SB 164 Summary

• Creates a nonrefundable tax credit of $3,000 per qualified employee, capped at $100,000 per small business, for hiring individuals receiving unemployment benefits or returning from military service.

• Applies only to small businesses with fewer than 150 employees (majority in Indiana) that increase their average full-time Indiana workforce compared to their base employment period (January 1 - June 30, 2010).

• Limits credit eligibility to taxable years beginning in 2012, 2013, and 2014, with unused credits carryable to not more than three subsequent years.

• Requires forfeiture of 50% of tax credits if a qualified employee is terminated, laid off, reclassified to part-time, or their position is eliminated within 18 months of hire.

• Effective January 1, 2012 (retroactive); expires January 1, 2020.