Bill Text: IN SB0222 | 2011 | Regular Session | Engrossed
Bill Title: Transportation and logistics tax credit.
Spectrum: Slight Partisan Bill (Republican 7-3)
Status: (Engrossed - Dead) 2011-04-04 - Representative Yarde added as cosponsor [SB0222 Detail]
Download: Indiana-2011-SB0222-Engrossed.html
Citations Affected: IC 4-22; IC 6-3.1; noncode.
Effective: Upon passage; January 1, 2012.
(HOUSE SPONSORS _ THOMPSON, STEMLER, YARDE)
January 5, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
January 10, 2011, pursuant to Senate Rule 68(b); reassigned to Homeland Security,
Transportation & Veterans Affairs.
January 31, 2011, amended, reported favorably _ Do Pass; reassigned to Committee on
Tax and Fiscal Policy.
February 15, 2011, amended, reported favorably _ Do Pass.
February 17, 2011, read second time, ordered engrossed.
February 18, 2011, engrossed.
February 22, 2011, read third time, passed. Yeas 46, nays 2.
March 28, 2011, read first time and referred to Committee on Commerce, Small Business and Economic Development.
April 4, 2011, amended, reported _ Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127.
Digest Continued
modernizing an existing transportation or logistical distribution facility. (3) Improving the transportation of goods by highway, rail, water, or air. (4) Making warehouse upgrades or improving logistical distribution. Requires the department of homeland security in consultation with the department of state revenue to adopt rules to implement a certification process for homeland security expenditures. Provides that the credit is 35% of the expenditures made by the taxpayer during the taxable year. Limits the credit that may be claimed for a taxable year to the taxpayer's state tax liability for that taxable year. Allows the taxpayer to carryover any unused credit for nine years. Provides that the credit may not be refunded, carried back, or transferred to another taxpayer.
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
transportation.
(1) An order adopted by the commissioner of the Indiana department of transportation under IC 9-20-1-3(d) or IC 9-21-4-7(a) and designated by the commissioner as an emergency rule.
(2) An action taken by the director of the department of natural resources under IC 14-22-2-6(d) or IC 14-22-6-13.
(3) An emergency temporary standard adopted by the occupational safety standards commission under IC 22-8-1.1-16.1.
(4) An emergency rule adopted by the solid waste management board under IC 13-22-2-3 and classifying a waste as hazardous.
(5) A rule, other than a rule described in subdivision (6), adopted by the department of financial institutions under IC 24-4.5-6-107 and declared necessary to meet an emergency.
(6) A rule required under IC 24-4.5-1-106 that is adopted by the department of financial institutions and declared necessary to meet an emergency under IC 24-4.5-6-107.
(7) A rule adopted by the Indiana utility regulatory commission to address an emergency under IC 8-1-2-113.
(8) An emergency rule adopted by the state lottery commission under IC 4-30-3-9.
(9) A rule adopted under IC 16-19-3-5 or IC 16-41-2-1 that the executive board of the state department of health declares is necessary to meet an emergency.
(10) An emergency rule adopted by the Indiana finance authority under IC 8-21-12.
(11) An emergency rule adopted by the insurance commissioner under IC 27-1-23-7.
(12) An emergency rule adopted by the Indiana horse racing commission under IC 4-31-3-9.
(13) An emergency rule adopted by the air pollution control board, the solid waste management board, or the water pollution control board under IC 13-15-4-10(4) or to comply with a deadline required by or other date provided by federal law, provided:
(A) the variance procedures are included in the rules; and
(B) permits or licenses granted during the period the emergency rule is in effect are reviewed after the emergency rule expires.
(14) An emergency rule adopted by the Indiana election commission under IC 3-6-4.1-14.
(15) An emergency rule adopted by the department of natural resources under IC 14-10-2-5.
(16) An emergency rule adopted by the Indiana gaming commission under IC 4-32.2-3-3(b), IC 4-33-4-2, IC 4-33-4-3, IC 4-33-4-14, IC 4-33-22-12, or IC 4-35-4-2.
(17) An emergency rule adopted by the alcohol and tobacco commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or IC 7.1-3-20-24.4.
