Introduced Version
HOUSE BILL No. 1441
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-16.
Synopsis: Assignability of historic preservation tax credit. Provides
that the historic rehabilitation income tax credit may be assigned.
Provides that the credit may be recaptured from the person who
receives the certification or from an assignee to whom the property is
transferred. Repeals and replaces the current definition of "taxpayer"
for purposes of the historic rehabilitation credit. Provides that the
transfer of the property as a condominium does not cause the credit to
be recaptured. (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: Upon passage; July 1, 2011.
Dvorak
January 18, 2011, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 117th General Assembly (2011)
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HOUSE BILL No. 1441
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-16-2.8; (11)IN1441.1.1. -->
SECTION 1. IC 6-3.1-16-2.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 2.8. As used in this chapter,
"person" means:
(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.
SOURCE: IC 6-3.1-16-6.2; (11)IN1441.1.2. -->
SECTION 2. IC 6-3.1-16-6.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 6.2. As used in this chapter,
"taxpayer" means:
(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.
SOURCE: IC 6-3.1-16-8; (11)IN1441.1.3. -->
SECTION 3. IC 6-3.1-16-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. A
taxpayer person
qualifies for a credit under section 7 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 7(c) of this chapter, owned
by the
taxpayer. person.
(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 person 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 the rental or other use in the ordinary course of the
taxpayer's person's trade or business.
(7) The qualified expenditures for preservation or rehabilitation
of the historic property exceed ten thousand dollars ($10,000).
SOURCE: IC 6-3.1-16-9; (11)IN1441.1.4. -->
SECTION 4. IC 6-3.1-16-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) The division shall
provide the certifications referred to in section 8(3) and 8(4) of this
chapter if a taxpayer's person's proposed preservation or rehabilitation
plan complies with the standards of the division and the taxpayer's
person's preservation or rehabilitation work complies with the plan.
(b) The taxpayer person may appeal a decision by the division
under this chapter to the review board.
SOURCE: IC 6-3.1-16-11; (11)IN1441.1.5. -->
SECTION 5. IC 6-3.1-16-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) This section
does not apply to a person if the person is entitled to a credit under
Section 42 of the Internal Revenue Code.
(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.
SOURCE: IC 6-3.1-16-12; (11)IN1441.1.6. -->
SECTION 6. IC 6-3.1-16-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) A credit claimed
under this chapter shall be recaptured from the taxpayer person who
receives the certifications referred to in section 8(3) and 8(4) of this
chapter or, if applicable, from an assignee to which the property is
transferred, if:
(1) the property is transferred, other than:
(A) to an assignee; or
(B) as a condominium (as defined in IC 32-25-2-7);
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 person who receives the certifications under section
8 of this chapter or, if applicable, an assignee to which the property
is transferred, for the taxable year during which the credit is
recaptured.
SOURCE: IC 6-3.1-16-13.5; (11)IN1441.1.7. -->
SECTION 7. IC 6-3.1-16-13.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]:
Sec. 13.5. (a) The holder of a credit
may assign any part of the credit to which the holder is entitled
under this chapter to another person if the holder complies with
this section.
(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.
SOURCE: IC 6-3.1-16-13.7; (11)IN1441.1.8. -->
SECTION 8. IC 6-3.1-16-13.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 13.7. The holder of a credit that
is assigned in conformity with this chapter is entitled to a credit
against the holder's state tax liability to the same extent as if the
holder were the person to which the credit was awarded.
SOURCE: IC 6-3.1-16-6.1; (11)IN1441.1.9. -->
SECTION 9. IC 6-3.1-16-6.1 IS REPEALED [EFFECTIVE JULY
1, 2011].
SOURCE: ; (11)IN1441.1.10. -->
SECTION 10. [EFFECTIVE UPON PASSAGE] (a) The
department of state revenue or the department of natural
resources may adopt temporary rules in the manner provided for
the adoption of emergency rules under IC 4-22-2-37.1 to implement
this act. A temporary rule adopted under this SECTION expires on
the earliest of the following:
(1) The date the department of state revenue or the
department of natural resources adopts another temporary
rule under this SECTION that repeals, amends, or supersedes
the previously adopted temporary rule.
(2) The date the department of state revenue or the
department of natural resources adopts a permanent rule
under IC 4-22-2 that repeals, amends, or supersedes the
previously adopted temporary rule.
(3) The date specified in the temporary rule.
(4) December 31, 2012.
(b) This SECTION expires December 31, 2013.
SOURCE: ; (11)IN1441.1.11. -->
SECTION 11.
An emergency is declared for this act.