Sec. 2. (a) The tax credits a taxpayer is entitled to shall be applied against the taxpayer’s tax liabilities in the following order:

(1) First, credits which may not be refunded to a taxpayer nor carried over and applied against any tax liability for any succeeding taxable year.

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Terms Used In Indiana Code 6-3.1-1-2

  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) Second, credits which may not be refunded to a taxpayer, but which may be carried over and applied against any tax liability for any succeeding taxable year.

(3) Third, credits which will be refunded to a taxpayer to the extent the credit exceeds the tax liability it is to be applied against.

     (b) Credits described in subsection (a)(2) shall be applied against a taxpayer’s tax liabilities so that the credits which may be applied to the fewest succeeding taxable years are utilized first.

As added by P.L.51-1984, SEC.1.