*SB0260.1*
January 31, 2024
SENATE BILL No. 260
_____
DIGEST OF SB 260 (Updated January 30, 2024 10:39 am - DI 140)
Citations Affected: IC 4-4; IC 6-3.1.
Synopsis: Neighborhood and individual development incentives.
Defines a "community based organization" as a private, nonprofit
corporation whose purpose includes the provision of services that
primarily benefit low income individuals and communities and
provides that such an organization is eligible to administer, through a
financial institution, an individual development account (account).
(Current law limits administration, through a financial institution, of an
account to community development corporations.) Provides that: (1)
the first $1,500 (rather than $800) is eligible for a state deposit in an
individual's account; (2) the allocation, for each account that has been
established for not more than five years, is $3 for each $1 of the first
$1,500 (rather than the first $400) an individual deposited into the
individual's account; and (3) the amount of the allocation may not
exceed $4,500 (rather than $2,400) for each account. Makes various
changes to the administration of and procedure for claiming the
neighborhood assistance tax credit and the individual development
account tax credit. Removes a reference to an obsolete tax.
Effective: July 1, 2024.
Becker
January 16, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
January 30, 2024, reported favorably — Do Pass.
SB 260—LS 6546/DI 129 January 31, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 260
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2024]: Sec. 1.7. As used in this chapter, "community based
4 organization" means a private, nonprofit corporation whose
5 purpose includes the provision of services that primarily benefit
6 low income individuals and communities.
7 SECTION 2. IC 4-4-28-2.5 IS ADDED TO THE INDIANA CODE
8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
9 1, 2024]: Sec. 2.5. As used in this chapter, "eligible organization"
10 means a:
11 (1) community development corporation; or
12 (2) community based organization.
13 SECTION 3. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2024]: Sec. 4. As used in this chapter, "fund"
15 refers to an individual development account fund established by a
16 community development corporation an eligible organization under
17 section 13 of this chapter.
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1 SECTION 4. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 5. As used in this chapter, "individual
4 development account" means an account in a financial institution
5 administered by a community development corporation an eligible
6 organization that allows a qualifying individual to deposit money:
7 (1) to be matched by the state, financial institutions, corporations,
8 and other entities; and
9 (2) that will be used by the qualifying individual for one (1) or
10 more of the following:
11 (A) To pay for costs (including tuition, laboratory costs, books,
12 computer costs, and other costs associated with attendance) at
13 an accredited postsecondary educational institution or a
14 vocational school that is not a postsecondary educational
15 institution, for the individual or for a dependent of the
16 individual.
17 (B) To pay for the costs (including tuition, laboratory costs,
18 books, computer costs, and other costs) associated with an
19 accredited or a licensed training program that may lead to
20 employment for the individual or for a dependent of the
21 individual.
22 (C) To purchase a primary residence located in Indiana for the
23 individual or for a dependent of the individual or to reduce the
24 principal amount owed on a primary residence located in
25 Indiana that was purchased by the individual or a dependent of
26 the individual with money from an individual development
27 account.
28 (D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
29 of the individual's primary residence located in Indiana.
30 (E) To begin or to purchase part or all of a business based in
31 Indiana or to expand an existing small business based in
32 Indiana.
33 (F) Subject to section 8(b) of this chapter, to purchase a motor
34 vehicle.
35 SECTION 5. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
36 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2024]: Sec. 7. (a) A qualifying individual, including an
38 individual who:
39 (1) established an individual development account under this
40 chapter before July 1, 2001; and
41 (2) held the account described in subdivision (1) for less than four
42 (4) years;
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1 may establish an account by applying at a community development
2 corporation an eligible organization after June 30, 2001.
3 (b) At the time of establishing an account under this section, the
4 qualifying individual must name a beneficiary to replace the qualifying
5 individual as the holder of the account if the qualifying individual dies.
6 If the beneficiary:
7 (1) is a member of the qualifying individual's family, all funds in
8 the account remain in the account; and
9 (2) is not a member of the qualifying individual's family, all funds
10 in the account provided by the state revert to the state.
