Ind. Code ch. 36-7-32.5

Ind. Code ch. 36-7-32.5
in effect

Ind. Code § 36-7-32.5-0.5 Applicability of amendments

Sec. 0.5. The amendments made to this chapter by HEA 1001-2025: (1) apply only to an innovation development district designated after December 31, 2024; and (2) do not apply to an innovation development district designated before January 1, 2025. As added by P.L.213-2025, SEC.309.

Ind. Code § 36-7-32.5-1 "Base assessed value"

Sec. 1. As used in this chapter, "base assessed value" means the net assessed value of all the taxable real property that is assessed as commercial or industrial property under the rules of the department of local government finance, and taxable personal property, that is located in an innovation development district as finally determined for the assessment date immediately preceding the effective date of the designation by the corporation under section 9 of this chapter. As added by P.L.135-2022, SEC.28.

Ind. Code § 36-7-32.5-1.5 "Contractor"

Sec. 1.5. As used in this chapter, "contractor" has the meaning set forth in IC 6-2.5-1-14.9. As added by P.L.201-2023, SEC.271.

Ind. Code § 36-7-32.5-2 "Corporation"

Sec. 2. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1. As added by P.L.135-2022, SEC.28.

Ind. Code § 36-7-32.5-3 "Executive"

Sec. 3. As used in this chapter, "executive" means the following: (1) In the case of a county that does not have a consolidated city, the president of the board of county commissioners. (2) In the case of a county having a consolidated city, the mayor. (3) In the case of a city, the mayor. (4) In the case of a town that: (A) does not have a mayor, the president of the town council; or (B) does have a mayor, the mayor. As added by P.L.135-2022, SEC.28.

Ind. Code § 36-7-32.5-4 "Gross retail base period amount"

Sec. 4. As used in this chapter, "gross retail base period amount" means the aggregate amount of state gross retail and use taxes remitted under IC 6-2.5: (1) by the businesses operating in the territory comprising an innovation development district; and (2) that is, in the case of the: (A) state gross retail tax, collected by a business for sales occurring at a physical location of the business in the innovation development district; (B) state use tax, incurred with regard to property used in the innovation development district; and (C) state gross retail and use tax incurred and paid by a contractor with regard to tangible personal property incorporated into real property that is located in the innovation development district, if the: (i) contractor can determine the amount of state gross retail or use tax incurred and paid on the tangible personal property incorporated into real property that is located in the innovation development district based on records maintained under section 16.5 of this chapter; (ii) state gross retail or use tax is not otherwise collected in an allocation area listed in section 10(b) of this chapter; and (iii) state gross retail or use tax is not otherwise included in any innovation development district or section 5 of this chapter; during the full state fiscal year that precedes the date on which the innovation development district was designated under section 9 of this chapter. As added by P.L.135-2022, SEC.28. Amended by P.L.11-2023, SEC.122; P.L.201-2023, SEC.272.

Ind. Code § 36-7-32.5-5 "Gross retail incremental amount"

Sec. 5. As used in this chapter, "gross retail incremental amount" means the remainder of: (1) the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5: (A) by businesses operating in the territory comprising an innovation development district; and (B) that is, in the case of the: (i) state gross retail tax, collected by a business for sales occurring at a physical location of the business in the innovation development district; (ii) state use tax, incurred with regard to property used in the innovation development district; and (iii) state gross retail and use tax incurred and paid by a contractor with regard to tangible personal property incorporated into real property that is located in the innovation development district, if the contractor can determine the amount of state gross retail or use tax incurred and paid based on records maintained under section 16.5 of this chapter, the state gross retail and use tax is not otherwise collected in an allocation area listed in section 10(b) of this chapter, and the state gross retail and use tax is not otherwise included in any innovation development district or section 4 of this chapter; during a state fiscal year; minus (2) the gross retail base period amount; as determined by the department of state revenue. As added by P.L.135-2022, SEC.28. Amended by P.L.11-2023, SEC.123; P.L.201-2023, SEC.273.

