Indiana Enterprise Zone Loan Interest Credit

Enterprise Zone Loan Interest Credit
Form Schedule LIC
Schedule LIC

Indiana Department of Revenue

Enterprise Zone
Loan Interest Tax Credit

State Form 21926
(R15 / 8-20)

			

For Tax Year Ending: Month_________ Year _______

Enclosure Sequence No. 28

(Enclose completed schedule with annual state tax liability return.)	
Section A - Taxpayer Information
Name of Taxpayer (lender)

Social Security Number or FEIN

Street Address

County

City or Town, State, and ZIP Code

Taxpayer’s Telephone Number

Section B - Qualified Loan Information (attach list of all borrowers) Section B continued on reverse side.
Name of Borrower (A)

Borrower’s Social Security Number or FEIN

Street Address

Borrower’s Telephone Number

City or Town, State, and ZIP Code
Date of Loan Origination:

Use of Loan (check one):

□ Business □ Personal

Location Name of Borrower’s Enterprise Zone

Section C - Report of Qualified Loans to Businesses by Enterprise Zone Locations
Summarize the number of qualified loans to businesses in each enterprise zone and the amount of interest received during the taxable year.
Enterprise Zone

(a)
Number of
Loans

(b)
Interest Income

Bedford

$

Bloomington

$

Connersville

$

East Chicago

$

Elkhart

$

Evansville

$

Ft. Harrison

$

Ft. Wayne

$

Frankfort

$

Hammond

$

Jeffersonville

$

Subtotal

$

Enterprise Zone

00
00
00
00
00
00
00
00
00
00
00
00

(C)
Number of
Loans

(d)
Interest Income

Lafayette

$

La Porte

$

Michigan City

$

Mitchell

$

New Albany

$

Portage

$

Richmond

$

River Ridge

$

Salem

$

South Bend

$

Vincennes

$

Subtotal

$

Section D - Credit for Qualified Loans for the Taxable Year

1.	Grand total of all qualified loans to businesses listed in Section C, columns (a) and (c).....................

1 $

2.	Total amount of loan interest income received from qualified loans in Section C, columns (b) and (d)..

2 $

3.	Amount of loan interest income received from other qualified nonbusiness loans made for home
improvements within all enterprise zones............................................................................................

3 $

4.	Total Loan Interest Credit - add amounts on lines 2 and 3; multiply result by 5 percent (.05).............

4 $

5.	Indicate for which tax type you are applying this credit. Enter net amount of tax you are offsetting:
a
Adjusted Gross Income Tax 	
b
Insurance Premium Tax or Nonprofit Agricultural
Organization Health Coverage Tax
c
Financial Institutions Tax
The tax offset may not exceed the amount of available credit from line 4.
Carry amount on line 5 to other credit line of your return.

□

□
□

6.	Unused amount of credit available for carryover - subtract line 5 from line 4 and complete Section E...

*24100000000*
24100000000

00
00
00
00
00
00
00
00
00
00
00
00
00
00
00
00

5 $

00

6 $

00

Section B - Qualified Loan Information Continued (Attach additional sheets if necessary.)
Name of Borrower (B)

Borrower’s Social Security Number or FEIN

Street Address

Borrower’s Telephone Number

City or Town, State, and ZIP Code
Use of Loan (Business or
Personal)

Date of Loan Origination

Location Name of Borrower’s Enterprise Zone

Name of Borrower (C)

Borrower’s Social Security Number or FEIN

Street Address

Borrower’s Telephone Number

City or Town, State, and ZIP Code
Use of Loan (Business or
Personal)

Date of Loan Origination

Location Name of Borrower’s Enterprise Zone

Name of Borrower (C)

Borrower’s Social Security Number or FEIN

Street Address

Borrower’s Telephone Number

City or Town, State, and ZIP Code
Use of Loan (Business or
Personal)

Date of Loan Origination

Location Name of Borrower’s Enterprise Zone

Section E - Enterprise Zone Interest Credit Carryover (814)
Enter the initial tax period in which the Enterprise Zone Loan Interest Credit was claimed.
Enter the remaining unused amount of credit from Section D, line 6.
Initial Tax Year Ending:
Month ________________ Year_________

Enterprise Zone Loan Interest Credit Available
for Carryforward from Section D, Line 6: $_______________________

