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Taxpayers eligible for state corporate income tax credits apply the value first against gross tax liability, then against corporate adjusted gross tax liability, and finally against supplemental net liability. Some credits may be applied against future tax liabilities.
Corporate Tax Credits
- College and University Contribution Credit: A credit for contributions to Indiana colleges and universities. Limited to the lesser of: (a) $1,000; (b) 50% of the contribution; or (c) 10% of the adjusted gross income tax.
- Neighborhood Assistance Credit: Credit to
corporate or individual taxpayers contributing
to neighborhood organizations or who engage
in activities to upgrade disadvantaged areas. Up
to 50% of the amount invested, not to exceed
$25,000 in any taxable year.
- Drug and Alcohol Abuse Credit: Maximum
credit is $6,250 for corporations with more than
1,000 employees, and $3,750 for corporations
with fewer than 1,000 employees.
- Research Expense Credit: 5% Credit to any corporate
taxpayer entitled to the Federal Research Expense
Credit who incurs qualified Indiana research expenses.
- Teacher Summer Employment credit: Credit to
persons who hire a public school teacher during the
summer in a position that is relevant to a teaching-
shortage area in which the teacher is certified. Limited
to the lesser of: (a) $2,500; or (b) 50% of the
compensation paid.
- Enterprise Zone Employment Expense Credit:
A taxpayer who conducts business in an enterprise
zone is entitled to a maximum credit of $1,500 for
each employee who is an enterprise-zone resident
and who is employed primarily by the taxpayer.
- Enterprise Zone Loan Interest Credit: A credit
equal to 5% of the lender interest income from
qualified loans made in an enterprise zone.
- Enterprise Zone Investment Cost Credit: An individual taxpayer purchasing an ownership interst in an Enterprise Zone business may be eligible to receive a credit of up to 30 percent of the purchase price against the taxpayers state tax liability.
- Industrial Recovery Tax Credit: Credit for
qualifying investments to rehabilitate vacant
industrial facilities ("dinosaurs") that are at least
20 years old and at least 300,000 square feet in size.
- Personal Computer Tax Credit: Credit for
donations of computer units to the "Buddy-Up
with Education Program." A credit of $125 per
computer unit is allowed.
- Twenty-First Century Scholars Program
Support fund Credit: Credit for contributions
to the fund. A maximum credit of the lesser of
(a) $1,000; (b) 50% of the contribution made;
or (c) 10% of the adjusted gross income tax is
available.
- Maternity Home Credit: Credit for maternity-
home owners who proved a temporary residence
for a pregnant woman (women).
- Prison Credit: Credit for investments in Indiana
prisons to create jobs for prisoners. The amount is
limited to 50% of the inventory in a qualified project
plus 25% of the wages paid to the inmates. The
maximum credit a taxpayer may claim is $100,000
per year.
For more information on Indiana Corporate Income Tax Credits contact: Indiana Department of Commerce.
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