*ES0260.1*
February 22, 2024
ENGROSSED
SENATE BILL No. 260
_____
DIGEST OF SB 260 (Updated February 21, 2024 5:20 pm - DI 125)
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 board of directors is comprised of business, civic,
and community leaders, and whose principal purpose includes the
provision of low income housing. (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, Leising, Randolph Lonnie M,
Tomes
(HOUSE SPONSORS — MANNING, LEDBETTER, PORTER)
January 16, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
January 30, 2024, reported favorably — Do Pass.
February 1, 2024, read second time, amended, ordered engrossed.
February 2, 2024, engrossed.
February 5, 2024, read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
February 12, 2024, read first time and referred to Committee on Ways and Means.
February 22, 2024, amended, reported — Do Pass.
ES 260—LS 6546/DI 129 February 22, 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.
ENGROSSED
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. (a) As used in this chapter, "community based
4 organization" means a private, nonprofit corporation whose board
5 of directors is comprised of business, civic, and community leaders,
6 and whose principal purpose includes the provision of low income
7 housing.
8 (b) A community based organization shall not be construed to
9 have the same powers as a community development corporation.
10 SECTION 2. IC 4-4-28-4 IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2024]: Sec. 4. As used in this chapter, "fund"
12 refers to an individual development account fund established by a
13 community development corporation or community based
14 organization under section 13 of this chapter.
15 SECTION 3. IC 4-4-28-5, AS AMENDED BY P.L.50-2016,
16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2024]: Sec. 5. As used in this chapter, "individual
ES 260—LS 6546/DI 129 2
1 development account" means an account in a financial institution
2 administered by a community development corporation or community
3 based organization that allows a qualifying individual to deposit
4 money:
5 (1) to be matched by the state, financial institutions, corporations,
6 and other entities; and
7 (2) that will be used by the qualifying individual for one (1) or
8 more of the following:
9 (A) To pay for costs (including tuition, laboratory costs, books,
10 computer costs, and other costs associated with attendance) at
11 an accredited postsecondary educational institution or a
12 vocational school that is not a postsecondary educational
13 institution, for the individual or for a dependent of the
14 individual.
15 (B) To pay for the costs (including tuition, laboratory costs,
16 books, computer costs, and other costs) associated with an
17 accredited or a licensed training program that may lead to
18 employment for the individual or for a dependent of the
19 individual.
20 (C) To purchase a primary residence located in Indiana for the
21 individual or for a dependent of the individual or to reduce the
22 principal amount owed on a primary residence located in
23 Indiana that was purchased by the individual or a dependent of
24 the individual with money from an individual development
25 account.
26 (D) To pay for the rehabilitation (as defined in IC 6-3.1-11-11)
27 of the individual's primary residence located in Indiana.
28 (E) To begin or to purchase part or all of a business based in
29 Indiana or to expand an existing small business based in
30 Indiana.
31 (F) Subject to section 8(b) of this chapter, to purchase a motor
32 vehicle.
33 SECTION 4. IC 4-4-28-7, AS AMENDED BY P.L.50-2016,
34 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2024]: Sec. 7. (a) A qualifying individual, including an
36 individual who:
37 (1) established an individual development account under this
38 chapter before July 1, 2001; and
39 (2) held the account described in subdivision (1) for less than four
40 (4) years;
41 may establish an account by applying at a community development
42 corporation or community based organization after June 30, 2001.
ES 260—LS 6546/DI 129 3
1 (b) At the time of establishing an account under this section, the
2 qualifying individual must name a beneficiary to replace the qualifying
3 individual as the holder of the account if the qualifying individual dies.
4 If the beneficiary:
5 (1) is a member of the qualifying individual's family, all funds in
6 the account remain in the account; and
7 (2) is not a member of the qualifying individual's family, all funds
8 in the account provided by the state revert to the state.
9 The qualifying individual may change the name of the beneficiary at
10 the qualifying individual's discretion. A beneficiary who becomes the
11 holder of an account under this subsection is subject to this chapter and
12 rules adopted under this chapter regarding withdrawals from the
13 account.
14 (c) Only one (1) member of a qualifying individual's household may
15 establish an account.
16 (d) A qualifying individual shall maintain residency in Indiana until
17 the individual development account is closed.
18 SECTION 5. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
19 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2024]: Sec. 8. (a) A community development corporation and
21 community based organization shall do the following:
22 (1) Determine whether an individual who wants to establish an
23 account is a qualifying individual.
24 (2) Administer, through a financial institution, and act as trustee
25 for each account established through the community development
26 corporation or community based organization.
27 (3) Approve or deny an individual's request to make a withdrawal
28 from the individual's account.
