Sec. 2. (a) As used in this section, “tax expenditure” means a tax exemption, tax deduction, tax credit, preferential tax rate, or tax provision that reduces a person’s state tax liability.

     (b) The legislative services agency shall, before November 1 of each even numbered year, prepare and publish a tax expenditure report.

Terms Used In Indiana Code 2-5-3.2-2

  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (c) The tax expenditure report must include at least the following:

(1) A listing and explanation of each tax expenditure.

(2) The history of each tax expenditure.

(3) An estimate for each state fiscal year of the next biennial budget of the cost of each tax expenditure.

(4) A discussion of the criteria used to determine whether a tax provision is or is not a tax expenditure.

     (d) The legislative services agency shall submit the tax expenditure report to:

(1) the legislative council;

(2) the interim study committee on fiscal policy established by Ind. Code § 2-5-1.3-4; and

(3) the chairpersons and ranking minority members of:

(A) the house committee on ways and means; and

(B) the senate committee on appropriations;

for use in the preparation of and consideration of the state biennial budget.

As added by P.L.36-2015, SEC.2. Amended by P.L.201-2023, SEC.47.

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