MADAM PRESIDENT:
The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1835,
has had the same under consideration and begs leave to report the same back to the Senate
with the recommendation that said bill be AMENDED as follows:
by the department of financial institutions under IC 24-4.5-6-107
and declared necessary to meet an emergency.
(6) A rule required under IC 24-4.5-1-106 that is adopted by the
department of financial institutions and declared necessary to
meet an emergency under IC 24-4.5-6-107.
(7) A rule adopted by the Indiana utility regulatory commission to
address an emergency under IC 8-1-2-113.
(8) An emergency rule adopted by the state lottery commission
under IC 4-30-3-9.
(9) A rule adopted under IC 16-19-3-5 that the executive board of
the state department of health declares is necessary to meet an
emergency.
(10) An emergency rule adopted by the Indiana finance authority
under IC 8-21-12.
(11) An emergency rule adopted by the insurance commissioner
under IC 27-1-23-7.
(12) An emergency rule adopted by the Indiana horse racing
commission under IC 4-31-3-9.
(13) An emergency rule adopted by the air pollution control
board, the solid waste management board, or the water pollution
control board under IC 13-15-4-10(4) or to comply with a
deadline required by federal law, provided:
(A) the variance procedures are included in the rules; and
(B) permits or licenses granted during the period the
emergency rule is in effect are reviewed after the emergency
rule expires.
(14) An emergency rule adopted by the Indiana election
commission under IC 3-6-4.1-14.
(15) An emergency rule adopted by the department of natural
resources under IC 14-10-2-5.
(16) An emergency rule adopted by the Indiana gaming
commission under IC 4-32.2-3-3(b), IC 4-33-4-2, IC 4-33-4-3, or
IC 4-33-4-14, or IC 4-35-4-2.
(17) An emergency rule adopted by the alcohol and tobacco
commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or
IC 7.1-3-20-24.4.
(18) An emergency rule adopted by the department of financial
institutions under IC 28-15-11.
adopting another rule under this section, but only for one (1) extension
period. The extension period for a rule adopted under subsection
(a)(28) may not exceed the period for which the original rule was in
effect. A rule adopted under subsection (a)(13) may be extended for
two (2) extension periods. Subject to subsection (j), a rule adopted
under subsection (a)(24), (a)(25), or (a)(27) may be extended for an
unlimited number of extension periods. Except for a rule adopted under
subsection (a)(13), for a rule adopted under this section to be effective
after one (1) extension period, the rule must be adopted under:
(1) sections 24 through 36 of this chapter; or
(2) IC 13-14-9;
as applicable.
(h) A rule described in subsection (a)(6), (a)(8), (a)(12), or (a)(29)
expires on the earlier of the following dates:
(1) The expiration date stated by the adopting agency in the rule.
(2) The date that the rule is amended or repealed by a later rule
adopted under sections 24 through 36 of this chapter or this
section.
(i) This section may not be used to readopt a rule under IC 4-22-2.5.
(j) A rule described in subsection (a)(24) or (a)(25) expires not later
than January 1, 2006.
(k) A rule described in subsection (a)(28) expires on the expiration
date stated by the board of the Indiana economic development
corporation in the rule.
(l) A rule described in subsection (a)(30) expires on the expiration
date stated by the Indiana finance authority in the rule.".
a functioning motor.".
scheduling under IC 4-33-6-21 or IC 4-33-6.5 at the following rate:
(1) Four dollars ($4) for each person admitted to a riverboat that
docks in a county described in IC 4-33-1-1(3). This admission tax
is imposed upon the operating agent of the riverboat.
(2) Three dollars ($3) for each person admitted to a riverboat that
docks in any other county. This admission tax is imposed upon
the licensed owner operating the riverboat.
(c) The commission may by rule determine the point at which a
person is considered to be:
(1) admitted to a gambling excursion, in the case of a
riverboat subject to subsection (a); or
(2) admitted to a riverboat, in the case of a riverboat subject
to subsection (b);
for purposes of collecting the admissions tax under this chapter.".
(c).