11 The qualifying individual may change the name of the beneficiary at
12 the qualifying individual's discretion. A beneficiary who becomes the
13 holder of an account under this subsection is subject to this chapter and
14 rules adopted under this chapter regarding withdrawals from the
15 account.
16 (c) Only one (1) member of a qualifying individual's household may
17 establish an account.
18 (d) A qualifying individual shall maintain residency in Indiana until
19 the individual development account is closed.
20 SECTION 6. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
21 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2024]: Sec. 8. (a) A community development corporation An
23 eligible organization shall do the following:
24 (1) Determine whether an individual who wants to establish an
25 account is a qualifying individual.
26 (2) Administer, through a financial institution, and act as trustee
27 for each account established through the community development
28 corporation. eligible organization.
29 (3) Approve or deny an individual's request to make a withdrawal
30 from the individual's account.
31 (4) Provide or arrange for training in money management,
32 budgeting, and related topics for each individual who establishes
33 an account.
34 (b) A community development corporation An eligible
35 organization may approve a qualifying individual's request to make a
36 withdrawal from an account to purchase a motor vehicle if the purpose
37 of the purchase is primarily to transport the individual to and from
38 work, postsecondary education, or an accredited or licensed training
39 program intended to lead to employment of the individual or a
40 dependent of the individual.
41 SECTION 7. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
42 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SB 260—LS 6546/DI 129 4
1 JULY 1, 2024]: Sec. 9. (a) An individual may deposit money from the
2 individual's earned income into the individual's account.
3 (b) An individual may deposit an unlimited amount of money into
4 the individual's account, However, only eight hundred of which the
5 first one thousand five hundred dollars ($800) ($1,500) annually is
6 eligible for a state deposit as provided in section 12 of this chapter.
7 SECTION 8. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
8 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2024]: Sec. 10. (a) Not more than eight hundred (800)
10 accounts may be established in the state each state fiscal year
11 beginning before July 1, 2009.
12 (b) Not more than one thousand (1,000) accounts may be
13 established in the state each state fiscal year beginning after June 30,
14 2009.
15 (c) A community development corporation An eligible
16 organization shall use money that is in an individual development
17 account fund established under section 13 of this chapter to allow a
18 qualified individual on a waiting list maintained by the community
19 development corporation eligible organization to establish an account.
20 SECTION 9. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
21 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2024]: Sec. 11. (a) Each community development corporation
23 eligible organization shall annually provide the authority with
24 information needed to determine:
25 (1) the number of accounts administered by the community
26 development corporation; eligible organization;
27 (2) the length of time each account under subdivision (1) has been
28 established; and
29 (3) the amount of money an individual has deposited into each
30 account under subdivision (1). during the preceding twelve (12)
31 months.
32 (b) The authority shall use the information provided under
33 subsection (a) to deposit the correct amount of money into each
34 account as provided in section 12 of this chapter.
35 SECTION 10. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
36 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2024]: Sec. 12. (a) The authority shall allocate, for each
38 account that has been established, for not more than five (5) years,
39 three dollars ($3) for each one dollar ($1) of the first four one
40 thousand five hundred dollars ($400) ($1,500) an individual deposited
41 into the individual's account. during the preceding twelve (12) months.
42 However, if the amount appropriated by the general assembly is
SB 260—LS 6546/DI 129 5
1 insufficient to make the deposits required by this section for accounts
2 that have been established, the authority shall proportionately reduce
3 the amounts allocated to and deposited into each account. The authority
4 may allocate three dollars ($3) for each one dollar ($1) of any part of
5 an amount above four hundred dollars ($400) an individual deposited
6 into the individual's account during the preceding twelve (12) months.
7 However, The authority's allocation under this subsection may not
8 exceed two four thousand four five hundred dollars ($2,400) ($4,500)
9 for each account described in this subsection.
10 (b) The authority shall deposit into each account established under
11 this chapter the appropriate amount of money determined under this
12 section.
