IC 6-3.1-29
Chapter 29. Coal Gasification Technology Investment Tax Credit
IC 6-3.1-29-1 Legislative intent; use of women and minority businesses as
vendors
Sec. 1. The general assembly declares that the opportunity for the
participation of underutilized small businesses, especially women
and minority business enterprises, in the coal gasification industry is
essential if social and economic parity is to be obtained by women
and minority business persons and if the economy of Indiana is to be
stimulated as contemplated by this chapter. A recipient of a credit
under this chapter is encouraged to purchase goods and services from
underutilized small businesses, especially women and minority
business enterprises. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-2 "Commission"
Sec. 2. As used in this chapter, "commission" refers to the Indiana
utility regulatory commission. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-3 "Corporation"
Sec. 3. As used in this chapter, "corporation" refers to the Indiana
economic development corporation established by IC 5-28-3-1. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4 "Department"
Sec. 4. As used in this chapter, "department" refers to the
department of state revenue. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4.5 "Fluidized bed combustion technology"
Sec. 4.5. As used in this chapter, "fluidized bed combustion
technology" means a technology that involves the combustion of fuel
in connection with a bed of inert material, such as limestone or
dolomite, which is held in a fluid like state by the means of air or
other gasses being passed through the materials. As added by P.L.122-2006, SEC.10.
IC 6-3.1-29-5 "Indiana coal"
Sec. 5. As used in this chapter, "Indiana coal" has the meaning set
forth in IC 21-47-1-4. As added by P.L.191-2005, SEC.15. Amended by P.L.2-2007,
SEC.125. IC 6-3.1-29-6 "Integrated coal gasification powerplant"
Sec. 6. As used in this chapter, "integrated coal gasification
powerplant" means a facility that satisfies all the following
requirements:
(1) The facility is located in Indiana and is a newly constructed
energy generating plant.
(2) The facility converts coal into synthesis gas that can be used
as a fuel to generate energy or as a substitute for natural gas.
(3) The facility uses the synthesis gas as a fuel to generate
electric energy or produces synthesis gas that can be used as a
substitute for natural gas.
(4) The facility is dedicated primarily to production of
electricity or gas for use by energy utilities serving Indiana
retail electric or gas utility consumers. As added by P.L.191-2005, SEC.15. Amended by P.L.175-2007,
SEC.4.
IC 6-3.1-29-7 "Minority"
Sec. 7. As used in this chapter, "minority" means a member of a
minority group (as defined in IC 4-13-16.5-1.) As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-8 "Minority business enterprise"
Sec. 8. As used in this chapter, "minority business enterprise" has
the meaning set forth in IC 4-13-16.5-1. As added by P.L.191-2005, SEC.15. Amended by P.L.1-2006,
SEC.144.
IC 6-3.1-29-9 "Pass through entity"
Sec. 9. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company;
(4) a limited liability partnership;
(5) a corporation organized under IC 8-1-13; or
(6) a corporation organized under IC 23-17-1 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-10 "Qualified investment"
Sec. 10. As used in this chapter, "qualified investment" means a
taxpayer's expenditures for:
(1) all real and tangible personal property incorporated in and
used as part of an integrated coal gasification powerplant or a
fluidized bed combustion technology; and
(2) transmission equipment and other real and personal property
located at the site of an integrated coal gasification powerplant
or a fluidized bed combustion technology that is employed
specifically to serve the integrated coal gasification powerplant
or fluidized bed combustion technology. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.11.
IC 6-3.1-29-11 "State tax liability"
Sec. 11. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax);
(3) IC 27-1-18-2 (the insurance premiums tax); and
(4) IC 6-2.3 (the utility receipts tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-12 "Taxpayer"
Sec. 12. As used in this chapter, "taxpayer" means a person, a
corporation, a partnership, or other entity that makes a qualified
investment. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-13 "Women's business enterprise"
Sec. 13. As used in this section, "women's business enterprise"
has the meaning set forth in IC 4-13-16.5-1.3. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-14 Credit
Sec. 14. (a) A taxpayer that:
(1) is awarded a tax credit under this chapter by the corporation;
and
(2) complies with the conditions set forth in this chapter and the
agreement entered into by the corporation and the taxpayer
under this chapter;
is entitled to a credit against the taxpayer's state tax liability for a
taxable year in which the taxpayer places into service an integrated
coal gasification powerplant or a fluidized bed combustion
technology and for the taxable years provided in section 16 of this
chapter.
(b) A tax credit awarded under this chapter must be applied
against the taxpayer's state tax liability in the following order:
(1) Against the taxpayer's liability incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax).
(2) Against the taxpayer's liability incurred under IC 6-5.5 (the
financial institutions tax).
(3) Against the taxpayer's liability incurred under IC 27-1-18-2
(the insurance premiums tax).
(4) Against the taxpayer's liability incurred under IC 6-2.3 (the
utility receipts tax). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.12.
IC 6-3.1-29-15 Computation of credit amount
Sec. 15. (a) Subject to section 16 of this chapter, the amount of
the credit to which a taxpayer is entitled for a qualified investment
in an integrated coal gasification powerplant is equal to the sum of
the following:
(1) Ten percent (10%) of the taxpayer's qualified investment for
the first five hundred million dollars ($500,000,000) invested.
(2) Five percent (5%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000) only if the facility is dedicated primarily to
serving Indiana retail electric or gas utility consumers.
(b) Subject to section 16 of this chapter, the amount of the credit
to which a taxpayer is entitled for a qualified investment in a
fluidized bed combustion technology is equal to the sum of the
following:
(1) Seven percent (7%) of the taxpayer's qualified investment
for the first five hundred million dollars ($500,000,000)
invested.
(2) Three percent (3%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.13; P.L.175-2007, SEC.5.
IC 6-3.1-29-16 Limitations on use of credit
Sec. 16. (a) A credit awarded under section 15 of this chapter
must be taken in ten (10) annual installments, beginning with the
year in which the taxpayer places into service an integrated coal
gasification powerplant or a fluidized bed combustion technology.
(b) Subject to section 20 of this chapter, the amount of an annual
installment of the credit awarded under section 15 of this chapter is
equal to the amount determined in the last of the following STEPS:
STEP ONE: Determine the lesser of:
(A) the credit amount determined under section 15 of this
chapter, divided by ten (10); or
(B) the greater of:
(i) the taxpayer's total state tax liability for the taxable
year, multiplied by twenty-five percent (25%); or
(ii) the taxpayer's liability for the utility receipts tax
imposed under IC 6-2.3 for the taxable year.
