Introduced Version
HOUSE BILL No. 1323
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-31.2.
Synopsis: Small employer qualified wellness program tax credit.
Provides that the small employer qualified wellness program tax credit
(program) is extended for taxable years beginning after December 31,
2013, and before January 1, 2020. Expands the program to include
small employers with not more than 250 eligible employees. Eliminates
the carryforward of any unused tax credit under the program for
expenditures incurred after December 31, 2013. Imposes a maximum
of $5,000 on the amount of the credit that a small employer may claim
in a taxable year. Provides that an aggregate of not more than
$5,000,000 in tax credits may be claimed under the program during any
budget biennium after December 31, 2013. Repeals a redundant
definition of "pass through entity".
Effective: January 1, 2014.
Morrison, Friend
January 15, 2013, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1323
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-31.2-1; (13)IN1323.1.1. -->
SECTION 1. IC 6-3.1-31.2-1 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. Sec. 1. As used in this chapter, "pass through
entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
SOURCE: IC 6-3.1-31.2-3; (13)IN1323.1.2. -->
SECTION 2. IC 6-3.1-31.2-3, AS AMENDED BY P.L.42-2011,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 3. (a) As used in this chapter, "small
employer" means an employer that:
(1) is actively engaged in business; and
(2) on at least fifty percent (50%) of the working days of the
employer during the preceding calendar year, employed at least
two (2) but not more than:
(A) one hundred (100) eligible employees,
for taxable years
beginning before January 1, 2014; and
(B) two hundred fifty (250) eligible employees, for taxable
years beginning after December 31, 2013;
the majority of whom work in Indiana.
(b) In determining the number of eligible employees for purposes of
subsection (a), employers that are affiliated employers or that are
eligible to file a combined tax return for purposes of state taxation are
considered one (1) employer.
SOURCE: IC 6-3.1-31.2-6; (13)IN1323.1.3. -->
SECTION 3. IC 6-3.1-31.2-6, AS ADDED BY P.L.218-2007,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 6. (a) This subsection applies only to
taxable years beginning before January 1, 2012. A taxpayer is
entitled to a credit against the taxpayer's state tax liability for a taxable
year in an amount equal to fifty percent (50%) of the costs incurred by
the taxpayer during the taxable year for providing a qualified wellness
program for the taxpayer's employees during the taxable year.
(b) This subsection applies only to taxable years beginning after
December 31, 2013. A small employer that receives approval from
the Indiana economic development corporation under section 6.5
of this chapter is entitled to a credit against the small employer's
state tax liability for the first taxable year beginning after
December 31, 2013, in which the small employer provides a
qualified wellness program for the small employer's employees.
The amount of the credit provided by this subsection is equal to the
lesser of:
(1) the amount of the small employer's expenditures during
the taxable year for the qualified wellness program; or
(2) five thousand dollars ($5,000).
(c) A small employer is not entitled to the credit provided by this
chapter for expenditures incurred for a qualified wellness program
during a taxable year beginning after December 31, 2011, and
before January 1, 2014.
SOURCE: IC 6-3.1-31.2-6.5; (13)IN1323.1.4. -->
SECTION 4. IC 6-3.1-31.2-6.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]:
Sec. 6.5. (a) This section applies
only to small employers that are seeking approval to claim the
credit provided by this chapter for a taxable year beginning after
December 31, 2013.
(b) A small employer that wishes to obtain approval to claim the
credit provided by this chapter must file an application with the
Indiana economic development corporation in the manner
prescribed by the Indiana economic development corporation. The
small employer must include with the application:
(1) a copy of the state department of health's certification of
the small employer's wellness program as a qualified wellness
program; or
(2) an indication that the small employer has submitted an
application to the state department of health to obtain
certification of the small employer's wellness program and
approval is pending.
(c) If:
(1) a small employer properly files the application required by
subsection (b); and
(2) the credit amount for which the small employer is seeking
approval would not cause the limit specified in subsection (d)
to be exceeded;
the Indiana economic development corporation shall approve the
small employer's application for a credit amount equal to the lesser
of the credit amount requested by the small employer or the limit
specified in section 6(b)(2) of this chapter. After the Indiana
economic development corporation completes its review of an
application under this section, the Indiana economic development
corporation shall promptly notify the applicant by letter of the
outcome of the review.
(d) The Indiana economic development corporation may not
approve more than five million dollars ($5,000,000) of credits
under this section during each twenty-four (24) month period:
(1) beginning July 1 of an odd-numbered year; and
(2) ending on June 30 of the next odd-numbered year.
SOURCE: IC 6-3.1-31.2-8; (13)IN1323.1.5. -->
SECTION 5. IC 6-3.1-31.2-8, AS ADDED BY P.L.218-2007,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 8. (a) This subsection applies to a credit
initially claimed under this chapter for a taxable year beginning
before January 1, 2012. If the credit provided by this chapter exceeds
the taxpayer's state tax liability for the taxable year for which the credit
is first claimed, the excess may be carried forward to succeeding
taxable years and used as a credit against the taxpayer's state tax
liability during those taxable years. Each time that the credit is carried
forward to a succeeding taxable year, the credit is to be reduced by the
amount that was used as a credit during the immediately preceding
taxable year.
(b) This subsection applies to a credit initially claimed under
this chapter for a taxable year beginning after December 31, 2013.
A taxpayer is not entitled to a carryforward of any unused credit.
(b) (c) A taxpayer is not entitled to any carryback or refund of any
unused credit.
SOURCE: IC 6-3.1-31.2-9; (13)IN1323.1.6. -->
SECTION 6. IC 6-3.1-31.2-9, AS ADDED BY P.L.218-2007,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 9. To receive the credit provided by this
chapter, a taxpayer must:
(1) submit to the department with the taxpayer's state tax return or
returns a copy of:
(A) the certificate received from the state department of health
under IC 16-46-13; and
(B) after December 31, 2013, the Indiana economic
development corporation's approval letter issued under
section 6.5 of this chapter; and
(2) claim the credit on the taxpayer's state tax return or returns in
the manner prescribed by the department.
The taxpayer shall submit to the department all information that the
department determines is necessary for the calculation of the credit
provided by this chapter.
SOURCE: IC 6-3.1-31.2-11; (13)IN1323.1.7. -->
SECTION 7. IC 6-3.1-31.2-11, AS ADDED BY P.L.172-2011,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 11. (a) A tax credit may not be awarded
under this chapter for costs incurred
during a taxable year beginning
after December 31,
2011. 2019.
(b) Any tax credit
previously awarded but not claimed
under this
chapter before January 1, 2012, may not be carried over to a taxable
year beginning during the period January 1, 2012, through December
31, 2013, and must be carried forward to a taxable year that begins
after December 31, 2013.
and before January 1, 2016.