Entitlement to credit; amount; assignment
Sec. 3. (a) Subject to section 5 of this chapter, a taxpayer is
entitled to a credit against the taxpayer's state and local tax liability
for a taxable year if the taxpayer makes a qualified investment in that
year.
(b) The amount of the credit to which a taxpayer is entitled is the
qualified investment made by the taxpayer during the taxable year
multiplied by twenty-five percent (25%).
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of property
redeveloped or rehabilitated under section 2 of this chapter. A credit
that is assigned under this subsection remains subject to this chapter.
(d) An assignment under subsection (c) must be in writing and
both the taxpayer and the lessee must report the assignment on their
state tax return for the year in which the assignment is made, in the
manner prescribed by the department. The taxpayer may not receive
value in connection with the assignment under subsection (c) that
exceeds the value of the part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability 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; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, or member of a pass through entity
is otherwise entitled under this chapter. However, a pass through
entity and an individual who is a shareholder, partner, or member of
the pass through entity may not claim more than one (1) credit for the
same investment.
(f) A taxpayer that is otherwise entitled to a credit under this
chapter for a taxable year may claim the credit regardless of whether
any income tax incremental amount or gross retail incremental
amount has been:
(1) deposited in the incremental tax financing fund established
for the community revitalization enhancement district; or
(2) allocated to the district.
As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003,
SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1.
Last modified: May 28, 2006