IC 6-3.1-31.9
    Chapter 31.9. Hoosier Alternative Fuel Vehicle Manufacturer TaxCredit

IC 6-3.1-31.9-1
"Alternative fuel"
    Sec. 1. As used in this chapter, "alternative fuel" means:
        (1) methanol, denatured ethanol, and other alcohols;
        (2) mixtures containing eighty-five percent (85%) or more byvolume of methanol, denatured ethanol, and other alcohols withgasoline or other fuel;
        (3) natural gas;
        (4) liquefied petroleum gas;
        (5) hydrogen;
        (6) coal-derived liquid fuels;
        (7) non-alcohol fuels derived from biological material;
        (8) P-Series fuels;
        (9) electricity; or
        (10) biodiesel or ultra low sulfur diesel fuel.
As added by P.L.223-2007, SEC.4. Amended by P.L.182-2009(ss),SEC.206.

IC 6-3.1-31.9-2
"Alternative fuel vehicle"
    Sec. 2. As used in this chapter, "alternative fuel vehicle" meansany passenger car or light truck with a gross weight of eight thousandfive hundred (8,500) pounds or less that is designed to operate on atleast one (1) alternative fuel.
As added by P.L.223-2007, SEC.4. Amended by P.L.182-2009(ss),SEC.207.

IC 6-3.1-31.9-3
"The corporation"
    Sec. 3. As used in this chapter, "the corporation" means theIndiana economic development corporation established byIC 5-28-3-1.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-4
"Director"
    Sec. 4. As used in this chapter, "director" has the meaning setforth in IC 6-3.1-13-3.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-5
"Highly compensated employee"
    Sec. 5. As used in this chapter, "highly compensated employee"has the meaning set forth in Section 414(q) of the Internal RevenueCode.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-6
"New employee"
    Sec. 6. As used in this chapter, "new employee" has the meaningset forth in IC 6-3.1-13-6.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-7
"Qualified investment"
    Sec. 7. As used in this chapter, "qualified investment" means theamount of a taxpayer's expenditures in Indiana that are reasonableand necessary for the manufacture or assembly of alternative fuelvehicles, including:
        (1) the purchase of new telecommunications, production,manufacturing, fabrication, assembly, finishing, distribution,transportation, or logistical distribution equipment, jigs, dies, orfixtures;
        (2) the purchase of new computers and related equipment;
        (3) costs associated with the modernization of existingtelecommunications, production, manufacturing, fabrication,assembly, finishing, distribution, transportation, or logisticaldistribution facilities;
        (4) onsite infrastructure improvements;
        (5) the construction of new telecommunications, production,manufacturing, fabrication, assembly, finishing, distribution,transportation, or logistical distribution facilities;
        (6) costs associated with retooling existing machinery andequipment;
        (7) costs associated with the construction of special purposebuildings, pits, and foundations; and
        (8) costs associated with the purchase of machinery, equipment,or special purpose buildings used to manufacture or assemblealternative fuel vehicles;
that are certified by the corporation under this chapter as beingeligible for the credit under this chapter.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-8
"State tax liability"
    Sec. 8. 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 (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.223-2007, SEC.4.

IC 6-3.1-31.9-9
"Taxpayer"    Sec. 9. As used in this chapter, "taxpayer" means an individual, acorporation, a partnership, or other entity that has state tax liability.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-10
Purposes of credit awards
    Sec. 10. The corporation may make credit awards under thischapter to:
        (1) foster job creation and higher wages;
        (2) reduce dependency upon energy sources imported into theUnited States; and
        (3) reduce air pollution as the result of the manufacture orassembly of alternative fuel vehicles in Indiana.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-11
Taxpayers entitled to the credit
    Sec. 11. A taxpayer that:
        (1) is awarded a tax credit under this chapter by the corporation;and
        (2) complies with the conditions set forth in this chapter and theagreement entered into by the corporation and the taxpayerunder this chapter;
is entitled to a credit against the taxpayer's state tax liability in ataxable year.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-12
Amount of the credit
    Sec. 12. The total amount of a tax credit claimed for a taxableyear under this chapter is a percentage determined by thecorporation, not to exceed fifteen percent (15%) of the amount of aqualified investment made by the taxpayer in Indiana during thattaxable year. The taxpayer may carry forward any unused credit.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-13
Carry forward of an unused credit
    Sec. 13. (a) A taxpayer may carry forward an unused credit for thenumber of years determined by the corporation, not to exceed nine(9) consecutive taxable years, beginning with the taxable year afterthe taxable year in which the taxpayer makes the qualifiedinvestment.
    (b) The amount that a taxpayer may carry forward to a particulartaxable year under this section equals the unused part of a creditallowed under this chapter.
    (c) A taxpayer may:
        (1) claim a tax credit under this chapter for a qualifiedinvestment; and
        (2) carry forward a remainder for one (1) or more different

