Citations Affected: IC 6-3.1-13.
Synopsis: EDGE credit applications. Provides that in evaluating an
application submitted after December 31, 2004, for an economic
development for a growing economy (EDGE) tax credit, the EDGE
board shall determine the extent to which the average compensation
paid by the applicant to its employees exceeds the average
compensation paid to employees working in the same industry sector
in the county in which the applicant's project is or will be located.
(Current law requires the board to determine the extent to which the
average compensation exceeds the average compensation paid to all
employees in the county, regardless of industry sector.)
Effective: January 1, 2005.
January 12, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
SECTION 1. IC 6-3.1-13-5.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 5.3. As used in this chapter,
"NAICS industry sector" refers to the current two (2) digit North
American Industry Classification System (NAICS) code used to
classify businesses according to the type of activity performed.
SECTION 2. IC 6-3.1-13-15.5, AS ADDED BY P.L.178-2002, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 15.5. This section applies to an application proposing to retain existing jobs in Indiana. After receipt of an application, the board may enter into an agreement with the applicant for a credit under this chapter if the board determines that all the following conditions exist:
(1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.
(2) The applicant provides evidence that there is at least one (1) other competing site outside Indiana that is being considered for
the project or for the relocation of jobs.
(3) A disparity is identified, using the best available data, in the projected costs for the applicant's project in Indiana compared with the costs for the project in the competing site.
(4) The applicant is engaged in research and development, manufacturing, or business services
(as defined in (according to
the Standard Industrial Classification Manual of the United States
Office of Management and Budget or the corresponding NAICS
(5) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year exceeds:
(A) the average compensation paid during that same period to all employees in the county in which the applicant's business is located by at least five percent (5%), in the case of an application submitted before January 1, 2005; or
(B) the average compensation paid during that same period to all employees working in the same NAICS industry sector in the county in which the applicant's business is located by at least five percent (5%), in the case of an application submitted after December 31, 2004.
(6) The applicant employs at least two hundred (200) employees in Indiana.
(7) The applicant has prepared a plan for the use of the credits under this chapter for:
(A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or
(B) other direct business related investments, including but not limited to training.
(8) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project, and not receiving the tax credit will increase the likelihood of the applicant reducing jobs in Indiana.
(9) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
(10) The applicant's business and project are economically sound and will benefit the people of Indiana by increasing or maintaining opportunities for employment and strengthening the economy of Indiana.
(11) The communities affected by the potential reduction in jobs or relocation of jobs to another site outside Indiana have
committed at least one dollar and fifty cents ($1.50) of local
incentives with respect to the retention of jobs for every three
dollars ($3) in credits provided under this chapter. For purposes
of this subdivision, local incentives include, but are not limited to,
cash grants, tax abatements, infrastructure improvements,
investment in facility rehabilitation, construction, and training
(12) The credit is not prohibited by section 16 of this chapter.
SECTION 3. IC 6-3.1-13-17, AS AMENDED BY P.L.178-2002, SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. In determining the credit amount that should be awarded to an applicant under section 15 of this chapter that proposes a project to create jobs in Indiana, the board shall take into consideration the following factors:
(1) The economy of the county where the projected investment is to occur.
(2) The potential impact on the economy of Indiana.
(3) The incremental payroll attributable to the project.
(4) The capital investment attributable to the project.
(5) The amount the average wage paid by the applicant exceeds the average wage paid:
(A) within the county in which the project will be located, in the case of an application submitted before January 1, 2005; or
(B) to all employees working in the same NAICS industry sector within the county in which the project will be located, in the case of an application submitted after December 31, 2004.
(6) The costs to Indiana and the affected political subdivisions with respect to the project.
(7) The financial assistance that is otherwise provided by Indiana and the affected political subdivisions.
As appropriate, the board shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter. In the case of an applicant under section 15.5 of this chapter, the board shall consider the magnitude of the cost differential between the projected costs for the applicant's project in the competing site outside Indiana and the projected costs for the applicant's project in Indiana.