Bill Text: IN HB1297 | 2012 | Regular Session | Introduced
Bill Title: Transportation and logistics income tax credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1297 Detail]
Download: Indiana-2012-HB1297-Introduced.html
Citations Affected: IC 6-3.1-34.
Synopsis: Transportation and logistics income tax credit. Provides an
income tax credit for new expenditures made before January 1, 2019,
by a taxpayer for one or more of the following purposes: (1)
Implementing homeland security measures to comply with federal
homeland security requirements, as certified by the department of
homeland security. (2) Making improvements to real property located
in Indiana that are related to constructing a new or modernizing an
existing transportation or logistical distribution facility. (3) Improving
the transportation of goods by highway, rail, water, or air. (4) Making
warehouse upgrades or improving logistical distribution. Requires the
department of homeland security, in consultation with the department
of state revenue, to adopt rules to implement a certification process for
homeland security expenditures. Provides that the amount of the credit
for a taxable year is equal to: (1) 25%; multiplied by (2) the amount of
the qualified expenditures made by the taxpayer during the taxable year
minus the average annual qualified expenditures made by the taxpayer
during the immediately preceding two years. Limits the credit that may
be claimed for a taxable year to the taxpayer's state tax liability for that
taxable year. Allows the taxpayer to carry over any unused credit for
nine years. Provides that the credit may not be refunded, carried back,
or transferred to another taxpayer. Limits the credit to $25,000,000 for
each state fiscal year, subject to the state budget committee reviewing
an increase in the limit as proposed by the director of the office of
management and budget. Requires the department of state revenue to
annually report to the state budget committee concerning the use of the
credit, including summary information and the name and address of
each taxpayer claiming the credit and the credit amount claimed by
each taxpayer.
Effective: January 1, 2013.
January 10, 2012, read first time and referred to Committee on Ways and Means.
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 34. Transportation and Logistics Tax Credit
Sec. 1. 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 trust;
(4) a limited liability company; or
(5) a limited liability partnership.
Sec. 2. As used in this chapter, "qualified expenditure" means an expenditure described in section 6 of this chapter.
Sec. 3. 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. 4. As used in this chapter, "taxpayer" means an individual, a corporation, a pass through entity, or another entity that has state tax liability.
Sec. 5. (a) Subject to the limit on the annual amount of credits granted under section 9 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability in a taxable year for making new qualified expenditures before January 1, 2019.
(b) The amount of new qualified expenditures made by a taxpayer during the taxable year is the difference of:
(1) the qualified expenditures made by the taxpayer during the taxable year; minus
(2) the average annual qualified expenditures made by the taxpayer during the two (2) taxable years immediately preceding the taxable year for which the credit is being claimed.
However, if the qualified expenditures for the earlier year of the two (2) year average is zero (0) and the taxpayer has not claimed the credit for a year that precedes that year, the taxpayer shall, for purposes of subdivision (2), subtract only the amount of the qualified expenditures made during the taxable year immediately preceding the taxable year for which the credit is being claimed.
(c) The amount of a taxpayer's credit under this chapter for a taxable year equals twenty-five percent (25%) of the new qualified expenditures made by the taxpayer during the taxable year.
Sec. 6. For purposes of this chapter, a qualified expenditure is an expenditure for one (1) or more of the following purposes:
(1) Implementing a homeland security measure to comply with federal homeland security requirements, limited to the following:
(A) Gates, fencing, and checkpoints.
(B) Tank and grain elevator access restrictions.
(C) Tunnel emergency access restrictions.
(D) Security alarms.
(E) Lighting and motion sensors.
(F) Heavy duty locks.
(G) Valve locks for anhydrous ammonia nurse tanks.
(H) Employee security training.
A taxpayer must obtain the certification of the department of
homeland security (IC 10-19-2-1) that an expenditure under
this subdivision is a qualified expenditure for purposes of this
chapter before claiming the tax credit. The department of
homeland security, in consultation with the department, shall
adopt rules under IC 4-22-2, including emergency rules under
IC 4-22-2-37.1, to implement a certification process for
purposes of this subdivision.
(2) Making an improvement to real property located in
Indiana that is related to constructing a new, or modernizing
an existing, transportation or logistical distribution facility.
(3) Improving the transportation of goods on Indiana
highways, limited to the following:
(A) Upgrading to terminal facilities that serve tractors (as
defined in IC 9-13-2-180) and semitrailers (as defined in
IC 9-13-2-164).
(B) Improving paved access to terminal facilities.
(C) Adding maintenance areas.
(D) Purchasing new shop equipment having a useful life of
at least five (5) years, such as diagnostic equipment, oil
delivery systems, air compressors, and truck lifts.
(4) Improving the transportation of goods by rail, limited to
the following:
(A) Upgrading or building mainline, secondary, yard, and
spur trackage.
(B) Upgrading or replacing bridges to obtain higher load
bearing capability.
(C) Upgrading or replacing grade crossings to increase
visibility for motorists, including improvements to
roadway surfaces, signage and traffic signals, and signal
system upgrades and replacements to meet Federal
Railroad Administration Positive Train Control
regulations.
(D) Upgrading fueling facilities, including upgrading
fueling and sanding locomotives or tanks, pumps, piping,
containment areas, track pans, lighting, and security.
