Bill Text: IN HB1111 | 2012 | Regular Session | Engrossed
Bill Title: Historic preservation tax credits.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Enrolled - Dead) 2012-03-05 - Senate advisors appointed: Kenley, Randolph, Mishler and Charbonneau [HB1111 Detail]
Download: Indiana-2012-HB1111-Engrossed.html
Citations Affected: IC 6-3.1; IC 36-7.
Effective: July 1, 2012.
(SENATE SPONSORS _ MERRITT, MISHLER, BRODEN, CHARBONNEAU, HOLDMAN)
January 9, 2012, read first time and referred to Committee on Ways and Means.
January 26, 2012, amended, reported _ Do Pass.
January 30, 2012, read second time, ordered engrossed. Engrossed.
January 31, 2012, read third time, passed. Yeas 96, nays 0.
February 1, 2012, read first time and referred to Committee on Appropriations.
February 23, 2012, amended, reported favorably _ Do Pass.
Digest Continued
reallocating available tax credits from year to year. Provides that the fiscal body of a county or of a municipality (a designating body) may adopt an ordinance authorizing a credit against a taxpayer's local income tax liability or property tax liability (as specified in the ordinance adopted by the designating body) for the year in which the taxpayer completes the preservation or rehabilitation of certain historic property. Requires the ordinance to specify: (1) whether the credit will apply to a taxpayer's local income tax liability or a taxpayer's property tax liability; (2) the qualified expenditures that are eligible for the credit; (3) the percentage of the credit (not to exceed 20%); (4) any other conditions that must be satisfied before a taxpayer may claim a credit; and (5) the annual limit, if any, on the amount of credits that may be claimed under the ordinance. Provides that an ordinance adopted by a designating body that is a municipal fiscal body may allow a credit only for the preservation or rehabilitation of historic property that is located within the municipality. Provides that an ordinance adopted by a designating body that is a county fiscal body may allow a credit only for the preservation or rehabilitation of historic property that is located within the county and that is not located with a municipality.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) The historic property:
(A) is located in Indiana;
(B) is at least fifty (50) years old;
(C) has been vacant for at least one (1) year as of the date the taxpayer submitted a proposed preservation or rehabilitation plan to the division; and
(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:
(A) actively used in a trade or business;
(B) held for the production of income; or
(C) held for
(7) The qualified expenditures for preservation or rehabilitation of the historic property exceed
(b) The taxpayer may appeal a decision by the division under this chapter to the review board.
beginning July 1, 1997, and the state fiscal year beginning July 1, 1998;
and (2) four hundred fifty thousand dollars ($450,000) in a state fiscal
year. that begins July 1, 1999, or thereafter.
(b) After June 30, 2012, the division may not certify an
additional tax credit under this chapter until each tax credit
certified under this chapter before July 1, 2012, has been claimed
(in whole or in part) by a taxpayer. In addition, after June 30,
2012, the division may not, in any particular state fiscal year,
certify an additional tax credit under this chapter unless the tax
credit may be certified for that particular state fiscal year.
(c) The amount of the tax credit certified by the division under
this chapter for the preservation or rehabilitation of a particular
property in a particular state fiscal year may not exceed the
product of:
(1) the total amount of credits that may be certified by the
division for all taxpayers in that state fiscal year; multiplied
by
(2) twenty percent (20%).
(d) The division shall reserve twenty-five percent (25%) of the
total amount of available tax credits in each state fiscal year for
projects for which the qualified expenditures approved by the
division do not exceed five hundred thousand dollars ($500,000).
(e) The division may not do the following:
(1) Increase the amount of tax credits certified under
subsection (a) in a particular state fiscal year by reducing the
amount specified by subsection (a) for any other state fiscal
year.
(2) Decrease the amount of tax credits certified under
subsection (a) in a particular state fiscal year by reallocating
any part of the amount specified for that particular state
fiscal year to any other state fiscal year.
Chapter 11.6. Local Tax Credits for Preservation or Rehabilitation of Historic Property
Sec. 1. As used in this chapter, "designating body" means the following:
(1) The fiscal body of a county.
(2) The fiscal body of a municipality.
