IC 6-3.1-11.5
Chapter 11.5. Military Base Recovery Tax Credit
IC 6-3.1-11.5-1 "Applicable percentage" defined
Sec. 1. As used in this chapter, "applicable percentage" means the
percentage determined as follows:
(1) If a building that is located on a military base 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 building that is located on a military base 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 building that is located on a military base 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 building 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 a military base recovery site
under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-2 "Board" defined
Sec. 2. As used in this chapter, "board" refers to the board of the
Indiana economic development corporation created under IC 5-28-4. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.61.
IC 6-3.1-11.5-3 "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.125-1998, SEC.2.
IC 6-3.1-11.5-4 "Facility" defined
Sec. 4. As used in this chapter, "facility" means a building that:
(1) is used, or designed and constructed for use, for training,
housing, supplying, military readiness or other military
activities, or for the support of military activities, military
personnel and their dependents, including retired or reserve
military personnel; and
(2) has a minimum floor space of:
(A) twenty thousand (20,000) square feet, if the facility is
located in an economic development area established under
IC 36-7-14.5-12.5; or
(B) one hundred thousand (100,000) square feet, if the
facility is located in a military base reuse area established
under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-5 "Floor space" defined
Sec. 5. As used in this chapter, "floor space" means the usable
interior floor space of a building. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-6 "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.125-1998, SEC.2.
IC 6-3.1-11.5-7 "Military base recovery site" defined
Sec. 7. As used in this chapter, "military base recovery site"
means a military base recovery site designated under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8 "Municipality" defined
Sec. 8. As used in this chapter, "municipality" has the meaning set
forth in IC 36-1-2-11. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8.5 "Pass through entity" defined
Sec. 8.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax 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.125-1998, SEC.2.
IC 6-3.1-11.5-9 "Placed in service" defined
Sec. 9. 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. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-10 "Qualified investment" defined
Sec. 10. As used in this chapter, "qualified investment" means the
amount of the taxpayer's expenditures after December 31, 1997, for
rehabilitation of property located within a military base recovery site
under a plan contained in an application approved by the board under
section 20 of this chapter. An expenditure for purposes or by persons
not covered by such a plan is not a qualified investment. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-11 "Redevelopment authority" defined
Sec. 11. As used in this chapter, "redevelopment authority" means
a redevelopment authority established under IC 36-7-14.5-12.5. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-12 "Rehabilitation" defined
Sec. 12. 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.125-1998, SEC.2.
IC 6-3.1-11.5-13 "Reuse authority" defined
Sec. 13. As used in this chapter, "reuse authority" refers to a
military base reuse authority established under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-14 "State tax liability" defined
Sec. 14. 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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.103.
IC 6-3.1-11.5-15 "Taxpayer" defined
Sec. 15. As used in this chapter, "taxpayer" means an individual,
corporation, limited liability company, partnership, or other entity
that has any state tax liability and that is the owner or developer of
a military base recovery site. The term includes a lessee that is
assigned some part of a credit under section 18(c) of this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-16 "Vacant" defined
Sec. 16. As used in this chapter, "vacant" means, with respect to
a building, that at least seventy-five percent (75%) of the building
placed in service is not used for training, housing, supplying, military
readiness, or other military activities, or for the support of military
activities, military personnel, and their dependents, including retired
or reserve military personnel. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-17 "Vacant military base facility" defined
Sec. 17. As used in this chapter, "vacant military base facility"
means a facility that:
(1) is located in:
(A) the part of an economic development area established
under IC 36-7-14.5-12.5 that is or formerly was a military
base (as defined in IC 36-7-30-1(c)); or
(B) a military base reuse area established under IC 36-7-30;
(2) was placed in service at least twenty (20) years ago; and
(3) has been vacant for two (2) or more years.
However, subdivision (3) does not apply to a facility that is owned
by a municipality, a county, a military base reuse authority, or a
redevelopment authority. As added by P.L.125-1998, SEC.2. Amended by P.L.190-2005,
SEC.3.
