Sec. 6.5. (a) If a pass through entity is entitled to a credit under section 6 of this chapter but does not have state tax liability against which the tax credit may be applied, an individual who is a shareholder, partner, 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

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Terms Used In Indiana Code 6-3.1-10-6.5

  • pass through entity: means :

    Indiana Code 6-3.1-10-1.7

  • state tax liability: means a taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of the credits that, under Indiana Code 6-3.1-10-3
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(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 tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and an individual who is a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same investment.

As added by P.L.57-1996, SEC.3.