Bill Text: IN SB0299 | 2010 | Regular Session | Engrossed
Bill Title: Economic development.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Enrolled - Dead) 2010-03-03 - Senator Gard added as advisor [SB0299 Detail]
Download: Indiana-2010-SB0299-Engrossed.html
Citations Affected: IC 5-28; IC 6-1.1; IC 6-3; IC 6-3.1; IC 15-11;
noncode.
Effective: July 1, 2010; January 1, 2011.
(HOUSE SPONSORS _ GRUBB, LEHE)
January 11, 2010, read first time and referred to Committee on Energy and Environmental
Affairs.
January 21, 2010, reported favorably _ Do Pass.
January 25, 2010, read second time, ordered engrossed.
January 26, 2010, engrossed.
January 28, 2010, read third time, passed. Yeas 48, nays 0.
February 2, 2010, read first time and referred to Committee on Agriculture and Rural Development.
February 18, 2010, amended, reported _ Do Pass.
February 22, 2010, read second time, amended, ordered engrossed.
Digest Continued
recipients are subject to a fee imposed by the board. Requires the Indiana department of transportation to update the state's rail plan before January 1, 2012. Changes the name of the E85 fueling station grant fund to the agricultural biomass infrastructure grant fund. Authorizes the department of agriculture to award grants from the agricultural biomass infrastructure grant fund for certain infrastructure used for the production or distribution of biofuels from biomass. Adds certain definitions. Makes changes to the definition of a qualified expense. Requires a utility company to submit an environmental impact statement before being awarded a grant. Provides that the amount for a grant for certain infrastructure used for the production or distribution of biofuels may not exceed the lesser of: (1) 50% of the recipient's qualified investment; or (2) $100,000. Makes related changes.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
Chapter 35. Railroad Redevelopment Zones
Sec. 1. The definitions set forth in IC 5-28-15-1 apply throughout this chapter.
Sec. 2. As used in this chapter, "eligible area" means the geographic corridor along:
(1) a rail line that is the subject of a petition to the Federal Surface Transportation Board for permission to discontinue freight rail service on the rail line or to abandon the rail line;
(2) a rail line over which rail service has been discontinued or abandoned; or
(3) a rail line owned or serviced by a port authority.
Sec. 3. As used in this chapter, "eligible entity" means a business located in an eligible area that commits to using freight rail service on a rail line described in section 2 of this chapter.
Sec. 4. As used in this chapter, "zone business" means an eligible entity that accesses at least one (1) tax credit, deduction, or exemption incentive available under this chapter, IC 6-1.1-45, IC 6-3-2-8, IC 6-3-3-10, IC 6-3.1-7, IC 6-3.1-9, or IC 6-3.1-10.
Sec. 5. As used in this chapter, "zone" means a railroad redevelopment zone designated by the board under section 6 of this chapter.
Sec. 6. (a) The board may designate an eligible area as a railroad redevelopment zone at any time after receiving notice that the rail line through the eligible area is the subject of a petition described in section 2 of this chapter.
(b) Except as provided in section 8 of this chapter, the geographic area of a railroad redevelopment zone designated under this section consists of the territory located within one-fourth (1/4) mile of the rail line for the entire length of the rail line that is the subject of a petition described in section 2 of this chapter.
(c) A railroad redevelopment zone expires ten (10) years after the day on which it is designated by the board.
Sec. 7. The board has the following powers, in addition to other powers that are contained in this article:
(1) To designate railroad redevelopment zones according to the criteria for designation that this chapter provides.
(2) To waive or modify rules as provided in this chapter.
(3) To provide a procedure by which railroad redevelopment zones may be monitored and evaluated on an annual basis.
(4) To adopt rules for the disqualification of a zone business from eligibility for any or all incentives available to zone businesses, if that zone business does not do one (1) of the following:
(A) If all its incentives, as contained in the summary required under section 10 of this chapter, exceed one thousand dollars ($1,000) in any year, pay a registration fee to the board in an amount equal to one percent (1%) of all its incentives.
(B) Use all its incentives, except for the amount of the registration fee, for its property or employees in the zone.
(C) Remain open and operating as a zone business for twelve (12) months of the assessment year for which the incentive is claimed.
(5) To disqualify a zone business from eligibility for any or all incentives available to zone businesses in accordance with the
procedures set forth in the board's rules.
