Indiana would award yearly tax credits for regional redevelopment sites

Indiana's economic development agency would award $50 million in tax credits each state fiscal year to regional authorities with approved site applications. Sites must appear in an authority's development plan. At least 20% of yearly awards must go to sites in counties with fewer than 50,000 people. The state agency must approve the site application, and an authority must sign an agreement before receiving a credit. The award rule would take effect July 1, 2026, if passed.

Regional authorities seeking these credits would use development plans that meet funding and project requirements. These plans cover redevelopment sites that regional authorities submit for the yearly tax credit awards. Across all projects, local public funding must equal or exceed state support, and expected total investment must be four times greater than state support. The plan must forecast a positive return for the state and show each project needs the requested state support. These plan requirements would take effect July 1, 2026, if passed.

A county or qualifying city could change regional development authority membership by passing another local ordinance. This applies to counties and qualifying cities already participating in a regional development authority. A local government may belong to only one authority. A member of the northwest Indiana regional development authority cannot join an authority under these rules. This membership rule would take effect July 1, 2026, if passed.