Indiana § 6-3.1-35-5 Allocation of the credit by pass through entities that do not have state
tax liability

Indiana Statutes

§ 6-3.1-35-5 — Allocation of the credit by pass through entities that do not have state tax liability

Indiana § 6-3.1-35-5

Art. 3.1STATE TAX LIABILITY CREDITS

Ch. 35Affordable and Workforce Housing Tax Credit

This text of Indiana § 6-3.1-35-5 (Allocation of the credit by pass through entities that do not have state tax liability) 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.

Bluebook

Ind. Code § 6-3.1-35-5 (2026).

Text

(a)If a pass through entity is entitled to a state tax credit but does not have state tax liability against which the state tax credit may be applied, the pass through entity may allocate or otherwise transfer the state tax credit among the shareholders, members, or partners of the pass through entity in any manner agreed to by the shareholders, members, or partners, regardless of how the federal tax credit for the qualified project is allocated or transferred or whether the allocation or transfer of the state tax credit under the agreement has substantial economic effect under Section 704(b) of the Internal Revenue Code. A pass through entity or its designee shall certify to the department the amount of the state tax credit that is allocated or transferred to each shareholder, member, or

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(a) If a pass through entity is entitled to a state
tax credit but does not have state tax liability against which the state
tax credit may be applied, the pass through entity may allocate or
otherwise transfer the state tax credit among the shareholders,
members, or partners of the pass through entity in any manner agreed
to by the shareholders, members, or partners, regardless of how the
federal tax credit for the qualified project is allocated or transferred or
whether the allocation or transfer of the state tax credit under the
agreement has substantial economic effect under Section 704(b) of the
Internal Revenue Code. A pass through entity or its designee shall
certify to the department the amount of the state tax credit that is
allocated or transferred to each shareholder, member, or partner of the
pass through entity for the taxable year, if any, in the manner
prescribed by the department.
(b) The credit provided under subsection (a) is in addition to a state
tax credit to which a shareholder, member, or partner of a pass through
entity is otherwise entitled under this chapter.