Sec. 2. (a) A taxpayer is entitled to a credit against the taxpayer’s state tax liability for a taxable year if the taxpayer:

(1) receives interest on a qualified loan in that taxable year;

Terms Used In Indiana Code 6-3.1-7-2

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Enterprise zone: means an enterprise zone created under IC 5-28-15. See Indiana Code 6-3.1-7-1
  • Pass through entity: means a:

    Indiana Code 6-3.1-7-1

  • Qualified loan: means a loan made to an entity that uses the loan proceeds for:

    Indiana Code 6-3.1-7-1

  • State tax liability: means a taxpayer's total tax liability that is incurred under:

    Indiana Code 6-3.1-7-1

  • Taxpayer: means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability. See Indiana Code 6-3.1-7-1
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) provides the assistance to urban enterprise associations required from zone businesses under IC 5-28-15-5.7(b); and

(3) complies with any requirements adopted by the board of the Indiana economic development corporation under IC 5-28-15 for taxpayers claiming the credit under this chapter.

However, if a taxpayer is located outside of an enterprise zone, subdivision (3) does not require the taxpayer to reinvest its incentives under this section within the enterprise zone, except as provided in subdivision (2).

     (b) The amount of the credit to which a taxpayer is entitled under this section is five percent (5%) multiplied by the amount of interest received by the taxpayer during the taxable year from qualified loans.

     (c) If a pass through entity is entitled to a credit under subsection (a) but does not have state tax liability against which the tax credit may be applied, an individual who is a shareholder, partner, beneficiary, 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; multiplied by

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

The credit provided under this subsection is in addition to a tax credit to which a shareholder, partner, beneficiary, or member of a pass through entity is entitled. However, a pass through entity and an individual who is a shareholder, partner, beneficiary, or member of a pass through entity may not claim more than one (1) credit for the qualified expenditure.

As added by P.L.51-1984, SEC.1. Amended by P.L.120-1999, SEC.5; P.L.73-2000, SEC.2; P.L.4-2005, SEC.52; P.L.146-2018, SEC.20.

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