Ind. Code ch. 6-3.6-10

Ind. Code § 6-3.6-10-1 Scope of chapter

Sec. 1. This chapter is not an exhaustive list of the purposes for which revenue raised under IC 6-3.6-6 may be expended. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-10-2 Economic development purposes; use of revenue

Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029. Sec. 2. A county, city, or town may use revenue allocated for economic development purposes under IC 6-3.6-6-9 for any combination of the following purposes: (1) To pay all or a part of the interest owed by a private developer or user on a loan extended by a financial institution or other lender to the developer or user if the proceeds of the loan are or are to be used to finance an economic development project. (2) For the retirement of bonds for economic development projects. (3) For leases or for leases or bonds entered into or issued before the date the county economic development income tax (IC 6-3.5-7 repealed) was imposed if the purpose of the lease or bonds would have qualified as a purpose under this article at the time the lease was entered into or the bonds were issued. (4) The construction or acquisition of, or remedial action with respect to, a capital project for which the unit is empowered to issue general obligation bonds or establish a fund under any statute listed in IC 6-1.1-18.5-9.8. (5) The retirement of bonds issued under any provision of Indiana law for a capital project. (6) The payment of lease rentals under any statute for a capital project. (7) Contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects. (8) Operating expenses of a governmental entity that plans or implements economic development projects. (9) Funding of a revolving fund established under IC 5-1-14-14. (10) For a regional venture capital fund or a local venture capital fund. (11) For any lawful purpose for which money in any of its other funds may be used. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.23.

Ind. Code § 6-3.6-10-2 Economic development purposes; use of revenue

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. Sec. 2. A county, city, or town may use revenue allocated for economic development purposes under IC 6-3.6-6 for any combination of the following purposes: (1) To pay all or a part of the interest owed by a private developer or user on a loan extended by a financial institution or other lender to the developer or user if the proceeds of the loan are or are to be used to finance an economic development project. (2) For the retirement of bonds for economic development projects. (3) For leases or for leases or bonds entered into or issued before the date the county economic development income tax (IC 6-3.5-7 repealed) was imposed if the purpose of the lease or bonds would have qualified as a purpose under this article at the time the lease was entered into or the bonds were issued. (4) The construction or acquisition of, or remedial action with respect to, a capital project for which the unit is empowered to issue general obligation bonds or establish a fund under any statute listed in IC 6-1.1-18.5-9.8. (5) The retirement of bonds issued under any provision of Indiana law for a capital project. (6) The payment of lease rentals under any statute for a capital project. (7) Contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects. (8) Operating expenses of a governmental entity that plans or implements economic development projects. (9) Funding of a revolving fund established under IC 5-1-14-14. (10) For a regional venture capital fund or a local venture capital fund. (11) For any lawful purpose for which money in any of its other funds may be used. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.23; P.L.68-2025, SEC.174.

