IC 6-3.1-19
Chapter 19. Community Revitalization Enhancement District Tax
Credit
IC 6-3.1-19-1 "State and local tax liability"
Sec. 1. As used in this chapter, "state and local tax liability"
means a taxpayer's total tax liability incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-3.5-1.1 (county adjusted gross income tax);
(3) IC 6-3.5-6 (county option income tax);
(4) IC 6-3.5-7 (county economic development income tax);
(5) IC 6-5.5 (the financial institutions tax); and
(6) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of all credits that 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.3. Amended by P.L.192-2002(ss),
SEC.113.
IC 6-3.1-19-1.5 "Pass through entity"
Sec. 1.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.224-2003, SEC.194.
IC 6-3.1-19-2 "Qualified investment"
Sec. 2. As used in this chapter, "qualified investment" means the
amount of a taxpayer's expenditures that is:
(1) for redevelopment or rehabilitation of property located
within a community revitalization enhancement district
designated under IC 36-7-13;
(2) made under a plan adopted by an advisory commission on
industrial development under IC 36-7-13; and
(3) approved by the Indiana economic development corporation
before the expenditure is made. As added by P.L.125-1998, SEC.3. Amended by P.L.4-2005, SEC.94.
IC 6-3.1-19-2.5 "Taxpayer"
Sec. 2.5. As used in this chapter, "taxpayer" means an individual
or entity that has any state and local tax liability. As added by P.L.224-2003, SEC.195.
IC 6-3.1-19-3 Entitlement to credit; amount; assignment
Sec. 3. (a) Except as provided in section 5 or 5.5 of this chapter,
a taxpayer is entitled to a credit against the taxpayer's state and local
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 twenty-five percent (25%).
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of property
redeveloped or rehabilitated under section 2 of this chapter. 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. The taxpayer may not receive
value in connection with the assignment under subsection (c) that
exceeds the value of the part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability against which the tax
credit may be applied, a shareholder, partner, or member of the pass
through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is entitled.
The credit provided under this subsection 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.
(f) A taxpayer that is otherwise entitled to a credit under this
chapter for a taxable year may claim the credit regardless of whether
any income tax incremental amount or gross retail incremental
amount has been:
(1) deposited in the incremental tax financing fund established
for the community revitalization enhancement district; or
(2) allocated to the district. As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003,
SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1;
P.L.113-2010, SEC.59.
IC 6-3.1-19-4 Credit carryover; carryback or refund unavailable
Sec. 4. If the amount of the credit determined under section 3 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. A taxpayer is not entitled to a
carryback or refund of any unused credit. As added by P.L.125-1998, SEC.3.
IC 6-3.1-19-5 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana; eligibility determinations; criteria; appeals
Sec. 5. (a) 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 them within
the district. Determinations under this section shall be made by the
department. The department shall adopt a proposed order concerning
a taxpayer's eligibility for the credit based on subsection (b) and the
following criteria:
(1) A site-specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or any
activity involving permanent full-time or part-time employees,
shall be considered a business operation.
(2) With respect to an operation located outside the district
(referred to in this section as a "nondistrict operation"), any of
the following that occurs during the twelve (12) months before
the completion of the physical relocation of all or part of the
activity described in subdivision (1) from the nondistrict
operation to the district as compared with the twelve (12)
months before that twelve (12) months shall be considered a
substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would
otherwise be disqualified under subsection (a) is eligible for the
credit provided by this chapter if the taxpayer meets at least one (1)
of the following conditions:
(1) The taxpayer relocates all or part of its nondistrict operation
for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of the
taxpayer.
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed
by the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building
authority.
(D) The building for the nondistrict operation has been
totally destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location of
the nondistrict operation are more than one and one-half (1
1/2) times the costs of purchase, renovation, and
construction of a facility in the district, as certified by three
(3) independent estimates.
(F) The taxpayer had existing operations in the district and
the nondistrict operations relocated to the district are an
expansion of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nondistrict operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the district. These costs must be
certified by three (3) independent estimates.