STEP TWO: Multiply the STEP ONE amount by the percentage
of Indiana coal used in the taxpayer's integrated coal
gasification powerplant or fluidized bed combustion technology
in the taxable year for which the annual installment of the credit
is allowed.
(c) If the credit allowed by this chapter is available to a member
of an affiliated group of corporations filing a consolidated return
under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied against
the state tax liability of the affiliated group. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.14.
IC 6-3.1-29-17 Preconstruction application for credit
Sec. 17. A person that proposes to place a new integrated coal
gasification powerplant or fluidized bed combustion technology into
service may apply to the corporation before the taxpayer makes the
qualified investment to enter into an agreement for a tax credit under
this chapter. The corporation shall prescribe the form of the
application. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.15.
IC 6-3.1-29-18 Conditions for granting credit application
Sec. 18. After receipt of an application, the corporation may enter
into an agreement with the applicant for a credit under this chapter
if the corporation determines that the taxpayer's proposed investment
satisfies the requirements of this chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-19 Terms of required agreement; certificate of compliance
Sec. 19. (a) The corporation shall enter into an agreement with an
applicant that is awarded a credit under this chapter. The agreement
must include all the following:
(1) A detailed description of the project that is the subject of the
agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The maximum tax credit amount that will be allowed for
each taxable year.
(4) A requirement that the taxpayer shall maintain operations at
the project location for at least ten (10) years during the term
that the tax credit is available.
(5) If the facility is an integrated coal gasification powerplant,
a requirement that the taxpayer shall pay an average wage to its
employees at the integrated coal gasification powerplant, other
than highly compensated employees, in each taxable year that
a tax credit is available, that equals at least one hundred
twenty-five percent (125%) of the average county wage in the
county in which the integrated coal gasification powerplant is
located.
(6) For a project involving a qualified investment in an
integrated coal gasification powerplant, a requirement that the
taxpayer will maintain at the location where the qualified
investment is made, during the term of the tax credit, a total
payroll that is at least equal to the payroll that existed on the
date that the taxpayer placed the integrated coal gasification
powerplant into service.
(7) A requirement that:
(A) one hundred percent (100%) of the coal used:
(i) at the integrated coal gasification powerplant, for a
project involving a qualified investment in an integrated
coal gasification powerplant; or
(ii) as fuel in a fluidized bed combustion unit, in a project
involving a qualified investment in a fluidized bed
combustion technology, if the unit is dedicated primarily
to serving Indiana retail electric utility consumers;
must be Indiana coal, unless the applicant wishes to assign
the tax credit as allowed under section 20.5(c) of this chapter
or elects to receive a refundable tax credit under section 20.7
of this chapter and the applicant certifies to the corporation
that partial use of other coal is necessary to result in lower
rates for Indiana retail utility customers; or
(B) seventy-five percent (75%) of the coal used as fuel in a
fluidized bed combustion unit must be Indiana coal, in a
project involving a qualified investment in a fluidized bed
combustion technology, if the unit is not dedicated primarily
to serving Indiana retail electric utility consumers.
(8) A requirement that the taxpayer obtain from the commission
a determination under IC 8-1-8.5-2 that public convenience and
necessity require, or will require:
(A) the construction of the taxpayer's integrated coal
gasification powerplant, in the case of a project involving a
qualified investment in an integrated coal gasification
powerplant; or
(B) the installation of the taxpayer's fluidized bed
combustion unit, in the case of a project involving a
qualified investment in a fluidized bed combustion
technology.
(b) A taxpayer must comply with the terms of the agreement
described in subsection (a) to receive an annual installment of the tax
credit awarded under this chapter. The corporation shall annually
determine whether the taxpayer is in compliance with the agreement.
If the corporation determines that the taxpayer is in compliance, the
corporation shall issue a certificate of compliance to the taxpayer.
As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.16; P.L.175-2007, SEC.6; P.L.52-2008, SEC.1;
P.L.182-2009(ss), SEC.203.
IC 6-3.1-29-20 Allocation of credit among shareholders, partners, and members
Sec. 20. (a) This section applies if a qualified investment is made
by a pass through entity or by taxpayers who are co-owners of an
integrated coal gasification powerplant or a fluidized bed combustion
technology.
(b) If the credit allowed by this chapter for a taxable year is
greater than the state tax liability of the pass through entity against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year in excess of the pass through entity's state tax
liability for the taxable year; multiplied by
(2) in the case of a pass through entity described in:
(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the
percentage of the pass through entity's distributive income to
which the shareholder, partner, or member is entitled; and
(ii) section 9(5) or 9(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.
(c) If an integrated coal gasification powerplant or a fluidized bed
combustion technology is co-owned by two (2) or more taxpayers,
the amount of the credit that may be allowed to a co-owner in a
taxable year is equal to:
(1) the tax credit determined under sections 15 and 16 of this
chapter with respect to the total qualified investment in the
integrated coal gasification powerplant or fluidized bed
combustion technology; multiplied by
(2) the co-owner's percentage of ownership in the integrated
coal gasification powerplant or fluidized bed combustion
technology.
(d) The amount of an annual installment of the credit allowed to
a shareholder, partner, or member of a pass through entity or a
co-owner shall be determined under section 16 of this chapter
modified as follows:
(1) Section 16(b) STEP ONE (A) of this chapter shall be based
on the percentage of the credit allowed to the shareholder,
partner, member, or co-owner under this section.
(2) Section 16(b) STEP ONE (B) of this chapter shall be based
on the:
(A) state tax liability; or
(B) utilities receipts tax liability;
of the shareholder, partner, member, or co-owner. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.17. IC 6-3.1-29-20.5 Assignability of credit by contract
Sec. 20.5. (a) Subject to subsection (c), part or all of the credit to
which a taxpayer is entitled under section 15 of this chapter may be
assigned by the taxpayer to one (1) or more utilities that have entered
into a contract that:
(1) is approved by the Indiana utility regulatory commission;
(2) provides for the purchase of electricity or substitute natural
gas (as defined in IC 8-1-2-42.1) by the utility from the
taxpayer; and
(3) expressly allows the assignment of tax credits under this
section.
A tax credit assigned to a utility under this section must be applied
against the utility's state tax liability in the order set forth in section
14(b) of this chapter.
