CHAPTER 33. NEW EMPLOYER TAX CREDIT
IC 6-3.1-33
Chapter 33. New Employer Tax Credit
IC 6-3.1-33-1
Application of chapter
Sec. 1. This chapter applies to taxable years beginning afterDecember 31, 2009.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-2
"Department"
Sec. 2. As used in this chapter, "department" refers to:
(1) the department of state revenue; or
(2) the department of insurance;
whichever agency is obligated to administer the tax against which acredit is applied.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-3
"IEDC"
Sec. 3. As used in the chapter, "IEDC" refers to the Indianaeconomic development corporation.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-4
"New Indiana business"
Sec. 4. As used in this chapter, "new Indiana business" means acorporation or pass through entity that after December 31, 2009:
(1) either:
(A) locates or relocates the operations of a businessenterprise in Indiana;
(B) incorporates or otherwise first organizes in Indiana; or
(C) expands the entity's operation of a business enterprise inIndiana;
(2) employs at least ten (10) qualified employees;
(3) makes an application to the IEDC under this chapter; and
(4) is issued a certificate of approval by the IEDC under thischapter.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-5
"Qualified employee"
Sec. 5. As used in this chapter, "qualified employee" means anindividual who is:
(1) a full-time employee (as defined in IC 6-3.1-13-4) first hiredby a new Indiana business during the period specified in section10(b) of this chapter;
(2) a resident of Indiana; and
(3) not more than a five percent (5%) shareholder, partner,member, or owner of the applicant;as determined by the IEDC. The term does not include rehiredindividuals, individuals employed to fill positions vacated as theresult of a layoff that occurred during the previous two (2) years, orindividuals employed in the same business operation before and aftera change of business ownership.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-6
"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 (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 statetax liability to which the taxpayer is entitled, including any creditdescribed in IC 6-3.1-1-2.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-7
"Tax credit"
Sec. 7. As used in this chapter, "tax credit" refers to a tax creditgranted by this chapter before the application of any other tax creditsto which a new Indiana business might be eligible.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-8
"Taxpayer"
Sec. 8. As used in this chapter, "taxpayer" means a person,corporation, partnership, or other entity that has any state taxliability.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-9
Application for credit; qualifications; certificate of approval
Sec. 9. (a) Before January 1, 2013, a corporation or pass throughentity that desires to qualify for the credit provided by this chaptermay submit an application to the IEDC in the form and mannerspecified by the IEDC.
(b) The IEDC shall promptly review all applications submitted tothe IEDC under this chapter.
(c) If the IEDC determines that an applicant for the tax creditprovided by this chapter has furnished reliable evidence, asdetermined by the IEDC, that the applicant is reasonably capable of:
(1) employing at least ten (10) qualified employees in eachmonth of the period specified in section 10(b) of this chapterduring the taxable year; and
(2) meeting the requirements for the tax credit provided by thischapter;
the IEDC may issue the applicant a certificate of approval. If a
certificate of approval is issued, the IEDC shall provide a copy of thecertificate to the department.
(d) In making a determination of whether an applicant is qualifiedfor a credit under this chapter, the IEDC may consider the following:
(1) The applicant's employment levels in previous years todetermine if the applicant is hiring new individuals or rehiringindividuals.
(2) Whether the applicant is the successor to part or all of theassets or business operations of another corporation or passthrough entity that conducted business operations in Indiana inthe same line of business to determine if the applicant is a newIndiana business under this chapter.
(e) If the IEDC determines that the applicant will not employ atleast ten (10) qualified employees in each month of the periodspecified in section 10(b) of this chapter during the taxable year, isnot a new Indiana business, or does not meet, or is unlikely to meet,any other requirements for the tax credit provided by this chapter, theIEDC shall notify the applicant of the IEDC's determination.
(f) The IEDC may not issue a certificate of approval under thischapter after December 31, 2012.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-10
Credit entitlement; credit period
Sec. 10. (a) Each taxable year, a new Indiana business is entitledto a tax credit against the new Indiana business's state tax liability forthe taxable year in the amount specified by section 11 of this chapter.
(b) The tax credit provided by subsection (a) is based on a periodnot exceeding twenty-four (24) consecutive calendar months duringwhich the new Indiana business meets the conditions of this chapter.The period begins on the first day of the month following the monthin which the new Indiana business is approved by the IEDC underthis chapter. The period ends on the final day of:
(1) the twenty-fourth consecutive calendar month that the newIndiana business complies with the conditions of this chapter;or
(2) the month in which the new Indiana business ceases tocomply with the conditions of this chapter;
whichever month occurs first.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-11
Credit amount
Sec. 11. For each taxable year, the amount of the tax credit underthis chapter is equal to ten percent (10%) of the wages paid by thenew Indiana business to qualified employees during the calendarmonths of the period specified in section 10(b) of this chapter thatare included in the taxable year.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-12
Use of pass through entity credit
Sec. 12. If a pass through entity does not have state tax liabilityagainst which a tax credit may be applied, a shareholder, partner,fiduciary, or member of the pass through entity is entitled to a taxcredit equal to:
(1) the tax credit to which the pass through entity would beentitled under this chapter for the taxable year if the passthrough entity were a taxpayer; multiplied by
(2) the percentage of the pass through entity's distributiveincome to which the shareholder, partner, fiduciary, or memberis entitled.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-13
Carryover; no carryback or refund of unused credit
Sec. 13. (a) If the credit provided by this chapter exceeds thetaxpayer's state tax liability for the taxable year for which the creditis first claimed, the excess may be carried forward to succeedingtaxable years and used as a credit against the taxpayer's state taxliability during those taxable years. Each time that the credit iscarried forward to a succeeding taxable year, the credit is to bereduced by the amount that was used as a credit during theimmediately preceding taxable year. The credit provided by thischapter may be carried forward and applied to succeeding taxableyears for not more than nine (9) taxable years following the first yearthe credit is claimed.
(b) A taxpayer is not entitled to any carryback or refund of anyunused credit.
As added by P.L.110-2010, SEC.16.
IC 6-3.1-33-14
Claiming credit
Sec. 14. To qualify for a tax credit under this chapter, a taxpayermust claim the tax credit on the taxpayer's annual state tax return orreturns in the manner prescribed by the department. The taxpayershall maintain the records required by the department for the periodspecified by the department to substantiate the taxpayer's eligibilityfor the credit.
As added by P.L.110-2010, SEC.16.