HB 1256 Summary

• Establishes a state tax credit for taxpayers with federal medical device excise tax liability under Section 4191 of the Internal Revenue Code, effective for taxable years beginning after December 31, 2014

• Credit amount equals the taxpayer's federal excise tax liability multiplied by a credit apportionment percentage based on the ratio of Indiana-connected medical device sales to total medical device sales

• Apportionment percentage includes receipts from devices delivered or shipped to Indiana from within or outside Indiana, shipped to the U.S. Government, and shipped to states where the taxpayer is not subject to income tax

• Pass-through entities (partnerships, LLCs, LLPs, and exempt corporations) can allocate the credit to shareholders, partners, or members based on their percentage of distributive income

• Unused credits may be carried forward to succeeding tax years but cannot be refunded or carried back; taxpayers must claim the credit on state tax returns with documentation required by the Department of State Revenue