LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7048 NOTE PREPARED: Dec 30, 2020
BILL NUMBER: SB 216 BILL AMENDED:
SUBJECT: EDGE Tax Credits.
FIRST AUTHOR: Sen. Holdman BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill amends the definition of "incremental income tax withholdings" for
purposes of the Economic Development for a Growing Economy (EDGE) tax credit to accommodate
nonresident employees. It provides that, for purposes of the EDGE tax credit, the term "new employee"
includes a full-time employee who resides outside Indiana.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Indiana Economic Development Corporation (IEDC): The IEDC
would incur additional administrative costs in implementing changes to the tax credit established by the bill.
The additional costs would be within the IEDC’s existing resources.
Explanation of State Revenues: The bill applies to tax credits awarded beginning FY 2022. The bill
expands the definition of a “new employee” within the context of the EDGE tax credit to include full-time
employees who are Indiana nonresidents. (Current law includes Indiana nonresident employees in the
definition of “incremental income tax withholdings” but the IEDC has discretion in recognizing those
individuals.) The amended definition of “incremental income tax withholdings” explicitly utilizes the
expanded definition of “new employee,” which removes the IEDC’s discretion in the inclusion of those new
Indiana nonresident employees.
This change could potentially increase the number of credits awarded and claimed. The EDGE credit can be
used to offset tax liabilities for Individual Adjusted Gross Income (AGI), Corporate AGI, Insurance
Premiums Taxes, Nonprofit Agricultural Organization Health Coverage Tax, and Financial Institutions Tax.
EDGE credits reduce the amount of revenue deposited into the state General Fund equal to the amount of
SB 216 1
credits claimed. However, the fiscal impact of the bill is indeterminable.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Economic Development Corporation.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Olivia Smith, 317-232-9869.
SB 216 2


Statutes affected:
1. Introduced Senate Bill (S): 6-3.1-13-5