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Bill would direct redevelopment tax credits toward regional authorities and require 5‑ and 10‑year plans
Summary
Senate Bill 281 would let regional development authorities and qualified regional nonprofits access redevelopment tax credits if they adopt strategic plans with measurable 5‑ and 10‑year goals; RDAs and regional groups testified in support, urging transparency and protections for rural projects.
Senate Bill 281, as amended, would create a path for regional development authorities (RDAs) and qualifying regional nonprofits to request redevelopment tax credits from the IEDC, but only after submitting strategic plans that include measurable five‑ and ten‑year objectives (employment, per‑capita income, population, educational credentials).
Sponsor Senator Goode told the committee the change aims to institutionalize regional collaboration and give RDAs more tools to attract investment. "This helps ensure that these dollars are spent with a purpose in mind such as growing population, the workforce and educational attainment," he said.
Supporters from multiple regions described existing RDA models and urged safeguards. Jonathan Blake of the Wabash River Regional Development Authority told the committee RDAs already operate under statutory transparency and audit requirements and that allocating targeted credits to RDAs would build on a proven framework. Julie Habig of ROI, an 11‑county nonprofit, said her region has been able to drive investment without a formal RDA but welcomed the bill’s language allowing well‑governed regional nonprofits to participate where appropriate.
IEDC staff and private-sector redevelopment representatives signaled general support, while lawmakers pressed for guardrails on the credit cap and timeline: several members requested a second‑reading amendment to clarify the cap’s treatment and what role the budget committee would play in oversight.
What was decided: The committee approved the amended bill and moved it forward, with members noting they expect further amendments on credit caps and budget‑committee review before third reading.
Why it matters: Redevelopment tax credits are performance‑based incentives tied to completed qualified investment. Redirecting a portion of those credits to regional entities creates a new pathway for coordinated, multi‑county economic development while raising questions about cap management and transparency.
