Bill Text: IN HB1412 | 2013 | Regular Session | Amended
Bill Title: Economic development.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2013-02-14 - Representative Hale added as coauthor [HB1412 Detail]
Download: Indiana-2013-HB1412-Amended.html
Citations Affected: IC 6-3.1.
Synopsis: Economic development. Permits the Indiana economic
development corporation to award an EDGE+ bonus to taxpayers who
are subject to the federal medical device excise tax and create or retain
jobs in Indiana. Makes technical corrections.
Effective: Upon passage.
January 22, 2013, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
February 14, 2013, amended, reported _ Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 127.
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.
(b) The term "new employee" does not include:
(1) an employee of the taxpayer who performs a job that was previously performed by another employee, if that job existed for at least six (6) months before hiring the new employee;
(2) an employee of the taxpayer who was previously employed in Indiana by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the tax credit agreement; or
(3) a child, grandchild, parent, or spouse, other than a spouse who is legally separated from the individual, of any individual who is an employee of the taxpayer and who has a direct or an indirect
ownership interest of at least five percent (5%) in the profits,
capital, or value of the taxpayer (an ownership interest shall be
determined in accordance with Section 1563 of the Internal
Revenue Code and regulations prescribed under that Section).
(c) Notwithstanding subsection (b)(1), if a new employee performs
a job that was previously performed by an employee who was:
(1) treated under the agreement as a new employee; and
(2) promoted by the taxpayer to another job;
the employee may be considered a new employee under the agreement.
(d) Notwithstanding subsection (a), the board corporation may
credit awards to an applicant that met the conditions of this chapter at
the time of the applicant's location or expansion decision, if:
(1) the applicant is in receipt of a letter from the department of
commerce stating an intent to enter into a credit agreement; and
(2) the letter described in subdivision (1) is issued by the
department of commerce not later than March 15, 1994.
(1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.
(2) The applicant is engaged in research and development, manufacturing, or business services, according to the NAICS Manual of the United States Office of Management and Budget.
(3) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year exceeds the greater of the following:
(A) If there is more than one (1) business in the same NAICS industry sector as the applicant's business in the county in which the applicant's business is located, the average
compensation paid during that same period to all employees
working in that NAICS industry sector in that county
multiplied by one hundred five percent (105%).
(B) If there is more than one (1) business in the same NAICS
industry sector as the applicant's business in Indiana, the
average compensation paid during that same period to all
employees working in that NAICS industry sector throughout
Indiana multiplied by one hundred five percent (105%).
(C) The compensation for that same period corresponding to
the federal minimum wage multiplied by two hundred percent
(200%).
(4) For taxable years beginning before January 1, 2010, the
applicant employs at least thirty-five (35) employees in Indiana.
(5) The applicant has prepared a plan for the use of the credits
under this chapter for:
(A) investment in facility improvements or equipment and
machinery upgrades, repairs, or retrofits; or
(B) other direct business related investments, including but not
limited to training.
(6) 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 increase the likelihood of the applicant reducing jobs
in Indiana.
(7) 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.
(8) The applicant's business and project are economically sound
and will benefit the people of Indiana by increasing or
maintaining opportunities for employment and strengthening the
economy of Indiana.
(9) The communities affected by the potential reduction in jobs or
relocation of jobs to another site outside Indiana have committed
local incentives with respect to the retention of jobs in an amount
determined by the corporation. For purposes of this subdivision,
local incentives include, but are not limited to, cash grants, tax
abatements, infrastructure improvements, investment in facility
rehabilitation, construction, and training investments.
(10) The credit is not prohibited by section 16 of this chapter.
(11) If the business is located in a community revitalization
enhancement district established under IC 36-7-13 or a certified
technology park established under IC 36-7-32, the legislative
body of the political subdivision establishing the district or park
has adopted an ordinance recommending the granting of a credit
amount that is at least equal to the credit amount provided in the
agreement.
(b) The corporation shall evaluate an application submitted by
a qualified taxpayer (as defined in IC 6-3.1-13.1-5) who proposes
to retain existing jobs in Indiana under IC 6-3.1-13.1-8. The
corporation shall determine under IC 6-3.1-13.1-8 whether to enter
into a credit agreement with the qualified taxpayer.
(1) include any EDGE+ bonus applied to the credit under IC 6-3.1-13.1; and
(2) be stated as a percentage of the incremental income tax withholdings attributable to the applicant's project and may include a fixed dollar limitation.
In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's state tax liability for the taxable year, in which case the excess may, at the discretion of the corporation, be refunded to the taxpayer.
(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.
Chapter 13.1. EDGE+ Bonus
Sec. 1. This chapter applies to jobs created or retained after
May 15, 2013, and before May 15, 2018.
Sec. 2. The purpose of this chapter is to mitigate the affect that
the federal medical device excise tax under 26 I.R.C. 4191 may
have on the Indiana medical device industry.
