The Industrial Recovery Tax Credit, also known as the DINO tax credit for older buildings it benefits, provides an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses. The credit is established by Ind. Code 6-3.1-11.
The IEDC intends to partner with local government in the revitalization of qualified industrial sites; therefore, any award under this program likely will not exceed the financial support offered by the locality. The credit amount is equal to the amount of the qualified investment multiplied by the applicable percentage, which can range from 15-25% (see IC 6-3.1-11-1).
15 percent for a plant placed in service between 15 and 29 years ago
20 percent for a plant placed in service between 30 and 39 years ago
25 percent for a plant placed in service at least 40 years ago
The credit may be passed through per IC 6-3.1-11-24. The credit may be carried over to the immediately following taxable years if it exceeds the taxpayer’s state tax liability per IC 6-3.1-11-17. The credit is applied against the taxpayer’s state tax liability, in the following order: adjusted gross income tax liability, insurance premiums tax liability, and financial institutions tax.
An application must be approved before an investment is made. See the application for additional requirements. Download the application here or in the Additional Materials section (revised Jan. 2016).