SB 4 changesVarious fiscal matters.

What changed

+624 / −850 words · LargeConfidence: high

This version of SB 4 substantially narrows the bill's scope by removing entire policy frameworks and oversight mechanisms. The changes eliminate multi-million dollar tax credit caps and budget committee review requirements, delete UAS test site administration provisions, remove foreign adversary restrictions on corporate certifications, and strip out land transaction notification and reporting requirements for a state corporation. Most significantly, the bill removes a $300 million annual tax credit cap (with a $15 million community project set-aside) and a separate $250 million cap for earlier fiscal years, eliminating legislative oversight procedures that required budget committee review of certifications. The removal of preamble text that described approximately two dozen distinct provisions suggests either wholesale restructuring of the bill or abandonment of numerous policy initiatives spanning taxation, economic development, healthcare, education, and technology infrastructure.

Change log

• PREAMBLE >cont.

  removedhigh confidence

  Entire preamble continuation removed

  The continuation of the bill's preamble, which outlined various tax, budget, and administrative provisions, has been removed in its entirety. The removed text described approximately a dozen distinct policy items including court fee studies, hospital property tax exemptions, community mental health center reporting, library budget review thresholds, food and beverage taxes, and economic development tax credits. No replacement text appears in the AFTER version.

• PREAMBLE >cont.

  removedhigh confidence

  Entire preamble continuation removed

  The continuation portion of the bill's preamble has been entirely removed. This section previously described various provisions including venture capital investment tax credit specifications, SNAP benefit theft prevention technology requirements, Medicaid waiver asset limit amendments, technology park certification expansions, student transfer count-day rules, and administrative rule publication thresholds. The removal of this preamble text does not necessarily indicate removal of the underlying substantive provisions, as preambles typically summarize rather than enact legislative changes.

• SECTION 6 > (2)

  removedhigh confidence

  Removal of 'foreign adversary' headquarters criterion

  This section previously established a criterion related to entities headquartered in a country classified as a foreign adversary. The entire provision has been removed from the statute. No replacement language appears in the provided text.

• PREAMBLE >cont.

  removedhigh confidence

  Data center study and reporting requirement removed from bill

  The bill originally required the Indiana finance authority to conduct a study on data centers and submit a report by November 1, 2026 to the interim study committee on fiscal policy. This requirement has been removed entirely from the bill. The removal eliminates both the study mandate and the November 2026 reporting deadline.

• SECTION 4 > (b)

  removedhigh confidence

  Notification requirement for corporation land purchases exceeding 100 acres eliminated

  The provision requiring a corporation to notify county commissioners (and city mayors, if applicable) at least 30 days before purchasing land totaling more than 100 acres has been removed. This notification requirement applied whether the acreage was acquired in a single transaction or through multiple transactions. No replacement language appears in the AFTER text.

• SECTION 4 > (c)

  removedhigh confidence

  Requirement to notify budget committee of land-related notices eliminated

  This section previously required the corporation to provide a copy of certain land-related notices to the budget committee at the same time it notified the affected county or municipality. The entire notification requirement to the budget committee has been removed, while the underlying notice to counties and municipalities (referenced in subsection (b)) remains in effect.

• SECTION 4 > (d)

  removedhigh confidence

  Eliminated 30-day reporting requirement to budget committee for corporation land purchases/sales

  This section previously required the corporation to submit a report to the budget committee within 30 days after closing any land purchase or sale, regardless of acreage. The entire reporting requirement has been removed. No replacement reporting mechanism is evident in the diff.

• SECTION 4 > (1)

  removedhigh confidence

  Requirement to specify location and address of land removed

  This section previously required the location and address of land to be provided. The entire provision has been deleted from the bill. No replacement language appears in the diff.

• SECTION 4 > (2)

  removedhigh confidence

  Requirement to describe land and improvements removed

  The provision requiring a general description of the land, including any improvements located on the land, has been eliminated. This removes a disclosure or documentation requirement, though the broader context of what this pertains to is not evident from this section alone.

• SECTION 4 > (3)

  removedhigh confidence

  Requirement to include total purchase/sale price in disclosure removed

  This section previously required disclosure of the total price of a purchase or sale, including both land and improvements. The entire provision has been removed from the statute, eliminating this specific disclosure requirement.

• SECTION 4 > (4)

  removedhigh confidence

  Requirement to report price per acre eliminated

  This section previously required reporting of the price paid or received per acre for transactions. The entire provision has been removed from the bill. No replacement language appears to have been substituted.

• SECTION 5 > (1)

  removedhigh confidence

  Removes $250 million aggregate cap on tax credits for fiscal years ending on or before June 30, 2025

  This section previously established an aggregate limit of $250,000,000 for all taxpayers on certain tax credits for each state fiscal year ending on or before June 30, 2025. The removal of this provision eliminates this cap, though the context of what tax credits are affected is not provided in the isolated section text.

