in-20250625-IR-045250315NRA: DEPARTMENT OF REVENUE

1. The historic property is located in Indiana, is at least 50 years old, and is owned by the taxpayer.

2. The Office of Community and Rural Affairs (OCRA) with the assistance of the Division of Historic Preservation and Archeology of the Department of Natural Resources certifies that the historic property is listed in the register of Indiana historic sites and historic structures. 3. OCRA certifies that the taxpayer submitted a proposed preservation or rehabilitation plan to OCRA that complies with the standards of the OCRA. 4. OCRA certifies that the preservation or rehabilitation work that is subject to the credit substantially complies with the proposed plan. 5. The preservation or rehabilitation work is completed in not more than 2 years, or if the preservation or rehabilitation plan is being completed in phases, within 5 years. 6. The historic property is principally used and occupied by the taxpayer as the taxpayer’s residence. LIMITATION OF THE TAX CREDIT The qualified expenditures for preservation or rehabilitation of the historic property must exceed $10,000. The tax credit is equal to the lesser of $10,000 or 20% of the qualified expenditures that the taxpayer makes for the preservation or rehabilitation of the historic property. The total amount of all credits for all taxpayers may not exceed $250,000 in a state fiscal year (July 1 through June 30). NOTE: The $10,000 limitation is effective July 1, 2025. Prior fiscal years allowed a 20% credit without limitation for the taxpayer except for the global $250,000 credit limit. Once the total credits approved by OCRA in a state fiscal year equal $250,000 in the state fiscal year, OCRA cannot approve any additional applications for the credit in that state fiscal year. If the $250,000 credit is close to being exhausted, and a credit that would otherwise be approved would result in exceeding the $250,000 maximum amount, OCRA can approve a portion of the credit up to the $250,000 maximum amount. The remainder would not be approved. PROCEDURE TO CLAIM THE CREDIT The taxpayer shall claim the credit on the taxpayer’s annual state income tax return. The taxpayer shall submit to the department the certifications approved by OCRA. If the credit exceeds the taxpayer’s state income tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit during those taxable years. The credit may be carried forward and applied to succeeding taxable years for 15 years following the unused credit year. A taxpayer is not entitled to a refund or carryback of any unused credit. RECAPTURE OF CREDIT CLAIMED The Residential Historic Building Tax Credit shall be recaptured from the taxpayer if the property is transferred within 5 years of the completion of the certified preservation or rehabilitation work. The credit will also be recaptured if additional modifications to the property are undertaken that do not meet the standards of OCRA within 5 years of completion of the certified preservation or rehabilitation work. If the recapture of a credit is required, an amount equal to the credit recaptured shall be added to the tax liability of the taxpayer for the taxable year during which the credit is recaptured. If you have any questions concerning this bulletin, please contact the Tax Policy Division at taxpolicy@dor.in.gov. _________________________

M. Kevin Gulley

Commissioner Indiana Department of Revenue Replaces Bulletin Document: 20240124-IR-045240038NRA