29 (4) Provide or arrange for training in money management,
30 budgeting, and related topics for each individual who establishes
31 an account.
32 (b) A community development corporation or community based
33 organization may approve a qualifying individual's request to make a
34 withdrawal from an account to purchase a motor vehicle if the purpose
35 of the purchase is primarily to transport the individual to and from
36 work, postsecondary education, or an accredited or licensed training
37 program intended to lead to employment of the individual or a
38 dependent of the individual.
39 SECTION 6. IC 4-4-28-9, AS AMENDED BY P.L.150-2007,
40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2024]: Sec. 9. (a) An individual may deposit money from the
42 individual's earned income into the individual's account.
ES 260—LS 6546/DI 129 4
1 (b) An individual may deposit an unlimited amount of money into
2 the individual's account, However, only eight hundred of which the
3 first one thousand five hundred dollars ($800) ($1,500) annually is
4 eligible for a state deposit as provided in section 12 of this chapter.
5 SECTION 7. IC 4-4-28-10, AS AMENDED BY P.L.150-2007,
6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 10. (a) Not more than eight hundred (800)
8 accounts may be established in the state each state fiscal year
9 beginning before July 1, 2009.
10 (b) Not more than one thousand (1,000) accounts may be
11 established in the state each state fiscal year beginning after June 30,
12 2009.
13 (c) A community development corporation and community based
14 organization shall use money that is in an individual development
15 account fund established under section 13 of this chapter to allow a
16 qualified individual on a waiting list maintained by the community
17 development corporation or community based organization to
18 establish an account.
19 SECTION 8. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
20 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2024]: Sec. 11. (a) Each community development corporation
22 and community based organization shall annually provide the
23 authority with information needed to determine:
24 (1) the number of accounts administered by the community
25 development corporation or community based organization;
26 (2) the length of time each account under subdivision (1) has been
27 established; and
28 (3) the amount of money an individual has deposited into each
29 account under subdivision (1). during the preceding twelve (12)
30 months.
31 (b) The authority shall use the information provided under
32 subsection (a) to deposit the correct amount of money into each
33 account as provided in section 12 of this chapter.
34 SECTION 9. IC 4-4-28-12, AS AMENDED BY P.L.50-2016,
35 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 12. (a) The authority shall allocate, for each
37 account that has been established, for not more than five (5) years,
38 three dollars ($3) for each one dollar ($1) of the first four one
39 thousand five hundred dollars ($400) ($1,500) an individual deposited
40 into the individual's account. during the preceding twelve (12) months.
41 However, if the amount appropriated by the general assembly is
42 insufficient to make the deposits required by this section for accounts
ES 260—LS 6546/DI 129 5
1 that have been established, the authority shall proportionately reduce
2 the amounts allocated to and deposited into each account. The authority
3 may allocate three dollars ($3) for each one dollar ($1) of any part of
4 an amount above four hundred dollars ($400) an individual deposited
5 into the individual's account during the preceding twelve (12) months.
6 However, The authority's allocation under this subsection may not
7 exceed two four thousand four five hundred dollars ($2,400) ($4,500)
8 for each account described in this subsection.
9 (b) The authority shall deposit into each account established under
10 this chapter the appropriate amount of money determined under this
11 section.
12 (c) Money from a federal block grant program under Title IV-A of
13 the federal Social Security Act may be used by the state to provide
14 money under this section for deposit into an account held by an
15 individual who receives assistance under IC 12-14-2.
16 SECTION 10. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
17 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2024]: Sec. 13. (a) Each community development corporation
19 and community based organization may apply to the authority for an
20 allocation of tax credits under IC 6-3.1-18 for the contributors to a fund
21 established under this section. A community development corporation
22 and community based organization may establish an individual
23 development account fund to provide money to be used to finance
24 additional accounts to be administered by the community development
25 corporation or community based organization under this chapter and
26 to help pay for the community development corporation's or
27 community based organization's expenses related to the
28 administration of accounts.
29 (b) Each community development corporation and community
30 based organization shall encourage individuals, financial institutions,
31 corporations, and other entities to contribute to the fund. A contributor
32 to the fund may qualify for a tax credit as provided under IC 6-3.1-18.
33 (c) Each community development corporation and community
34 based organization may use up to twenty percent (20%) of the first
35 one hundred thousand dollars ($100,000) deposited each calendar year
36 in the fund under subsection (b) to help pay for the community
37 development corporation's or community based organization's
38 expenses related to the administration of accounts established under
39 this chapter. All deposits in the fund under subsection (b) of more than
40 one hundred thousand dollars ($100,000) during each calendar year
41 may be used only to fund accounts administered by the community
42 development corporation or community based organization under
ES 260—LS 6546/DI 129 6
1 this chapter.