Ind. Code § 36-7-32.5-6 "Income tax base period amount"

Sec. 6. As used in this chapter, "income tax base period amount" means the aggregate amount of state adjusted gross income taxes paid: (1) by employees employed in the territory comprising an innovation development district with respect to wages and salary earned for work in the innovation development district; and (2) by individuals who are not employees with respect to income received for services performed in the territory comprising an innovation development district; for the state fiscal year that precedes the date on which the innovation development district was designated under section 9 of this chapter. However, the term does not include state adjusted gross income taxes otherwise attributable to an allocation area listed in section 10(b) of this chapter. As added by P.L.135-2022, SEC.28. Amended by P.L.201-2023, SEC.274.

Ind. Code § 36-7-32.5-7 "Income tax incremental amount"

Sec. 7. As used in this chapter, "income tax incremental amount" means the remainder of: (1) the total amount of state adjusted gross income taxes paid: (A) by employees employed in the territory comprising the innovation development district with respect to wages and salary earned for work in the territory comprising the innovation development district; and (B) by individuals who are not employees with respect to income received for services performed in the territory comprising an innovation development district; for a particular state fiscal year that are not otherwise attributable to an allocation area listed in section 10(b) of this chapter; minus (2) the sum of the: (A) income tax base period amount; plus (B) tax credits awarded by the Indiana economic development corporation under IC 6-3.1-13 to businesses operating in an innovation development district as the result of wages earned for work in the innovation development district for the state fiscal year; as determined by the department of state revenue. As added by P.L.135-2022, SEC.28. Amended by P.L.201-2023, SEC.275.

Ind. Code § 36-7-32.5-8 "Net increment"

Sec. 8. As used in this chapter, "net increment" means the sum of: (1) the gross retail incremental amount; plus (2) the income tax incremental amount; as determined by the department of state revenue. As added by P.L.135-2022, SEC.28.

Ind. Code § 36-7-32.5-9 Establishment of uniform policies and guidelines; conditions and requirements for designation of an area as an innovation development district

Sec. 9. (a) Before the corporation may designate territory within the jurisdiction of a city, town, or county, or within the jurisdiction of more than one (1) city, town, or county, as an innovation development district under this section, the board of the corporation established under IC 5-28-4 shall establish uniform policies and guidelines that the corporation must follow when notifying and collaborating with an executive, or, if applicable, executives, to designate territory within the jurisdiction of a city, town, or county as an innovation development district under this section. The corporation shall publish the uniform policies and procedures established under this subsection on the corporation's website. (b) Subject to subsection (c) and section 12(a) of this chapter, after: (1) budget committee review; and (2) notifying and collaborating with the executive, or, if an innovation development district will include territory within the jurisdiction of more than one (1) city, town, or county, with the executives of each city, town, or county, in the manner provided under the policies and guidelines established under subsection (a); the corporation may designate territory within the jurisdiction of a city, town, or county, or territory within the jurisdiction of more than one (1) city, town, or county, as an innovation development district if the corporation determines that the designation will support economic growth and the total investment plan is an amount equal to or greater than seven hundred fifty million dollars ($750,000,000). (c) Notwithstanding section 10(b) of this chapter, but subject to section 12(c) of this chapter, the corporation may designate territory that is located in an existing allocation area described in section 10(b) of this chapter as an innovation development district after: (1) budget committee review; and (2) obtaining consent from the executive, executives, or the board of any military base reuse authority, in the manner provided under the policies and guidelines established under subsection (a). (d) The requirements in subsection (c) apply to all innovation development districts established under this chapter regardless of the total costs and benefits of the proposed investment of an innovation development district. As added by P.L.135-2022, SEC.28. Amended by P.L.123-2024, SEC.17; P.L.213-2025, SEC.310; P.L.23-2026, SEC.289.