(b) Notwithstanding section 16 of this chapter, any part of a
taxpayer's credit under section 15 of this chapter that is assigned by
the taxpayer under this section must be taken in twenty (20) annual
installments, beginning with the year in which the taxpayer places
into service an integrated coal gasification powerplant or a fluidized
bed combustion technology.
(c) The part of a taxpayer's credit under section 15 of this chapter
that may be assigned by the taxpayer with respect to any one (1)
taxable year is subject to the following:
(1) The total amount of the taxpayer's credit under section 15 of
this chapter that may be assigned by the taxpayer with respect
to the taxable year may not exceed the product of:
(A) the total credit amount to which the taxpayer is entitled
under section 15 of this chapter, divided by twenty (20);
multiplied by
(B) the percentage of Indiana coal used in the taxpayer's
integrated coal gasification powerplant or fluidized bed
combustion technology in the taxable year for which the
annual installment of the credit is allowed.
(2) The part of the amount determined under subdivision (1)
that may be assigned to any one (1) utility with respect to the
taxable year may not exceed the greater of:
(A) the utility's total state tax liability for the taxable year,
multiplied by twenty-five percent (25%); or
(B) the utility's total utility receipts tax liability for the
taxable year.
(d) Any part of the taxpayer's credit under section 15 of this
chapter that is assigned to one (1) or more utilities by a taxpayer
under this section with respect to a taxable year may not be claimed
by the taxpayer or the taxpayer's shareholders, partners, or members.
However, any part of the credit to which the taxpayer is entitled
under section 15 of this chapter and that is not assigned by the
taxpayer with respect to the taxable year may be taken and applied
by the taxpayer, or the taxpayer's shareholders, partners, or members,
in accordance with sections 16 and 20 of this chapter.
As added by P.L.175-2007, SEC.7.
IC 6-3.1-29-20.7 Findings; election to receive refundable credit
Sec. 20.7. (a) The findings in IC 4-4-11.6-12 are incorporated by
reference into this section. The general assembly further finds that
the refundable credit provided by this section is also necessary to
achieve the purposes set forth in IC 4-4-11.6-12.
(b) This section applies to a taxpayer that:
(1) makes a qualified investment in an integrated coal
gasification powerplant; and
(2) enters into a contract to sell substitute natural gas (as
defined in IC 4-4-11.6-11) to the Indiana finance authority
under IC 4-4-11.6.
(c) Notwithstanding anything in this chapter to the contrary, a
taxpayer may elect in the manner prescribed by the department to
take and receive all credits to which the taxpayer is entitled under
section 15 of this chapter (without regard to section 16 of this
chapter) as a refundable credit against the taxpayer's state tax
liability, if any, over a period of twenty (20) taxable years, beginning
not later than the taxable year in which the taxpayer places into
service its integrated coal gasification powerplant. If, in a taxable
year, a taxpayer that makes an election under this subsection has no
state tax liability, the department shall pay to the taxpayer the full
amount of the refundable credit for that taxable year.
(d) The amount of a credit to which a taxpayer that makes an
election under subsection (c) is entitled for a particular taxable year
equals the result determined under STEP FOUR:
STEP ONE: Determine the total credit amount to which the
taxpayer is entitled under section 15 of this chapter (without
regard to section 16 of this chapter).
STEP TWO: Divide the STEP ONE amount by twenty (20).
STEP THREE: Determine the ratio of Indiana coal to total coal
used in the taxpayer's integrated coal gasification powerplant in
the taxable year.
STEP FOUR: Multiply the STEP TWO and STEP THREE
amounts.
(e) A taxpayer shall claim a refund under this section in the
manner provided by the department. The department shall pay the
refunded amount to the taxpayer not more than ninety (90) days after
the date on which the refund is claimed.
(f) The shareholders, members, or partners of a pass through
entity that makes an election under subsection (c) are not entitled to
a credit allowed under section 20(b) of this chapter.
(g) A credit allowed under this section is not assignable under
section 20.5 of this chapter. As added by P.L.182-2009(ss), SEC.204.
IC 6-3.1-29-21 Claiming tax credit
Sec. 21. To receive the credit awarded by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department. The taxpayer
shall submit to the department a copy of the commission's
determination required under section 19 of this chapter, a copy of the
taxpayer's certificate of compliance issued under section 19 of this
chapter, and all information that the department determines is
necessary for the calculation of the credit provided by this chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29
Chapter 29. Coal Gasification Technology Investment Tax Credit
IC 6-3.1-29-1 Legislative intent; use of women and minority businesses as
vendors
Sec. 1. The general assembly declares that the opportunity for the
participation of underutilized small businesses, especially women
and minority business enterprises, in the coal gasification industry is
essential if social and economic parity is to be obtained by women
and minority business persons and if the economy of Indiana is to be
stimulated as contemplated by this chapter. A recipient of a credit
under this chapter is encouraged to purchase goods and services from
underutilized small businesses, especially women and minority
business enterprises. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-2 "Commission"
Sec. 2. As used in this chapter, "commission" refers to the Indiana
utility regulatory commission. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-3 "Corporation"
Sec. 3. As used in this chapter, "corporation" refers to the Indiana
economic development corporation established by IC 5-28-3-1. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4 "Department"
Sec. 4. As used in this chapter, "department" refers to the
department of state revenue. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4.5 "Fluidized bed combustion technology"
Sec. 4.5. As used in this chapter, "fluidized bed combustion
technology" means a technology that involves the combustion of fuel
in connection with a bed of inert material, such as limestone or
dolomite, which is held in a fluid like state by the means of air or
other gasses being passed through the materials. As added by P.L.122-2006, SEC.10.
IC 6-3.1-29-5 "Indiana coal"
Sec. 5. As used in this chapter, "Indiana coal" has the meaning set
forth in IC 21-47-1-4. As added by P.L.191-2005, SEC.15. Amended by P.L.2-2007,
SEC.125. IC 6-3.1-29-6 "Integrated coal gasification powerplant"
Sec. 6. As used in this chapter, "integrated coal gasification
powerplant" means a facility that satisfies all the following
requirements:
(1) The facility is located in Indiana and is a newly constructed
energy generating plant.
(2) The facility converts coal into synthesis gas that can be used
as a fuel to generate energy or as a substitute for natural gas.
(3) The facility uses the synthesis gas as a fuel to generate
electric energy or produces synthesis gas that can be used as a
substitute for natural gas.
(4) The facility is dedicated primarily to production of
electricity or gas for use by energy utilities serving Indiana
retail electric or gas utility consumers. As added by P.L.191-2005, SEC.15. Amended by P.L.175-2007,
SEC.4.
