Amount of credit; application; pass through entities; shareholders
or partners of firms without tax liability
Sec. 3. (a) Subject to the limitations provided in subsection (b)
and sections 4, 5, and 6 of this chapter, the department shall grant a
tax credit against any state tax liability due equal to fifty percent
(50%) of the amount invested by a business firm or person in a
program the proposal for which was approved under section 2 of this
chapter.
(b) The credit provided by this chapter shall only be applied
against any state tax liability owed by the taxpayer after the
application of any credits, which under IC 6-3.1-1-2 must be applied
before the credit provided by this chapter. In addition, the tax credit
which a taxpayer receives under this chapter may not exceed
twenty-five thousand dollars ($25,000) for any taxable year of the
taxpayer.
(c) If a business firm that is:
(1) exempt from adjusted gross income tax (IC 6-3-1 through
IC 6-3-7) under IC 6-3-2-2.8(2); or
(2) a partnership;
does not have any tax liability against which the credit provided by
this section may be applied, a shareholder or a partner of the business
firm is entitled to a credit against the shareholder's or the partner's
liability under the adjusted gross income tax.
(d) The amount of the credit provided by this section is equal to:
(1) the tax credit determined for the business firm for the
taxable year under subsection (a); multiplied by
(2) the percentage of the business firm's distributive income to
which the shareholder or the partner is entitled.
The credit provided by this section is in addition to any credit to
which a shareholder or partner is otherwise entitled under this
chapter. However, a business firm and a shareholder or partner of
that business firm may not claim a credit under this chapter for the
same investment.
As added by P.L.51-1984, SEC.1. Amended by P.L.25-1993, SEC.11;
P.L.1-1994, SEC.29; P.L.192-2002(ss), SEC.100.
Last modified: May 28, 2006