IN
Indiana House Bill HB1252

Indiana 2022 Regular Session

Indiana House Bill HB1252 Compare Versions

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1-*HB1252.1*
2-January 20, 2022
1+
2+Introduced Version
33 HOUSE BILL No. 1252
44 _____
5-DIGEST OF HB 1252 (Updated January 19, 2022 12:08 pm - DI 116)
6-Citations Affected: IC 6-3; IC 20-52.
7-Synopsis: Education enrichment accounts. Establishes the Indiana
8-student enrichment grant program (program). Provides that an
9-enrichment student is eligible to establish an Indiana enrichment
10-scholarship account. Provides that an enrichment student may receive
11-$1,000 to be used for certain qualified expenses. Provides that the
12-department of education shall administer the program.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 6-3-1-3.5; IC 20-52.
7+Synopsis: Education enrichment accounts. Defines an "enrichment
8+student" as an individual who: (1) has legal settlement in Indiana; (2)
9+was a student in grades 3 through 8 during the 2021-2022 school year;
10+and (3) scored either "below proficiency" or "approaching proficiency"
11+on the statewide assessment Indiana Learning Evaluation Readiness
12+Network (ILEARN) program, administered during the 2021-2022
13+school year. Establishes the Indiana student enrichment grant program
14+(program). Provides that an enrichment student is eligible to establish
15+an Indiana enrichment scholarship account. Provides that an
16+enrichment student may receive $1,000 to be used for certain qualified
17+expenses. Establishes the student enrichment grant fund. Provides that
18+the department of education shall administer the program and student
19+enrichment grant fund.
1320 Effective: Upon passage.
14-Behning, Clere, Goodrich, Harris
21+Behning
1522 January 6, 2022, read first time and referred to Committee on Education.
16-January 20, 2022, amended, reported — Do Pass. Referred to Committee on Ways and
17-Means pursuant to Rule 127.
18-HB 1252—LS 7167/DI 116 January 20, 2022
23+2022 IN 1252—LS 7167/DI 116 Introduced
1924 Second Regular Session of the 122nd General Assembly (2022)
2025 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2126 Constitution) is being amended, the text of the existing provision will appear in this style type,
2227 additions will appear in this style type, and deletions will appear in this style type.
2328 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2429 provision adopted), the text of the new provision will appear in this style type. Also, the
2530 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2631 a new provision to the Indiana Code or the Indiana Constitution.
2732 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2833 between statutes enacted by the 2021 Regular Session of the General Assembly.
2934 HOUSE BILL No. 1252
3035 A BILL FOR AN ACT to amend the Indiana Code concerning
3136 education.
3237 Be it enacted by the General Assembly of the State of Indiana:
3338 1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.159-2021,
3439 2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3540 3 UPON PASSAGE]: Sec. 3.5. When used in this article, the term
3641 4 "adjusted gross income" shall mean the following:
3742 5 (a) In the case of all individuals, "adjusted gross income" (as
3843 6 defined in Section 62 of the Internal Revenue Code), modified as
3944 7 follows:
4045 8 (1) Subtract income that is exempt from taxation under this article
4146 9 by the Constitution and statutes of the United States.
4247 10 (2) Except as provided in subsection (c), add an amount equal to
4348 11 any deduction or deductions allowed or allowable pursuant to
4449 12 Section 62 of the Internal Revenue Code for taxes based on or
4550 13 measured by income and levied at the state level by any state of
4651 14 the United States.
4752 15 (3) Subtract one thousand dollars ($1,000), or in the case of a
4853 16 joint return filed by a husband and wife, subtract for each spouse
4954 17 one thousand dollars ($1,000).
50-HB 1252—LS 7167/DI 116 2
55+2022 IN 1252—LS 7167/DI 116 2
5156 1 (4) Subtract one thousand dollars ($1,000) for:
5257 2 (A) each of the exemptions provided by Section 151(c) of the
5358 3 Internal Revenue Code (as effective January 1, 2017);
5459 4 (B) each additional amount allowable under Section 63(f) of
5560 5 the Internal Revenue Code; and
5661 6 (C) the spouse of the taxpayer if a separate return is made by
5762 7 the taxpayer and if the spouse, for the calendar year in which
5863 8 the taxable year of the taxpayer begins, has no gross income
5964 9 and is not the dependent of another taxpayer.
6065 10 (5) Subtract:
6166 11 (A) one thousand five hundred dollars ($1,500) for each of the
6267 12 exemptions allowed under Section 151(c)(1)(B) of the Internal
6368 13 Revenue Code (as effective January 1, 2004);
6469 14 (B) one thousand five hundred dollars ($1,500) for each
6570 15 exemption allowed under Section 151(c) of the Internal
6671 16 Revenue Code (as effective January 1, 2017) for an individual:
6772 17 (i) who is less than nineteen (19) years of age or is a
6873 18 full-time student who is less than twenty-four (24) years of
6974 19 age;
7075 20 (ii) for whom the taxpayer is the legal guardian; and
7176 21 (iii) for whom the taxpayer does not claim an exemption
7277 22 under clause (A); and
7378 23 (C) five hundred dollars ($500) for each additional amount
7479 24 allowable under Section 63(f)(1) of the Internal Revenue Code
7580 25 if the federal adjusted gross income of the taxpayer, or the
7681 26 taxpayer and the taxpayer's spouse in the case of a joint return,
7782 27 is less than forty thousand dollars ($40,000). In the case of a
7883 28 married individual filing a separate return, the qualifying
7984 29 income amount in this clause is equal to twenty thousand
8085 30 dollars ($20,000).
8186 31 This amount is in addition to the amount subtracted under
8287 32 subdivision (4).
8388 33 (6) Subtract any amounts included in federal adjusted gross
8489 34 income under Section 111 of the Internal Revenue Code as a
8590 35 recovery of items previously deducted as an itemized deduction
8691 36 from adjusted gross income.
8792 37 (7) Subtract any amounts included in federal adjusted gross
8893 38 income under the Internal Revenue Code which amounts were
8994 39 received by the individual as supplemental railroad retirement
9095 40 annuities under 45 U.S.C. 231 and which are not deductible under
9196 41 subdivision (1).
9297 42 (8) Subtract an amount equal to the amount of federal Social
93-HB 1252—LS 7167/DI 116 3
98+2022 IN 1252—LS 7167/DI 116 3
9499 1 Security and Railroad Retirement benefits included in a taxpayer's
95100 2 federal gross income by Section 86 of the Internal Revenue Code.
96101 3 (9) In the case of a nonresident taxpayer or a resident taxpayer
97102 4 residing in Indiana for a period of less than the taxpayer's entire
98103 5 taxable year, the total amount of the deductions allowed pursuant
99104 6 to subdivisions (3), (4), and (5) shall be reduced to an amount
100105 7 which bears the same ratio to the total as the taxpayer's income
101106 8 taxable in Indiana bears to the taxpayer's total income.
102107 9 (10) In the case of an individual who is a recipient of assistance
103108 10 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
104109 11 subtract an amount equal to that portion of the individual's
105110 12 adjusted gross income with respect to which the individual is not
106111 13 allowed under federal law to retain an amount to pay state and
107112 14 local income taxes.
108113 15 (11) In the case of an eligible individual, subtract the amount of
109114 16 a Holocaust victim's settlement payment included in the
110115 17 individual's federal adjusted gross income.
111116 18 (12) Subtract an amount equal to the portion of any premiums
112117 19 paid during the taxable year by the taxpayer for a qualified long
113118 20 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
114119 21 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
115120 22 file a joint income tax return or the taxpayer is otherwise entitled
116121 23 to a deduction under this subdivision for the taxpayer's spouse, or
117122 24 both.
118123 25 (13) Subtract an amount equal to the lesser of:
119124 26 (A) two thousand five hundred dollars ($2,500), or one
120125 27 thousand two hundred fifty dollars ($1,250) in the case of a
121126 28 married individual filing a separate return; or
122127 29 (B) the amount of property taxes that are paid during the
123128 30 taxable year in Indiana by the individual on the individual's
124129 31 principal place of residence.
125130 32 (14) Subtract an amount equal to the amount of a September 11
126131 33 terrorist attack settlement payment included in the individual's
127132 34 federal adjusted gross income.
128133 35 (15) Add or subtract the amount necessary to make the adjusted
129134 36 gross income of any taxpayer that owns property for which bonus
130135 37 depreciation was allowed in the current taxable year or in an
131136 38 earlier taxable year equal to the amount of adjusted gross income
132137 39 that would have been computed had an election not been made
133138 40 under Section 168(k) of the Internal Revenue Code to apply bonus
134139 41 depreciation to the property in the year that it was placed in
135140 42 service.
136-HB 1252—LS 7167/DI 116 4
141+2022 IN 1252—LS 7167/DI 116 4
137142 1 (16) Add an amount equal to any deduction allowed under
138143 2 Section 172 of the Internal Revenue Code (concerning net
139144 3 operating losses).
140145 4 (17) Add or subtract the amount necessary to make the adjusted
141146 5 gross income of any taxpayer that placed Section 179 property (as
142147 6 defined in Section 179 of the Internal Revenue Code) in service
143148 7 in the current taxable year or in an earlier taxable year equal to
144149 8 the amount of adjusted gross income that would have been
145150 9 computed had an election for federal income tax purposes not
146151 10 been made for the year in which the property was placed in
147152 11 service to take deductions under Section 179 of the Internal
148153 12 Revenue Code in a total amount exceeding the sum of:
149154 13 (A) twenty-five thousand dollars ($25,000) to the extent
150155 14 deductions under Section 179 of the Internal Revenue Code
151156 15 were not elected as provided in clause (B); and
152157 16 (B) for taxable years beginning after December 31, 2017, the
153158 17 deductions elected under Section 179 of the Internal Revenue
154159 18 Code on property acquired in an exchange if:
155160 19 (i) the exchange would have been eligible for
156161 20 nonrecognition of gain or loss under Section 1031 of the
157162 21 Internal Revenue Code in effect on January 1, 2017;
158163 22 (ii) the exchange is not eligible for nonrecognition of gain or
159164 23 loss under Section 1031 of the Internal Revenue Code; and
160165 24 (iii) the taxpayer made an election to take deductions under
161166 25 Section 179 of the Internal Revenue Code with regard to the
162167 26 acquired property in the year that the property was placed
163168 27 into service.
164169 28 The amount of deductions allowable for an item of property
165170 29 under this clause may not exceed the amount of adjusted gross
166171 30 income realized on the property that would have been deferred
167172 31 under the Internal Revenue Code in effect on January 1, 2017.
168173 32 (18) Subtract an amount equal to the amount of the taxpayer's
169174 33 qualified military income that was not excluded from the
170175 34 taxpayer's gross income for federal income tax purposes under
171176 35 Section 112 of the Internal Revenue Code.
172177 36 (19) Subtract income that is:
173178 37 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
174179 38 derived from patents); and
175180 39 (B) included in the individual's federal adjusted gross income
176181 40 under the Internal Revenue Code.