(b) The commission shall begin rulemaking procedures under
IC 4-22-2-13 through IC 4-22-2-36 to adopt an emergency rule
adopted under subsection (a)(6) not later than thirty (30) days after
the adoption of the emergency rule under subsection (a)(6).
(c) Rules adopted under subsection (a)(7) must provide the
following:
(1) Except as provided by rule of the commission, a person
who participates in the voluntary exclusion program agrees
to refrain from entering a facility at which gambling games
are conducted or another facility under the jurisdiction of the
commission.
(2) That the name of a person participating in the program
will be included on a list of persons excluded from all facilities
under the jurisdiction of the commission.
(3) Except as provided by rule of the commission, a person
who participates in the voluntary exclusion program may not
petition the commission for readmittance to a facility under
the jurisdiction of the commission.
(4) That the list of patrons entering the voluntary exclusion
program and the personal information of the participants are
confidential and may only be disseminated by the commission
to the owner or operator of a facility under the jurisdiction of
the commission for purposes of enforcement and to other
entities, upon request by the participant and agreement by the
commission.
(5) That an owner of a facility under the jurisdiction of the
commission shall make all reasonable attempts as determined
by the commission to cease all direct marketing efforts to a
person participating in the program.
(6) That an owner of a facility under the jurisdiction of the
commission may not cash the check of a person participating
in the program or extend credit to the person in any manner.
However, the voluntary exclusion program does not preclude
an owner from seeking the payment of a debt accrued by a
person before entering the program.".
Page 21, between lines 38 and 39, begin a new paragraph and insert:
" Sec. 7. The commission shall adopt standards for the licensing
of the following:
(1) Persons regulated under this article.
(2) Slot machines used in gambling games.
Sec. 8. The commission shall require that the records, including
financial statements, of a licensee must be maintained in the
manner prescribed by the commission.
Sec. 9. (a) The commission may eject or exclude or authorize the
ejection or exclusion of a person from a facility at which gambling
games are conducted if:
(1) the person's name is on the list of persons voluntarily
excluding themselves from all facilities at which gambling
games are conducted in a program established under the rules
of the commission;
(2) the person violates this article; or
(3) the commission determines that the person's conduct or
reputation is such that the person's presence within a facility
at which gambling games are conducted may:
(A) call into question the honesty and integrity of the
gambling operations; or
(B) interfere with the orderly conduct of the gambling
operations.
(b) A person, other than a person participating in a voluntary
exclusion program, may petition the commission for a hearing on
the person's ejection or exclusion under this section.
Sec. 10. If a licensee or an employee of a licensee violates this
article or engages in a fraudulent act, the commission may do any
combination of the following:
(1) Suspend, revoke, or restrict the license of the licensee.
(2) Require the removal of a licensee or an employee of a
licensee.
(3) Impose a civil penalty of not more than the greater of:
(A) ten thousand dollars ($10,000); or
(B) an amount equal to the licensee's daily gross receipts
for the day of the violation;
against a licensee for each violation of this article.
(4) Impose a civil penalty of not more than twenty-five
thousand dollars ($25,000) against a person who has been
issued a supplier's license for each violation of this article.
department of local government finance and the property tax
replacement fund board shall take the actions necessary to apply
the credit. If a taxpayer pays more property taxes first due and
payable in 2007 than are required after application of the
additional homestead credit under this section, the overpayment
shall be refunded to the taxpayer or credited against the taxpayer's
spring installment for property taxes first due and payable in 2008,
as determined by the department of local government finance.".
Page 22, line 14, delete "five thousand" and insert " one hundred
dollars ($100) per slot machine operated by the licensee; and".
Page 22, delete line 15.
Page 22, between lines 17 and 18, begin a new line blocked left and
insert:
" Renewal fees paid under this section shall be deposited in the state
general fund.".
Page 22, line 19, after "years" insert " .".
Page 22, between lines 19 and 20, begin a new paragraph and insert:
" Sec. 4.5. A license issued under this article is null and void if the
licensee permanently ends horse racing at the racetrack at which
the licensee's slot machines are installed.".
Page 23, line 18, delete "one" and insert " four".
Page 23, line 18, delete "($100,000,000)." and insert
" ($400,000,000).".
