SB 525-2_ Filed 02/21/2007, 10:25 ChairPerson
Adopted 2/22/2007
COMMITTEE REPORT
MADAM PRESIDENT:
The Senate Committee on Tax and Fiscal Policy, to which was referred Senate Bill No. 525,
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:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SOURCE: Page 1, line 12; (07)CR052501.1. -->
Page 1, between lines 12 and 13, begin a new paragraph and insert:
SOURCE: IC 6-3.1-28-9; (07)CR052501.2. -->
"SECTION 2. IC 6-3.1-28-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) If the amount of
the credit determined under this chapter for a taxpayer in a taxable year
exceeds the taxpayer's state tax liability for that taxable year, the
taxpayer may carry over the excess to the following taxable years. The
amount of the credit carryover from a taxable year shall be reduced to
the extent that the carryover is used by the taxpayer to obtain a credit
under this chapter for any subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of any unused
credit. A taxpayer may not sell, assign, convey, or otherwise
transfer the tax credit provided by this chapter.".
SOURCE: Page 2, line 16; (07)CR052501.2. -->
Page 2, line 16, after "($20,000,000)" insert " for all taxpayers for
all taxable years,".
Page 2, line 16, after "of" insert " tax credits for".
Page 2, delete lines 23 through 42, begin a new paragraph and
insert:
SOURCE: IC 6-3.1-29-15; (07)CR052501.4. -->
"SECTION 4. IC 6-3.1-29-15, AS AMENDED BY P.L.122-2006,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 15. (a) If the corporation decides to award a tax
credit under this chapter to a taxpayer, and subject to section 16 of
this chapter, the amount of the credit to which a taxpayer is entitled for
a qualified investment in an integrated coal gasification powerplant is
equal to the sum of the following:
(1) Ten percent (10%) of the taxpayer's qualified investment for
the first five hundred million dollars ($500,000,000) invested.
(2) Five percent (5%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000) only if the facility is dedicated primarily to
serving Indiana retail electric utility consumers.
(b) Subject to section 16 of this chapter, the amount of the credit to
which a taxpayer is entitled for a qualified investment in a fluidized
bed combustion technology is equal to the sum of the following:
(1) Seven percent (7%) of the taxpayer's qualified investment for
the first five hundred million dollars ($500,000,000) invested.
(2) Three percent (3%) of the amount of the taxpayer's qualified
investment that exceeds five hundred million dollars
($500,000,000).
SOURCE: IC 6-3.1-29-19; (07)CR052501.5. -->
SECTION 5. IC 6-3.1-29-19, AS AMENDED BY P.L.122-2006,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 19. (a)
If the corporation decides to award a tax
credit under this chapter to an applicant, the corporation shall enter
into an agreement with an applicant that is awarded a credit under this
chapter. The agreement must include all the following:
(1) A detailed description of the project that is the subject of the
agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The maximum tax credit amount that will be allowed for each
taxable year.
(4) A requirement that the taxpayer shall maintain operations at
the project location for at least ten (10) years during the term that
the tax credit is available.
(5) If the facility is an integrated coal gasification powerplant, a
requirement that the taxpayer shall pay an average wage to its
employees at the integrated coal gasification powerplant, other
than highly compensated employees, in each taxable year that a
tax credit is available, that equals at least one hundred twenty-five
percent (125%) of the average county wage in the county in which
the integrated coal gasification powerplant is located.
(6) For a project involving a qualified investment in a coal
gasification powerplant, a requirement that the taxpayer will
maintain at the location where the qualified investment is made,
during the term of the tax credit, a total payroll that is at least
equal to the payroll that existed on the date that the taxpayer
placed the integrated coal gasification powerplant into service.
(7) A requirement that:
(A) one hundred percent (100%) of the coal used:
(i) at the integrated coal gasification powerplant, for a
project involving a qualified investment in an integrated
coal gasification powerplant; or
(ii) as fuel in a fluidized bed combustion unit, in a project
involving a qualified investment in a fluidized bed
combustion technology, if the unit is dedicated primarily to
serving Indiana retail electric utility consumers;
must be Indiana coal; or
(B) seventy-five percent (75%) of the coal used as fuel in a
fluidized bed combustion unit must be Indiana coal, in a
project involving a qualified investment in a fluidized bed
combustion technology, if the unit is not dedicated primarily
to serving Indiana retail electric utility consumers.
(8) A requirement that the taxpayer obtain from the commission
a determination under IC 8-1-8.5-2 that public convenience and
necessity require, or will require:
(A) the construction of the taxpayer's integrated coal
gasification powerplant, in the case of a project involving a
qualified investment in an integrated coal gasification
powerplant; or
(B) the installation of the taxpayer's fluidized bed combustion
unit, in the case of a project involving a qualified investment
in a fluidized bed combustion technology.
