Citations Affected: IC 6-3.1-22.
Synopsis: Oil rerefining facility tax credit. Provides a five year
property tax credit for rerefined lubrication oil facilities. Requires the
department of commerce to determine if the taxpayer is entitled to the
Effective: January 1, 2001 (retroactive).
January 17, 2001, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
chemical impurities and spent and unspent additives to the extent
that the base oil is capable of meeting industry standards for
engine oil (as defined by API 1509).
Sec. 3. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
(1) IC 6-2.1 (the gross income tax);
(2) IC 6-2.5 (state gross retail and use tax);
(3) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(4) IC 6-3-8 (the supplemental corporate net income tax);
(5) IC 6-5-10 (the bank tax);
(6) IC 6-5-11 (the savings and loan association tax);
(7) IC 6-5.5 (the financial institutions tax); and
(8) 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. 4. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.
Sec. 5. Subject to section 9 of this chapter, a person is entitled to a credit against the person's state tax liability in a taxable year for a percentage of the ad valorem property taxes, excluding interest and penalties, paid by the taxpayer in the taxable year for the following:
(1) Real property on which a facility that processes rerefined lubrication oil is located.
(2) Personal property used in the processing of rerefined lubrication oil, including personal property used in the transportation of rerefined lubrication oil to and from the processing facility.
Sec. 6. (a) The amount of the credit to which a taxpayer is entitled under this chapter equals the product of:
(1) the percentage prescribed in subsection (b); multiplied by
(2) the amount of the ad valorem property taxes, excluding interest and penalties, paid by the taxpayer in the taxable year on the tangible property described in section 5 of this chapter.
(b) The percentage of the credit referred to in subsection (a)(1) is as follows:
OF THE CREDIT
Sec. 7. If a pass through entity is entitled to a credit under section 5 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
Sec. 8. A taxpayer is entitled to carry forward, for a period not to exceed two (2) years, any unused credit under section 6 or 7 of this chapter.
Sec. 9. To be entitled to a credit under this chapter, a taxpayer must request the department of commerce to determine if the taxpayer is entitled to the credit under this chapter. A taxpayer must make the request to the department of commerce in the manner and on forms prescribed by the department of commerce.
Sec. 10. This chapter expires January 1, 2006.