HB 1003-5_ Filed 01/31/2005, 09:50 Ford

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1003 be amended to read as follows:

SOURCE: Page 43, line 5; (05)MO100331.43. -->     Page 43, line 5, delete "The" and insert " Subject to approval by the budget agency, the".
    Page 43, line 6, delete "or any other state officer," and insert " ,".
    Page 43, line 10, delete "The" and insert " Subject to approval by the budget agency, the".
    Page 43, line 11, delete "or any other state officer." and insert " .".
    Page 50, line 11, after "deposited" insert " in".
    Page 53, line 25, after "deposited" insert " in".
    Page 72, line 16, delete "(c)" and insert " (d)".
    Page 72, line 21, delete "(d)" and insert " (e)".
    Page 76, line 20, delete "phase-out" and insert " phaseout".
    Page 82, line 27, after "deposited " insert " in".
    Page 87, line 7, after "chapter." insert " However, the corporation shall assume the debt of the small business development corporation that is outstanding on the date the small business development corporation is abolished.".
    Page 89, line 6, after "deposited" insert " in".
    Page 103, line 4, delete "26." and insert " 23.".
    Page 104, line 27, after "chapter." insert " However, the corporation shall assume the debt of the business modernization and technology corporation that is outstanding on the date the business modernization and technology corporation is abolished.".
    Page 104, line 32, delete "23." and insert " 24.".
    Page 105, line 22, delete "office." and insert " corporation.".
    Page 106, line 35, delete "24." and insert " 25.".
    Page 108, delete lines 17 through 42.
    Delete page 109.
    Page 110, delete lines 1 through 33.
    Page 133, delete lines 39 through 42, begin a new paragraph and insert:
SOURCE: IC 6-3.1-13-1.5; (05)MO100331.66. -->     "SECTION 66. IC 6-3.1-13-1.5 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1.5. As used in this chapter, "corporation" means the Indiana economic development corporation established by IC 5-28-3-1.

SOURCE: IC 6-3.1-13-2; (05)MO100331.67. -->     SECTION 67. IC 6-3.1-13-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. As used in this chapter, "credit amount" means the amount agreed to between the board corporation and applicant under this chapter, but not to exceed, in the case of a credit awarded for a project to create new jobs in Indiana, the incremental income tax withholdings attributable to the applicant's project.
SOURCE: IC 6-3.1-13-3; (05)MO100331.68. -->     SECTION 68. IC 6-3.1-13-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. As used in this chapter, "director" means the director president of the department of commerce. corporation.
SOURCE: IC 6-3.1-13-13; (05)MO100331.69. -->     SECTION 69. IC 6-3.1-13-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13. (a) The board corporation may make credit awards under this chapter to foster job creation in Indiana or, as provided in section 15.5 of this chapter, job retention in Indiana.
    (b) The credit shall be claimed for the taxable years specified in the taxpayer's tax credit agreement.
SOURCE: IC 6-3.1-13-14; (05)MO100331.70. -->     SECTION 70. IC 6-3.1-13-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 14. A person that proposes a project to create new jobs in Indiana may apply, as provided in section 15 of this chapter, to the board corporation to enter into an agreement for a tax credit under this chapter. A person that proposes to retain existing jobs in Indiana may apply, as provided in section 15.5 of this chapter, to the board corporation to enter into an agreement for a tax credit under this chapter. The director shall prescribe the form of the application.
SOURCE: IC 6-3.1-13-15; (05)MO100331.71. -->     SECTION 71. IC 6-3.1-13-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. This section applies to an application proposing a project to create new jobs in Indiana. After receipt of an application, the board corporation may enter into an agreement with the applicant for a credit under this chapter if the board corporation determines that all of the following conditions exist:
        (1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in Indiana.
        (2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment in Indiana and strengthening the economy of Indiana.
        (3) The political subdivisions affected by the project have committed significant local incentives with respect to the project.
        (4) (3) 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 result in the applicant not creating new jobs in Indiana.
        (5) (4) 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.
        (6) (5) The credit is not prohibited by section 16 of this chapter.

