Indiana 2025 Regular Session

Indiana House Bill HB1018 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1018
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-37.3.
7	7	Synopsis: Old home repair tax credit. Allows a credit against a
8	8	qualified taxpayer's state tax liability in an amount equal to: (1) 20% of
9	9	the qualified expenditures that a taxpayer makes for the preservation
10	10	or rehabilitation of the taxpayer's residence; or (2) 55% of the qualified
11	11	expenditures that a taxpayer makes for the replacement of electrical
12	12	wiring and fixtures that were added to the property prior to 1940.
13	13	Provides that the property must be: (1) located in Indiana; (2) at least
14	14	85 years old; and (3) owned by the taxpayer. Provides that the
15	15	preservation or rehabilitation work must be completed in not more than
16	16	two years. Provides that the property must be principally used and
17	17	occupied by the taxpayer as the taxpayer's residence. Provides that
18	18	qualified expenditures for preservation or rehabilitation of the property
19	19	must exceed $5,500. Provides that the credit may be carried forward 15
20	20	years, but may not be carried back. Provides that the amount of credits
21	21	allowed may not exceed $100,000 in a state fiscal year. Provides that
22	22	a taxpayer that claims the credit may not also claim the residential
23	23	historic rehabilitation credit for the taxable year.
24	24	Effective: January 1, 2026.
25	25	Pierce K
26	26	January 8, 2025, read first time and referred to Committee on Ways and Means.
27	27	2025 IN 1018—LS 6005/DI 134 Introduced
28	28	First Regular Session of the 124th General Assembly (2025)
29	29	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
30	30	Constitution) is being amended, the text of the existing provision will appear in this style type,
31	31	additions will appear in this style type, and deletions will appear in this style type.
32	32	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
33	33	provision adopted), the text of the new provision will appear in this style type. Also, the
34	34	word NEW will appear in that style type in the introductory clause of each SECTION that adds
35	35	a new provision to the Indiana Code or the Indiana Constitution.
36	36	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
37	37	between statutes enacted by the 2024 Regular Session of the General Assembly.
38	38	HOUSE BILL No. 1018
39	39	A BILL FOR AN ACT to amend the Indiana Code concerning
40	40	taxation.
41	41	Be it enacted by the General Assembly of the State of Indiana:
42	42	1 SECTION 1. IC 6-3.1-37.3 IS ADDED TO THE INDIANA CODE
43	43	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
44	44	3 JANUARY 1, 2026]:
45	45	4 Chapter 37.3. Old Home Repair Tax Credit
46	46	5 Sec. 1. This chapter applies only to taxable years beginning after
47	47	6 December 31, 2025.
48	48	7 Sec. 2. (a) As used in this chapter, "preservation" means the
49	49	8 application of measures to sustain the form, integrity, and material
50	50	9 of:
51	51	10 (1) a building or structure; or
52	52	11 (2) the form and vegetative cover of property.
53	53	12 (b) The term includes stabilization work and the maintenance
54	54	13 of building materials.
55	55	14 Sec. 3. (a) As used in this chapter, "qualified expenditures"
56	56	15 means expenditures for the preservation or rehabilitation of a
57	57	16 structure that enables the structure to be principally used and
58	58	17 occupied by the taxpayer as the taxpayer's residence.
59	59	2025 IN 1018—LS 6005/DI 134 2
60	60	1 (b) The term does not include costs that are incurred to do the
61	61	2 following:
62	62	3 (1) Acquire a property or an interest in a property.
63	63	4 (2) Pay taxes due on a property.
64	64	5 (3) Enlarge an existing structure.
65	65	6 (4) Pay realtors' fees associated with a structure or property.
66	66	7 (5) Pay paving and landscaping costs.
67	67	8 (6) Pay sales and marketing costs.
68	68	9 Sec. 4. As used in this chapter, "rehabilitation" means the
69	69	10 process of returning a property to a state of utility through repair
70	70	11 or alteration that makes possible an efficient contemporary
71	71	12 residential use.
72	72	13 Sec. 5. As used in this chapter, "state tax liability" means a
73	73	14 taxpayer's total tax liability incurred under IC 6-3-1 through
74	74	15 IC 6-3-7 (the adjusted gross income tax) as computed after the
75	75	16 application of all credits that under IC 6-3.1-1-2 are to be applied
76	76	17 before the credit provided by this chapter.
77	77	18 Sec. 6. As used in this chapter, "taxpayer" means:
78	78	19 (1) an individual filing a single return; or
79	79	20 (2) a married couple filing a joint return.
