SB 0038 Summary

• Provides a nonrefundable tax credit of $3,000 per qualified new employee to small businesses, capped at $100,000 per business, for taxable years 2014-2016.

• Qualified new employees must be hired full-time after December 31, 2013, and be either receiving unemployment benefits, returning from military service, or both.

• Small businesses must employ more full-time employees in Indiana during the taxable year than the average number employed during the base period (January 1 - June 30, 2013).

• Excess credits may be carried forward to the next three taxable years, and businesses forfeit 50% of credits if a qualified employee is terminated, laid off, or reclassified to part-time within 18 months of hire.

• Effective January 1, 2014 (retroactive); employment levels determined using quarterly payroll reports submitted to the department of workforce development.