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HOUSE BILL No. 1147

Citations Affected: IC 6-3.1-34.

Synopsis: Employer tax credit for report card conferences. Provides a tax credit against state tax liability to an employer that allows an employee to attend a parent teacher conference for the purpose of discussing a report card of the employee's child when the employee is otherwise scheduled to be on duty. Provides that the amount of the tax credit is $50 for each parent teacher conference attended by an employee during the taxable year, limited to three parent teacher conferences per employee per taxable year.

Effective: July 1, 2011.

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Smith V

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    January 6, 2011, read first time and referred to Committee on Education.

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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.
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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

SOURCE: IC 6-3.1-34; (11)IN1147.1.1. -->     SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 34. Employer Tax Credit for Report Card Conferences
    Sec. 1. This chapter applies only to taxable years beginning after December 31, 2011.
    Sec. 2. As used in this chapter, "child" means a child enrolled in kindergarten or any grade from 1 through 12.
    Sec. 3. As used in this chapter, "employer" means an entity that has employees, including:
        (1) an individual acting as a sole proprietor;
        (2) a pass through entity; and
        (3) a corporation.
    Sec. 4. As used in this chapter, "parent" includes any individual who has legal custody of a child or otherwise has a legal responsibility to support a child.
    Sec. 5. As used in this chapter, "pass through entity" means:

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        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 6-5.5 (the financial institutions tax); and
        (3) IC 27-1-18-2 (the insurance premiums 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 chapter.
    Sec. 7. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that has any state tax liability.
    Sec. 8. (a) Each taxable year, subject to subsection (b), an employer who allows an employee to attend a parent teacher conference for the purpose of discussing a report card of the employee's child when the employee is otherwise scheduled to be on duty is entitled to a credit against the employer's state tax liability in the amount of fifty dollars ($50) for each parent teacher conference the employee attends during the taxable year.
    (b) An employer may not claim the credit provided by subsection (a) for more than three (3) parent teacher conferences per employee during a taxable year.
    Sec. 9. An employer who claims the credit provided by this chapter shall keep records on each parent teacher conference attended by an employee that show:
        (1) the name of the employee;
        (2) the date and time of the parent teacher conference;
        (3) the name of the employee's child; and
        (4) any other reasonable information required by the department.
    Sec. 10. (a) If a pass through entity does not have state tax liability for a taxable year but is otherwise entitled to the tax credit provided by this chapter, each shareholder, partner, or member of the pass through entity is entitled to a share of the tax credit equal to:
        (1) the amount of 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, or member is entitled.
    (b) A share of a tax credit allocated under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter.
     Sec. 11. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time the credit is carried forward to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for not more than five (5) taxable years following the first year for which the credit is claimed.
    (b) A taxpayer is not entitled to a carryback or refund of any unused credit under this chapter.
    Sec. 12. To receive the tax credit under this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department.