Bill Text: IN SB0352 | 2010 | Regular Session | Introduced
Bill Title: Employer credits for rehiring laid off workers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - First reading: referred to Committee on Tax and Fiscal Policy [SB0352 Detail]
Download: Indiana-2010-SB0352-Introduced.html
Citations Affected: IC 6-3.1-33; IC 22-4-10-8; IC 22-4-25.
Synopsis: Employer credits for rehiring laid off workers. Provides for
a tax credit for a taxpayer that employs an individual laid off from a
place of employment located in Indiana. Provides for a credit to an
employer's unemployment insurance experience account for an
employer that reemploys an employee laid off by the employer.
Effective: January 1, 2010 (retroactive); July 1, 2010.
January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Chapter 33. Reemployment Tax Credit
Sec. 1. As used in this chapter, "qualified employee" means an individual who:
(1) is employed by a taxpayer for consideration for at least thirty-five (35) hours each week or renders any other standard of service generally accepted by custom or specified by contract as full-time employment;
(2) after June 30, 2008, was separated from employment at a place of employment located in Indiana;
(3) after June 30, 2008, received or was eligible to receive unemployment benefits under IC 22-4; and
(4) was employed or reemployed by the taxpayer after December 31, 2009, and before January 1, 2012.
Sec. 2. 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. 3. As used in this chapter, "taxpayer" means a person,
corporation, partnership, or other entity that has any state tax
liability.
Sec. 4. (a) Except as provided in subsection (b), 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,
2009, and before January 1, 2012, in an amount equal to the lesser
of the following:
(1) Ten percent (10%) of the wages paid to a qualified
employee by the taxpayer during the taxable year.
(2) Seven thousand dollars ($7,000).
(b) The maximum amount of tax credits that may be allowed
under this chapter during a state fiscal year for all taxpayers is
seven million dollars ($7,000,000). If the maximum amount of tax
credits claimed under this chapter in any taxable year exceeds the
allowable maximum, the amount of the tax credit must be prorated
among all taxpayers that qualify for a tax credit under this
chapter.
Sec. 5. If a pass through entity is entitled to a credit under
section 4 of this chapter but does not have state tax liability against
which the tax credit may be applied, a shareholder, partner, or
member 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, partner, or member is
entitled.
Sec. 6. (a) If the credit provided by this chapter exceeds the
taxpayer's state tax liability for the taxable year for which the
credit is first claimed, the excess may be carried forward to
succeeding taxable years and used as a credit against the
taxpayer's state tax liability during those taxable years. Each time
that the credit is carried forward to a succeeding taxable year, the
credit is to be reduced by the amount that was used as a credit
during the immediately preceding taxable year.
(b) A taxpayer is not entitled to any carryback or refund of any
unused credit.
Sec. 7. (a) To receive the credit provided by this chapter, a
taxpayer must:
(1) submit to the department with the taxpayer's state tax
return or returns information sufficient as determined by the
department to establish that an employee for whom a tax
credit is claimed is a qualified employee; and
(2) claim the credit on the taxpayer's state tax return or
returns in the manner prescribed by the department.
(b) The taxpayer shall submit to the department all information
that the department determines is necessary for the calculation of
the credit provided by this chapter.
Sec. 8. This chapter expires January 1, 2013.
(1) an employer:
(A) that is subject to this article for wages paid during a calendar year; and
(B) whose contribution rate for the calendar year is determined under this chapter, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3; and
(2) calendar years beginning after December 31, 2010, and before January 1, 2013.
(b) As used in this section, "laid off employee" means an individual who:
(1) was separated from employment with an employer described in subsection (a) without:
(A) a recall date; or
(B) a reasonable expectation of future employment or reemployment with the employer;
(2) has applied for or received unemployment benefits under this article; and
(3) on the date the employer described in subdivision (1) makes a reemployment offer, is not employed with another employer.
(c) An employer that, after June 30, 2010, and before July 1, 2012, reemploys a laid off employee is entitled to receive a credit computed under subsection (d) to the employer's experience account.
(d) The employer's credit for rehiring a laid off employee is determined in STEP THREE of the following formula:
STEP ONE: Subtract:
(A) the number of weeks the laid off employee received an unemployment benefit under this article; from
(B) twenty-six (26).
STEP TWO: Determine the greater of the following:
(A) The remainder determined by STEP ONE.
(B) Zero (0).
STEP THREE: Multiply the STEP TWO result by the amount of the weekly unemployment benefit the employee received or was eligible to receive under this article.
(e) The cost of an employer's credit under this section shall not be charged to the experience account of any employer.