SOURCE: IC 6-3.1-13-15.5; (05)MO100331.72. -->     SECTION 72. IC 6-3.1-13-15.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15.5. This section applies to an application proposing to retain existing jobs in Indiana. After receipt of an application, the board corporation may enter into an agreement with the applicant for a credit under this chapter if the board corporation determines that all the following conditions exist:
        (1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.
        (2) The applicant provides evidence that there is at least one (1) other competing site outside Indiana that is being considered for the project or for the relocation of jobs.
        (3) A disparity is identified, using the best available data, in the projected costs for the applicant's project in Indiana compared with the costs for the project in the competing site.
        (4) The applicant is engaged in research and development, manufacturing, or business services (as defined in the Standard Industrial Classification Manual of the United States Office of Management and Budget).
        (5) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year exceeds the 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%).
        (6) The applicant employs at least two hundred (200) employees in Indiana.
        (7) The applicant has prepared a plan for the use of the credits under this chapter for:
            (A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or
            (B) other direct business related investments, including but not limited to training.
        (8) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project, and not receiving the tax credit will increase the likelihood of the applicant reducing jobs in Indiana.
        (9) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
        (10) The applicant's business and project are economically sound and will benefit the people of Indiana by increasing or maintaining opportunities for employment and strengthening the economy of Indiana.
        (11) The communities affected by the potential reduction in jobs or relocation of jobs to another site outside Indiana have committed at least one dollar and fifty cents ($1.50) of local

incentives with respect to the retention of jobs for every three dollars ($3) in credits provided under this chapter. For purposes of this subdivision, local incentives include, but are not limited to, cash grants, tax abatements, infrastructure improvements, investment in facility rehabilitation, construction, and training investments.
        (12) The credit is not prohibited by section 16 of this chapter.

SOURCE: IC 6-3.1-13-16; (05)MO100331.73. -->     SECTION 73. IC 6-3.1-13-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 16. A person is not entitled to claim the credit provided by this chapter for any jobs that the person relocates from one (1) site in Indiana to another site in Indiana. Determinations under this section shall be made by the board. corporation.
SOURCE: IC 6-3.1-13-17; (05)MO100331.74. -->     SECTION 74. IC 6-3.1-13-17 IS AMENDED TO READ AS 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 corporation shall take into consideration the following factors:
        (1) The economy of the county where the projected investment is to occur.
        (2) The potential impact on the economy of Indiana.
        (3) The incremental payroll attributable to the project.
        (4) The capital investment attributable to the project.
        (5) The amount the average wage paid by the applicant exceeds the average wage paid within the county in which the project will be located.
        (6) The costs to Indiana and the affected political subdivisions with respect to the project.
        (7) The financial assistance and incentives that is are otherwise provided by Indiana and the affected political subdivisions.
As appropriate, the board corporation shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter. In the case of an applicant under section 15.5 of this chapter, the board corporation 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.
SOURCE: IC 6-3.1-13-18; (05)MO100331.75. -->     SECTION 75. IC 6-3.1-13-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 18. (a) The board corporation shall determine the amount and duration of a tax credit awarded under this chapter. The duration of the credit may not exceed ten (10) taxable years. The credit may be stated as a percentage of the incremental income tax withholdings attributable to the applicant's project and may include a fixed dollar limitation. In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's

state tax liability for the taxable year, in which case the excess shall may, at the discretion of the corporation, be refunded to the taxpayer.
    (b) For state fiscal years 2004 and 2005, the aggregate amount of credits awarded under this chapter for projects to retain existing jobs in Indiana may not exceed five million dollars ($5,000,000) per year.

