Reprinted
March 18, 2005
ENGROSSED
SENATE BILL No. 1
_____
DIGEST OF SB 1
(Updated March 17, 2005 7:13 pm - DI 51)
Citations Affected: IC 5-28; IC 6-1.1; IC 6-2.5; IC 6-3.1; IC 6-3.5;
IC 20-12; IC 36-7; noncode.
Synopsis: Tax incentives. Permits the economic development
corporation to designate certain areas as global commerce centers.
Extends the termination date for authority to approve new property tax
abatements or to establish new tax increment finance areas from
December 31, 2005, to December 31, 2017. Repeals the limitation of
tax abatements for new logistical distribution equipment and new
information technology equipment to certain counties located along
Interstate Highway 69. Requires the filing of a personal property return
schedule to apply for personal property tax abatement (instead of filing
a separate application deduction) and provides that if the township
assessor or county assessor does not deny the application, the
abatement applies in the amount claimed or in an amount determined
(Continued next page)
Effective: January 1, 2005 (retroactive); February 9, 2005
(retroactive); upon passage; May 15, 2005; July 1, 2005; January 1,
2006.
Ford, Hume, Clark, Kenley, Simpson,
Lanane, Zakas
(HOUSE SPONSORS _ TURNER, BORROR, WOODRUFF, SMITH J, ALDERMAN,
AYRES, BECKER, BEHNING, BORDERS, BOSMA, BRIGHT, BROWN T, BUCK,
BUDAK, BUELL, BURTON, CHERRY, DAVIS, DODGE, DUNCAN, ESPICH, FOLEY,
FRIEND, FRIZZELL, GUTWEIN, HARRIS T, HEIM, HINKLE, HOFFMAN, KOCH,
LEHE, LEONARD, LUTZ J, MCCLAIN, MESSER, MURPHY, NEESE, NOE, POND,
RICHARDSON, RIPLEY, RUPPEL, SAUNDERS, STUTZMAN, THOMAS,
THOMPSON, TORR, ULMER, WALORSKI, WHETSTONE, WOLKINS, YOUNT)
January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
February 10, 2005, amended, reported favorably _ Do Pass.
February 14, 2005, read second time, ordered engrossed.
February 15, 2005, engrossed.
February 17, 2005, read third time, passed. Yeas 50, nays 0.
HOUSE ACTION
March 8, 2005, read first time and referred to Committee on Ways and Means.
March 14, 2005, amended, reported _ Do Pass.
March 17, 2005, read second time, amended, ordered engrossed.
Digest Continued
by the township assessor or county assessor. Changes the procedure for
appealing a denial of a property tax deduction or the alteration of a
deduction amount in an economic revitalization area. Changes the
deadline for submitting information updating a taxpayer's compliance
with the taxpayer's statement of benefits that is required to obtain a
property tax deduction in an economic revitalization area. Establishes
a property tax investment deduction for certain real property
development, redevelopment, or rehabilitation that increases assessed
value and creates or retains employment. Establishes a similar
deduction for the installation of personal property other than inventory
subject to the same conditions and limitation. Establishes an
assessment phase-in deduction for improvements to business and
nonbusiness real property and the installation of business and
nonbusiness personal property (other than property used in a retail
business) that is available in addition to the property tax deduction
available for job creating . Expands the sales tax exemption for tangible
personal property used by professional motor vehicle racing teams.
Exempts a person from 100% of the sales tax on research and
development equipment acquired after June 30, 2007. Provides a
refund of 50% of the sales taxes paid on transactions involving
research and development equipment acquired after June 30, 2005, and
before July 1, 2007. Increases the qualified research expense credit
from 10% to 15% on the first $1,000,000 of investment for taxable
years beginning after December 31, 2007. Reduces from 15 to 10 the
number of years for which a taxpayer may carry over a research
expense credit. Excludes certain debt provided by a financial institution
after May 15, 2005, from the definition of "qualified investment
capital" that is eligible for the venture capital investment tax credit.
Specifies that a business primarily focused on professional motor
vehicle racing is eligible for certification as a qualified Indiana
business for purposes of the venture capital investment tax credit.
Increases the total amount of venture capital investment tax credits that
may be allowed in a calendar year from $10,000,000 to $12,500,000.
Provides a refundable tax credit to a person who graduates from college
or university with certain degrees and obtains employment in Madison,
Grant, or Huntington County. Provides that a taxpayer may not carry
over a venture capital investment credit for more than five taxable
years following the first taxable year in which the credit is claimed.
Provides that a business that relocates its corporate headquarters to a
location in Indiana is entitled to a credit against its state tax liability
equal to 50% of the costs incurred in relocating the headquarters.
Authorizes counties, cities, and towns that receive county economic
development income taxes to establish regional venture capital funds
by pooling taxes payable to the participating units. Provides that a
regional venture capital fund shall be administered by a governing
board. Authorizes the governing board to make grants or loans from the
fund to public or private entities for economic development purposes.
Makes technical changes.
Reprinted
March 18, 2005
First Regular Session 114th General Assembly (2005)
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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2004 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 1
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 5-28-26; (05)ES0001.2.1. -->
SECTION 1. IC 5-28-26 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Chapter 26. Global Commerce Centers
Sec. 1. As used in this chapter, "corporation" means the Indiana
economic development corporation established by IC 5-28-3-1.
Sec. 2. As used in this chapter, "district" means a regional
economic development district designated by the United States
Department of Commerce Economic Development Administration.
Sec. 3. As used in this chapter, "high technology activity" has
the meaning set forth in IC 36-7-32-7.
Sec. 4. As used in this chapter, "hub" means a regional
economic development project that is:
(1) selected by a district for development as a global
commerce center; and
(2) designated as a global commerce center under this
chapter.
Sec. 5. As used in this chapter, "spoke" means an economic
development project that is:
(1) located within the area served by a district;
(2) undertaken to support the activities of a hub; and
(3) treated as a global commerce center under this chapter
upon the approval of the district board and fiscal body of the
county in which the project is located.
Sec. 6. The corporation shall do the following:
(1) Review and approve or reject all applicants for global
commerce center designation according to the criteria for
designation set forth in section 7 of this chapter.
(2) Establish a procedure by which global commerce centers
may be monitored and evaluated on an annual basis.
(3) Promote the global commerce center program.
Sec. 7. (a) The corporation may designate up to three (3) global
commerce centers under this chapter. A global commerce center
must include a hub. The boundaries of the global commerce center
are not required to be contiguous.
(b) If a district applies to the corporation to have part of the
area served by the district designated as a global commerce center,
the corporation shall approve the district's application if the
corporation determines that the proposed global commerce center
meets the following criteria:
(1) The district applying for a global commerce center
designation does not contain a metropolitan statistical area.
(2) The proposed global commerce center is well suited for the
development of a hub and its supporting spokes.
(3) The proposed global commerce center has the support of
the surrounding community.
(4) The proposed global commerce center is well suited for the
development of at least one (1) of the following:
(A) A high technology activity.
(B) Advanced manufacturing.
(C) Transportation, distribution, and logistics.
(c) The corporation shall adopt rules under IC 4-22-2 specifying
application procedures.
(d) The corporation shall give priority to an application
submitted by a district that:
(1) serves a region that borders another state;
(2) contains at least one (1) county that consistently ranks
among the highest in Indiana in unemployment;
(3) is served by an interstate highway; and
(4) has identified a site for a proposed global commerce center
that is well suited for the development of an intermodal
transportation hub.
Sec. 8. If a global commerce center is designated under section
7 of this chapter, an unlimited number of spokes may be added to
the global commerce center at the discretion of the fiscal bodies of
the counties served by the district and the district board.
Sec. 9. A global commerce center expires fifteen (15) years after
it is designated by the corporation.
SOURCE: IC 6-1.1-12.1-1; (05)ES0001.2.2. -->
SECTION 2. IC 6-1.1-12.1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. For purposes of this
chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of growth,
deterioration of improvements or character of occupancy, age,
obsolescence, substandard buildings, or other factors which have
impaired values or prevent a normal development of property or
use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means any tangible personal
property which:
(A) was installed after February 28, 1983, and before January
1,
2006, 2018, in an area that is declared an economic
revitalization area after February 28, 1983, in which a
deduction for tangible personal property is allowed;
(B) is used in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited
to use to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products; and
(C) was acquired by its owner for use as described in clause
(B) and was never before used by its owner for any purpose in
Indiana.
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures in
economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the
fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means either:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter; or
(B) the application (before January 1, 2006) or schedule
(after December 31, 2005) filed in accordance with section
5.5 section 5.4 of this chapter by a person who desires to
obtain the deduction provided by section 4.5 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) is installed after June 30, 2000, and before January 1,
2006, 2018, in an economic revitalization area in which a
deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) is used in research and development activities devoted
directly and exclusively to experimental or laboratory research
and development for new products, new uses of existing
products, or improving or testing existing products; and
(D) is acquired by the property owner for purposes described
in this subdivision and was never before used by the owner for
any purpose in Indiana.
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar
projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) is installed after June 30, 2004, and before January 1,
2006, 2018, in an economic revitalization area
(i) in which a deduction for tangible personal property is
allowed; and
(ii) located in a county referred to in section 2.3 of this
chapter, subject to section 2.3(c) of this chapter;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) forklifts or lifting equipment (including "walk behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) is used for the storage or distribution of goods, services, or
information; and
(D) before being used as described in clause (C), was never
used by its owner for any purpose in Indiana.
(14) "New information technology equipment" means tangible
personal property that:
(A) is installed after June 30, 2004, and before January 1,
2006, 2018, in an economic revitalization area
(i) in which a deduction for tangible personal property is
allowed;
and
(ii) located in a county referred to in section 2.3 of this
chapter, subject to section 2.3(c) of this chapter;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics; and
(C) before being installed as described in clause (A), was
never used by its owner for any purpose in Indiana.
SOURCE: IC 6-1.1-12.1-2; (05)ES0001.2.3. -->
SECTION 3. IC 6-1.1-12.1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) A designating
body may find that a particular area within its jurisdiction is an
economic revitalization area. However, the deduction provided by this
chapter for economic revitalization areas not within a city or town shall
not be available to retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an
area as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than five (5) years. In order
to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make all
the following additional findings or all the additional findings
described in subsection (c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are not
permanently occupied or a significant number of parcels in the
area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling
units, as documented by census information, local building and
demolition permits, or certificates of occupancy, or the area is
owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection as an alternative to one
(1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following conditions
to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body may
require that the redevelopment or rehabilitation be completed
within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of this
chapter.