Ind. Code § 36-7-32.5-10 Prohibitions on designation of an area as an innovation development district; exception; development subject to zoning laws

Sec. 10. (a) The corporation may not designate an area as an innovation development district under section 9 of this chapter if the business or businesses that are expected to locate within the innovation development district: (1) currently operate in Indiana in a location outside of the proposed innovation development district; and (2) intend to substantially reduce or cease operations at the other location or locations within Indiana in order to relocate to a location within the innovation development district. (b) Except as provided in section 9(c) of this chapter, but notwithstanding any other provision of this chapter, an innovation development district may not be established in an existing allocation area established under: (1) IC 5-1-17.5; (2) IC 6-1.1-39; (3) IC 8-22-3.5; (4) IC 36-7-13; (5) IC 36-7-14; (6) IC 36-7-15.1; (7) IC 36-7-30; (8) IC 36-7-30.5; (9) IC 36-7-31; (10) IC 36-7-31.3; (11) IC 36-7-31.5; (12) IC 36-7-32; (13) IC 36-7.5-4.5; or (14) any other provision that authorizes the establishment of an allocation area. (c) A development within the innovation development district is subject to any zoning ordinance or other zoning law that otherwise applies to territory within the innovation development district. As added by P.L.135-2022, SEC.28. Amended by P.L.123-2024, SEC.18.

Ind. Code § 36-7-32.5-11 Term of designation of an innovation development district

Sec. 11. The term of an area's designation as an innovation development district may not exceed thirty (30) years. As added by P.L.135-2022, SEC.28. Amended by P.L.213-2025, SEC.311.

Ind. Code § 36-7-32.5-11.5 Limitation on renewal or extension of existing allocation area; required conditions

Sec. 11.5. Notwithstanding any other law, if the corporation designates territory that is located in an existing allocation area described in section 10(b) of this chapter as an innovation development district, the city, county, town, or other entity that established the applicable existing allocation area may not renew or extend the allocation area until the term of the innovation development district expires. As added by P.L.123-2024, SEC.19.

Ind. Code § 36-7-32.5-12 Agreements; required provisions; conditions applicable to agreement for innovation development district located in existing allocation area; executive session; report