Ind. Code § 6-3.6-10-3 Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly

Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029. Sec. 3. (a) The fiscal body of a county, city, or town may issue bonds payable from revenue under IC 6-3.6-6. The bonds must be for economic development projects. (b) The fiscal body of a county, city, or town may issue bonds payable from revenue described in section 2 of this chapter for any capital project for which the fiscal body is authorized to issue general obligation bonds. The bonds issued under this section may be payable from the tax if the county option income tax (IC 6-3.5-6 repealed), the county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax under IC 6-3.6-6 is also in effect in the county at the time the bonds are issued. (c) If there are bonds outstanding that have been issued under this section, or leases in effect under section 4 of this chapter, the adopting body may not reduce the tax imposed under IC 6-3.6-6, or an allocation under IC 6-3.6-6-9, or certified shares pledged to repay bonds, as appropriate, below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service on the bonds to their final maturity, plus the highest annual lease payments, unless: (1) the body that imposed a tax under IC 6-3.6-6; or (2) any city, town, or county; pledges all or a part of its certified shares for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments. (d) For purposes of subsection (c), the determination of a tax rate sufficient to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments must be based on an average of the immediately preceding three (3) years tax collections, if the tax has been imposed for the last preceding three (3) years. If the tax has not been imposed for the last preceding three (3) years, the body that imposed the tax may not reduce the rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service, plus the highest annual lease payments, based upon a study by a qualified public accountant or financial advisor. (e) IC 6-1.1-20 does not apply to the issuance of bonds under this section. (f) Bonds issued under this section may be sold at a public sale in accordance with IC 5-1-11 or may be sold at a negotiated sale. (g) After a sale of bonds under this section, the county auditor shall prepare a debt service schedule for the bonds. (h) The general assembly covenants that it will not repeal or amend this article in a manner that would adversely affect owners of outstanding bonds issued, or payment of any lease rentals due, under this section. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-10-3 Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. Sec. 3. (a) The fiscal body of a county, city, or town may issue bonds payable from revenue under IC 6-3.6-6. The bonds must be for economic development projects. (b) The fiscal body of a county, city, or town may issue bonds payable from revenue described in section 2 of this chapter for any capital project for which the fiscal body is authorized to issue general obligation bonds. The bonds issued under this section may be payable from the tax if the county option income tax (IC 6-3.5-6 repealed), the county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax under IC 6-3.6-6 is also in effect in the county at the time the bonds are issued. (c) If there are bonds outstanding that have been issued under this section, or leases in effect under section 4 of this chapter, the adopting body may not reduce the tax imposed under IC 6-3.6-6, or an allocation under IC 6-3.6-6, or general purpose revenue pledged to repay bonds, as appropriate, below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service on the bonds to their final maturity, plus the highest annual lease payments, unless: (1) the body that imposed a tax under IC 6-3.6-6; or (2) any city, town, or county; pledges all or a part of its general purpose revenue for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments. (d) For purposes of subsection (c), the determination of a tax rate sufficient to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments must be based on an average of the immediately preceding three (3) years tax collections, if the tax has been imposed for the last preceding three (3) years. If the tax has not been imposed for the last preceding three (3) years, the body that imposed the tax may not reduce the rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service, plus the highest annual lease payments, based upon a study by a qualified public accountant or financial advisor. (e) IC 6-1.1-20 does not apply to the issuance of bonds under this section. (f) Bonds issued under this section may be sold at a public sale in accordance with IC 5-1-11 or may be sold at a negotiated sale. (g) After a sale of bonds under this section, the county auditor shall prepare a debt service schedule for the bonds. (h) The general assembly covenants that it will not repeal or amend this article in a manner that would adversely affect owners of outstanding bonds issued, or payment of any lease rentals due, under this section. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.175.

Ind. Code § 6-3.6-10-4 Lease of property for economic development projects; procedures; public hearing; findings; sale of leased facility under option to buy

Sec. 4. (a) A county, city, or town may enter into a lease with a leasing body (as defined in IC 5-1-1-1) of any property that could be financed with the proceeds of bonds issued under this chapter with a lessor for a term not to exceed fifty (50) years, and the lease may provide for payments from revenues described in section 2 of this chapter, any other revenue available to the unit, or any combination of these sources. (b) A lease may provide that payments by the unit to the lessor are required only to the extent and only for the period that the lessor is able to provide the leased facilities in accordance with the lease. The terms of each lease must be based upon the value of the facilities leased and may not create a debt of the unit for purposes of the Constitution of the State of Indiana. (c) A lease may be entered into by the executive of the unit only after a public hearing at which all interested parties are provided the opportunity to be heard. After the public hearing, the executive may approve the execution of the lease on behalf of the unit if the executive finds that the service to be provided throughout the term of the lease will serve the public purpose of the unit and is in the best interests of its residents. Any lease approved by the executive must also be approved by an ordinance of the fiscal body of the unit. (d) Upon execution of a lease providing for payments by the unit in whole or in part from revenues described in section 2 of this chapter and upon approval of the lease by the unit's fiscal body, the executive of the unit shall publish notice of the execution of the lease and its approval in accordance with IC 5-3-1. (e) Except as provided in this section, no approvals of any governmental body or agency are required before the unit enters into a lease under this section. (f) An action to contest the validity of the lease under this section or to enjoin the performance of any of its terms and conditions must be brought within thirty (30) days after the publication of the notice of the execution and approval of the lease. (g) If a unit exercises an option to buy a leased facility from a lessor, the unit may subsequently sell the leased facility, without regard to any other statute, to the lessor at the end of the lease term at a price set forth in the lease or at fair market value established at the time of the sale by the executive of the unit through auction, appraisal, or arms length negotiation. If the facility is sold at auction, after appraisal, or through negotiation, the unit shall conduct a hearing after public notice in accordance with IC 5-3-1 before the sale. Any action to contest the sale must be brought within fifteen (15) days of the hearing. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-10-5 Issuance and sale of obligations of civil taxing unit or lessor

Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029. Sec. 5. Notwithstanding any other law, if a civil taxing unit desires to issue obligations, or enter into leases, payable wholly or in part by the taxes imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5), the obligations of the civil taxing unit or any lessor may be sold at public sale in accordance with IC 5-1-11 or at negotiated sale. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-10-5 Issuance and sale of obligations of civil taxing unit or lessor

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. Sec. 5. Notwithstanding any other law and subject to IC 6-3.6-6-18(b), if a civil taxing unit desires to issue obligations, or enter into leases, payable wholly or in part by the taxes imposed under IC 6-3.6-6 or IC 6-3.6-7, the obligations of the civil taxing unit or any lessor may be sold at public sale in accordance with IC 5-1-11 or at negotiated sale. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.176.

Ind. Code § 6-3.6-10-6 Pledge of revenues; enforceability; covenant by the general assembly

Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029. Sec. 6. (a) A pledge of revenues from a tax imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5) is enforceable in accordance with IC 5-1-14. (b) With respect to obligations for which a pledge has been made under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5), the general assembly covenants with the county and the purchasers or owners of those obligations that this article will not be repealed or amended in any manner that will adversely affect the tax collected under this article as long as the principal of or interest on those obligations is unpaid. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-10-6 Pledge of revenues; enforceability; covenant by the general assembly

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. Sec. 6. (a) A pledge of revenues from a tax imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its expiration) is enforceable in accordance with IC 5-1-14. (b) With respect to obligations for which a pledge has been made under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its expiration), the general assembly covenants with the county and the purchasers or owners of those obligations that this article will not be repealed or amended in any manner that will adversely affect the tax collected under this article as long as the principal of or interest on those obligations is unpaid. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.177.

Ind. Code § 6-3.6-10-7 Regional venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; interlocal agreement; administration of the fund

Sec. 7. (a) The general assembly finds that counties and municipalities in Indiana have a need to foster economic development, the development of new technology, and industrial and commercial growth. The general assembly finds that it is necessary and proper to provide an alternative method for counties and municipalities to foster the following: (1) Economic development. (2) The development of new technology. (3) Industrial and commercial growth. (4) Employment opportunities. (5) The diversification of industry and commerce. The fostering of economic development and the development of new technology under this section or section 8 of this chapter for the benefit of the general public, including industrial and commercial enterprises, is a public purpose. (b) The fiscal bodies of two (2) or more counties or municipalities may, by resolution, do the following: (1) Determine that part or all of the revenue described in section 2 of this chapter should be combined to foster: (A) economic development; (B) the development of new technology; and (C) industrial and commercial growth. (2) Establish a regional venture capital fund. (c) Each unit participating in a regional venture capital fund established under subsection (b) may deposit the following in the fund: (1) Revenues described in section 2 of this chapter. (2) The proceeds of public or private grants. (d) A regional venture capital fund shall be administered by a governing board. The expenses of administering the fund shall be paid from money in the fund. The governing board shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited into the fund. The fund is subject to audit by the state board of accounts under IC 5-11-1. The fund must bear the full costs of the audit. (e) The fiscal body of each participating unit shall approve an interlocal agreement created under IC 36-1-7 establishing the terms for the administration of the regional venture capital fund. The terms must include the following: (1) The membership of the governing board. (2) The amount of each unit's contribution to the fund. (3) The procedures and criteria under which the governing board may loan or grant money from the fund. (4) The procedures for the dissolution of the fund and for the distribution of money remaining in the fund at the time of the dissolution. (f) An interlocal agreement made by the participating units under subsection (e) must provide that: (1) each of the participating units is represented by at least one (1) member of the governing board; and (2) the membership of the governing board is established on a bipartisan basis so that the number of the members of the governing board who are members of one (1) political party may not exceed the number of members of the governing board required to establish a quorum. (g) A majority of the governing board constitutes a quorum, and the concurrence of a majority of the governing board is necessary to authorize any action. (h) An interlocal agreement made by the participating units under subsection (e) must be submitted to the Indiana economic development corporation for approval before the participating units may contribute to the fund. (i) A majority of members of a governing board of a regional venture capital fund established under this section must have at least five (5) years of experience in business, finance, or venture capital. (j) The governing board of the fund may loan or grant money from the fund to a private or public entity if the governing board finds that the loan or grant will be used by the borrower or grantee for at least one (1) of the following economic development purposes: (1) To promote significant employment opportunities for the residents of the units participating in the regional venture capital fund. (2) To attract a major new business enterprise to a participating unit. (3) To develop, retain, or expand a significant business enterprise in a participating unit. (k) The expenditures of a borrower or grantee of money from a regional venture capital fund that are considered to be for an economic development purpose include expenditures for any of the following: (1) Research and development of technology. (2) Job training and education. (3) Acquisition of property interests. (4) Infrastructure improvements. (5) New buildings or structures. (6) Rehabilitation, renovation, or enlargement of buildings or structures. (7) Machinery, equipment, and furnishings. (8) Funding small business development with respect to: (A) prototype products or processes; (B) marketing studies to determine the feasibility of new products or processes; or (C) business plans for the development and production of new products or processes. As added by P.L.243-2015, SEC.10. Amended by P.L.188-2016, SEC.7; P.L.197-2016, SEC.68; P.L.85-2017, SEC.28.

