Section 45IAC3.1-1-79. Credit for contributions to colleges

   College Credit. The Indiana Department of State Revenue will recognize credits taken on Individual, Fiduciary, and Corporation Income Tax Returns which are supported by contributions made to an "institution of higher education located in Indiana." In order to qualify for this credit, the contribution must be made directly to the institution of higher education, or to any corporation or foundation organized and operated solely for the benefit of any such institution of higher education, and/or to the Associated Colleges of Indiana.

  However, any shareholder of a sub "S" corporation which makes a contribution to an accredited Indiana college, university or institution will not be eligible for college credit. This is because charitable contributions do not flow through to the shareholders for Federal tax purposes. Organizations which are not subject to the adjusted gross income tax, such as banks and savings and loan associations, may not claim the college credit.

  The institution of higher education must grant an associate, bachelors, masters, or doctoral degree, or any combination thereof, and the school must be accredited to grant such degrees by one of the following agencies:

  (1) North Central Association of Colleges and Secondary Schools;

  (2) Indiana Department of Public Instruction; or

  (3) American Association of Theological Schools.

  Allowable Credit for Individuals, Trusts and Estates

  An individual is entitled to a tax credit for gifts equal to fifty percent (50%) of the aggregate amount thereof, but not exceeding the lesser of:

  (1) $100.00 for a single return, trust or estate;

  (2) $200.00 for a joint return; or

  (3) The individual's adjusted gross income tax liability for the year in which the gifts are made, less the amount of all other credits allowable against such tax under the Adjusted Gross Income Tax Act. With respect to the third limitation, the other credits presently allowed by the Act against adjusted gross income tax include the credit for taxes paid to other states and the credit for the elderly.

  In no event will a tax credit for contribution to educational institutions in excess of tax owing in any year give rise to an overpayment of tax to be refunded.

  A separate schedule, CC-40, will be available for reporting and claiming this credit. The schedule must be attached to the individual return, Form IT-40, the nonresident return, Form IT-40PNR, or the Fiduciary Return, Form IT-41.

  Allowable Credit for Corporations

  A corporation is entitled to a tax credit for gifts to institutions of higher education equal to fifty percent (50%) of their total gifts in that year, but not to exceed the lesser of (1) ten per cent (10%) of the corporation's adjusted gross income tax for the year in which the gifts are made; (2) the sum of $1000.00; or (3) the corporation's adjusted gross income tax for the year in which the gifts are made less the amount of all other credits allowable against such tax under the Adjusted Gross Income Tax Act. In no event will the sum of the credit for contributions to institutions of higher education and the credit for the Hard Core Unemployed be in excess of the tax due.

  The tax credit may be applied against either the gross income tax or the adjusted gross income tax. The credit computation is based on the adjusted gross income tax. Thus, a corporation which has no taxable adjusted gross income would not be allowed this tax credit. A separate schedule, Form CC-20, is available for reporting and claiming this credit. The schedule must be attached to the corporation return, Form IT-20.

  Following is a listing of the eligible schools in which the contributor may qualify for the college credit:

INSTITUTION	CITY
Ancilla College	Donaldson
Anderson College	Anderson
The Associated Colleges of Indiana	Indianapolis
Ball State University	Muncie
Bethel College	Mishawaka
Butler University	Indianapolis
Calumet College	Whiting
Catholic Seminary Foundation of Indianapolis (St. Maur's Seminary)	Indianapolis
Christian Theological Seminary	Indianapolis
Concordia Senior College	Fort Wayne
DePauw University	Greencastle
Earlham College	Richmond
Fort Wayne Bible College	Fort Wayne
Franklin College of Indiana	Franklin
Goshen Biblical Seminary	Elkhart
Goshen College	Goshen
Grace Theological Seminary and Grace College	Winona Lake
Hanover College	Hanover
Huntington College	Huntington
Indiana Central University	Indianapolis
Indiana Institute of Technology	Fort Wayne
Indiana State University	Terre Haute
Indiana University	Bloomington and Regional Facilities
Indiana Vocational Technical College	Indianapolis and Regional Facilities
Manchester College	North Manchester
Marian College	Indianapolis
Marion College	Marion
Mennonite Biblical Seminary	Elkhart
Northwood Institute of Indiana	West Baden
Oakland City College	Oakland City
Purdue University	West Lafayette and Regional Campuses
Rose-Hulman Institute of Technology	Terre Haute
St. Francis College	Fort Wayne
St. Joseph College	Rensselaer
St. Mary-of-the-Woods College	Terre Haute
St. Mary's College	Notre Dame
St. Meinrad College	St. Meinrad
Taylor University	Upland
Tri-State College	Angola
University of Evansville	Evansville
University of Notre Dame	Notre Dame (South Bend)
Valparaiso University	Valparaiso
Vincennes University	Vincennes
Wabash College	Crawfordsville

  This is not necessarily a complete listing and taxpayers having any questions as to the eligibility of any particular contribution for credit should petition the Department in writing. (Department of State Revenue; Reg 6-3-3-5(010); filed Oct 15, 1979, 11:15 am: 2 IR 1537; errata, 2 IR 1743)