IC 6-3.1-11.5-18 Entitlement to credit; amount; assignment
Sec. 18. (a) Subject to section 23 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 military base
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 state 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.125-1998, SEC.2.
IC 6-3.1-11.5-19 Credit carryover; carryback or refund unavailable
Sec. 19. (a) If the amount determined under section 18(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.125-1998, SEC.2.
IC 6-3.1-11.5-20 Application requesting designation as military base recovery site
Sec. 20. (a) After approval by ordinance or resolution of the
legislative body, the executive of a municipality may submit an
application to the board requesting that a vacant military base facility
within the municipality be designated as a military base recovery
site.
(b) After approval by resolution of the legislative body, the
executive of a county may submit an application to the board
requesting that a vacant military base facility within the county, but
not within any municipality, be designated as a military base
recovery site.
(c) In addition to any other information required by the board, an
application submitted under this section must include:
(1) a description of the plan proposed for development and use
of the vacant military base facility; and
(2) the maximum amount of qualified investment for which a
credit will be available under this chapter.
(d) If the property described in the application submitted to the
board meets the definition of a vacant military base 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
21 of this chapter; and
(3) either designate the property as a military base recovery site
or reject the application.
(e) If the board determines that a substantial reduction or
cessation of operations at a military base in Indiana after January 1,
1987, has created a vacant military base facility, the facility may be
designated as a military base recovery site only if it has been donated
or sold to a municipality, a county, a reuse authority, or a
redevelopment authority. Such a facility may be designated as a
military base recovery site, whether it is owned by the municipality,
a county, a reuse authority, or a redevelopment authority or by a
taxpayer who acquired it from the municipality, a county, a reuse
authority, or a redevelopment authority after the donation or sale. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-21 Factors in evaluating applications
Sec. 21. 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 military base facility.
(2) The desirability of the intended use of the vacant military
base facility under the plan proposed for the development and
use of the vacant military base facility 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
for the development and use of the vacant military base facility,
including the application of IC 36-7-12, IC 36-7-13, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-30 to assist in the
financing of improvements or redevelopment activities
benefiting the vacant military base facility.
(5) Evidence of efforts to implement the proposed plan without
additional financial assistance from the state.
(6) Whether the proposed military base recovery site is within
an economic revitalization area designated under IC 6-1.1-12.1.
(7) Whether action has been taken by the legislative body of the
municipality or county having jurisdiction over the proposed
military base recovery site to establish an enterprise zone under
IC 5-28-15-11. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.62.
IC 6-3.1-11.5-22 Designation may be made contingent on development and use in
compliance with plan
Sec. 22. The board may provide that the military base recovery
site designation is contingent on the development and use of the
vacant military base facility in substantial compliance with the plan
described in the application submitted under section 20 of this
chapter. The board may revoke its approval of a military base
recovery site designation for failure to comply with these conditions. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-23 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana
Sec. 23. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that the taxpayer substantially reduces or
ceases its operations in Indiana in order to relocate its operations
within the military base 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 applies 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.125-1998, SEC.2. IC 6-3.1-11.5-24 Priority of application of credit against other taxes owed
Sec. 24. (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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.104.
IC 6-3.1-11.5-25 Method of claiming credit; submission of information
Sec. 25. 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.125-1998, SEC.2.
IC 6-3.1-11.5-26 Pass through entities entitled to credit; use by shareholder,
partner, or member
Sec. 26. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the
credit may be applied, an individual who is a shareholder, partner, or
member of the pass through entity is entitled to a credit equal to:
(1) the credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributable
income to which the individual is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder, partner, or member of a pass through
entity is in addition to a tax credit to which a shareholder, partner, or
member of a pass through entity is otherwise entitled under this
chapter. However, a pass through entity and an individual who is a
shareholder, partner, or member of the pass through entity may not
claim more than one (1) credit for the same investment.
