CHAPTER 31.9. HOOSIER ALTERNATIVE FUEL VEHICLE MANUFACTURER TAX CREDIT
IC 6-3.1-31.9
Chapter 31.9. Hoosier Alternative Fuel Vehicle Manufacturer Tax
Credit
IC 6-3.1-31.9-1
"Alternative fuel"
Sec. 1. As used in this chapter, "alternative fuel" means:
(1) methanol, denatured ethanol, and other alcohols;
(2) mixtures containing eighty-five percent (85%) or more by
volume of methanol, denatured ethanol, and other alcohols with
gasoline or other fuel;
(3) natural gas;
(4) liquefied petroleum gas;
(5) hydrogen;
(6) coal-derived liquid fuels;
(7) non-alcohol fuels derived from biological material;
(8) P-Series fuels;
(9) electricity; or
(10) biodiesel or ultra low sulfur diesel fuel.
As added by P.L.223-2007, SEC.4. Amended by P.L.182-2009(ss),
SEC.206.
IC 6-3.1-31.9-2
"Alternative fuel vehicle"
Sec. 2. As used in this chapter, "alternative fuel vehicle" means
any passenger car or light truck with a gross weight of eight thousand
five hundred (8,500) pounds or less that is designed to operate on at
least one (1) alternative fuel.
As added by P.L.223-2007, SEC.4. Amended by P.L.182-2009(ss),
SEC.207.
IC 6-3.1-31.9-3
"The corporation"
Sec. 3. As used in this chapter, "the corporation" means the
Indiana economic development corporation established by
IC 5-28-3-1.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-4
"Director"
Sec. 4. As used in this chapter, "director" has the meaning set
forth in IC 6-3.1-13-3.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-5
"Highly compensated employee"
Sec. 5. As used in this chapter, "highly compensated employee"
has the meaning set forth in Section 414(q) of the Internal Revenue
Code.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-6
"New employee"
Sec. 6. As used in this chapter, "new employee" has the meaning
set forth in IC 6-3.1-13-6.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-7
"Qualified investment"
Sec. 7. As used in this chapter, "qualified investment" means the
amount of a taxpayer's expenditures in Indiana that are reasonable
and necessary for the manufacture or assembly of alternative fuel
vehicles, including:
(1) the purchase of new telecommunications, production,
manufacturing, fabrication, assembly, finishing, distribution,
transportation, or logistical distribution equipment, jigs, dies, or
fixtures;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, finishing, distribution, transportation, or logistical
distribution facilities;
(4) onsite infrastructure improvements;
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, finishing, distribution,
transportation, or logistical distribution facilities;
(6) costs associated with retooling existing machinery and
equipment;
(7) costs associated with the construction of special purpose
buildings, pits, and foundations; and
(8) costs associated with the purchase of machinery, equipment,
or special purpose buildings used to manufacture or assemble
alternative fuel vehicles;
that are certified by the corporation under this chapter as being
eligible for the credit under this chapter.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-8
"State tax liability"
Sec. 8. 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.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-9
"Taxpayer"
Sec. 9. As used in this chapter, "taxpayer" means an individual, a
corporation, a partnership, or other entity that has state tax liability.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-10
Purposes of credit awards
Sec. 10. The corporation may make credit awards under this
chapter to:
(1) foster job creation and higher wages;
(2) reduce dependency upon energy sources imported into the
United States; and
(3) reduce air pollution as the result of the manufacture or
assembly of alternative fuel vehicles in Indiana.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-11
Taxpayers entitled to the credit
Sec. 11. A taxpayer that:
(1) is awarded a tax credit under this chapter by the corporation;
and
(2) complies with the conditions set forth in this chapter and the
agreement entered into by the corporation and the taxpayer
under this chapter;
is entitled to a credit against the taxpayer's state tax liability in a
taxable year.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-12
Amount of the credit
Sec. 12. The total amount of a tax credit claimed for a taxable
year under this chapter is a percentage determined by the
corporation, not to exceed fifteen percent (15%) of the amount of a
qualified investment made by the taxpayer in Indiana during that
taxable year. The taxpayer may carry forward any unused credit.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-13
Carry forward of an unused credit
Sec. 13. (a) A taxpayer may carry forward an unused credit for the
number of years determined by the corporation, not to exceed nine
(9) consecutive taxable years, beginning with the taxable year after
the taxable year in which the taxpayer makes the qualified
investment.
