Credit for income taxes imposed by other local governmental
entities
Sec. 24. (a) Except as provided in subsection (b), if for a
particular taxable year a municipal taxpayer is liable for an income
tax imposed by a county, city, town, or other local governmental
entity located outside of Indiana, that municipal taxpayer is entitled
to a credit against the municipal 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 municipal option income
tax. However, the credit provided by this section may not reduce a
municipal taxpayer's municipal option income tax liability to an
amount that is less than what 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
municipal taxpayer to the extent that the other governmental entity
provides for a credit to the taxpayer for the amount of municipal
option income taxes owed under this chapter.
(c) To claim the credit provided by this section, a municipal
taxpayer must provide the department with satisfactory evidence that
the taxpayer is entitled to the credit.
As added by P.L.151-2001, SEC.6.
Last modified: May 28, 2006