(18) An emergency rule adopted by the department of financial institutions under IC 28-15-11.
(19) An emergency rule adopted by the office of the secretary of family and social services under IC 12-8-1-12.
(20) An emergency rule adopted by the office of the children's health insurance program under IC 12-17.6-2-11.
(21) An emergency rule adopted by the office of Medicaid policy and planning under IC 12-15-41-15.
(22) An emergency rule adopted by the Indiana state board of animal health under IC 15-17-10-9.
(23) An emergency rule adopted by the board of directors of the Indiana education savings authority under IC 21-9-4-7.
(24) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-34 (repealed).
(25) An emergency rule adopted by the department of local government finance under IC 6-1.1-4-33 (repealed).
(26) An emergency rule adopted by the boiler and pressure vessel rules board under IC 22-13-2-8(c).
(27) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-37(l) (repealed) or an emergency rule adopted by the department of local government finance under IC 6-1.1-4-36(j) (repealed) or IC 6-1.1-22.5-20.
(28) An emergency rule adopted by the board of the Indiana economic development corporation under IC 5-28-5-8.
(29) A rule adopted by the department of financial institutions under IC 34-55-10-2.5.
(30) A rule adopted by the Indiana finance authority:
(A) under IC 8-15.5-7 approving user fees (as defined in IC 8-15.5-2-10) provided for in a public-private agreement under IC 8-15.5;
(B) under IC 8-15-2-17.2(a)(10):
(i) establishing enforcement procedures; and
(ii) making assessments for failure to pay required tolls;
(C) under IC 8-15-2-14(a)(3) authorizing the use of and establishing procedures for the implementation of the collection of user fees by electronic or other nonmanual means; or
(D) to make other changes to existing rules related to a toll road project to accommodate the provisions of a public-private agreement under IC 8-15.5.
(31) An emergency rule adopted by the board of the Indiana health informatics corporation under IC 5-31-5-8.
(32)
IC 31-27-4-3.
(34) (33) An emergency rule adopted by the Indiana real estate
commission under IC 25-34.1-2-5(15).
(35) (34) A rule adopted by the department of financial
institutions under IC 24-4.4-1-101 and determined necessary to
meet an emergency.
(35) An emergency rule adopted by the department of
homeland security to implement IC 6-3.1-34.
(b) The following do not apply to rules described in subsection (a):
(1) Sections 24 through 36 of this chapter.
(2) IC 13-14-9.
(c) After a rule described in subsection (a) has been adopted by the
agency, the agency shall submit the rule to the publisher for the
assignment of a document control number. The agency shall submit the
rule in the form required by section 20 of this chapter and with the
documents required by section 21 of this chapter. The publisher shall
determine the format of the rule and other documents to be submitted
under this subsection.
(d) After the document control number has been assigned, the
agency shall submit the rule to the publisher for filing. The agency
shall submit the rule in the form required by section 20 of this chapter
and with the documents required by section 21 of this chapter. The
publisher shall determine the format of the rule and other documents
to be submitted under this subsection.
(e) Subject to section 39 of this chapter, the publisher shall:
(1) accept the rule for filing; and
(2) electronically record the date and time that the rule is
accepted.
(f) A rule described in subsection (a) takes effect on the latest of the
following dates:
(1) The effective date of the statute delegating authority to the
agency to adopt the rule.
(2) The date and time that the rule is accepted for filing under
subsection (e).
(3) The effective date stated by the adopting agency in the rule.
(4) The date of compliance with every requirement established by
law as a prerequisite to the adoption or effectiveness of the rule.
(g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6,
IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in
subsections (j), (k), and (l), a rule adopted under this section expires
not later than ninety (90) days after the rule is accepted for filing under
subsection (e). Except for a rule adopted under subsection (a)(13),
(a)(24), (a)(25), or (a)(27), the rule may be extended by adopting
another rule under this section, but only for one (1) extension period.