13 (c) Money from a federal block grant program under Title IV-A of
14 the federal Social Security Act may be used by the state to provide
15 money under this section for deposit into an account held by an
16 individual who receives assistance under IC 12-14-2.
17 SECTION 11. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
18 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2024]: Sec. 13. (a) Each community development corporation
20 eligible organization may apply to the authority for an allocation of
21 tax credits under IC 6-3.1-18 for the contributors to a fund established
22 under this section. A community development corporation An eligible
23 organization may establish an individual development account fund
24 to provide money to be used to finance additional accounts to be
25 administered by the community development corporation eligible
26 organization under this chapter and to help pay for the community
27 development corporation's eligible organization's expenses related to
28 the administration of accounts.
29 (b) Each community development corporation eligible organization
30 shall encourage individuals, financial institutions, corporations, and
31 other entities to contribute to the fund. A contributor to the fund may
32 qualify for a tax credit as provided under IC 6-3.1-18.
33 (c) Each community development corporation eligible organization
34 may use up to twenty percent (20%) of the first one hundred thousand
35 dollars ($100,000) deposited each calendar year in the fund under
36 subsection (b) to help pay for the community development
37 corporation's eligible organization's expenses related to the
38 administration of accounts established under this chapter. All deposits
39 in the fund under subsection (b) of more than one hundred thousand
40 dollars ($100,000) during each calendar year may be used only to fund
41 accounts administered by the community development corporation
42 eligible organization under this chapter.
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1 (d) A community development corporation An eligible
2 organization may allow an individual to establish a new account as
3 adequate funding becomes available.
4 (e) Only money from the fund may be used to make the deposit
5 described in subsection (f) into an account established under this
6 section.
7 (f) The community development corporation eligible organization
8 shall annually deposit at least three dollars ($3) into each account for
9 each one dollar ($1) an individual has deposited into the individual's
10 account as of June 30.
11 (g) A community development corporation An eligible
12 organization may not allow a qualifying individual to establish an
13 account if the community development corporation eligible
14 organization does not have adequate funds to deposit into the account
15 under subsection (f).
16 SECTION 12. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
17 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2024]: Sec. 15. (a) An individual must request and receive
19 authorization from the community development corporation eligible
20 organization that administers the individual's account before
21 withdrawing money from the account for any purpose.
22 (b) An individual who is denied authorization to withdraw money
23 under subsection (a) may appeal the community development
24 corporation's eligible organization's decision to the authority under
25 rules adopted by the authority under IC 4-22-2.
26 SECTION 13. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
27 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2024]: Sec. 16. (a) Money withdrawn from an individual's
29 account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
30 money is used for at least one (1) of the following:
31 (1) To pay for costs (including tuition, laboratory costs, books,
32 computer costs, and other costs) at an accredited postsecondary
33 educational institution or a vocational school that is not a
34 postsecondary educational institution for the individual or for a
35 dependent of the individual.
36 (2) To pay for the costs (including tuition, laboratory costs, books,
37 computer costs, and other costs) associated with an accredited or
38 a licensed training program that may lead to employment for the
39 individual or for a dependent of the individual.
40 (3) To purchase a primary residence located in Indiana for the
41 individual or for a dependent of the individual or to reduce the
42 principal amount owed on a primary residence located in Indiana
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1 that was purchased by the individual or a dependent of the
2 individual with money from an individual development account.
3 (4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
4 the individual's primary residence located in Indiana.
5 (5) To begin or to purchase part or all of a business based in
6 Indiana or to expand an existing small business based in Indiana.
7 (6) Subject to section 8(b) of this chapter, to purchase a motor
8 vehicle.
9 (b) At the time of requesting authorization under section 15 of this
10 chapter to withdraw money from an individual's account under
11 subsection (a)(5), the individual must provide the community
12 development corporation eligible organization with a business plan
13 that:
14 (1) has been approved by a financial institution or is approved by
15 the community development corporation; eligible organization;
16 (2) includes a description of services or goods to be sold, a
17 marketing plan, and projected financial statements; and
18 (3) may require the individual to obtain the assistance of an
19 experienced business advisor.