177182 41 (20) Add an amount equal to any income not included in gross
178183 42 income as a result of the deferral of income arising from business
179-HB 1252—LS 7167/DI 116 5
184+2022 IN 1252—LS 7167/DI 116 5
180185 1 indebtedness discharged in connection with the reacquisition after
181186 2 December 31, 2008, and before January 1, 2011, of an applicable
182187 3 debt instrument, as provided in Section 108(i) of the Internal
183188 4 Revenue Code. Subtract the amount necessary from the adjusted
184189 5 gross income of any taxpayer that added an amount to adjusted
185190 6 gross income in a previous year to offset the amount included in
186191 7 federal gross income as a result of the deferral of income arising
187192 8 from business indebtedness discharged in connection with the
188193 9 reacquisition after December 31, 2008, and before January 1,
189194 10 2011, of an applicable debt instrument, as provided in Section
190195 11 108(i) of the Internal Revenue Code.
191196 12 (21) Add the amount excluded from federal gross income under
192197 13 Section 103 of the Internal Revenue Code for interest received on
193198 14 an obligation of a state other than Indiana, or a political
194199 15 subdivision of such a state, that is acquired by the taxpayer after
195200 16 December 31, 2011.
196201 17 (22) Subtract an amount as described in Section 1341(a)(2) of the
197202 18 Internal Revenue Code to the extent, if any, that the amount was
198203 19 previously included in the taxpayer's adjusted gross income for a
199204 20 prior taxable year.
200205 21 (23) For taxable years beginning after December 25, 2016, add an
201206 22 amount equal to the deduction for deferred foreign income that
202207 23 was claimed by the taxpayer for the taxable year under Section
203208 24 965(c) of the Internal Revenue Code.
204209 25 (24) Subtract any interest expense paid or accrued in the current
205210 26 taxable year but not deducted as a result of the limitation imposed
206211 27 under Section 163(j)(1) of the Internal Revenue Code. Add any
207212 28 interest expense paid or accrued in a previous taxable year but
208213 29 allowed as a deduction under Section 163 of the Internal Revenue
209214 30 Code in the current taxable year. For purposes of this subdivision,
210215 31 an interest expense is considered paid or accrued only in the first
211216 32 taxable year the deduction would have been allowable under
212217 33 Section 163 of the Internal Revenue Code if the limitation under
213218 34 Section 163(j)(1) of the Internal Revenue Code did not exist.
214219 35 (25) Subtract the amount that would have been excluded from
215220 36 gross income but for the enactment of Section 118(b)(2) of the
216221 37 Internal Revenue Code for taxable years ending after December
217222 38 22, 2017.
218223 39 (26) For taxable years beginning after December 31, 2019, and
219224 40 before January 1, 2021, add an amount of the deduction claimed
220225 41 under Section 62(a)(22) of the Internal Revenue Code.
221226 42 (27) For taxable years beginning after December 31, 2019, for
222-HB 1252—LS 7167/DI 116 6
227+2022 IN 1252—LS 7167/DI 116 6
223228 1 payments made by an employer under an education assistance
224229 2 program after March 27, 2020:
225230 3 (A) add the amount of payments by an employer that are
226231 4 excluded from the taxpayer's federal gross income under
227232 5 Section 127(c)(1)(B) of the Internal Revenue Code; and
228233 6 (B) deduct the interest allowable under Section 221 of the
229234 7 Internal Revenue Code, if the disallowance under Section
230235 8 221(e)(1) of the Internal Revenue Code did not apply to the
231236 9 payments described in clause (A). For purposes of applying
232237 10 Section 221(b) of the Internal Revenue Code to the amount
233238 11 allowable under this clause, the amount under clause (A) shall
234239 12 not be added to adjusted gross income.
235240 13 (28) Add an amount equal to the remainder of:
236241 14 (A) the amount allowable as a deduction under Section 274(n)
237242 15 of the Internal Revenue Code; minus
238243 16 (B) the amount otherwise allowable as a deduction under
239244 17 Section 274(n) of the Internal Revenue Code, if Section
240245 18 274(n)(2)(D) of the Internal Revenue Code was not in effect
241246 19 for amounts paid or incurred after December 31, 2020.
242247 20 (29) For taxable years beginning after December 31, 2017, and
243248 21 before January 1, 2021, add an amount equal to the excess
244249 22 business loss of the taxpayer as defined in Section 461(l)(3) of the
245250 23 Internal Revenue Code. In addition:
246251 24 (A) If a taxpayer has an excess business loss under this
247252 25 subdivision and also has modifications under subdivisions (15)
248253 26 and (17) for property placed in service during the taxable year,
249254 27 the taxpayer shall treat a portion of the taxable year
250255 28 modifications for that property as occurring in the taxable year
251256 29 the property is placed in service and a portion of the
252257 30 modifications as occurring in the immediately following
253258 31 taxable year.
254259 32 (B) The portion of the modifications under subdivisions (15)
255260 33 and (17) for property placed in service during the taxable year
256261 34 treated as occurring in the taxable year in which the property
257262 35 is placed in service equals:
258263 36 (i) the modification for the property otherwise determined
259264 37 under this section; minus
260265 38 (ii) the excess business loss disallowed under this
261266 39 subdivision;
262267 40 but not less than zero (0).
263268 41 (C) The portion of the modifications under subdivisions (15)
264269 42 and (17) for property placed in service during the taxable year
265-HB 1252—LS 7167/DI 116 7
270+2022 IN 1252—LS 7167/DI 116 7
266271 1 treated as occurring in the taxable year immediately following
267272 2 the taxable year in which the property is placed in service
268273 3 equals the modification for the property otherwise determined
269274 4 under this section minus the amount in clause (B).
270275 5 (D) Any reallocation of modifications between taxable years
271276 6 under clauses (B) and (C) shall be first allocated to the
272277 7 modification under subdivision (15), then to the modification
273278 8 under subdivision (17).
274279 9 (30) Add an amount equal to the amount excluded from federal
275280 10 gross income under Section 108(f)(5) of the Internal Revenue
276281 11 Code. For purposes of this subdivision, if an amount excluded
277282 12 under Section 108(f)(5) of the Internal Revenue Code would be
278283 13 excludible under Section 108(a)(1)(B) of the Internal Revenue
279284 14 Code, the exclusion under Section 108(a)(1)(B) of the Internal
280285 15 Revenue Code shall take precedence.
281286 16 (31) For taxable years ending after March 12, 2020, subtract an
282287 17 amount equal to the deduction disallowed pursuant to:
283288 18 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
284289 19 as modified by Sections 206 and 207 of the Taxpayer Certainty
285290 20 and Disaster Relief Tax Act (Division EE of Public Law
286291 21 116-260); and
287292 22 (B) Section 3134(e) of the Internal Revenue Code.
288293 23 (32) Subtract the amount of an annual grant amount distributed to
289294 24 a taxpayer's Indiana education scholarship account under
290295 25 IC 20-51.4-4-2, or to an Indiana enrichment scholarship
291296 26 account under IC 20-52 that is used for a qualified expense (as
292297 27 defined in IC 20-51.4-2-9), to the extent the distribution used for
293298 28 the qualified expense is included in the taxpayer's federal adjusted
294299 29 gross income under the Internal Revenue Code.
295300 30 (33) For taxable years beginning after December 31, 2019, and
296301 31 before January 1, 2021, add an amount equal to the amount of
297302 32 unemployment compensation excluded from federal gross income
298303 33 under Section 85(c) of the Internal Revenue Code.
299304 34 (34) Subtract any other amounts the taxpayer is entitled to deduct
300305 35 under IC 6-3-2.
301306 36 (b) In the case of corporations, the same as "taxable income" (as
302307 37 defined in Section 63 of the Internal Revenue Code) adjusted as
303308 38 follows:
304309 39 (1) Subtract income that is exempt from taxation under this article
305310 40 by the Constitution and statutes of the United States.
306311 41 (2) Add an amount equal to any deduction or deductions allowed
307312 42 or allowable pursuant to Section 170 of the Internal Revenue
308-HB 1252—LS 7167/DI 116 8
313+2022 IN 1252—LS 7167/DI 116 8
309314 1 Code (concerning charitable contributions).
310315 2 (3) Except as provided in subsection (c), add an amount equal to
311316 3 any deduction or deductions allowed or allowable pursuant to
312317 4 Section 63 of the Internal Revenue Code for taxes based on or
313318 5 measured by income and levied at the state level by any state of
314319 6 the United States.
315320 7 (4) Subtract an amount equal to the amount included in the
316321 8 corporation's taxable income under Section 78 of the Internal
317322 9 Revenue Code (concerning foreign tax credits).
318323 10 (5) Add or subtract the amount necessary to make the adjusted
319324 11 gross income of any taxpayer that owns property for which bonus
320325 12 depreciation was allowed in the current taxable year or in an
321326 13 earlier taxable year equal to the amount of adjusted gross income
322327 14 that would have been computed had an election not been made
323328 15 under Section 168(k) of the Internal Revenue Code to apply bonus
324329 16 depreciation to the property in the year that it was placed in
325330 17 service.
326331 18 (6) Add an amount equal to any deduction allowed under Section
327332 19 172 of the Internal Revenue Code (concerning net operating
328333 20 losses).
329334 21 (7) Add or subtract the amount necessary to make the adjusted
330335 22 gross income of any taxpayer that placed Section 179 property (as
331336 23 defined in Section 179 of the Internal Revenue Code) in service
332337 24 in the current taxable year or in an earlier taxable year equal to
333338 25 the amount of adjusted gross income that would have been
334339 26 computed had an election for federal income tax purposes not
335340 27 been made for the year in which the property was placed in
336341 28 service to take deductions under Section 179 of the Internal
337342 29 Revenue Code in a total amount exceeding the sum of:
338343 30 (A) twenty-five thousand dollars ($25,000) to the extent
339344 31 deductions under Section 179 of the Internal Revenue Code
340345 32 were not elected as provided in clause (B); and
341346 33 (B) for taxable years beginning after December 31, 2017, the
342347 34 deductions elected under Section 179 of the Internal Revenue
343348 35 Code on property acquired in an exchange if:
344349 36 (i) the exchange would have been eligible for
345350 37 nonrecognition of gain or loss under Section 1031 of the
346351 38 Internal Revenue Code in effect on January 1, 2017;
347352 39 (ii) the exchange is not eligible for nonrecognition of gain or
348353 40 loss under Section 1031 of the Internal Revenue Code; and
349354 41 (iii) the taxpayer made an election to take deductions under
350355 42 Section 179 of the Internal Revenue Code with regard to the
351-HB 1252—LS 7167/DI 116 9
356+2022 IN 1252—LS 7167/DI 116 9
352357 1 acquired property in the year that the property was placed
353358 2 into service.
354359 3 The amount of deductions allowable for an item of property
355360 4 under this clause may not exceed the amount of adjusted gross
356361 5 income realized on the property that would have been deferred
357362 6 under the Internal Revenue Code in effect on January 1, 2017.
