Sec. 20.5. (a) Subject to subsection (c), part or all of the credit to which a taxpayer is entitled under section 15 of this chapter may be assigned by the taxpayer to one (1) or more utilities that have entered into a contract that:

(1) is approved by the Indiana utility regulatory commission;

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 6-3.1-29-20.5

  • commission: refers to the Indiana utility regulatory commission. See Indiana Code 6-3.1-29-2
  • Contract: A legal written agreement that becomes binding when signed.
  • fluidized bed combustion technology: means a technology that involves the combustion of fuel in connection with a bed of inert material, such as limestone or dolomite, which is held in a fluid like state by the means of air or other gasses being passed through the materials. See Indiana Code 6-3.1-29-4.5
  • Indiana coal: has the meaning set forth in IC 21-47-1-4. See Indiana Code 6-3.1-29-5
  • integrated coal gasification powerplant: means a facility that satisfies all the following requirements:

    Indiana Code 6-3.1-29-6

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

    Indiana Code 6-3.1-29-11

  • taxpayer: means a person, a corporation, a partnership, or other entity that makes a qualified investment. See Indiana Code 6-3.1-29-12
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) provides for the purchase of electricity or substitute natural gas (as defined in IC 8-1-2-42.1) by the utility from the taxpayer; and

(3) expressly allows the assignment of tax credits under this section.

A tax credit assigned to a utility under this section must be applied against the utility’s state tax liability in the order set forth in section 14(b) of this chapter.

     (b) Notwithstanding section 16 of this chapter, any part of a taxpayer’s credit under section 15 of this chapter that is assigned by the taxpayer under this section must be taken in twenty (20) annual installments, beginning with the year in which the taxpayer places into service an integrated coal gasification powerplant or a fluidized bed combustion technology.

     (c) The part of a taxpayer’s credit under section 15 of this chapter that may be assigned by the taxpayer with respect to any one (1) taxable year is subject to the following:

(1) The total amount of the taxpayer’s credit under section 15 of this chapter that may be assigned by the taxpayer with respect to the taxable year may not exceed the product of:

(A) the total credit amount to which the taxpayer is entitled under section 15 of this chapter, divided by twenty (20); multiplied by

(B) the percentage of Indiana coal used in the taxpayer’s integrated coal gasification powerplant or fluidized bed combustion technology in the taxable year for which the annual installment of the credit is allowed.

(2) The part of the amount determined under subdivision (1) that may be assigned to any one (1) utility with respect to the taxable year may not exceed the greater of:

(A) the utility’s total state tax liability for the taxable year, multiplied by twenty-five percent (25%); or

(B) the utility’s total utility receipts tax liability for the taxable year.

     (d) Any part of the taxpayer’s credit under section 15 of this chapter that is assigned to one (1) or more utilities by a taxpayer under this section with respect to a taxable year may not be claimed by the taxpayer or the taxpayer’s shareholders, partners, or members. However, any part of the credit to which the taxpayer is entitled under section 15 of this chapter and that is not assigned by the taxpayer with respect to the taxable year may be taken and applied by the taxpayer, or the taxpayer’s shareholders, partners, or members, in accordance with sections 16 and 20 of this chapter.

As added by P.L.175-2007, SEC.7.