20 SECTION 14. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
21 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2024]: Sec. 18. (a) Each community development corporation
23 eligible organization shall annually:
24 (1) evaluate the individual development accounts administered by
25 the community development corporation; eligible organization;
26 and
27 (2) submit a report containing the evaluation information to the
28 authority.
29 (b) Two (2) or more community development corporations eligible
30 organizations may work together in carrying out the purposes of this
31 chapter.
32 SECTION 15. IC 6-3.1-9-1, AS AMENDED BY P.L.166-2014,
33 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 1. (a) As used in this chapter, "authority" means
35 the Indiana housing and community development authority established
36 by IC 5-20-1-3.
37 (b) As used in this chapter, "business firm" means any business
38 entity authorized to do business in the state of Indiana that has state tax
39 liability.
40 (c) As used in this chapter, "community services" means any type
41 of:
42 (1) counseling and advice;
SB 260—LS 6546/DI 129 8
1 (2) emergency assistance;
2 (3) medical care;
3 (4) recreational facilities;
4 (5) housing facilities; or
5 (6) economic development assistance;
6 provided to individuals, economically disadvantaged households,
7 groups, or neighborhood organizations in an economically
8 disadvantaged area or provided to individuals who are ex-offenders
9 who have completed the individuals' criminal sentences or are serving
10 a term of probation or parole.
11 (d) As used in this chapter, "crime prevention" means any activity
12 which aids in the reduction of crime in an economically disadvantaged
13 area or an economically disadvantaged household.
14 (e) As used in this chapter, "economically disadvantaged area"
15 means an enterprise zone, or any other federally or locally designated
16 economically disadvantaged area in Indiana. The certification shall be
17 made on the basis of current indices of social and economic conditions,
18 which shall include but not be limited to the median per capita income
19 of the area in relation to the median per capita income of the state or
20 standard metropolitan statistical area in which the area is located.
21 (f) As used in this chapter, "economically disadvantaged household"
22 means a household with an annual income that is at or below eighty
23 percent (80%) of the area median income or any other federally
24 designated target population.
25 (g) As used in this chapter, "education" means any type of scholastic
26 instruction or scholarship assistance to an individual who:
27 (1) resides in an economically disadvantaged area; or
28 (2) is an ex-offender who has completed the individual's criminal
29 sentence or is serving a term of probation or parole;
30 that enables the individual to prepare for better life opportunities.
31 (h) As used in this chapter, "enterprise zone" means an enterprise
32 zone created under IC 5-28-15.
33 (i) As used in this chapter, "job training" means any type of
34 instruction to an individual who:
35 (1) resides in:
36 (A) an economically disadvantaged area; or
37 (B) an economically disadvantaged household; or
38 (2) is an ex-offender who has completed the individual's criminal
39 sentence or is serving a term of probation or parole;
40 that enables the individual to acquire vocational skills so that the
41 individual can become employable or be able to seek a higher grade of
42 employment.
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1 (j) As used in this chapter, "neighborhood assistance" means either:
2 (1) furnishing financial assistance, labor, material, and technical
3 advice to aid in the physical or economic improvement of any part
4 or all of an economically disadvantaged area; or
5 (2) furnishing technical advice to promote higher employment in
6 any neighborhood in Indiana.
7 (k) As used in this chapter, "neighborhood organization" means any
8 organization, including but not limited to a nonprofit development
9 corporation doing both of the following:
10 (1) Performing community services:
11 (A) in an economically disadvantaged area;
12 (B) for an economically disadvantaged household; or
13 (C) for individuals who are ex-offenders who have completed
14 the individuals' criminal sentences or are serving a term of
15 probation or parole.
16 (2) Holding a ruling:
17 (A) from the Internal Revenue Service of the United States
18 Department of the Treasury that the organization is exempt
19 from income taxation under the provisions of the Internal
20 Revenue Code; and
21 (B) from the department of state revenue that the organization
22 is exempt from income taxation under IC 6-2.5-5-21.
