IC 6-3.1-22
Chapter 22. Residential Historic Rehabilitation Credit
IC 6-3.1-22-1 Applicability of definitions
Sec. 1. The definitions set forth in:
(1) IC 14-8-2 that apply to IC 14-21-1; and
(2) IC 14-21-1;
apply throughout this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-2 "Division" defined
Sec. 2. As used in this chapter, "division" means the division of
historic preservation and archeology of the department of natural
resources. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-3 "Preservation" defined
Sec. 3. (a) As used in this chapter, "preservation" means the
application of measures to sustain the form, integrity, and material
of:
(1) a building or structure; or
(2) the form and vegetative cover of property.
(b) The term includes stabilization work and the maintenance of
historic building materials. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-4 "Qualified expenditures" defined
Sec. 4. (a) As used in this chapter, "qualified expenditures" means
expenditures for preservation or rehabilitation of a structure that
enables the structure to be principally used and occupied by the
taxpayer as the taxpayer's residence.
(b) The term does not include costs that are incurred to do the
following:
(1) Acquire a property or an interest in a property.
(2) Pay taxes due on a property.
(3) Enlarge an existing structure.
(4) Pay realtors' fees associated with a structure or property.
(5) Pay paving and landscaping costs.
(6) Pay sales and marketing costs. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-5 "Rehabilitation" defined
Sec. 5. As used in this chapter, "rehabilitation" means the process
of returning a property to a state of utility through repair or alteration
that makes possible an efficient contemporary residential use while
preserving the parts or features of the property that are significant to
the historical, architectural, or archeological values of the property. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-6 "State tax liability" defined
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7
(the adjusted gross income 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.129-2001, SEC.7.
IC 6-3.1-22-7 "Taxpayer" defined
Sec. 7. As used in this chapter, "taxpayer" means:
(1) an individual filing a single return; or
(2) a married couple filing a joint return. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-8 Entitlement to credit
Sec. 8. (a) Subject to section 14 of this chapter, a taxpayer is
entitled to a credit against the taxpayer's state tax liability in the
taxable year in which the taxpayer completes the preservation or
rehabilitation of historic property and obtains the certifications
required under section 9 of this chapter.
(b) The amount of the credit is equal to twenty percent (20%) of
the qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of
historic property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)
spouse may take the whole credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-9 Conditions for credit qualification
Sec. 9. A taxpayer qualifies for a credit under section 8 of this
chapter if all of the following conditions are met:
(1) The historic property is:
(A) located in Indiana;
(B) at least fifty (50) years old; and
(C) except as provided in section 8(c) of this chapter, owned
by the taxpayer.
(2) The division certifies that the historic property is listed in
the register of Indiana historic sites and historic structures.
(3) The division certifies that the taxpayer submitted a proposed
preservation or rehabilitation plan to the division that complies
with the standards of the division.
(4) The division certifies that the preservation or rehabilitation
work that is the subject of the credit substantially complies with
the proposed plan referred to in subdivision (3).
(5) The preservation or rehabilitation work is completed in not
more than:
(A) two (2) years; or
(B) five (5) years if the preservation or rehabilitation plan
indicates that the preservation or rehabilitation is initially
planned for completion in phases.
The time in which work must be completed begins when the
physical work of construction or destruction in preparation for
construction begins.
(6) The historic property is principally used and occupied by the
taxpayer as the taxpayer's residence.
(7) The qualified expenditures for preservation or rehabilitation
of the historic property exceed ten thousand dollars ($10,000). As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-10 Certifications for rehabilitation work
Sec. 10. (a) The division shall provide the certifications referred
to in section 9(3) and 9(4) of this chapter if a taxpayer's proposed
preservation or rehabilitation plan complies with the standards of the
division and the taxpayer's preservation or rehabilitation work
complies with the plan.
(b) The taxpayer may appeal a decision by the division under this
chapter to the review board. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-11 Credit claimed on tax return
Sec. 11. To obtain a credit under 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
certifications by the division required under section 9 of this chapter
and all information that the department of state revenue determines
is necessary for the calculation of the credit provided by this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-12 Reduction of adjusted basis
Sec. 12. For purposes of IC 6-3, the adjusted basis of the structure
shall be reduced by the amount of a credit granted under this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-13 Recaptured credit
Sec. 13. (a) A credit claimed under this chapter shall be
recaptured from the taxpayer if:
(1) the property is transferred less than five (5) years after
completion of the certified preservation or rehabilitation work;
or
(2) less than five (5) years after completion of the certified
preservation or rehabilitation, additional modifications to the
property are undertaken that do not meet the standards of the
division.
