2028.
32    SECTION 23. IC 6-1.1-10-24, AS AMENDED BY P.L.173-2011,
33 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2026]: Sec. 24. (a) Subject to the limitations contained in
35 subsection (b), of this section, the following tangible property is
36 exempt from property taxation if it is owned by a fraternity or sorority
37 that is exempt from federal income taxation under Section 501(c)(2),
38 Section 501(c)(3), or Section 501(c)(7) of the Internal Revenue Code:
39(1) A tract of land.
40(2) The improvements situated on the tract of land. and
41(3) All personal property.
42    (b) This exemption does not apply unless:
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                                     17
1(1) the fraternity or sorority is connected with or related to, and
2under the supervision of, a college, university, or other
3educational institution; or
4(2) the property is used by the fraternity or sorority to carry out its
5purpose, including as an international, national, state, or local
6headquarters or to support the administrative, executive, or other
7functions associated with the operation of a fraternity or sorority.
8    (c) For purposes of this section, "fraternity or sorority" includes:
9(1) a fraternity or sorority that is connected with or related to, and
10under the supervision of, a college, university, or other
11educational institution;
12(2) an international, national, state, or local fraternity or sorority
13that administers, coordinates, operates, or governs fraternity or
14sorority chapters, units, divisions, or other groups or group
15members that are connected with or related to, and under the
16supervision of, a college, university, or other educational
17institution;
18(3) a foundation related to a fraternity or sorority; or
19(4) a housing corporation or similar entity related to a fraternity
20or sorority.
21    (d) To qualify for the exemption allowed by this section, the
22 property may be owned, occupied, or used by more than one (1)
23 fraternity or sorority, as long as the property is used to carry out the
24 purposes of fraternities or sororities.
25    (e) This section applies only to property taxes imposed for an
26 assessment date before January 1, 2027.
27    (f) This section expires January 1, 2028.
28    SECTION 24. IC 6-1.1-10-25, AS AMENDED BY P.L.79-2014,
29 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JANUARY 1, 2027]: Sec. 25. (a) Subject to the limitations contained
31 in subsection (b) of this section, tangible property is exempt from
32 property taxation if it is owned by any of the following organizations:
33(1) The Young Men's Christian Association.
34(2) The Salvation Army, Inc.
35(3) The Knights of Columbus.
36(4) The Young Men's Hebrew Association.
37(5) The Young Women's Christian Association.
38(6) A chapter or post of Disabled American Veterans of World
39War I or II.
40(7) A chapter or post of the Veterans of Foreign Wars.
41(8) A post of the American Legion.
42(9) A post of the American War Veterans.
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                                    18
1(10) The Boy Scouts of America, one (1) or more of its
2incorporated local councils, or a bank or trust company in trust for
3the benefit of one (1) or more of its local councils.
4(11) The Girl Scouts of the U.S.A., one or more of its
5incorporated local councils, or a bank or trust company in trust for
6the benefit of one (1) or more of its local councils.
7    (b) This exemption does not apply unless the property is exclusively
8 used, and in the case of real property actually occupied, for the
9 purposes and objectives of the organization.
10    (c) This section applies only to property taxes imposed for an
11 assessment date before January 1, 2027.
12    (d) This section expires January 1, 2028.
13    SECTION 25. IC 6-1.1-10-26, AS AMENDED BY P.L.86-2018,
14 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2026]: Sec. 26. (a) Subject to the limitations contained in
16 subsection (b), the following tangible property is exempt from property
17 taxation if it is owned by a county or district agricultural association of
18 this state:
19(1) A tract of land not exceeding eighty (80) acres.
20(2) The improvements situated on the tract of land.
21    (b) This exemption does not apply unless:
22(1) the association is organized under IC 15-14-3-1; and
23(2) the property is exclusively used and occupied for the purposes
24specified in IC 15-14-3-1.
25    (c) This section applies only to property taxes imposed for an
26 assessment date before January 1, 2027.
27    (d) This section expires January 1, 2028.
28    SECTION 26. IC 6-1.1-10-26.5, AS ADDED BY P.L.148-2015,
29 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2026]: Sec. 26.5. (a) This section applies to an assessment
31 date occurring after December 31, 2010.
32    (b) The following tangible property is exempt from property
33 taxation if the tangible property is owned by an agricultural
34 organization that is exempt from federal income taxation under Section
35 501(c)(5) of the Internal Revenue Code:
36(1) A tract of land of not more than one hundred forty (140) acres
37on which a county fair has been conducted for at least fifty (50)
38years.
