Citations Affected: IC 6-3.1; noncode.
Synopsis: EDGE credit. Provides that an applicant may not obtain an
economic development for a growing economy (EDGE) tax credit to
retain existing jobs in Indiana unless the average compensation paid to
the applicant's employees exceeds the lesser of the average county
wage or the average state wage. Removes requirement that an applicant
provide evidence of a competing job site. Reduces the number of
employees the applicant must employ from 200 to 75. Changes the
minimum ratio of local incentives to EDGE credits from $1.50 per $3
of EDGE credits to $1 per $2 of EDGE credits. Requires the EDGE
board to consider, in determining the amount of an EDGE credit, the
average wage paid by the applicant (rather than the amount by which
this average wage exceeds the average county wage).
Effective: July 1, 2005.
January 13, 2005, read first time and referred to Committee on Commerce, Economic
Development and Small Business.
January 27, 2005, amended, reported _ Do Pass.
January 31, 2005, referred to Committee on Ways and Means pursuant to House Rule 127.
February 17, 2005, referral withdrawn.
A BILL FOR AN ACT to amend the Indiana Code concerning
Management and Budget).
(5) (3) The average compensation (including benefits) provided
to the applicant's employees during the applicant's previous fiscal
year exceeds the average compensation paid during that same
period to all employees in the county in which the applicant's
business is located by at least five percent (5%). lesser of:
(A) the average wage in the county where the project for which the credit under this chapter is granted will be located; or
(B) the average wage in the state;
during the same period, as determined by the department of commerce.
(6) (4) The applicant employs at least two hundred (200)
seventy-five (75) employees in Indiana.
(7) (5) The applicant has prepared a plan for the use of the credits
under this chapter for:
(A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or
(B) other direct business related investments, including but not limited to training.
(8) (6) Receiving the tax credit is a major factor in the applicant's
decision to go forward with the project, and not receiving the tax
credit will increase the likelihood of the applicant reducing jobs
(9) (7) Awarding the tax credit will result in an overall positive
fiscal impact to the state, as certified by the budget agency using
the best available data.
(10) (8) The applicant's business and project are economically
sound and will benefit the people of Indiana by increasing or
maintaining opportunities for employment and strengthening the
economy of Indiana.
(11) (9) The communities affected by the potential reduction in
jobs or relocation of jobs to another site outside Indiana have
committed at least one dollar and fifty cents ($1.50) ($1) of local
incentives with respect to the retention of jobs for every three two
dollars ($3) ($2) in credits provided under this chapter. For
purposes of this subdivision, local incentives include, but are not
limited to, cash grants, tax abatements, infrastructure
improvements, investment in facility rehabilitation, construction,
and training investments.
(12) (10) The credit is not prohibited by section 16 of this chapter.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 17. In determining the
credit amount that should be awarded to an applicant under section 15
of this chapter that proposes a project to create jobs in Indiana, the
board shall take into consideration the following factors:
(1) The economy of the county where the projected investment is to occur.
(2) The potential impact on the economy of Indiana.
(3) The incremental payroll attributable to the project.
(4) The capital investment attributable to the project.
amount the average wage paid by the applicant. exceeds
the average wage paid within the county in which the project will
(6) The costs to Indiana and the affected political subdivisions with respect to the project.
(7) The financial assistance that is otherwise provided by Indiana and the affected political subdivisions.
As appropriate, the board shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter.
case of an applicant under section 15.5 of this chapter, the board shall
consider the magnitude of the cost differential between the projected
costs for the applicant's project in the competing site outside Indiana
and the projected costs for the applicant's project in Indiana.
(B) The compensation (including benefits) paid to the applicant's employees in Indiana.
(C) The amount of the:
(i) facility improvements;
(ii) equipment and machinery upgrades, repairs, or retrofits; or
(iii) other direct business related investments, including training.
(6) A requirement that the applicant shall provide written notification to the director and the board not more than thirty (30) days after the applicant makes or receives a proposal that would transfer the applicant's state tax liability obligations to a successor taxpayer.
(7) A requirement that the chief executive officer of the company
applying for a credit under this chapter must verify under penalty
of perjury that the disparity between projected costs of the
applicant's project in Indiana compared with the costs for the
project in a competing site is real and actual.
(8) (7) Any other performance conditions that the board
determines are appropriate.
(b) An agreement between an applicant and the board must be submitted to the budget committee for review and must be approved by the budget agency before an applicant is awarded a credit under this chapter for a project to retain existing jobs in Indiana.