CHAPTER 2. TEACHER SUMMER EMPLOYMENT CREDITS
IC 6-3.1-2
Chapter 2. Teacher Summer Employment Credits
IC 6-3.1-2-1
Definitions
Sec. 1. As used in this chapter, the following terms have thefollowing meanings:
(1) "Eligible teacher" means a teacher:
(A) certified in a shortage area by the department ofeducation established by IC 20-19-3-1; and
(B) employed under contract during the regular school termby a school corporation in a shortage area.
(2) "Qualified position" means a position that:
(A) is relevant to the teacher's education in a shortage area;and
(B) has been approved by the Indiana state board ofeducation under section 6 of this chapter.
(3) "Regular school term" means the period, other than theschool summer recess, during which a teacher is required toperform duties assigned to the teacher under a teachingcontract.
(4) "School corporation" means any corporation authorized bylaw to establish public schools and levy taxes for theirmaintenance.
(5) "Shortage area" means the subject areas of mathematics andscience and any other subject area designated as a shortage areaby the Indiana state board of education.
(6) "State income tax liability" means a taxpayer's total incometax liability incurred under IC 6-3 and IC 6-5.5, as computedafter application of credits that under IC 6-3.1-1-2 are to beapplied before the credit provided by this chapter.
As added by P.L.51-1984, SEC.1. Amended by P.L.20-1984, SEC.5;P.L.46-1992, SEC.1; P.L.192-2002(ss), SEC.84; P.L.1-2005,SEC.94; P.L.246-2005, SEC.72.
IC 6-3.1-2-2
Credit for employment of eligible teacher
Sec. 2. Subject to the limitation established in sections 4 and 5 ofthis chapter, a taxpayer that employs an eligible teacher in a qualifiedposition during a school summer recess is entitled to a tax creditagainst his state income tax liability as provided for under section 3of this chapter.
As added by P.L.51-1984, SEC.1.
IC 6-3.1-2-3
Amount of credit
Sec. 3. A taxpayer is entitled to a credit for a taxable year for eacheligible teacher employed under section 2 of this chapter in anamount equal to the lesser of:
(1) two thousand five hundred dollars ($2,500); or (2) fifty percent (50%) of the amount of compensation paid tothe eligible teacher by the taxpayer during the taxable year.
However, the aggregate credits that a taxpayer may receive for aparticular taxable year under this chapter may not exceed thetaxpayer's state income tax liability for that taxable year.
As added by P.L.51-1984, SEC.1.
IC 6-3.1-2-4
Disallowance of credit; employer's duty
Sec. 4. (a) The department shall disallow a credit provided underthis chapter with respect to employment of an eligible teacher duringa school summer recess if the teacher discontinues his teachingduties for the purpose of becoming employed by the taxpayer duringthe regular school term that immediately follows the recess. Thetaxpayer shall, within thirty (30) days after the eligible teacher haddiscontinued his teaching duties, notify the department of that factand pay to the department the amount of the credit previouslyallowed.
(b) A taxpayer that fails to notify and pay the department asprescribed in subsection (a) is liable for interest and a penalty on theamount of the credit in the amounts established in IC 6-8.1-10-1 andIC 6-8.1-10-2.1.
As added by P.L.51-1984, SEC.1. Amended by P.L.1-1991, SEC.53.
IC 6-3.1-2-5
Application of credit against taxes owed; order
Sec. 5. (a) A credit to which a taxpayer is entitled under thischapter shall be applied against the taxpayer's adjusted gross incometax liability for the taxable year.
(b) A taxpayer that is subject to the financial institutions tax mayapply the credit provided by this chapter against the taxpayer'sfinancial institutions tax liability for the taxable year.
As added by P.L.51-1984, SEC.1. Amended by P.L.347-1989(ss),SEC.10; P.L.192-2002(ss), SEC.85.
IC 6-3.1-2-6
Qualified position certificate; applications; determination ofqualified position; issuance; maximum amount of credit; aggregateamount of credits
Sec. 6. (a) A taxpayer who seeks to obtain the credit provided bythis chapter must file an application for a qualified positioncertificate for that year with the state board of education. The boardshall prescribe the form and contents of the application.
(b) Upon receipt of an application filed under subsection (a), thestate board of education shall determine whether the position inquestion is a qualified position. The board shall also determine theamount of compensation that the taxpayer intends to pay to theeligible teacher in the qualified position during the school summerrecess, or the parts of the school summer recesses that fall within thetaxable year with respect to which the taxpayer is applying for a
certificate. If the board approves the application, it shall issue aqualified position certificate to the taxpayer for the taxable year. Thecertificate shall indicate the maximum amount of credit to which thetaxpayer is entitled for the taxable year under this chapter withrespect to the eligible teacher. That amount is the lesser of:
(1) two thousand five hundred dollars ($2,500); or
(2) fifty percent (50%) of the amount of compensation that thetaxpayer intends to pay to the eligible teacher in the qualifiedposition during the school summer recess, or the parts of theschool summer recesses that fall within the taxable year.
The taxpayer shall attach the certificate to the income tax return thatis filed for the taxable year for which the credit is claimed.
(c) The state board of education shall record the time of filing ofeach application for a qualified position certificate, and shall approvethe applications, if they otherwise qualify, in the chronological orderin which they are filed. However, the board may not approve anyapplication in a state fiscal year if the aggregate amount of allowablecredits indicated on qualified position certificates issued in the fiscalyear exceeds five hundred thousand dollars ($500,000).
As added by P.L.51-1984, SEC.1. Amended by P.L.20-1984, SEC.6.
IC 6-3.1-2-7
Rules; qualified positions
Sec. 7. Notwithstanding IC 6-8.1-3-3, the state board of educationshall adopt rules under IC 4-22-2 for determining which positions arequalified positions.
As added by P.L.51-1984, SEC.1. Amended by P.L.20-1984, SEC.7.