Bill Text: IN SB0321 | 2012 | Regular Session | Amended
Bill Title: Transportation and logistics income tax credit.
Sponsorship: Slight Partisan Bill (Republican 4-2)
Status: (Engrossed - Dead) 2012-02-20 - Referred to Committee on Ways and Means pursuant to House Rule 127 [SB0321 Detail]
Download: Indiana-2012-SB0321-Amended.html
Citations Affected: IC 6-3.1; noncode.
Synopsis: Transportation and logistics income tax credit. Provides an
income tax credit for new expenditures made before January 1, 2019,
by a taxpayer for new expenditures made by a taxpayer for making an
improvement to real property that is related to constructing a new, or
modernizing an existing, multimodal transportation facility. Provides
that the amount of the credit for a taxable year is equal to: (1) 25%;
multiplied by (2) the amount of the qualified expenditures made by the
taxpayer during the taxable year minus the average annual qualified
expenditures made by the taxpayer during the immediately preceding
two years. 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 carry over any unused credit for nine years. Provides that
the credit may not be refunded, carried back, or transferred to another
taxpayer. Limits the credit to $10,000,000 for each state fiscal year.
Requires the department of state revenue to annually report to the state
budget committee concerning the use of the credit, including summary
information and the name and address of each taxpayer claiming the
credit and the credit amount claimed by each taxpayer.
Effective: January 1, 2013.
January 5, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
January 25, 2012, amended, reported favorably _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 34. Transportation and Logistics Tax Credit
Sec. 1. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a trust;
(4) a limited liability company; or
(5) a 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 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums 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 another entity that has state tax liability.
Sec. 5. (a) Subject to the limit on the annual amount of credits granted under section 9 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability in a taxable year for making new qualified expenditures before January 1, 2019.
(b) The amount of new qualified expenditures made by a taxpayer during the taxable year is the difference of:
(1) the qualified expenditures made by the taxpayer during the taxable year; minus
(2) the average annual qualified expenditures made by the taxpayer during the two (2) taxable years immediately preceding the taxable year for which the credit is being claimed.
However, if the qualified expenditures for the earlier year of the two (2) year average is zero (0) and the taxpayer has not claimed the credit for a year that precedes that year, the taxpayer shall, for purposes of subdivision (2), subtract only the amount of the qualified expenditures made during the taxable year immediately preceding the taxable year for which the credit is being claimed.
(c) The amount of a taxpayer's credit under this chapter for a taxable year equals twenty-five percent (25%) of the new qualified expenditures made by the taxpayer during the taxable year.
Sec. 6. For purposes of this chapter, a qualified expenditure is an expenditure for making an improvement to real property located in Indiana that is related to constructing a new, or modernizing an existing, multimodal transportation facility that increases efficiency in the intermodal transportation of goods.
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 is first granted the credit. 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. (a) The total amount of credits allowed under this
chapter may not exceed in the aggregate ten million dollars
($10,000,000) for all taxpayers per state fiscal year.
(b) Any person that desires to claim a tax credit provided in this
chapter shall file with the department, in the form that the
department may prescribe, an application:
(1) stating the amount of the new qualified expenditures that
the person proposes to make that would qualify for a tax
credit;
(2) stating the amount sought to be claimed as a credit; and
(3) identifying whether the credit will be claimed during the
state fiscal year in which the application is filed or the
immediately succeeding state fiscal year.
(c) The department shall record the time of filing of each
application for a credit under this chapter and shall, except as
provided in subsection (d), grant the credit to the taxpayer in the
chronological order in which the application is filed in the state
fiscal year, if the taxpayer's proposed new qualified expenditures
and the taxpayer otherwise qualify for a credit under this chapter.
The department shall promptly notify an applicant whether, or the
extent to which, the tax credit is allowable in the state fiscal year
proposed by the taxpayer.
(d) If the total credits approved under this section, including
carryover credits approved for a previous state fiscal year, equal
the maximum amount allowable in the state fiscal year, an
application for the credit that is filed later for that same state fiscal
year may not be approved. However, if an applicant for which a
credit has been approved fails to claim the credit applied for, an
amount equal to the credit previously applied for but not claimed
may be allowed to the next eligible applicant or applicants until the
total amount has been allowed.
(e) To receive the credit provided by this chapter, a taxpayer
must have an approved application and 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, for the determination
of whether an expenditure is a new qualified expenditure, and for
the department to fulfill the reporting requirements of this
chapter.
Sec. 10. The department shall report, not later than December
15 each year, to the budget committee concerning the use of the
credit under this chapter. The report must include the following
with regard to the previous state fiscal year:
(1) Summary information regarding the taxpayers and the use
of the credit, including the amount of credits approved, the
number of taxpayers applying for the credit and claiming the
credit, the number of employees who are employed in Indiana
by the taxpayers claiming the credit, the amount and type of
new qualified expenditures for which the credit was granted,
the total dollar amount of new credits claimed and the
average amount of the credit claimed per taxpayer, the
amount of credits to be carried forward to a subsequent
taxable year, and the percentage of the total credits claimed
as compared to the total adjusted gross income of all the
taxpayers claiming the credit.
(2) The name and address of each taxpayer claiming the credit
and the amount of the credit applied for by and granted to
each taxpayer.
(b) This SECTION expires January 1, 2015.
