Ind. Code ch. 6-3.1-11

Ind. Code ch. 6-3.1-11
in effect

Ind. Code § 6-3.1-11-1 "Applicable percentage"

Sec. 1. As used in this chapter, "applicable percentage" means the percentage determined as follows: (1) If a plant was placed in service at least fifteen (15) years ago but less than thirty (30) years ago, the applicable percentage is fifteen percent (15%). (2) If a plant was placed in service at least thirty (30) years ago but less than forty (40) years ago, the applicable percentage is twenty percent (20%). (3) If a plant was placed in service at least forty (40) years ago, the applicable percentage is twenty-five percent (25%). The time that has expired since a plant was placed in service shall be determined as of the date that an application is filed with the corporation. However, in the case of an industrial recovery site described in section 5(2) of this chapter, the time that has expired since a plant was placed in service shall be determined as of the date on which the demolition of the vacant plant was completed. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.113-2011, SEC.1; P.L.288-2013, SEC.34; P.L.204-2016, SEC.16.

Ind. Code § 6-3.1-11-2 Repealed

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.4-2005, SEC.60. Repealed by P.L.288-2013, SEC.35.

Ind. Code § 6-3.1-11-2.5 "Corporation"

Sec. 2.5. As used in this chapter, "corporation" refers to the Indiana economic development corporation created under IC 5-28-3 unless the context clearly denotes otherwise. As added by P.L.288-2013, SEC.36.

Ind. Code § 6-3.1-11-4 "Floor space"

Sec. 4. As used in this chapter, "floor space" means the usable interior floor space of a building. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-5 "Industrial recovery site"

Sec. 5. As used in this chapter, "industrial recovery site" means land on which a vacant plant having at least one hundred thousand (100,000) square feet of total floor space: (1) exists as of the date an application is filed with the corporation under this chapter and was placed in service at least fifteen (15) years before the date on which an application is filed with the corporation under this chapter; or (2) existed within five (5) years before the date an application is filed with the corporation under this chapter and was placed in service at least fifteen (15) years before the date on which the demolition of the vacant plant was completed. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.204-2016, SEC.18.

Ind. Code § 6-3.1-11-8 "Placed in service"

Sec. 8. As used in this chapter, "placed in service" means that property is placed in a condition or state of readiness and availability for a specifically assigned function. In the case of a plant comprised of a complex of buildings, the entire plant shall be considered to have been placed in service as of the date that a building was placed in service if the building has floor space that, when aggregated with the floor space of all buildings in the complex placed in service on earlier dates, exceeds fifty percent (50%) of the total floor space of all buildings in the complex. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-9 "Plant"

Sec. 9. As used in this chapter, "plant" means a building or complex of buildings used, or designed and constructed for use, in production, manufacturing, fabrication, assembly, processing, refining, finishing, or warehousing of tangible personal property, whether the tangible personal property is or was for sale to third parties or for use by the owner in the owner's business. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-10 "Qualified investment"

Sec. 10. As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures for rehabilitation of property located within an industrial recovery site. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.37.

Ind. Code § 6-3.1-11-11 "Rehabilitation"

Sec. 11. As used in this chapter, "rehabilitation" means the remodeling, repair, or betterment of real property in any manner or any enlargement or extension of real property. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-12 "State tax liability"

Sec. 12. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under: (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); (2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and (3) IC 6-5.5 (the financial institutions tax); as computed after the application of the 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.379-1987(ss), SEC.11. Amended by P.L.80-1989, SEC.10; P.L.347-1989(ss), SEC.16; P.L.192-2002(ss), SEC.101; P.L.154-2020, SEC.13.

Ind. Code § 6-3.1-11-13 "Taxpayer"

Sec. 13. As used in this chapter, "taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability and that is the owner or developer of an industrial recovery site. The term includes an assignee that is assigned some part of a credit under section 16(c) of this chapter. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.8-1993, SEC.89; P.L.8-1996, SEC.9; P.L.74-2020, SEC.7.

Ind. Code § 6-3.1-11-14 "Vacant"

Sec. 14. As used in this chapter, "vacant" means with respect to a plant that at least seventy-five percent (75%) of the plant placed in service is not used to carry on production, manufacturing, assembly, processing, refining, finishing, or warehousing of tangible personal property. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-15 Repealed

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.26-2004, SEC.1; P.L.113-2011, SEC.2; P.L.288-2013, SEC.38. Repealed by P.L.204-2016, SEC.21.

Ind. Code § 6-3.1-11-16 Credit for qualified investment; computation of amount; assignment of credit

Sec. 16. (a) Subject to entering into an agreement with the corporation under section 19.5 of this chapter and subject to section 21 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year if the taxpayer makes a qualified investment as certified by the corporation for that year. (b) The amount of the credit to which a taxpayer is entitled is the qualified investment made by the taxpayer and certified by the corporation for a taxable year multiplied by the applicable percentage. (c) The taxpayer may assign any part of the credit that the taxpayer may claim under this chapter. A credit that is assigned under this subsection remains subject to this chapter. If a 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 taxpayer. Nothing in this subsection shall prohibit a taxpayer from making more than one (1) assignment of any part of the credit, but a taxpayer may not assign the same part of a credit more than once. (d) Before a credit may be assigned, the taxpayer must notify the corporation of the assignment of the credit in the manner prescribed by the corporation. An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the 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 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.379-1987(ss), SEC.11. Amended by P.L.8-1996, SEC.10; P.L.204-2016, SEC.22; P.L.74-2020, SEC.8; P.L.154-2020, SEC.14.

