Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 260
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 1.7. (a) As used in this chapter, "community based
organization" means a private, nonprofit corporation whose board
of directors is comprised of business, civic, and community leaders,
and whose principal purpose includes the provision of low income
housing.
(b) A community based organization shall not be construed to
have the same powers as a community development corporation.
SECTION 2. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 4. As used in this chapter, "fund"
refers to an individual development account fund established by a
community development corporation or community based
organization under section 13 of this chapter.
SECTION 3. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. As used in this chapter, "individual
development account" means an account in a financial institution
administered by a community development corporation or community
based organization that allows a qualifying individual to deposit
money:
(1) to be matched by the state, financial institutions, corporations,
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and other entities; and
(2) that will be used by the qualifying individual for one (1) or
more of the following:
(A) To pay for costs (including tuition, laboratory costs, books,
computer costs, and other costs associated with attendance) at
an accredited postsecondary educational institution or a
vocational school that is not a postsecondary educational
institution, for the individual or for a dependent of the
individual.
(B) To pay for the costs (including tuition, laboratory costs,
books, computer costs, and other costs) associated with an
accredited or a licensed training program that may lead to
employment for the individual or for a dependent of the
individual.
(C) To purchase a primary residence located in Indiana for the
individual or for a dependent of the individual or to reduce the
principal amount owed on a primary residence located in
Indiana that was purchased by the individual or a dependent of
the individual with money from an individual development
account.
(D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
of the individual's primary residence located in Indiana.
(E) To begin or to purchase part or all of a business based in
Indiana or to expand an existing small business based in
Indiana.
(F) Subject to section 8(b) of this chapter, to purchase a motor
vehicle.
SECTION 4. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 7. (a) A qualifying individual, including an
individual who:
(1) established an individual development account under this
chapter before July 1, 2001; and
(2) held the account described in subdivision (1) for less than four
(4) years;
may establish an account by applying at a community development
corporation or community based organization after June 30, 2001.
(b) At the time of establishing an account under this section, the
qualifying individual must name a beneficiary to replace the qualifying
individual as the holder of the account if the qualifying individual dies.
If the beneficiary:
(1) is a member of the qualifying individual's family, all funds in
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the account remain in the account; and
(2) is not a member of the qualifying individual's family, all funds
in the account provided by the state revert to the state.
The qualifying individual may change the name of the beneficiary at
the qualifying individual's discretion. A beneficiary who becomes the
holder of an account under this subsection is subject to this chapter and
rules adopted under this chapter regarding withdrawals from the
account.
(c) Only one (1) member of a qualifying individual's household may
establish an account.
(d) A qualifying individual shall maintain residency in Indiana until
the individual development account is closed.
SECTION 5. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 8. (a) A community development corporation or
community based organization shall do the following:
(1) Determine whether an individual who wants to establish an
account is a qualifying individual.
(2) Administer, through a financial institution, and act as trustee
for each account established through the community development
corporation or community based organization.
(3) Approve or deny an individual's request to make a withdrawal
from the individual's account.
(4) Provide or arrange for training in money management,
budgeting, and related topics for each individual who establishes
an account.
(b) A community development corporation or community based
organization may approve a qualifying individual's request to make a
withdrawal from an account to purchase a motor vehicle if the purpose
of the purchase is primarily to transport the individual to and from
work, postsecondary education, or an accredited or licensed training
program intended to lead to employment of the individual or a
dependent of the individual.
SECTION 6. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 9. (a) An individual may deposit money from the
individual's earned income into the individual's account.
(b) An individual may deposit an unlimited amount of money into
the individual's account, However, only eight hundred of which the
first one thousand five hundred dollars ($800) ($1,500) annually is
eligible for a state deposit as provided in section 12 of this chapter.
SECTION 7. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
SEA 260 — CC 1 4
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 10. (a) Not more than eight hundred (800)
accounts may be established in the state each state fiscal year
beginning before July 1, 2009.
(b) Not more than one thousand (1,000) accounts may be
established in the state each state fiscal year beginning after June 30,
2009.
(c) A community development corporation or community based
organization shall use money that is in an individual development
account fund established under section 13 of this chapter to allow a
qualified individual on a waiting list maintained by the community
development corporation or community based organization to
establish an account.
SECTION 8. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 11. (a) Each community development corporation
or community based organization shall annually provide the
authority with information needed to determine:
(1) the number of accounts administered by the community
development corporation or community based organization;
(2) the length of time each account under subdivision (1) has been
established; and
(3) the amount of money an individual has deposited into each
account under subdivision (1). during the preceding twelve (12)
months.
