Bill Text: IN SB0504 | 2013 | Regular Session | Introduced
Bill Title: Tax credit for hiring returning veterans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-14 - First reading: referred to Committee on Tax and Fiscal Policy [SB0504 Detail]
Download: Indiana-2013-SB0504-Introduced.html
Citations Affected: IC 6-3.1-34.
Synopsis: Tax credit for hiring returning veterans. Provides a tax
credit against state tax liability each taxable year to an employer who
hires an eligible returning veteran. Specifies that the amount of the
credit is $1,000 for each eligible returning veteran the employer hires
who works 2,000 hours during the taxable year. Prorates the employer's
credit if the employee works less than 2,000 hours during the taxable
year.
Effective: July 1, 2013.
January 14, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 34. Tax Credit for Hiring Returning Veterans
Sec. 1. This chapter applies only to taxable years beginning after December 31, 2013.
Sec. 2. 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 limited liability company; or
(4) a limited liability partnership.
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 a person, corporation, partnership, or other entity that has any state tax liability.
Sec. 5. (a) As used in this section, "eligible returning veteran" means an individual who was deployed on active duty service in a branch or reserve component of the United States military within the two (2) year period immediately preceding the individual's hire date.
(b) Each taxable year, except as otherwise provided in this section, a taxpayer is entitled to a credit against the taxpayer's state tax liability for each eligible returning veteran the taxpayer hires during the taxable year for employment in Indiana. For each eligible returning veteran hired by the taxpayer during the taxable year for employment in Indiana, the amount of the credit is equal to the product of:
(1) one thousand dollars ($1,000); multiplied by
(2) the lesser of:
(A) a fraction equal to:
(i) the number of hours actually worked by the eligible returning veteran for the taxpayer during the taxable year; divided by
(ii) two thousand (2,000) hours; or
(B) one (1).
(c) A taxpayer that is required to hire or rehire the eligible returning veteran by federal or state law may not claim the credit provided by subsection (b) for the eligible returning veteran.
(d) A taxpayer may not claim the credit provided by subsection (b) for hiring an eligible returning veteran if the taxpayer claims any other credit under this article for hiring the eligible returning veteran.
Sec. 6. If a pass through entity does not have state tax liability for a taxable year but is otherwise entitled to the tax credit provided by this chapter, each shareholder, partner, or member of the pass through entity is entitled to a share of the tax credit equal to:
(1) the amount of 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. 7. (a) If the credit provided by this chapter exceeds a
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
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. The credit
provided by this chapter may be carried forward and applied to
succeeding taxable years for not more than four (4) taxable years
following the first year for which the credit is claimed.
(b) A taxpayer is not entitled to a carryback or refund of any
unused credit under this chapter.
Sec. 8. To receive the tax credit under this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department.
