Bill Text: IN HB1483 | 2011 | Regular Session | Amended
Bill Title: Taxation.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-03-29 - First reading: referred to Committee on Tax and Fiscal Policy [HB1483 Detail]
Download: Indiana-2011-HB1483-Amended.html
Citations Affected: IC 2-7; IC 4-30; IC 4-31; IC 6-2.5; IC 6-3;
IC 6-3.1; IC 6-4.1; IC 6-5.5; IC 7.1-3; IC 13-14; IC 16-21; IC 16-25;
IC 16-27; IC 16-28; IC 16-41; IC 20-28; IC 25-1; IC 28-1; IC 28-7;
IC 28-8; noncode.
January 20, 2011, read first time and referred to Committee on Ways and Means.
February 15, 2011, amended, reported _ Do Pass.
February 17, 2011, read second time, amended, ordered engrossed.
Digest Continued
Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act), are not included in the calculation of the Indiana earned income tax credit. Excludes changes made to the Internal Revenue Code under the Tax Relief Act and the Small Business Jobs Act of 2010 which affect the calculation of adjusted gross income. Provides that certain amendments made to the Internal Revenue Code in 2010, are excluded from Indiana's definition of the Internal Revenue Code. Makes changes to the net operation loss deduction provisions for individuals and corporations. Provides that a corporation that merges with another corporation has the same due date for filing its final annual income tax return as the corporation with which it merged. Eliminates the income tax withholding provision that allows a taxpayer to receive an advanced earned income tax credit. Establishes requirements for the valuation of property subject to the inheritance tax.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) Any individual convicted of a felony for violating any law while the individual was an officer or employee of any agency of state government or a unit of local government.
(2) Any person convicted of a felony relating to lobbying.
(3) Any person convicted of a felony and who:
(A) is in prison;
(B) is on probation; or
(C) has been in prison or on probation within the immediate past one (1) year.
(4) Any person whose:
(A) statement or report required to be filed under this article was found to be materially incorrect as a result of a
determination under IC 2-7-6-5; and
(B) who has not filed a corrected statement or report for that
year when requested to do so by the commission.
(5) Any person who has failed to pay a civil penalty assessed
under IC 2-7-6-5.
(6) Any person who is on the most recent tax warrant list supplied
to the commission by the department of state revenue until:
(A) the person provides a statement to the commission
indicating that the person's delinquent tax liability tax
warrant has been satisfied; or
(B) the commission receives a notice from the commissioner
of the department of state revenue under IC 6-8.1-8-2(k).
(1) owes an outstanding debt to a state agency;
(2) is on the department of state revenue's most recent tax warrant list; or
(3) owes child support collected and paid to a recipient through a court.
(b) Before the payment of a prize of more than five hundred ninety-nine dollars ($599) to a claimant identified under subsection (a), the commission shall deduct the amount of the obligation from the prize money and transmit the deducted amount to the auditor of state. The commission shall pay the balance of the prize money to the prize winner after deduction of the obligation. If a prize winner owes multiple obligations subject to offset under this section and the prize is insufficient to cover all obligations, the amount of the prize shall be applied as follows:
(1) First, to the child support obligations owed by the prize winner that are collected and paid to a recipient through a court.
(2) Second, to judgments owed by the prize winner.
(3) Third, to tax liens owed by the prize winner.
(4) Fourth, to unsecured debts owed by the prize winner.
Within each of the categories described in subdivisions (1) through (4), the amount and priority of the prize shall be applied in the manner that the auditor of state determines to be appropriate. The commission shall
reimburse the auditor of state pursuant to an agreement under
IC 4-30-15-5 for the expenses incurred by the auditor of state in
carrying out the duties required by this section.
(c) As used in this section, "debt" means an obligation that is
evidenced by an assessment or lien issued by a state agency, a
judgment, or a final order of an administrative agency.
(1) the refusal, denial, revocation, suspension, or other penalty is in the public interest for the purpose of maintaining proper control over horse racing meetings or pari-mutuel wagering; and
(2) any of the conditions listed in subsection (b) apply to the applicant or licensee.
(b) The conditions referred to in subsection (a) are as follows:
(1) The applicant or licensee has been convicted of a felony or misdemeanor that could compromise the integrity of racing by the applicant's or licensee's participation in racing.
