Effect on tax credits and incentives

Sec. 4. (a) For purposes of the determination of tax credits and other economic incentives: (1) provided by the state or another governmental entity; and (2) based on employment; a covered employee is considered an employee solely of the client. (b) A client is entitled to the benefit of any tax credit, economic incentive, or other benefit arising as the result of the employment of a covered employee of the client. (c) If the grant or amount of an incentive is based on the number of employees a client employs: (1) each client must be treated as employing only the covered employees actually working in the client's business operations; and (2) covered employees working for other clients of the PEO must not be counted. (d) A PEO shall provide, upon request by a client or an agency or a department of the state or of another governmental entity, employment information: (1) reasonably required by an agency or a department of the state or of another governmental entity that is responsible for administration of a tax credit or economic incentive described in this section; and (2) necessary; to support a request, a claim, an application, or another action by a client seeking a tax credit or an economic incentive. As added by P.L.245-2005, SEC.7.