Page 23, line 19, delete "The" and insert " Except as otherwise
provided in this chapter, the".
Page 26, delete lines 19 through 28, begin a new paragraph and
insert:
" Sec. 9. (a) A patron may make a slot machine wager at a
racetrack only by means of:
(1) a token or an electronic card purchased from a licensee at
the licensee's racetrack; or
(2) money or other negotiable currency.
(b) A token or an electronic card may be purchased by means
of an agreement under which a licensee extends credit to the
patron.
(c) All winnings and payoffs from a slot machine at a racetrack:
(1) shall be made in tokens, electronic cards, paper tickets, or
other evidence of winnings and payoffs approved by the
commission; and
(2) may not be made in money or other negotiable currency.".
Page 26, line 29, delete "Sec. 11." and insert " Sec. 10.".
Page 26, line 33, delete "Sec. 12. (a)" and insert " Sec. 11.".
Page 26, line 33, delete "initially".
Page 26, line 33, delete "two" and insert " one".
Page 26, line 34, delete "(2,500)" and insert " (1,500)".
Page 26, delete lines 36 through 38.
Page 26, line 39, delete "Sec. 13." and insert " Sec. 12.".
Page 26, delete lines 41 through 42, begin a new paragraph and
insert:
" (b) In each state fiscal year beginning after June 30, 2009, a
licensee shall before the fifteenth day of each month devote to
horse racing purses an amount equal to fifteen percent (15%) of
the adjusted gross receipts of the slot machine wagering from the
previous month at the licensee's racetrack. The commission may
not use any of this money for any administrative purpose or other
purpose of the commission, and the entire amount of the money
shall be distributed as provided in this section. A licensee shall
distribute the money devoted to horse racing purses under this
subsection as follows:
(1) Five-tenths percent (0.5%) shall be transferred to
horsemen's associations for equine promotion or welfare
according to the ratios specified in subsection (e).
(2) Two and five-tenths percent (2.5%) shall be transferred to
horsemen's associations for backside benevolence according
to the ratios specified in subsection (e).
(3) Ninety-seven percent (97%) shall be distributed to
promote horses and horse racing as provided in subsection
(d).
(c) A horsemen's association shall expend the amounts
distributed to the horsemen's association under subsection (b)(1)
through (b)(2) for a purpose promoting the equine industry or
equine welfare or for a benevolent purpose that the horsemen's
association determines is in the best interests of horse racing in
Indiana for the breed represented by the horsemen's association.
(d) A licensee shall distribute the amounts described in
subsection (b)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as
follows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the
horsemen's association representing thoroughbred
owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's
association representing thoroughbred owners and
breeders.
(B) Forty percent (40%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as
follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the
horsemen's association representing standardbred
owners and trainers.
(B) Fifty percent (50%) to the breed development fund
established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
(e) Money distributed under subsection (b)(1) and (b)(2) shall be
allocated as follows:
(1) Forty-six percent (46%) to the horsemen's association
representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's association
representing standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's association
representing quarter horse owners and trainers.
(f) A horsemen's association receiving a distribution of money
under this section shall annually file a report with the commission
concerning the use of the money by the horsemen's association. The
report must include information as required by the commission.".
Page 27, delete line 1.
Page 27, line 2, delete "(c)" and insert " (g)".
Page 27, line 4, delete "(d)" and insert " (h)".
Page 27, line 16, delete "(e)" and insert " (i)".
Page 27, line 17, delete "Indiana health insurance fund established
by IC 4-35-8-8." and insert " state general fund.".
Page 27, between lines 17 and 18, begin a new paragraph and insert:
" Sec. 13. The commission may not prohibit a licensee from
allowing pari-mutuel wagering at the facility at which gambling
games are conducted under this article.".
Page 27, delete lines 19 through 22, begin a new paragraph and
insert:
" Sec. 1. (a) A graduated slot machine wagering tax is imposed
as follows on the adjusted gross receipts received from wagering on
gambling games authorized by this article:
(1) Twenty-five percent (25%) of the first one hundred million
dollars ($100,000,000) of adjusted gross receipts received
during the period beginning July 1 of each year and ending
June 30 of the following year.
