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Legislation Introduced to Create Indiana State NMTC

Wednesday, January 18, 2023 - 12:45PM

The Indiana new markets tax credit (NMTC) would be created by a bill introduced in the state Legislature. H.B. 1455 would create a state NMTC worth 42% of the qualified equity investment (QEI), taken in seven annual installments at 6% by Indiana community development entities (CDEs) that receive federal NMTC allocation authority and are awarded allocation authority in the state. The legislation includes a statewide cap of $50 million in QEI authority and an additional $50 million in QEI authority in rural counties. The bill excludes businesses that derive at least 15% of their annual revenue from the rental or sale of real estate. The credit would be available for taxable years starting after Dec. 31, 2022.

The Novogradac Introduction to New Markets Tax Credits booklet provides an initiation into the workings of the NMTC.

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