Sec. 12. (a) If the corporation designates a territory within the jurisdiction of a city, town, or county, or within the jurisdiction of more than one (1) city, town, or county, as an innovation development district under section 9(b) or 9(c) of this chapter, the following apply: (1) The executive, or, if applicable, the executives, and the corporation shall enter into an agreement establishing the terms and conditions governing the innovation development district in accordance with this section. (2) If the executive, or, if applicable, the executives, and the corporation cannot enter into an agreement under subdivision (1), the designation of territory under section 9 of this chapter is no longer effective and the innovation development district may not be designated or otherwise established under this chapter. (b) The agreement must include the following provisions: (1) A description of the area, including a list of all parcels to be included within the innovation development district. (2) Covenants and restrictions, if any, upon all or a part of the properties contained within the innovation development district and terms of enforcement of any covenants or restrictions. (3) The due diligence and financial commitments of any party to the agreement and of any owner or developer of property within the innovation development district. (4) The financial projections of the innovation development district. (5) The proposed use of the: (A) net increment; and (B) incremental property tax amount described in section 14(d) of this chapter; that is captured within the innovation development district, including the amount of any funds expected to be allocated to the business or businesses that are locating within the innovation development district as economic development incentives. (6) The aggregate percentage of annual incremental property tax revenue that will be transferred to the city, town, county, or school corporation, or, if applicable, the cities, towns, counties, or school corporations, under section 19(e) of this chapter. The aggregate percentage transferred may not be less than twelve percent (12%) of the annual amount of incremental property tax revenue deposited in the local innovation development district fund established by section 19 of this chapter. (7) Subject to the limitations of this chapter, the duration of the designation of an area as an innovation development district. (8) The terms of enforcement of the agreement, which may include the definition of events of default, cure periods, legal and equitable remedies and rights, and penalties and damages, actual or liquidated, upon the occurrence of an event of default. (9) The public facilities to be developed for the innovation development district and the estimated costs of those public facilities. (c) If an innovation development district will include territory located in an existing allocation area described in section 10(b) of this chapter, the executive, or, if applicable, the executives, and the corporation shall enter into an agreement establishing the terms and conditions governing the innovation development district in accordance with this section. The agreement must include the following provisions: (1) The provisions listed in subsection (b)(1) through (b)(9). (2) A provision prohibiting the city, county, town, or other entity that established the applicable existing allocation area described in section 10(b) of this chapter from incurring any additional obligations that require a pledge of future incremental property tax revenue to be paid from the applicable existing allocation area described in section 10(b) of this chapter without first obtaining the consent of the corporation. (3) A provision requiring the maintenance of all applicable property tax records for the parcel or parcels located within the innovation development district during the term of the innovation development district. If the executive, or, if applicable, the executives, and the corporation cannot enter into an agreement under this subsection, the designation of territory under section 9 of this chapter is no longer effective and the innovation development district may not be designated or otherwise established under this chapter. (d) An executive may discuss the terms of an agreement described in this section and hold a meeting as an executive session under IC 5-14-1.5-6.1 with: (1) in the case of a city other than a consolidated city, the common council; (2) in the case of a consolidated city, or a county having a consolidated city, the city-county council; (3) in the case of a town, the town council; and (4) in the case of a county that does not have a consolidated city, the board of county commissioners. (e) Within fifteen (15) days of entering into an agreement under subsection (a), the corporation shall: (1) submit a written report on the agreement to the budget committee; and (2) provide notification of the designation to the department of state revenue and the department of local government finance. (f) Neither an executive nor the corporation may exercise the power of eminent domain within an innovation development district. As added by P.L.135-2022, SEC.28. Amended by P.L.123-2024, SEC.20; P.L.213-2025, SEC.312.

Ind. Code § 36-7-32.5-13 Allocation area designation

Sec. 13. If an innovation development district is designated, each executive shall designate the innovation development district as an allocation area for purposes of the allocation and distribution of property taxes. Not later than August 1 of the calendar year immediately following the designation, each executive shall: (1) set the base assessed value of the allocation area; and (2) provide notice of the designation and notice of the base assessed value; to the county auditor, the department of local government finance, and to each taxing unit that has authority to levy property taxes in the geographic area where the innovation development district is located. The notice must state the general boundaries of the innovation development district and include the mailing address of all parcels to be included within the innovation development district. As added by P.L.135-2022, SEC.28. Amended by P.L.213-2025, SEC.313.

Ind. Code § 36-7-32.5-14 Allocation of tax proceeds; allocation of excess assessed value; allocation of property tax increment revenue from existing allocation area