(b) A taxpayer must comply with the terms of the agreement
described in subsection (a) to receive an annual installment of the tax
credit awarded under this chapter. The corporation shall annually
determine whether the taxpayer is in compliance with the agreement.
If the corporation determines that the taxpayer is in compliance, the
corporation shall issue a certificate of compliance to the taxpayer.".
Delete pages 3 through 8.
SOURCE: Page 9, line 1; (07)CR052501.9. -->
Page 9, delete lines 1 through 2.
Page 9, line 10, after "wood wastes" insert "
,".
Page 9, line 10, delete "and residues," and insert "
including wood
residues, forest thinnings, mill residue wood, clean construction
and demolition waste (but excluding treated or painted lumber),".
Page 9, line 40, delete "or".
Page 9, line 41, delete "." and insert "
;".
Page 9, between lines 41 and 42, begin a new line block indented
and insert:
"
(5) a corporation organized under IC 8-1-13; or
(6) a corporation organized under IC 23-17-1 that:
(A) is an electric cooperative; and
(B) has at least one (1) member that is a corporation
organized under IC 8-1-13.".
Page 10, line 5, delete "and".
Page 10, line 6, after ";" insert "
and".
Page 10, between lines 6 and 7, begin a new line block indented and
insert:
"
(4) IC 6-2.3 (the utility receipts tax);".
Page 10, line 16, delete "office;" and insert "
corporation;".
Page 10, between lines 32 and 33, begin a new line block indented
and insert:
"
(4) Against the taxpayer's liability incurred under IC 6-2.3
(the utility receipts tax).".
Page 10, line 33, delete "The" and insert "
(a) If the corporation
decides to award a tax credit under this chapter to a taxpayer, the".
Page 10, line 33, after "which" delete "a" and insert "
the".
Page 10, line 34, delete "lesser of the following:" and insert
"
product of:
(1) the amount of the taxpayer's qualified investment;
multiplied by
(2) ten percent (10%).
(b) The total amount of tax credits awarded under this chapter
may not exceed fifty million dollars ($50,000,000) for all taxpayers
and all taxable years.".
Page 10, delete lines 35 through 39.
Page 11, between lines 6 and 7, begin a new paragraph and insert:
" (c) If the credit allowed by this chapter is available to a
member of an affiliated group of corporations filing a consolidated
return under IC 6-2.3-6-5 or IC 6-3-4-14, the credit shall be applied
against the state tax liability of the affiliated group.".
Page 11, delete lines 14 through 15, begin a new line block indented
and insert:
" (2) in the case of a pass through entity described in:
(A) section 7(1), 7(2), 7(3), or 7(4) of this chapter, the
percentage of the pass through entity's distributive income
to which the shareholder, partner, or member is entitled;
or
(B) section 7(5) or 7(6) of this chapter, the relative
percentage of the corporation's patronage dividends
allocable to the member for the taxable year.".
Page 11, line 28, delete "person" and insert " A taxpayer".
Page 11, line 39, delete "The" and insert " If the corporation
decides to award a tax credit under this chapter to an applicant,
the".
Page 11, line 40, delete "an" and insert " the".
Page 11, line 40, after "applicant" insert " .".
Page 11, line 40, delete "that is awarded a credit under this
chapter.".
Page 12, line 32, delete "19." and insert " 20.".
Page 12, line 36, delete "18" and insert " 19".
Page 12, delete lines 39 through 42, begin a new paragraph and
insert:
SOURCE: IC 8-1-8.8-10; (07)CR052501.10. -->
"SECTION 10. IC 8-1-8.8-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 10. (a) As used in this
chapter, "renewable energy resources" means alternative sources of
renewable energy, including the following:
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production.
(5) Organic waste Biomass (as defined by IC 6-3.1-34-1).
(6) Hydropower from existing dams.
(7) Fuel cells.
(8) Energy from waste to energy facilities producing steam not
used for the production of electricity.
(b) Except for energy described in subsection (a)(8), the term does
not include energy from the incinerations, burning, or heating of any of
the following:
(1) Waste wood.
(2) Tires.
(3) General household, institutional, commercial, industrial
lunchroom, office, or landscape waste.
(4) Construction or demolition debris.".
Delete pages 13 through 14.
SOURCE: Page 15, line 1; (07)CR052501.15. -->
Page 15, delete lines 1 through 3.
Page 15, line 7, delete "IC 6-3.1-31, IC 6-3.1-32, IC 6-3.1-33, and".
Page 15, line 7, delete "all".
Page 15, line 8, delete "apply" and insert "
applies".
Renumber all SECTIONS consecutively.
(Reference is to SB 525 as printed February 2, 2007.)
and when so amended that said bill do pass.
Committee Vote: Yeas 11, Nays 0.
____________________________________
Kenley
CR052501/DI 113 2007