23 (l) As used in this chapter, "person" means any individual subject
24 to Indiana gross or adjusted gross income tax.
25 (m) As used in this chapter, "state fiscal year" means a twelve (12)
26 month period beginning on July 1 and ending on June 30.
27 (n) As used in this chapter, "state tax liability" means the taxpayer's
28 total tax liability that is incurred under:
29 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
30 (2) IC 6-5.5 (the financial institutions tax);
31 as computed after the application of the credits that, under
32 IC 6-3.1-1-2, are to be applied before the credit provided by this
33 chapter.
34 (o) As used in this chapter, "tax credit" means a deduction from any
35 tax otherwise due and payable under IC 6-3 or IC 6-5.5.
36 SECTION 16. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
37 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2024]: Sec. 2. (a) Each state fiscal year, a business firm or
39 a person who contributes to a neighborhood organization that engages
40 in the activities of providing:
41 (1) neighborhood assistance, job training, or education for
42 individuals not employed by the business firm or person;
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1 (2) community services or crime prevention in an economically
2 disadvantaged area; or
3 (3) community services, education, or job training services to
4 individuals who are ex-offenders who have completed the
5 individuals' criminal sentences or are serving a term of probation
6 or parole;
7 shall receive a tax credit as provided in section 3 of this chapter if the
8 authority approves the proposal of the business firm or person, setting
9 forth the program to be conducted, the area selected, the estimated
10 amount to be invested in the program, and the plans for implementing
11 the program. may apply to the authority for an allocation of state
12 tax credits available under this chapter to be used to provide a tax
13 credit to a business firm or person that contributes to a program
14 involving one (1) or more of the activities described in subdivisions
15 (1) through (3).
16 (b) The authority, after consultation with the community services
17 agency and the commissioner of revenue, may adopt rules for the
18 approval or disapproval of these proposals. applications.
19 (c) A business firm or a person that contributes to the fund of a
20 neighborhood organization that has been approved by the
21 authority for an allocation of tax credits as described in subsection
22 (a) shall receive a tax credit as provided in section 3 of this chapter
23 if the neighborhood organization has agreed to issue a portion of
24 the tax credits allocated to the neighborhood organization by the
25 authority to the business firm or person.
26 SECTION 17. IC 6-3.1-9-3 IS AMENDED TO READ AS
27 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Subject to the
28 limitations provided in subsection (b) and sections 4, 5, and 6 of this
29 chapter, the department shall grant a tax credit against any state tax
30 liability due equal to fifty percent (50%) of the amount invested
31 contributed by a business firm or person in a program the proposal
32 application for which was approved under section 2 of this chapter.
33 (b) The credit provided by this chapter shall only be applied against
34 any state tax liability owed by the taxpayer after the application of any
35 credits, which under IC 6-3.1-1-2 must be applied before the credit
36 provided by this chapter. In addition, the tax credit which a taxpayer
37 receives under this chapter may not exceed twenty-five thousand
38 dollars ($25,000) for any taxable year of the taxpayer.
39 (c) If a business firm that is:
40 (1) exempt from adjusted gross income tax (IC 6-3-1 through
41 IC 6-3-7) under IC 6-3-2-2.8(2); or
42 (2) a partnership;
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1 does not have any tax liability against which the credit provided by this
2 section may be applied, a shareholder or a partner of the business firm
3 is entitled to a credit against the shareholder's or the partner's liability
4 under the adjusted gross income tax.
5 (d) The amount of the credit provided by this section is equal to:
6 (1) the tax credit determined for the business firm for the taxable
7 year under subsection (a); multiplied by
8 (2) the percentage of the business firm's distributive income to
9 which the shareholder or the partner is entitled.
10 The credit provided by this section is in addition to any credit to which
11 a shareholder or partner is otherwise entitled under this chapter.
12 However, a business firm and a shareholder or partner of that business
13 firm may not claim a credit under this chapter for the same investment.
