Ind. Code § 6-3.1-17.1-1 Applicability of chapter
Sec. 1. This chapter applies to taxable years beginning after December 31, 2023.
As added by P.L.236-2023, SEC.67.
Ind. Code ch. 6-3.1-17.1
Ind. Code ch. 6-3.1-17.1
in effectInd. Code § 6-3.1-17.1-2 "Pass through entity"
Sec. 2. 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.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-3 "Qualified historic structure"
Sec. 3. As used in this chapter, "qualified historic structure" means any building that is:
(1) a certified historic structure (as defined in Section 47(c)(3) of the Internal Revenue Code);
(2) individually listed on the register of Indiana historic sites and historic structures; or
(3) located in, and contributes to, a district listed in the register of Indiana historic sites and historic structures.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-4 "Qualified rehabilitation expenditure"
Sec. 4. As used in this chapter, "qualified rehabilitation expenditure" means the costs and expenses incurred by a qualified taxpayer in the restoration and preservation of a qualified historic structure that are defined as a qualified rehabilitation expenditure in Section 47(c)(2) of the Internal Revenue Code.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-5 "Qualified taxpayer"
Sec. 5. As used in this chapter, "qualified taxpayer" means the owner of a qualified historic structure or any other person who may qualify for the federal rehabilitation tax credit allowable under Section 47 of the Internal Revenue Code.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-6 "State tax liability"
Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-7 Amount of credit; computation
Sec. 7. (a) Subject to IC 5-28-6-9, the Indiana economic development corporation may award a credit to a qualified taxpayer against the qualified taxpayer's state tax liability in the taxable year in which the qualified taxpayer completes restoration and preservation of a qualified historic structure if the total amount of qualified rehabilitation expenditures incurred by the qualified taxpayer equals five thousand dollars ($5,000) or more.
(b) The amount of the credit is equal to:
(1) twenty-five percent (25%) of the qualified rehabilitation expenditures that the qualified taxpayer makes for the restoration and preservation of a qualified historic structure; or
(2) thirty percent (30%) of the qualified rehabilitation expenditures that the qualified taxpayer makes for the restoration and preservation of a qualified historic structure that is:
(A) owned by a taxpayer that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; or
(B) not income producing.
(c) If the Indiana economic development corporation awards credits under this chapter, the department of state revenue and the office of community and rural affairs shall administer the allowance of the credits.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-8 Pass through entity; shareholder; partner; or member
Sec. 8. (a) If a pass through entity is awarded a credit under section 7 of this chapter but does not have state tax liability against which the credit may be applied, a shareholder, partner, or member of the pass through entity may receive a credit equal to:
(1) the credit determined for the pass through entity for the taxable 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 a shareholder, partner, or member of a pass through entity is otherwise awarded 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.
(c) A pass through entity (other than a pass through entity described in section 2(1) of this chapter) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. The pass through entity shall provide to the department a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-9 Claiming of credit on annual state tax return
Sec. 9. To obtain a credit under this chapter, a qualified taxpayer must claim the credit on the qualified taxpayer's annual state tax return or returns in the manner prescribed by the department. The qualified taxpayer shall submit to the department all information that the department determines is necessary for the allowance and calculation of the credit provided by this chapter.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-10 Carryover of unused credit amount
Sec. 10. (a) If the credit provided by this chapter exceeds a qualified taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the qualified taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for ten (10) taxable years following the unused credit year.
(b) A qualified taxpayer is not entitled to any carryback or refund of any unused credit.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-11 Credit assignment
Sec. 11. (a) A qualified taxpayer may assign any part of the credit that the qualified taxpayer may claim under this chapter. A credit that is assigned under this section remains subject to this chapter. If a qualified taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another qualified taxpayer. A qualified taxpayer may make only one (1) assignment of a credit.
(b) An assignment of a credit must be in writing, and both the qualified taxpayer and assignee shall report the assignment on the qualified taxpayer's and the assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A qualified taxpayer may not receive value in connection with an assignment under this section that exceeds the value of the part of the credit assigned.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-12 Annual aggregate credit limit
Sec. 12. For each state fiscal year beginning after June 30, 2023, and ending before July 1, 2030, the aggregate amount of state tax credits allowed under this chapter may not exceed ten million dollars ($10,000,000).
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-13 Credit included in calculation of aggregate tax credits that may be certified by the Indiana economic development corporation
Sec. 13. Any credit awarded under this chapter must be included in the calculation of the aggregate amount of applicable tax credits that the Indiana economic development corporation may certify for a state fiscal year under IC 5-28-6-9.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-14 Adoption of rules
Sec. 14. The department or the office of community and rural affairs may adopt rules under IC 4-22-2 governing this chapter.
As added by P.L.236-2023, SEC.67.
Ind. Code § 6-3.1-17.1-15 Expiration of chapter
Sec. 15. This chapter expires January 1, 2030.
As added by P.L.236-2023, SEC.67.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026