(f) The property tax deductions provided by sections 3 and 4.5 of
this chapter are only available within an area which the designating
body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing
general standards to be used, along with the requirements set forth in
the definition of economic revitalization area, by the designating body
in finding an area to be an economic revitalization area. The standards
must have a reasonable relationship to the development objectives of
the area in which the designating body has jurisdiction. The following
three (3) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not residentially
distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5 of
this chapter.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular area
as an economic revitalization area. The fee may be sufficient to defray
actual processing and administrative costs. However, the fee charged
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the area shall be so designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to either the deduction allowed under
section 3 of this chapter or the deduction allowed under section
4.5 of this chapter;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
and new information technology equipment if a deduction under
this chapter had not been filed before July 1, 1987, for that
equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas on or
after September 1, 1988; or
(5) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed before January 1,
2006, 2018, but after the expiration of the economic revitalization
area if:
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and approved
by the designating body in accordance with section 4.5 of this
chapter before the expiration of the economic revitalization
area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4 or 4.5 of this chapter.
(k) Notwithstanding any other provision of this chapter, deductions:
(1) that are authorized under section 3 of this chapter for property
in an area designated as an urban development area before March
1, 1983, and that are based on an increase in assessed valuation
resulting from redevelopment or rehabilitation that occurs before
March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at the
time that an application for the deduction was first made. No deduction
that is based on the location of property or new manufacturing
equipment in an urban development area is authorized under this
chapter after February 28, 1983, unless the initial increase in assessed
value resulting from the redevelopment or rehabilitation of the property
or the installation of the new manufacturing equipment occurred before
March 1, 1983.
(l) If property located in an economic revitalization area is also
located in an allocation area (as defined in IC 36-7-14-39 or
IC 36-7-15.1-26), an application for the property tax deduction
provided by this chapter may not be approved unless the commission
that designated the allocation area adopts a resolution approving the
application.
SOURCE: IC 6-1.1-12.1-5; (05)ES0001.2.4. -->
SECTION 4. IC 6-1.1-12.1-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 5. (a) A property owner who desires to obtain the deduction
provided by section 3 of this chapter must file a certified deduction
application, on forms prescribed by the department of local government
finance, with the auditor of the county in which the property is located.
Except as otherwise provided in subsection (b) or (e), the deduction
application must be filed before May 10 of the year in which the
addition to assessed valuation is made.
(b) If notice of the addition to assessed valuation or new assessment
for any year is not given to the property owner before April 10 of that
year, the deduction application required by this section may be filed not
later than thirty (30) days after the date such a notice is mailed to the
property owner at the address shown on the records of the township
assessor.
(c) The deduction application required by this section must contain
the following information:
(1) The name of the property owner.
(2) A description of the property for which a deduction is claimed
in sufficient detail to afford identification.
(3) The assessed value of the improvements before rehabilitation.
(4) The increase in the assessed value of improvements resulting
from the rehabilitation.
(5) The assessed value of the new structure in the case of
redevelopment.
(6) The amount of the deduction claimed for the first year of the
deduction.
(7) If the deduction application is for a deduction in a
residentially distressed area, the assessed value of the
improvement or new structure for which the deduction is claimed.
(d) A deduction application filed under subsection (a) or (b) is
applicable for the year in which the addition to assessed value or
assessment of a new structure is made and in the following years the
deduction is allowed without any additional deduction application
being filed. However, property owners who had an area designated an
urban development area pursuant to a deduction application filed prior
to January 1, 1979, are only entitled to a deduction for a five (5) year
period. In addition, property owners who are entitled to a deduction
under this chapter pursuant to a deduction application filed after
December 31, 1978, and before January 1, 1986, are entitled to a
deduction for a ten (10) year period.
(e) A property owner who desires to obtain the deduction provided
by section 3 of this chapter but who has failed to file a deduction
application within the dates prescribed in subsection (a) or (b) may file
a deduction application between March 1 and May 10 of a subsequent
year which shall be applicable for the year filed and the subsequent
years without any additional deduction application being filed for the
amounts of the deduction which would be applicable to such years
pursuant to section 4 of this chapter if such a deduction application had
been filed in accordance with subsection (a) or (b).
(f) Subject to subsection (i), the county auditor shall act as follows:
(1) If a determination about the number of years the deduction is
allowed has been made in the resolution adopted under section
2.5 of this chapter, the county auditor shall make the appropriate
deduction.
(2) If a determination about the number of years the deduction is
allowed has not been made in the resolution adopted under
section 2.5 of this chapter, the county auditor shall send a copy of
the deduction application to the designating body. Upon receipt
of the resolution stating the number of years the deduction will be
allowed, the county auditor shall make the appropriate deduction.
(3) If the deduction application is for rehabilitation or
redevelopment in a residentially distressed area, the county
auditor shall make the appropriate deduction.
(g) The amount and period of the deduction provided for property
by section 3 of this chapter are not affected by a change in the
ownership of the property if the new owner of the property:
(1) continues to use the property in compliance with any
standards established under section 2(g) of this chapter; and
(2) files an application in the manner provided by subsection (e).
(h) The township assessor shall include a notice of the deadlines for
filing a deduction application under subsections (a) and (b) with each
notice to a property owner of an addition to assessed value or of a new
assessment.
(i) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the property is located review the deduction application.
(j) A property owner may appeal the a determination of the county
auditor under subsection (f) to deny or alter the amount of the
deduction by filing a complaint in the office of the clerk of the circuit
or superior court requesting in writing a preliminary conference
with the county auditor not more than forty-five (45) days after the
county auditor gives the person notice of the determination. An appeal
initiated under this subsection is processed and determined in the
same manner that an appeal is processed and determined under
IC 6-1.1-15.
SOURCE: IC 6-1.1-12.1-5.1; (05)ES0001.2.5. -->
SECTION 5. IC 6-1.1-12.1-5.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 5.1. (a) This subsection applies to:
(1) all deductions under section 3 of this chapter for property
located in a residentially distressed area; and
(2) any other deductions for which a statement of benefits was
approved under section 3 of this chapter before July 1, 1991.
In addition to the requirements of section 5(c) of this chapter, a
deduction application filed under section 5 of this chapter must contain
information showing the extent to which there has been compliance
with the statement of benefits approved under section 3 of this chapter.
Failure to comply with a statement of benefits approved before July 1,
1991, may not be a basis for rejecting a deduction application.
(b) This subsection applies to each deduction (other than a
deduction for property located in a residentially distressed area) for
which a statement of benefits was approved under section 3 of this
chapter after June 30, 1991. In addition to the requirements of section
5(c) of this chapter, a property owner who files a deduction application
under section 5 of this chapter must provide the county auditor and the
designating body with information showing the extent to which there
has been compliance with the statement of benefits approved under
section 3 of this chapter. This information must be included in the
deduction application and must also be updated within sixty (60) days
after the end of each year in which the deduction is applicable at the
same time that the property owner is required to file a personal
property tax return in the taxing district in which the property for
which the deduction was granted is located. If the taxpayer does
not file a personal property tax return in the taxing district in
which the property is located, the information must be provided
before May 15.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the property for which the
deduction was granted.
(3) Any information concerning the number of employees at the
property for which the deduction was granted, including estimated
totals that were provided as part of the statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the assessed value of the
property, including estimates that were provided as part of the
statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the property owner.
(2) Any information concerning the cost of the property.
SOURCE: IC 6-1.1-12.1-5.4; (05)ES0001.2.6. -->
SECTION 6. IC 6-1.1-12.1-5.4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 5.4. (a) A person
that desires to obtain the deduction provided by section 4.5 of this
chapter must file a certified deduction
application schedule with the
person's personal property return on
forms a form prescribed by the
department of local government finance with the
auditor township
assessor of the
county township in which the new manufacturing
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment is
located.
A Except as provided in subsection (e), the deduction is
applied in the amount claimed in a certified schedule that a person
that files with:
(1) a timely
files a personal property return under IC 6-1.1-3-7(a)
for the year in which the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment is installed
must file the application between March 1 and May 15 of that
year. A person that obtains a filing extension under or
IC 6-1.1-3-7(b); for the year in which the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment is installed must file the application between March 1
and the extended due date for that year. or
(2) a timely amended personal property return under
IC 6-1.1-3-7.5.
The township assessor shall forward to the county auditor and the
county assessor a copy of each certified deduction schedule filed
under this subsection.
(b) The deduction application schedule required by this section
must contain the following information:
(1) The name of the owner of the new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(2) A description of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment.
(3) Proof of the date the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment was
installed.
(4) (3) The amount of the deduction claimed for the first year of
the deduction.
(c) This subsection applies to a deduction application schedule with
respect to new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment for which a statement of benefits
was initially approved after April 30, 1991. If a determination about the
number of years the deduction is allowed has not been made in the
resolution adopted under section 2.5 of this chapter, the county auditor
shall send a copy of the deduction application schedule to the
designating body, and the designating body shall adopt a resolution
under section 4.5(g)(2) of this chapter.
(d) A deduction application schedule must be filed under this
section in the year in which the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment is installed and
in each of the immediately succeeding years the deduction is allowed.
(e) Subject to subsection (i), The county auditor shall: township
assessor or the county assessor may:
(1) review the deduction application; schedule; and
(2) approve, before the March 1 that next succeeds the
assessment date for which the deduction is claimed, deny or
alter the amount of the deduction.
Upon approval of the deduction application or alteration of the amount
of the deduction, If the township assessor or the county assessor
does not deny the deduction, the county auditor shall make apply the
deduction in the amount claimed in the deduction schedule or in the
amount as altered by the township assessor or the county assessor.
A township assessor or a county assessor who denies a deduction
under this subsection or alters the amount of the deduction shall
notify the person that claimed the deduction and the county
auditor of the assessor's action. The county auditor shall notify the
designating body and the county property tax assessment board of
appeals of all deductions approved applied under this section.
(f) If the ownership of new manufacturing equipment, new research
and development equipment, new logistical distribution equipment, or
new information technology equipment changes, the deduction
provided under section 4.5 of this chapter continues to apply to that
equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) files the deduction applications schedules required by this
section.