(b) The authority shall use the information provided under
subsection (a) to deposit the correct amount of money into each
account as provided in section 12 of this chapter.
SECTION 9. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 12. (a) The authority shall allocate, for each
account that has been established, for not more than five (5) years,
three dollars ($3) for each one dollar ($1) of the first four one
thousand five hundred dollars ($400) ($1,500) an individual deposited
into the individual's account. during the preceding twelve (12) months.
However, if the amount appropriated by the general assembly is
insufficient to make the deposits required by this section for accounts
that have been established, the authority shall proportionately reduce
the amounts allocated to and deposited into each account. The authority
may allocate three dollars ($3) for each one dollar ($1) of any part of
an amount above four hundred dollars ($400) an individual deposited
into the individual's account during the preceding twelve (12) months.
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However, The authority's allocation under this subsection may not
exceed two four thousand four five hundred dollars ($2,400) ($4,500)
for each account described in this subsection.
(b) The authority shall deposit into each account established under
this chapter the appropriate amount of money determined under this
section.
(c) Money from a federal block grant program under Title IV-A of
the federal Social Security Act may be used by the state to provide
money under this section for deposit into an account held by an
individual who receives assistance under IC 12-14-2.
SECTION 10. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 13. (a) Each community development corporation
or community based organization may apply to the authority for an
allocation of tax credits under IC 6-3.1-18 for the contributors to a fund
established under this section. A community development corporation
or community based organization may establish an individual
development account fund to provide money to be used to finance
additional accounts to be administered by the community development
corporation or community based organization under this chapter and
to help pay for the community development corporation's or
community based organization's expenses related to the
administration of accounts.
(b) Each community development corporation or community based
organization shall encourage individuals, financial institutions,
corporations, and other entities to contribute to the fund. A contributor
to the fund may qualify for a tax credit as provided under IC 6-3.1-18.
(c) Each community development corporation or community based
organization may use up to twenty percent (20%) of the first one
hundred thousand dollars ($100,000) deposited each calendar year in
the fund under subsection (b) to help pay for the community
development corporation's or community based organization's
expenses related to the administration of accounts established under
this chapter. All deposits in the fund under subsection (b) of more than
one hundred thousand dollars ($100,000) during each calendar year
may be used only to fund accounts administered by the community
development corporation or community based organization under
this chapter.
(d) A community development corporation or community based
organization may allow an individual to establish a new account as
adequate funding becomes available.
(e) Only money from the fund may be used to make the deposit
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described in subsection (f) into an account established under this
section.
(f) The community development corporation or community based
organization shall annually deposit at least three dollars ($3) into each
account for each one dollar ($1) an individual has deposited into the
individual's account as of June 30.
(g) A community development corporation or community based
organization may not allow a qualifying individual to establish an
account if the community development corporation or community
based organization does not have adequate funds to deposit into the
account under subsection (f).
SECTION 11. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 15. (a) An individual must request and receive
authorization from the community development corporation or
community based organization that administers the individual's
account before withdrawing money from the account for any purpose.
(b) An individual who is denied authorization to withdraw money
under subsection (a) may appeal the community development
corporation's or community based organization's decision to the
authority under rules adopted by the authority under IC 4-22-2.
SECTION 12. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 16. (a) Money withdrawn from an individual's
account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
money is used for at least one (1) of the following:
(1) To pay for costs (including tuition, laboratory costs, books,
computer costs, and other costs) at an accredited postsecondary
educational institution or a vocational school that is not a
postsecondary educational institution for the individual or for a
dependent of the individual.
(2) To pay for the costs (including tuition, laboratory costs, books,
computer costs, and other costs) associated with an accredited or
a licensed training program that may lead to employment for the
individual or for a dependent of the individual.
(3) To purchase a primary residence located in Indiana for the
individual or for a dependent of the individual or to reduce the
principal amount owed on a primary residence located in Indiana
that was purchased by the individual or a dependent of the
individual with money from an individual development account.
(4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
the individual's primary residence located in Indiana.
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(5) To begin or to purchase part or all of a business based in
Indiana or to expand an existing small business based in Indiana.
(6) Subject to section 8(b) of this chapter, to purchase a motor
vehicle.
(b) At the time of requesting authorization under section 15 of this
chapter to withdraw money from an individual's account under
subsection (a)(5), the individual must provide the community
development corporation or community based organization with a
business plan that:
(1) has been approved by a financial institution or is approved by
the community development corporation or community based
organization;
(2) includes a description of services or goods to be sold, a
marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an
experienced business advisor.
