IC 6-3.1-23
Chapter 23. Voluntary Remediation Tax Credit
IC 6-3.1-23-1 "Brownfield" defined
Sec. 1. As used in this chapter, "brownfield" has the meaning set
forth in IC 13-11-2-19.3. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-1.5 "Legislative body"
Sec. 1.5. As used in this chapter, "legislative body" refers to:
(1) the legislative body of a municipality (as defined in
IC 36-1-2-11) in which is located property on which
remediation referred to in section 3(1) of this chapter occurs; or
(2) if the property referred to in subdivision (1) is not located in
a municipality, the legislative body of the county in which the
property is located. As added by P.L.245-2003, SEC.26.
IC 6-3.1-23-2 "Pass through entity" defined
Sec. 2. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.109-2001, SEC.1.
IC 6-3.1-23-3 "Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means costs
that:
(1) result from work performed in Indiana to conduct a
voluntary remediation, whether or not under IC 13-25-5, that
involves the remediation of a brownfield;
(2) are not recovered by a taxpayer from another person after
the taxpayer has made a good faith effort to recover the costs;
(3) are not paid from state financial assistance;
(4) result in taxable income to any other Indiana taxpayer; and
(5) are approved by the department of environmental
management and the Indiana finance authority under section 12
of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.27; P.L.235-2005, SEC.98.
IC 6-3.1-23-3.5 "State financial assistance" defined
Sec. 3.5. As used in this chapter, "state financial assistance"
means money received by a taxpayer:
(1) as a direct loan:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program; or
(2) as a grant:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program. As added by P.L.245-2003, SEC.28.
IC 6-3.1-23-4 "State tax liability" defined
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability for a listed tax (as defined in
IC 6-8.1-1-1), 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.109-2001, SEC.1. Amended by P.L.192-2002(ss),
SEC.118; P.L.208-2005, SEC.3.
IC 6-3.1-23-5 Taxpayer credit; eligibility; department determination; Indiana
finance authority
Sec. 5. (a) A taxpayer is entitled to a credit equal to the amount
determined under section 6 of this chapter against the taxpayer's state
tax liability for a taxable year if the following requirements are
satisfied:
(1) The taxpayer does the following:
(A) Makes a qualified investment in that taxable year.
(B) Submits the following to the Indiana finance authority:
(i) A description of the taxpayer's proposed redevelopment
of the property.
(ii) The sources and amounts of money to be used for the
remediation and proposed redevelopment of the property.
(iii) An estimate of the value of the remediation and
proposed redevelopment.
(iv) A description documenting any good faith attempts to
recover the costs of the environmental damages from
liable parties.
(v) Proof of appropriate zoning for the intended reuse.
(vi) A letter supporting the proposed project and
redevelopment from the legislative body.
(vii) The documentation described in subsection (b).
(2) The department determines under section 15 of this chapter
that the taxpayer's return claiming the credit is filed with the
department before the maximum amount of credits allowed
under this chapter is met.
(b) The documentation referred to in subsection (a)(1)(B)(vii)
consists of information reflecting that the taxpayer:
(1) has never had an ownership interest in an entity that caused
or contributed to; and
(2) has not caused or contributed to;
the release or threatened release of a hazardous substance, a
contaminant, petroleum, or a petroleum product that is the subject of
the remediation.
(c) The Indiana finance authority shall:
(1) determine whether the taxpayer meets the requirements of
subsection (a)(1); and
(2) if the taxpayer meets the requirements of subsection (a)(1),
certify to the taxpayer that the taxpayer is eligible for the credit
allowed under this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.29; P.L.208-2005, SEC.4; P.L.235-2005, SEC.99.
IC 6-3.1-23-6 Amount of credit
Sec. 6. The amount of the credit allowed under this chapter with
respect to each brownfield site is equal to the lesser of:
(1) two hundred thousand dollars ($200,000); or
(2) the sum of:
(A) one hundred percent (100%) multiplied by the first one
hundred thousand dollars ($100,000) of qualified investment
made by the taxpayer during the taxable year; plus
(B) fifty percent (50%) multiplied by the amount of the
qualified investment made by the taxpayer during the taxable
year that exceeds one hundred thousand dollars ($100,000). As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.5.
