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IN SB0298
Bill
Status
1/7/2019
Primary Sponsor
Lonnie Randolph
Click for details
AI Summary
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Creates a $3,000 nonrefundable tax credit per qualified new employee for small businesses, capped at $100,000 per business per year, applicable to tax years 2019, 2020, and 2021
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Defines "qualified new employee" as a full-time hire who at the time of hiring was receiving unemployment benefits, is a military veteran with honorable discharge, or was convicted of a felony within the past 12 months
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Requires small businesses to employ more full-time employees in Indiana during the tax year than their average employment during January 1 - June 30, 2018
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Imposes a 50% forfeiture of tax credits if a qualified new employee is terminated, laid off, reclassified to part-time, or their position is eliminated within 18 months of hire
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Allows excess credits to be carried forward up to 3 subsequent tax years, but provides no carryback or refund for unused credits
Legislative Description
Small business job creation tax credit. Provides a nonrefundable tax credit to a small business for employing a qualified new employee. Defines "qualified new employee" as an individual who is receiving unemployment benefits, is a military veteran, or had been convicted of a felony. Provides that the small business must employ a greater number of full-time employees in Indiana in the taxable year than the small business employed in Indiana, on average, during the period beginning January 1, 2018, and ending June 30, 2018. Provides that the qualified new employee must be hired full time. Provides that the credit applies only to taxable years beginning in 2019, 2020, and 2021. Provides that the credit is $3,000 per qualified new employee, not to exceed $100,000 per small business. Provides that the small business may carry any excess credit over to not more than three subsequent taxable years. Provides that the small business forfeits 50% of the amount of the tax credits attributable to the employment of a qualified new employee, if within 18 months after the qualified new employee was initially hired: (1) the qualified new employee is terminated, laid off, or otherwise reclassified to a position that is not a full-time employment position with the small business; or (2) the position created for the qualified new employee is eliminated.
Last Action
First reading: referred to Committee on Tax and Fiscal Policy
1/7/2019