Citations Affected:
IC 4-4-6.1
;
IC 6-3.1-10-8.
Synopsis: Enterprise zones. 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.
Effective: July 1, 2001; January 1, 2002.
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
economic development.
prescribed by the board, a verified summary concerning the
amount of tax credits and exemptions claimed by the business in
the preceding year; and
(2) pay the amount specified in section 2(4) of this chapter to the
board.
(b) In order to determine the accuracy of the summary submitted
under subsection (a) the board is entitled to obtain copies of a zone
business' tax records directly from the department of state revenue, the
state board of tax commissioners, or a county official, notwithstanding
the provisions of any other law. A summary submitted to a board or
zone urban enterprise association, or a record obtained by the board,
under this section is confidential. A board member, an urban enterprise
association member or an agent of a board member or an urban
enterprise association member, who knowingly or intentionally
discloses information that is confidential under this section commits a
Class A misdemeanor.
(c) The board may grant one (1) extension of the time allowed to
comply with subsection (a) under the provisions of this subsection. To
qualify for an extension, a zone business must apply to the board by
letter postmarked before June 1. The application must be in the form
specified by the board. The extension may not be for a period that is
longer than forty-five (45) days under rules adopted by the board under
IC 4-22-2.
(d) If a zone business that did not comply with subsection (a)
before June 1 and did not file for an extension under subsection (c)
before June 1 complies with subsection (a) after before July 15, 16,
the amount of the tax credit and exemption incentives for the preceding
year that were otherwise available to the zone business because the
business was a zone business are waived, unless the zone business
pays to the board a penalty equal to fifteen percent (15%) of the
amount of the tax credit and exemption incentives for the
preceding year that were otherwise available to the zone business
because the business was a zone business. A zone business that pays
a penalty under this subsection for a year must pay the penalty to
the board before July 16 of that year. The board shall deposit any
penalty payments received under this subsection in the enterprise
zone fund.
(e) This subsection is in addition to any other sanction imposed by
subsection (d) or any other law. If a zone business fails to comply with
subsection (a) before June 1 without filing for and being granted an
extension by the board as provided under subsection (c) or if a zone
business fails to comply with subsection (a) before July 16 if an
extension of time has been granted by the board under subsection (c),
and does not pay any penalty required under subsection (d) by
letter postmarked before July 16 of that year, the zone business:
(1) is denied all of the tax credit and exemption incentives
available to a zone business because the business was a zone
business for that year; and
(2) is disqualified from further participation in the enterprise zone
program under this chapter until the zone business:
(A) petitions the board for readmission to the enterprise zone
program under this chapter; and
(B) pays a civil penalty of one hundred dollars ($100).
based upon the need of the business for equity financing, as
demonstrated by the inability of the business to obtain debt
financing.
(2) A percentage credit of two percent (2%) may be allowed for
business operations in the retail, professional, or
warehouse/distribution codes of the SIC Manual.
(3) A percentage credit of five percent (5%) may be allowed for
business operations in the manufacturing codes of the SIC
Manual.
(4) A percentage credit of five percent (5%) may be allowed
for high technology business operations (as defined in
IC 4-4-6.1-1.3.)
(5) A percentage credit may be allowed for jobs created during
the twelve (12) month period following the purchase of an
ownership interest in the zone business, as determined under the
following table:
JOBS CREATED PERCENTAGE
Less than 11 jobs 1%
11 to 25 jobs 2%
26 to 40 jobs 3%
41 to 75 jobs 4%
More than 75 jobs 5%
(5) (6) A percentage credit of five percent (5%) may be allowed
if fifty percent (50%) or more of the jobs created in the twelve
(12) month period following the purchase of an ownership interest
in the zone business will be reserved for zone residents.
(6) (7) A percentage credit may be allowed for investments made
in real or depreciable personal property, as determined under the
following table:
AMOUNT OF INVESTMENT PERCENTAGE
Less than $25,001 1%
$25,001 to $50,000 2%
$50,001 to $100,000 3%
$100,001 to $200,000 4%
More than $200,000 5%
The total percentage credit may not exceed thirty percent (30%).
(d) If all or a part of a purchaser's intent is to transfer ownership, the
tax credit shall be applied only to that part of the investment that relates
directly to the enhancement or expansion of business operations at the
zone location.
December 31, 2001.