IC 6-3.1-23-7
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-8
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-9
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-10
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-11 Credit carryover and carryback
Sec. 11. (a) If the amount determined under section 6 of this
chapter in a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess:
(1) over for not more than the immediately following five (5)
taxable years; or
(2) back to the immediately preceding taxable year.
(b) The amount of excess available to be used for carryover under
subsection (a)(1) is reduced to the extent it is used for:
(1) a carryover under subsection (a)(1); or
(2) a carryback under subsection (a)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.30.
IC 6-3.1-23-12 Certification of qualified investment action; action required by
taxpayer
Sec. 12. (a) To be entitled to a credit under this chapter, a
taxpayer must request the department of environmental management
and the Indiana finance authority to determine if costs incurred in a
voluntary remediation involving a brownfield are qualified
investments.
(b) The request under subsection (a) must be made before the
costs are incurred.
(c) Upon receipt of a request under subsection (a), the department
of environmental management and the Indiana finance authority
shall:
(1) examine the costs; and
(2) certify any costs that the department and the authority
determine to be a qualified investment.
(d) Upon completion of a voluntary remediation for which costs
have been certified as a qualified investment under subsection (c),
the taxpayer:
(1) shall notify the department of environmental management;
and
(2) shall request from the department of environmental
management:
(A) with respect to voluntary remediation conducted under
IC 13-25-5, the certificate of completion issued by the
commissioner under IC 13-25-5-16 for the voluntary
remediation work plan under which the costs certified under
subsection (c)(2) were incurred; or
(B) with respect to voluntary remediation not conducted
under IC 13-25-5, a certification of the costs incurred for the
voluntary remediation that are consistent with the costs
certified under subsection (c)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.31; P.L.208-2005, SEC.6; P.L.235-2005, SEC.100.
IC 6-3.1-23-13 Credit to be claimed on tax return; submissions to department of
state revenue
Sec. 13. (a) To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return or
returns in the manner prescribed by the department of state revenue.
(b) The taxpayer shall submit the following to the department of
state revenue:
(1) The certification of the qualified investment by the
department of environmental management and the Indiana
finance authority under section 12(c) of this chapter.
(2) Either:
(A) an official copy of the certification referred to in section
12(d)(2)(A) of this chapter; or
(B) the certification issued by the department of
environmental management in response to a request under
section 12(d)(2)(B) of this chapter.
(3) Proof of payment of the certified qualified investment.
(4) The certification received by the taxpayer under section 5(c)
of this chapter.
(5) Information that the department determines is necessary for
the calculation of the credit provided by this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.32; P.L.208-2005, SEC.7; P.L.235-2005, SEC.101.
IC 6-3.1-23-14 Pass through entities entitled to credit
Sec. 14. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the tax
credit may be applied, a shareholder, a partner, or a 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.
(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 otherwise entitled under this chapter. However, a pass
through entity and a shareholder, partner, or member of the pass
through entity may not claim more than one (1) credit for the same
qualified expenditure. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-15 Maximum amount of credit; source of funding for credit
Sec. 15. (a) The amount of tax credits allowed under this chapter
may not exceed two million dollars ($2,000,000) in a state fiscal year
unless the Indiana finance authority determines under subsection (e)
that money is available for additional tax credits in a particular state
fiscal year. However, if the maximum amount of tax credits allowed
under this subsection exceeds the amount available in the subaccount
of the environmental remediation revolving loan fund (IC 13-19-5),
the maximum amount of tax credits allowed under this subsection is
reduced to the amount available.
(b) The department shall record the time of filing of each return
claiming a credit under section 13 of this chapter and shall, except as
provided in subsection (c), grant the credit to the taxpayer, if the
taxpayer otherwise qualifies for a tax credit under this chapter, in the
chronological order in which the return is filed in the state fiscal
year.