2 (d) A community development corporation or community based
3 organization may allow an individual to establish a new account as
4 adequate funding becomes available.
5 (e) Only money from the fund may be used to make the deposit
6 described in subsection (f) into an account established under this
7 section.
8 (f) The community development corporation or community based
9 organization shall annually deposit at least three dollars ($3) into each
10 account for each one dollar ($1) an individual has deposited into the
11 individual's account as of June 30.
12 (g) A community development corporation or community based
13 organization may not allow a qualifying individual to establish an
14 account if the community development corporation or community
15 based organization does not have adequate funds to deposit into the
16 account under subsection (f).
17 SECTION 11. IC 4-4-28-15, AS AMENDED BY P.L.1-2007,
18 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2024]: Sec. 15. (a) An individual must request and receive
20 authorization from the community development corporation or
21 community based organization that administers the individual's
22 account before withdrawing money from the account for any purpose.
23 (b) An individual who is denied authorization to withdraw money
24 under subsection (a) may appeal the community development
25 corporation's or community based organization's decision to the
26 authority under rules adopted by the authority under IC 4-22-2.
27 SECTION 12. IC 4-4-28-16, AS AMENDED BY P.L.50-2016,
28 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2024]: Sec. 16. (a) Money withdrawn from an individual's
30 account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
31 money is used for at least one (1) of the following:
32 (1) To pay for costs (including tuition, laboratory costs, books,
33 computer costs, and other costs) at an accredited postsecondary
34 educational institution or a vocational school that is not a
35 postsecondary educational institution for the individual or for a
36 dependent of the individual.
37 (2) To pay for the costs (including tuition, laboratory costs, books,
38 computer costs, and other costs) associated with an accredited or
39 a licensed training program that may lead to employment for the
40 individual or for a dependent of the individual.
41 (3) To purchase a primary residence located in Indiana for the
42 individual or for a dependent of the individual or to reduce the
ES 260—LS 6546/DI 129 7
1 principal amount owed on a primary residence located in Indiana
2 that was purchased by the individual or a dependent of the
3 individual with money from an individual development account.
4 (4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
5 the individual's primary residence located in Indiana.
6 (5) To begin or to purchase part or all of a business based in
7 Indiana or to expand an existing small business based in Indiana.
8 (6) Subject to section 8(b) of this chapter, to purchase a motor
9 vehicle.
10 (b) At the time of requesting authorization under section 15 of this
11 chapter to withdraw money from an individual's account under
12 subsection (a)(5), the individual must provide the community
13 development corporation or community based organization with a
14 business plan that:
15 (1) has been approved by a financial institution or is approved by
16 the community development corporation or community based
17 organization;
18 (2) includes a description of services or goods to be sold, a
19 marketing plan, and projected financial statements; and
20 (3) may require the individual to obtain the assistance of an
21 experienced business advisor.
22 SECTION 13. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2024]: Sec. 18. (a) Each community development corporation
25 and community based organization shall annually:
26 (1) evaluate the individual development accounts administered by
27 the community development corporation or community based
28 organization; and
29 (2) submit a report containing the evaluation information to the
30 authority.
31 (b) Two (2) or more community development corporations and
32 community based organizations may work together in carrying out
33 the purposes of this chapter.
34 SECTION 14. IC 6-3.1-9-1, AS AMENDED BY P.L.166-2014,
35 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 1. (a) As used in this chapter, "authority" means
37 the Indiana housing and community development authority established
38 by IC 5-20-1-3.
39 (b) As used in this chapter, "business firm" means any business
40 entity authorized to do business in the state of Indiana that has state tax
41 liability.
42 (c) As used in this chapter, "community services" means any type
ES 260—LS 6546/DI 129 8
1 of:
2 (1) counseling and advice;
3 (2) emergency assistance;
4 (3) medical care;
5 (4) recreational facilities;
6 (5) housing facilities; or
7 (6) economic development assistance;
8 provided to individuals, economically disadvantaged households,
9 groups, or neighborhood organizations in an economically
10 disadvantaged area or provided to individuals who are ex-offenders
11 who have completed the individuals' criminal sentences or are serving
12 a term of probation or parole.
13 (d) As used in this chapter, "crime prevention" means any activity
14 which aids in the reduction of crime in an economically disadvantaged
15 area or an economically disadvantaged household.
16 (e) As used in this chapter, "economically disadvantaged area"
17 means an enterprise zone, or any other federally or locally designated
18 economically disadvantaged area in Indiana. The certification shall be
19 made on the basis of current indices of social and economic conditions,
20 which shall include but not be limited to the median per capita income
21 of the area in relation to the median per capita income of the state or
22 standard metropolitan statistical area in which the area is located.
