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
taxation.
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).
(2) Either:
(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.