Citations Affected: IC 4-10-22; IC 6-1.1; IC 6-2.5-11-10; IC 6-3;
IC 6-4.1; IC 6-7-2; IC 6-8.1; IC 33-26-6-2; IC 33-26-6-2.5.
Synopsis: Taxes. Provides for the return of a part of the state's
year-end general revenue surplus to Indiana residents in the form of a
refundable adjusted gross income tax credit. Establishes the income tax
reduction reserve and procedures to implement the credit program.
Indicates that the standard deduction and the circuit breaker credit
applies to improvements to structures and improvements on the same
land that a building is located. Permits an enhanced tax abatement for
vacant buildings in a designated downtown area. Permits the fiscal
body for a county, city, or town to grant a deduction of 100% of the
assessed value of personal property or a credit equal to 100% of the
property tax liability that is imposed on personal property. Permits the
department of state revenue to negotiate a collection allowance for the
collection of sales taxes by an out-of-state seller. Increases the personal
deduction allowed against individual adjusted gross income tax. Taxes
interest on bonds issued by another state or a political subdivision in
another state. Prohibits a carryback of an Indiana net operating loss to
a prior taxable year. Decreases the adjusted gross income tax rate
applicable to corporations. Requires the recapture of a credit given for
a contribution to a college choice 529 education savings plan if
withdrawals or distributions exceeding 10% of the amount deposited
or earned in interest in the immediately preceding three years is
withdrawn or distributed. Phases out the inheritance tax beginning July
1, 2013, by giving an increasing credit against the inheritance tax due.
Provides that the inheritance tax does not apply to the transfer of
property interests by a decedent whose death occurs after June 30,
2023. Phases out payments of the inheritance tax replacement amount
Effective: Upon passage; January 1, 2011 (retroactive); March 1, 2011
(retroactive); July 1, 2011.
January 20, 2011, read first time and referred to Committee on Ways and Means.
to counties over a period between 2013 and 2023. Provides that the
estate tax and generation skipping transfer tax do not apply after June
30, 2023. Makes technical corrections. Extends the time in which a
person must file an amended Indiana adjusted gross income tax return
to reflect modifications made in a federal income tax return. Prohibits
the department of state revenue from taking an action to collect a
delinquent tax until the later of the time to file a tax appeal has expired
or a final decision is made in a tax appeal. Provides that the tobacco
products tax on moist snuff is based on the weight of the moist snuff
and calculated at the rate of $0.50 per ounce. Requires a study of ways
to reduce fraud and abuse of the Indiana earned income tax credit.
Makes an appropriation.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
state fiscal year that is allocated by the budget agency to a
particular state fiscal year in a list of appropriations prepared
under IC 4-12-1-12.
Sec. 4. As used in this chapter, "general revenue fund" refers to
the following:
(1) Counter-cyclical revenue and economic stabilization fund
(IC 4-10-18-2).
(2) State general fund, including the Medicaid contingency
and reserve account of the state general fund (IC 4-12-1-15.5).
(3) State tuition reserve fund (IC 4-12-1-15.7).
Sec. 5. As used in this chapter, "resident" refers to an individual
who resides in Indiana on January 1 of the calendar year in which
the individual's taxable year commences.
Sec. 6. As used in this chapter, "state fiscal year" means a
period beginning July 1 in one (1) calendar year and ending on
June 30 in the immediately succeeding calendar year.
Sec. 7. As used in this chapter, "taxable year" has the meaning
set forth in IC 6-3-1-16.
Sec. 8. (a) An income tax reduction reserve fund is established.
The fund is established to:
(1) replace revenue lost from granting credits under
IC 6-3-3-13; and
(2) pay or reimburse other funds for refunds paid under
IC 6-3-3-13.
(b) The budget agency shall administer the fund.
(c) The fund consists of money transferred to the fund under
section 9 of this chapter.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) The money in the fund at the end of a state fiscal year does
not revert to the general revenue fund but remains in the fund to
be used exclusively for the purposes of the fund.
