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IN SB0295
Bill
AI Summary
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Allows individuals an income tax deduction equal to 50% of small business investor income received from Indiana small businesses, capped at $62,500 for single filers or $125,000 for joint filers per taxable year.
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Defines "Indiana small business" as a business with at least 1 full-time employee and not more than 25 full-time employees in the year it first files a certification statement, or up to 100 full-time employees in the following 9 years.
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Requires employees to perform at least 50% of their service for the business in Indiana to count toward the employee threshold.
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Limits the deduction to a maximum of 10 taxable years per Indiana small business (the year the business files its initial certification statement plus the following 9 years).
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Requires businesses to file an annual certification statement with the Indiana Department of Revenue to establish and maintain small business status for investor income deduction eligibility.
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Effective January 1, 2016 for taxable years beginning after December 31, 2015.
Legislative Description
Deduction for small business investor income. Provides an individual income tax deduction for small business investor income received from Indiana small businesses. Specifies that the amount of the deduction is equal to 50% of the total amount of small business investor income received in the taxable year by the individual, but not to exceed $62,500 (in the case of an individual who files a single return) or $125,000 (in the case of spouses who file a joint return). Provides that an individual may receive such a deduction for small business investor income from a particular Indiana small business for not
Last Action
First Reading: referred to Committee on Tax & Fiscal Policy
1/8/2015