IC 6-3.1-6-1 Definitions
Sec. 1. For the purposes of this chapter:
"Agreement" means any agreement entered into with the
commissioner of the department of correction under IC 11-10-7-2.
"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) trust;
(4) limited liability company; or
(5) limited liability partnership.
"Qualified property" means any machinery, tools, equipment,
building, structure, or other tangible property considered qualified
property under Section 38 of the Internal Revenue Code that is used
as an integral part of the operation contemplated by an agreement
and that is installed, used, or operated exclusively on property
managed by the department of correction.
"State income tax liability" means a taxpayer's total income tax
liability incurred under IC 6-3, as computed after application of
credits that, under IC 6-3.1-1-2, are to be applied before the credit
provided by this chapter.
"Taxpayer" means any person, corporation, limited liability
company, partnership, or other entity that has state tax liability. The
term includes a pass through entity.
"Wages paid" includes all earnings surrendered to the department
of correction under IC 11-10-7-5. As added by P.L.51-1984, SEC.1. Amended by P.L.129-2001, SEC.5;
P.L.192-2002(ss), SEC.96; P.L.246-2005, SEC.73.
IC 6-3.1-6-2 Income tax credit; amount; creditable year
Sec. 2. (a) A taxpayer who enters into an agreement is entitled to
receive an income tax credit for a taxable year equal to:
(1) the taxpayer's state income tax liability for the taxable year;
(2) an amount equal to the sum of:
(A) fifty percent (50%) of any investment in qualified
property made by the taxpayer during the taxable year as
part of the agreement; plus
(B) twenty-five percent (25%) of the wages paid to inmates
during the taxable year as part of the agreement; or
(3) one hundred thousand dollars ($100,000);
whichever is least.
(b) A tax credit shall be allowed under this chapter only for the
taxable year of the taxpayer during which:
(1) the investment in qualified property is made in accordance
with Section 38 of the Internal Revenue Code; or
(2) the wages are paid to inmates;
as part of an agreement. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-3
Repealed
(Repealed by P.L.192-2002(ss), SEC.191.)
IC 6-3.1-6-4 Recapture tax; amount; reports; tax liability; change in use of
property
Sec. 4. (a) A taxpayer is liable for a recapture tax if qualified
property is converted to any use, other than the use contemplated in
the agreement, within three (3) years after the end of the taxable year
in which a tax credit was allowed for investment in that qualified
property. The recapture tax equals:
(1) seventy-five percent (75%) of the tax credit if the use is
converted not later than one (1) year after the end of the taxable
year in which the tax credit was allowed;
(2) fifty percent (50%) of the tax credit if the use is converted
after one (1) year and not later than two (2) years after the end
of the taxable year in which the tax credit was allowed; or
(3) twenty-five percent (25%) of the tax credit if the use is
converted after two (2) years and not later than three (3) years
after the end of the taxable year in which the tax credit was
allowed.
(b) Any recapture tax liability must be reported by the taxpayer on
his annual state income tax return for the taxable year during which
the use was converted.
(c) The commissioner of the department of correction shall report
any change in the use of qualified property to the department. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-5 Effect of agreements; considerations; verification of information
related to credit
Sec. 5. (a) Before entering into an agreement, the commissioner
of the department of correction shall thoroughly consider the effect
of the agreement upon the workforce in the community where the
correctional institution is located and shall not enter into any
agreement if it will cause increased unemployment in the
community. The taxpayer shall have the burden of proving by a
preponderance of the evidence that the agreement shall not increase
unemployment in the community where the correctional institution
is located.
(b) The commissioner shall verify any information related to the
credit provided by this chapter when requested to do so by the
department of state revenue. As added by P.L.51-1984, SEC.1. Amended by P.L.21-1995, SEC.11. IC 6-3.1-6-6 Pass through entity credit
Sec. 6. If a pass through entity is entitled to a credit under this
chapter but does not have state tax liability against which the tax
credit may be applied, an individual who is a shareholder, partner,
beneficiary, or member 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, partner, beneficiary, or
member is entitled.
The credit provided under this section is in addition to a tax credit to
which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of
a pass through entity may not claim more than one (1) credit for the
qualified expenditure. As added by P.L.129-2001, SEC.6.