Sec. 9. Not later than thirty-one (31) days after the end of a state
fiscal year, the auditor of state, after reviewing the
recommendation of the budget agency, shall transfer an amount
from the general revenue fund to the fund. The total amount
transferred under this section must equal the amount by which the
year-end general revenue fund balance for the immediately
preceding state fiscal year exceeds ten percent (10%) of the general
revenue fund appropriations for the current state fiscal year.
Sec. 10. In each state fiscal year, the budget agency shall
calculate the tax reduction amount that will apply under
IC 6-3-3-13 to taxable years ending in that state fiscal year. The tax
reduction amount for a state fiscal year must equal the amount
determined under STEP THREE of the following formula:
STEP ONE: Determine the amount transferred in the state
fiscal year to the fund under section 9 of this chapter.
STEP TWO: Determine the sum of the following:
(A) The number of individual tax returns that are likely to
be filed under IC 6-3 for a taxable year that ends in the
state fiscal year described in STEP ONE on which the
individual filing the return is an Indiana resident.
(B) The number of joint tax returns that are likely to be
filed under IC 6-3 for a taxable year that ends in the state
fiscal year described in STEP ONE on which only an
individual filing the return or the individual's spouse is a
resident of Indiana.
(C) The product of:
(i) the number of joint tax returns that are likely to be
filed under IC 6-3 for a taxable year that ends in the
state fiscal year described in STEP ONE on which both
an individual filing the return and the individual's
spouse are residents of Indiana; multiplied by
(ii) two (2).
STEP THREE: Determine the result of:
(A) the STEP ONE amount; divided by
(B) the STEP TWO amount.
The budget agency shall certify the tax reduction amount to the
department of state revenue.
Sec. 11. The department of state revenue shall report to the
auditor of state and the budget agency the total amount of credits
granted under IC 6-3-3-13 on returns processed by the department
of state revenue. The information shall be reported in the manner
and on the schedule specified by the budget agency.
Sec. 12. The auditor of state shall transfer amounts equal to the
credits granted under IC 6-3-3-13 from the fund to the general
revenue fund on the schedule designated by the budget agency.
Sec. 13. There is continuously appropriated a sufficient amount
from the fund and the general revenue fund to make the transfers
required by this chapter.
definitions apply throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract, recorded in the
county recorder's office, that provides that the individual is
to pay the property taxes on the residence;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
that is owned by a trust if the individual is an individual
described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not
exceeding one (1) acre, that immediately surrounds that
dwelling.
Except as provided in subsection (k), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. The
deduction provided by this section applies to property taxes first due
and payable for an assessment date only if an individual has an interest
in the homestead described in subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the individual or entity qualifying for the
deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) forty-five thousand dollars ($45,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the homestead is
located. The statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.5.
(j) The department of local government finance shall work with
county auditors to develop procedures to determine whether a property
owner that is claiming a standard deduction or homestead credit is not
eligible for the standard deduction or homestead credit because the
property owner's principal place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in
subsection (a)(2)(B), the county auditor shall reinstate the deduction if
the taxpayer provides proof that the property is eligible for the
deduction in accordance with subsection (k) and that the individual
residing on the property is not claiming the deduction for any other
property.
(m) For assessments dates after 2009, The term "homestead"
includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted
by the department of local government finance; (other than a
swimming pool);
that is assessed as part of the real property, and attached to not
exceeding one (1) acre, that immediately surrounds the dwelling.
year in which an ordinance adopted under IC 6-1.1-46 is in effect
for the same personal property.
(b) As used in this section, "assessed value of personal property"
means the assessed value determined after the application of any
deductions or adjustments that apply by statute or rule to the
assessment of personal property, other than the deduction allowed
under subsection (d).
(c) As used in this section, "designating body" refers to the fiscal
body (as defined in IC 36-1-2-6) for a county, city, or town.
(d) After conducting a public hearing on the proposed
ordinance, a designating body may adopt an ordinance to grant a
deduction against the assessed value of personal property located
in:
(1) the county (if the ordinance is adopted by the county
designating body); and
(2) the city or town (if the ordinance is adopted by a city or
town designating body).
