Indiana-2010-SB0352-Introduced

January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.

Introduced

Second Regular Session 116th General Assembly (2010)

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SENATE BILL No. 352

A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.1-33; (10)IN0352.1.1. -->     SECTION 1. IC 6-3.1-33 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010 (RETROACTIVE)]:
     Chapter 33. Reemployment Tax Credit
    Sec. 1. As used in this chapter, "qualified employee" means an individual who:
        (1) is employed by a taxpayer for consideration for at least thirty-five (35) hours each week or renders any other standard of service generally accepted by custom or specified by contract as full-time employment;
        (2) after June 30, 2008, was separated from employment at a place of employment located in Indiana;
        (3) after June 30, 2008, received or was eligible to receive unemployment benefits under IC 22-4; and
        (4) was employed or reemployed by the taxpayer after December 31, 2009, and before January 1, 2012.
    Sec. 2. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (2) IC 6-5.5 (the financial institutions tax); and
        (3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    Sec. 3. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that has any state tax liability.
    Sec. 4. (a) Except as provided in subsection (b), a taxpayer is entitled to a credit against any state tax liability that may be imposed on the taxpayer for a taxable year after December 31, 2009, and before January 1, 2012, in an amount equal to the lesser of the following:
        (1) Ten percent (10%) of the wages paid to a qualified employee by the taxpayer during the taxable year.
        (2) Seven thousand dollars ($7,000).
    (b) The maximum amount of tax credits that may be allowed under this chapter during a state fiscal year for all taxpayers is seven million dollars ($7,000,000). If the maximum amount of tax credits claimed under this chapter in any taxable year exceeds the allowable maximum, the amount of the tax credit must be prorated among all taxpayers that qualify for a tax credit under this chapter.
    Sec. 5. If a pass through entity is entitled to a credit under section 4 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
        (1) the tax credit determined for the pass through entity for the taxable year; multiplied by
        (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
    Sec. 6. (a) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time that the credit is carried forward to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit

during the immediately preceding taxable year.
    (b) A taxpayer is not entitled to any carryback or refund of any unused credit.
    Sec. 7. (a) To receive the credit provided by this chapter, a taxpayer must:
        (1) submit to the department with the taxpayer's state tax return or returns information sufficient as determined by the department to establish that an employee for whom a tax credit is claimed is a qualified employee; and
        (2) claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department.
    (b) The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this chapter.
    Sec. 8. This chapter expires January 1, 2013.

SOURCE: IC 22-4-10-8; (10)IN0352.1.2. -->     SECTION 2. IC 22-4-10-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 8. (a) This section applies to:
        (1) an employer:
            (A) that is subject to this article for wages paid during a calendar year; and
            (B) whose contribution rate for the calendar year is determined under this chapter, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3; and
        (2) calendar years beginning after December 31, 2010, and before January 1, 2013.
    (b) As used in this section, "laid off employee" means an individual who:
        (1) was separated from employment with an employer described in subsection (a) without:
            (A) a recall date; or
            (B) a reasonable expectation of future employment or reemployment with the employer;
        (2) has applied for or received unemployment benefits under this article; and
        (3) on the date the employer described in subdivision (1) makes a reemployment offer, is not employed with another employer.
    (c) An employer that, after June 30, 2010, and before July 1, 2012, reemploys a laid off employee is entitled to receive a credit computed under subsection (d) to the employer's experience account.
    (d) The employer's credit for rehiring a laid off employee is determined in STEP THREE of the following formula:
        STEP ONE: Subtract:
            (A) the number of weeks the laid off employee received an unemployment benefit under this article; from
            (B) twenty-six (26).
        STEP TWO: Determine the greater of the following:
            (A) The remainder determined by STEP ONE.
            (B) Zero (0).
        STEP THREE: Multiply the STEP TWO result by the amount of the weekly unemployment benefit the employee received or was eligible to receive under this article.
    (e) The cost of an employer's credit under this section shall not be charged to the experience account of any employer.
    (f) This section expires January 1, 2013.

