Bill Text: IN HB1193 | 2013 | Regular Session | Introduced
Bill Title: Economic development.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-10 - First reading: referred to Committee on Commerce, Small Business and Economic Development [HB1193 Detail]
Download: Indiana-2013-HB1193-Introduced.html
Citations Affected: IC 5-28-36; IC 6-3-2; IC 6-3.1-13.
Synopsis: Economic development. Establishes the Hoosier heritage
innovative industry loan fund. Authorizes interest free loans, reduced
income tax rates, and enhanced economic development for a growing
economy (EDGE) tax credits to encourage the manufacturing of wind
turbine components in Indiana using steel produced in the United
States. Transfers $1,000,000 from the Indiana twenty-first century
research and technology fund to the Hoosier heritage innovative
industry loan fund.
Effective: July 1, 2013.
January 10, 2013, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 36. Hoosier Heritage Innovative Industry Loan Fund
Sec. 1. As used in this chapter, "fund" refers to the Hoosier heritage innovative industry loan fund established by section 3 of this chapter.
Sec. 2. As used in this chapter, "qualified wind turbine facility" means a facility that fabricates or manufactures wind turbines or the gearbox or tower components of a wind turbine using steel made in the United States.
Sec. 3. (a) The Hoosier heritage innovative industry loan fund is established to provide loans to support the establishment of a qualified wind turbine facility in Indiana.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) money transferred to the fund from the Indiana
twenty-first century research and technology fund established
by IC 5-28-16-2; and
(3) loan repayments.
(c) The corporation shall administer the fund. The following
may be paid from the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) The treasurer of state shall invest money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(e) The money in the fund at the end of the state fiscal year does
not revert to the state general fund but remains in the fund to be
used exclusively for purposes of this chapter.
Sec. 4. (a) The board may make a loan to an applicant from the
fund as provided in this chapter.
(b) A successful applicant may receive an interest free loan from
the fund for an amount not to exceed one million dollars
($1,000,000) to establish a qualified wind turbine facility in
Indiana. The term of the loan may not exceed twenty (20) years.
Sec. 5. (a) A successful applicant for a loan from the fund must
meet the requirements of this section and be approved by the
board. An application for a loan 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.
(b) All applications for a loan from the fund must include the
following:
(1) A commitment to use steel produced in the United States
in the fabrication or manufacture of wind turbines or the
gearbox or tower components of a wind turbine.
(2) A detailed financial analysis that includes the commitment
of resources by other entities that will be involved in the
project.
(3) A statement of the economic development potential of the
project, such as:
(A) a statement of the way in which a loan from the fund
will lead to significantly increased funding from federal or
private sources and from private sector research partners;
or
(B) a projection of the jobs to be created.
(4) The identity, qualifications, and obligations of the
applicant.
(5) Any other information the board considers appropriate.
An applicant for a loan 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 the
information may be part of any public record.
Sec. 6. (a) The board shall accept, analyze, and approve
applications as provided in this chapter.
(b) The board shall give priority to an application for a loan
from the fund that has the greatest economic development
potential.
Sec. 7. Before July 15, 2013, the auditor of state shall transfer
one million dollars ($1,000,000) from the Indiana twenty-first
century research and technology fund established by IC 5-28-16-2
to the fund.
(b) Except as provided in section 1.5 or 1.6 of this chapter, each taxable year, a tax at the following rate of adjusted gross income is imposed on that part of the adjusted gross income derived from sources within Indiana of every corporation:
(1) Before July 1, 2012, eight and five-tenths percent (8.5%).
(2) After June 30, 2012, and before July 1, 2013, eight percent (8.0%).
(3) After June 30, 2013, and before July 1, 2014, seven and five-tenths percent (7.5%).
(4) After June 30, 2014, and before July 1, 2015, seven percent (7.0%).
(5) After June 30, 2015, six and five-tenths percent (6.5%).
(c) If for any taxable year a taxpayer is subject to different tax rates under subsection (b), the taxpayer's tax rate for that taxable year is the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's taxable year that precede the month the rate changed by the rate in effect before the rate change.
STEP TWO: Multiply the number of months in the taxpayer's taxable year that follow the month before the rate changed by the rate in effect after the rate change.
STEP THREE: Divide the sum of the amounts determined under STEPS ONE and TWO by twelve (12).
However, the rate determined under this subsection shall be rounded to the nearest one-hundredth of one percent (0.01%).
(b) As used in this section, "IEDC" refers to the Indiana economic development corporation.
(c) As used in this section, "qualified wind turbine facility" has the meaning set forth in IC 5-28-36-2.
(d) A tax at the rate of:
(1) five percent (5%) of adjusted gross income is imposed on that part of the adjusted gross income of a corporation; or
(2) two and four-tenths percent (2.4%) is imposed on that part of the adjusted gross income of a person;
that is derived from a qualified wind turbine facility that has been approved by the IEDC under subsection (f). The tax rate under this section applies to the taxable year in which the qualified wind turbine facility begins operation and to the next succeeding taxable year.
(e) In order for a taxpayer to be taxed at the tax rate described in subsection (d), the IEDC must approve an application submitted by the taxpayer to the IEDC. The application must be on a form prescribed by the IEDC.
(f) After receipt of an application, the IEDC may enter into an agreement with the taxpayer to have a tax rate described in subsection (d) imposed on the adjusted gross income of the taxpayer if the IEDC determines that all of the following conditions exist:
(1) The taxpayer makes a commitment to use steel made in the United States to fabricate or manufacture wind turbines or the gearboxes or towers for wind turbines at the taxpayer's proposed qualified wind turbine facility.