The deduction is equal to one hundred percent (100%) of the
assessed value of personal property for the appropriate year of
assessment.
(e) After a public hearing on the proposed ordinance, a
designating body may rescind an ordinance adopted under
subsection (d). A designating body may rescind an ordinance under
this section in the same year an ordinance granting a credit for
personal property is adopted under IC 6-1.1-46.
(f) Before adopting an ordinance under this section, a
designating body shall conduct a public hearing on the proposed
ordinance. The designating body shall:
(1) publish notice of the public hearing in accordance with
IC 5-3-1; and
(2) not later than ten (10) days before the public hearing, file
the notice with each taxing unit in the geographic area served
by the designating body.
(g) An ordinance adopted under this section in a particular year
applies:
(1) if adopted before October 1 in a year, to each subsequent
assessment year; and
(2) if adopted after September 30 in a year, to the assessment
year that follows the year of adoption by two (2) and each
subsequent assessment year.
(h) The designating body shall provide a certified copy of an
adopted ordinance to the department of local government finance
and the county auditor.
(i) A taxpayer is not required to file an application to qualify for
the deduction permitted under this section.
(j) The department of local government finance shall
incorporate the deduction established in this section in the personal
property return form to be used each year for filing under this
article to permit the taxpayer to enter the deduction on the form.
If a taxpayer fails to enter the deduction on the form, the township
assessor, the county assessor if there is no township assessor for the
township, or the department of local government finance, if the
department of local government finance assesses the personal
property, shall:
(1) determine the amount of the deduction; and
(2) within the period established in IC 6-1.1-16-1, issue a
notice of assessment to the taxpayer that reflects the
application of the deduction to the personal property.
(k) The deduction established in this section must be applied to
any personal property assessment made by:
(1) an assessing official;
(2) a county property tax board of appeals; or
(3) the department of local government finance.
research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
(C) rehabilitation; or
(D) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(4) Failure to make the required findings of fact before
designating an area as an economic revitalization area or
authorizing a deduction for new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment under
section 2, 3, 4.5, or 4.8 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5, 5.3, or 5.4 of this chapter.
(6) Failure to designate an area as a designated downtown
area under section 16 of this chapter before enhancing a
deduction under section 16 of this chapter or failure to include
a copy of the an ordinance adopted under section 16(f) of this
chapter with a resolution granting a deduction.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions specified
in the resolution. Before adopting a waiver under this subsection, the
designating body shall conduct a public hearing on the waiver.
fiscal body (as defined in IC 36-1-2-6) for a county, city, or town.
Sec. 4. As used in this chapter, "ordinance" refers to an
ordinance under this chapter.
Sec. 5. As used in this chapter, "property tax liability" means
the ad valorem property tax imposed on personal property under
this article determined after application of all credits and
deductions under this article or IC 6-3.5, except the credit under
this chapter. The term does not include any interest or penalty
imposed under this article.
Sec. 6. After conducting a public hearing under section 10 of this
chapter, a designating body may adopt an ordinance to establish a
credit against the property tax liability that a taxpayer would
otherwise be obligated to pay for personal property.
Sec. 7. An ordinance adopted by the fiscal body of a county
applies to all property tax liability imposed on personal property
located in the county, including personal property located in a city
or town.
Sec. 8. An ordinance adopted by the fiscal body of a city or town
applies to all property tax liability imposed on personal property
located in the city or town.
Sec. 9. After conducting a public hearing under section 10 of this
chapter, a designating body may adopt an ordinance to rescind an
ordinance adopted under section 6 of this chapter.
Sec. 10. Before adopting an ordinance, a designating body shall
conduct a public hearing on the proposed ordinance. The
designating body shall:
(1) publish notice of the public hearing in accordance with
IC 5-3-1; and
(2) not later than ten (10) days before the public hearing, file
the notice with each taxing unit in the geographic area served
by the designating body.
Sec. 11. An ordinance adopted before October 1 in a year
initially applies to property taxes first due and payable in the
immediately following year.