(g) The amount of the deduction is the percentage under section 4.5
of this chapter that would have applied if the ownership of the property
had not changed multiplied by the assessed value of the equipment for
the year the deduction is claimed by the new owner.
(h) A person may appeal the a determination of the county auditor
township assessor or the county assessor under subsection (e) to
deny or alter the amount of the deduction by filing a complaint in
the office of the clerk of the circuit or superior court requesting in
writing a preliminary conference with the township assessor or the
county assessor not more than forty-five (45) days after the county
auditor township assessor or the county assessor gives the person
notice of the determination. Except as provided in subsection (i), an
appeal initiated under this subsection is processed and determined
in the same manner that an appeal is processed and determined
under IC 6-1.1-15.
(i) Before the county auditor acts under subsection (e), the county
auditor may request that the township assessor in which the property is
located review the deduction application.
(i) The county assessor is recused from any action the county
property tax assessment board of appeals takes with respect to an
appeal under subsection (h) of a determination by the county
assessor.
SOURCE: IC 6-1.1-12.1-5.6; (05)ES0001.2.7. -->
SECTION 7. IC 6-1.1-12.1-5.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 5.6. (a) This
subsection applies to a property owner whose statement of benefits was
approved under section 4.5 of this chapter before July 1, 1991. In
addition to the requirements of section
5.5(b) 5.4(b) of this chapter, a
deduction
application schedule filed under section
5.5 5.4 of this
chapter must contain information showing the extent to which there has
been compliance with the statement of benefits approved under section
4.5 of this chapter. Failure to comply with a statement of benefits
approved before July 1, 1991, may not be a basis for rejecting a
deduction application.
(b) This subsection applies to a property owner whose statement of
benefits was approved under section 4.5 of this chapter after June 30,
1991. In addition to the requirements of section
5.5(b) 5.4(b) of this
chapter, a property owner who files a deduction
application schedule
under section
5.5 5.4 of this chapter must provide the county auditor
and the designating body with information showing the extent to which
there has been compliance with the statement of benefits approved
under section 4.5 of this chapter.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment for which the deduction was granted.
(3) Any information concerning the number of employees at the
facility where the new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment is located,
including estimated totals that were provided as part of the
statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the amount of solid waste or
hazardous waste converted into energy or other useful products by
the new manufacturing equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment including estimates that were
provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the owner of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
(2) Any information concerning the cost of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
SOURCE: IC 6-1.1-12.1-5.9; (05)ES0001.2.8. -->
SECTION 8. IC 6-1.1-12.1-5.9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 5.9. (a) This
section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 1991.
(b) Not later than forty-five (45) days after receipt of the information
described in section 5.1 or 5.6 of this chapter, the designating body
may determine whether the property owner has substantially complied
with the statement of benefits approved under section 3 or 4.5 of this
chapter. If the designating body determines that the property owner has
not substantially complied with the statement of benefits and that the
failure to substantially comply was not caused by factors beyond the
control of the property owner (such as declines in demand for the
property owner's products or services), the designating body shall mail
a written notice to the property owner. The written notice must include
the following provisions:
(1) An explanation of the reasons for the designating body's
determination.
(2) The date, time, and place of a hearing to be conducted by the
designating body for the purpose of further considering the
property owner's compliance with the statement of benefits. The
date of the hearing may not be more than thirty (30) days after the
date on which the notice is mailed.
(c) On the date specified in the notice described in subsection
(b)(2), the designating body shall conduct a hearing for the purpose of
further considering the property owner's compliance with the statement
of benefits. Based on the information presented at the hearing by the
property owner and other interested parties, the designating body shall
again determine whether the property owner has made reasonable
efforts to substantially comply with the statement of benefits and
whether any failure to substantially comply was caused by factors
beyond the control of the property owner. If the designating body
determines that the property owner has not made reasonable efforts to
comply with the statement of benefits, the designating body shall adopt
a resolution terminating the property owner's deduction under section
3 or 4.5 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
(d) If the designating body adopts a resolution terminating a
deduction under subsection (c), the designating body shall immediately
mail a certified copy of the resolution to:
(1) the property owner; and
(2) the county auditor; and
(3) if the deduction applied under section 4.5 of this chapter,
the township assessor.
The county auditor shall remove the deduction from the tax duplicate
and shall notify the county treasurer of the termination of the
deduction. If the designating body's resolution is adopted after the
county treasurer has mailed the statement required by IC 6-1.1-22-8,
the county treasurer shall immediately mail the property owner a
revised statement that reflects the termination of the deduction.
(e) A property owner whose deduction is terminated by the
designating body under this section may appeal the designating body's
decision by filing a complaint in the office of the clerk of the circuit or
superior court together with a bond conditioned to pay the costs of the
appeal if the appeal is determined against the property owner. An
appeal under this subsection shall be promptly heard by the court
without a jury and determined within thirty (30) days after the time of
the filing of the appeal. The court shall hear evidence on the appeal and
may confirm the action of the designating body or sustain the appeal.
The judgment of the court is final and conclusive unless an appeal is
taken as in other civil actions.
(f) If an appeal under subsection (e) is pending, the taxes resulting
from the termination of the deduction are not due until after the appeal
is finally adjudicated and the termination of the deduction is finally
determined.
SOURCE: IC 6-1.1-12.1-8; (05)ES0001.2.9. -->
SECTION 9. IC 6-1.1-12.1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 8. (a) Not later
than December 31 of each year, the county auditor shall publish the
following in a newspaper of general interest and readership and not one
of limited subject matter:
(1) A list of the approved deduction applications that were filed
under this chapter during that year that resulted in deductions
being applied under this chapter for that year. The list must
contain the following:
(A) The name and address of each person approved for or
receiving a deduction that was filed for during the year.
(B) The amount of each deduction that was filed for during the
year.
(C) The number of years for which each deduction that was
filed for during the year will be available.
(D) The total amount for all deductions that were filed for and
granted applied during the year.
(2) The total amount of all deductions for real property that were
in effect under section 3 of this chapter during the year.
(3) The total amount of all deductions for new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment that were in effect under section 4.5 of this chapter
during the year.
(b) The county auditor shall file the information described in
subsection (a)(2) and (a)(3) with the department of local government
finance not later than December 31 of each year.
SOURCE: IC 6-1.1-12.1-9; (05)ES0001.2.10. -->
SECTION 10. IC 6-1.1-12.1-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. Notwithstanding any
other provision of this chapter, a designating body may not approve a
statement of benefits for a deduction under section 3 or 4.5 of this
chapter after December 31, 2005. 2017.
SOURCE: IC 6-1.1-12.1-14; (05)ES0001.2.11. -->
SECTION 11. IC 6-1.1-12.1-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 14. (a) This
section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 2004.
(b) A property owner that receives a deduction under section 3 or
4.5 of this chapter is subject to this section only if the designating body,
with the consent of the property owner, incorporates this section,
including the percentage to be applied by the county auditor for
purposes of STEP TWO of subsection (c), into its initial approval of the
property owner's statement of benefits and deduction at the time of that
approval.
(c) During each year in which a property owner's property tax
liability is reduced by a deduction granted applied under this chapter,
the property owner shall pay to the county treasurer a fee in an amount
determined by the county auditor. The county auditor shall determine
the amount of the fee to be paid by the property owner according to the
following formula:
STEP ONE: Determine the additional amount of property taxes
that would have been paid by the property owner during the year
if the deduction had not been in effect.
STEP TWO: Multiply the amount determined under STEP ONE
by the percentage determined by the designating body under
subsection (b), which may not exceed fifteen percent (15%). The
percentage determined by the designating body remains in effect
throughout the term of the deduction and may not be changed.
STEP THREE: Determine the lesser of the STEP TWO product
or one hundred thousand dollars ($100,000).
(d) Fees collected under this section must be distributed to one (1)
or more public or nonprofit entities established to promote economic
development within the corporate limits of the city, town, or county
served by the designating body. The designating body shall notify the
county auditor of the entities that are to receive distributions under this
section and the relative proportions of those distributions. The county
auditor shall distribute fees collected under this section in accordance
with the designating body's instructions.
(e) If the designating body determines that a property owner has not
paid a fee imposed under this section, the designating body may adopt
a resolution terminating the property owner's deduction under section
3 or 4.5 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
SOURCE: IC 6-1.1-12.4; (05)ES0001.2.12. -->
SECTION 12. IC 6-1.1-12.4 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 12.4. Investment Deduction
Sec. 1. For purposes of this chapter, "official" means:
(1) a county auditor;
(2) a county assessor; or
(3) a township assessor.
Sec. 2. (a) For purposes of this section, an increase in the
assessed value of real property is determined in the same manner
that an increase in the assessed value of real property is
determined for purposes of IC 6-1.1-12.1.
(b) This subsection applies only to a development,
redevelopment, or rehabilitation that is first assessed after March
1, 2005, and before March 2, 2009. Except as provided in
subsection (h) and sections 4, 5, and 8 of this chapter, an owner of
real property that:
(1) develops, redevelops, or rehabilitates the real property;
and
(2) creates or retains employment from the development,
redevelopment, or rehabilitation;
is entitled to a deduction from the assessed value of the real
property.
(c) The deduction under this section is first available in the year
in which the increase in assessed value resulting from the
development, redevelopment, or rehabilitation occurs and
continues for the following two (2) years. The amount of the
deduction that a property owner may receive with respect to real
property located in a county for a particular year equals the lesser
of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
development, rehabilitation, or redevelopment; multiplied
by
(B) the percentage from the following table:
YEAR OF DEDUCTION
PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) A property owner that qualifies for the deduction under this
section must file a notice to claim the deduction in the manner
prescribed by the department of local government finance under
rules adopted by the department of local government finance
under IC 4-22-2 to implement this chapter. The township assessor
shall:
(1) inform the county auditor of the real property eligible for
the deduction as contained in the notice filed by the taxpayer
under this subsection; and
(2) inform the county auditor of the deduction amount.
(e) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
(f) The amount of the deduction determined under subsection
(c)(2) is adjusted to reflect the percentage increase or decrease in
assessed valuation that results from:
(1) a general reassessment of real property under
IC 6-1.1-4-4; or
(2) an annual adjustment under IC 6-1.1-4-4.5.
(g) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the real property, the amount of
the deduction under this section is adjusted to reflect the
percentage decrease that results from the appeal.
(h) The deduction under this section does not apply to a facility
listed in IC 6-1.1-12.1-3(e).
