CHAPTER 16. HISTORIC REHABILITATION CREDIT
IC 6-3.1-16
Chapter 16. Historic Rehabilitation Credit
IC 6-3.1-16-1
Definitions
Sec. 1. The definitions set forth in:
(1) IC 14-8-2 that apply to IC 14-21-1; and
(2) IC 14-21-1;
apply throughout this chapter.
As added by P.L.77-1993, SEC.1. Amended by P.L.1-1995, SEC.49.
IC 6-3.1-16-2
"Division"
Sec. 2. As used in this chapter, "division" means the division ofhistoric preservation and archaeology of the department of naturalresources.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-2.7
"Pass through entity"
Sec. 2.7. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross incometax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
As added by P.L.57-1996, SEC.4.
IC 6-3.1-16-3
"Preservation"
Sec. 3. (a) As used in this chapter, "preservation" means theapplication of measures to sustain the form, integrity, and materialof:
(1) a building or structure; or
(2) the form and vegetative cover of property.
(b) The term includes stabilization work and the maintenance ofhistoric building materials.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-4
"Qualified expenditures"
Sec. 4. (a) As used in this chapter, "qualified expenditures" meansexpenditures for preservation or rehabilitation that are chargeable toa capital account.
(b) The term does not include costs that are incurred to do thefollowing:
(1) Acquire a property or an interest in a property.
(2) Pay taxes due on a property.
(3) Enlarge an existing structure.
(4) Pay realtor's fees associated with a structure or property. (5) Pay paving and landscaping costs.
(6) Pay sales and marketing costs.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-5
"Rehabilitation"
Sec. 5. As used in this chapter, "rehabilitation" means the processof returning a property to a state of utility through repair or alterationthat makes possible an efficient contemporary use while preservingthe parts or features of the property that are significant to thehistorical, architectural, or archeological values of the property.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-6
"State tax liability"
Sec. 6. As used in this chapter, "state tax liability" means ataxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7(the adjusted gross income tax), as computed after the application ofall credits that under IC 6-3.1-1-2 are to be applied before the creditprovided by this chapter.
As added by P.L.77-1993, SEC.1. Amended by P.L.192-2002(ss),SEC.108.
IC 6-3.1-16-6.1
"Taxpayer"
Sec. 6.1. As used in this chapter, "taxpayer" means an individual,a corporation, an S corporation, a partnership, a limited liabilitycompany, a limited liability partnership, a nonprofit organization, ora joint venture.
As added by P.L.54-1997, SEC.2.
IC 6-3.1-16-7
Credit; amount; married couple filing separate returns
Sec. 7. (a) Subject to section 14 of this chapter, a taxpayer isentitled to a credit against the taxpayer's state tax liability in thetaxable year in which the taxpayer completes the preservation orrehabilitation of historic property and obtains the certificationsrequired under section 8 of this chapter.
(b) The amount of the credit is equal to twenty percent (20%) ofthe qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation ofhistoric property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)spouse may take the whole credit.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-7.5
Credit; pass through entity
Sec. 7.5. (a) If a pass through entity is entitled to a credit undersection 7 of this chapter but does not have state tax liability againstwhich the tax credit may be applied, a shareholder, partner, ormember of the pass through entity is entitled to 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, partner, or member is entitled.
(b) The credit provided under subsection (a) is in addition to a taxcredit to which a shareholder, partner, or member of a pass throughentity is otherwise entitled under this chapter. However, a passthrough entity and a shareholder, partner, or member of the passthrough entity may not claim more than one (1) credit for the samequalified expenditure.
As added by P.L.57-1996, SEC.5. Amended by P.L.54-1997, SEC.3.
IC 6-3.1-16-8
Qualifying conditions
Sec. 8. A taxpayer qualifies for a credit under section 7 of thischapter if all of the following conditions are met:
(1) The historic property is:
(A) located in Indiana;
(B) at least fifty (50) years old; and
(C) except as provided in section 7(c) of this chapter, ownedby the taxpayer.
(2) The division certifies that the historic property is listed inthe register of Indiana historic sites and historic structures.
(3) The division certifies that the taxpayer submitted a proposedpreservation or rehabilitation plan to the division that complieswith the standards of the division.
