business; or
(2) is the successor to part or all of the assets or business
operations of another corporation or pass through entity that
conducted business operations in Indiana in the same line of
business;
as determined by the department.
Sec. 4. 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 before the application of any other credit against state
tax liability to which the taxpayer is entitled, including any credit
described in IC 6-3.1-1-2.
Sec. 5. As used in this chapter, "tax credit" refers to a tax credit
against state tax liability granted by this chapter before the
application of any other tax credits to which a new Indiana
business might be eligible.
Sec. 6. As used in this chapter, "taxpayer" means a person,
corporation, partnership, or other entity that has any state tax
liability.
Sec. 7. Subject to this chapter, a new Indiana business is entitled
to a tax credit against the state tax liability imposed on the new
Indiana business in a taxable year that includes any of the first
twenty-four (24) months after the new Indiana business begins
doing business in Indiana if the new Indiana business elects to
comply with section 11 of this chapter in the manner specified by
the department.
Sec. 8. The amount of the tax credit available under this chapter
is equal to the following:
(1) Fifty percent (50%) of the state tax liability imposed on
the new Indiana business for the taxable year that begins and
ends within the first twenty-four (24) months in which the new
Indiana business operated in Indiana.
(2) Fifty percent (50%) of the state tax liability imposed on
the new Indiana business for the taxable year that begins
before or ends after the first twenty-four (24) months in which
the new Indiana business operated in Indiana, multiplied by
a fraction. The numerator of the fraction is the number of
consecutive days in which the new Indiana business operated
in Indiana during the taxable year, including any intervening
weekends and holidays. The denominator of the fraction is
three hundred sixty-five (365).
Sec. 9. If a pass through entity does not have state tax liability
against which a tax credit may be applied, a shareholder, partner,
fiduciary, or member of the pass through entity is entitled to a tax
credit equal to:
(1) the tax credit to which the pass through entity would be
entitled under this chapter for the taxable year if the pass
through entity were a taxpayer; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, fiduciary, or
member is entitled.
Sec. 10. To qualify for a tax credit under this chapter, a
taxpayer must claim the tax credit and demonstrate compliance
with section 11 of this chapter on the taxpayer's annual state tax
return or returns in the manner prescribed by the department. The
taxpayer shall maintain the records required by the department
for the period specified by the department to substantiate the
taxpayer's eligibility for the credit.
Sec. 11. To qualify for a tax credit under this chapter for a
particular taxable year, a new Indiana business must elect in the
manner specified by the department to pay an amount equal to
twenty-five percent (25%) of the amount of the tax credit for that
taxable year as bonus compensation to the employees of the new
Indiana business who were employed in Indiana during the taxable
year according to a formula that results in each bonus being an
amount that is the lesser of the following:
(1) An amount proportional to the number of:
(A) hours that the employee worked; or
(B) other units of pay for which the employee worked;
for the new Indiana business during the taxable year, relative
to the total number of hours that all employees worked or
other units of pay for which all employees worked for the new
Indiana business in Indiana during the taxable year.
(2) Three thousand dollars ($3,000).
However, less than twenty-five percent (25%) of the amount of the
tax credit may be devoted to bonuses to the extent that the total
amount is not needed to implement the bonus formula specified in
subdivisions (1) and (2). The bonuses must be paid not later than
the date the final tax or informational return for the taxable year
is due, including any extension period.".