HB 2008-6_ Filed 03/03/2003, 07:27 Scholer


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 2008 be amended to read as follows:

SOURCE: Page 52, line 20; (03)MO200804.52. -->     Page 52, between lines 20 and 21, begin a new paragraph and insert:
SOURCE: IC 6-3.1-26; (03)MO200804.29. -->     "SECTION 29. IC 6-3.1-26 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]:
     Chapter 26. Certified Job Skills Training Program Employer Credit
    Sec. 1. As used in this chapter, "certified job skills training program" means a job skills training program certified by the department of workforce development under IC 22-4.1-8.
    Sec. 2. As used in this chapter, "highly compensated employee" has the meaning set forth in Section 414(q) of the Internal Revenue Code.
    Sec. 3. As used in this chapter, "pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8 (2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    Sec. 4. As used in this chapter, "qualified employer" means a person, corporation, or pass through entity that pays an average hourly wage to employees other than highly compensated employees that exceeds one hundred fifty percent (150%) of the federal minimum wage.
    Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
        (2) IC 6-5.5 (financial institutions tax); and
        (3) IC 27-1-18-2 (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. 6. As used in this chapter, "training program expenditures" means expenses incurred by a qualified employer for any of the following:
        (1) Sponsoring or co-sponsoring a certified job skills training program that it provides to its employees, to the extent the expenses are incurred in providing the training to its employees and not to other program participants.
        (2) Reimbursing an employee for participation in a certified job skills training program not sponsored or co-sponsored by the qualified employer.
The term does not include indirect costs incurred by an employer such as wages, salaries, and fringe benefits paid to employees while attending a certified job skills training program.
    Sec. 7. A qualified employer is entitled to a credit against the qualified employer's state tax liability for training program expenditures made by the qualified employer in a taxable year. The amount of the credit is equal to the qualified employer's training program expenditures in the taxable year multiplied by ten percent (10%).

    Sec. 8. (a) If the amount determined under section 7 of this chapter for a qualified employer in a taxable year exceeds the qualified employer's state tax liability for that taxable year, the qualified employer may carry the excess over to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the qualified employer to obtain a credit under this chapter for any subsequent taxable year. A qualified employer is not entitled to a carryback.
    (b) A qualified employer is not entitled to a refund of any unused credit.
    Sec. 9. If a qualified employer is a pass through entity that does not have state income tax liability against which the tax credit may be applied, a shareholder, partner, beneficiary, 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, beneficiary, or member is entitled.

     Sec. 10. To receive the credit provided by this chapter, a

qualified employer must claim the credit on the qualified employer's state tax return in the manner prescribed by the department. The qualified employer must submit to the department proof of payment of the training program expenditures, proof that the expenditures were for job skills training programs certified by the department of workforce development under IC 22-4.1-8 , and all information that the department determines is necessary for the calculation of the credit provided by this chapter.

SOURCE: IC 6-3.1-27; (03)MO200804.30. -->     SECTION 30. IC 6-3.1-27 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]:
     Chapter 27. Certified Job Skills Training Program Individual Credit
    Sec. 1. As used in this chapter, "certified job skills training program" means a job skills training program certified by the department of workforce development under IC 22-4.1-8.
    Sec. 2. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax) as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

     Sec. 3. As used in this chapter, "taxpayer" means any individual that has any state tax liability.
    Sec. 4. As used in this chapter, "training program expenditures" means expenses incurred by the taxpayer for fees or tuition that are:
        (1) paid by the taxpayer for participation in a certified job skills training program that relates to the taxpayer's career field or job classification, as determined by the department of workforce development under rules adopted under IC 22-4.1-8-4 (a)(2); and
        (2) not reimbursed or otherwise covered by the taxpayer's employer.
    Sec. 5. A taxpayer is entitled to a credit against the taxpayer's state tax liability for training program expenditures made by the taxpayer in a taxable year. The amount of the credit is equal to the lesser of:
        (1) the taxpayer's training program expenditures in the taxable year multiplied by twenty-five percent (25%); or
        (2) two hundred fifty dollars ($250).
If a husband and wife file a joint income tax return and each spouse is eligible for the credit during a taxable year, the amount of the credit that may be claimed on the joint return is equal to the amount of the credit the husband is entitled to under this subsection plus the amount of the credit the wife is entitled to

under this subsection.
    Sec. 6. (a) If the amount determined under section 5 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 shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback.
    (b) A taxpayer is entitled to a refund of any unused credit.

