Bill Text: IN HB1335 | 2013 | Regular Session | Introduced
Bill Title: Hoosier business investment tax credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-17 - First reading: referred to Committee on Ways and Means [HB1335 Detail]
Download: Indiana-2013-HB1335-Introduced.html
Citations Affected: IC 6-3.1-26.
Synopsis: Hoosier business investment tax credit. Provides that an
additional class of investments known as Hoosier overdrive
investments is eligible for the Hoosier business investment tax credit.
Provides that the credit percentage awarded by the Indiana economic
development corporation for Hoosier overdrive investments may not
exceed 25%. Limits the total amount of credits that the Indiana
economic development corporation may award for Hoosier overdrive
investments each state fiscal year to $20,000,000.
Effective: January 1, 2014.
January 15, 2013, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) 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.
(2) Improving the transportation of goods on Indiana highways, limited to the following:
(A) Upgrading 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 new 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(b) The term does not include an expenditure for maintenance
expenses.
(1) the purchase of new telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, finishing, distribution, transportation, or logistical distribution equipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, extraction, mining, processing, refining, finishing,
distribution, transportation, or logistical distribution facilities;
(4) onsite infrastructure improvements;
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, finishing, distribution, transportation, or
logistical distribution facilities;
(6) costs associated with retooling existing machinery and
equipment;
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry; and
(8) costs associated with the purchase of machinery, equipment,
or special purpose buildings used to make motion pictures or
audio productions; and
(9) Hoosier overdrive investments;
that are certified by the corporation under this chapter as being eligible
for the credit under this chapter.
(b) The term does not include property that can be readily moved
outside Indiana.
(1) the credit amount attributable to qualified investments that are Hoosier overdrive investments; plus
(2) the credit amount attributable to qualified investments that are not Hoosier overdrive investments.
(b) This subsection applies only to taxable years beginning after December 31, 2013. For a taxable year, the credit amount attributable to qualified investments that are Hoosier overdrive investments is equal to:
(1) the difference of:
(A) the amount of Hoosier overdrive investments made by the taxpayer during the taxable year; minus
(B) the product of:
(i) the average amount of Hoosier overdrive investments
made by the taxpayer during each of the two (2)
immediately preceding taxable years; multiplied by
(ii) one and five-hundredths (1.05); multiplied by
(2) a percentage determined by the corporation, not to exceed
twenty-five percent (25%).
For purposes of determining the amount in subdivision (1)(B)(i), if
the amount of Hoosier overdrive investments 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 amount
determined under subdivision (1)(B)(i) equals the amount of
Hoosier overdrive investments made during the immediately
preceding taxable year.
(c) For a taxable year, the credit amount attributable to
qualified investments that are not Hoosier overdrive investments
is equal to:
(1) the amount of qualified investments made by the taxpayer
in Indiana during the taxable year that are not Hoosier
overdrive investments; multiplied by
(2) a percentage determined by the corporation, not to exceed
ten percent (10%).
(b) The amount that a taxpayer may carry forward to a particular taxable year under this section equals the unused part of a credit allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified investment; and
(2) carry forward a remainder for one (1) or more different qualified investments;
in the same taxable year.
a project to create new jobs or increase wage levels to make a
qualified investment in Indiana may apply to the corporation before
the taxpayer makes the qualified investment to enter into an agreement
for a tax credit under this chapter. A person must submit the person's
application under this subsection to the corporation before making
the qualified investment proposed in the application.
(b) The director shall prescribe the form of the application.
(1) the part of the proposed qualified investment that is a Hoosier overdrive investment, if any, meets the conditions listed in subsection (b); and
(2) the part of the proposed qualified investment that is not a Hoosier overdrive investment, if any, meets the conditions of subsection (c).
(b) A proposed qualified investment that is a Hoosier overdrive investment must meet the following conditions:
(1) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project.
(2) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
(3) This subdivision applies only to a Hoosier overdrive investment that is a homeland security measure described in section 5.3(a)(7) of this chapter. A taxpayer must obtain the certification of the department of homeland security that an expenditure described in section 5.3(a)(7) of this chapter is both necessary and adequate to comply with federal homeland security requirements.
(c) A proposed qualified investment that is not a Hoosier overdrive investment must meet the following conditions:
(1) The applicant's project will raise the total earnings of employees of the applicant in Indiana.
(2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana.
(3) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project and not receiving the tax
credit will result in the applicant not raising the total earnings of
employees in Indiana.
(4) Awarding the tax credit will result in an overall positive fiscal
impact to the state, as certified by the budget agency using the
best available data.
(5) The credit is not prohibited by section 19 of this chapter.
(6) The average wage that will be paid by the taxpayer to its
employees (excluding highly compensated employees) at the
location after the credit is given will be at least equal to one
hundred fifty percent (150%) of the hourly minimum wage under
IC 22-2-2-4 or its equivalent.
(d) The department of homeland security, in consultation with
the department, shall adopt rules under IC 4-22-2, including
emergency rules adopted in the manner provided under
IC 4-22-2-37.1, to implement a certification process for purposes
of subsection (b)(3). In determining whether a homeland security
measure complies with federal homeland security requirements for
purposes of the credit provided by this chapter, the department
shall apply the standards set forth in the United States Department
of Homeland Security Chemical Facility Anti-terrorism Standards
regulations (6 CFR Part 27) adopted under federal Public Law
109-295.
(1) that is not a Hoosier overdrive investment; and
(2) for
Determinations under this section shall be made by the corporation.
(b) The corporation may not award more than twenty million dollars ($20,000,000) of credits under this chapter in each state
fiscal year for Hoosier overdrive investments.
(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 amount of the taxpayer's state tax liability for each tax in the taxable year of the taxpayer that immediately preceded the first taxable year in which the credit may be claimed.
(4) The maximum tax credit amount that will be allowed for each taxable year.
(5) 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.
(6) This subdivision applies only to a qualified investment that is not a Hoosier overdrive investment. A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.
(7) This subdivision applies only to a qualified investment that is not a Hoosier overdrive investment. A requirement that the taxpayer shall annually report to the corporation the number of new employees who are performing jobs not previously performed by an employee, the average wage of the new employees, the average wage of all employees at the location where the qualified investment is made, and any other information the director needs to perform the director's duties under this chapter.
(8) This subdivision applies only to a qualified investment that is not a Hoosier overdrive investment. A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (7), and that after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
(9) This subdivision applies only to a qualified investment that is not a Hoosier overdrive investment. A requirement that the taxpayer shall pay an average wage to all its employees other than highly compensated employees in each taxable year that a tax credit is available that equals at least one hundred fifty percent
(150%) of the hourly minimum wage under IC 22-2-2-4 or its
equivalent.
(10) A requirement that the taxpayer will keep the qualified
investment property that is the basis for the tax credit in Indiana
for at least the lesser of its useful life for federal income tax
purposes or ten (10) years.
(11) This subdivision applies only to a qualified investment
that is not a Hoosier overdrive investment. 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 level that existed before the
qualified investment was made.
(12) A requirement that the taxpayer shall provide written
notification to the director and the corporation not more than
thirty (30) days after the taxpayer makes or receives a proposal
that would transfer the taxpayer's state tax liability obligations to
a successor taxpayer.
(13) Any other performance conditions that the corporation
determines are appropriate.
(b) A taxpayer claiming a credit under this chapter shall submit to the department of state revenue a copy of the director's certificate of verification under this chapter for the taxable year. However, failure to submit a copy of the certificate does not invalidate a claim for a credit.