Sec. 3. (a) For purposes of this section, an increase in the
assessed value of personal property is determined in the same
manner that an increase in the assessed value of new
manufacturing equipment is determined for purposes of
IC 6-1.1-12.1.
(b) This subsection applies only to personal property that the
owner installs after March 1, 2005, and before March 2, 2009.
Except as provided in sections 4, 5, and 8 of this chapter, an owner
that installs personal property other than inventory (as defined in
50 IAC 4.2-5-1, as in effect on January 1, 2005) that:
(1) was never before used by its owner for any purpose in
Indiana; and
(2) creates or retains employment;
is entitled to a deduction from the assessed value of the personal
property. For purposes of this subsection, personal property is
considered to be installed if the property is installed as described
in 50 IAC 10-1-2 (as in effect on January 1, 2005).
(c) The deduction under this section is first available in the year
in which the increase in assessed value resulting from the
installation of the personal property occurs and continues for the
following two (2) years. The amount of the deduction that a
property owner may receive with respect to personal property
located in a county for a particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
installation of the personal property; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION
PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the personal property, the
amount of the deduction is adjusted to reflect the percentage
decrease that results from the appeal.
(e) A property owner must claim the deduction under this
section on the owner's annual personal property tax return. The
township assessor shall:
(1) identify the personal property eligible for the deduction to
the county auditor; and
(2) inform the county auditor of the deduction amount.
(f) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
Sec. 4. A property owner may not receive a deduction under this
chapter with respect to real property or personal property located
in an allocation area (as defined in IC 6-1.1-21.2-3).
Sec. 5. A property owner that qualifies for a deduction for a
year under this chapter and another statute with respect to the
same:
(1) real property development, redevelopment, or
rehabilitation; or
(2) personal property installation;
may not receive a deduction under both statutes for the
development, redevelopment, rehabilitation, or installation for that
year.
Sec. 6. An official may:
(1) review the creation or retention of employment from:
(A) the development, redevelopment, or rehabilitation of
real property; or
(B) the installation of personal property;
that qualifies a property owner for a deduction under this
chapter;
(2) determine whether the creation or retention of
employment described in subdivision (1) has occurred; and
(3) if the official determines under subdivision (2) that:
(A) the creation or retention of employment described in
subdivision (1) has not occurred; and
(B) the failure to create or retain employment was not
caused by factors beyond the control of the property owner
(such as declines in demand for the property owner's
products or services);
mail a written notice to the property owner of a hearing on
the termination of the deduction under this chapter.
Sec. 7. The written notice under section 6(3) of this chapter must
include the following:
(1) An explanation of the reasons for the determination that
the creation or retention of employment described in section
6(1) of this chapter has not occurred.
(2) The date, time, and place of a hearing to be conducted:
(A) by the official; and
(B) not more than thirty (30) days after the date of the
notice under section 6(3) of this chapter;
to further consider the property owner's creation or retention
of employment as described in section 6(1) of this chapter.
Sec. 8. On the date specified in the notice described in section
6(3) of this chapter, the official shall conduct a hearing for the
purpose of further considering the property owner's creation or
retention of employment as described in section 6(1) of this
chapter. Based on the information presented at the hearing by the
property owner and other interested parties, the official shall
determine whether the property owner has made reasonable
efforts to create or retain employment as described in section 6(1)
of this chapter and whether any failure to create or retain
employment was caused by factors beyond the control of the
property owner. If the official determines that the property owner
has not made reasonable efforts to create or retain employment,
the official shall determine that the property owner's deduction
under this chapter is terminated. If the official terminates the
deduction, the deduction does not apply to:
(1) the next installment of property taxes owed by the
property owner; or
(2) any subsequent installment of property taxes.
Sec. 9. If an official terminates a deduction under section 8 of
this chapter:
(1) the official shall immediately mail a certified copy of the
determination to:
(A) the property owner; and
(B) if the determination is made by the county assessor or
the township assessor, the county auditor;
(2) the county auditor shall:
(A) remove the deduction from the tax duplicate; and
(B) notify the county treasurer of the termination of the
deduction; and
(3) if the official's determination to terminate the deduction
occurs after the county treasurer has mailed the statement
required by IC 6-1.1-22-8, the county treasurer shall
immediately mail the property owner a revised statement that
reflects the termination of the deduction.
Sec. 10. A property owner whose deduction is terminated under
section 8 of this chapter may appeal the official's decision by filing
a complaint in the office of the clerk of the circuit or superior court
together with a bond conditioned to pay the costs of the appeal if
the appeal is determined against the property owner. The court
shall:
(1) hear an appeal under this section promptly without a jury;
and
(2) determine the appeal not later than thirty (30) days after
the date of the filing of the appeal.
The judgment of the court is final and conclusive unless an appeal
is taken as in other civil actions.
Sec. 11. If an appeal under section 10 of this chapter is pending,
the taxes resulting from the termination of the deduction are not
due until after the appeal is finally adjudicated and the termination
of the deduction is finally determined.
Sec. 12. If ownership of the real property or new personal
property changes, the deduction under this chapter continues to
apply to the real property or personal property, and the amount of
deduction is the product of:
(1) the percentage under section 2(c)(2)(B) or 3(c)(2)(B) of this
chapter that would have applied if the ownership of the
property had not changed; multiplied by
(2) the assessed value of the real property or personal
property for the year the new owner qualifies for the
deduction.
Sec. 13. The department of local government finance shall adopt
rules under IC 4-22-2 to implement this chapter.
SOURCE: IC 6-1.1-12.5; (05)ES0001.2.13. -->
SECTION 13. IC 6-1.1-12.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 12.5. Assessment Phase-in Deduction
Sec. 1. For purposes of this chapter:
(1) "personal property" does not include:
(A) inventory (as defined in IC 6-1.1-3-11); and
(B) personal property used by a retail business;
(2) "real property" does not include:
(A) a single family dwelling if the first year in which the
dwelling would otherwise qualify for the deduction under
this section is the first year the dwelling is subject to
assessment; and
(B) real property used by a retail business; and
(3) "rehabilitate" means to remodel, repair, or improve in any
manner.
Sec. 2. (a) Subject to subsection (g) and section 3 of this chapter,
a taxpayer that installs or rehabilitates personal property for
which the taxpayer is liable for property taxes is entitled to a
deduction from the assessed value of the personal property. For
purposes of this subsection, personal property is considered to be
installed if the property is installed as described in 50 IAC 10-1-2,
as in effect on January 1, 2005.
(b) Subject to subsection (g) and section 3 of this chapter, a
taxpayer that constructs or rehabilitates real property for which
the taxpayer is liable for property taxes is entitled to a deduction
from the assessed value of the real property.
(c) The deduction under this section is available in:
(1) the year in which:
(A) the personal property or real property is first subject
to assessment; or
(B) the rehabilitation of the real property results in an
increased assessed valuation of the real property; and
(2) the immediately succeeding two (2) years.
(d) The amount of the deduction that a taxpayer may receive for
the year referred to in subsection (c)(1) equals the product of:
(1) the assessed value for that year resulting from:
(A) the installation of the personal property, or the
rehabilitation of the personal property to the extent the
rehabilitation results in an assessed value that exceeds the
assessed value of the personal property for the
immediately preceding year; or
(B) the construction or rehabilitation of the real property;
multiplied by
(2) seventy-five percent (75%).
(e) The amount of the deduction that a taxpayer may receive for
the first year referred to in subsection (c)(2) equals the product of:
(1) the assessed value of:
(A) the personal property installed in the year referred to
in subsection (c)(1) determined for the first year referred
to in subsection (c)(2);
(B) the personal property rehabilitated in the year referred
to in subsection (c)(1) to the extent the rehabilitation
results in an assessed value for the first year referred to in
subsection (c)(2) that exceeds the assessed value of the
personal property that would have applied for the first
year referred to in subsection (c)(2) if the rehabilitation
had not occurred; or
(C) the real property determined for the immediately
preceding year under subsection (d)(1)(B) as adjusted:
(i) in a general reassessment of real property under
IC 6-1.1-4-4; or
(ii) under IC 6-1.1-4-4.5;
multiplied by
(2) fifty percent (50%).
(f) The amount of the deduction that a taxpayer may receive for
the second year referred to in subsection (c)(2) equals the product
of:
(1) the assessed value of:
(A) the personal property installed in the year referred to
in subsection (c)(1) determined for the second year
referred to in subsection (c)(2);
(B) the personal property rehabilitated in the year referred
to in subsection (c)(1) to the extent the rehabilitation
results in an assessed value for the second year referred to
in subsection (c)(2) that exceeds the assessed value of the
personal property that would have applied for the second
year referred to in subsection (c)(2) if the rehabilitation
had not occurred; or
(C) the real property determined for the immediately
preceding year under subsection (d)(1)(B) as adjusted:
(i) in a general reassessment of real property under
IC 6-1.1-4-4; or
(ii) under IC 6-1.1-4-4.5;
multiplied by
(2) twenty-five percent (25%).
(g) A property owner that qualifies for a deduction for a year
under:
(1) this section; and
(2) another statute;
with respect to the same real property or personal property may
not receive a deduction for the property under both statutes for
that year.
(h) A property owner is not required to file an application to
qualify for the deduction under this section. The county auditor
shall:
(1) make the deduction; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
Sec. 3. If ownership of the personal property or real property
changes:
(1) the deduction provided under this chapter continues to
apply to the property; and
(2) the amount of deduction is:
(A) the percentage under subsection 2(d)(2), or 2(e)(2), or
2(f)(2) of this chapter that would have applied if the
ownership of the property had not changed; multiplied by
(B) the assessed value of the property for the year the new
owner is entitled to the deduction.
Sec. 4. The department of local government finance shall adopt
rules under IC 4-22-2 to implement this chapter.
SOURCE: IC 6-1.1-39-2; (05)ES0001.2.14. -->
SECTION 14. IC 6-1.1-39-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) If the fiscal body
of a unit finds that:
(1) in order to promote opportunities for the gainful employment
of its citizens, the attraction of a new business enterprise to the
unit, the retention or expansion of a business enterprise existing
within the boundaries of the unit, or the preservation or
enhancement of the tax base of the unit, an area under the fiscal
body's jurisdiction should be declared an economic development
district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) preliminary commitments by business enterprises,
associations, state or federal governmental units, or similar
entities that evidence a reasonable likelihood that the proposed
qualified industrial development project will be initiated and
accomplished;
the fiscal body may, before January 1, 2006, 2018, adopt an ordinance
declaring the area to be an economic development district and
declaring that the public health and welfare of the unit will be benefited
by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location in
relation to public ways or streams or otherwise as determined by the
fiscal body.