Sec. 2. As used in this chapter, "historic property" means property that:
(1) is located in Indiana;
(2) is at least fifty (50) years old;
(3) has been vacant for at least one (1) year before the taxpayer made the qualified expenditures for preservation or rehabilitation of the property;
(4) is owned by the taxpayer; and
(5) is listed in the register of Indiana historic sites and historic structures.
Sec. 3. As used in this chapter, "local income tax liability" means a taxpayer's total tax liability incurred under IC 6-3.5 in the county in which a credit is granted under this chapter.
Sec. 4. 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.
Sec. 5. As used in this chapter, "preservation" has the meaning set forth in IC 6-3.1-16-3.
Sec. 6. As used in this chapter, "qualified expenditures" has the meaning set forth in IC 6-3.1-16-4.
Sec. 7. As used in this chapter, "rehabilitation" has the meaning set forth in IC 6-3.1-16-5.
Sec. 8. As used in this chapter, "vacant" means, with respect to a historic property, that at least fifty percent (50%) of the usable interior floor space of the historic property is not occupied as a residence or actively used in a trade or business.
Sec. 9. (a) A designating body may adopt an ordinance to authorize a credit under this chapter.
(b) An ordinance adopted under this section to authorize a credit under this chapter must specify the following:
(1) Whether the credit will apply to:
(A) a taxpayer's local income tax liability; or
(B) a taxpayer's property tax liability.
(2) The qualified expenditures that are eligible for the credit.
(3) The percentage of the credit. However, the credit percentage may not exceed twenty percent (20%).
(4) Subject to this chapter, any other conditions that must be satisfied before a taxpayer may claim a credit under this chapter, including any conditions under which the credit may be recaptured.
(5) The annual limit, if any, on the amount of credits that may
be claimed under the ordinance.
Sec. 10. (a) If a designating body authorizes a credit under this
chapter, a taxpayer is entitled to a credit against the taxpayer's
local income tax liability or property tax liability (as specified in
the ordinance adopted by the designating body) for the year in
which the taxpayer completes the preservation or rehabilitation of
the historic property.
(b) The amount of the credit is equal to:
(1) the percentage specified in the ordinance adopted by the
designating body; multiplied by
(2) the amount of the qualified expenditures that:
(A) the taxpayer makes for the preservation or
rehabilitation of historic property; and
(B) are eligible for the credit, as specified in the ordinance
adopted by the designating body.
Sec. 11. (a) An ordinance adopted under section 9 of this chapter
by a designating body that is a municipal fiscal body may allow a
credit under this chapter only for the preservation or
rehabilitation of historic property that is located within the
municipality.
(b) An ordinance adopted under section 9 of this chapter by a
designating body that is a county fiscal body may allow a credit
under this chapter only for the preservation or rehabilitation of
historic property that is located within the county and that is not
located within a municipality.
Sec. 12. (a) If a pass through entity is entitled to a credit under
this chapter but does not have tax liability against which the credit
may be applied, a shareholder, partner, or member of the pass
through entity is entitled to a credit equal to:
(1) the credit determined for the pass through entity for the
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
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.
Sec. 13. If the credit provided by this chapter exceeds a
taxpayer's tax liability for the year for which the credit is first
claimed, the excess may be carried over to succeeding years and
used as a credit against the tax (as specified in the ordinance
adopted by the designating body) otherwise due and payable by the
taxpayer during those years. Each time that the credit is carried
over to a succeeding year, the credit is to be reduced by the amount
that was used as a credit during the immediately preceding year.
Sec. 14. (a) If a taxpayer claims a credit authorized by a
designating body that is a municipal fiscal body, the amount of the
local income tax distributions or property tax distributions (as
appropriate) otherwise to be received by the municipality shall be
reduced by the amount of the credit.
(b) If a taxpayer claims a credit authorized by a designating
body that is a county fiscal body, the amount of the local income
tax distributions or property tax distributions (as appropriate)
otherwise to be received by the county unit shall be reduced by the
amount of the credit.
Sec. 15. The department of state revenue and the department of
local government finance shall adopt any forms that are necessary
for a taxpayer to claim a credit under this chapter.
