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 the
percentage determined as follows:
(1) If a plant that is located on an industrial recovery site was
placed in service at least twenty (20) years ago but less than
thirty (30) years ago, the applicable percentage is fifteen
percent (15%).
(2) If a plant that is located on an industrial recovery site was
placed 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 was
placed in service at least forty (40) years ago, the applicable
percentage is twenty-five percent (25%).
The time that has expired since a plant was placed in service shall be
determined as of the date that an application is filed with the board
for designation of the location as an industrial recovery site under
this 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 the
Indiana 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 set
forth 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 usable
interior 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 an
industrial 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 meaning
set 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 set
forth 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 that
property is placed in a condition or state of readiness and availability
for a specifically assigned function. In the case of a plant comprised
of a complex of buildings, the entire plant shall be considered to
have been placed in service as of the date that a building was placed
in service if the building has floor space that, when aggregated with
the floor space of all buildings in the complex placed in service on
earlier dates, exceeds fifty percent (50%) of the total floor space of
all 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 or
complex of buildings used, or designed and constructed for use, in
production, manufacturing, fabrication, assembly, processing,
refining, finishing, or warehousing of tangible personal property,
whether the tangible personal property is or was for sale to third
parties 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 the
amount of the taxpayer's expenditures for rehabilitation of property
located within an industrial recovery site under a plan contained in
an application approved by the board under section 18 of this
chapter. An expenditure for purposes or by persons not covered by
such 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 the
remodeling, repair, or betterment of real property in any manner or
any 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 the
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, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter. 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 entity
that has any state tax liability and that is the owner or developer of
an industrial recovery site. The term includes a lessee that is assigned
some 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 to
a plant that at least seventy-five percent (75%) of the plant placed in
service is not used to carry on production, manufacturing, assembly,
processing, refining, finishing, or warehousing of tangible personal
property. 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" means
a tract of land on which there is located a plant that:
(1) has at least two hundred fifty thousand (250,000) square feet
of 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 tract
and the plant are owned by a municipality or a county, in which
case 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 is
entitled 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 the
qualified investment made by the taxpayer during the taxable year
multiplied by the applicable percentage.
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of the industrial
recovery site. A credit that is assigned under this subsection remains
subject to this chapter.
(d) An assignment under subsection (c) must be in writing and
both the taxpayer and the lessee must report the assignment on their
state tax return for the year in which the assignment is made, in the
manner prescribed by the department of revenue. The taxpayer shall
not 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 credit
barred
Sec. 17. (a) If the amount determined under section 16(b) of this
chapter for a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess over to the
immediately following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of any
unused 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 recovery
site; application; requisites; procedures
Sec. 18. (a) After approval by ordinance or resolution of the
legislative body, the executive of any municipality may submit an
application to the board requesting that a vacant industrial facility
within the municipality be designated as an industrial recovery site.
After approval by resolution of the legislative body, the executive of
any county may submit an application to the board requesting that a
vacant industrial facility within the county, but not within any
municipality, be designated as an industrial recovery site. In addition
to any other information required by the board, the application shall
include a description of the plan proposed by the municipality or
county for development and use of the vacant industrial facility.
(b) If the property described in the application submitted to the
board meets the definition of a vacant industrial facility as of the date
of 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 or
reject the application.
(c) If the board determines that:
(1) a substantial reduction or cessation of operations at a facility
in Indiana after January 1, 1987, has created a vacant industrial
facility; and
(2) the operations formerly located at that facility have been
relocated to a specific site or sites outside the United States;
the facility may be designated as an industrial recovery site only if it
has been donated or sold to the municipality. Such a facility may be
designated as an industrial recovery site whether it is owned by the
municipality or by a taxpayer who acquired it from the municipality
after 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 in
evaluating applications filed under this chapter:
(1) The level of distress in the surrounding community caused
by the loss of jobs at the vacant industrial facility.
(2) The desirability of the intended use of the vacant industrial
facility under the plan proposed by the municipality or county
and the likelihood that the implementation of the plan will
improve the economic and employment conditions in the
surrounding community.
(3) Evidence of support for the designation by residents,
businesses, and private organizations in the surrounding
community.
(4) Evidence of a commitment by private or governmental
entities to provide financial assistance in implementing the plan
proposed by the municipality or county, including the
application of IC 36-7-12, IC 36-7-13, IC 36-7-14, or
IC 36-7-15.1 to assist in the financing of improvements or
redevelopment activities benefiting the vacant industrial
facility.
