Indiana Code Title 6. Taxation § 6-3-5-4

Sec. 4. (a) If the Indiana economic development corporation established under IC 5-28 and a similar agency or body of a state bordering Indiana enter into an agreement for mutual economic development, the department of state revenue may enter into a payment agreement with that bordering state or an authorized agency of that bordering state.  The payment agreement must provide for an obligation by the bordering state substantially similar to this section.  The payment agreement must be reviewed by the budget agency.

(b) A payment agreement must provide that the payment by the department of state revenue cannot exceed the incremental income tax withholdings collected by the department as a result of the compensation of new employees who are Indiana residents and whose jobs are being incentivized by that border state under an agreement for mutual economic development.

(c) The amount needed to make the payment is appropriated from the state general fund.