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
Effective: January 1, 2002.
January 11, 2001, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
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
(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.