Reprinted
March 23, 2005
ENGROSSED
SENATE BILL No. 378
_____
DIGEST OF SB 378
(Updated March 22, 2005 6:33 pm - DI 58)
Citations Affected: IC 5-28; IC 6-3.1; noncode.
Synopsis: Biodiesel, ethanol, and coal gasification. Provides that the
Indiana economic development corporation reviews and approves
applications for the biodiesel, blended biodiesel, and ethanol income
tax credits. Provide standards that the corporation must apply. Creates
a $20,000,000 overall cap for the biodiesel, blended biodiesel, and
(Continued next page)
Effective: January 1, 2005 (retroactive); upon passage; January 1,
2006.
Weatherwax, Kenley, Waterman,
Heinold, Hershman, Jackman, Hume,
Skinner, Landske, Alting
(HOUSE SPONSORS _ WOODRUFF, HEIM, STILWELL, BORDERS,
DAVIS, THOMAS)
January 11, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
February 24, 2005, amended, reported favorably _ Do Pass.
February 28, 2005, read second time, amended, ordered engrossed.
March 1, 2005, engrossed. Read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
March 10, 2005, read first time and referred to Committee on Ways and Means.
March 17, 2005, amended, reported _ Do Pass.
March 22, 2005, read second time, amended, ordered engrossed.
Digest Continued
ethanol producer credits. Allows the corporation to allocate the
maximum credits for all taxpayers for all taxable years so long as each
credit has a cap of at least $4,000,000. Establishes a credit cap for a
particular producer at $3,000,000 for all taxable years but allows the
Indiana economic development corporation to increase this cap to
$5,000,000. Allows credit carryovers for six taxable years. Provides for
the expiration of the blended biodiesel retailer credit as of January 1,
2007. Extends the blended diesel retail sales tax credits to dealers that
distribute blended diesel at retail by a means other than a metered
pump. Provides a tax credit for a taxpayer who places into service an
integrated coal gasification powerplant. Requires the taxpayer to enter
an agreement with the economic development corporation requiring the
taxpayer to use Indiana coal and satisfy other requirements relating to
the operation of the powerplant. Provides for allocating the credit
among co-owners of a integrated coal gasification powerplant or
owners of a pass-through entity. Corrects an internal reference. Makes
other related changes.
Reprinted
March 23, 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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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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. 378
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 5-28-6-3; (05)ES0378.2.1. -->
SECTION 1. IC 5-28-6-3 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 3. (a) The general
assembly declares that the opportunity for the participation of
underutilized small businesses, especially women and minority
business enterprises, in the biodiesel and ethanol production
industries is essential if social and economic parity is to be obtained
by women and minority business persons and if the economy of
Indiana is to be stimulated as contemplated by this section,
IC 6-3.1-27, and IC 6-3.1-28. A recipient of a credit under this
chapter is encouraged to purchase goods and services from
underutilized small businesses, especially women and minority
business enterprises.
(b) The definitions in IC 6-3.1-27 and IC 6-3.1-28 apply
throughout this section. A term used in this section that is defined
in both IC 6-3.1-27 and IC 6-3.1-28 refers to the term as defined in:
(1) IC 6-3.1-27 whenever this section applies to the
certification of a person for a credit under IC 6-3.1-27; and
(2) IC 6-3.1-28 whenever this section applies to the
certification of a person for a credit under IC 6-3.1-28.
In addition, as used in this section, "person" refers to a taxpayer
or a pass through entity.
(c) As used in this section, "minority" means a member of a
minority group (as defined in IC 4-13-16.5-1).
(d) As used in this section, "minority business enterprise" has
the meaning set forth in IC 4-13-16.5-1.
(e) As used in this section, "women's business enterprise" has
the meaning set forth in IC 4-13-16.5-1.3.
(f) A person that:
(1) begins construction of a facility or an expansion of a
facility for the production of biodiesel, blended biodiesel, or
ethanol in Indiana after February 28, 2005; and
(2) wishes to claim a tax credit with respect to that facility or
the expansion of a facility under any combination of
IC 6-3.1-27-8, IC 6-3.1-27-9, or IC 6-3.1-28-7;
must apply to the corporation for a determination of the person's
eligibility for the tax credit.
