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

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(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.