CHAPTER 28. ETHANOL PRODUCTION TAX CREDIT
IC 6-3.1-28
Chapter 28. Ethanol Production Tax Credit
IC 6-3.1-28-1
"Corporation"
Sec. 1. As used in this chapter, "corporation" refers to the Indianaeconomic development corporation created by IC 5-28-3-1.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005,SEC.11.
IC 6-3.1-28-2
"Ethanol"
Sec. 2. As used in this chapter, "ethanol" means agriculturallyderived ethyl alcohol.
As added by P.L.224-2003, SEC.200.
IC 6-3.1-28-3
"Facility"
Sec. 3. As used in this chapter, "facility" refers to a facility for theproduction of ethanol that satisfies all the following:
(1) The facility is located in Indiana.
(2) The facility has a capacity to produce at least forty million(40,000,000) gallons of ethanol a year.
(3) The facility, after December 31, 2003, increased its ethanolproduction capacity by at least forty million (40,000,000)gallons a year.
As added by P.L.224-2003, SEC.200.
IC 6-3.1-28-4
"Pass through entity"
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.224-2003, SEC.200.
IC 6-3.1-28-5
"State tax liability"
Sec. 5. As used in this chapter, "state tax liability" means ataxpayer's total tax liability that is incurred under:
(1) IC 6-2.5 (the state gross retail and use tax);
(2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(3) IC 6-5.5 (the financial institutions tax); and
(4) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that underIC 6-3.1-1-2 are to be applied before the credit provided by thischapter.
As added by P.L.224-2003, SEC.200.
IC 6-3.1-28-6
"Taxpayer"
Sec. 6. As used in this chapter, "taxpayer" means an individual orentity that has any state tax liability.
As added by P.L.224-2003, SEC.200.
IC 6-3.1-28-7
Ethanol production tax credit
Sec. 7. Subject to IC 6-3.1-27-9.5 and section 11 of this chapter,a taxpayer that has been certified by the corporation as eligible for acredit under this section and produces ethanol at a facility is entitledto a credit against the taxpayer's state tax liability equal to theproduct of:
(1) twelve and one-half cents ($.125); multiplied by
(2) the number of gallons of ethanol produced at the Indianafacility.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005,SEC.12.
IC 6-3.1-28-8
Pass through entities
Sec. 8. If a pass through entity is entitled to a credit under thischapter but does not have state tax liability against which the taxcredit may be applied, a shareholder, partner, or member of the passthrough 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.224-2003, SEC.200.
IC 6-3.1-28-9
Carryover of excess tax credits
Sec. 9. (a) If the amount of the credit determined under thischapter for a taxpayer in a taxable year exceeds the taxpayer's statetax liability for that taxable year, the taxpayer may carry over theexcess to the following taxable years. The amount of the creditcarryover from a taxable year shall be reduced to the extent that thecarryover is used by the taxpayer to obtain a credit under this chapterfor any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of anyunused credit. A taxpayer may not sell, assign, convey, or otherwisetransfer the tax credit provided by this chapter.
As added by P.L.224-2003, SEC.200. Amended by P.L.175-2007,SEC.2.
IC 6-3.1-28-10
Claiming tax credits
Sec. 10. To receive the credit provided by this chapter, a taxpayermust do the following: (1) Claim the credit on the taxpayer's state tax return or returnsin the manner prescribed by the department.
(2) Provide a copy of the corporation's certificate finding:
(A) that the taxpayer; or
(B) if the taxpayer is a shareholder, partner, or member of apass through entity, that the pass through entity;
is eligible for the credit under IC 5-28-6-3.
(3) Submit to the department proof of all information that thedepartment determines is necessary for the calculation of thecredit provided by this chapter.
The department may require a pass through entity to provideinformational reports that the department determines necessary forthe department to calculate the percentage of the credit provided bythis chapter to which a shareholder, partner, or member of the passthrough entity is entitled.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005,SEC.13.
IC 6-3.1-28-11
Maximum amount of tax credits awarded
Sec. 11. (a) As used in this section, "cellulosic ethanol" meansethanol derived solely from lignocellulosic or hemicellulosic matter.
(b) The corporation shall determine the maximum amount ofcredits that a taxpayer (or if the person producing the ethanol is apass through entity, the shareholders, partners, or members of thepass through entity) is eligible to receive under this section. The totalamount of credits allowed a taxpayer (or, if the person producing theethanol is a pass through entity, the shareholders, partners, ormembers of the pass through entity) under this chapter may notexceed a total of the following amounts for all taxable years:
(1) Two million dollars ($2,000,000) in the case of a taxpayerwho produces at least forty million (40,000,000) but less thansixty million (60,000,000) gallons of grain ethanol in a taxableyear.
(2) Three million dollars ($3,000,000) in the case of a taxpayerwho produces at least sixty million (60,000,000) gallons ofgrain ethanol in a taxable year.
(3) Twenty million dollars ($20,000,000) for all taxpayers forall taxable years, in the case of tax credits for a taxpayer whoproduces at least twenty million (20,000,000) gallons ofcellulosic ethanol in a taxable year.
(c) The total amount of tax credits allowed under this chapter fora taxpayer who produces at least twenty million (20,000,000) gallonsof cellulosic ethanol is not subject to the maximum amount of taxcredits imposed by IC 6-3.1-27-9.5.
(d) A taxpayer who is eligible for a credit under this chapter as aresult of producing at least twenty million (20,000,000) gallons ofcellulosic ethanol in a taxable year may apply the credit only againstthe state tax liability attributable to business activity taking place atthe Indiana facility at which the cellulosic ethanol was produced.As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005,SEC.14; P.L.122-2006, SEC.9; P.L.175-2007, SEC.3.