(b) The amount that a taxpayer may carry forward to a particular
taxable year under this section equals the unused part of a credit
allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified
investment; and
(2) carry forward a remainder for one (1) or more different
qualified investments;
in the same taxable year.
(d) The total amount of each tax credit claimed under this chapter
may not exceed fifteen percent (15%) of the qualified investment for
which the tax credit is claimed.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-14
Applying for a credit award
Sec. 14. A person that proposes a project to manufacture or
assemble alternative fuel vehicles that would create new jobs,
increase wage levels, or involve substantial capital investment in
Indiana may apply to the corporation before the taxpayer makes the
qualified investment to enter into an agreement for a tax credit under
this chapter. The corporation shall prescribe the form of the
application.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-15
Agreements between the corporation and an applicant
Sec. 15. After receipt of an application, the corporation may enter
into an agreement with the applicant for a credit under this chapter
if the corporation determines that all the following conditions exist:
(1) The applicant's project will raise the total earnings of
employees of the applicant in Indiana.
(2) The applicant's project is economically sound and will
benefit the people of Indiana by increasing opportunities for
employment and strengthening the economy of Indiana.
(3) The manufacture or assembly of alternative fuel vehicles by
the applicant will reduce air pollution.
(4) The manufacture or assembly of alternative fuel vehicles by
the applicant will reduce dependence by the United States on
foreign energy sources.
(5) Receiving the tax credit is a major factor in the applicant's
decision to go forward with the project.
(6) Awarding the tax credit will result in an overall positive
fiscal impact to the state, as certified by the budget agency
using the best available data.
(7) The credit is not prohibited by section 16 of this chapter.
(8) The average wage that will be paid by the taxpayer to its
employees (excluding highly compensated employees) at the
location after the credit is given will be at least equal to one
hundred fifty percent (150%) of the hourly minimum wage
under IC 22-2-2-4 or its equivalent.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-16
Intrastate relocations ineligible
Sec. 16. A person is not entitled to claim the credit provided by
this chapter for any jobs that the person relocates from one (1) site
in Indiana to another site in Indiana. Determinations under this
section shall be made by the corporation.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-17
Certifying a credit award
Sec. 17. The corporation shall certify the amount of the qualified
investment that is eligible for a credit under this chapter. In
determining the credit amount that should be awarded, the
corporation shall grant a credit only for the amount of the qualified
investment that is directly related to expanding:
(1) the workforce in Indiana; or
(2) the capital investment in Indiana.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-18
Agreements between the corporation and an applicant to whom a
credit is awarded
Sec. 18. The corporation shall enter into an agreement with an
applicant that is awarded a credit under this chapter. The agreement
must include all the following:
(1) A detailed description of the project that is the subject of the
agreement.
(2) The first taxable year for which the credit may be claimed.
(3) The amount of the taxpayer's state tax liability for each tax
in the taxable year of the taxpayer that immediately preceded
the first taxable year in which the credit may be claimed.
(4) The maximum tax credit amount that will be allowed for
each taxable year.
(5) A requirement that the taxpayer shall maintain operations at
the project location for at least ten (10) years during the term
that the tax credit is available.
(6) A specific method for determining the number of new
employees employed during a taxable year who are performing
jobs not previously performed by an employee.
(7) A requirement that the taxpayer shall annually report to the
corporation the number of new employees who are performing
jobs not previously performed by an employee, the average
wage of the new employees, the average wage of all employees
at the location where the qualified investment is made, and any
other information the director needs to perform the director's
duties under this chapter.