(6) To employ staff and contract for services for the
administration of the railroad redevelopment zone program.
(7) To receive funds from any source and expend the funds for
the administration and promotion of the railroad
redevelopment zone program.
Sec. 8. The board may modify a railroad redevelopment zone
boundary if the board determines that the modification is in the
best interests of the zone.
Sec. 9. An eligible entity or an employee of an eligible entity is
entitled to the benefits provided by the following statutes, as if the
eligible entity were located in an enterprise zone:
(1) IC 6-1.1-45.
(2) IC 6-3-2-8.
(3) IC 6-3-3-10.
(4) IC 6-3.1-7.
(5) IC 6-3.1-9.
(6) IC 6-3.1-10-6.
Sec. 10. (a) Subject to subsections (c) and (d), a zone business
that claims any of the incentives available to zone businesses shall,
by letter postmarked before June 1 of each year:
(1) submit to the board, on a form prescribed by the board, a
verified summary concerning the amount of tax credits and
exemptions claimed by the business in the preceding year; and
(2) pay the amount specified in section 7(4)(A) of this chapter
to the board.
(b) In order to determine the accuracy of the summary
submitted under subsection (a), the board is entitled to obtain
copies of a zone business's tax records directly from the
department of state revenue, the department of local government
finance, or a county official, notwithstanding any other law. A
summary submitted to a board or a record obtained by the board
under this section is confidential. A board member or employee of
the corporation who knowingly or intentionally discloses
information that is confidential under this section commits a Class
A misdemeanor.
(c) The board may grant one (1) extension of the time allowed
to comply with subsection (a). To qualify for an extension, a zone
business must apply to the board by letter postmarked before June
1. The application must be in the form specified by the board. The
extension may not exceed forty-five (45) days under rules adopted
by the board under IC 4-22-2.
(d) If a zone business that did not comply with subsection (a) before June 1 and did not file for an extension under subsection (c) before June 1 complies with subsection (a) before July 16, the amount of the tax credit and exemption incentives for the preceding year that were otherwise available to the zone business because the business was a zone business are waived, unless the zone business pays to the board a penalty of fifteen percent (15%) of the amount of the tax credit and exemption incentives for the preceding year that were otherwise available to the zone business because the business was a zone business. A zone business that pays a penalty under this subsection for a year must pay the penalty to the board before July 16 of that year. The board shall deposit any penalty payments received under this subsection in the railroad development zone fund.
(e) This subsection is in addition to any other sanction imposed by subsection (d) or any other law. If a zone business fails to comply with subsection (a) before July 16 and does not pay any penalty required under subsection (d) by letter postmarked before July 16 of that year, the zone business is:
(1) denied all the tax credit and exemption incentives available to a zone business because the business was a zone business for that year; and
(2) disqualified from further participation in the railroad redevelopment zone program under this chapter until the zone business:
(A) petitions the board for readmission to the railroad redevelopment zone program under this chapter; and
(B) pays a civil penalty of one hundred dollars ($100).
Sec. 11. (a) The railroad redevelopment zone fund is established within the state treasury.
(b) The fund consists of:
(1) the revenue from the registration fee required under section 7(4)(A) of this chapter;
(2) penalties deposited in the fund under section 10 of this chapter; and
(3) appropriations from the general assembly.
(c) The corporation shall administer the fund. The fund may be used to:
(1) pay the expenses of administering the fund;
(2) pay nonrecurring administrative expenses of the railroad redevelopment zone program; and
(3) provide grants for brownfield remediation in railroad
redevelopment zones.
However, money in the fund may not be expended unless it has
been appropriated by the general assembly and allotted by the
budget agency.
(d) The treasurer of state shall invest the money in the 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.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund. The corporation shall develop
appropriate applications and may develop grant allocation
guidelines, without complying with IC 4-22-2, for awarding grants
under this subsection. The grant allocation guidelines must take
into consideration the competitive impact of brownfield
redevelopment plans on existing zone businesses.
Sec. 12. (a) This section applies to records and other
information, including records and information that are otherwise
confidential, maintained by the following:
(1) The board.
(2) The department of state revenue.
(3) The corporation.
(4) The department of local government finance.
(5) A county auditor.
(6) A township assessor (if any).
(7) A county assessor.
