STATEHOUSE – State Representative Tom Dermody (R-LaPorte) has authored a bill to allow municipalities to renew enterprise zones that are set to expire. These zones are an important tool which local governments can use to help spur economic development and investment in areas impacted by blighted properties or in need of renovation. Tuesday, the bill was passed unanimously by the Indiana House of Representatives and will now go to the Senate for further consideration and debate.
Throughout the years, enterprise zones have helped municipalities promote economic development by offering certain incentives, such as income tax deductions and credits for employment creation to list a few. House Bill (HB) 1541 would allow the fiscal body of a municipality to adopt a resolution renewing an enterprise zone for an additional five years after it is set to expire.
“Even though enterprise zones could reduce state revenue, the loss is more than compensated by the creation of jobs and reinvestment in communities across Indiana,” said Rep. Dermody. “In our own community of LaPorte, we have witnessed firsthand the benefits of enterprise zones, with more jobs staying in Indiana as opposed to crossing the border into Michigan.”
HB 1541 also extends the length of time in which new municipal enterprise zones may be added. Under current law, new enterprise zones may not be added after Dec. 31, 2015. However, this legislation extends that by five years to Dec. 31, 2020. The legislation also provides that all enterprise zones must be phased out by Dec. 31, 2030.
For more information on HB 1541, please visit iga.in.gov.