IC 6-3.1-19
    Chapter 19. Community Revitalization Enhancement District TaxCredit

IC 6-3.1-19-1
"State and local tax liability"
    Sec. 1. As used in this chapter, "state and local tax liability"means a taxpayer's total tax liability incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 6-3.5-1.1 (county adjusted gross income tax);
        (3) IC 6-3.5-6 (county option income tax);
        (4) IC 6-3.5-7 (county economic development income tax);
        (5) IC 6-5.5 (the financial institutions tax); and
        (6) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of all credits that underIC 6-3.1-1-2 are to be applied before the credit provided by thischapter.
As added by P.L.125-1998, SEC.3. Amended by P.L.192-2002(ss),SEC.113.

IC 6-3.1-19-1.5
"Pass through entity"
    Sec. 1.5. 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.224-2003, SEC.194.

IC 6-3.1-19-2
"Qualified investment"
    Sec. 2. As used in this chapter, "qualified investment" means theamount of a taxpayer's expenditures that is:
        (1) for redevelopment or rehabilitation of property locatedwithin a community revitalization enhancement districtdesignated under IC 36-7-13;
        (2) made under a plan adopted by an advisory commission onindustrial development under IC 36-7-13; and
        (3) approved by the Indiana economic development corporationbefore the expenditure is made.
As added by P.L.125-1998, SEC.3. Amended by P.L.4-2005, SEC.94.

IC 6-3.1-19-2.5
"Taxpayer"
    Sec. 2.5. As used in this chapter, "taxpayer" means an individualor entity that has any state and local tax liability.
As added by P.L.224-2003, SEC.195.

IC 6-3.1-19-3 Entitlement to credit; amount; assignment
    Sec. 3. (a) Except as provided in section 5 or 5.5 of this chapter,a taxpayer is entitled to a credit against the taxpayer's state and localtax liability for a taxable year if the taxpayer makes a qualifiedinvestment 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 twenty-five percent (25%).
    (c) A taxpayer may assign any part of the credit to which thetaxpayer is entitled under this chapter to a lessee of propertyredeveloped or rehabilitated under section 2 of this chapter. A creditthat is assigned under this subsection remains subject 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. The taxpayer may not receivevalue in connection with the assignment under subsection (c) thatexceeds the value of the part of the credit assigned.
    (e) If a pass through entity is entitled to a credit under this chapterbut does not have state and local tax liability against which the taxcredit may be applied, a shareholder, partner, or member of the passthrough 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.
The credit provided under this subsection is in addition to a tax creditto which a shareholder, partner, or member of a pass through entityis otherwise entitled under this chapter. However, a pass throughentity and an individual who is a shareholder, partner, or member ofthe pass through entity may not claim more than one (1) credit for thesame investment.
    (f) A taxpayer that is otherwise entitled to a credit under thischapter for a taxable year may claim the credit regardless of whetherany income tax incremental amount or gross retail incrementalamount has been:
        (1) deposited in the incremental tax financing fund establishedfor the community revitalization enhancement district; or
        (2) allocated to the district.
As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003,SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1;P.L.113-2010, SEC.59.

IC 6-3.1-19-4
Credit carryover; carryback or refund unavailable
    Sec. 4. If the amount of the credit determined under section 3 ofthis chapter for a taxable year exceeds the taxpayer's state taxliability for that taxable year, the taxpayer may carry the excess overto the immediately following taxable years. The amount of the creditcarryover from a taxable year shall be reduced to the extent that the

carryover is used by the taxpayer to obtain a credit under this chapterfor any subsequent taxable year. A taxpayer is not entitled to acarryback or refund of any unused credit.
As added by P.L.125-1998, SEC.3.

