Data centers in Indiana

Signed into law 3

• Department of local government finance.

  HEA 1210 Signed March 12, 2026

  What it says and where it is from

  Department of local government finance. Requires a municipal entity that hires or retains a municipal advisor to publish a contract in a prominent location on the municipal entity's website. Modifies the amount of supplemental wagering tax that the treasurer of state is required to pay to the riverboat operating in Gary and the distribution of wagering tax revenue to the city of Gary. Provides that the Lake County Convention Center Authority is established upon the substantial completion of the convention and event center. Establishes an alternative procedure for certain school corporations to issue refunding bonds. Requires state agencies and political subdivisions to cooperate with the state GIS officer in preparing a statewide base map. Eliminates the requirement that the department of local government finance (DLGF) work with the office of technology or another organization that is part of a state educational institution for purposes of posting information on the Indiana transparency website and submitting forms regarding data for local units. Allows a person to satisfy any notice statute by publishing notice in specified forms of media and modifies related provisions regarding notice by publication. Provides that in assessing or reassessing land, the land shall be assessed as agricultural land regardless of who owns the property or who is liable for the property taxes. Modifies procedures as to the reporting of assessment values of real and personal property and parcel level data. Changes the deadline for a county to submit to the DLGF data regarding real property, personal property, and geographic information system information. Requires the purchaser of a mobile home to process the paperwork with the bureau of motor vehicles to transfer the title into the purchaser's name within 90 days of the sale. Specifies eligibility for certain townships to petition for an increase to the maximum property tax levy for the firefighting and emergency services fund. Makes procedural changes for civil taxing units not subject to levy limits. Provides that certain local property tax credits result in a reduction of property tax collections in a political subdivision in which such a credit is applied. Specifies the procedures for the submission of certain forms and related allocation amounts with regard to various allocation areas. Amends various tax increment financing allocation area provisions, including provisions to redefine "residential property" and to require the original owner of certain nonowner occupied residential property in an allocation area to enter into a written agreement with the appropriate entity to pay the property taxes for the portion of outstanding bonds until the bonds are retired. Changes reporting requirements by governing bodies to the DLGF regarding guaranteed savings contracts and energy efficient programs used by school corporations. Provides that the property tax rate for the levy imposed for the replacement of fire protection territory equipment is considered part of the maximum permissible ad valorem property tax levy and may not exceed $0.0333 per $100 of assessed value. Extends a temporary increase in the capitalization rate percentage under the statewide agricultural land base rate determination. Requires the DLGF to annually publish on the Indiana Register the adjusted cost estimate threshold for certain local public work projects. Provides a real and personal property tax exemption for Indiana nonprofit senior living communities beginning with property taxes that are first due and payable in 2027. Adds the Indiana Historical Society, Inc. to a list of organizations exempt from property taxation. Allows certain taxpayers to retroactively file a property tax exemption application. Increases the amount of the property tax deduction for a model residence and a residence in inventory to 100% of the assessed value of the property for each deduction. Increases the number of model residences and residences in inventory from three to ten that may be claimed for purposes of those property tax deductions. Requires an individual to reside on the real property, mobile home, or manufactured home to be eligible for the over 65 property tax credit. Increases the property tax deduction for a veteran who is totally disabled to 100% of the assessed value of the individual's real property (instead of $14,000). Expires property tax deductions for certain veterans, and instead provides a property tax liability credit. Restores the property tax deduction available to a surviving spouse of a World War I veteran that was limited by SEA 1-2025. Provides, if a taxpayer claims the homestead deduction for property that is not eligible for the deduction, that the taxpayer shall (instead of may) be liable for any additional taxes that would have been due on homestead property plus a civil penalty. Requires the county auditor to include in a notice of tax due a 10% fine as a penalty for claiming the homestead deduction falsely, which is in addition to all other penalties for which the taxpayer is liable. Allows the executive of Miami Township in Cass County to submit a petition to the DLGF requesting an increase in the township's maximum permissible ad valorem property tax levy for property taxes first due and payable in 2027. Requires the Hancock County fiscal body to adopt a resolution to allow a one time transfer of money from the library property tax replacement fund. Provides that for purposes of fixing and reviewing budgets, tax rates, and tax levies, before a county auditor makes an amendment, the county auditor must provide written notice to the county fiscal body, the DLGF, and the fiscal officers of the affected taxing units. Provides that the DLGF may not approve the budget for a political subdivision until an attestation statement concerning the uploading of contracts is submitted. Allows a school corporation to allocate the effects of supplemental homestead credits granted for property taxes first due and payable in 2026 proportionately among all the school corporation's property tax funds. Requires certain qualified data center users to enter into an agreement with local officials before the qualified data center user may use a specific transaction award certificate. Adds a provision regarding repayment in the redevelopment tax credit. Specifies eligibility and procedures for a health reimbursement arrangement income tax credit. Moves the effective date for the local income tax changes enacted in SEA 1-2025 from 2028 to 2029. Makes corresponding changes to move the expiration date regarding a county with a single voting bloc enacted in HEA 1142-2025. Specifies procedures for the imposition of local income taxes and distribution of local income tax revenue. Removes provisions enacted in SEA 1-2025 providing for the expiration of local income tax expenditure rates for counties or municipalities that fail to adopt an ordinance to renew an existing expenditure tax rate. Provides that the county may determine an allocation method for revenue raised from a tax rate for fire protection or emergency medical services. Provides that the county and certain township fire departments must receive an allocation of revenue raised from a tax rate for fire protection or emergency medical services. Provides a formula for the distribution of revenue from the local income tax rate imposed by a county for certain small cities and towns. Specifies procedures for determining population for purposes of a municipal local income tax rate. Specifies that taxing units may deposit distributions of excise tax revenue in any fund maintained by the taxing unit. Allows each county to establish a local strategic taskforce to negotiate and determine certain maximum local income tax rates. Allows the Marshall County jail fund to be used for costs otherwise incurred for the operation of the county jail. Provides that distributions of certain excise tax revenue to a taxing unit may be deposited in any fund maintained by the taxing unit and may be used for any purpose allowed by law. Makes numerous changes and additions to the local innkeeper's tax and food and beverage tax statutes, including new food and beverage tax authorizations, modifications to distributions of innkeeper's tax revenue, and revisions to the composition of various innkeeper's tax boards and commissions. Replaces the definitions of "manufactured home" and "mobile home" throughout the Indiana Code with a singular definition. Subject to an exception, limits voting eligibility in a homeowners association to members of the homeowners association who use their property as a homestead as to certain matters. With certain exceptions, prohibits a unit from adopting or enforcing an ordinance, resolution, regulation, policy, or rule that prohibits or restricts an owner of a privately owned residential property from using the property as a rental property. Retroactively amends the definition of "short term rental" to specify that certain private, owner occupied businesses are excluded from that definition. Requires a person appointed to a fire protection district board of trustees to reside in the fire protection district. Sets forth an alternative procedure that may be used to appoint the board of trustees of certain fire protection districts. Specifies maximum property tax rates for certain fire protection territories. Revises a provision of the municipal Barrett Law concerning deferred installments. Amends provisions in the drainage law as to bidding on certain projects and the term of loans. Authorizes the budget agency, subject to budget committee review, to augment the state agency contingency fund appropriations in HEA 1001-2025 through July 1, 2027, in an amount not to exceed $40,000,000 for Indiana office of technology contracts, in addition to the uses for the appropriation authorized in HEA 1001-2025. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• Construction of data center by foreign adversary.