39(2) The improvements situated on the tract of land.
40(3) The personal property located on the tract of land and used for
41the exempt purposes of the agricultural organization.
42    (c) This section applies only to property taxes imposed for an
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                                    19
1 assessment date before January 1, 2027.
2    (d) This section expires January 1, 2028.
3    SECTION 27. IC 6-1.1-10-27, AS AMENDED BY P.L.236-2023,
4 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]: Sec. 27. (a) Subject to the limitations contained in
6 subsections (b) and (c), the following tangible property is exempt from
7 property taxation if it is owned by a cemetery corporation, firm,
8 not-for-profit corporation, or association which is organized under the
9 laws of this state, a church, or a religious society:
10(1) The real property, including mausoleums and other structures
11in which human remains are buried or interred but not including
12crematories, funeral homes, offices, or maintenance structures.
13However, crematories, funeral homes, offices, and maintenance
14structures are exempt if they are owned by, or held in trust for the
15use of, a church or religious society, or if they are owned by a
16not-for-profit corporation or association.
17(2) The personal property which is used exclusively in the
18establishment, operation, administration, preservation, repair, or
19maintenance of the cemetery, funeral home, or crematory.
20    (b) The exemption under subsection (a) does not apply to real
21 property unless:
22(1) it has been dedicated or platted for cemetery, crematory, or
23funeral home use, or a variance has been granted for one (1) or
24more of those uses;
25(2) a plat of it or variance from the plat has been recorded in the
26county in which the property is located; and
27(3) it is exclusively used for cemetery, burial, crematory, or
28funeral purposes.
29    (c) The exemption under subsection (a) does not apply to personal
30 property unless it is used exclusively for cemetery, funeral home, or
31 crematory purposes and:
32(1) it is owned by, or held in trust for the use of, a church or
33religious society; or
34(2) it is owned by a not-for-profit corporation or association.
35    (d) This section applies only to property taxes imposed for an
36 assessment date before January 1, 2027.
37    (e) This section expires January 1, 2028.
38    SECTION 28. IC 6-1.1-10-28 IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 28. (a) A building and
40 the land on which the building is located are exempt from property
41 taxation if:
42(1) the building is used for the purpose of gratuitously dispensing
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                                     20
1medicines and medical advice and aid to people; and
2(2) the real property is owned by a corporation, institution, or
3association which exists exclusively for that charitable purpose.
4     (b) This section applies only to property taxes imposed for an
5 assessment date before January 1, 2027.
6     (c) This section expires January 1, 2028.
7     SECTION 29. IC 6-1.1-10-32 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE JANUARY 1, 2027]: Sec. 32. Tangible
9 property is exempt from property taxation if it:
10(1) is under the control of an executor;
11(2) is to pass, under the terms of a will, to a municipal corporation
12or to a literary, scientific, benevolent, religious or charitable
13institution; and
14(3) would be exempt from property taxation if it had already been
15distributed to the devisee or legatee.
16     SECTION 30. IC 6-1.1-10-33 IS AMENDED TO READ AS
17 FOLLOWS [EFFECTIVE JANUARY 1, 2027]: Sec. 33. (a) Tangible
18 property which is under the control of an executor or a trustee is
19 exempt from property taxation if it is to be used and applied:
20(1) within this state for a municipal, kindergarten through
21grade 12 educational or literary, scientific, religious or charitable
22purpose; or
23(2) for the benefit of this state or a state institution.
24     (b) Subsection (a) does not apply unless the executor or trustee
25 diligently and in good faith carries out the provisions of the will or trust
26 agreement by using and applying the property for the intended purpose.
27     SECTION 31. IC 6-1.1-10-37.5, AS ADDED BY P.L.148-2015,
28 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2026]: Sec. 37.5. (a) As used in this section, "common area"
30 means a parcel of land, including improvements, in a residential
31 development that:
32(1) is legally reserved for the exclusive use and enjoyment of all
33lot owners, occupants, and their guests, regardless of whether a lot
34owner makes actual use of the land;
35(2) is owned by:
36(A) the developer, or the developer's assignee, provided such
37ownership is in a fiduciary capacity for the exclusive benefit
38of all lot owners in the residential development, and the
39developer has relinquished all rights to transfer the property
40other than to a person or entity that will hold title to the
41property in a fiduciary capacity for the exclusive benefit of all
42lot owners;
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                                      21
1(B) each lot owner within the residential development, equally
2or pro rata; or
3(C) a person, trust, or entity that holds title to the land for the
4benefit of all lot owners within the residential development;
5(3) cannot be transferred for value to another party without the
6affirmative approval of:
7(A) all lot owners within the residential development; or
8(B) not less than a majority of all lot owners within the
9residential development, if majority approval is permitted
10under the bylaws or other governing documents of a
11homeowners association, or similar entity;
12(4) does not include a Class 2 structure (as defined in
13IC 22-12-1-5); and
14(5) is not designed or approved for the construction of a Class 2
15structure.