(c) If the total credits approved under this section equal the
maximum amount allowable in a state fiscal year, a return claiming
the credit filed later in that same fiscal year may not be approved.
However, if an applicant for whom a credit has been approved fails
to file the information required by section 13 of this chapter, an
amount equal to the credit previously allowed or set aside for the
applicant may be allowed to the next eligible applicant or applicants
until the total amount has been allowed. In addition, the department
may, if the applicant so requests, approve a credit application, in
whole or in part, with respect to the next succeeding state fiscal year.
(d) The department of state revenue shall report the total credits
granted under this chapter for each state fiscal year to the Indiana
finance authority. The Indiana finance authority shall transfer to the
state general fund an amount equal to the total credits granted from
the subaccount of the environmental remediation revolving loan fund
(IC 13-19-5).
(e) At the end of each state fiscal year, the Indiana finance
authority may determine whether money is available in the
environmental remediation revolving loan fund (IC 13-19-5) to
provide tax credits in excess of the amount set forth in subsection (a)
in the subsequent state fiscal year.
(f) Before June 30 of each year, the Indiana finance authority may
assess the demand for tax credits under this chapter and determine
whether the need for other brownfield activities is greater than the
need for tax credits. If the Indiana finance authority determines that
the need for other brownfield activities is greater than the need for
tax credits, the authority may set aside up to three-fourths (3/4) of the
amount of allowable tax credits for the subsequent state fiscal year
and use it for other brownfield projects.
(g) Except as provided in subsection (h), the Indiana finance
authority may use money set aside under subsection (f) for any
permissible purpose.
(h) Money specifically appropriated for tax credits may not be set
aside for another use. As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.8; P.L.235-2005, SEC.102.
IC 6-3.1-23-16 Expiration of credit; carryover after expiration date
Sec. 16. A tax credit may not be allowed under this chapter for a
taxable year that begins after December 31, 2007. However, this
section does not affect the ability of a taxpayer to carry forward the
excess of a tax credit claimed for a taxable year that begins before
January 1, 2008, under section 11 of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.33; P.L.208-2005, SEC.9.
IC 6-3.1-23-17 Guidelines
Sec. 17. The Indiana finance authority, after consulting with the
department of environmental management and the budget agency and
without complying with IC 4-22-2, may adopt guidelines to govern
the administration of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.235-2005,
SEC.103.
IC 6-3.1-23
Chapter 23. Voluntary Remediation Tax Credit
IC 6-3.1-23-1 "Brownfield" defined
Sec. 1. As used in this chapter, "brownfield" has the meaning set
forth in IC 13-11-2-19.3. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-1.5 "Legislative body"
Sec. 1.5. As used in this chapter, "legislative body" refers to:
(1) the legislative body of a municipality (as defined in
IC 36-1-2-11) in which is located property on which
remediation referred to in section 3(1) of this chapter occurs; or
(2) if the property referred to in subdivision (1) is not located in
a municipality, the legislative body of the county in which the
property is located. As added by P.L.245-2003, SEC.26.
IC 6-3.1-23-2 "Pass through entity" defined
Sec. 2. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.109-2001, SEC.1.
IC 6-3.1-23-3 "Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means costs
that:
(1) result from work performed in Indiana to conduct a
voluntary remediation, whether or not under IC 13-25-5, that
involves the remediation of a brownfield;
(2) are not recovered by a taxpayer from another person after
the taxpayer has made a good faith effort to recover the costs;
(3) are not paid from state financial assistance;
(4) result in taxable income to any other Indiana taxpayer; and
(5) are approved by the department of environmental
management and the Indiana finance authority under section 12
of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.27; P.L.235-2005, SEC.98.
IC 6-3.1-23-3.5 "State financial assistance" defined
Sec. 3.5. As used in this chapter, "state financial assistance"
means money received by a taxpayer:
(1) as a direct loan:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program; or
(2) as a grant:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program. As added by P.L.245-2003, SEC.28.