(2) Thirty percent (30%) of the adjusted gross receipts in
excess of one hundred million dollars ($100,000,000) but not
exceeding two hundred million dollars ($200,000,000) received
during the period beginning July 1 of each year and ending
June 30 of the following year.
(3) Thirty-five percent (35%) of the adjusted gross receipts in
excess of two hundred million dollars ($200,000,000) received
during the period beginning July 1 of each year and ending
June 30 of the following year.".
Page 28, line 25, delete "as follows:" and insert " to the state
general fund.".
Page 28, delete lines 26 through 42, begin a new paragraph and
insert:
" Chapter 8.5. County Slot Machine Wagering Fee
Sec. 1. (a) Before the fifteenth day of each month, a licensee that
offers slot machine wagering under this article shall pay to the
commission a county slot machine wagering fee equal to two
percent (2%) of the adjusted gross receipts received from slot
machine wagering during the previous month at the licensee's
racetrack. However, a licensee is not required to pay more than
five million dollars ($5,000,000) of county slot machine wagering
fees under this section in any state fiscal year.
(b) The commission shall deposit the county slot machine
wagering fee received by the commission into a separate account
within the state general fund.
Sec. 2. Before the fifteenth day of each month, the treasurer of
state shall distribute any county slot machine wagering fees
received from a licensee during the previous month to the county
auditor of the county in which the licensee's racetrack is located.
Sec. 3. The auditor of each county receiving a distribution of
county slot machine wagering fees under section 2 of this chapter
shall distribute the county slot machine wagering fees as follows:
(1) To each city located in the county according to the ratio
the city's population bears to the total population of the
county.
(2) To each town located in the county according to the ratio
the town's population bears to the total population of the
county.
(3) After the distributions required by subdivisions (1) and (2)
are made, the remainder shall be retained by the county.
Sec. 4. (a) As used in this section, "political subdivision" means
a county, city, or town.
(b) Money paid to a political subdivision under this chapter:
(1) must be paid to the fiscal officer of the political subdivision
and must be deposited in the political subdivision's general
fund;
(2) may not be used to reduce the political subdivision's
maximum levy under IC 6-1.1 but may be used at the
discretion of the political subdivision to reduce the property
tax levy of the political subdivision for a particular year;
(3) may be used for any purpose specified in this chapter or
for any other legal or corporate purpose of the political
subdivision, including the pledge of money to bonds, leases, or
other obligations under IC 5-1-14-4; and
wagering.
(b) The commission shall deposit the supplemental fees into a
separate account within the state general fund.
Sec. 3. Before the fifteenth day of each month, the treasurer of
state shall distribute supplemental fees received under this chapter
during the previous month in equal shares to the licensed owners
or operating agent of each riverboat that first opens for business
under IC 4-33 after June 30, 2006.".
Delete page 29.
Page 30, delete lines 1 through 8.
Page 34, line 17, delete "a permit" and insert " the commission".
Page 34, line 18, delete "holder".
Page 34, line 18, delete "of expending at least:" and insert " for
permit holders concerning contracts for goods and services with
minority business enterprises and women's business enterprises.
The goals under this subsection must as nearly as possible be equal
to goals set by the commission under IC 4-33-14-5 for contracts
awarded for goods or services.".
Page 34, delete lines 19 through 24.
Page 35, between lines 21 and 22, begin a new paragraph and insert:
research programs.
Sec. 5. As used in this chapter, "world class scientist" means a
principal investigator or researcher who:
(1) holds an academic appointment;
(2) has a significant research portfolio and a record of
attracting external research support; and
(3) meets any other criteria established by the board.
Sec. 6. (a) The Indiana life sciences fund is established within the
state treasury to provide grants to postsecondary research
institutions to support the recruitment and retention of world class
scientists in Indiana for the following purposes:
(1) To strengthen Indiana's economy by focusing investment
in life sciences economic clusters that foster high skill, high
wage jobs.
(2) To target state investment in university based research
and development through various means, including:
(A) matching funds for federal or private research grants
or gifts;
(B) support for endowed research faculty chairs at
postsecondary research institutions; and
(C) investment in research facilities, laboratories, and
specialized equipment that is conducive to the conducting
of the highest quality of scholarship and research in life
sciences.
