§ 5-1-14-3 — Maintenance of federal tax exclusion from gross income for interest on bonds

Indiana § 5-1-14-3

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 14: Miscellaneous Provisions

Text

Notwithstanding any other law, any issuer may
take any reasonable and necessary action to establish or maintain the
exclusion from gross income for interest on obligations of the issuer
under federal law. These actions may include, without limitation:
(1) filing information reports with the federal government;
(2) rebating money derived from bond proceeds or money treated
as bond proceeds under federal law, or earnings thereon, to the
federal government;
(3) restricting the yield on money or earnings described in
subdivision (2) to the yield on bonds of the issuer;
(4) investing money or earnings described in subdivision (2) in
obligations of issuers that bear interest that is excludable from
gross income under federal law;
(5) issuing obligations in an amount sufficient to serve the public
purpose of the financing without considering earnings thereon;
(6) qualifying obligations under any volume cap or electing any
carryforward of unused volume cap;
(7) designating, through its legislative body or any board
responsible for issuing obligations as long as the obligations are
executed by the executive of the issuer, obligations to qualify for
any exemption from the loss of any deduction for interest incurred
by any financial institution to carry tax exempt obligations or for
any exemption from federal arbitrage rebate requirements; and
(8) complying with limitations imposed by federal law on the
issuance of tax exempt bonds under IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-15.3, including, without limitation:
(A) designation of redevelopment project areas by a legislative
body (as defined in IC 36-1-2-9) having jurisdiction over the
area;
(B) considering any factors required by federal law in
determining whether an area meets the criteria for designation
as a redevelopment project area; and
(C) limiting the use of property in a redevelopment project area.

Legislative History

As added by P.L.27-1986, SEC.1. Amended by P.L.37-1988, SEC.4; P.L.2-1989, SEC.4; P.L.185-2005, SEC.1.