Replace the effective dates in SECTIONS 6 through 11 with
"[EFFECTIVE APRIL 2, 2003]".
Page 4, line 35, delete "IC 6-3-3-5" and insert "IC 6-3-3-5, AS
AMENDED BY P.L.1-2003, SECTION 33,".
Page 5, line 33, after "IC 6-2.1" insert "(repealed)".
Page 5, line 35, delete "IC 6-2.1," and insert "IC 6-2.1 (repealed),".
Page 5, line 37, delete "IC 6-3-3-5.1" and insert "IC 6-3-3-5.1, AS
AMENDED BY P.L.1-2003, SECTION 34,".
Page 6, line 21, after "IC 6-2.1" insert "(repealed)".
Page 6, line 25, delete"P.L.14-2000," and insert "P.L.1-2003,
SECTION 35,".
Page 6, line 26, delete "SECTION 17,".
Page 8, line 9, after "tax)" insert "(repealed)".
Page 9, line 39, delete "P.L.192-2002(ss)," and insert "P.L.1-2003,
SECTION 36,".
Page 9, line 40, delete "SECTION 80,".
Page 10, line 22, delete "IC 6-3" and insert "this article".
Page 11, line 9, delete "IC 6-3-3-2," and insert "IC 6-3-3-2
(repealed),"
Page 11, line 18, delete "IC 6-3-3-2," and insert "IC 6-3-3-2
(repealed),"
Page 11, line 27, delete "IC 6-3.1-18-8" and insert "IC 6-3.1-18-8,
AS AMENDED BY P.L.1-2003, SECTION 38,".
Page 11, line 31, delete "IC 6-2.1," and insert "IC 6-2.1 (repealed),".
applies instead of IC 6-3-3-10.
(b) The following definitions apply throughout this SECTION:
(1) "Base period wages" means the following:
(A) In the case of a taxpayer other than a pass through
entity, wages paid or payable by a taxpayer to its
employees during the year that ends on the last day of the
month that immediately precedes the month in which an
enterprise zone is established, to the extent that the wages
would have been qualified wages if the enterprise zone had
been in effect for that year. If the taxpayer did not engage
in an active trade or business during that year in the area
that is later designated as an enterprise zone, then the base
period wages equal zero (0). If the taxpayer engaged in an
active trade or business during only part of that year in an
area that is later designated as an enterprise zone, then the
department shall determine the amount of base period
wages.
(B) In the case of a taxpayer that is a pass through entity,
base period wages equal zero (0).
(2) "Enterprise zone" means an enterprise zone created under
IC 4-4-6.1.
(3) "Enterprise zone adjusted gross income" means adjusted
gross income of a taxpayer that is derived from sources within
an enterprise zone. Sources of adjusted gross income shall be
determined with respect to an enterprise zone, to the extent
possible, in the same manner that sources of adjusted gross
income are determined with respect to the state of Indiana
under IC 6-3-2-2.
(4) "Enterprise zone gross income" means gross income of a
taxpayer that is derived from sources within an enterprise
zone.
(5) "Enterprise zone insurance premiums" means insurance
premiums derived from sources within an enterprise zone.
(6) "Monthly base period wages" means base period wages
divided by twelve (12).
(7) "Pass through entity" means a:
(A) corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(B) partnership;
(C) trust;
(D) limited liability company; or
qualified employees during a taxable year.
(12 "Taxpayer" includes a pass through entity.
(c) A taxpayer is entitled to a credit against the taxpayer's
qualified state tax liability for a taxable year in the amount of the
lesser of:
(1) the product of ten percent (10%) multiplied by the
qualified increased employment expenditures of the taxpayer
for the taxable year; or
(2) one thousand five hundred dollars ($1,500) multiplied by
the number of qualified employees employed by the taxpayer
during the taxable year.
(d) The amount of the credit provided by this SECTION that a
taxpayer uses during a particular taxable year may not exceed the
taxpayer's qualified state tax liability for the taxable year. If the
credit provided by this SECTION exceeds the amount of that tax
liability for the taxable year it is first claimed, then the excess may
be carried back to preceding taxable years or carried over to
succeeding taxable years and used as a credit against the
taxpayer's qualified state tax liability for those taxable years. Each
time that the credit is carried back to a preceding taxable year or
carried over to a succeeding taxable year, the amount of the
carryover is reduced by the amount used as a credit for that
taxable year. Except as provided in subsection (e), the credit
provided by this SECTION may be carried forward and applied in
the ten (10) taxable years that succeed the taxable year in which
the credit accrues. The credit provided by this SECTION may be
carried back and applied in the three (3) taxable years that precede
the taxable year in which the credit accrues.
