Sec. 3. (a) Subject to the limitations provided in subsection (b) and sections 5 and 6 of this chapter, the department shall grant a tax credit against any state tax liability due equal to fifty percent (50%) of a qualifying contribution or of the amount of the monetary contribution by a person to a qualifying foster care organization that is approved by the department of child services under section 4(c) of this chapter.

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Terms Used In Indiana Code 6-3.1-35.8-3

  • foster care: means living in a place licensed under IC 31-27. See Indiana Code 6-3.1-35.8-1
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: means an individual, a corporation, a limited liability company, a partnership, or another legal entity. See Indiana Code 6-3.1-35.8-1
  • qualifying contribution: means a monetary payment made by a person to the insuring foster youth trust fund established by Indiana Code 6-3.1-35.8-1
  • qualifying foster care organization: means an organization that meets the following qualifications:

    Indiana Code 6-3.1-35.8-1

  • state tax liability: means the taxpayer's total tax liability that is incurred under:

    Indiana Code 6-3.1-35.8-1

  • tax credit: means a deduction from any tax otherwise due under IC 6-3 or Indiana Code 6-3.1-35.8-1
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (b) The tax credit which a taxpayer receives under this chapter may not exceed ten thousand dollars ($10,000) for any taxable year of the taxpayer.

     (c) If a person that is:

(1) exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or

(2) a partnership;

does not have any tax liability against which the credit provided by this section may be applied, a shareholder or a partner of the business firm is entitled to a credit against the shareholder’s or partner’s liability under the adjusted gross income tax.

     (d) The amount of the tax credit provided by this section under subsection (c) is equal to:

(1) the tax credit determined for the business firm for the taxable year under subsection (a); multiplied by

(2) the percentage of the business firm’s distributive income to which the shareholder or the partner is entitled.

The tax credit provided by this section is in addition to any credit to which a shareholder or partner is otherwise entitled under this chapter. However, a business firm and a shareholder or partner of that business firm may not claim a credit under this chapter for the same qualifying contribution or monetary contribution to a qualifying foster care organization.

     (e) To apply a credit against the state tax liability of a business firm or person, the business firm or person must claim the credit on the annual state tax return of the business firm or person in the manner prescribed by the department.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.3.

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