14 contribution.
15 SECTION 18. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
16 SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2024]: Sec. 4. (a) The neighborhood organization, on
18 behalf of any business firm or person which desires to claim a tax
19 credit as provided in this chapter, shall file with the department,
20 authority, in the form that the department authority may prescribe, an
21 application documentation stating the amount of the contribution or
22 investment which it proposes to make which that would qualify for a
23 tax credit, and the amount sought allocated to the business firm or
24 person to be claimed as a credit. The application shall include a
25 certificate evidencing approval of the contribution or program by the
26 authority.
27 (b) The authority shall give priority in issuing certificates tax
28 credits to applicants neighborhood organizations whose
29 contributions or programs directly benefit enterprise zones.
30 (c) The department shall promptly notify an applicant a business
31 firm or person whether, or the extent to which, the tax credit is
32 allowable in the state fiscal year in which the application tax return
33 claiming the credit is filed, as provided in section 5 of this chapter. If
34 the credit is allowable in that state fiscal year, the applicant shall within
35 thirty (30) days after receipt of the notice file with the department of
36 state revenue a statement, in the form and accompanied by the proof of
37 payment as the department may prescribe, setting forth that the amount
38 to be claimed as a credit under this chapter has been paid to an
39 organization for an approved program or purpose, or permanently set
40 aside in a special account to be used solely for an approved program or
41 purpose.
42 (d) The department may disallow any credit claimed under this
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1 chapter for which the statement or proof of payment is not filed within
2 the thirty (30) day period. shall consider documentation from the
3 authority as proof of payment, setting forth that the amount to be
4 claimed as a credit under this chapter has been paid to an
5 organization for an approved program or purpose, or permanently
6 set aside in a special account to be used solely for an approved
7 program or purpose.
8 SECTION 19. IC 6-3.1-9-5 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) The amount of
10 tax credits allowed under this chapter may not exceed two million five
11 hundred thousand dollars ($2,500,000) in the state fiscal year
12 beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
13 year thereafter.
14 (b) The department shall record the time of filing of each
15 application for allowance of a credit required tax return claiming the
16 credit under section 4 of this chapter and shall approve the
17 applications, credit if they the business firm or person otherwise
18 qualify qualifies for a tax credit under this chapter, in the chronological
19 order in which the applications are tax return claiming the credit is
20 filed in the state fiscal year.
21 (c) When the total credits approved under this section equal the
22 maximum amount allowable in any state fiscal year, no application
23 credits thereafter filed for that same fiscal year shall be approved.
24 However, if any applicant for whom a credit has been approved fails to
25 file the statement of proof of payment required under section 4 of this
26 chapter, an amount equal to the credit previously allowed or set aside
27 for the applicant may be allowed to any subsequent applicant in the
28 year. In addition, the department may, if the applicant so requests,
29 approve a credit application, in whole or in part, with respect to the
30 next succeeding state fiscal year.
31 SECTION 20. IC 6-3.1-18-0.3 IS ADDED TO THE INDIANA
32 CODE AS A NEW SECTION TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2024]: Sec. 0.3. As used in this chapter,
34 "authority" means the Indiana housing and community
35 development authority established by IC 5-20-1-3.
36 SECTION 21. IC 6-3.1-18-0.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. As used in this chapter,
39 "business firm" means any business entity authorized to do
40 business in the state of Indiana that has state tax liability.
41 SECTION 22. IC 6-3.1-18-1 IS AMENDED TO READ AS
42 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. As used in this
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1 chapter, "community development corporation" "eligible
2 organization" has the meaning set forth in IC 4-4-28-2. IC 4-4-28-2.5.
3 SECTION 23. IC 6-3.1-18-2 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this
5 chapter, "fund" refers to an individual development account fund
6 established by a community development corporation an eligible
7 organization under IC 4-4-28-13.
8 SECTION 24. IC 6-3.1-18-4.3 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2024]: Sec. 4.3. As used in this chapter,
11 "person" means any individual subject to Indiana adjusted gross
12 income tax.