23 (f) As used in this chapter, "economically disadvantaged household"
24 means a household with an annual income that is at or below eighty
25 percent (80%) of the area median income or any other federally
26 designated target population.
27 (g) As used in this chapter, "education" means any type of scholastic
28 instruction or scholarship assistance to an individual who:
29 (1) resides in an economically disadvantaged area; or
30 (2) is an ex-offender who has completed the individual's criminal
31 sentence or is serving a term of probation or parole;
32 that enables the individual to prepare for better life opportunities.
33 (h) As used in this chapter, "enterprise zone" means an enterprise
34 zone created under IC 5-28-15.
35 (i) As used in this chapter, "job training" means any type of
36 instruction to an individual who:
37 (1) resides in:
38 (A) an economically disadvantaged area; or
39 (B) an economically disadvantaged household; or
40 (2) is an ex-offender who has completed the individual's criminal
41 sentence or is serving a term of probation or parole;
42 that enables the individual to acquire vocational skills so that the
ES 260—LS 6546/DI 129 9
1 individual can become employable or be able to seek a higher grade of
2 employment.
3 (j) As used in this chapter, "neighborhood assistance" means either:
4 (1) furnishing financial assistance, labor, material, and technical
5 advice to aid in the physical or economic improvement of any part
6 or all of an economically disadvantaged area; or
7 (2) furnishing technical advice to promote higher employment in
8 any neighborhood in Indiana.
9 (k) As used in this chapter, "neighborhood organization" means any
10 organization, including but not limited to a nonprofit development
11 corporation doing both of the following:
12 (1) Performing community services:
13 (A) in an economically disadvantaged area;
14 (B) for an economically disadvantaged household; or
15 (C) for individuals who are ex-offenders who have completed
16 the individuals' criminal sentences or are serving a term of
17 probation or parole.
18 (2) Holding a ruling:
19 (A) from the Internal Revenue Service of the United States
20 Department of the Treasury that the organization is exempt
21 from income taxation under the provisions of the Internal
22 Revenue Code; and
23 (B) from the department of state revenue that the organization
24 is exempt from income taxation under IC 6-2.5-5-21.
25 (l) As used in this chapter, "person" means any individual subject
26 to Indiana gross or adjusted gross income tax.
27 (m) As used in this chapter, "state fiscal year" means a twelve (12)
28 month period beginning on July 1 and ending on June 30.
29 (n) As used in this chapter, "state tax liability" means the taxpayer's
30 total tax liability that is incurred under:
31 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
32 (2) IC 6-5.5 (the financial institutions tax);
33 as computed after the application of the credits that, under
34 IC 6-3.1-1-2, are to be applied before the credit provided by this
35 chapter.
36 (o) As used in this chapter, "tax credit" means a deduction from any
37 tax otherwise due and payable under IC 6-3 or IC 6-5.5.
38 SECTION 15. IC 6-3.1-9-2, AS AMENDED BY P.L.166-2014,
39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 2. (a) Each state fiscal year, a business firm or
41 a person who contributes to a neighborhood organization that engages
42 in the activities of providing:
ES 260—LS 6546/DI 129 10
1 (1) neighborhood assistance, job training, or education for
2 individuals not employed by the business firm or person;
3 (2) community services or crime prevention in an economically
4 disadvantaged area; or
5 (3) community services, education, or job training services to
6 individuals who are ex-offenders who have completed the
7 individuals' criminal sentences or are serving a term of probation
8 or parole;
9 shall receive a tax credit as provided in section 3 of this chapter if the
10 authority approves the proposal of the business firm or person, setting
11 forth the program to be conducted, the area selected, the estimated
12 amount to be invested in the program, and the plans for implementing
13 the program. may apply to the authority for an allocation of state
14 tax credits available under this chapter to be used to provide a tax
15 credit to a business firm or person that contributes to a program
16 involving one (1) or more of the activities described in subdivisions
17 (1) through (3).
18 (b) The authority, after consultation with the community services
19 agency and the commissioner of revenue, may adopt rules for the
20 approval or disapproval of these proposals. applications.
21 (c) A business firm or a person that contributes to the fund of a
22 neighborhood organization that has been approved by the
23 authority for an allocation of tax credits as described in subsection
24 (a) shall receive a tax credit as provided in section 3 of this chapter
25 if the neighborhood organization has agreed to issue a portion of
26 the tax credits allocated to the neighborhood organization by the
27 authority to the business firm or person.
