Bill Text: IN HB1275 | 2012 | Regular Session | Introduced
Bill Title: Historic preservation tax credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1275 Detail]
Download: Indiana-2012-HB1275-Introduced.html
Citations Affected: IC 6-3.1-16.
Synopsis: Historic preservation tax credit. Provides that the historic
rehabilitation income tax credit may be assigned. Specifies when the
transfer of the property does not subject the credit to recapture.
(Current law provides that the credit is recaptured if the property is
transferred within five years of the completion of the rehabilitation or
preservation.) Provides that the adjusted basis of the property is not
reduced by the amount of credit if a person is entitled to a federal low
income housing credit for the historic property.
Effective: July 1, 2012.
January 10, 2012, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) Beginning July 1, 2012, a tax credit awarded under this chapter for any taxable year may be assigned in the manner permitted by section 13.5 of this chapter.
(1) an individual;
(2) a corporation;
(3) an S corporation;
(4) a partnership;
(5) a limited liability company;
(6) a limited liability partnership;
(7) a nonprofit organization; or
(8) a joint venture.
(1) a person that:
(A) is the holder of a credit that is awarded or assigned under this chapter; and
(B) has a state tax liability against which any part of the credit may be applied; or
(2) a shareholder, partner, or member of a pass through entity that:
(A) is the holder of a credit that is awarded or assigned under this chapter; and
(B) does not have any state tax liability against which any part of the credit may be applied.
(b) The
(b) For purposes of IC 6-3, the adjusted basis of:
(1) the structure, if the historic property is a structure; or
(2) the entire property, if the historic property is not a structure;
shall be reduced by the amount of a credit granted under this chapter.
(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) Except as provided in subsection (a) or (c), a credit claimed
under this chapter shall be recaptured from the taxpayer to whom
the tax credit was assigned under section 13.5 of this chapter if:
(1) the taxpayer transfers the property 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.
(c) A historic property subject to a tax credit awarded or
assigned under this chapter may be transferred without subjecting
the tax credit to recapture under subsection (a) or (b) if the historic
property is transferred:
(1) to an assignee who will own and use the property as
required by section 8(6) of this chapter; or
(2) as a condominium (as defined by IC 32-25-2-7).
(b) (d) 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.
(b) The assignor must provide the assignee with a copy of the certifications by the division required under sections 8 and 9 of this chapter.
(c) The assignor must provide written notification of the assignment to the:
(1) division; and
(2) department;
not later than thirty (30) days after the assignment.
(d) The notification provided under subsection (c) must contain:
(1) the name of the assignor;
(2) the name of the assignee;
(3) the date of assignment;
(4) the terms of the assignment; and
(5) any information requested by the division or the department.
(e) The assignor may assign a credit under this chapter to an assignee other than a holder of a credit under Section 47 of the Internal Revenue Code for the same property.
(f) If any part of a credit is assigned under this section, the assignor and the assignee shall report the assignment on their state tax returns for the year in which the assignment is made, in the manner prescribed by the department.