SECTION 13. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 18. (a) Each community development corporation
or community based organization shall annually:
(1) evaluate the individual development accounts administered by
the community development corporation or community based
organization; and
(2) submit a report containing the evaluation information to the
authority.
(b) Two (2) or more community development corporations or
community based organizations may work together in carrying out
the purposes of this chapter.
SECTION 14. IC 6-3.1-9-1, AS AMENDED BY P.L.166-2014,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) As used in this chapter, "authority" means
the Indiana housing and community development authority established
by IC 5-20-1-3.
(b) As used in this chapter, "business firm" means any business
entity authorized to do business in the state of Indiana that has state tax
liability.
(c) As used in this chapter, "community services" means any type
of:
(1) counseling and advice;
(2) emergency assistance;
(3) medical care;
(4) recreational facilities;
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(5) housing facilities; or
(6) economic development assistance;
provided to individuals, economically disadvantaged households,
groups, or neighborhood organizations in an economically
disadvantaged area or provided to individuals who are ex-offenders
who have completed the individuals' criminal sentences or are serving
a term of probation or parole.
(d) As used in this chapter, "crime prevention" means any activity
which aids in the reduction of crime in an economically disadvantaged
area or an economically disadvantaged household.
(e) As used in this chapter, "economically disadvantaged area"
means an enterprise zone, or any other federally or locally designated
economically disadvantaged area in Indiana. The certification shall be
made on the basis of current indices of social and economic conditions,
which shall include but not be limited to the median per capita income
of the area in relation to the median per capita income of the state or
standard metropolitan statistical area in which the area is located.
(f) As used in this chapter, "economically disadvantaged household"
means a household with an annual income that is at or below eighty
percent (80%) of the area median income or any other federally
designated target population.
(g) As used in this chapter, "education" means any type of scholastic
instruction or scholarship assistance to an individual who:
(1) resides in an economically disadvantaged area; or
(2) is an ex-offender who has completed the individual's criminal
sentence or is serving a term of probation or parole;
that enables the individual to prepare for better life opportunities.
(h) As used in this chapter, "enterprise zone" means an enterprise
zone created under IC 5-28-15.
(i) As used in this chapter, "job training" means any type of
instruction to an individual who:
(1) resides in:
(A) an economically disadvantaged area; or
(B) an economically disadvantaged household; or
(2) is an ex-offender who has completed the individual's criminal
sentence or is serving a term of probation or parole;
that enables the individual to acquire vocational skills so that the
individual can become employable or be able to seek a higher grade of
employment.
(j) As used in this chapter, "neighborhood assistance" means either:
(1) furnishing financial assistance, labor, material, and technical
advice to aid in the physical or economic improvement of any part
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or all of an economically disadvantaged area; or
(2) furnishing technical advice to promote higher employment in
any neighborhood in Indiana.
(k) As used in this chapter, "neighborhood organization" means any
organization, including but not limited to a nonprofit development
corporation doing both of the following:
(1) Performing community services:
(A) in an economically disadvantaged area;
(B) for an economically disadvantaged household; or
(C) for individuals who are ex-offenders who have completed
the individuals' criminal sentences or are serving a term of
probation or parole.
(2) Holding a ruling:
(A) from the Internal Revenue Service of the United States
Department of the Treasury that the organization is exempt
from income taxation under the provisions of the Internal
Revenue Code; and
(B) from the department of state revenue that the organization
is exempt from income taxation under IC 6-2.5-5-21.
(l) As used in this chapter, "person" means any individual subject
to Indiana gross or adjusted gross income tax.
(m) As used in this chapter, "state fiscal year" means a twelve (12)
month period beginning on July 1 and ending on June 30.
(n) As used in this chapter, "state tax liability" means the taxpayer's
total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
(2) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter.
(o) As used in this chapter, "tax credit" means a deduction from any
tax otherwise due and payable under IC 6-3 or IC 6-5.5.
SECTION 15. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) Each state fiscal year, a business firm or
a person who contributes to a neighborhood organization that engages
in the activities of providing:
(1) neighborhood assistance, job training, or education for
individuals not employed by the business firm or person;
(2) community services or crime prevention in an economically
disadvantaged area; or
(3) community services, education, or job training services to
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individuals who are ex-offenders who have completed the
individuals' criminal sentences or are serving a term of probation
or parole;
shall receive a tax credit as provided in section 3 of this chapter if the
authority approves the proposal of the business firm or person, setting
forth the program to be conducted, the area selected, the estimated
amount to be invested in the program, and the plans for implementing
the program. may apply to the authority for an allocation of state
tax credits available under this chapter to be used to provide a tax
credit to a business firm or person that contributes to a program
involving one (1) or more of the activities described in subdivisions
(1) through (3).
