§ 6-3.1-13-21 — Pass through entity; calculation of tax credit; shareholder or partner claiming credit; refundable credits

Indiana § 6-3.1-13-21

• Jurisdiction: Indiana
• Art. 3.1: STATE TAX LIABILITY CREDITS
• Ch. 13: Economic Development for a Growing Economy Tax

Text

(a) If a pass through entity does not have
state income tax liability against which the tax credit may be applied,
a shareholder or partner 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 or partner is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder or partner of a pass through entity is
otherwise entitled under a separate agreement under this chapter. A
pass through entity and a shareholder or partner of the pass through
entity may not claim more than one (1) credit under the same
agreement.
(c) Subsection (d) applies:
(1) only to a pass through entity that is a limited liability company
or a limited liability partnership owned wholly or in part by an
electric cooperative incorporated under IC 8-1-13; and
(2) if, at the request of the pass through entity, the corporation
finds that the amount of the average wage to be paid by the pass
through entity will be at least double the average wage paid:
(A) in the county in which the project will be located, in the
case of an application submitted before January 1, 2006; or
(B) in the case of an application submitted after December 31,
2005:
(i) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in the county
in which the applicant's business is located, if there is more
than one (1) business in that NAICS industry sector in the
county in which the applicant's business is located;
(ii) to all employees working in the same NAICS industry
sector to which the applicant's business belongs in Indiana, if
the applicant's business is the only business in that NAICS
industry sector in the county in which the applicant's business
is located but there is more than one (1) business in that
NAICS industry sector in Indiana; or
(iii) to all employees working in the same county as the
county in which the applicant's business is located, if there is
no other business in Indiana in the same NAICS industry
sector to which the applicant's business belongs.
(d) The corporation may determine that:
(1) a credit shall be claimed by the pass through entity described
in subsection (c); and
(2) if the credit exceeds the pass through entity's state income tax
liability for the taxable year, the excess shall be refunded to the
pass through entity.
If the corporation grants a refund directly to a pass through entity under
this subsection, the pass through entity shall claim the refund on forms
prescribed by the department of state revenue.

Legislative History

As added by P.L.41-1994, SEC.1. Amended by P.L.81-2004, SEC.14; P.L.4-2005, SEC.79; P.L.197-2005, SEC.10.