16 The term includes, but is not limited to, a lake, pond, street, sidewalk,
17 park, green area, trail, wetlands, signage, swimming pool, clubhouse,
18 or other features or amenities that benefit all lot owners within the
19 residential development.
20     (b) As used in this section, "lot owner" means an individual or entity
21 that is the owner of record of a lot, parcel, tract, unit, or interest within
22 a residential development, upon which a Class 2 structure (as defined
23 in IC 22-12-1-5) is or will be constructed.
24     (c) As used in this section, "residential development" means a parcel
25 of land that is subdivided into lots, parcels, tracts, units, or interests:
26(1) all of which, except for a common area, include an existing
27Class 2 structure (as defined in IC 22-12-1-5), or are designated
28for the construction of a Class 2 structure; and
29(2) each of which is encumbered by substantively identical
30restrictive covenants concerning one (1) or more servient estates
31located within the boundaries of the original undivided parcel, or
32other governing document of record.
33     (d) Notwithstanding any other provision of this article, a common
34 area is exempt from property taxation, provided that the common area
35 easements and covenants restricting the use and conveyance of
36 common areas to lot owners are recorded, and notice is provided, to the
37 appropriate county or township assessor.
38     (e) A county or township assessor shall designate an area as a
39 common area after:
40(1) receiving notice as provided in subsection (d); and
41(2) determining that the area is a common area.
42     (f) If a county or township assessor determines that the area is not
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                                    22
1 a common area, or determines that the area fails to meet the
2 requirements of subsection (d), then the county or township assessor
3 shall send a written statement to the owner of the common area not
4 later than thirty (30) days after receiving the notice under subsection
5 (d). The written statement shall contain:
6(1) the specific provisions on which the county or township
7assessor based the determination; and
8(2) a statement that the owner of the common area shall have
9thirty (30) days to address the specific provisions provided in
10subdivision (1), and to establish the area as a common area that
11meets the requirements of subsection (d).
12     (g) If a county or township assessor fails to send a written statement
13 to the owner of a common area as required by this section, then the area
14 for which notice was provided in subsection (d) shall be considered a
15 common area for purposes of this section.
16     (h) Once an area has been designated a common area, no subsequent
17 refiling of a common area property tax exemption is required unless an
18 area designated as a common area subsequently fails to meet the
19 definition of a common area as provided in this section.
20     (i) A common area may be created at any time during or after a
21 residential development is created. For purposes of the exemption
22 under this section, a common area may be created or expanded after the
23 initial approval of the residential development only if that creation or
24 expansion of the common area:
25(1) is approved by:
26(A) all lot owners within the residential development; or
27(B) not less than a majority of all lot owners within the
28residential development, if majority approval is permitted
29under the bylaws or other governing documents of a
30homeowners association, or similar entity; and
31(2) receives any approvals required by the county or municipality
32in which the common area is located.
33     (j) An owner of an area may obtain review by the county property
34 tax assessment board of appeals of a county or township assessor's
35 determination under subsection (f).
36     (k) This section applies only to property taxes imposed for an
37 assessment date before January 1, 2027.
38     (l) This section expires January 1, 2028.
39     SECTION 32. IC 6-1.1-10-37.8, AS ADDED BY P.L.203-2016,
40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2026]: Sec. 37.8. (a) For assessment dates after December 31,
42 2015, and before January 1, 2027, tangible personal property is
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                                   23
1 exempt from property taxation if that tangible personal property:
2(1) is owned by a homeowners association (as defined in
3IC 32-25.5-2-4); and
4(2) is held by the homeowners association for the use, benefit, or
5enjoyment of members of the homeowners association.
6     (b) This section expires January 1, 2028.
7     SECTION 33. IC 6-1.1-10-39 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 39. (a) Intangible
9 personal property, including the following, is exempt from taxation
10 under this article:
11(1) A promissory note.
12(2) A share of stock in a foreign corporation.
13(3) A bond.
14(4) A debenture.
15(5) A postal savings certificate.
16(6) Equity in a brokerage or trading account.
17(7) A deposit of money.
18(8) A loan account.
19(9) A debt instrument with interest coupons.