IC 6-3.1-6-1 Definitions
Sec. 1. For the purposes of this chapter:
"Agreement" means any agreement entered into with the
commissioner of the department of correction under IC 11-10-7-2.
"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) trust;
(4) limited liability company; or
(5) limited liability partnership.
"Qualified property" means any machinery, tools, equipment,
building, structure, or other tangible property considered qualified
property under Section 38 of the Internal Revenue Code that is used
as an integral part of the operation contemplated by an agreement
and that is installed, used, or operated exclusively on property
managed by the department of correction.
"State income tax liability" means a taxpayer's total income tax
liability incurred under IC 6-3, as computed after application of
credits that, under IC 6-3.1-1-2, are to be applied before the credit
provided by this chapter.
"Taxpayer" means any person, corporation, limited liability
company, partnership, or other entity that has state tax liability. The
term includes a pass through entity.
"Wages paid" includes all earnings surrendered to the department
of correction under IC 11-10-7-5. As added by P.L.51-1984, SEC.1. Amended by P.L.129-2001, SEC.5;
P.L.192-2002(ss), SEC.96; P.L.246-2005, SEC.73.
IC 6-3.1-6-2 Income tax credit; amount; creditable year
Sec. 2. (a) A taxpayer who enters into an agreement is entitled to
receive an income tax credit for a taxable year equal to:
(1) the taxpayer's state income tax liability for the taxable year;
(2) an amount equal to the sum of:
(A) fifty percent (50%) of any investment in qualified
property made by the taxpayer during the taxable year as
part of the agreement; plus
(B) twenty-five percent (25%) of the wages paid to inmates
during the taxable year as part of the agreement; or
(3) one hundred thousand dollars ($100,000);
whichever is least.
(b) A tax credit shall be allowed under this chapter only for the
taxable year of the taxpayer during which:
(1) the investment in qualified property is made in accordance
with Section 38 of the Internal Revenue Code; or
(2) the wages are paid to inmates;
as part of an agreement. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-3
Repealed
(Repealed by P.L.192-2002(ss), SEC.191.)
IC 6-3.1-6-4 Recapture tax; amount; reports; tax liability; change in use of
property
Sec. 4. (a) A taxpayer is liable for a recapture tax if qualified
property is converted to any use, other than the use contemplated in
the agreement, within three (3) years after the end of the taxable year
in which a tax credit was allowed for investment in that qualified
property. The recapture tax equals:
(1) seventy-five percent (75%) of the tax credit if the use is
converted not later than one (1) year after the end of the taxable
year in which the tax credit was allowed;
(2) fifty percent (50%) of the tax credit if the use is converted
after one (1) year and not later than two (2) years after the end
of the taxable year in which the tax credit was allowed; or
(3) twenty-five percent (25%) of the tax credit if the use is
converted after two (2) years and not later than three (3) years
after the end of the taxable year in which the tax credit was
allowed.
(b) Any recapture tax liability must be reported by the taxpayer on
his annual state income tax return for the taxable year during which
the use was converted.
(c) The commissioner of the department of correction shall report
any change in the use of qualified property to the department. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-5 Effect of agreements; considerations; verification of information
related to credit
Sec. 5. (a) Before entering into an agreement, the commissioner
of the department of correction shall thoroughly consider the effect
of the agreement upon the workforce in the community where the
correctional institution is located and shall not enter into any
agreement if it will cause increased unemployment in the
community. The taxpayer shall have the burden of proving by a
preponderance of the evidence that the agreement shall not increase
unemployment in the community where the correctional institution
is located.
(b) The commissioner shall verify any information related to the
credit provided by this chapter when requested to do so by the
department of state revenue. As added by P.L.51-1984, SEC.1. Amended by P.L.21-1995, SEC.11. IC 6-3.1-6-6 Pass through entity credit
Sec. 6. If a pass through entity is entitled to a credit under this
chapter but does not have state tax liability against which the tax
credit may be applied, an individual who is a shareholder, partner,
beneficiary, or member 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, partner, beneficiary, or
member is entitled.
The credit provided under this section is in addition to a tax credit to
which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of
a pass through entity may not claim more than one (1) credit for the
qualified expenditure. As added by P.L.129-2001, SEC.6.