80	80	21 Sec. 7. (a) Subject to sections 8, 11, and 12 of this chapter, a
81	81	22 taxpayer is entitled to a credit against the taxpayer's state tax
82	82	23 liability in the taxable year in which the taxpayer completes the
83	83	24 preservation or rehabilitation of a property.
84	84	25 (b) The amount of the credit is equal to:
85	85	26 (1) twenty percent (20%) of the qualified expenditures that
86	86	27 the taxpayer makes for the preservation or rehabilitation of
87	87	28 the property; or
88	88	29 (2) fifty-five percent (55%) of the qualified expenditures that
89	89	30 the taxpayer makes for the replacement of electrical wiring
90	90	31 and fixtures that were added to the property prior to 1940.
91	91	32 (c) In the case of a married couple who:
92	92	33 (1) own and rehabilitate a property jointly; and
93	93	34 (2) file separate tax returns;
94	94	35 the married couple may take the credit in equal shares or one (1)
95	95	36 spouse may take the whole credit.
96	96	37 Sec. 8. A taxpayer qualifies for a credit under section 7 of this
97	97	38 chapter if all of the following conditions are met:
98	98	39 (1) The property is:
99	99	40 (A) located in Indiana;
100	100	41 (B) at least eighty-five (85) years old; and
101	101	42 (C) except as provided in section 7(c) of this chapter,
102	102	2025 IN 1018—LS 6005/DI 134 3
103	103	1 owned by the taxpayer.
104	104	2 (2) The preservation or rehabilitation work is completed in
105	105	3 not more than two (2) years. The time in which work must be
106	106	4 completed begins when the physical work of construction or
107	107	5 destruction in preparation for construction begins.
108	108	6 (3) The property is principally used and occupied by the
109	109	7 taxpayer as the taxpayer's residence.
110	110	8 (4) The qualified expenditures for preservation or
111	111	9 rehabilitation of the property exceed five thousand five
112	112	10 hundred dollars ($5,500).
113	113	11 Sec. 9. To obtain a credit under this chapter, a taxpayer must
114	114	12 claim the credit on the taxpayer's annual state tax return or
115	115	13 returns in the manner prescribed by the department.
116	116	14 Sec. 10. For purposes of IC 6-3, the adjusted basis of the
117	117	15 structure shall be reduced by the amount of a credit granted under
118	118	16 this chapter.
119	119	17 Sec. 11. (a) If the credit provided by this chapter exceeds a
120	120	18 taxpayer's state tax liability for the taxable year for which the
121	121	19 credit is first claimed, the excess may be carried over to succeeding
122	122	20 taxable years and used as a credit against the tax otherwise due
123	123	21 and payable by the taxpayer under IC 6-3 during those taxable
124	124	22 years. Each time that the credit is carried over to a succeeding
125	125	23 taxable year, the credit is to be reduced by the amount that was
126	126	24 used as a credit during the immediately preceding taxable year.
127	127	25 The credit provided by this chapter may be carried forward and
128	128	26 applied to succeeding taxable years for fifteen (15) taxable years
129	129	27 following the unused credit year.
130	130	28 (b) A credit earned by a taxpayer in a particular taxable year
131	131	29 shall be applied against the taxpayer's tax liability for that taxable
132	132	30 year before any credit carryover is applied against that liability
133	133	31 under subsection (a).
134	134	32 (c) A taxpayer is not entitled to any carryback or refund of any
135	135	33 unused credit.
136	136	34 Sec. 12. (a) The amount of tax credits allowed under this chapter
137	137	35 may not exceed one hundred thousand dollars ($100,000) in a state
138	138	36 fiscal year beginning July 1, 2025, and ending June 30, 2026, and
139	139	37 each fiscal year thereafter.
140	140	38 (b) The department shall record the time of filing of each tax
141	141	39 return claiming the credit under section 9 of this chapter and shall
142	142	40 approve the credit if the taxpayer otherwise qualifies for a tax
143	143	41 credit under this chapter, in the chronological order in which the
144	144	42 tax return claiming the credit is filed in the state fiscal year.
145	145	2025 IN 1018—LS 6005/DI 134 4
146	146	1 (c) When the total credits approved under this section equal the
147	147	2 maximum amount allowable in any state fiscal year, no credits
148	148	3 thereafter filed for that same fiscal year shall be approved.
149	149	4 Sec. 13. A taxpayer that claims the credit under this chapter for
150	150	5 a taxable year may not claim the credit under IC 6-3.1-22 for the
151	151	6 taxable year.
152	152	7 Sec. 14. The department may adopt rules under IC 4-22-2 to
153	153	8 carry out this chapter.
154	154	2025 IN 1018—LS 6005/DI 134