20(10) A registered corporate security evidencing a debt.
21(11) A written instrument or certificate evidencing a debt,
22including a mortgage, a chattel mortgage, a bill of sale, and a
23conditional sales contract.
24(12) A written instrument securing an unwritten debt.
25(13) A written instrument evidencing an exchange of property
26when the ultimate transfer of title is intended.
27(14) A written contract for payment of money.
28(15) An instrument bearing interest for the benefit of the holder
29of that instrument or the holder of another instrument.
30     (b) This section applies only to property taxes imposed for an
31 assessment date before January 1, 2027.
32     (c) This section expires January 1, 2028.
33     SECTION 34. IC 6-1.1-10-42, AS AMENDED BY P.L.4-2005,
34 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2026]: Sec. 42. (a) A corporation that: is:
36(1) is nonprofit; and
37(2) participates in the small business incubator program under
38IC 5-28-21;
39 is exempt from property taxation to the extent of tangible property used
40 for small business incubation.
41     (b) A corporation that wishes to obtain an exemption from property
42 taxation under this section must file an exemption application under
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                                    24
1 IC 6-1.1-11.
2    (c) This section applies only to property taxes imposed for an
3 assessment date before January 1, 2027.
4    (d) This section expires January 1, 2028.
5    SECTION 35. IC 6-1.1-10-44, AS AMENDED BY P.L.256-2019,
6 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2026]: Sec. 44. (a) As used in this section, "designating body"
8 means the fiscal body of:
9      (1) a county that does not contain a consolidated city; or
10      (2) a municipality.
11    (b) As used in this section, "eligible business" means an entity that
12 meets the following requirements:
13      (1) The entity is engaged in a business that:
14(A) operates; or
15(B) leases qualified property for use in;
16      one (1) or more facilities or data centers dedicated to computing,
17      networking, or data storage activities.
18      (2) The entity's qualified property is located at a facility or data
19      center in Indiana.
20      (3) The entity, the lessor of qualified property (if the entity is a
21      lessee), and all lessees of qualified property invest in the
22      aggregate at least twenty-five million dollars ($25,000,000) in
23      real and personal property at the facility or data center after June
24      30, 2012.
25      (4) The average wage of employees who are located in the county
26      or municipality and engaged in the operation of the facility or data
27      center is at least one hundred twenty-five percent (125%) of the
28      county average wage for the county in which the facility or data
29      center operates.
30    (c) As used in this section, "enterprise information technology
31 equipment" means the following:
32      (1) Hardware supporting computing, networking, or data storage
33      functions, including servers and routers.
34      (2) Networking systems having an industry designation as
35      equipment within the "enterprise" or "data center" class of
36      networking systems that support the computing, networking, or
37      data storage functions.
38      (3) Generators and other equipment used to ensure an
39      uninterrupted power supply to equipment described in subdivision
40      (1) or (2).
41 The term does not include computer hardware designed for single user,
42 workstation, or departmental level use.
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1     (d) As used in this section, "fiscal body" has the meaning set forth
2 in IC 36-1-2-6.
3     (e) As used in this section, "municipality" has the meaning set forth
4 in IC 36-1-2-11.
5     (f) As used in this section, "qualified property" means enterprise
6 information technology equipment purchased after June 30, 2012, and
7 any additions to or replacements to such property.
8     (g) Before July 1, 2026, a designating body may enter into an
9 agreement with an eligible business to grant the eligible business a
10 property tax exemption. In the case of a county, the exemption applies
11 only to qualified property that is located in unincorporated territory of
12 the county. In the case of a municipality, the exemption applies only to
13 qualified property that is located in the municipality. The property tax
14 exemption applies to the qualified property only if the designating body
15 and the eligible business enter into an agreement concerning the
16 property tax exemption. The agreement must specify the duration of the
17 property tax exemption. The agreement may specify that if the
18 ownership of qualified property is transferred by an eligible business,
19 the transferee is entitled to the property tax exemption on the same
20 terms as the transferor. If a designating body enters into an agreement
21 with an eligible business, the qualified property owned by the eligible
22 business is exempt from property taxation as provided in the resolution
23 and the agreement.
24     (h) If a designating body enters into an agreement under subsection
25 (g) to provide a property tax exemption, the property tax exemption
26 continues for the period specified in the agreement. The property tax
27 exemption may not be extended beyond the period specified in the
28 initial agreement.