(2) The applicant or licensee has had a license of the legally constituted racing authority of a state, province, or country denied, suspended, or revoked for cause within the preceding five (5) years.
(3) The applicant or licensee is presently under suspension for cause of a license by the legally constituted racing authority of a state, province, or country.
(4) The applicant or licensee has violated or attempted to violate a provision of this article, a rule adopted by the commission, or a law or rule with respect to horse racing in a jurisdiction.
(5) The applicant or licensee has perpetrated or attempted to perpetrate a fraud or misrepresentation in connection with the racing or breeding of horses or pari-mutuel wagering.
(6) The applicant or licensee has demonstrated financial irresponsibility by accumulating unpaid obligations, defaulting on obligations, or issuing drafts or checks that are dishonored or not paid.
(7) The applicant or licensee has made a material misrepresentation in an application for a license.
(8) The applicant or licensee has been convicted of a crime involving bookmaking, touting, or similar pursuits or has consorted with a person convicted of such an offense.
(9) The applicant or licensee has abandoned, mistreated, abused,
neglected, or engaged in an act of cruelty to a horse.
(10) The applicant or licensee has engaged in conduct that is
against the best interest of horse racing.
(11) The applicant or licensee has failed to comply with a written
order or ruling of the commission or judges pertaining to a racing
matter.
(12) The applicant or licensee has failed to answer correctly under
oath, to the best of the applicant's or licensee's knowledge, all
questions asked by the commission or its representatives
pertaining to a racing matter.
(13) The applicant or licensee has failed to return to a permit
holder any purse money, trophies, or awards paid in error or
ordered redistributed by the commission.
(14) The applicant or licensee has had possession of an alcoholic
beverage on a permit holder's premises, other than a beverage
legally sold through the permit holder's concession operation.
(15) The applicant or licensee has interfered with or obstructed a
member of the commission, a commission employee, or a racing
official while performing official duties.
(16) The name of the applicant or licensee appears on the
department of state revenue's most recent tax warrant list, and the
person's delinquent tax liability tax warrant has not been
satisfied.
(17) The applicant or licensee has pending criminal charges.
(18) The applicant or licensee has racing disciplinary charges
pending in Indiana or another jurisdiction.
(19) The applicant or licensee is unqualified to perform the duties
required under this article or the rules of the commission.
(b) A retail merchant may obtain a registered retail merchant's certificate by filing an application with the department and paying a registration fee of twenty-five dollars ($25) for each place of business listed on the application. The retail merchant shall also provide such security for payment of the tax as the department may require under IC 6-2.5-6-12.
(c) The retail merchant shall list on the application the location (including the township) of each place of business where the retail merchant makes retail transactions. However, if the retail merchant
does not have a fixed place of business, the retail merchant shall list the
retail merchant's residence as the retail merchant's place of business. In
addition, a public utility may list only its principal Indiana office as its
place of business for sales of public utility commodities or service, but
the utility must also list on the application the places of business where
it makes retail transactions other than sales of public utility
commodities or service.
(d) Upon receiving a proper application, the correct fee, and the
security for payment, if required, the department shall issue to the retail
merchant a separate registered retail merchant's certificate for each
place of business listed on the application. Each certificate shall bear
a serial number and the location of the place of business for which it is
issued.
(e) If a retail merchant intends to make retail transactions during a
calendar year at a new Indiana place of business, the retail merchant
must file a supplemental application and pay the fee for that place of
business.
(f) A registered retail merchant's certificate is valid for two (2) years
after the date the registered retail merchant's certificate is originally
issued or renewed. If the retail merchant has filed all returns and
remitted all taxes the retail merchant is currently obligated to file or
remit, the department shall renew the registered retail merchant's
certificate within thirty (30) days after the expiration date, at no cost to
the retail merchant.
(g) The department may not renew a registered retail merchant
certificate of a retail merchant who is delinquent in remitting
withholding taxes required to be remitted under IC 6-3-4, or sales
or use tax. The department, at least sixty (60) days before the date on
which a retail merchant's registered retail merchant's certificate expires,
shall notify a retail merchant who is delinquent in remitting
withholding taxes required to be remitted under IC 6-3-4, or sales
or use tax that the department will not renew the retail merchant's
registered retail merchant's certificate.