Sec. 12. An ordinance adopted after September 30 in a year
initially applies to property taxes first due and payable in the year
that follows the year of adoption by two (2).
Sec. 13. A designating body shall certify an ordinance adopted
under this chapter to the county auditor and the department of
local government finance.
Sec. 14. A taxpayer is not required to file an application for the
credit under this chapter. The county auditor shall:
properly and the extent to which the seller's transactions are being
processed by the certified service provider.
(b) A person that provides a certified automated system is
responsible for the proper functioning of that system and is liable to the
state for underpayments of tax attributable to errors in the functioning
of the certified automated system. A seller that uses a certified
automated system remains responsible and is liable to the state for
reporting and remitting tax.
(c) A seller that has a proprietary system for determining the amount
of tax due on transactions and has signed an agreement establishing a
performance standard for that system is liable for the failure of the
system to meet the performance standard.
(d) A certified service provider or a seller using a certified
automated system that obtains a certification or taxability matrix from
the department is not liable for sales or use tax collection errors that
result from reliance on the department's certification or taxability
matrix. If the department determines that an item or transaction is
incorrectly classified as to the taxability of the item or transaction, the
department shall notify the certified service provider or the seller using
a certified automated system of the incorrect classification. The
certified service provider or the seller using a certified automated
system must revise the incorrect classification within ten (10) days
after receiving notice of the determination from the department. If the
classification error is not corrected within ten (10) days after receiving
the department's notice, the certified service provider or the seller using
a certified automated system is liable for failure to collect the correct
amount of sales or use tax due and owing.
(e) If at least thirty (30) days are not provided between the
enactment of a statute changing the rate set forth in IC 6-2.5-2-2 and
the effective date of the rate change, the department shall relieve the
seller of liability for failing to collect tax at the new rate if:
(1) the seller collected the tax at the immediately preceding
effective rate; and
(2) the seller's failure to collect at the current rate does not extend
beyond thirty (30) days after the effective date of the rate change.
A seller is not eligible for the relief provided for in this subsection if
the seller fraudulently fails to collect at the current rate or solicits
purchases based on the immediately preceding effective rate.
(f) The department shall allow any monetary allowances that are
provided by the member states to sellers or certified service providers
in exchange for collecting the sales and use taxes as provided in article
VI of the agreement.
(g) After July 1, 2011, the department may negotiate with a
certified service provider or seller to provide a monetary allowance
that is greater than the allowance provided in IC 6-2.5-6-10 for the
collection of gross retail tax or use tax on sales, leases, and rentals
of goods or services made in a member state or a jurisdiction that
is not a member state. A monetary allowance permitted under this
subsection may not exceed ten percent (10%) of the adjusted gross
retail tax or use tax collected from a sale, lease, or rental. The
department shall adopt rules under IC 4-22-2 to establish
standards for granting monetary allowances under this subsection.
The rules must provide that the permitted monetary allowance is
a negotiated rate based on:
(1) the collection costs of the certified service provider or
seller;
(2) the volume and value to the state of sales, leases, or rentals
processed by a certified service provider or seller;
(3) the administrative and legal costs that the state would
otherwise incur to collect gross retail taxes or use taxes for
these sales, leases, or rentals absent a negotiated monetary
allowance; and
(4) the likelihood of collecting gross retail taxes or use taxes
on these sales, leases, or rentals absent a negotiated monetary
allowance.
and before January 1, 2014, one thousand two hundred
sixty-five dollars ($1,265), or in the case of a joint return
filed by a husband and wife, subtract for each spouse one
thousand two hundred sixty-five dollars ($1,265); and
(C) for a taxable year beginning after December 31, 2013,
the amount determined under clause (B) multiplied by the
greater of one (1) or a fraction, rounded to the nearest one
thousandth (0.001). The numerator of the fraction is the
arithmetical mean of the United States Department of
Labor All Urban Consumers Price Index (all items) or its
successor, for the months of July, August, and September
in the calendar year immediately preceding January 1 in
the calendar year in which the taxpayer's taxable year
begins. The denominator of the fraction is the arithmetical
mean of the United States Department of Labor All Urban
Consumers Price Index (all items) or its successor, for the
months of July 2013, August 2013, and September 2013.
