Senate Bill 430 Summary

• Establishes a nonrefundable tax credit for small businesses (fewer than 150 employees, majority in Indiana) that hire qualified employees receiving unemployment benefits or returning from military service.

• Credit amount is $3,000 per qualified employee, limited to $100,000 per business per taxable year, applicable only to tax years 2011-2013.

• Requires small businesses to employ more full-time employees during the tax year than their average employment during the base period (January 1, 2009 through June 30, 2009).

• Allows unused credits to carry forward up to three subsequent taxable years, and requires forfeiture of 50% of credits if a qualified employee is terminated, laid off, or reclassified within 18 months of hire.

• Effective January 1, 2011 (retroactive), with the chapter expiring January 1, 2020.