(h) A retail merchant engaged in business in Indiana as defined in
IC 6-2.5-3-1(c) who makes retail transactions that are only subject to
the use tax must obtain a registered retail merchant's certificate before
making those transactions. The retail merchant may obtain the
certificate by following the same procedure as a retail merchant under
subsections (b) and (c), except that the retail merchant must also
include on the application:
(1) the names and addresses of the retail merchant's principal
employees, agents, or representatives who engage in Indiana in
the solicitation or negotiation of the retail transactions;
(2) the location of all of the retail merchant's places of business in
Indiana, including offices and distribution houses; and
(3) any other information that the department requests.
(i) The department may permit an out-of-state retail merchant to
collect the use tax. However, before the out-of-state retail merchant
may collect the tax, the out-of-state retail merchant must obtain a
registered retail merchant's certificate in the manner provided by this
section. Upon receiving the certificate, the out-of-state retail merchant
becomes subject to the same conditions and duties as an Indiana retail
merchant and must then collect the use tax due on all sales of tangible
personal property that the out-of-state retail merchant knows is
intended for use in Indiana.
(j) Except as provided in subsection (k), the department shall submit
to the township assessor, or the county assessor if there is no township
assessor for the township, before July 15 of each year:
(1) the name of each retail merchant that has newly obtained a
registered retail merchant's certificate between March 2 of the
preceding year and March 1 of the current year for a place of
business located in the township or county; and
(2) the address of each place of business of the taxpayer in the
township or county.
(k) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, the department shall
submit the information listed in subsection (j) to the county assessor.
(b) The department shall revoke a certificate issued under section 1, 3, or 4 of this chapter if, for a period of three (3) years, the certificate holder fails to:
(1) file the returns required by IC 6-2.5-6-1; or
(2) report the collection of any state gross retail or use tax on the returns filed under IC 6-2.5-6-1.
However, the department must give the certificate holder at least five (5) days notice before it revokes the certificate.
(c) The department may, for good cause, revoke a certificate issued under section 1 of this chapter after at least five (5) days notice to the certificate holder if:
(1) the certificate holder is subject to an innkeeper's tax under IC 6-9; and
(2) a board, bureau, or commission established under IC 6-9 files a written statement with the department.
(d) The statement filed under subsection (c) must state that:
(1) information obtained by the board, bureau, or commission under IC 6-8.1-7-1 indicates that the certificate holder has not complied with IC 6-9; and
(2) the board, bureau, or commission has determined that significant harm will result to the county from the certificate holder's failure to comply with IC 6-9.
(e) The department shall revoke or suspend a certificate issued under section 1 of this chapter after at least five (5) days notice to the certificate holder if:
(1) the certificate holder owes taxes, penalties, fines, interest, or costs due under IC 6-1.1 that remain unpaid at least sixty (60) days after the due date under IC 6-1.1; and
(2) the treasurer of the county to which the taxes are due requests the department to revoke or suspend the certificate.
(f) The department shall reinstate a certificate suspended under subsection (e) if the taxes and any penalties due under IC 6-1.1 are paid or the county treasurer requests the department to reinstate the certificate because an agreement for the payment of taxes and any penalties due under IC 6-1.1 has been reached to the satisfaction of the county treasurer.
(g) The department shall revoke a certificate issued under section 1 of this chapter after at least five (5) days notice to the certificate holder if the department finds in a public hearing by a preponderance of the evidence that the certificate holder has violated IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4.
(h) If a person makes a payment for the certificate under section 1 or 3 of this chapter with a check, credit card, debit card, or electronic funds transfer, and the department is unable to obtain payment of the check, credit card, debit card, or electronic funds transfer for its full face amount when the check, credit card, debit card, or electronic funds transfer is presented for payment through normal banking channels, the department shall notify the person by mail that the check, credit card, debit card, or electronic funds transfer was not honored and that the person has five (5) days after the notice is mailed to pay the fee in cash, by certified check, or other guaranteed payment. If the person fails to make the payment within the five (5) day period, the department shall revoke the
certificate.
(a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified 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 62 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.
(3) Subtract one thousand dollars ($1,000), or in the case of a joint return filed by a husband and wife, subtract for each spouse one thousand dollars ($1,000).
(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.
(23) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes under
Section 112 of the Internal Revenue Code.
(24) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross income
under the Internal Revenue Code.
(25) Subtract any amount of a credit (including an advance refund
of the credit) that is provided to an individual under 26 U.S.C.
