CHAPTER 11. INDUSTRIAL RECOVERY TAX CREDIT

IC 6-3.1-11
    Chapter 11. Industrial Recovery Tax Credit

IC 6-3.1-11-1
"Applicable percentage" defined
    Sec. 1. As used in this chapter, "applicable percentage" means thepercentage determined as follows:
        (1) If a plant that is located on an industrial recovery site wasplaced in service at least twenty (20) years ago but less thanthirty (30) years ago, the applicable percentage is fifteenpercent (15%).
        (2) If a plant that is located on an industrial recovery site wasplaced in service at least thirty (30) years ago but less than forty(40) years ago, the applicable percentage is twenty percent(20%).
        (3) If a plant that is located on an industrial recovery site wasplaced in service at least forty (40) years ago, the applicablepercentage is twenty-five percent (25%).
The time that has expired since a plant was placed in service shall bedetermined as of the date that an application is filed with the boardfor designation of the location as an industrial recovery site underthis chapter.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-2
"Board" defined
    Sec. 2. As used in this chapter, "board" means the board of theIndiana economic development corporation created under IC 5-28-4.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.4-2005,SEC.60.

IC 6-3.1-11-3
"Executive" defined
    Sec. 3. As used in this chapter, "executive" has the meaning setforth in IC 36-1-2-5.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-4
"Floor space" defined
    Sec. 4. As used in this chapter, "floor space" means the usableinterior floor space of a building.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-5
"Industrial recovery site" defined
    Sec. 5. As used in this chapter, "industrial recovery site" means anindustrial recovery site designated under this chapter.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-6 "Legislative body" defined
    Sec. 6. As used in this chapter, "legislative body" has the meaningset forth in IC 36-1-2-9.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-7
"Municipality" defined
    Sec. 7. As used in this chapter, "municipality" has the meaning setforth in IC 36-1-2-11.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-8
"Placed in service" defined
    Sec. 8. As used in this chapter, "placed in service" means thatproperty is placed in a condition or state of readiness and availabilityfor a specifically assigned function. In the case of a plant comprisedof a complex of buildings, the entire plant shall be considered tohave been placed in service as of the date that a building was placedin service if the building has floor space that, when aggregated withthe floor space of all buildings in the complex placed in service onearlier dates, exceeds fifty percent (50%) of the total floor space ofall buildings in the complex.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-9
"Plant" defined
    Sec. 9. As used in this chapter, "plant" means a building orcomplex of buildings used, or designed and constructed for use, inproduction, manufacturing, fabrication, assembly, processing,refining, finishing, or warehousing of tangible personal property,whether the tangible personal property is or was for sale to thirdparties or for use by the owner in the owner's business.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-10
"Qualified investment" defined
    Sec. 10. As used in this chapter, "qualified investment" means theamount of the taxpayer's expenditures for rehabilitation of propertylocated within an industrial recovery site under a plan contained inan application approved by the board under section 18 of thischapter. An expenditure for purposes or by persons not covered bysuch a plan may not be a qualified investment.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-11
"Rehabilitation" defined
    Sec. 11. As used in this chapter, "rehabilitation" means theremodeling, repair, or betterment of real property in any manner orany enlargement or extension of real property.
As added by P.L.379-1987(ss), SEC.11.
IC 6-3.1-11-12
"State tax liability" defined
    Sec. 12. As used in this chapter, "state tax liability" means thetaxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 27-1-18-2 (the insurance premiums tax); and
        (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, underIC 6-3.1-1-2, are to be applied before the credit provided by thischapter.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.80-1989,SEC.10; P.L.347-1989(ss), SEC.16; P.L.192-2002(ss), SEC.101.

IC 6-3.1-11-13
"Taxpayer" defined
    Sec. 13. As used in this chapter, "taxpayer" means any person,corporation, limited liability company, partnership, or other entitythat has any state tax liability and that is the owner or developer ofan industrial recovery site. The term includes a lessee that is assignedsome part of a credit under section 16(c) of this chapter.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.8-1993,SEC.89; P.L.8-1996, SEC.9.

IC 6-3.1-11-14
"Vacant" defined
    Sec. 14. As used in this chapter, "vacant" means with respect toa plant that at least seventy-five percent (75%) of the plant placed inservice is not used to carry on production, manufacturing, assembly,processing, refining, finishing, or warehousing of tangible personalproperty.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-15
"Vacant industrial facility" defined
    Sec. 15. As used in this chapter, "vacant industrial facility" meansa tract of land on which there is located a plant that:
        (1) has at least two hundred fifty thousand (250,000) square feetof floor space;
        (2) was placed in service at least twenty (20) years ago; and
        (3) has been vacant for two (2) or more years, unless the tractand the plant are owned by a municipality or a county, in whichcase the two (2) year requirement does not apply.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.26-2004,SEC.1.

IC 6-3.1-11-16
Credit for qualified investment; computation of amount;assignment of credit
    Sec. 16. (a) Subject to section 21 of this chapter, a taxpayer isentitled to a credit against the taxpayer's state tax liability for a

taxable year if the taxpayer makes a qualified investment in that year.
    (b) The amount of the credit to which a taxpayer is entitled is thequalified investment made by the taxpayer during the taxable yearmultiplied by the applicable percentage.
    (c) A taxpayer may assign any part of the credit to which thetaxpayer is entitled under this chapter to a lessee of the industrialrecovery site. A credit that is assigned under this subsection remainssubject to this chapter.
    (d) An assignment under subsection (c) must be in writing andboth the taxpayer and the lessee must report the assignment on theirstate tax return for the year in which the assignment is made, in themanner prescribed by the department of revenue. The taxpayer shallnot receive value in connection with the assignment under subsection(c) that exceeds the value of the part of the credit assigned.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.8-1996,SEC.10.

