1. (a) As used in this section, "tax increment financing allocation area" means any area authorized by statute in which ad valorem property taxes are allocated, including the following:

   1. (1) IC 6-1.1-39 (economic development districts).
   2. (2) IC 8-22-3.5 (airport development zones).
   3. (3) IC 36-7-14 (redevelopment of areas needing redevelopment generally).
   4. (4) IC 36-7-15.1 (redevelopment of areas in Marion County).
   5. (5) IC 36-7-30 (reuse of federal military bases).
   6. (6) IC 36-7-30.5 (development of multicounty federal military bases).
   7. (7) IC 36-7-32 (certified technology parks).
   8. (8) IC 36-7-32.5 (innovation development districts).
   9. (9) IC 36-7.5-4.5 (rail transit development districts).
2. (b) The department shall, in each year beginning after December 31, 2026, and ending before January 1, 2034, adjust the base assessed value of each tax increment financing allocation area to neutralize the effect of the changing tax rates resulting year to year from the homestead deduction under IC 6-1.1-12-37 (c)(2) and IC 6-1.1-12-37.5 (c) and the deduction for eligible property under IC 6-1.1-12-47 . It is the intent of the general assembly that an increase in revenue from a change in tax rates resulting from these statutes accrue only to the base assessed value and not to the tax increment financing allocation area. However, in the case of a decrease in revenue from a change in tax rates resulting from these statutes, the department may neutralize the change under this subsection in a positive manner with regard to the tax increment financing allocation area to protect the ability to pay bonds based on incremental revenue, if the tax increment financing allocation area demonstrates to the department that an adjustment is needed before the department calculates a positive neutralization adjustment.

As added by P.L.68-2025, SEC.5. Amended by P.L.157-2026, SEC.31.