CHAPTER 15. TAX CREDIT FOR COMPUTER EQUIPMENT DONATIONS
IC 6-3.1-15
Chapter 15. Tax Credit for Computer Equipment Donations
IC 6-3.1-15-1
"Buddy system project" defined
Sec. 1. As used in this chapter, "buddy system project" has themeaning set forth in IC 20-20-15-4(1)(A).
As added by P.L.43-1992, SEC.11. Amended by P.L.1-2005, SEC.95.
IC 6-3.1-15-2
"Qualified computer equipment" defined
Sec. 2. As used in this chapter, "qualified computer equipment"means computer equipment, including hardware and software,specified by the state board under section 11 of this chapter.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-3
"Service center" defined
Sec. 3. As used in this chapter, "service center" means aneducational service center established under IC 20-20-1.
As added by P.L.43-1992, SEC.11. Amended by P.L.1-2005, SEC.96.
IC 6-3.1-15-4
"State board" defined
Sec. 4. As used in this chapter, "state board" refers to the Indianastate board of education.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-5
"State tax liability" defined
Sec. 5. As used in this chapter, "state tax liability" means ataxpayer's total tax liability 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 underIC 6-3.1-1-2 are to be applied before the credit provided by thischapter.
As added by P.L.43-1992, SEC.11. Amended by P.L.70-1993, SEC.7;P.L.192-2002(ss), SEC.107.
IC 6-3.1-15-6
"Taxpayer" defined
Sec. 6. As used in this chapter, "taxpayer" means any person,corporation, limited liability company, partnership, or entity that hasany state tax liability.
As added by P.L.43-1992, SEC.11. Amended by P.L.8-1993, SEC.90.
IC 6-3.1-15-7
Taxpayers entitled to credit Sec. 7. A taxpayer that has donated during the taxable yearqualified computer equipment to a service center is entitled to a taxcredit as provided in section 8 of this chapter.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-8
Amount of credit
Sec. 8. The department shall grant a tax credit of one hundreddollars ($100) against the state tax liability of a taxpayer whoqualifies for the tax credit under this chapter for each unit ofqualified computer equipment that is donated under section 7 of thischapter.
As added by P.L.43-1992, SEC.11. Amended by P.L.62-1997, SEC.2.
IC 6-3.1-15-9
Applications for credit
Sec. 9. A taxpayer that desires to claim a tax credit under thischapter shall file with the department, in the form that the departmentprescribes, a tax credit application that includes a certification from:
(1) the applicant stating that the applicant is a taxpayer; and
(2) a service center, that is issued under section 11 of thischapter, stating that the applicant donated qualified computerequipment in accordance with this chapter.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-10
Minimum standards for equipment; certification
Sec. 10. The state board shall, in consultation with the corporationfor educational technology if the corporation is established underIC 20-20-15-3, establish minimum standards for qualified computerequipment. Upon receipt of computer equipment, a service centershall promptly inspect the equipment. If the computer equipmentmeets the minimum standards established by the state board, theservice center shall accept the computer equipment as qualifiedcomputer equipment and shall, subject to section 11(b) of thischapter, promptly send a certification to the computer equipmentowner for the tax credit available under this chapter.
As added by P.L.43-1992, SEC.11. Amended by P.L.1-2005, SEC.97.
IC 6-3.1-15-11
Remittance of tax credits; defective equipment
Sec. 11. (a) Before September 1 of each year, the department shallsend to the state board a statement of the aggregate tax creditsapproved by the department for the preceding state fiscal year, listingthe amount of credits approved from each service center. Withinthirty (30) days following receipt of the department's notice, the stateboard shall direct each service center to remit to the department theentire amount of credits specified in the department's notice andattributable to the service center. Each service center shall remit thepayment required under this section to the department within thirty
(30) days after receipt of the state board notice.
(b) If a service center determines within thirty (30) days of receiptof a unit of computer equipment that the equipment is defective orotherwise fails to meet the minimum standards for qualifiedcomputer equipment, the service center may refuse to issue a taxcredit certification under section 10 of this chapter. If the servicecenter elects not to issue a tax credit certification for a particular unitof computer equipment, the service center shall promptly notify thedonor of the equipment and allow the donor thirty (30) days toretrieve the equipment. Upon the expiration of the thirty (30) dayperiod, the service center may retain the equipment for any purpose.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-12
Sale of equipment
Sec. 12. (a) A service center may sell qualified computerequipment received by taxpayers under this chapter only to thefollowing:
(1) Public or private elementary or secondary schools.