(E) Upgrading team track facilities, including railroad
owned warehouses, loading docks, and transfer stations for
loading and unloading freight.
(F) Upgrading shop facilities, including upgrading
structures, inspection pits, drop pits, cranes, employee fall
protection, lighting, climate control, and break rooms.
(5) Improving the transportation of goods by water, limited to
the following:
(A) Upgrading or replacing a permanent waterside dock.
(B) Upgrading or building a new terminal facility that
serves waterborne transportation.
(C) Improving paved access to a waterborne terminal
facility.
(D) Purchasing new equipment having a useful life of at
least five (5) years, including diagnostic equipment, an oil
delivery system, an air compressor, or a barge lift.
(6) Improving the transportation of goods by air, limited to
the following:
(A) Upgrading or building a new cargo building, apron,
hangar, warehouse facility, freight forwarding facility,
cross-dock distribution facility, or aircraft maintenance
facility.
(B) Improving paved access to a terminal or cargo facility.
(C) Upgrading a fueling facility.
(7) Improving warehousing and logistical capabilities, limited
to the following:
(A) Upgrading warehousing facilities, including upgrading
loading dock doors and loading dock plates, fueling
equipment, fueling installations, or dolly drop pads for
trailers.
(B) Improving logistical distribution by purchasing new
equipment, limited to the following:
(i) Picking modules (systems of racks, conveyors, and
controllers).
(ii) Racking equipment.
(iii) Warehouse management systems, including scanning
or coding equipment.
(iv) Security equipment.
(v) Temperature control and monitoring equipment.
(vi) Dock levelers and pallet levelers and inverters.
(vii) Conveyors and related controllers, scales, and like
equipment.
(viii) Packaging equipment.
(ix) Moving, separating, sorting, and picking equipment.
Sec. 7. (a) If the amount of the credit 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 the excess over to the
following taxable years. However, the carryover period may not
exceed nine (9) consecutive taxable years, beginning with the
taxable year after the taxable year in which the taxpayer is first
granted the credit. 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 refund or carryback of any
unused credit.
(c) A taxpayer may not assign, convey, sell, or otherwise
transfer the credit to any other taxpayer.
Sec. 8. If a pass through entity does not have state tax liability
against which the tax credit may be applied, a shareholder or
partner of the pass through entity is entitled to a tax credit equal
to:
(1) 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 or partner is entitled.
Sec. 9. (a) The total amount of credits allowed under this
chapter may not exceed in the aggregate twenty-five million dollars
($25,000,000) for all taxpayers per state fiscal year. However, the
director of the office of management and budget (IC 4-3-22) may
increase the credit for a state fiscal year by the specific amount
proposed by the director, if the specific amount receives the review
of the state budget committee before June 1 of that state fiscal
year.
(b) Any person that desires to claim a tax credit provided in this
chapter shall file with the department, in the form that the
department may prescribe, an application:
(1) stating the amount of the new qualified expenditures that
the person proposes to make that would qualify for a tax
credit;
(2) stating the amount sought to be claimed as a credit; and
(3) identifying whether the credit will be claimed during the
state fiscal year in which the application is filed or the
immediately succeeding state fiscal year.
(c) The department shall record the time of filing of each
application for a credit under this chapter and shall, except as
provided in subsection (d), grant the credit to the taxpayer in the
chronological order in which the application is filed in the state
fiscal year, if the taxpayer's proposed new qualified expenditures
and the taxpayer otherwise qualify for a credit under this chapter.
The department shall promptly notify an applicant whether, or the
extent to which, the tax credit is allowable in the state fiscal year
proposed by the taxpayer.
(d) If the total credits approved under this section, including
carryover credits approved for a previous state fiscal year, equal
the maximum amount allowable in the state fiscal year, an
application for the credit that is filed later for that same state fiscal
year may not be approved. However, if an applicant for which a
credit has been approved fails to claim the credit applied for, an
amount equal to the credit previously applied for but not claimed
may be allowed to the next eligible applicant or applicants until the
total amount has been allowed.
(e) To receive the credit provided by this chapter, a taxpayer
must have an approved application and claim the credit in the
manner prescribed by the department. The taxpayer shall submit
to the department all information that the department determines
is necessary for the calculation of the credit, for the determination
of whether an expenditure is a new qualified expenditure, and for
the department to fulfill the reporting requirements of this
chapter.
Sec. 10. The department shall report, not later than December
15 each year, to the budget committee concerning the use of the
credit under this chapter. The report must include the following
with regard to the previous state fiscal year:
(1) Summary information regarding the taxpayers and the use
of the credit, including the amount of credits approved, the
number of taxpayers applying for the credit and claiming the
credit, the number of employees who are employed in Indiana
by the taxpayers claiming the credit, the amount and type of
new qualified expenditures for which the credit was granted,
the total dollar amount of new credits claimed and the
average amount of the credit claimed per taxpayer, the
amount of credits to be carried forward to a subsequent
taxable year, and the percentage of the total credits claimed
as compared to the total adjusted gross income of all the
taxpayers claiming the credit.
(2) The name and address of each taxpayer claiming the credit
and the amount of the credit applied for by and granted to
each taxpayer.
(b) This SECTION expires January 1, 2015.