SOURCE: IC 6-2.5-5-37; (05)ES0001.2.15. -->
SECTION 15. IC 6-2.5-5-37 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 37. Transactions
involving the following tangible personal property are exempt from the
state gross retail tax, if the tangible personal property:
(1) Engines or chassis that are is leased, owned, or operated by a
professional racing teams. team; and
(2) All spare, replacement, and rebuilding parts or components for
the engines and chassis described in subdivision (1), excluding
tires and accessories.
(2) comprises any part of a professional motor racing vehicle,
excluding tires and accessories.
SOURCE: IC 6-2.5-5-39; (05)ES0001.2.16. -->
SECTION 16. IC 6-2.5-5-39 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 39. (a) As used in this chapter, "research and
development activities" does not include any of the following:
(1) Efficiency surveys.
(2) Management studies.
(3) Consumer surveys.
(4) Economic surveys.
(5) Advertising or promotions.
(6) Research in connection with literary, historical, or similar
projects.
(7) Testing for purposes of quality control.
(b) As used in this section, "research and development
equipment" means tangible personal property that:
(1) consists of or is a combination of:
(A) laboratory equipment;
(B) computers;
(C) computer software;
(D) telecommunications equipment; or
(E) testing equipment;
(2) has not previously been used in Indiana for any purpose;
and
(3) is acquired by the purchaser for the purpose of research
and development activities devoted directly to experimental
or laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) A retail transaction:
(1) involving research and development equipment; and
(2) occurring after June 30, 2007;
is exempt from the state gross retail tax.
SOURCE: IC 6-2.5-6-16; (05)ES0001.2.17. -->
SECTION 17. IC 6-2.5-6-16 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 16. (a) As used in this section, "research and
development equipment" has the meaning set forth in
IC 6-2.5-5-39.
(b) A person is entitled to a refund equal to fifty percent (50%)
of the gross retail tax paid by the person under this article in a
retail transaction occurring after June 30, 2005, and before July 1,
2007, to acquire research and development equipment.
(c) To receive the refund provided by this section, a person must
claim the refund under IC 6-8.1-9 in the manner prescribed by the
department.
SOURCE: IC 6-3.1-4-1; (05)ES0001.2.18. -->
SECTION 18. IC 6-3.1-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. As used in this
chapter:
"Base amount" means base amount (as defined in Section 41(c) of
the Internal Revenue Code as in effect on January 1, 2001), modified
by considering only Indiana qualified research expenses and gross
receipts attributable to Indiana in the calculation of the taxpayer's:
(1) fixed base percentage; and
(2) average annual gross receipts.
"Base period Indiana qualified research expense" means base period
research expense that is incurred for research conducted in Indiana.
"Base period research expense" means base period research expense
(as defined in Section 41(c) of the Internal Revenue Code before
January 1, 1990).
"Indiana qualified research expense" means qualified research
expense that is incurred for research conducted in Indiana.
"Qualified research expense" means qualified research expense (as
defined in Section 41(b) of the Internal Revenue Code as in effect on
January 1, 2001).
"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.
"Research expense tax credit" means a credit provided under this
chapter against any tax otherwise due and payable under IC 6-3.
"Taxpayer" means an individual, a corporation, a limited liability
company, a limited liability partnership, a trust, or a partnership that
has any tax liability under IC 6-3 (adjusted gross income tax).
SOURCE: IC 6-3.1-4-2; (05)ES0001.2.19. -->
SECTION 19. IC 6-3.1-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) A taxpayer who
incurs Indiana qualified research expense in a particular taxable year
is entitled to a research expense tax credit for the taxable year. in
(b) For Indiana qualified research expense incurred before
January 1, 2008, the amount of the research expense tax credit is
equal to the product of (1) ten percent (10%) multiplied by (2) the
remainder of:
(1) the taxpayer's Indiana qualified research expenses for the
taxable year; minus
(A) the taxpayer's base period Indiana qualified research
expenses, for taxable years beginning before January 1, 1990;
or
(B) (2) the taxpayer's base amount. for taxable years beginning
after December 31, 1989.
(c) For Indiana qualified research expense incurred after
December 31, 2007, the amount of the research expense tax credit
is determined under STEP FOUR of the following formula:
STEP ONE: Subtract the taxpayer's base amount from the
taxpayer's Indiana qualified research expense for the taxable
year.
STEP TWO: Multiply the lesser of:
(A) one million dollars ($1,000,000); or
(B) the STEP ONE remainder;
by fifteen percent (15%).
STEP THREE: If the STEP ONE remainder exceeds one
million dollars ($1,000,000), multiply the amount of that
excess by ten percent (10%).
STEP FOUR: Add the STEP TWO and STEP THREE
products.
SOURCE: IC 6-3.1-4-3; (05)ES0001.2.20. -->
SECTION 20. IC 6-3.1-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 3. (a) The amount
of the credit provided by this chapter that a taxpayer uses during a
particular taxable year may not exceed the sum of the taxes imposed by
IC 6-3 for the taxable year after the application of all credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. If the credit provided by this chapter exceeds that sum for the
taxable year for which the credit is first claimed, then the excess may
be carried over to succeeding taxable years and used as a credit against
the tax otherwise due and payable by the taxpayer under IC 6-3 during
those taxable years. Each time that the credit is carried over to a
succeeding taxable year, it is to be reduced by the amount which was
used as a credit during the immediately preceding taxable year. The
credit provided by this chapter may be carried forward and applied to
succeeding taxable years for fifteen (15) ten (10) taxable years
following the unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shall
be applied against the taxpayer's tax liability for that taxable year
before any credit carryover is applied against that liability under
subsection (a).
(c) A taxpayer is not entitled to any carryback or refund of any
unused credit.
SOURCE: IC 6-3.1-4-7; (05)ES0001.2.21. -->
SECTION 21. IC 6-3.1-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (a) If a pass through
entity does not have state income tax liability against which the
research expense tax credit may be applied, a shareholder,
or partner,
or member of the pass through entity is entitled to a research expense
tax credit equal to:
(1) the research expense 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,
or member is entitled.
(b) The credit provided under subsection (a) is in addition to a
research expense tax credit to which a shareholder, or partner, or
member of a pass through entity is otherwise entitled under this
chapter. However, a pass through entity and a shareholder, or partner,
or member of the pass through entity may not claim a credit under this
chapter for the same qualified research expenses.
SOURCE: IC 6-3.1-24-3; (05)ES0001.2.22. -->
SECTION 22. IC 6-3.1-24-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MAY 15, 2005]: Sec. 3. As used in this
chapter, "qualified investment capital" means debt or equity capital that
is provided to a qualified Indiana business after December 31, 2003.
However, the term does not include debt that:
(1) is provided by a financial institution (as defined in
IC 5-13-4-10) after May 15, 2005; and
(2) is secured by a valid mortgage, security agreement, or
other agreement or document that establishes a collateral or
security position for the financial institution that is senior to
all collateral or security interests of other taxpayers that
provide debt or equity capital to the qualified Indiana
business.
SOURCE: IC 6-3.1-24-7; (05)ES0001.2.23. -->
SECTION 23. IC 6-3.1-24-7, AS AMENDED BY P.L.4-2005,
SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
FEBRUARY 9, 2005 (RETROACTIVE)]: Sec. 7. (a) The Indiana
economic development corporation shall certify that a business is a
qualified Indiana business if the corporation determines that the
business:
(1) has its headquarters in Indiana;
(2) is primarily focused on professional motor vehicle racing,
commercialization of research and development, technology
transfers, or the application of new technology, or is determined
by the Indiana economic development corporation to have
significant potential to:
(A) bring substantial capital into Indiana;
(B) create jobs;
(C) diversify the business base of Indiana; or
(D) significantly promote the purposes of this chapter in any
other way;
(3) has had average annual revenues of less than ten million
dollars ($10,000,000) in the two (2) years preceding the year in
which the business received qualified investment capital from a
taxpayer claiming a credit under this chapter;
(4) has:
(A) at least fifty percent (50%) of its employees residing in
Indiana; or
(B) at least seventy-five percent (75%) of its assets located in
Indiana; and
(5) is not engaged in a business involving:
(A) real estate;
(B) real estate development;
(C) insurance;
(D) professional services provided by an accountant, a lawyer,
or a physician;
(E) retail sales, except when the primary purpose of the
business is the development or support of electronic commerce
using the Internet; or
(F) oil and gas exploration.
(b) A business shall apply to be certified as a qualified Indiana
business on a form prescribed by the Indiana economic development
corporation.
(c) If a business is certified as a qualified Indiana business under
this section, the Indiana economic development corporation shall
provide a copy of the certification to the investors in the qualified
Indiana business for inclusion in tax filings.
(d) The Indiana economic development corporation may impose an
application fee of not more than two hundred dollars ($200).
SOURCE: IC 6-3.1-24-9; (05)ES0001.2.24. -->
SECTION 24. IC 6-3.1-24-9, AS AMENDED BY P.L.4-2005,
SECTION 99, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
FEBRUARY 9, 2005 (RETROACTIVE)]: Sec. 9. (a) The total amount
of tax credits that may be allowed under this chapter in a particular
calendar year for qualified investment capital provided during that
calendar year may not exceed
ten twelve million
five hundred
thousand dollars
($10,000,000). ($12,500,000). The Indiana economic
development corporation may not certify a proposed investment plan
under section 12.5 of this chapter if the proposed investment would
result in the total amount of the tax credits certified for the calendar
year exceeding
ten twelve million
five hundred thousand dollars
($10,000,000). ($12,500,000). An amount of an unused credit carried
over by a taxpayer from a previous calendar year may not be
considered in determining the amount of proposed investments that the
Indiana economic development corporation may certify under this
chapter.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for providing qualified investment capital to
a qualified Indiana business after December 31, 2008. However, this
subsection may not be construed to prevent a taxpayer from carrying
over to a taxable year beginning after December 31, 2008, an unused
tax credit attributable to an investment occurring before January 1,
2009.
