The Community Revitalization Enhancement District (CRED) Tax Credit provides an incentive for investment in community revitalization enhancement districts (Indiana Code 36-7-13). The credit is established by Indiana Code 6-3.1-19. Please note that the CRED tax credit is not the same as the CRED financing tool established under Indiana Code 36-7-13.

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 Indiana 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.

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.

For a list of eligible CREDs, please see the fact sheet here or in in the Additional Materials section.