(g) Subject to this section, the corporation shall issue to each
qualifying applicant a certification that:
(1) certifies the person as eligible for the tax credits for which
the person applied;
(2) identifies the facilities covered by the certification; and
(3) allocates to the person the lesser of:
(A) the maximum allowable credit for which the person is
eligible under IC 6-3.1-27-8, IC 6-3.1-27-9, or
IC 6-3.1-28-11; or
(B) a credit equal to the level of production demonstrated
as economically viable under the business plan submitted
to the corporation by the person.
(h) To qualify for certification under subsection (g), a person
must do the following:
(1) Submit an application for the credit on the forms and in
the manner prescribed by the corporation for the credit that
is the subject of the application.
(2) Demonstrate through a business plan and other
information presented to the corporation that the level of
production proposed by the person is feasible and
economically viable. In making a determination under this
subdivision, the corporation shall consider:
(A) whether the person is sufficiently capitalized to
complete the project;
(B) the person's credit rating;
(C) whether the person has sufficient technical expertise to
build and operate a facility; and
(D) other relevant financial information as determined by
the corporation.
(i) The corporation shall record the time of filing of each
application submitted under this section. The corporation shall
grant certifications under this section to qualifying applicants in
the chronological order in which the applications for the same type
of credit are filed until the maximum allowable credit for that type
of credit is fully allocated.
(j) The corporation may terminate a certification or reduce an
allocation of a credit granted under this section only if the
corporation determines, after a hearing, that the person granted
the certification or allocation has failed to:
(1) substantially comply with the business plan that is the
basis for the certification or allocation; or
(2) submit the information needed by the corporation to
determine whether the person has substantially complied with
the business plan that is the basis of the certification or
allocation.
If an allocation of a credit is terminated or reduced, the unused
credit becomes available for allocation to other qualifying
applicants in the chronological order in which the applications for
the same type of credit are filed until the maximum allowable
credit for that type of credit is fully allocated. The corporation may
approve an amendment to a business plan or a transfer of a
certificate of eligibility in conformity with the terms and conditions
specified by the corporation in rules adopted by the corporation
under IC 4-22-2.
(k) The corporation shall give the department of state revenue
written notice of each action taken under this section.
SOURCE: IC 6-3.1-27-2.5; (05)ES0378.2.2. -->
SECTION 2. IC 6-3.1-27-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 2.5. As
used in this chapter, "corporation" refers to the Indiana economic
development corporation.
SOURCE: IC 6-3.1-27-3.2; (05)ES0378.2.3. -->
SECTION 3. IC 6-3.1-27-3.2 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 3.2. As
used in this chapter, "distribute at retail" means to sell or
otherwise distribute for consideration to an end user in Indiana.
SOURCE: IC 6-3.1-27-3.5; (05)ES0378.2.4. -->
SECTION 4. IC 6-3.1-27-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 3.5. As
used in this chapter, "facility" refers to a facility that is located in
Indiana and is for the production of:
(1) biodiesel;
(2) blended biodiesel that is blended with biodiesel produced
at a facility located in Indiana; or
(3) both biodiesel and blended biodiesel, as described in
subdivision (2).
SOURCE: IC 6-3.1-27-8; (05)ES0378.2.5. -->
SECTION 5. IC 6-3.1-27-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 8. (a) Subject to section 9.5 of this chapter, a taxpayer that has
been certified by the corporation as eligible for a credit under this
section and produces biodiesel at a facility located in Indiana is
entitled to a credit against the taxpayer's state tax liability equal to the
product of:
(1) one dollar ($1); multiplied by
(2) the number of gallons of biodiesel:
(A) produced at the Indiana facility during the taxable year;
and
(B) used to produce blended biodiesel.
(b) The credit provided by this section shall be reduced by any
credit or subsidy that the taxpayer is entitled to receive from the federal
government for the production of biodiesel by the taxpayer.
(c) (b) The total amount of credits allowed a taxpayer (or, if the
person producing the biodiesel is a pass through entity, the
shareholders, partners, or members of the pass through entity)
under this section may not exceed one three million dollars
($1,000,000) ($3,000,000) for all taxpayers and all taxable years.