As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5
Chapter 11.5. Military Base Recovery Tax Credit
IC 6-3.1-11.5-1 "Applicable percentage" defined
Sec. 1. As used in this chapter, "applicable percentage" means the
percentage determined as follows:
(1) If a building that is located on a military base 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 building that is located on a military base 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 building that is located on a military base 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 building 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 a military base recovery site
under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-2 "Board" defined
Sec. 2. As used in this chapter, "board" refers to the board of the
Indiana economic development corporation created under IC 5-28-4. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.61.
IC 6-3.1-11.5-3 "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.125-1998, SEC.2.
IC 6-3.1-11.5-4 "Facility" defined
Sec. 4. As used in this chapter, "facility" means a building that:
(1) is used, or designed and constructed for use, for training,
housing, supplying, military readiness or other military
activities, or for the support of military activities, military
personnel and their dependents, including retired or reserve
military personnel; and
(2) has a minimum floor space of:
(A) twenty thousand (20,000) square feet, if the facility is
located in an economic development area established under
IC 36-7-14.5-12.5; or
(B) one hundred thousand (100,000) square feet, if the
facility is located in a military base reuse area established
under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-5 "Floor space" defined
Sec. 5. As used in this chapter, "floor space" means the usable
interior floor space of a building. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-6 "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.125-1998, SEC.2.
IC 6-3.1-11.5-7 "Military base recovery site" defined
Sec. 7. As used in this chapter, "military base recovery site"
means a military base recovery site designated under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8 "Municipality" defined
Sec. 8. As used in this chapter, "municipality" has the meaning set
forth in IC 36-1-2-11. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8.5 "Pass through entity" defined
Sec. 8.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax 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.125-1998, SEC.2.
IC 6-3.1-11.5-9 "Placed in service" defined
Sec. 9. 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. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-10 "Qualified investment" defined
Sec. 10. As used in this chapter, "qualified investment" means the
amount of the taxpayer's expenditures after December 31, 1997, for
rehabilitation of property located within a military base recovery site
under a plan contained in an application approved by the board under
section 20 of this chapter. An expenditure for purposes or by persons
not covered by such a plan is not a qualified investment. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-11 "Redevelopment authority" defined
Sec. 11. As used in this chapter, "redevelopment authority" means
a redevelopment authority established under IC 36-7-14.5-12.5. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-12 "Rehabilitation" defined
Sec. 12. 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.125-1998, SEC.2.
IC 6-3.1-11.5-13 "Reuse authority" defined
Sec. 13. As used in this chapter, "reuse authority" refers to a
military base reuse authority established under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-14 "State tax liability" defined
Sec. 14. 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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.103.
IC 6-3.1-11.5-15 "Taxpayer" defined
Sec. 15. As used in this chapter, "taxpayer" means an individual,
corporation, limited liability company, partnership, or other entity
that has any state tax liability and that is the owner or developer of
a military base recovery site. The term includes a lessee that is
assigned some part of a credit under section 18(c) of this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-16 "Vacant" defined
Sec. 16. As used in this chapter, "vacant" means, with respect to
a building, that at least seventy-five percent (75%) of the building
placed in service is not used for training, housing, supplying, military
readiness, or other military activities, or for the support of military
activities, military personnel, and their dependents, including retired
or reserve military personnel. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-17 "Vacant military base facility" defined
Sec. 17. As used in this chapter, "vacant military base facility"
means a facility that:
(1) is located in:
(A) the part of an economic development area established
under IC 36-7-14.5-12.5 that is or formerly was a military
base (as defined in IC 36-7-30-1(c)); or
(B) a military base reuse area established under IC 36-7-30;
(2) was placed in service at least twenty (20) years ago; and
(3) has been vacant for two (2) or more years.
However, subdivision (3) does not apply to a facility that is owned
by a municipality, a county, a military base reuse authority, or a
redevelopment authority. As added by P.L.125-1998, SEC.2. Amended by P.L.190-2005,
SEC.3.
IC 6-3.1-11.5-18 Entitlement to credit; amount; assignment
Sec. 18. (a) Subject to section 23 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 military base
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 state 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.125-1998, SEC.2.
