Introduced Version






HOUSE BILL No. 1440

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-20.

Synopsis: Tax credits for hiring minority youth and disabled persons. Entitles a taxpayer that employs a minority youth or disabled person to a tax credit equal to $500 or 25% of the wages paid to the minority youth or disabled person, whichever is less. Provides that the maximum amount of total credits allowed to all taxpayers in a state fiscal year is $1,000,000.

Effective: January 1, 2002.





Smith V, Weinzapfel




    January 11, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


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HOUSE BILL No. 1440



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-20; (01)IN1440.1.1. -->     SECTION 1. IC 6-3.1-20 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]:
    Chapter 20. Credit for Employing Minority Youth or Disabled Persons
    Sec. 1. As used in this chapter, "disability" has the meaning set forth in IC 22-9-5-6.
    Sec. 2. As used in this chapter, "disabled person" means an individual who:
        (1) has a disability;
        (2) has a household federal adjusted gross income of less than twenty thousand dollars ($20,000) for the most recently completed calendar year; and
        (3) was a resident of Indiana for at least six (6) months before the date the individual was employed by the taxpayer.
    Sec. 3. As used in this chapter, "eligible individual" means a disabled person or minority youth.
    Sec. 4. (a) As used in this chapter with respect to a disabled person, "household federal adjusted gross income" means the total adjusted gross income (as defined in Section 62 of the Internal Revenue Code) of a disabled person and the spouse of the disabled person, if that spouse resides with the disabled person during the taxable year.
    (b) As used in this chapter with respect to a minority youth, "household federal adjusted gross income" means the total adjusted gross income (as defined in Section 62 of the Internal Revenue Code) of a minority youth and any of the following persons who reside with the minority youth during the taxable year:
        (1) Each of the parents of the minority youth.
        (2) The spouse of the minority youth.
    Sec. 5. As used in this chapter, "minority youth" means an individual who:
        (1) is identified as black, Hispanic, Asian, Asian-American, or Native American;
        (2) has a household federal adjusted gross income of less than twenty thousand dollars ($20,000) for the most recently completed calendar year;
        (3) was a resident of Indiana for at least six (6) months before the date the individual was employed by the taxpayer; and
        (4) was at least sixteen (16) years of age and less than twenty (20) years of age during the period of employment for which the taxpayer has filed a claim for a credit under this chapter.
    Sec. 6. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) IC 6-5.5 (the financial institutions tax); and
        (7) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    Sec. 7. As used in this chapter, "taxpayer" means a person, a corporation, a partnership, or other entity that has state tax liability.
    Sec. 8. A taxpayer that employs an eligible individual is entitled

to a credit against the taxpayer's state tax liability for the taxable year during which the eligible individual is employed.
    Sec. 9. Subject to sections 10 through 13 of this chapter, the amount of the credit that a taxpayer may claim for a particular eligible individual for a taxable year equals the lesser of the following:
        (1) Twenty-five percent (25%) of the wages paid by the taxpayer to the eligible individual during the taxable year, beginning on the eligible individual's first day of employment and ending on:
            (A) the eligible individual's last day of employment with the taxpayer; or
            (B) the last day of the taxpayer's taxable year;
        whichever occurs first.
        (2) Five hundred dollars ($500).
    Sec. 10. For all taxable years, the aggregate amount of credits that may be claimed under this chapter for a particular eligible individual by a taxpayer may not exceed five hundred dollars ($500).
    Sec. 11. (a) If the amount determined under section 9 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the following taxable years. The amount of the credit carryover from a taxable year is reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable years.
    (b) A taxpayer is not entitled to a carryback or refund of an unused credit under this chapter.
    Sec. 12. To obtain a tax credit under this chapter, a taxpayer shall file with the department, in the form that the department may prescribe, an application stating the following:
        (1) The name, address, and Social Security number of the eligible individual employed by the taxpayer.
        (2) The wages paid to the eligible individual by the taxpayer for the taxable year.
        (3) The amount sought to be claimed as a tax credit under this chapter.
        (4) Other information the department determines necessary.
    Sec. 13. (a) The total amount of tax credits allowed under this chapter may not exceed one million dollars ($1,000,000) in a state fiscal year.
    (b) The department shall record the time of filing of each

application for allowance of a credit required under section 12 of this chapter and shall approve the applications, if the applicant otherwise qualifies for a tax credit under this chapter, in the chronological order in which the applications are filed in the state fiscal year.
    (c) After the total credits approved under this section equal the maximum amount allowable in a state fiscal year, an application filed for that fiscal year may not be approved.
    Sec. 14. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:
        (1) Against the taxpayer's gross income tax liability (IC 6-2.1) for the taxable year.
        (2) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7 ) for the taxable year.
        (3) Against the taxpayer's supplemental net income tax liability (IC 6-3-8) for the taxable year.
        (4) Against the taxpayer's bank tax liability (IC 6-5-10) or savings and loan association tax liability (IC 6-5-11) for the taxable year.
        (5) Against the taxpayer's financial institutions tax liability (IC 6-5.5) for the taxable year.
        (6) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.
    (b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.

SOURCE: ; (01)IN1440.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2002] IC 6-3.1-20 , as added by this act, applies to taxable years that begin after December 31, 2001.