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Enrolled House Bill (H)

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DIGEST

Taxes and higher education bonding. (This proposed legislation does the following: (1) Sets forth the text of CC131604 adopted by the senate on March 14, 2018. (2) Reconciles the text of CC131604 with the text of the 2018 technical corrections bill (P.L.86-2018) in SECTIONS 2, 5, and 6. (3) Revises the provisions concerning income under Section 965 of the Internal Revenue Code, based on recent guidance from the Internal Revenue Service. (4) Adds the provisions concerning the waiver of interest and penalties if the general assembly enacts a change in a listed tax for a tax period that increases a Taxes and higher education bonding. (This proposed legislation does the following: (1) Sets forth the text of CC131604 adopted by the senate on March 14, 2018. (2) Reconciles the text of CC131604 with the text of the 2018 technical corrections bill (P.L.86-2018) in SECTIONS 2, 5, and 6. (3) Revises the provisions concerning income under Section 965 of the Internal Revenue Code, based on recent guidance from the Internal Revenue Service. (4) Adds the provisions concerning the waiver of interest and penalties if the general assembly enacts a change in a listed tax for a tax period that increases a taxpayer's tax liability after the due date for that listed tax and tax period.) Provides a sales tax exemption for sales of the following property by a public library (or a charitable organization formed to support a public library): (1) Items in the library's circulated and publicly available collections, including items from the library's holdings. (2) Items that would typically be included in the library's circulated and publicly available collections and that are donated by individuals or organizations to a public library (or to a charitable organization formed to support a public library). Provides that a taxpayer that is entitled to one or more specified economic development tax credits for the 2017 taxable year may elect to carry forward all or any portion of those credits and instead apply the tax credits in the 2018 taxable year. Requires a taxpayer to make an election in order to carry forward the tax credit. Makes changes to the state income tax laws to conform in part to the latest version of the Internal Revenue Code (IRC), to modify the net operating loss carryover period, the earned income tax credit, and the interest expense deduction. Adds a deduction for certain contributions to capital under Section 118 of the IRC. Provides that the department of revenue may waive interest and penalties if the general assembly enacts a change in a listed tax for a tax period that increases a taxpayer's tax liability for that listed tax after the due date for that listed tax and tax period. Specifies that such a waiver shall apply only to the extent of the increase in tax liability and only for a period not exceeding 60 days after the change is enacted. Provides that in 2018, the state income tax credit for contributions to a college choice 529 education savings plan (529 plan) that will be used to pay for qualified K-12 education expenses is equal to the lesser of: (A) $500; or (B) 10% multiplied by the amount of the total contributions that will be used to pay for qualified K-12 education expenses. Provides that the credit for all contributions is subject to the $1,000 overall annual limit in existing law. Provides that in 2019 and thereafter, contributions to a 529 plan that will be used to pay for qualified K-12 education expenses are eligible for the 20% credit (but are subject to the $1,000 overall annual limit in existing law). Provides that qualified K-12 education expenses means expenses that are for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school located in Indiana and are permitted under Section 529 of the Internal Revenue Code. Provides that beginning in 2019 a person making a contribution to or a withdrawal from a 529 plan must designate whether the contribution or withdrawal will be used for higher education or K-12 purposes (qualified purposes include tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school located in Indiana). Provides that the credit does not apply to money that is credited to the 529 plan and then transferred to an ABLE account. Changes the date that the trustees of certain state educational institutions may issue and sell certain bonds authorized in the 2017 budget bill. Makes technical corrections. ... View more