Citations Affected: IC 6-3.1-26.
Synopsis: Hoosier business investment tax credit. Extends the
availability of the Hoosier business investment tax credit for
investments made after December 31, 2007. Requires the economic
development for a growing economy board to consider and evaluate all
applications for credit awards using the criteria required by statute.
Prohibits the board from establishing eligibility standards that are not
specified by statute. Removes the board's authority to require
performance conditions that are not specified by statute in an
agreement between a taxpayer and the board.
Effective: July 1, 2005.
January 6, 2005, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
first taxable year in which the credit may be claimed.
(4) The maximum tax credit amount that will be allowed for each taxable year.
(5) 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.
(6) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.
(7) A requirement that the taxpayer shall annually report to the board the number of new employees who are performing jobs not previously performed by an employee, the average wage of the new employees, the average wage of all employees at the location where the qualified investment is made, and any other information the director needs to perform the director's duties under this chapter.
(8) A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (7), and that after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
(9) A requirement that the taxpayer shall pay an average wage to all its employees other than highly compensated employees in each taxable year that a tax credit is available that equals at least one hundred fifty percent (150%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.
(10) A requirement that the taxpayer will keep the qualified investment property that is the basis for the tax credit in Indiana for at least the lesser of its useful life for federal income tax purposes or ten (10) years.
(11) A requirement that the taxpayer will maintain at the location where the qualified investment is made during the term of the tax credit a total payroll that is at least equal to the payroll level that existed before the qualified investment was made.
(12) A requirement that the taxpayer shall provide written notification to the director and the board not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.
(13) Any other performance conditions that the board determines
applies to taxable years beginning after December 31, 2003.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for a qualified investment made after
December 31, 2007. However, this section may not be construed to
prevent a taxpayer from carrying an unused tax credit attributable to a
qualified investment made before January 1, 2008, forward to a taxable
year beginning after December 31, 2007, in the manner provided by
section 15 of this chapter.