SOURCE: IC 6-3.1-27-9; (05)ES0378.2.6. -->
SECTION 6. IC 6-3.1-27-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 9. (a) Subject to section 9.5 of this chapter, a taxpayer that has
been certified by the corporation as eligible for a credit under this
section and produces blended biodiesel at a facility located in Indiana
is entitled to a credit against the taxpayer's state tax liability equal to
the product of:
(1) two cents ($0.02); multiplied by
(2) the number of gallons of blended biodiesel:
(A) produced at the Indiana facility; and
(B) blended with biodiesel produced at a facility located in
Indiana.
(b) The credit provided by this section shall be reduced by any
credit or subsidy that the taxpayer is entitled to receive from the federal
government for the production of blended biodiesel by the taxpayer.
(c) (b) The total amount of credits allowed a taxpayer (or, if the
person producing the blended biodiesel is a pass through entity, the
shareholders, partners, or members of the pass through entity)
under this section may not exceed one three million dollars
($1,000,000) ($3,000,000) for all taxpayers and all taxable years.
SOURCE: IC 6-3.1-27-9.5; (05)ES0378.2.7. -->
SECTION 7. IC 6-3.1-27-9.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 9.5. The
total amount of credits allowed under:
(1) section 8 of this chapter;
(2) section 9 of this chapter; and
(3) IC 6-3.1-28;
may not exceed twenty million dollars ($20,000,000) for all
taxpayers and all taxable years. The corporation shall determine
the maximum allowable amount for each type of credit, which
must be at least four million dollars ($4,000,000) for each credit.
SOURCE: IC 6-3.1-27-10; (05)ES0378.2.8. -->
SECTION 8. IC 6-3.1-27-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 10. (a) A taxpayer that:
(1) is a dealer; and
(2) operates a service station in Indiana at which distributes at
retail blended biodiesel is sold and dispensed through a metered
pump in a taxable year;
is entitled to a credit against the taxpayer's state tax liability.
(b) The amount of the credit allowed under this section is the
product of:
(1) one cent ($0.01); multiplied by
(2) the total number of gallons of blended biodiesel sold and
dispensed distributed at retail in a taxable year. through all the
metered pumps located at a service station described in
subsection (a)(2).
(c) The credit allowed under this section must be computed
separately for each service station operated by the taxpayer that meets
the requirements of subsection (a)(2).
(d) (c) The total amount of credits allowed under this section may
not exceed one million dollars ($1,000,000) for all taxpayers and all
taxable years.
(d) A credit under this section may not be taken for blended
biodiesel distributed at retail after December 31, 2006.
SOURCE: IC 6-3.1-27-12; (05)ES0378.2.9. -->
SECTION 9. IC 6-3.1-27-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 12. (a) If the
amount of the credit determined under this chapter for a taxpayer in a
taxable year exceeds the taxpayer's state tax liability for that taxable
year, the taxpayer may carry over the excess to the following taxable
years. The amount of the credit carryover from a taxable year shall be
reduced to the extent that the carryover is used by the taxpayer to
obtain a credit under this chapter for any subsequent taxable year. A
credit may not be carried forward for more than six (6) taxable
years following the taxable year in which the taxpayer was first
entitled to claim the credit.
(b) A taxpayer is not entitled to a carryback or refund of any unused
credit. A taxpayer may not sell, assign, convey, or otherwise
transfer the tax credit provided by this chapter.
SOURCE: IC 6-3.1-27-13; (05)ES0378.2.10. -->
SECTION 10. IC 6-3.1-27-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 13. To receive the credit provided by this chapter, a taxpayer must
do the following:
(1) Claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department. The taxpayer shall
(2) Provide a copy of the certificate of the corporation finding:
(A) that the taxpayer; or
(B) if the taxpayer is a shareholder, partner, or member of
a pass through entity, that the pass through entity;
is eligible for the credit under IC 5-28-6-3.
(3) Submit to the department proof of all information that the
department determines is necessary for the calculation of the
credit provided by this chapter.
The department may require a pass through entity to provide the
informational reports that the department determines necessary
for the department to calculate the percentage of a credit provided
by this chapter to which a shareholder, partner, or member of the
pass through entity is entitled.
SOURCE: IC 6-3.1-28-1; (05)ES0378.2.11. -->
SECTION 11. IC 6-3.1-28-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 1. As used in this chapter, "board" "corporation" refers to the
Indiana recycling and energy development board economic
development corporation created by IC 4-23-5.5-2. IC 5-28-3-1.
