Ind. Code § 6-1.1-12-18 – Deduction for rehabilitated residential real property; limitations; expiration

(a) This section applies only to:
1. (1) rehabilitation of residential real property that occurs before January 2, 2017; and
2. (2) property taxes imposed for an assessment date before January 1, 2025.
(b) If the assessed value of residential real property described in subsection (e) is increased because it has been rehabilitated, the owner may have deducted from the assessed value of the property an amount not to exceed the lesser of:
1. (1) the total increase in assessed value resulting from the rehabilitation (excluding an increase in assessed value that occurs after January 1, 2017); or
2. (2) eighteen thousand seven hundred twenty dollars ($18,720) per rehabilitated dwelling unit.
  The owner is entitled to this deduction annually for a five (5) year period, or if subsection (f) applies, the period established under subsection (f).
(c) For purposes of this section, the term "rehabilitation" means significant repairs, replacements, or improvements to an existing structure which are intended to increase the livability, utility, safety, or value of the property under rules adopted by the department of local government finance.
(d) For the purposes of this section, the term "owner" or "property owner" includes any person who has the legal obligation, or has otherwise assumed the obligation, to pay the real property taxes on the rehabilitated property.
(e) The deduction provided by this section applies only:
1. (1) for the rehabilitation of residential real property which is located within this state and which is described in one (1) of the following classifications:
  1. (A) A single family dwelling if before rehabilitation the assessed value (excluding any exemptions or deductions) of the improvements does not exceed thirty-seven thousand four hundred forty dollars ($37,440).
  2. (B) A two (2) family dwelling if before rehabilitation the assessed value (excluding exemptions or deductions) of the improvements does not exceed forty-nine thousand nine hundred twenty dollars ($49,920).
  3. (C) A dwelling with more than two (2) family units if before rehabilitation the assessed value (excluding any exemptions or deductions) of the improvements does not exceed eighteen thousand seven hundred twenty dollars ($18,720) per dwelling unit; and
2. (2) if the property owner:
  1. (A) owns the residential real property; or
  2. (B) is buying the residential real property under contract;
    on the assessment date of the year in which an application must be filed under section 20 of this chapter.
(f) A county, city, or town fiscal body may adopt an ordinance to establish a deduction period that is longer than five (5) years but not to exceed fifteen (15) years for any rehabilitated property covered by this section that has also been determined to be abandoned or vacant for purposes of IC 6-1.1-24 .
(g) This section expires January 1, 2027.
[Pre-1975 Property Tax Recodification Citations: 6-1-10.1-1; 6-1-10.1-3.]
Formerly: Acts 1975, P.L.47, SEC.1. As amended by Acts 1977, P.L.2, SEC.21; Acts 1977, P.L.67, SEC.1; P.L.6-1997, SEC.52; P.L.129-2001, SEC.2; P.L.90-2002, SEC.110; P.L.20-2004, SEC.7; P.L.144-2008, SEC.25; P.L.247-2015, SEC.3; P.L.181-2016, SEC.4; P.L.68-2025, SEC.32.