Ind. Code ch. 6-3.1-9

in effect

Ind. Code § 6-3.1-9-1 Definitions

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; (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 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 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. As added by P.L.51-1984, SEC.1. Amended by P.L.21-1990, SEC.12; P.L.25-1993, SEC.10; P.L.192-2002(ss), SEC.99; P.L.4-2005, SEC.53; P.L.235-2005, SEC.95; P.L.1-2006, SEC.140; P.L.181-2006, SEC.44; P.L.1-2007, SEC.54; P.L.166-2014, SEC.11; P.L.124-2024, SEC.14.

Ind. Code § 6-3.1-9-2 Eligible persons; application for allocation of tax credits; approval

Sec. 2. (a) Each state fiscal year, 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 individuals who are ex-offenders who have completed the individuals' criminal sentences or are serving a term of probation or parole; 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 commissioner of revenue, may adopt rules for the approval or disapproval of these 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. As added by P.L.51-1984, SEC.1. Amended by P.L.4-2005, SEC.54; P.L.235-2005, SEC.96; P.L.1-2006, SEC.141; P.L.181-2006, SEC.45; P.L.1-2007, SEC.55; P.L.166-2014, SEC.12; P.L.124-2024, SEC.15.

Ind. Code § 6-3.1-9-3 Amount of credit; application; pass through entities; shareholders or partners of firms without tax liability

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 contributed by a business firm or person in a program the 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 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 contribution. As added by P.L.51-1984, SEC.1. Amended by P.L.25-1993, SEC.11; P.L.1-1994, SEC.29; P.L.192-2002(ss), SEC.100; P.L.124-2024, SEC.16.

Ind. Code § 6-3.1-9-4 Documentation for credit; form; contents; priority notification of credit allowable

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 authority, in the form that the authority may prescribe, documentation stating the amount of the contribution that would qualify for a tax credit, and the amount allocated to the business firm or person to be claimed as a credit. (b) The authority shall give priority in issuing tax credits to neighborhood organizations whose programs directly benefit enterprise zones. (c) The department shall promptly notify a business firm or person whether, or the extent to which, the tax credit is allowable in the state fiscal year in which the tax return claiming the credit is filed, as provided in section 5 of this chapter. (d) The department 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 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. As added by P.L.51-1984, SEC.1. Amended by P.L.4-2005, SEC.55; P.L.235-2005, SEC.97; P.L.1-2006, SEC.142; P.L.181-2006, SEC.46; P.L.1-2007, SEC.56; P.L.124-2024, SEC.17.

Ind. Code § 6-3.1-9-5 Amount of tax credits allowed

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 tax return claiming the credit under section 4 of this chapter and shall approve the credit if the business firm or person otherwise qualifies for a tax credit under this chapter, in the chronological order in which the 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 credits thereafter filed for that same fiscal year shall be approved. As added by P.L.51-1984, SEC.1. Amended by P.L.95-1995, SEC.1; P.L.64-1997, SEC.1; P.L.124-2024, SEC.18.

Ind. Code § 6-3.1-9-6 Allowable years of credit

Sec. 6. A tax credit shall be allowable under this chapter only for the taxable year of the taxpayer in which the contribution qualifying for the credit is paid or permanently set aside in a special account for the approved program or purpose. As added by P.L.51-1984, SEC.1.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026