HB 1406 changesTax and fiscal matters.

What changed

+32 / −211 words · LargeConfidence: high

This bill significantly expands transparency and oversight requirements for the Indiana Economic Development Corporation (IEDC) while modifying property tax assessment rules and exemptions. The legislation imposes new multi-layered reporting obligations on the IEDC for land transactions, including 30-day advance notice to local governments for purchases exceeding 100 acres and mandatory reporting of all land transactions to the budget committee within 30 days of closing. It establishes aggregate annual caps on tax credits the IEDC may certify—$250 million through fiscal year 2025, then $300 million annually thereafter (with $50 million earmarked for community projects)—and creates restrictions preventing awards to entities organized, headquartered, or majority-owned by foreign adversaries as defined by federal regulation. On the property tax side, the bill establishes a 30% floor on assessed values for depreciable personal property placed in service by January 1, 2025, preventing assessments from falling below this threshold, while expanding property tax exemptions for buildings used by qualifying organizations and educational institutions. The legislation includes sunset provisions, attestation requirements under penalty of perjury, and authority for the IEDC to revoke credits and require repayment when determinations are materially false.

Change log

• APPENDIX

  removedhigh confidence

  Committee reports and procedural amendments removed from appendix

  The appendix containing committee reports and proposed amendments has been removed entirely. This appendix previously documented procedural history, including the House Ways and Means Committee's recommendation to add subsection (q) requiring county treasurers to indicate on 2027 property tax statements whether homestead tax liability decreased from 2026, and the Senate Tax and Fiscal Policy Committee's amendments regarding when treasurers must mail statements for exempt properties. The removal appears to be administrative cleanup of procedural documentation that is no longer needed in the final bill text.

• APPENDIX >cont.

  removedhigh confidence

  Technical/conforming change

  This section contained procedural committee language regarding the bill's passage and vote count. The removal of this boilerplate committee reporting language is a technical document preparation change with no substantive effect on the law.

• SECTION 1 > (b)

  addedhigh confidence

  New 30-day notice requirement to county commissioners (and mayor if applicable) before corporation purchases over 100 acres

  This section creates a new notification requirement for a corporation purchasing land totaling more than 100 acres in a county. The corporation must provide written notice to the county's board of commissioners at least 30 days before closing, whether the acreage is acquired in a single transaction or across multiple transactions. If the land is located within a city, the corporation must also notify the city's mayor in writing within the same 30-day timeframe.