(4) The division certifies that the preservation or rehabilitationwork that is the subject of the credit substantially complies withthe proposed plan referred to in subdivision (3).
(5) The preservation or rehabilitation work is completed in notmore than:
(A) two (2) years; or
(B) five (5) years if the preservation or rehabilitation planindicates that the preservation or rehabilitation is initiallyplanned for completion in phases.
The time in which work must be completed begins when thephysical work of construction or destruction in preparation forconstruction begins.
(6) The historic property is:
(A) actively used in a trade or business;
(B) held for the production of income; or
(C) held for the rental or other use in the ordinary course ofthe taxpayer's trade or business.
(7) The qualified expenditures for preservation or rehabilitation
of the historic property exceed ten thousand dollars ($10,000).
As added by P.L.77-1993, SEC.1. Amended by P.L.54-1997, SEC.4.
IC 6-3.1-16-9
Certifications; conditions; appeal
Sec. 9. (a) The division shall provide the certifications referred toin section 8(3) and 8(4) of this chapter if a taxpayer's proposedpreservation or rehabilitation plan complies with the standards of thedivision and the taxpayer's preservation or rehabilitation workcomplies with the plan.
(b) The taxpayer may appeal a decision by the division under thischapter to the review board.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-10
Claim procedure
Sec. 10. To obtain a credit under this chapter, a taxpayer mustclaim the credit on the taxpayer's annual state tax return or returns inthe manner prescribed by the department of state revenue. Thetaxpayer shall submit to the department of state revenue thecertifications by the division required under section 8 of this chapterand all information that the department of state revenue determinesis necessary for the calculation of the credit provided by this chapter.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-11
Adjusted basis reduction
Sec. 11. For purposes of IC 6-3, the adjusted basis of:
(1) the structure, if the historic property is a structure; or
(2) the entire property, if the historic property is not a structure;
shall be reduced by the amount of a credit granted under this chapter.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-12
Recapture
Sec. 12. (a) A credit claimed under this chapter shall berecaptured from the taxpayer if:
(1) the property is transferred less than five (5) years aftercompletion of the certified preservation or rehabilitation work;or
(2) less than five (5) years after completion of the certifiedpreservation or rehabilitation, additional modifications to theproperty are undertaken that do not meet the standards of thedivision.
(b) If the recapture of a credit is required under this section, anamount equal to the credit recaptured shall be added to the taxliability of the taxpayer for the taxable year during which the creditis recaptured.
As added by P.L.77-1993, SEC.1.
IC 6-3.1-16-13
Carryover; unused credit
Sec. 13. (a) If the credit provided by this chapter exceeds ataxpayer's state tax liability for the taxable year for which the creditis first claimed, the excess may be carried over to succeeding taxableyears and used as a credit against the tax otherwise due and payableby the taxpayer under IC 6-3 during those taxable years. Each timethat the credit is carried over to a succeeding taxable year, the creditis to be reduced by the amount that was used as a credit during theimmediately preceding taxable year. The credit provided by thischapter may be carried forward and applied to succeeding taxableyears for fifteen (15) taxable years following the unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shallbe applied against the taxpayer's tax liability for that taxable yearbefore any credit carryover is applied against that liability undersubsection (a).
(c) A taxpayer is not entitled to any carryback or refund of anyunused credit.
As added by P.L.77-1993, SEC.1. Amended by P.L.192-2002(ss),SEC.109.
IC 6-3.1-16-14
Annual limit
Sec. 14. The amount of tax credits allowed under this chapter maynot exceed:
(1) seven hundred fifty thousand dollars ($750,000) in the statefiscal year beginning July 1, 1997, and the state fiscal yearbeginning July 1, 1998; and
(2) four hundred fifty thousand dollars ($450,000) in a statefiscal year that begins July 1, 1999, or thereafter.
As added by P.L.77-1993, SEC.1. Amended by P.L.54-1997, SEC.5.
IC 6-3.1-16-15
Rules
Sec. 15. The following may adopt rules under IC 4-22-2 to carryout this chapter:
(1) The department of state revenue.
(2) The division.
As added by P.L.77-1993, SEC.1.