Tax credit for hiring certain individuals.

Authors: Senator Lonnie Randolph, Senator Brandt Hershman


Provides a nonrefundable tax credit to a small business for employing an individual who is receiving unemployment benefits or returning from military service (qualified new employee). 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, in the small business's base employment period (generally January 1, 2013, through June 30, 2013). Provides that the employee must be hired full time. Provides that the credit applies only to taxable years beginning in 2014 through 2016. 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.