(f) This section expires January 1, 2013.
the treasurer of state on requisition drawn by the board directing the
auditor of state to issue the auditor's warrant therefor. Any such warrant
shall be drawn by the state auditor based upon vouchers certified by the
board or the commissioner. The money in this fund is hereby
specifically made available to replace within a reasonable time any
money received by this state pursuant to 42 U.S.C. 502, as amended,
which, because of any action or contingency, has been lost or has been
expended for purposes other than or in amounts in excess of those
approved by the bureau of employment security. The money in this
fund shall be continuously available to the board for expenditures in
accordance with the provisions of this section and shall not lapse at any
time or be transferred to any other fund, except as provided in this
article. Nothing in this section shall be construed to limit, alter, or
amend the liability of the state assumed and created by IC 22-4-28, or
to change the procedure prescribed in IC 22-4-28 for the satisfaction of
such liability, except to the extent that such liability may be satisfied by
and out of the funds of such special employment and training services
fund created by this section.
(b) Subject to section 3 of this chapter, whenever the balance in
the special employment and training services fund exceeds eight
million five hundred thousand dollars ($8,500,000), the board shall
order payment of the amount that exceeds eight million five hundred
thousand dollars ($8,500,000) into the unemployment insurance benefit
fund.
(c) Subject to section 3 of this chapter, the approval of the board,
and the availability of funds, on July 1, 2008, and each subsequent July
1, the commissioner shall release:
(1) one million dollars ($1,000,000) to the state educational
institution established under IC 21-25-2-1 for training provided
to participants in apprenticeship programs approved by the United
States Department of Labor, Bureau of Apprenticeship and
Training;
(2) four million dollars ($4,000,000) to the state educational
institution instituted and incorporated under IC 21-22-2-1 for
training provided to participants in joint labor and management
apprenticeship programs approved by the United States
Department of Labor, Bureau of Apprenticeship and Training;
(3) two hundred fifty thousand dollars ($250,000) for journeyman
upgrade training to each of the state educational institutions
described in subdivisions (1) and (2);
(4) four hundred thousand dollars ($400,000) annually for
training and counseling assistance:
(A) provided by Hometown Plans under 41 CFR 60-4.5; and
(B) approved by the United States Department of Labor, Bureau of Apprenticeship and Training;
to individuals who have been unemployed for at least four (4) weeks or whose annual income is less than twenty thousand dollars ($20,000); and
(5) three hundred thousand dollars ($300,000) annually for training and counseling assistance provided by the state institution established under IC 21-25-2-1 to individuals who have been unemployed for at least four (4) weeks or whose annual income is less than twenty thousand dollars ($20,000) for the purpose of enabling those individuals to apply for admission to apprenticeship programs offered by providers approved by the United States Department of Labor, Bureau of Apprenticeship and Training.
(d) The funds released under subsection (c)(4) through (c)(5):
(1) shall be considered part of the amount allocated under section 2.5 of this chapter; and
(2) do not limit the amount that an entity may receive under section 2.5 of this chapter.
(e) Each state educational institution described in subsection (c) is entitled to keep ten percent (10%) of the funds released under subsection (c) for the payment of costs of administering the funds. On each June 30 following the release of the funds, any funds released under subsection (c) not used by the state educational institutions under subsection (c) shall be returned to the special employment and training services fund.
(b) Subject to section 3 of this chapter, the commissioner may allocate an amount not to exceed two million dollars ($2,000,000) annually from the fund to establish reemployment training accounts to provide training and reemployment services to department employees dislocated by:
(1) a reduction of funding for;
(2) a centralization or decentralization of; or
(3) the implementation of a more efficient technology or service delivery method in connection with;
the programs and services provided under this article.
(1) are not otherwise eligible for training and counseling assistance under any other program; and
(2) are not participating in programs that duplicate those programs described in section 1(e) of this chapter.
Priority shall be granted to training or counseling persons who are members of a minority group (as defined by IC 4-13-16.5-1). The training and counseling assistance programs funded by this section must be approved by the department.
(b) This section expires December 31, 2012.
(b) On August 1, 2011, and August 1, 2012, the commissioner shall transfer to the treasurer of state for deposit into the state general fund the lesser of the following amounts:
(1) The amount of tax credits claimed under IC 6-3.1-33 in a taxable year ending in the most recently completed state fiscal year.
(2) Seven million dollars ($7,000,000).
(c) The transfer described in subsection (b) takes precedence over any other payment authorized or required by this chapter, except for a payment required by federal law.
(d) This section expires January 1, 2013.
