Introduced Version






HOUSE BILL No. 1889

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-25 .

Synopsis: Tax credit for worksite health programs. Provides a credit against state tax liability for a taxpayer that provides a worksite health and productivity process for the taxpayer's Indiana employees. For a taxpayer providing a basic qualified health and productivity process, the credit equals the lesser of: (1) 2% of state tax liability; or (2) $50 multiplied by the number of the taxpayer's employees. For a taxpayer providing a comprehensive qualified health and productivity process, the credit equals the lesser of: (1) 4% of state tax liability; or (2) $100 multiplied by the number of employees. Allows a taxpayer to receive a credit only if the department of workforce development certifies the taxpayer's worksite health and productivity process.

Effective: January 1, 2003 (retroactive).





Friend, Scholer, Welch, Brown C




    January 23, 2003, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1889



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-25; (03)IN1889.1.1. -->     SECTION 1. IC 6-3.1-25 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]:
     Chapter 25. Credit for Worksite Health and Productivity Processes
    Sec. 1. 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. 2. 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. 3. As used in this chapter, "taxpayer" means an individual or entity that has state tax liability.
    Sec. 4. As used in this chapter, "worksite health and productivity process" includes:
        (1) a tier 2 program (a basic qualified health and productivity process); and
        (2) a tier 3 program (a comprehensive qualified health and productivity process);
that satisfies the standards adopted by the Worksite Health Promotion Alliance.
    Sec. 5. (a) A taxpayer that provides a tier 2 program in Indiana that is certified by the department of workforce development and in which all the taxpayer's Indiana employees are entitled to participate is entitled to a credit against the taxpayer's state tax liability for a taxable year equal to the lesser of:
        (1) two percent (2%) of the taxpayer's state tax liability; or
        (2) an amount equal to fifty dollars ($50) multiplied by the number of the taxpayer's Indiana employees.
    (b) A taxpayer that provides a tier 3 program in Indiana that is certified by the department of workforce development and in which all the taxpayer's Indiana employees are entitled to participate is entitled to a credit against the taxpayer's state tax liability for a taxable year equal to the lesser of:
        (1) four percent (4%) of the taxpayer's state tax liability; or
        (2) an amount equal to one hundred dollars ($100) multiplied by the number of the taxpayer's Indiana employees.
    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 not entitled to a refund of any unused credit.
    Sec. 7. If a pass through entity does not have state income tax liability against which the tax credit may be applied, a shareholder or partner 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 or partner is entitled.
    Sec. 8. (a) A taxpayer who seeks to obtain the credit provided by this chapter must file an application for certification of the taxpayer's worksite health and productivity process with the department of workforce development. The department of workforce development shall prescribe the form and content of the application.
    (b) Upon receipt of an application filed under subsection (a), the department of workforce development shall determine if the taxpayer has a tier 2 program or a tier 3 program. If the department of workforce development approves the application, it shall issue a certificate to the taxpayer for the taxable year. The taxpayer must attach the certificate to the income tax return that is filed for the taxable year for which the credit is claimed.
    (c) To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer must submit to the department all information that the department determines is necessary for the calculation of the credit provided by this chapter and for the determination of the taxpayer's eligibility for the credit.

SOURCE: ; (03)IN1889.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)] IC 6-3.1-25 , as added by this act, applies only to taxable years that begin after December 31, 2002.
SOURCE: ; (03)IN1889.1.3. -->     SECTION 3. An emergency is declared for this act.