6428 (federal Economic Stimulus Act of 2008) and included in
the individual's federal adjusted gross income.
(26) Add any amount of unemployment compensation excluded
from federal gross income, as defined in Section 61 of the Internal
Revenue Code, under Section 85(c) of the Internal Revenue Code.
(27) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(28) 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 the amount necessary from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year 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.
(29) 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.
(30) 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.
(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 the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(36) Add the amount excluded from gross income under
Section 408(d)(8) of the Internal Revenue Code for a
charitable distribution from an individual retirement plan.
(37) Add the amount deducted from gross income under
Section 222 of the Internal Revenue Code for qualified tuition
and related expenses.
(38) Add the amount deducted from gross income under
Section 62(2)(D) of the Internal Revenue Code for certain
expenses of elementary and secondary school teachers.
(39) Add the amount excluded from gross income under
Section 127 of the Internal Revenue Code as annual employer
provided education expenses.
(40) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(41) Add the monthly amount excluded from gross income
under Section 132(f)(1)(A) and 132(f)(1)(B) that exceeds one
hundred dollars ($100) a month for a qualified transportation
fringe.
(42) Add the amount deducted from gross income under
Section 221 of the Internal Revenue Code that exceeds the
amount the taxpayer could deduct under Section 221 of the
Internal Revenue Code before it was amended by the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (P.L. 111-312).
(43) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(44) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year and
that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(45) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds
the amount the taxpayer could deduct under Section 195 of
the Internal Revenue Code before it was amended by the
Small Business Jobs Act of 2010 (P.L. 111-240).
(46) Add the amount necessary to make the adjusted gross
income of any taxpayer for which tax was not imposed on the
net recognized built-in gain of an S corporation under Section
1374(d)(7) of the Internal Revenue Code as amended by the
Small Business Jobs Act of 2010 (P.L. 111-240) equal to the
amount of adjusted gross income that would have been
computed before Section 1374(d)(7) of the Internal Revenue
Code as amended by the Small Business Jobs Act of 2010 (P.L.
111-240).
(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 the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(20) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(22) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year and
that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(23) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds
the amount the taxpayer could deduct under Section 195 of
the Internal Revenue Code before it was amended by the
Small Business Jobs Act of 2010 (P.L. 111-240).
(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.
(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 the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(19) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year and
that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(20) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds
the amount the taxpayer could deduct under Section 195 of
the Internal Revenue Code before it was amended by the
Small Business Jobs Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(22) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(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 the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(19) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year and
that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(20) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds
the amount the taxpayer could deduct under Section 195 of
the Internal Revenue Code before it was amended by the
Small Business Jobs Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(22) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(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.
(15) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(16) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(17) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year and
that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(18) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds
the amount the taxpayer could deduct under Section 195 of
the Internal Revenue Code before it was amended by the
Small Business Jobs Act of 2010 (P.L. 111-240).
(19) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(20) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross
income of any taxpayer for which tax was not imposed on the
net recognized built-in gain of an S corporation under Section
1374(d)(7) of the Internal Revenue Code as amended by the
Small Business Jobs Act of 2010 (P.L. 111-240) equal to the
amount of adjusted gross income that would have been
computed before Section 1374(d)(7) of the Internal Revenue
Code as amended by the Small Business Jobs Act of 2010 (P.L.
111-240).
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).
(b) Whenever the Internal Revenue Code is mentioned in this article, the particular provisions that are referred to, together with all the other provisions of the Internal Revenue Code in effect on January 1,
(c) An amendment to the Internal Revenue Code made by an act passed by Congress before January 1,
(1) individual adjusted gross income (as defined in Section 62 of the Internal Revenue Code);
(2) corporate taxable income (as defined in Section 63 of the Internal Revenue Code);
(3) trust and estate taxable income (as defined in Section 641(b) of the Internal Revenue Code);
(4) life insurance company taxable income (as defined in Section 801(b) of the Internal Revenue Code);
(5) mutual insurance company taxable income (as defined in Section 821(b) of the Internal Revenue Code); or
(6) taxable income (as defined in Section 832 of the Internal Revenue Code);
is also effective for that same taxable year for purposes of determining adjusted gross income under section 3.5 of this chapter.
(d) The following provisions of the Internal Revenue Code that were amended by the Tax Relief Act, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are treated as though they were not amended by the Tax Relief Act, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312):
(1) Section 1367(a)(2) of the Internal Revenue Code pertaining to an adjustment of basis of the stock of shareholders.