IC 6-3.1-29-7 "Minority"
Sec. 7. As used in this chapter, "minority" means a member of a
minority group (as defined in IC 4-13-16.5-1.) As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-8 "Minority business enterprise"
Sec. 8. As used in this chapter, "minority business enterprise" has
the meaning set forth in IC 4-13-16.5-1. As added by P.L.191-2005, SEC.15. Amended by P.L.1-2006,
SEC.144.
IC 6-3.1-29-9 "Pass through entity"
Sec. 9. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company;
(4) a limited liability partnership;
(5) a corporation organized under IC 8-1-13; or
(6) a corporation organized under IC 23-17-1 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-10 "Qualified investment"
Sec. 10. As used in this chapter, "qualified investment" means a
taxpayer's expenditures for:
(1) all real and tangible personal property incorporated in and
used as part of an integrated coal gasification powerplant or a
fluidized bed combustion technology; and
(2) transmission equipment and other real and personal property
located at the site of an integrated coal gasification powerplant
or a fluidized bed combustion technology that is employed
specifically to serve the integrated coal gasification powerplant
or fluidized bed combustion technology. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.11.
IC 6-3.1-29-11 "State tax liability"
Sec. 11. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax);
(3) IC 27-1-18-2 (the insurance premiums tax); and
(4) IC 6-2.3 (the utility receipts tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-12 "Taxpayer"
Sec. 12. As used in this chapter, "taxpayer" means a person, a
corporation, a partnership, or other entity that makes a qualified
investment. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-13 "Women's business enterprise"
Sec. 13. As used in this section, "women's business enterprise"
has the meaning set forth in IC 4-13-16.5-1.3. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-14 Credit
Sec. 14. (a) A taxpayer that:
(1) is awarded a tax credit under this chapter by the corporation;
and
(2) complies with the conditions set forth in this chapter and the
agreement entered into by the corporation and the taxpayer
under this chapter;
is entitled to a credit against the taxpayer's state tax liability for a
taxable year in which the taxpayer places into service an integrated
coal gasification powerplant or a fluidized bed combustion
technology and for the taxable years provided in section 16 of this
chapter.
(b) A tax credit awarded under this chapter must be applied
against the taxpayer's state tax liability in the following order:
(1) Against the taxpayer's liability incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax).
(2) Against the taxpayer's liability incurred under IC 6-5.5 (the
financial institutions tax).
(3) Against the taxpayer's liability incurred under IC 27-1-18-2
(the insurance premiums tax).
(4) Against the taxpayer's liability incurred under IC 6-2.3 (the
utility receipts tax). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.12.
IC 6-3.1-29-15 Computation of credit amount
Sec. 15. (a) Subject to section 16 of this chapter, the amount of
the credit to which a taxpayer is entitled for a qualified investment
in an integrated coal gasification powerplant is equal to the sum of
the following:
(1) Ten percent (10%) of the taxpayer's qualified investment for
the first five hundred million dollars ($500,000,000) invested.
(2) Five percent (5%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000) only if the facility is dedicated primarily to
serving Indiana retail electric or gas utility consumers.
(b) Subject to section 16 of this chapter, the amount of the credit
to which a taxpayer is entitled for a qualified investment in a
fluidized bed combustion technology is equal to the sum of the
following:
(1) Seven percent (7%) of the taxpayer's qualified investment
for the first five hundred million dollars ($500,000,000)
invested.
(2) Three percent (3%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.13; P.L.175-2007, SEC.5.
IC 6-3.1-29-16 Limitations on use of credit
Sec. 16. (a) A credit awarded under section 15 of this chapter
must be taken in ten (10) annual installments, beginning with the
year in which the taxpayer places into service an integrated coal
gasification powerplant or a fluidized bed combustion technology.
(b) Subject to section 20 of this chapter, the amount of an annual
installment of the credit awarded under section 15 of this chapter is
equal to the amount determined in the last of the following STEPS:
STEP ONE: Determine the lesser of:
(A) the credit amount determined under section 15 of this
chapter, divided by ten (10); or
(B) the greater of:
(i) the taxpayer's total state tax liability for the taxable
year, multiplied by twenty-five percent (25%); or
(ii) the taxpayer's liability for the utility receipts tax
imposed under IC 6-2.3 for the taxable year.
STEP TWO: Multiply the STEP ONE amount by the percentage
of Indiana coal used in the taxpayer's integrated coal
gasification powerplant or fluidized bed combustion technology
in the taxable year for which the annual installment of the credit
is allowed.
(c) If the credit allowed by this chapter is available to a member
of an affiliated group of corporations filing a consolidated return
under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied against
the state tax liability of the affiliated group. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.14.
IC 6-3.1-29-17 Preconstruction application for credit
Sec. 17. A person that proposes to place a new integrated coal
gasification powerplant or fluidized bed combustion technology into
service may apply to the corporation before the taxpayer makes the
qualified investment to enter into an agreement for a tax credit under
this chapter. The corporation shall prescribe the form of the
application. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.15.
IC 6-3.1-29-18 Conditions for granting credit application
Sec. 18. After receipt of an application, the corporation may enter
into an agreement with the applicant for a credit under this chapter
if the corporation determines that the taxpayer's proposed investment
satisfies the requirements of this chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-19 Terms of required agreement; certificate of compliance
Sec. 19. (a) The corporation shall enter into an agreement with an
applicant that is awarded a credit under this chapter. The agreement
must include all the following:
(1) A detailed description of the project that is the subject of the
agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The maximum tax credit amount that will be allowed for
each taxable year.
(4) A requirement that the taxpayer shall maintain operations at
the project location for at least ten (10) years during the term
that the tax credit is available.
(5) If the facility is an integrated coal gasification powerplant,
a requirement that the taxpayer shall pay an average wage to its
employees at the integrated coal gasification powerplant, other
than highly compensated employees, in each taxable year that
a tax credit is available, that equals at least one hundred
twenty-five percent (125%) of the average county wage in the
county in which the integrated coal gasification powerplant is
located.
(6) For a project involving a qualified investment in an
integrated coal gasification powerplant, a requirement that the
taxpayer will maintain at the location where the qualified
investment is made, during the term of the tax credit, a total
payroll that is at least equal to the payroll that existed on the
date that the taxpayer placed the integrated coal gasification
powerplant into service.