(b) If the recapture of a credit is required under this section, an
amount equal to the credit recaptured shall be added to the tax
liability of the taxpayer for the taxable year during which the credit
is recaptured. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-14 Credit exceeding tax liability
Sec. 14. (a) If the credit provided by this chapter exceeds a
taxpayer's state tax liability for the taxable year for which the credit
is first claimed, the excess may be carried over to succeeding taxable
years and used as a credit against the tax otherwise due and payable
by the taxpayer under IC 6-3 during those taxable years. Each time
that the credit is carried over to a succeeding taxable year, the credit
is to be reduced by the amount that was used as a credit during the
immediately preceding taxable year. The credit provided by this
chapter may be carried forward and applied to succeeding taxable
years for fifteen (15) taxable years following the unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shall
be applied against the taxpayer's tax liability for that taxable year
before any credit carryover is applied against that liability under
subsection (a).
(c) A taxpayer is not entitled to any carryback or refund of any
unused credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-15 Maximum credit
Sec. 15. The amount of tax credits allowed under this chapter may
not exceed two hundred fifty thousand dollars ($250,000) in a state
fiscal year beginning July 1, 2001, or thereafter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-16 Adoption of rules
Sec. 16. The following may adopt rules under IC 4-22-2 to carry
out this chapter:
(1) The department of state revenue.
(2) The division. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22
Chapter 22. Residential Historic Rehabilitation Credit
IC 6-3.1-22-1 Applicability of definitions
Sec. 1. The definitions set forth in:
(1) IC 14-8-2 that apply to IC 14-21-1; and
(2) IC 14-21-1;
apply throughout this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-2 "Division" defined
Sec. 2. As used in this chapter, "division" means the division of
historic preservation and archeology of the department of natural
resources. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-3 "Preservation" defined
Sec. 3. (a) As used in this chapter, "preservation" means the
application of measures to sustain the form, integrity, and material
of:
(1) a building or structure; or
(2) the form and vegetative cover of property.
(b) The term includes stabilization work and the maintenance of
historic building materials. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-4 "Qualified expenditures" defined
Sec. 4. (a) As used in this chapter, "qualified expenditures" means
expenditures for preservation or rehabilitation of a structure that
enables the structure to be principally used and occupied by the
taxpayer as the taxpayer's residence.
(b) The term does not include costs that are incurred to do the
following:
(1) Acquire a property or an interest in a property.
(2) Pay taxes due on a property.
(3) Enlarge an existing structure.
(4) Pay realtors' fees associated with a structure or property.
(5) Pay paving and landscaping costs.
(6) Pay sales and marketing costs. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-5 "Rehabilitation" defined
Sec. 5. As used in this chapter, "rehabilitation" means the process
of returning a property to a state of utility through repair or alteration
that makes possible an efficient contemporary residential use while
preserving the parts or features of the property that are significant to
the historical, architectural, or archeological values of the property. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-6 "State tax liability" defined
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7
(the adjusted gross income 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.129-2001, SEC.7.
IC 6-3.1-22-7 "Taxpayer" defined
Sec. 7. As used in this chapter, "taxpayer" means:
(1) an individual filing a single return; or
(2) a married couple filing a joint return. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-8 Entitlement to credit
Sec. 8. (a) Subject to section 14 of this chapter, a taxpayer is
entitled to a credit against the taxpayer's state tax liability in the
taxable year in which the taxpayer completes the preservation or
rehabilitation of historic property and obtains the certifications
required under section 9 of this chapter.
(b) The amount of the credit is equal to twenty percent (20%) of
the qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of
historic property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)
spouse may take the whole credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-9 Conditions for credit qualification
Sec. 9. A taxpayer qualifies for a credit under section 8 of this
chapter if all of the following conditions are met:
(1) The historic property is:
(A) located in Indiana;
(B) at least fifty (50) years old; and
(C) except as provided in section 8(c) of this chapter, owned
by the taxpayer.
(2) The division certifies that the historic property is listed in
the register of Indiana historic sites and historic structures.
(3) The division certifies that the taxpayer submitted a proposed
preservation or rehabilitation plan to the division that complies
with the standards of the division.
(4) The division certifies that the preservation or rehabilitation
work that is the subject of the credit substantially complies with
the proposed plan referred to in subdivision (3).