29     SECTION 36. IC 6-1.1-10-46, AS AMENDED BY P.L.230-2025,
30 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2026]: Sec. 46. (a) Tangible property owned, occupied, or
32 used by a for-profit provider of early childhood education services to
33 children who are less than six (6) years of age is exempt from property
34 taxation under section 16 of this chapter only if all the following
35 requirements are satisfied:
36(1) The provider, or a parent company, subsidiary, or affiliate
37company of the provider, is the property owner.
38(2) The provider predominantly occupies and uses the tangible
39property for providing early childhood education services to
40children who are less than six (6) years of age.
41(3) The provider meets the standards of quality recognized by a
42Level 3 or Level 4 Paths to QUALITY program rating under
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1IC 12-17.2-2-14.2 or has a comparable rating from a nationally
2recognized accrediting body.
3(4) The provider offers age appropriate curriculum for all children
4who are less than six (6) years of age, including infants, who
5attend the child care facility. The curriculum offered must include
6reading to the children.
7 However, the exemption provided by this section does not apply to
8 tangible property that has been granted a homestead standard deduction
9 under IC 6-1.1-12-37.
10     (b) This section applies only to property taxes imposed for an
11 assessment date before January 1, 2027.
12     (c) This section expires January 1, 2028.
13     SECTION 37. IC 6-1.1-10-47, AS ADDED BY P.L.255-2017,
14 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2026]: Sec. 47. (a) This section applies to an assessment date
16 occurring after December 31, 2017.
17     (b) Tangible property owned by a nonprofit corporation is exempt
18 from property taxation if the following apply:
19(1) The owner is an organization exempt from taxation under
20Section 501(c)(3) of the Internal Revenue Code.
21(2) The owner is:
22(A) a federally-qualified health center (as defined in 42 U.S.C.
231396d(l)(2)(B)); and
24(B) a primary medical provider that:
25(i) accepts all patients and provides care regardless of a
26patient's ability to pay;
27(ii) is located in a geographically medically underserved
28area; and
29(iii) has received a grant at any time from the Indiana health
30care trust account under IC 4-12-5.
31(3) The owner was granted an exemption under section 16 of this
32chapter for a comparable facility located in a contiguous county.
33(4) The owner applied for an exemption under section 16 of this
34chapter for a previous assessment date and was denied.
35     (c) The property that is exempt under this section also includes the
36 following:
37(1) Property used in providing storage or parking.
38(2) Any part of the property that is leased or rented by the owner
39to another nonprofit corporation providing services or assistance
40to participants in the Special Supplemental Nutrition Program for
41the Women, Infants, and Children Nutrition Program (WIC) under
42IC 16-35-1.5.
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1    (d) If property is exempt under subsection (b) and part of the
2 property is used by a for-profit enterprise, the exemption under
3 subsection (b) is reduced proportionately.
4    (e) This section applies only to property taxes imposed for an
5 assessment date before January 1, 2027.
6    (f) This section expires January 1, 2028.
7    SECTION 38. IC 6-1.1-10-48, AS AMENDED BY P.L.165-2021,
8 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2026]: Sec. 48. (a) This section applies to assessment dates
10 occurring after December 31, 2016, and before January 1, 2027.
11    (b) Tangible property is exempt from property taxation if:
12(1) it is owned by an Indiana nonprofit public benefit corporation
13exempt from taxation under Section 501(c)(3) of the Internal
14Revenue Code;
15(2) the property is used in the operation of a nonprofit health,
16fitness, aquatics, and community center; and
17(3) funds for the acquisition and development of the property
18have been provided in part under the regional cities initiative of
19the Indiana economic development corporation under IC 5-28-38
20(before its repeal).
21    (c) The property that is exempt under this section also includes any
22 part of the property that is leased or licensed by the owner to another
23 nonprofit or municipal entity for use as a nonprofit health, fitness,
24 aquatics, or community center and property used for storage and
25 parking.
26    (d) For purposes of this section, a tract of land and any
27 improvements on the land are exempt from taxation if not more than
28 four (4) years after the property is purchased, and for each year after
29 the four (4) year period, the owner demonstrates substantial progress
30 and active pursuit towards the use of the tract of land and any
31 improvements on the tract as a nonprofit health, fitness, aquatics, and
32 community center. To establish substantial progress and active pursuit
33 under this subsection, the owner must prove the existence of factors
34 such as the following:
35(1) Organization of and activity by a building committee or other
36oversight group.
37(2) Completion and filing of building plans with the appropriate
38local government authority.
39(3) Cash reserves dedicated to the project of a sufficient amount
40to lead a reasonable individual to believe actual construction can
41and will begin within four (4) years.
42(4) The breaking of ground and the beginning of actual
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1construction.
