SB 165 Summary

• Establishes an Indiana new markets tax credit against state taxes for qualified equity investments made between January 1, 2014 and January 1, 2016, modeled after the federal new markets tax credit.

• Provides tax credits at 0% for the first two credit allowance dates, 7% for the third date, and 8% for the next four dates, applied to the purchase price of qualified equity investments.

• Requires qualified community development entities to pay a $5,000 nonrefundable application fee and a $500,000 conditionally refundable performance fee for each qualified equity investment seeking IEDC approval.

• Excludes home ownership service businesses and most child care businesses (except highest-rated licensed child care centers, homes, or ministries) from qualifying as low-income community businesses.

• Caps annual certification of new markets tax credits at $10,000,000 per state fiscal year and requires the IEDC to issue letter rulings on credit eligibility and submit annual reports to the budget committee.