(2) The taxpayer has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nondistrict operation without the consent of
the employees.
(c) The department shall cause to be delivered to the taxpayer and
to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's proposed
order. The taxpayer and these persons shall be considered parties for
purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of the
proposed order, file written objections with the department. The
department shall immediately forward copies of the objections to the
director of the budget agency and the board of the Indiana economic
development corporation. A hearing panel composed of the
commissioner of the department or the commissioner's designee, the
director of the budget agency or the director's designee, and the
president of the Indiana economic development corporation or the
president's designee shall set the objections for oral argument and
give notice to the parties. A party at its own expense may cause to be
filed with the hearing panel a transcript of the oral testimony or any
other part of the record of the proceedings. The oral argument shall
be on the record filed with the hearing panel. The hearing panel may
hear additional evidence or remand the action to the department with
instructions appropriate to the expeditious and proper disposition of
the action. The hearing panel may adopt the proposed order of the
department, may amend or modify the proposed order, or may make
such order or determination as is proper on the record. The
affirmative votes of at least two (2) members of the hearing panel are
required for the hearing panel to take action on any measure. The
taxpayer may appeal the decision of the hearing panel to the tax court
in the same manner that a final determination of the department may
be appealed under IC 33-26.
(e) If no objections are filed, the department may adopt the
proposed order without oral argument.
(f) 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. As added by P.L.125-1998, SEC.3. Amended by P.L.81-2004, SEC.30
and P.L.90-2004, SEC.2; P.L.4-2005, SEC.95.
IC 6-3.1-19-5.5 Limitation on eligibility; advisory commission selection of site
Sec. 5.5. (a) This section applies only to investments made in a
district designated for an area described in:
(1) IC 36-7-13-12(c)(1)(A); or
(2) IC 36-7-13-12(c)(1)(C).
(b) As used in this section, "advisory commission" means the
advisory commission on industrial development that designated the
districts described in subsection (a).
(c) A taxpayer is not entitled to a credit under this chapter for an
expenditure made in the district unless the advisory commission
selects the area to receive an allocation of the income tax incremental
amount and the gross retail incremental amount under IC 36-7-13.
(d) After receiving notice of the advisory commission's selection
under IC 36-7-13-23, the budget agency shall inform the Indiana
economic development corporation and the department of which
district was selected by the advisory commission.
(e) The Indiana economic development corporation may not
approve a taxpayer's expenditures until after receiving notice of the
advisory commission's selection. As added by P.L.113-2010, SEC.60.
IC 6-3.1-19-6 Method of claiming credit; submission of information
Sec. 6. To receive the credit provided by this section, a 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 all
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.3.
IC 6-3.1-19
Chapter 19. Community Revitalization Enhancement District Tax
Credit
IC 6-3.1-19-1 "State and local tax liability"
Sec. 1. As used in this chapter, "state and local tax liability"
means a taxpayer's total tax liability incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-3.5-1.1 (county adjusted gross income tax);
(3) IC 6-3.5-6 (county option income tax);
(4) IC 6-3.5-7 (county economic development income tax);
(5) IC 6-5.5 (the financial institutions tax); and
(6) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of all credits that 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.3. Amended by P.L.192-2002(ss),
SEC.113.
IC 6-3.1-19-1.5 "Pass through entity"
Sec. 1.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.224-2003, SEC.194.
IC 6-3.1-19-2 "Qualified investment"
Sec. 2. As used in this chapter, "qualified investment" means the
amount of a taxpayer's expenditures that is:
(1) for redevelopment or rehabilitation of property located
within a community revitalization enhancement district
designated under IC 36-7-13;
(2) made under a plan adopted by an advisory commission on
industrial development under IC 36-7-13; and
(3) approved by the Indiana economic development corporation
before the expenditure is made. As added by P.L.125-1998, SEC.3. Amended by P.L.4-2005, SEC.94.
IC 6-3.1-19-2.5 "Taxpayer"
Sec. 2.5. As used in this chapter, "taxpayer" means an individual
or entity that has any state and local tax liability. As added by P.L.224-2003, SEC.195.
