1. (a) Except as provided in subsection (b), as used in this chapter, "income tax incremental amount" means the remainder of:

   1. (1) the aggregate amount of state and local income taxes paid by employees employed in a district with respect to wages earned for work in the district for a particular state fiscal year; minus

   2. (2) the sum of the:

      1. (A) income tax base period amount; and

      2. (B) tax credits awarded by the economic development for a growing economy board under IC 6-3.1-13 to businesses operating in a district as the result of wages earned for work in the district for the state fiscal year;

         as determined by the department of state revenue under section 14 of this chapter.

2. (b) For purposes of a district designated under section 12.1 of this chapter, "income tax incremental amount" means seventy-five percent (75%) of the amount described in subsection (a).

As added by P.L.125-1998, SEC.8. Amended by P.L.224-2003, SEC.235; P.L.199-2005, SEC.30.