qualified investments;
in the same taxable year.
    (d) The total amount of each tax credit claimed under this chaptermay not exceed fifteen percent (15%) of the qualified investment forwhich the tax credit is claimed.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-14
Applying for a credit award
    Sec. 14. A person that proposes a project to manufacture orassemble alternative fuel vehicles that would create new jobs,increase wage levels, or involve substantial capital investment inIndiana may apply to the corporation before the taxpayer makes thequalified investment to enter into an agreement for a tax credit underthis chapter. The corporation shall prescribe the form of theapplication.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-15
Agreements between the corporation and an applicant
    Sec. 15. After receipt of an application, the corporation may enterinto an agreement with the applicant for a credit under this chapterif the corporation determines that all the following conditions exist:
        (1) The applicant's project will raise the total earnings ofemployees of the applicant in Indiana.
        (2) The applicant's project is economically sound and willbenefit the people of Indiana by increasing opportunities foremployment and strengthening the economy of Indiana.
        (3) The manufacture or assembly of alternative fuel vehicles bythe applicant will reduce air pollution.
        (4) The manufacture or assembly of alternative fuel vehicles bythe applicant will reduce dependence by the United States onforeign energy sources.
        (5) Receiving the tax credit is a major factor in the applicant'sdecision to go forward with the project.
        (6) Awarding the tax credit will result in an overall positivefiscal impact to the state, as certified by the budget agencyusing the best available data.
        (7) The credit is not prohibited by section 16 of this chapter.
        (8) The average wage that will be paid by the taxpayer to itsemployees (excluding highly compensated employees) at thelocation after the credit is given will be at least equal to onehundred fifty percent (150%) of the hourly minimum wageunder IC 22-2-2-4 or its equivalent.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-16
Intrastate relocations ineligible
    Sec. 16. A person is not entitled to claim the credit provided bythis chapter for any jobs that the person relocates from one (1) site

in Indiana to another site in Indiana. Determinations under thissection shall be made by the corporation.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-17
Certifying a credit award
    Sec. 17. The corporation shall certify the amount of the qualifiedinvestment that is eligible for a credit under this chapter. Indetermining the credit amount that should be awarded, thecorporation shall grant a credit only for the amount of the qualifiedinvestment that is directly related to expanding:
        (1) the workforce in Indiana; or
        (2) the capital investment in Indiana.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-18
Agreements between the corporation and an applicant to whom acredit is awarded
    Sec. 18. The corporation shall enter into an agreement with anapplicant that is awarded a credit under this chapter. The agreementmust include all the following:
        (1) A detailed description of the project that is the subject of theagreement.
        (2) The first taxable year for which the credit may be claimed.
        (3) The amount of the taxpayer's state tax liability for each taxin the taxable year of the taxpayer that immediately precededthe first taxable year in which the credit may be claimed.
        (4) The maximum tax credit amount that will be allowed foreach taxable year.
        (5) A requirement that the taxpayer shall maintain operations atthe project location for at least ten (10) years during the termthat the tax credit is available.
        (6) A specific method for determining the number of newemployees employed during a taxable year who are performingjobs not previously performed by an employee.
        (7) A requirement that the taxpayer shall annually report to thecorporation the number of new employees who are performingjobs not previously performed by an employee, the averagewage of the new employees, the average wage of all employeesat the location where the qualified investment is made, and anyother information the director needs to perform the director'sduties under this chapter.
        (8) A requirement that the director is authorized to verify withthe appropriate state agencies the amounts reported undersubdivision (7), and that after doing so shall issue a certificateto the taxpayer stating that the amounts have been verified.
        (9) A requirement that the taxpayer shall pay an average wageto all its employees other than highly compensated employeesin each taxable year that a tax credit is available that equals atleast one hundred fifty percent (150%) of the hourly minimum

