SUBJECT: Income Tax Credit for Property Tax Paid by a For Profit Hospital

REFERENCE: IC 6-3-3-14.6

DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

INTRODUCTION

HOSPITAL DEFINED

A "hospital" means an acute care hospital that is licensed under IC 16-21-2; is operated on a for-profit basis; is subject to the adjusted gross income tax at the corporate income tax rate; provides health care, accommodations, facilities, and equipment, in connection with the services of a physician, to individuals who need rmedical care or surgical services; and is not primarily providing care and treatment of patients with a cardiac condition, an orthopedic condition, or receiving a surgical procedure.

AMOUNT OF CREDIT

A hospital is entitled to a credit against the hospital's adjusted gross income tax liability for the taxable year equal to 10 percent of the property taxes paid in Indiana on property used as a hospital.

The credit may not exceed the taxpayer's adjusted gross income tax liability for the taxable year, reduced by the sum of all credits applied before the application of this credit for the taxable year. The amount of any unused credit for a taxable year may not be carried forward to a succeeding taxable year, carried back to a preceding taxable year, or refunded.

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Andrew Kossack

Commissioner