Authors: Senator Randall Head
Establishes the business development closing fund (fund) to provide incentives in the form of forgivable loans to be used to attract new business and economic development to Indiana and encourage expansion of existing business in Indiana. Provides that if the amount of excess reserves is more than $200 million, then up to $100 million of the excess reserves that exceed $200 million shall be transferred to the fund. Provides that the Indiana economic development corporation (IEDC) administers the fund. Requires the IEDC to perform the following duties: (1) Establish the criteria for awarding forgivable loans from the fund. (2) Establish the terms and conditions of forgivable loans from the fund. (3) Award forgivable loans. (4) Release an obligation to repay a forgivable loan. Requires that a forgivable loan awarded by the IEDC must include the following conditions: (1) The minimum economic development outcomes that are required to be achieved by a forgivable loan recipient (including a baseline number of jobs to be created in Indiana). (2) An obligation by the forgivable loan recipient to repay the forgivable loan. (3) The terms and conditions upon which the forgivable loan recipient must be released from its obligation to repay the forgivable loan. Provides that income attributable to the release or discharge of an obligation to repay a forgivable loan is exempt from the adjusted gross income tax. Appropriates money in the fund.