This text of Indiana § 6-3-5-5 (Election to receive payment in lieu of economic development for a
growing economy tax credit; requirements) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)If the Indiana economic development
corporation established by IC 5-28-3-1 enters into an agreement with
a taxpayer for an economic development for a growing economy tax
credit under IC 6-3.1-13, and the taxpayer elects to forgo claiming the
credit against any state tax liability for that taxable year and requests
the department to remit to the taxpayer an amount equal to the credit
for the taxable year as set forth under IC 6-3.1-13-20(b), the provisions
of this section shall apply.
(b)Before making a payment to a taxpayer under this section, the
taxpayer shall provide to the department:
(1)a copy of the taxpayer's agreement with the Indiana economic
development corporation;
(2)the credit awarded to the taxpayer for that taxable year; and
(3)any other information required by the d
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(a) If the Indiana economic development
corporation established by IC 5-28-3-1 enters into an agreement with
a taxpayer for an economic development for a growing economy tax
credit under IC 6-3.1-13, and the taxpayer elects to forgo claiming the
credit against any state tax liability for that taxable year and requests
the department to remit to the taxpayer an amount equal to the credit
for the taxable year as set forth under IC 6-3.1-13-20(b), the provisions
of this section shall apply.
(b) Before making a payment to a taxpayer under this section, the
taxpayer shall provide to the department:
(1) a copy of the taxpayer's agreement with the Indiana economic
development corporation;
(2) the credit awarded to the taxpayer for that taxable year; and
(3) any other information required by the department.
(c) A payment by the department cannot exceed the actual
incremental income tax withholdings collected by the department as a
result of the employment of new employees subject to an agreement
entered into under IC 6-3.1-13.
(d) In the case of a credit awarded under IC 6-3.1-13 to a taxpayer
that is a pass through entity, the:
(1) pass through entity has the authority to make the election with
regard to the credit;
(2) shareholders, partners, members, and beneficiaries of the pass
through entity may not make an election separate from the pass
through entity with regard to the credit;
(3) pass through entity is entitled to the payment allowable under
this section; and
(4) pass through entity may not pass through any portion of the
credit for which the pass through entity requests payment as a tax
credit to the shareholders, partners, members, or beneficiaries of
the pass through entity.
(e) If a payment under this section is included in the federal adjusted
gross income of an individual or the federal taxable income of any
other entity, the payment must be treated as:
(1) adjusted gross income from Indiana sources under this article
and IC 6-5.5;
(2) business income for purposes of this article; and
(3) a receipt from Indiana sources for apportionment purposes
under IC 6-3-2 and IC 6-5.5-4.
(f) For purposes of offsetting refunds and overpayments, a payment
under this section is treated as an overpayment of tax under this article
and IC 6-5.5 for purposes of IC 6-8.1-9-2, IC 6-8.1-9.5, and IC 6-8.1-9.7.
(g) A payment under this section is subject to IC 6-3.1-13-22 in the
same manner as if the payment had been claimed as a credit.
(h) If all or a portion of a payment under this section is determined
to have been made in error or is subject to assessment under IC 6-3.1-13-22, the department may issue an assessment for repayment of
such amount before the later of:
(1) ten (10) years from the date of the payment; or
(2) three (3) years from the date the Indiana economic
development corporation notifies the department of the taxpayer's
noncompliance pursuant to IC 6-3.1-13-22.
(i) An assessment for repayment shall be treated as a proposed
assessment for purposes of administrative review and judicial appeal
under IC 6-8.1-5. However, review of the Indiana economic
development corporation's determination of noncompliance shall be
limited to an abuse of discretion by the Indiana economic development
corporation.
(j) For purposes of this section, an election for payment in lieu of
claiming the credit under IC 6-3.1-13 for a taxable year is not allowed
if:
(1) the taxpayer has claimed all or part of the credit for the taxable
year;
(2) in the case of a taxpayer who is a pass through entity, the
taxpayer passes through all or part of the credit as a tax credit,
regardless of whether the pass through entity subsequently
provides information to the department, the Indiana economic
development corporation, or any other affected person or entity,
that the credit should not be passed through as a tax credit or
whether the credit otherwise has been claimed as a tax credit; or
(3) the taxpayer makes the election after the due date of the
taxpayer's return under IC 6-3, IC 6-5.5, IC 6-8-15, or IC 27-1-18-2, determined without regard to extensions, on which it
would have claimed the credit for which the taxpayer is
requesting payment under this section.
(k) The amount needed to make a payment under this section shall
be paid from funds appropriated to the Indiana economic development
corporation for business promotion and innovation. Payments made
under this section are subject to available funding.