358363 7 (8) Add to the extent required by IC 6-3-2-20:
359364 8 (A) the amount of intangible expenses (as defined in
360365 9 IC 6-3-2-20) for the taxable year that reduced the corporation's
361366 10 taxable income (as defined in Section 63 of the Internal
362367 11 Revenue Code) for federal income tax purposes; and
363368 12 (B) any directly related interest expenses (as defined in
364369 13 IC 6-3-2-20) that reduced the corporation's adjusted gross
365370 14 income (determined without regard to this subdivision). For
366371 15 purposes of this clause, any directly related interest expense
367372 16 that constitutes business interest within the meaning of Section
368373 17 163(j) of the Internal Revenue Code shall be considered to
369374 18 have reduced the taxpayer's federal taxable income only in the
370375 19 first taxable year in which the deduction otherwise would have
371376 20 been allowable under Section 163 of the Internal Revenue
372377 21 Code if the limitation under Section 163(j)(1) of the Internal
373378 22 Revenue Code did not exist.
374379 23 (9) Add an amount equal to any deduction for dividends paid (as
375380 24 defined in Section 561 of the Internal Revenue Code) to
376381 25 shareholders of a captive real estate investment trust (as defined
377382 26 in section 34.5 of this chapter).
378383 27 (10) Subtract income that is:
379384 28 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
380385 29 derived from patents); and
381386 30 (B) included in the corporation's taxable income under the
382387 31 Internal Revenue Code.
383388 32 (11) Add an amount equal to any income not included in gross
384389 33 income as a result of the deferral of income arising from business
385390 34 indebtedness discharged in connection with the reacquisition after
386391 35 December 31, 2008, and before January 1, 2011, of an applicable
387392 36 debt instrument, as provided in Section 108(i) of the Internal
388393 37 Revenue Code. Subtract from the adjusted gross income of any
389394 38 taxpayer that added an amount to adjusted gross income in a
390395 39 previous year the amount necessary to offset the amount included
391396 40 in federal gross income as a result of the deferral of income
392397 41 arising from business indebtedness discharged in connection with
393398 42 the reacquisition after December 31, 2008, and before January 1,
394-HB 1252—LS 7167/DI 116 10
399+2022 IN 1252—LS 7167/DI 116 10
395400 1 2011, of an applicable debt instrument, as provided in Section
396401 2 108(i) of the Internal Revenue Code.
397402 3 (12) Add the amount excluded from federal gross income under
398403 4 Section 103 of the Internal Revenue Code for interest received on
399404 5 an obligation of a state other than Indiana, or a political
400405 6 subdivision of such a state, that is acquired by the taxpayer after
401406 7 December 31, 2011.
402407 8 (13) For taxable years beginning after December 25, 2016:
403408 9 (A) for a corporation other than a real estate investment trust,
404409 10 add:
405410 11 (i) an amount equal to the amount reported by the taxpayer
406411 12 on IRC 965 Transition Tax Statement, line 1; or
407412 13 (ii) if the taxpayer deducted an amount under Section 965(c)
408413 14 of the Internal Revenue Code in determining the taxpayer's
409414 15 taxable income for purposes of the federal income tax, the
410415 16 amount deducted under Section 965(c) of the Internal
411416 17 Revenue Code; and
412417 18 (B) for a real estate investment trust, add an amount equal to
413418 19 the deduction for deferred foreign income that was claimed by
414419 20 the taxpayer for the taxable year under Section 965(c) of the
415420 21 Internal Revenue Code, but only to the extent that the taxpayer
416421 22 included income pursuant to Section 965 of the Internal
417422 23 Revenue Code in its taxable income for federal income tax
418423 24 purposes or is required to add back dividends paid under
419424 25 subdivision (9).
420425 26 (14) Add an amount equal to the deduction that was claimed by
421426 27 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
422427 28 Internal Revenue Code (attributable to global intangible
423428 29 low-taxed income). The taxpayer shall separately specify the
424429 30 amount of the reduction under Section 250(a)(1)(B)(i) of the
425430 31 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
426431 32 Internal Revenue Code.
427432 33 (15) Subtract any interest expense paid or accrued in the current
428433 34 taxable year but not deducted as a result of the limitation imposed
429434 35 under Section 163(j)(1) of the Internal Revenue Code. Add any
430435 36 interest expense paid or accrued in a previous taxable year but
431436 37 allowed as a deduction under Section 163 of the Internal Revenue
432437 38 Code in the current taxable year. For purposes of this subdivision,
433438 39 an interest expense is considered paid or accrued only in the first
434439 40 taxable year the deduction would have been allowable under
435440 41 Section 163 of the Internal Revenue Code if the limitation under
436441 42 Section 163(j)(1) of the Internal Revenue Code did not exist.
437-HB 1252—LS 7167/DI 116 11
442+2022 IN 1252—LS 7167/DI 116 11
438443 1 (16) Subtract the amount that would have been excluded from
439444 2 gross income but for the enactment of Section 118(b)(2) of the
440445 3 Internal Revenue Code for taxable years ending after December
441446 4 22, 2017.
442447 5 (17) Add an amount equal to the remainder of:
443448 6 (A) the amount allowable as a deduction under Section 274(n)
444449 7 of the Internal Revenue Code; minus
445450 8 (B) the amount otherwise allowable as a deduction under
446451 9 Section 274(n) of the Internal Revenue Code, if Section
447452 10 274(n)(2)(D) of the Internal Revenue Code was not in effect
448453 11 for amounts paid or incurred after December 31, 2020.
449454 12 (18) For taxable years ending after March 12, 2020, subtract an
450455 13 amount equal to the deduction disallowed pursuant to:
451456 14 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
452457 15 as modified by Sections 206 and 207 of the Taxpayer Certainty
453458 16 and Disaster Relief Tax Act (Division EE of Public Law
454459 17 116-260); and
455460 18 (B) Section 3134(e) of the Internal Revenue Code.
456461 19 (19) Add or subtract any other amounts the taxpayer is:
457462 20 (A) required to add or subtract; or
458463 21 (B) entitled to deduct;
459464 22 under IC 6-3-2.
460465 23 (c) The following apply to taxable years beginning after December
461466 24 31, 2018, for purposes of the add back of any deduction allowed on the
462467 25 taxpayer's federal income tax return for wagering taxes, as provided in
463468 26 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
464469 27 the taxpayer is a corporation:
465470 28 (1) For taxable years beginning after December 31, 2018, and
466471 29 before January 1, 2020, a taxpayer is required to add back under
467472 30 this section eighty-seven and five-tenths percent (87.5%) of any
468473 31 deduction allowed on the taxpayer's federal income tax return for
469474 32 wagering taxes.
470475 33 (2) For taxable years beginning after December 31, 2019, and
471476 34 before January 1, 2021, a taxpayer is required to add back under
472477 35 this section seventy-five percent (75%) of any deduction allowed
473478 36 on the taxpayer's federal income tax return for wagering taxes.
474479 37 (3) For taxable years beginning after December 31, 2020, and
475480 38 before January 1, 2022, a taxpayer is required to add back under
476481 39 this section sixty-two and five-tenths percent (62.5%) of any
477482 40 deduction allowed on the taxpayer's federal income tax return for
478483 41 wagering taxes.
479484 42 (4) For taxable years beginning after December 31, 2021, and
480-HB 1252—LS 7167/DI 116 12
485+2022 IN 1252—LS 7167/DI 116 12
481486 1 before January 1, 2023, a taxpayer is required to add back under
482487 2 this section fifty percent (50%) of any deduction allowed on the
483488 3 taxpayer's federal income tax return for wagering taxes.
484489 4 (5) For taxable years beginning after December 31, 2022, and
485490 5 before January 1, 2024, a taxpayer is required to add back under
486491 6 this section thirty-seven and five-tenths percent (37.5%) of any
487492 7 deduction allowed on the taxpayer's federal income tax return for
488493 8 wagering taxes.
489494 9 (6) For taxable years beginning after December 31, 2023, and
490495 10 before January 1, 2025, a taxpayer is required to add back under
491496 11 this section twenty-five percent (25%) of any deduction allowed
492497 12 on the taxpayer's federal income tax return for wagering taxes.
493498 13 (7) For taxable years beginning after December 31, 2024, and
494499 14 before January 1, 2026, a taxpayer is required to add back under
495500 15 this section twelve and five-tenths percent (12.5%) of any
496501 16 deduction allowed on the taxpayer's federal income tax return for
497502 17 wagering taxes.
498503 18 (8) For taxable years beginning after December 31, 2025, a
499504 19 taxpayer is not required to add back under this section any amount
500505 20 of a deduction allowed on the taxpayer's federal income tax return
501506 21 for wagering taxes.
502507 22 (d) In the case of life insurance companies (as defined in Section
503508 23 816(a) of the Internal Revenue Code) that are organized under Indiana
504509 24 law, the same as "life insurance company taxable income" (as defined
505510 25 in Section 801 of the Internal Revenue Code), adjusted as follows:
506511 26 (1) Subtract income that is exempt from taxation under this article
507512 27 by the Constitution and statutes of the United States.
508513 28 (2) Add an amount equal to any deduction allowed or allowable
509514 29 under Section 170 of the Internal Revenue Code (concerning
510515 30 charitable contributions).
511516 31 (3) Add an amount equal to a deduction allowed or allowable
512517 32 under Section 805 or Section 832(c) of the Internal Revenue Code
513518 33 for taxes based on or measured by income and levied at the state
514519 34 level by any state.
515520 35 (4) Subtract an amount equal to the amount included in the
516521 36 company's taxable income under Section 78 of the Internal
517522 37 Revenue Code (concerning foreign tax credits).
518523 38 (5) Add or subtract the amount necessary to make the adjusted
519524 39 gross income of any taxpayer that owns property for which bonus
520525 40 depreciation was allowed in the current taxable year or in an
521526 41 earlier taxable year equal to the amount of adjusted gross income
522527 42 that would have been computed had an election not been made
523-HB 1252—LS 7167/DI 116 13
528+2022 IN 1252—LS 7167/DI 116 13
524529 1 under Section 168(k) of the Internal Revenue Code to apply bonus
525530 2 depreciation to the property in the year that it was placed in
526531 3 service.
527532 4 (6) Add an amount equal to any deduction allowed under Section
528533 5 172 of the Internal Revenue Code (concerning net operating
529534 6 losses).