(2) The parent or guardian of a student enrolled in grade 1through 12 that is a participant in a buddy system project orenrolled in a school's computer education program.
(b) A service center may sell qualified computer equipment underthis chapter to schools, parents, or guardians located outside theservice center's normal service area, but not outside Indiana.
(c) Before a public or private elementary school may purchasequalified computer equipment from a service center, the school mustsubmit a statement to the service center detailing the following:
(1) The school's computer education program or plannedcomputer education program.
(2) The school's planned use of the qualified computerequipment, including the goals of the plan, the implementationof the plan, and the number of students that will be served withthe qualified computer equipment.
(d) A school that purchases qualified computer equipment froma service center may sell the qualified computer equipment to aparent or guardian of a child who is enrolled in the school's computereducation program, including a buddy system project.
(e) Before a parent or guardian of a student may purchasequalified computer equipment from a service center, the parent orguardian must present proof, in the form approved by the servicecenter, that:
(1) the child of the parent or guardian is a participant in a buddysystem project or enrolled in a school's computer educationprogram; and
(2) the qualified computer equipment will be used by the childfor an educational purpose.
As added by P.L.43-1992, SEC.11. Amended by P.L.62-1997, SEC.3.
IC 6-3.1-15-13 Price for resale of equipment
Sec. 13. A service center shall establish a price for the resale ofqualified computer equipment that equals:
(1) the amount of the service center's payment to the departmentunder section 11 of this chapter in the preceding year and asanticipated for the current year; and
(2) the service center's actual operating expenses in purchasing,inspecting, testing, refurbishing, and reselling qualifiedcomputer equipment under this chapter, including a reasonableallowance for operating overhead.
As added by P.L.43-1992, SEC.11. Amended by P.L.1-1993, SEC.40;P.L.62-1997, SEC.4.
IC 6-3.1-15-14
Projections of anticipated demand for equipment; refusal to issuecredit
Sec. 14. (a) Each service center shall develop a two (2) yearprojection of the anticipated demand for the purchase of qualifiedcomputer equipment. Each service center shall submit the servicecenter's projection to the state board by January 10 of each calendaryear.
(b) A service center may refuse to issue tax credit certificationunder section 10 of this chapter when the demand for qualifiedcomputer equipment, determined under subsection (a), is equal to orless than the anticipated supply of qualified computer equipment.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-15
Notification of schools
Sec. 15. Before July 1 of each year, the state department ofeducation shall notify each school that complies with the minimuminstructional days required by IC 20-30-2-3 for the preceding schoolyear that the program created by this chapter exists, including howthe school may participate in the program.
As added by P.L.43-1992, SEC.11. Amended by P.L.1-2005, SEC.98.
IC 6-3.1-15-16
Rules
Sec. 16. The state board shall adopt rules under IC 4-22-2 toimplement this chapter, including rules that:
(1) assure equitable allocation and nondiscrimination in thedistribution of qualified computer equipment to authorizedpurchasers under section 12(a) of this chapter;
(2) require inter-regional cooperation among the service centersin complying with this chapter; and
(3) provide for annual audits of the service centers by the stateboard to determine compliance with this chapter.
As added by P.L.43-1992, SEC.11.
IC 6-3.1-15-17 Annual reports
Sec. 17. The state board shall perform an annual review of theprogram implemented by this chapter and before September 1 ofeach year file an annual report with the budget committee for reviewby the budget committee and approval of the budget agency. Thereport must include the following:
(1) A listing of the schools that participated in the programincluding the school's location, whether the school is a privateor public school, whether the school participates in a buddysystem project, and a description of the demographics of thestudents of each school.
(2) The board's opinion regarding the success of the program.
(3) The amount of tax credits granted to donors.
As added by P.L.43-1992, SEC.11. Amended by P.L.62-1997, SEC.5.