Somerset CPAs and Advisors assists businesses apply for and navigate through the tax code to find applicable tax deductions and tax credits. One example is the Community Revitalization Enhancement District (CReED) tax credit. The CReED program offers up to 25% against the taxpayer’s state and local tax liability for a taxable year if the taxpayer makes a qualified investment in that year. The investment must be for the redevelopment or rehabilitation of property located within a designed district approved by the Indiana Department of Commerce. Areas that are now qualified districts are portions of Marion, South Bend, Fort Wayne, Anderson and Bloomington.

Qualified investments include:

  • Acquisition costs when necessary for redevelopment or rehabilitation
  • Architectural and engineering fees
  • Construction management and demolition costs
  • Environmental remediation costs
  • Furniture and fixture if movable
  • Roofing
  • Walls
  • Lighting
  • Heating/ Cooling Units
  • Buildings

The credit amount is equal to the amount of qualified investment made by the taxpayer during the taxable year multiplied by 25%. The credit is applied against the taxpayer’s state or local tax liability, and may be carried forward to the immediately following taxable years. The application for this credit is through the Indiana Economic Development Corporation and can be completed with the assistance of your Somerset tax advisor. Call us if your business plans to construct or rehab a property in Marion, South Bend, Fort Wayne, Anderson, or Bloomington, Indiana.