(3) To stimulate the transfer of research and technology into
marketable products.
(4) To enter into a collaborative arrangement with the private
sector or another public or private educational institution.
(5) To encourage an environment of innovation and
cooperation among Indiana public or private educational
institutions, state agencies, and private businesses to promote
life sciences research and development activity.
(b) The fund consists of the following:
(1) Distributions to the fund under IC 4-35-5-3.
(2) Appropriations from the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Interest or other earnings on the fund.
(c) The corporation shall administer the fund. Subject to
appropriation by the general assembly, money in the fund may be
used to provide grants to postsecondary research institutions to
support the recruitment, retention, and ongoing financial support
of world class scientists.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.
(e) The fund is considered a trust fund for purposes of
IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise
removed from the fund by the state board of finance, the budget
agency, or any other state agency.
(f) Money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.
(g) All expenditures from the fund are subject to appropriation
by the general assembly.
Sec. 7. (a) A postsecondary research institution may apply for
one (1) or more grants from the fund.
(b) An application requesting a grant from the fund must be
targeted to one (1) or more of the purposes listed in section 6 of this
chapter.
(c) A successful applicant for a grant from the fund must meet
the requirements of this section, be awarded a grant by the board,
and be approved by the budget agency under section 8 of this
chapter. An application for a grant from the fund must be made on
an application form prescribed by the board. An applicant shall
provide all information that the board finds necessary to make the
determinations required by this chapter.
(d) All applications for a grant from the fund must include the
following:
(1) A fully elaborated technical research plan that is
appropriate for review by outside experts as provided in this
chapter.
(2) A detailed financial analysis that includes the commitment
of resources by any other entities that will be involved in the
research project.
(3) A statement of the scientific and commercial potential of
the research project.
(4) A statement of the manner in which support from the fund
will lead to significantly increased funding from federal or
private sources or from private sector research partners.
(5) The profile and obligations of the world class scientist that
the applicant is seeking to recruit or retain.
(6) Any other information that the board considers
appropriate.
(e) An applicant for a grant from the fund may request that
certain information that is submitted by the applicant be kept
confidential. The board shall make a determination of
confidentiality as soon as is practicable. If the board determines
that the information should not be kept confidential, the applicant
may withdraw the application, and the board must return the
information before making it part of any public record.
Sec. 8. (a) The board has the following powers:
(1) To accept and analyze applications under this chapter.
(2) To award grants to applicants, subject to review by the
budget committee and approval by the budget agency.
(3) Subject to appropriation by the general assembly, to
contract with experts for advice and counsel.
(4) Subject to appropriation by the general assembly, to
employ staff to assist in carrying out this chapter, including
providing assistance to applicants who wish to apply for a
grant from the fund, analyzing proposals, working with
experts engaged by the board, and preparing reports and
recommendations for the board.
(b) The board shall consider the following factors in making
determinations concerning the award of a grant under this
chapter:
(1) The scientific merit of the proposed research.
(2) The predicted future success of governmental or private
funding for the proposed research.
(3) The ability of the world class scientist identified in the
proposal to generate matching funds and funds for additional
research.
(4) The extent to which the proposal evidences collaboration
among two (2) or more postsecondary research institutions,
as well as cost sharing and partnership support from the
private sector.
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) for taxable years beginning after December 31, 2004, one
thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code for taxable years beginning after December 31,
1996 (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), (5), and (6) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(14) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the
taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) for a taxable year:
(i) including any part of 2004, the amount determined under
subsection (f); and
(ii) beginning after December 31, 2004, two thousand five
hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(18) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States. For taxable years
beginning after December 31, 2007, the riverboat wagering
tax under IC 4-33-13 is not considered a tax based on or
measured by income.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20)
for the taxable year that reduced the corporation's taxable
income (as defined in Section 63 of the Internal Revenue Code)
for federal income tax purposes.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).".
and when so amended that said bill do pass.
Committee Vote: Yeas 9, Nays 3.
Kenley