Introduced Version






HOUSE BILL No. 1193

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-34.

Synopsis: Tax credit for farm building insulated curtains. Provides a tax credit against state tax liability for expenditures by a farmer for insulated curtains installed in a farm building located in Indiana. Provides that the amount of the tax credit is 10% of the cost of the insulated curtains and associated installation costs.

Effective: July 1, 2011.





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    January 10, 2011, read first time and referred to Committee on Agriculture and Rural Development.







Introduced

First Regular Session 117th General Assembly (2011)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1193



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-34; (11)IN1193.1.1. -->     SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 34. Tax Credit for Insulated Curtains Used in Farm Buildings
    Sec. 1. This chapter applies only to taxable years beginning after December 31, 2011.
    Sec. 2. As used in this chapter, "farmer" means an entity engaged in the business of agriculture, including:
        (1) an individual acting as a sole proprietor;
        (2) a pass through entity; and
        (3) a corporation.
    Sec. 3. As used in this chapter, "insulated curtain" means a curtain:
        (1) designed for installation in a farm building; and
        (2) having an R-value of at least three (3).
    Sec. 4. 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; or
        (4) a limited liability partnership.
    Sec. 5. 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. 6. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that has any state tax liability.
    Sec. 7. Each taxable year, a farmer who installs insulated curtains during the taxable year at a farm building located in Indiana is entitled to a credit against the farmer's state tax liability in the amount of ten percent (10%) of the farmer's expenditures during the taxable year for the insulated curtains and associated installation costs.

    Sec. 8. (a) If a pass through entity does not have state tax liability for a taxable year but is otherwise entitled to the tax credit provided by this chapter, each shareholder, partner, or member of the pass through entity is entitled to a share of the tax credit equal to:
        (1) the amount of 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, partner, or member is entitled.
    (b) A share of a tax credit allocated under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, neither a pass through entity nor a shareholder, partner, or member of the pass through entity may claim more than one (1) credit in a taxable year for the same expenditure on insulated curtains and associated installation costs.

     Sec. 9. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to

succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time the credit is carried forward 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 not more than nine (9) taxable years following the first year the credit is claimed.
    (b) A taxpayer is not entitled to a carryback or refund of any unused credit under this chapter.

    Sec. 10. To receive the tax credit under 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.