SENATE BILL No. 244
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-26.
Synopsis: Hoosier business investment income tax credit. Revises the
Hoosier business investment tax credit. Provides that for a qualified
investment in a project that substantially enhances the logistics industry
and improves the overall Indiana economy, the project will not have to
create new jobs or increase wage levels in Indiana. Increases the tax
credit ceiling from 10% to 25% of a qualified investment if the
qualified investment is a capital investment. Adds specificity to certain
qualified investments for non-infrastructure and infrastructure
investments related to distribution, transportation, or logistical
distribution by air, rail, water, or highway. Specifies that the credit may
be used to provide an incentive to invest in privately-held airports, rail,
waterways, and roads if the investment will expand the overall capacity
to transport freight. Provides that for capital investments, the qualified
investments used to determine the credit are based on growth in
qualified investments by the taxpayer using 105% of the investments
made by the taxpayer during the immediately preceding two years.
Limits the credit for a qualified investment that consists of new
infrastructure construction or an infrastructure addition or improvement
to an overall credit ceiling of $20,000,000 for each state fiscal year.
Changes the sunset date for granting credit awards from December, 31,
2016, to December 31, 2020.
Effective: January 1, 2014.
January 7, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
First Regular Session 118th General Assembly (2013)
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SENATE BILL No. 244
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-26-8; (13)IN0244.1.1. -->
SECTION 1. IC 6-3.1-26-8, AS AMENDED BY P.L.137-2006,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 8. (a) As used in this chapter, "qualified
investment" means the amount of the taxpayer's expenditures in Indiana
(1) the purchase of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, or
finishing equipment, or
transportation, or logistical distribution equipment, such as new
equipment, having a useful life of at least five (5) years, that
(A) the transportation of goods by air, rail, water, or
Indiana highways; or
(B) logistical distribution;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, extraction, mining, processing, refining, finishing,
distribution, transportation, or logistical distribution facilities;
(4) onsite infrastructure improvements, including investments in
privately held airports, rail, waterways, or roads if the
investment will increase the overall capacity to transport
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, finishing, distribution, transportation, or
logistical distribution facilities, including:
(A) investments in privately held airports, rail, waterways,
or roads if the investment will increase the overall capacity
to transport freight; and
(B) new maintenance areas related to such a facility;
(6) costs associated with retooling existing machinery and
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry; and
(8) costs associated with the purchase of machinery, equipment,
or special purpose buildings used to make motion pictures or
that are certified by the corporation under this chapter as being eligible
for the credit under this chapter.
(b) The term does not include property that can be readily moved
SOURCE: IC 6-3.1-26-14; (13)IN0244.1.2. -->
SECTION 2. IC 6-3.1-26-14, AS AMENDED BY P.L.199-2005,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 14. The total amount of a tax credit claimed
for a taxable year under this chapter is a percentage determined by the
corporation, not to exceed:
(1) ten percent (10%), of the amount of a qualified investment
made by the taxpayer in Indiana during that taxable year, if the
qualified investment is not a capital investment; and
(2) twenty-five percent (25%) of the amount of a qualified
investment made by the taxpayer in Indiana during that
taxable year, if the qualified investment is a capital
investment. For purposes of this subdivision, the amount of a
qualified investment that is used to determine the credit is
limited to the difference of:
(A) the qualified investments made by the taxpayer during
the taxable year; minus
(B) one hundred five percent (105%) of the average annual
qualified investments made by the taxpayer during the two
(2) taxable years immediately preceding the taxable year
for which the credit is being claimed. However, if the
qualified investments for the earlier year of the two (2)
year average is zero (0) and the taxpayer has not claimed
the credit for a year that precedes that year, the taxpayer
shall subtract only one hundred five percent (105%) of the
amount of the qualified investments made during the
taxable year immediately preceding the taxable year for
which the credit is being claimed.
The taxpayer may carry forward any unused credit as provided in
section 15 of this chapter.
SOURCE: IC 6-3.1-26-15; (13)IN0244.1.3. -->
SECTION 3. IC 6-3.1-26-15, AS AMENDED BY P.L.199-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 15. (a) A taxpayer may carry forward an
unused credit for the number of years determined by the corporation,
not to exceed nine (9) consecutive taxable years, beginning with the
taxable year after the taxable year in which the taxpayer makes the
(b) The amount that a taxpayer may carry forward to a particular
taxable year under this section equals the unused part of a credit
allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified
(2) carry forward a remainder for one (1) or more different
in the same taxable year.
