r65 - Koch Tax Incentive Oversight Bill Passes Senate; State and Local Tax Breaks Would be Regularly Evaluated (2/27/2014)

Thursday, February 27, 2014

Start Date: 2/27/2014 Start Time: 4:30 PM
End Date: 2/27/2014 End Time: 4:30 PM
STATEHOUSE – House Bill (HB) 1020, the Indiana Economic Development Tax Incentives Evaluation Act, authored by State Representative Eric Koch (R-Bedford), passed out of the Senate today with a vote of 41-8. HB 1020 would require state and local tax incentives to be subject to regular review and evaluation. The bill would require the Commission on State Tax and Financing Policy (CSTFP) to review, analyze and evaluate state and local tax incentives that are provided to encourage economic development or to alter, reward or subsidize a particular action or behavior by a tax incentive recipient.


“This bill will provide state and local policymakers the information necessary to decide whether to continue, modify or repeal economic development incentives based upon real data and independent analysis,” said Rep. Koch.


HB 1020 requires the CSTFP to complete a comprehensive review of all state and local tax incentives over a five-year period beginning in the 2014 interim and requires the non-partisan Legislative Services Agency to conduct the evaluation and analysis of each incentive scheduled for review by the CSTFP.   The five-year incentive review would cover exemptions, deductions, credits, preferential rates and other tax benefits that:


(1) reduce the amount of a tax that would otherwise be due the state; 
(2) result in a tax refund in excess of any tax due; or 
(3) reduce the amount of property taxes that would otherwise be due to a political subdivision of the state. 


The review would include programs under which political subdivisions dedicate revenue to provide improvements or to retire bonds issued to pay for improvements in an economic or sports development area, a community revitalization area, an enterprise zone or a tax increment financing district.  


“I appreciate the support my bill has received in both chambers,” said Rep. Koch. “This bill is a great step towards more transparency and accountability.” 


Sen. Brandt Hershman (R-Buck Creek) sponsored the bill in the Senate. 


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Rep. Koch serves all or parts of Brown, Lawrence, Monroe, Jackson and Johnson counties. 

Koch NR - 1020 passes Senate.docx