28 SECTION 16. IC 6-3.1-9-3 IS AMENDED TO READ AS
29 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Subject to the
30 limitations provided in subsection (b) and sections 4, 5, and 6 of this
31 chapter, the department shall grant a tax credit against any state tax
32 liability due equal to fifty percent (50%) of the amount invested
33 contributed by a business firm or person in a program the proposal
34 application for which was approved under section 2 of this chapter.
35 (b) The credit provided by this chapter shall only be applied against
36 any state tax liability owed by the taxpayer after the application of any
37 credits, which under IC 6-3.1-1-2 must be applied before the credit
38 provided by this chapter. In addition, the tax credit which a taxpayer
39 receives under this chapter may not exceed twenty-five thousand
40 dollars ($25,000) for any taxable year of the taxpayer.
41 (c) If a business firm that is:
42 (1) exempt from adjusted gross income tax (IC 6-3-1 through
ES 260—LS 6546/DI 129 11
1 IC 6-3-7) under IC 6-3-2-2.8(2); or
2 (2) a partnership;
3 does not have any tax liability against which the credit provided by this
4 section may be applied, a shareholder or a partner of the business firm
5 is entitled to a credit against the shareholder's or the partner's liability
6 under the adjusted gross income tax.
7 (d) The amount of the credit provided by this section is equal to:
8 (1) the tax credit determined for the business firm for the taxable
9 year under subsection (a); multiplied by
10 (2) the percentage of the business firm's distributive income to
11 which the shareholder or the partner is entitled.
12 The credit provided by this section is in addition to any credit to which
13 a shareholder or partner is otherwise entitled under this chapter.
14 However, a business firm and a shareholder or partner of that business
15 firm may not claim a credit under this chapter for the same investment.
16 contribution.
17 SECTION 17. IC 6-3.1-9-4, AS AMENDED BY P.L.1-2007,
18 SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2024]: Sec. 4. (a) The neighborhood organization, on
20 behalf of any business firm or person which desires to claim a tax
21 credit as provided in this chapter, shall file with the department,
22 authority, in the form that the department authority may prescribe, an
23 application documentation stating the amount of the contribution or
24 investment which it proposes to make which that would qualify for a
25 tax credit, and the amount sought allocated to the business firm or
26 person to be claimed as a credit. The application shall include a
27 certificate evidencing approval of the contribution or program by the
28 authority.
29 (b) The authority shall give priority in issuing certificates tax
30 credits to applicants neighborhood organizations whose
31 contributions or programs directly benefit enterprise zones.
32 (c) The department shall promptly notify an applicant a business
33 firm or person whether, or the extent to which, the tax credit is
34 allowable in the state fiscal year in which the application tax return
35 claiming the credit is filed, as provided in section 5 of this chapter. If
36 the credit is allowable in that state fiscal year, the applicant shall within
37 thirty (30) days after receipt of the notice file with the department of
38 state revenue a statement, in the form and accompanied by the proof of
39 payment as the department may prescribe, setting forth that the amount
40 to be claimed as a credit under this chapter has been paid to an
41 organization for an approved program or purpose, or permanently set
42 aside in a special account to be used solely for an approved program or
ES 260—LS 6546/DI 129 12
1 purpose.
2 (d) The department may disallow any credit claimed under this
3 chapter for which the statement or proof of payment is not filed within
4 the thirty (30) day period. shall consider documentation from the
5 authority as proof of payment, setting forth that the amount to be
6 claimed as a credit under this chapter has been paid to an
7 organization for an approved program or purpose, or permanently
8 set aside in a special account to be used solely for an approved
9 program or purpose.
10 SECTION 18. IC 6-3.1-9-5 IS AMENDED TO READ AS
11 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) The amount of
12 tax credits allowed under this chapter may not exceed two million five
13 hundred thousand dollars ($2,500,000) in the state fiscal year
14 beginning July 1, 1997, and ending June 30, 1998, and each state fiscal
15 year thereafter.
16 (b) The department shall record the time of filing of each
17 application for allowance of a credit required tax return claiming the
18 credit under section 4 of this chapter and shall approve the
19 applications, credit if they the business firm or person otherwise
20 qualify qualifies for a tax credit under this chapter, in the chronological
21 order in which the applications are tax return claiming the credit is
22 filed in the state fiscal year.
23 (c) When the total credits approved under this section equal the
24 maximum amount allowable in any state fiscal year, no application
25 credits thereafter filed for that same fiscal year shall be approved.
26 However, if any applicant for whom a credit has been approved fails to
27 file the statement of proof of payment required under section 4 of this
28 chapter, an amount equal to the credit previously allowed or set aside
29 for the applicant may be allowed to any subsequent applicant in the
30 year. In addition, the department may, if the applicant so requests,
31 approve a credit application, in whole or in part, with respect to the
32 next succeeding state fiscal year.
