HEA 1020 Summary

• Adds new Chapter 3.2 to Indiana Code establishing a systematic review and evaluation process for all state and local tax incentives, effective July 1, 2014.

• Defines "tax incentive" to include exemptions, deductions, credits, preferential rates, and revenue dedications that reduce taxes or encourage economic development in designated areas.

• Requires the Commission on State Tax and Financing Policy to conduct regular reviews of tax incentives and submit annual reports to the legislative council by November 1 each year, beginning November 1, 2014, with recommendations on whether incentives should be continued, modified, or terminated.

• Mandates the Legislative Services Agency to analyze tax incentives using comprehensive criteria including return on investment, cost-benefit analysis, job creation estimates, administrative costs, economic impact, and comparison with other states' incentives.

• Requires all tax incentives be reviewed at least once every five years according to a multi-year schedule published on the General Assembly website, with the statute expiring December 31, 2023.