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IN HB1575
Bill
Status
1/20/2015
Primary Sponsor
Melanie Wright
Click for details
AI Summary
House Bill 1575 Summary
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Establishes a graduated tax credit for qualified small business startups against Indiana adjusted gross income tax liability, with credits declining over five consecutive years (100%, 80%, 60%, 40%, 20% respectively).
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Defines "qualified small business startup" as a business with fewer than 10 full-time employees, annual sales not exceeding $1,000,000, that is not publicly traded, not part of an affiliated group, and was in its first year of worker's compensation compliance within the preceding five years.
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Allows pass-through entities (partnerships, LLCs, limited liability partnerships, and certain corporations) without their own tax liability to distribute the tax credit to shareholders, partners, or members based on their distributive income percentage.
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Tax credit eligibility ends after the fifth consecutive taxable year or if the business ceases to meet "qualified small business startup" requirements.
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Effective January 1, 2016, with applicability to taxable years beginning after December 31, 2015; the provision expires January 1, 2019.
Legislative Description
Tax credit for new small businesses. Provides that a taxpayer that is a qualified small business startup is entitled to a graduated tax credit against adjusted gross income tax liability. Defines a "qualified small business startup" as a business that: (1) is not part of an affiliated group of corporations or under common control; (2) has fewer than 10 full-time employees; (3) has sales of not more than $1,000,000; (4) is not publicly traded; and (5) during the preceding five years, was in the first year of employer compliance concerning worker's compensation requirements. The amount of the graduated tax credit
Last Action
First Reading: referred to Committee on Ways and Means
1/20/2015