House approves concurrence on ‘quantum quarter’ tax incentive bill with tighter investment thresholds

The Indiana House on April 21 approved a concurrence to House Bill 16-01, a tax-incentive bill that changes exemptions and investment thresholds tied to a so-called “quantum quarter” incentive.

Representative Holly, speaking for the motion, said the Senate made three substantive changes: the measure’s effective date was changed to an emergency effective date; the bill clarified that the “quantum quarter” exemption cannot be used for residential development and limits commercial use to 15%; and the Indiana Economic Development Corporation (IEDC) must require a qualifying data-center project to invest $750,000,000 within the first three years (with a separate quantum investment threshold referenced on the floor).

Representative Giaquina asked about the fiscal cost to the state; Holly responded that staff did not have precise numbers on the floor, saying “Again, no idea,” and added, “if they don't come, we don't get any money, period.” Another member said they were “cautious” about the state’s exposure given projected financial strains.

The House adopted the concurrence by roll call; the clerk announced the vote as 61 ayes, 24 nays and the motion to concur was adopted.

Details: Sponsors described the change as a sales-tax exemption on qualifying equipment similar to existing exemptions for data centers, with clarifications excluding broad application to fiber purchases. The IEDC investment thresholds for 50-year tax extension approval were described during remarks on the floor.

Next steps: The House will notify the Senate of the concurrence. Floor speakers emphasized the investment-driven nature of the incentive and said there is no state payment unless private investment meets the statutory thresholds.