Bill Text: IN HB1547 | 2011 | Regular Session | Introduced
Bill Title: Historic preservation tax credit.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-01-20 - First reading: referred to Committee on Ways and Means [HB1547 Detail]
Download: Indiana-2011-HB1547-Introduced.html
Citations Affected: IC 6-3.1-16; IC 14-8-2-107; IC 14-21-1.
Effective: July 1, 2011; January 1, 2012.
January 20, 2011, read first time and referred to Committee on Ways and Means.
Digest Continued
archeology of the department of natural resources to reserve 20% of the
available credit for projects for which the qualified expenditures
approved by the division do not exceed $250,000. Provides that the
division may collect a fee which equals 2.5% of qualified expenses for
projects with over $2,000,000 in qualified expenses. Provides the fee
is used to pay for administrative costs associated with certifying
historic property for the tax credit. Establishes the historic
rehabilitation credit fund. Provides that the fee collected by the division
of historic preservation and archeology shall be deposited into the fund.
Provides that money in the fund in excess of $10,000,000 reverts to the
state general fund at the end of a fiscal year. Authorizes the adoption
of emergency rules.
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) 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 credit applies to qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of historic property; and
(2) are approved by the division.
(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 are 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 who 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, a
hospital, or subject to a grant received under the 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 who 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 is not described
by either subdivision (1) or (2), the amount of the credit is
equal to twenty percent (20%) 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 who 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.
(1) The historic property is:
(A) located in Indiana;
(B) at least fifty (50) years old; and
(C) except as provided in section
(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
(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
(7) The qualified expenditures for preservation or rehabilitation of the historic property exceed
(8) The division certifies that a fee required under IC 14-21-1-37 has been paid.
(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, 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
(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.
(2) Two million dollars ($2,000,000) in the state fiscal year beginning July 1, 2012.
(3) Four million dollars ($4,000,000) in the state fiscal year beginning July 1, 2013.
(4) Six million dollars ($6,000,000) in the state fiscal year beginning July 1, 2014.
(5) Eight million dollars ($8,000,000) in the state fiscal year beginning July 1, 2015.
(6) Ten million dollars ($10,000,000) for 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 division shall reserve twenty percent (20%) of the total amount of available tax credits in each state fiscal year for those projects for which the qualified expenditures approved by the division do not exceed two hundred fifty thousand dollars ($250,000). 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 division may allow the excess amount to be claimed by any taxpayer otherwise entitled to a tax credit under this chapter.
(1) The department of state revenue.
(2) The division.
(1) For purposes of IC 14-9-5, the meaning set forth in IC 14-9-5-1.
(2) For purposes of IC 14-9-8-21, the meaning set forth in IC 14-9-8-21.
(3) For purposes of IC 14-9-8-21.5, the meaning set forth in IC 14-9-8-21.5.
(4) For purposes of IC 14-9-9, the meaning set forth in IC 14-9-9-3.
(5) For purposes of IC 14-12-1, the meaning set forth in IC 14-12-1-1.
(6) For purposes of IC 14-12-2, the meaning set forth in IC 14-12-2-2.
(7) For purposes of IC 14-12-3, the meaning set forth in IC 14-12-3-2.
(8) For purposes of IC 14-13-1, the meaning set forth in IC 14-13-1-2.
(9) For purposes of IC 14-13-2, the meaning set forth in IC 14-13-2-3.
(10) For purposes of IC 14-16-1, the meaning set forth in IC 14-16-1-30.
(11) For purposes of IC 14-19-8, the meaning set forth in IC 14-19-8-1.
(12) For purposes of IC 14-20-1, the meaning set forth in IC 14-20-1-3.
(13) For purposes of IC 14-20-11, the meaning set forth in IC 14-20-11-2.
(14) For purposes of IC 14-21-1-37, the meaning set forth in IC 14-21-1-37(a).
(b) When adopting rules under this chapter the commission shall consider the following:
(1) The rights and interests of landowners.
(2) The sensitivity of human beings for treating human remains with respect and dignity.
(3) The value of history and archeology as a guide to human activity.
(4) The importance of amateur archeologists in making historical, cultural, and archeological discoveries.
(5) Applicable laws, standards, and guidelines for the conduct of archeology and codes of ethics for participation in archeology.
(b) As used in this section, "person" has the meaning set forth in IC 6-3.1-16-2.8.
(c) As used in this section, "qualified expenditures" has the meaning set forth in IC 6-3.1-16-4.
(d) The historic rehabilitation credit fund is established to fund administrative costs associated with making certifications under IC 6-3.1-16-8.
(e) The fund consists of the following:
(1) Fees collected under this section.
(2) Appropriations by the general assembly.
(3) Money transferred to the fund from other funds.
(4) Money from any other source deposited in the fund.
(f) The director shall manage the fund. The fund shall be used for administrative costs:
(1) of the fund; and
(2) associated with making certifications under IC 6-3.1-16-8.
(g) Money in the fund at the end of a state fiscal year does not revert to the state general fund or any other fund. However, if the amount of money in the fund at the end of a particular fiscal year exceeds ten million dollars ($10,000,000), the treasurer of state shall transfer the excess from the fund into the state general fund.
(h) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public trust funds are invested. Interest that accrues from these investments shall be deposited in the fund.
(i) After December 31, 2011, the division shall charge a person a fee to provide certifications under IC 6-3.1-16-8 if the qualified expenditures to preserve or rehabilitate a historic property exceed two million dollars ($2,000,000). The amount of the fee is two and five-tenths percent (2.5%) of the amount of qualified expenditures.
(j) A calculation made under IC 6-3.1-16-7(c)(1)(B), IC 6-3.1-16-7(c)(2)(B), or IC 6-3.1-16-7(c)(3)(B) does not apply to the calculation of a fee under this section.
(b) This SECTION expires January 1, 2014.