Recapture tax; amount; reports; tax liability; change in use of
property
Sec. 4. (a) A taxpayer is liable for a recapture tax if qualified
property is converted to any use, other than the use contemplated in
the agreement, within three (3) years after the end of the taxable year
in which a tax credit was allowed for investment in that qualified
property. The recapture tax equals:
(1) seventy-five percent (75%) of the tax credit if the use is
converted not later than one (1) year after the end of the taxable
year in which the tax credit was allowed;
(2) fifty percent (50%) of the tax credit if the use is converted
after one (1) year and not later than two (2) years after the end
of the taxable year in which the tax credit was allowed; or
(3) twenty-five percent (25%) of the tax credit if the use is
converted after two (2) years and not later than three (3) years
after the end of the taxable year in which the tax credit was
allowed.
(b) Any recapture tax liability must be reported by the taxpayer on
his annual state income tax return for the taxable year during which
the use was converted.
(c) The commissioner of the department of correction shall report
any change in the use of qualified property to the department.
As added by P.L.51-1984, SEC.1.
Last modified: May 28, 2006