Replace the effective dates in SECTIONS 6 through 11 with
"[EFFECTIVE APRIL 2, 2003]".
Page 4, line 35, delete "IC 6-3-3-5" and insert "IC 6-3-3-5, AS
AMENDED BY P.L.1-2003, SECTION 33,".
Page 5, line 33, after "IC 6-2.1" insert "(repealed)".
Page 5, line 35, delete "IC 6-2.1," and insert "IC 6-2.1 (repealed),".
Page 5, line 37, delete "IC 6-3-3-5.1" and insert "IC 6-3-3-5.1, AS
AMENDED BY P.L.1-2003, SECTION 34,".
Page 6, line 21, after "IC 6-2.1" insert "(repealed)".
Page 6, line 25, delete"P.L.14-2000," and insert "P.L.1-2003,
SECTION 35,".
Page 6, line 26, delete "SECTION 17,".
Page 8, line 9, after "tax)" insert "(repealed)".
Page 9, line 39, delete "P.L.192-2002(ss)," and insert "P.L.1-2003,
SECTION 36,".
Page 9, line 40, delete "SECTION 80,".
Page 10, line 22, delete "IC 6-3" and insert "this article".
Page 11, line 9, delete "IC 6-3-3-2," and insert "IC 6-3-3-2
(repealed),"
Page 11, line 18, delete "IC 6-3-3-2," and insert "IC 6-3-3-2
(repealed),"
Page 11, line 27, delete "IC 6-3.1-18-8" and insert "IC 6-3.1-18-8,
AS AMENDED BY P.L.1-2003, SECTION 38,".
Page 11, line 31, delete "IC 6-2.1," and insert "IC 6-2.1 (repealed),".
Page 11, line 35, delete "IC 6-5.5-2-7" and insert "IC 6-5.5-2-7, AS
AMENDED BY P.L.1-2003, SECTION 47,".
Page 11, line 41, delete "IC 6-2.1." and insert "IC 6-2.1 (repealed).".
Page 17, between lines 39 and 40, begin a new paragraph and insert:
"SECTION 17. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-3-3-5, this SECTION
applies instead of IC 6-3-3-5.
(b) At the election of the taxpayer, there shall be allowed, as a
credit against the adjusted gross income tax imposed by IC 6-3-1
through IC 6-3-7 for the taxable year, an amount (subject to the
applicable limitations provided by this SECTION) equal to fifty
percent (50%) of the aggregate amount of charitable contributions
made by such taxpayer during such year to institutions of higher
education located within Indiana, to any corporation or foundation
organized and operated solely for the benefit of any such
institution of higher education, or to the associated colleges of
Indiana.
(c) In the case of a taxpayer other than a corporation, the
amount allowable as a credit under this SECTION for any taxable
year shall not exceed one hundred dollars ($100) in the case of a
single return or two hundred dollars ($200) in the case of a joint
return.
(d) In the case of a corporation, the amount allowable as a credit
under this SECTION for any taxable year shall not exceed:
(1) ten percent (10%) of such corporation's total adjusted
gross income tax under IC 6-3-1 through IC 6-3-7 for such
year (as determined without regard to any credits against that
tax); or
(2) one thousand dollars ($1,000);
whichever is less.
(e) For purposes of this SECTION, the term "institution of
higher education" means any educational institution located within
Indiana:
(1) which normally maintains a regular faculty and
curriculum and normally has a regularly organized body of
students in attendance at the place where its educational
activities are carried on;
(2) which regularly offers education at a level above the
twelfth grade;
(3) which regularly awards either associate, bachelors,
masters, or doctoral degrees, or any combination thereof; and
(4) which is duly accredited by the North Central Association
of Colleges and Schools, the Indiana state board of education,
or the American Association of Theological Schools.
(f) The credit allowed by this SECTION shall not exceed the
amount of the adjusted gross income tax imposed by IC 6-3-1
through IC 6-3-7 for the taxable year, reduced by the sum of all
credits (as determined without regard to this SECTION ) allowed
by IC 6-3-1 through IC 6-3-7.
(g) This SECTION expires April 2, 2003.
