Citations Affected: IC 6-3-3-5.2.
Synopsis: Tax credit for school fine arts programs. Allows an adjusted
gross income tax credit for fees paid and contributions made by a
taxpayer to a public school or charter school for fine arts education.
Provides that the credit is the amount of the fees or contributions paid
by the taxpayer. Provides that the credit may not exceed $200 for a
single return or $400 for a joint return. Allows a taxpayer to carry
forward any unused credit for four years.
Effective: January 1, 2008.
January 23, 2007, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
credit against the taxpayer's state tax liability.
(f) The amount of the credit allowed under this section is the lesser of the following:
(1) The aggregate amount of fees paid or cash contributions made under subsection (e).
(A) two hundred dollars ($200) in the case of a single return; or
(B) four hundred dollars ($400) in the case of a joint return.
(g) The amount of the credit provided by this section that a taxpayer uses during a particular taxable year may not exceed the taxpayer's state tax liability for the taxable year. If the credit provided by this section exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time that the credit is carried forward to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for four (4) taxable years following the unused credit year. A taxpayer is not entitled to any carryback or refund of any unused credit.
(h) To receive the credit provided by this section, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this section.