SOURCE: IC 6-3.1-24-12; (05)ES0001.2.25. -->
SOURCE: IC 6-3.1-24-12. -->
SECTION 25. IC 6-3.1-24-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 12. If the amount
of the credit determined under section 10 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 credit over for a
period not to exceed the taxpayer's following five (5) 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 or a refund of any unused credit amount.
SOURCE: IC 6-3.1-24-12.5; (05)ES0001.2.26. -->
SECTION 26. IC 6-3.1-24-12.5, AS AMENDED BY P.L.4-2005,
SECTION 100, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE FEBRUARY 9, 2005 (RETROACTIVE)]: Sec. 12.5. (a)
A taxpayer wishing to obtain a credit under this chapter must apply to
the Indiana economic development corporation for a certification that
the taxpayer's proposed investment plan would qualify for a credit
under this chapter.
(b) The application required under subsection (a) must include:
(1) the name and address of the taxpayer;
(2) the name and address of each proposed recipient of the
taxpayer's proposed investment;
(3) the amount of the proposed investment;
(4) a copy of the certification issued under section 7 of this
chapter that the proposed recipient is a qualified Indiana business;
and
(5) any other information required by the Indiana economic
development corporation.
(c) If the Indiana economic development corporation determines
that:
(1) the proposed investment would qualify the taxpayer for a
credit under this chapter; and
(2) the amount of the proposed investment would not result in the
total amount of tax credits certified for the calendar year
exceeding
ten twelve million
five hundred thousand dollars
($10,000,000); ($12,500,000);
the corporation shall certify the taxpayer's proposed investment plan.
(d) To receive a credit under this chapter, the taxpayer must provide
qualified investment capital to a qualified Indiana business according
to the taxpayer's certified investment plan within two (2) years after the
date on which the Indiana economic development corporation certifies
the investment plan.
(e) Upon making the investment required under subsection (d), the
taxpayer shall provide proof of the investment to the Indiana economic
development corporation.
(f) Upon receiving proof of a taxpayer's investment under subsection
(e), the Indiana economic development corporation shall issue the
taxpayer a certificate indicating that the taxpayer has fulfilled the
requirements of the corporation and that the taxpayer is entitled to a
credit under this chapter.
(g) A taxpayer forfeits the right to a tax credit attributable to an
investment certified under subsection (c) if the taxpayer fails to make
the proposed investment within the period required under subsection
(d).
SOURCE: IC 6-3.1-30; (05)ES0001.2.27. -->
SECTION 27. IC 6-3.1-30 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 30. Headquarters Relocation Tax Credit
Sec. 1. As used in this chapter, "corporate headquarters" means
the building or buildings where the principal offices of the
principal executive officers of an eligible business are located.
Sec. 2. As used in this chapter, "eligible business" means a
business that:
(1) is engaged in either interstate or intrastate commerce;
(2) maintains a corporate headquarters at a location outside
Indiana;
(3) has not previously maintained a corporate headquarters
at a location in Indiana;
(4) had annual worldwide revenues of at least five hundred
million dollars ($500,000,000) for the taxable year
immediately preceding the business's application for a tax
credit under section 12 of this chapter; and
(5) commits contractually to relocating its corporate
headquarters to Indiana.
Sec. 3. 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. 4. As used in this chapter, "qualifying project" means the
relocation of the corporate headquarters of an eligible business
from a location outside Indiana to a location in Indiana.
Sec. 5. As used in this chapter, "relocation costs" means the
reasonable and necessary expenses incurred by an eligible business
for a qualifying project. The term includes:
(1) moving costs and related expenses;
(2) the purchase of new or replacement equipment;
(3) capital investment costs; and
(4) property assembly and development costs, including:
(A) the purchase, lease, or construction of buildings and
land;
(B) infrastructure improvements; and
(C) site development costs.
The term does not include any costs that do not directly result from
the relocation of the business to a location in Indiana.
Sec. 6. 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 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the 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. 7. As used in this chapter, "taxpayer" means an individual
or entity that has any state tax liability.
Sec. 8. A taxpayer that:
(1) is an eligible business;
(2) completes a qualifying project; and
(3) incurs relocation costs;
is entitled to a credit against the taxpayer's state tax liability for
the taxable year in which the relocation costs are incurred. The
credit allowed under this section is equal to the amount determined
under section 9 of this chapter.
Sec. 9. (a) Subject to subsection (b), the amount of the credit to
which a taxpayer is entitled under section 8 of this chapter equals
the product of:
(1) fifty percent (50%); multiplied by
(2) the amount of the taxpayer's relocation costs in the taxable
year.
(b) The credit to which a taxpayer is entitled under section 8 of
this chapter may not reduce the taxpayer's state tax liability below
the amount of the taxpayer's state tax liability in the taxable year
immediately preceding the taxable year in which the taxpayer first
incurred relocation costs.
Sec. 10. If a pass through entity is entitled to a credit under
section 8 of this chapter but does not have state tax liability against
which the tax credit may be applied, a shareholder, partner, or
member 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, partner, or member is
entitled.
Sec. 11. (a) If the credit provided by this chapter exceeds the
taxpayer's state tax liability for the taxable year for which the
credit is first claimed, the excess may be carried forward to
succeeding taxable years and used as a credit against the
taxpayer's state tax liability during those taxable years. Each time
that the credit is carried forward to a succeeding taxable year, the
credit is to be reduced by the amount that was used as a credit
during the immediately preceding taxable year. The credit
provided by this chapter may be carried forward and applied to
succeeding taxable years for nine (9) taxable years following the
unused credit year.
(b) A taxpayer is not entitled to any carryback or refund of any
unused credit.
Sec. 12. 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 shall submit to the department proof of the taxpayer's
relocation costs and all information that the department
determines is necessary for the calculation of the credit provided
by this chapter.
Sec. 13. In determining whether an expense of the eligible
business directly resulted from the relocation of the business, the
department shall consider whether the expense would likely have
been incurred by the eligible business if the business had not
relocated from its original location.
SOURCE: IC 6-3.1-31; (05)ES0001.2.28. -->
SECTION 28. IC 6-3.1-31 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 31. Hoosier Scholars Tax Credit
Sec. 1. As used in this chapter, "eligible county" has the
meaning set forth in IC 20-12-20.3-3.
Sec. 2. As used in this chapter, "eligible taxpayer" means an
individual who satisfies the following requirements:
(1) The individual participated in the Hoosier scholars pilot
program established under IC 20-12-20.3.
(2) The individual received provisional tax credits under the
program described in subdivision (1).
(3) The individual graduated from a degree program offered
at an institution of higher learning (as defined in
IC 20-12-20.3-4).
(4) The individual is employed in the eligible county where the
educational institution conferring the degree referred to in
subdivision (3) is located.
(5) The individual is employed in a field of targeted
employment.
Sec. 3. As used in this chapter, "state income tax liability"
means an individual's adjusted gross income tax liability under
IC 6-3.
Sec. 4. As used in this chapter, "targeted employment" means
employment in any of the following business activities:
(1) Advanced manufacturing, including the following:
(A) Automotive and electronics.
(B) Aerospace technology.
(C) Robotics.
(D) Engineering design technology.
(2) Life sciences, including the following:
(A) Orthopedics or medical devices.
(B) Biomedical research or development.
(C) Pharmaceutical manufacturing.
(D) Agribusiness.
(E) Nanotechnology or molecular manufacturing.
(3) Information technology, including the following:
(A) Informatics.
(B) Certified network administration.
(C) Software development.
(D) Fiber optics.
(4) Twenty-first century logistics, including the following:
(A) High technology distribution.
(B) Efficient and effective flow and storage of goods,
services, or information.
(C) Intermodal ports.
Sec. 5. (a) Beginning with the eligible taxpayer's first taxable
year that begins after the date that the eligible taxpayer graduated
from a degree program, an eligible taxpayer is entitled to a
refundable credit against the eligible taxpayer's state income tax
liability. The amount of the tax credit is equal to the amount of the
provisional credit awarded to the eligible taxpayer in the academic
year that corresponds to the number of taxable years following the
eligible taxpayer's graduation as follows:
Taxable year following Academic year in the
graduation program
1st 1st
2nd 2nd
3rd 3rd
4th 4th
(b) If the amount of the credit under this chapter exceeds the
eligible taxpayer's state tax liability for the taxable year, the excess
shall be refunded to the eligible taxpayer.
Sec. 6. To obtain the credit provided by this chapter, an eligible
taxpayer must file with the department information proving the
amount of the provisional tax credits awarded to the eligible
taxpayer as a student participating in the Indiana growth scholars
program and any other information required by the department.
SOURCE: IC 6-3.5-7-13.1; (05)ES0001.2.29. -->
SECTION 29. IC 6-3.5-7-13.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13.1. (a) The fiscal
officer of each county, city, or town for a county in which the county
economic development tax is imposed shall establish an economic
development income tax fund. Except as provided in sections 23, 25,
26, and 27 of this chapter, the revenue received by a county, city, or
town under this chapter shall be deposited in the unit's economic
development income tax fund.
(b) Except as provided in sections 15, 23, 25, 26, and 27 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development projects,
for paying, notwithstanding any other law, under a written
agreement all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project, for
the retirement of bonds under section 14 of this chapter for
economic development projects, for leases under section 21 of
this chapter, or for leases or bonds entered into or issued prior to
the date the economic development income tax was imposed if
the purpose of the lease or bonds would have qualified as a
purpose under this chapter at the time the lease was entered into
or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a capital
project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in planning
and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a designated
unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) For a regional venture capital fund established under
section 13.5 of this chapter.
(c) As used in this section, an economic development project is any
project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection (b)(2)(E);
or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
SOURCE: IC 6-3.5-7-13.5; (05)ES0001.2.30. -->
SECTION 30. IC 6-3.5-7-13.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]:
Sec. 13.5. (a) The general assembly
finds that counties and municipalities in Indiana have a need to
foster economic development, the development of new technology,
and industrial and commercial growth. The general assembly finds
that it is necessary and proper to provide an alternative method for
counties and municipalities to foster the following:
(1) Economic development.
(2) The development of new technology.
(3) Industrial and commercial growth.
(4) Employment opportunities.
(5) The diversification of industry and commerce.
It is declared that the fostering of economic development and the
development of new technology under this section for the benefit
of the general public, including industrial and commercial
enterprises, is a public purpose.
(b) The fiscal bodies of two (2) or more counties or
municipalities may, by resolution, do the following:
(1) Determine that part or all the taxes received by the units
under this chapter should be combined to foster:
(A) economic development;
(B) the development of new technology; and
(C) industrial and commercial growth.
