Ind. Code ch. 6-3.1-24

Ind. Code ch. 6-3.1-24
in effect

Ind. Code § 6-3.1-24-1 "Pass through entity" defined

Sec. 1. 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.192-2002(ss), SEC.119.

Ind. Code § 6-3.1-24-2 "Qualified Indiana business" defined

Sec. 2. As used in this chapter, "qualified Indiana business" means an independently owned and operated business that is certified as a qualified Indiana business by the Indiana economic development corporation under section 7 of this chapter. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.4-2005, SEC.96.

Ind. Code § 6-3.1-24-2.5 "Qualified Indiana investment fund"

Sec. 2.5. As used in this chapter, "qualified Indiana investment fund" means any private fund that meets the definition of a venture capital fund in 17 CFR 275.203(l)-1 and that is certified by the Indiana economic development corporation as provided in section 7.5 of this chapter. As added by P.L.165-2021, SEC.76.

Ind. Code § 6-3.1-24-3 "Qualified investment capital" defined

Sec. 3. As used in this chapter, "qualified investment capital" means debt or equity capital that is provided to a qualified Indiana business or a qualified Indiana investment fund after December 31, 2003. However, the term does not include debt that: (1) is provided by a financial institution (as defined in IC 5-13-4-10) after May 15, 2005; and (2) is secured by a valid mortgage, security agreement, or other agreement or document that establishes a collateral or security position for the financial institution that is senior to all collateral or security interests of other taxpayers that provide debt or equity capital to the qualified Indiana business. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.193-2005, SEC.16; P.L.165-2021, SEC.77.

Ind. Code § 6-3.1-24-4 "State tax liability" defined

Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under: (1) IC 6-2.5 (state gross retail and use tax); (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); (3) IC 6-5.5 (the financial institutions tax); and (4) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage 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.192-2002(ss), SEC.119. Amended by P.L.154-2020, SEC.18.

Ind. Code § 6-3.1-24-4.5 "Substantial presence"

Sec. 4.5. (a) As used in this chapter, "substantial presence" means: (1) maintaining a company headquarters in Indiana; or (2) maintaining at least seventy-five percent (75%) of a company's total payroll in Indiana. (b) Notwithstanding subsection (a), a company receiving qualified investment capital from a qualified Indiana investment fund shall be considered to have substantial presence in Indiana if the company commits to relocate: (1) its headquarters; or (2) seventy-five percent (75%) of its total payroll; to Indiana within one (1) year of receiving qualified investment capital from a qualified Indiana investment fund. As added by P.L.165-2021, SEC.78.

Ind. Code § 6-3.1-24-5 "Taxpayer" defined

Sec. 5. As used in this chapter, "taxpayer" means an individual or entity, including a pass through entity, that has any state tax liability. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.1.

Ind. Code § 6-3.1-24-6 Credit; eligibility

Sec. 6. A taxpayer that: (1) provides qualified investment capital to a qualified Indiana business or a qualified Indiana investment fund; and (2) fulfills the requirements of the Indiana economic development corporation under section 12.5 of this chapter; is entitled to a credit against the taxpayer's state tax liability in a taxable year equal to the amount specified in section 8 or 8.5 of this chapter, whichever is applicable. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.2; P.L.4-2005, SEC.97; P.L.165-2021, SEC.79.

Ind. Code § 6-3.1-24-7 Certification of qualified Indiana business; forms; fee

Sec. 7. (a) The Indiana economic development corporation shall certify that a business is a qualified Indiana business if the corporation determines that the business: (1) has its headquarters in Indiana; (2) is primarily focused on professional motor vehicle racing, commercialization of research and development, technology transfers, or the application of new technology, or is determined by the Indiana economic development corporation to have significant potential to: (A) bring substantial capital into Indiana; (B) create jobs; (C) diversify the business base of Indiana; or (D) significantly promote the purposes of this chapter in any other way; (3) has had average annual revenues of less than ten million dollars ($10,000,000) in the two (2) years preceding the year in which the business received qualified investment capital from a taxpayer claiming a credit under this chapter; (4) has: (A) at least fifty percent (50%) of its employees residing in Indiana; or (B) at least seventy-five percent (75%) of its assets located in Indiana; and (5) is not engaged in a business involving: (A) real estate; (B) real estate development; (C) insurance; (D) professional services provided by an accountant, a lawyer, or a physician; (E) retail sales, except when: (i) the primary purpose of the business is the development or support of electronic commerce using the Internet; or (ii) the business is engaged in retail sales as a method to sell a unique product that the business developed, for which the business holds patents, or of which the business otherwise has ownership; or (F) oil and gas exploration. (b) A business shall apply to be certified as a qualified Indiana business on a form prescribed by the Indiana economic development corporation. (c) If a business is certified as a qualified Indiana business under this section, the Indiana economic development corporation shall provide a copy of the certification to the investors in the qualified Indiana business for inclusion in tax filings. (d) Except as provided in subsection (e), the Indiana economic development corporation may impose an application fee of not more than two hundred dollars ($200). (e) The Indiana economic development corporation may not impose the application fee authorized by subsection (d) for applications submitted during the period beginning July 1, 2011, and ending June 30, 2013. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.3; P.L.4-2005, SEC.98; P.L.193-2005, SEC.17; P.L.172-2011, SEC.66; P.L.162-2026, SEC.9.