SOURCE: IC 22-4-25-1; (10)IN0352.1.3. --> SECTION 3. IC 22-4-25-1, AS AMENDED BY P.L.182-2009(ss), SECTION 368, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) There is created in the state treasury a special fund to be known as the special employment and training services fund. All interest on delinquent contributions and penalties collected under this article, together with any voluntary contributions tendered as a contribution to this fund, shall be paid into this fund. The money shall not be expended or available for expenditure in any manner which would permit their substitution for (or a corresponding reduction in) federal funds which would in the absence of said money be available to finance expenditures for the administration of this article, but nothing in this section shall prevent said money from being used as a revolving fund to cover expenditures necessary and proper under the law for which federal funds have been duly requested but not yet received, subject to the charging of such expenditures against such funds when received. The money in this fund shall be used by the board for the payment of refunds of interest on delinquent contributions and penalties so collected, for the payment of costs of administration which are found not to have been properly and validly chargeable against federal grants or other funds received for or in the employment and training services administration fund, on and after July 1, 1945. Such money shall be available either to satisfy the obligations incurred by the board directly, or by transfer by the board of the required amount from the special employment and training services fund to the employment and training services administration fund. The board shall order the transfer of such funds or the payment of any such obligation or expenditure and such funds shall be paid by

the treasurer of state on requisition drawn by the board directing the auditor of state to issue the auditor's warrant therefor. Any such warrant shall be drawn by the state auditor based upon vouchers certified by the board or the commissioner. The money in this fund is hereby specifically made available to replace within a reasonable time any money received by this state pursuant to 42 U.S.C. 502, as amended, which, because of any action or contingency, has been lost or has been expended for purposes other than or in amounts in excess of those approved by the bureau of employment security. The money in this fund shall be continuously available to the board for expenditures in accordance with the provisions of this section and shall not lapse at any time or be transferred to any other fund, except as provided in this article. Nothing in this section shall be construed to limit, alter, or amend the liability of the state assumed and created by IC 22-4-28, or to change the procedure prescribed in IC 22-4-28 for the satisfaction of such liability, except to the extent that such liability may be satisfied by and out of the funds of such special employment and training services fund created by this section.
    (b) Subject to section 3 of this chapter, whenever the balance in the special employment and training services fund exceeds eight million five hundred thousand dollars ($8,500,000), the board shall order payment of the amount that exceeds eight million five hundred thousand dollars ($8,500,000) into the unemployment insurance benefit fund.
    (c) Subject to section 3 of this chapter, the approval of the board, and the availability of funds, on July 1, 2008, and each subsequent July 1, the commissioner shall release:
        (1) one million dollars ($1,000,000) to the state educational institution established under IC 21-25-2-1 for training provided to participants in apprenticeship programs approved by the United States Department of Labor, Bureau of Apprenticeship and Training;
        (2) four million dollars ($4,000,000) to the state educational institution instituted and incorporated under IC 21-22-2-1 for training provided to participants in joint labor and management apprenticeship programs approved by the United States Department of Labor, Bureau of Apprenticeship and Training;
        (3) two hundred fifty thousand dollars ($250,000) for journeyman upgrade training to each of the state educational institutions described in subdivisions (1) and (2);
        (4) four hundred thousand dollars ($400,000) annually for training and counseling assistance:

            (A) provided by Hometown Plans under 41 CFR 60-4.5; and
            (B) approved by the United States Department of Labor, Bureau of Apprenticeship and Training;
        to individuals who have been unemployed for at least four (4) weeks or whose annual income is less than twenty thousand dollars ($20,000); and
        (5) three hundred thousand dollars ($300,000) annually for training and counseling assistance provided by the state institution established under IC 21-25-2-1 to individuals who have been unemployed for at least four (4) weeks or whose annual income is less than twenty thousand dollars ($20,000) for the purpose of enabling those individuals to apply for admission to apprenticeship programs offered by providers approved by the United States Department of Labor, Bureau of Apprenticeship and Training.
    (d) The funds released under subsection (c)(4) through (c)(5):
        (1) shall be considered part of the amount allocated under section 2.5 of this chapter; and
        (2) do not limit the amount that an entity may receive under section 2.5 of this chapter.
    (e) Each state educational institution described in subsection (c) is entitled to keep ten percent (10%) of the funds released under subsection (c) for the payment of costs of administering the funds. On each June 30 following the release of the funds, any funds released under subsection (c) not used by the state educational institutions under subsection (c) shall be returned to the special employment and training services fund.