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Read. Follow. Verify.Indiana Bill HB 1244 dedicates 10% of excess tax increment financing proceeds to public safety and local services
Last action · January 5, 2026: First reading: referred to Committee on Ways and MeansSponsor: Randy Novak
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What This Bill Proposed
Provides that 10% of the excess property tax proceeds collected in an allocation area must be allocated among school corporations, libraries, and taxing units that provide police services, fire protection, emergency medical service, or public safety services in the allocation area.
Local school districts, libraries, and emergency service providers operating inside new districts gain a mandatory revenue share of excess property taxes previously directed entirely to redevelopment funds.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
school corporations
Receive a mandatory one-third share of the newly established 10% excess property tax distribution from TIF allocation areas established after June 30, 2026.
libraries
Receive a mandatory one-third share of the newly established 10% excess property tax distribution from TIF allocation areas established after June 30, 2026.
taxing units that provide police services, fire protection, emergency medical service, or public safety services
Receive a mandatory one-third share of the newly established 10% excess property tax distribution from TIF allocation areas established after June 30, 2026.
redevelopment commissions
Must allocate a portion of excess tax increment revenue away from their allocation funds toward schools, libraries, and public safety units, and comply with annual December 1 spending plan filing requirements.
Key Facts
- Requires that 10% of excess property tax proceeds in TIF allocation areas established after June 30, 2026, be distributed to local schools, libraries, and public safety providers.
- Specifies that of the 10% mandatory pass-back, one-third goes to school corporations, one-third to libraries, and one-third to police, fire, EMS, or public safety units in the allocation area.
- Redevelopment commissioners must file an annual spending plan with the department of local government finance and the unit's executive and fiscal body no later than December 1 each year.
- Redevelopment commissions may use allocation fund money only for the purposes outlined in their annual spending plan.
Show all 10 facts
- The department of local government finance must submit an annual report before February 1 listing redevelopment commissions that failed to file their required spending plans.
- Bonds issued by redevelopment commissions generally cannot exceed 2% of the adjusted value of taxable property in the special taxing district, with specific exceptions.
- Bonds issued after June 30, 2008, for general redevelopment are subject to a maximum term of 25 years.
- For allocation areas established after June 30, 2019, in specific historical manufacturing areas, the maximum bond term is 35 years and maximum allocation duration is 35 years.
- Redevelopment commissions must determine excess assessed value and provide written notice to county auditors and taxing units by June 15 each year.
- Establishes special zone funds for allocation areas located in enterprise zones to fund job training, job enrichment, and basic skill development programs.
Frequently Asked Questions
Who receives the new 10% share of excess tax increment financing proceeds?
What are redevelopment commissions required to file annually?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Jan 5, 2026HouseIntroducedFirst reading: referred to Committee on Ways and Means
- Jan 5, 2026HouseAuthored by Representative Novak
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Mandatory Revenue Diversion from TIF Districts
HB 1244 introduces a mandatory pass-back of 10% of excess tax increment financing revenues to schools, libraries, and public safety units, modifying long-standing exclusive use provisions for redevelopment districts.
Connected Entities
Sources
iga.in.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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