CHAPTER 13.5. CAPITAL INVESTMENT TAX CREDIT
IC 6-3.1-13.5
Chapter 13.5. Capital Investment Tax Credit
IC 6-3.1-13.5-1
"Corporation" defined
Sec. 1. As used in this chapter, "corporation" refers to the Indiana
economic development corporation.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,
SEC.86.
IC 6-3.1-13.5-2
"Pass through entity" defined
Sec. 2. As used in this chapter, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-3
"Qualified investment" defined
Sec. 3. As used in this chapter, "qualified investment" means the
amount of the taxpayer's expenditures for:
(1) the purchase of new manufacturing or production
equipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
manufacturing facilities;
(4) onsite infrastructure improvements;
(5) the construction of new manufacturing facilities;
(6) costs associated with retooling existing machinery and
equipment; and
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry;
that are certified by the corporation under section 10 of this chapter
as being eligible for the credit under this chapter, if the equipment,
machinery, facilities improvements, facilities, buildings, or
foundations are installed or used for a project having an estimated
total cost of at least seventy-five million dollars ($75,000,000) and
in a county having a population of more than forty-three thousand
(43,000) but less than forty-five thousand (45,000).
As added by P.L.291-2001, SEC.177. Amended by P.L.170-2002,
SEC.25; P.L.4-2005, SEC.87.
IC 6-3.1-13.5-4
"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 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 27-1-18-2 (the insurance premiums tax); and
(3) IC 6-5.5 (the financial institutions 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.291-2001, SEC.177. Amended by P.L.192-2002(ss),
SEC.106.
IC 6-3.1-13.5-5
"Taxpayer" defined
Sec. 5. As used in this chapter, "taxpayer" means a person,
corporation, partnership, or other entity that has any state tax
liability.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-6
Entitlement to credit; amount
Sec. 6. (a) Subject to the provisions of this chapter, a taxpayer is
entitled to a credit against the taxpayer's state tax liability for a
taxable year if the taxpayer makes a qualified investment in that year.
(b) The amount of the credit to which a taxpayer is entitled is the
qualified investment made by the taxpayer during the taxable year
multiplied by fourteen percent (14%).
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-7
Qualifications for credit
Sec. 7. A taxpayer may claim the credit under this chapter only if:
(1) the average wage paid by the taxpayer to its Indiana
employees within the county in which the qualifying investment
is made exceeds the average wage paid in that county; or
(2) the taxpayer certifies to the corporation and provides proof
as determined by the corporation that, as a result of the
qualifying investment, the average wage paid by the taxpayer to
its Indiana employees within the county in which the qualifying
investment is made will exceed the average wage paid in that
county.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,
SEC.88.
IC 6-3.1-13.5-8
Credit for shareholder or partner of pass through entity
Sec. 8. (a) If a pass through entity does not have state income tax
liability against which the tax credit provided by this chapter may be
applied, a shareholder or partner 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 or partner is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder or partner of a pass through entity is
otherwise entitled under this chapter.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-9
Division of credit; carryover of excess credit
Sec. 9. (a) The total value of a tax credit under this chapter shall
be divided equally over seven (7) years, beginning with the year in
which the credit is granted. If the amount of credit provided under
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 over to not more than three (3) subsequent 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.
(b) A taxpayer is not entitled to a carryback or refund of any
unused credit.
As added by P.L.291-2001, SEC.177.
IC 6-3.1-13.5-10
Requests for determinations; notice of intent to claim credit
Sec. 10. (a) To be entitled to a credit under this chapter, a
taxpayer must request the corporation to determine whether an
expenditure is a qualified investment.
(b) To make a request under subsection (a), a taxpayer must file
with the corporation a notice of intent to claim the credit under this
chapter. A taxpayer must file the notice with the corporation not later
than February 15 of the calendar year following the calendar year in
which the expenditure is made.
(c) After receiving a notice of intent to claim the credit, the
corporation shall review the notice and determine whether the
expenditure is a qualified investment and whether the taxpayer is
entitled to claim the credit. The corporation shall, before April 1 of
the calendar year in which the notice is received, send to the taxpayer
and to the department of state revenue a letter:
(1) certifying that the taxpayer is entitled to claim the credit
under this chapter for the expenditure; or
(2) stating the reason why the taxpayer is not entitled to claim
the credit.
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,
SEC.89.
IC 6-3.1-13.5-11
Claim for credit on tax return
Sec. 11. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department of state revenue.
A taxpayer claiming a credit under this chapter shall submit to the
department of state revenue a copy of the certification letter provided
under section 10 of this chapter. The taxpayer shall submit to the
department of state revenue all information that the department of
state revenue determines is necessary for the calculation of the credit
provided by this chapter and for the determination of whether an
expenditure was for a qualified investment.
As added by P.L.291-2001, SEC.177. Amended by P.L.1-2002,
SEC.30.
IC 6-3.1-13.5-12
Installation or completion of capital improvement required;
repayment of tax liability and interest
Sec. 12. (a) If a taxpayer receives a credit under this chapter, the
equipment, machinery, facilities improvements, facilities, buildings,
or foundations for which the credit was granted must be fully
installed or completed not more than five (5) years after the
corporation issues a letter under section 10 of this chapter certifying
that the taxpayer is entitled to claim the credit.
(b) If a taxpayer receives a credit under this chapter and does not
make the qualified investment (or a part of the qualified investment)
for which the credit was granted within the time required by
subsection (a), the corporation may require the taxpayer to repay the
following:
(1) The additional amount of state tax liability that would have
been paid by the taxpayer if the credit had not been granted for
the qualified investment (or part of the qualified investment)
that was not made by the taxpayer within the time required by
subsection (a).
(2) Interest at a rate established under IC 6-8.1-10-1(c) on the
additional amount of state tax liability referred to in subdivision
(1).
As added by P.L.291-2001, SEC.177. Amended by P.L.4-2005,
SEC.90.
IC 6-3.1-13.5-13
Adoption of rules
Sec. 13. The department and the department of state revenue shall
adopt rules to carry out this chapter.
As added by P.L.291-2001, SEC.177.