IC 6-3.1-23-4 "State tax liability" defined
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability for a listed tax (as defined in
IC 6-8.1-1-1), 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.109-2001, SEC.1. Amended by P.L.192-2002(ss),
SEC.118; P.L.208-2005, SEC.3.
IC 6-3.1-23-5 Taxpayer credit; eligibility; department determination; Indiana
finance authority
Sec. 5. (a) A taxpayer is entitled to a credit equal to the amount
determined under section 6 of this chapter against the taxpayer's state
tax liability for a taxable year if the following requirements are
satisfied:
(1) The taxpayer does the following:
(A) Makes a qualified investment in that taxable year.
(B) Submits the following to the Indiana finance authority:
(i) A description of the taxpayer's proposed redevelopment
of the property.
(ii) The sources and amounts of money to be used for the
remediation and proposed redevelopment of the property.
(iii) An estimate of the value of the remediation and
proposed redevelopment.
(iv) A description documenting any good faith attempts to
recover the costs of the environmental damages from
liable parties.
(v) Proof of appropriate zoning for the intended reuse.
(vi) A letter supporting the proposed project and
redevelopment from the legislative body.
(vii) The documentation described in subsection (b).
(2) The department determines under section 15 of this chapter
that the taxpayer's return claiming the credit is filed with the
department before the maximum amount of credits allowed
under this chapter is met.
(b) The documentation referred to in subsection (a)(1)(B)(vii)
consists of information reflecting that the taxpayer:
(1) has never had an ownership interest in an entity that caused
or contributed to; and
(2) has not caused or contributed to;
the release or threatened release of a hazardous substance, a
contaminant, petroleum, or a petroleum product that is the subject of
the remediation.
(c) The Indiana finance authority shall:
(1) determine whether the taxpayer meets the requirements of
subsection (a)(1); and
(2) if the taxpayer meets the requirements of subsection (a)(1),
certify to the taxpayer that the taxpayer is eligible for the credit
allowed under this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.29; P.L.208-2005, SEC.4; P.L.235-2005, SEC.99.
IC 6-3.1-23-6 Amount of credit
Sec. 6. The amount of the credit allowed under this chapter with
respect to each brownfield site is equal to the lesser of:
(1) two hundred thousand dollars ($200,000); or
(2) the sum of:
(A) one hundred percent (100%) multiplied by the first one
hundred thousand dollars ($100,000) of qualified investment
made by the taxpayer during the taxable year; plus
(B) fifty percent (50%) multiplied by the amount of the
qualified investment made by the taxpayer during the taxable
year that exceeds one hundred thousand dollars ($100,000). As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.5.
IC 6-3.1-23-7
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-8
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-9
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-10
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-11 Credit carryover and carryback
Sec. 11. (a) If the amount determined under section 6 of this
chapter in a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess:
(1) over for not more than the immediately following five (5)
taxable years; or
(2) back to the immediately preceding taxable year.
(b) The amount of excess available to be used for carryover under
subsection (a)(1) is reduced to the extent it is used for:
(1) a carryover under subsection (a)(1); or
(2) a carryback under subsection (a)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.30.
IC 6-3.1-23-12 Certification of qualified investment action; action required by
taxpayer
Sec. 12. (a) To be entitled to a credit under this chapter, a
taxpayer must request the department of environmental management
and the Indiana finance authority to determine if costs incurred in a
voluntary remediation involving a brownfield are qualified
investments.
(b) The request under subsection (a) must be made before the
costs are incurred.
(c) Upon receipt of a request under subsection (a), the department
of environmental management and the Indiana finance authority
shall:
(1) examine the costs; and
(2) certify any costs that the department and the authority
determine to be a qualified investment.