(5) The preservation or rehabilitation work is completed in not
more than:
(A) two (2) years; or
(B) five (5) years if the preservation or rehabilitation plan
indicates that the preservation or rehabilitation is initially
planned for completion in phases.
The time in which work must be completed begins when the
physical work of construction or destruction in preparation for
construction begins.
(6) The historic property is principally used and occupied by the
taxpayer as the taxpayer's residence.
(7) The qualified expenditures for preservation or rehabilitation
of the historic property exceed ten thousand dollars ($10,000). As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-10 Certifications for rehabilitation work
Sec. 10. (a) The division shall provide the certifications referred
to in section 9(3) and 9(4) of this chapter if a taxpayer's proposed
preservation or rehabilitation plan complies with the standards of the
division and the taxpayer's preservation or rehabilitation work
complies with the plan.
(b) The taxpayer may appeal a decision by the division under this
chapter to the review board. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-11 Credit claimed on tax return
Sec. 11. To obtain a credit under 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
certifications by the division required under section 9 of this chapter
and all information that the department of state revenue determines
is necessary for the calculation of the credit provided by this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-12 Reduction of adjusted basis
Sec. 12. For purposes of IC 6-3, the adjusted basis of the structure
shall be reduced by the amount of a credit granted under this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-13 Recaptured credit
Sec. 13. (a) A credit claimed under this chapter shall be
recaptured from the taxpayer if:
(1) the property is transferred less than five (5) years after
completion of the certified preservation or rehabilitation work;
or
(2) less than five (5) years after completion of the certified
preservation or rehabilitation, additional modifications to the
property are undertaken that do not meet the standards of the
division.
(b) If the recapture of a credit is required under this section, an
amount equal to the credit recaptured shall be added to the tax
liability of the taxpayer for the taxable year during which the credit
is recaptured. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-14 Credit exceeding tax liability
Sec. 14. (a) If the credit provided by this chapter exceeds a
taxpayer's state tax liability for the taxable year for which the credit
is first claimed, the excess may be carried over to succeeding taxable
years and used as a credit against the tax otherwise due and payable
by the taxpayer under IC 6-3 during those taxable years. Each time
that the credit is carried over to a succeeding taxable year, the credit
is to be reduced by the amount that was used as a credit during the
immediately preceding taxable year. The credit provided by this
chapter may be carried forward and applied to succeeding taxable
years for fifteen (15) taxable years following the unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shall
be applied against the taxpayer's tax liability for that taxable year
before any credit carryover is applied against that liability under
subsection (a).
(c) A taxpayer is not entitled to any carryback or refund of any
unused credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-15 Maximum credit
Sec. 15. The amount of tax credits allowed under this chapter may
not exceed two hundred fifty thousand dollars ($250,000) in a state
fiscal year beginning July 1, 2001, or thereafter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-16 Adoption of rules
Sec. 16. The following may adopt rules under IC 4-22-2 to carry
out this chapter:
(1) The department of state revenue.
(2) The division. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22
Chapter 22. Residential Historic Rehabilitation Credit
IC 6-3.1-22-1 Applicability of definitions
Sec. 1. The definitions set forth in:
(1) IC 14-8-2 that apply to IC 14-21-1; and
(2) IC 14-21-1;
apply throughout this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-2 "Division" defined
Sec. 2. As used in this chapter, "division" means the division of
historic preservation and archeology of the department of natural
resources. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-3 "Preservation" defined
Sec. 3. (a) As used in this chapter, "preservation" means the
application of measures to sustain the form, integrity, and material
of:
(1) a building or structure; or
(2) the form and vegetative cover of property.
(b) The term includes stabilization work and the maintenance of
historic building materials. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-4 "Qualified expenditures" defined
Sec. 4. (a) As used in this chapter, "qualified expenditures" means
expenditures for preservation or rehabilitation of a structure that
enables the structure to be principally used and occupied by the
taxpayer as the taxpayer's residence.
(b) The term does not include costs that are incurred to do the
following:
(1) Acquire a property or an interest in a property.
(2) Pay taxes due on a property.
(3) Enlarge an existing structure.
(4) Pay realtors' fees associated with a structure or property.
(5) Pay paving and landscaping costs.
(6) Pay sales and marketing costs. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-5 "Rehabilitation" defined
Sec. 5. As used in this chapter, "rehabilitation" means the process
of returning a property to a state of utility through repair or alteration
that makes possible an efficient contemporary residential use while
preserving the parts or features of the property that are significant to
the historical, architectural, or archeological values of the property. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-6 "State tax liability" defined
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7
(the adjusted gross income 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.129-2001, SEC.7.
