Citations Affected: IC 6-3.1-1.5.
Synopsis: Sale of tax credits. Provides that a taxpayer that is entitled
to a state tax credit may sell, assign, convey, or otherwise transfer any
unused portion of the tax credit that exceeds the taxpayer's tax liability.
Effective: July 1, 2004.
January 12, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
SECTION 1. IC 6-3.1-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Chapter 1.5. Sale or Assignment of Tax Credits
Sec. 1. Notwithstanding any other provision, a taxpayer:
(1) that is entitled to a tax credit under this article or IC 6-3-3-10; and
(2) for which the tax credit or any portion of the tax credit exceeds the taxpayer's tax liability, after the application of any other credits that are claimed by the taxpayer;
may after December 31, 2004, sell, assign, convey, or otherwise transfer the unused portion of the tax credit that exceeds the taxpayer's tax liability.
Sec. 2. A sale, assignment, conveyance, or transfer under this chapter of a tax credit must be in writing, and both the taxpayer and the person to which the credit is sold, assigned, conveyed, or transferred must report the sale, assignment, conveyance, or
transfer on their state tax returns in the manner prescribed by the
department of state revenue.
Sec. 3. The department of state revenue shall adopt rules necessary to administer this chapter.