2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 3.1. STATE TAX LIABILITY CREDITS
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.