Sec. 14. (a) An allocation area designated under section 13 of this chapter must: (1) apply to the entire innovation development district; and (2) require that any property tax assessed on taxable real and personal property used for commercial or industrial purposes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes in the innovation development district be allocated and distributed as provided in subsections (c) and (d). (b) Property tax proceeds may not be allocated under this section before January 1 of the calendar year immediately following the calendar year in which the base assessed value of the allocation area is determined under section 13 of this chapter. (c) Except as otherwise provided in this section: (1) the proceeds of the taxes attributable to the lesser of: (A) the assessed value of the taxable real and personal property for the assessment date with respect to which the allocation and distribution is made; or (B) the base assessed value; shall be allocated and, when collected, paid into the funds of the respective taxing units; and (2) the excess of the proceeds of the property taxes imposed for the assessment date with respect to which the allocation and distribution is made that are attributable to taxes imposed after being approved by the voters in a referendum or local public question conducted after April 30, 2010, not otherwise included in subdivision (1) shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted. (d) Except as provided in subsections (e) and (f), all the property tax proceeds that: (1) exceed those described in subsection (c); and (2) are attributable to the assessed value of taxable real and personal property used for commercial or industrial purposes; shall be paid into the appropriate local innovation development district fund established by section 19 of this chapter by the county auditor at the same time that the county auditor distributes property taxes to other local units of government under IC 6-1.1-27. Any remaining property tax proceeds that exceed those described in subsection (c) that are not described in subdivision (2) shall be allocated and, when collected, paid into the funds of the respective taxing units. (e) Notwithstanding any provision to the contrary in this section, if an innovation development district that is designated as an allocation area under section 13 of this chapter includes territory located in an existing allocation area described in section 10(b) of this chapter, the county auditor shall continue to allocate to the existing allocation area described in section 10(b) of this chapter any incremental property tax revenues that would otherwise be allocated to the existing allocation area described in section 10(b) of this chapter as if the innovation development district had not been designated under this chapter, until the existing allocation area described in section 10(b) of this chapter expires. (f) Notwithstanding any other law, each assessor shall, upon petition of an executive or the corporation, reassess the taxable real and personal property situated upon or in, or added to, the innovation development district effective on the next assessment date after the petition. (g) Notwithstanding any other law, the assessed value of all taxable real and personal property in the innovation development district, for purposes of tax limitation, property tax replacement, and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of: (1) the assessed value of the taxable real and personal property as valued without regard to this section; or (2) the base assessed value. As added by P.L.135-2022, SEC.28. Amended by P.L.123-2024, SEC.21; P.L.213-2025, SEC.314.

Ind. Code § 36-7-32.5-14.5 Financial activity reporting requirements

Sec. 14.5. (a) Not later than April 15 of each year, the corporation and the executive of a county, city, or town in which an innovation development district is designated under section 9 of this chapter shall submit a report setting out the innovation development district's activities during the preceding calendar year to the: (1) fiscal body of the county, city, or town; and (2) department of local government finance in an electronic format. (b) The report required under subsection (a) must include the following information set forth for each innovation development district regarding the previous year: (1) Revenues received. (2) Expenses paid. (3) Fund balances. (4) The amount and maturity date for all outstanding obligations. (5) The amount paid on outstanding obligations. (6) A list of all the parcels and the depreciable personal property of any designated taxpayer included in each tax increment financing district allocation area and the base assessed value and incremental assessed value for each parcel and the depreciable personal property of any designated taxpayer in the list. (7) Amounts distributed to cities, towns, counties, or school corporations as described in section 19(e) of this chapter. As added by P.L.145-2025, SEC.20.

Ind. Code § 36-7-32.5-15 Agreement with taxpayer; exemption of property from taxation

Sec. 15. (a) An executive or the corporation may enter into a written agreement with a taxpayer who owns, or is otherwise obligated to pay property taxes on, tangible property that is or will be located in an allocation area established under this chapter in which the taxpayer waives review of any assessment of the taxpayer's tangible property that is located in the allocation area for an assessment date that occurs during the term of any specified bond or lease obligations that are payable, in whole or in part, from property taxes in accordance with an allocation provision for the allocation area and any applicable statute, ordinance, or resolution. (b) Except as provided in subsection (c), but notwithstanding any other law, an executive or the corporation may exempt from taxation any tangible real property improvements or personal property, or a part of real property improvements or personal property, that: (1) in the case of real property improvements, is assessed as commercial or industrial property under the rules of the department of local government finance; (2) is located within the innovation development district; and (3) was: (A) in the case of real property improvements, constructed; and (B) in the case of personal property, first entered into service; after the date that the innovation development district was designated under section 9 of this chapter. The executive, or the corporation, as applicable, shall notify the county assessor and county auditor of the county in which the real property improvement or personal property is located of an exemption provided under this subsection. An executive who provided an exemption, or the corporation, if the corporation provided the exemption, may terminate the exemption by providing notice to the county assessor and county auditor of the county in which the real property improvement or personal property is located. An exemption, or the termination of an exemption, is effective beginning with the assessment date that immediately follows the date that the notice required under this subsection is provided by the executive or the corporation. (c) An executive and the corporation may not exempt from taxation any real property improvements or personal property described in subsection (b) after any bonds have been issued by the Indiana finance authority under IC 5-1.2-4-4(a)(2) that are payable from revenues deposited in a local innovation development district fund established under section 19 of this chapter as long as the bonds remain outstanding. As added by P.L.135-2022, SEC.28.

