Sec. 3. (a) Except as otherwise provided in this chapter, for each taxable year in the state tax credit period of a qualified project, the holder of a state tax credit awarded under this chapter for the qualified project is entitled to a credit against the holder’s state tax liability for the taxable year in an amount equal to:

(1) the percentage of the state tax credit for the taxable year that the holder retains at the end of the last day of the taxable year, as determined under subsection (c); multiplied by

(2) the amount of the state tax credit for the qualified project for the taxable year, as determined under subsections (d) and (e).

     (b) At the time an eligibility statement is issued to an eligible applicant, the eligible applicant is considered to have acquired one hundred percent (100%) of the state tax credit for each taxable year in the state tax credit period of the qualified project.

     (c) The percentage of a state tax credit for a taxable year that a holder retains at the end of the last day of a taxable year under subsection (a)(1) is equal to:

(1) the sum of the percentages of the state tax credit for the taxable year that the holder acquires before the end of the last day of the taxable year; minus

(2) the sum of the percentages of the state tax credit for the taxable year that the holder transfers before the end of the last day of the taxable year.

     (d) The amount of a state tax credit for a taxable year in the state tax credit period of a qualified project under subsection (a)(2) is equal to:

(1) a factor equal to:

(A) one (1); divided by

(B) the number of taxable years in the state tax credit period for the qualified project; multiplied by

(2) the lesser of:

(A) the amount of the total federal credit allowed for the qualified project over the credit period as defined by Section 42(f) of the Internal Revenue Code (based on Internal Revenue Service Form 8609, Line 1(b) (annual amount multiplied by ten (10) years)), if available, for the qualified project; or

(B) the maximum aggregate amount of state tax credits awarded for the qualified project, as stated in the eligibility statement issued under section 7 of this chapter.

     (e) The department shall determine the amounts of the state tax credits specified under subsection (d) for each taxable year in the state tax credit period of each qualified project as those amounts are able to be computed and promptly publish the amounts on the department’s website to assist holders in claiming the state tax credit provided by this chapter.

As added by P.L.137-2022, SEC.52. Amended by P.L.194-2023, SEC.23.