Version b
Pass through entity; calculation of tax credit; shareholder or
partner claiming credit; refundable credits
Note: This version of section effective 7-1-2005. See also
preceding version of this section, effective until 7-1-2005.
Sec. 21. (a) If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder
or partner 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; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder or partner is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder or partner of a pass through entity is
otherwise entitled under a separate agreement under this chapter. A
pass through entity and a shareholder or partner of the pass through
entity may not claim more than one (1) credit under the same
agreement.
(c) Subsection (d) applies:
(1) only to a pass through entity that is a limited liability
company or a limited liability partnership owned wholly or in
part by an electric cooperative incorporated under IC 8-1-13;
and
(2) if, at the request of the pass through entity, the corporation
finds that the amount of the average wage to be paid by the pass
through entity will be at least double the average wage paid:
(A) in the county in which the project will be located, in the
case of an application submitted before January 1, 2006; or
(B) in the case of an application submitted after December
31, 2005:
(i) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in the
county in which the applicant's business is located, if there
is more than one (1) business in that NAICS industry
sector in the county in which the applicant's business is
located;
(ii) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in Indiana,
if the applicant's business is the only business in that
NAICS industry sector in the county in which the
applicant's business is located but there is more than one
(1) business in that NAICS industry sector in Indiana; or
(iii) to all employees working in the same county as the
county in which the applicant's business is located, if there
is no other business in Indiana in the same NAICS
industry sector to which the applicant's business belongs.
(d) The corporation may determine that:
(1) a credit shall be claimed by the pass through entity
described in subsection (c); and
(2) if the credit exceeds the pass through entity's state income
tax liability for the taxable year, the excess shall be refunded to
the pass through entity.
If the corporation grants a refund directly to a pass through entity
under this subsection, the pass through entity shall claim the refund
on forms prescribed by the department of state revenue.
As added by P.L.41-1994, SEC.1. Amended by P.L.81-2004, SEC.14;
P.L.4-2005, SEC.79; P.L.197-2005, SEC.10.
Last modified: May 28, 2006