SOURCE: IC 6-3.1-28-7; (05)ES0378.2.12. -->
SECTION 12. IC 6-3.1-28-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 7. Subject to IC 6-3.1-27-9.5 and section 11 of this chapter, a
taxpayer that has been certified by the corporation as eligible for a
credit under this section and produces ethanol at a facility is entitled
to a credit against the taxpayer's state tax liability equal to the product
of:
(1) twelve and one-half cents ($.125); multiplied by
(2) the number of gallons of ethanol produced at the Indiana
facility.
SOURCE: IC 6-3.1-28-10; (05)ES0378.2.13. -->
SECTION 13. IC 6-3.1-28-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 10. To receive the credit provided by this chapter, a taxpayer must
do the following:
(1) Claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department.
(2) Provide a copy of the board's corporation's certificate
finding:
(A) that the facility taxpayer; or
(B) if the taxpayer is a shareholder, partner, or member of
a pass through entity, that the pass through entity;
is a qualified facility eligible for the credit under IC 4-23-5.5-17.
IC 5-28-6-3.
(3) Submit to the department proof of all information that the
department determines is necessary for the calculation of the
credit provided by this chapter.
The department may require a pass through entity to provide the
informational reports that the department determines necessary
for the department to calculate the percentage of the credit
provided by this chapter to which a shareholder, partner, or
member of the pass through entity is entitled.
SOURCE: IC 6-3.1-28-11; (05)ES0378.2.14. -->
SECTION 14. IC 6-3.1-28-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 11. (a) The total amount of credits allowed a taxpayer
(or, if the
person producing the ethanol is a pass through entity, the
shareholders, partners, or members of the pass through entity)
under this chapter may not exceed a total of
five three million dollars
($5,000,000) ($3,000,000) for all taxable years.
(b) Notwithstanding subsection (a) of this section, the total
amount of credits allowed a taxpayer (or, if the person producing
ethanol is a pass through entity, the shareholders, partners, or
members of the pass through entity) may increase to an amount
not to exceed a total of five million dollars ($5,000,000) for all
taxable years with the prior approval of the Indiana economic
development corporation.
(b) The total amount of credits allowed under this chapter may not
exceed ten million dollars ($10,000,000) for all taxpayers and all
taxable years.
SOURCE: IC 6-3.1-29; (05)ES0378.2.15. -->
SECTION 15. IC 6-3.1-29 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 29. Coal Gasification Technology Investment Tax
Credit
Sec. 1. The general assembly declares that the opportunity for
the participation of underutilized small businesses, especially
women and minority business enterprises, in the coal gasification
industry is essential if social and economic parity is to be obtained
by women and minority business persons and if the economy of
Indiana is to be stimulated as contemplated by this chapter. A
recipient of a credit under this chapter is encouraged to purchase
goods and services from underutilized small businesses, especially
women and minority business enterprises.
Sec. 2. As used in this chapter, "commission" refers to the
Indiana utility regulatory commission.
Sec. 3. As used in this chapter, "corporation" refers to the
Indiana economic development corporation established by
IC 5-28-3-1.
Sec. 4. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 5. As used in this chapter, "Indiana coal" has the meaning
set forth in IC 4-4-30-4.
Sec. 6. As used in this chapter, "integrated coal gasification
powerplant" means a facility that satisfies all the following
requirements:
(1) The facility is located in Indiana and is a newly
constructed energy generating plant.
(2) The facility converts coal into synthesis gas that can be
used as a fuel to generate energy.
(3) The facility uses the synthesis gas as a fuel to generate
electric energy.
(4) The facility is dedicated primarily to serving Indiana retail
electric utility consumers.
Sec. 7. As used in this chapter, "minority" means a member of
a minority group (as defined in IC 4-13-16.5-1.)
Sec. 8. As used in this section, "minority business enterprise"
has the meaning set forth in IC 4-13-16.5-1.
Sec. 9. 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;
(4) a limited liability partnership;
(5) a corporation organized under IC 8-1-13; or
(6) a corporation organized under IC 23-17-1 that is an
electric cooperative and that has at least one (1) member that
is a corporation organized under IC 8-1-13.
Sec. 10. As used in this chapter, "qualified investment" means
a taxpayer's expenditures for:
(1) all real and tangible personal property incorporated in
and used as part of an integrated coal gasification
powerplant; and
(2) transmission equipment and other real and personal
property located at the site of an integrated coal gasification
powerplant that is employed specifically to serve the
integrated coal gasification powerplant.