    Sec. 7. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return in the manner prescribed by the department. The taxpayer must submit to the department:
        (1) proof of payment of the training program expenditures;
        (2) proof that the expenditures were for job skills training programs:
            (A) certified by the department of workforce development under IC 22-4.1-8 ; and
            (B) related to the taxpayer's career field or job classification, as determined by the department of workforce development under rules adopted under IC 22-4.1-8 ; and
        (3) all information that the department determines is necessary for the calculation of the credit provided by this chapter.
".

SOURCE: Page 80, line 9; (03)MO200804.80. -->     Page 80, between lines 9 and 10, begin a new paragraph and insert:
SOURCE: IC 22-4.1-8; (03)MO200804.64. -->     "SECTION 64. IC 22-4.1-8 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 8. Job Skills Training Program Certification
    Sec. 1. As used in this chapter, "job skills training program" means a course or program designed to:
        (1) develop, enhance, or upgrade basic workforce skills of an employee, including:

             (A) literacy;
            (B) communication skills;
            (C) computational skills; or
            (D) other transferable workforce skills; or

         (2) develop, enhance, or upgrade advanced, specialized, or industry specific skills of an employee that are directly related to the employee's job or career.
    Sec. 2. As used in this chapter, "person"
means any individual, corporation, limited liability company, partnership, firm, association, public or private agency, educational institution, or other organization.
    Sec. 3. As used in this chapter, "sponsor" means a person

operating a job skills training program and in whose name the program is registered or approved.
     Sec. 4. (a) The department shall adopt rules under IC 4-22-2 to establish standards for:
        (1) certifying job skills training programs in Indiana for purposes of allowing:
            (A) employers to claim a credit against state tax liability under IC 6-3.1-26 ; and
            (B) employees to claim a credit against state tax liability under IC 6-3.1-27 ; and
        (2) certifying that a job skills training program is related to particular career fields or job classifications for purposes of allowing employees to claim a credit against state tax liability under IC 6-3.1-27.
    (b) The rules adopted by the department under subsection (a) must require as a condition for certification under this chapter that a job skills training program be conducted under an organized, written plan that describes the following:
        (1) The nature of the training, instruction, or other curricula to be provided to program participants.
        (2) The career fields or job classifications to which the training relates, to allow the department to make the certification required under subsection (a)(2).
        (3) The duration of the training.
        (4) Any certification, license, or degree that a participant may earn through completion of the program and the specific requirements for the certification, license, or degree.
        (5) Any fees or tuition to be charged for the program.
        (6) The sponsor's experience in conducting the program or other job skills training programs.
    (c) The rules adopted by the commission under subsection (a) may include:
        (1) a requirement that the sponsor of a job training program be certified by, accredited by, or otherwise in good standing with an appropriate accrediting body;
        (2) minimum requirements, including the payment of any certification fees, for initial certification under this chapter after June 30, 2003;
        (3) requirements for renewing a certification first issued under this chapter after June 30, 2003, including the payment of any renewal fees;
or
        (4) any other requirement that the department considers appropriate.
    Sec. 5. The sponsor of a job skills training program who seeks certification under this chapter shall apply to the department for certification on forms prescribed by the department.
".

SOURCE: Page 82, line 38; (03)MO200804.82. -->     Page 82, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: ; (03)MO200804.68. -->     "SECTION 68. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "department" refers to the department of workforce development established by IC 22-4.1-2-1.
    (b) As used in this SECTION, "job skills training program" has the meaning set forth in IC 22-4.1-8-1 , as added by this act.
    (c) Notwithstanding IC 22-4.1-8-4 , as added by this act, the department shall adopt rules under IC 4-22-2 to establish standards for:
        (1) certifying job skills training programs in Indiana; and
        (2) certifying that a job skills training program is related to particular career fields or job classifications for purposes of allowing employees to claim a credit against state tax liability under IC 6-3.1-27 , as added by this act;

as required under IC 22-4.1-8-4 , as added by this act, not later than December 31, 2003.
    (d) This SECTION expires January 1, 2005.

SOURCE: ; (03)MO200804.69. -->     SECTION 69. [EFFECTIVE JANUARY 1, 2004] IC 6-3.1-26 and IC 6-3.1-27 , both as added by this act, apply to taxable years beginning after December 31, 2003.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 2008 as printed February 26, 2008.)

________________________________________

Representative Scholer


MO200804/DI 51     2003