530535 7 (7) Add or subtract the amount necessary to make the adjusted
531536 8 gross income of any taxpayer that placed Section 179 property (as
532537 9 defined in Section 179 of the Internal Revenue Code) in service
533538 10 in the current taxable year or in an earlier taxable year equal to
534539 11 the amount of adjusted gross income that would have been
535540 12 computed had an election for federal income tax purposes not
536541 13 been made for the year in which the property was placed in
537542 14 service to take deductions under Section 179 of the Internal
538543 15 Revenue Code in a total amount exceeding the sum of:
539544 16 (A) twenty-five thousand dollars ($25,000) to the extent
540545 17 deductions under Section 179 of the Internal Revenue Code
541546 18 were not elected as provided in clause (B); and
542547 19 (B) for taxable years beginning after December 31, 2017, the
543548 20 deductions elected under Section 179 of the Internal Revenue
544549 21 Code on property acquired in an exchange if:
545550 22 (i) the exchange would have been eligible for
546551 23 nonrecognition of gain or loss under Section 1031 of the
547552 24 Internal Revenue Code in effect on January 1, 2017;
548553 25 (ii) the exchange is not eligible for nonrecognition of gain or
549554 26 loss under Section 1031 of the Internal Revenue Code; and
550555 27 (iii) the taxpayer made an election to take deductions under
551556 28 Section 179 of the Internal Revenue Code with regard to the
552557 29 acquired property in the year that the property was placed
553558 30 into service.
554559 31 The amount of deductions allowable for an item of property
555560 32 under this clause may not exceed the amount of adjusted gross
556561 33 income realized on the property that would have been deferred
557562 34 under the Internal Revenue Code in effect on January 1, 2017.
558563 35 (8) Subtract income that is:
559564 36 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
560565 37 derived from patents); and
561566 38 (B) included in the insurance company's taxable income under
562567 39 the Internal Revenue Code.
563568 40 (9) Add an amount equal to any income not included in gross
564569 41 income as a result of the deferral of income arising from business
565570 42 indebtedness discharged in connection with the reacquisition after
566-HB 1252—LS 7167/DI 116 14
571+2022 IN 1252—LS 7167/DI 116 14
567572 1 December 31, 2008, and before January 1, 2011, of an applicable
568573 2 debt instrument, as provided in Section 108(i) of the Internal
569574 3 Revenue Code. Subtract from the adjusted gross income of any
570575 4 taxpayer that added an amount to adjusted gross income in a
571576 5 previous year the amount necessary to offset the amount included
572577 6 in federal gross income as a result of the deferral of income
573578 7 arising from business indebtedness discharged in connection with
574579 8 the reacquisition after December 31, 2008, and before January 1,
575580 9 2011, of an applicable debt instrument, as provided in Section
576581 10 108(i) of the Internal Revenue Code.
577582 11 (10) Add an amount equal to any exempt insurance income under
578583 12 Section 953(e) of the Internal Revenue Code that is active
579584 13 financing income under Subpart F of Subtitle A, Chapter 1,
580585 14 Subchapter N of the Internal Revenue Code.
581586 15 (11) Add the amount excluded from federal gross income under
582587 16 Section 103 of the Internal Revenue Code for interest received on
583588 17 an obligation of a state other than Indiana, or a political
584589 18 subdivision of such a state, that is acquired by the taxpayer after
585590 19 December 31, 2011.
586591 20 (12) For taxable years beginning after December 25, 2016, add:
587592 21 (A) an amount equal to the amount reported by the taxpayer on
588593 22 IRC 965 Transition Tax Statement, line 1; or
589594 23 (B) if the taxpayer deducted an amount under Section 965(c)
590595 24 of the Internal Revenue Code in determining the taxpayer's
591596 25 taxable income for purposes of the federal income tax, the
592597 26 amount deducted under Section 965(c) of the Internal Revenue
593598 27 Code.
594599 28 (13) Add an amount equal to the deduction that was claimed by
595600 29 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
596601 30 Internal Revenue Code (attributable to global intangible
597602 31 low-taxed income). The taxpayer shall separately specify the
598603 32 amount of the reduction under Section 250(a)(1)(B)(i) of the
599604 33 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
600605 34 Internal Revenue Code.
601606 35 (14) Subtract any interest expense paid or accrued in the current
602607 36 taxable year but not deducted as a result of the limitation imposed
603608 37 under Section 163(j)(1) of the Internal Revenue Code. Add any
604609 38 interest expense paid or accrued in a previous taxable year but
605610 39 allowed as a deduction under Section 163 of the Internal Revenue
606611 40 Code in the current taxable year. For purposes of this subdivision,
607612 41 an interest expense is considered paid or accrued only in the first
608613 42 taxable year the deduction would have been allowable under
609-HB 1252—LS 7167/DI 116 15
614+2022 IN 1252—LS 7167/DI 116 15
610615 1 Section 163 of the Internal Revenue Code if the limitation under
611616 2 Section 163(j)(1) of the Internal Revenue Code did not exist.
612617 3 (15) Subtract the amount that would have been excluded from
613618 4 gross income but for the enactment of Section 118(b)(2) of the
614619 5 Internal Revenue Code for taxable years ending after December
615620 6 22, 2017.
616621 7 (16) Add an amount equal to the remainder of:
617622 8 (A) the amount allowable as a deduction under Section 274(n)
618623 9 of the Internal Revenue Code; minus
619624 10 (B) the amount otherwise allowable as a deduction under
620625 11 Section 274(n) of the Internal Revenue Code, if Section
621626 12 274(n)(2)(D) of the Internal Revenue Code was not in effect
622627 13 for amounts paid or incurred after December 31, 2020.
623628 14 (17) For taxable years ending after March 12, 2020, subtract an
624629 15 amount equal to the deduction disallowed pursuant to:
625630 16 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
626631 17 as modified by Sections 206 and 207 of the Taxpayer Certainty
627632 18 and Disaster Relief Tax Act (Division EE of Public Law
628633 19 116-260); and
629634 20 (B) Section 3134(e) of the Internal Revenue Code.
630635 21 (18) Add or subtract any other amounts the taxpayer is:
631636 22 (A) required to add or subtract; or
632637 23 (B) entitled to deduct;
633638 24 under IC 6-3-2.
634639 25 (e) In the case of insurance companies subject to tax under Section
635640 26 831 of the Internal Revenue Code and organized under Indiana law, the
636641 27 same as "taxable income" (as defined in Section 832 of the Internal
637642 28 Revenue Code), adjusted as follows:
638643 29 (1) Subtract income that is exempt from taxation under this article
639644 30 by the Constitution and statutes of the United States.
640645 31 (2) Add an amount equal to any deduction allowed or allowable
641646 32 under Section 170 of the Internal Revenue Code (concerning
642647 33 charitable contributions).
643648 34 (3) Add an amount equal to a deduction allowed or allowable
644649 35 under Section 805 or Section 832(c) of the Internal Revenue Code
645650 36 for taxes based on or measured by income and levied at the state
646651 37 level by any state.
647652 38 (4) Subtract an amount equal to the amount included in the
648653 39 company's taxable income under Section 78 of the Internal
649654 40 Revenue Code (concerning foreign tax credits).
650655 41 (5) Add or subtract the amount necessary to make the adjusted
651656 42 gross income of any taxpayer that owns property for which bonus
652-HB 1252—LS 7167/DI 116 16
657+2022 IN 1252—LS 7167/DI 116 16
653658 1 depreciation was allowed in the current taxable year or in an
654659 2 earlier taxable year equal to the amount of adjusted gross income
655660 3 that would have been computed had an election not been made
656661 4 under Section 168(k) of the Internal Revenue Code to apply bonus
657662 5 depreciation to the property in the year that it was placed in
658663 6 service.
659664 7 (6) Add an amount equal to any deduction allowed under Section
660665 8 172 of the Internal Revenue Code (concerning net operating
661666 9 losses).
662667 10 (7) Add or subtract the amount necessary to make the adjusted
663668 11 gross income of any taxpayer that placed Section 179 property (as
664669 12 defined in Section 179 of the Internal Revenue Code) in service
665670 13 in the current taxable year or in an earlier taxable year equal to
666671 14 the amount of adjusted gross income that would have been
667672 15 computed had an election for federal income tax purposes not
668673 16 been made for the year in which the property was placed in
669674 17 service to take deductions under Section 179 of the Internal
670675 18 Revenue Code in a total amount exceeding the sum of:
671676 19 (A) twenty-five thousand dollars ($25,000) to the extent
672677 20 deductions under Section 179 of the Internal Revenue Code
673678 21 were not elected as provided in clause (B); and
674679 22 (B) for taxable years beginning after December 31, 2017, the
675680 23 deductions elected under Section 179 of the Internal Revenue
676681 24 Code on property acquired in an exchange if:
677682 25 (i) the exchange would have been eligible for
678683 26 nonrecognition of gain or loss under Section 1031 of the
679684 27 Internal Revenue Code in effect on January 1, 2017;
680685 28 (ii) the exchange is not eligible for nonrecognition of gain or
681686 29 loss under Section 1031 of the Internal Revenue Code; and
682687 30 (iii) the taxpayer made an election to take deductions under
683688 31 Section 179 of the Internal Revenue Code with regard to the
684689 32 acquired property in the year that the property was placed
685690 33 into service.
686691 34 The amount of deductions allowable for an item of property
687692 35 under this clause may not exceed the amount of adjusted gross
688693 36 income realized on the property that would have been deferred
689694 37 under the Internal Revenue Code in effect on January 1, 2017.
690695 38 (8) Subtract income that is:
691696 39 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
692697 40 derived from patents); and
693698 41 (B) included in the insurance company's taxable income under
694699 42 the Internal Revenue Code.
695-HB 1252—LS 7167/DI 116 17
700+2022 IN 1252—LS 7167/DI 116 17
696701 1 (9) Add an amount equal to any income not included in gross
697702 2 income as a result of the deferral of income arising from business
698703 3 indebtedness discharged in connection with the reacquisition after
699704 4 December 31, 2008, and before January 1, 2011, of an applicable
700705 5 debt instrument, as provided in Section 108(i) of the Internal
701706 6 Revenue Code. Subtract from the adjusted gross income of any
702707 7 taxpayer that added an amount to adjusted gross income in a
703708 8 previous year the amount necessary to offset the amount included
704709 9 in federal gross income as a result of the deferral of income
705710 10 arising from business indebtedness discharged in connection with
706711 11 the reacquisition after December 31, 2008, and before January 1,
707712 12 2011, of an applicable debt instrument, as provided in Section
708713 13 108(i) of the Internal Revenue Code.
709714 14 (10) Add an amount equal to any exempt insurance income under
710715 15 Section 953(e) of the Internal Revenue Code that is active
711716 16 financing income under Subpart F of Subtitle A, Chapter 1,
712717 17 Subchapter N of the Internal Revenue Code.
713718 18 (11) Add the amount excluded from federal gross income under
714719 19 Section 103 of the Internal Revenue Code for interest received on
715720 20 an obligation of a state other than Indiana, or a political
716721 21 subdivision of such a state, that is acquired by the taxpayer after
717722 22 December 31, 2011.
718723 23 (12) For taxable years beginning after December 25, 2016, add:
719724 24 (A) an amount equal to the amount reported by the taxpayer on
720725 25 IRC 965 Transition Tax Statement, line 1; or
721726 26 (B) if the taxpayer deducted an amount under Section 965(c)
722727 27 of the Internal Revenue Code in determining the taxpayer's
723728 28 taxable income for purposes of the federal income tax, the
724729 29 amount deducted under Section 965(c) of the Internal Revenue
725730 30 Code.