Sec. 3. The definitions set forth in IC 6-3.1-13 apply throughout
this chapter.
Sec. 4. As used in this chapter, "EDGE+ bonus" refers to any
amount added to a taxpayer's credit amount under section 9 of this
chapter.
Sec. 5. As used in this chapter, "federal excise tax liability"
refers to a taxpayer's liability for the federal medical device excise
tax under 26 I.R.C 4191.
Sec. 6. As used in this chapter, "qualified taxpayer"refers to a
taxpayer who has federal excise tax liability.
Sec. 7. (a) Subject to subsections (b) and (c), a qualified taxpayer
may apply to the corporation for an EDGE+ bonus for creating or
retaining jobs in Indiana in a taxable year described in section 1 of
this chapter. The corporation shall prescribe the form for the
application and require any information necessary to verify that
the jobs have been created or retained by the qualified taxpayer.
(b) A qualified taxpayer may not apply to the corporation for an
EDGE+ bonus after the date on which the federal medical device
excise tax is repealed or expires under the Internal Revenue Code.
(c) The corporation may not:
(1) accept an application; or
(2) take any action on an application;
submitted after the date on which the federal medical device excise
tax expires under the Internal Revenue Code or is repealed.
Sec. 8. This section applies to an application submitted by a
qualified taxpayer who proposes to retain existing jobs in Indiana.
After receipt of an application, the corporation may enter into an
agreement with the applicant for a credit under IC 6-3.1-13 and an
EDGE+ bonus under this chapter if the corporation determines
that one (1) or more of the following conditions exist:
(1) The applicant's project will retain existing jobs performed
by the employees of the applicant in Indiana.
(2) The applicant is engaged in research and development or
manufacturing, according to the NAICS Manual of the United
States Office of Management and Budget.
(3) The average compensation (including benefits) provided
to the applicant's employees during the applicant's previous
fiscal year exceeds the greater of the following:
(A) If there is more than one (1) business in the same
NAICS industry sector as the applicant's business in the
county in which the applicant's business is located, the
average compensation paid during that same period to all
employees working in that NAICS industry sector in that
county multiplied by one hundred five percent (105%).
(B) If there is more than one (1) business in the same
NAICS industry sector as the applicant's business in
Indiana, the average compensation paid during that same
period to all employees working in that NAICS industry
sector throughout Indiana multiplied by one hundred five
percent (105%).
(C) The compensation for that same period corresponding
to the federal minimum wage multiplied by two hundred
percent (200%).
(4) The applicant employs at least thirty-five (35) employees
in Indiana.
(5) The applicant has prepared a plan for the use of the
credits under this chapter for:
(A) investment in facility improvements or equipment and
machinery upgrades, repairs, or retrofits; or
(B) other direct business related investments, including but
not limited to training.
(6) 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 increase the likelihood of the applicant
reducing jobs in Indiana.
(7) 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.
(8) The applicant's business and project are economically
sound and will benefit the people of Indiana by increasing or
maintaining opportunities for employment and strengthening
the economy of Indiana.
(9) The communities affected by the potential reduction in
jobs or relocation of jobs to another site outside Indiana have
committed local incentives with respect to the retention of
jobs in an amount determined by the corporation. For
purposes of this subdivision, local incentives include, but are
not limited to, cash grants, tax abatements, infrastructure
improvements, investment in facility rehabilitation,
construction, and training investments.
(10) The credit is not prohibited by IC 6-3.1-13-16.
(11) If the business is located in a community revitalization
enhancement district established under IC 36-7-13 or a
certified technology park established under IC 36-7-32, the
legislative body of the political subdivision establishing the
district or park has adopted an ordinance recommending the
granting of a credit amount that is at least equal to the credit
amount provided in the agreement.
Sec. 9. (a) If the corporation determines that a qualified
taxpayer has created or retained jobs in Indiana in a taxable year,
the corporation shall apply an EDGE+ bonus to the credit amount
awarded under IC 6-3.1-13.
(b) The amount of the EDGE+ bonus for creating jobs is equal
to the product of:
(1) the number of jobs created in the taxable year by the
qualified taxpayer; multiplied by
(2) five thousand dollars ($5,000).
(c) The amount of the EDGE+ bonus for retaining jobs is equal
to the product of:
(1) the number of jobs retained in the taxable year by the
qualified taxpayer; multiplied by
(2) two thousand five hundred dollars ($2,500).
Sec. 10. The following apply to a qualified taxpayer who applies
for an EDGE+ bonus under this chapter:
(1) Any procedural requirement for obtaining a credit amount
under IC 6-3.1-13.
(2) Any condition imposed upon a credit amount under
IC 6-3.1-13.
(3) Any limit on a credit amount set forth in IC 6-3.1-13-18.
(4) Any compliance requirement imposed upon a recipient of
a credit under IC 6-3.1-13.
Sec. 9. This chapter expires January 1, 2020.
