Roughly $1.1 billion of state and local tax revenue could be spent on two pro sports stadium developments under a bill Indiana Gov. Eric Holcomb (R) signed April 29.
Under S.B. 7, the National Basketball Association’s Indiana Pacers could net roughly $800 million in public support to keep the squad in an updated Indianapolis facility. Developers behind a Major League Soccer expansion drive could also receive up to $304 million in incentives for creating a new $550 million stadium.
The Pacers haven’t addressed the enactment yet. However, owners of Indy Eleven, the MLS hopeful seeking to construct an 18,500-seat stadium, issued a statement April 29 saying the bill includes no “new taxes and no appropriations from city of state governments.”
- Both teams’ incentives derive from a mix of state and local tax capture.
- Several local taxes, such as ticket taxes and auto-rental taxes, would have decreased in Marion County (Indianapolis) under prior law—they’re now extended at current rates to support the stadium projects.
- Stadium incentives have been controversial for decades, but few state legislators criticized the bill or the underlying deals between local government and the teams.
- Both teams must still iron out plans with city and county developers.