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Category: Indiana

Indiana Credits & Other Credits

About Airport Development Zone Credit: 

Employment Expense Credit; Investment Cost Credit; Loan Interest Credit 

These credits has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Alternative Fuel Vehicle Manufacturer Credit

A credit is available for qualified investments made within Indiana that foster job creation, reduce dependency on foreign oil and reduce pollution.


A person who proposes a project to manufacture or assemble alternative fuel vehicles may apply to the Indiana Economic Development Corporation before the qualified investment is made. A certificate of verification from the IEDC must be enclosed when claiming the credit.

 

For additional information, contact the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis, IN 46204, call (317) 232-8800, or visit their website at http://iedc.in.gov.


Blended Biodiesel Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. 

 

Coal Gasification Technology Investment Credit

A credit may be available for a qualified investment in an integrated coal gasification power plant or a fluidized bed combustion technology. This credit is available to pass-through entities, such as members of partnerships and S corporations.

 

You must file an application for certification with the Indiana Economic Development Corporation (IEDC). For more information, contact the IEDC by visiting their website. Also, refer to Income Tax Information Bulletin #99.

 

Community Revitalization Enhancement District Credit

See the Schedule 6 line 3 instructions for details about this credit. This credit is available to offset both your state and local tax liabilities, and any unused remainder is available to be carried forward. Pass-through entities are eligible for this credit. If you did not use all of the available community revitalization enhancement district credit on Schedule 6, line 3, the remaining credit should be claimed on this line.
 


About Enterprise Zone Credits:
Certain areas within Indiana have been designated as enterprise zones. Enterprise zones are established to encourage investment and job growth in distressed urban areas. Current enterprise zones are located in portions of the following cities/locations.

 

Sole proprietors who operate and/or invest in a business located in a zone and pass-through entities are eligible to claim the enterprise zone employment expense credit and/or the enterprise zone loan interest credit. Contact the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis, IN, 46204.

 

1) Enterprise Zone Employment Expense Credit

This credit is based on qualified investments made within Indiana. It is the lesser of 10% of qualifying wages, or $1,500 per qualified employee, up to the amount of tax liability on income derived from the enterprise zone. For more information, please refer to the Income Tax Information Bulletin #66.

 

2) Enterprise Zone Investment Cost Credit

This credit is based on qualified investments made within Indiana. It can be up to a maximum of 30% of the investment, depending on the number of employees, the type of business and the amount of investment in an enterprise zone. For more information, please refer to the Income Tax Information Bulletin #66.

 

3) Enterprise Zone Loan Interest Credit

This credit can be for up to 5% of the interest received from all qualified loans made during a tax year for use in an Indiana enterprise zone. For more information, please refer to the Income Tax Information Bulletin #66.

 

Ethanol Production Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. 

 

Headquarters Relocation Credit

A business with annual worldwide revenue of $100 million, and at least 75 employees, that relocates its corporate headquarters to Indiana may be eligible for a credit. The credit may be as much as 50% of the cost incurred in relocating the headquarters. For more information, please refer to the Income Tax Information Bulletin #97.

 

Historic Building Rehabilitation Credit-

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Indiana’s Research Expense Credit

Indiana has a research expense credit that is similar to the federal credit for research and experimental expenses paid in carrying on your trade or business in Indiana. S corporations and partnerships may pass through the credit to their shareholders and partners. Enclose your schedule IN K-1 to support your claim.

 

A completed Form IT-20REC must be kept with your records as the Department can require you to provide this information. To get Form IT-20REC, please click here.

 

Individual Development Account Credit

A credit is available for contributions made to a community development corporation participating in an Individual Development Account (IDA) program. The organization must have an approved program number from the Indiana Housing and Community Development Authority before a contribution qualifies for pre-approval. S corporations and partnerships may take this credit and pass through the unused portion to their shareholders and partners.

 

To request additional information about the definitions, procedures and qualifications for obtaining this credit, contact the Indiana Housing and Community Development Authority at (317) 232-7777.

 

Keep the approval certification from IEDC or letter of assignment with your records as the Department can require you to provide this information.

 

Industrial Recovery Credit

This credit is based on a taxpayer’s qualified investment in a vacant industrial facility located in a designated industrial recovery site. If the Indiana Economic Development Corporation approves the application and the plan for rehabilitation, you are entitled to a credit based on the “qualified investment.” The minimum age for a facility to be eligible for this credit has been reduced from 20 years to 15 years. This credit is available to pass-through entities, such as members of partnerships and S corporations.

 

For additional information regarding the procedures for obtaining this credit, contact the Indiana Economic Development Corporation by calling (317) 232-8827 or by visiting their website.

 

Military Base Investment Cost Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Military Base Recovery Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Neighborhood Assistance Credit

If you made a contribution or engaged in activities to upgrade areas in Indiana, you may be able to claim a credit for this assistance. Contact the Indiana Housing & Community Development Authority, Neighborhood Assistance Program, 30 S. Meridian, Suite 1000, Indianapolis, IN 46204, telephone number (317) 232-7777, for more information. Pass-through entities are eligible for this credit.

 

Note: Do not report fees paid to your neighborhood association on this line. They are not eligible for this credit.

 

New Employer Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Public School Educator Expense Credit

If you are an eligible educator working for an Indiana school corporation, you may be entitled to a credit for qualified expenses paid for certain classroom supplies. The credit can be as much as $100 ($200 if married filing joint and both spouses meet the requirements, but not more than $100 each).

 

You are an eligible educator if, during the taxable year, you are employed as a Kindergarten -12 Indiana public school:


* Teacher
* Librarian
* Counselor
* Principal
* Superintendent

 

Public school means a school maintained by an Indiana school corporation, and includes charter schools. Private schools, parochial schools and homeschools are not public schools.


Qualified expenses are amounts you paid or incurred during the tax year for certain classroom supplies, which include books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health and physical education, expenses for supplies are qualified expenses only if related to athletics.


Important. Qualified expenses do not include certain expenses for professional development courses related to the curriculum, or to the students, that the educator teaches.


Reimbursements. You must reduce your expenses for the qualified supplies by any reimbursements you received that were not included in box 1 of your Form W-2.

 

Residential Historic Rehabilitation Credit

A credit is available for the repair and rehabilitation of historic residential property that is at least 50 years old and will be used as your primary residence. All work must meet the Secretary of the Interior’s Standards
for Rehabilitation of Historic Properties.

 

For more information about this credit, please refer to the Income Tax Information Bulletin #87. You can also visit the Department of Natural Resources, Historic Preservation and Archaeology Division website.

 

Riverboard Building Credit

This credit has been repealed. However, any previously approved yet unused credit is available to be claimed.

 

Venture Capitalist Investment Credit

A taxpayer that provides qualified investment capital to a qualified Indiana business may be eligible for this credit. Certification for this credit must be obtained from the Indiana Economic Development Corporation Development Finance Office, VCI Credit Program, One North Capitol, Suite 700, Indianapolis, IN 46204, telephone number (317) 232-8800, for more information.