726731 31 (13) Add an amount equal to the deduction that was claimed by
727732 32 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
728733 33 Internal Revenue Code (attributable to global intangible
729734 34 low-taxed income). The taxpayer shall separately specify the
730735 35 amount of the reduction under Section 250(a)(1)(B)(i) of the
731736 36 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
732737 37 Internal Revenue Code.
733738 38 (14) Subtract any interest expense paid or accrued in the current
734739 39 taxable year but not deducted as a result of the limitation imposed
735740 40 under Section 163(j)(1) of the Internal Revenue Code. Add any
736741 41 interest expense paid or accrued in a previous taxable year but
737742 42 allowed as a deduction under Section 163 of the Internal Revenue
738-HB 1252—LS 7167/DI 116 18
743+2022 IN 1252—LS 7167/DI 116 18
739744 1 Code in the current taxable year. For purposes of this subdivision,
740745 2 an interest expense is considered paid or accrued only in the first
741746 3 taxable year the deduction would have been allowable under
742747 4 Section 163 of the Internal Revenue Code if the limitation under
743748 5 Section 163(j)(1) of the Internal Revenue Code did not exist.
744749 6 (15) Subtract the amount that would have been excluded from
745750 7 gross income but for the enactment of Section 118(b)(2) of the
746751 8 Internal Revenue Code for taxable years ending after December
747752 9 22, 2017.
748753 10 (16) Add an amount equal to the remainder of:
749754 11 (A) the amount allowable as a deduction under Section 274(n)
750755 12 of the Internal Revenue Code; minus
751756 13 (B) the amount otherwise allowable as a deduction under
752757 14 Section 274(n) of the Internal Revenue Code, if Section
753758 15 274(n)(2)(D) of the Internal Revenue Code was not in effect
754759 16 for amounts paid or incurred after December 31, 2020.
755760 17 (17) For taxable years ending after March 12, 2020, subtract an
756761 18 amount equal to the deduction disallowed pursuant to:
757762 19 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
758763 20 as modified by Sections 206 and 207 of the Taxpayer Certainty
759764 21 and Disaster Relief Tax Act (Division EE of Public Law
760765 22 116-260); and
761766 23 (B) Section 3134(e) of the Internal Revenue Code.
762767 24 (18) Add or subtract any other amounts the taxpayer is:
763768 25 (A) required to add or subtract; or
764769 26 (B) entitled to deduct;
765770 27 under IC 6-3-2.
766771 28 (f) In the case of trusts and estates, "taxable income" (as defined for
767772 29 trusts and estates in Section 641(b) of the Internal Revenue Code)
768773 30 adjusted as follows:
769774 31 (1) Subtract income that is exempt from taxation under this article
770775 32 by the Constitution and statutes of the United States.
771776 33 (2) Subtract an amount equal to the amount of a September 11
772777 34 terrorist attack settlement payment included in the federal
773778 35 adjusted gross income of the estate of a victim of the September
774779 36 11 terrorist attack or a trust to the extent the trust benefits a victim
775780 37 of the September 11 terrorist attack.
776781 38 (3) Add or subtract the amount necessary to make the adjusted
777782 39 gross income of any taxpayer that owns property for which bonus
778783 40 depreciation was allowed in the current taxable year or in an
779784 41 earlier taxable year equal to the amount of adjusted gross income
780785 42 that would have been computed had an election not been made
781-HB 1252—LS 7167/DI 116 19
786+2022 IN 1252—LS 7167/DI 116 19
782787 1 under Section 168(k) of the Internal Revenue Code to apply bonus
783788 2 depreciation to the property in the year that it was placed in
784789 3 service.
785790 4 (4) Add an amount equal to any deduction allowed under Section
786791 5 172 of the Internal Revenue Code (concerning net operating
787792 6 losses).
788793 7 (5) Add or subtract the amount necessary to make the adjusted
789794 8 gross income of any taxpayer that placed Section 179 property (as
790795 9 defined in Section 179 of the Internal Revenue Code) in service
791796 10 in the current taxable year or in an earlier taxable year equal to
792797 11 the amount of adjusted gross income that would have been
793798 12 computed had an election for federal income tax purposes not
794799 13 been made for the year in which the property was placed in
795800 14 service to take deductions under Section 179 of the Internal
796801 15 Revenue Code in a total amount exceeding the sum of:
797802 16 (A) twenty-five thousand dollars ($25,000) to the extent
798803 17 deductions under Section 179 of the Internal Revenue Code
799804 18 were not elected as provided in clause (B); and
800805 19 (B) for taxable years beginning after December 31, 2017, the
801806 20 deductions elected under Section 179 of the Internal Revenue
802807 21 Code on property acquired in an exchange if:
803808 22 (i) the exchange would have been eligible for
804809 23 nonrecognition of gain or loss under Section 1031 of the
805810 24 Internal Revenue Code in effect on January 1, 2017;
806811 25 (ii) the exchange is not eligible for nonrecognition of gain or
807812 26 loss under Section 1031 of the Internal Revenue Code; and
808813 27 (iii) the taxpayer made an election to take deductions under
809814 28 Section 179 of the Internal Revenue Code with regard to the
810815 29 acquired property in the year that the property was placed
811816 30 into service.
812817 31 The amount of deductions allowable for an item of property
813818 32 under this clause may not exceed the amount of adjusted gross
814819 33 income realized on the property that would have been deferred
815820 34 under the Internal Revenue Code in effect on January 1, 2017.
816821 35 (6) Subtract income that is:
817822 36 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
818823 37 derived from patents); and
819824 38 (B) included in the taxpayer's taxable income under the
820825 39 Internal Revenue Code.
821826 40 (7) Add an amount equal to any income not included in gross
822827 41 income as a result of the deferral of income arising from business
823828 42 indebtedness discharged in connection with the reacquisition after
824-HB 1252—LS 7167/DI 116 20
829+2022 IN 1252—LS 7167/DI 116 20
825830 1 December 31, 2008, and before January 1, 2011, of an applicable
826831 2 debt instrument, as provided in Section 108(i) of the Internal
827832 3 Revenue Code. Subtract from the adjusted gross income of any
828833 4 taxpayer that added an amount to adjusted gross income in a
829834 5 previous year the amount necessary to offset the amount included
830835 6 in federal gross income as a result of the deferral of income
831836 7 arising from business indebtedness discharged in connection with
832837 8 the reacquisition after December 31, 2008, and before January 1,
833838 9 2011, of an applicable debt instrument, as provided in Section
834839 10 108(i) of the Internal Revenue Code.
835840 11 (8) Add the amount excluded from federal gross income under
836841 12 Section 103 of the Internal Revenue Code for interest received on
837842 13 an obligation of a state other than Indiana, or a political
838843 14 subdivision of such a state, that is acquired by the taxpayer after
839844 15 December 31, 2011.
840845 16 (9) For taxable years beginning after December 25, 2016, add an
841846 17 amount equal to:
842847 18 (A) the amount reported by the taxpayer on IRC 965
843848 19 Transition Tax Statement, line 1;
844849 20 (B) if the taxpayer deducted an amount under Section 965(c)
845850 21 of the Internal Revenue Code in determining the taxpayer's
846851 22 taxable income for purposes of the federal income tax, the
847852 23 amount deducted under Section 965(c) of the Internal Revenue
848853 24 Code; and
849854 25 (C) with regard to any amounts of income under Section 965
850855 26 of the Internal Revenue Code distributed by the taxpayer, the
851856 27 deduction under Section 965(c) of the Internal Revenue Code
852857 28 attributable to such distributed amounts and not reported to the
853858 29 beneficiary.
854859 30 For purposes of this article, the amount required to be added back
855860 31 under clause (B) is not considered to be distributed or
856861 32 distributable to a beneficiary of the estate or trust for purposes of
857862 33 Sections 651 and 661 of the Internal Revenue Code.
858863 34 (10) Subtract any interest expense paid or accrued in the current
859864 35 taxable year but not deducted as a result of the limitation imposed
860865 36 under Section 163(j)(1) of the Internal Revenue Code. Add any
861866 37 interest expense paid or accrued in a previous taxable year but
862867 38 allowed as a deduction under Section 163 of the Internal Revenue
863868 39 Code in the current taxable year. For purposes of this subdivision,
864869 40 an interest expense is considered paid or accrued only in the first
865870 41 taxable year the deduction would have been allowable under
866871 42 Section 163 of the Internal Revenue Code if the limitation under
867-HB 1252—LS 7167/DI 116 21
872+2022 IN 1252—LS 7167/DI 116 21
868873 1 Section 163(j)(1) of the Internal Revenue Code did not exist.
869874 2 (11) Add an amount equal to the deduction for qualified business
870875 3 income that was claimed by the taxpayer for the taxable year
871876 4 under Section 199A of the Internal Revenue Code.
872877 5 (12) Subtract the amount that would have been excluded from
873878 6 gross income but for the enactment of Section 118(b)(2) of the
874879 7 Internal Revenue Code for taxable years ending after December
875880 8 22, 2017.
876881 9 (13) Add an amount equal to the remainder of:
877882 10 (A) the amount allowable as a deduction under Section 274(n)
878883 11 of the Internal Revenue Code; minus
879884 12 (B) the amount otherwise allowable as a deduction under
880885 13 Section 274(n) of the Internal Revenue Code, if Section
881886 14 274(n)(2)(D) of the Internal Revenue Code was not in effect
882887 15 for amounts paid or incurred after December 31, 2020.
883888 16 (14) For taxable years beginning after December 31, 2017, and
884889 17 before January 1, 2021, add an amount equal to the excess
885890 18 business loss of the taxpayer as defined in Section 461(l)(3) of the
886891 19 Internal Revenue Code. In addition:
887892 20 (A) If a taxpayer has an excess business loss under this
888893 21 subdivision and also has modifications under subdivisions (3)
889894 22 and (5) for property placed in service during the taxable year,
890895 23 the taxpayer shall treat a portion of the taxable year
891896 24 modifications for that property as occurring in the taxable year
892897 25 the property is placed in service and a portion of the
893898 26 modifications as occurring in the immediately following
894899 27 taxable year.
895900 28 (B) The portion of the modifications under subdivisions (3)
896901 29 and (5) for property placed in service during the taxable year
897902 30 treated as occurring in the taxable year in which the property
898903 31 is placed in service equals:
899904 32 (i) the modification for the property otherwise determined
900905 33 under this section; minus
901906 34 (ii) the excess business loss disallowed under this
902907 35 subdivision;
903908 36 but not less than zero (0).
904909 37 (C) The portion of the modifications under subdivisions (3)
905910 38 and (5) for property placed in service during the taxable year
906911 39 treated as occurring in the taxable year immediately following
907912 40 the taxable year in which the property is placed in service
908913 41 equals the modification for the property otherwise determined
909914 42 under this section minus the amount in clause (B).