(2) Establish a regional venture capital fund.
(c) Each unit participating in a regional venture capital fund
established under subsection (b) may deposit the following in the
fund:
(1) Taxes distributed to the unit under this chapter.
(2) The proceeds of public or private grants.
(d) A regional venture capital fund shall be administered by a
governing board. The expenses of administering the fund shall be
paid from money in the fund. The governing board shall invest the
money in the fund not currently needed to meet the obligations of
the fund in the same manner as other public money may be
invested. Interest that accrues from these investments shall be
deposited into the fund. The fund is subject to an annual audit by
the state board of accounts. The fund shall bear the full costs of the
audit.
(e) The fiscal body of each participating unit shall approve an
interlocal agreement created under IC 36-1-7 establishing the
terms for the administration of the regional venture capital fund.
The terms must include the following:
(1) The membership of the governing board.
(2) The amount of each unit's contribution to the fund.
(3) The procedures and criteria under which the governing
board may loan or grant money from the fund.
(4) The procedures for the dissolution of the fund and for the
distribution of money remaining in the fund at the time of the
dissolution.
(f) An interlocal agreement made by the participating units
under subsection (e) must be submitted to the Indiana economic
development corporation for approval before the participating
units may contribute to the fund.
(g) A majority of the members of a governing board of a
regional venture capital fund established under this section must
each have at least fifteen (15) years of experience in business,
finance, or venture capital.
(h) The governing board of the fund may loan or grant money
from the fund to a private or public entity if the governing board
finds that the loan or grant will be used by the borrower or grantee
for at least one (1) of the following economic development
purposes:
(1) To promote significant employment opportunities for the
residents of the units participating in the regional venture
capital fund.
(2) To attract a major new business enterprise to a
participating unit.
(3) To develop, retain, or expand a significant business
enterprise in a participating unit.
(i) The expenditures of a borrower or grantee of money from a
regional venture capital fund that are considered to be for an
economic development purpose include expenditures for any of the
following:
(1) Research and development of technology.
(2) Job training and education.
(3) Acquisition of property interests.
(4) Infrastructure improvements.
(5) New buildings or structures.
(6) Rehabilitation, renovation, or enlargement of buildings or
structures.
(7) Machinery, equipment, and furnishings.
SOURCE: IC 20-12-20.3; (05)ES0001.2.31. -->
SECTION 31. IC 20-12-20.3 IS ADDED TO THE INDIANA
CODE AS A
NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]:
Chapter 20.3. Hoosier Scholars Pilot Program
Sec. 1. As used in this chapter, "commission" refers to the state
student assistance commission established by IC 20-12-21-4.
Sec. 2. As used in this chapter, "eligible county" means any of
the following counties:
(1) Madison County.
(2) Grant County.
(3) Huntington County.
Sec. 3. As used in this chapter, "eligible student" means a
student (as defined in IC 22-4.1-7-4) who is enrolled full time as an
undergraduate in a degree program offered at an institution of
higher learning located in an eligible county. The commission may
impose additional eligibility requirements, including requirements
set forth in IC 20-12-21-6.
Sec. 4. As used in this chapter, "institution of higher learning"
means:
(1) a state educational institution (as defined in
IC 20-12-0.5-1); or
(2) a private institution of higher education (as defined in
IC 20-12-63-3(10)).
Sec. 5. (a) The Indiana growth scholars program is established.
(b) The commission shall administer the program.
Sec. 6. The executive director of the commission may employ or
contract for clerical and professional staff and administrative
support necessary to implement this chapter.
Sec. 7. (a) The commission shall award a provisional tax credit
to an eligible student who:
(1) is enrolled in good standing in a degree program at an
institution of higher learning located in an eligible county;
(2) enters into an agreement with the commission under this
chapter; and
(3) complies with the requirements established under the rules
of the commission.
(b) An eligible student may not claim a tax credit against the
student's Indiana adjusted gross income tax under this chapter.
However, proof of the provisional tax credit awarded under this
chapter may be used to obtain a tax credit under IC 6-3.1-31 in a
taxable year that begins after the eligible student graduates from
a degree program and remains eligible for a tax credit under the
requirements of IC 6-3.1-31.
Sec. 8. (a) The amount of a provisional tax credit awarded under
section 8 of this chapter to an eligible student may not exceed two
thousand dollars ($2,000) per academic year.
(b) The commission may not award total provisional tax credits
for any academic year that exceeds the limit specified by law (if
any).
(c) The commission may consider any of the following factors in
determining the amount of the provisional tax credit to award
under section 7 of this chapter:
(1) Whether an eligible student is enrolled in a degree
program for less than a full academic year.
(2) Any other factor set forth in the rules of the commission.
Sec. 9. An eligible student must enter into an agreement with the
commission to be eligible for a provisional tax credit under this
chapter. The agreement must include the following requirements:
(1) The eligible student must remain enrolled in good standing
in a degree program during the academic year at an
institution of higher learning located in an eligible county.
(2) After the student graduates from the degree program, the
eligible student must, as a condition of claiming the credit
provided under IC 6-3.1-31:
(A) remain in Indiana; and
(B) be employed in the eligible county where the institution
of higher learning referred to in subdivision (1) is located;
for a period of years equal to the number of years for which
the student received a provisional tax credit under this
chapter.
The agreement may include any other provisions that the
commission considers necessary to administer this chapter.
Sec. 10. The commission shall enter into agreements to
implement this chapter with institutions of higher learning located
in eligible counties.
Sec. 11. The commission may adopt rules under IC 4-22-2 that
are necessary or appropriate to implement this chapter. The rules
that are adopted under this chapter may include rules establishing
different standards or procedures for resident and nonresident
students.
SOURCE: IC 36-7-14-39; (05)ES0001.2.32. -->
SECTION 32. IC 36-7-14-39, AS AMENDED BY P.L.4-2005,
SECTION 135, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 39. (a) As used in this section:
"Allocation area" means that part of a blighted area to which an
allocation provision of a declaratory resolution adopted under section
15 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded part of the area added
after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
before January 1,
2006, 2018, may include a provision with respect to
the allocation and distribution of property taxes for the purposes and in
the manner provided in this section. A declaratory resolution
previously adopted may include an allocation provision by the
amendment of that declaratory resolution before January 1,
2006, 2018,
in accordance with the procedures required for its original adoption. A
declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision that may not be more than thirty (30) years after
the date on which the allocation provision is established. However, if
bonds or other obligations that were scheduled when issued to mature
before the specified expiration date and that are payable only from
allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
blighted area. The allocation provision must require that any property
taxes subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes on taxable property in the
allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements in or serving that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) in or serving that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in or serving that allocation area under any
lease entered into under IC 36-1-10.
(I) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the
allocation area will exceed the amount of assessed value
needed to produce the property taxes necessary to make, when
due, principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess assessed value that the commission has
determined may be allocated to the respective taxing units in
the manner prescribed in subdivision (1). The commission
may not authorize an allocation of assessed value to the
respective taxing units under this subdivision if to do so would
endanger the interests of the holders of bonds described in
subdivision (2) or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata portion of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that has no
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
in the fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund
(based on the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
SOURCE: IC 36-7-15.1-26; (05)ES0001.2.33. -->
SECTION 33. IC 36-7-15.1-26, AS AMENDED BY P.L.4-2005,
SECTION 138, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a blighted area to which an
allocation provision of a resolution adopted under section 8 of this
chapter refers for purposes of distribution and allocation of property
taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded part of the area added
after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter before
January 1, 2006, 2018, may include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. A resolution previously adopted may
include an allocation provision by the amendment of that resolution
before January 1, 2006, 2018, in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision that may
not be more than thirty (30) years after the date on which the allocation
provision is established. However, if bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the blighted area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) in that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the
allocated area will exceed the amount of assessed value
needed to provide the property taxes necessary to make, when
due, principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. A unit that has no obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) from
property located in the enterprise zone. The unit that creates the special
zone fund shall use the fund, based on the recommendations of the
urban enterprise association, for one (1) or more of the following
purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
SOURCE: IC 36-7-15.1-53; (05)ES0001.2.34. -->
SECTION 34. IC 36-7-15.1-53, AS AMENDED BY P.L.4-2005,
SECTION 140, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 53. (a) As used in this section:
"Allocation area" means that part of a blighted area to which an
allocation provision of a resolution adopted under section 40 of this
chapter refers for purposes of distribution and allocation of property
taxes.
"Base assessed value" means:
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter before
January 1, 2006, 2018, may include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. A resolution previously adopted may
include an allocation provision by the amendment of that resolution
before January 1, 2006, 2018, in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision must be approved
by resolution of the legislative body of the excluded city and must
specify an expiration date for the allocation provision that may not be
more than thirty (30) years after the date on which the allocation
provision is established. However, if bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the blighted area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) in that
allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of assessed value needed to provide the property
taxes necessary to make, when due, principal and interest
payments on bonds described in subdivision (2) plus the
amount necessary for other purposes described in subdivision
(2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. A unit that has no obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) from
property located in the enterprise zone. The unit that creates the special
zone fund shall use the fund, based on the recommendations of the
urban enterprise association, for one (1) or more of the following
purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
SOURCE: IC 6-1.1-12.1-2.3; (05)ES0001.2.35. -->
SECTION 35. IC 6-1.1-12.1-2.3 IS REPEALED [EFFECTIVE
JULY 1, 2005].
SOURCE: ; (05)ES0001.2.36. -->
SECTION 36. [EFFECTIVE JULY 1, 2005]
(a) IC 6-1.1-12.4, as
added by this act, applies only to:
(1) real property development, redevelopment, or
rehabilitation; and
(2) personal property installation;
that occurs as described in that chapter after March 1, 2005.
(b) The definitions in IC 6-2.5 apply throughout this subsection.
For purposes of IC 6-2.5-6-16, as added by this act, all transactions
shall be considered as having occurred after June 30, 2005, to the
extent that delivery of the property or services constituting selling
at retail is made after that date to the purchaser or to the place of
delivery designated by the purchaser. However, a transaction shall
be considered as having occurred before July 1, 2005, to the extent
that the agreement of the parties to the transaction was entered
into before July 1, 2005, and payment for the property or services
furnished in the transaction is made before July 1, 2005,
notwithstanding the delivery of the property or services after June
30, 2005.
