Section 45IAC17-3-7. Credits for taxes paid to other states

   (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.

(Department of State Revenue; 45 IAC 17-3-7; filed Jan 22, 1991, 4:55 p.m.: 14 IR 1218)