Introduced Version
HOUSE BILL No. 1748
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-3.
Synopsis: College contribution tax credit. Increases the maximum
adjusted gross income tax credit for charitable donations to institutions
of higher education located in Indiana for taxable years beginning after
December 31, 2006. Indexes the credit in future years to the change in
the Consumer Price Index.
Effective: January 1, 2007 (retroactive).
Turner, Welch
January 26, 2007, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 115th General Assembly (2007)
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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2006 Regular Session of the General Assembly.
HOUSE BILL No. 1748
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 6-3-3-5; (07)IN1748.1.1. -->
SECTION 1. IC 6-3-3-5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]: Sec. 5. (a) 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 the taxpayer during
such the taxable 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.
(b) 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
(1) two hundred fifty dollars ($100) ($250), as increased under
section 13 of this chapter for taxable years beginning after
December 31, 2007, in the case of a single return; or two
(2) five hundred dollars ($200) ($500), as increased under
section 13 of this chapter for taxable years beginning after
December 31, 2007, in the case of a joint return.
(c) 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 the corporation's total adjusted
gross income tax under IC 6-3-1 through IC 6-3-7 for such the
taxable year (as determined without regard to any credits against
that tax); or
(2) one two thousand three hundred fifty dollars ($1,000);
($2,350), as increased under section 13 of this chapter for
taxable years beginning after December 31, 2007;
whichever is less.
(d) 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.
(e) 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:
(1) IC 6-3-1 through IC 6-3-7, as determined without regard to
this section; and
(2) IC 6-3.1, which under IC 6-3.1-1-2 are to be applied before
the credit allowed by this section.
SOURCE: IC 6-3-3-13; (07)IN1748.1.2. -->
SECTION 2. IC 6-3-3-13 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007 (RETROACTIVE)]:
Sec. 13. (a) This section
applies only to the maximum tax credit limits specified in section
5 of this chapter.
(b) As used in this section, "Consumer Price Index" means the
most recent Consumer Price Index for all urban consumers
published by the United States Department of Labor. If the United
States Department of Labor revises the Consumer Price Index
after July 1 of a year, the term refers to the Consumer Price Index
most consistent with the Consumer Price Index for the state fiscal
year ending on June 30 of that year.
(c) As used in this section, "CPI" refers to the average of the
Consumer Price Index at the end of the twelve (12) month period
ending on June 30 of a year.
(d) Not later than December 15 of each year, the department
shall prescribe maximum tax credit limits that apply instead of the
maximum tax credit limits specified under section 5 of this chapter
for taxable years that begin in the succeeding calendar year.
(e) A maximum tax credit limit that applies with respect to
taxable years beginning in the succeeding calendar year is equal to
the greater of the following:
(1) The maximum tax credit limit applicable to taxable years
beginning in the current calendar year.
(2) A maximum tax credit limit determined under STEP
THREE of the following formula:
STEP ONE: Determine the maximum tax credit limit for
taxable years beginning in the current calendar year.
STEP TWO: Determine the percentage, rounded to the
nearest one-hundredth percent (0.01%), by which the CPI
for the twelve (12) month period ending on June 30 of the
current calendar year exceeds the CPI for the twelve (12)
month period ending on June 30 in the preceding calendar
year.
STEP THREE: Increase each STEP ONE amount by the
STEP TWO percentage. If the amount determined under
this STEP is not a multiple of fifty dollars ($50), round the
amount to the next lowest multiple of fifty dollars ($50).
(f) The department shall publish the maximum tax credit limits
determined under this section in the Indiana Register and in the
appropriate tax forms and informational material provided to
taxpayers.
SOURCE: ; (07)IN1748.1.3. -->
SECTION 3. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) IC 6-3-3-5, as amended by this act, applies only to taxable years
beginning after December 31, 2006.
(b) The department of state revenue shall make the initial
computation under IC 6-3-3-13, as added by this act, not later than
December 31, 2007. The maximum tax credit limits determined
under IC 6-3-3-13, as added by this act, apply only to taxable years
beginning after December 31, 2007.
SOURCE: ; (07)IN1748.1.4. -->
SECTION 4.
An emergency is declared for this act.