Ind. Code § 36-7-32.5-16 Administrative rules; neutralization of effect of reassessment or annual adjustment

Sec. 16. (a) The state board of accounts, the department of state revenue, and the department of local government finance may adopt rules under IC 4-22-2 and prescribe the forms and procedures that the state board of accounts, the department of state revenue, and the department of local government finance consider appropriate for the implementation of an innovation development district under this chapter. However, before adopting rules under this section, the state board of accounts, the department of state revenue, and the department of local government finance shall submit a report to the budget committee that: (1) describes the rules proposed by the state board of accounts, the department of state revenue, and the department of local government finance; and (2) recommends statutory changes necessary to implement the provisions of this chapter. (b) After each reassessment of real property in an area under a county's reassessment plan prepared under IC 6-1.1-4-4.2, the county auditor shall, on forms prescribed by the department of local government finance, adjust the base assessed value one (1) time to neutralize any effect of the reassessment of the real property in the area on the property tax proceeds allocated to the local innovation development district fund established by section 19 of this chapter. (c) After each annual adjustment under IC 6-1.1-4-4.5, the county auditor shall, on forms prescribed by the department of local government finance, adjust the base assessed value to neutralize any effect of the annual adjustment on the property tax proceeds allocated to the local innovation development district fund established by section 19 of this chapter. (d) The county auditor shall, in the manner prescribed by the department of local government finance, submit the forms required by this section to the department of local government finance no later than July 15 of each year. As added by P.L.135-2022, SEC.28. Amended by P.L.157-2026, SEC.262.

Ind. Code § 36-7-32.5-16.5 State gross retail and use tax paid or collected by a contractor; report

Sec. 16.5. (a) A contractor that provides tangible personal property incorporated into real property in a project located in an innovation development district shall maintain records of all state gross retail and use tax paid or collected during a state fiscal year for the tangible personal property incorporated into the real property in projects located in an innovation development district. (b) A contractor may issue an exemption certificate under IC 6-2.5-8-8 to a vendor when purchasing tangible personal property to be incorporated into real property located in an innovation development district. (c) A contractor that issues an exemption certificate to a vendor under subsection (b) is liable for collecting gross retail tax from the customer on the tangible personal property if the contractor uses a time and materials contract, or when accruing and remitting state use tax on the purchase price of the tangible personal property if the contractor uses a lump sum contract. (d) A contractor shall report the following to the department of state revenue, disaggregated by project, annually for each state fiscal year: (1) The amount of state gross retail and use taxes paid or collected by a contractor with respect to tangible personal property incorporated into real property in a project located in an innovation development district. (2) The issuing of any exemption certificates by the contractor under subsection (b). A contractor shall report the information required under this subsection for a state fiscal year not later than the July 31 immediately following the end of the state fiscal year. As added by P.L.201-2023, SEC.276.

