Simplify our Tax System - Single Sales Apportionment Factor

• Changes the way Corporate Income Taxes are figured.
• Reduces Indiana Corporate Income Tax liability for businesses with substantial in-state investment and employment.
• Companies with less in-state presence but more in-state sales would pay a greater share.

Expanded Hoosier Headquarter Relocation Tax Credit

• Lower the existing requirement to qualify for this tax credit from annual revenues of at least $500 million to at least $100 million (approximately 15,000 U.S. companies).
• Dramatically increase the number of potential corporations who could be recruited to locate their headquarters in Indiana.

EDGE for Retention - Tax Credit for Small Businesses

• Increases the cap for credits for retention of jobs from $5 million per year to $10 million per year.
• Eliminate the company size requirement (current limits credit to only companies with 75+ employees)

Increase Bio-diesel and Ethanol Production Incentives

Lifelong Learning Account Incentives (Pilot Program)

• Provides an incentive for employees and employers to set up accounts for the employees' use to pay for education or training related to their job.
• Employers as well as DWD can contribute up to $500 per employee in the form of a matching grant.
• Creates a pilot program administered by Department of Workforce Development.

GOVERNMENT REFORM

Government Efficiency & Modernization Plan

• Goal - give local officials tools necessary to eliminate multiple layers of government & duplication.
• Plan of merger and consolidation is prepared.
• Vote required by each legislative body.
• Referendum by voters of both entities.
• Create Statutory list of requirements for Plan of merger.
• One 911 center per county.
• Consolidation of assessing duties.

Eminent Domain

• Three criteria must be met before eminent domain can be exercised: 1) One of the definitions of a condemnation-eligible property must be met (changed definition of blighted property) 2) There is no reasonable alternative besides exercising eminent domain and 3) Property taken through eminent domain is used for more than just increasing the tax base.
• Definition of "Economic Development" does not include "increased taxes" as a public use and must have a predominantly "public benefit" and the "private benefit" is incidental.

Redistricting Commission

• Creation of a bipartisan commission in which 4 caucus leaders have an appointment along with the Chief Justice. Commission member appointed by the Chief Justice serves as the Chair.
• Districts shall be established based on the following criteria: 1) Population 2) Contiguous territory and 3) Compactness.
• To the extent possible protect political subdivision boundaries.
• Commission will hold public hearings, take public comment and recommend a plan to redraw the state and congressional district maps.
• Directs the General Assembly to convene before October 1 of a redistricting year to establish the districts based on Commission's recommendations.

PROPERTY TAXPAYER PROTECTION

KEEPING PROPERTY TAX GROWTH "IN-CHECK"

Reform Child Welfare System

• New, fixed child welfare levy & State pays growth in costs
• 12% Child Welfare Relief Credit for Homesteads in 2006 (generates 6%-7% effective relief)
• Standardize treatment of Juvenile Delinquents and CHINS by the Judicial System

Protect Property Owners

• Enhanced Notification of Property Tax Rates/Levies
• 3% Annual Rate Cap on Residential Property Tax
• Referendum on Public Projects over $10M financed with Property Taxes
• Senior & Disabled Property Tax Deferrals
• Mandatory 2% of AV Cap on Residential Property Tax Liability

Improve Property Tax Administration

• Reauthorizing Banking of Unused levy and 2% Tax Rate Buffer.
• Streamline Property Tax Administration by consolidating assessing duties

INCREASE EDUCATION OPPORTUNITIES

Choice for Students with Autism

• Children with autism are eligible for a scholarship to attend any public or nonpublic accredited school of their parent's choosing.
• Child must have an individualized education plan in order to be eligible for the scholarship.
• Scholarship can only be used for educational purposes.

Kindergarten Tax Credit

• Provides a tax credit for children enrolled in kindergarten to parents with incomes below 200% of the federal poverty level.
• Children can be enrolled in a public school located outside the school district in which they reside or at an accredited nonpublic school.

More Dollars to the Classroom

• Allows school corporations to collaborate with other school corporations in the purchasing and pooling of resources in the areas of buying insurance, school buses, energy costs, food services, facilities maintenance, transportation services and textbooks and technology.
• State Board of Education will examine school corporation expenditures in the following 4 areas: 1)Student instruction 2)Instruction support services 3)Operational expenses and 4)Non-operational expenses.

Spring ISTEP+

• Moves the ISTEP+ test from the fall to the spring.

Teacher Mentor Dollars

• Removes restrictions on funding of teacher mentor plan.

PROTECTING CHILDREN

Tighten Restrictions on Child Predators

• Lifetime parole and GPS monitoring of convicted offenders.
• Prohibits offenders from living within 1,000 feet of schools and public parks.

Establishing an Enforceable Curfew

• Allows minors to participate in activities after curfew with written permission from parent.

ENERGY POLICY

Further Fund the LIHEAP Program. (short term)

• Capture $20M of the Utility Receipts Tax to be used for the Low Income Home Energy Assistance Program.

Ethanol/Bio-diesel Pump Installation Tax Credit

• Establishes a tax credit paid to local gas station owners to help reduce their cost in installing pumps and tanks for the sale of Ethanol and/or other Bio-diesel fuels.

Reduction of E-85 base fuel gas tax

• Reduces the tax from 18 cents to12.8 cents.

Tax Credits for E-85 and Hybrid Vehicles

• $85 per month or $1,000 per year income tax deduction for hybrid vehicles.
• 100% excise tax credit for the first year of ownership for E-85 compatible vehicles.

Increase Coal Gasification Incentives

• Extends provisions enacted last year to non-utility companies.

Agricultural Waste Digesters

• Gives a property tax exemption for the construction and use of an agricultural waste digester.