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IN HB1405

Bill

Status

Passed

5/5/2019

Primary Sponsor

Edmond Soliday

Click for details

Origin

House of Representatives

2019 Regular Session

AI Summary

Summary of HB 1405 - Data Center Tax Exemptions

  • Counties and municipalities may grant property tax exemptions for enterprise information technology equipment at data centers that invest at least $25 million and pay employees at least 125% of the county average wage.

  • Creates a state sales and use tax exemption for qualified data center equipment, with minimum investment thresholds varying by county population: $150 million (counties over 100,000), $100 million (counties 50,000-100,000), or $25 million (counties under 50,000).

  • Qualified data center users must apply to the Indiana Economic Development Corporation for a specific transaction award certificate and enter into an agreement specifying project details, duration, and annual reporting requirements.

  • Tax exemption certificates are valid for 25 years, or 50 years if the qualified investment reaches $750 million or more.

  • Beginning in 2030 and every 10 years thereafter, the IEDC must submit an economic and fiscal impact study on data center investments to the legislative council.

Legislative Description

Taxation of data centers. Provides that a county or municipal fiscal body may designate an area in which a property tax exemption will be provided for certain enterprise information technology equipment. Provides a state sales and use tax exemption (exemption) for the purchase of certain data center equipment that is located in a data center that results in a minimum qualified investment within five years, ranging from at least $25,000,000 to more than $150,000,000 depending on the population of the county in which the data center is located. Provides that costs that meet the requirement are exempt from the state gross retail tax. Requires a qualified data center user to apply to the Indiana economic development corporation (IEDC) for a specific transaction award certificate (award certificate). Requires a qualified data center user to enter into an agreement with the IEDC as a condition of receiving an award certificate.

Last Action

Public Law 256

5/5/2019

Committee Referrals

Tax and Fiscal Policy3/4/2019
Ways and Means1/14/2019

Full Bill Text

No bill text available