Sec. 12. (a) If a recapture event occurs with respect to an Indiana qualified child care facility within five (5) years after the end of the taxable year in which a credit was allowed, the taxpayer is responsible for payment to the department of a recapture amount. The recapture amount is equal to the following:

(1) One hundred percent (100%) of the credit after the end of the first taxable year in which the credit was allowed.

(2) Eighty percent (80%) of the credit after the end of the second taxable year in which the credit was allowed.

(3) Sixty percent (60%) of the credit after the end of the third taxable year in which the credit was allowed.

(4) Forty percent (40%) of the credit after the end of the fourth taxable year in which the credit was allowed.

(5) Twenty percent (20%) of the credit after the end of the fifth taxable year in which the credit was allowed.

     (b) Any recapture tax liability must be reported by the taxpayer on the taxpayer’s annual state income tax return for the taxable year during which the use was converted.

     (c) A recapture event is not considered to have occurred as a result of a change in ownership of an Indiana qualified child care facility for which a credit was allowed under this chapter if, before the change in ownership transaction is completed, the person acquiring an interest in the facility agrees in writing to assume the liability of the taxpayer for any recapture amount that becomes owed. In the event of such an assumption, the person acquiring the interest in the facility shall be treated as the taxpayer for purposes of assessing any recapture liability that becomes owed due to a subsequent recapture event, computed as if there had been no change in ownership, and is responsible for payment to the department of the recapture amount.

As added by P.L.201-2023, SEC.103.