Introduced House Bill (H)

Authored by

DIGEST

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 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 2016. 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, 2016, the amount of credit to which a taxpayer is entitled to 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. ... View more