Industrial Recovery Tax Credit

Description

The Industrial Recovery tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense. Industrial Recovery Tax Credit is established by I.C. 6-3.1-11.

Calculation of Credit

A credit in the amount of the qualified investment multiplied by the following applicable percentage:

• If a plant was in service between 20 and 29 years ago the applicable percentage is 15 percent
• If a plant was in service between 30 and 39 years ago the applicable percentage is 20 percent
• If a plant was in service at least 40 years ago, the applicable percentage is 25 percent

The tax credit may be carried over to the immediately following taxable years if the credit exceeds the taxpayer’s state tax liability.

The credit must be applied against the following in the order listed:

• Adjusted gross income tax liability
• Insurance premiums tax liability

Eligibility

This credit is open to occupants of or investors in industrial recovery sites consisting of a building or complex of buildings in service at least 20 years, with at least 250,000 interior square feet that has been at least 75 percent vacant for two years or more.