CHAPTER 25.2. COAL COMBUSTION PRODUCT TAX CREDIT
IC 6-3.1-25.2
Chapter 25.2. Coal Combustion Product Tax Credit
IC 6-3.1-25.2-1
"Coal combustion product"
Sec. 1. As used in this chapter, "coal combustion product" meansthe byproducts resulting from the combustion of coal in a facilitylocated in Indiana, including a fluidized bed boiler. The termincludes boiler slag, bottom ash, fly ash, and scrubber sludge.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-2
"Manufacturer"
Sec. 2. (a) As used in this chapter, "manufacturer" means ataxpayer that:
(1) obtains and uses coal combustion products for themanufacturing of recycled components; and
(2) is one (1) of the following:
(A) A new business.
(B) An existing business that, during a taxable year in whichthe taxpayer claims a credit under this chapter, beginsmanufacturing recycled components.
(C) An existing business that:
(i) manufactures recycled components; and
(ii) during a taxable year in which the taxpayer claims acredit under this chapter, increases acquisitions of coalcombustion products by the amount determined insubsection (b).
(b) A manufacturer described in subsection (a)(2)(C) mustincrease the manufacturer's acquisitions of coal combustion productsby the amount determined in STEP THREE of the following STEPS:
STEP ONE: Determine the total amount of coal combustionproducts obtained by the manufacturer for each of the three (3)taxable years immediately preceding the taxable year in whichthe manufacturer claims a credit under this chapter.
STEP TWO: Determine the largest amount determined underSTEP ONE.
STEP THREE: Determine the product of:
(A) the STEP TWO amount; multiplied by
(B) one-tenth (0.1).
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-3
"Recycled component"
Sec. 3. As used in this chapter, a unit of materials, goods, or othertangible personal property is a "recycled component" if coalcombustion products constitute at least fifteen percent (15%) byweight of the substances of which the unit is composed. Recycledcomponents include:
(1) aggregates; (2) fillers;
(3) cementitious materials; or
(4) any combination of aggregates, filler, or cementitiousmaterials;
that are used in the manufacture of masonry construction products(including portland cement based mortar), normal and lightweightconcrete, blocks, bricks, pavers, pipes, prestressed concrete products,filter media, and other products approved by the Center for CoalTechnology Research established under IC 21-47-4.
As added by P.L.215-2003, SEC.2. Amended by P.L.2-2007,SEC.123.
IC 6-3.1-25.2-4
"State tax liability"
Sec. 4. As used in this chapter, "state tax liability" means ataxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7(the adjusted gross income tax), as computed after the application ofall credits that under IC 6-3.1-1-2 are to be applied before the creditprovided by this chapter.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-5
Entitlement to credit; amount
Sec. 5. (a) A manufacturer is entitled to a credit against themanufacturer's state tax liability as follows:
(1) In the case of a manufacturer described under section2(a)(2)(A) or 2(a)(2)(B) of this chapter, the amount of the creditis equal to:
(A) the number of tons of coal combustion products obtainedand used by the manufacturer in the taxable year; multipliedby
(B) two dollars ($2).
(2) In the case of a manufacturer described under section2(a)(2)(C) of this chapter, the amount of the credit is equal to:
(A) the difference between:
(i) the number of tons of coal combustion productsobtained and used by the manufacturer in the taxable year;and
(ii) the amount determined in STEP TWO of section 2(b)of this chapter; multiplied by
(B) two dollars ($2).
(b) The total amount of credits allowed under this chapter may notexceed in the aggregate two million dollars ($2,000,000) for alltaxpayers per state fiscal year.
(c) To receive the credit provided by this chapter, a taxpayer mustclaim the credit on the taxpayer's state tax return or returns in themanner prescribed by the department.
(d) The department shall record the time of filing of each returnclaiming a credit under this section and shall, except as provided insubsection (e), grant the credit to the taxpayer, if the taxpayer
otherwise qualifies for a tax credit under this chapter, in thechronological order in which the return is filed in the state fiscalyear.
(e) If the total credits approved under this section equal themaximum amount allowable in the state fiscal year, a return claimingthe credit filed later in that same state fiscal year may not beapproved. However, if an applicant for which a credit has beenapproved fails to file the information required by section 9 of thischapter, an amount equal to the credit previously allowed or set asidefor the applicant may be allowed to the next eligible applicant orapplicants until the total amount has been allowed. In addition, thedepartment may, if the applicant so requests, approve a creditapplication, in whole or in part, with respect to the next succeedingstate fiscal year.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-6
Credit for shareholder, partner, or member of pass through entity
Sec. 6. (a) If a manufacturer that claims a credit under this chapteris a pass through entity (as defined in IC 6-3.1-11.5-8.5) that does nothave state tax liability for a taxable year against which the credit maybe applied, a shareholder, partner, or member of the pass throughentity is entitled to a credit equal to:
(1) the 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.
(b) If the amount determined under subsection (a) exceeds thestate tax liability of the shareholder, partner, or member, theshareholder, partner, or member may not carry over the excess tofollowing taxable years.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-7
Duration of credit
Sec. 7. A manufacturer with a facility located in Indiana mayclaim a credit under this chapter in each of ten (10) consecutivetaxable years, beginning with the taxable year in which themanufacturer first claims the credit under this chapter.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-8
Carryover, carryback, or refund of unused credit disallowed
Sec. 8. (a) If the amount determined under section 5 of thischapter for a taxable year exceeds the manufacturer's state taxliability for the taxable year, the manufacturer may not carry over theexcess to following taxable years.
(b) A taxpayer is not entitled to a carryback or refund of anyunused credit.
As added by P.L.215-2003, SEC.2.
IC 6-3.1-25.2-9
Application for credit
Sec. 9. To obtain a credit under this chapter, the manufacturermust file with the department information that the departmentdetermines is necessary for the calculation of the credit providedunder this chapter. The department shall keep a list that includes:
(1) the name of each manufacturer that receives a credit underthis chapter and IC 6-1.1-44; and
(2) the amount of each credit for the manufacturer in the taxableyear;
and provide the list annually to the center for coal technologyresearch established under IC 21-47-4.
As added by P.L.215-2003, SEC.2. Amended by P.L.2-2007,SEC.124.
IC 6-3.1-25.2-10
Conditions on obtaining credit
Sec. 10. A taxpayer that obtains a deduction under IC 6-1.1-44may not obtain a credit under this chapter for the same taxable year.
As added by P.L.215-2003, SEC.2.