2(5) Any other factor that would lead a reasonable individual to
3believe that construction of the improvement is an active plan and
4that the improvement is capable of being completed within eight
5(8) years considering the circumstances of the owner.
6     (e) To the extent the owner of property that is exempt from taxation
7 as provided in this section has paid any property taxes, penalties, or
8 interest with respect to the property for the 2017 assessment date
9 through the 2018 assessment date, the owner of the exempt property is
10 entitled to a refund of the amounts paid on the exempt property.
11 Notwithstanding the filing deadlines for a claim under IC 6-1.1-26, any
12 claim for a refund filed by the owner of exempt property under this
13 subsection before September 1, 2019, is considered timely filed. The
14 county auditor shall pay the refund due under this subsection in one (1)
15 installment.
16     (f) If a refund is due under subsection (e) to an owner of property
17 that is exempt under this section, the owner is not entitled to interest on
18 the refund under this article or any other law to the extent interest has
19 not been paid by or on behalf of the owner.
20     (g) This section expires January 1, 2028.
21     SECTION 39. IC 6-1.1-10-50, AS ADDED BY P.L.135-2022,
22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2026]: Sec. 50. Property designated before July 1, 2026, as
24 exempt under IC 36-7-32.5-15(b) by an executive or the Indiana
25 economic development corporation is exempt from property taxation.
26     SECTION 40. IC 6-1.1-10-51, AS ADDED BY P.L.230-2025,
27 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2026]: Sec. 51. (a) As used in this section, "child care" has the
29 meaning set forth in IC 12-7-2-28.2.
30     (b) As used in this section, "early learning advisory committee"
31 refers to the early learning advisory committee established by
32 IC 12-17.2-3.8-5.
33     (c) As used in this section, "employer" means any person,
34 corporation, limited liability company, partnership, or other entity with
35 employees employed at a physical location in Indiana. The term
36 includes a pass through entity. However, the term does not include an
37 employer who is in the business of operating a child care facility.
38     (d) As used in this section, "office" refers to the office of the
39 secretary of family and social services established by IC 12-8-1.5-1.
40     (e) The part of the gross assessed value of tangible property that is
41 attributable to tangible property owned and used by an employer, or a
42 parent company, subsidiary, or affiliate company of an employer, to
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1 provide child care for children of the employer's employees and
2 children of the employees of another business in accordance with an
3 agreement entered into under subsection (g) is exempt from property
4 taxation if the following conditions are met:
5(1) The child care is provided in a facility located on the
6employer's property.
7(2) Subject to subsection (g), the child care is provided only for
8children of the employer's employees.
9(3) The child care facility is licensed by the division of family
10resources under IC 12-17.2.
11(4) The part of the employer's property used to provide child care
12meets standards established by the office and the early learning
13advisory committee for the number of children to be served by the
14child care facility.
15     (f) The child care facility may be operated by the employer or under
16 a contract described in Section 45F(c)(1)(A)(iii) of the Internal
17 Revenue Code to provide child care services to the employer's
18 employees.
19     (g) An employer may provide child care in a facility described in
20 subsection (e)(1) for the children of the employees of another business
21 if the employer and the other business enter into an agreement that
22 outlines the terms under which the child care is to be provided to the
23 children of the employees of the other business.
24     (h) This section applies only to property taxes imposed for an
25 assessment date before January 1, 2027.
26     (i) This section expires January 1, 2028.
27     SECTION 41. IC 6-1.1-10-54, AS AMENDED BY THE
28 TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
29 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2026]: Sec. 54. (a) As used in this section, "designating body"
31 means the fiscal body of:
32(1) a county that does not contain a consolidated city; or
33(2) a municipality.
34     (b) As used in this section, "eligible business" means an entity that
35 meets the following requirements:
36(1) The entity is engaged in a business that:
37(A) operates; or
38(B) leases qualified property for use in;
39one (1) or more facilities.
40(2) The entity's qualified property is located at a facility in
41Indiana.
42(3) The entity, the lessor of qualified property (if the entity is a
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1lessee), and all lessees of qualified property invest in the
2aggregate at least one hundred million dollars ($100,000,000) in
3real and personal property at one (1) or more facilities in Indiana
4after January 1, 2026.
5(4) The average wage of employees who are located in the county
6or municipality and engaged in the operation of the facility is at
7least one hundred twenty-five percent (125%) of the county
8average wage for the county in which the facility operates.