IC 6-3.1-6-1 Definitions
Sec. 1. For the purposes of this chapter:
"Agreement" means any agreement entered into with the
commissioner of the department of correction under IC 11-10-7-2.
"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) trust;
(4) limited liability company; or
(5) limited liability partnership.
"Qualified property" means any machinery, tools, equipment,
building, structure, or other tangible property considered qualified
property under Section 38 of the Internal Revenue Code that is used
as an integral part of the operation contemplated by an agreement
and that is installed, used, or operated exclusively on property
managed by the department of correction.
"State income tax liability" means a taxpayer's total income tax
liability incurred under IC 6-3, as computed after application of
credits that, under IC 6-3.1-1-2, are to be applied before the credit
provided by this chapter.
"Taxpayer" means any person, corporation, limited liability
company, partnership, or other entity that has state tax liability. The
term includes a pass through entity.
"Wages paid" includes all earnings surrendered to the department
of correction under IC 11-10-7-5. As added by P.L.51-1984, SEC.1. Amended by P.L.129-2001, SEC.5;
P.L.192-2002(ss), SEC.96; P.L.246-2005, SEC.73.
IC 6-3.1-6-2 Income tax credit; amount; creditable year
Sec. 2. (a) A taxpayer who enters into an agreement is entitled to
receive an income tax credit for a taxable year equal to:
(1) the taxpayer's state income tax liability for the taxable year;
(2) an amount equal to the sum of:
(A) fifty percent (50%) of any investment in qualified
property made by the taxpayer during the taxable year as
part of the agreement; plus
(B) twenty-five percent (25%) of the wages paid to inmates
during the taxable year as part of the agreement; or
(3) one hundred thousand dollars ($100,000);
whichever is least.
(b) A tax credit shall be allowed under this chapter only for the
taxable year of the taxpayer during which:
(1) the investment in qualified property is made in accordance
with Section 38 of the Internal Revenue Code; or
(2) the wages are paid to inmates;
as part of an agreement. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-3
Repealed
(Repealed by P.L.192-2002(ss), SEC.191.)
IC 6-3.1-6-4 Recapture tax; amount; reports; tax liability; change in use of
property
Sec. 4. (a) A taxpayer is liable for a recapture tax if qualified
property is converted to any use, other than the use contemplated in
the agreement, within three (3) years after the end of the taxable year
in which a tax credit was allowed for investment in that qualified
property. The recapture tax equals:
(1) seventy-five percent (75%) of the tax credit if the use is
converted not later than one (1) year after the end of the taxable
year in which the tax credit was allowed;
(2) fifty percent (50%) of the tax credit if the use is converted
after one (1) year and not later than two (2) years after the end
of the taxable year in which the tax credit was allowed; or
(3) twenty-five percent (25%) of the tax credit if the use is
converted after two (2) years and not later than three (3) years
after the end of the taxable year in which the tax credit was
allowed.
(b) Any recapture tax liability must be reported by the taxpayer on
his annual state income tax return for the taxable year during which
the use was converted.
(c) The commissioner of the department of correction shall report
any change in the use of qualified property to the department. As added by P.L.51-1984, SEC.1.
IC 6-3.1-6-5 Effect of agreements; considerations; verification of information
related to credit
Sec. 5. (a) Before entering into an agreement, the commissioner
of the department of correction shall thoroughly consider the effect
of the agreement upon the workforce in the community where the
correctional institution is located and shall not enter into any
agreement if it will cause increased unemployment in the
community. The taxpayer shall have the burden of proving by a
preponderance of the evidence that the agreement shall not increase
unemployment in the community where the correctional institution
is located.
(b) The commissioner shall verify any information related to the
credit provided by this chapter when requested to do so by the
department of state revenue. As added by P.L.51-1984, SEC.1. Amended by P.L.21-1995, SEC.11. IC 6-3.1-6-6 Pass through entity credit
Sec. 6. If a pass through entity is entitled to a credit under this
chapter but does not have state tax liability against which the tax
credit may be applied, an individual who is a shareholder, partner,
beneficiary, or member 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, partner, beneficiary, or
member is entitled.
The credit provided under this section is in addition to a tax credit to
which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of
a pass through entity may not claim more than one (1) credit for the
qualified expenditure. As added by P.L.129-2001, SEC.6.