SOURCE: IC 6-3.1-13-19; (05)MO100331.76. -->     SECTION 76. IC 6-3.1-13-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19. In the case of a credit awarded for a project to create new jobs in Indiana, the board corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the project that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The 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 two (2) times the number of years as the term of the tax credit. A taxpayer is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) 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.
        (6) A requirement that the taxpayer shall annually report to the board corporation the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the director needs to perform the director's duties under this chapter.
        (7) A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
        (8) A requirement that the taxpayer shall provide written notification to the director and the board corporation 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.
        (9) Any other performance conditions that the board corporation determines are appropriate.
SOURCE: IC 6-3.1-13-19.5; (05)MO100331.77. -->     SECTION 77. IC 6-3.1-13-19.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19.5. (a) In the case of a credit awarded for a project to retain existing jobs in Indiana, the board corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the business that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the applicant shall maintain operations at the project location for at least two (2) times the number of years as the term of the tax credit. An applicant is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A requirement that the applicant shall annually report the following to the board: corporation:
            (A) The number of employees who are employed in Indiana by the applicant.
            (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 corporation 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) Any other performance conditions that the board corporation determines are appropriate.
    (b) An agreement between an applicant and the board corporation 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.
SOURCE: IC 6-3.1-13-20; (05)MO100331.78. -->     SECTION 78. IC 6-3.1-13-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 20. A taxpayer claiming a credit under this chapter must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue a copy of the director's certificate of verification under this chapter for the taxable year. However, failure to submit a copy of the certificate does not invalidate a claim for a credit. all information that the department determines necessary for the calculation of the credit provided by this chapter

and the determination of whether the credit was properly claimed.

SOURCE: IC 6-3.1-13-21; (05)MO100331.79. -->     SECTION 79. IC 6-3.1-13-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 21. (a) If a pass through entity does not have state income tax liability against which the tax credit may be applied, a shareholder or partner 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 or partner is entitled.
    (b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder or partner of a pass through entity is otherwise entitled under a separate agreement under this chapter. A pass through entity and a shareholder or partner of the pass through entity may not claim more than one (1) credit under the same agreement.
    (c) This subsection applies only to a pass through entity that is a limited liability company or a limited liability partnership owned wholly or in part by an electric cooperative incorporated under IC 8-1-13. At the request of a pass through entity, if the board corporation finds that the amount of the average wage to be paid by the pass through entity will be at least double the average wage paid within the county in which the project will be located, the board corporation may determine that:
        (1) the credit shall be claimed by the pass through entity; and
        (2) if the credit exceeds the pass through entity's state income tax liability for the taxable year, the excess shall be refunded to the pass through entity.
If the board corporation grants a refund directly to a pass through entity under this subsection, the pass through entity shall claim the refund on forms prescribed by the department of state revenue.
SOURCE: IC 6-3.1-13-22; (05)MO100331.80. -->     SECTION 80. IC 6-3.1-13-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 22. If the director department of state revenue or the corporation determines that a taxpayer who has received claimed a credit under this chapter is not complying entitled to the credit because of the taxpayer's noncompliance with the requirements of the tax credit agreement or all of the provisions of this chapter, the director department or the corporation shall, after giving the taxpayer an opportunity to explain the noncompliance, notify the department of commerce of the noncompliance and request impose an assessment The director shall state the on the taxpayer in an amount of the assessment, which that may not exceed the sum of any previously allowed credits under this chapter After receiving such a notice, the department of commerce shall make an assessment against the taxpayer under IC 6-8.1 for the amount stated in the director's notice. together with interest and penalties required or permitted by law.
SOURCE: IC 6-3.1-13-23; (05)MO100331.81. -->     SECTION 81. IC 6-3.1-13-23 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 23. On or before March 31 each year, the director shall submit a report to the board corporation on the tax credit program under this chapter. The report shall include information on the number of agreements that were entered into under this chapter during the preceding calendar year, a description of the project that is the subject of each agreement, an update on the status of projects under agreements entered into before the preceding calendar year, and the sum of the credits awarded under this chapter. A copy of the report shall be transmitted in an electronic format under IC 5-14-6 to the executive director of the legislative services agency for distribution to the members of the general assembly.