9     (c) As used in this section, "facility" has the meaning set forth in
10 IC 6-2.5-15-5.
11     (d) As used in this section, "fiscal body" has the meaning set forth
12 in IC 36-1-2-6.
13     (e) As used in this section, "municipality" has the meaning set forth
14 in IC 36-1-2-11.
15     (f) As used in this section, "qualified property" means quantum safe
16 fiber network equipment purchased after January 1, 2026, and any
17 additions to or replacements to of such property.
18     (g) As used in this section, "quantum safe fiber network equipment"
19 has the meaning set forth in IC 6-2.5-15-13.3.
20     (h) Before July 1, 2026, a designating body may enter into an
21 agreement with an eligible business to grant the eligible business a
22 property tax exemption. In the case of a county, the exemption applies
23 only to qualified property that is located in unincorporated territory of
24 the county. In the case of a municipality, the exemption applies only to
25 qualified property that is located in the municipality. The property tax
26 exemption applies to the qualified property only if the designating body
27 and the eligible business enter into an agreement concerning the
28 property tax exemption. The agreement must specify the duration of the
29 property tax exemption. The agreement may specify that if the
30 ownership of qualified property is transferred by an eligible business,
31 the transferee is entitled to the property tax exemption on the same
32 terms as the transferor. If a designating body enters into an agreement
33 with an eligible business, the qualified property owned by the eligible
34 business is exempt from property taxation as provided in the resolution
35 and the agreement.
36     (i) If a designating body enters into an agreement under subsection
37 (h) to provide a property tax exemption, the property tax exemption
38 continues for the period specified in the agreement. The property tax
39 exemption may not be extended beyond the period specified in the
40 initial agreement.
41     SECTION 42. IC 6-1.1-12.1-0.5 IS ADDED TO THE INDIANA
42 CODE AS A NEW SECTION TO READ AS FOLLOWS
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1 [EFFECTIVE JULY 1, 2026]: Sec. 0.5. Notwithstanding any other
2 law, after December 31, 2030:
3      (1) a designating body may not initially designate an area as
4      an economic revitalization zone under this chapter; and
5      (2) a deduction may not be allowed for the first time under
6      this chapter on the assessed value of a particular property.
7 A deduction that was allowed on the assessed value of a particular
8 property for the first time before January 1, 2031, may continue
9 until the scheduled end of the abatement schedule established for
10 the deduction.
11    SECTION 43. IC 6-1.1-42-0.5 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2026]: Sec. 0.5. Notwithstanding any other
14 law, after December 31, 2030:
15      (1) a designating body may not initially designate an area as
16      a brownfield revitalization zone under this chapter; and
17      (2) a deduction may not be approved for the first time under
18      this chapter on the assessed value of a particular property.
19 A deduction that was approved on the assessed value of a
20 particular property for the first time before January 1, 2031, may
21 continue through the period of time stated for the deduction in the
22 resolution under section 24(a) of this chapter.
23    SECTION 44. IC 6-1.1-46.2-0.5 IS ADDED TO THE INDIANA
24 CODE AS A NEW SECTION TO READ AS FOLLOWS
25 [EFFECTIVE JULY 1, 2026]: Sec. 0.5. Notwithstanding any other
26 law, after December 31, 2030, a deduction may not be allowed for
27 the first time under this chapter on the assessed value of a
28 particular property. A deduction that was allowed on the assessed
29 value of a particular property for the first time before January 1,
30 2031, may continue until the scheduled end of the abatement
31 schedule established for the deduction.
32    SECTION 45. IC 6-1.1-53 IS ADDED TO THE INDIANA CODE
33 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2026]:
35    Chapter 53. County Option for Homestead Property Tax
36 Exemption
37    Sec. 1. As used in this chapter, "county fiscal body" means the:
38      (1) county council, for a county not having a consolidated city;
39      or
40      (2) city-county council, for a county having a consolidated
41      city.
42    Sec. 2. As used in this chapter, "exemption ordinance" refers to
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1 an ordinance adopted under section 4 of this chapter by a county
2 fiscal body.
3     Sec. 3. As used in this chapter, "qualified homestead" means
4 real property that is receiving a homestead standard deduction
5 under IC 6-1.1-12-37 and that is used as a principal place of
6 residence by an:
7(1) owner of the property who is at least sixty-five (65) years
8of age;
9(2) individual who is at least sixty-five (65) years of age and is
10buying the property under a contract; or
11(3) individual who is at least sixty-five (65) years of age and
12has a beneficial interest in the owner of the property.
13     Sec. 4. (a) A county fiscal body may adopt an exemption
14 ordinance that exempts qualified homesteads from property
15 taxation as provided in section 7 of this chapter.
