Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-79 - Credit for contributions to colleges

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-5
Sec. 79.
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.