33 SECTION 19. IC 6-3.1-18-0.3 IS ADDED TO THE INDIANA
34 CODE AS A NEW SECTION TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2024]: Sec. 0.3. As used in this chapter,
36 "authority" means the Indiana housing and community
37 development authority established by IC 5-20-1-3.
38 SECTION 20. IC 6-3.1-18-0.5 IS ADDED TO THE INDIANA
39 CODE AS A NEW SECTION TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. As used in this chapter,
41 "business firm" means any business entity authorized to do
42 business in the state of Indiana that has state tax liability.
ES 260—LS 6546/DI 129 13
1 SECTION 21. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 0.7. As used in this chapter,
4 "community based organization" has the meaning set forth in
5 IC 4-4-28-1.7.
6 SECTION 22. IC 6-3.1-18-2 IS AMENDED TO READ AS
7 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. As used in this
8 chapter, "fund" refers to an individual development account fund
9 established by a community development corporation or community
10 based organization under IC 4-4-28-13.
11 SECTION 23. IC 6-3.1-18-4.3 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2024]: Sec. 4.3. As used in this chapter,
14 "person" means any individual subject to Indiana adjusted gross
15 income tax.
16 SECTION 24. IC 6-3.1-18-4.5, AS ADDED BY P.L.50-2016,
17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2024]: Sec. 4.5. As used in this chapter, "qualified
19 contribution" means a contribution to a fund for which a community
20 development corporation or community based organization has
21 received an allocation of tax credits under IC 4-4-28-13.
22 SECTION 25. IC 6-3.1-18-6, AS AMENDED BY P.L.50-2016,
23 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2024]: Sec. 6. (a) Subject to the limitations provided in
25 subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the
26 department shall grant a tax credit against any state tax liability due
27 equal to fifty percent (50%) of the amount of a qualified contribution
28 made in a taxable year by a business firm or person or an individual
29 if the qualified contribution is not less than one hundred dollars ($100)
30 and not more than fifty thousand dollars ($50,000).
31 (b) The credit provided by this chapter shall only be applied against
32 any state tax liability owed by the taxpayer after the application of any
33 credits that under IC 6-3.1-1-2 must be applied before the credit
34 provided by this chapter.
35 SECTION 26. IC 6-3.1-18-9, AS AMENDED BY P.L.50-2016,
36 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2024]: Sec. 9. (a) The community development corporation
38 or community based organization, on behalf of a business firm or
39 person that or an individual who desires to claim a tax credit as
40 provided in this chapter, shall file with the department, authority, in
the form approved by the department, 41 authority, an application
42 documentation stating the amount of the qualified contribution that
ES 260—LS 6546/DI 129 14
1 the person or individual proposes to make would qualify for a tax
2 credit, and the amount sought allocated to the business firm or
3 person to be claimed as a credit.
4 (b) The department shall promptly notify an applicant a business
5 firm or person whether, or the extent to which, the tax credit is
6 allowable in the state fiscal year in which the application tax return
7 claiming the credit is filed, as provided in section 6 of this chapter. If
8 the credit is allowable in that state fiscal year, the applicant shall within
9 thirty (30) days after receipt of the notice file with the department a
10 statement, in the form and accompanied by the proof of payment of the
11 qualified contribution as the department may prescribe, setting forth
12 that the amount to be claimed as a credit under this chapter has been
13 paid through a qualified contribution as provided in section 6 of this
14 chapter.
15 (c) The department may disallow any credit claimed under this
16 chapter for which the statement or proof of payment is not filed within
17 the thirty (30) day period. shall consider documentation from the
18 authority as proof of payment, setting forth that the amount to be
19 claimed as a credit under this chapter has been paid to a
20 community development corporation or a community based
21 organization as a qualified contribution to the fund of the
22 community development corporation or the community based
23 organization fund for the current state fiscal year, or permanently
24 set aside in a special account to be used solely for this fund.
25 SECTION 27. IC 6-3.1-18-10 IS AMENDED TO READ AS
26 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) The amount of
27 tax credits allowed under this chapter may not exceed two hundred
28 thousand dollars ($200,000) in any state fiscal year.
29 (b) The department shall:
30 (1) record the time of filing of each application for allowance of
31 a tax return claiming the credit required under section 9 of this
32 chapter; and
33 (2) approve the applications, credit, if they the business firm or
34 person claiming the credit otherwise qualify qualifies for a tax
35 credit under this chapter, in the chronological order in which the
36 applications are tax return claiming the credit is filed in the
37 state fiscal year.
