CHAPTER 24. INVESTMENT INCENTIVE PROGRAM
IC 5-28-24
Chapter 24. Investment Incentive Program
IC 5-28-24-1
"Municipality"
Sec. 1. As used in this chapter, "municipality" means a city ortown.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-2
Establishment by corporation; purpose
Sec. 2. The corporation shall establish policies to carry out aninvestment incentive program. The purpose of the program is toprovide grants and loans to counties and municipalities that will, inturn, be loaned to certain new or expanding businesses forconstruction or for the purchase of real or personal property.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-3
Award of grants and loans to counties and municipalities; criteria
Sec. 3. (a) The corporation shall adopt policies and guidelines toestablish the criteria for awarding grants and loans to counties andmunicipalities.
(b) The criteria for awarding the grants and loans must includethe:
(1) economic need of the county or municipality;
(2) impact of the new or expanding business on employmentand output in the county or municipality;
(3) importance of state participation to the investment decision;
(4) impact of state assistance to job production in the county ormunicipality; and
(5) extent of other public and private participation.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-4
Loans to businesses by counties and municipalities; criteria;approval of loans by corporation
Sec. 4. (a) The corporation shall establish criteria to guidecounties and municipalities in making loans to businesses.
(b) The terms of the loans must include provisions stating that:
(1) loans shall be restricted to enterprises that create new andpermanent jobs;
(2) loans may not exceed the greater of:
(A) ten percent (10%) of the total investment; or
(B) two hundred fifty thousand dollars ($250,000); and
(3) the principal and interest on the loan must be repaid to thecounty or municipality.
(c) All loans by a county or municipality under this chapter aresubject to approval by the corporation.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-5
Powers of corporation
Sec. 5. The corporation may:
(1) adopt policies and guidelines to carry out this chapter;
(2) accept money and other things of value from all sources;
(3) provide services and materials to carry out the purposes ofthe program;
(4) evaluate the program; and
(5) involve other entities, by contract or otherwise, in carryingout the purposes of the program.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-6
Use of repayment proceeds; corporation approval
Sec. 6. (a) The repayment proceeds of a loan made from a grantunder this chapter shall be used by the county or municipality for anyeconomic or community development activity, including:
(1) making loans to businesses; and
(2) the construction or reconstruction of any street, sewer, orother capital improvement that will promote economicdevelopment in the community or the repayment of bonds usedto finance the construction or reconstruction.
(b) All uses of repaid loan proceeds by a county or municipalityunder this chapter are subject to approval by the corporation.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-7
Grants from state appropriated funds
Sec. 7. The corporation may not make a grant from stateappropriated funds to a county or municipality under this chapterunless the county or municipality agrees to lend to the new orexpanding business an amount greater than or equal to the stategrant.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-8
Loan not general obligation of county or municipality;determination of reasonable assurance of repayment
Sec. 8. (a) A loan to a county or municipality made under thischapter is not a general obligation of the county or municipality andis payable solely from revenues derived from the new or expandingbusiness.
(b) Before making a loan to a county or municipality, thecorporation shall determine that there is reasonable assurance that theloan will be repaid. In making this determination, the corporationshall consider:
(1) the financial condition of the business;
(2) the financial feasibility of the expansion being undertakenby the business;
(3) the adequacy of collateral for the loan; and (4) any other information that the corporation considers relevantto its determination.
As added by P.L.4-2005, SEC.34.
IC 5-28-24-9
Establishment and purpose of investment incentive fund;administration
Sec. 9. (a) The investment incentive fund is established within thestate treasury to provide grants and loans to counties andmunicipalities.
(b) The fund consists of appropriations from the general assemblyand loan repayments.
(c) The corporation shall administer the fund. The following maybe paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry outthe purposes of this chapter.
(d) Earnings from loans made under this chapter shall bedeposited the fund.
(e) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested. Interest that accruesfrom these investments shall be deposited in the state general fund.
As added by P.L.4-2005, SEC.34.