SOURCE: IC 6-3.1-13-24; (05)MO100331.82. -->     SECTION 82. IC 6-3.1-13-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 24. On a biennial basis, the board corporation shall provide for an evaluation of the tax credit program. giving first priority to using the Indiana economic development council, established under IC 4-3-14-4. The evaluation shall include an assessment of the effectiveness of the program in creating new jobs and retaining existing jobs in Indiana and of the revenue impact of the program, and may include a review of the practices and experiences of other states with similar programs. The director shall submit a report on the evaluation to the governor, the president pro tempore of the senate, and the speaker of the house of representatives after June 30 and before November 1 in each odd-numbered year.
SOURCE: IC 6-3.1-13-25; (05)MO100331.83. -->     SECTION 83. IC 6-3.1-13-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 25. The department of commerce corporation may adopt rules under IC 4-22-2 necessary to implement this chapter. The rules may provide for recipients of tax credits under this chapter to be charged fees to cover administrative costs of the tax credit program. Fees collected shall be deposited in the economic development for a growing economy fund.
SOURCE: IC 6-3.1-13-26; (05)MO100331.84. -->     SECTION 84. IC 6-3.1-13-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 26. (a) The economic development for a growing economy fund is established to be used exclusively for the purposes of this chapter and IC 6-3.1-26, including paying for the costs of administering this chapter and IC 6-3.1-26. The fund shall be administered by the department of commerce. corporation.
    (b) The fund consists of collected fees, appropriations from the general assembly, and gifts and grants to the fund.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund.
    (d) The money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund to be used exclusively for the purposes of this chapter. Expenditures from the fund

are subject to appropriation by the general assembly and approval by the budget agency.

SOURCE: IC 6-3.1-13-27; (05)MO100331.85. -->     SECTION 85. IC 6-3.1-13-27 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 27. (a) Subject to all other requirements of this chapter, the board corporation may award a tax credit under this chapter to a nonprofit organization that is a high growth company with high skilled jobs (as defined in IC 4-4-10.9-9.5) if:
        (1) the nonprofit organization:
            (A) is a taxpayer (as defined in section 10 of this chapter); and
            (B) meets all requirements of this chapter; and
        (2) all of the following conditions are satisfied:
            (A) The wages of at least seventy-five percent (75%) of the organization's total workforce in Indiana must be equal to at least two hundred percent (200%) of the average county wage, as determined by the department of commerce, corporation, in the county where the project for which the credit is granted will be located.
            (B) The organization must make an investment of at least fifty million dollars ($50,000,000) in capital assets.
            (C) The affected political subdivision must provide substantial financial assistance to the project.
            (D) The incremental payroll attributable to the project must be at least ten million dollars ($10,000,000) annually.
            (E) The organization agrees to pay the ad valorem property taxes on the organization's real and personal property that would otherwise be exempt under IC 6-1.1-10.
            (F) The organization does not receive any deductions from the assessed value of the organization's real and personal property under IC 6-1.1-12 or IC 6-1.1-12.1.
            (G) The organization pays all of the organization's ad valorem property taxes to the taxing units in the taxing district in which the project is located.
            (H) The project for which the credit is granted must be located in a county having a population of more than one hundred eighty thousand (180,000) but less than one hundred eighty-two thousand seven hundred ninety (182,790).
    (b) Notwithstanding section 6(a) of this chapter, the board corporation may award credits to an organization under subsection (a) if:
        (1) the organization met all other conditions of this chapter at the time of the applicant's location or expansion decision;
        (2) the applicant is in receipt of a letter from the department of commerce stating an intent to pursue a credit agreement; and
        (3) the letter described in subdivision (2) is issued by the department of commerce not later than January 1, 2000.".
    Delete pages 134 through 138.
SOURCE: Page 139, line 1; (05)MO100331.139. -->     Page 139, delete lines 1 through 22.
    Page 148, between lines 3 and 4, begin a new paragraph and insert:
SOURCE: IC 6-3.1-26-2.5; (05)MO100331.113. -->     "SECTION 113. IC 6-3.1-26-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2.5. As used in this chapter, "corporation" means the Indiana economic development corporation established by IC 5-28-3-1.
SOURCE: IC 6-3.1-26-8; (05)MO100331.114. -->     SECTION 114. IC 6-3.1-26-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. (a) As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures for:
        (1) the purchase of new telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, or finishing equipment;
        (2) the purchase of new computers and related equipment;
        (3) costs associated with the modernization of existing telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, or finishing facilities;
        (4) onsite infrastructure improvements;
        (5) the construction of new telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, or finishing facilities;
        (6) costs associated with retooling existing machinery and equipment; and
        (7) costs associated with the construction of special purpose buildings and foundations for use in the computer, software, biological sciences, or telecommunications industry;
that are certified by the board corporation under this chapter as being eligible for the credit under this chapter.
    (b) The term does not include property that can be readily moved outside Indiana.
SOURCE: IC 6-3.1-26-12; (05)MO100331.115. -->     SECTION 115. IC 6-3.1-26-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 12. The board corporation may make credit awards under this chapter to foster job creation and higher wages in Indiana.
SOURCE: IC 6-3.1-26-13; (05)MO100331.116. -->     SECTION 116. IC 6-3.1-26-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13. A taxpayer that:
        (1) is awarded a tax credit under this chapter by the board; corporation; and
        (2) complies with the conditions set forth in this chapter and the agreement entered into by the board corporation and the taxpayer under this chapter;
is entitled to a credit against the taxpayer's state tax liability in a taxable year.
SOURCE: IC 6-3.1-26-17; (05)MO100331.117. -->     SECTION 117. IC 6-3.1-26-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 17. A person that proposes a project to create new jobs or increase wage levels in Indiana may apply to the board corporation before the taxpayer makes the

