Indiana Senate Bill SB0174

Indiana 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23

Caption

Indiana historic tax credits.

Impact

The legislation specifically amends the Indiana Code by adding Chapter 37 to IC 6-3.1, which outlines the eligibility requirements for the tax credit. To qualify, the expenses must relate to approved rehabilitation projects that adhere to guidelines set by the Department of Natural Resources. The minimum expense threshold is set at $5,000, which can include multiple projects combined to meet the criteria. The bill aims to enhance the attractiveness of rehabilitating historic structures, potentially revitalizing neighborhoods and promoting tourism, as well as honoring local heritage.

Summary

Senate Bill 0174 introduces a new tax credit in Indiana aimed at encouraging the rehabilitation of qualified historic structures. The bill allows qualified taxpayers to claim a credit equal to either 25% or 30% of expenses incurred in the rehabilitation process, depending on their tax-exempt status. For tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code, the credit is set at 30%. This incentive is designed to bolster efforts in preserving Indiana's historic properties while alleviating financial burdens from rehabilitation projects.

Contention

As with many tax incentive programs, there may be concerns regarding the allocation of public funds and the effectiveness of such credits in genuinely preserving historic sites versus merely benefiting private developers. Critics may argue about the potential misuse of these tax credits or point to previous instances where similar programs have seen mixed results in achieving their intended goals. Furthermore, proponents of the bill would highlight its role in fostering community identity and supporting conservation efforts as significant benefits.