Indiana’s economic landscape is rich with business tax incentives for industrial rehabilitation. Qualified occupants and investors have the option of re-purposing “dinosaur buildings” in order to revitalize their operations.
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.
Calculation of Credit
A credit in the amount of the qualified investment multiplied by the following applicable percentage:
If a plant was placed in service between 15 and 29 years ago the applicable percentage is 15 percent
If a plant was placed in service between 30 and 39 years ago the applicable percentage is 20 percent
If a plant was placed 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
Financial Institutions Tax
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 15 years, with at least 50,000 interior square feet that has been at least 75 percent vacant for one year or more.
Industrial Recovery Tax Credit