Citations Affected: IC 4-4; IC 6-3; IC 6-3.1; noncode.
Synopsis: Enterprise zones. CONFERENCE COMMITTEE REPORT FOR EHB 2130. Provides that a person who resides in an enterprise zone and is an employee of a nonprofit entity or local, state, or federal government is eligible for the qualified employee wage deduction. Extends from December 31, 2003, to December 31, 2015, the date beyond which the state enterprise zone board is prohibited from adding new enterprise zones. Specifies that the designation of an enterprise zone in a municipality in which a previously designated zone has expired does not count against the limit allowing only two new enterprise zones to be designated each year. Provides that if an enterprise zone business does not file the required verified summary of tax credits and tax exemptions claimed during the preceding year before the June 1 deadline and does not file for an extension, the zone business waives those credits and exemptions unless it pays, before July 16, a penalty equal to 15% of the credits and exemptions provided during the preceding year. Specifies that high technology business operations are eligible for a 5% enterprise zone investment cost credit. Eliminates the expiration clauses of the individual development accounts program. Expands the authorized uses of the individual development account to include: (1) reducing the principal amount owed on a primary residence that was purchased with money from an individual development account; and (2) expanding existing small businesses. Specifies that a qualified individual may use the account funds to pay for tuition, laboratory costs, books, and computer costs at an accredited institution of higher education, vocational school, or licensed or accredited training program. Provides that a qualified individual includes a member of a household with an annual household income of less than 175% of the federal income poverty level. (Current law provides for a limit of 150% of the poverty level.) Allows the funds of an individual development account to be rolled over into an Indiana family college savings program account. Reduces the maximum tax credits to $200,000. (This conference committee report: (1) adds language concerning individual development accounts; (2) removes a provision specifying that the authority of a local unit of government to establish an enterprise zone at a military base that is inactive, closed, or scheduled for closure is in addition to the authority of a redevelopment authority to establish an economic development area in the same geographic area; and (3) removes a provision that an economic development area created in a county having a United States government military base that is inactive, closed, or scheduled for closure may include territory that is within the corporate boundaries of the unit, or is contiguous to the military base, but is not on military base property.)
Your Conference Committee appointed to confer with a like committee from the Senate upon Engrossed Senate Amendments to Engrossed House Bill No. 2130 respectfully reports that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Page 6, line 35, delete "The authority of one".
Page 6, delete lines 36 through 39.
Page 7, between lines 1 and 2, begin a new paragraph and insert:
"SECTION 4. IC 4-4-28-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5. As used in this chapter, "individual development account" means an account in a financial institution administered by a community development corporation that allows a qualifying individual to deposit money:
(1) to be matched by the state, financial institutions, corporations, and other entities; and
(2) that will be used by the qualifying individual for one (1) or more of the following:
(A) To pay for costs (including tuition, laboratory costs, books, computer costs, and other costs associated with attendance) at an accredited institution of higher education or a vocational school for the individual or for a dependent of the individual.
(B) To pay for the costs (including tuition, laboratory costs, books, computer costs, and other costs) associated with an accredited or a licensed training program that may lead to employment for the individual or for a dependent of the individual.
FOLLOWS [EFFECTIVE JUNE 30, 2001]: Sec. 12. (a) The
department of commerce shall allocate, for each account that has been
established after June 30, 2001, for not more than four (4) years,
including any time in which an individual held an individual
development account under this chapter before July 1, 2001, three
dollars ($3) for each one dollar ($1) an individual deposited into the
individual's account during the preceding twelve (12) months.
However, the department's allocation under this subsection may not
exceed nine hundred dollars ($900) for each account described in this
(b) Not later than June 30 of each year, the department of commerce shall deposit into each account established under this chapter the appropriate amount of money determined under this section. However, if the individual deposits the maximum amount allowed under this chapter on or before December 31 of each year, the individual may request in writing that the department of commerce allocate and deposit the matched funds under subsection (a) into the individual's account not later than forty-five (45) days after the department of commerce receives the written request.
(c) Money from a federal block grant program under Title IV-A of the federal Social Security Act may be used by the state to provide money under this section for deposit into an account held by an individual who receives assistance under IC 12-14-2.
(d) This section expires July 1, 2001.
SECTION 9. IC 4-4-28-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 16. (a) Money withdrawn from an individual's account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the money is used for at least one (1) of the following:
(1) To pay for costs (including tuition, laboratory costs, books, computer costs, and other costs) at an accredited institution of higher education or a vocational school for the individual or for a dependent of the individual.
(2) To pay for the costs (including tuition, laboratory costs, books, computer costs, and other costs) associated with an accredited or a licensed training program that may lead to employment for the individual or for a dependent of the individual.
(3) To purchase a primary residence for the individual or for a dependent of the individual or to reduce the principal amount owed on a primary residence that was purchased by the individual or a dependent of the individual with money from an individual development account.
(4) To begin or to purchase part or all of a business or to expand an existing small business.
(5) To roll over the account under subsection (c) into a family college savings account program established under IC 21-9-3.
(b) At the time of requesting authorization under section 15 of this chapter to withdraw money from an individual's account under subsection (a)(4), the individual must provide the community development corporation with a business plan that:
Representative Klinker Senator Skillman
Representative Buell Senator Blade
House Conferees Senate Conferees