CHAPTER 31. CREDIT FOR OFFERING HEALTH BENEFIT PLANS
IC 6-3.1-31
Chapter 31. Credit for Offering Health Benefit Plans
IC 6-3.1-31-1
Application of chapter
Sec. 1. This chapter applies to an employer that does not offercoverage for health care services under a self-funded health benefitplan that complies with the federal Employee Retirement IncomeSecurity Act of 1974 (29 U.S.C. 1001 et seq.).
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-2
"Eligible taxpayer"
Sec. 2. As used in this chapter, "eligible taxpayer" means ataxpayer that did not provide health insurance to the taxpayer'semployees in the taxable year immediately preceding the first taxableyear for which the taxpayer claims a credit under this chapter.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-3
"Full-time employee"
Sec. 3. As used in this chapter, "full-time employee" means anemployee who is normally scheduled to work at least thirty (30)hours each week.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-4
"Health benefit plan"
Sec. 4. (a) As used in this chapter, "health benefit plan" meanscoverage for health care services provided under:
(1) an insurance policy that provides one (1) or more of thetypes of insurance described in Class 1(b) or Class 2(a) ofIC 27-1-5-1; or
(2) a contract with a health maintenance organization forcoverage of basic health care services under IC 27-13;
that satisfies the requirements of Section 125 of the Internal RevenueCode.
(b) The term does not include the following:
(1) Accident only, credit, dental, vision, Medicare supplement,long term care, or disability income insurance.
(2) Coverage issued as a supplement to liability insurance.
(3) Automobile medical payment insurance.
(4) A specified disease policy issued as an individual policy.
(5) A limited benefit health insurance policy issued as anindividual policy.
(6) A short term insurance plan that:
(A) may not be renewed; and
(B) has a duration of not more than six (6) months.
(7) A policy that provides a stipulated daily, weekly, or monthlypayment to an insured during hospital confinement, without
regard to the actual expense of the confinement.
(8) Worker's compensation or similar insurance.
(9) A student health insurance policy.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-5
"Pass through entity"
Sec. 5. As used in this chapter, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross incometax under IC 6-3-2-2.8(2);
(2) partnership;
(3) limited liability company; or
(4) limited liability partnership.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-6
"State tax liability"
Sec. 6. As used in this chapter, "state tax liability" means ataxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
(2) IC 6-5.5 (financial institutions tax); and
(3) IC 27-1-18-2 (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.218-2007, SEC.5.
IC 6-3.1-31-7
"Taxpayer"
Sec. 7. As used in this chapter, "taxpayer" means an individual orentity that has state tax liability.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-8
Tax credit
Sec. 8. (a) An eligible taxpayer that, after December 31, 2006,makes health insurance available to the eligible taxpayer's employeesand their dependents through at least one (1) health benefit plan isentitled to a credit against the taxpayer's state tax liability for the firsttwo (2) taxable years in which the taxpayer makes the health benefitplan available if the following requirements are met:
(1) An employee's participation in the health benefit plan is atthe employee's election.
(2) If an employee chooses to participate in the health benefitplan, the employee may pay the employee's share of the cost ofthe plan using a wage assignment authorized under IC 22-2-6-2.
(b) The credit allowed in each of the first two (2) taxable yearsdescribed in subsection (a) equals the lesser of:
(1) two thousand five hundred dollars ($2,500); or
(2) fifty dollars ($50) multiplied by the number of employees
enrolled in the health benefit plan during the taxable year.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-9
Employer payment or reimbursement on equal basis
Sec. 9. (a) An employer may pay or provide reimbursement for allor part of the cost of a health benefit plan made available undersection 8 of this chapter.
(b) An employer that pays or provides reimbursement undersubsection (a) shall pay or provide reimbursement on an equal basisfor all full-time employees who elect to participate in the healthbenefit plan.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-10
Carryover; no refund of unused credit
Sec. 10. (a) If the amount determined under section 8 of thischapter for a taxpayer in a taxable year exceeds the taxpayer's statetax liability for that taxable year, the taxpayer may carry the excessover to the following taxable years. The amount of the creditcarryover from a taxable year shall be reduced to the extent that thecarryover is used by the taxpayer to obtain a credit under this chapterfor any subsequent taxable year. A taxpayer is not entitled to acarryback.
(b) A taxpayer is not entitled to a refund of any unused credit.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-11
Use of pass through entity credit
Sec. 11. If a pass through entity does not have state income taxliability against which the tax credit may be applied, a shareholderor partner of the pass through entity is entitled to a tax credit equalto:
(1) the tax credit determined for the pass through entity for thetaxable year; multiplied by
(2) the percentage of the pass through entity's distributiveincome to which the shareholder or partner is entitled.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-12
Claiming credit
Sec. 12. To receive the credit provided by this chapter, a taxpayermust claim the credit on the taxpayer's state tax return or returns inthe manner prescribed by the department. The taxpayer must submitto the department all information that the department determines isnecessary to calculate the credit provided by this chapter and todetermine the taxpayer's eligibility for the credit.
As added by P.L.218-2007, SEC.5.
IC 6-3.1-31-13 Continuation of health benefit plan
Sec. 13. (a) A taxpayer claiming a credit under this chapter shallcontinue to make health insurance available to the taxpayer'semployees through a health benefit plan for at least twenty-four (24)consecutive months beginning on the day after the last day of thetaxable year in which the taxpayer first offers the health benefit plan.
(b) If the taxpayer terminates the health benefit plan before theexpiration of the period required under subsection (a), the taxpayershall repay the department the amount of the credit received undersection 8 of this chapter.
As added by P.L.218-2007, SEC.5.