HB 1238 Summary

• Establishes a state tax credit for taxpayers who invest in qualified community development entities that make investments in low-income community businesses located in Indiana.

• Tax credit equals an applicable percentage (0% for years 1-2, 7% for year 3, 8% for years 4-7) multiplied by the investment purchase price, with a maximum of $10,000,000 in credits per state fiscal year.

• Requires a $5,000 nonrefundable application fee per investment for certification by the Indiana Economic Development Corporation (IEDC).

• Tax credits are non-refundable and non-saleable, but unused credits may be carried forward up to 5 subsequent tax years.

• Program accepts applications until December 31, 2018, but allows continued credit claims for certified investments beyond that date; effective January 1, 2014 (retroactive).