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HB1189 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Labor Taxes Technology
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Randy Novak
Last action
2026-01-05
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details on enforcement mechanisms or consequences of non-compliance.

Labor Requirements for Data Center Incentives

This bill changes Indiana's tax laws by requiring data center users and certain technology companies to use specific labor practices when getting incentives from the state.

What This Bill Does

  • Requires that agreements between qualified data center users or quantum computing research, advanced computing, and defense infrastructure network operators and the Indiana Economic Development Corporation for a transaction award certificate include a requirement that bids or requests for proposals are limited to labor unions or employers with project labor agreements.

Who It Names or Affects

  • Qualified data center users in Indiana
  • Quantum computing research companies in Indiana
  • Advanced computing firms in Indiana
  • Defense infrastructure network operators in Indiana

Terms To Know

Project labor agreement
A contract between employers and unions that sets the terms for hiring workers on a specific project.
Indiana Economic Development Corporation
An agency of Indiana's government that helps businesses grow by offering them financial support.

Limits and Unknowns

  • The bill does not specify what happens if companies do not follow the labor requirements.
  • It is unclear how this will affect small or new businesses in Indiana.
  • There are no details on how these changes will be enforced or monitored.

Bill History

  1. 2026-01-05 House

    Authored by Representative Novak

  2. 2026-01-05 House

    First reading: referred to Committee on Ways and Means

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Labor requirements for data center incentives.

Current Bill Text

Read the full stored bill text
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Labor requirements for data center incentives.

Requires that an agreement between a qualified data center user or quantum computing research, advanced computing, and defense infrastructure network operator and the Indiana economic development corporation for a specific transaction award certificate includes a requirement that the user or operator limit bids or requests for proposals for the project to labor unions or employers that have project labor agreements.