(b) The authority, after consultation with the community services
agency and the commissioner of revenue, may adopt rules for the
approval or disapproval of these proposals. applications.
(c) A business firm or a person that contributes to the fund of a
neighborhood organization that has been approved by the
authority for an allocation of tax credits as described in subsection
(a) shall receive a tax credit as provided in section 3 of this chapter
if the neighborhood organization has agreed to issue a portion of
the tax credits allocated to the neighborhood organization by the
authority to the business firm or person.
SECTION 16. IC 6-3.1-9-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Subject to the
limitations provided in subsection (b) and sections 4, 5, and 6 of this
chapter, the department shall grant a tax credit against any state tax
liability due equal to fifty percent (50%) of the amount invested
contributed by a business firm or person in a program the proposal
application for which was approved under section 2 of this chapter.
(b) The credit provided by this chapter shall only be applied against
any state tax liability owed by the taxpayer after the application of any
credits, which under IC 6-3.1-1-2 must be applied before the credit
provided by this chapter. In addition, the tax credit which a taxpayer
receives under this chapter may not exceed twenty-five thousand
dollars ($25,000) for any taxable year of the taxpayer.
(c) If a business firm that is:
(1) exempt from adjusted gross income tax (IC 6-3-1 through
IC 6-3-7) under IC 6-3-2-2.8(2); or
(2) a partnership;
does not have any tax liability against which the credit provided by this
section may be applied, a shareholder or a partner of the business firm
is entitled to a credit against the shareholder's or the partner's liability
SEA 260 — CC 1 11
under the adjusted gross income tax.
(d) The amount of the credit provided by this section is equal to:
(1) the tax credit determined for the business firm for the taxable
year under subsection (a); multiplied by
(2) the percentage of the business firm's distributive income to
which the shareholder or the partner is entitled.
The credit provided by this section is in addition to any credit to which
a shareholder or partner is otherwise entitled under this chapter.
However, a business firm and a shareholder or partner of that business
firm may not claim a credit under this chapter for the same investment.
contribution.
SECTION 17. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 4. (a) The neighborhood organization, on
behalf of any business firm or person which desires to claim a tax
credit as provided in this chapter, shall file with the department,
authority, in the form that the department authority may prescribe, an
application documentation stating the amount of the contribution or
investment which it proposes to make which that would qualify for a
tax credit, and the amount sought allocated to the business firm or
person to be claimed as a credit. The application shall include a
certificate evidencing approval of the contribution or program by the
authority.
(b) The authority shall give priority in issuing certificates tax
credits to applicants neighborhood organizations whose
contributions or programs directly benefit enterprise zones.
(c) The department shall promptly notify an applicant a business
firm or person whether, or the extent to which, the tax credit is
allowable in the state fiscal year in which the application tax return
claiming the credit is filed, as provided in section 5 of this chapter. If
the credit is allowable in that state fiscal year, the applicant shall within
thirty (30) days after receipt of the notice file with the department of
state revenue a statement, in the form and accompanied by the proof of
payment as the department may prescribe, setting forth that the amount
to be claimed as a credit under this chapter has been paid to an
organization for an approved program or purpose, or permanently set
aside in a special account to be used solely for an approved program or
purpose.
(d) The department may disallow any credit claimed under this
chapter for which the statement or proof of payment is not filed within
the thirty (30) day period. shall consider documentation from the
authority as proof of payment, setting forth that the amount to be
SEA 260 — CC 1 12
claimed as a credit under this chapter has been paid to an
organization for an approved program or purpose, or permanently
set aside in a special account to be used solely for an approved
program or purpose.
SECTION 18. IC 6-3.1-9-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) The amount of
tax credits allowed under this chapter may not exceed two million five
hundred thousand dollars ($2,500,000) in the state fiscal year
beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
year thereafter.
(b) The department shall record the time of filing of each
application for allowance of a credit required tax return claiming the
credit under section 4 of this chapter and shall approve the
applications, credit if they the business firm or person otherwise
qualify qualifies for a tax credit under this chapter, in the chronological
order in which the applications are tax return claiming the credit is
filed in the state fiscal year.
(c) When the total credits approved under this section equal the
maximum amount allowable in any state fiscal year, no application
credits thereafter filed for that same fiscal year shall be approved.