(7) A requirement that:
(A) one hundred percent (100%) of the coal used:
(i) at the integrated coal gasification powerplant, for a
project involving a qualified investment in an integrated
coal gasification powerplant; or
(ii) as fuel in a fluidized bed combustion unit, in a project
involving a qualified investment in a fluidized bed
combustion technology, if the unit is dedicated primarily
to serving Indiana retail electric utility consumers;
must be Indiana coal, unless the applicant wishes to assign
the tax credit as allowed under section 20.5(c) of this chapter
or elects to receive a refundable tax credit under section 20.7
of this chapter and the applicant certifies to the corporation
that partial use of other coal is necessary to result in lower
rates for Indiana retail utility customers; or
(B) seventy-five percent (75%) of the coal used as fuel in a
fluidized bed combustion unit must be Indiana coal, in a
project involving a qualified investment in a fluidized bed
combustion technology, if the unit is not dedicated primarily
to serving Indiana retail electric utility consumers.
(8) A requirement that the taxpayer obtain from the commission
a determination under IC 8-1-8.5-2 that public convenience and
necessity require, or will require:
(A) the construction of the taxpayer's integrated coal
gasification powerplant, in the case of a project involving a
qualified investment in an integrated coal gasification
powerplant; or
(B) the installation of the taxpayer's fluidized bed
combustion unit, in the case of a project involving a
qualified investment in a fluidized bed combustion
technology.
(b) A taxpayer must comply with the terms of the agreement
described in subsection (a) to receive an annual installment of the tax
credit awarded under this chapter. The corporation shall annually
determine whether the taxpayer is in compliance with the agreement.
If the corporation determines that the taxpayer is in compliance, the
corporation shall issue a certificate of compliance to the taxpayer.
As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.16; P.L.175-2007, SEC.6; P.L.52-2008, SEC.1;
P.L.182-2009(ss), SEC.203.
IC 6-3.1-29-20 Allocation of credit among shareholders, partners, and members
Sec. 20. (a) This section applies if a qualified investment is made
by a pass through entity or by taxpayers who are co-owners of an
integrated coal gasification powerplant or a fluidized bed combustion
technology.
(b) If the credit allowed by this chapter for a taxable year is
greater than the state tax liability of the pass through entity against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year in excess of the pass through entity's state tax
liability for the taxable year; multiplied by
(2) in the case of a pass through entity described in:
(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the
percentage of the pass through entity's distributive income to
which the shareholder, partner, or member is entitled; and
(ii) section 9(5) or 9(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.
(c) If an integrated coal gasification powerplant or a fluidized bed
combustion technology is co-owned by two (2) or more taxpayers,
the amount of the credit that may be allowed to a co-owner in a
taxable year is equal to:
(1) the tax credit determined under sections 15 and 16 of this
chapter with respect to the total qualified investment in the
integrated coal gasification powerplant or fluidized bed
combustion technology; multiplied by
(2) the co-owner's percentage of ownership in the integrated
coal gasification powerplant or fluidized bed combustion
technology.
(d) The amount of an annual installment of the credit allowed to
a shareholder, partner, or member of a pass through entity or a
co-owner shall be determined under section 16 of this chapter
modified as follows:
(1) Section 16(b) STEP ONE (A) of this chapter shall be based
on the percentage of the credit allowed to the shareholder,
partner, member, or co-owner under this section.
(2) Section 16(b) STEP ONE (B) of this chapter shall be based
on the:
(A) state tax liability; or
(B) utilities receipts tax liability;
of the shareholder, partner, member, or co-owner. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.17. IC 6-3.1-29-20.5 Assignability of credit by contract
Sec. 20.5. (a) Subject to subsection (c), part or all of the credit to
which a taxpayer is entitled under section 15 of this chapter may be
assigned by the taxpayer to one (1) or more utilities that have entered
into a contract that:
(1) is approved by the Indiana utility regulatory commission;
(2) provides for the purchase of electricity or substitute natural
gas (as defined in IC 8-1-2-42.1) by the utility from the
taxpayer; and
(3) expressly allows the assignment of tax credits under this
section.
A tax credit assigned to a utility under this section must be applied
against the utility's state tax liability in the order set forth in section
14(b) of this chapter.
(b) Notwithstanding section 16 of this chapter, any part of a
taxpayer's credit under section 15 of this chapter that is assigned by
the taxpayer under this section must be taken in twenty (20) annual
installments, beginning with the year in which the taxpayer places
into service an integrated coal gasification powerplant or a fluidized
bed combustion technology.
(c) The part of a taxpayer's credit under section 15 of this chapter
that may be assigned by the taxpayer with respect to any one (1)
taxable year is subject to the following:
(1) The total amount of the taxpayer's credit under section 15 of
this chapter that may be assigned by the taxpayer with respect
to the taxable year may not exceed the product of:
(A) the total credit amount to which the taxpayer is entitled
under section 15 of this chapter, divided by twenty (20);
multiplied by
(B) the percentage of Indiana coal used in the taxpayer's
integrated coal gasification powerplant or fluidized bed
combustion technology in the taxable year for which the
annual installment of the credit is allowed.
(2) The part of the amount determined under subdivision (1)
that may be assigned to any one (1) utility with respect to the
taxable year may not exceed the greater of:
(A) the utility's total state tax liability for the taxable year,
multiplied by twenty-five percent (25%); or
(B) the utility's total utility receipts tax liability for the
taxable year.
(d) Any part of the taxpayer's credit under section 15 of this
chapter that is assigned to one (1) or more utilities by a taxpayer
under this section with respect to a taxable year may not be claimed
by the taxpayer or the taxpayer's shareholders, partners, or members.
However, any part of the credit to which the taxpayer is entitled
under section 15 of this chapter and that is not assigned by the
taxpayer with respect to the taxable year may be taken and applied
by the taxpayer, or the taxpayer's shareholders, partners, or members,
in accordance with sections 16 and 20 of this chapter.
As added by P.L.175-2007, SEC.7.
IC 6-3.1-29-20.7 Findings; election to receive refundable credit
Sec. 20.7. (a) The findings in IC 4-4-11.6-12 are incorporated by
reference into this section. The general assembly further finds that
the refundable credit provided by this section is also necessary to
achieve the purposes set forth in IC 4-4-11.6-12.
(b) This section applies to a taxpayer that:
(1) makes a qualified investment in an integrated coal
gasification powerplant; and
(2) enters into a contract to sell substitute natural gas (as
defined in IC 4-4-11.6-11) to the Indiana finance authority
under IC 4-4-11.6.
