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

Plain English Breakdown

The official source material does not provide details on the selection process for projects or specify eligible local government units, leaving these points as unknowns.

Small Town Opportunity Initiative

This bill allocates $50 million from the Indiana Economic Development Corporation's annual tax credit amount to create the Small Town Opportunity Initiative, which provides tax credits for businesses and nonprofits working on community projects in small towns.

What This Bill Does

• Allocates $50 million from the Indiana Economic Development Corporation's annual certifiable tax credit amount for the Small Town Opportunity Initiative.
• Establishes the purpose of the initiative as advancing historic preservation, redeveloping distressed buildings or underutilized property, and rehabilitating sites where such buildings once stood.
• Allows a 20% tax credit for businesses that spend money on qualified community projects under this initiative.
• Gives a 30% tax credit to nonprofits working on similar projects.

Who It Names or Affects

• Businesses and nonprofits undertaking community projects in small towns with project budgets of at least $15 million per project.

Terms To Know

Tax Credit

A reduction in the amount of tax a person or business has to pay.

Qualified Community Project

Projects that meet specific criteria set by the Small Town Opportunity Initiative, such as advancing historic preservation and redeveloping distressed buildings.

Limits and Unknowns

• The bill does not specify which local government units are eligible for the initiative.
• It is unclear how projects will be selected to receive tax credits under this program.

Official Summary Text

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

Current Bill Text

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

Redevelopment tax credits.

Provides that $50,000,000 of the $300,000,000 of the Indiana economic development corporation's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that the purpose of the initiative is to undertake qualified community projects within local government units that have a project budget of at least $15,000,000 per project to do the following: (1) Advance historic preservation. (2) Redevelop or rehabilitate distressed buildings or underutilized property. (3) Redevelop or rehabilitate sites where distressed buildings once stood. Allows a redevelopment tax credit for: (1) a for-profit taxpayer undertaking a qualified community project under the initiative equal to 20% of the taxpayer's cost of the project; and (2) a nonprofit taxpayer undertaking a qualified community project under the initiative equal to 30% of the taxpayer's cost of the project. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Provides for certain items that are included in a nonprofit taxpayer's qualified investment.