Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
energy.
and necessary for the manufacture or assembly of renewable
energy technology.
Sec. 7. As used in this chapter, "renewable energy technology"
means the following:
(1) Solar panels that convert sunlight into electricity.
(2) Solar technologies that use optical techniques to generate
heat to power turbines or heat engines for the production of
electricity.
(3) Wind turbines that convert wind energy into electricity.
(4) Electrochemical devices, known as fuel cells, that combine
hydrogen and oxygen to produce electricity.
(5) Anaerobic digestion systems in which organic waste is
composted to produce gases that are burned as fuel to
produce electricity.
(6) Geothermal energy systems, including geothermal systems
for:
(A) the generation of electricity; or
(B) heating and cooling.
Sec. 8. 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); and
(3) 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. 9. As used in this chapter, "taxpayer" means an individual,
a corporation, a partnership, or another entity that has state tax
liability.
Sec. 10. The corporation may make credit awards under this
chapter to:
(1) foster job creation and higher wages;
(2) reduce dependency upon energy sources imported into the
United States; and
(3) reduce air pollution;
as the result of the manufacture or assembly of renewable energy
technology in Indiana.
Sec. 11. Each taxable year, 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
the taxable year.
Sec. 12. The amount of the tax credit provided by this chapter
for a taxable year is an amount equal to:
decision to go forward with the project.
(6) 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.
(7) The credit is not prohibited by section 16 of this chapter.
(8) The average wage that will be paid by the taxpayer to the
applicant's 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.
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 corporation.
Sec. 17. The 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
corporation shall grant a credit only for the amount of the
qualified investment that is directly related to expanding:
(1) the workforce in Indiana; or
(2) the capital investment in Indiana.
Sec. 18. 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 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 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:
(A) the useful life of the qualified investment for federal
income tax purposes; or
(B) 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 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 corporation
determines are appropriate.
Sec. 19. A taxpayer claiming a credit under this chapter 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.
Sec. 20. If the director determines that a taxpayer who has
received a credit under this chapter is not complying with the
requirements of the tax credit agreement or all the provisions of
this chapter, the director shall, after giving the taxpayer an
opportunity to explain the noncompliance, notify the Indiana
economic development corporation and the department of state
revenue of the noncompliance and request an assessment. The
department of state revenue, with the assistance of the director,
shall state the amount of the assessment, which may not exceed the
sum of any previously allowed credits under this chapter. After
receiving the notice, the department of state revenue shall make an
assessment against the taxpayer under IC 6-8.1.
Sec. 21. On or before March 31 each year, the director shall
submit a report to the corporation on the tax credit program
established by 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.
Sec. 22. On a biennial basis, the corporation shall provide for an
evaluation of the tax credit program established by this chapter.
The evaluation must include an assessment of the effectiveness of
the program in creating new jobs and increasing wages 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. The report provided to
the president pro tempore of the senate and the speaker of the
house of representatives must be in an electronic format under
IC 5-14-6.
Sec. 23. Notwithstanding the other provisions of this chapter,
the corporation may not approve a credit for a qualified
investment made after December 31, 2012. 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, 2013, forward to a taxable year beginning after
December 31, 2012, in the manner provided by section 13 of this
chapter.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1347 as printed February 3, 2009.)