qualified investment to enter into an agreement for a tax credit under this chapter. The director shall prescribe the form of the application.

SOURCE: IC 6-3.1-26-18; (05)MO100331.118. -->     SECTION 118. IC 6-3.1-26-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 18. After receipt of an application, the board corporation may enter into an agreement with the applicant for a credit under this chapter if the board corporation determines that all the following conditions exist:
        (1) The applicant has conducted business in Indiana for at least one (1) year immediately preceding the date the application is received.
        (2) The applicant's project will raise the total earnings of employees of the applicant in Indiana.
        (3) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana.
        (4) 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 result in the applicant not raising the total earnings of employees in Indiana.
        (5) 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.
        (6) The credit is not prohibited by section 19 of this chapter.
        (7) The average wage that will be paid by the taxpayer to its employees (excluding highly compensated employees) at the location after the credit is given will be at least equal to one hundred fifty percent (150%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.
SOURCE: IC 6-3.1-26-19; (05)MO100331.119. -->     SECTION 119. IC 6-3.1-26-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19. A person is not entitled to claim the credit provided by this chapter for any jobs that the person relocates from one (1) site in Indiana to another site in Indiana. Determinations under this section shall be made by the board. corporation.
SOURCE: IC 6-3.1-26-20; (05)MO100331.120. -->     SECTION 120. IC 6-3.1-26-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 20. The board corporation shall certify the amount of the qualified investment that is eligible for a credit under this chapter. In determining the credit amount that should be awarded, the board corporation shall grant a credit only for the amount of the qualified investment that is directly related to expanding the workforce in Indiana.
SOURCE: IC 6-3.1-26-21; (05)MO100331.121. -->     SECTION 121. IC 6-3.1-26-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 21. The board 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 amount of the taxpayer's state tax liability for each tax in the taxable year of the taxpayer that immediately preceded the 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 corporation 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 corporation 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 corporation determines are appropriate.
SOURCE: IC 6-3.1-26-24; (05)MO100331.122. -->     SECTION 122. IC 6-3.1-26-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 24. On or before March 31 each year, the director shall submit a report to the board corporation on the tax credit program under this chapter. The report must include information on the number of agreements that were

entered into under this chapter during the preceding calendar year, a description of the project that is the subject of each agreement, an update on the status of projects under agreements entered into before the preceding calendar year, and the sum of the credits awarded under this chapter. A copy of the report shall be transmitted in an electronic format under IC 5-14-6 to the executive director of the legislative services agency for distribution to the members of the general assembly.".

SOURCE: Page 148, line 19; (05)MO100331.148. -->     Page 148, line 19, strike "board" and insert " corporation".
    Page 148, line 20, delete "," and insert ".".
    Page 148, line 20, strike "giving first priority to using the Indiana economic".
    Page 148, line 21, strike "development".
    Page 148, line 21, delete "corporation".
    Page 148, line 21, strike "established under".
    Page 148, line 22, delete "IC 5-28-3.".
    Page 194, line 16, delete "IC 6-3.1-13-3." and insert "IC 6-3.1-13-1; IC 6-3.1-13-12; IC 6-3.1-26-2.".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1003 as printed January 28, 2005.)

________________________________________

Senator FORD


MO100331/DI 73
2005