SB 23-44_ Filed 02/22/2010, 11:29 Pearson


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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 23 be amended to read as follows:

SOURCE: Page 9, line 6; (10)MO002359.9. -->     Page 9, between lines 6 and 7, begin a new paragraph and insert:
SOURCE: IC 6-3.1-33; (10)MO002359.7. -->     "SECTION 7. IC 6-3.1-33 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOW [EFFECTIVE JANUARY 1, 2010 (RETROACTIVE)]:
     Chapter 33. New Employer Tax Credit and Grant
     Sec. 1. This chapter applies to:
        (1) a new Indiana business that initially begins doing business in Indiana; and
        (2) taxable years beginning;
after December 31, 2009.

     Sec. 2. As used in this chapter, "department" refers to the department of state revenue or the department of insurance, whichever is obligated to administer the tax against which a credit is applied.
     Sec. 3. As used in this chapter, "new Indiana business" means a corporation or pass through entity that locates or relocates the operations of a business enterprise in Indiana after December 31, 2009, and employs at least one (1) full-time employee (as defined in IC 6-3.1-13-4) in Indiana during a taxable year for which a tax credit is sought. The term does not include a corporation or pass through entity that:
        (1) is directly or indirectly under common ownership or control with another corporation or pass through entity that conducts business operations in Indiana in the same line of

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.
".
SOURCE: Page 51, line 32.
    Renumber; (10)MO002359.51. -->     Page 51, delete line 32.
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 23 as printed February 19, 2010.)

________________________________________

Representative Pearson


MO002359/DI 51     2010