Introduced Version
HOUSE BILL No. 1290
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-26.
Synopsis: Hoosier business investment tax credit. Removes the
economic development for a growing economy (EDGE) board from the
administration of the Hoosier business investment tax credit. Provides
that the credit is available for hiring new employees. Removes the
expiration date for the availability of the credit. Provides that for a pass
through entity the proportional amount of the credit to which a partner
or shareholder of the pass through entity is entitled is applied against
the partner's or shareholder's state tax liability.
Effective: January 1, 2004 (retroactive).
Welch, Bosma, Lytle, Espich
January 15, 2004, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 113th General Assembly (2004)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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HOUSE BILL No. 1290
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-3.1-26-8, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 8. (a) As
used in this chapter, "qualified investment" means the amount of the
taxpayer's expenditures for:
(1) the purchase of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, or finishing equipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, extraction, mining, processing, refining, or finishing
facilities;
(4) onsite infrastructure improvements;
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, or finishing facilities;
(6) costs associated with retooling existing machinery and
equipment; and
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry.
that are certified by the board under this chapter as being eligible for
the credit under this chapter.
(b) The term does not include property that can be readily moved
outside Indiana.
SOURCE: IC 6-3.1-26-10; (04)IN1290.1.2. -->
SECTION 2. IC 6-3.1-26-10, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 10. As
used in this chapter, "state tax liability growth" means the difference
between a taxpayer's state tax liability in a taxable year minus the
greater of:
(1) the taxpayer's state tax liability in the most recent prior taxable
year in which the taxpayer claimed part of a credit under this
chapter; or
(2) the taxpayer's base state tax liability,
before the application of a credit under this chapter.
SOURCE: IC 6-3.1-26-13; (04)IN1290.1.3. -->
SECTION 3. IC 6-3.1-26-13, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 13. A
taxpayer that:
(1) is awarded a tax credit under this chapter by the board; and
(2) complies with the conditions set forth in this chapter and the
agreement entered into by the board and the taxpayer under this
chapter;
(1) makes a qualified investment; or
(2) creates the number of jobs required under section 13.5 of
this chapter;
is entitled to a credit against the taxpayer's state tax liability in a
taxable year.
SOURCE: IC 6-3.1-26-13.5; (04)IN1290.1.4. -->
SECTION 4. IC 6-3.1-26-13.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 13.5. To
qualify for a credit under section 13(2) of this chapter, a taxpayer
must increase in a particular taxable year the number of the
taxpayer's employees working in Indiana by:
(1) at least ten (10), in the case of a taxpayer having at least
one hundred (100) employees on the first day of the taxpayer's
taxable year; or
(2) at least ten percent (10%), in the case of a taxpayer having
less than one hundred (100) employees on the first day of the
taxpayer's taxable year.
SOURCE: IC 6-3.1-26-14; (04)IN1290.1.5. -->
SECTION 5. IC 6-3.1-26-14, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 14. (a)
This section applies only to a taxpayer entitled to a credit under
section 13(1) of this chapter.
(b) The total amount of a tax credit claimed allowed under this
chapter equals thirty percent (30%) of the amount of a qualified
investment made by the taxpayer in Indiana. However, the maximum
amount of the credit that a taxpayer may claim in the taxable year
in which the taxpayer makes a qualified investment may not exceed
the taxpayer's state tax liability growth.
(b) In the taxable year in which a taxpayer makes a qualified
investment, the taxpayer may claim a credit under this chapter in an
amount equal to the lesser of:
(1) thirty percent (30%) of the amount of the qualified
investment; or
(2) the taxpayer's state tax liability growth.
(c) The taxpayer may carry forward any unused credit.
SOURCE: IC 6-3.1-26-14.5; (04)IN1290.1.6. -->
SECTION 6. IC 6-3.1-26-14.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 14.5. (a)
This section applies only to a taxpayer entitled to a credit under
section 13(2) of this chapter.
(b) The total amount of a tax credit allowed under this chapter
equals thirty percent (30%) of the amount of wages and benefits
paid to the taxpayer's new employees in the taxable year in which
the new employees were first employed. However, the maximum
amount of the credit that a taxpayer may claim in the taxable year
in which the new employees were first employed may not exceed
the taxpayer's state tax liability growth.