(5) Evidence of efforts by the municipality or county to
implement the proposed plan without additional financial
assistance from the state.
(6) Whether the industrial recovery site is within an economic
revitalization 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 for
failure to comply
Sec. 20. The board may provide that the industrial recovery site
designation is contingent on the development and use of the vacant
industrial facility in substantial compliance with the plan described
in the application submitted under section 18 of this chapter. The
board may revoke its approval of an industrial recovery site
designation 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 or
cessation of operations in Indiana; determination
Sec. 21. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that it substantially reduces or ceases its
operations in Indiana in order to relocate them within the industrial
recovery site. A determination that a taxpayer is not entitled to the
credit provided by this chapter as a result of a substantial reduction
or cessation of operations shall apply to credits that would otherwise
arise in the taxable year in which the substantial reduction or
cessation occurs and in all subsequent years. Determinations under
this 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 this
chapter shall be applied against taxes owed by the taxpayer in the
following 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 (IC
27-1-18-2) 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 tax
provisions listed in subsection (a) is a credit against the liability or
a deduction in determining the tax base under another Indiana tax
provision, the credit or deduction shall be computed without regard
to 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; required
information
Sec. 23. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department of state revenue.
The taxpayer shall submit to the department of state revenue the
certification of the board stating the percentage of credit allowable
under this chapter and all other information that the department
determines is necessary for the calculation of the credit provided by
this chapter and for the determination of whether an expenditure was
for a qualified investment. As added by P.L.379-1987(ss), SEC.11.
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 the
percentage determined as follows:
(1) If a plant that is located on an industrial recovery site was
placed in service at least twenty (20) years ago but less than
thirty (30) years ago, the applicable percentage is fifteen
percent (15%).
(2) If a plant that is located on an industrial recovery site was
placed 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 was
placed in service at least forty (40) years ago, the applicable
percentage is twenty-five percent (25%).
The time that has expired since a plant was placed in service shall be
determined as of the date that an application is filed with the board
for designation of the location as an industrial recovery site under
this 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 the
Indiana 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 set
forth 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 usable
interior 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 an
industrial 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 meaning
set 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 set
forth 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 that
property is placed in a condition or state of readiness and availability
for a specifically assigned function. In the case of a plant comprised
of a complex of buildings, the entire plant shall be considered to
have been placed in service as of the date that a building was placed
in service if the building has floor space that, when aggregated with
the floor space of all buildings in the complex placed in service on
earlier dates, exceeds fifty percent (50%) of the total floor space of
all 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 or
complex of buildings used, or designed and constructed for use, in
production, manufacturing, fabrication, assembly, processing,
refining, finishing, or warehousing of tangible personal property,
whether the tangible personal property is or was for sale to third
parties 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 the
amount of the taxpayer's expenditures for rehabilitation of property
located within an industrial recovery site under a plan contained in
an application approved by the board under section 18 of this
chapter. An expenditure for purposes or by persons not covered by
such 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 the
remodeling, repair, or betterment of real property in any manner or
any 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 the
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, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter. 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 entity
that has any state tax liability and that is the owner or developer of
an industrial recovery site. The term includes a lessee that is assigned
some 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 to
a plant that at least seventy-five percent (75%) of the plant placed in
service is not used to carry on production, manufacturing, assembly,
processing, refining, finishing, or warehousing of tangible personal
property. 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" means
a tract of land on which there is located a plant that:
(1) has at least two hundred fifty thousand (250,000) square feet
of 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 tract
and the plant are owned by a municipality or a county, in which
case 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 is
entitled 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 the
qualified investment made by the taxpayer during the taxable year
multiplied by the applicable percentage.
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of the industrial
recovery site. A credit that is assigned under this subsection remains
subject to this chapter.
(d) An assignment under subsection (c) must be in writing and
both the taxpayer and the lessee must report the assignment on their
state tax return for the year in which the assignment is made, in the
manner prescribed by the department of revenue. The taxpayer shall
not 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 credit
barred
Sec. 17. (a) If the amount determined under section 16(b) of this
chapter for a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess over to the
immediately following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of any
unused 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 recovery
site; application; requisites; procedures
Sec. 18. (a) After approval by ordinance or resolution of the
legislative body, the executive of any municipality may submit an
application to the board requesting that a vacant industrial facility
within the municipality be designated as an industrial recovery site.