(c) The definitions in IC 6-2.5 apply throughout this subsection.
For purposes of IC 6-2.5-5-39, as added by this act, all transactions
shall be considered as having occurred after June 30, 2007, to the
extent that delivery of the property or services constituting selling
at retail is made after that date to the purchaser or to the place of
delivery designated by the purchaser. However, a transaction shall
be considered as having occurred before July 1, 2007, to the extent
that the agreement of the parties to the transaction was entered
into before July 1, 2007, and payment for the property or services
furnished in the transaction is made before July 1, 2007,
notwithstanding the delivery of the property or services after June
30, 2007.
(d) IC 6-3.1-4-2, as amended by this act, applies only to taxable
years beginning after December 31, 2007.
(e) IC 6-3.1-4-3, as amended by this act, applies to taxable years
beginning after December 31, 2005. A taxpayer with a credit
carryover under IC 6-3.1-4-3 on December 31, 2005, from a
taxable year beginning before January 1, 2006, may carry the
excess credit over for a period not to exceed the ten (10) taxable
years following the taxable year in which the taxpayer was first
entitled to claim the credit. This subsection shall not be construed
to disallow any part of an excess credit used under IC 6-3.1-4-3, as
effective before amendment by this act, for any taxable year ending
before January 1, 2005.
SOURCE: ; (05)ES0001.2.37. -->
SECTION 37. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] (a) IC 6-3.1-24-7, IC 6-3.1-24-9, and
IC 6-3.1-24-12.5, all as amended by this act, apply to taxable years
beginning and proposed investment plans approved after
December 31, 2004.
(b) IC 6-3.1-24-12, as amended by this act, applies to taxable
years beginning after December 31, 2005. A taxpayer with a credit
carryover under IC 6-3.1-24-12 on December 31, 2005, from a
taxable year beginning before January 1, 2006, may carry the
excess credit over for a period not to exceed the five (5) taxable
years following the taxable year in which the taxpayer was first
entitled to claim the credit. This subsection shall not be construed
to disallow any part of an excess credit used under IC 6-3.1-24-12,
as effective before amendment by this act, for any taxable year
ending before January 1, 2006.
SOURCE: ; (05)ES0001.2.38. -->
SECTION 38. [EFFECTIVE JULY 1, 2005]
For purposes of
IC 6-2.5-5-37, as amended by this act, all transactions shall be
considered as having occurred after June 30, 2005, to the extent
that delivery of the property or services constituting selling at
retail is made after that date to the purchaser or to the place of
delivery designated by the purchaser. However, a transaction shall
be considered as having occurred before July 1, 2005, to the extent
that the agreement of the parties to the transaction was entered
into before July 1, 2005, and payment for the property or services
furnished in the transaction is made before July 1, 2005,
notwithstanding the delivery of the property or services after June
30, 2005.
SOURCE: ; (05)ES0001.2.39. -->
SECTION 39. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding the effective dates included in HEA 1003-2005,
the following provisions take effect February 9, 2005, and not July
1, 2005:
(1) SECTIONS 66 through 85 of HEA 1003-2005.
(2) SECTIONS 102 through 110 of HEA 1003-2005.
(3) SECTION 112 of HEA 1003-2005.
(b) The actions taken by the Indiana economic development
corporation to administer IC 6-3.1-13 and IC 6-3.1-26, both as
amended by HEA 1003-2005, after February 8, 2005, and before
the effective date of this act, are legalized and validated.
SOURCE: ; (05)ES0001.2.40. -->
SECTION 40. [EFFECTIVE JULY 1, 2005] The following, all as
amended by this act, apply only to property taxes first due and
payable after December 31, 2006:
(1) IC 6-1.1-12.1-5.4.
(2) IC 6-1.1-12.1-5.6.
(3) IC 6-1.1-12.1-5.9.
(4) IC 6-1.1-12.1-8.
(5) IC 6-1.1-12.1-14.
SOURCE: ; (05)ES0001.2.41. -->
SECTION 41. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] IC 6-1.1-12.1-5 and IC 6-1.1-12.1-5.1, both as
amended by this act, apply to property taxes first due and payable
after December 31, 2005.
SOURCE: ; (05)ES0001.2.42. -->
SECTION 42. [EFFECTIVE JANUARY 1, 2006] IC 6-3.1-31, as
added by this act, applies only to taxable years beginning after
December 31, 2005.
SOURCE: ; (05)ES0001.2.43. -->
SECTION 43. [EFFECTIVE JANUARY 1, 2006] IC 6-3.1-30, as
added by this act, applies to taxable years beginning after
December 31, 2005.
SOURCE: ; (05)ES0001.2.44. -->
SECTION 44. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] (a) Beginning January 1, 2005, and ending
February 9, 2005, this SECTION applies instead of IC 6-3.1-24-7.
(b) The definitions set forth in IC 6-3.1-24 apply throughout this
SECTION.
(c) The Indiana economic development corporation shall certify
that a business is a qualified Indiana business if the corporation
determines that the business:
(1) has its headquarters in Indiana;
(2) is primarily focused on professional motor vehicle racing,
commercialization of research and development, technology
transfers, or the application of new technology, or is
determined by the Indiana economic development corporation
to have significant potential to:
(A) bring substantial capital into Indiana;
(B) create jobs;
(C) diversify the business base of Indiana; or
(D) significantly promote the purposes of this chapter in
any other way;
(3) has had average annual revenues of less than ten million
dollars ($10,000,000) in the two (2) years preceding the year
in which the business received qualified investment capital
from a taxpayer claiming a credit under IC 6-3.1-24;
(4) has:
(A) at least fifty percent (50%) of its employees residing in
Indiana; or
(B) at least seventy-five percent (75%) of its assets located
in Indiana; and
(5) is not engaged in a business involving:
(A) real estate;
(B) real estate development;
(C) insurance;
(D) professional services provided by an accountant, a
lawyer, or a physician;
(E) retail sales, except when the primary purpose of the
business is the development or support of electronic
commerce using the Internet; or
(F) oil and gas exploration.
(d) A business shall apply to be certified as a qualified Indiana
business on a form prescribed by the Indiana economic
development corporation.
(e) If a business is certified as a qualified Indiana business under
this SECTION, the Indiana economic development corporation
shall provide a copy of the certification to the investors in the
qualified Indiana business for inclusion in tax filings.
(f) The Indiana economic development corporation may impose
an application fee of not more than two hundred dollars ($200).
(g) This SECTION expires February 9, 2005.
SOURCE: ; (05)ES0001.2.45. -->
SECTION 45. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] (a) Beginning January 1, 2005, and ending
February 9, 2005, this SECTION applies instead of IC 6-3.1-24-9.
(b) The definitions set forth in IC 6-3.1-24 apply throughout this
SECTION.
(c) The total amount of tax credits that may be allowed under
IC 6-3.1-24 in a particular calendar year for qualified investment
capital provided during that calendar year may not exceed twelve
million five hundred thousand dollars ($12,500,000). The Indiana
economic development corporation may not certify a proposed
investment plan under IC 6-3.1-24-12.5 if the proposed investment
would result in the total amount of the tax credits certified for the
calendar year exceeding twelve million five hundred thousand
dollars ($12,500,000). An amount of an unused credit carried over
by a taxpayer from a previous calendar year may not be
considered in determining the amount of proposed investments
that the Indiana economic development corporation may certify
under IC 6-3.1-24.
(d) Notwithstanding the other provisions of this chapter, a
taxpayer is not entitled to a credit for providing qualified
investment capital to a qualified Indiana business after December
31, 2008. However, this subsection may not be construed to prevent
a taxpayer from carrying over to a taxable year beginning after
December 31, 2008, an unused tax credit attributable to an
investment occurring before January 1, 2009.
(e) This SECTION expires February 9, 2005.
SOURCE: ; (05)ES0001.2.46. -->
SECTION 46. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)]
(a) Beginning January 1, 2005, and ending
February 9, 2005, this SECTION applies instead of
IC 6-3.1-24-12.5.
(b) The definitions set forth in IC 6-3.1-24 apply throughout this
SECTION.
(c) A taxpayer wishing to obtain a credit under IC 6-3.1-24 must
apply to the Indiana economic development corporation for a
certification that the taxpayer's proposed investment plan would
qualify for a credit under IC 6-3.1-24.
(d) The application required under subsection (c) must include:
(1) the name and address of the taxpayer;
(2) the name and address of each proposed recipient of the
taxpayer's proposed investment;
(3) the amount of the proposed investment;
(4) a copy of the certification issued under section
IC 6-3.1-24-7 that the proposed recipient is a qualified
Indiana business; and
(5) any other information required by the Indiana economic
development corporation.
(e) If the Indiana economic development corporation determines
that:
(1) the proposed investment would qualify the taxpayer for a
credit under IC 6-3.1-24; and
(2) the amount of the proposed investment would not result in
the total amount of tax credits certified for the calendar year
exceeding twelve million five hundred thousand dollars
($12,500,000);
the corporation shall certify the taxpayer's proposed investment
plan.
(f) To receive a credit under IC 6-3.1-24, the taxpayer must
provide qualified investment capital to a qualified Indiana business
according to the taxpayer's certified investment plan within two (2)
years after the date on which the Indiana economic development
corporation certifies the investment plan.
(g) Upon making the investment required under subsection (f),
the taxpayer shall provide proof of the investment to the Indiana
economic development corporation.
(h) Upon receiving proof of a taxpayer's investment under
subsection (g), the Indiana economic development corporation
shall issue the taxpayer a certificate indicating that the taxpayer
has fulfilled the requirements of the corporation and that the
taxpayer is entitled to a credit under IC 6-3.1-24.
(i) A taxpayer forfeits the right to a tax credit attributable to an
investment certified under subsection (e) if the taxpayer fails to
make the proposed investment within the period required under
subsection (f).
(j) This SECTION expires February 9, 2005.
SOURCE: ; (05)ES0001.2.47. -->
SECTION 47. [EFFECTIVE JANUARY 1, 2006] IC 6-1.1-12.5, as
added by this act, applies only to property taxes first due and
payable after December 31, 2006.
SOURCE: ; (05)ES0001.2.48. -->
SECTION 48. An emergency is declared for this act.
ES 1_LS 7834/DI 51
Figure
Graphic file number 0 named seal1001.pcx with height 58 p and width 72 p Left aligned