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House Bill 1545


House Bill 1545

ARCHIVE (2013)

Latest Information

 

DIGEST OF HB 1545 (Updated April 27, 2013 12:42 am - DI 113)


Various tax matters. Amends the law regarding economic revitalization areas to: (1) allow a designating body to establish an abatement schedule in all cases (current law allows designating bodies to establish an alternative abatement schedule); (2) provide that an abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits; (3) repeal a statute authorizing enhanced abatements; and (4) remove references to deadline dates that have already passed. Defines the term "common areas" for purposes of the circuit breaker credit law. Provides that for purposes of the circuit breaker credit, the land that is a common area shared by dwelling units of a building that includes two or more dwelling units is considered "residential property". (Current law limits the land eligible to be classified as "residential property" to only the area of the building footprint.) Specifies that when a taxpayer is entitled to interest, the interest shall be computed using the rate in effect for each particular year covered by a refund or credit. Specifies that when a taxpayer is required to pay interest, the interest shall be computed using the rate in effect for each particular year in which the interest accrued. Removes the requirements that aircraft be registered out of the United States and be of a certain size for the sales and use tax exemption regarding tangible personal property used for the repair, maintenance, refurbishment, remodeling, or remanufacturing of an aircraft or an avionics system of an aircraft. Provides a sales tax exemption for fuel used in powering an aircraft. Imposes an excise tax on the sale of aviation fuel. Expands the sales tax exemption for research and development equipment to include any tangible personal property used for research and development, regardless of whether the person acquiring the property is the ultimate manufacturer or seller of the product that is the subject of the research and development. Adds logistics investments as a specific type of qualified investment under the Hoosier business investment tax credit. Specifies expenditures that qualify as a logistics investment. Requires the Indiana economic development corporation to find that an applicant's logistics investment project will enhance the logistics industry by creating new jobs, preserving existing jobs that otherwise would be lost, increasing wages in Indiana, or improving the overall Indiana economy in order to approve the applicant's project for a tax credit. Makes conforming changes to the credit application and agreement provisions. Provides that the percentage credit maximum is 25% (instead of 10%) if a qualified investment is a logistics investment. Provides that for logistics investments, the qualified investments used to determine the credit are based on growth in qualified investments by the taxpayer using 105% of the investments made by the taxpayer during the immediately preceding two years. Adds a $50,000,000 state fiscal year ceiling for tax credits that are not based on logistics investments. Provides a $10,000,000 state fiscal year ceiling for tax credits that are based on logistics investments. Requires the department of state revenue to annually report to the budget committee on the use of the tax credit for logistics investments. Makes numerous changes to the administration of the headquarters relocation tax credit, and the venture capital investment tax credit. Repeals the military base recovery tax credit, the military base investment cost credit, the capital investment tax credit, and the coal combustion product tax credit. Repeals the following tax incentives concerning airport development zones: (1) Qualified employee deductions. (2) Credits for qualified increased employment expenditures. (3) Loan interest credits. (4) Neighborhood assistance credits. (5) Investment cost credits. Removes two unused definitions. Adds, after December 31, 2014, the funding of public education for kindergarten through grade 12 as a charitable purpose to which an individual may choose to give all or part of the individual's income tax refund. Specifies that the authority of political subdivisions to transfer any unobligated cash balances to the rainy day fund does not authorize transfers from a debt service fund. Forgives property taxes, penalties, or interest for various properties owned by nonprofit organizations.
Current Status:
 Law Enacted
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