Indiana § 6-3-3-13 - Adoption credit

§ 6-3-3-13. Adoption credit

Sec. 13. (a) This section applies only to taxable years beginning after December 31, 2014.

(b) Each taxable year, an individual who is a resident of Indiana during the taxable year and who is eligible to claim the credit provided by Section 23 of the Internal Revenue Code on the individual's federal return for the taxable year is entitled to a credit against the individual's adjusted gross income tax liability for the taxable year equal to the lesser of:

(1) the amount of the credit allowable under Section 23 of the Internal Revenue Code for each eligible child on the individual's federal return for the taxable year multiplied by twenty percent (20%); or

(2) two thousand five hundred dollars ($2,500) for each eligible child.

(c) If the amount of the credit under this section exceeds the taxpayer's state income tax liability for the taxable year, the excess shall be refunded to the taxpayer.

(d) If all or part of the credit allowed under Section 23 of the Internal Revenue Code for a taxable year beginning after December 31, 2014, is required to be claimed in, or carried forward to, a taxable year after the taxable year in which the credit is first allowed, the part carried forward and allowed to be claimed as a credit shall be treated as allowable under subsection (b), however, to the extent that a portion of a taxpayer's federal credit under Section 23 of the Internal Revenue Code is carried forward to a subsequent taxable year, the aggregate sum of credits claimed by the taxpayer under this section over the applicable taxable years may not exceed two thousand five hundred dollars ($2,500). A credit first allowed under Section 23 of the Internal Revenue Code for a taxable year beginning before January 1, 2015, and required to be claimed in, or carried forward to, a taxable year after the taxable year in which the credit is first allowed shall not be treated as allowable under subsection (b).

(e) If an individual is a resident of Indiana for part of the taxable year and a nonresident of Indiana for part of the taxable year, the credit allowable under Section 23 of the Internal Revenue Code for purposes of subsection (b) shall be:

(1) the credit allowable under Section 23 of the Internal Revenue Code;

(2) multiplied by the number of days the individual was a resident of Indiana; and

(3) divided by the number of days the individual was a resident of all states.

(f) If an individual and the individual's spouse file a joint return under this article for a taxable year, the calculation under subsection (e) for the taxable year shall be made based on the combined resident and nonresident days of the individual and the individual's spouse.

As added by P.L.132-2014, SEC.1. Amended by P.L.180-2022(ss), SEC.9; P.L.128-2026, SEC.16.