(d) Upon completion of a voluntary remediation for which costs
have been certified as a qualified investment under subsection (c),
the taxpayer:
(1) shall notify the department of environmental management;
and
(2) shall request from the department of environmental
management:
(A) with respect to voluntary remediation conducted under
IC 13-25-5, the certificate of completion issued by the
commissioner under IC 13-25-5-16 for the voluntary
remediation work plan under which the costs certified under
subsection (c)(2) were incurred; or
(B) with respect to voluntary remediation not conducted
under IC 13-25-5, a certification of the costs incurred for the
voluntary remediation that are consistent with the costs
certified under subsection (c)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.31; P.L.208-2005, SEC.6; P.L.235-2005, SEC.100.
IC 6-3.1-23-13 Credit to be claimed on tax return; submissions to department of
state revenue
Sec. 13. (a) To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return or
returns in the manner prescribed by the department of state revenue.
(b) The taxpayer shall submit the following to the department of
state revenue:
(1) The certification of the qualified investment by the
department of environmental management and the Indiana
finance authority under section 12(c) of this chapter.
(2) Either:
(A) an official copy of the certification referred to in section
12(d)(2)(A) of this chapter; or
(B) the certification issued by the department of
environmental management in response to a request under
section 12(d)(2)(B) of this chapter.
(3) Proof of payment of the certified qualified investment.
(4) The certification received by the taxpayer under section 5(c)
of this chapter.
(5) Information that the department determines is necessary for
the calculation of the credit provided by this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.32; P.L.208-2005, SEC.7; P.L.235-2005, SEC.101.
IC 6-3.1-23-14 Pass through entities entitled to credit
Sec. 14. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the tax
credit may be applied, a shareholder, a partner, or a 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.
(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 otherwise entitled under this chapter. However, a pass
through entity and a shareholder, partner, or member of the pass
through entity may not claim more than one (1) credit for the same
qualified expenditure. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-15 Maximum amount of credit; source of funding for credit
Sec. 15. (a) The amount of tax credits allowed under this chapter
may not exceed two million dollars ($2,000,000) in a state fiscal year
unless the Indiana finance authority determines under subsection (e)
that money is available for additional tax credits in a particular state
fiscal year. However, if the maximum amount of tax credits allowed
under this subsection exceeds the amount available in the subaccount
of the environmental remediation revolving loan fund (IC 13-19-5),
the maximum amount of tax credits allowed under this subsection is
reduced to the amount available.
(b) The department shall record the time of filing of each return
claiming a credit under section 13 of this chapter and shall, except as
provided in subsection (c), grant the credit to the taxpayer, if the
taxpayer otherwise qualifies for a tax credit under this chapter, in the
chronological order in which the return is filed in the state fiscal
year.
(c) If the total credits approved under this section equal the
maximum amount allowable in a state fiscal year, a return claiming
the credit filed later in that same fiscal year may not be approved.
However, if an applicant for whom a credit has been approved fails
to file the information required by section 13 of this chapter, an
amount equal to the credit previously allowed or set aside for the
applicant may be allowed to the next eligible applicant or applicants
until the total amount has been allowed. In addition, the department
may, if the applicant so requests, approve a credit application, in
whole or in part, with respect to the next succeeding state fiscal year.
(d) The department of state revenue shall report the total credits
granted under this chapter for each state fiscal year to the Indiana
finance authority. The Indiana finance authority shall transfer to the
state general fund an amount equal to the total credits granted from
the subaccount of the environmental remediation revolving loan fund
(IC 13-19-5).
(e) At the end of each state fiscal year, the Indiana finance
authority may determine whether money is available in the
environmental remediation revolving loan fund (IC 13-19-5) to
provide tax credits in excess of the amount set forth in subsection (a)
in the subsequent state fiscal year.
(f) Before June 30 of each year, the Indiana finance authority may
assess the demand for tax credits under this chapter and determine
whether the need for other brownfield activities is greater than the
need for tax credits. If the Indiana finance authority determines that
the need for other brownfield activities is greater than the need for
tax credits, the authority may set aside up to three-fourths (3/4) of the
amount of allowable tax credits for the subsequent state fiscal year
and use it for other brownfield projects.
