Menu
Attracting more business to Indiana legislators’ goal
Competing for new business prospects with the likes of Texas, Tennessee and Ohio, the state of Indiana is trying to streamline the process, state legislators representing Putnam County said Saturday morning.
Speaking at the Legislative Update program at the Farm Bureau Insurance office, District 44 State Rep. Beau Baird (R-Greencastle) and State Sen. Rodric Bray (R-Martinsville) expressed their hopes for SB 361, which is currently undergoing scrutiny by the Senate Ways and Means Committee.
The economic development bill makes amendments to the Hoosier business investment tax credit, the economic development for a growing economy tax credit, the headquarters relocation tax credit, and the redevelopment tax credit beginning July 1, 2023.
“We continually have to stay competitive,” offered Baird, a member of the House Ways and Means Committee.
He added that while it used to take six to nine months to woo an industrial client to Indiana, other states are getting things done in six to nine weeks.
“Our tools aren’t really in place to get that done as quickly,” Baird said, adding that legislators are “working on how to get a mechanism in there to make it fast and efficient and compete with those other states.
“The bill and intent are good,” Rep. Baird added, “but we have to make sure there are safeguards in place.”
As written, it allows the Indiana Economic Development Corporation (IEDC) to designate an area as a district and enter into an agreement for the terms and conditions of the district. It also provides that the IEDC may make grants, loans or investments from the fund for specified purposes and limits the total amount of credits it may award for a calendar year for all taxpayers for all applicable tax credits to $400 million. Subject to review by the budget committee, the IEDC may award an additional $200 million.
However, there is no restriction on where tax dollars may go, and Baird said the bill will not make it out of committee without addressing that.
Bray agreed with Baird’s assessment of the bill.
“The Midwest is really, really competitive,” State Senate President Pro Tempore Bray said. “We are seeing a number of industries kind of new to the market that might be lucrative for years to come, like (computer) chips and car batteries.”
Greencastle Mayor Bill Dory said the bill is really designed for billion-dollar projects of 800 to 2,000 acres that the state would like to reel in.
“It’s not really for what we see around west-central Indiana,” Dory assured.
The mayor’s attention has been more focused on HB 1002, which would alter the business personal property tax and consequently affect the revenue of cities like Greencastle.
“Don’t leave us local units of government out in the cold,” Dory implored legislators Saturday, urging that the business personal property tax not be eliminated without significant reimbursement to municipalities via another means.
State Sen. John Crane (R-Avon) was unavailable for Saturday’s more than 90-minute program moderated by Farm Bureau President Steve Cash.
Although it was initially announced that three Legislative Update sessions would be staged this year, the third event has been canceled with the Legislature expected to adjourn before the scheduled date.