Allocation of credit among shareholders, partners, and members
Effective 1-1-2006.
Sec. 20. (a) This section applies if a qualified investment is made
by a pass through entity or by taxpayers who are co-owners of an
integrated coal gasification powerplant.
(b) If the credit allowed by this chapter for a taxable year is
greater than the state tax liability of the pass through entity against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year in excess of the pass through entity's state tax
liability for the taxable year; multiplied by
(2) in the case of a pass through entity described in:
(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the
percentage of the pass through entity's distributive income to
which the shareholder, partner, or member is entitled; and
(ii) section 9(5) or 9(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.
(c) If an integrated coal gasification powerplant is co-owned by
two (2) or more taxpayers, the amount of the credit that may be
allowed to a co-owner in a taxable year is equal to:
(1) the tax credit determined under sections 15 and 16 of this
chapter with respect to the total qualified investment in the
integrated coal gasification powerplant; multiplied by
(2) the co-owner's percentage of ownership in the integrated
coal gasification powerplant.
(d) The amount of an annual installment of the credit allowed to
a shareholder, partner, or member of a pass through entity or a
co-owner shall be determined under section 16 of this chapter
modified as follows:
(1) Section 16(b) STEP ONE (A) of this chapter shall be based
on the percentage of the credit allowed to the shareholder,
partner, member, or co-owner under this section.
(2) Section 16(b) STEP ONE (B) of this chapter shall be based
on the:
(A) state tax liability; or
(B) utilities receipts tax liability;
of the shareholder, partner, member, or co-owner.
As added by P.L.191-2005, SEC.15.
Last modified: May 28, 2006