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IN HB1666
Bill
Status
1/24/2019
Primary Sponsor
Ben Smaltz
Click for details
AI Summary
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Increases the venture capital investment tax credit rate from 20% to 25% for investments in qualified Indiana businesses, and to 40% for investments in businesses located in low income communities (as defined by federal Section 45D), effective for taxable years beginning after December 31, 2019
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Raises the maximum tax credit per qualified Indiana business from $1,000,000 to $1,500,000 for calendar years after 2019
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Increases the total annual cap on venture capital tax credits approved by the Indiana Economic Development Corporation from $12,500,000 to $15,000,000
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Expands the types of tax liabilities the credit may offset to include retaliatory premium tax imposed on out-of-state insurance companies under IC 27-1-20-12
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Makes the venture capital investment tax credit assignable to other taxpayers, with assignments required to be in writing and reported on state tax returns
Legislative Description
Venture capital tax credits. Provides that the venture capital investment tax credit may be applied against any retaliatory premium tax liability imposed on out-of-state insurance companies. (A retaliatory tax is added in determining Indiana insurance premium tax liability when the state in which the insurance company is domiciled imposes higher taxes and fees on an Indiana domiciled insurer for the same business.) Increases the maximum amount of tax credits available under the venture capital investment tax credit for the provision of qualified investment capital to a particular qualified Indiana business to be the lesser of: (1) the total amount of qualified investment capital provided to the qualified business, multiplied by: (A) 40%, in the case of a qualified business that is located within a low income community; or (B) 25%, in the case of any other qualified business (other than a qualified business located in a low income community); or (2) $1,500,000; for calendar years after 2019. Increases the total amount of tax credits that may be approved by the Indiana economic development corporation for qualified investment capital from $12,500,000 to $15,000,000. Provides that, for a taxable year beginning after December 31, 2019, the amount of credit to which a taxpayer is entitled equals the product of: (1) 40%, in the case of a qualified Indiana business that is located within a low income community; or (2) 25%, in the case of any other qualified Indiana business; multiplied by the amount of the qualified investment capital. Incorporates the definition of "low income community" used in the federal new markets tax credit for purposes of determining a low income community in Indiana. Provides that the credit is assignable.
Last Action
First reading: referred to Committee on Ways and Means
1/24/2019