SB 104 Indiana Senate · 2025 Regular Session

Residential tax increment financing.

Summary

Provides, in the case of an allocation provision adopted after June 30, 2025, for a residential housing development program, that the redevelopment commission (commission) shall annually transfer at least 5% of the aggregate allocated tax proceeds from the allocation area to the unit that established the commission. Specifies that the unit must use the revenue for police and fire services that serve the allocation area.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Jan 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 8, 2025 Last action Mar 3, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Senate Bill (H) → Senate Bill (S) · 4 edits

MODERATE

This bill amends Indiana's redevelopment laws to clarify how tax proceeds from residential housing development programs are distributed. The most significant change requires commissions to transfer at least 5% of allocated tax proceeds to the general fund of the unit that established the commission, specifically to help pay for police, fire, and ambulance services within the allocation area. The bill also reorganizes and expands the list of allowable uses for allocation funds, adding new categories for debt service reserves, bond premiums, and reimbursement for local public improvements.

Scope change

The bill shifts the focus from Section 53 to Section 56 of IC 36-7-14, renumbering several subsections and adding new provisions about fund usage.

FISCAL

Added requirement that at least 5% of allocated tax proceeds must be transferred to the general fund to assist with police, fire, and ambulance service costs within the allocation area.

Expanded the list of allowable uses for allocation funds to include debt service reserves, bond redemption premiums, and reimbursement for local public improvements like buildings and parking facilities.

TECHNICAL

Reorganized the bill structure by changing the referenced statute section from 53 to 56 and renumbering subsections, with some text appearing to be merged or restructured.

TIMELINE

Updated the effective date reference in the digest from February 6, 2025 to January 28, 2025, and changed the bill number designation from SB0104.2 to SB0104.1.

Floor votes · Senate Feb 10, 2025

How they voted

46–3

Passed · 1 other

Total votes 50

Feb 10, 2025

D Democratic10

10 Yea

100% Yea

R Republican40

36 Yea 3 Nay 1

90% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 10, 2025

Upper · Passed

Third reading: passed; Roll Call 83: yeas 46, nays 3

upper

Feb 6, 2025

Upper · Passed

Amendment #2 (Niemeyer) prevailed; voice vote

upper

Jan 28, 2025

Upper · Passed

Committee report: do pass, adopted

upper

4 primary · 3 co-sponsors