January 17, 2001, read first time and referred to Committee on Ways and Means.
First Regular Session 112th General Assembly (2001)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type
, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type
. Also, the
will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type
this style type
between statutes enacted by the 2000 General Assembly.
HOUSE BILL No. 2130
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-6.1-3; (01)IN2130.1.1. -->
, AS AMENDED BY P.L.204-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2001]: Sec. 3. (a) The board may designate up to ten (10)
enterprise zones, in addition to any enterprise zones which the federal
government may designate in the state. After January 1, 1988, the
board may by seven (7) affirmative votes increase the number of
enterprise zones above ten (10), but it may add no more than two (2)
new zones each year and may not add any new zones after December
There may be no more than one (1) enterprise zone in
(b) After approval by resolution of the legislative body, the
executive of any municipality that is not an included town under
may submit one (1) application to the enterprise zone
board to have one (1) portion of the municipality designated as an
enterprise zone. If an application is denied, the executive may submit
a new application. The board by rule shall provide application
(c) The board shall evaluate an enterprise zone application, if it
finds that the following threshold criteria exist in a proposed zone:
(1) A poverty level in which twenty-five percent (25%) of the
households in the zone are below the poverty level as established
by the most recent United States census or an average rate of
unemployment for the most recent eighteen (18) month period for
which data is available that is at least one and one-half (1 1/2)
times the average statewide rate of unemployment for the same
eighteen (18) month period.
(2) A population of more than two thousand (2,000) but less than
ten thousand five hundred (10,500).
(3) An area of more than three-fourths (3/4) square mile but less
than four (4) square miles, with a continuous boundary (using
natural, street, or highway barriers when possible) entirely within
the applicant municipality. However, if the zone includes a parcel
of property that:
(A) is owned by the municipality; and
(B) has an area of twenty-five (25) acres or more;
the area of the zone may be increased above the four (4) square
mile limitation by an amount not to exceed the area of the
municipally owned parcel.
(4) Property suitable for the development of a mix of commercial,
industrial, and residential activities.
(5) The appointment of an urban enterprise association that meets
the requirements of section 4 of this chapter.
(6) A statement by the applicant indicating its willingness to
provide certain specified economic development incentives.
(d) If an applicant has met the threshold criteria of subsection (c),
the board shall evaluate the application, arrive at a decision based on
the following factors, and either designate a zone or reject the
(1) Level of poverty, unemployment, and general distress of the
area in comparison to other applicant and nonapplicant
municipalities and the expression of need for an enterprise zone
over and above the threshold criteria contained in subsection (c).
(2) Evidence of support for designation by residents, businesses,
and private organizations in the proposed zone, and the
demonstration of a willingness among those zone constituents to
participate in zone area revitalization.
(3) Efforts by the applicant municipality to reduce the
impediments to development in the zone area where necessary,
including but not limited to the following:
(A) A procedure for streamlining local government regulations
and permit procedures.
(B) Crime prevention activities involving zone residents.
(C) A plan for infrastructure improvements capable of
supporting increased development activity.
(4) Significant efforts to encourage the reuse of existing zone
structures in new development activities to preserve the existing
character of the neighborhood, where appropriate.
(5) The proposed managerial structure of the zone and the
capacity of the urban enterprise association to carry out the goals
and purposes of this chapter.
(e) An enterprise zone expires ten (10) years from the day on which
it is designated by the board. The two (2) year period immediately
before the day on which it expires is the phase-out period. During the
phase-out period, the board may review the success of the enterprise
zone based upon the following criteria and may, with the consent of the
budget committee, renew the zone, including all provisions of this
chapter, for a period of five (5) years:
(1) Increases in capital investment in the zone.
(2) Retention of jobs and creation of jobs in the zone.
(3) Increases in employment opportunities for residents of the
(f) If an enterprise zone is renewed under subsection (e), the two (2)
year period immediately before the date on which the zone expires is
another phase-out period. During the phase-out period, the board may
review the success of the enterprise zone based upon the criteria set
forth in subsection (e) and, with the consent of the budget committee,
may again renew the zone, including all provisions of this chapter, for
a final period of five (5) years. The zone may not be renewed after the
expiration of this final five (5) year period.
(g) Notwithstanding any other provision of this chapter, one (1) or
more units (as defined in
) may declare all or any part of
a military base or other military installation that is inactive, closed, or
scheduled for closure as an enterprise zone. Such a declaration shall be
made by a resolution of the legislative body of the unit that contains the
geographic area being declared an enterprise zone. The legislative body
must include in the resolution that an urban enterprise association is
created or designate another entity to function as the urban enterprise
association under this chapter. The resolution must also be approved
by the executive of the unit. If the resolution is approved, the executive
shall file the resolution and the executive's approval with the board. If
an entity other than an urban enterprise association is designated to
function as an urban enterprise association, the entity's acceptance must
be filed with the board along with the resolution. The enterprise zone
designation is effective on the first day of the month following the date
the resolution is filed with the board. Establishment of an enterprise
zone under this subsection is not subject to the limit of two (2) new
enterprise zones each year under subsection (a).
(h) The enterprise zone board may not approve the enlargement of
an enterprise zone's geographic boundaries unless the area to be
enlarged meets the criteria of economic distress set forth in subsection
SOURCE: IC 6-3-2-8; (01)IN2130.1.2. -->
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002]: Sec. 8. (a) For purposes of this
section, "qualified employee" means an individual who is employed by
an employer exempt from adjusted gross income tax
(IC 6-3-1 through
(5), a nonprofit entity, the state, a political
subdivision of the state, or the United States government
(1) has the employee's principal place of residence in the
enterprise zone in which the employee is employed;
(2) performs services for the taxpayer,
nonprofit entity, the state, the political subdivision, or the
United States government,
ninety percent (90%) of which are
directly related to:
the conduct of the taxpayer's or employer's trade or
(B) the activities of the nonprofit entity, the state, the
political subdivision, or the United States government;
that is located in an enterprise zone; and
(3) performs at least fifty percent (50%) of the employee's service
for the taxpayer or employer during the taxable year in the
(b) For purposes of this section, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(4) limited liability company; or
(5) limited liability partnership.
(c) For purposes of this section, "taxpayer" includes a pass
Except as provided in subsection
employee is entitled to a
deduction from his adjusted gross income in
each taxable year in the amount of the lesser of:
(1) one-half (1/2) of his adjusted gross income for the taxable year
that he earns as a qualified employee; or
(2) seven thousand five hundred dollars ($7,500).
(c) (e) No qualified employee is entitled to a deduction under this
section for a taxable year that begins after the termination of the
enterprise zone in which he resides.