IC 6-3.1-19-3 Entitlement to credit; amount; assignment
Sec. 3. (a) Except as provided in section 5 or 5.5 of this chapter,
a taxpayer is entitled to a credit against the taxpayer's state and local
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 twenty-five percent (25%).
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of property
redeveloped or rehabilitated under section 2 of this chapter. 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. The taxpayer may not receive
value in connection with the assignment under subsection (c) that
exceeds the value of the part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability against which the tax
credit may be applied, a shareholder, partner, or member of the pass
through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is entitled.
The credit provided under this subsection 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.
(f) A taxpayer that is otherwise entitled to a credit under this
chapter for a taxable year may claim the credit regardless of whether
any income tax incremental amount or gross retail incremental
amount has been:
(1) deposited in the incremental tax financing fund established
for the community revitalization enhancement district; or
(2) allocated to the district. As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003,
SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1;
P.L.113-2010, SEC.59.
IC 6-3.1-19-4 Credit carryover; carryback or refund unavailable
Sec. 4. If the amount of the credit determined under section 3 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. A taxpayer is not entitled to a
carryback or refund of any unused credit. As added by P.L.125-1998, SEC.3.
IC 6-3.1-19-5 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana; eligibility determinations; criteria; appeals
Sec. 5. (a) 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 them within
the district. Determinations under this section shall be made by the
department. The department shall adopt a proposed order concerning
a taxpayer's eligibility for the credit based on subsection (b) and the
following criteria:
(1) A site-specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or any
activity involving permanent full-time or part-time employees,
shall be considered a business operation.
(2) With respect to an operation located outside the district
(referred to in this section as a "nondistrict operation"), any of
the following that occurs during the twelve (12) months before
the completion of the physical relocation of all or part of the
activity described in subdivision (1) from the nondistrict
operation to the district as compared with the twelve (12)
months before that twelve (12) months shall be considered a
substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would
otherwise be disqualified under subsection (a) is eligible for the
credit provided by this chapter if the taxpayer meets at least one (1)
of the following conditions:
(1) The taxpayer relocates all or part of its nondistrict operation
for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of the
taxpayer.
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed
by the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building
authority.
(D) The building for the nondistrict operation has been
totally destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location of
the nondistrict operation are more than one and one-half (1
1/2) times the costs of purchase, renovation, and
construction of a facility in the district, as certified by three
(3) independent estimates.
(F) The taxpayer had existing operations in the district and
the nondistrict operations relocated to the district are an
expansion of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nondistrict operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the district. These costs must be
certified by three (3) independent estimates.
(2) The taxpayer has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nondistrict operation without the consent of
the employees.
(c) The department shall cause to be delivered to the taxpayer and
to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's proposed
order. The taxpayer and these persons shall be considered parties for
purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of the
proposed order, file written objections with the department. The
department shall immediately forward copies of the objections to the
director of the budget agency and the board of the Indiana economic
development corporation. A hearing panel composed of the
commissioner of the department or the commissioner's designee, the
director of the budget agency or the director's designee, and the
president of the Indiana economic development corporation or the
president's designee shall set the objections for oral argument and
give notice to the parties. A party at its own expense may cause to be
filed with the hearing panel a transcript of the oral testimony or any
other part of the record of the proceedings. The oral argument shall
be on the record filed with the hearing panel. The hearing panel may
hear additional evidence or remand the action to the department with
instructions appropriate to the expeditious and proper disposition of
the action. The hearing panel may adopt the proposed order of the
department, may amend or modify the proposed order, or may make
such order or determination as is proper on the record. The
affirmative votes of at least two (2) members of the hearing panel are
required for the hearing panel to take action on any measure. The
taxpayer may appeal the decision of the hearing panel to the tax court
in the same manner that a final determination of the department may
be appealed under IC 33-26.
(e) If no objections are filed, the department may adopt the
proposed order without oral argument.
