(a)If a pass through entity does not have
state tax liability against which the tax credit may be applied, a
shareholder, member, 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, member, or partner is entitled.
(b)Subject to subsection (d) and (g), a shareholder, member, or
partner of a pass through entity that is entitled to a tax credit under this
section may carry forward an unused credit for the number of years
determined by the corporation, not to exceed nine (9) consecutive
taxable years, beginning with the taxable year after the taxable year in
which the pass through en
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(a) If a pass through entity does not have
state tax liability against which the tax credit may be applied, a
shareholder, member, 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, member, or partner is entitled.
(b) Subject to subsection (d) and (g), a shareholder, member, or
partner of a pass through entity that is entitled to a tax credit under this
section may carry forward an unused credit for the number of years
determined by the corporation, not to exceed nine (9) consecutive
taxable years, beginning with the taxable year after the taxable year in
which the pass through entity makes the qualified investment.
(c) The amount that a shareholder, member, or partner may carry
forward to a particular taxable year under this section equals the
unused part of a tax credit allowed under this chapter to which the
shareholder, member, or partner is entitled.
(d) This subsection applies only to a pass through entity that:
(1) proposes at least five hundred million dollars ($500,000,000)
in total investment over a five (5) year period; and
(2) enters into a written agreement with the corporation under this
subsection before January 1, 2017, and the shareholders,
members, or partners of the pass through entity agree to claim tax
credits under this chapter for not more than one hundred seventy
million dollars ($170,000,000) of qualified investment that is
made as part of the investment proposed as described in
subdivision (1).
Notwithstanding subsection (b), the corporation may accelerate to the
current taxable year the excess tax credit amount that could otherwise
be carried forward by all shareholders, members, or partners of a pass
through entity under subsection (b). The excess amount of the tax
credit accelerated under this subsection shall be discounted as
determined under a written agreement entered into by the pass through
entity and the corporation. Subject to subsection (f), the total amount
of qualified investments for which tax credits may be accelerated under
this subsection may not exceed one hundred seventy million dollars
($170,000,000). The discounted amount of the excess tax credit
accelerated under this subsection as determined by the corporation may
be remitted to the shareholders, members, or partners of the pass
through entity as provided in the written agreement between the
corporation and the pass through entity. The requirement for an
agreement under section 21(11) of this chapter does not apply to this
subsection. This subsection expires December 31, 2025.
(e) A written agreement under subsection (d) may contain a
provision for payment of liquidated damages:
(1) to the corporation for failure to comply with the conditions set
forth in this chapter and the agreement entered into by the
corporation and pass through entity under this chapter;
(2) that are personally guaranteed by the shareholders, members,
or partners of the pass through entity; and
(3) that are in addition to an assessment made by the department
for noncompliance under section 23 of this chapter.
This subsection expires December 31, 2025.
(f) The total aggregated amount of tax credits that the corporation
may discount under subsection (d) and section 15(d) of this chapter in
a state fiscal year may not exceed seventeen million dollars
($17,000,000), as determined before the discount is applied. This
subsection expires December 31, 2025.
(g) This subsection applies only to a pass through entity that:
(1) proposes at least two hundred fifty million dollars
($250,000,000) in total investment over a five (5) year period; and
(2) enters into a written agreement with the corporation under this
subsection before July 1, 2022, and the shareholders, members,
or partners of the pass through entity agree to claim tax credits
under this chapter for not more than one hundred seventy million
dollars ($170,000,000) of qualified investment that is made as
part of the investment proposed as described in subdivision (1).
Notwithstanding subsection (b), the corporation may accelerate to the
current taxable year the excess tax credit amount that could otherwise
be carried forward by all shareholders, members, or partners of a pass
through entity under subsection (b). The excess amount of the tax
credit accelerated under this subsection shall be discounted as
determined under a written agreement entered into by the pass through
entity and the corporation. Subject to subsection (i), the total amount
of qualified investments for which tax credits may be accelerated under
this subsection may not exceed one hundred seventy million dollars
($170,000,000). The discounted amount of the excess tax credit
accelerated under this subsection as determined by the corporation may
be remitted to the shareholders, members, or partners of the pass
through entity as provided in the written agreement between the
corporation and the pass through entity. The requirement for an
agreement under section 21(11) of this chapter does not apply to this
subsection. This subsection expires December 31, 2031.
(h) A written agreement under subsection (g) may contain a
provision for payment of liquidated damages:
(1) to the corporation for failure to comply with the conditions set
forth in this chapter and the agreement entered into by the
corporation and pass through entity under this chapter;
(2) that are personally guaranteed by the shareholders, members,
or partners of the pass through entity; and
(3) that are in addition to an assessment made by the department
for noncompliance under section 23 of this chapter.
This subsection expires December 31, 2031.
(i) The total aggregated amount of tax credits that the corporation
may discount under subsection (g) and section 15(g) of this chapter in
a state fiscal year may not exceed seventeen million dollars
($17,000,000), as determined before the discount is applied. This
subsection expires December 31, 2031.