IC 6-3.1-11.5-19 Credit carryover; carryback or refund unavailable
Sec. 19. (a) If the amount determined under section 18(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.125-1998, SEC.2.
IC 6-3.1-11.5-20 Application requesting designation as military base recovery site
Sec. 20. (a) After approval by ordinance or resolution of the
legislative body, the executive of a municipality may submit an
application to the board requesting that a vacant military base facility
within the municipality be designated as a military base recovery
site.
(b) After approval by resolution of the legislative body, the
executive of a county may submit an application to the board
requesting that a vacant military base facility within the county, but
not within any municipality, be designated as a military base
recovery site.
(c) In addition to any other information required by the board, an
application submitted under this section must include:
(1) a description of the plan proposed for development and use
of the vacant military base facility; and
(2) the maximum amount of qualified investment for which a
credit will be available under this chapter.
(d) If the property described in the application submitted to the
board meets the definition of a vacant military base 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
21 of this chapter; and
(3) either designate the property as a military base recovery site
or reject the application.
(e) If the board determines that a substantial reduction or
cessation of operations at a military base in Indiana after January 1,
1987, has created a vacant military base facility, the facility may be
designated as a military base recovery site only if it has been donated
or sold to a municipality, a county, a reuse authority, or a
redevelopment authority. Such a facility may be designated as a
military base recovery site, whether it is owned by the municipality,
a county, a reuse authority, or a redevelopment authority or by a
taxpayer who acquired it from the municipality, a county, a reuse
authority, or a redevelopment authority after the donation or sale. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-21 Factors in evaluating applications
Sec. 21. 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 military base facility.
(2) The desirability of the intended use of the vacant military
base facility under the plan proposed for the development and
use of the vacant military base facility 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
for the development and use of the vacant military base facility,
including the application of IC 36-7-12, IC 36-7-13, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-30 to assist in the
financing of improvements or redevelopment activities
benefiting the vacant military base facility.
(5) Evidence of efforts to implement the proposed plan without
additional financial assistance from the state.
(6) Whether the proposed military base recovery site is within
an economic revitalization area designated under IC 6-1.1-12.1.
(7) Whether action has been taken by the legislative body of the
municipality or county having jurisdiction over the proposed
military base recovery site to establish an enterprise zone under
IC 5-28-15-11. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.62.
IC 6-3.1-11.5-22 Designation may be made contingent on development and use in
compliance with plan
Sec. 22. The board may provide that the military base recovery
site designation is contingent on the development and use of the
vacant military base facility in substantial compliance with the plan
described in the application submitted under section 20 of this
chapter. The board may revoke its approval of a military base
recovery site designation for failure to comply with these conditions. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-23 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana
Sec. 23. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that the taxpayer substantially reduces or
ceases its operations in Indiana in order to relocate its operations
within the military base 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 applies 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.125-1998, SEC.2. IC 6-3.1-11.5-24 Priority of application of credit against other taxes owed
Sec. 24. (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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.104.
IC 6-3.1-11.5-25 Method of claiming credit; submission of information
Sec. 25. 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.125-1998, SEC.2.
IC 6-3.1-11.5-26 Pass through entities entitled to credit; use by shareholder,
partner, or member
Sec. 26. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the
credit may be applied, an individual who is a shareholder, partner, or
member of the pass through entity is entitled to a credit equal to:
(1) the credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributable
income to which the individual is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder, partner, or member of a pass through
entity is in addition to a tax credit to which a shareholder, partner, or
member of a pass through entity is otherwise entitled under this
chapter. However, a pass through entity and an individual who is a
shareholder, partner, or member of the pass through entity may not
claim more than one (1) credit for the same investment.