After approval by resolution of the legislative body, the executive of
any county may submit an application to the board requesting that a
vacant industrial facility within the county, but not within any
municipality, be designated as an industrial recovery site. In addition
to any other information required by the board, the application shall
include a description of the plan proposed by the municipality or
county for development and use of the vacant industrial facility.
(b) If the property described in the application submitted to the
board meets the definition of a vacant industrial facility as of the date
of 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 or
reject the application.
(c) If the board determines that:
(1) a substantial reduction or cessation of operations at a facility
in Indiana after January 1, 1987, has created a vacant industrial
facility; and
(2) the operations formerly located at that facility have been
relocated to a specific site or sites outside the United States;
the facility may be designated as an industrial recovery site only if it
has been donated or sold to the municipality. Such a facility may be
designated as an industrial recovery site whether it is owned by the
municipality or by a taxpayer who acquired it from the municipality
after 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 in
evaluating applications filed under this chapter:
(1) The level of distress in the surrounding community caused
by the loss of jobs at the vacant industrial facility.
(2) The desirability of the intended use of the vacant industrial
facility under the plan proposed by the municipality or county
and the likelihood that the implementation of the plan will
improve the economic and employment conditions in the
surrounding community.
(3) Evidence of support for the designation by residents,
businesses, and private organizations in the surrounding
community.
(4) Evidence of a commitment by private or governmental
entities to provide financial assistance in implementing the plan
proposed by the municipality or county, including the
application of IC 36-7-12, IC 36-7-13, IC 36-7-14, or
IC 36-7-15.1 to assist in the financing of improvements or
redevelopment activities benefiting the vacant industrial
facility.
(5) Evidence of efforts by the municipality or county to
implement the proposed plan without additional financial
assistance from the state.
(6) Whether the industrial recovery site is within an economic
revitalization 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 for
failure to comply
Sec. 20. The board may provide that the industrial recovery site
designation is contingent on the development and use of the vacant
industrial facility in substantial compliance with the plan described
in the application submitted under section 18 of this chapter. The
board may revoke its approval of an industrial recovery site
designation 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 or
cessation of operations in Indiana; determination
Sec. 21. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that it substantially reduces or ceases its
operations in Indiana in order to relocate them within the industrial
recovery site. A determination that a taxpayer is not entitled to the
credit provided by this chapter as a result of a substantial reduction
or cessation of operations shall apply to credits that would otherwise
arise in the taxable year in which the substantial reduction or
cessation occurs and in all subsequent years. Determinations under
this 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 this
chapter shall be applied against taxes owed by the taxpayer in the
following 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 (IC
27-1-18-2) 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 tax
provisions listed in subsection (a) is a credit against the liability or
a deduction in determining the tax base under another Indiana tax
provision, the credit or deduction shall be computed without regard
to 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; required
information
Sec. 23. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department of state revenue.
The taxpayer shall submit to the department of state revenue the
certification of the board stating the percentage of credit allowable
under this chapter and all other information that the department
determines is necessary for the calculation of the credit provided by
this chapter and for the determination of whether an expenditure was
for a qualified investment. As added by P.L.379-1987(ss), SEC.11.
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 the
percentage determined as follows:
(1) If a plant that is located on an industrial recovery site was
placed in service at least twenty (20) years ago but less than
thirty (30) years ago, the applicable percentage is fifteen
percent (15%).
(2) If a plant that is located on an industrial recovery site was
placed 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 was
placed in service at least forty (40) years ago, the applicable
percentage is twenty-five percent (25%).
The time that has expired since a plant was placed in service shall be
determined as of the date that an application is filed with the board
for designation of the location as an industrial recovery site under
this 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 the
Indiana 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 set
forth 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 usable
interior 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 an
industrial 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 meaning
set 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 set
forth 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 that
property is placed in a condition or state of readiness and availability
for a specifically assigned function. In the case of a plant comprised
of a complex of buildings, the entire plant shall be considered to
have been placed in service as of the date that a building was placed
in service if the building has floor space that, when aggregated with
the floor space of all buildings in the complex placed in service on
earlier dates, exceeds fifty percent (50%) of the total floor space of
all 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 or
complex of buildings used, or designed and constructed for use, in
production, manufacturing, fabrication, assembly, processing,
refining, finishing, or warehousing of tangible personal property,
whether the tangible personal property is or was for sale to third
parties 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 the
amount of the taxpayer's expenditures for rehabilitation of property
located within an industrial recovery site under a plan contained in
an application approved by the board under section 18 of this
chapter. An expenditure for purposes or by persons not covered by
such 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 the
remodeling, repair, or betterment of real property in any manner or
any 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 the
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, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter. 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 entity
that has any state tax liability and that is the owner or developer of
an industrial recovery site. The term includes a lessee that is assigned
some 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 to
a plant that at least seventy-five percent (75%) of the plant placed in
service is not used to carry on production, manufacturing, assembly,
processing, refining, finishing, or warehousing of tangible personal
property. 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" means
a tract of land on which there is located a plant that:
(1) has at least two hundred fifty thousand (250,000) square feet
of 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 tract
and the plant are owned by a municipality or a county, in which
case 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 is
entitled 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 the
qualified investment made by the taxpayer during the taxable year
multiplied by the applicable percentage.