  SEA 431 Signed April 10, 2025

  What it says and where it is from

  Construction of data center by foreign adversary. Provides that after June 30, 2025, a foreign company may not construct or cause to be constructed a data center in Indiana unless the Indiana utility regulatory commission and the Indiana economic development corporation conduct a joint study of the anticipated electricity use of the prospective data center and certify to the governor and the general assembly that the electricity estimated to be used by the data center will be self generated and will not affect the load supply of the regional transmission organizations whose service territory includes Indiana. As published by the legislature, found through LegiScan.

  What it requires, on the Indiana laws page.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• Taxation of data centers. Provides that a county or municipal fiscal body may designate an area in which a property tax exemption will be provided for certain enterprise information technology equipment. Provides a state sales and use tax exemption (exemption) for the purchase of certain data center equipment that is located in a data center that results in a minimum qualified investment within five years, ranging from at least $25,000,000 to more than $150,000,000 depending on the population of the county in which the data center is located. Provides that costs that meet the requirement are exempt from the state gross retail tax. Requires a qualified data center user to apply to the Indiana economic development corporation (IEDC) for a specific transaction award certificate (award certificate). Requires a qualified data center user to enter into an agreement with the IEDC as a condition of receiving an award certificate.

  H.B. 1405 Signed May 5, 2019

  What it says and where it is from

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

In committee 10, 5 shown here

• Land use and development.