13 SECTION 25. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
14 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2024]: Sec. 4.5. As used in this chapter, "qualified
16 contribution" means a contribution to a fund for which a community
17 development corporation an eligible organization has received an
18 allocation of tax credits under IC 4-4-28-13.
19 SECTION 26. IC 6-3.1-18-6, AS AMENDED BY P.L.50-2016,
20 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2024]: Sec. 6. (a) Subject to the limitations provided in
22 subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the
23 department shall grant a tax credit against any state tax liability due
24 equal to fifty percent (50%) of the amount of a qualified contribution
25 made in a taxable year by a business firm or person or an individual
26 if the qualified contribution is not less than one hundred dollars ($100)
27 and not more than fifty thousand dollars ($50,000).
28 (b) The credit provided by this chapter shall only be applied against
29 any state tax liability owed by the taxpayer after the application of any
30 credits that under IC 6-3.1-1-2 must be applied before the credit
31 provided by this chapter.
32 SECTION 27. IC 6-3.1-18-9, AS AMENDED BY P.L.50-2016,
33 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 9. (a) The eligible organization, on behalf of a
35 business firm or person that or an individual who desires to claim a
36 tax credit as provided in this chapter, shall file with the department,
authority, in the form approved by the department, 37 authority, an
38 application documentation stating the amount of the qualified
39 contribution that the person or individual proposes to make would
40 qualify for a tax credit, and the amount sought allocated to the
41 business firm or person to be claimed as a credit.
42 (b) The department shall promptly notify an applicant a business
SB 260—LS 6546/DI 129 14
1 firm or person whether, or the extent to which, the tax credit is
2 allowable in the state fiscal year in which the application tax return
3 claiming the credit is filed, as provided in section 6 of this chapter. If
4 the credit is allowable in that state fiscal year, the applicant shall within
5 thirty (30) days after receipt of the notice file with the department a
6 statement, in the form and accompanied by the proof of payment of the
7 qualified contribution as the department may prescribe, setting forth
8 that the amount to be claimed as a credit under this chapter has been
9 paid through a qualified contribution as provided in section 6 of this
10 chapter.
11 (c) The department may disallow any credit claimed under this
12 chapter for which the statement or proof of payment is not filed within
13 the thirty (30) day period. shall consider documentation from the
14 authority as proof of payment, setting forth that the amount to be
15 claimed as a credit under this chapter has been paid to an eligible
16 organization as a qualified contribution to that eligible
17 organization's fund for the current state fiscal year, or
18 permanently set aside in a special account to be used solely for this
19 fund.
20 SECTION 28. IC 6-3.1-18-10 IS AMENDED TO READ AS
21 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) The amount of
22 tax credits allowed under this chapter may not exceed two hundred
23 thousand dollars ($200,000) in any state fiscal year.
24 (b) The department shall:
25 (1) record the time of filing of each application for allowance of
26 a tax return claiming the credit required under section 9 of this
27 chapter; and
28 (2) approve the applications, credit, if they the business firm or
29 person claiming the credit otherwise qualify qualifies for a tax
30 credit under this chapter, in the chronological order in which the
31 applications are tax return claiming the credit is filed in the
32 state fiscal year.
33 (c) When the total credits approved under this section equal the
34 maximum amount allowable in any state fiscal year, an application
35 filed after that time for the no credits thereafter filed for that same
36 fiscal year may not shall be approved. However, if an applicant for
37 whom a credit has been approved fails to file the statement of proof of
38 payment required under section 9 of this chapter, an amount equal to
39 the credit previously allowed or set aside for the applicant may be
40 allowed to any subsequent applicant in the year. In addition, the
41 department may, if the applicant so requests, approve a credit
42 application, in whole or in part, with respect to the next succeeding
SB 260—LS 6546/DI 129 15
1 state fiscal year.
SB 260—LS 6546/DI 129 16
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred Senate Bill No. 260, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
(Reference is to SB 260 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 14, Nays 0
SB 260—LS 6546/DI 129