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) for taxable years beginning after December 31, 2004, one
thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), (5), and (6) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(14) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the
taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) for a taxable year:
(i) including any part of 2004, the amount determined under
subsection (f); and
(ii) beginning after December 31, 2004, two thousand five
hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(18) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(31) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(32) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(33) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(34) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(35) Add an amount equal to:
(A) the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest on
state or local bonds (as defined in Section 103 of the
Internal Revenue Code), other than interest on the bonds
of an Indiana state or local entity that is exempted from
taxation under any other law, including the bonds of a
state educational institution; minus
(B) directly related expenses that the taxpayer did not
deduct in computing federal adjusted gross income (as
defined in Section 62 of the Internal Revenue Code)
because of Section 265 of the Internal Revenue Code.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20) for
the taxable year that reduced the corporation's taxable income (as
defined in Section 63 of the Internal Revenue Code) for federal
income tax purposes.
(10) Add an amount equal to any deduction for dividends paid (as
defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as defined
in section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(12) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(13) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(14) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(17) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(18) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(19) Add an amount equal to:
(A) the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest on
state or local bonds (as defined in Section 103 of the
Internal Revenue Code), other than interest on the bonds
of an Indiana state or local entity that is exempted from
taxation under any other law, including the bonds of a
state educational institution; minus
(B) directly related expenses that the taxpayer did not
deduct in computing federal adjusted gross income (as
defined in Section 62 of the Internal Revenue Code)
because of Section 265 of the Internal Revenue Code.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(18) Add an amount equal to:
(A) the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest on
state or local bonds (as defined in Section 103 of the
Internal Revenue Code), other than interest on the bonds
of an Indiana state or local entity that is exempted from
taxation under any other law, including the bonds of a
state educational institution; minus
(B) directly related expenses that the taxpayer did not
deduct in computing federal adjusted gross income (as
defined in Section 62 of the Internal Revenue Code)
because of Section 265 of the Internal Revenue Code.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under
the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(11) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(18) Add an amount equal to:
(A) the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest on
state or local bonds (as defined in Section 103 of the
Internal Revenue Code), other than interest on the bonds
of an Indiana state or local entity that is exempted from
taxation under any other law, including the bonds of a
state educational institution; minus
(B) directly related expenses that the taxpayer did not
deduct in computing federal adjusted gross income (as
defined in Section 62 of the Internal Revenue Code)
because of Section 265 of the Internal Revenue Code.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(7) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the taxpayer's taxable income under the
Internal Revenue Code.
(8) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(9) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(10) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
five-tenths percent (8.5%);
(2) for a taxable year beginning after June 30, 2013, and
before July 1, 2014, seven and nine-tenths percent (7.9%);
(3) for a taxable year beginning after June 30, 2014, and
before July 1, 2015, seven and three-tenths percent (7.3%);
(4) for a taxable year beginning after June 30, 2015, and
before July 1, 2016, six and seven-tenths percent (6.7%);
(5) for a taxable year beginning after June 30, 2016, and
before July 1, 2017, six and two-tenths percent (6.2%); and
(6) for a taxable year beginning after June 30, 2017, five and
five-tenths percent (5.5%);
of adjusted gross income is imposed on that part of the adjusted gross
income derived from sources within Indiana of every corporation.
of the carryover years provided by subsection (f).
(h) This subsection applies to an Indiana net operating loss
incurred for a taxable year that begins after December 31, 2011. A
taxpayer may not carryback an Indiana net operating loss. The
entire amount of the Indiana net operating loss for any taxable
year shall be carried forward to the earliest of the taxable years to
which (as determined under subsection (f)) the loss may be carried.