(c) Notwithstanding anything in this chapter to the contrary, a
taxpayer may elect in the manner prescribed by the department to
take and receive all credits to which the taxpayer is entitled under
section 15 of this chapter (without regard to section 16 of this
chapter) as a refundable credit against the taxpayer's state tax
liability, if any, over a period of twenty (20) taxable years, beginning
not later than the taxable year in which the taxpayer places into
service its integrated coal gasification powerplant. If, in a taxable
year, a taxpayer that makes an election under this subsection has no
state tax liability, the department shall pay to the taxpayer the full
amount of the refundable credit for that taxable year.
(d) The amount of a credit to which a taxpayer that makes an
election under subsection (c) is entitled for a particular taxable year
equals the result determined under STEP FOUR:
STEP ONE: Determine the total credit amount to which the
taxpayer is entitled under section 15 of this chapter (without
regard to section 16 of this chapter).
STEP TWO: Divide the STEP ONE amount by twenty (20).
STEP THREE: Determine the ratio of Indiana coal to total coal
used in the taxpayer's integrated coal gasification powerplant in
the taxable year.
STEP FOUR: Multiply the STEP TWO and STEP THREE
amounts.
(e) A taxpayer shall claim a refund under this section in the
manner provided by the department. The department shall pay the
refunded amount to the taxpayer not more than ninety (90) days after
the date on which the refund is claimed.
(f) The shareholders, members, or partners of a pass through
entity that makes an election under subsection (c) are not entitled to
a credit allowed under section 20(b) of this chapter.
(g) A credit allowed under this section is not assignable under
section 20.5 of this chapter. As added by P.L.182-2009(ss), SEC.204.
IC 6-3.1-29-21 Claiming tax credit
Sec. 21. To receive the credit awarded by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department. The taxpayer
shall submit to the department a copy of the commission's
determination required under section 19 of this chapter, a copy of the
taxpayer's certificate of compliance issued under section 19 of this
chapter, and all information that the department determines is
necessary for the calculation of the credit provided by this chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29
Chapter 29. Coal Gasification Technology Investment Tax Credit
IC 6-3.1-29-1 Legislative intent; use of women and minority businesses as
vendors
Sec. 1. The general assembly declares that the opportunity for the
participation of underutilized small businesses, especially women
and minority business enterprises, in the coal gasification industry is
essential if social and economic parity is to be obtained by women
and minority business persons and if the economy of Indiana is to be
stimulated as contemplated by this chapter. A recipient of a credit
under this chapter is encouraged to purchase goods and services from
underutilized small businesses, especially women and minority
business enterprises. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-2 "Commission"
Sec. 2. As used in this chapter, "commission" refers to the Indiana
utility regulatory commission. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-3 "Corporation"
Sec. 3. As used in this chapter, "corporation" refers to the Indiana
economic development corporation established by IC 5-28-3-1. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4 "Department"
Sec. 4. As used in this chapter, "department" refers to the
department of state revenue. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-4.5 "Fluidized bed combustion technology"
Sec. 4.5. As used in this chapter, "fluidized bed combustion
technology" means a technology that involves the combustion of fuel
in connection with a bed of inert material, such as limestone or
dolomite, which is held in a fluid like state by the means of air or
other gasses being passed through the materials. As added by P.L.122-2006, SEC.10.
IC 6-3.1-29-5 "Indiana coal"
Sec. 5. As used in this chapter, "Indiana coal" has the meaning set
forth in IC 21-47-1-4. As added by P.L.191-2005, SEC.15. Amended by P.L.2-2007,
SEC.125. IC 6-3.1-29-6 "Integrated coal gasification powerplant"
Sec. 6. As used in this chapter, "integrated coal gasification
powerplant" means a facility that satisfies all the following
requirements:
(1) The facility is located in Indiana and is a newly constructed
energy generating plant.
(2) The facility converts coal into synthesis gas that can be used
as a fuel to generate energy or as a substitute for natural gas.
(3) The facility uses the synthesis gas as a fuel to generate
electric energy or produces synthesis gas that can be used as a
substitute for natural gas.
(4) The facility is dedicated primarily to production of
electricity or gas for use by energy utilities serving Indiana
retail electric or gas utility consumers. As added by P.L.191-2005, SEC.15. Amended by P.L.175-2007,
SEC.4.
IC 6-3.1-29-7 "Minority"
Sec. 7. As used in this chapter, "minority" means a member of a
minority group (as defined in IC 4-13-16.5-1.) As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-8 "Minority business enterprise"
Sec. 8. As used in this chapter, "minority business enterprise" has
the meaning set forth in IC 4-13-16.5-1. As added by P.L.191-2005, SEC.15. Amended by P.L.1-2006,
SEC.144.
IC 6-3.1-29-9 "Pass through entity"
Sec. 9. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company;
(4) a limited liability partnership;
(5) a corporation organized under IC 8-1-13; or
(6) a corporation organized under IC 23-17-1 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-10 "Qualified investment"
Sec. 10. As used in this chapter, "qualified investment" means a
taxpayer's expenditures for:
(1) all real and tangible personal property incorporated in and
used as part of an integrated coal gasification powerplant or a
fluidized bed combustion technology; and
(2) transmission equipment and other real and personal property
located at the site of an integrated coal gasification powerplant
or a fluidized bed combustion technology that is employed
specifically to serve the integrated coal gasification powerplant
or fluidized bed combustion technology. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.11.
IC 6-3.1-29-11 "State tax liability"
Sec. 11. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax);
(3) IC 27-1-18-2 (the insurance premiums tax); and
(4) IC 6-2.3 (the utility receipts tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-12 "Taxpayer"
Sec. 12. As used in this chapter, "taxpayer" means a person, a
corporation, a partnership, or other entity that makes a qualified
investment. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-13 "Women's business enterprise"
Sec. 13. As used in this section, "women's business enterprise"
has the meaning set forth in IC 4-13-16.5-1.3. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-14 Credit
Sec. 14. (a) A taxpayer that:
(1) is awarded a tax credit under this chapter by the corporation;
and
(2) complies with the conditions set forth in this chapter and the
agreement entered into by the corporation and the taxpayer
under this chapter;
is entitled to a credit against the taxpayer's state tax liability for a
taxable year in which the taxpayer places into service an integrated
coal gasification powerplant or a fluidized bed combustion
technology and for the taxable years provided in section 16 of this
chapter.
