[r59] Local communities gain additional economic development tools (2/14/2011)

STATEHOUSE - Rep. Milo Smith (R-Columbus) co-authored House Bill 1007, which provides additional economic development tools for local communities. This bill increases local flexibility and efficiency in encouraging economic growth.

At Thursday's session, House Bill 1007 received bipartisan support and passed unanimously out of the House. The bill will now move to the Senate for discussion.

"This bill will help Indiana attract new businesses and encourage economic expansion. Any bill that allows for investments to be made within our communities is a positive thing," said Rep. Smith.  "By giving locals these necessary tools, they will be able to promote economic development within their communities and continue to strengthen Indiana's economy."

The majority of incentives for businesses are provided on the local level, but current budget constraints limit local governments the ability to create new programs and provide additional dollars for economic development. House Bill 1007 addresses these constraints.

The main provisions introduced in this bill are:
. Provides individual counties the option to exempt personal property from the property tax
. Exempts new investment in personal property,
. Reduces the age limit for the property tax deduction for rehabilitated property from 50 years to 25 years, to enhance abatement schedules,
. Removes sunset date on the ability of municipalities to exempt enterprise information technology,
. Allows municipalities to utilize a point system to enhance abatement schedules for both new and existing businesses,
. Calls for municipalities to pay hiring incentives for new employment.

This bill closely follows the Indiana House Republicans' "Strengthen Indiana Plan," which called for providing local communities with the tools they need to promote job creation.