Amount of credit
Sec. 5. (a) Each year, an individual described in section 4 of this
chapter is entitled to a refundable credit against the individual's state
income tax liability in the amount determined under this section.
(b) In the case of an individual with earned income of less than
eighteen thousand dollars ($18,000) for the taxable year, the amount
of the credit is equal to the lesser of:
(1) three hundred dollars ($300); or
(2) the amount of property taxes described in section 4(a)(2) of
this chapter paid by the individual in the taxable year.
(c) In the case of an individual with earned income that is at least
eighteen thousand dollars ($18,000) but less than eighteen thousand
six hundred dollars ($18,600) for the taxable year, the amount of the
credit is equal to the lesser of the following:
(1) An amount determined under the following STEPS:
STEP ONE: Determine the result of:
(i) eighteen thousand six hundred dollars ($18,600); minus
(ii) the individual's earned income for the taxable year.
STEP TWO: Determine the result of:
(i) the STEP ONE amount; multiplied by
(ii) five-tenths (0.5).
(2) The amount of property taxes described in section 4(a)(2) of
this chapter paid by the individual in the taxable year.
(d) If the amount of the credit under this chapter exceeds the
individual's state tax liability for the taxable year, the excess shall be
refunded to the taxpayer.
As added by P.L.151-2001, SEC.5. Amended by P.L.1-2002, SEC.31.
Last modified: May 28, 2006