• SECTION 5 > (2)

  removedhigh confidence

  Removes $300M annual tax credit cap with $15M community project set-aside and budget committee review requirements

  This section eliminated an annual $300 million aggregate cap on tax credits for all taxpayers for fiscal years ending on or after July 1, 2025. The removed provision required $15 million of that cap to be allocated specifically to qualified community projects within local government units. It also eliminated mandatory budget committee review procedures for certifications, which previously required review after the first calendar quarter following an award (between February 1 and May 1, 2026) and at subsequent budget committee meetings after April 30, 2026.

• SECTION 5 > (b)

  removedmedium confidence

  Subsection (b) regarding tax credit certification determination deleted

  This subsection, which established rules for determining the amount of applicable tax credits certified for a state fiscal year, has been removed entirely. The deletion eliminates whatever procedural framework existed in subsection (b) for calculating certified tax credit amounts. Without the full text of what followed "the following apply," the specific mechanisms being removed cannot be detailed.

• SECTION 5 > (1)

  removedhigh confidence

  Definition of when tax credit is 'awarded' removed

  The provision defining when an applicable tax credit is considered awarded has been deleted. Previously, a tax credit was deemed awarded in the state fiscal year when the taxpayer could first claim it, regardless of any carryforward or carryback periods. This definition no longer appears in the statute.

• SECTION 5 > (2)

  removedhigh confidence

  Removal of provision counting pre-July 1, 2022 tax credits toward aggregate limitation

  This section eliminates a provision that required tax credits awarded by the corporation before July 1, 2022, to be counted toward an aggregate credit limitation. The removal means these earlier credits will no longer count against the cap, potentially freeing up capacity under the aggregate limitation for other credits. This appears to be a cleanup provision removing outdated transitional language now that sufficient time has passed since the 2022 date.

• SECTION 5 > (3)

  removedhigh confidence

  Removed aggregate credit limitation calculation rule for accelerated credits

  This section eliminates a provision that specified how accelerated credits awarded under IC 6-3.1-26-15 should be counted toward an aggregate credit limitation. Previously, when such accelerated credits were awarded, they were counted at their full taxable year amount before any discount was applied. The removal of this counting methodology may affect how credits are tracked against state fiscal year limitations.

• SECTION 5 > (c)

  removedmedium confidence

  Subsection (c) entirely removed

  The entire subsection (c) has been deleted from SECTION 5. This subsection previously contained provisions beginning with 'Notwithstanding subsection (a), if the corporation determines that:', but the complete text of what followed is not provided in the diff. Without the full text, the specific provisions that were removed cannot be characterized further.

• SECTION 5 > (1)

  removedmedium confidence

  Provision regarding tax credit certification in state fiscal year removed

  This section previously contained a clause stating that "an applicable tax credit should be certified in a state fiscal year." The entire provision has been removed from the bill. Without additional context about the surrounding provisions, this appears to be part of a broader restructuring of tax credit certification requirements.

• SECTION 5 > (2)

  removedhigh confidence

  Provision allowing corporation to certify tax credits exceeding annual cap after budget committee review removed

  This section removes language that previously permitted the corporation to certify applicable tax credits to taxpayers even when doing so would exceed the state fiscal year's maximum credit amount, provided the budget committee had reviewed the certification. The removal eliminates this exception mechanism for exceeding the annual cap.

• SECTION 5 > (d)

  removedhigh confidence

  Expiration date of December 31, 2032 removed

  This section previously contained a sunset provision stating the section would expire on December 31, 2032. That expiration date has been removed entirely, meaning the section will now continue indefinitely unless a future legislative action establishes a new termination date.

• SECTION 6 > (b)

  removedmedium confidence

  Eligibility restriction for corporate tax credit certification removed

  This section previously prohibited the corporation from certifying an applicable tax credit to a taxpayer under certain unspecified conditions (the sentence was incomplete in the provided text). The entire subsection has been removed, eliminating whatever eligibility restriction it imposed. Without the complete original text, the specific nature of the restriction cannot be determined, but the removal suggests broader eligibility for the tax credit.

• SECTION 6 > (1)

  removedhigh confidence

  Provision regarding organizations under foreign adversary laws removed

  This section, which previously referenced organizations formed under the laws of a country that is a foreign adversary, has been entirely removed from the bill. The removal eliminates whatever requirements or restrictions applied to entities organized under foreign adversary nations' laws. No replacement text was provided.

• SECTION 6 > (3)

  removedhigh confidence

  Foreign adversary ownership definition removed

  This section previously defined a category of entities that were majority owned by an organization that is an agency or instrumentality of a foreign adversary, or organized/headquartered under a foreign adversary. The entire provision has been deleted from the bill.

• SECTION 6 > (c)

  removedhigh confidence

  Requirement removed for applicants to affirm under perjury they are not prohibited from certification

  This section previously required the corporation to ensure that applicants affirm, under penalties of perjury, that they are not prohibited from certification under subsection (b). The entire provision is now removed, eliminating this affirmation requirement.

• SECTION 6 > (d)

  removedhigh confidence

  Removed provision authorizing corporation to act on materially false certifications

  This section previously established what actions the corporation must take upon determining that a certification is materially false. The entire subsection has been deleted, eliminating any specified consequences or procedures for handling false certifications under this section.