Ind. Code § 6-3.1-24-7.5 Certification of qualified Indiana investment fund; forms

Sec. 7.5. (a) The Indiana economic development corporation may certify that an investment fund is a qualified Indiana investment fund if the corporation determines that the fund meets the definition in section 2.5 of this chapter and the requirements in subsection (b). (b) The Indiana economic development corporation may only certify a fund as a qualified Indiana investment fund if the fund makes investments according to a policy that: (1) requires eligible companies to be primarily focused on the commercialization of research and development, technology transfer, or application of new technology; and (2) prioritizes investments in companies that: (A) have received a grant, loan, or other investment funds provided by the Indiana twenty-first century research and technology fund established by IC 5-28-16-2; or (B) maintain a substantial presence in Indiana. The policy referred to in this subsection shall apply only to investable capital in the fund, excluding management fees, legal fees, and other expenses incurred in the operation of the fund. (c) An investment fund must apply to be certified as a qualified Indiana investment fund on a form prescribed by the Indiana economic development corporation. (d) If an investment fund is certified as a qualified Indiana investment fund under this section, the Indiana economic development corporation shall provide a copy of the certification to the investors in the qualified Indiana investment fund for inclusion in tax filings. As added by P.L.165-2021, SEC.80. Amended by P.L.162-2026, SEC.10.

Ind. Code § 6-3.1-24-8 Maximum allowable credit; notice to investors

Sec. 8. (a) A certification provided under section 7 of this chapter must include notice to the investors of the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to the qualified Indiana business. (b) For a calendar year ending before January 1, 2011, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of: (1) the total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%); or (2) five hundred thousand dollars ($500,000). (c) For a calendar year beginning after December 31, 2010, and ending before January 1, 2022, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%). (2) One million dollars ($1,000,000). (d) For a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty-five percent (25%). (2) One million dollars ($1,000,000). (e) Notwithstanding subsection (d), for a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business, if the qualified Indiana business is a minority business enterprise, a women's business enterprise, or a veteran owned business equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by thirty percent (30%). (2) One million five hundred thousand dollars ($1,500,000). As added by P.L.192-2002(ss), SEC.119. Amended by P.L.172-2011, SEC.67; P.L.165-2021, SEC.81; P.L.135-2022, SEC.10.

Ind. Code § 6-3.1-24-8.5 Maximum allowable credit; qualified investment fund; notice to investors

Sec. 8.5. (a) A certification provided under section 7.5 of this chapter must include notice to investors of the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to the qualified Indiana investment fund. (b) The maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a qualified Indiana investment fund equals the lesser of the following: (1) The total amount of qualified investment capital provided to the qualified Indiana investment fund in the calendar year, multiplied by twenty percent (20%). (2) Five million dollars ($5,000,000). As added by P.L.165-2021, SEC.82.

Ind. Code § 6-3.1-24-9 Repealed

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.4; P.L.4-2005, SEC.99; P.L.193-2005, SEC.18; P.L.211-2007, SEC.28; P.L.172-2011, SEC.68; P.L.137-2012, SEC.60; P.L.288-2013, SEC.47; P.L.250-2015, SEC.30; P.L.237-2017, SEC.43. Repealed by P.L.165-2021, SEC.83.

Ind. Code § 6-3.1-24-11 Pass through entity; eligibility of owners, shareholders, or members for credit

Sec. 11. If a pass through entity is entitled to a credit under section 6 of this chapter but does not have state tax liability against which the tax credit 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. If any or all of the tax credit is passed through to a shareholder, partner, or member of a pass through entity, the amount of the tax credit that is passed through to a shareholder, partner, or member of a pass through entity may not be applied against the pass through entity's state tax liability, nor may the pass through entity assign any unused credit under section 12(b) of this chapter as effective July 1, 2020. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.158-2019, SEC.13.

