Bill Text: IN HB1369 | 2012 | Regular Session | Introduced
Bill Title: Tax credit for research conducted by university.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1369 Detail]
Download: Indiana-2012-HB1369-Introduced.html
Citations Affected: IC 6-2.5-5-40; IC 6-3.1-4-1.
Synopsis: Tax credit for research conducted by university. Expands
the sales tax exemption for research and development equipment to
include any tangible personal property used for research and
development. Increases the percentage of qualified research conducted
in Indiana through a public or private college or university that is
eligible for a research expense credit.
Effective: January 1, 2012 (retroactive); July 1, 2012.
January 10, 2012, 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) Efficiency surveys.
(2) Management studies.
(3) Consumer surveys.
(4) Economic surveys.
(5) Advertising or promotions.
(6) Research in connection with literary, historical, or similar projects.
(7) Testing for purposes of quality control.
(b) As used in this section, "research and development
(1) consists of or is a combination of:
(A) laboratory equipment;
(B) computers;
(C) computer software;
(D) telecommunications equipment;
(E) testing equipment; or
(F) any other tangible personal property;
(2) has not previously been used in Indiana for any purpose; and
(3) is acquired by the purchaser for the purpose of research and development activities devoted directly to experimental or laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) A retail transaction:
(1) involving research and development
(2) occurring after June 30, 2007;
is exempt from the state gross retail tax.
(d) A retail transaction:
(1) involving research and development property that is not described in subsection (b)(1)(A), (b)(1)(B), (b)(1)(C), (b)(1)(D), or (b)(1)(E) but is described in subsection (b)(1)(F); and
(2) occurring after June 30, 2012;
is exempt from the state gross retail tax. A retail transaction shall be considered as having occurred after June 30, 2012, to the extent that delivery of the property constituting selling at retail is made after that date to the purchaser or to the place of delivery designated by the purchaser. However, a transaction shall be considered as having occurred before July 1, 2012, to the extent that the agreement of the parties to the transaction was entered into before July 1, 2012, and payment for the property furnished in the transaction is made before July 1, 2012, notwithstanding the delivery of the property after June 30, 2012.
(1) "Approved postsecondary educational institution" has the meaning set forth in IC 21-7-13-6(a).
(2) "Base amount" means base amount (as defined in Section 41(c) of the Internal Revenue Code as in effect on January 1, 2001), modified by considering only Indiana qualified research
expenses and gross receipts attributable to Indiana in the
calculation of the taxpayer's:
(1) (A) fixed base percentage; and
(2) (B) average annual gross receipts.
(3) "Indiana college research" means qualified research (as
defined in Section 41(d) of the Internal Revenue Code as in
effect on January 1, 2001), conducted in Indiana after
December 31, 2011, by a state educational institution or an
approved postsecondary educational institution.
(4) "Indiana qualified research expense" means qualified research
expense that is incurred for research conducted in Indiana.
(5) "Qualified research expense" means qualified research
expense (as defined in Section 41(b) of the Internal Revenue
Code as in effect on January 1, 2001). However, the percentage
to be used under Section 41(b) of the Internal Revenue Code,
as in effect on January 1, 2001, to calculate contract research
expenses paid or incurred after December 31, 2011, for
Indiana college research is one hundred percent (100%)
instead of sixty-five percent (65%).
(6) "Pass through entity" means:
(1) (A) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) (B) a partnership;
(3) (C) a limited liability company; or
(4) (D) a limited liability partnership.
(7) "Research expense tax credit" means a credit provided under
this chapter against any tax otherwise due and payable under
IC 6-3.
(8) "Taxpayer" means an individual, a corporation, a limited
liability company, a limited liability partnership, a trust, or a
partnership that has any tax liability under IC 6-3 (adjusted gross
income tax).
