Bill Text: IN HB1216 | 2013 | Regular Session | Introduced


Bill Title: Tax credit for hiring offenders.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-01-10 - First reading: referred to Committee on Ways and Means [HB1216 Detail]

Download: Indiana-2013-HB1216-Introduced.html


Introduced Version






HOUSE BILL No. 1216

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.1-34.

Synopsis: Tax credit for hiring offenders. Provides a tax credit against state tax liability each taxable year for a taxpayer that hires an ex-felon. Specifies that the amount of the credit is $3,000 for each qualified individual the employer hires during the taxable year. Provides that the maximum amount of credits allowed per state fiscal year may not exceed $1,000,000 in a state fiscal year ending before July 1, 2014, and may not exceed $2,500,000 in the state fiscal year beginning July 1, 2014, or in a subsequent state fiscal year. Requires a reporting on the tax credit before August 1, 2015.

Effective: January 1, 2013 (retroactive).





Shackleford




    January 10, 2013, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1216



    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 6-3.1-34; (13)IN1216.1.1. -->     SECTION 1. IC 6-3.1-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]:
     Chapter 34. Tax Credit for Hiring Qualified Individuals
    Sec. 1. This chapter applies only to taxable years beginning after December 31, 2012.
    Sec. 2. As used in this chapter, "department" refers to:
        (1) the department of state revenue; or
        (2) the department of insurance;
whichever is obligated to administer the tax against which a tax credit is applied.
    Sec. 3. As used in this chapter, "pass through entity" means:
        (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. 4. As used in this chapter, "person" means any individual, partnership, firm, association, joint venture, limited liability company, or corporation.
    Sec. 5. As used in this chapter, "qualified individual" means an individual who:
        (1) has been convicted of a felony under federal or state law; and
        (2) is hired by the taxpayer not more than twelve (12) months after the later of:
            (A) the date of the individual's most recent felony conviction; or
            (B) the individual's release from prison.
    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); and
        (2) 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 engaged in a trade or business.
    Sec. 8. (a) Except as otherwise provided in subsection (b) and section 12 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability for each qualified individual the taxpayer hires during a taxable year for employment in Indiana. The amount of the credit is equal to:
        (1) three thousand dollars ($3,000); multiplied by
        (2) the number of qualified individuals hired by the taxpayer for employment in Indiana during the taxable year.
    (b) A taxpayer may not claim the credit provided by subsection (a) for hiring a qualified individual if any of the following apply:
        (1) The taxpayer is required by federal or state law to hire or rehire the qualified individual.
        (2) The taxpayer claims any other credit under this article for hiring the qualified individual.
        (3) The taxpayer hires the qualified individual to replace a laid-off employee or an employee who is on strike against the taxpayer.
    Sec. 9. 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.
    Sec. 10. (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 nine (9) 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. 11. 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.
     Sec. 12. (a) The amount of tax credits allowed under this chapter may not exceed the following amounts:
        (1) One million dollars ($1,000,000) in a state fiscal year ending before July 1, 2014.
        (2) Two million five hundred thousand dollars ($2,500,000) in the state fiscal year beginning July 1, 2014, and in each state fiscal year thereafter.
    (b) The department shall record the time of filing of each tax return claiming a credit under section 11 of this chapter and shall approve the claims, if they otherwise qualify for a tax credit under this chapter, in the chronological order in which the returns are filed in the state fiscal year.
    (c) The department may not approve a return claiming a credit under this chapter after the total amount of credits approved under this section equals the maximum amount allowable in a particular state fiscal year.
    (d) The department of state revenue and the department of insurance shall assist each other in implementing this section.

     Sec. 13. Before August 1, 2015, the department of insurance, the

department of state revenue, and the department of correction shall submit a joint report describing the use and effectiveness of the tax credit to the governor and the legislative council in an electronic format under IC 5-14-6. The report must include the following information:
        (1) The total amount of credits claimed in the reporting period.
        (2) The geographical areas in which the credit was claimed.
        (3) The types of employers claiming the credit.
        (4) An evaluation of the credit's impact on individuals hired through the credit, on the department of correction, and on community corrections programs.

SOURCE: ; (13)IN1216.1.2. -->     SECTION 2. An emergency is declared for this act.

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