(g) Except as provided in subsection (h), the Indiana finance
authority may use money set aside under subsection (f) for any
permissible purpose.
(h) Money specifically appropriated for tax credits may not be set
aside for another use. As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.8; P.L.235-2005, SEC.102.
IC 6-3.1-23-16 Expiration of credit; carryover after expiration date
Sec. 16. A tax credit may not be allowed under this chapter for a
taxable year that begins after December 31, 2007. However, this
section does not affect the ability of a taxpayer to carry forward the
excess of a tax credit claimed for a taxable year that begins before
January 1, 2008, under section 11 of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.33; P.L.208-2005, SEC.9.
IC 6-3.1-23-17 Guidelines
Sec. 17. The Indiana finance authority, after consulting with the
department of environmental management and the budget agency and
without complying with IC 4-22-2, may adopt guidelines to govern
the administration of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.235-2005,
SEC.103.
IC 6-3.1-23
Chapter 23. Voluntary Remediation Tax Credit
IC 6-3.1-23-1 "Brownfield" defined
Sec. 1. As used in this chapter, "brownfield" has the meaning set
forth in IC 13-11-2-19.3. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-1.5 "Legislative body"
Sec. 1.5. As used in this chapter, "legislative body" refers to:
(1) the legislative body of a municipality (as defined in
IC 36-1-2-11) in which is located property on which
remediation referred to in section 3(1) of this chapter occurs; or
(2) if the property referred to in subdivision (1) is not located in
a municipality, the legislative body of the county in which the
property is located. As added by P.L.245-2003, SEC.26.
IC 6-3.1-23-2 "Pass through entity" defined
Sec. 2. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross 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.109-2001, SEC.1.
IC 6-3.1-23-3 "Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means costs
that:
(1) result from work performed in Indiana to conduct a
voluntary remediation, whether or not under IC 13-25-5, that
involves the remediation of a brownfield;
(2) are not recovered by a taxpayer from another person after
the taxpayer has made a good faith effort to recover the costs;
(3) are not paid from state financial assistance;
(4) result in taxable income to any other Indiana taxpayer; and
(5) are approved by the department of environmental
management and the Indiana finance authority under section 12
of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.27; P.L.235-2005, SEC.98.
IC 6-3.1-23-3.5 "State financial assistance" defined
Sec. 3.5. As used in this chapter, "state financial assistance"
means money received by a taxpayer:
(1) as a direct loan:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program; or
(2) as a grant:
(A) under a state program; or
(B) of:
(i) loan proceeds; or
(ii) grant proceeds;
received by a political subdivision under a state program. As added by P.L.245-2003, SEC.28.
IC 6-3.1-23-4 "State tax liability" defined
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability for a listed tax (as defined in
IC 6-8.1-1-1), 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.109-2001, SEC.1. Amended by P.L.192-2002(ss),
SEC.118; P.L.208-2005, SEC.3.
IC 6-3.1-23-5 Taxpayer credit; eligibility; department determination; Indiana
finance authority
Sec. 5. (a) A taxpayer is entitled to a credit equal to the amount
determined under section 6 of this chapter against the taxpayer's state
tax liability for a taxable year if the following requirements are
satisfied:
(1) The taxpayer does the following:
(A) Makes a qualified investment in that taxable year.
(B) Submits the following to the Indiana finance authority:
(i) A description of the taxpayer's proposed redevelopment
of the property.
(ii) The sources and amounts of money to be used for the
remediation and proposed redevelopment of the property.
(iii) An estimate of the value of the remediation and
proposed redevelopment.
(iv) A description documenting any good faith attempts to
recover the costs of the environmental damages from
liable parties.
(v) Proof of appropriate zoning for the intended reuse.
(vi) A letter supporting the proposed project and
redevelopment from the legislative body.
(vii) The documentation described in subsection (b).
(2) The department determines under section 15 of this chapter
that the taxpayer's return claiming the credit is filed with the
department before the maximum amount of credits allowed
under this chapter is met.
