Loading chat...
IN HB1048
Bill
Status
1/3/2018
Primary Sponsor
Matthew Lehman
Click for details
AI Summary
-
Establishes a new Regional Development Tax Credit for investments in redevelopment or rehabilitation of vacant or underused real property, with credit amounts equal to the qualified investment multiplied by an IEDC-approved percentage (maximum 15% for local economic activity plans, up to 25% for regional redevelopment plans)
-
Phases out two existing tax credits after December 31, 2018: the Industrial Recovery Tax Credit (IC 6-3.1-11) and the Community Revitalization Enhancement District Tax Credit (IC 6-3.1-19), with both chapters set to expire January 1, 2029
-
Requires taxpayers to enter into an agreement with the Indiana Economic Development Corporation (IEDC) to receive the credit, with IEDC evaluating applications based on economic development potential, community support, level of distress in surrounding areas, and private/governmental financing commitments
-
Allows unused credits to be carried forward for up to 9 taxable years and permits assignment of credits to other parties, but prohibits carrybacks or refunds
-
Authorizes IEDC to include "return on investment" provisions in agreements requiring repayment of credits based on project profitability, debt refinancing, or other negotiated conditions, with repaid funds deposited into a separate fund for regional development and workforce training programs
Legislative Description
Tax credits. Establishes the regional development tax credit (credit). Allows a taxpayer to apply to the Indiana economic development corporation (IEDC) for the credit. Provides that a taxpayer is entitled to a credit against state tax liability if: (1) the taxpayer makes a qualified investment for the redevelopment or rehabilitation of real property that is vacant or underused; and (2) the qualified investment is approved by the IEDC. Specifies the factors that the IEDC shall consider in evaluating applications for a proposed qualified investment. Specifies that the credit is subject to an agreement entered into by the IEDC and the
Last Action
Representatives Sullivan, Slager, Goodin added as coauthors
1/18/2018