(d) The total amount of each tax credit claimed under this chapter
may not exceed ten percent (10%) of the qualified investment for
which the tax credit is claimed.
SOURCE: IC 6-3.1-26-17; (13)IN0244.1.4. -->
SECTION 4. IC 6-3.1-26-17, AS AMENDED BY P.L.4-2005,
SECTION 106, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 17. A person that proposes a
(1) create new jobs or increase wage levels in Indiana; or
(2) substantially enhance the logistics industry and improve
the overall Indiana economy;
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 director shall prescribe the form of the application.
SOURCE: IC 6-3.1-26-18; (13)IN0244.1.5. -->
SECTION 5. IC 6-3.1-26-18, AS AMENDED BY P.L.1-2006,
SECTION 143, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: 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 all the following conditions exist:
(1) The applicant's project will:
(A) raise the total earnings of employees of the applicant in
(B) substantially enhance the logistics industry by creating
new jobs, preserving existing jobs that otherwise would be
lost, or increasing wages in Indiana.
(2) The applicant's project is economically sound and will benefit
the people of Indiana by increasing opportunities for employment
and strengthening the economy of Indiana.
(3) Receiving the tax credit is a major factor in the applicant's
decision to go forward with the project and not receiving the tax
credit will result in the applicant not raising the total earnings of
employees in Indiana.
(4) 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.
(5) The credit is not prohibited by section 19 of this chapter.
(6) The average wage that will be paid by the taxpayer to its
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.
SOURCE: IC 6-3.1-26-20; (13)IN0244.1.6. -->
SECTION 6. IC 6-3.1-26-20, AS AMENDED BY P.L.4-2005,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 20. (a)
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 the workforce in Indiana; or
(2) substantially enhancing the logistics industry and
improving the overall Indiana economy.
(b) The total amount of credits allowed under this chapter for
a qualified investment consisting of new infrastructure or an
infrastructure addition or improvement may not exceed in the
aggregate twenty million dollars ($20,000,000) in credits for all
taxpayers per state fiscal year. A person that desires to claim a tax
credit for such a qualified investment shall file with the
department, in the form that the department may prescribe, an
(1) stating the amount of the credit awards for such a
qualified investment that have been granted to the taxpayer
by the corporation;
(2) stating the amount sought to be claimed as a credit; and
(3) identifying whether the credit will be claimed during the
state fiscal year in which the application is filed or the
immediately succeeding state fiscal year.
(c) The department shall record the time of filing of each
application for a credit award for a qualified investment covered
by subsection (b) and shall, except as provided in subsection (d),
approve the credit to the taxpayer in the chronological order in
which the application is filed in the state fiscal year. The
department shall promptly notify an applicant whether, or the
extent to which, the tax credit is allowable in the state fiscal year
proposed by the taxpayer.
(d) If the total credit awards for qualified investments that are
covered by subsection (b), including carryover credit awards for
a previous state fiscal year, equal the maximum amount allowable
in the state fiscal year, an application for such a credit award that
is filed later for that same state fiscal year may not be granted by
the department. However, if an applicant for which a credit has
been awarded and applied for with the department fails to claim
the credit, an amount equal to the credit previously applied for but
not claimed may be allowed to the next eligible applicant or
applicants until the total amount has been allowed.
SOURCE: IC 6-3.1-26-26; (13)IN0244.1.7. -->
SECTION 7. IC 6-3.1-26-26, AS AMENDED BY P.L.137-2012,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 26. (a) This chapter applies to taxable years
beginning after December 31, 2003.
(b) Notwithstanding the other provisions of this chapter, the
corporation may not approve a credit for a qualified investment made
after December 31,
2016. 2020. 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, 2017,
2021, forward to a taxable year beginning after December 31, 2016,
2020, in the manner provided by section 15 of this chapter.
SOURCE: ; (13)IN0244.1.8. -->
SECTION 8. [EFFECTIVE JANUARY 1, 2014] (a) IC 6-3.1-26-8,
IC 6-3.1-26-14, IC 6-3.1-26-17, IC 6-3.1-26-18, IC 6-3.1-26-20, and
IC 6-3.1-26-26, all as amended by this act, apply to taxable years
beginning after December 31, 2013.
(b) This SECTION expires January 1, 2017.