  H.B. 1333 In committee February 5, 2026

  What it says and where it is from

  Land use and development. Requires a development that is sited on land: (1) in an area zoned agricultural; and (2) comprised of certain capability classes of soils; to be a permitted use. Extends governmental immunity to a private entity or nonprofit entity that has executed certain agreements under the Indiana brownfields program. Provides that before a qualified data center user may use a specific transaction award certificate issued after June 30, 2026, to purchase qualified data center equipment eligible for the state gross retail tax exemption, the qualified data center user and a local unit that issues after June 30, 2026, a permit authorizing the development, construction, or operation of the qualified data center in the unit shall enter into a written agreement that includes a commitment by the qualified data center user to contribute to the local unit an amount equal to at least 1% of the amount of taxes that are not paid on each purchase of qualified data center equipment that is made: (1) using the specific transaction award certificate; and (2) during the duration of the specific transaction award certificate. For purposes of the statute concerning energy production zones: (1) redesignates the term "electric generation facility" as "electric generation or storage facility"; and (2) provides that the term includes a utility scale battery energy storage system (BESS). Provides that if a planned electric generation or storage facility will include a BESS, the project owner must include in the required statutory notice to the local planning authority: (1) the emergency response plan required under the statute governing the approval of a BESS by the department of homeland security (department); and (2) documentation of the department's approval of the BESS. Makes conforming changes. Allows a plan commission, board of zoning appeals, or county or municipal legislative body (body) to require a person to provide their name and address in writing in order to speak at a public hearing regarding certain matters. Allows the body's presiding officer to give consideration to whether a person is a county resident or has an interest as an owner, lessor, lessee, or life tenant in real property within the county in deciding: (1) the order of speakers; and (2) the amount of time allotted to speakers; at a hearing. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• Energy utility matters.

  S.B. 234 In committee January 8, 2026

  What it says and where it is from

  Energy utility matters. Provides that any standard tariff offered by an energy utility after March 14, 2026, to a large load customer of the energy utility must include a provision that requires reimbursement by the large load customer of all project costs reasonably allocable to the large load customer, regardless of whether the large load customer ultimately takes service in any anticipated amount and within any anticipated time frame. Makes a conforming amendment to the existing statute that allows an energy utility to petition the Indiana utility regulatory commission (IURC) for approval of a project to serve a large load customer. Provides that in a proceeding that is filed with or pending before the IURC after December 31, 2025, for a change in an energy utility's basic rates and charges, the IURC may not issue an order in the proceeding that would result, upon full implementation, in an increase in the energy utility's basic rates and charges, for any customer class, that exceeds the average monthly percentage increase in seasonally adjusted electricity prices for the United States over the course of a specified period that ends with the last month of the energy utility's 12 month test period used in the proceeding. Provides that the IURC may not authorize a public utility that: (1) provides retail electric or natural gas service; and (2) is under the IURC's jurisdiction for the approval of rates and charges; (utility) to recover through the utility's retail rates and charges any direct or indirect costs associated with specified expenses and activities related to lobbying, legislative action, political activities, charitable giving, litigation, investor relations, and other specified activities and expenses. Beginning in 2026, requires a utility to file with the IURC an annual report that includes specified information concerning costs to: (1) the utility; or (2) an affiliate of the utility; that are related to these expenses or activities and that are directly billed or allocated to the utility. Requires the IURC to make available on the IURC's website a direct link to the annual reports provided by all utilities under these provisions. Urges the legislative council to assign to the interim study committee on energy, utilities, and telecommunications the task of studying, during the 2026 legislative interim, the use of trackers by public utilities providing electric or natural gas service. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• Electricity rate increases due to data centers.

  S.B. 257 In committee January 8, 2026

  What it says and where it is from

  Electricity rate increases due to data centers. Provides that the Indiana utility regulatory commission may not approve an increase in the rates and charges of an electric utility to the extent the increase is related solely to the electric utility's cost of providing electric utility service to: (1) a data center; or (2) a new or existing facility: (A) the electricity demand of which exceeds or will exceed a specified amount; and (B) that employs or will employ fewer than 50 full time employees on the premises of the facility. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• Labor requirements for data center incentives.

  H.B. 1189 In committee January 5, 2026

  What it says and where it is from

  Labor requirements for data center incentives. Requires that an agreement between a qualified data center user or quantum computing research, advanced computing, and defense infrastructure network operator and the Indiana economic development corporation for a specific transaction award certificate includes a requirement that the user or operator limit bids or requests for proposals for the project to labor unions or employers that have project labor agreements. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

• IURC study of data centers.

  H.B. 1245 In committee January 5, 2026

  What it says and where it is from

  IURC study of data centers. Requires the Indiana utility regulatory commission (IURC) to conduct a study to evaluate the effect of new and additional electricity demand from data centers and large load customers on: (1) the costs incurred by energy utilities to meet that demand; and (2) retail electric rates for all customer classes of energy utilities. Sets forth specific topics that the IURC must evaluate as part of the study. Requires the IURC to include in its 2026 annual report the commission's findings with respect to the topics evaluated in the study. As published by the legislature, found through LegiScan.

  Source: the legislature's page (opens in a new tab). Found through LegiScan.

5 more in committee on the Indiana laws page.