Ind. Code § 8-21-11-1 "Airport" defined
Sec. 1. Notwithstanding IC 8-21-1-1, as used in this chapter, "airport" means a public use airport (as defined in 49 U.S.C. 47102).
As added by P.L.34-1990, SEC.2. Amended by P.L.1-1999, SEC.22.
Ind. Code ch. 8-21-11
Ind. Code ch. 8-21-11
in effectInd. Code § 8-21-11-2 "Grant fund" defined
Sec. 2. As used in this chapter, "grant fund" refers to the airport development grant fund.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-3 "Loan fund" defined
Sec. 3. As used in this chapter, "loan fund" refers to the airport development revolving loan fund.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-4 Grant fund; revolving loan fund; administration
Sec. 4. (a) The airport development grant fund and the airport development revolving loan fund are established for the purposes of this chapter. The department shall administer the two (2) funds.
(b) The department shall pay the expenses of administering the funds.
(c) The treasurer of state shall invest the money in each fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund that earns the interest.
(d) Money in a fund at the end of a state fiscal year does not revert to the state general fund.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-5 Program to foster airport development; components; rules
Sec. 5. (a) The department shall adopt rules under IC 4-22-2 to establish a program to foster airport development in Indiana with special emphasis on improvement of airports as an economic development tool. The program must include the following components:
(1) State grants to airports from the grant fund to match federal Aviation Trust Fund grants.
(2) State grants to airports from the grant fund for airport development projects for which federal grants are not available.
(3) Loans to airports from the loan fund for airport development projects.
(b) The rules must establish the following for both grants and loans:
(1) Standards of eligibility.
(2) The maximum amount of money for which any one (1) airport or airport development project is eligible.
(3) Application procedures.
(4) The local matching funds that are required.
(5) In determining the amount of the match for a state grant for which federal grants are not available as described in subsection (a)(2), the department shall:
(A) consider the airport classification and the type of project; and
(B) require matching funds of at least twenty-five percent (25%).
(6) Other provisions to administer the grant and loan programs.
As added by P.L.34-1990, SEC.2. Amended by P.L.123-2023, SEC.1.
Ind. Code § 8-21-11-5.5 Eligibility of projects
Sec. 5.5. (a) The program described in section 5 of this chapter is designed to optimize the use of the grant fund. The primary goals of the allocation program are to:
(1) further the proper development and maintenance of a statewide system of airports;
(2) further economic development; and
(3) provide safety of aircraft operations.
(b) This program requires the project to do the following:
(1) Be for the establishment or improvement of a public use airport.
(2) Be included in the Indiana airports system plan, as provided in IC 8-21-1-8.
(3) Be located on a site approved by the department.
(4) Follow an airport layout plan approved by the department.
(5) Meet the general design criteria of the Federal Aviation Administration Advisory Circulars.
However, subdivisions (1) through (5) are examples and guidelines and may be waived by the department, where, in the judgment of the department, the public interest is best served by allowing less stringent criteria.
(c) Engineering agreements for work to be financed in part by the grant fund must be reviewed for approval by the department.
(d) Airport development items that are eligible for funding include the following:
(1) Land acquisition for development of airport facilities.
(2) Engineering and legal fees for airport planning and development.
(3) Grading, drainage, paving, and miscellaneous items necessary for the construction or reconstruction of runways, taxiways, and aprons.
(4) Acquisition of runway clear zones and aviation easements, or other interests in air space as may be reasonably required for safeguarding aircraft operations in the vicinity of an airport.
(5) Removal of obstructions from approach areas.
(6) Installation or relocation of any of the following:
(A) Segmented circles.
(B) Runway, apron, and taxiway lights.
(C) Taxiway guidance signs.
(D) Obstruction lights.
(E) Security flood lights.
(F) Airport beacons.
(G) Wind and landing direction indicators.
(H) Auxiliary power units.
(I) REILs (Runway End Identification Lights) and visual glideslope indicator systems.
