Taxes paid to other states
Sec. 3. (a) Whenever a resident person has become liable for tax
to another state upon all or any part of his income for a taxable year
derived from sources without this state and subject to taxation under
IC 6-3-2, the amount of tax paid by him to the other state shall be
credited against the amount of the tax payable by him. Such credit
shall be allowed upon the production to the department of
satisfactory evidence of the fact of such payment, except that such
application for credit shall not operate to reduce the tax payable
under IC 6-3-2 to an amount less than would have been payable were
the income from the other state ignored. The credit provided for by
this subsection shall not be granted to a taxpayer when the laws of
the other state, under which the adjusted gross income in question is
subject to taxation, provides for a credit to the taxpayer substantially
similar to that granted by subsection (b).
(b) Whenever a nonresident person has become liable for tax to
the state where he resides upon his income for the taxable year
derived from sources within this state and subject to taxation under
IC 6-3-2, the proportion of tax paid by him to the state where he
resides that his income subject to taxation under IC 6-3-2 bears to his
income upon which the tax so payable to the other state was imposed
shall be credited against the tax payable by him under IC 6-3-2, but
only if the laws of the other state grant a substantially similar credit
to residents of this state subject to income tax under the laws of such
other state, or impose a tax upon the income of its residents derived
from sources in this state and exempt from taxation the income of
residents of this state. No credit shall be allowed against the amount
of the tax on any adjusted gross income taxable under IC 6-3-2 that
is exempt from taxation under the laws of the other state.
(Formerly: Acts 1963(ss), c.32, s.303.) As amended by P.L.2-1988,
SEC.10.
Last modified: May 28, 2006