IC 6-3.1-11-17
Carryover of excess credit; carryback or refund of unused creditbarred
    Sec. 17. (a) If the amount determined under section 16(b) of thischapter for a taxable year exceeds the taxpayer's state tax liability forthat taxable year, the taxpayer may carry the excess over to theimmediately following taxable years. The amount of the creditcarryover from a taxable year shall be reduced to the extent that thecarryover is used by the taxpayer to obtain a credit under this chapterfor any subsequent taxable year.
    (b) A taxpayer is not entitled to a carryback or refund of anyunused credit.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-18
Designation of vacant industrial facility as an industrial recoverysite; application; requisites; procedures
    Sec. 18. (a) After approval by ordinance or resolution of thelegislative body, the executive of any municipality may submit anapplication to the board requesting that a vacant industrial facilitywithin the municipality be designated as an industrial recovery site.After approval by resolution of the legislative body, the executive ofany county may submit an application to the board requesting that avacant industrial facility within the county, but not within anymunicipality, be designated as an industrial recovery site. In additionto any other information required by the board, the application shallinclude a description of the plan proposed by the municipality orcounty for development and use of the vacant industrial facility.
    (b) If the property described in the application submitted to theboard meets the definition of a vacant industrial facility as of the dateof filing of the application, the board shall:
        (1) evaluate the application;
        (2) arrive at a decision based on the factors set forth in section

19 of this chapter; and
        (3) either designate the property as an industrial recovery site orreject the application.
    (c) If the board determines that:
        (1) a substantial reduction or cessation of operations at a facilityin Indiana after January 1, 1987, has created a vacant industrialfacility; and
        (2) the operations formerly located at that facility have beenrelocated to a specific site or sites outside the United States;
the facility may be designated as an industrial recovery site only if ithas been donated or sold to the municipality. Such a facility may bedesignated as an industrial recovery site whether it is owned by themunicipality or by a taxpayer who acquired it from the municipalityafter the donation or sale.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-19
Evaluation of applications; factors considered
    Sec. 19. The board shall consider the following factors inevaluating applications filed under this chapter:
        (1) The level of distress in the surrounding community causedby the loss of jobs at the vacant industrial facility.
        (2) The desirability of the intended use of the vacant industrialfacility under the plan proposed by the municipality or countyand the likelihood that the implementation of the plan willimprove the economic and employment conditions in thesurrounding community.
        (3) Evidence of support for the designation by residents,businesses, and private organizations in the surroundingcommunity.
        (4) Evidence of a commitment by private or governmentalentities to provide financial assistance in implementing the planproposed by the municipality or county, including theapplication of IC 36-7-12, IC 36-7-13, IC 36-7-14, orIC 36-7-15.1 to assist in the financing of improvements orredevelopment activities benefiting the vacant industrialfacility.
        (5) Evidence of efforts by the municipality or county toimplement the proposed plan without additional financialassistance from the state.
        (6) Whether the industrial recovery site is within an economicrevitalization area designated under IC 6-1.1-12.1.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.146-2008,SEC.324.

IC 6-3.1-11-20
Contingent conditions upon designation; revocation of approval forfailure to comply
    Sec. 20. The board may provide that the industrial recovery sitedesignation is contingent on the development and use of the vacant

industrial facility in substantial compliance with the plan describedin the application submitted under section 18 of this chapter. Theboard may revoke its approval of an industrial recovery sitedesignation for failure to comply with these conditions.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-21
Disqualification to claim credit due to substantial reduction orcessation of operations in Indiana; determination
    Sec. 21. A taxpayer is not entitled to claim the credit provided bythis chapter to the extent that it substantially reduces or ceases itsoperations in Indiana in order to relocate them within the industrialrecovery site. A determination that a taxpayer is not entitled to thecredit provided by this chapter as a result of a substantial reductionor cessation of operations shall apply to credits that would otherwisearise in the taxable year in which the substantial reduction orcessation occurs and in all subsequent years. Determinations underthis section shall be made by the board.
As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-22
Application of credit against taxes owed; order; computation
    Sec. 22. (a) A credit to which a taxpayer is entitled under thischapter shall be applied against taxes owed by the taxpayer in thefollowing order:
        (1) Against the taxpayer's adjusted gross income tax liability(IC 6-3-1 through IC 6-3-7) for the taxable year.
        (2) Against the taxpayer's insurance premiums tax liability (IC27-1-18-2) for the taxable year.
        (3) Against the taxpayer's financial institutions tax (IC 6-5.5)for the taxable year.
    (b) Whenever the tax paid by the taxpayer under any of the taxprovisions listed in subsection (a) is a credit against the liability ora deduction in determining the tax base under another Indiana taxprovision, the credit or deduction shall be computed without regardto the credit to which a taxpayer is entitled under this chapter.
As added by P.L.379-1987(ss), SEC.11. Amended by P.L.80-1989,SEC.11; P.L.347-1989(ss), SEC.17; P.L.1-1990, SEC.79;P.L.192-2002(ss), SEC.102; P.L.1-2003, SEC.37.

IC 6-3.1-11-23
Claiming of credit on annual tax return; certification; requiredinformation
    Sec. 23. To receive the credit provided by this chapter, a taxpayermust claim the credit on the taxpayer's annual state tax return orreturns in the manner prescribed by the department of state revenue.The taxpayer shall submit to the department of state revenue thecertification of the board stating the percentage of credit allowableunder this chapter and all other information that the departmentdetermines is necessary for the calculation of the credit provided by

this chapter and for the determination of whether an expenditure wasfor a qualified investment.
As added by P.L.379-1987(ss), SEC.11.