(e) A credit earned by a taxpayer in a particular taxable year
shall be applied against the taxpayer's qualified state tax liability
for that taxable year before any credit carryover or carryback is
applied against that liability under subsection (d).
(f) Notwithstanding subsection (d), if a credit under this
SECTION results from wages paid in a particular enterprise zone,
and if that enterprise zone terminates in a taxable year that
succeeds the last taxable year in which a taxpayer is entitled to use
the credit carryover that results from those wages under
subsection (d), then the taxpayer may use the credit carryover for
any taxable year up to and including the taxable year in which the
enterprise zone terminates.
(g) A taxpayer is not entitled to a refund of any unused credit.
as the sum of any credits against the tax provided by IC 6-3-3.
(d) Every individual who has adjusted gross income subject to
the tax imposed by this article and from which tax is not withheld
under the requirements of IC 6-3-4-8 of this chapter shall make a
declaration of estimated tax for the taxable year. However, no such
declaration shall be required if the estimated tax can reasonably be
expected to be less than four hundred dollars ($400). In the case of
an underpayment of the estimated tax as provided in Section 6654
of the Internal Revenue Code, there shall be added to the tax a
penalty in an amount prescribed by IC 6-8.1-10-2.1(b).
(e) Every corporation subject to the adjusted gross income tax
liability imposed by IC 6-3 shall be required to report and pay an
estimated tax equal to twenty-five percent (25%) of such
corporation's estimated adjusted gross income tax liability for the
taxable year. A taxpayer who uses a taxable year that ends on
December 31 shall file the taxpayer's estimated adjusted gross
income tax returns and pay the tax to the department on or before
April 20, June 20, September 20, and December 20 of the taxable
year. If a taxpayer uses a taxable year that does not end on
December 31, the due dates for filing estimated adjusted gross
income tax returns and paying the tax are on or before the
twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the
manner and forms for such reporting and payment.
(f) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be
assessed by the department on corporations failing to make
payments as required in subsection (d) or (g). However, no penalty
shall be assessed as to any estimated payments of adjusted gross
income tax plus utility receipts tax which equal or exceed:
(1) twenty percent (20%) of the final tax liability for such
taxable year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an
estimated return shall only be assessed on the difference between
the actual amount paid by the corporation on such estimated
return and twenty-five percent (25%) of the corporation's final
adjusted gross income tax liability for such taxable year.
(g) The provisions of subsection (d) requiring the reporting and
estimated payment of adjusted gross income tax shall be applicable
only to corporations having an adjusted gross income tax liability
which, after application of the credit allowed by IC 6-3-3-2, shall
exceed one thousand dollars ($1,000) for its taxable year.
(h) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for
the current year; or
(2) average estimated quarterly adjusted gross income tax
liability for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten thousand dollars ($10,000), after
the credit allowed by IC 6-3-3-2, the corporation shall pay the
estimated adjusted gross income taxes due by electronic funds
transfer (as defined in IC 4-8.1-2-7) or by delivering in person or
overnight by courier a payment by cashier's check, certified check,
or money order to the department. The transfer or payment shall
be made on or before the date the tax is due.
(i) If a corporation's adjusted gross income tax payment is made
by electronic funds transfer, the corporation is not required to file
an estimated adjusted gross income tax return.
(j) This SECTION expires April 2, 2003.
SECTION 21. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-3.1-18-8, this
SECTION applies instead of IC 6-3.1-18-8.
(b) The credit provided under IC 6-3.1-18-7 is in addition to a
tax credit to which a shareholder, partner, or member of a pass
through entity is otherwise entitled under IC 6-3, this article, or
IC 6-5.5. However, a pass through entity and a shareholder,
partner, or member of the pass through entity may not claim more
than one (1) credit for the same qualified expenditure.
(c) This SECTION expires April 2, 2003.
SECTION 22. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-5.5-2-7, this
SECTION applies instead of IC 6-5.5-2-7.
(b) Notwithstanding any other provision of IC 6-5.5, there is no
tax imposed on the adjusted gross income or apportioned income
of the following:
(1) Insurance companies subject to the tax under IC 27-1-18-2
or IC 6-3.
(2) International banking facilities (as defined in Regulation
D of the Board of Governors of the Federal Reserve System).
(3) Any corporation that is exempt from income tax under
Section 1363 of the Internal Revenue Code.
(4) Any corporation exempt from federal income taxation
under the Internal Revenue Code, except for the corporation's
unrelated business income. However, this exemption does not
apply to a corporation exempt from federal income taxation
under Section 501(c)(14) of the Internal Revenue Code.
(c) This SECTION expires April 2, 2003.".
(Reference is to ESB 422 as reprinted April 1, 2003.)