CHAPTER 23. VOLUNTARY REMEDIATION TAX CREDIT
IC 6-3.1-23
Chapter 23. Voluntary Remediation Tax Credit
IC 6-3.1-23-1
"Brownfield" defined
Sec. 1. As used in this chapter, "brownfield" has the meaning setforth in IC 13-11-2-19.3.
As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-1.5
"Legislative body"
Sec. 1.5. As used in this chapter, "legislative body" refers to:
(1) the legislative body of a municipality (as defined inIC 36-1-2-11) in which is located property on whichremediation referred to in section 3(1) of this chapter occurs; or
(2) if the property referred to in subdivision (1) is not located ina municipality, the legislative body of the county in which theproperty is located.
As added by P.L.245-2003, SEC.26.
IC 6-3.1-23-2
"Pass through entity" defined
Sec. 2. 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.109-2001, SEC.1.
IC 6-3.1-23-3
"Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means coststhat:
(1) result from work performed in Indiana to conduct avoluntary remediation, whether or not under IC 13-25-5, thatinvolves the remediation of a brownfield;
(2) are not recovered by a taxpayer from another person afterthe taxpayer has made a good faith effort to recover the costs;
(3) are not paid from state financial assistance;
(4) result in taxable income to any other Indiana taxpayer; and
(5) are approved by the department of environmentalmanagement and the Indiana finance authority under section 12of this chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.27; P.L.235-2005, SEC.98.
IC 6-3.1-23-3.5
"State financial assistance" defined
Sec. 3.5. As used in this chapter, "state financial assistance"
means money received by a taxpayer:
(1) as a direct loan:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program; or
(2) as a grant:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program.
As added by P.L.245-2003, SEC.28.
IC 6-3.1-23-4
"State tax liability" defined
Sec. 4. As used in this chapter, "state tax liability" means ataxpayer's total tax liability for a listed tax (as defined inIC 6-8.1-1-1), as computed after the application of the credits thatunder IC 6-3.1-1-2 are to be applied before the credit provided bythis chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.192-2002(ss),SEC.118; P.L.208-2005, SEC.3.
IC 6-3.1-23-5
Taxpayer credit; eligibility; department determination; Indianafinance authority
Sec. 5. (a) A taxpayer is entitled to a credit equal to the amountdetermined under section 6 of this chapter against the taxpayer's statetax liability for a taxable year if the following requirements aresatisfied:
(1) The taxpayer does the following:
(A) Makes a qualified investment in that taxable year.
(B) Submits the following to the Indiana finance authority:
(i) A description of the taxpayer's proposed redevelopmentof the property.
(ii) The sources and amounts of money to be used for theremediation and proposed redevelopment of the property.
(iii) An estimate of the value of the remediation andproposed redevelopment.
(iv) A description documenting any good faith attempts torecover the costs of the environmental damages fromliable parties.
(v) Proof of appropriate zoning for the intended reuse.
(vi) A letter supporting the proposed project andredevelopment from the legislative body.
(vii) The documentation described in subsection (b).
(2) The department determines under section 15 of this chapterthat the taxpayer's return claiming the credit is filed with the
department before the maximum amount of credits allowedunder this chapter is met.
(b) The documentation referred to in subsection (a)(1)(B)(vii)consists of information reflecting that the taxpayer:
(1) has never had an ownership interest in an entity that causedor contributed to; and
(2) has not caused or contributed to;
the release or threatened release of a hazardous substance, acontaminant, petroleum, or a petroleum product that is the subject ofthe remediation.
(c) The Indiana finance authority shall:
(1) determine whether the taxpayer meets the requirements ofsubsection (a)(1); and
(2) if the taxpayer meets the requirements of subsection (a)(1),certify to the taxpayer that the taxpayer is eligible for the creditallowed under this chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.29; P.L.208-2005, SEC.4; P.L.235-2005, SEC.99.
IC 6-3.1-23-6
Amount of credit
Sec. 6. The amount of the credit allowed under this chapter withrespect to each brownfield site is equal to the lesser of:
(1) two hundred thousand dollars ($200,000); or
(2) the sum of:
(A) one hundred percent (100%) multiplied by the first onehundred thousand dollars ($100,000) of qualified investmentmade by the taxpayer during the taxable year; plus
(B) fifty percent (50%) multiplied by the amount of thequalified investment made by the taxpayer during the taxableyear that exceeds one hundred thousand dollars ($100,000).
As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,SEC.5.
IC 6-3.1-23-7
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-8
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-9
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-10
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-11 Credit carryover and carryback
Sec. 11. (a) If the amount determined under section 6 of thischapter in a taxable year exceeds the taxpayer's state tax liability forthat taxable year, the taxpayer may carry the excess:
(1) over for not more than the immediately following five (5)taxable years; or
(2) back to the immediately preceding taxable year.
(b) The amount of excess available to be used for carryover undersubsection (a)(1) is reduced to the extent it is used for:
(1) a carryover under subsection (a)(1); or
(2) a carryback under subsection (a)(2).
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.30.
IC 6-3.1-23-12
Certification of qualified investment action; action required bytaxpayer
Sec. 12. (a) To be entitled to a credit under this chapter, ataxpayer must request the department of environmental managementand the Indiana finance authority to determine if costs incurred in avoluntary remediation involving a brownfield are qualifiedinvestments.
(b) The request under subsection (a) must be made before thecosts are incurred.
