CHAPTER 18. INDIVIDUAL DEVELOPMENT ACCOUNT TAX CREDIT
IC 6-3.1-18
Chapter 18. Individual Development Account Tax Credit
IC 6-3.1-18-1
"Community development corporation" defined
Sec. 1. As used in this chapter, "community developmentcorporation" has the meaning set forth in IC 4-4-28-2.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-2
"Fund" defined
Sec. 2. As used in this chapter, "fund" refers to an individualdevelopment account fund established by a community developmentcorporation under IC 4-4-28-13.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-3
"Individual development account" defined
Sec. 3. As used in this chapter, "individual development account"has the meaning set forth in IC 4-4-28-5.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-4
"Pass through entity" defined
Sec. 4. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross incometax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-5
"State tax liability" defined
Sec. 5. As used in this chapter, "state tax liability" means ataxpayer's total tax liability incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);and
(2) IC 6-5.5 (the financial institutions tax);
as computed after the application of all credits that underIC 6-3.1-1-2 are to be applied before the credit provided by thischapter.
As added by P.L.15-1997, SEC.2. Amended by P.L.192-2002(ss),SEC.111.
IC 6-3.1-18-6
Credit; amount; calculation; application
Sec. 6. (a) Subject to the limitations provided in subsection (b)and sections 7, 8, 9, 10, and 11 of this chapter, the department shallgrant a tax credit against any state tax liability due equal to fifty
percent (50%) of the amount contributed by a person or an individualto a fund if the contribution is not less than one hundred dollars($100) and not more than fifty thousand dollars ($50,000).
(b) The credit provided by this chapter shall only be appliedagainst any state tax liability owed by the taxpayer after theapplication of any credits that under IC 6-3.1-1-2 must be appliedbefore the credit provided by this chapter.
As added by P.L.15-1997, SEC.2. Amended by P.L.4-1999, SEC.4;P.L.192-2002(ss), SEC.112.
IC 6-3.1-18-7
Application of tax credit to pass through entities; calculation
Sec. 7. If a pass through entity is entitled to a credit under section6 of this chapter but does not have state tax liability against whichthe tax credit may be applied, a shareholder, partner, or member ofthe pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for thetaxable year; multiplied by
(2) the percentage of the pass through entity's distributiveincome to which the shareholder, partner, or member is entitled.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-8
Credit supplement; other credits
Sec. 8. The credit provided under section 7 of this chapter is inaddition to a tax credit to which a shareholder, partner, or member ofa pass through entity is otherwise entitled under IC 6-3, this article,or IC 6-5.5. However, a pass through entity and a shareholder,partner, or member of the pass through entity may not claim morethan one (1) credit for the same qualified expenditure.
As added by P.L.15-1997, SEC.2. Amended by P.L.1-2003, SEC.38;P.L.269-2003, SEC.10.
IC 6-3.1-18-9
Application for tax credit; proof of payment
Sec. 9. (a) A person that or an individual who desires to claim atax credit as provided in this chapter shall file with the department,in the form approved by the department, an application stating theamount of the contribution that the person or individual proposes tomake that would qualify for a tax credit and the amount sought to beclaimed as a credit.
(b) The department shall promptly notify an applicant whether, orthe extent to which, the tax credit is allowable in the state fiscal yearin which the application is filed, as provided in section 6 of thischapter. If the credit is allowable in that state fiscal year, theapplicant shall within thirty (30) days after receipt of the notice filewith the department a statement, in the form and accompanied by theproof of payment as the department may prescribe, setting forth thatthe amount to be claimed as a credit under this chapter has been paidto a fund as provided in section 6 of this chapter. (c) The department may disallow any credit claimed under thischapter for which the statement or proof of payment is not filedwithin the thirty (30) day period.
As added by P.L.15-1997, SEC.2.
IC 6-3.1-18-10
Amount of tax credits allowed
Sec. 10. (a) The amount of tax credits allowed under this chaptermay not exceed two hundred thousand dollars ($200,000) in any statefiscal year.
(b) The department shall:
(1) record the time of filing of each application for allowanceof a credit required under section 9 of this chapter; and
(2) approve the applications, if they otherwise qualify for a taxcredit under this chapter, in the chronological order in whichthe applications are filed in the state fiscal year.
(c) When the total credits approved under this section equal themaximum amount allowable in any state fiscal year, an applicationfiled after that time for the same fiscal year may not be approved.However, if an applicant for whom a credit has been approved failsto file the statement of proof of payment required under section 9 ofthis chapter, an amount equal to the credit previously allowed or setaside for the applicant may be allowed to any subsequent applicantin the year. In addition, the department may, if the applicant sorequests, approve a credit application, in whole or in part, withrespect to the next succeeding state fiscal year.
As added by P.L.15-1997, SEC.2. Amended by P.L.289-2001,SEC.14.
IC 6-3.1-18-11
Tax credit available only in year paid
Sec. 11. A tax credit shall be allowable under this chapter only forthe taxable year of the taxpayer in which the contribution qualifyingfor the credit is paid.
As added by P.L.15-1997, SEC.2.