(f) 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. As added by P.L.125-1998, SEC.3. Amended by P.L.81-2004, SEC.30
and P.L.90-2004, SEC.2; P.L.4-2005, SEC.95.
IC 6-3.1-19-5.5 Limitation on eligibility; advisory commission selection of site
Sec. 5.5. (a) This section applies only to investments made in a
district designated for an area described in:
(1) IC 36-7-13-12(c)(1)(A); or
(2) IC 36-7-13-12(c)(1)(C).
(b) As used in this section, "advisory commission" means the
advisory commission on industrial development that designated the
districts described in subsection (a).
(c) A taxpayer is not entitled to a credit under this chapter for an
expenditure made in the district unless the advisory commission
selects the area to receive an allocation of the income tax incremental
amount and the gross retail incremental amount under IC 36-7-13.
(d) After receiving notice of the advisory commission's selection
under IC 36-7-13-23, the budget agency shall inform the Indiana
economic development corporation and the department of which
district was selected by the advisory commission.
(e) The Indiana economic development corporation may not
approve a taxpayer's expenditures until after receiving notice of the
advisory commission's selection. As added by P.L.113-2010, SEC.60.
IC 6-3.1-19-6 Method of claiming credit; submission of information
Sec. 6. To receive the credit provided by this section, a 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 all
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.3.
IC 6-3.1-19
Chapter 19. Community Revitalization Enhancement District Tax
Credit
IC 6-3.1-19-1 "State and local tax liability"
Sec. 1. As used in this chapter, "state and local tax liability"
means a taxpayer's total tax liability incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-3.5-1.1 (county adjusted gross income tax);
(3) IC 6-3.5-6 (county option income tax);
(4) IC 6-3.5-7 (county economic development income tax);
(5) IC 6-5.5 (the financial institutions tax); and
(6) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of all credits that 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.3. Amended by P.L.192-2002(ss),
SEC.113.
IC 6-3.1-19-1.5 "Pass through entity"
Sec. 1.5. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.224-2003, SEC.194.
IC 6-3.1-19-2 "Qualified investment"
Sec. 2. As used in this chapter, "qualified investment" means the
amount of a taxpayer's expenditures that is:
(1) for redevelopment or rehabilitation of property located
within a community revitalization enhancement district
designated under IC 36-7-13;
(2) made under a plan adopted by an advisory commission on
industrial development under IC 36-7-13; and
(3) approved by the Indiana economic development corporation
before the expenditure is made. As added by P.L.125-1998, SEC.3. Amended by P.L.4-2005, SEC.94.
IC 6-3.1-19-2.5 "Taxpayer"
Sec. 2.5. As used in this chapter, "taxpayer" means an individual
or entity that has any state and local tax liability. As added by P.L.224-2003, SEC.195.
IC 6-3.1-19-3 Entitlement to credit; amount; assignment
Sec. 3. (a) Except as provided in section 5 or 5.5 of this chapter,
a taxpayer is entitled to a credit against the taxpayer's state and local
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 twenty-five percent (25%).
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of property
redeveloped or rehabilitated under section 2 of this chapter. 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. The taxpayer may not receive
value in connection with the assignment under subsection (c) that
exceeds the value of the part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability against which the tax
credit may be applied, a shareholder, partner, or member of the pass
through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is entitled.
The credit provided under this subsection 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.
(f) A taxpayer that is otherwise entitled to a credit under this
chapter for a taxable year may claim the credit regardless of whether
any income tax incremental amount or gross retail incremental
amount has been:
(1) deposited in the incremental tax financing fund established
for the community revitalization enhancement district; or
(2) allocated to the district. As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003,
SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1;
P.L.113-2010, SEC.59.
IC 6-3.1-19-4 Credit carryover; carryback or refund unavailable
Sec. 4. If the amount of the credit determined under section 3 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. A taxpayer is not entitled to a
carryback or refund of any unused credit. As added by P.L.125-1998, SEC.3.
