2012 Indiana Code
TITLE 6. TAXATION
ARTICLE 3.5. LOCAL TAXATION
CHAPTER 9. LOCAL OPTION HIRING INCENTIVE

IC 6-3.5-9
Chapter 9. Local Option Hiring Incentive

IC 6-3.5-9-1
Application
Sec. 1. This chapter applies to a city or county that receives a certified distribution of a tax imposed under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-2
"Fiscal body"
Sec. 2. As used in this chapter, "fiscal body" has the meaning set forth in IC 36-1-2-6.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-3
"IEDC"
Sec. 3. As used in this chapter, "IEDC" refers to the Indiana economic development corporation established by IC 5-28-3-1.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-4
"New employee"
Sec. 4. As used in this chapter, "new employee" has the meaning set forth in IC 6-3.1-13-6, except that as applied to a project that is the subject of a hiring incentive agreement under this chapter, the phrase "tax credit agreement" in the definition of "new employee" under IC 6-3.1-13-6 is construed as a hiring incentive agreement under this chapter.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-5
"Person"
Sec. 5. As used in this chapter, "person" means an individual, a sole proprietorship, a partnership, an association, a fiduciary, a corporation, a limited liability company, or any other business entity.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-6
"Qualified employee"
Sec. 6. As used in this chapter, "qualified employee" means a new employee who resides in the county in which a taxpayer's job creation project is located.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-7
"Qualified unit"
Sec. 7. As used in this chapter, "qualified unit" means a city or county described in section 1 of this chapter. As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-8
"Taxpayer"
Sec. 8. As used in this chapter, "taxpayer" means a person that enters an agreement with a qualified unit to receive a hiring incentive.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-9
Local option hiring incentives authorized
Sec. 9. (a) A qualified unit may offer hiring incentives under this chapter to foster job creation in the qualified unit.
(b) The hiring incentive shall be claimed for the calendar years specified in the taxpayer's hiring incentive agreement.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-10
Authority to apply for a hiring incentive
Sec. 10. A person that proposes a project to create new jobs in a qualified unit may apply, as provided in section 11 of this chapter, to the qualified unit to enter into an agreement for a hiring incentive under this chapter.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-11
Qualified units authorized to enter agreements to provide hiring incentives
Sec. 11. This section applies to an application proposing a project to create new jobs in a qualified unit. After receipt of an application, the qualified unit may enter into an agreement with the applicant for a hiring incentive under this chapter if the fiscal body of the qualified unit approves the agreement after finding that all of the following conditions exist:
(1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in the qualified unit.
(2) The applicant's project is economically sound and will benefit the people of the qualified unit by increasing opportunities for employment in the qualified unit and strengthening the economy of Indiana.
(3) Receiving the hiring incentive is a major factor in the applicant's decision to go forward with the project and not receiving the hiring incentive will result in the applicant not creating new jobs in the qualified unit.
(4) The hiring incentive is not prohibited by section 12 of this chapter.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-12 Relocated Indiana jobs ineligible for the hiring incentive
Sec. 12. A person is not entitled to claim a hiring incentive provided by this chapter for any jobs that the person relocates from one (1) site in Indiana to another site in Indiana. Determinations under this section shall be made by the qualified unit providing the hiring incentive.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-13
Qualified unit's discretion to determine amount and duration of hiring incentives
Sec. 13. (a) Subject to subsection (c), the qualified unit shall determine the amount and duration of a hiring incentive awarded under this chapter. The duration of the hiring incentive may not exceed ten (10) calendar years.
(b) The hiring incentive may be stated as a percentage of the aggregate annual local option income taxes withheld and remitted on behalf of the qualified employees employed by the taxpayer and may include a fixed dollar limitation.
(c) The amount of a hiring incentive paid to a taxpayer in a particular calendar year may not exceed the aggregate amount of local option income taxes withheld and remitted during that calendar year on behalf of the taxpayer's qualified employees.
(d) A hiring incentive may be paid to a taxpayer in installments as set forth in the hiring incentive agreement.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-14
Required terms of hiring incentive agreements
Sec. 14. A qualified unit shall enter into an agreement with an applicant that is awarded a hiring incentive under this chapter. The agreement must include all of the following:
(1) A detailed description of the project that is the subject of the agreement.
(2) The duration of the hiring incentive and the first calendar year for which the hiring incentive may be claimed.
(3) The hiring incentive amount that will be allowed for each calendar year.
(4) A requirement that the taxpayer shall maintain operations at the project location for at least two (2) years following the last calendar year in which the applicant claims the hiring incentive.
(5) A statement that a taxpayer is subject to an assessment under section 16 of this chapter for noncompliance with the agreement.
(6) A specific method for determining the number of new employees employed during a calendar year who are performing jobs not previously performed by an employee.
(7) A requirement that the taxpayer shall annually report to the qualified unit, subject to the protections under IC 5-14-3-4(a)(5) and IC 5-14-3-4(a)(6): (A) the number of new employees who are performing jobs not previously performed by an employee;
(B) the new income tax revenue withheld in connection with the new employees; and
(C) any other information the qualified unit needs to perform the qualified unit's duties under this chapter.
(8) A requirement that the qualified unit is authorized to verify with the appropriate state agencies, including the IEDC, the amounts reported under subdivision (7), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
(9) Any other performance conditions that the qualified unit determines are appropriate.
As added by P.L.173-2011, SEC.10. Amended by P.L.6-2012, SEC.55.

IC 6-3.5-9-15
Hiring incentives paid from distributions of county income taxes
Sec. 15. A qualified unit shall pay hiring incentives provided under this chapter from revenues received by the qualified unit under:
(1) IC 6-3.5-1.1-15;
(2) IC 6-3.5-6-19;
(3) IC 6-3.5-7-13.1; or
(4) any combination of the sources listed in subdivisions (1) through (3).
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-16
Effect of noncompliance with hiring incentive agreement
Sec. 16. If the qualified unit determines that a taxpayer who has claimed a hiring incentive under this chapter is not entitled to the hiring incentive because of the taxpayer's noncompliance with the requirements of the hiring incentive agreement or all of the provisions of this chapter, the qualified unit shall, after giving the taxpayer an opportunity to explain the noncompliance, pursue existing remedies under law for an amount that may not exceed the sum of any previously allowed hiring incentives under this chapter, together with interest and penalties required or permitted by law.
As added by P.L.173-2011, SEC.10.

IC 6-3.5-9-17
Reports
Sec. 17. (a) The qualified unit shall submit an annual report to the IEDC before July 1. The report must be in an electronic format prescribed by the IEDC and must contain the following information concerning a program established under this chapter:
(1) The number of taxpayers receiving hiring incentives in that particular year.
(2) The location of each business receiving hiring incentives as

of the date of the report.
(3) A summary of the local incentives provided under this chapter to each taxpayer receiving hiring incentives as of the date of the report.
(4) The number of jobs created and the average salary paid by taxpayers receiving hiring incentives as of the date of the report.
(b) The IEDC shall compile an annual report based on the information received under subsection (a). The IEDC shall submit the annual report to the legislative council before November 1. The report must be in an electronic format under IC 5-14-6 and must contain the information specified in subsection (a)(1) through (a)(4), aggregated or otherwise protected as necessary to maintain the confidentiality of any confidential information submitted upon request by each taxpayer under this chapter.
As added by P.L.173-2011, SEC.10.