Tax Credit Bill Advances to Indiana House
By Sean Powers
A bill approved Monday in the Indiana Senate would encourage people to invest in businesses that are located in areas of the state where there is low income or high unemployment.
The measure, sponsored by Randy Head (R-Logansport), offers tax credits as an incentive.
Sen. Head said he thinks the tax credits could lead to thousands of new jobs in Indiana.
“I think we will like the results because 11 other states have done this, including three out of our four neighbors," Head said on the Senate floor. "Our neighbors who do this have an advantage over us in bringing investments to their areas, and taking them away from Indiana. Right now, we’re just trying to play ketchup so that we can do the same thing.”
As a safeguard, Sen. Heads said the legislation limits the number of investments eligible for the tax credits each year, and spreads out those tax credits over a seven-year period.
But State Sen. Luke Kenley (R-Noblesville) questions whether the measure would actually lead to substantial economic development.
"I just questions whether we need this, whether we get any benefit out of it," Kenley said. "They're going to make new market job tax credits in Indiana whether we do anything or not. I just can't quite bring myself to believe that this is the best use of tax dollars in this way."
The bill, which passed the Senate 40-to-3, now advances to the Indiana House.