Show how the unused credit is applied during the carryover period.
Unused Credit (column (5)) is to be placed on your return for the next tax year.
(1)
Credit Carryforward
1st Following Tax Year

(2)
Total
Amount of Tax

(3)
Type of Tax
Liability Reduced

(4)

(5)

Amount Applied

Unused Credit

__________

2nd Following Tax Year __________
3rd Following Tax Year

__________

4th Following Tax Year

__________

5th Following Tax Year

__________

6th Following Tax Year

__________

7th Following Tax Year

__________

8th Following Tax Year

__________

9th Following Tax Year

__________

10th Following Tax Year __________
Section F - Signature
I certify I have examined this schedule and, to the best of my knowledge and belief, the information contained in this schedule is true,
correct, and complete.
Signature of Taxpayer:_____________________________ 	Title______________________ 	

*24100000000*
24100000000

Date Signed:__________________

Instructions for Completing Schedule LIC
Indiana Code (IC) 6-3.1-7-2 provides that a taxpayer who is
in good standing with the Indiana Economic Development
Corporation is entitled to a state income tax credit of 5%
of the interest income received from qualified loans made
before January 1, 2018. To qualify, the loan proceeds must
be for purposes directly related to businesses located in
an enterprise zone or for improvements increasing the
assessed value of real property located in an enterprise
zone.* A qualified loan also means a loan made to an
individual or business that uses the loan proceeds toward
the rehabilitation, repair, or improvement of a residence
within an enterprise zone.
*An enterprise zone created under IC 5-28-15 or an airport development zone (code # 802) designated under
IC 8-22-3.5-14.
Who May File for This Credit?
For the purposes of eligibility, for the Loan Interest Credit,
a taxpayer in good standing is defined as an entity
conducting business operations within an enterprise zone
that:
1)	 Receives interest on a qualified loan made during
the tax year;
2)	 Pays the registration fee charged to zone
businesses under IC 5-28-15-5;
3)	 Provides the assistance to urban enterprise
associations required from zone businesses under
IC 5-28-15-5(b); and
4)	 Complies with any requirements adopted by the
board of the Indiana Economic Development
Corporation for taxpayers claiming the Enterprise
Zone Loan Interest Credit.
Note: If the taxpayer is located outside an enterprise zone,
the taxpayer is not required to reinvest its incentives within
the enterprise zone, other than complying with 2) and 3)
above.
How Often Can I Claim a Credit?
A claim for credit is filed annually for each qualified loan
or in combination with all qualified loans made during the
taxable year.
Section A - Taxpayer Information
1)	 Type or print lender’s name and address.
2)	 Enter lender’s Social Security Number or Federal
Employer Identification Number.
3)	 Enter Indiana county or O.O.S. (out-of-state).
4)	 Enter telephone number.

Section B - Qualified Loan Information
Enter the following information for each qualified loan,
or provide a combined listing of borrowers within every
enterprise zone. Attach additional sheets as necessary:
1)	 Enter the borrower’s name and location address
within the enterprise zone.
2)	 Enter the borrower’s Social Security Number or
Federal Employer Identification Number.
3)	 Enter the borrower’s telephone number.
4)	 Indicate the purpose of the loan (business or
personal home improvement) and the date of loan
origination.
5)	 Enter the name of the borrower’s enterprise zone
location.
Section C – Report of Qualified Loans to Businesses
by Enterprise Zone Locations
Summarize the number of qualified loans on which you
received interest during the taxable year according to the
enterprise zone in which the loan proceeds are used by the
business borrower(s) (listed in Section B).
Enter the total amount of interest income received
from qualified loans to businesses during the taxable
year attributed to the enterprise zone location of the
borrower(s), columns (a) and (c).
For purposes of the Loan Interest Credit, interest includes
service charges, time-price differentials, and all other
charges for the use of money. Interest received from
loans and lines of credit existing at the time an enterprise
zone was designated qualify for the credit if the proceeds
are used for a qualified purpose. Interest from mortgage
loans to acquire property does not qualify unless the
property is used for business purposes (including renting
or leasing). If the proceeds of a loan are used to both
acquire and improve real property and the acquisition is
not for a business purpose, only that portion of the interest
attributable to the improvement of the property would
qualify for the Loan Interest Credit. If the loan proceeds are
used to acquire business property which is subsequently
removed from an enterprise zone, only the interest received
while the property was used for a business purpose within
the enterprise zone would qualify for the credit.
Section D – Credit for Qualified Loans for
the Taxable Year
Line 1. Enter the grand total of all qualified loans to
businesses listed in Section C, columns (a) and (c).
Line 2. Enter the amount of loan interest income received
from businesses during the taxable year from qualified
loans listed in Section C, columns (b) and (d).