Ind. Code § 6-3.1-24-12 Carryover of unused tax credit; assignment of all or part of the credit

Sec. 12. (a) If the amount of the credit determined under section 8 or 8.5 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following five (5) 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. A taxpayer is not entitled to a carryback or a refund of any unused credit amount. (b) If the corporation certifies a credit for an investment that is made after June 30, 2020, and before July 1, 2029, the taxpayer may assign all or part of the credit to which the taxpayer is entitled under this chapter, subject to the limitations set forth in subsection (c). (c) The following apply to the assignment of a credit under this chapter: (1) A taxpayer may not assign all or part of a credit or credits to a particular person in amounts that are less than ten thousand dollars ($10,000). (2) 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. (3) An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. (4) Once a particular credit or credits are assigned, the assignee may not assign all or part of the credit or credits to another person. (5) A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of that part of the credit assigned. Nothing in this subsection shall prevent a taxpayer from combining individual credits of less than ten thousand dollars ($10,000) for assignment. (d) The corporation shall collect and compile data on the assignments of tax credits under this chapter and determine the effectiveness of each assignment in getting projects completed. The corporation shall report its findings under this subsection to the legislative council in an electronic format under IC 5-14-6 before November 1, 2022. This subsection expires January 1, 2023. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.5; P.L.193-2005, SEC.19; P.L.158-2019, SEC.14; P.L.165-2021, SEC.85; P.L.162-2026, SEC.11.

Ind. Code § 6-3.1-24-12.5 Certification of investment plan; application; proof of investment within two years

Sec. 12.5. (a) A taxpayer wishing to obtain a credit under this chapter must apply to the Indiana economic development corporation for a certification that the taxpayer's proposed investment plan would qualify for a credit under this chapter. (b) The application required under subsection (a) must include: (1) the name and address of the taxpayer; (2) the name and address of each proposed recipient of the taxpayer's proposed investment; (3) the amount of the proposed investment; (4) a copy of the certification issued under section 7 or 7.5 of this chapter that the proposed recipient is a qualified Indiana business or qualified Indiana investment fund, whichever is applicable; and (5) any other information required by the Indiana economic development corporation. (c) If the Indiana economic development corporation determines that the proposed investment would qualify the taxpayer for a credit under this chapter, the corporation may certify the taxpayer's proposed investment plan. (d) To receive a credit under this chapter, the taxpayer must provide qualified investment capital to a qualified Indiana business or qualified Indiana investment fund, whichever is applicable, according to the taxpayer's certified investment plan within two (2) years after the date on which the Indiana economic development corporation certifies the investment plan. (e) Upon making the investment required under subsection (d), the taxpayer shall provide proof of the investment to the Indiana economic development corporation. (f) Upon receiving proof of a taxpayer's investment under subsection (e), the Indiana economic development corporation shall issue the taxpayer a certificate indicating that the taxpayer has fulfilled the requirements of the corporation and that the taxpayer is entitled to a credit under this chapter. (g) Notwithstanding subsection (f), if a taxpayer is issued a certificate by the Indiana economic development corporation for an investment made in a qualified Indiana investment fund, a taxpayer may not claim the credit as provided in section 13 of this chapter before July 1, 2023. (h) A taxpayer forfeits the right to a tax credit attributable to an investment certified under subsection (c) if the taxpayer fails to make the proposed investment within the period required under subsection (d). As added by P.L.214-2003, SEC.6. Amended by P.L.4-2005, SEC.100; P.L.193-2005, SEC.20; P.L.165-2021, SEC.86.

Ind. Code § 6-3.1-24-13 Returns; submission of certificates from Indiana economic development corporation

Sec. 13. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department, along with the taxpayer's state tax return or returns, a copy of the certificate issued by the Indiana economic development corporation to the taxpayer under section 12.5(f) of this chapter and all information that the department determines is necessary for the calculation of the credit provided by this chapter. As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.7; P.L.4-2005, SEC.101.

Ind. Code § 6-3.1-24-14 Tax credit not considered a security; issuance or assignment not subject to the Indiana securities law

Sec. 14. A certificate or tax credit issued under this chapter or assigned under section 12(b) of this chapter may not be considered to be a security for purposes of IC 23. The issuance or assignment of a certificate or tax credit under this chapter is not subject to the Indiana securities law under IC 23. As added by P.L.106-2014, SEC.1. Amended by P.L.158-2019, SEC.15.

Ind. Code § 6-3.1-24-15 Maximum annual statewide allowance for credits

Sec. 15. (a) Before January 1, 2022, the total amount of credits that may be awarded by the Indiana economic development corporation under this chapter for investment plans certified as provided in section 12.5 of this chapter that propose investing qualified investment capital in a particular qualified Indiana business during a particular calendar year is twelve million five hundred thousand dollars ($12,500,000). (b) After December 31, 2021, the total amount of credits that may be awarded by the Indiana economic development corporation under this chapter for investment plans certified as provided in section 12.5 of this chapter that propose investing qualified investment capital in a particular qualified Indiana business or qualified Indiana investment fund during a particular calendar year is twenty million dollars ($20,000,000), provided that not more than seven million five hundred thousand dollars ($7,500,000) may be awarded for proposed investments of qualified investment capital in a qualified Indiana investment fund. As added by P.L.165-2021, SEC.87.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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