Legislation introduced in the Indiana state Senate would create a state historic tax credit (HTC). S.B. 478 would create a state credit worth 30% of qualified rehabilitation expenditures (QREs) for nonprofit properties that don’t produce income. All other historic rehabilitations would receive a 25% state HTC. The credit could be carried forward up to 10 years. There would be a $10 million annual cap and the credit would expire Jan. 1, 2033. Indiana currently has a residential HTC only.

The Novogradac Introduction to Historic Tax Credits booklet provides an introduction to the HTC, including the interaction of state and federal credits.