The amount of the Indiana net operating loss remaining after the
deduction is taken under this section in a taxable year may be
carried over as provided in subsection (f). The amount of the
Indiana net operating loss carried over from year to year shall be
reduced to the extent that the Indiana net operating loss carryover
is used by the taxpayer to obtain a deduction in a taxable year until
the occurrence of the earlier of the following:
(1) The entire amount of the Indiana net operating loss has
been used as a deduction.
(2) The Indiana net operating loss has been carried over to
each of the carryover years provided by subsection (f).
taxpayer's federal taxable income (as defined in Section 63 of the
Internal Revenue Code), if the taxpayer is a corporation, or when
the modifications required by IC 6-3-1-3.5 exceed the taxpayer's
federal adjusted gross income (as defined by Section 62 of the
Internal Revenue Code), if the taxpayer is a nonresident person,
for the taxable year in which the Indiana net operating loss is
determined.
(e) Subject to the limitations contained in subsection subsections
(g) and (k), an Indiana net operating loss carryback or carryover shall
be available as a deduction from the taxpayer's adjusted gross income
derived from sources within Indiana (as defined in section 2 of this
chapter) in the carryback or carryover year provided in subsection (f).
The amount of the deduction taken in a taxable year may not
exceed the taxpayer's unused Indiana net operating losses carried
back or carried over to that year.
(f) Subject to the limitations contained in subsections (g) and (k),
carrybacks and carryovers shall be determined under this subsection as
follows:
(1) An Indiana net operating loss shall be an Indiana net operating
loss carryback to each of the carryback years preceding the
taxable year of the loss.
(2) An Indiana net operating loss shall be an Indiana net operating
loss carryover to each of the carryover years following the taxable
year of the loss.
(3) Carryback years shall be determined by reference to the
number of years allowed for carrying back a net operating loss
under Section 172(b) of the Internal Revenue Code. However,
with respect to the carryback period for a net operating loss:
(A) for which a taxpayer made an election to use five (5) years
instead of two (2) years under Section 172(b)(1)(H) of the
Internal Revenue Code, two (2) years shall be used instead of
five (5) years; or
(B) that is a qualified disaster loss for which the taxpayer
elected to have the net operating loss carryback period with
respect to the loss year determined without regard to Section
172(b)(1)(J) of the Internal Revenue Code, five (5) years shall
be used.
(4) Carryover years shall be determined by reference to the
number of years allowed for carrying over net operating losses
under Section 172(b) of the Internal Revenue Code.
(5) A taxpayer who makes an election under Section 172(b)(3) of
the Internal Revenue Code to relinquish the carryback period with
respect to a net operating loss for any taxable year shall be
considered to have also relinquished the carryback of the Indiana
net operating loss for purposes of this section.
(g) This subsection applies to an Indiana net operating loss
incurred for a taxable year that begins before January 1, 2012. The
entire amount of the Indiana net operating loss for any taxable year
shall be carried to the earliest of the taxable years to which (as
determined under subsection (f)) the loss may be carried. The amount
of the Indiana net operating loss remaining after the deduction is taken
under this section in a taxable year may be carried back or carried over
as provided in subsection (f). The amount of the Indiana net operating
loss carried back or carried over from year to year shall be reduced to
the extent that the Indiana net operating loss carryback or carryover is
used by the taxpayer to obtain a deduction in a taxable year until the
occurrence of the earlier of the following:
(1) The entire amount of the Indiana net operating loss has been
used as a deduction.
(2) The Indiana net operating loss has been carried over to each
of the carryover years provided by subsection (f).
(h) An Indiana net operating loss deduction determined under this
section shall be allowed notwithstanding the fact that in the year the
taxpayer incurred the net operating loss the taxpayer was not subject to
the tax imposed under section 1 of this chapter because the taxpayer
was:
(1) a life insurance company (as defined in Section 816(a) of the
Internal Revenue Code); or
(2) an insurance company subject to tax under Section 831 of the
Internal Revenue Code.
(i) Subject to subsections (g) and (k), in the case of a life insurance
company that claims an operations loss deduction under Section 810
of the Internal Revenue Code, this section shall be applied by:
(1) substituting the corresponding provisions of Section 810 of the
Internal Revenue Code in place of references to Section 172 of
the Internal Revenue Code; and
(2) substituting life insurance company taxable income (as
defined in Section 801 the Internal Revenue Code) in place of
references to taxable income (as defined in Section 63 of the
Internal Revenue Code).