As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5
Chapter 11.5. Military Base Recovery Tax Credit
IC 6-3.1-11.5-1 "Applicable percentage" defined
Sec. 1. As used in this chapter, "applicable percentage" means the
percentage determined as follows:
(1) If a building that is located on a military base 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 building that is located on a military base 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 building that is located on a military base 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 building 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 a military base recovery site
under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-2 "Board" defined
Sec. 2. As used in this chapter, "board" refers to the board of the
Indiana economic development corporation created under IC 5-28-4. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.61.
IC 6-3.1-11.5-3 "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.125-1998, SEC.2.
IC 6-3.1-11.5-4 "Facility" defined
Sec. 4. As used in this chapter, "facility" means a building that:
(1) is used, or designed and constructed for use, for training,
housing, supplying, military readiness or other military
activities, or for the support of military activities, military
personnel and their dependents, including retired or reserve
military personnel; and
(2) has a minimum floor space of:
(A) twenty thousand (20,000) square feet, if the facility is
located in an economic development area established under
IC 36-7-14.5-12.5; or
(B) one hundred thousand (100,000) square feet, if the
facility is located in a military base reuse area established
under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-5 "Floor space" defined
Sec. 5. As used in this chapter, "floor space" means the usable
interior floor space of a building. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-6 "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.125-1998, SEC.2.
IC 6-3.1-11.5-7 "Military base recovery site" defined
Sec. 7. As used in this chapter, "military base recovery site"
means a military base recovery site designated under this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8 "Municipality" defined
Sec. 8. As used in this chapter, "municipality" has the meaning set
forth in IC 36-1-2-11. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-8.5 "Pass through entity" defined
Sec. 8.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax 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.125-1998, SEC.2.
IC 6-3.1-11.5-9 "Placed in service" defined
Sec. 9. 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. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-10 "Qualified investment" defined
Sec. 10. As used in this chapter, "qualified investment" means the
amount of the taxpayer's expenditures after December 31, 1997, for
rehabilitation of property located within a military base recovery site
under a plan contained in an application approved by the board under
section 20 of this chapter. An expenditure for purposes or by persons
not covered by such a plan is not a qualified investment. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-11 "Redevelopment authority" defined
Sec. 11. As used in this chapter, "redevelopment authority" means
a redevelopment authority established under IC 36-7-14.5-12.5. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-12 "Rehabilitation" defined
Sec. 12. 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.125-1998, SEC.2.
IC 6-3.1-11.5-13 "Reuse authority" defined
Sec. 13. As used in this chapter, "reuse authority" refers to a
military base reuse authority established under IC 36-7-30. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-14 "State tax liability" defined
Sec. 14. 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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.103.
IC 6-3.1-11.5-15 "Taxpayer" defined
Sec. 15. As used in this chapter, "taxpayer" means an individual,
corporation, limited liability company, partnership, or other entity
that has any state tax liability and that is the owner or developer of
a military base recovery site. The term includes a lessee that is
assigned some part of a credit under section 18(c) of this chapter. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-16 "Vacant" defined
Sec. 16. As used in this chapter, "vacant" means, with respect to
a building, that at least seventy-five percent (75%) of the building
placed in service is not used for training, housing, supplying, military
readiness, or other military activities, or for the support of military
activities, military personnel, and their dependents, including retired
or reserve military personnel. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-17 "Vacant military base facility" defined
Sec. 17. As used in this chapter, "vacant military base facility"
means a facility that:
(1) is located in:
(A) the part of an economic development area established
under IC 36-7-14.5-12.5 that is or formerly was a military
base (as defined in IC 36-7-30-1(c)); or
(B) a military base reuse area established under IC 36-7-30;
(2) was placed in service at least twenty (20) years ago; and
(3) has been vacant for two (2) or more years.
However, subdivision (3) does not apply to a facility that is owned
by a municipality, a county, a military base reuse authority, or a
redevelopment authority. As added by P.L.125-1998, SEC.2. Amended by P.L.190-2005,
SEC.3.
IC 6-3.1-11.5-18 Entitlement to credit; amount; assignment
Sec. 18. (a) Subject to section 23 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 military base
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 state 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.125-1998, SEC.2.