(b) A person or an entity listed in subsection (a) may request
another person or entity described in subsection (a) to provide any
records or other information maintained by the second person or
entity that concern an individual or a business that is receiving a
tax deduction, exemption, or credit related to a railroad
redevelopment zone. Notwithstanding any other law, the person or
entity to whom the request is made under this section shall comply
with the request. A person or entity receiving records or
information under this section that are confidential shall also keep
the records or information confidential.
(c) A person or an entity that receives confidential records or
information under this section and knowingly or intentionally
discloses the records or information to an unauthorized person
commits a Class A misdemeanor.
Sec. 13. (a) Any business that substantially reduces or ceases an
operation located in Indiana and outside a railroad redevelopment
zone (referred to as a nonzone operation) in order to relocate in an
Indiana railroad redevelopment zone is disqualified from benefits
or incentives available to zone businesses. Determinations under
this section shall be made by a hearing panel composed of the
chairperson of the board or the chairperson's designee, the
commissioner of the department of state revenue or the
commissioner's designee, and the commissioner of the department
of local government finance or the commissioner's designee. The
panel, after an evidentiary hearing held subsequent to the
relocation of the business, shall submit a recommended order to
the board for its adoption. The recommended order shall be based
on the following criteria and subsection (b):
(1) A site specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or
any activity involving permanent full-time or part-time
employees shall be considered a business operation.
(2) With respect to a nonzone operation, any of the following
that occurs during the twelve (12) months before the
completion of the physical relocation of all or part of the
activity described in subdivision (1) from the nonzone
operation to the enterprise zone as compared with the twelve
(12) months before that twelve (12) months is considered a
substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of:
(i) one hundred (100) employees; or
(ii) twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a business that would
otherwise be disqualified under subsection (a) is eligible for
benefits and incentives available to zone businesses if each of the
following conditions is met:
(1) The business relocates its nonzone operation for any of the
following reasons:
(A) The lease on property necessary for the nonzone
operation has been involuntarily lost through no fault of
the business.
(B) The space available at the location of the nonzone
operation cannot accommodate planned expansion needed
by the business.
(C) The building for the nonzone operation has been
certified as uninhabitable by a state or local building
authority.
(D) The building for the nonzone operation has been totally
destroyed through no fault of the business.
(E) The renovation and construction costs at the location
of the nonzone operation are more than one and one-half
(1 1/2) times the costs of purchase, renovation, and
construction of a facility in the zone, as certified by three
(3) independent estimates.
A business is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nonzone operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the zone. These costs must be
certified by three (3) independent estimates.
(2) The business has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nonzone operation without the consent of the
employees.
(c) The hearing panel shall cause to be delivered to the business
and to any person who testified before the panel in favor of
disqualification of the business a copy of the panel's recommended
order. The business and these persons shall be considered parties
for purposes of this section.
(d) A party who wishes to oppose the board's adoption of the
recommended order of the hearing panel shall, not later than ten
(10) days after the party's receipt of the recommended order, file
written objections with the board. If the objections are filed, the
board shall set the objections for oral argument and give notice to
the parties. A party at its own expense may cause to be filed with
the board a transcript of the oral testimony or any other part of
the record of the proceedings. The oral argument must be on the
record filed with the board. The board may hear additional
evidence or remand the action to the hearing panel with
instructions appropriate to the expeditious and proper disposition
of the action. The board may adopt the recommendations of the
hearing panel, may amend or modify the recommendations, or may
make an order or determination as is proper on the record.
(e) If no objections are filed, the board may adopt the
recommended order without oral argument. If the board does not
adopt the proposed findings of fact and recommended order, the
parties shall be notified and the action shall be set for oral
argument as provided in subsection (d).
(f) The final determination made by the board shall be made by
a majority of the quorum needed for board meetings.
Sec. 14. The state pledges to and agrees with the direct recipient
of any railroad redevelopment zone incentive under this chapter
that the state will not limit or alter the rights vested in the board to
fulfill the terms of any agreements it makes with those recipients
or in any way impair the rights and remedies of those recipients
until the terms of the incentive are fulfilled. The board may include
this pledge and agreement of the state in any agreement it makes
with the recipient.
(1) In the case of an individual employed in an enterprise zone, the individual must do the following:
(A) Maintain the employee's principal place of residence in the enterprise zone in which the employee is employed.
business; or
(B) (ii) the activities of the nonprofit entity, the state, the
political subdivision, or the United States government;
that is located in an enterprise zone. and
(3) performs (C) Perform at least fifty percent (50%) of the
employee's service for the taxpayer or employer during the
taxable year in the enterprise zone.
