Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 17 - TAXATION OF FINANCIAL INSTITUTIONS
Rule 3 - Computation of Tax
Section 3-7 - Credits for taxes paid to other states
Universal Citation: 45 IN Admin Code 3-7
Current through September 18, 2024
Authority: IC 6-5.5-9-1
Affected: IC 6-5.5
Sec. 7.
(a) A resident taxpayer or a resident member of a unitary group is entitled to a credit against the FIT.
(b) To claim a credit for creditable taxes paid to other taxing jurisdictions, the resident taxpayer must provide the department with a schedule which lists the separate taxing jurisdictions and the respective amounts paid.
(c) As used in this section, "creditable tax" means a tax imposed by a taxing jurisdiction and based on any of the following:
(1) Net income.
(2) Franchise.
(3) Deposits.
(4) Investment capital.
(5) Shares.
(6) Net worth or capital.
(7) A combination of these tax
bases.
(8) Any other tax that is
imposed instead of an income tax.
(d) Taxes paid to political subdivisions of a state are not creditable taxes.
(e) The credit equals the lesser of any of the following:
(1) The amount of creditable tax actually
paid by the resident taxpayer or member to any other taxing jurisdiction on the
resident taxpayer's or member's adjusted gross income.
(2) The amount of creditable tax calculated
on the taxpayer's adjusted gross income that is subject to taxation by the
other taxing jurisdiction using Indiana's tax rate.
(3) The amount of creditable tax calculated
on the taxpayer's adjusted gross income that is attributable to the other
taxing jurisdictions under the rules for attributing gross receipts under
section 10 of this rule using Indiana's tax rate.
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