Ind. Code § 36-7-32.5-17 Information to department of state revenue

Sec. 17. (a) Except as provided in subsection (b), if an innovation development district is designated under section 9 of this chapter, the corporation shall, not later than August 1 of the calendar year immediately following the designation date, send to the department of state revenue: (1) a certified copy of the designation of the innovation development district under section 9 of this chapter, including the date of the designation; (2) if an agreement is entered into under section 12 of this chapter, a certified copy of the agreement; and (3) a complete list of the employers and businesses that are paying for the services of individuals who are not employees in the innovation development district and each mailing address on each street in the innovation development district. The corporation shall provide, within ten (10) days of a request, any additional information requested by the department of state revenue concerning any information described in subdivisions (1) through (3). (b) The corporation shall update and send the list described in subsection (a)(3) to the department of state revenue before July 1 of each year. As added by P.L.135-2022, SEC.28. Amended by P.L.201-2023, SEC.277; P.L.213-2025, SEC.315.

Ind. Code § 36-7-32.5-18 Determination of gross retail base period amount and income tax base period amount; tax incremental amount calculations; transfer of tax incremental amounts

Sec. 18. (a) Not later than October 1 of the calendar year immediately following the designation date of an innovation development district, the department of state revenue shall set the gross retail base period amount and the income tax base period amount. The department of state revenue may request any information necessary from the corporation and executive, or executives, to determine the gross retail base period amount and the income tax base period amount. Not later than ten (10) days after a request from the department of state revenue, the corporation and executive, or executives, shall provide the necessary information. (b) Revenue collected under the state adjusted gross income taxes and state gross retail and use taxes may not be allocated under this section before January 1 of the year immediately following the year in which the gross retail base period amount and the income tax base period amount are determined under subsection (a). (c) Before the first business day in October of each year, the department of state revenue shall calculate the income tax incremental amount and the gross retail incremental amount for the preceding state fiscal year for each innovation development district designated under this chapter. (d) Taxpayers operating in an innovation development district shall report annually, in the manner and form prescribed by the department of state revenue, information that the department of state revenue determines necessary to calculate the net increment. (e) A taxpayer operating in an innovation development district that files a consolidated tax return with the department of state revenue shall also file annually an informational return with the department of state revenue for each business location of the taxpayer within the innovation development district. (f) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department of state revenue shall use the best information available in calculating the income tax incremental amount and gross retail incremental amount. (g) The department of state revenue shall transfer the amount calculated as provided in subsection (c) to the applicable local innovation development district fund established for the innovation development district under section 19 of this chapter by November 1 of each year. As added by P.L.135-2022, SEC.28. Amended by P.L.213-2025, SEC.316.

Ind. Code § 36-7-32.5-19 Local innovation development district fund; administration; use of money in a fund; transfers from a fund

Sec. 19. (a) The corporation shall establish a local innovation development district fund for each innovation development district designated under section 9 of this chapter. (b) Each fund consists of: (1) deposits of incremental property tax revenue from the county auditor as provided in section 14(d) of this chapter; and (2) transfers from the department of state revenue under section 18 of this chapter. (c) The corporation shall administer each local innovation development district fund established under this section. The expenses of administering each fund shall be paid from money in that fund. (d) The corporation may use money in each fund for the following purposes: (1) The acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of public facilities, including but not limited to utilities and transportation infrastructure. (2) The operation of public facilities. (3) The acquisition of land within the innovation development district. (4) The recruitment of new businesses and new employees to the innovation development district. (5) The training of individuals employed in the innovation development district. (6) The payment of economic development incentives granted by the corporation to businesses located within the boundaries of the innovation development district. (e) Not later than August 1 of each year, the corporation shall transfer an amount of incremental property tax revenues that may not be less than twelve percent (12%) of the annual amount of incremental property tax revenue deposited under subsection (b)(1) to the general fund of each city, town, county, or school corporation with territory located within the innovation development district. If the corporation is required to transfer funds to more than one (1) city, town, county, or school corporation under this subsection, the amount transferred to each city, town, county, and school corporation must be allocated among each city, town, county, and school corporation proportionately based on each city's, town's, county's, and school corporation's property tax levy applied to property located within the innovation development district. A transfer under this subsection does not reduce the actual or maximum permissible levy of a city, town, county, or school corporation and may not be considered in determining a city's, town's, county's, or school corporation's maximum permissible ad valorem property tax levy limit under IC 6-1.1-18.5. (f) Each state fiscal year, the corporation shall, after: (1) making the transfer required under subsection (e); (2) paying all obligations and expenses of the innovation development district in accordance with an agreement entered into under section 12 of this chapter, including payment of any economic development incentives for businesses located within the boundaries of the innovation development district; and (3) satisfying all debt service obligations due and payable during the state fiscal year for bonds issued under IC 5-1.2-4-4(a)(2); transfer from each local innovation development district fund to the economic development reserve account established by section 20.5 of this chapter an amount not to exceed one hundred percent (100%) of the net incremental revenue derived from state income taxes and gross retail taxes deposited into each fund during the immediately preceding state fiscal year. (g) Money in each local innovation development district fund at the end of a state fiscal year does not revert to the state general fund. (h) Money in each local innovation development district fund is continuously appropriated for the purposes specified in this section. As added by P.L.135-2022, SEC.28. Amended by P.L.213-2025, SEC.317.

