]
COMMITTEE REPORT
YES:
7
NO:
5
MR. SPEAKER:
Your Committee on Employment and Labor , to which was referred House Bill
1192 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
Delete the title and insert the following:
A BILL FOR AN ACT concerning taxation.
Delete everything after the enacting clause and insert the following:
SOURCE: IC 6-3.1-31; (06)AM119201.1. -->
SECTION 1. IC 6-3.1-31 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]:
Chapter 31. Employee Certification Credit
Sec. 1. As used in this chapter, "certification" means a degree or
certificate that:
(1) is issued a by a certified training provider to an employee
upon completion of a course of training or education;
(2) is recognized by the department of workforce development
or an appropriate industry organization as evidence of an
employee's acquisition of new knowledge or skills; and
(3) results in the payment of higher wages to an employee.
Sec. 2. As used in this chapter, "certified training provider"
means an organization that provides a course of training or
education to an employee for which the employee receives a degree
or certificate.
Sec. 3. (a) As used in this chapter, "employee" means an
individual who:
(1) is continuously employed for at least sixteen (16)
consecutive weeks during a taxable year;
(2) either:
(A) is employed for consideration for at least thirty-five
(35) hours each week; or
(B) renders any other standard of service specified by
contract or generally accepted by custom as full-time
employment; and
(3) receives a certification from a certified training provider.
(b) Notwithstanding subsection (a), the term "employee" does
not include an individual who has a direct or an indirect ownership
interest of at least five percent (5%) in the profits, capital, or value
of the employer, as determined in accordance with Section 1563 of
the Internal Revenue Code and regulations prescribed under that
Section.
Sec. 4. (a) As used in this chapter, "employer" means a taxpayer
that employs an employee and pays qualified wages to the
employee.
(b) Notwithstanding subsection (a), the term "employer" does
not include a taxpayer that:
(1) is a nonprofit corporation;
(2) is an educational institution; or
(3) requires a gaming license or permit to operate under
IC 4-31-5 or IC 4-33-6.
Sec. 5. As used in this chapter, "qualified wages" means the
difference between:
(1) wages paid by an employer to an employee after the
employee's certification; minus
(2) wages paid by an employer to an employee before the
employee's certification.
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3 (the adjusted gross income tax);
(2) IC 6-2.5 (state gross retail and use tax);
(3) IC 6-5.5 (the financial institutions tax); and
(4) IC 27-1-18-2 (the insurance premiums 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. 7. As used in this chapter, "taxpayer" means a person, a
corporation, a partnership, a limited liability corporation, a limited
liability partnership, or any other entity that has any state tax
liability.
Sec. 8. (a) A taxpayer is entitled to a credit against the
taxpayer's state tax liability for a taxable year if the taxpayer pays
qualified wages in the taxable year.
(b) The amount of the credit to which a taxpayer is entitled
equals the product of fifty percent (50%) multiplied by all qualified
wages paid by the employer during the taxable year. However, the
credit amount claimed for a taxable year may not exceed the
taxpayer's state tax liability for the taxable year.
(c) If the amount of the credit to which a taxpayer is entitled
exceeds the taxpayer's state tax liability, the taxpayer may carry
the excess credit over to the following taxable years. The amount
of the credit carryover from a taxable year is reduced to the extent
that the taxpayer uses the carryover to obtain a credit under this
chapter for any subsequent taxable year.
(d) A taxpayer is not entitled to a carryback or refund of any
unused credit.
Sec. 9. To receive the credit under this chapter, a taxpayer must
claim the credit on the taxpayer's 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:
(1) proof of payment of qualified wages;
(2) proof of the certification of each employee to whom
qualified wages are paid; and
(3) all information that the department of state revenue
determines is necessary to:
(A) calculate the credit under this chapter; or
(B) determine whether wages are qualified wages. The
department of workforce development shall review a
determination under this clause.
(Reference is to HB 1192 as introduced.)
and when so amended that said bill do pass.
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AM119201/DI 96 2006