38 (c) When the total credits approved under this section equal the
39 maximum amount allowable in any state fiscal year, an application
40 filed after that time for the no credits thereafter filed for that same
41 fiscal year may not shall be approved. However, if an applicant for
42 whom a credit has been approved fails to file the statement of proof of
ES 260—LS 6546/DI 129 15
1 payment required under section 9 of this chapter, an amount equal to
2 the credit previously allowed or set aside for the applicant may be
3 allowed to any subsequent applicant in the year. In addition, the
4 department may, if the applicant so requests, approve a credit
5 application, in whole or in part, with respect to the next succeeding
6 state fiscal year.
ES 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
_____
SENATE MOTION
Madam President: I move that Senate Bill 260 be amended to read
as follows:
Page 1, delete lines 1 through 12, begin a new paragraph and insert:
"SECTION 1. IC 4-4-28-1.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 1.7. (a) As used in this chapter, "community based
organization" means a private, nonprofit corporation whose board
of directors is comprised of business, civic, and community leaders,
and whose principal purpose includes the provision of low income
housing.
(b) A community based organization shall not be construed to
have the same powers as a community development corporation.".
Page 1, line 15, reset in roman "a".
Page 1, line 16, reset in roman "community development
corporation".
Page 1, line 16, delete "an eligible" and insert "and community
based".
Page 2, line 5, reset in roman "a community development
corporation".
Page 2, line 5, delete "an eligible" and insert "and community
based".
Page 3, line 1, reset in roman "a community development".
Page 3, line 2, reset in roman "corporation".
Page 3, line 2, delete "an eligible" and insert "and community
based".
Page 3, delete lines 20 through 40, begin a new paragraph and
insert:
ES 260—LS 6546/DI 129 17
"SECTION 6. IC 4-4-28-8, AS AMENDED BY P.L.50-2016,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 8. (a) A community development corporation and
community based organization shall do the following:
(1) Determine whether an individual who wants to establish an
account is a qualifying individual.
(2) Administer, through a financial institution, and act as trustee
for each account established through the community development
corporation and community based organization.
(3) Approve or deny an individual's request to make a withdrawal
from the individual's account.
(4) Provide or arrange for training in money management,
budgeting, and related topics for each individual who establishes
an account.
(b) A community development corporation and community based
organization may approve a qualifying individual's request to make a
withdrawal from an account to purchase a motor vehicle if the purpose
of the purchase is primarily to transport the individual to and from
work, postsecondary education, or an accredited or licensed training
program intended to lead to employment of the individual or a
dependent of the individual.".
Page 4, delete lines 15 through 34, begin a new paragraph and
insert:
"(c) A community development corporation and community based
organization shall use money that is in an individual development
account fund established under section 13 of this chapter to allow a
qualified individual on a waiting list maintained by the community
development corporation and community based organization to
establish an account.
SECTION 9. IC 4-4-28-11, AS AMENDED BY P.L.1-2007,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 11. (a) Each community development corporation
and community based organization shall annually provide the
authority with information needed to determine:
(1) the number of accounts administered by the community
development corporation and community based organization;
(2) the length of time each account under subdivision (1) has been
established; and
(3) the amount of money an individual has deposited into each
account under subdivision (1). during the preceding twelve (12)
months.
(b) The authority shall use the information provided under
ES 260—LS 6546/DI 129 18
subsection (a) to deposit the correct amount of money into each
account as provided in section 12 of this chapter.".
Page 5, delete lines 17 through 42, begin a new paragraph and
insert:
"SECTION 11. IC 4-4-28-13, AS AMENDED BY P.L.50-2016,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 13. (a) Each community development corporation
and community based organization may apply to the authority for an
allocation of tax credits under IC 6-3.1-18 for the contributors to a fund
established under this section. A community development corporation
and community based organization may establish an individual
development account fund to provide money to be used to finance
additional accounts to be administered by the community development
corporation and community based organization under this chapter
and to help pay for the community development corporation's and
community based organization's expenses related to the
administration of accounts.
(b) Each community development corporation and community
based organization shall encourage individuals, financial institutions,
corporations, and other entities to contribute to the fund. A contributor
to the fund may qualify for a tax credit as provided under IC 6-3.1-18.
(c) Each community development corporation and community
based organization may use up to twenty percent (20%) of the first
one hundred thousand dollars ($100,000) deposited each calendar year
in the fund under subsection (b) to help pay for the community
development corporation's and community based organization's
expenses related to the administration of accounts established under
this chapter. All deposits in the fund under subsection (b) of more than
one hundred thousand dollars ($100,000) during each calendar year
may be used only to fund accounts administered by the community
development corporation and community based organization under
this chapter.
(d) A community development corporation and community based
organization may allow an individual to establish a new account as
adequate funding becomes available.