(b) A tax credit awarded under this chapter must be applied
against the taxpayer's state tax liability in the following order:
(1) Against the taxpayer's liability incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax).
(2) Against the taxpayer's liability incurred under IC 6-5.5 (the
financial institutions tax).
(3) Against the taxpayer's liability incurred under IC 27-1-18-2
(the insurance premiums tax).
(4) Against the taxpayer's liability incurred under IC 6-2.3 (the
utility receipts tax). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.12.
IC 6-3.1-29-15 Computation of credit amount
Sec. 15. (a) Subject to section 16 of this chapter, the amount of
the credit to which a taxpayer is entitled for a qualified investment
in an integrated coal gasification powerplant is equal to the sum of
the following:
(1) Ten percent (10%) of the taxpayer's qualified investment for
the first five hundred million dollars ($500,000,000) invested.
(2) Five percent (5%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000) only if the facility is dedicated primarily to
serving Indiana retail electric or gas utility consumers.
(b) Subject to section 16 of this chapter, the amount of the credit
to which a taxpayer is entitled for a qualified investment in a
fluidized bed combustion technology is equal to the sum of the
following:
(1) Seven percent (7%) of the taxpayer's qualified investment
for the first five hundred million dollars ($500,000,000)
invested.
(2) Three percent (3%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000). As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.13; P.L.175-2007, SEC.5.
IC 6-3.1-29-16 Limitations on use of credit
Sec. 16. (a) A credit awarded under section 15 of this chapter
must be taken in ten (10) annual installments, beginning with the
year in which the taxpayer places into service an integrated coal
gasification powerplant or a fluidized bed combustion technology.
(b) Subject to section 20 of this chapter, the amount of an annual
installment of the credit awarded under section 15 of this chapter is
equal to the amount determined in the last of the following STEPS:
STEP ONE: Determine the lesser of:
(A) the credit amount determined under section 15 of this
chapter, divided by ten (10); or
(B) the greater of:
(i) the taxpayer's total state tax liability for the taxable
year, multiplied by twenty-five percent (25%); or
(ii) the taxpayer's liability for the utility receipts tax
imposed under IC 6-2.3 for the taxable year.
STEP TWO: Multiply the STEP ONE amount by the percentage
of Indiana coal used in the taxpayer's integrated coal
gasification powerplant or fluidized bed combustion technology
in the taxable year for which the annual installment of the credit
is allowed.
(c) If the credit allowed by this chapter is available to a member
of an affiliated group of corporations filing a consolidated return
under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied against
the state tax liability of the affiliated group. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.14.
IC 6-3.1-29-17 Preconstruction application for credit
Sec. 17. A person that proposes to place a new integrated coal
gasification powerplant or fluidized bed combustion technology into
service may apply to the corporation before the taxpayer makes the
qualified investment to enter into an agreement for a tax credit under
this chapter. The corporation shall prescribe the form of the
application. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.15.
IC 6-3.1-29-18 Conditions for granting credit application
Sec. 18. After receipt of an application, the corporation may enter
into an agreement with the applicant for a credit under this chapter
if the corporation determines that the taxpayer's proposed investment
satisfies the requirements of this chapter. As added by P.L.191-2005, SEC.15.
IC 6-3.1-29-19 Terms of required agreement; certificate of compliance
Sec. 19. (a) The corporation shall enter into an agreement with an
applicant that is awarded a credit under this chapter. The agreement
must include all the following:
(1) A detailed description of the project that is the subject of the
agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The maximum tax credit amount that will be allowed for
each taxable year.
(4) A requirement that the taxpayer shall maintain operations at
the project location for at least ten (10) years during the term
that the tax credit is available.
(5) If the facility is an integrated coal gasification powerplant,
a requirement that the taxpayer shall pay an average wage to its
employees at the integrated coal gasification powerplant, other
than highly compensated employees, in each taxable year that
a tax credit is available, that equals at least one hundred
twenty-five percent (125%) of the average county wage in the
county in which the integrated coal gasification powerplant is
located.
(6) For a project involving a qualified investment in an
integrated coal gasification powerplant, a requirement that the
taxpayer will maintain at the location where the qualified
investment is made, during the term of the tax credit, a total
payroll that is at least equal to the payroll that existed on the
date that the taxpayer placed the integrated coal gasification
powerplant into service.
(7) A requirement that:
(A) one hundred percent (100%) of the coal used:
(i) at the integrated coal gasification powerplant, for a
project involving a qualified investment in an integrated
coal gasification powerplant; or
(ii) as fuel in a fluidized bed combustion unit, in a project
involving a qualified investment in a fluidized bed
combustion technology, if the unit is dedicated primarily
to serving Indiana retail electric utility consumers;
must be Indiana coal, unless the applicant wishes to assign
the tax credit as allowed under section 20.5(c) of this chapter
or elects to receive a refundable tax credit under section 20.7
of this chapter and the applicant certifies to the corporation
that partial use of other coal is necessary to result in lower
rates for Indiana retail utility customers; or
(B) seventy-five percent (75%) of the coal used as fuel in a
fluidized bed combustion unit must be Indiana coal, in a
project involving a qualified investment in a fluidized bed
combustion technology, if the unit is not dedicated primarily
to serving Indiana retail electric utility consumers.
(8) A requirement that the taxpayer obtain from the commission
a determination under IC 8-1-8.5-2 that public convenience and
necessity require, or will require:
(A) the construction of the taxpayer's integrated coal
gasification powerplant, in the case of a project involving a
qualified investment in an integrated coal gasification
powerplant; or
(B) the installation of the taxpayer's fluidized bed
combustion unit, in the case of a project involving a
qualified investment in a fluidized bed combustion
technology.
(b) A taxpayer must comply with the terms of the agreement
described in subsection (a) to receive an annual installment of the tax
credit awarded under this chapter. The corporation shall annually
determine whether the taxpayer is in compliance with the agreement.
If the corporation determines that the taxpayer is in compliance, the
corporation shall issue a certificate of compliance to the taxpayer.
As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.16; P.L.175-2007, SEC.6; P.L.52-2008, SEC.1;
P.L.182-2009(ss), SEC.203.
IC 6-3.1-29-20 Allocation of credit among shareholders, partners, and members
Sec. 20. (a) This section applies if a qualified investment is made
by a pass through entity or by taxpayers who are co-owners of an
integrated coal gasification powerplant or a fluidized bed combustion
technology.