(c) Upon receipt of a request under subsection (a), the departmentof environmental management and the Indiana finance authorityshall:
(1) examine the costs; and
(2) certify any costs that the department and the authoritydetermine to be a qualified investment.
(d) Upon completion of a voluntary remediation for which costshave been certified as a qualified investment under subsection (c),the taxpayer:
(1) shall notify the department of environmental management;and
(2) shall request from the department of environmentalmanagement:
(A) with respect to voluntary remediation conducted underIC 13-25-5, the certificate of completion issued by thecommissioner under IC 13-25-5-16 for the voluntaryremediation work plan under which the costs certified undersubsection (c)(2) were incurred; or
(B) with respect to voluntary remediation not conductedunder IC 13-25-5, a certification of the costs incurred for thevoluntary remediation that are consistent with the costscertified under subsection (c)(2).
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.31; P.L.208-2005, SEC.6; P.L.235-2005, SEC.100.
IC 6-3.1-23-13 Credit to be claimed on tax return; submissions to department ofstate revenue
Sec. 13. (a) To receive the credit provided by this chapter, ataxpayer must claim the credit on the taxpayer's state tax return orreturns in the manner prescribed by the department of state revenue.
(b) The taxpayer shall submit the following to the department ofstate revenue:
(1) The certification of the qualified investment by thedepartment of environmental management and the Indianafinance authority under section 12(c) of this chapter.
(2) Either:
(A) an official copy of the certification referred to in section12(d)(2)(A) of this chapter; or
(B) the certification issued by the department ofenvironmental management in response to a request undersection 12(d)(2)(B) of this chapter.
(3) Proof of payment of the certified qualified investment.
(4) The certification received by the taxpayer under section 5(c)of this chapter.
(5) Information that the department determines is necessary forthe calculation of the credit provided by this chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.32; P.L.208-2005, SEC.7; P.L.235-2005, SEC.101.
IC 6-3.1-23-14
Pass through entities entitled to credit
Sec. 14. (a) If a pass through entity is entitled to a credit underthis chapter but does not have state tax liability against which the taxcredit may be applied, a shareholder, a partner, or a member of thepass 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.109-2001, SEC.1.
IC 6-3.1-23-15
Maximum amount of credit; source of funding for credit
Sec. 15. (a) The amount of tax credits allowed under this chaptermay not exceed two million dollars ($2,000,000) in a state fiscal yearunless the Indiana finance authority determines under subsection (e)that money is available for additional tax credits in a particular statefiscal year. However, if the maximum amount of tax credits allowedunder this subsection exceeds the amount available in the subaccount
of the environmental remediation revolving loan fund (IC 13-19-5),the maximum amount of tax credits allowed under this subsection isreduced to the amount available.
(b) The department shall record the time of filing of each returnclaiming a credit under section 13 of this chapter and shall, except asprovided in subsection (c), grant the credit to the taxpayer, if thetaxpayer otherwise qualifies for a tax credit under this chapter, in thechronological order in which the return is filed in the state fiscalyear.
(c) If the total credits approved under this section equal themaximum amount allowable in a state fiscal year, a return claimingthe credit filed later in that same fiscal year may not be approved.However, if an applicant for whom a credit has been approved failsto file the information required by section 13 of this chapter, anamount equal to the credit previously allowed or set aside for theapplicant may be allowed to the next eligible applicant or applicantsuntil the total amount has been allowed. In addition, the departmentmay, if the applicant so requests, approve a credit application, inwhole or in part, with respect to the next succeeding state fiscal year.
(d) The department of state revenue shall report the total creditsgranted under this chapter for each state fiscal year to the Indianafinance authority. The Indiana finance authority shall transfer to thestate general fund an amount equal to the total credits granted fromthe subaccount of the environmental remediation revolving loan fund(IC 13-19-5).
(e) At the end of each state fiscal year, the Indiana financeauthority may determine whether money is available in theenvironmental remediation revolving loan fund (IC 13-19-5) toprovide tax credits in excess of the amount set forth in subsection (a)in the subsequent state fiscal year.
(f) Before June 30 of each year, the Indiana finance authority mayassess the demand for tax credits under this chapter and determinewhether the need for other brownfield activities is greater than theneed for tax credits. If the Indiana finance authority determines thatthe need for other brownfield activities is greater than the need fortax credits, the authority may set aside up to three-fourths (3/4) of theamount of allowable tax credits for the subsequent state fiscal yearand use it for other brownfield projects.
(g) Except as provided in subsection (h), the Indiana financeauthority may use money set aside under subsection (f) for anypermissible purpose.
(h) Money specifically appropriated for tax credits may not be setaside for another use.
As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,SEC.8; P.L.235-2005, SEC.102.
IC 6-3.1-23-16
Expiration of credit; carryover after expiration date
Sec. 16. A tax credit may not be allowed under this chapter for ataxable year that begins after December 31, 2007. However, this
section does not affect the ability of a taxpayer to carry forward theexcess of a tax credit claimed for a taxable year that begins beforeJanuary 1, 2008, under section 11 of this chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,SEC.33; P.L.208-2005, SEC.9.
IC 6-3.1-23-17
Guidelines
Sec. 17. The Indiana finance authority, after consulting with thedepartment of environmental management and the budget agency andwithout complying with IC 4-22-2, may adopt guidelines to governthe administration of this chapter.
As added by P.L.109-2001, SEC.1. Amended by P.L.235-2005,SEC.103.