Ind. Code § 5-1.2-16-1 Purpose
Sec. 1. The purpose of this chapter is to allocate the volume cap under Section 146 of the Internal Revenue Code.
As added by P.L.189-2018, SEC.25.
Ind. Code ch. 5-1.2-16
Ind. Code ch. 5-1.2-16
in effectInd. Code § 5-1.2-16-2 Alternative allocation formula
Sec. 2. (a) The allocation formula established by Section 146(b) and Section 146(c) of the Internal Revenue Code for the volume cap established for Indiana is supplanted under the authority granted by Section 146(e) of the Internal Revenue Code.
(b) All amounts of the volume cap are annually allocated to the state. Thereafter all amounts of the volume cap are assigned from the state to other issuers as provided in this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-3 Categories
Sec. 3. (a) The volume cap shall be allocated annually among categories of bonds in accordance with section 4 of this chapter. Those categories are as follows:
(1) Bonds issued by the authority.
(2) Bonds issued by the IHCDA.
(3) Bonds issued by the ISMEL.
(4) Bonds issued by local units or any other issuers not specifically referred to in this section whose bonds are or may become subject to the volume cap for projects described in:
(A) Division A - Agricultural, Forestry, and Fishing;
(B) Division B - Mining;
(C) Division C - Construction;
(D) Division D - Manufacturing;
(E) Division E - Transportation; and
(F) Division F - Wholesale Trade;
of the SIC Manual (or corresponding sector in the NAICS Manual), and any projects described in Section 142(a)(3), 142(a)(4), 142(a)(5), 142(a)(6), 142(a)(8), 142(a)(9), or 142(a)(10) of the Internal Revenue Code.
(5) Bonds issued by local units or any other issuers not specifically referred to in this section whose bonds are or may become subject to the volume cap for projects described in:
(A) Division G - Retail Trade;
(B) Division H - Finance, Insurance, and Real Estate;
(C) Division I - Services;
(D) Division J - Public Administration; and
(E) Division K - Miscellaneous;
of the SIC Manual (or corresponding sector in the NAICS Manual), and any projects described in Section 142(a)(7) or 144(c) of the Internal Revenue Code.
(b) For purposes of determining the SIC category of a facility, the determination shall be based upon the type of activity engaged in by the user of the facility within the facility in question, rather than upon the ultimate enterprise in which the developer or user of the facility is engaged.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-4 Annual allocation
Sec. 4. (a) On or before January 1 of each year, the authority shall determine the dollar amount of the volume cap for that year.
(b) Each year the volume cap shall be allocated among the categories specified in section 3 of this chapter as follows:
Percentage of
Type of Bonds
Volume Cap
Bonds issued by the authority
9%
Bonds issued by the IHCDA
28%
Bonds issued by the ISMEL
1%
Bonds issued by local units or other
issuers under section 3(a)(4)
of this chapter
42%
Bonds issued by local units or other
issuers under section 3(a)(5)
of this chapter
20%
(c) Except as provided in subsection (d), the amount allocated to a category represents the maximum amount of the volume cap that will be reserved for bonds included within that category.
(d) The authority may adopt a resolution to alter the allocations made by subsection (b) for a year if the authority determines that the change is necessary to allow maximum usage of the volume cap and to promote the health and well-being of the residents of Indiana by promoting the public purposes served by the bond categories then subject to the volume cap.
(e) The governor may, by executive order, establish for a year a different dollar amount for the volume cap, different bond categories, and different allocations among the bond categories than those set forth in or established under this section and section 3 of this chapter if it becomes necessary to adopt a different volume cap and bond category allocation system in order to allow maximum usage of the volume cap among the bond categories then subject to the volume cap and to promote the health, welfare, and well-being of the residents of Indiana by promoting the public purposes served by the bond categories then subject to the volume cap.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.27.
Ind. Code § 5-1.2-16-5 Special volume cap
Sec. 5. The authority shall determine the allocation of any special volume cap in accordance with the federal act authorizing the special volume cap.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-6 Year end; unused amounts
Sec. 6. (a) At 5 p.m. on December 20 of each year, all categories established by section 3 of this chapter are eliminated and any remaining amounts in those categories shall be placed in a single noncategorized state pool.
(b) After 5 p.m. on December 20 of each year, applications for a grant of volume cap shall be granted from the single noncategorized state pool. These applications shall be granted in the order of priority established in the guidelines adopted under section 7 of this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-7 Forms; guidelines
Sec. 7. (a) Notwithstanding IC 5-15-5.1, the authority has the sole authority to prescribe and furnish forms used in the administration of this chapter.
(b) The authority may adopt guidelines, without complying with IC 4-22-2, to govern the administration of this chapter. The guidelines may establish procedures, criteria, and conditions for each category of bonds identified in sections 3 and 4 of this chapter. However, the guidelines may not be inconsistent with the requirements of Section 146 of the Internal Revenue Code.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-8 Application requirements
Sec. 8. To qualify for a grant of volume cap, an applicant must do the following:
(1) Apply for the grant in conformity with the procedures established by the authority.
(2) Provide the information reasonably requested by the authority to carry out this chapter.
(3) Meet the criteria established by the authority for the category of bond for which the application is filed.
(4) Pay the fees established by the authority.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-9 Application procedure
Sec. 9. The authority shall establish a written:
(1) application procedure for the granting of a portion of the volume cap to an applicant; and
(2) procedure for filing carryforward elections.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-10 Selection criteria
Sec. 10. The authority shall establish written criteria for the selection of grant applications from among the applicants that qualify for the grant under section 8 of this chapter. The criteria must promote the health and well-being of the residents of Indiana by promoting the public purposes served by each of the bond categories subject to the volume cap.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-16-11 Grant termination; conditions
Sec. 11. The authority may establish conditions for the termination of a grant of volume cap. The conditions may include requirements such as the following:
(1) That the amount of volume cap granted may not be substantially higher than the amount of actual bonds issued.
(2) That the issuer issue bonds within the time specified by the authority.
As added by P.L.189-2018, SEC.25.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026