Credit for contributions to colleges

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.