SECTION 18. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-3-3-5.1, this
SECTION applies instead of IC 6-3-3-5.1.
(b) At the election of the taxpayer, a credit against the adjusted
gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the
taxable year is permitted in an amount (subject to the applicable
limitations provided by this SECTION) equal to fifty percent
(50%) of the aggregate amount of contributions made by the
taxpayer during the taxable year to the twenty-first century
scholars program support fund established under IC 20-12-70.1-5.
(c) In the case of a taxpayer other than a corporation, the
amount allowable as a credit under this SECTION for any taxable
year may not exceed:
(1) one hundred dollars ($100) in the case of a single return;
or
(2) two hundred dollars ($200) in the case of a joint return.
(d) In the case of a taxpayer that is a corporation, the amount
allowable as a credit under this SECTION for any taxable year
may not exceed the lesser of the following amounts:
(1) Ten percent (10%) of the corporation's total adjusted
gross income tax under IC 6-3-1 through IC 6-3-7 for the
taxable year (as determined without regard to any credits
against that tax).
(2) One thousand dollars ($1,000).
(e) The credit permitted under this SECTION may not exceed
the amount of the adjusted gross income tax imposed by IC 6-3-1
through IC 6-3-7 for the taxable year, reduced by the sum of all
credits (as determined without regard to this SECTION) allowed
by IC 6-3-1 through IC 6-3-7.
(f) This SECTION expires April 2, 2003.
SECTION 19. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-3-3-10, this SECTION
applies instead of IC 6-3-3-10.
(b) The following definitions apply throughout this SECTION:
(1) "Base period wages" means the following:
(A) In the case of a taxpayer other than a pass through
entity, wages paid or payable by a taxpayer to its
employees during the year that ends on the last day of the
month that immediately precedes the month in which an
enterprise zone is established, to the extent that the wages
would have been qualified wages if the enterprise zone had
been in effect for that year. If the taxpayer did not engage
in an active trade or business during that year in the area
that is later designated as an enterprise zone, then the base
period wages equal zero (0). If the taxpayer engaged in an
active trade or business during only part of that year in an
area that is later designated as an enterprise zone, then the
department shall determine the amount of base period
wages.
(B) In the case of a taxpayer that is a pass through entity,
base period wages equal zero (0).
(2) "Enterprise zone" means an enterprise zone created under
IC 4-4-6.1.
(3) "Enterprise zone adjusted gross income" means adjusted
gross income of a taxpayer that is derived from sources within
an enterprise zone. Sources of adjusted gross income shall be
determined with respect to an enterprise zone, to the extent
possible, in the same manner that sources of adjusted gross
income are determined with respect to the state of Indiana
under IC 6-3-2-2.
(4) "Enterprise zone gross income" means gross income of a
taxpayer that is derived from sources within an enterprise
zone.
(5) "Enterprise zone insurance premiums" means insurance
premiums derived from sources within an enterprise zone.
(6) "Monthly base period wages" means base period wages
divided by twelve (12).
(7) "Pass through entity" means a:
(A) corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(B) partnership;
(C) trust;
(D) limited liability company; or
(E) limited liability partnership.
(8) "Qualified employee" means an individual who is
employed by a taxpayer and who:
(A) has his principal place of residence in the enterprise
zone in which he is employed;
(B) performs services for the taxpayer, ninety percent
(90%) of which are directly related to the conduct of the
taxpayer's trade or business that is located in an enterprise
zone;
(C) performs at least fifty percent (50%) of his services for
the taxpayer during the taxable year in the enterprise
zone; and
(D) in the case of an individual who is employed by a
taxpayer that is a pass through entity, was first employed
by the taxpayer after December 31, 1998.
(9) "Qualified increased employment expenditures" means
the following:
(A) For a taxpayer's taxable year other than his taxable
year in which the enterprise zone is established, the
amount by which qualified wages paid or payable by the
taxpayer during the taxable year to qualified employees
exceeds the taxpayer's base period wages.
(B) For the taxpayer's taxable year in which the enterprise
zone is established, the amount by which qualified wages
paid or payable by the taxpayer during all of the full
calendar months in the taxpayer's taxable year that
succeed the date on which the enterprise zone was
established exceed the taxpayer's monthly base period
wages multiplied by that same number of full calendar
months.