• SECTION 6 > (1)

  removedmedium confidence

  Technical/conforming change

  This subsection (1) has been removed from SECTION 6. Without additional context about the surrounding provisions or the complete bill structure, this appears to be a technical deletion, likely part of a larger restructuring of the section's enumeration or consolidation of provisions.

• SECTION 6 > (2)

  removedmedium confidence

  Removal of repayment requirement provision

  A provision that required repayment of any benefit received has been removed. Without additional context about what benefits this applies to or under what circumstances repayment was required, the practical impact cannot be fully determined from this isolated text. This deletion eliminates whatever repayment obligation previously existed under this subsection.

• SECTION 7 > (1)

  removedhigh confidence

  Removal of FAA UAS test site designation statement

  This section, which stated that the FAA announced on January 8, 2026, that Indiana is designated as a test site for unmanned aircraft systems (UAS), has been removed from the bill. The removal eliminates this factual statement about Indiana's UAS test site designation without replacement.

• SECTION 7 > (2)

  removedhigh confidence

  FAA note on test sites for UAS technology assessment removed

  This section eliminates a legislative finding that described the Federal Aviation Administration's perspective on UAS (unmanned aircraft system) test sites. The removed text had explained that these test sites help assess emerging technologies for cargo delivery, operations beyond visual line of sight, and multiple simultaneous UAS operations while advancing safety, security, and integration into the national airspace system.

• SECTION 7 > (3)

  removedhigh confidence

  Deleted provision describing Indiana's competitive test site designation and contract relationship

  This subsection, which described Indiana's designation as a test site through a competitive process against other states, has been removed. The deleted text explained that the designation resulted from a joint application between the corporation and the operating partner, and that the proposal was developed under a contract between these parties to pursue similar federal programs. No replacement language appears in the AFTER text.

• SECTION 7 > (4)

  removedhigh confidence

  Entire subsection addressing FAA test site reporting requirements and federal-state regulatory coordination deleted

  This subsection, which explained the rationale for avoiding duplicative federal and state regulatory schemes for the FAA UAS Test Site Program, has been removed in its entirety. The removed text included definitions for FAA, operating partner, test site, and UAS, as well as provisions exempting the corporation and operating partner from certain state laws while the test site remains subject to federal requirements. No replacement language appears in the bill for this section.

• SECTION 7 > (1)

  removedmedium confidence

  Subsection on state procurement requirements removed

  This subsection, which previously contained or referenced state procurement requirements, has been deleted from the bill. Without the full text of what was contained under this heading, the specific procurement provisions that were removed cannot be detailed. This appears to be a structural change removing an entire subsection from Section 7.

• SECTION 7 > (2)

  removedmedium confidence

  State contracting requirements subsection removed

  This section, which previously contained or referenced state contracting requirements, has been entirely removed from the bill. Without the underlying text of subsection (2), the specific contracting provisions that were eliminated cannot be detailed. This removal may indicate that state contracting requirements are being relocated elsewhere, rendered obsolete, or superseded by other provisions.

• SECTION 7 > (3)

  removedhigh confidence

  Separate bank account requirement for operating partner eliminated

  This section previously required the operating partner to establish and maintain a separate, segregated bank account exclusively for administering all test site funds. The entire provision governing this state fee setting requirement has been removed from the statute.

• SECTION 7 > (b)

  removedhigh confidence

  Operating partner authority to administer test site income and receipts eliminated

  This section removed the operating partner's authority to administer and deposit income, earnings, and receipts from operating a test site. Previously, the operating partner could deposit all such receipts, including state or federal funding received through contracts, grants, or loans, into a bank account. The removal eliminates this specific financial management authorization.

• SECTION 7 > (c)

  removedhigh confidence

  Eliminated operating partner's authority to expend and transfer test site funds

  This section previously authorized an operating partner to spend money from a bank account for test site operations, including administration, staffing, equipment, activities, communications, and marketing. It also permitted the operating partner to transfer revenue to the corporation or other state agencies for specified purposes. The entire subsection has been removed, eliminating these expenditure and transfer authorities.

• SECTION 7 > (1)

  removedhigh confidence

  Eliminates provision authorizing procurement of UAS technology for state use

  This section, which previously authorized the procurement of Unmanned Aircraft System (UAS) technology for use by the state, has been removed entirely. No replacement language was provided for this procurement authority.

• SECTION 7 > (2)

  removedhigh confidence

  Duty to pursue federal funding for UAS activities removed

  A provision requiring the pursuit of federal funding for unmanned aircraft system (UAS) activities that benefit the state has been deleted. No replacement language appears in the revised text. This removes an explicit directive related to federal grant-seeking for drone-related programs.

• SECTION 7 > (3)

  removedhigh confidence

  Elimination of economic development support provision for UAS research/manufacturing

  This section removes authorization to support economic development activities related to unmanned aircraft systems (UAS) research or manufacturing. The provision previously allowed such support but has been deleted entirely from the statute.