However, if any applicant for whom a credit has been approved fails to
file the statement of proof of payment required under section 4 of this
chapter, an amount equal to the credit previously allowed or set aside
for the applicant may be allowed to any subsequent applicant in the
year. In addition, the department may, if the applicant so requests,
approve a credit application, in whole or in part, with respect to the
next succeeding state fiscal year.
SECTION 19. IC 6-3.1-18-0.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 0.3. As used in this chapter,
"authority" means the Indiana housing and community
development authority established by IC 5-20-1-3.
SECTION 20. IC 6-3.1-18-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 0.5. As used in this chapter,
"business firm" means any business entity authorized to do
business in the state of Indiana that has state tax liability.
SECTION 21. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 0.7. As used in this chapter,
"community based organization" has the meaning set forth in
IC 4-4-28-1.7.
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SECTION 22. IC 6-3.1-18-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this
chapter, "fund" refers to an individual development account fund
established by a community development corporation or community
based organization under IC 4-4-28-13.
SECTION 23. IC 6-3.1-18-4.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 4.3. As used in this chapter,
"person" means any individual subject to Indiana adjusted gross
income tax.
SECTION 24. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 4.5. As used in this chapter, "qualified
contribution" means a contribution to a fund for which a community
development corporation or community based organization has
received an allocation of tax credits under IC 4-4-28-13.
SECTION 25. IC 6-3.1-18-6, AS AMENDED BY P.L.50-2016,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 6. (a) Subject to the limitations provided in
subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the
department shall grant a tax credit against any state tax liability due
equal to fifty percent (50%) of the amount of a qualified contribution
made in a taxable year by a business firm or person or an individual
if the qualified contribution is not less than one hundred dollars ($100)
and not more than fifty thousand dollars ($50,000).
(b) The credit provided by this chapter shall only be applied against
any state tax liability owed by the taxpayer after the application of any
credits that under IC 6-3.1-1-2 must be applied before the credit
provided by this chapter.
SECTION 26. IC 6-3.1-18-9, AS AMENDED BY P.L.50-2016,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 9. (a) The community development corporation
or community based organization, on behalf of a business firm or
person that or an individual who desires to claim a tax credit as
provided in this chapter, shall file with the department, authority, in
the form approved by the department, authority, an application
documentation stating the amount of the qualified contribution that
the person or individual proposes to make would qualify for a tax
credit, and the amount sought allocated to the business firm or
person to be claimed as a credit.
(b) The department shall promptly notify an applicant a business
firm or person whether, or the extent to which, the tax credit is
SEA 260 — CC 1 14
allowable in the state fiscal year in which the application tax return
claiming the credit is filed, as provided in section 6 of this chapter. If
the credit is allowable in that state fiscal year, the applicant shall within
thirty (30) days after receipt of the notice file with the department a
statement, in the form and accompanied by the proof of payment of the
qualified contribution as the department may prescribe, setting forth
that the amount to be claimed as a credit under this chapter has been
paid through a qualified contribution as provided in section 6 of this
chapter.
(c) The department may disallow any credit claimed under this
chapter for which the statement or proof of payment is not filed within
the thirty (30) day period. shall consider documentation from the
authority as proof of payment, setting forth that the amount to be
claimed as a credit under this chapter has been paid to a
community development corporation or a community based
organization as a qualified contribution to the fund of the
community development corporation or the community based
organization fund for the current state fiscal year, or permanently
set aside in a special account to be used solely for this fund.
SECTION 27. IC 6-3.1-18-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) The amount of
tax credits allowed under this chapter may not exceed two hundred
thousand dollars ($200,000) in any state fiscal year.
(b) The department shall:
(1) record the time of filing of each application for allowance of
a tax return claiming the credit required under section 9 of this
chapter; and
(2) approve the applications, credit, if they the business firm or
person claiming the credit otherwise qualify qualifies for a tax
credit under this chapter, in the chronological order in which the
applications are tax return claiming the credit is filed in the
state fiscal year.
(c) When the total credits approved under this section equal the
maximum amount allowable in any state fiscal year, an application
filed after that time for the no credits thereafter filed for that same
fiscal year may not shall be approved. However, if an applicant for
whom a credit has been approved fails to file the statement of proof of
payment required under section 9 of this chapter, an amount equal to
the credit previously allowed or set aside for the applicant may be
allowed to any subsequent applicant in the year. In addition, the
department may, if the applicant so requests, approve a credit
application, in whole or in part, with respect to the next succeeding
SEA 260 — CC 1 15
state fiscal year.
SEA 260 — CC 1 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 260 — CC 1