Line 3. Enter the total other loan interest income received
from nonbusiness loans made for the purposes of
rehabilitation, repair, or improvement of a residence or for
improvements that increase the assessed value of real
property located in any enterprise zone.
Line 4. Add the amount of business and nonbusiness
interest income and multiply the result by 5%.
Line 5. Indicate the state tax liability you wish to offset by
checking the appropriate tax type box and by entering the
net amount of your state tax liability. Note: The net amount
of tax entered on line 5 must be reduced by all other
applicable tax liability credits and may not be greater than
the amount on line 4. Carry the net amount of credit to be
used to your tax type return.
Line 6. Subtract line 5 from line 4. The result may not be
less than zero. If it’s greater than zero, carry the excess
unused amount of credit to Section E.
Section E – Enterprise Zone Loan Interest Carryover
Complete this section whenever there is a carryover
of unused Loan Interest Credit. The amount of credit
carryover from a taxable year shall be reduced to the extent
that the carryover is used by the taxpayer to obtain credit
against allowable state tax liabilities for any subsequent
taxable year. Carryover is allowed up to 10 years following
the date on which a qualified loan credit is claimed but not
beyond the phase-out period that terminates the enterprise
zone from which a qualified loan had originated.
Enter in each column the applicable date or amounts for
every succeeding taxable year in which a credit carryover
is used.
Section F – Signature
The taxpayer or an authorized agent must sign this
schedule.
Where Can I Claim This Credit?
The Loan Interest Credit can be applied as a credit against
the taxpayer’s adjusted gross income tax (IC 6-3-1 through
6-3-7), insurance premium tax (IC 27-1-18-2) or nonprofit
agricultural organization health coverage tax (IC 6-8-15),
and financial institution tax (IC 6-5.5). A copy of Schedule
LIC must be enclosed with the return; otherwise, the credit
will be disallowed. The credit amount calculated on the
LIC is to be taken as a credit against your tax liability on
the return in the order listed above after first applying other
credits allowed under IC 6-3.1-1-2. Use 3-digit code 814 to
identify this credit where applicable.

Refer to Income Tax Information Bulletin #66 at
www.in.gov/dor/legal-resources/tax-library/informationbulletins/income-tax-information-bulletins for additional
information. Please see the instructions for your tax return
to determine where the credit should be entered on the
various tax forms.
What if I Do Not Use All of My Credit?
Any unused credit may be carried over to the next eligible
tax return to be filed up to 10 years from the date of the
loan until all credit has been used or the enterprise zone
terminates.
Note: A taxpayer is not entitled to a carryback or refund of
any unused credit. The statute does allow the taxpayer to
carry forward any unused credit.
What if I Am an Entity Exempt from
Adjusted Gross Income Tax?
Entities exempt from adjusted gross income tax under
IC 6-3-2-2.8(2) may “pass through” the credit to
shareholders, partners, beneficiaries, or members of
the pass-through entity. A pass-through entity is an
S corporation, a partnership, a trust, a limited liability
company, or a limited liability partnership. Each member’s
tax credit is calculated by multiplying the total credit
available by the percentage of the entity’s distributive
income to which the shareholder, partner, beneficiary, or
member is entitled. The pro rata share of the calculated
credit is reported by the entity on each unit-holder’s
Schedule IN K-1. A copy of Schedule LIC or IN K-1 must be
enclosed with the return to claim your share of the credit.
Whom Do I Contact if I Have Questions
About the Enterprise Zone Loan Interest Credit?
Questions concerning enterprise zone income tax
provisions should be directed to:
Indiana Department of Revenue
Returns Processing Center
Corporate Income Tax Section
P.O. Box 7206
Indianapolis, IN 46207
(317) 232-0129
www.in.gov/dor
For questions concerning other provisions related
to enterprise zones and current locations within the
designated cities, contact:
Indiana Economic Development Corporation
1 N. Capitol Ave., Suite 700
Indianapolis, IN 46204
(317) 232-8800
www.iedc.in.gov