16     (b) Before adopting an exemption ordinance under this section,
17 a county fiscal body must conduct a public hearing on the proposed
18 exemption ordinance. The county fiscal body must publish notice
19 of the public hearing in accordance with IC 5-3-1.
20     (c) The county fiscal body shall provide a certified copy of an
21 adopted exemption ordinance to the department of local
22 government finance and the county assessor.
23     Sec. 5. An exemption ordinance adopted under this chapter
24 must exempt all qualified homesteads in a county from property
25 taxation.
26     Sec. 6. A county fiscal body may repeal or amend an exemption
27 ordinance.
28     Sec. 7. To make a qualified homestead exempt from property
29 taxation under this article, the part of the property tax liability
30 (including any property tax liability imposed in a voter approved
31 referendum) on a qualified homestead that remains after taking
32 into account all deductions and credits provided under any other
33 law is eliminated. A deduction, credit, or allocation of revenue that
34 reduces the property tax liability on a homestead using a local
35 revenue source may not be changed after the assessment date on
36 which the exemption is first applicable.
37     Sec. 8. (a) A person receiving the homestead standard deduction
38 under IC 6-1.1-12-37 on a qualified homestead is entitled to the
39 exemption provided by this chapter and must apply for the
40 exemption under this chapter in a manner similar to the
41 application process for the homestead standard deduction under
42 IC 6-1.1-12-37.
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1     (b) The auditor of each county shall, in a particular year, apply
2 the exemption to each person who received the exemption in the
3 preceding year unless the county auditor determines that the
4 person is no longer eligible for the exemption.
5     (c) An individual who receives an exemption under this chapter
6 in a particular year and who becomes ineligible for the exemption
7 in the following year shall notify the auditor of the county in which
8 the homestead is located of the individual's ineligibility not later
9 than sixty (60) days after the individual becomes ineligible.
10     Sec. 9. IC 6-1.1-11 does not apply to claiming the exemption
11 provided by this chapter.
12     SECTION 46. IC 36-7-32.5-15, AS ADDED BY P.L.135-2022,
13 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2026]: Sec. 15. (a) Before July 1, 2026, an executive or the
15 corporation may enter into a written agreement with a taxpayer who
16 owns, or is otherwise obligated to pay property taxes on, tangible
17 property that is or will be located in an allocation area established
18 under this chapter in which the taxpayer waives review of any
19 assessment of the taxpayer's tangible property that is located in the
20 allocation area for an assessment date that occurs during the term of
21 any specified bond or lease obligations that are payable, in whole or in
22 part, from property taxes in accordance with an allocation provision for
23 the allocation area and any applicable statute, ordinance, or resolution.
24     (b) Before July 1, 2026, and except as provided in subsection (c),
25 but notwithstanding any other law, an executive or the corporation may
26 exempt from taxation any tangible real property improvements or
27 personal property, or a part of real property improvements or personal
28 property, that:
29(1) in the case of real property improvements, is assessed as
30commercial or industrial property under the rules of the
31department of local government finance;
32(2) is located within the innovation development district; and
33(3) was:
34(A) in the case of real property improvements, constructed;
35and
36(B) in the case of personal property, first entered into service;
37after the date that the innovation development district was
38designated under section 9 of this chapter.
39 The executive, or the corporation, as applicable, shall notify the county
40 assessor and county auditor of the county in which the real property
41 improvement or personal property is located of an exemption provided
42 under this subsection. An executive who provided an exemption, or the
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                                  34
1 corporation, if the corporation provided the exemption, may terminate
2 the exemption by providing notice to the county assessor and county
3 auditor of the county in which the real property improvement or
4 personal property is located. An exemption, or the termination of an
5 exemption, is effective beginning with the assessment date that
6 immediately follows the date that the notice required under this
7 subsection is provided by the executive or the corporation.
8    (c) An executive and the corporation may not exempt from taxation
9 any real property improvements or personal property described in
10 subsection (b) after any bonds have been issued by the Indiana finance
11 authority under IC 5-1.2-4-4(a)(2) that are payable from revenues
12 deposited in a local innovation development district fund established
13 under section 19 of this chapter as long as the bonds remain
14 outstanding.
15    SECTION 47. [EFFECTIVE JULY 1, 2026] (a) IC 6-1.1-10-16,
16 IC 6-1.1-10-32, and IC 6-1.1-10-33, all as amended by this act,
17 apply to assessment dates after December 31, 2026.
18    (b) This SECTION expires July 1, 2029.
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