Indiana Code - Taxation - Title 6, Section 6-3.5-1.1-6

Credit for taxes imposed by governmental entities outside Indiana

Sec. 6. (a) Except as provided in subsection (b), if for a particular
taxable year a county taxpayer is liable for an income tax imposed by
a county, city, town, or other local governmental entity located
outside of Indiana, that county taxpayer is entitled to a credit against
his county adjusted gross income tax liability for that same taxable
year. The amount of the credit equals the amount of tax imposed by
the other governmental entity on income derived from sources
outside Indiana and subject to the county adjusted gross income tax.
However, the credit provided by this section may not reduce a county
taxpayer's county adjusted gross income tax liability to an amount
less than would have been owed if the income subject to taxation by
the other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a county
taxpayer to the extent that the other governmental entity provides for
a credit to the taxpayer for the amount of county adjusted gross
income taxes owed under this chapter.
(c) To claim the credit provided by this section, a county taxpayer
must provide the department with satisfactory evidence that he is
entitled to the credit.

As added by P.L.73-1983, SEC.2.

Last modified: May 28, 2006