Introduced Version
HOUSE BILL No. 1412
_____
DIGEST OF INTRODUCED BILL
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).
Heuer
January 22, 2013, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1412
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-13-6; (13)IN1412.1.1. -->
SECTION 1. IC 6-3.1-13-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]:
Sec. 6. (a) As used in this chapter, "new employee" means a full-time
employee first employed by a taxpayer in the project that is the subject
of a tax credit agreement and who is employed after the taxpayer enters
into the tax credit agreement.
(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.
SOURCE: IC 6-3.1-13-11; (13)IN1412.1.2. -->
SECTION 2. IC 6-3.1-13-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]:
Sec. 11. Subject to the conditions set forth in this chapter, a taxpayer
is entitled to a credit against any state tax liability that may be imposed
on the taxpayer for a taxable year after December 31, 1993, if the
taxpayer is awarded a credit by the board corporation under this
chapter for that taxable year.
SOURCE: IC 6-3.1-13-18; (13)IN1412.1.3. -->
SECTION 3. IC 6-3.1-13-18, AS AMENDED BY P.L.171-2011,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 18. (a) The corporation
shall determine the amount and duration of a tax credit awarded under
this chapter. The duration of the credit may not exceed ten (10) taxable
years. The credit may:
(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.
SOURCE: IC 6-3.1-13.1; (13)IN1412.1.4. -->
SECTION 4. IC 6-3.1-13.1 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]:
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.
SOURCE: ; (13)IN1412.1.5. -->
SECTION 5.
An emergency is declared for this act.