(b) The documentation referred to in subsection (a)(1)(B)(vii)
consists of information reflecting that the taxpayer:
(1) has never had an ownership interest in an entity that caused
or contributed to; and
(2) has not caused or contributed to;
the release or threatened release of a hazardous substance, a
contaminant, petroleum, or a petroleum product that is the subject of
the remediation.
(c) The Indiana finance authority shall:
(1) determine whether the taxpayer meets the requirements of
subsection (a)(1); and
(2) if the taxpayer meets the requirements of subsection (a)(1),
certify to the taxpayer that the taxpayer is eligible for the credit
allowed under this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.29; P.L.208-2005, SEC.4; P.L.235-2005, SEC.99.
IC 6-3.1-23-6 Amount of credit
Sec. 6. The amount of the credit allowed under this chapter with
respect to each brownfield site is equal to the lesser of:
(1) two hundred thousand dollars ($200,000); or
(2) the sum of:
(A) one hundred percent (100%) multiplied by the first one
hundred thousand dollars ($100,000) of qualified investment
made by the taxpayer during the taxable year; plus
(B) fifty percent (50%) multiplied by the amount of the
qualified investment made by the taxpayer during the taxable
year that exceeds one hundred thousand dollars ($100,000). As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.5.
IC 6-3.1-23-7
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-8
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-9
Repealed
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-10
(Repealed by P.L.245-2003, SEC.35.)
IC 6-3.1-23-11 Credit carryover and carryback
Sec. 11. (a) If the amount determined under section 6 of this
chapter in a taxable year exceeds the taxpayer's state tax liability for
that taxable year, the taxpayer may carry the excess:
(1) over for not more than the immediately following five (5)
taxable years; or
(2) back to the immediately preceding taxable year.
(b) The amount of excess available to be used for carryover under
subsection (a)(1) is reduced to the extent it is used for:
(1) a carryover under subsection (a)(1); or
(2) a carryback under subsection (a)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.30.
IC 6-3.1-23-12 Certification of qualified investment action; action required by
taxpayer
Sec. 12. (a) To be entitled to a credit under this chapter, a
taxpayer must request the department of environmental management
and the Indiana finance authority to determine if costs incurred in a
voluntary remediation involving a brownfield are qualified
investments.
(b) The request under subsection (a) must be made before the
costs are incurred.
(c) Upon receipt of a request under subsection (a), the department
of environmental management and the Indiana finance authority
shall:
(1) examine the costs; and
(2) certify any costs that the department and the authority
determine to be a qualified investment.
(d) Upon completion of a voluntary remediation for which costs
have been certified as a qualified investment under subsection (c),
the taxpayer:
(1) shall notify the department of environmental management;
and
(2) shall request from the department of environmental
management:
(A) with respect to voluntary remediation conducted under
IC 13-25-5, the certificate of completion issued by the
commissioner under IC 13-25-5-16 for the voluntary
remediation work plan under which the costs certified under
subsection (c)(2) were incurred; or
(B) with respect to voluntary remediation not conducted
under IC 13-25-5, a certification of the costs incurred for the
voluntary remediation that are consistent with the costs
certified under subsection (c)(2). As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.31; P.L.208-2005, SEC.6; P.L.235-2005, SEC.100.
IC 6-3.1-23-13 Credit to be claimed on tax return; submissions to department of
state revenue
Sec. 13. (a) To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return or
returns in the manner prescribed by the department of state revenue.
(b) The taxpayer shall submit the following to the department of
state revenue:
(1) The certification of the qualified investment by the
department of environmental management and the Indiana
finance authority under section 12(c) of this chapter.
(2) Either:
(A) an official copy of the certification referred to in section
12(d)(2)(A) of this chapter; or
(B) the certification issued by the department of
environmental management in response to a request under
section 12(d)(2)(B) of this chapter.
(3) Proof of payment of the certified qualified investment.
(4) The certification received by the taxpayer under section 5(c)
of this chapter.
