Citations Affected: IC 6-3.1; noncode.
Synopsis: EDGE tax credits. Provides that for purposes of the EDGE
tax credit, an applicant may also satisfy the average compensation
requirements if the average wage paid by the applicant exceeds the
average wage paid to all workers employed in Indiana in the same
occupations as those of the applicant's Indiana employees or in
substantially similar occupations.
Effective: January 1, 2005.
January 6, 2004, read first time and referred to Committee on Economic Development and
January 26, 2004, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
SECTION 1. 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 the Standard
Industrial Classification Manual of the United States Office of
Management and Budget).
(5) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year exceeds the lesser of:
(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%); or
(B) the average compensation paid during that same period to all workers employed in Indiana in the same occupations as those of the taxpayer's Indiana employees or in substantially similar occupations.
(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 investments.
(12) The credit is not prohibited by section 16 of this chapter.
SECTION 2. 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 by which the average wage paid by the applicant exceeds the lesser of:
(A) the average wage paid within the county in which the project will be located; or
(B) the average wage paid to all workers employed in Indiana in the same occupations as those of the taxpayer's Indiana employees or in substantially similar occupations.
(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.
SECTION 3. IC 6-3.1-13-27, AS AMENDED BY P.L.170-2002, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 27. (a) Subject to all other requirements of this chapter, the board may award a tax credit under this chapter to a nonprofit organization that is a high growth company with high skilled jobs (as defined in IC 4-4-10.9-9.5) if:
(1) the nonprofit organization:
(A) is a taxpayer (as defined in section 10 of this chapter); and
(B) meets all requirements of this chapter; and
(2) all of the following conditions are satisfied:
(A) The organization satisfies at least one (1) of the following conditions:
(i) The wages of at least seventy-five percent (75%) of the organization's total workforce in Indiana must be equal to at
least two hundred percent (200%) of the average county
wage, as determined by the department of commerce, in the
county where the project for which the credit is granted will
(ii) The average wage of the organization's total workforce in Indiana must be equal to at least the average wage paid to all workers employed in Indiana in the same as those of the taxpayer's Indiana employees or in substantially similar occupations.
(B) The organization must make an investment of at least fifty million dollars ($50,000,000) in capital assets.
(C) The affected political subdivision must provide substantial financial assistance to the project.
(D) The incremental payroll attributable to the project must be at least ten million dollars ($10,000,000) annually.
(E) The organization agrees to pay the ad valorem property taxes on the organization's real and personal property that would otherwise be exempt under IC 6-1.1-10.
(F) The organization does not receive any deductions from the assessed value of the organization's real and personal property under IC 6-1.1-12 or IC 6-1.1-12.1.
(G) The organization pays all of the organization's ad valorem property taxes to the taxing units in the taxing district in which the project is located.
(H) The project for which the credit is granted must be located in a county having a population of more than one hundred eighty thousand (180,000) but less than one hundred eighty-two thousand seven hundred ninety (182,790).
(b) Notwithstanding section 6(a) of this chapter, the board may award credits to an organization under subsection (a) if:
(1) the organization met all other conditions of this chapter at the time of the applicant's location or expansion decision;
(2) the applicant is in receipt of a letter from the department of commerce stating an intent to pursue a credit agreement; and
(3) the letter described in subdivision (2) is issued by the department of commerce not later than January 1, 2000.
SECTION 4. [EFFECTIVE JANUARY 1, 2005] IC 6-3.1-13-15.5, IC 6-3.1-13-17, and IC 6-3.1-13-27, all as amended by this act, apply to taxable years beginning after December 31, 2004.