Section 45 IAC 3.1-1-154 - Airport development zonesAuthority: IC 6-8.1-3-3; IC 8-22-3.5-15
Affected: IC 6-3; IC 8-22-3.5-3; IC 36-3-1
Sec. 154.
(a) A person who locates and operates a qualified airport development project in an airport development zone in a consolidated city shall not incur any adjusted gross income tax liability or supplemental net income tax liability as a result of the following activities: (1) Locating the project in the consolidated city.(2) The construction or completion of the project.(3) The employment of personnel or the ownership or rental of property at or in conjunction with the project.(4) The operation of the project or the activities at or in connection with the project. In other words, the person's apportionment factor will not change due to the completion or operation of the project. As an example, assume that the project is an airline maintenance facility. At the completion of the project, the facility is worth six hundred million dollars ($600,000,000). The payroll from operating the facility is two hundred million dollars ($200,000,000). The person also realizes fifty million dollars ($50,000,000) in its first year of operations from maintenance performed on airplanes belonging to other parties and from the sale of airplane parts delivered within the airport development zone. These amounts would not appear in either the numerator or the denominator of their respective factors. Also, the person will not be subject to adjusted gross income tax or supplemental net income tax on nonbusiness income earned by the person that is allocable to the airport development zone.
(b) As used in subsection (a), "qualified airport development project" has the same meaning as set forth in IC 8-22-3.5-3.(c) As used in subsection (a), "airport development zone" means an airport development zone created under IC 8-22-3.5.(d) As used in subsection (a), "consolidated city" means a city with a population of two hundred fifty thousand (250,000) or more that has become a consolidated city under IC 36-3-1.(e) The exemption provided by subsection (a) is effective for a period of thirty-five (35) years beginning January 1, 1991.Department of State Revenue; 45 IAC 3.1-1-154; filed Feb 25, 1995, 4:30 p.m.: 18 IR 1810