This credit applies only if the tax you paid outside Indiana was to another city, county, town, or other local government, and they did not refund the tax or give you a credit for Indiana county tax. The credit can be used against the Indiana county tax figured if the tax is the County Adjusted Gross Income Tax (CAGIT) or County Option Income Tax (COIT). This credit cannot be claimed against the County Economic Development Income Tax (CEDIT).

We will figure your credit based on the information you provide.

Other Local Credits Community Revitalization Enhancement District Credit
A state and local income tax liability credit is available for a qualified investment made within a community revitalization enhancement district. The expenditure must be made under a plan adopted by an advisory commission on industrial development and approved by the Indiana Department of Commerce before it is made. The credit is equal to 25% of the qualified investment made by the taxpayer during the taxable year.

Pass-through entities (S corporations and partnerships) are eligible for this credit.

The credit is non-refundable and cannot be carried back. You may carry-forward any excess credit to the next tax year. Since any unused portion of the credit is to be carried forward to the next tax year, special calculations must be made to arrive at the amount to be used. This credit is allowed to offset both state and local tax due.

Credit for Taxes Paid to Other States
If you received income from another state while you were an Indiana resident, you must report that income on your Indiana income tax return. You may be able to take a credit for taxes paid to another state. If you had income from another state and had to pay taxes to that state, read the following instructions carefully. If you were an Indiana resident during part or all of the tax year and had income from any of the states that do not have an agreement with Indiana, you should first find out what the other states rules are concerning the taxation of your income.

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