HOUSE BILL No. 1193
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-34.
Synopsis: Tax credit for farm building insulated curtains. Provides a
tax credit against state tax liability for expenditures by a farmer for
insulated curtains installed in a farm building located in Indiana.
Provides that the amount of the tax credit is 10% of the cost of the
insulated curtains and associated installation costs.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Agriculture and Rural
First Regular Session 117th General Assembly (2011)
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HOUSE BILL No. 1193
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-34; (11)IN1193.1.1. -->
SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]:
Chapter 34. Tax Credit for Insulated Curtains Used in Farm
Sec. 1. This chapter applies only to taxable years beginning after
December 31, 2011.
Sec. 2. As used in this chapter, "farmer" means an entity
engaged in the business of agriculture, including:
(1) an individual acting as a sole proprietor;
(2) a pass through entity; and
(3) a corporation.
Sec. 3. As used in this chapter, "insulated curtain" means a
(1) designed for installation in a farm building; and
(2) having an R-value of at least three (3).
Sec. 4. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 5. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
Sec. 6. As used in this chapter, "taxpayer" means a person,
corporation, partnership, or other entity that has any state tax
Sec. 7. Each taxable year, a farmer who installs insulated
curtains during the taxable year at a farm building located in
Indiana is entitled to a credit against the farmer's state tax liability
in the amount of ten percent (10%) of the farmer's expenditures
during the taxable year for the insulated curtains and associated
Sec. 8. (a) If a pass through entity does not have state tax
liability for a taxable year but is otherwise entitled to the tax credit
provided by this chapter, each shareholder, partner, or member of
the pass through entity is entitled to a share of the tax credit equal
(1) the amount of 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
(b) A share of a tax credit allocated under subsection (a) is in
addition to a tax credit to which a shareholder, partner, or member
of a pass through entity is otherwise entitled under this chapter.
However, neither a pass through entity nor a shareholder, partner,
or member of the pass through entity may claim more than one (1)
credit in a taxable year for the same expenditure on insulated
curtains and associated installation costs.
Sec. 9. (a) If the credit provided by this chapter exceeds a
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
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 not more than nine (9) taxable years
following the first year the credit is claimed.
(b) A taxpayer is not entitled to a carryback or refund of any
unused credit under this chapter.
Sec. 10. To receive the tax credit under this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department.