Ind. Code § 6-3.1-11-17 Carryover of excess credit; carryback or refund of unused credit barred

Sec. 17. (a) If the amount determined under section 16(b) of this chapter for a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the immediately following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. (b) A taxpayer is not entitled to a carryback or refund of any unused credit. As added by P.L.379-1987(ss), SEC.11.

Ind. Code § 6-3.1-11-18.5 Application to enter into agreement with the corporation

Sec. 18.5. (a) A taxpayer that proposes to make qualified investments on an industrial recovery site as provided under this chapter may apply to the corporation to enter into an agreement for a tax credit under this chapter. (b) The corporation shall prescribe the form of the application. As added by P.L.204-2016, SEC.23.

Ind. Code § 6-3.1-11-19 Evaluation of applications; factors considered; additional requirements for certain industrial recovery sites

Sec. 19. (a) The corporation shall consider the following factors in evaluating applications filed under this chapter: (1) The level of distress in the surrounding community caused by the loss of jobs at the industrial recovery site. (2) Evidence of support for the designation by residents, businesses, and private organizations in the surrounding community. (3) Evidence of a commitment by private or governmental entities to assist in the financing of improvements or redevelopment activities benefiting the industrial recovery site. (4) Whether the industrial recovery site is within an economic revitalization area designated under IC 6-1.1-12.1. (b) The corporation may not approve an application to receive tax credits under this chapter for qualified investments made on an industrial recovery site described in section 5(2) of this chapter unless the applicant can demonstrate that the plant was not maintained and was removed from the site in an effort to protect the health, safety, and welfare of the community. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.146-2008, SEC.324; P.L.288-2013, SEC.40; P.L.204-2016, SEC.24.

Ind. Code § 6-3.1-11-19.5 Requirement that applicant enter into agreement with the corporation as a condition of receiving tax credit

Sec. 19.5. If the corporation approves an application under this chapter, the corporation shall require the applicant to enter into an agreement with the corporation as a condition of receiving a tax credit under this chapter. As added by P.L.204-2016, SEC.25.

Ind. Code § 6-3.1-11-21 Disqualification to claim credit due to substantial reduction or cessation of operations in Indiana; determination

Sec. 21. A taxpayer is not entitled to claim the credit provided by this chapter if the corporation determines that the taxpayer has substantially reduced or ceased its operations in Indiana in order to relocate them within the industrial recovery site. A determination that a taxpayer is not entitled to the credit provided by this chapter as a result of a substantial reduction or cessation of operations applies to credits that would otherwise arise in the taxable year in which the substantial reduction or cessation occurs and in all subsequent years. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.42.

Ind. Code § 6-3.1-11-22 Application of credit against taxes owed; order; computation

Sec. 22. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order: (1) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year. (2) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) or nonprofit agricultural organization health coverage tax (IC 6-8-15) for the taxable year. (3) Against the taxpayer's financial institutions tax (IC 6-5.5) for the taxable year. (b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.80-1989, SEC.11; P.L.347-1989(ss), SEC.17; P.L.1-1990, SEC.79; P.L.192-2002(ss), SEC.102; P.L.1-2003, SEC.37; P.L.154-2020, SEC.15.

Ind. Code § 6-3.1-11-23 Claiming of credit on annual tax return; certification; required information

Sec. 23. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certification of the corporation stating the percentage of credit allowable under this chapter and all other information that the department determines is necessary for the calculation of the credit provided by this chapter and for the determination of whether an expenditure was for a qualified investment. As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.43.

Ind. Code § 6-3.1-11-24 Pass through entities

Sec. 24. (a) If a pass through entity does not have state income tax liability against which the tax credit provided by this chapter may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to: (1) the tax 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 tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. (c) Notwithstanding subsections (a) and (b), a pass through entity (other than an entity described in IC 6-3-1-35(1)) 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. Such agreements shall be filed with the corporation not later than fifteen (15) days after execution. The pass through entity shall also provide 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 of state revenue. However, this subsection applies only to a project that is located in a redevelopment project area, an economic development area, or an urban renewal project area and that includes, as part of the project, the use and repurposing of two (2) or more buildings and structures that are: (1) at least seventy-five (75) years old; and (2) located at a site at which manufacturing previously occurred over a period of at least seventy-five (75) years. As added by P.L.166-2014, SEC.13. Amended by P.L.212-2018(ss), SEC.25.

Ind. Code § 6-3.1-11-25 Expiration

Sec. 25. (a) Notwithstanding any other law and except as provided in subsection (b), a taxpayer is entitled to receive a credit under this chapter only for a qualified investment made before January 1, 2020. (b) A taxpayer is entitled to receive a credit for a qualified investment made after December 31, 2019, and before January 1, 2030, if the taxpayer is awarded a credit under: (1) an application approved by the corporation before January 1, 2020; or (2) an agreement entered into by the taxpayer and the corporation before January 1, 2021. (c) This section may not be construed to prevent a taxpayer from carrying an unused tax credit attributable to a qualified investment made before January 1, 2020, or made as provided in subsection (b) forward to a taxable year beginning after December 31, 2019, and before January 1, 2030, in the manner provided for by section 17 of this chapter. (d) This chapter expires January 1, 2030. As added by P.L.158-2019, SEC.10.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026