Limitations on use of credit
Effective 1-1-2006.
Sec. 16. (a) A credit awarded under section 15 of this chapter
must be taken in ten (10) annual installments, beginning with the
year in which the taxpayer places into service an integrated coal
gasification powerplant.
(b) Subject to section 20 of this chapter, the amount of an annual
installment of the credit awarded under section 15 of this chapter is
equal to the amount determined in the last of the following STEPS:
STEP ONE: Determine the lesser of:
(A) the credit amount determined under section 15 of this
chapter, divided by ten (10); or
(B) the greater of:
(i) the taxpayer's total state tax liability for the taxable
year, multiplied by twenty-five percent (25%); or
(ii) the taxpayer's liability for the utility receipts tax
imposed under IC 6-2.3 for the taxable year.
STEP TWO: Multiply the STEP ONE amount by the percentage
of Indiana coal used in the taxpayer's integrated coal
gasification powerplant in the taxable year for which the annual
installment of the credit is allowed.
(c) If the credit allowed by this chapter is available to a member
of an affiliated group of corporations filing a consolidated return
under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied against
the state tax liability of the affiliated group.
As added by P.L.191-2005, SEC.15.
Last modified: May 28, 2006