(2) The amount of the average wage paid to an employee
working for the taxpayer exceeds by at least ten percent
(10%) the average wage paid to an employee in the county
where the taxpayer proposes to establish the qualified wind
turbine facility.
(3) The taxpayer's project will create new jobs that were not
jobs previously performed by employees of the taxpayer in
Indiana.
(4) The taxpayer's project is economically sound and will
benefit the people of Indiana by increasing opportunities for
employment in Indiana and strengthening the economy of
Indiana.
(5) Receiving the tax rate provided in subsection (d) is a major
factor in the taxpayer's decision to go forward with the
project, and not receiving the tax rate will result in the
taxpayer not creating new jobs in Indiana.
(6) The approval of the tax rate provided in subsection (d) will
result in an overall positive fiscal impact to the state, as
certified by the budget agency using the best available data.
(7) The taxpayer is not prohibited by subsection (h) from
receiving the tax rate provided in subsection (d).
(g) In determining whether to approve an application for the tax
rate described in subsection (d), the IEDC may take into
consideration the following factors:
(1) The economy of the county where the projected investment
is to occur.
(2) The potential impact on the economy of Indiana.
(3) The incremental payroll attributable to the project.
(4) The capital investment attributable to the project.
(5) The costs to Indiana and the affected political subdivisions
with respect to the project.
(6) The financial assistance and incentives that are otherwise
provided by Indiana and the affected political subdivisions.
(h) A taxpayer may not be taxed at the tax rate described in
subsection (d) if the taxpayer moves a qualified wind turbine
facility in Indiana to another site in Indiana. The IEDC shall make
any determinations concerning the taxpayer's eligibility for
receiving the tax rate.
(i) The IEDC may enter into an agreement under this section
only if the IEDC has received applications from at least two (2)
separate applicants proposing to establish a qualified wind turbine
facility in Indiana.
(j) The taxpayer must file with the taxpayer's annual state tax
return or returns a copy of the agreement entered into by the
corporation and the taxpayer under this section.
(k) The department of state revenue:
(1) shall adopt rules under IC 4-22-2 to establish a procedure
for determining the part of a taxpayer's adjusted gross
income that was derived from a qualified wind turbine
facility; and
(2) may adopt other rules under IC 4-22-2 that the
department considers necessary to implement this section.
(b) In addition to a credit provided in an agreement under section 15 of this chapter, the corporation may enter into an agreement with an applicant to provide an enhanced credit amount of up to one and sixth-tenths percent (1.6%) of the incremental amount of wages subject to tax under IC 6-3 that is attributable to the applicant's qualified wind turbine project. This amount is in addition to the maximum credit amount that may be awarded
under section 18 of this chapter. The duration of the enhanced
credit part of a credit provided under this chapter may not exceed
two (2) taxable years.
(c) In order for the corporation to enter into an agreement with
an applicant to provide the enhanced credit amount provided in
subsection (b), the corporation must determine that the following
conditions are met:
(1) The applicant agrees to use steel made in the United States
to fabricate or manufacture wind turbines or the gearboxes or
towers for wind turbines.
(2) The amount of the average wage to be paid to a new
employee by the applicant exceeds by at least ten percent
(10%) the average wage paid to an employee in the county
where the applicant proposes to establish the qualified wind
turbine facility.
(3) The conditions specified in section 15 of this chapter.
(d) The corporation may enter into an agreement under this
section only if the corporation has received applications from at
least two (2) separate applicants proposing to establish a qualified
wind turbine facility in Indiana.
(1) The economy of the county where the projected investment is to occur.
(2) The potential impact on the economy of Indiana.
(3) The incremental payroll attributable to the project.
(4) The capital investment attributable to the project.
(5) The amount the average wage paid by the applicant exceeds the average wage paid:
(A) within the county in which the project will be located, in the case of an application submitted before January 1, 2006; or
(B) in the case of an application submitted after December 31, 2005:
(i) to all employees working in the same NAICS industry sector to which the applicant's business belongs in the county in which the applicant's business is located, if there is more than one (1) business in that NAICS industry sector in the county in which the applicant's business is located;
(ii) to all employees working in the same NAICS industry sector to which the applicant's business belongs in Indiana, if the applicant's business is the only business in that NAICS industry sector in the county in which the applicant's business is located but there is more than one (1) business in that NAICS industry sector in Indiana; or
(iii) to all employees working in the same county as the county in which the applicant's business is located, if there is no other business in Indiana in the same NAICS industry sector to which the applicant's business belongs.
(6) The costs to Indiana and the affected political subdivisions with respect to the project.
(7) The financial assistance and incentives that are otherwise provided by Indiana and the affected political subdivisions.
(8) The extent to which the incremental income tax withholdings attributable to the applicant's project are needed for the purposes of an incremental tax financing fund or industrial development fund under IC 36-7-13 or a certified technology park fund under IC 36-7-32.
As appropriate, the corporation shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter.
(b) For state fiscal year 2006 and each state fiscal year thereafter, the aggregate amount of credits awarded under this chapter for projects to retain existing jobs in Indiana may not exceed ten million dollars ($10,000,000) per year.
(c) This subsection does not apply to a business that was enrolled
and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time the taxpayer conducted business in Indiana in the taxable year. A credit under this chapter may not be computed on any amount withheld from an individual or paid to an individual for services provided in Indiana as an employee, if the individual was, during the period of service, prohibited from being hired as an employee under 8 U.S.C. 1324a.
