Bill Text: IN HB1412 | 2013 | Regular Session | Introduced
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-Introduced.html
Citations Affected: IC 6-3.1-13; IC 6-3.1-13.1.
Synopsis: Economic development. Requires 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: January 1, 2013 (retroactive).
January 22, 2013, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
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) 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 in a taxable year beginning after December 31, 2012, and ending before January 1, 2017.
Sec. 2. The definitions set forth in IC 6-3.1-13 apply throughout this chapter.
Sec. 3. As used in this chapter, "EDGE+ bonus" refers to any amount added to a taxpayer's credit amount under section 7 of this chapter.
Sec. 4. 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. 5. As used in this chapter, "qualified taxpayer"refers to a taxpayer who has federal excise tax liability.
Sec. 6. 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.
Sec. 7. (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 lesser of:
(1) the product of:
(A) the number of jobs created in the taxable year by the qualified taxpayer; multiplied by
(B) five thousand dollars ($5,000); or
(2) the product of:
(A) the qualified taxpayer's federal excise tax liability for the taxable year; multiplied by
(B) fifty percent (50%).
(c) The amount of the EDGE+ bonus for retaining jobs is equal to the lesser of:
(1) the product of:
(A) the number of jobs retained in the taxable year by the qualified taxpayer; multiplied by
(B) two thousand five hundred dollars ($2,500); or
(2) the product of:
(A) the qualified taxpayer's federal excise tax liability for the taxable year; multiplied by
(B) fifty percent (50%).
Sec. 8. The following apply to an EDGE+ bonus applied 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 criteria for evaluating an applicant for a credit under IC 6-3.1-13.
(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.
