Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 41
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60Step 2: Figuring your credit. Complete lines A, B and C.
district. The expenditure must be made under a plan adopted by an
advisory commission on industrial development and approved by the
A. Enter the amount of tax paid to the
Indiana Economic Development Corporation before it is made. The
non-Indiana locality ......................................... A ____________
credit is equal to 25 percent of the qualified investment made by the
B. Multiply the amount of income taxed by
taxpayer during the taxable year.
the non-Indiana locality by the rate from
Step 1 ........................................................... B ____________
This credit is available to pass-through entities, such as members of
C. Enter the amount of Indiana county income
partnerships and S corporations.
tax shown on Form IT-40, line 9 ..................... C ____________
The credit is nonrefundable and cannot be carried back. You may carry
The amount of the credit is the lesser of the amounts on A, B or C.
forward any excess credit to the next tax year.
Note. See the Combined Limitation on page 42.
The allowable credit is the lesser of the available credit or the county tax
due on line 9 of Form IT-40. Also, claim any unused amount (within
Important. You must enclose either a copy of your W-2s showing the
certain limitations) on Schedule 6 under line 6 (see instructions for this
non-Indiana locality amount withheld or a copy of the non-Indiana
credit on page 45).
locality tax return.
Contact the Indiana Economic Development Corporation, One North
Remember, you can use this credit only if you have both:
Capitol, Suite 700, Indianapolis, IN, 46204 for additional information.
•
A county tax amount on Form IT-40, line 9, and
•
A local income tax that you had to pay outside Indiana.
Enter code 808 under line 3 if claiming this credit.
Line 2
–
County credit for the elderly
Note. See the Combined Limitation on page 42.
(age 65 or older) or permanently disabled
Also, see the Restriction for Certain Tax Credits - Limited to One per
If you take a credit on federal Schedule R, Credit for the Elderly or the
Project below for additional limitations.
Disabled, and you owe county tax, you may be allowed a credit.
Voluntary remediation credit
836
Use the following steps to figure your credit.
A voluntary remediation credit is available for qualified investments
involving redevelopment of a brownfield and environmental
A. Enter your county tax rate (from Schedule
remediation. The Indiana Department of Environmental Management
CT-40, Section 1 line 4, or Section 2 line 6) A ____________
and the Indiana Development Finance Authority must determine and
B. Divide line A by .15, round to 3 places, and
certify that the costs incurred in a voluntary remediation are qualified
enter result here................................................ B ____________
investments. Upon approval, the credit may be used to offset adjusted
C. Enter credit from federal Schedule R ............ C ____________
gross income tax, county tax, etc.
D. Multiply B times C and enter result here ...... D ____________
E. Enter the amount of Indiana county tax
For additional information, contact the Indiana Department of
shown on Form IT-40, line 9 .......................... E ____________
Environmental Management, Indiana Government Center North,
Room N 1101, 100 N Senate Ave., Indianapolis, IN, 46204, or call (317)
The amount of the county credit for the elderly is the lesser of the
232-8827.
amount on D or E. You must attach a copy of federal Schedule R.
See the Voluntary remediation credit instructions for line 6 on page 37.
Note. See the Combined Limitation on page 42.
Enter code 836 under line 3 if claiming this credit. See the Combined
Example. Melinda is 67 years old. She is entitled to a credit of $550 on
Limitation on page 42.
federal Schedule R. Her county tax rate is .015, so the amount on Line
B of the worksheet is .10. Her county tax due is $60. Melinda’s county
Restriction for certain tax Credits - Limited to one per
credit for the elderly is $55 (the lesser of [$550 x .10 = $55] or $60).
project
Line 3
–
Other local credits
A taxpayer may not be granted more than one credit for the
Both of the following credits have been assigned a three-digit code
same project. The credits that are included are the alternative fuel
number. When claiming the credit on Schedule 6 under line 3, enter
vehicle manufacturer credit, capital investment credit, community
the name of the credit, the three-digit code number and the amount
revitalization enhancement district credit, enterprise zone investment
claimed.
cost credit, Hoosier business investment credit, industrial recovery
credit, military base investment cost credit, military base recovery
Community revitalization enhancement district credit
credit and the venture capital investment credit.
808
For more information see Commissioner’s Directive #29 at
A state and local income tax liability credit is available for a qualified
investment made within a community revitalization enhancement
Page 41
IT-40 Booklet 2011
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