(j) This subsection applies to an Indiana net operating loss
incurred for a taxable year that begins before January 1, 2012. For
purposes of an amended return filed to carry back an Indiana net
operating loss:
other forms of consideration earned by the taxpayer that result in
a transfer of money to the account.
(2) Money transferred from any other qualified tuition program
under Section 529 of the Internal Revenue Code or from any other
similar plan.
(f) As used in this section, "nonqualified withdrawal" means a
withdrawal or distribution from a college choice 529 education savings
plan that is not a qualified withdrawal.
(g) As used in this section, "qualified higher education expenses"
has the meaning set forth in IC 21-9-2-19.5.
(h) As used in this section, "qualified withdrawal" means a
withdrawal or distribution from a college choice 529 education savings
plan that is made:
(1) to pay for qualified higher education expenses, excluding any
withdrawals or distributions used to pay for qualified higher
education expenses if:
(A) the withdrawals or distributions are made from an account
of a college choice 529 education savings plan that is
terminated:
(i) before January 1, 2011, within twelve (12) months after
the account is opened; and
(ii) after December 31, 2010, within thirty-six (36)
months after the account is opened; or
(B) withdrawals or distributions are made after December
31, 2010, from an account of a college choice 529 education
savings plan within thirty-six (36) months after making the
last contribution to the account, to the extent that the
withdrawals or distributions are less than or equal to the
amount of the contributions made to and interest earned
on the contributions made to the account within thirty-six
(36) months of the withdrawal or distribution;
(2) as a result of the death or disability of an account beneficiary;
(3) because an account beneficiary received a scholarship that
paid for all or part of the qualified higher education expenses of
the account beneficiary, to the extent that the withdrawal or
distribution does not exceed the amount of the scholarship; or
(4) by a college choice 529 education savings plan as the result of
a transfer of funds by a college choice 529 education savings plan
from one (1) third party custodian to another. If this subdivision
applies, a thirty-six (36) month period under subdivision
(1)(A) or (1)(B) beginning in a predecessor plan continues to
run in the successor plan.
by the account owner on the account owner's annual state income tax
return for any taxable year in which a nonqualified withdrawal is made.
(p) A nonresident account owner who is not required to file an
annual income tax return for a taxable year in which a nonqualified
withdrawal is made shall make any required repayment on the form
required under IC 6-3-4-1(2). If the nonresident account owner does
not make the required repayment, the department shall issue a demand
notice in accordance with IC 6-8.1-5-1.
(q) The executive director of the Indiana education savings authority
shall submit or cause to be submitted to the department a copy of all
information returns or statements issued to account owners, account
beneficiaries, and other taxpayers for each taxable year with respect to:
(1) nonqualified withdrawals made from accounts of a college
choice 529 education savings plan for the taxable year; or
(2) account closings for the taxable year.
[EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 6. (a) Any
taxpayer, upon request by the department, shall furnish to the
department a true and correct copy of any tax return which he has filed
with the United States Internal Revenue Service which copy shall be
certified to by the taxpayer under penalties of perjury.
(b) Each taxpayer shall notify the department of any modification
of:
(1) a federal income tax return filed by the taxpayer after January
1, 1978; or
(2) the taxpayer's federal income tax liability for a taxable year
which begins after December 31, 1977.
The taxpayer shall file the notice, on the form prescribed by the
department, within one hundred twenty (120) days after the
modification is made, if the modification was made before January
1, 2011, and one hundred and eighty (180) days after the
modification is made, if the modification is made after December
31, 2010.
(c) If the federal modification results in a change in the taxpayer's
federal or Indiana adjusted gross income, the taxpayer shall file an
Indiana amended return within one hundred twenty (120) days after the
modification is made, if the modification was made before January
1, 2011, and one hundred and eighty (180) days after the
modification is made, if the modification is made after December
31, 2010.
to the estate of an individual who dies after June 30, 2023.
beginning after June 30, 2014, and ending before July 1,
2015.