910-HB 1252—LS 7167/DI 116 22
915+2022 IN 1252—LS 7167/DI 116 22
911916 1 (D) Any reallocation of modifications between taxable years
912917 2 under clauses (B) and (C) shall be first allocated to the
913918 3 modification under subdivision (3), then to the modification
914919 4 under subdivision (5).
915920 5 (15) For taxable years ending after March 12, 2020, subtract an
916921 6 amount equal to the deduction disallowed pursuant to:
917922 7 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
918923 8 as modified by Sections 206 and 207 of the Taxpayer Certainty
919924 9 and Disaster Relief Tax Act (Division EE of Public Law
920925 10 116-260); and
921926 11 (B) Section 3134(e) of the Internal Revenue Code.
922927 12 (16) Add or subtract any other amounts the taxpayer is:
923928 13 (A) required to add or subtract; or
924929 14 (B) entitled to deduct;
925930 15 under IC 6-3-2.
926931 16 (g) Subsections (a)(34), (b)(19), (d)(18), (e)(18), or (f)(16) may not
927932 17 be construed to require an add back or allow a deduction or exemption
928933 18 more than once for a particular add back, deduction, or exemption.
929934 19 (h) For taxable years beginning after December 25, 2016, if:
930935 20 (1) a taxpayer is a shareholder, either directly or indirectly, in a
931936 21 corporation that is an E&P deficit foreign corporation as defined
932937 22 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
933938 23 earnings and profit deficit, or a portion of the earnings and profit
934939 24 deficit, of the E&P deficit foreign corporation is permitted to
935940 25 reduce the federal adjusted gross income or federal taxable
936941 26 income of the taxpayer, the deficit, or the portion of the deficit,
937942 27 shall also reduce the amount taxable under this section to the
938943 28 extent permitted under the Internal Revenue Code, however, in no
939944 29 case shall this permit a reduction in the amount taxable under
940945 30 Section 965 of the Internal Revenue Code for purposes of this
941946 31 section to be less than zero (0); and
942947 32 (2) the Internal Revenue Service issues guidance that such an
943948 33 income or deduction is not reported directly on a federal tax
944949 34 return or is to be reported in a manner different than specified in
945950 35 this section, this section shall be construed as if federal adjusted
946951 36 gross income or federal taxable income included the income or
947952 37 deduction.
948953 38 (i) If a partner is required to include an item of income, a deduction,
949954 39 or another tax attribute in the partner's adjusted gross income tax return
950955 40 pursuant to IC 6-3-4.5, such item shall be considered to be includible
951956 41 in the partner's federal adjusted gross income or federal taxable
952957 42 income, regardless of whether such item is actually required to be
953-HB 1252—LS 7167/DI 116 23
958+2022 IN 1252—LS 7167/DI 116 23
954959 1 reported by the partner for federal income tax purposes. For purposes
955960 2 of this subsection:
956961 3 (1) items for which a valid election is made under IC 6-3-4.5-6,
957962 4 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
958963 5 in the partner's adjusted gross income or taxable income; and
959964 6 (2) items for which the partnership did not make an election under
960965 7 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
961966 8 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
962967 9 shall be included in the partner's adjusted gross income or taxable
963968 10 income.
964969 11 SECTION 2. IC 20-52 IS ADDED TO THE INDIANA CODE AS
965970 12 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
966971 13 PASSAGE]:
967972 14 ARTICLE 52. STUDENT ENRICHMENT GRANTS
968973 15 Chapter 1. Applicability
969974 16 Sec. 1. This article applies after June 30, 2022.
970975 17 Chapter 2. Definitions
971976 18 Sec. 1. The definitions in this chapter apply throughout this
972977 19 article.
973978 20 Sec. 2. "Account" refers to an Indiana enrichment scholarship
974979 21 account established by an enrichment student's parent under
975980 22 IC 20-52-4-1.
976-23 Sec. 3. "Enrichment student" refers to an individual who:
977-24 (1) has legal settlement in Indiana; and
978-25 (2) meets the criteria established by the department under
979-26 IC 20-52-3-3(a).
980-27 Sec. 4. "Participating entity" means any individual or entity
981-28 who provides a qualified expense who is approved by the
982-29 department under IC 20-52-5-1.
983-30 Sec. 5. "Program" refers to the Indiana student enrichment
984-31 grant program established by IC 20-52-3-1.
985-32 Sec. 6. "Qualified expenses" means enrichment materials,
986-33 activities, or programs approved by the department to improve
987-34 student proficiency in math or reading.
988-35 Chapter 3. Administration of the Indiana Student Enrichment
989-36 Grant Program
990-37 Sec. 1. The Indiana student enrichment grant program is
991-38 established to provide grants to a parent of an enrichment student
992-39 under IC 20-52-4 after August 31, 2022.
993-40 Sec. 2. (a) The program shall be administered by the
994-41 department.
995-42 (b) The department may contract with one (1) or more entities
996-HB 1252—LS 7167/DI 116 24
997-1 to maintain and manage accounts established under IC 20-52-4-1.
998-2 Each entity shall:
999-3 (1) meet qualification requirements established by the
1000-4 department; and
1001-5 (2) comply with generally accepted accounting principles.
1002-6 (c) The department shall establish reasonable fees for entities
1003-7 described in subsection (b) participating in the program based
1004-8 upon market rates.
1005-9 Sec. 3. (a) The department shall establish criteria for
1006-10 determining who is considered an enrichment student.
1007-11 (b) For each school year, the department shall determine, based
1008-12 on the amount of funds available for the program, the number of
1009-13 grants that the department will award under the program. The
1010-14 number of applications approved and the number of grants
1011-15 awarded under this article by the department for the school year
1012-16 may not exceed the number determined by the department under
1013-17 this section.
1014-18 Chapter 4. Enrichment Grant Accounts
1015-19 Sec. 1. (a) After August 31, 2022, a parent of an enrichment
1016-20 student may establish an Indiana enrichment scholarship account
1017-21 for the eligible student by entering into a written agreement with
1018-22 the department on a form prepared by the department. The
1019-23 department may establish deadlines for the submission of
1020-24 applications. The account of an enrichment student shall be made
1021-25 in the name of the enrichment student. The department shall make
1022-26 the agreement available on the Internet web site of the department.
1023-27 To be eligible, a parent of an enrichment student wishing to
1024-28 participate in the program must agree that:
1025-29 (1) a grant deposited in the enrichment student's account
1026-30 under section 2 of this chapter will be used only for the
1027-31 enrichment student's qualified expenses;
1028-32 (2) the parent of the enrichment student will use money in the
1029-33 account for the enrichment student's study in the subject of
1030-34 reading or math;
1031-35 (3) the parent will share the enrichment student's ILEARN
1032-36 assessment results with the participating entity; and
1033-37 (4) services relating to qualified services will not be provided
1034-38 to the enrichment student during normal school hours.
1035-39 (b) A parent of an enrichment student may enter into a separate
1036-40 agreement under subsection (a) for each child of the parent.
1037-41 However, not more than one (1) account may be established for
1038-42 each enrichment student.
1039-HB 1252—LS 7167/DI 116 25
1040-1 (c) An agreement entered into under this section for an
1041-2 enrichment student terminates automatically for the enrichment
1042-3 student if the enrichment student no longer resides in Indiana
1043-4 while the enrichment student is eligible to receive grants under
1044-5 section 2 of this chapter.
1045-6 (d) An agreement made under this section for an enrichment
1046-7 student may be terminated before the end of the school year if the
1047-8 parent of the enrichment student notifies the department in a
1048-9 manner specified by the department.
1049-10 (e) A distribution made to an account under section 2 of this
1050-11 chapter is considered tax exempt as long as the distribution is used
1051-12 for a qualified expense. The amount is subtracted from the
1052-13 definition of adjusted federal gross income under IC 6-3-1-3.5 to
1053-14 the extent the distribution used for the qualified expense is
1054-15 included in the taxpayer's adjusted federal gross income under the
1055-16 Internal Revenue Code.
1056-17 Sec. 2. (a) An enrichment student who currently maintains an
1057-18 account is entitled to a one (1) time grant amount. The department
1058-19 shall deposit the enrichment grant amount under this section, as a
1059-20 one (1) time deposit, into an enrichment student's account in a
1060-21 manner established by the department.
1061-22 (b) Except as provided in subsection (c), at the end of the year
1062-23 in which an account is established, the parent of an enrichment
1063-24 student may roll over for use in a subsequent year the amount
1064-25 available in the enrichment student's account.
1065-26 (c) An enrichment student's account shall terminate October 1,
1066-27 2024.
1067-28 Sec. 3. (a) Subject to section 7 of this chapter, the one (1) time
1068-29 enrichment grant amount under section 2 of this chapter for an
1069-30 enrichment student equals the higher of:
1070-31 (1) five hundred dollars ($500); or
1071-32 (2) if the school corporation or school provides a matching
1072-33 grant to the enrichment student under this section, one
1073-34 thousand dollars ($1,000).
1074-35 (b) A school corporation or a school may provide a matching
1075-36 grant of two hundred fifty dollars ($250) to an enrichment student
1076-37 under this chapter.
1077-38 Sec. 4. Upon entering into an agreement under this chapter, the
1078-39 department shall provide to the parent of an enrichment student a
1079-40 written explanation of the authorized uses of the money in the
1080-41 account and the responsibilities of the parent of an enrichment
1081-42 student and the department regarding an account established
1082-HB 1252—LS 7167/DI 116 26
1083-1 under section 1 of this chapter.
1084-2 Sec. 5. This chapter does not prohibit a parent of an enrichment
1085-3 student from making a payment for any qualified expense from a
1086-4 source other than the enrichment student's account.
1087-5 Sec. 6. A participating entity that receives a payment for a
1088-6 qualified expense may not refund any part of the payment directly
1089-7 to the parent of the enrichment student. Any refund provided by
1090-8 a participating entity shall be deposited into the enrichment
1091-9 student's account.
1092-10 Sec. 7. (a) The department shall freeze the account established
1093-11 under section 1 of this chapter of any parent of an enrichment
1094-12 student who:
1095-13 (1) fails to comply with the terms of the agreement established
1096-14 under section 1 of this chapter;
1097-15 (2) fails to comply with applicable laws or regulations; or
1098-16 (3) substantially misuses funds in the account.
1099-17 (b) The department shall send written notice to the parent of the
1100-18 enrichment student stating the reason for the freeze under
1101-19 subsection (a). The department may also send notice to the
1102-20 attorney general or the prosecuting attorney in the county in which
1103-21 the parent of the enrichment student resides if the department
1104-22 believes a crime has been committed or a civil action relating to the
1105-23 account is necessary.
1106-24 (c) A parent of an enrichment student whose account has been
1107-25 frozen under subsection (a) may petition the department for
1108-26 redetermination of the decision under subsection (a) within thirty
1109-27 (30) days after the date the department sends notice to the parent
1110-28 of the enrichment student under subsection (b). The petition must
1111-29 contain a written explanation stating why the department was
1112-30 incorrect in freezing the account under subsection (a). If the
1113-31 department does not receive a timely submitted petition from a
1114-32 parent of an enrichment student under this subsection, the
1115-33 department shall terminate the account.