(2) In the case of an individual employed in a railroad
redevelopment zone, the individual must do the following:
(A) Perform services for an eligible entity (as defined by
IC 5-28-35-3), ninety percent (90%) of which are directly
related to the conduct of the eligible entity's trade or
business that is located in a railroad redevelopment zone.
(B) Perform at least fifty percent (50%) of the individual's
service for the eligible entity (as defined by IC 5-28-35-3)
during the taxable year in the railroad redevelopment
zone.
(b) Except as provided in subsection (c), a qualified employee is
entitled to a deduction from the employee's adjusted gross income in
each taxable year in the amount of the lesser of:
(1) one-half (1/2) of the employee's adjusted gross income for the
taxable year that the employee earns as a qualified employee; or
(2) seven thousand five hundred dollars ($7,500).
(c) No qualified employee is entitled to a deduction under this
section for a taxable year that begins after the termination of the:
(1) enterprise zone in which the employee resides; or
(2) railroad redevelopment zone in which the eligible entity
employing the qualified employee is located.
"Enterprise zone" means an enterprise zone created under IC 5-28-15 or a railroad redevelopment zone created under
IC 5-28-35.
"Pass through entity" means a:
(1) corporation that is exempt from the adjusted gross income tax
under IC 6-3-2-2.8(2);
(2) partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
"Qualified loan" means a loan made to an entity that uses the loan
proceeds for:
(1) a purpose that is directly related to a business located in an
enterprise zone;
(2) an improvement that increases the assessed value of real
property located in an enterprise zone; or
(3) rehabilitation, repair, or improvement of a residence.
"State tax liability" means a taxpayer's total tax liability that is
incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 27-1-18-2 (the insurance premiums tax); and
(3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter.
"Taxpayer" means any person, corporation, limited liability
company, partnership, or other entity that has any state tax liability.
The term includes a pass through entity.
(b) As used in this chapter, "business firm" means any business entity authorized to do business in the state of Indiana that has state tax liability.
(c) As used in this chapter, "community services" means any type of:
(1) counseling and advice;
(2) emergency assistance;
(3) medical care;
(4) recreational facilities;
(5) housing facilities; or
(6) economic development assistance;
provided to individuals, economically disadvantaged households, groups, or neighborhood organizations in an economically disadvantaged area.
(d) As used in this chapter, "crime prevention" means any activity which aids in the reduction of crime in an economically disadvantaged area or an economically disadvantaged household.
(e) As used in this chapter, "economically disadvantaged area" means an enterprise zone, or any other federally or locally designated economically disadvantaged area in Indiana. The certification shall be made on the basis of current indices of social and economic conditions, which shall include but not be limited to the median per capita income of the area in relation to the median per capita income of the state or standard metropolitan statistical area in which the area is located.
(f) As used in this chapter, "economically disadvantaged household" means a household with an annual income that is at or below eighty percent (80%) of the area median income or any other federally designated target population.
(g) As used in this chapter, "education" means any type of scholastic instruction or scholarship assistance to an individual who resides in an economically disadvantaged area that enables the individual to prepare for better life opportunities.
(h) As used in this chapter, "enterprise zone" means an enterprise zone created under IC 5-28-15 or a railroad redevelopment zone created under IC 5-28-35.
(i) As used in this chapter, "job training" means any type of instruction to an individual who resides in:
(1) an economically disadvantaged area; or
(2) an economically disadvantaged household;
that enables the individual to acquire vocational skills so that the individual can become employable or be able to seek a higher grade of employment.
(j) As used in this chapter, "neighborhood assistance" means either:
(1) furnishing financial assistance, labor, material, and technical advice to aid in the physical or economic improvement of any part or all of an economically disadvantaged area; or
(2) furnishing technical advice to promote higher employment in any neighborhood in Indiana.
(k) As used in this chapter, "neighborhood organization" means any organization, including but not limited to a nonprofit development corporation doing both of the following:
(1) Performing community services:
(A) in an economically disadvantaged area; or
(B) for an economically disadvantaged household.
(2) Holding a ruling:
(A) from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code; and
(B) from the department of state revenue that the organization is exempt from income taxation under IC 6-2.5-5-21.
(l) As used in this chapter, "person" means any individual subject to Indiana gross or adjusted gross income tax.