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of the industrial
recovery site. A credit that is assigned under this subsection remains
subject to this chapter.
(d) An assignment under subsection (c) must be in writing and
both the taxpayer and the lessee must report the assignment on their
state tax return for the year in which the assignment is made, in the
manner prescribed by the department of revenue. The taxpayer shall
not 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 credit
barred
Sec. 17. (a) If the amount determined under section 16(b) of this
chapter for a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess over to the
immediately following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of any
unused 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 recovery
site; application; requisites; procedures
Sec. 18. (a) After approval by ordinance or resolution of the
legislative body, the executive of any municipality may submit an
application to the board requesting that a vacant industrial facility
within the municipality be designated as an industrial recovery site.
After approval by resolution of the legislative body, the executive of
any county may submit an application to the board requesting that a
vacant industrial facility within the county, but not within any
municipality, be designated as an industrial recovery site. In addition
to any other information required by the board, the application shall
include a description of the plan proposed by the municipality or
county for development and use of the vacant industrial facility.
(b) If the property described in the application submitted to the
board meets the definition of a vacant industrial facility as of the date
of 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 or
reject the application.
(c) If the board determines that:
(1) a substantial reduction or cessation of operations at a facility
in Indiana after January 1, 1987, has created a vacant industrial
facility; and
(2) the operations formerly located at that facility have been
relocated to a specific site or sites outside the United States;
the facility may be designated as an industrial recovery site only if it
has been donated or sold to the municipality. Such a facility may be
designated as an industrial recovery site whether it is owned by the
municipality or by a taxpayer who acquired it from the municipality
after 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 in
evaluating applications filed under this chapter:
(1) The level of distress in the surrounding community caused
by the loss of jobs at the vacant industrial facility.
(2) The desirability of the intended use of the vacant industrial
facility under the plan proposed by the municipality or county
and the likelihood that the implementation of the plan will
improve the economic and employment conditions in the
surrounding community.
(3) Evidence of support for the designation by residents,
businesses, and private organizations in the surrounding
community.
(4) Evidence of a commitment by private or governmental
entities to provide financial assistance in implementing the plan
proposed by the municipality or county, including the
application of IC 36-7-12, IC 36-7-13, IC 36-7-14, or
IC 36-7-15.1 to assist in the financing of improvements or
redevelopment activities benefiting the vacant industrial
facility.
(5) Evidence of efforts by the municipality or county to
implement the proposed plan without additional financial
assistance from the state.
(6) Whether the industrial recovery site is within an economic
revitalization 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 for
failure to comply
Sec. 20. The board may provide that the industrial recovery site
designation is contingent on the development and use of the vacant
industrial facility in substantial compliance with the plan described
in the application submitted under section 18 of this chapter. The
board may revoke its approval of an industrial recovery site
designation 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 or
cessation of operations in Indiana; determination
Sec. 21. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that it substantially reduces or ceases its
operations in Indiana in order to relocate them within the industrial
recovery site. A determination that a taxpayer is not entitled to the
credit provided by this chapter as a result of a substantial reduction
or cessation of operations shall apply to credits that would otherwise
arise in the taxable year in which the substantial reduction or
cessation occurs and in all subsequent years. Determinations under
this 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 this
chapter shall be applied against taxes owed by the taxpayer in the
following 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 (IC
27-1-18-2) 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 tax
provisions listed in subsection (a) is a credit against the liability or
a deduction in determining the tax base under another Indiana tax
provision, the credit or deduction shall be computed without regard
to 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; required
information
Sec. 23. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department of state revenue.
The taxpayer shall submit to the department of state revenue the
certification of the board stating the percentage of credit allowable
under this chapter and all other information that the department
determines is necessary for the calculation of the credit provided by
this chapter and for the determination of whether an expenditure was
for a qualified investment. As added by P.L.379-1987(ss), SEC.11.