IC 6-3.1-19-5 Ineligibility for credit to extent of reduction or cessation of
operations in Indiana; eligibility determinations; criteria; appeals
Sec. 5. (a) 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 them within
the district. Determinations under this section shall be made by the
department. The department shall adopt a proposed order concerning
a taxpayer's eligibility for the credit based on subsection (b) and the
following criteria:
(1) A site-specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or any
activity involving permanent full-time or part-time employees,
shall be considered a business operation.
(2) With respect to an operation located outside the district
(referred to in this section as a "nondistrict operation"), any of
the following that occurs during the twelve (12) months before
the completion of the physical relocation of all or part of the
activity described in subdivision (1) from the nondistrict
operation to the district as compared with the twelve (12)
months before that twelve (12) months shall be considered a
substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would
otherwise be disqualified under subsection (a) is eligible for the
credit provided by this chapter if the taxpayer meets at least one (1)
of the following conditions:
(1) The taxpayer relocates all or part of its nondistrict operation
for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of the
taxpayer.
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed
by the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building
authority.
(D) The building for the nondistrict operation has been
totally destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location of
the nondistrict operation are more than one and one-half (1
1/2) times the costs of purchase, renovation, and
construction of a facility in the district, as certified by three
(3) independent estimates.
(F) The taxpayer had existing operations in the district and
the nondistrict operations relocated to the district are an
expansion of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nondistrict operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the district. These costs must be
certified by three (3) independent estimates.
(2) The taxpayer has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nondistrict operation without the consent of
the employees.
(c) The department shall cause to be delivered to the taxpayer and
to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's proposed
order. The taxpayer and these persons shall be considered parties for
purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of the
proposed order, file written objections with the department. The
department shall immediately forward copies of the objections to the
director of the budget agency and the board of the Indiana economic
development corporation. A hearing panel composed of the
commissioner of the department or the commissioner's designee, the
director of the budget agency or the director's designee, and the
president of the Indiana economic development corporation or the
president's designee shall set the objections for oral argument and
give notice to the parties. A party at its own expense may cause to be
filed with the hearing panel a transcript of the oral testimony or any
other part of the record of the proceedings. The oral argument shall
be on the record filed with the hearing panel. The hearing panel may
hear additional evidence or remand the action to the department with
instructions appropriate to the expeditious and proper disposition of
the action. The hearing panel may adopt the proposed order of the
department, may amend or modify the proposed order, or may make
such order or determination as is proper on the record. The
affirmative votes of at least two (2) members of the hearing panel are
required for the hearing panel to take action on any measure. The
taxpayer may appeal the decision of the hearing panel to the tax court
in the same manner that a final determination of the department may
be appealed under IC 33-26.
(e) If no objections are filed, the department may adopt the
proposed order without oral argument.
(f) 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. As added by P.L.125-1998, SEC.3. Amended by P.L.81-2004, SEC.30
and P.L.90-2004, SEC.2; P.L.4-2005, SEC.95.
IC 6-3.1-19-5.5 Limitation on eligibility; advisory commission selection of site
Sec. 5.5. (a) This section applies only to investments made in a
district designated for an area described in:
(1) IC 36-7-13-12(c)(1)(A); or
(2) IC 36-7-13-12(c)(1)(C).
(b) As used in this section, "advisory commission" means the
advisory commission on industrial development that designated the
districts described in subsection (a).
(c) A taxpayer is not entitled to a credit under this chapter for an
expenditure made in the district unless the advisory commission
selects the area to receive an allocation of the income tax incremental
amount and the gross retail incremental amount under IC 36-7-13.
(d) After receiving notice of the advisory commission's selection
under IC 36-7-13-23, the budget agency shall inform the Indiana
economic development corporation and the department of which
district was selected by the advisory commission.
(e) The Indiana economic development corporation may not
approve a taxpayer's expenditures until after receiving notice of the
advisory commission's selection. As added by P.L.113-2010, SEC.60.
IC 6-3.1-19-6 Method of claiming credit; submission of information
Sec. 6. To receive the credit provided by this section, a 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 all
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.3.