The extension period for a rule adopted under subsection (a)(28) may
not exceed the period for which the original rule was in effect. A rule
adopted under subsection (a)(13) may be extended for two (2)
extension periods. Subject to subsection (j), a rule adopted under
subsection (a)(24), (a)(25), or (a)(27) may be extended for an unlimited
number of extension periods. Except for a rule adopted under
subsection (a)(13), for a rule adopted under this section to be effective
after one (1) extension period, the rule must be adopted under:
(1) sections 24 through 36 of this chapter; or
(2) IC 13-14-9;
as applicable.
(h) A rule described in subsection (a)(8), (a)(12), or (a)(29) expires
on the earlier of the following dates:
(1) The expiration date stated by the adopting agency in the rule.
(2) The date that the rule is amended or repealed by a later rule
adopted under sections 24 through 36 of this chapter or this
section.
(i) This section may not be used to readopt a rule under IC 4-22-2.5.
(j) A rule described in subsection (a)(24) or (a)(25) expires not later
than January 1, 2006.
(k) A rule described in subsection (a)(28) expires on the expiration
date stated by the board of the Indiana economic development
corporation in the rule.
(l) A rule described in subsection (a)(30) expires on the expiration
date stated by the Indiana finance authority in the rule.
(m) A rule described in subsection (a)(5) or (a)(6) expires on the
date the department is next required to issue a rule under the statute
authorizing or requiring the rule.
Chapter 34. Transportation and Logistics Tax Credit
Sec. 1. As used in this chapter, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
(2) partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
Sec. 2. As used in this chapter, "qualified expenditure" means
an expenditure described in section 6 of this chapter.
Sec. 3. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 27-1-18-2 (the insurance premiums tax); and
(3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 4. As used in this chapter, "taxpayer" means an individual,
a corporation, a pass through entity, or other entity that has state
tax liability.
Sec. 5. (a) A taxpayer is entitled to a credit against the
taxpayer's state tax liability in a taxable year for making a
qualified expenditure. An expenditure that:
(1) is used by the taxpayer for a special tax benefit or tax
credit or other economic development incentive under any
other law; or
(2) pertains to property owned by the taxpayer that:
(A) receives any other special tax benefit or economic
development incentive under any other law, including a
property tax abatement, deduction, or credit; or
(B) will be located in an allocation area;
is not a qualified expenditure and may not be used as the basis for
the credit under this chapter.
(b) The amount of a taxpayer's credit under this chapter for a
taxable year equals thirty-five percent (35%) of the qualified
expenditure made by the taxpayer during the taxable year.
Sec. 6. For purposes of this chapter, a qualified expenditure is
an expenditure for one (1) or more of the following purposes:
(1) 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.
A taxpayer must obtain the certification of the department of
homeland security (IC 10-19-2-1) that an expenditure under
this subdivision is a qualified expenditure for purposes of this
chapter before claiming the tax credit. The department of
homeland security in consultation with the department shall
adopt rules under IC 4-22-2, including emergency rules under
IC 4-22-2-37.1, to implement a certification process for
purposes of this subdivision.
(2) 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.
(3) Improving the transportation of goods on Indiana
highways, limited to the following:
(A) Upgrading to 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 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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, conveyor, 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.
Sec. 7. (a) If the amount of the credit under this chapter for a
taxpayer in a taxable year exceeds the taxpayer's state tax liability
for that taxable year, the taxpayer may carry the excess over to the
following taxable years. However, the carryover period may not
exceed nine (9) consecutive taxable years, beginning with the
taxable year after the taxable year in which the taxpayer makes the
qualified expenditure. The amount of the credit carryover from a
taxable year shall be reduced to the extent that the carryover is
used by the taxpayer to obtain a credit under this chapter for any
subsequent taxable year.
(b) A taxpayer is not entitled to a refund or carryback of any
unused credit.
(c) A taxpayer may not assign, convey, sell, or otherwise
transfer the credit to any other taxpayer.
Sec. 8. If a pass through entity does not have state tax liability
against which the tax credit may be applied, a shareholder or
partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder or partner is entitled.
Sec. 9. To receive the credit provided by this chapter, a taxpayer
must claim the credit in the manner prescribed by the department.
The taxpayer shall submit to the department all information that
the department determines is necessary for the calculation of the
credit and for the determination of whether an expenditure is a
qualified expenditure.
(b) This SECTION expires January 1, 2014.
