foundation in a taxable year beginning after December 31, 2010,
for use by the public school foundation for the purposes of
providing educational funds to a school corporation for purposes
described in IC 20-26-5-22.5, including teacher education, capital
programs, and special programs, is entitled to a credit against the
taxpayer's state tax liability in the taxable year in which the
taxpayer makes the contribution.
Sec. 7. The amount of a taxpayer's credit is equal to the following percentage of the amount of the contribution made to the public school foundation for the purposes of the public school foundation:
(1) Fifty percent (50%) for a taxpayer's taxable year beginning in 2011.
(2) Sixty percent (60%) for a taxpayer's taxable year beginning in 2012.
(3) Seventy percent (70%) for a taxpayer's taxable year beginning in 2013.
(4) Eighty percent (80%) for a taxpayer's taxable year beginning in 2014 or a subsequent year.
Sec. 8. A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
Sec. 9. If a pass through entity is entitled to a credit under section 7 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
Sec. 10. To apply a credit against the taxpayer's state tax liability, 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 the information that the department determines is necessary for the department to determine whether the taxpayer is eligible for the credit.
Sec. 11. The total amount of tax credits awarded under this chapter may not exceed two million five hundred thousand dollars ($2,500,000) in a state fiscal year that begins after June 30, 2010, and ends before July 1, 2012. The total amount of tax credits that may be awarded under this chapter in a state fiscal year beginning after June 30, 2012:
(1) increases by an additional ten million dollars ($10,000,000) in each state fiscal year that the total amount of tax credits awarded in the immediately preceding state fiscal year
equaled at least ninety percent (90%) of the maximum
amount permitted to be awarded under this section in the
immediately preceding state fiscal year; and
(2) is equal to the maximum permissible amount of tax credits that were permitted to be awarded under this section in the immediately preceding state fiscal year, if subdivision (1) does not apply.
Sec. 12. The department, on an Internet web site used by the department to provide information to the public, shall provide the following information:
(1) The application for the credit provided in this chapter.
(2) A timeline for receiving the credit provided in this chapter.
(3) The total amount of credits awarded under this chapter during the current state fiscal year.
Sec. 13. The department shall adopt rules under IC 4-22-2 to implement this chapter.".
Page 8, after line 8, begin a new paragraph and insert:
"SECTION 11. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1003 as printed February 18, 2011.)