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 offer
coverage for health care services under a self-funded health benefit
plan that complies with the federal Employee Retirement Income
Security 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 a
taxpayer that did not provide health insurance to the taxpayer's
employees in the taxable year immediately preceding the first taxable
year 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 an
employee 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" means
coverage for health care services provided under:
(1) an insurance policy that provides one (1) or more of the
types of insurance described in Class 1(b) or Class 2(a) of
IC 27-1-5-1; or
(2) a contract with a health maintenance organization for
coverage of basic health care services under IC 27-13;
that satisfies the requirements of Section 125 of the Internal Revenue
Code.
(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 an
individual 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 monthly
payment 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 income
tax 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 a
taxpayer'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 under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. 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 or
entity 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 employees
and their dependents through at least one (1) health benefit plan is
entitled to a credit against the taxpayer's state tax liability for the first
two (2) taxable years in which the taxpayer makes the health benefit
plan available if the following requirements are met:
(1) An employee's participation in the health benefit plan is at
the employee's election.
(2) If an employee chooses to participate in the health benefit
plan, the employee may pay the employee's share of the cost of
the plan using a wage assignment authorized under IC 22-2-6-2.
(b) The credit allowed in each of the first two (2) taxable years
described 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 all
or part of the cost of a health benefit plan made available under
section 8 of this chapter.
(b) An employer that pays or provides reimbursement under
subsection (a) shall pay or provide reimbursement on an equal basis
for all full-time employees who elect to participate in the health
benefit 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 this
chapter for a taxpayer in a taxable year exceeds the taxpayer's state
tax liability for that taxable year, the taxpayer may carry the excess
over to the following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year. A taxpayer is not entitled to a
carryback.
(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 tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income 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 taxpayer
must claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department. The taxpayer must submit
to the department all information that the department determines is
necessary to calculate the credit provided by this chapter and to
determine 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 shall
continue to make health insurance available to the taxpayer's
employees through a health benefit plan for at least twenty-four (24)
consecutive months beginning on the day after the last day of the
taxable year in which the taxpayer first offers the health benefit plan.
(b) If the taxpayer terminates the health benefit plan before the
expiration of the period required under subsection (a), the taxpayer
shall repay the department the amount of the credit received under
section 8 of this chapter. As added by P.L.218-2007, SEC.5.
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 offer
coverage for health care services under a self-funded health benefit
plan that complies with the federal Employee Retirement Income
Security 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 a
taxpayer that did not provide health insurance to the taxpayer's
employees in the taxable year immediately preceding the first taxable
year 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 an
employee 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" means
coverage for health care services provided under:
(1) an insurance policy that provides one (1) or more of the
types of insurance described in Class 1(b) or Class 2(a) of
IC 27-1-5-1; or
(2) a contract with a health maintenance organization for
coverage of basic health care services under IC 27-13;
that satisfies the requirements of Section 125 of the Internal Revenue
Code.
(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 an
individual 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 monthly
payment 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 income
tax 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 a
taxpayer'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 under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. 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 or
entity 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 employees
and their dependents through at least one (1) health benefit plan is
entitled to a credit against the taxpayer's state tax liability for the first
two (2) taxable years in which the taxpayer makes the health benefit
plan available if the following requirements are met:
(1) An employee's participation in the health benefit plan is at
the employee's election.
(2) If an employee chooses to participate in the health benefit
plan, the employee may pay the employee's share of the cost of
the plan using a wage assignment authorized under IC 22-2-6-2.
(b) The credit allowed in each of the first two (2) taxable years
described 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 all
or part of the cost of a health benefit plan made available under
section 8 of this chapter.
(b) An employer that pays or provides reimbursement under
subsection (a) shall pay or provide reimbursement on an equal basis
for all full-time employees who elect to participate in the health
benefit 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 this
chapter for a taxpayer in a taxable year exceeds the taxpayer's state
tax liability for that taxable year, the taxpayer may carry the excess
over to the following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year. A taxpayer is not entitled to a
carryback.
(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 tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income 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 taxpayer
must claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department. The taxpayer must submit
to the department all information that the department determines is
necessary to calculate the credit provided by this chapter and to
determine 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 shall
continue to make health insurance available to the taxpayer's
employees through a health benefit plan for at least twenty-four (24)
consecutive months beginning on the day after the last day of the
taxable year in which the taxpayer first offers the health benefit plan.
(b) If the taxpayer terminates the health benefit plan before the
expiration of the period required under subsection (a), the taxpayer
shall repay the department the amount of the credit received under
section 8 of this chapter. As added by P.L.218-2007, SEC.5.
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 offer
coverage for health care services under a self-funded health benefit
plan that complies with the federal Employee Retirement Income
Security 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 a
taxpayer that did not provide health insurance to the taxpayer's
employees in the taxable year immediately preceding the first taxable
year 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 an
employee 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" means
coverage for health care services provided under:
(1) an insurance policy that provides one (1) or more of the
types of insurance described in Class 1(b) or Class 2(a) of
IC 27-1-5-1; or
(2) a contract with a health maintenance organization for
coverage of basic health care services under IC 27-13;
that satisfies the requirements of Section 125 of the Internal Revenue
Code.
(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 an
individual 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 monthly
payment 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 income
tax 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 a
taxpayer'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 under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter. 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 or
entity 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 employees
and their dependents through at least one (1) health benefit plan is
entitled to a credit against the taxpayer's state tax liability for the first
two (2) taxable years in which the taxpayer makes the health benefit
plan available if the following requirements are met:
(1) An employee's participation in the health benefit plan is at
the employee's election.
(2) If an employee chooses to participate in the health benefit
plan, the employee may pay the employee's share of the cost of
the plan using a wage assignment authorized under IC 22-2-6-2.
(b) The credit allowed in each of the first two (2) taxable years
described 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 all
or part of the cost of a health benefit plan made available under
section 8 of this chapter.
(b) An employer that pays or provides reimbursement under
subsection (a) shall pay or provide reimbursement on an equal basis
for all full-time employees who elect to participate in the health
benefit 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 this
chapter for a taxpayer in a taxable year exceeds the taxpayer's state
tax liability for that taxable year, the taxpayer may carry the excess
over to the following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that the
carryover is used by the taxpayer to obtain a credit under this chapter
for any subsequent taxable year. A taxpayer is not entitled to a
carryback.
(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 tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income 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 taxpayer
must claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department. The taxpayer must submit
to the department all information that the department determines is
necessary to calculate the credit provided by this chapter and to
determine 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 shall
continue to make health insurance available to the taxpayer's
employees through a health benefit plan for at least twenty-four (24)
consecutive months beginning on the day after the last day of the
taxable year in which the taxpayer first offers the health benefit plan.
(b) If the taxpayer terminates the health benefit plan before the
expiration of the period required under subsection (a), the taxpayer
shall repay the department the amount of the credit received under
section 8 of this chapter. As added by P.L.218-2007, SEC.5.
