IN SB0401

Amends Indiana Code Section 6-1.1-20.6-9.8 to clarify how property tax circuit breaker credits affect fund allocations for school corporations and other political subdivisions.

Defines "protected taxes" as property taxes exempt from tax credits under sections 7 and 7.5, and "unprotected taxes" as those subject to credit reductions.

Requires that revenue losses from property tax credits reduce only unprotected taxes distributed to funds, while protected tax revenue remains unchanged, except for taxes used for debt service obligations.

Amends Section 6-1.1-20.6-9.9 to make permanent the proportional credit allocation option for eligible school corporations with at least 10% credits against their transportation fund levy for 2014 and beyond (removing the prior expiration after 2016).

Allows certified eligible school corporations to allocate credit effects proportionately among all non-exempt property tax funds based on levy amounts, without applying protected tax requirements.