House Bill 1020 Summary

• Establishes a new markets job growth tax credit for investments in qualified community development entities that invest in low-income community businesses located in Indiana, effective January 1, 2014.

• Tax credit equals an applicable percentage multiplied by the investment purchase price: 0% for the first and second credit allowance dates (anniversaries), 7% for the third date, and 8% for the fourth through seventh dates.

• Requires at least 85% of investment proceeds to be used for qualified investments in Indiana low-income community businesses within one year of the initial investment date.

• Allows unused tax credits to be carried forward for up to five subsequent taxable years with no carryback or refund permitted, and caps total annual tax credits at $20,000,000 per state fiscal year.

• Permits the Indiana Economic Development Corporation to recapture tax credits if federal credits are recaptured or if investments are redeemed before the seventh anniversary, with a six-month cure period provided.