Indiana legislation · 2026 Regular Session
Indiana HB1397: Redevelopment tax credits.
Status: In committee, January 13, 2026
Provides that $50,000,000 of the $300,000,000 of the Indiana economic development corporation's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that the purpose of the initiative is to undertake qualified community projects within local government units that have a project budget of at least $15,000,000 per project to do the following: (1) Advance historic preservation. (2) Redevelop or rehabilitate distressed buildings or underutilized property. (3) Redevelop or rehabilitate sites where distressed buildings once stood. Allows a redevelopment tax credit for: (1) a for-profit taxpayer undertaking a qualified community project under the initiative equal to 20% of the taxpayer's cost of the project; and (2) a nonprofit taxpayer undertaking a qualified community project under the initiative equal to 30% of the taxpayer's cost of the project. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Provides for certain items that are included in a nonprofit taxpayer's qualified investment.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning taxation.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 5-28-6-9, AS AMENDED BY P.L.213-2025, SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 9. (a) Subject to subsection (c), the aggregate amount of applicable tax credits that the corporation may certify: (1) for each state fiscal year ending on or before June 30, 2025, for all taxpayers is two hundred fifty million dollars ($250,000,000); and (2) for each state fiscal year ending on or after July 1, 2025, for all taxpayers is three hundred million dollars ($300,000,000), fifty million dollars ($50,000,000) of which must be allocated to fund qualified community projects within local government units under IC 6-3.1-34-24. Each certification under this subdivision is subject to budget committee review. (b) For purposes of determining the amount of applicable tax credits that have been certified for a state fiscal year, the following apply: (1) An applicable tax credit is considered awarded in the state fiscal year in which the taxpayer can first claim the credit, 2026 IN 1397--LS 6495/DI determined without regard to any carryforward period or carryback period. (2) An applicable tax credit awarded by the corporation before July 1, 2022, shall be counted toward the aggregate credit limitation under this section. (3) If an accelerated credit is awarded under …
Sponsors
- Lopez, Danny (R) · primary sponsor
- Craig Snow (R, HD-022)
- Lori Goss-Reaves (R, HD-031)
Latest actions
- : Representative Goss-Reaves added as coauthor
- : Representative Snow added as coauthor
- : Authored by Representative Lopez
- : First reading: referred to Committee on Ways and Means
Subjects: STATE GOVERNMENT; History, Culture, and Preservation, BOARDS, COMMISSIONS, AND COUNCILS; Newly Created, CITIES AND TOWNS; Generally, TAXES; Credits, AGENCIES; Economic Development Corporation (IEDC)
Common questions
- What is HB1397?
- HB1397 is a bill in the Indiana Legislature (2026 Regular Session): Redevelopment tax credits.
- What does HB1397 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning taxation.
- What is the status of HB1397?
- In committee as of January 13, 2026. Latest action: Representative Goss-Reaves added as coauthor (January 13, 2026).
- Who sponsored HB1397?
- Lopez, Danny (R), with 2 co-sponsors.
- Where is the official record for HB1397?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1397
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.