Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 6-3.1-30.5
     Chapter 30.5. School Scholarship Tax Credit

IC 6-3.1-30.5-0.5
Severability
     Sec. 0.5. Each provision of P.L.92-2011 is presumed to be and is severable from the remainder to the fullest extent and under IC 1-1-1-8. If any phrase, clause, sentence, or provision of IC 6-3.1-30.5 or IC 20-51, as added and amended, is held invalid for any reason, the invalidity does not affect the other provisions that are to be given effect without the invalid provision or application. The general assembly intends each provision to be passed into law individually and as a whole, without any provisions later found to be invalid or otherwise counter to constitutional or other legal requirements.
As added by P.L.63-2012, SEC.6.

IC 6-3.1-30.5-1
"Credit"
     Sec. 1. As used in this chapter, "credit" refers to a credit granted under this chapter.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-2
"Pass through entity"
     Sec. 2. As used in this chapter, "pass through entity" has the meaning set forth in IC 6-3-1-35.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-3
"Scholarship granting organization"
     Sec. 3. As used in this chapter, "scholarship granting organization" refers to an organization that:
        (1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and
        (2) conducts a school scholarship program without limiting the availability of scholarships to students of only one (1) participating school (as defined in IC 20-51-1-6).
As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.2.

IC 6-3.1-30.5-4
"School scholarship program"
     Sec. 4. As used in this chapter, "school scholarship program" refers to a scholarship program certified by the department of education under IC 20-51.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-5
"State tax liability"

     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 chapter.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-6
"Taxpayer"
     Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-7
Credit
     Sec. 7. A taxpayer that makes a contribution to a scholarship granting organization for use by the scholarship granting organization in a school scholarship program is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer makes the contribution.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-8
Amount of credit
     Sec. 8. The amount of a taxpayer's credit is equal to fifty percent (50%) of the amount of the contribution made to the scholarship granting organization for a school scholarship program.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-9
Carryover, carryback, or refund not allowed
     Sec. 9. A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-10
Pass through entities
     Sec. 10. 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.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-11
Claim of credit; submission of information
     Sec. 11. 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.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-12
Use of contribution
     Sec. 12. A contribution to a scholarship granting organization shall be treated as having been made for use in a school scholarship program if:
        (1) the contribution is made directly to a scholarship granting organization; and
        (2) either:
            (A) not later than the date of the contribution, the taxpayer designates in writing to the scholarship granting organization that the contribution is to be used only for a school scholarship program; or
            (B) the scholarship granting organization provides the taxpayer with written confirmation that the contribution will be dedicated solely for use in a school scholarship program.
As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.3.

IC 6-3.1-30.5-13
Maximum amount of credit
     Sec. 13. The total amount of tax credits awarded under this chapter may not exceed five million dollars ($5,000,000) in a state fiscal year.
As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.4.

IC 6-3.1-30.5-14
Information posted by the department
     Sec. 14. 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.
As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-15
Adoption of rules
     Sec. 15. The department shall adopt rules under IC 4-22-2 to

implement this chapter.
As added by P.L.182-2009(ss), SEC.205.