Sec. 8. (a) If a pass through entity is awarded a credit under section 7 of this chapter but does not have state tax liability against which the credit may be applied, a shareholder, partner, or member of the pass through entity may receive a credit equal to:

(1) the credit determined for the pass through entity for the taxable year; multiplied by

(2) the percentage of the pass through entity’s distributive income to which the shareholder, partner, or member is entitled.

     (b) The credit provided under subsection (a) is in addition to a credit a shareholder, partner, or member of a pass through entity is otherwise awarded under this chapter. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified expenditure.

     (c) A pass through entity (other than a pass through entity described in section 2(1) of this chapter) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. The pass through entity shall provide to the department a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department.

As added by P.L.236-2023, SEC.67.