Version b
Agreement for tax credit with respect to job retention; conditions
Note: This version of section effective 7-1-2005. See also
preceding version of this section, effective until 7-1-2005.
Sec. 15.5. This section applies to an application proposing to
retain existing jobs in Indiana. After receipt of an application, the
corporation may enter into an agreement with the applicant for a
credit under this chapter if the corporation determines that all the
following conditions exist:
(1) The applicant's project will retain existing jobs performed
by the employees of the applicant in Indiana.
(2) The applicant is engaged in research and development,
manufacturing, or business services, according to the NAICS
Manual of the United States Office of Management and Budget.
(3) The average compensation (including benefits) provided to
the applicant's employees during the applicant's previous fiscal
year exceeds:
(A) for an application submitted before January 1, 2006, the
average compensation paid during that same period to all
employees in the county in which the applicant's business is
located by at least five percent (5%); or
(B) for an application submitted after December 31, 2005,
the amount specified by the calculation associated with one
(1) of the following descriptions that characterizes the
number of businesses in the NAICS industry sector to which
the applicant's business belongs:
(i) If there is more than one (1) business in the same
NAICS industry sector in the county in which the
applicant's business is located, determine the average
compensation paid during that same period to all
employees working in the same NAICS industry sector in
the county in which the applicant's business is located
multiplied by one hundred five percent (105%).
(ii) If the applicant's business is the only business in the
same NAICS industry sector in the county in which the
applicant's business is located but there is more than one
(1) business in the same NAICS industry sector in Indiana,
determine the average compensation paid during that same
period to all employees working in the NAICS industry
sector throughout Indiana multiplied by one hundred five
percent (105%).
(iii) If the applicant's business is the only business in the
same NAICS industry sector in Indiana, determine the
compensation for that same period corresponding to the
federal minimum wage multiplied by two hundred percent
(200%).
(4) The applicant employs at least seventy-five (75) employees
in Indiana.
(5) The applicant has prepared a plan for the use of the credits
under this chapter for:
(A) investment in facility improvements or equipment and
machinery upgrades, repairs, or retrofits; or
(B) other direct business related investments, including but
not limited to training.
(6) Receiving the tax credit is a major factor in the applicant's
decision to go forward with the project, and not receiving the
tax credit will increase the likelihood of the applicant reducing
jobs in Indiana.
(7) Awarding the tax credit will result in an overall positive
fiscal impact to the state, as certified by the budget agency
using the best available data.
(8) The applicant's business and project are economically sound
and will benefit the people of Indiana by increasing or
maintaining opportunities for employment and strengthening
the economy of Indiana.
(9) The communities affected by the potential reduction in jobs
or relocation of jobs to another site outside Indiana have
committed local incentives with respect to the retention of jobs
in an amount determined by the corporation. For purposes of
this subdivision, local incentives include, but are not limited to,
cash grants, tax abatements, infrastructure improvements,
investment in facility rehabilitation, construction, and training
investments.
(10) The credit is not prohibited by section 16 of this chapter.
(11) If the business is located in a community revitalization
enhancement district established under IC 36-7-13 or a certified
technology park established under IC 36-7-32, the legislative
body of the political subdivision establishing the district or park
has adopted an ordinance recommending the granting of a credit
amount that is at least equal to the credit amount provided in the
agreement.
As added by P.L.178-2002, SEC.45. Amended by P.L.4-2005,
SEC.72; P.L.197-2005, SEC.5.
Last modified: May 28, 2006