Eligible taxpayers; amount of credit; pass through entities
Sec. 2. (a) A taxpayer is entitled to a credit against the taxpayer's
state tax liability for a taxable year if the taxpayer:
(1) receives interest on a qualified loan in that taxable year;
(2) pays the registration fee charged to zone businesses under
IC 5-28-15-5;
(3) provides the assistance to urban enterprise associations
required from zone businesses under IC 5-28-15-5(b); and
(4) complies with any requirements adopted by the board of the
Indiana economic development corporation under IC 5-28-15
for taxpayers claiming the credit under this chapter.
However, if a taxpayer is located outside of an enterprise zone,
subdivision (4) does not require the taxpayer to reinvest its incentives
under this section within the enterprise zone, except as provided in
subdivisions (2) and (3).
(b) The amount of the credit to which a taxpayer is entitled under
this section is five percent (5%) multiplied by the amount of interest
received by the taxpayer during the taxable year from qualified loans.
(c) If a pass through entity is entitled to a credit under subsection
(a) but does not have state tax liability against which the tax credit
may be applied, an individual who is a shareholder, partner,
beneficiary, 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, beneficiary, or
member is entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of
a pass through entity may not claim more than one (1) credit for the
qualified expenditure.
As added by P.L.51-1984, SEC.1. Amended by P.L.120-1999, SEC.5;
P.L.73-2000, SEC.2; P.L.4-2005, SEC.52.
Last modified: May 28, 2006