Credit for income tax imposed by local governmental entity outside
Indiana
Sec. 23. (a) Except as provided in subsection (b), if for a
particular taxable year a county taxpayer is liable for an income tax
imposed by a county, city, town, or other local governmental entity
located outside of Indiana, that county taxpayer is entitled to a credit
against the county option income tax liability for that same taxable
year. The amount of the credit equals the amount of tax imposed by
the other governmental entity on income derived from sources
outside Indiana and subject to the county option income tax.
However, the credit provided by this section may not reduce a county
taxpayer's county option income tax liability to an amount less than
would have been owed if the income subject to taxation by the other
governmental entity had been ignored.
(b) The credit provided by this section does not apply to a county
taxpayer to the extent that the other governmental entity provides for
a credit to the taxpayer for the amount of county option income taxes
owed under this chapter.
(c) To claim the credit provided by this section, a county taxpayer
must provide the department with satisfactory evidence that the
taxpayer is entitled to the credit.
As added by P.L.23-1986, SEC.12.
Last modified: May 28, 2006