(e) Only money from the fund may be used to make the deposit
described in subsection (f) into an account established under this
section.
(f) The community development corporation and community based
organization shall annually deposit at least three dollars ($3) into each
account for each one dollar ($1) an individual has deposited into the
individual's account as of June 30.
ES 260—LS 6546/DI 129 19
(g) A community development corporation and community based
organization may not allow a qualifying individual to establish an
account if the community development corporation and community
based organization does not have adequate funds to deposit into the
account under subsection (f).".
Page 6, delete lines 1 through 15.
Page 6, line 19, reset in roman "community development
corporation".
Page 6, line 19, delete "eligible" and insert "and community
based".
Page 6, line 23, reset in roman "community development".
Page 6, line 24, reset in roman "corporation's".
Page 6, line 24, delete "eligible" and insert "and community
based".
Page 7, delete lines 9 through 31, begin a new paragraph and insert:
"(b) At the time of requesting authorization under section 15 of this
chapter to withdraw money from an individual's account under
subsection (a)(5), the individual must provide the community
development corporation and community based organization with a
business plan that:
(1) has been approved by a financial institution or is approved by
the community development corporation and community based
organization;
(2) includes a description of services or goods to be sold, a
marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an
experienced business advisor.
SECTION 14. IC 4-4-28-18, AS AMENDED BY P.L.1-2007,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 18. (a) Each community development corporation
and community based organization shall annually:
(1) evaluate the individual development accounts administered by
the community development corporation and community based
organization; and
(2) submit a report containing the evaluation information to the
authority.
(b) Two (2) or more community development corporations and
community based organizations may work together in carrying out
the purposes of this chapter.".
Page 12, delete lines 41 through 42, begin a new paragraph and
insert:
"SECTION 22. IC 6-3.1-18-0.7 IS ADDED TO THE INDIANA
ES 260—LS 6546/DI 129 20
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 0.7. As used in this chapter,
"community based organization" has the meaning set forth in
IC 4-4-28-1.7.".
Page 13, delete lines 1 through 2.
Page 13, line 6, reset in roman "community development
corporation".
Page 13, line 6, delete "an eligible" and insert "and community
based".
Page 13, line 16, reset in roman "a community".
page 13, line 17, reset in roman "development corporation".
Page 13, line 17, delete "an eligible" and insert "and community
based".
Page 13, line 34, delete "The eligible" and insert "The community
development corporation and community based".
Page 14, delete lines 11 through 19, begin a new paragraph and
insert:
"(c) The department may disallow any credit claimed under this
chapter for which the statement or proof of payment is not filed within
the thirty (30) day period. shall consider documentation from the
authority as proof of payment, setting forth that the amount to be
claimed as a credit under this chapter has been paid to a
community development corporation and a community based
organization as a qualified contribution to the fund of the
community development corporation and the community based
organization fund for the current state fiscal year, or permanently
set aside in a special account to be used solely for this fund.".
Renumber all SECTIONS consecutively.
(Reference is to SB 260 as printed January 31, 2024.)
BALDWIN
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred Senate Bill 260, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, line 13, delete "and" and insert "or".
ES 260—LS 6546/DI 129 21
Page 2, line 2, delete "and" and insert "or".
Page 2, line 42, delete "and" and insert "or".
Page 3, line 26, delete "and" and insert "or".
Page 3, line 32, delete "and" and insert "or".
Page 4, line 17, delete "and" and insert "or".
Page 4, line 25, delete "and" and insert "or".
Page 5, line 25, delete "and" and insert "or".
Page 5, line 26, after "corporation's" delete "and" and insert "or".
Page 5, line 37, delete "and" and insert "or".
Page 5, line 42, delete "and" and insert "or".
Page 6, line 2, delete "and" and insert "or".
Page 6, line 8, delete "and" and insert "or".
Page 6, line 12, delete "and" and insert "or".
Page 6, line 14, delete "and" and insert "or".
Page 6, line 20, delete "and" and insert "or".
Page 6, line 25, delete "and" and insert "or".
Page 7, line 13, delete "and" and insert "or".
Page 7, line 16, delete "and" and insert "or".
Page 7, line 27, delete "and" and insert "or".
Page 13, line 9, reset in roman "a".
Page 13, line 9, delete "and" and insert "or".
Page 13, line 20, delete "and" and insert "or".
Page 13, line 38, delete "and" and insert "or".
Page 14, line 20, delete "and" and insert "or".
Page 14, line 22, delete "and" and insert "or".
and when so amended that said bill do pass.
(Reference is to SB 260 as reprinted February 2, 2024.)
THOMPSON
Committee Vote: yeas 21, nays 0.
ES 260—LS 6546/DI 129