CONFERENCE COMMITTEE REPORT
DIGEST FOR ESB 378
Citations Affected: IC 5-28-6-3; IC 6-3.1.
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. Provides standards that the corporation must apply. Creates a
$20,000,000 overall cap for the biodiesel, blended biodiesel, and 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 of biodiesel or ethanol 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, and requires the
taxpayer to enter into 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. (This conference committee report does the following: (1) allows the
Indiana economic development corporation to increase the credit cap for the production
of biodiesel to $5,000,000; (2) changes the requirement that a taxpayer maintain the level
of the taxpayer's statewide payroll for the term of a tax credit for placing an integrated
coal gasification powerplant into service to a requirement that a taxpayer maintain the
level of the taxpayer's payroll at the location of the taxpayer's investment for the term of
the tax credit; (3) adds a severability clause; and (4) makes technical corrections.)
Effective: Upon passage; January 1, 2005 (retroactive); January 1, 2006.
CONFERENCE COMMITTEE REPORT
MADAM PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed House Amendments to Engrossed Senate Bill No. 378 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the Senate recede from its dissent from all House amendments and that
the Senate now concur in all House amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
SOURCE: IC 5-28-6-3; (05)CC037801.1.1. -->
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)CC037801.1.2. -->
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)CC037801.1.3. -->
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)CC037801.1.4. -->
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)CC037801.1.5. -->
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.
(c) Notwithstanding subsection (b), the total amount of credits
allowed a taxpayer (or if the person producing biodiesel is a pass
through entity, the shareholders, partners, or members of the pass
through entity) may be increased 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.
SOURCE: IC 6-3.1-27-9; (05)CC037801.1.6. -->
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)CC037801.1.7. -->
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)CC037801.1.8. -->
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 through all the metered pumps located at a service
station described in subsection (a)(2). distributed at retail by the
taxpayer in a taxable year.
(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)CC037801.1.9. -->
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)CC037801.1.10. -->
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
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)CC037801.1.11. -->
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)CC037801.1.12. -->
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)CC037801.1.13. -->
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
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)CC037801.1.14. -->
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) 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.
(b) Notwithstanding subsection (a), 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 be increased 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.
SOURCE: IC 6-3.1-29; (05)CC037801.1.15. -->
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) Subject to section 20 of this chapter, 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 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 that existed on the date that the taxpayer placed the
integrated coal gasification powerplant into service.
(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 (2) or more taxpayers, the amount of the credit that 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) Section 16(b) STEP ONE (A) of this chapter shall be based
on the percentage of the credit allowed to the shareholder,
partner, member, or co-owner under this section.
(2) Section 16(b) STEP ONE (B) of this chapter shall be based
on the:
(A) state tax liability; or
(B) utilities receipts tax liability;
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)CC037801.1.16. -->
SECTION 16. IC 6-3.1-27-5 IS REPEALED [EFFECTIVE
JANUARY 1, 2005 (RETROACTIVE)].
SOURCE: ; (05)CC037801.1.17. -->
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)CC037801.1.18. -->
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)CC037801.1.19. -->
SECTION 19. [EFFECTIVE JANUARY 1, 2006] Each individual
provision of this act is fully severable. If a provision requiring an
agreement executed under IC 6-3.1-29-19, as added by this act, to
include a particular term is declared invalid, the invalidity of the
provision does not affect the validity of:
(1) the other provisions of IC 6-3.1-29, as added by this act;
(2) the other terms of the agreement executed under
IC 6-3.1-29-19, as added by this act; or
(3) a tax credit awarded under IC 6-3.1-29, as added by this
act.
SOURCE: ; (05)CC037801.1.20. -->
SECTION 20.
An emergency is declared for this act.
(Reference is to ESB 378 as reprinted March 23, 2005.)
Conference Committee Report
on
Engrossed Senate Bill 378
Text Box
S
igned by:
____________________________ ____________________________
Senator WeatherwaxRepresentative Woodruff
Chairperson
____________________________ ____________________________
Senator HumeRepresentative Stilwell
Senate Conferees House Conferees