Ind. Code § 6-3.6-10-8 Local venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; administration of the fund

Sec. 8. (a) The fiscal body of a county or municipality may, by resolution, establish a local venture capital fund. (b) A unit establishing a local venture capital fund under subsection (a) may deposit the following in the fund: (1) Revenues described in section 2 of this chapter. (2) The proceeds of public or private grants. (c) A local venture capital fund shall be administered by a governing board. The expenses of administering the fund shall be paid from money in the fund. The governing board shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited into the fund. The fund is subject to audit by the state board of accounts under IC 5-11-1. The fund must bear the full costs of the audit. (d) The fiscal body of a unit establishing a local venture capital fund under subsection (a) shall establish the terms for the administration of the local venture capital fund. The terms must include the following: (1) The membership of the governing board. (2) The amount of the unit's contribution to the fund. (3) The procedures and criteria under which the governing board may loan or grant money from the fund. (4) The procedures for the dissolution of the fund and for the distribution of money remaining in the fund at the time of the dissolution. (e) A unit establishing a local venture capital fund under subsection (a) must be represented by at least one (1) member of the governing board. (f) The membership of the governing board must be established on a bipartisan basis so that the number of the members of the governing board who are members of one (1) political party may not exceed the number of members of the governing board required to establish a quorum. (g) A majority of the governing board constitutes a quorum, and the concurrence of a majority of the governing board is necessary to authorize any action. (h) The terms established under subsection (d) for the administration of the local venture capital fund must be submitted to the Indiana economic development corporation for approval before a unit may contribute to the fund. (i) A majority of members of a governing board of a local venture capital fund established under this section must have at least five (5) years of experience in business, finance, or venture capital. (j) The governing board of the fund may loan or grant money from the fund to a private or public entity if the governing board finds that the loan or grant will be used by the borrower or grantee for at least one (1) of the following economic development purposes: (1) To promote significant employment opportunities for the residents of the unit establishing the local venture capital fund. (2) To attract a major new business enterprise to the unit. (3) To develop, retain, or expand a significant business enterprise in the unit. (k) The expenditures of a borrower or grantee of money from a local venture capital fund that are considered to be for an economic development purpose include expenditures for any of the following: (1) Research and development of technology. (2) Job training and education. (3) Acquisition of property interests. (4) Infrastructure improvements. (5) New buildings or structures. (6) Rehabilitation, renovation, or enlargement of buildings or structures. (7) Machinery, equipment, and furnishings. (8) Funding small business development with respect to: (A) prototype products or processes; (B) marketing studies to determine the feasibility of new products or processes; or (C) business plans for the development and production of new products or processes. As added by P.L.243-2015, SEC.10. Amended by P.L.188-2016, SEC.8.

Ind. Code § 6-3.6-10-9 Limitations on bonds, leases, or other obligations incurred after May 9, 2025

Sec. 9. (a) Notwithstanding any other law, for bonds, leases, or any other obligations incurred after May 9, 2025, a county, city, town, and any other taxing unit may not pledge for payment from tax revenue received under this article an amount that exceeds an amount equal to twenty-five percent (25%) of the taxing unit's certified distribution under this article. (b) This section expires July 1, 2028. As added by P.L.68-2025, SEC.178. Amended by P.L.157-2026, SEC.148.