(10) "Qualified state tax liability" means a taxpayer's total
income tax liability incurred under:
(A) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax)
with respect to enterprise zone adjusted gross income;
(B) IC 27-1-18-2 (insurance premiums tax) with respect to
enterprise zone insurance premiums; and
(C) IC 6-5.5 (the financial institutions 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 SECTION.
(11) "Qualified wages" means the wages paid or payable to
qualified employees during a taxable year.
(12 "Taxpayer" includes a pass through entity.
(c) A taxpayer is entitled to a credit against the taxpayer's
qualified state tax liability for a taxable year in the amount of the
lesser of:
(1) the product of ten percent (10%) multiplied by the
qualified increased employment expenditures of the taxpayer
for the taxable year; or
(2) one thousand five hundred dollars ($1,500) multiplied by
the number of qualified employees employed by the taxpayer
during the taxable year.
(d) The amount of the credit provided by this SECTION that a
taxpayer uses during a particular taxable year may not exceed the
taxpayer's qualified state tax liability for the taxable year. If the
credit provided by this SECTION exceeds the amount of that tax
liability for the taxable year it is first claimed, then the excess may
be carried back to preceding taxable years or carried over to
succeeding taxable years and used as a credit against the
taxpayer's qualified state tax liability for those taxable years. Each
time that the credit is carried back to a preceding taxable year or
carried over to a succeeding taxable year, the amount of the
carryover is reduced by the amount used as a credit for that
taxable year. Except as provided in subsection (e), the credit
provided by this SECTION may be carried forward and applied in
the ten (10) taxable years that succeed the taxable year in which
the credit accrues. The credit provided by this SECTION may be
carried back and applied in the three (3) taxable years that precede
the taxable year in which the credit accrues.
(e) A credit earned by a taxpayer in a particular taxable year
shall be applied against the taxpayer's qualified state tax liability
for that taxable year before any credit carryover or carryback is
applied against that liability under subsection (d).
(f) Notwithstanding subsection (d), if a credit under this
SECTION results from wages paid in a particular enterprise zone,
and if that enterprise zone terminates in a taxable year that
succeeds the last taxable year in which a taxpayer is entitled to use
the credit carryover that results from those wages under
subsection (d), then the taxpayer may use the credit carryover for
any taxable year up to and including the taxable year in which the
enterprise zone terminates.
(g) A taxpayer is not entitled to a refund of any unused credit.
(h) A taxpayer that:
(1) does not own, rent, or lease real property outside of an
enterprise zone that is an integral part of its trade or business;
and
(2) is not owned or controlled directly or indirectly by a
taxpayer that owns, rents, or leases real property outside of
an enterprise zone;
is exempt from the allocation and apportionment provisions of this
SECTION.
(i) If a pass through entity is entitled to a credit under
subsection (c) but does not have state tax liability against which the
tax credit may be applied, an individual who is a shareholder,
partner, beneficiary, or member of the pass through entity is
entitled to a tax credit equal to:
(1) 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, beneficiary, or
member is entitled.
The credit provided under this subsection is in addition to a tax
credit to which a shareholder, partner, beneficiary, or member of
a pass through entity is entitled. However, a pass through entity
and an individual who is a shareholder, partner, beneficiary, or
member of a pass through entity may not claim more than one (1)
credit for the qualified expenditure.
(j) This SECTION expires April 2, 2003.
SECTION 20. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC6-3-4-4.1, this SECTION
applies instead of IC 6-3-4-4.1.
(b) This SECTION applies to taxable years beginning after
December 31, 1993.
(c) Any individual required by the Internal Revenue Code to file
estimated tax returns and to make payments on account of such
estimated tax shall file estimated tax returns and make payments
of the tax imposed by this article to the department at the time or
times and in the installments as provided by Section 6654 of the
Internal Revenue Code. However, in applying Section 6654 of the
Internal Revenue Code for the purposes of this article, "estimated
tax" means the amount which the individual estimates as the
amount of the adjusted gross income tax imposed by this article for
the taxable year, minus the amount which the individual estimates
as the sum of any credits against the tax provided by IC 6-3-3.
