Indiana 2024 Regular Session

Indiana House Bill HB1236 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1236
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.1-42.
7	7	Synopsis: Apprenticeship tax credit. Provides for an apprenticeship
8	8	tax credit (credit) for an eligible employer. Provides that the amount of
9	9	the credit is equal to 50% of qualified expenses attributable to the
10	10	establishment of an apprenticeship program. Provides maximum
11	11	amounts of the credit: (1) in a taxable year; and (2) in aggregate.
12	12	Provides that the total amount of credits that may be awarded for a state
13	13	fiscal year may not exceed $10,000,000.
14	14	Effective: January 1, 2025.
15	15	Goodrich, Judy, Heine
16	16	January 9, 2024, read first time and referred to Committee on Ways and Means.
17	17	2024 IN 1236—LS 7017/DI 125 Introduced
18	18	Second Regular Session of the 123rd General Assembly (2024)
19	19	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
20	20	Constitution) is being amended, the text of the existing provision will appear in this style type,
21	21	additions will appear in this style type, and deletions will appear in this style type.
22	22	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
23	23	provision adopted), the text of the new provision will appear in this style type. Also, the
24	24	word NEW will appear in that style type in the introductory clause of each SECTION that adds
25	25	a new provision to the Indiana Code or the Indiana Constitution.
26	26	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
27	27	between statutes enacted by the 2023 Regular Session of the General Assembly.
28	28	HOUSE BILL No. 1236
29	29	A BILL FOR AN ACT to amend the Indiana Code concerning
30	30	taxation.
31	31	Be it enacted by the General Assembly of the State of Indiana:
32	32	1 SECTION 1. IC 6-3.1-42 IS ADDED TO THE INDIANA CODE
33	33	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
34	34	3 JANUARY 1, 2025]:
35	35	4 Chapter 42. Apprenticeship Tax Credit
36	36	5 Sec. 1.As used in this chapter, "apprentice" means a worker
37	37	6 who is:
38	38	7 (1) at least sixteen (16) years of age, except where a higher
39	39	8 minimum age standard is otherwise fixed by law; and
40	40	9 (2) employed to learn an apprenticeable occupation that is in
41	41	10 a high demand field and for which the average rate of pay is
42	42	11 above the state median wage.
43	43	12 Sec. 2. As used in this chapter, "eligible employer" means a
44	44	13 person, corporation, limited liability company, partnership, or
45	45	14 other entity.
46	46	15 Sec. 3. As used in this chapter, "qualified expenses" means
47	47	16 expenses incurred by an elgible employer that are directly related
48	48	17 to the employer establishing an apprenticeship program for the
49	49	2024 IN 1236—LS 7017/DI 125 2
50	50	1 hiring of apprentices.
51	51	2 Sec. 4. As used in this chapter, "state tax liability" means a
52	52	3 taxpayer's total tax liability that is incurred under:
53	53	4 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
54	54	5 and
55	55	6 (2) IC 6-5.5 (the financial institutions tax);
56	56	7 as computed after the application of the credits that under
57	57	8 IC 6-3.1-1-2 are to be applied before the credit provided by this
58	58	9 chapter.
59	59	10 Sec. 5. As used in this chapter, "taxpayer" means an eligible
60	60	11 employer that has state tax liability.
61	61	12 Sec. 6. A taxpayer that employs an apprentice for least six (6)
62	62	13 full months in a taxable year through an apprenticeship program
63	63	14 established by the taxpayer is entitled to a credit against the
64	64	15 taxpayer's state tax liability in the taxable year in which the
65	65	16 taxpayer employs the apprentice. Except as provided in section 9
66	66	17 of this chapter, a taxpayer may not claim a credit under this
67	67	18 chapter in more than two (2) taxable years.
68	68	19 Sec. 7. Subject to section 9 of this chapter, the amount of the
69	69	20 credit is an amount equal to:
70	70	21 (1) fifty percent (50%) of qualified expenses incurred during
71	71	22 a taxable year beginning after December 31, 2024, by the
72	72	23 taxpayer; multiplied by
73	73	24 (2) the number of apprentices employed through the
74	74	25 apprenticeship program in the taxable year.
75	75	26 Sec. 8. (a) The maximum amount of the credit provided under
76	76	27 this chapter attributable to employment of a particular individual
77	77	28 apprentice in a taxable year may not exceed five thousand dollars
78	78	29 ($5,000).
79	79	30 (b) The maximum amount of aggregate credits provided to a
80	80	31 taxpayer under this chapter may not exceed a total of two hundred
81	81	32 fifty thousand dollars ($250,000).
82	82	33 Sec. 9. (a) If the amount of the credit determined under section
83	83	34 7 of this chapter for a taxpayer in a taxable year exceeds the
84	84	35 taxpayer's state tax liability for that taxable year, the taxpayer
85	85	36 may carry the excess credit over for a period not to exceed the
86	86	37 eligible taxpayer's following three (3) taxable years. The amount
87	87	38 of the credit carryover from a taxable year shall be reduced to the
88	88	39 extent that the carryover is used by the taxpayer to obtain a credit
89	89	40 under this chapter for any subsequent taxable year. A taxpayer is
90	90	41 not entitled to a carryback or a refund of any unused credit
91	91	42 amount.
92	92	2024 IN 1236—LS 7017/DI 125 3
93	93	1 (b) A taxpayer may not assign any part of a credit to which the
94	94	2 taxpayer is entitled under this chapter.
95	95	3 Sec. 10. If a pass through entity is entitled to a credit under
96	96	4 section 6 of this chapter but does not have state tax liability against
97	97	5 which the tax credit may be applied, a shareholder, partner, or
98	98	6 member of the pass through entity is entitled to a tax credit equal
99	99	7 to:
100	100	8 (1) the tax credit determined for the pass through entity for
101	101	9 the taxable year; multiplied by
102	102	10 (2) the percentage of the pass through entity's distributive
103	103	11 income to which the shareholder, partner, or member is
104	104	12 entitled.
105	105	13 Sec. 11. To apply a credit against the taxpayer's state tax
106	106	14 liability, a taxpayer must claim the credit on the taxpayer's annual
107	107	15 state tax return or returns in the manner prescribed by the
108	108	16 department. The taxpayer shall submit to the department the
109	109	17 information that the department determines is necessary for the
110	110	18 department to determine whether the taxpayer is eligible for the
111	111	19 credit.
112	112	20 Sec. 12. (a) The total amount of credits that may be awarded
113	113	21 under this chapter for a state fiscal year may not exceed ten million
114	114	22 dollars ($10,000,000).
115	115	23 (b) The department shall record the time of filing of each claim
116	116	24 for a credit under this chapter and shall approve the credits, if they
117	117	25 otherwise qualify, in the chronological order in which the claims
118	118	26 for the credit are filed in the state fiscal year.
119	119	27 (c) When the total credits approved under this section equal the
120	120	28 maximum amount allowable in a state fiscal year, no credit claimed
121	121	29 in that same state fiscal year shall be allowed.
122	122	30 Sec. 13. The department, on a website used by the department
123	123	31 to provide information to the public, shall provide the following
124	124	32 information:
125	125	33 (1) The application for the credit provided in this chapter.
126	126	34 (2) A timeline for receiving the credit provided in this chapter.
127	127	35 (3) The total amount of credits awarded under this chapter
128	128	36 during the current state fiscal year.
129	129	2024 IN 1236—LS 7017/DI 125