Sec. 11. 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);
(3) IC 27-1-18-2 (the insurance premiums tax); and
(4) IC 6-2.3 (the utility receipts 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. 12. As used in this chapter, "taxpayer" means a person, a
corporation, a partnership, or other entity that makes a qualified
investment.
Sec. 13. As used in this section, "women's business enterprise"
has the meaning set forth in IC 4-13-16.5-1.3.
Sec. 14. (a) A taxpayer that:
(1) is awarded a tax credit under this chapter by the
corporation; and
(2) complies with the conditions set forth in this chapter and
the agreement entered into by the corporation and the
taxpayer under this chapter;
is entitled to a credit against the taxpayer's state tax liability for a
taxable year in which the taxpayer places into service an integrated
coal gasification powerplant and for the taxable years provided in
section 16 of this chapter.
(b) A tax credit awarded under this chapter must be applied
against the taxpayer's state tax liability in the following order:
(1) Against the taxpayer's liability incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax).
(2) Against the taxpayer's liability incurred under IC 6-5.5
(the financial institutions tax).
(3) Against the taxpayer's liability incurred under
IC 27-1-18-2 (the insurance premiums tax).
(4) Against the taxpayer's liability incurred under IC 6-2.3
(the utility receipts tax).
Sec. 15. Subject to section 16 of this chapter, the amount of the
credit to which a taxpayer is entitled is equal to the sum of the
following:
(1) Ten percent (10%) of the taxpayer's qualified investment
for the first five hundred million dollars ($500,000,000)
invested.
(2) Five percent (5%) of the amount of the taxpayer's
qualified investment that exceeds five hundred million dollars
($500,000,000).
Sec. 16. (a) A credit awarded under section 15 of this chapter
must be taken in ten (10) annual installments, beginning with the
year in which the taxpayer places into service an integrated coal
gasification powerplant.
(b) The amount of an annual installment of the credit awarded
under section 15 of this chapter is equal to the amount determined
in the last of the following STEPS:
STEP ONE: Determine the lesser of:
(A) the credit amount determined under section 15 of this
chapter, divided by ten (10); or
(B) the greater of:
(i) the taxpayer's total state tax liability for the taxable
year, multiplied by twenty-five percent (25%); or
(ii) the taxpayer's liability for the utility receipts tax
imposed under IC 6-2.3 for the taxable year.
STEP TWO: Multiply the STEP ONE amount by the
percentage of Indiana coal used in the taxpayer's integrated
coal gasification powerplant in the taxable year for which the
annual installment of the credit is allowed.
(c) If the credit allowed by this chapter is available to a member
of an affiliated group of corporations filing a consolidated return
under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied
against the state tax liability of the affiliated group.
Sec. 17. A person that proposes to place a new integrated coal
gasification powerplant into service may apply to the corporation
before the taxpayer makes the qualified investment to enter into an
agreement for a tax credit under this chapter. The corporation
shall prescribe the form of the application.
Sec. 18. After receipt of an application, the corporation may
enter into an agreement with the applicant for a credit under this
chapter if the corporation determines that the taxpayer's proposed
investment satisfies the requirements of this chapter.
Sec. 19. (a) The corporation shall enter into an agreement with
an applicant that is awarded a credit under this chapter. The
agreement must include all the following:
(1) A detailed description of the project that is the subject of
the agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The maximum tax credit amount that will be allowed for
each taxable year.
(4) A requirement that the taxpayer shall maintain operations
at the project location for at least ten (10) years during the
term that the tax credit is available.
(5) A requirement that the taxpayer shall pay an average
wage to its employees at the integrated coal gasification
powerplant, other than highly compensated employees, in
each taxable year that a tax credit is available that equals at
least one hundred twenty-five percent (125%) of the average
county wage in the county in which the integrated coal
gasification powerplant is located.
(6) A requirement that the taxpayer will maintain during the
term of the tax credit a total payroll paid to Indiana residents
that is at least equal to the payroll level that existed before the
qualified investment was made.
(7) A requirement that the taxpayer shall use Indiana coal at
the taxpayer's integrated coal gasification powerplant.
