2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 3.1. STATE TAX LIABILITY CREDITS
CHAPTER 28. ETHANOL PRODUCTION TAX CREDIT

IC 6-3.1-28
     Chapter 28. Ethanol Production Tax Credit

IC 6-3.1-28-1
"Corporation"
     Sec. 1. As used in this chapter, "corporation" refers to the Indiana economic development corporation created by IC 5-28-3-1.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005, SEC.11.

IC 6-3.1-28-2
"Ethanol"
     Sec. 2. As used in this chapter, "ethanol" means agriculturally derived ethyl alcohol.
As added by P.L.224-2003, SEC.200.

IC 6-3.1-28-3
"Facility"
     Sec. 3. As used in this chapter, "facility" refers to a facility for the production of ethanol that satisfies all the following:
        (1) The facility is located in Indiana.
        (2) The facility has a capacity to produce at least forty million (40,000,000) gallons of ethanol a year.
        (3) The facility, after December 31, 2003, increased its ethanol production capacity by at least forty million (40,000,000) gallons a year.
As added by P.L.224-2003, SEC.200.

IC 6-3.1-28-4
"Pass through entity"
     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.
As added by P.L.224-2003, SEC.200.

IC 6-3.1-28-5
"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 6-2.5 (the state gross retail and use tax);
        (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-5.5 (the financial institutions tax); and
        (4) 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.224-2003, SEC.200.
IC 6-3.1-28-6
"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.224-2003, SEC.200.

IC 6-3.1-28-7
Ethanol production tax credit
     Sec. 7. Subject to IC 6-3.1-27-9.5 and section 11 of this chapter, a taxpayer that has been certified by the corporation as eligible for a credit under this section and produces ethanol at a facility is entitled to a credit against the taxpayer's state tax liability equal to the product of:
        (1) twelve and one-half cents ($.125); multiplied by
        (2) the number of gallons of ethanol produced at the Indiana facility.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005, SEC.12.

IC 6-3.1-28-8
Pass through entities
     Sec. 8. If a pass through entity is entitled to a credit under 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.224-2003, SEC.200.

IC 6-3.1-28-9
Carryover of excess tax credits
     Sec. 9. (a) If the amount of the credit determined under this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry over the excess to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.
    (b) A taxpayer is not entitled to a carryback or refund of any unused credit. A taxpayer may not sell, assign, convey, or otherwise transfer the tax credit provided by this chapter.
As added by P.L.224-2003, SEC.200. Amended by P.L.175-2007, SEC.2.

IC 6-3.1-28-10
Claiming tax credits
     Sec. 10. To receive the credit provided by this chapter, a taxpayer must do the following:         (1) Claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department.
        (2) Provide a copy of the corporation's certificate finding:
            (A) that the taxpayer; or
            (B) if the taxpayer is a shareholder, partner, or member of a pass through entity, that the pass through entity;
        is eligible for the credit under IC 5-28-6-3.
        (3) Submit to the department proof of all information that the department determines is necessary for the calculation of the credit provided by this chapter.
The department may require a pass through entity to provide informational reports that the department determines necessary for the department to calculate the percentage of the credit provided by this chapter to which a shareholder, partner, or member of the pass through entity is entitled.
As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005, SEC.13.

IC 6-3.1-28-11
Maximum amount of tax credits awarded
     Sec. 11. (a) As used in this section, "cellulosic ethanol" means ethanol derived solely from lignocellulosic or hemicellulosic matter.
    (b) The corporation shall determine the maximum amount of credits that a taxpayer (or if the person producing the ethanol is a pass through entity, the shareholders, partners, or members of the pass through entity) is eligible to receive under this section. The total amount of credits allowed a taxpayer (or, if the person producing the ethanol is a pass through entity, the shareholders, partners, or members of the pass through entity) under this chapter may not exceed a total of the following amounts for all taxable years:
        (1) Two million dollars ($2,000,000) in the case of a taxpayer who produces at least forty million (40,000,000) but less than sixty million (60,000,000) gallons of grain ethanol in a taxable year.
        (2) Three million dollars ($3,000,000) in the case of a taxpayer who produces at least sixty million (60,000,000) gallons of grain ethanol in a taxable year.
        (3) Twenty million dollars ($20,000,000) for all taxpayers for all taxable years, in the case of tax credits for a taxpayer who produces at least twenty million (20,000,000) gallons of cellulosic ethanol in a taxable year.
    (c) The total amount of tax credits allowed under this chapter for a taxpayer who produces at least twenty million (20,000,000) gallons of cellulosic ethanol is not subject to the maximum amount of tax credits imposed by IC 6-3.1-27-9.5.
    (d) A taxpayer who is eligible for a credit under this chapter as a result of producing at least twenty million (20,000,000) gallons of cellulosic ethanol in a taxable year may apply the credit only against the state tax liability attributable to business activity taking place at the Indiana facility at which the cellulosic ethanol was produced. As added by P.L.224-2003, SEC.200. Amended by P.L.191-2005, SEC.14; P.L.122-2006, SEC.9; P.L.175-2007, SEC.3.