(8) A requirement that the director is authorized to verify with
the appropriate state agencies the amounts reported under
subdivision (7), and that after doing so shall issue a certificate
to the taxpayer stating that the amounts have been verified.
(9) A requirement that the taxpayer shall pay an average wage
to all its employees other than highly compensated employees
in each taxable year that a tax credit is available that equals at
least one hundred fifty percent (150%) of the hourly minimum
wage under IC 22-2-2-4 or its equivalent.
(10) A requirement that the taxpayer will keep the qualified
investment property that is the basis for the tax credit in Indiana
for at least the lesser of its useful life for federal income tax
purposes or ten (10) years.
(11) A requirement that the taxpayer will maintain at the
location where the qualified investment is made during the term
of the tax credit a total payroll that is at least equal to the
payroll level that existed before the qualified investment was
made.
(12) A requirement that the taxpayer shall provide written
notification to the director and the corporation not more than
thirty (30) days after the taxpayer makes or receives a proposal
that would transfer the taxpayer's state tax liability obligations
to a successor taxpayer.
(13) Any other performance conditions that the corporation
determines are appropriate.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-19
Taxpayer documentation
Sec. 19. A taxpayer claiming a credit under this chapter shall
submit to the department of state revenue a copy of the director's
certificate of verification under this chapter for the taxable year.
However, failure to submit a copy of the certificate does not
invalidate a claim for a credit.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-20
Breach of taxpayer agreement
Sec. 20. If the director determines that a taxpayer who has
received a credit under this chapter is not complying with the
requirements of the tax credit agreement or all the provisions of this
chapter, the director shall, after giving the taxpayer an opportunity
to explain the noncompliance, notify the Indiana economic
development corporation and the department of state revenue of the
noncompliance and request an assessment. The department of state
revenue, with the assistance of the director, shall state the amount of
the assessment, which may not exceed the sum of any previously
allowed credits under this chapter. After receiving the notice, the
department of state revenue shall make an assessment against the
taxpayer under IC 6-8.1.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-21
Annual report on the tax credit program
Sec. 21. On or before March 31 each year, the director shall
submit a report to the corporation on the tax credit program under
this chapter. The report must include information on the number of
agreements that were entered into under this chapter during the
preceding calendar year, a description of the project that is the
subject of each agreement, an update on the status of projects under
agreements entered into before the preceding calendar year, and the
sum of the credits awarded under this chapter. A copy of the report
shall be transmitted in an electronic format under IC 5-14-6 to the
executive director of the legislative services agency for distribution
to the members of the general assembly.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-22
Biennial evaluation of the tax credit program
Sec. 22. On a biennial basis, the corporation shall provide for an
evaluation of the tax credit program. The evaluation must include an
assessment of the effectiveness of the program in creating new jobs
and increasing wages in Indiana and of the revenue impact of the
program and may include a review of the practices and experiences
of other states with similar programs. The director shall submit a
report on the evaluation to the governor, the president pro tempore
of the senate, and the speaker of the house of representatives after
June 30 and before November 1 in each odd-numbered year. The
report provided to the president pro tempore of the senate and the
speaker of the house of representatives must be in an electronic
format under IC 5-14-6.
As added by P.L.223-2007, SEC.4.
IC 6-3.1-31.9-23
Expiration of the tax credit program
Sec. 23. (a) This chapter applies to taxable years beginning after
December 31, 2006.
(b) Notwithstanding the other provisions of this chapter, the
corporation may not approve a credit for a qualified investment made
after December 31, 2012. However, this section may not be
construed to prevent a taxpayer from carrying an unused tax credit
attributable to a qualified investment made before January 1, 2012,
forward to a taxable year beginning after December 31, 2011, in the
manner provided by section 13 of this chapter.
As added by P.L.223-2007, SEC.4.