A taxpayer is entitled to a credit for a taxable year for each eligible teacher employed under section 2 of this chapter in an amount equal to the lesser of:

1. (1) two thousand five hundred dollars ($2,500); or

2. (2) fifty percent (50%) of the amount of compensation paid to the eligible teacher by the taxpayer during the taxable year.

   However, the aggregate credits that a taxpayer may receive for a particular taxable year under this chapter may not exceed the taxpayer's state income tax liability for that taxable year.

As added by P.L.51-1984, SEC.1.