CHAPTER 13.5. CAPITAL INVESTMENT TAX CREDIT
IC 6-3.1-13.5
Chapter 13.5. Capital Investment Tax Credit
IC 6-3.1-13.5-1
"Corporation" defined
Sec. 1. As used in this chapter, "corporation" refers to the Indianaeconomic development corporation.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,SEC.86.
IC 6-3.1-13.5-2
"Pass through entity" defined
Sec. 2. As used in this chapter, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross incometax under IC 6-3-2-2.8(2);
(2) partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-3
"Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means theamount of the taxpayer's expenditures for:
(1) the purchase of new manufacturing or productionequipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existingmanufacturing facilities;
(4) onsite infrastructure improvements;
(5) the construction of new manufacturing facilities;
(6) costs associated with retooling existing machinery andequipment; and
(7) costs associated with the construction of special purposebuildings and foundations for use in the computer, software,biological sciences, or telecommunications industry;
that are certified by the corporation under section 10 of this chapteras being eligible for the credit under this chapter, if the equipment,machinery, facilities improvements, facilities, buildings, orfoundations are installed or used for a project having an estimatedtotal cost of at least seventy-five million dollars ($75,000,000) andin a county having a population of more than forty-three thousand(43,000) but less than forty-five thousand (45,000).
As added by P.L.291-2001, SEC.177. Amended by P.L.170-2002,SEC.25; P.L.4-2005, SEC.87.
IC 6-3.1-13.5-4
"State tax liability" defined
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer'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.291-2001, SEC.177. Amended by P.L.192-2002(ss),SEC.106.
IC 6-3.1-13.5-5
"Taxpayer" defined
Sec. 5. As used in this chapter, "taxpayer" means a person,corporation, partnership, or other entity that has any state taxliability.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-6
Entitlement to credit; amount
Sec. 6. (a) Subject to the provisions of this chapter, a taxpayer isentitled to a credit against the taxpayer's state tax liability for ataxable 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 fourteen percent (14%).
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-7
Qualifications for credit
Sec. 7. A taxpayer may claim the credit under this chapter only if:
(1) the average wage paid by the taxpayer to its Indianaemployees within the county in which the qualifying investmentis made exceeds the average wage paid in that county; or
(2) the taxpayer certifies to the corporation and provides proofas determined by the corporation that, as a result of thequalifying investment, the average wage paid by the taxpayer toits Indiana employees within the county in which the qualifyinginvestment is made will exceed the average wage paid in thatcounty.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,SEC.88.
IC 6-3.1-13.5-8
Credit for shareholder or partner of pass through entity
Sec. 8. (a) If a pass through entity does not have state income taxliability against which the tax credit provided by this chapter may beapplied, a shareholder or partner of the pass through entity is entitledto a tax credit equal to:
(1) the tax credit determined for the pass through entity for thetaxable year; multiplied by (2) the percentage of the pass through entity's distributiveincome to which the shareholder or partner is entitled.
(b) The credit provided under subsection (a) is in addition to a taxcredit to which a shareholder or partner of a pass through entity isotherwise entitled under this chapter.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-9
Division of credit; carryover of excess credit
Sec. 9. (a) The total value of a tax credit under this chapter shallbe divided equally over seven (7) years, beginning with the year inwhich the credit is granted. If the amount of credit provided underthis chapter for a taxpayer in a taxable year exceeds the taxpayer'sstate tax liability for that taxable year, the taxpayer may carry theexcess over to not more than three (3) subsequent taxable years. Theamount of the credit carryover from a taxable year shall be reducedto the extent that the carryover is used by the taxpayer to obtain acredit under this chapter for any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of anyunused credit.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-10
Requests for determinations; notice of intent to claim credit
Sec. 10. (a) To be entitled to a credit under this chapter, ataxpayer must request the corporation to determine whether anexpenditure is a qualified investment.
(b) To make a request under subsection (a), a taxpayer must filewith the corporation a notice of intent to claim the credit under thischapter. A taxpayer must file the notice with the corporation not laterthan February 15 of the calendar year following the calendar year inwhich the expenditure is made.
(c) After receiving a notice of intent to claim the credit, thecorporation shall review the notice and determine whether theexpenditure is a qualified investment and whether the taxpayer isentitled to claim the credit. The corporation shall, before April 1 ofthe calendar year in which the notice is received, send to the taxpayerand to the department of state revenue a letter:
(1) certifying that the taxpayer is entitled to claim the creditunder this chapter for the expenditure; or
(2) stating the reason why the taxpayer is not entitled to claimthe credit.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,SEC.89.
IC 6-3.1-13.5-11
Claim for credit on tax return
Sec. 11. 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.
A taxpayer claiming a credit under this chapter shall submit to thedepartment of state revenue a copy of the certification letter providedunder section 10 of this chapter. The taxpayer shall submit to thedepartment of state revenue all information that the department ofstate revenue determines is necessary for the calculation of the creditprovided by this chapter and for the determination of whether anexpenditure was for a qualified investment.
As added by P.L.291-2001, SEC.177. Amended by P.L.1-2002,SEC.30.
IC 6-3.1-13.5-12
Installation or completion of capital improvement required;repayment of tax liability and interest
Sec. 12. (a) If a taxpayer receives a credit under this chapter, theequipment, machinery, facilities improvements, facilities, buildings,or foundations for which the credit was granted must be fullyinstalled or completed not more than five (5) years after thecorporation issues a letter under section 10 of this chapter certifyingthat the taxpayer is entitled to claim the credit.
(b) If a taxpayer receives a credit under this chapter and does notmake the qualified investment (or a part of the qualified investment)for which the credit was granted within the time required bysubsection (a), the corporation may require the taxpayer to repay thefollowing:
(1) The additional amount of state tax liability that would havebeen paid by the taxpayer if the credit had not been granted forthe qualified investment (or part of the qualified investment)that was not made by the taxpayer within the time required bysubsection (a).
(2) Interest at a rate established under IC 6-8.1-10-1(c) on theadditional amount of state tax liability referred to in subdivision(1).
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,SEC.90.
IC 6-3.1-13.5-13
Adoption of rules
Sec. 13. The department and the department of state revenue shalladopt rules to carry out this chapter.
As added by P.L.291-2001, SEC.177.