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 7064 NOTE PREPARED: Dec 30, 2020
BILL NUMBER: HB 1218 BILL AMENDED:
SUBJECT: Certified Technology Parks.
FIRST AUTHOR: Rep. Heine BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill increases, from $100,000 to $250,000, the annual additional incremental
income tax deposit amount that a certified technology park captures once it has reached its limit on deposits.
It clarifies the calculation of the additional incremental income tax deposit amount in the year in which a
certified technology park reaches its limit on deposits.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Department of State Revenue (DOR): The DOR will incur additional
expenses to compute additional incremental tax distributions. The DOR’s current level of staff and resources
should be sufficient to implement the provisions within the bill.
Explanation of State Revenues: The bill increases the annual additional revenue capture limit from
$100,000 to $250,000. The additional revenue is comprised of only the incremental state and local income
tax captures. The bill may decrease revenue to the state General Fund by an additional $1.3 M to $2.0 M each
year beginning in FY 2022.
Additional Information - The CTP program was created to help businesses involved in high technology to
locate in Indiana and facilitate job creation by these businesses. CTPs are authorized to capture incremental
revenue from sales tax, state income tax, and local income tax. Each CTP has a lifetime limit of $5 M in
revenue the CTP can acquire, with an annual additional revenue capture limit of $100,000 after reaching the
$5 M cap. As of December 2019, 22 CTPs were certified by the IEDC and 14 had reached the lifetime
revenue capture limit.
HB 1218 1
Explanation of Local Expenditures:
Explanation of Local Revenues: Changing the CTP tax capture limits will increase the amount of local
income tax (LIT) revenue distributed to the CTPs. The total estimated increase in LIT captured by all CTPs
statewide is approximately $0.5 M to $0.7 M each year beginning in FY 2022.
State Agencies Affected: Department of State Revenue.
Local Agencies Affected: Certified Technology Parks.
Information Sources: Department of State Revenue; Office of Fiscal and Management Analysis, 2017 Tax
Incentive Evaluation; Indiana Economic Development Corporation,
https://iedc.in.gov/programs/certified-technology-parks/home.
Fiscal Analyst: Olivia Smith, 317-232-9869.
HB 1218 2


Statutes affected:
1. Introduced House Bill (H): 36-7-32-22