(d) Every individual who has adjusted gross income subject to
the tax imposed by this article and from which tax is not withheld
under the requirements of IC 6-3-4-8 of this chapter shall make a
declaration of estimated tax for the taxable year. However, no such
declaration shall be required if the estimated tax can reasonably be
expected to be less than four hundred dollars ($400). In the case of
an underpayment of the estimated tax as provided in Section 6654
of the Internal Revenue Code, there shall be added to the tax a
penalty in an amount prescribed by IC 6-8.1-10-2.1(b).
(e) Every corporation subject to the adjusted gross income tax
liability imposed by IC 6-3 shall be required to report and pay an
estimated tax equal to twenty-five percent (25%) of such
corporation's estimated adjusted gross income tax liability for the
taxable year. A taxpayer who uses a taxable year that ends on
December 31 shall file the taxpayer's estimated adjusted gross
income tax returns and pay the tax to the department on or before
April 20, June 20, September 20, and December 20 of the taxable
year. If a taxpayer uses a taxable year that does not end on
December 31, the due dates for filing estimated adjusted gross
income tax returns and paying the tax are on or before the
twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the
manner and forms for such reporting and payment.
(f) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be
assessed by the department on corporations failing to make
payments as required in subsection (d) or (g). However, no penalty
shall be assessed as to any estimated payments of adjusted gross
income tax plus utility receipts tax which equal or exceed:
(1) twenty percent (20%) of the final tax liability for such
taxable year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an
estimated return shall only be assessed on the difference between
the actual amount paid by the corporation on such estimated
return and twenty-five percent (25%) of the corporation's final
adjusted gross income tax liability for such taxable year.
(g) The provisions of subsection (d) requiring the reporting and
estimated payment of adjusted gross income tax shall be applicable
only to corporations having an adjusted gross income tax liability
which, after application of the credit allowed by IC 6-3-3-2, shall
exceed one thousand dollars ($1,000) for its taxable year.
(h) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for
the current year; or
(2) average estimated quarterly adjusted gross income tax
liability for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten thousand dollars ($10,000), after
the credit allowed by IC 6-3-3-2, the corporation shall pay the
estimated adjusted gross income taxes due by electronic funds
transfer (as defined in IC 4-8.1-2-7) or by delivering in person or
overnight by courier a payment by cashier's check, certified check,
or money order to the department. The transfer or payment shall
be made on or before the date the tax is due.
(i) If a corporation's adjusted gross income tax payment is made
by electronic funds transfer, the corporation is not required to file
an estimated adjusted gross income tax return.
(j) This SECTION expires April 2, 2003.
SECTION 21. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-3.1-18-8, this
SECTION applies instead of IC 6-3.1-18-8.
(b) The credit provided under IC 6-3.1-18-7 is in addition to a
tax credit to which a shareholder, partner, or member of a pass
through entity is otherwise entitled under IC 6-3, this article, or
IC 6-5.5. However, a pass through entity and a shareholder,
partner, or member of the pass through entity may not claim more
than one (1) credit for the same qualified expenditure.
(c) This SECTION expires April 2, 2003.
SECTION 22. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) Notwithstanding IC 6-5.5-2-7, this
SECTION applies instead of IC 6-5.5-2-7.
(b) Notwithstanding any other provision of IC 6-5.5, there is no
tax imposed on the adjusted gross income or apportioned income
of the following:
(1) Insurance companies subject to the tax under IC 27-1-18-2
or IC 6-3.
(2) International banking facilities (as defined in Regulation
D of the Board of Governors of the Federal Reserve System).
(3) Any corporation that is exempt from income tax under
Section 1363 of the Internal Revenue Code.
(4) Any corporation exempt from federal income taxation
under the Internal Revenue Code, except for the corporation's
unrelated business income. However, this exemption does not
apply to a corporation exempt from federal income taxation
under Section 501(c)(14) of the Internal Revenue Code.
(c) This SECTION expires April 2, 2003.".
(Reference is to ESB 422 as reprinted April 1, 2003.)