(8) A requirement that the taxpayer obtain from the
commission a determination under IC 8-1-8.5-2 that public
convenience and necessity require, or will require, the
construction of the taxpayer's integrated coal gasification
powerplant.
(b) A taxpayer must comply with the terms of the agreement
described in subsection (a) to receive an annual installment of the
tax credit awarded under this chapter. The corporation shall
annually determine whether the taxpayer is in compliance with the
agreement. If the corporation determines that the taxpayer is in
compliance, the corporation shall issue a certificate of compliance
to the taxpayer.
Sec. 20. (a) This section applies if a qualified investment is made
by a pass through entity or by taxpayers who are co-owners of an
integrated coal gasification powerplant.
(b) If the credit allowed by this chapter for a taxable year is
greater than the state tax liability of the pass through entity 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 in excess of the pass through entity's state tax
liability for the taxable year; multiplied by
(2) in the case of a pass through entity described in:
(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the
percentage of the pass through entity's distributive income
to which the shareholder, partner, or member is entitled;
and
(ii) section 9(5) or 9(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.
(c) If an integrated coal gasification powerplant is co-owned by
two or more taxpayers, the amount of the credit which may be
allowed to a co-owner in a taxable year is equal to:
(1) the tax credit determined under sections 15 and 16 of this
chapter with respect to the total qualified investment in the
integrated coal gasification powerplant; multiplied by
(2) the co-owner's percentage of ownership in the integrated
coal gasification powerplant.
(d) The amount of an annual installment of the credit allowed to
a shareholder, partner, or member of a pass through entity or a
co-owner shall be determined under section 16 of this chapter
modified as follows:
(1) STEP ONE (A) shall be based on the percentage of the
credit allowed to the shareholder, partner, member or co-owner
under this section.
(2) STEP ONE (B) shall be based on the state tax liability
or liability for utilities receipts tax of the shareholder, partner,
member or co-owner.
Sec. 21. To receive the credit awarded by this chapter, a
taxpayer must claim the credit on the taxpayer's annual state tax
return or returns in the manner prescribed by the department. The
taxpayer shall submit to the department a copy of the commission's
determination required under section 19 of this chapter, a copy of
the taxpayer's certificate of compliance issued under section 19 of
this chapter, and all information that the department determines
is necessary for the calculation of the credit provided by this
chapter.
SOURCE: IC 6-3.1-27-5; (05)ES0378.2.16. -->
SOURCE: IC 6-3.1-27-5. -->
SECTION 16. IC 6-3.1-27-5 IS REPEALED [EFFECTIVE
JANUARY 1, 2005 (RETROACTIVE)].
SOURCE: ; (05)ES0378.2.17. -->
SECTION 17. [EFFECTIVE JANUARY 1, 2006] IC 6-3.1-29, as
added by this act, applies to taxable years beginning after
December 31, 2005.
SOURCE: ; (05)ES0378.2.18. -->
SECTION 18. [EFFECTIVE UPON PASSAGE] The following
apply only to taxable years beginning after December 31, 2004:
(1) IC 5-28-6-3, as added by this act.
(2) IC 6-3.1-27-8, IC 6-3.1-27-9, IC 6-3.1-27-10,
IC 6-3.1-27-12, IC 6-3.1-27-13, IC 6-3.1-28-7, IC 6-3.1-28-10,
and IC 6-3.1-28-11, all as amended by this act.
(3) The repeal of IC 6-3.1-27-5 by this act.
A person who would have been eligible for a credit for the
production of biodiesel, blended biodiesel, or ethanol in 2005 under
IC 6-3.1-27-8, IC 6-3.1-27-9, or IC 6-3.1-28-7, as effective before
their amendment by this act, is eligible for the credit in 2005 only
if the person complies with this act. However, a person that would
have been eligible for a credit in 2005 under IC 6-3.1-27-10, as
effective before its amendment by this act, continues to be eligible
for the credit through any taxable year beginning before the
effective date of this SECTION as if this act had not been enacted,
except for IC 6-3.1-27-12, as amended by this act. The amount of
the credits taken by a taxpayer under IC 6-3.1-28-10, as effective
before the enactment of this act, reduces the maximum allowable
credit available under IC 6-3.1-28-10, as amended by this act.
SOURCE: ; (05)ES0378.2.19. -->
SECTION 19. An emergency is declared for this act.
ES 378_LS 7000/DI 51
Figure
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