IC 6-3.1-19-5
Ineligibility for credit to extent of reduction or cessation ofoperations in Indiana; eligibility determinations; criteria; appeals
    Sec. 5. (a) A taxpayer is not entitled to claim the credit providedby this chapter to the extent that the taxpayer substantially reducesor ceases its operations in Indiana in order to relocate them withinthe district. Determinations under this section shall be made by thedepartment. The department shall adopt a proposed order concerninga taxpayer's eligibility for the credit based on subsection (b) and thefollowing criteria:
        (1) A site-specific economic activity, including sales, leasing,service, manufacturing, production, storage of inventory, or anyactivity involving permanent full-time or part-time employees,shall be considered a business operation.
        (2) With respect to an operation located outside the district(referred to in this section as a "nondistrict operation"), any ofthe following that occurs during the twelve (12) months beforethe completion of the physical relocation of all or part of theactivity described in subdivision (1) from the nondistrictoperation to the district as compared with the twelve (12)months before that twelve (12) months shall be considered asubstantial reduction:
            (A) A reduction in the average number of full-time orpart-time employees of the lesser of one hundred (100)employees or twenty-five percent (25%) of all employees.
            (B) A twenty-five percent (25%) reduction in the averagenumber of goods manufactured or produced.
            (C) A twenty-five percent (25%) reduction in the averagevalue of services provided.
            (D) A ten percent (10%) reduction in the average value ofstored inventory.
            (E) A twenty-five percent (25%) reduction in the averageamount of gross income.
    (b) Notwithstanding subsection (a), a taxpayer that wouldotherwise be disqualified under subsection (a) is eligible for thecredit provided by this chapter if the taxpayer meets at least one (1)of the following conditions:
        (1) The taxpayer relocates all or part of its nondistrict operationfor any of the following reasons:
            (A) The lease on property necessary for the nondistrictoperation has been involuntarily lost through no fault of thetaxpayer.
            (B) The space available at the location of the nondistrictoperation cannot accommodate planned expansion neededby the taxpayer.            (C) The building for the nondistrict operation has beencertified as uninhabitable by a state or local buildingauthority.
            (D) The building for the nondistrict operation has beentotally destroyed through no fault of the taxpayer.
            (E) The renovation and construction costs at the location ofthe nondistrict operation are more than one and one-half (11/2) times the costs of purchase, renovation, andconstruction of a facility in the district, as certified by three(3) independent estimates.
            (F) The taxpayer had existing operations in the district andthe nondistrict operations relocated to the district are anexpansion of the taxpayer's operations in the district.
        A taxpayer is eligible for benefits and incentives under clause(C) or (D) only if renovation and construction costs at thelocation of the nondistrict operation are more than one andone-half (1 1/2) times the cost of purchase, renovation, andconstruction of a facility in the district. These costs must becertified by three (3) independent estimates.
        (2) The taxpayer has not terminated or reduced the pension orhealth insurance obligations payable to employees or formeremployees of the nondistrict operation without the consent ofthe employees.
    (c) The department shall cause to be delivered to the taxpayer andto any person who testified before the department in favor ofdisqualification of the taxpayer a copy of the department's proposedorder. The taxpayer and these persons shall be considered parties forpurposes of this section.
    (d) A party who wishes to appeal the proposed order of thedepartment shall, within ten (10) days after the party's receipt of theproposed order, file written objections with the department. Thedepartment shall immediately forward copies of the objections to thedirector of the budget agency and the board of the Indiana economicdevelopment corporation. A hearing panel composed of thecommissioner of the department or the commissioner's designee, thedirector of the budget agency or the director's designee, and thepresident of the Indiana economic development corporation or thepresident's designee shall set the objections for oral argument andgive notice to the parties. A party at its own expense may cause to befiled with the hearing panel a transcript of the oral testimony or anyother part of the record of the proceedings. The oral argument shallbe on the record filed with the hearing panel. The hearing panel mayhear additional evidence or remand the action to the department withinstructions appropriate to the expeditious and proper disposition ofthe action. The hearing panel may adopt the proposed order of thedepartment, may amend or modify the proposed order, or may makesuch order or determination as is proper on the record. Theaffirmative votes of at least two (2) members of the hearing panel arerequired for the hearing panel to take action on any measure. Thetaxpayer may appeal the decision of the hearing panel to the tax court

in the same manner that a final determination of the department maybe appealed under IC 33-26.
    (e) If no objections are filed, the department may adopt theproposed order without oral argument.
    (f) A determination that a taxpayer is not entitled to the creditprovided by this chapter as a result of a substantial reduction orcessation of operations applies to credits that would otherwise arisein the taxable year in which the substantial reduction or cessationoccurs and in all subsequent years.
As added by P.L.125-1998, SEC.3. Amended by P.L.81-2004, SEC.30and P.L.90-2004, SEC.2; P.L.4-2005, SEC.95.

IC 6-3.1-19-5.5
Limitation on eligibility; advisory commission selection of site
    Sec. 5.5. (a) This section applies only to investments made in adistrict designated for an area described in:
        (1) IC 36-7-13-12(c)(1)(A); or
        (2) IC 36-7-13-12(c)(1)(C).
    (b) As used in this section, "advisory commission" means theadvisory commission on industrial development that designated thedistricts described in subsection (a).
    (c) A taxpayer is not entitled to a credit under this chapter for anexpenditure made in the district unless the advisory commissionselects the area to receive an allocation of the income tax incrementalamount and the gross retail incremental amount under IC 36-7-13.
    (d) After receiving notice of the advisory commission's selectionunder IC 36-7-13-23, the budget agency shall inform the Indianaeconomic development corporation and the department of whichdistrict was selected by the advisory commission.
    (e) The Indiana economic development corporation may notapprove a taxpayer's expenditures until after receiving notice of theadvisory commission's selection.
As added by P.L.113-2010, SEC.60.

IC 6-3.1-19-6
Method of claiming credit; submission of information
    Sec. 6. To receive the credit provided by this section, 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 allinformation that the department determines is necessary for thecalculation of the credit provided by this chapter and for thedetermination of whether an expenditure was for a qualifiedinvestment.
As added by P.L.125-1998, SEC.3.