Bill Text: IN HB1318 | 2013 | Regular Session | Introduced
Bill Title: Tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-17 - First reading: referred to Committee on Ways and Means [HB1318 Detail]
Download: Indiana-2013-HB1318-Introduced.html
Citations Affected: IC 4-4-9.7-6; IC 6-3.1-16.
Synopsis: Tax credits. Transfers administration of the historic
rehabilitation tax credit from the division of historic preservation and
archeology of the department of natural resources to the office of
community and rural affairs (office). Provides that the credit applies to
the preservation or rehabilitation of historic properties that have been
vacant for at least one year. Establishes four new methodologies for
determining the amount of the tax credit. Provides that a property's
adjusted basis is not reduced by the amount of the credit if a person is
entitled to a federal low income housing tax credit. Changes numerous
spending floors and caps relating to the tax credit. Phases in increases
to the annual statewide cap on the tax credit until the cap is
$10,000,000. Specifies that the office may adopt emergency rules.
Voids a rule providing that the maximum amount of tax credits for a
particular project is $100,000. Prohibits the office from reallocating
available tax credits from year to year.
Effective: July 1, 2013.
January 15, 2013, 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.
(1) Administer the rural economic development fund under section 9 of this chapter.
(2) Administer the Indiana main street program under IC 4-4-16.
(3) Administer the community development block grant program.
(4) Make certifications required under IC 6-3.1-16 with respect to the historic rehabilitation tax credit.
(b) A tax credit awarded under this chapter for a taxable year ending before January 1, 2013, is subject to:
(1) this chapter (as in effect on January 1, 2013);
(2) the rules of the natural resources commission (as in effect on January 1, 2013); and
(3) any terms and conditions imposed upon the tax credit by the department of state revenue or the department of natural resources, including a requirement that the tax credit must be claimed in a taxable year beginning after December 31, 2013.
(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.
corporation, a partnership, a limited liability company, a limited
liability partnership, a nonprofit organization, or a joint venture.
(1) a person that:
(A) is the holder of a credit that is awarded 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 under this
chapter; and
(B) does not have any state tax liability against which any
part of the credit may be applied.
(1) as a residence; or
(2) in a trade or business for a purpose other than storage or warehousing.
(b) The credit applies to qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of historic property; and
(2) are approved by the office.
(c) The amount of the credit must be determined under one (1)
of the following methods:
(1) If the total amount of the taxpayer's qualified expenditures
is less than two million dollars ($2,000,000), the amount of the
credit is equal to forty percent (40%) of either of the following
amounts:
(A) The total amount of the qualified expenditures made
by the taxpayer.
(B) The product of:
(i) the total amount of the qualified expenditures made
by the taxpayer; multiplied by
(ii) one and three-tenths (1.3);
in the case of a person that applies for a credit for the
preservation or rehabilitation of historic property located
in a difficult development area or a qualified census tract.
(2) If the property preserved or rehabilitated is a school, is a
hospital, or is subject to a grant received under the Indiana
main street program established under IC 4-4-16-1, the
amount of the credit is equal to forty percent (40%) of either
of the following amounts:
(A) The total amount of the qualified expenditures made
by the taxpayer.
(B) The product of:
(i) the total amount of the qualified expenditures made
by the taxpayer; multiplied by
(ii) one and three-tenths (1.3);
in the case of a person that applies for a credit for the
preservation or rehabilitation of historic property located
in a difficult development area or a qualified census tract.
(3) If the property preserved or rehabilitated obtains a
qualifying score under section 7.7 of this chapter, the amount
of the credit is equal to forty percent (40%) of either of the
following amounts:
(A) The total amount of the qualified expenditures made
by the taxpayer.
(B) The product of:
(i) the total amount of the qualified expenditures made
by the taxpayer; multiplied by
(ii) one and three-tenths (1.3);
in the case of a person that applies for a credit for the
preservation or rehabilitation of historic property located
in a difficult development area or a qualified census tract.
(4) If the property preserved or rehabilitated is not described
by subdivisions (1) through (3), the amount of the credit is
equal to twenty percent (20%) of the appropriate amount as
follows:
(A) The total amount of the qualified expenditures made
by the taxpayer.
(B) The product of:
(i) the total amount of the qualified expenditures made
by the taxpayer; multiplied by
(ii) one and three-tenths (1.3);
in the case of a person that applies for a credit for the
preservation or rehabilitation of historic property located
in a difficult development area or a qualified census tract.
(c) (d) 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.
(b) A project scoring at least fifty (50) points in a system developed under this section is entitled to receive the enhanced credit under section 7(c)(3) of this chapter.
(c) The system must contain the following components:
(1) A score that is equal to the quotient of:
(A) the rurality index rank of the county in which the preservation or rehabilitation project is located; divided by
(B) two (2).
(2) A score that is equal to the quotient of:
(A) the median household income rank of the county in which the preservation or rehabilitation project is located as determined by the United States Census Bureau; divided by
(B) four (4).
However, the score determined under this subdivision is zero (0) if the county's median household income is equal to or greater than the Indiana median household income.
(3) A score for the quality of the building being preserved or rehabilitated by the taxpayer as follows:
(A) Fifteen (15) points for a building rated outstanding in the most recent interim report published by the division for the county in which the property is located.
(B) Ten (10) points for a building rated notable in the most recent interim report published by the division for the county in which the property is located.
(C) Zero (0) points for a building that is neither outstanding nor notable.
(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
(3) The
(4) The
(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
(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) A historic property subject to a tax credit awarded under
this chapter may be transferred without subjecting the tax credit
to recapture under subsection (a) if the historic property is
transferred as a condominium (as defined by IC 32-25-2-7).
(b) (c) 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.
(2) Two million five hundred thousand dollars ($2,500,000) in the state fiscal year beginning July 1, 2013.
(3) Five million dollars ($5,000,000) in the state fiscal year beginning July 1, 2014.
(4) Seven million five hundred thousand dollars ($7,500,000) in the state fiscal year beginning July 1, 2015.
(5) Ten million dollars ($10,000,000) in a state fiscal year beginning after June 30, 2016.
(b) The amount of the tax credit allowed 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 allowed to all taxpayers in that state fiscal year; multiplied by
(2) twenty percent (20%).
(c) The office 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 office do not exceed five hundred thousand dollars ($500,000). If the amount reserved under this subsection exceeds the amount of tax credits actually allowed to taxpayers that are eligible to receive tax credits from the reserved amount, the office may allow the
excess amount to be claimed by any taxpayer otherwise entitled to
a tax credit under this chapter.
(d) The office may not increase the amount of tax credits
allowed under subsection (a) in a particular state fiscal year by
reducing the amount specified by subsection (a) for any other state
fiscal year.
(1) The department of state revenue.
(2) The
(b) The publisher of the Indiana Administrative Code and Indiana Register shall remove 312 IAC 23-3-4(b) from the Indiana Administrative Code.
