Eligibility

The credit is available to taxpayers that make qualified investments for the redevelopment or rehabilitation of property located within a revitalization district. Only those projects that the IEDC expects to have a positive return on investment will be considered. A taxpayer is not eligible for more than one of the following tax credits for the same project:

• Community revitalization enhancement district tax credit (CReED)

• Industrial recovery tax credit (DINO)

• Hoosier business investment tax credit (HBI)

• Enterprise zone investment cost credit

• Venture capital investment tax credit (VCI)

Eligibility Qualified Investment Costs

The applicant’s qualified investment must be made for the redevelopment or rehabilitation of property located within a CReED, pursuant to a plan adopted by an advisory commission on industrial development per Ind. Code 36-7-13, and approved by the IEDC before the expenditure is made. Eligible costs may include:

• Acquisition costs, when necessary for redevelopment or rehabilitation

• Architectural and engineering fees

• Construction management and demolition costs

• Environmental remediation costs
  FF&E, if nonmovable

• Permitting costs directly related to rehabilitation

• Other hard costs
  
  

Eligible costs do not include:

• Legal and accounting fees

• Developer fees

• Feasibility studies

• Property insurance

• FF&E, if movable

• Loan costs

• Other professional fees not directly related to rehabilitation  of the property

• Reserves

• Other soft costs

Calculation and Application of Credit

The credit amount is equal to the amount of qualified investment made by the taxpayer during the taxable year multiplied by 25%. The credit may be passed through (see Ind. Code 6-3.1-19-13).

The credit is applied against the taxpayer’s state or local tax liability, and may be carried forward to the immediately following taxable years.