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SB 281INDIANASession 2026State Billpassed both
Passed

Indiana allocates $35 million for redevelopment tax credits, administers FAA drone test site, and establishes small town opportunity initiative

Original title: Income tax credits.

Last action · February 12, 2026: Committee report: amend do pass, adoptedSponsors: Greg Goode and 4 others

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
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What This Bill Would Do

Indiana requires the Indiana Economic Development Corporation to commit $35,000,000 in s annually, establishes the small town opportunity initiative with $15,000,000 allocated from existing tax credit caps, and partners with an operating partner to administer the federal Unmanned Aircraft System Test Site program starting July 1, 2026.

Why it matters

Modifies state tax credit allocations and municipal economic development funding rules, affecting how local governments, development authorities, and qualified nonprofit organizations finance property redevelopment and technology projects across Indiana.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

development authorities

Development authorities are eligible to receive commitments of redevelopment tax credits from the IEDC for regional projects.

Directly affected

qualified nonprofit organizations

Qualified nonprofit organizations meeting specific Internal Revenue Code criteria can receive tax credits and undertake community redevelopment projects.

Directly affected

operating partner

The Indiana-based nonprofit operating partner is responsible for day-to-day operations of the federal UAS test site, managing segregated bank accounts, and complying with FAA requirements.

Directly affected

taxpayers

Taxpayers proposing qualified investments in redevelopment sites or small town opportunity initiatives are eligible to be granted tax credits.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the small town opportunity initiative?
It is an initiative administered by the Indiana Economic Development Corporation that undertakes qualified community projects in smaller municipalities or counties to advance historic preservation and redevelop distressed or underutilized property.
What tax credit percentage do nonprofit taxpayers receive under the small town opportunity initiative?
Nonprofit taxpayers undertaking a qualified community project under the initiative are entitled to a equal to thirty percent (30%) of the taxpayer's cost of the project.
Are operations at the new Unmanned Aircraft System test site subject to standard state procurement laws?
No. While subject to federal requirements, the IEDC and its operating partner are exempt from state procurement, contracting, and fee-setting requirements specifically for operating the test site.

What else do you want to know?

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Where This Stands

Currently passed both. The next step in the legislative lifecycle is Law.

Procedural history

15 actions
  1. Feb 12, 2026HouseFloor
    Committee report: amend do pass, adopted
  2. Feb 5, 2026House
    Representative Snow added as cosponsor
  3. Feb 5, 2026House
    Representative Lopez added as sponsor
  4. Feb 5, 2026House
    Representative Snow removed as sponsor
  5. Feb 2, 2026HouseIntroduced
    First reading: referred to Committee on Ways and Means
  6. Jan 29, 2026Senate
    Referred to the House
Show 9 earlier actions
  1. Jan 29, 2026Senate
    House sponsor: Representative Snow
  2. Jan 29, 2026SenateFloor
    Third reading: passed; Roll Call 142: yeas 42, nays 6
  3. Jan 27, 2026Senate
    Amendment #2 (Mishler) prevailed; voice vote
  4. Jan 27, 2026SenateFloor
    Second reading: amended, ordered engrossed
  5. Jan 26, 2026Senate
    Senator Niezgodski added as third author
  6. Jan 26, 2026Senate
    Senator Mishler added as second author
  7. Jan 20, 2026SenateFloor
    Committee report: amend do pass, adopted
  8. Jan 12, 2026SenateIntroduced
    First reading: referred to Committee on Tax and Fiscal Policy
  9. Jan 12, 2026Senate
    Authored by Senator Goode

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

Greg GoodeSenate · District 38RepublicanAuthor
Ryan MishlerSenate · District 9RepublicanAuthor
David NiezgodskiSenate · District 10DemocraticAuthor
Danny LopezHouse · District 39RepublicanSponsor
Craig SnowHouse · District 22RepublicanCosponsor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of Economic Development Set-Asides

The legislation formally carves out mandatory annual funding allocations from existing tax credit caps for specific regional and small-town redevelopment initiatives.

Indiana economic development corporation

Connected Entities

Indiana economic development corporation, Federal Aviation Administration, Indiana and 4 more
OrganizationIndiana economic development corporation“Administers tax credits, economic development programs, and the UAS test site pr”Map →
OrganizationFederal Aviation Administration“Federal agency that designated Indiana as an unmanned aircraft system test site.”Map →
locationIndiana“State where the legislation applies and where the UAS test site is located.”Map →
Organizationtreasurer of state“Establishes and administers incremental tax financing funds for certified techno”Map →
Organizationlegislative council“Recipient of reports concerning tax credit assignments.”Map →
Organizationdepartment of state revenue“Determines income tax incremental amounts and issues written determinations for ”Map →
OrganizationIndiana twenty-first century research and technology fund“Fund providing grants, loans, or investment funds for prioritized companies.”Map →

Sources

Open source document

iga.in.gov

Analysis Score

0–100
  • Significance80
    How much this matters to a regular citizen
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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