(c) The taxpayer may carry forward any unused credit.
SOURCE: IC 6-3.1-26-15; (04)IN1290.1.7. -->
SECTION 7. IC 6-3.1-26-15, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 15. (a) A
taxpayer may carry forward an unused credit for not more than nine (9)
consecutive taxable years beginning with the taxable year after the
taxable year in which the taxpayer makes the qualified investment or
hires the number of new employees required under section 13.5 of
this chapter.
(b) The amount that a taxpayer may carry forward to a particular
taxable year under this section equals the lesser of the following:
(1) The taxpayer's state tax liability growth.
(2) The unused part of a credit allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified investment
or for hiring the number of new employees required under
section 13.5 of this chapter; and
(2) carry forward a remainder for one (1) or more:
(A) different qualified investments; or
(B) credits claimed for hiring the number of new
employees required under section 13.5 of this chapter;
in the same taxable year.
(d) The total amount of each tax credit claimed under this chapter
may not exceed:
(1) thirty percent (30%) of the qualified investment for which the
tax credit is claimed, in the case of a taxpayer that qualifies for
a tax credit under section 13(1) of this chapter; or
(2) thirty percent (30%) of the amount of wages and benefits
paid to the taxpayer's new employees in the taxable year in
which the new employees were first employed, in the case of
a taxpayer that qualifies for a tax credit under section 13(2)
of this chapter.
SOURCE: IC 6-3.1-26-16; (04)IN1290.1.8. -->
SECTION 8. IC 6-3.1-26-16, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 16. If a
pass through entity does not have state tax liability growth against
which the tax credit may be applied, a shareholder or partner of the
pass through entity is entitled to a tax credit against the shareholder's
or partner's state tax liability 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.
SOURCE: IC 6-3.1-26-19; (04)IN1290.1.9. -->
SECTION 9. IC 6-3.1-26-19, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 19. A
person is not entitled to claim the credit provided by this chapter for
any jobs that the person relocates from one (1) site in Indiana to
another site in Indiana. Determinations under this section shall be made
by the board.
SOURCE: IC 6-3.1-26-27; (04)IN1290.1.10. -->
SECTION 10. IC 6-3.1-26-27 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 27. To
receive the credit provided by this chapter, a taxpayer must claim
the credit on the taxpayer's annual state tax return or returns in
the manner prescribed by the department of state revenue. The
taxpayer shall submit to the department of state revenue all
information that the department of state revenue determines is
necessary for the calculation of the credit provided by this chapter
and for the determination of whether the taxpayer has made a
qualified investment as required under section 13 of this chapter
or hired the required number of new employees under section 13.5
of this chapter.
SOURCE: IC 6-3.1-26-2; IC 6-3.1-26-3; IC 6-3.1-26-5; IC 6-3.1-26-
12; IC 6-3.1-26-17; IC 6-3.1-26-18; IC 6-3.1-26-20; IC 6-3.1-26-21;
IC 6-3.1-26-22; IC 6-3.1-26-23; IC 6-3.1-26-24; IC 6-3.1-26-25; IC
6-3.1-26-26.
; (04)IN1290.1.11. -->
SECTION 11. THE FOLLOWING ARE REPEALED [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: IC 6-3.1-26-2; IC 6-3.1-26-3;
IC 6-3.1-26-5; IC 6-3.1-26-12; IC 6-3.1-26-17; IC 6-3.1-26-18;
IC 6-3.1-26-20; IC 6-3.1-26-21; IC 6-3.1-26-22; IC 6-3.1-26-23;
IC 6-3.1-26-24; IC 6-3.1-26-25; IC 6-3.1-26-26.
SOURCE: ; (04)IN1290.1.12. -->
SECTION 12. P.L.224-2003, SECTION 198, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004
(RETROACTIVE)] (a) Subject to carryovers authorized by
IC 6-3.1-26-15, as added amended by this act, IC 6-3.1-26, as added
amended by this act, applies to taxable years beginning after
December 31, 2003. and ending before January 1, 2006.
(b) IC 6-3.1-26-13.5, IC 6-3.1-26-14.5, and IC 6-3.1-26-27, all as
added by this act, apply to taxable years beginning after December
31, 2003.
SOURCE: ; (04)IN1290.1.13. -->
SECTION 13.
An emergency is declared for this act.