Citations Affected: IC 6-3.1; noncode.
Synopsis: Developmental disability employment tax credit.
Establishes the developmental disability employment tax credit for
taxpayers that employ individuals with developmental disabilities.
Provides that the credit may not exceed 33% of the first $6,000 paid to
the employee during the first year of employment and 25% of the first
$6,000 paid to the employee during the second year of employment.
Effective: January 1, 2008.
January 16, 2007, read first time and referred to Committee on Ways and Means.
February 19, 2007, a
mended, reported _ Do Pass.
February 23, 2007, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
health insurance coverage, if the taxpayer offers this coverage
for employees who are not individuals with developmental
disabilities.
(3) The employee with a developmental disability is paid
compensation at least equal to the minimum wage or a wage
comparable to that paid to employees who are not individuals
with developmental disabilities based on the employee's
training, skills, and job classification.
(4) Except as provided by section 6(b) of this chapter, the
employee with a developmental disability has been employed
by the taxpayer for at least ninety (90) days during the taxable
year for which the taxpayer claims a credit under this
chapter.
Sec. 4. As used in this chapter, "state income tax liability"
means a taxpayer's total tax liability that is incurred under
IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
Sec. 5. As used in this chapter, "taxpayer" means a person,
corporation, partnership, or other entity that has any state income
tax liability.
Sec. 6. (a) A taxpayer is entitled to a tax credit against the
taxpayer's state income tax liability in an amount up to:
(1) thirty-three percent (33%) of the first six thousand dollars
($6,000) in taxable wages paid by the taxpayer in the taxable
year to each qualified employee who is in the first year or first
partial year of employment with the taxpayer; and
(2) twenty-five percent (25%) of the first six thousand dollars
($6,000) in taxable wages paid by the taxpayer in the taxable
year to each qualified employee who is in the second year of
continuous employment with the taxpayer.
(b) If the taxpayer hires a qualified employee during the last
eighty-nine (89) days of the taxpayer's taxable year, the qualified
employee shall be considered a new employee in the following
taxable year.
Sec. 7. (a) If the credit provided by section 6 of this chapter
exceeds the taxpayer's state tax liability for that taxable year, the
excess may be carried over to succeeding taxable years and used as
a credit against the tax otherwise due and payable by the taxpayer
under IC 6-3 during those taxable years. Each time that the credit
is carried over to a succeeding taxable year, the credit is to be
reduced by the amount that was used as a credit during the
immediately preceding taxable year. The credit provided by this
chapter may be carried forward and applied to succeeding taxable
years for four (4) taxable years following the unused credit year.
(b) A taxpayer is not entitled to any carryback or refund of any
unused credit.
Sec. 8. If a pass through entity is entitled to a credit under
section 6 of this chapter but does not have a state tax liability
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 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, partner, or member is
entitled.
Sec. 9. To receive the credit provided 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 all information that the department
determines is necessary for the calculation of the credit provided
by this chapter.