(m) As used in this chapter, "state fiscal year" means a twelve (12) month period beginning on July 1 and ending on June 30.
(n) As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
(2) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
(o) As used in this chapter, "tax credit" means a deduction from any tax otherwise due and payable under IC 6-3 or IC 6-5.5.
(1) Provide administrative and staff support for the following:
(A) The state fair board for purposes of carrying out the director's duties under IC 15-13-5.
(B) The Indiana corn marketing council for purposes of administering the duties of the director under IC 15-15-12.
(C) The Indiana organic peer review panel under IC 15-15-8.
(D) The Indiana dairy industry development board for purposes of administering the duties of the director under IC 15-18-5.
(E) The Indiana land resources council under IC 15-12-5.
(F) The Indiana grain buyers and warehouse licensing agency under IC 26-3-7.
(G) The Indiana grain indemnity corporation under IC 26-4-3.
(H) The division.
(I) The
(2) Administer the election of state fair board members under IC 15-13-5.
(3) Administer state programs and laws promoting agricultural trade.
(4) Administer state livestock or agriculture marketing grant programs.
(5) Administer economic development efforts for agriculture by doing the following:
(A) Promoting value added agricultural resources.
(B) Marketing Indiana agriculture to businesses internationally.
(C) Assisting Indiana agricultural businesses with developing partnerships with the Indiana economic development corporation.
(D) Soliciting private funding for selective economic development and trade initiatives.
(E) Providing for the orderly economic development and growth of Indiana's agricultural economy.
(F) Facilitating the use of biomass (as defined in IC 15-11-11-0.7) and algae production systems to generate renewable energy.
(1) Agricultural crops.
(2) Agricultural wastes and residues.
(3) Wood and wood byproducts, including the following:
(A) Wood residue.
(B) Forest thinning.
(C) Mill residue wood.
(4) Animal wastes.
(5) Animal byproducts.
(6) Aquatic plants.
(7) Algae.
The term does not include biomass used in direct-fired (direct combustion) or co-firing systems.
(1) have a common access to a public highway; and
(2) are or would appear to the reasonable
(1) an individual;
(2) an agricultural producer;
(3) a partnership;
(4) a corporation;
(5) a limited liability company; or
(6) an unincorporated association.
(1) after June 30, 2007, to do either of the following:
remove petroleum sludge and other contaminants; or
(2) after December 31, 2009, for the installation of a
renewable energy system infrastructure that uses commercial
technologies to produce or distribute biofuels. It does not
include a cost or expense for:
(A) research and development;
(B) land acquisition;
(C) agricultural tillage equipment;
(D) salaries; or
(E) other noninfrastructure purposes determined ineligible
by the department.
(1) makes a qualified investment and
(2) places a qualified investment in service in Indiana for the production or distribution of biofuels.
(b) A recipient of a grant awarded under this chapter must comply with any guidelines developed by the department and the office of energy and defense development.
(c) The department may not award more than one (1) grant under this chapter for a:
(1) renewable fuel compatible fueling station at a location; or
(2) project.
(d) Before the department may award a grant under subsection (a)(2) to a utility company, the utility company must submit an environmental impact statement to the department.
(b) The amount of a grant awarded under this chapter for a renewable fuel compatible fueling station at a location may not exceed the lesser of the following:
(1) The amount of the grant recipient's qualified investment for
the location.
(2) Twenty thousand dollars ($20,000).
(c) A grant awarded under this chapter for a project must be
awarded on a competitive basis and may not exceed the lesser of:
(1) fifty percent (50%) of the grant recipient's qualified
investment for the project; or
(2) one hundred thousand dollars ($100,000).
(c) (d) The amount of a grant awarded under this chapter for a
location or project may be less than the amount of the grant recipient's
qualified investment for the location or project.
(b) The fund consists of appropriations from the general assembly.
(c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
(d) Money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund to be used exclusively for purposes of this chapter.
(e) Money in the fund is continuously appropriated for the purposes of this chapter.
(b) This SECTION expires January 1, 2013.
(b) IC 6-3-3-10.5, as added by this act, applies to taxable years beginning after December 31, 2010.
(c) IC 6-3-2-8, IC 6-3.1-7-1, IC 6-3.1-9-1, and IC 6-3.1-10-1, each as amended by this act, apply to taxable years beginning after December 31, 2010.
(d) This SECTION expires January 1, 2012.
