Introduced Version






HOUSE BILL No. 1183

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-16.

Synopsis: Historic rehabilitation income tax credit. Provides that the historic rehabilitation income tax credit may be assigned. Provides that the credit may be recaptured from the person who receives the certification or from an assignee to whom the property is transferred. Increases the annual limit of the credit from $450,000 to $2,500,000. Replaces the current definition of "taxpayer" for purposes of the historic rehabilitation credit.

Effective: Upon passage; July 1, 2008.





Dvorak




    January 10, 2008, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 115th General Assembly (2008)


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HOUSE BILL No. 1183



    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 6-3.1-16-2.8; (08)IN1183.1.1. -->     SECTION 1. IC 6-3.1-16-2.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 2.8. As used in this chapter, "person" means:
        (1) an individual;
        (2) a corporation;
        (3) an S corporation;
        (4) a partnership;
        (5) a limited liability company;
        (6) a limited liability partnership;
        (7) a nonprofit organization; or
        (8) a joint venture.

SOURCE: IC 6-3.1-16-6.2; (08)IN1183.1.2. -->     SECTION 2. IC 6-3.1-16-6.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6.2. As used in this chapter, "taxpayer" means:
        (1) a person that:
            (A) is the holder of a credit that is awarded or assigned under this chapter; and
            (B) has a state tax liability against which any part of the credit may be applied; or
        (2) a shareholder, partner, or member of a pass through entity that:

             (A) is the holder of a credit that is awarded or assigned under this chapter; and
            (B) does not have any state tax liability against which any part of the credit may be applied.

SOURCE: IC 6-3.1-16-8; (08)IN1183.1.3. -->     SECTION 3. IC 6-3.1-16-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 8. A taxpayer person qualifies for a credit under section 7 of this chapter if all of the following conditions are met:
        (1) The historic property is:
            (A) located in Indiana;
            (B) at least fifty (50) years old; and
            (C) except as provided in section 7(c) of this chapter, owned by the taxpayer. person.
        (2) The division certifies that the historic property is listed in the register of Indiana historic sites and historic structures.
        (3) The division certifies that the taxpayer person submitted a proposed preservation or rehabilitation plan to the division that complies with the standards of the division.
        (4) The division certifies that the preservation or rehabilitation work that is the subject of the credit substantially complies with the proposed plan referred to in subdivision (3).
        (5) The preservation or rehabilitation work is completed in not more than:
            (A) two (2) years; or
            (B) five (5) years if the preservation or rehabilitation plan indicates that the preservation or rehabilitation is initially planned for completion in phases.
        The time in which work must be completed begins when the physical work of construction or destruction in preparation for construction begins.
        (6) The historic property is:
            (A) actively used in a trade or business;
            (B) held for the production of income; or
            (C) held for the rental or other use in the ordinary course of the taxpayer's person's trade or business.
        (7) The qualified expenditures for preservation or rehabilitation

of the historic property exceed ten thousand dollars ($10,000).

SOURCE: IC 6-3.1-16-9; (08)IN1183.1.4. -->     SECTION 4. IC 6-3.1-16-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) The division shall provide the certifications referred to in section 8(3) and 8(4) of this chapter if a taxpayer's person's proposed preservation or rehabilitation plan complies with the standards of the division and the taxpayer's person's preservation or rehabilitation work complies with the plan.
    (b) The taxpayer person may appeal a decision by the division under this chapter to the review board.
SOURCE: IC 6-3.1-16-12; (08)IN1183.1.5. -->     SECTION 5. IC 6-3.1-16-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 12. (a) A credit claimed under this chapter shall be recaptured from the taxpayer person who receives the certifications referred to in section 8(3) and 8(4) of this chapter or, if applicable, from an assignee to which the property is transferred, if:
        (1) the property is transferred, other than to an assignee, less than five (5) years after completion of the certified preservation or rehabilitation work; or
        (2) less than five (5) years after completion of the certified preservation or rehabilitation, additional modifications to the property are undertaken that do not meet the standards of the division.
    (b) If the recapture of a credit is required under this section, an amount equal to the credit recaptured shall be added to the tax liability of the taxpayer person who receives the certifications under section 8 of this chapter or, if applicable, an assignee to which the property is transferred, for the taxable year during which the credit is recaptured.
SOURCE: IC 6-3.1-16-13.5; (08)IN1183.1.6. -->     SECTION 6. IC 6-3.1-16-13.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 13.5. (a) The holder of a credit may assign any part of the credit to which the holder is entitled under this chapter to another person if the holder complies with this section.
    (b) The assignor must provide the assignee with a copy of
the certifications by the division required under sections 8 and 9 of this chapter.
    (c) The assignor must provide written notification of the assignment to the:
        (1) division; and
        (2) department;
not later than thirty (30) days after the assignment.
    (d) The notification provided under subsection (c) must contain:
        (1) the name of the assignor;
        (2) the name of the assignee;
        (3) the date of assignment;
        (4) the terms of the assignment; and
        (5) any information requested by the division or the department.
    (e) If any part of a credit is assigned under this section, the assignor and the assignee shall report the assignment on their state tax returns for the year in which the assignment is made, in the manner prescribed by the department.

SOURCE: IC 6-3.1-16-13.7; (08)IN1183.1.7. -->     SECTION 7. IC 6-3.1-16-13.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 13.7. The holder of a credit that is assigned in conformity with this chapter is entitled to a credit against the holder's state tax liability to the same extent as if the holder were the person to which the credit was awarded.
SOURCE: IC 6-3.1-16-14; (08)IN1183.1.8. -->     SECTION 8. IC 6-3.1-16-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 14. The amount of tax credits allowed under this chapter may not exceed:
        (1) seven hundred fifty thousand dollars ($750,000) in the state fiscal year beginning July 1, 1997, and the state fiscal year beginning July 1, 1998; and
        (2) four hundred fifty thousand dollars ($450,000) in a state fiscal year that begins July 1, 1999, or thereafter, through the state fiscal year ending June 30, 2008; and
        (3) two million five hundred thousand dollars ($2,500,000) in a state fiscal year that begins July 1, 2008, or thereafter.

SOURCE: IC 6-3.1-16-6.1; (08)IN1183.1.9. -->     SECTION 9. IC 6-3.1-16-6.1 IS REPEALED [EFFECTIVE JULY 1, 2008].
SOURCE: ; (08)IN1183.1.10. -->     SECTION 10. [EFFECTIVE UPON PASSAGE] The department of state revenue or the department of natural resources may adopt temporary rules in the manner provided for the adoption of emergency rules under IC 4-22-2-37.1 to implement this act. A temporary rule adopted under this SECTION expires on the earliest of the following:
        (1) The date that the department of state revenue or the department of natural resources adopts another temporary rule under this SECTION that repeals, amends, or supersedes the previously adopted temporary rule.
        (2) The date that the department of state revenue or the department of natural resources adopts a permanent rule

under IC 4-22-2 that repeals, amends, or supersedes the previously adopted temporary rule.
        (3) The date specified in the temporary rule.
        (4) December 31, 2009.

SOURCE: ; (08)IN1183.1.11. -->     SECTION 11. An emergency is declared for this act.