Ind. Code § 36-7-32.5-20.5 Economic development reserve account

Sec. 20.5. (a) The economic development reserve account is established within the state general fund to support the development and expansion of industry in Indiana. The budget agency shall administer the economic development reserve account. (b) The economic development reserve account consists of the following: (1) Money appropriated to the economic development reserve account by the general assembly. (2) Money transferred to the economic development reserve account under section 19(f) of this chapter. (3) Interest earned on the balance of the economic development reserve account. (c) The treasurer of state shall invest the money in the economic development reserve account not currently needed to meet the obligations of the account in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the economic development reserve account. (d) Money in the economic development reserve account at the end of a state fiscal year does not revert to the state general fund. As added by P.L.213-2025, SEC.319.

Ind. Code § 36-7-32.5-22 Annual report; required information

Sec. 22. The corporation shall provide information on the innovation development district program in its economic incentive and compliance report submitted pursuant to IC 5-28-28-5, and to the budget committee, that includes the following: (1) Metrics established by the corporation to evaluate the effectiveness of the innovation development district in promoting economic growth in the state. (2) The amount and name of each entity for which there is a unfunded obligation at the close of each state fiscal year. (3) A report on each innovation development district designated under this chapter that includes a description of: (A) the general boundaries of the innovation development district; (B) the total acreage encompassed within the innovation development district; (C) the base assessed value of the innovation development district; (D) the gross retail base period amount determined for the innovation development district; (E) the income tax base period amount determined for the innovation development district; (F) the gross assessed value of all tangible real and personal property, without regard to any exemption granted by an executive or the corporation under section 15(b) of this chapter, that is: (i) located within the innovation development district; and (ii) in the case of real property, assessed as commercial or industrial property under the rules of the department of local government finance; in each calendar year after the calendar year in which the innovation development district was designated; (G) the amount of incremental property tax revenue deposited into the local innovation development district fund established by section 19 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (H) the amount of incremental state gross retail and use tax revenue deposited into the local innovation development district fund established by section 19 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (I) the amount of incremental state adjusted gross income tax revenue deposited into the local innovation development district fund established by section 19 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (J) the amount of revenue deposited into the local innovation development district fund established by section 19 of this chapter that was transferred into the economic development reserve account established under section 20.5 of this chapter in each state fiscal year after the state fiscal year in which the innovation development district was designated; (K) the aggregate amount of bonds issued by the Indiana finance authority under IC 5-1.2-4-4(a)(2) to pay for projects within the innovation development district; (L) the annual amount of debt service payments due on the bonds described in clause (K); and (M) a description of all economic development incentives granted by the corporation to businesses located within the innovation development district. As added by P.L.135-2022, SEC.28. Amended by P.L.213-2025, SEC.321.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026

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