IC 6-3.1-11.5-19 Credit carryover; carryback or refund unavailable
Sec. 19. (a) If the amount determined under section 18(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.125-1998, SEC.2.
IC 6-3.1-11.5-20 Application requesting designation as military base recovery site
Sec. 20. (a) After approval by ordinance or resolution of the
legislative body, the executive of a municipality may submit an
application to the board requesting that a vacant military base facility
within the municipality be designated as a military base recovery
site.
(b) After approval by resolution of the legislative body, the
executive of a county may submit an application to the board
requesting that a vacant military base facility within the county, but
not within any municipality, be designated as a military base
recovery site.
(c) In addition to any other information required by the board, an
application submitted under this section must include:
(1) a description of the plan proposed for development and use
of the vacant military base facility; and
(2) the maximum amount of qualified investment for which a
credit will be available under this chapter.
(d) If the property described in the application submitted to the
board meets the definition of a vacant military base 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
21 of this chapter; and
(3) either designate the property as a military base recovery site
or reject the application.
(e) If the board determines that a substantial reduction or
cessation of operations at a military base in Indiana after January 1,
1987, has created a vacant military base facility, the facility may be
designated as a military base recovery site only if it has been donated
or sold to a municipality, a county, a reuse authority, or a
redevelopment authority. Such a facility may be designated as a
military base recovery site, whether it is owned by the municipality,
a county, a reuse authority, or a redevelopment authority or by a
taxpayer who acquired it from the municipality, a county, a reuse
authority, or a redevelopment authority after the donation or sale. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-21 Factors in evaluating applications
Sec. 21. 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 military base facility.
(2) The desirability of the intended use of the vacant military
base facility under the plan proposed for the development and
use of the vacant military base facility 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
for the development and use of the vacant military base facility,
including the application of IC 36-7-12, IC 36-7-13, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-30 to assist in the
financing of improvements or redevelopment activities
benefiting the vacant military base facility.
(5) Evidence of efforts to implement the proposed plan without
additional financial assistance from the state.
(6) Whether the proposed military base recovery site is within
an economic revitalization area designated under IC 6-1.1-12.1.
(7) Whether action has been taken by the legislative body of the
municipality or county having jurisdiction over the proposed
military base recovery site to establish an enterprise zone under
IC 5-28-15-11. As added by P.L.125-1998, SEC.2. Amended by P.L.4-2005, SEC.62.
IC 6-3.1-11.5-22 Designation may be made contingent on development and use in
compliance with plan
Sec. 22. The board may provide that the military base recovery
site designation is contingent on the development and use of the
vacant military base facility in substantial compliance with the plan
described in the application submitted under section 20 of this
chapter. The board may revoke its approval of a military base
recovery site designation for failure to comply with these conditions. As added by P.L.125-1998, SEC.2.
IC 6-3.1-11.5-23 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana
Sec. 23. A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that the taxpayer substantially reduces or
ceases its operations in Indiana in order to relocate its operations
within the military base 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 applies 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.125-1998, SEC.2. IC 6-3.1-11.5-24 Priority of application of credit against other taxes owed
Sec. 24. (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.125-1998, SEC.2. Amended by P.L.192-2002(ss),
SEC.104.
IC 6-3.1-11.5-25 Method of claiming credit; submission of information
Sec. 25. 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.125-1998, SEC.2.
IC 6-3.1-11.5-26 Pass through entities entitled to credit; use by shareholder,
partner, or member
Sec. 26. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the
credit may be applied, an individual who is a shareholder, partner, or
member of the pass through entity is entitled to a credit equal to:
(1) the credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributable
income to which the individual is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder, partner, or member of a pass through
entity is in addition to a tax credit to which a shareholder, partner, or
member of a pass through entity is otherwise entitled under this
chapter. However, a pass through entity and an individual who is a
shareholder, partner, or member of the pass through entity may not
claim more than one (1) credit for the same investment.
As added by P.L.125-1998, SEC.2.
