An Incentive for Housing Development
Developers and contractors building or rehabilitating housing in an established Enterprise Zone may be eligible to receive certain state tax incentives.
The developer or contractor must build or rehabilitate at least four single-family homes or at least one multi-family building containing three or more units in a certified Enterprise Zone.
The housing must, when completed and made available for occupancy, meet HUD Housing Quality Standards and local housing codes.
The housing project must be completed within two years of the start of construction or rehabilitation.
The local Enterprise Zone Commission and IEDA must approve the developer or contractor's application for Enterprise Zone program incentives prior to project initiation.
A refund of state sales, service or use taxes paid during construction.
An investment tax credit of up to a maximum of 10% of the investment directly related to the construction or rehabilitation of the housing.* The tax credit is based on the new investment used for the first $140,000 of value for each home or unit. This tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to seven additional years or until depleted, whichever occurs first.
*If the project is, in part, financed through federal, state and local government tax credits, grants and forgivable loans, these monies can not be included for purposes of calculating the investment tax credit.
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