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Line 3. Enter the total other loan interest income received
What if I Do Not Use All of My Credit?
from nonbusiness loans made for the purposes of
rehabilitation, repair, or improvement of a residence or for Any unused credit may be carried over to the next eligible
improvements that increase the assessed value of real tax return to be filed up to 10 years from the date of the
property located in any enterprise zone. loan until all credit has been used or the enterprise zone
terminates.
Line 4. Add the amount of business and nonbusiness
interest income and multiply the result by 5%. Note: A taxpayer is not entitled to a carryback or refund of
any unused credit. The statute does allow the taxpayer to
Line 5. Indicate the state tax liability you wish to offset by carry forward any unused credit.
checking the appropriate tax type box and by entering the
net amount of your state tax liability. Note: The net amount What if I Am an Entity Exempt from
of tax entered on line 5 must be reduced by all other Adjusted Gross Income Tax?
applicable tax liability credits and may not be greater than Entities exempt from adjusted gross income tax under
the amount on line 4. Carry the net amount of credit to be IC 6-3-2-2.8(2) may “pass through” the credit to
used to your tax type return. shareholders, partners, beneficiaries, or members of
the pass-through entity. A pass-through entity is an
Line 6. Subtract line 5 from line 4. The result may not be S corporation, a partnership, a trust, a limited liability
less than 0. If it’s greater than 0, carry the excess unused company, or a limited liability partnership. Each member’s
amount of credit to Section E. tax credit is calculated by multiplying the total credit
available by the percentage of the entity’s distributive
Section E – Enterprise Zone Loan Interest Carryover income to which the shareholder, partner, beneficiary, or
Complete this section whenever there is a carryover member is entitled. The pro rata share of the calculated
of unused Loan Interest Credit. The amount of credit credit is reported by the entity on each unit-holder’s
carryover from a taxable year shall be reduced to the extent Schedule IN K-1. A copy of Schedule LIC or IN K-1 must be
that the carryover is used by the taxpayer to obtain credit enclosed with the return to claim your share of the credit.
against allowable state tax liabilities for any subsequent
taxable year. Carryover is allowed up to 10 years following Whom Do I Contact if I Have Questions
the date on which a qualified loan credit is claimed but not About the Enterprise Zone Loan Interest Credit?
beyond the phase-out period that terminates the enterprise
Questions concerning enterprise zone income tax
zone from which a qualified loan had originated.
provisions should be directed to:
Enter in each column the applicable date or amounts for
Indiana Department of Revenue
every succeeding taxable year in which a credit carryover
Returns Processing Center
is used.
Corporate Income Tax Section
P.O. Box 7206
Section F – Signature Indianapolis, IN 46207
The taxpayer or an authorized agent must sign this (317) 232-0129
schedule. www.in.gov/dor
Where Can I Claim This Credit? For questions concerning other provisions related
to enterprise zones and current locations within the
The Loan Interest Credit can be applied as a credit against designated cities, contact:
the taxpayer’s adjusted gross income tax (IC 6-3-1 through
6-3-7), insurance premium tax (IC 27-1-18-2), and financial Indiana Economic Development Corporation
institution tax (IC 6-5.5). A copy of Schedule LIC must 1 N. Capitol Ave., Suite 700
be enclosed with the return; otherwise, the credit will be Indianapolis, IN 46204
disallowed. The credit amount calculated on the LIC is to (317) 232-8800
be taken as a credit against your tax liability on the return www.iedc.in.gov
in the order listed above after first applying other credits
allowed under IC 6-3.1-1-2.
Refer to Income Tax Information Bulletin #66 at
www.in.gov/dor/3650.htm for additional information. Please
see the instructions for your tax return to determine where
the credit should be entered on the various tax forms.
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