APPENDIX B: FUNDING SOURCES

Investment Tax Credit Program

http://www.in.gov/dnr/historic/3680.htm

The federal government offers Income tax credits for privately owned and funded historic preservation activities. These Rehabilitation Investment Tax Credit (RITC) equal 20% of rehabilitation costs for qualified work at income-producing properties that are certified historic buildings. Eligible properties include commercial buildings, factories, or even old houses but they must be income producing, such as rental properties.

A taxpayer should claim the federal tax credit in the tax year during which the building (or phase of project) is placed in service. The program permits carryover of unused credit to subsequent tax years. The Indiana RITC is also limited to a maximum credit of $100,000 per project. The taxpayer has up to 30 months following the claim of a federal tax credit to complete the certification that the project meets the Secretary of the Interior’s Standards. However, the Part 1 application, Determination of Eligibility, must have been submitted prior to filing the credit claim. The program requires that the completed project be certified as complete before a tax claim may be submitted.

THE LAND & WATER CONSERVATION FUND (LWCF)

http://www.in.gov/dnr/outdoor/4071.htm

The Land and Water Conservation Fund was passed by Congress in 1965 to assist eligible governmental units in the provision of new park areas. Fund applicants may request amounts ranging from a minimum of $10,000 up to a maximum of $200,000. If any changes are made to the manual/application they will be posted by March 1. Applications are available online or upon request from the Division of Outdoor Recreation. Only park and recreation boards established under Indiana law are eligible. The park and recreation board must also have a current 5-year master plan for parks and recreation on file, approved at the Division of Outdoor Recreation.

INDIANA FINANCE AUTHORITY (IFA) PROGRAMS

The Indiana Finance Authority offers several financial programs and incentives to businesses, manufacturing facilities and communities.

Indiana Brownfields Program http://www.in.gov/ifa/brownfields/index.htm

The Indiana Brownfields Program encourages and assists investment in the redevelopment of brownfield properties by helping communities via educational, financial, technical and legal assistance to identify and mitigate environmental barriers that impede local economic growth.

State Revolving Fund Loan Programs http://www.in.gov/ifa/srf/index.htm

The State Revolving Fund (SRF) Loan Programs provide low-interest loans to Indiana communities for projects that improve wastewater and drinking water infrastructure.

Tax-Exempt Bond Programs http://www.in.gov/ifa/2342.htm

The IFA is authorized to issue tax-exempt bonds, which lower the cost of financing for manufacturing projects, health care facilities, private institutions of higher education and certain other qualified projects. In order to qualify for tax-exempt financing, an applicant that is not a 501(c)(3) must first be awarded “Volume Cap.” Indiana is allotted annually a specific amount of Volume Cap that may be awarded to qualified applicants for the purpose of issuing tax-exempt bonds. Tax-exempt bonds are often structured similarly to a term loan or mortgage, and the interest rates vary based on the company’s financial situation, credit enhancements, method of sale of bonds and the current market.

APPENDIX B: FUNDING SOURCES

Volume Cap Program (prerequisite for tax-exempt financing through IFA)

The IFA awards Volume Cap to applicants within Indiana’s allotted capacity to issue tax-exempt private activity bonds. Volume Cap is competitively awarded based on jobs created and/or retained, wages, capital investment, project location, dedication to low-income housing and other factors. A borrower who is not a 501(c)(3) must be awarded Volume Cap before issuing bonds through the IFA.

Large Bond Program (for lower-interest borrowing of amounts more than $3M)

Applicants who need to issue more than $3 million in bonds can utilize the IFA through this program. Also known as Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs), these private activity bonds are issued by state or local government entities for the benefit of a private company.

Small Bond Program (for lower-interest borrowing of amounts $3M or less)

Applicants who need to issue $3 million or less in bonds can utilize the IFA’s Small Bond Program. The bonds can be used for costs related to manufacturing, agriculture and nonprofit organizations such as charter schools.

Indiana Landmarks

http://www.indianalandmarks.org/Resources/Pages/GrantsLoans.

aspx

Endangered Places Grants

Indiana Landmarks’ makes Endangered Places Grants available to nonprofit organizations to rescue and restore jeopardized historic properties.

Efroymson Family Endangered Places Grants

Through the Efroymson Family Endangered Places Grant Fund, Indiana Landmarks’ makes grants available to nonprofit organizations for professional architectural and engineering feasibility studies and