1116-34 (d) The department shall review a petition received under
1117-35 subsection (c) within fifteen (15) business days of receipt of the
1118-36 petition and issue a redetermination letter to the parent of the
1119-37 enrichment student. If the department overturns the department's
1120-38 initial decision under subsection (a), the department shall
1121-39 immediately unfreeze the account. If the department affirms the
1122-40 decision under subsection (a), the department shall give notice of
1123-41 the affirmation to the parent of the enrichment student and
1124-42 terminate the account.
1125-HB 1252—LS 7167/DI 116 27
1126-1 Sec. 8. Distributions made to an account under section 2 of this
1127-2 chapter or money in the account may not be treated as income or
1128-3 a resource for purposes of qualifying for any other federal or state
1129-4 grant or program administered by the state or a political
1130-5 subdivision.
1131-6 Chapter 5. Participating Entities
1132-7 Sec. 1. (a) The following individuals, organizations, or entities
1133-8 may become a participating entity by submitting an application to
1134-9 the department in a manner prescribed by the department:
1135-10 (1) An organization or tutoring agency that provides private
1136-11 tutoring.
1137-12 (2) An organization or entity that provides services to a
1138-13 student with a disability in accordance with an individualized
1139-14 education program developed under IC 20-35 or a service
1140-15 plan developed under 511 IAC 7-34 or generally accepted
1141-16 standards of care prescribed by the enrichment student's
1142-17 treating physician.
1143-18 (3) An organization or entity that offers a course or program
1144-19 to an enrichment student.
1145-20 (4) An organization or entity that provides or offers a
1146-21 qualified expense.
1147-22 (5) Community based organizations.
1148-23 (6) Philanthropic organizations.
1149-24 (7) Institutions of higher education.
1150-25 (8) Prospective, current, and retired teachers.
1151-26 (b) Upon completion of services by a participating entity, the
1152-27 participating entity must provide the enrichment student's school
1153-28 with a summary of services performed by the participating entity
1154-29 for the enrichment student.
1155-30 (c) The department may approve an application submitted
1156-31 under subsection (a) if the individual, organization, or entity meets
1157-32 the criteria to serve as a participating entity.
1158-33 (d) Each participating entity that accepts payments made from
1159-34 an account under this article shall provide a receipt to the parent
1160-35 of an enrichment student for each payment made.
1161-36 Sec. 2. (a) The department may refuse to allow a participating
1162-37 entity to continue participation in the program and revoke the
1163-38 participating entity's status as a participating entity if the
1164-39 department determines that the participating entity accepts
1165-40 payments made from an account under this article and:
1166-41 (1) has failed to provide any educational service required by
1167-42 state or federal law to an enrichment student receiving
1168-HB 1252—LS 7167/DI 116 28
1169-1 instruction from the participating entity; or
1170-2 (2) has routinely failed to meet the requirements of a
1171-3 participating entity under the program.
1172-4 (b) If the department revokes a participating entity's status as
1173-5 a participating entity in the program, the department shall provide
1174-6 notice of the revocation within thirty (30) days of the revocation to
1175-7 each parent of an enrichment student receiving instruction from
1176-8 the participating entity who has paid the participating entity from
1177-9 the enrichment student's account.
1178-10 (c) The department may permit a former participating entity
1179-11 described in subsection (a) to reapply with the department for
1180-12 authorization to be a participating entity on a date established by
1181-13 the department, which may not be earlier than one (1) year after
1182-14 the date on which the former participating entity's status as a
1183-15 participating entity was revoked under subsection (a). The
1184-16 department may establish reasonable criteria or requirements that
1185-17 the former participating entity must meet before being reapproved
1186-18 by the department as a participating entity.
1187-19 Sec. 3. An approved participating entity:
1188-20 (1) may not charge an enrichment student participating in the
1189-21 program an amount greater than a similarly situated student
1190-22 who is receiving the same or similar services; and
1191-23 (2) shall provide a receipt to a parent of an enrichment
1192-24 student for each qualified expense charged for education or
1193-25 related services provided to the enrichment student.
1194-26 Sec. 4. The department shall annually make available on the
1195-27 department's Internet web site a list of participating entities.
1196-28 Chapter 6. Rulemaking
1197-29 Sec. 1. The state board may adopt rules under IC 4-22-2,
1198-30 including emergency rules in the manner provided under
1199-31 IC 4-22-2-37.1, necessary to administer this article.
1200-32 SECTION 3. An emergency is declared for this act.
1201-HB 1252—LS 7167/DI 116 29
1202-COMMITTEE REPORT
1203-Mr. Speaker: Your Committee on Education, to which was referred
1204-House Bill 1252, has had the same under consideration and begs leave
1205-to report the same back to the House with the recommendation that said
1206-bill be amended as follows:
1207-Page 23, delete lines 23 through 33, begin a new paragraph and
1208-insert:
1209-"Sec. 3. "Enrichment student" refers to an individual who:
1210-(1) has legal settlement in Indiana; and
1211-(2) meets the criteria established by the department under
1212-IC 20-52-3-3(a).".
1213-Page 23, line 34, delete "5." and insert "4.".
1214-Page 23, line 37, delete "6." and insert "5.".
1215-Page 23, line 39, delete "7." and insert "6.".
1216-Page 24, line 4, delete "June 30," and insert "August 31,".
1217-Page 24, line 8, delete "IC 20-52-4-1" and insert "IC 20-52-4-1.".
1218-Page 24, line 9, delete "after issuing a request for proposal under
1219-IC 5-22-9.".
1220-Page 24, line 17, after "3." insert "(a) The department shall
1221-establish criteria for determining who is considered an enrichment
1222-student.
1223-(b)".
1224-Page 24, line 24, delete "Grant Fund and Enrichment".
1225-Page 24, line 37, delete "and any interest that may".
1226-Page 24, line 38, delete "accrue in the account".
1227-Page 24, delete lines 40 through 41.
1228-Page 24, line 42, delete "(3)" and insert "(2)".
1229-Page 25, line 2, delete "math." and insert "math;
1230-(3) the parent will share the enrichment student's ILEARN
1231-assessment results with the participating entity; and
1232-(4) services relating to qualified services will not be provided
1233-to the enrichment student during normal school hours.".
1234-Page 25, line 11, delete "If an account for an enrichment student".
1235-Page 25, delete lines 12 through 14.
1236-Page 25, line 27, delete "The enrichment".
1237-Page 25, line 28, delete "grant amount shall be paid from the
1238-enrichment grant fund.".
1239-Page 25, line 36, delete "the later of:" and insert "October 1, 2024.".
1240-Page 25, delete lines 37 through 42.
1241-Page 26, delete lines 1 through 17.
1242-Page 26, line 18, delete "4." and insert "3.".
1243-HB 1252—LS 7167/DI 116 30
1244-Page 26, line 18, delete "8" and insert "7".
1245-Page 26, line 28, delete "5." and insert "4.".
1246-Page 26, line 34, delete "6." and insert "5.".
1247-Page 26, line 37, delete "7." and insert "6.".
1248-Page 26, line 42, delete "8." and insert "7.".
1249-Page 27, line 33, delete "9." and insert "8.".
1250-Page 27, line 39, delete "individuals" and insert "individuals,
1251-organizations,".
1252-Page 27, line 42, delete "individual who" and insert "organization".
1253-Page 28, line 2, delete "individual who" and insert "organization".
1254-Page 28, line 8, delete "individual who" and insert "organization".
1255-Page 28, line 10, delete "individual" and insert "organization".
1256-Page 28, between lines 11 and 12, begin a new line block indented
1257-and insert:
1258-"(5) Community based organizations.
1259-(6) Philanthropic organizations.
1260-(7) Institutions of higher education.
1261-(8) Prospective, current, and retired teachers.
1262-(b) Upon completion of services by a participating entity, the
1263-participating entity must provide the enrichment student's school
1264-with a summary of services performed by the participating entity
1265-for the enrichment student.".
1266-Page 28, line 12, delete "(b)" and insert "(c)".
1267-Page 28, line 13, delete "individual" and insert "individual,
1268-organization,".
1269-Page 28, line 15, delete "(c)" and insert "(d)".
1270-and when so amended that said bill do pass.
1271-(Reference is to HB 1252 as introduced.)
1272-BEHNING
1273-Committee Vote: yeas 12, nays 0.
1274-HB 1252—LS 7167/DI 116
981+23 Sec. 3. "Enrichment grant fund" refers to the Indiana
982+24 enrichment grant fund established by IC 20-52-4-3.
983+25 Sec. 4. "Enrichment student" refers to an individual who:
984+26 (1) has legal settlement in Indiana;
985+27 (2) was a student in grades 3 through 8 during the 2021-2022
986+28 school year; and
987+29 (3) scored either:
988+30 (A) "below proficiency"; or
989+31 (B) "approaching proficiency";
990+32 on the ILEARN statewide assessment administered during the
991+33 2021-2022 school year.
992+34 Sec. 5. "Participating entity" means any individual or entity
993+35 who provides a qualified expense who is approved by the
994+36 department under IC 20-52-5-1.
995+37 Sec. 6. "Program" refers to the Indiana student enrichment
996+38 grant program established by IC 20-52-3-1.
997+39 Sec. 7. "Qualified expenses" means enrichment materials,
998+40 activities, or programs approved by the department to improve
999+41 student proficiency in math or reading.
1000+42 Chapter 3. Administration of the Indiana Student Enrichment
1001+2022 IN 1252—LS 7167/DI 116 24
1002+1 Grant Program
1003+2 Sec. 1. The Indiana student enrichment grant program is
1004+3 established to provide grants to a parent of an enrichment student
1005+4 under IC 20-52-4 after June 30, 2022.
1006+5 Sec. 2. (a) The program shall be administered by the
1007+6 department.
1008+7 (b) The department may contract with one (1) or more entities
1009+8 to maintain and manage accounts established under IC 20-52-4-1
1010+9 after issuing a request for proposal under IC 5-22-9. Each entity
1011+10 shall:
1012+11 (1) meet qualification requirements established by the
1013+12 department; and
1014+13 (2) comply with generally accepted accounting principles.
1015+14 (c) The department shall establish reasonable fees for entities
1016+15 described in subsection (b) participating in the program based
1017+16 upon market rates.
1018+17 Sec. 3. For each school year, the department shall determine,
1019+18 based on the amount of funds available for the program, the
1020+19 number of grants that the department will award under the
1021+20 program. The number of applications approved and the number of
1022+21 grants awarded under this article by the department for the school
1023+22 year may not exceed the number determined by the department
1024+23 under this section.
