Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 43
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60Tax returns filed using the wrong rates will be adjusted. This may
Community revitalization enhancement district credit
result in a reduced refund, or an increase in the amount you owe.
808
A state and local income tax liability credit is available for a qualified
Step 2: Figuring your credit. Complete lines A, B and C.
investment made within a community revitalization enhancement
district. The expenditure must be made under a plan adopted by an
A. Enter the amount of tax paid to the
advisory commission on industrial development and approved by the
non-Indiana locality ..........................................A___________
Indiana Economic Development Corporation before it is made. The
B. Multiply the amount of income taxed by the
credit is equal to 25 percent of the qualified investment made by the
non-Indiana locality by the rate from Step 1 ...B ___________
taxpayer during the taxable year.
C. Enter the amount of Indiana county
income tax shown on Form IT-40, line 9 .........C ___________
This credit is available to pass-through entities, such as members of
partnerships and S corporations.
The amount of the credit is the lesser of the amounts on A, B or C.
The credit is nonrefundable and cannot be carried back. You may
Note. See the Combined Limitation in the next column.
carry forward any excess credit to the next tax year.
Important. You must enclose either a copy of your W-2s showing the
The allowable credit is the lesser of the available credit or the county
non-Indiana locality amount withheld or a copy of the non-Indiana
tax due on line 9 of Form IT-40. Also, claim any unused amount
locality tax return.
(within certain limitations) on Schedule 6 under line 6 (see instruc-
tions for this credit on page 47).
Remember, you can use this credit only if you have both:
•
A county tax amount on Form IT-40, line 9, and
Contact the Indiana Economic Development Corporation, One North
•
A local income tax that you had to pay outside Indiana.
Capitol, Suite 700, Indianapolis, IN, 46204 for additional information.
Line 2 – County credit for the elderly
Enter code 808 under line 3 if claiming this credit.
(age 65 or older) or permanently disabled
Note. See the Combined Limitation below.
If you take a credit on federal Schedule R, Credit for the Elderly or the
Disabled, and you owe county tax, you may be allowed a credit.
Also, see the Restriction for Certain Tax Credits - Limited to One
per Project below for additional limitations.
Use the following steps to figure your credit.
Restriction for Certain Tax Credits - Limited to One
A. Enter your county tax rate (from
Schedule CT-40, line 4 ................................. A _____________
per Project
B. Divide line A by .15, round to 3 places,
A taxpayer may not be granted more than one credit for the same
and enter result here ..................................... B _____________
project. The credits that are included are the alternative fuel vehicle
C. Enter credit from federal Schedule R ......... C _____________
manufacturer credit, community revitalization enhancement district
D. Multiply B times C and enter result here ... D _____________
credit, enterprise zone investment cost credit, Hoosier business invest-
E. Enter the amount of Indiana county tax
ment credit, industrial recovery credit, military base investment cost
shown on Form IT-40, line 9 ....................... E _____________
credit, and the military base recovery credit.
The amount of the county credit for the elderly is the lesser of the
For more information see Commissioner’s Directive #29 at
amount on D or E. You must attach a copy of federal Schedule R.
Note. See the Combined Limitation in the next column.
Apply this restriction first when figuring your credits. Then apply the
Combined Limitation below.
Example. Melinda is 67 years old. She is entitled to a credit of $550 on
federal Schedule R. Her county tax rate is .015, so the amount on Line
Combined Limitation:
There is one final limitation if you claim
B of the worksheet is .10. Her county tax due is $60. Melinda’s county
more than one credit on lines 1 through 3 of Schedule 6. These credits,
credit for the elderly is $55 (the lesser of [$550 x .10 = $55] or $60).
when combined, cannot be greater than the county tax shown on Form
IT-40 line 9; if they are, adjust the amounts before you enter them. See
Line 3 – Other local credits
the following Order of Application and example for guidance.
The following credit has been assigned a three-digit code number.
When claiming the credit on Schedule 6 under line 3, enter the
Order of Application
name of the credit, the three-digit code number and the amount
First, use the credits which cannot be carried over and applied against
claimed.
your county tax in another year. These credits include the county cred-
it for the elderly and the credit for local taxes paid outside Indiana.
Page 43
IT-40 Booklet 2013
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