Introduced Version
SENATE BILL No. 283
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-19-3.
Synopsis: Transferability of community revitalization credit. Allows
a taxpayer to assign, sell, convey, or otherwise transfer a tax credit
received for investment in a community revitalization enhancement
district to another taxpayer. (Current law permits assignments to certain
lessees of property located in the district.)
Effective: January 1, 2006.
Long, Broden
January 6, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
First Regular Session 114th General Assembly (2005)
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SENATE BILL No. 283
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-19-3; (05)IN0283.1.1. -->
SECTION 1. IC 6-3.1-19-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 3. (a) Subject to
section 5 of this chapter, a taxpayer is entitled to a credit against the
taxpayer's state and local 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 twenty-five percent (25%).
(c) A taxpayer may assign,
sell, convey, or otherwise transfer any
part of the credit to which the taxpayer is entitled under this chapter to
a lessee of property redeveloped or rehabilitated under section 2 of this
chapter. another taxpayer. A credit that is
assigned transferred under
this subsection remains subject to this chapter.
(d)
An assignment A transfer under subsection (c) must be in
writing and both the taxpayer and the
lessee transferee must report the
assignment on their state tax return for the year in which the
assignment transfer is made, in the manner prescribed by the
department. The taxpayer may not receive value in connection with the
assignment transfer under subsection (c) that exceeds the value of the
part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability against which the tax
credit may be applied, a shareholder, partner, or member 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, partner, or member is entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, or member of a pass through entity is
otherwise entitled under this chapter. However, a pass through entity
and an individual who is a shareholder, partner, or member of the pass
through entity may not claim more than one (1) credit for the same
investment.
(f) A taxpayer that is otherwise entitled to a credit under this chapter
for a taxable year may claim the credit regardless of whether any
income tax incremental amount or gross retail incremental amount has
been:
(1) deposited in the incremental tax financing fund established for
the community revitalization enhancement district; or
(2) allocated to the district.
SOURCE: ; (05)IN0283.1.2. -->
SECTION 2. [EFFECTIVE JANUARY 1, 2006]
IC 6-3.1-19-3, as
amended by this act, applies to taxable years beginning after
December 31, 2005.