Merit Institute Merit

The Indiana Pro-Entrepreneurship & AI Workforce Act (IN-AI-Workforce)

Indiana state companion to the AI Workforce Act. Extends InBiz, the Indiana Economic Development Corporation (IEDC), and the Ind. Code Ch. 6-3.1-4 research expense tax credit into AI-era reskilling and startup formation.

THE INDIANA PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT (IN-AI-WORKFORCE)

Vehicle: State passage. Indiana General Assembly, regular session. Primary referral to House Commerce, Small Business and Economic Development / Ways and Means and Senate Commerce and Technology / Tax and Fiscal Policy.

SECTION 1. SHORT TITLE

This Act may be cited as the “Indiana Pro-Entrepreneurship & AI Workforce Act (IN-AI-Workforce).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Indiana operates the InBiz business-formation portal through the Secretary of State under Ind. Code Title 23; that the Indiana Economic Development Corporation administers economic-development incentives under Ind. Code Ch. 5-28; that Ind. Code Ch. 6-3.1-4 provides a research-expense tax credit; that DWD administers Individual Training Accounts under Ind. Code Title 22 Art. 4.1; and that the Indiana Consumer Data Protection Act under Ind. Code Art. 24-15 governs consumer data handling. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH INDIANA LAW

Sec. 101. Definitions

  1. (a) “Qualified AI startup” means an Indiana-formed business entity under Ind. Code Title 23 whose principal business is AI-related software or services with fewer than 50 FTE employees at incentive claim.
  2. (b) “AI-displaced worker” means an Indiana-domiciled worker whose separation is documented as AI-driven.
  3. (c) “DWD provider” means a provider on the Indiana ETPL under 29 U.S.C. Sec. 3152 and Ind. Code Title 22.

Sec. 102. Coordination with Existing Indiana Law

  1. (a) This Act shall be construed consistently with:
  • Ind. Code Title 23 (business entities; Ch. 23-0.5, Ch. 23-18 LLCs, Ch. 23-1 business corporations).
  • Ind. Code Ch. 6-3.1-4 (research expense credit) and Ch. 6-3.1 (other credits).
  • Ind. Code Ch. 5-28 (Indiana Economic Development Corporation).
  • Ind. Code Title 22 Art. 4.1 (DWD).
  • Ind. Code Title 20 Art. 19 and Art. 30 (K-12 standards) and Title 21 (postsecondary).
  • Ind. Code Art. 24-15 (Consumer Data Protection Act).

TITLE II — STATE BUSINESS-FORMATION REFORM

Sec. 201. InBiz Streamlining

  1. (a) The Secretary of State shall operate a same-business-day formation pathway through InBiz for domestic LLCs under Ind. Code Ch. 23-18 and business corporations under Ch. 23-1.
  2. (b) A machine-readable API for formation filings shall be published within 12 months.

Sec. 202. One-Stop Indiana Business Portal

  1. (a) IEDC, in coordination with the Secretary of State, Department of Revenue, and DWD, shall operate a One-Stop Indiana Business Portal integrating entity formation; tax registration; unemployment-insurance registration; and DWD Employer of Record registration.

TITLE III — INDIANA AI WORKFORCE TRANSITION

Sec. 301. AI Workforce Transition Accounts

  1. (a) An AI-displaced worker may establish an AI Workforce Transition Account at a DWD regional workforce office to pay tuition to a DWD provider for reskilling to an occupation covered by an INRMC under IN-ACSA Sec. 201 or a Federal FRAC.
  2. (b) Funding through state appropriations and Indiana’s allocation of Federal workforce funds under 29 U.S.C. Sec. 3161 et seq.

Sec. 302. DWD Integration

  1. (a) DWD shall administer Accounts through its regional workforce offices and Work One centers under Ind. Code Title 22 Art. 4.1.
  2. (b) Administrative overhead shall not exceed 10 percent.

TITLE IV — INDIANA AI ENTREPRENEURSHIP INCENTIVES

Sec. 401. Indiana AI-Startup Research Expense Credit Enhancement

  1. (a) A qualified AI startup may claim an enhanced credit under Ind. Code Ch. 6-3.1-4 equal to a percentage of qualified in-State research and development expenditures, subject to an annual program cap.
  2. (b) The Department of Revenue shall administer the enhancement consistent with existing Ch. 6-3.1-4 mechanics.

Sec. 402. Capital Access via IEDC

  1. (a) IEDC is authorized to prioritize qualified AI startups under its existing programs under Ind. Code Ch. 5-28.
  2. (b) No expansion beyond amounts appropriated.

TITLE V — K-12 & POSTSECONDARY AI FLUENCY

Sec. 501. K-12 AI-Fluency Curriculum Option

  1. (a) The State Board of Education, consistent with Ind. Code Title 20 Art. 31 (academic standards), shall approve optional AI-fluency curriculum packages for use by school districts, charter schools, and CSP participating schools under Ind. Code Sec. 20-51-4.
  2. (b) Curriculum is optional.

Sec. 502. Community-College & University AI-Fluency Programs

  1. (a) Ivy Tech Community College, Vincennes University, and the public four-year systems may offer AI-fluency certificate programs aligning with the INRMC Registry under IN-ACSA Sec. 201.
  2. (b) Such certificates shall be treated consistently with other workforce-certificate programs for purposes of CHE performance-funding policies adopted under Ind. Code Title 21 Art. 18.

TITLE VI — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 601. Severability

If any provision of this Act is held invalid, the invalidity shall not affect the remainder.

Sec. 602. Effective Date

This Act shall take effect July 1 of the year following enactment.

Canonical federal version: AI Workforce. Other Indiana bills: IN-ACSA, IN-MEWRA, IN-GT&P.