1025+24 Chapter 4. Enrichment Grant Fund and Enrichment Grant
1026+25 Accounts
1027+26 Sec. 1. (a) After August 31, 2022, a parent of an enrichment
1028+27 student may establish an Indiana enrichment scholarship account
1029+28 for the eligible student by entering into a written agreement with
1030+29 the department on a form prepared by the department. The
1031+30 department may establish deadlines for the submission of
1032+31 applications. The account of an enrichment student shall be made
1033+32 in the name of the enrichment student. The department shall make
1034+33 the agreement available on the Internet web site of the department.
1035+34 To be eligible, a parent of an enrichment student wishing to
1036+35 participate in the program must agree that:
1037+36 (1) a grant deposited in the enrichment student's account
1038+37 under section 2 of this chapter and any interest that may
1039+38 accrue in the account will be used only for the enrichment
1040+39 student's qualified expenses;
1041+40 (2) money in the account when the account is terminated
1042+41 reverts to the enrichment grant fund; and
1043+42 (3) the parent of the enrichment student will use money in the
1044+2022 IN 1252—LS 7167/DI 116 25
1045+1 account for the enrichment student's study in the subject of
1046+2 reading or math.
1047+3 (b) A parent of an enrichment student may enter into a separate
1048+4 agreement under subsection (a) for each child of the parent.
1049+5 However, not more than one (1) account may be established for
1050+6 each enrichment student.
1051+7 (c) An agreement entered into under this section for an
1052+8 enrichment student terminates automatically for the enrichment
1053+9 student if the enrichment student no longer resides in Indiana
1054+10 while the enrichment student is eligible to receive grants under
1055+11 section 2 of this chapter. If an account for an enrichment student
1056+12 is terminated under this section, money in the enrichment student's
1057+13 account, including any interest accrued, reverts to the enrichment
1058+14 grant fund.
1059+15 (d) An agreement made under this section for an enrichment
1060+16 student may be terminated before the end of the school year if the
1061+17 parent of the enrichment student notifies the department in a
1062+18 manner specified by the department.
1063+19 (e) A distribution made to an account under section 2 of this
1064+20 chapter is considered tax exempt as long as the distribution is used
1065+21 for a qualified expense. The amount is subtracted from the
1066+22 definition of adjusted federal gross income under IC 6-3-1-3.5 to
1067+23 the extent the distribution used for the qualified expense is
1068+24 included in the taxpayer's adjusted federal gross income under the
1069+25 Internal Revenue Code.
1070+26 Sec. 2. (a) An enrichment student who currently maintains an
1071+27 account is entitled to a one (1) time grant amount. The enrichment
1072+28 grant amount shall be paid from the enrichment grant fund. The
1073+29 department shall deposit the enrichment grant amount under this
1074+30 section, as a one (1) time deposit, into an enrichment student's
1075+31 account in a manner established by the department.
1076+32 (b) Except as provided in subsection (c), at the end of the year
1077+33 in which an account is established, the parent of an enrichment
1078+34 student may roll over for use in a subsequent year the amount
1079+35 available in the enrichment student's account.
1080+36 (c) An enrichment student's account shall terminate the later of:
1081+37 (1) August 1 in the calendar year a student receives a
1082+38 "proficient" score on the ILEARN statewide assessment; or
1083+39 (2) October 1, 2024.
1084+40 Any money, including interest that remains in the enrichment
1085+41 student's account when the account terminates under this
1086+42 subsection, reverts to the enrichment grant fund.
1087+2022 IN 1252—LS 7167/DI 116 26
1088+1 Sec. 3. (a) The Indiana enrichment grant fund is established for
1089+2 the purpose of providing grants to enrichment students under the
1090+3 program.
1091+4 (b) The department shall administer the enrichment grant fund.
1092+5 (c) The enrichment grant fund consists of the following:
1093+6 (1) Money transferred to the fund by the department.
1094+7 (2) Interest deposited in the fund under subsection (d).
1095+8 (3) Donations, gifts, matching funds from school corporations
1096+9 or schools, and money received from any other source,
1097+10 including transfers from other funds or accounts.
1098+11 (d) The treasurer of state shall invest money in the enrichment
1099+12 grant fund not currently needed to meet the obligations of the
1100+13 enrichment grant fund in the same manner as other public money
1101+14 may be invested. Interest that accrues from these investments shall
1102+15 be deposited in the enrichment grant fund.
1103+16 (e) Money in the enrichment grant fund at the end of a state
1104+17 fiscal year shall not revert to the state general fund.
1105+18 Sec. 4. (a) Subject to section 8 of this chapter, the one (1) time
1106+19 enrichment grant amount under section 2 of this chapter for an
1107+20 enrichment student equals the higher of:
1108+21 (1) five hundred dollars ($500); or
1109+22 (2) if the school corporation or school provides a matching
1110+23 grant to the enrichment student under this section, one
1111+24 thousand dollars ($1,000).
1112+25 (b) A school corporation or a school may provide a matching
1113+26 grant of two hundred fifty dollars ($250) to an enrichment student
1114+27 under this chapter.
1115+28 Sec. 5. Upon entering into an agreement under this chapter, the
1116+29 department shall provide to the parent of an enrichment student a
1117+30 written explanation of the authorized uses of the money in the
1118+31 account and the responsibilities of the parent of an enrichment
1119+32 student and the department regarding an account established
1120+33 under section 1 of this chapter.
1121+34 Sec. 6. This chapter does not prohibit a parent of an enrichment
1122+35 student from making a payment for any qualified expense from a
1123+36 source other than the enrichment student's account.
1124+37 Sec. 7. A participating entity that receives a payment for a
1125+38 qualified expense may not refund any part of the payment directly
1126+39 to the parent of the enrichment student. Any refund provided by
1127+40 a participating entity shall be deposited into the enrichment
1128+41 student's account.
1129+42 Sec. 8. (a) The department shall freeze the account established
1130+2022 IN 1252—LS 7167/DI 116 27
1131+1 under section 1 of this chapter of any parent of an enrichment
1132+2 student who:
1133+3 (1) fails to comply with the terms of the agreement established
1134+4 under section 1 of this chapter;
1135+5 (2) fails to comply with applicable laws or regulations; or
1136+6 (3) substantially misuses funds in the account.
1137+7 (b) The department shall send written notice to the parent of the
1138+8 enrichment student stating the reason for the freeze under
1139+9 subsection (a). The department may also send notice to the
1140+10 attorney general or the prosecuting attorney in the county in which
1141+11 the parent of the enrichment student resides if the department
1142+12 believes a crime has been committed or a civil action relating to the
1143+13 account is necessary.
1144+14 (c) A parent of an enrichment student whose account has been
1145+15 frozen under subsection (a) may petition the department for
1146+16 redetermination of the decision under subsection (a) within thirty
1147+17 (30) days after the date the department sends notice to the parent
1148+18 of the enrichment student under subsection (b). The petition must
1149+19 contain a written explanation stating why the department was
1150+20 incorrect in freezing the account under subsection (a). If the
1151+21 department does not receive a timely submitted petition from a
1152+22 parent of an enrichment student under this subsection, the
1153+23 department shall terminate the account.
1154+24 (d) The department shall review a petition received under
1155+25 subsection (c) within fifteen (15) business days of receipt of the
1156+26 petition and issue a redetermination letter to the parent of the
1157+27 enrichment student. If the department overturns the department's
1158+28 initial decision under subsection (a), the department shall
1159+29 immediately unfreeze the account. If the department affirms the
1160+30 decision under subsection (a), the department shall give notice of
1161+31 the affirmation to the parent of the enrichment student and
1162+32 terminate the account.
1163+33 Sec. 9. Distributions made to an account under section 2 of this
1164+34 chapter or money in the account may not be treated as income or
1165+35 a resource for purposes of qualifying for any other federal or state
1166+36 grant or program administered by the state or a political
1167+37 subdivision.
1168+38 Chapter 5. Participating Entities
1169+39 Sec. 1. (a) The following individuals or entities may become a
1170+40 participating entity by submitting an application to the department
1171+41 in a manner prescribed by the department:
1172+42 (1) An individual who or tutoring agency that provides
1173+2022 IN 1252—LS 7167/DI 116 28
1174+1 private tutoring.
1175+2 (2) An individual who or entity that provides services to a
1176+3 student with a disability in accordance with an individualized
1177+4 education program developed under IC 20-35 or a service
1178+5 plan developed under 511 IAC 7-34 or generally accepted
1179+6 standards of care prescribed by the enrichment student's
1180+7 treating physician.
1181+8 (3) An individual who or entity that offers a course or
1182+9 program to an enrichment student.
1183+10 (4) An individual or entity that provides or offers a qualified
1184+11 expense.
1185+12 (b) The department may approve an application submitted
1186+13 under subsection (a) if the individual or entity meets the criteria to
1187+14 serve as a participating entity.
1188+15 (c) Each participating entity that accepts payments made from
1189+16 an account under this article shall provide a receipt to the parent
1190+17 of an enrichment student for each payment made.
1191+18 Sec. 2. (a) The department may refuse to allow a participating
1192+19 entity to continue participation in the program and revoke the
1193+20 participating entity's status as a participating entity if the
1194+21 department determines that the participating entity accepts
1195+22 payments made from an account under this article and:
1196+23 (1) has failed to provide any educational service required by
1197+24 state or federal law to an enrichment student receiving
1198+25 instruction from the participating entity; or
1199+26 (2) has routinely failed to meet the requirements of a
1200+27 participating entity under the program.
1201+28 (b) If the department revokes a participating entity's status as
1202+29 a participating entity in the program, the department shall provide
1203+30 notice of the revocation within thirty (30) days of the revocation to
1204+31 each parent of an enrichment student receiving instruction from
1205+32 the participating entity who has paid the participating entity from
1206+33 the enrichment student's account.
1207+34 (c) The department may permit a former participating entity
1208+35 described in subsection (a) to reapply with the department for
1209+36 authorization to be a participating entity on a date established by
1210+37 the department, which may not be earlier than one (1) year after
1211+38 the date on which the former participating entity's status as a
1212+39 participating entity was revoked under subsection (a). The
1213+40 department may establish reasonable criteria or requirements that
1214+41 the former participating entity must meet before being reapproved
1215+42 by the department as a participating entity.
1216+2022 IN 1252—LS 7167/DI 116 29
1217+1 Sec. 3. An approved participating entity:
1218+2 (1) may not charge an enrichment student participating in the
1219+3 program an amount greater than a similarly situated student
1220+4 who is receiving the same or similar services; and
1221+5 (2) shall provide a receipt to a parent of an enrichment
1222+6 student for each qualified expense charged for education or
1223+7 related services provided to the enrichment student.
1224+8 Sec. 4. The department shall annually make available on the
1225+9 department's Internet web site a list of participating entities.
1226+10 Chapter 6. Rulemaking
1227+11 Sec. 1. The state board may adopt rules under IC 4-22-2,
1228+12 including emergency rules in the manner provided under
1229+13 IC 4-22-2-37.1, necessary to administer this article.
1230+14 SECTION 3. An emergency is declared for this act.
1231+2022 IN 1252—LS 7167/DI 116