IC 6-3.1-22-7 "Taxpayer" defined
Sec. 7. As used in this chapter, "taxpayer" means:
(1) an individual filing a single return; or
(2) a married couple filing a joint return. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-8 Entitlement to credit
Sec. 8. (a) Subject to section 14 of this chapter, a taxpayer is
entitled to a credit against the taxpayer's state tax liability in the
taxable year in which the taxpayer completes the preservation or
rehabilitation of historic property and obtains the certifications
required under section 9 of this chapter.
(b) The amount of the credit is equal to twenty percent (20%) of
the qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of
historic property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)
spouse may take the whole credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-9 Conditions for credit qualification
Sec. 9. A taxpayer qualifies for a credit under section 8 of this
chapter if all of the following conditions are met:
(1) The historic property is:
(A) located in Indiana;
(B) at least fifty (50) years old; and
(C) except as provided in section 8(c) of this chapter, owned
by the taxpayer.
(2) The division certifies that the historic property is listed in
the register of Indiana historic sites and historic structures.
(3) The division certifies that the taxpayer submitted a proposed
preservation or rehabilitation plan to the division that complies
with the standards of the division.
(4) The division certifies that the preservation or rehabilitation
work that is the subject of the credit substantially complies with
the proposed plan referred to in subdivision (3).
(5) The preservation or rehabilitation work is completed in not
more than:
(A) two (2) years; or
(B) five (5) years if the preservation or rehabilitation plan
indicates that the preservation or rehabilitation is initially
planned for completion in phases.
The time in which work must be completed begins when the
physical work of construction or destruction in preparation for
construction begins.
(6) The historic property is principally used and occupied by the
taxpayer as the taxpayer's residence.
(7) The qualified expenditures for preservation or rehabilitation
of the historic property exceed ten thousand dollars ($10,000). As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-10 Certifications for rehabilitation work
Sec. 10. (a) The division shall provide the certifications referred
to in section 9(3) and 9(4) of this chapter if a taxpayer's proposed
preservation or rehabilitation plan complies with the standards of the
division and the taxpayer's preservation or rehabilitation work
complies with the plan.
(b) The taxpayer may appeal a decision by the division under this
chapter to the review board. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-11 Credit claimed on tax return
Sec. 11. To obtain a credit under 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
certifications by the division required under section 9 of this chapter
and all information that the department of state revenue determines
is necessary for the calculation of the credit provided by this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-12 Reduction of adjusted basis
Sec. 12. For purposes of IC 6-3, the adjusted basis of the structure
shall be reduced by the amount of a credit granted under this chapter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-13 Recaptured credit
Sec. 13. (a) A credit claimed under this chapter shall be
recaptured from the taxpayer if:
(1) the property is transferred less than five (5) years after
completion of the certified preservation or rehabilitation work;
or
(2) less than five (5) years after completion of the certified
preservation or rehabilitation, additional modifications to the
property are undertaken that do not meet the standards of the
division.
(b) If the recapture of a credit is required under this section, an
amount equal to the credit recaptured shall be added to the tax
liability of the taxpayer for the taxable year during which the credit
is recaptured. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-14 Credit exceeding tax liability
Sec. 14. (a) If the credit provided by this chapter exceeds a
taxpayer's state tax liability for the taxable year for which the credit
is first claimed, the excess may be carried over to succeeding taxable
years and used as a credit against the tax otherwise due and payable
by the taxpayer under IC 6-3 during those taxable years. Each time
that the credit is carried over to a succeeding taxable year, the credit
is to be reduced by the amount that was used as a credit during the
immediately preceding taxable year. The credit provided by this
chapter may be carried forward and applied to succeeding taxable
years for fifteen (15) taxable years following the unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shall
be applied against the taxpayer's tax liability for that taxable year
before any credit carryover is applied against that liability under
subsection (a).
(c) A taxpayer is not entitled to any carryback or refund of any
unused credit. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-15 Maximum credit
Sec. 15. The amount of tax credits allowed under this chapter may
not exceed two hundred fifty thousand dollars ($250,000) in a state
fiscal year beginning July 1, 2001, or thereafter. As added by P.L.129-2001, SEC.7.
IC 6-3.1-22-16 Adoption of rules
Sec. 16. The following may adopt rules under IC 4-22-2 to carry
out this chapter:
(1) The department of state revenue.
(2) The division. As added by P.L.129-2001, SEC.7.