(C) Seventy-three percent (73%) for a state fiscal year
beginning after June 30, 2015, and ending before July 1,
2016.
(D) Sixty-four percent (64%) for a state fiscal year
beginning after June 30, 2016, and ending before July 1,
2017.
(E) Fifty-five percent (55%) for a state fiscal year
beginning after June 30, 2017, and ending before July 1,
2018.
(F) Forty-five percent (45%) for a state fiscal year
beginning after June 30, 2018, and ending before July 1,
2019.
(G) Thirty-six percent (36%) for a state fiscal year
beginning after June 30, 2019, and ending before July 1,
2020.
(H) Twenty-seven percent (27%) for a state fiscal year
beginning after June 30, 2020, and ending before July 1,
2021.
(I) Eighteen percent (18%) for a state fiscal year beginning
after June 30, 2021, and ending before July 1, 2022.
(J) Nine percent (9%) for a state fiscal year beginning after
June 30, 2022, and ending before July 1, 2023.
(e) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2023.
finely cut, ground, or powdered tobacco that is not intended to be:
(1) smoked; or
(2) placed in the nasal cavity.
moist snuff; and
(H) for moist snuff, the weight of the moist snuff; and
(2) pay the tax for which it is liable under this chapter for the
preceding month minus the amount specified in section 13 of this
chapter.
continue the hearing until a later date if the taxpayer presents
additional information at the hearing or the taxpayer requests an
opportunity to present additional information after the hearing.
(g) A person that disagrees with a decision in a letter of findings
may request a rehearing not more than thirty (30) days after the date on
which the letter of findings is issued by the department. The
department shall consider the request and may grant the rehearing if the
department reasonably believes that a rehearing would be in the best
interests of the taxpayer and the state.
(h) If a person disagrees with a decision in a letter of findings, the
person may appeal the decision to the tax court. However, the tax court
does not have jurisdiction to hear an appeal that is filed more than sixty
(60) days after the date on which:
(1) the letter of findings is issued by the department, if the person
does not make a timely request for a rehearing under subsection
(g) on the letter of findings; or
(2) the department issues a denial of the person's timely request
for a rehearing under subsection (g) on the letter of findings.
(i) The tax court shall hear an appeal under subsection (h) de novo
and without a jury. The tax court may do the following:
(1) Uphold or deny any part of the assessment that is appealed.
(2) Assess the court costs in a manner that the court believes to be
equitable.
(3) Enjoin the collection of a listed tax under IC 33-26-6-2.
(3) Take any other action permitted by law.
(j) The department shall demand payment, as provided in
IC 6-8.1-8-2(a), of any part of the proposed tax assessment, interest,
and penalties that it finds owing because:
(1) the person failed to properly respond within the forty-five (45)
day period;
(2) the person requested a hearing but failed to appear at that
hearing; or
(3) after consideration of the evidence presented in the protest or
hearing, the department finds that the person still owes tax.
(k) The department shall make the demand for payment in the
manner provided in IC 6-8.1-8-2.
(l) Subsection (b) does not apply to a motor carrier fuel tax return.
tax, if a person files a tax return without including full payment of the
tax or if the department, after ruling on a protest, finds that a person
owes the tax before the department issues a tax warrant. The demand
notice must state the following:
(1) That the person has ten (10) days from the date the department
mails the notice to either pay the amount demanded or show
reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of
a tax warrant.
(3) The earliest date on which a tax warrant may be filed and
recorded.
(4) The statutory authority for the department to levy against a
person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the amount
of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs,
and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten
percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the demand
notice was mailed to the taxpayer. The department may also send the
warrant to the sheriff of any county in which the person owns property
and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was
mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues
the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
shall disburse the money collected in the manner provided in section
3(c) of this chapter. If a judgment has been partially or fully satisfied
by a person's surety, the surety becomes subrogated to the department's
rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected;
or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for
the part of the judgment not remitted to the department.