wage under IC 22-2-2-4 or its equivalent.
        (10) A requirement that the taxpayer will keep the qualifiedinvestment property that is the basis for the tax credit in Indianafor at least the lesser of its useful life for federal income taxpurposes or ten (10) years.
        (11) A requirement that the taxpayer will maintain at thelocation where the qualified investment is made during the termof the tax credit a total payroll that is at least equal to thepayroll level that existed before the qualified investment wasmade.
        (12) A requirement that the taxpayer shall provide writtennotification to the director and the corporation not more thanthirty (30) days after the taxpayer makes or receives a proposalthat would transfer the taxpayer's state tax liability obligationsto a successor taxpayer.
        (13) Any other performance conditions that the corporationdetermines are appropriate.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-19
Taxpayer documentation
    Sec. 19. A taxpayer claiming a credit under this chapter shallsubmit to the department of state revenue a copy of the director'scertificate of verification under this chapter for the taxable year.However, failure to submit a copy of the certificate does notinvalidate a claim for a credit.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-20
Breach of taxpayer agreement
    Sec. 20. If the director determines that a taxpayer who hasreceived a credit under this chapter is not complying with therequirements of the tax credit agreement or all the provisions of thischapter, the director shall, after giving the taxpayer an opportunityto explain the noncompliance, notify the Indiana economicdevelopment corporation and the department of state revenue of thenoncompliance and request an assessment. The department of staterevenue, with the assistance of the director, shall state the amount ofthe assessment, which may not exceed the sum of any previouslyallowed credits under this chapter. After receiving the notice, thedepartment of state revenue shall make an assessment against thetaxpayer under IC 6-8.1.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-21
Annual report on the tax credit program
    Sec. 21. On or before March 31 each year, the director shallsubmit a report to the corporation on the tax credit program underthis chapter. The report must include information on the number ofagreements that were entered into under this chapter during the

preceding calendar year, a description of the project that is thesubject of each agreement, an update on the status of projects underagreements entered into before the preceding calendar year, and thesum of the credits awarded under this chapter. A copy of the reportshall be transmitted in an electronic format under IC 5-14-6 to theexecutive director of the legislative services agency for distributionto the members of the general assembly.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-22
Biennial evaluation of the tax credit program
    Sec. 22. On a biennial basis, the corporation shall provide for anevaluation of the tax credit program. The evaluation must include anassessment of the effectiveness of the program in creating new jobsand increasing wages in Indiana and of the revenue impact of theprogram and may include a review of the practices and experiencesof other states with similar programs. The director shall submit areport on the evaluation to the governor, the president pro temporeof the senate, and the speaker of the house of representatives afterJune 30 and before November 1 in each odd-numbered year. Thereport provided to the president pro tempore of the senate and thespeaker of the house of representatives must be in an electronicformat under IC 5-14-6.
As added by P.L.223-2007, SEC.4.

IC 6-3.1-31.9-23
Expiration of the tax credit program
    Sec. 23. (a) This chapter applies to taxable years beginning afterDecember 31, 2006.
    (b) Notwithstanding the other provisions of this chapter, thecorporation may not approve a credit for a qualified investment madeafter December 31, 2012. However, this section may not beconstrued to prevent a taxpayer from carrying an unused tax creditattributable to a qualified investment made before January 1, 2012,forward to a taxable year beginning after December 31, 2011, in themanner provided by section 13 of this chapter.
As added by P.L.223-2007, SEC.4.