(b) If the credit allowed by this chapter for a taxable year is
greater than the state tax liability of the pass through entity against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year in excess of the pass through entity's state tax
liability for the taxable year; multiplied by
(2) in the case of a pass through entity described in:
(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the
percentage of the pass through entity's distributive income to
which the shareholder, partner, or member is entitled; and
(ii) section 9(5) or 9(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.
(c) If an integrated coal gasification powerplant or a fluidized bed
combustion technology is co-owned by two (2) or more taxpayers,
the amount of the credit that may be allowed to a co-owner in a
taxable year is equal to:
(1) the tax credit determined under sections 15 and 16 of this
chapter with respect to the total qualified investment in the
integrated coal gasification powerplant or fluidized bed
combustion technology; multiplied by
(2) the co-owner's percentage of ownership in the integrated
coal gasification powerplant or fluidized bed combustion
technology.
(d) The amount of an annual installment of the credit allowed to
a shareholder, partner, or member of a pass through entity or a
co-owner shall be determined under section 16 of this chapter
modified as follows:
(1) Section 16(b) STEP ONE (A) of this chapter shall be based
on the percentage of the credit allowed to the shareholder,
partner, member, or co-owner under this section.
(2) Section 16(b) STEP ONE (B) of this chapter shall be based
on the:
(A) state tax liability; or
(B) utilities receipts tax liability;
of the shareholder, partner, member, or co-owner. As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006,
SEC.17. IC 6-3.1-29-20.5 Assignability of credit by contract
Sec. 20.5. (a) Subject to subsection (c), part or all of the credit to
which a taxpayer is entitled under section 15 of this chapter may be
assigned by the taxpayer to one (1) or more utilities that have entered
into a contract that:
(1) is approved by the Indiana utility regulatory commission;
(2) provides for the purchase of electricity or substitute natural
gas (as defined in IC 8-1-2-42.1) by the utility from the
taxpayer; and
(3) expressly allows the assignment of tax credits under this
section.
A tax credit assigned to a utility under this section must be applied
against the utility's state tax liability in the order set forth in section
14(b) of this chapter.
(b) Notwithstanding section 16 of this chapter, any part of a
taxpayer's credit under section 15 of this chapter that is assigned by
the taxpayer under this section must be taken in twenty (20) annual
installments, beginning with the year in which the taxpayer places
into service an integrated coal gasification powerplant or a fluidized
bed combustion technology.
(c) The part of a taxpayer's credit under section 15 of this chapter
that may be assigned by the taxpayer with respect to any one (1)
taxable year is subject to the following:
(1) The total amount of the taxpayer's credit under section 15 of
this chapter that may be assigned by the taxpayer with respect
to the taxable year may not exceed the product of:
(A) the total credit amount to which the taxpayer is entitled
under section 15 of this chapter, divided by twenty (20);
multiplied by
(B) the percentage of Indiana coal used in the taxpayer's
integrated coal gasification powerplant or fluidized bed
combustion technology in the taxable year for which the
annual installment of the credit is allowed.
(2) The part of the amount determined under subdivision (1)
that may be assigned to any one (1) utility with respect to the
taxable year may not exceed the greater of:
(A) the utility's total state tax liability for the taxable year,
multiplied by twenty-five percent (25%); or
(B) the utility's total utility receipts tax liability for the
taxable year.
(d) Any part of the taxpayer's credit under section 15 of this
chapter that is assigned to one (1) or more utilities by a taxpayer
under this section with respect to a taxable year may not be claimed
by the taxpayer or the taxpayer's shareholders, partners, or members.
However, any part of the credit to which the taxpayer is entitled
under section 15 of this chapter and that is not assigned by the
taxpayer with respect to the taxable year may be taken and applied
by the taxpayer, or the taxpayer's shareholders, partners, or members,
in accordance with sections 16 and 20 of this chapter.
As added by P.L.175-2007, SEC.7.
IC 6-3.1-29-20.7 Findings; election to receive refundable credit
Sec. 20.7. (a) The findings in IC 4-4-11.6-12 are incorporated by
reference into this section. The general assembly further finds that
the refundable credit provided by this section is also necessary to
achieve the purposes set forth in IC 4-4-11.6-12.
(b) This section applies to a taxpayer that:
(1) makes a qualified investment in an integrated coal
gasification powerplant; and
(2) enters into a contract to sell substitute natural gas (as
defined in IC 4-4-11.6-11) to the Indiana finance authority
under IC 4-4-11.6.
(c) Notwithstanding anything in this chapter to the contrary, a
taxpayer may elect in the manner prescribed by the department to
take and receive all credits to which the taxpayer is entitled under
section 15 of this chapter (without regard to section 16 of this
chapter) as a refundable credit against the taxpayer's state tax
liability, if any, over a period of twenty (20) taxable years, beginning
not later than the taxable year in which the taxpayer places into
service its integrated coal gasification powerplant. If, in a taxable
year, a taxpayer that makes an election under this subsection has no
state tax liability, the department shall pay to the taxpayer the full
amount of the refundable credit for that taxable year.
(d) The amount of a credit to which a taxpayer that makes an
election under subsection (c) is entitled for a particular taxable year
equals the result determined under STEP FOUR:
STEP ONE: Determine the total credit amount to which the
taxpayer is entitled under section 15 of this chapter (without
regard to section 16 of this chapter).
STEP TWO: Divide the STEP ONE amount by twenty (20).
STEP THREE: Determine the ratio of Indiana coal to total coal
used in the taxpayer's integrated coal gasification powerplant in
the taxable year.
STEP FOUR: Multiply the STEP TWO and STEP THREE
amounts.
(e) A taxpayer shall claim a refund under this section in the
manner provided by the department. The department shall pay the
refunded amount to the taxpayer not more than ninety (90) days after
the date on which the refund is claimed.
(f) The shareholders, members, or partners of a pass through
entity that makes an election under subsection (c) are not entitled to
a credit allowed under section 20(b) of this chapter.
(g) A credit allowed under this section is not assignable under
section 20.5 of this chapter. As added by P.L.182-2009(ss), SEC.204.
IC 6-3.1-29-21 Claiming tax credit
Sec. 21. To receive the credit awarded by this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department. The taxpayer
shall submit to the department a copy of the commission's
determination required under section 19 of this chapter, a copy of the
taxpayer's certificate of compliance issued under section 19 of this
chapter, and all information that the department determines is
necessary for the calculation of the credit provided by this chapter. As added by P.L.191-2005, SEC.15.
