IC 6-3.1-20
    Chapter 20. Income Tax Credit for Property Taxes Paid onHomesteads

IC 6-3.1-20-1
"Earned income" defined
    Sec. 1. As used in this chapter, "earned income" means the sumof the:
        (1) wages, salaries, tips, and other employee compensation; and
        (2) net earnings from self-employment (as computed underSection 32(c)(2) of the Internal Revenue Code);
of an individual taxpayer, and the individual's spouse, if theindividual files a joint adjusted gross income tax return.
As added by P.L.151-2001, SEC.5.

IC 6-3.1-20-2
"Homestead" defined
    Sec. 2. As used in this chapter, "homestead" has the meaning setforth in IC 6-1.1-12-37.
As added by P.L.151-2001, SEC.5. Amended by P.L.1-2009, SEC.51.

IC 6-3.1-20-3
"State income tax liability" defined
    Sec. 3. As used in this chapter, "state income tax liability" meansan individual's adjusted gross income tax liability under IC 6-3.
As added by P.L.151-2001, SEC.5.

IC 6-3.1-20-4
Entitlement to credit
    Sec. 4. (a) Except as provided in subsection (b), an individual isentitled to a credit under this chapter if the:
        (1) individual's earned income for the taxable year is less thaneighteen thousand six hundred ($18,600); and
        (2) the individual pays property taxes in the taxable year on ahomestead that:
            (A) the individual:
                (i) owns; or
                (ii) is buying under a contract that requires the individualto pay property taxes on the homestead, if the contract ora memorandum of the contract is recorded in the countyrecorder's office; and
            (B) is located in a county having a population of more thanfour hundred thousand (400,000) but less than sevenhundred thousand (700,000).
    (b) An individual is not entitled to a credit under this chapter fora taxable year for property taxes paid on the individual's homesteadif the individual claims the deduction under IC 6-3-1-3.5(a)(17) forthe homestead for that same taxable year.
As added by P.L.151-2001, SEC.5.
IC 6-3.1-20-5
Amount of credit
    Sec. 5. (a) Each year, an individual described in section 4 of thischapter is entitled to a refundable credit against the individual's stateincome tax liability in the amount determined under this section.
    (b) In the case of an individual with earned income of less thaneighteen thousand dollars ($18,000) for the taxable year, the amountof the credit is equal to the lesser of:
        (1) three hundred dollars ($300); or
        (2) the amount of property taxes described in section 4(a)(2) ofthis chapter paid by the individual in the taxable year.
    (c) In the case of an individual with earned income that is at leasteighteen thousand dollars ($18,000) but less than eighteen thousandsix hundred dollars ($18,600) for the taxable year, the amount of thecredit is equal to the lesser of the following:
        (1) An amount determined under the following STEPS:
            STEP ONE: Determine the result of:
                (i) eighteen thousand six hundred dollars ($18,600); minus
                (ii) the individual's earned income for the taxable year.
            STEP TWO: Determine the result of:
                (i) the STEP ONE amount; multiplied by
                (ii) five-tenths (0.5).
        (2) The amount of property taxes described in section 4(a)(2) ofthis chapter paid by the individual in the taxable year.
    (d) If the amount of the credit under this chapter exceeds theindividual's state tax liability for the taxable year, the excess shall berefunded to the taxpayer.
As added by P.L.151-2001, SEC.5. Amended by P.L.1-2002, SEC.31.

IC 6-3.1-20-6
Filing with department required
    Sec. 6. To obtain the credit provided by this chapter, an individualmust file with the department information concerning the propertytaxes paid on the individual's homestead and any other informationrequired by the department.
As added by P.L.151-2001, SEC.5.

IC 6-3.1-20-7
Amount of credits determined by department and deposited instate general fund
    Sec. 7. (a) The department shall before July 1 of each yeardetermine the amount of credits allowed under this chapter fortaxable years ending before January 1 of the year.
    (b) One-half (1/2) of the amount determined by the departmentunder subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions taxrevenue otherwise payable to the county underIC 4-33-12-6(d)(2); and
        (2) paid instead to the state general fund.
    (c) One-sixth (1/6) of the amount determined by the department

under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions taxrevenue otherwise payable under IC 4-33-12-6(d)(1) to each ofthe following:
            (A) The largest city by population located in the county.
            (B) The second largest city by population located in thecounty.
            (C) The third largest city by population located in thecounty; and
        (2) paid instead to the state general fund.
As added by P.L.151-2001, SEC.5. Amended by P.L.178-2002,SEC.51.