(5) Information that the department determines is necessary for
the calculation of the credit provided by this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.32; P.L.208-2005, SEC.7; P.L.235-2005, SEC.101.
IC 6-3.1-23-14 Pass through entities entitled to credit
Sec. 14. (a) If a pass through entity is entitled to a credit under
this chapter but does not have state tax liability against which the tax
credit may be applied, a shareholder, a partner, or a 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.
(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 otherwise entitled under this chapter. However, a pass
through entity and a shareholder, partner, or member of the pass
through entity may not claim more than one (1) credit for the same
qualified expenditure. As added by P.L.109-2001, SEC.1.
IC 6-3.1-23-15 Maximum amount of credit; source of funding for credit
Sec. 15. (a) The amount of tax credits allowed under this chapter
may not exceed two million dollars ($2,000,000) in a state fiscal year
unless the Indiana finance authority determines under subsection (e)
that money is available for additional tax credits in a particular state
fiscal year. However, if the maximum amount of tax credits allowed
under this subsection exceeds the amount available in the subaccount
of the environmental remediation revolving loan fund (IC 13-19-5),
the maximum amount of tax credits allowed under this subsection is
reduced to the amount available.
(b) The department shall record the time of filing of each return
claiming a credit under section 13 of this chapter and shall, except as
provided in subsection (c), grant the credit to the taxpayer, if the
taxpayer otherwise qualifies for a tax credit under this chapter, in the
chronological order in which the return is filed in the state fiscal
year.
(c) If the total credits approved under this section equal the
maximum amount allowable in a state fiscal year, a return claiming
the credit filed later in that same fiscal year may not be approved.
However, if an applicant for whom a credit has been approved fails
to file the information required by section 13 of this chapter, an
amount equal to the credit previously allowed or set aside for the
applicant may be allowed to the next eligible applicant or applicants
until the total amount has been allowed. In addition, the department
may, if the applicant so requests, approve a credit application, in
whole or in part, with respect to the next succeeding state fiscal year.
(d) The department of state revenue shall report the total credits
granted under this chapter for each state fiscal year to the Indiana
finance authority. The Indiana finance authority shall transfer to the
state general fund an amount equal to the total credits granted from
the subaccount of the environmental remediation revolving loan fund
(IC 13-19-5).
(e) At the end of each state fiscal year, the Indiana finance
authority may determine whether money is available in the
environmental remediation revolving loan fund (IC 13-19-5) to
provide tax credits in excess of the amount set forth in subsection (a)
in the subsequent state fiscal year.
(f) Before June 30 of each year, the Indiana finance authority may
assess the demand for tax credits under this chapter and determine
whether the need for other brownfield activities is greater than the
need for tax credits. If the Indiana finance authority determines that
the need for other brownfield activities is greater than the need for
tax credits, the authority may set aside up to three-fourths (3/4) of the
amount of allowable tax credits for the subsequent state fiscal year
and use it for other brownfield projects.
(g) Except as provided in subsection (h), the Indiana finance
authority may use money set aside under subsection (f) for any
permissible purpose.
(h) Money specifically appropriated for tax credits may not be set
aside for another use. As added by P.L.109-2001, SEC.1. Amended by P.L.208-2005,
SEC.8; P.L.235-2005, SEC.102.
IC 6-3.1-23-16 Expiration of credit; carryover after expiration date
Sec. 16. A tax credit may not be allowed under this chapter for a
taxable year that begins after December 31, 2007. However, this
section does not affect the ability of a taxpayer to carry forward the
excess of a tax credit claimed for a taxable year that begins before
January 1, 2008, under section 11 of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.245-2003,
SEC.33; P.L.208-2005, SEC.9.
IC 6-3.1-23-17 Guidelines
Sec. 17. The Indiana finance authority, after consulting with the
department of environmental management and the budget agency and
without complying with IC 4-22-2, may adopt guidelines to govern
the administration of this chapter. As added by P.L.109-2001, SEC.1. Amended by P.L.235-2005,
SEC.103.