(7) Grading, drainage, paving, and miscellaneous items necessary for the construction or reconstruction of airport access roads and public auto parking areas.
(8) Construction of airport safety facilities, security fencing, acquisition of aircraft rescue and firefighting (ARFF) vehicles, and snow removal equipment.
(9) Installation of instrument landing systems, approach lighting systems, and other approach aids.
(10) Development of master planning grants.
(11) Airport operational buildings. However, additional building projects will not be eligible until the eighth fiscal year after the completion of the previous building project.
(12) Terminal buildings, fuel farms, and hangars.
(13) Other items approved by the department, where, in the judgment of the department, the public interest is best served.
As added by P.L.123-2023, SEC.2.
Ind. Code § 8-21-11-6 Eligibility for grant or loan
Sec. 6. The following may apply to the department for a grant or a loan for an airport development project:
(1) An eligible entity that has established a board of aviation commissioners under IC 8-22-2.
(2) An airport authority established under IC 8-22-3.
(3) A public airport established under IC 21-31-7.
(4) Any airport that is eligible for an exemption under IC 6-1.1-10-15.
As added by P.L.34-1990, SEC.2. Amended by P.L.114-1995, SEC.1; P.L.2-2007, SEC.138.
Ind. Code § 8-21-11-7 Allocation of grant funds
Sec. 7. (a) The department shall determine the allocation of grant funds among eligible applicants. However, the total amount of grants under this chapter may not exceed the balance in the grant fund.
(b) The budget agency shall certify to the department, the state comptroller, and the treasurer of state that funds are available for a specific grant under subsection (a). Upon receipt of the certification from the budget agency, the funds shall be transmitted to the grant recipient.
As added by P.L.34-1990, SEC.2. Amended by P.L.9-2024, SEC.300.
Ind. Code § 8-21-11-8 Allocation of loan funds; maximum amount
Sec. 8. (a) The department shall determine the allocation of loan funds among eligible applicants. However, the total amount of loans under this chapter may not exceed the balance in the loan fund.
(b) An application for a loan must comply with the following:
(1) Be accompanied by a request for the loan in the form of a resolution adopted by the applicant's fiscal body in the case of an eligible entity or the applicant's governing board in the case of an airport authority.
(2) Be accompanied by a plan for repayment that is determined by the department to be an adequate plan.
(3) Meet all requirements for a grant from the fund, but not be the recipient of such a grant.
(4) Meet all requirements that the department establishes.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-9 Terms of loans
Sec. 9. The department shall determine the terms of each loan, which must include the following:
(1) The duration of the loan, which may not exceed twelve (12) years.
(2) The repayment schedule of the loan, which must provide that no payments are due during the first two (2) years of the loan.
(3) A variable rate of interest to be determined by the department and adjusted annually. The interest rate must be the greater of:
(A) five percent (5%); or
(B) two-thirds (2/3) of the interest rate for fifty-two (52) week United States Treasury bills on the anniversary date of the loan, but not to exceed ten percent (10%).
(4) The amount of the loan.
(5) Any other conditions specified by the department.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-10 Repayment of loans; source
Sec. 10. As set forth in IC 5-1-14, an applicant may use any source of revenue to repay a loan under this chapter. This section constitutes complete authority for an applicant to borrow from the loan fund.
As added by P.L.34-1990, SEC.2.
Ind. Code § 8-21-11-11 Default on loan repayments; withholding of state funds payable to recipient
Sec. 11. If a loan recipient fails to make any repayments of a loan, the state comptroller shall withhold the repayment amount from any other money payable by the state to the recipient. The amount withheld shall be transferred to the loan fund to the credit of the recipient.
As added by P.L.34-1990, SEC.2. Amended by P.L.9-2024, SEC.301.
Ind. Code § 8-21-11-12 Deposit of repayments
Sec. 12. The department shall deposit repayments of principal and interest on loans in the loan fund to increase the amount that is available for new loans.
As added by P.L.34-1990, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/8Fetched: 10/17/2026