Airport development zones

Authority: IC 6-8.1-3-3 ; IC 8-22-3.5-15

Affected: IC 6-3 ; IC 8-22-3.5-3 ; IC 36-3-1

Sec. 154. (a) A person who locates and operates a qualified airport development project in an airport development zone in a consolidated city shall not incur any adjusted gross income tax liability or supplemental net income tax liability as a result of the following activities: (1) Locating the project in the consolidated city. (2) The construction or completion of the project. (3) The employment of personnel or the ownership or rental of property at or in conjunction with the project. (4) The operation of the project or the activities at or in connection with the project. In other words, the person's apportionment factor will not change due to the completion or operation of the project. As an example, assume that the project is an airline maintenance facility. At the completion of the project, the facility is worth six hundred million dollars ($600,000,000). The payroll from operating the facility is two hundred million dollars ($200,000,000). The person also realizes fifty million dollars ($50,000,000) in its first year of operations from maintenance performed on airplanes belonging to other parties and from the sale of airplane parts delivered within the airport development zone. These amounts would not appear in either the numerator or the denominator of their respective factors. Also, the person will not be subject to adjusted gross income tax or supplemental net income tax on nonbusiness income earned by the person that is allocable to the airport development zone.