(2) Section 871(k)(1)(c) and 871(k)(2)(C) of the Internal Revenue Code pertaining the treatment of certain dividends of regulated investment companies.
(3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code pertaining to regulated investment companies qualified entity treatment.
(4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code pertaining to the modification of tax treatment of certain payments to controlling exempt organizations.
(5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code pertaining to the limitations on percentage depletion in the case of oil and gas wells.
(6) Section 451(i)(3) of the Internal Revenue Code pertaining to special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state electric restructuring policy for qualified electric utilities.
(7) Section 954(c)(6) of the Internal Revenue Code pertaining to the look-through treatment of payments between related controlled foreign corporation under foreign personal holding company rules.
The department shall develop forms and adopt any necessary rules under IC 4-22-2 to implement this subsection.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 6, 2009 (RETROACTIVE)]: Sec. 1.3. The amendments
to sections 2.5 and 2.6 of this chapter made during the 2011 regular
session of the general assembly are intended to be clarifications of
the law and not a substantive change in the law.
(b) Resident persons are entitled to a net operating loss deduction. 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.
(c) An Indiana net operating loss equals the taxpayer's federal net operating loss for a taxable year as calculated under Section 172 of the Internal Revenue Code, adjusted for the modifications required by IC 6-3-1-3.5.
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those modifications required under IC 6-3-1-3.5 for the same taxable year in which each net operating loss was incurred.
(2) An Indiana net operating loss includes a net operating loss that arises when the modifications required by IC 6-3-1-3.5 exceed the taxpayer's federal adjusted gross income (as defined in Section 62 of the Internal Revenue Code) for the taxable year in which the Indiana net operating loss is determined.
(e) Subject to the limitations contained in subsection (g), an Indiana net operating loss carryback or carryover shall be available as a deduction from the taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the carryback or carryover year provided in subsection (f).
(f) 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 a period of more than two (2) years
and less than six (6) years under Section 172(b)(1)(H) of the
Internal Revenue Code, two (2) years shall be used instead of
five (5) years; the period elected by the taxpayer; 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) 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).
(b) Corporations and nonresident persons are entitled to a net operating loss deduction. 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.
(c) An Indiana net operating loss equals the taxpayer's federal net
operating loss for a taxable year as calculated under Section 172 of the
Internal Revenue Code, derived from sources within Indiana and
adjusted for the modifications required by IC 6-3-1-3.5.
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those
modifications required under IC 6-3-1-3.5 for the same taxable
year in which each net operating loss was incurred.
(2) The amount of the taxpayer's net operating loss that is derived
from sources within Indiana shall be determined in the same
manner that the amount of the taxpayer's adjusted income derived
from sources within Indiana is determined under section 2 of this
chapter for the same taxable year during which each loss was
incurred.
(3) An Indiana net operating loss includes a net operating loss that
arises when the modifications required by IC 6-3-1-3.5 exceed the
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 (g), 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).
(f) 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 a period of more than two (2) years
and less than six (6) years under Section 172(b)(1)(H) of the
Internal Revenue Code, two (2) years shall be used instead of
five (5) years; the period elected by the taxpayer; 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) 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) 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) For purposes of an amended return filed to carry back an Indiana
net operating loss:
(1) the term "due date of the return", as used in IC 6-8.1-9-1(a)(1),
means the due date of the return for the taxable year in which the
net operating loss was incurred; and
(2) the term "date the payment was due", as used in
IC 6-8.1-9-2(c), means the due date of the return for the taxable
year in which the net operating loss was incurred.
(1) The 15th day of the fourth month following the close of the taxable year.
(2) For a corporation whose federal tax return is due on or before the date set forth in subdivision (1), as determined without regard to any extensions, weekends, or holidays, the 15th day of the month following the due date of the federal tax return.
exclusion, regardless of the total number of exclusions that
IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
on the taxpayer's final return for the taxable year. Such employer
making payments of any wages:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be deducted and withheld under this section and shall
not be liable to any individual for the amount deducted from the
individual's wages and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
of the amount of tax which under this article and IC 6-3.5 the
employer is required to withhold.
(b) An employer shall pay taxes withheld under subsection (a)
during a particular month to the department no later than thirty (30)
days after the end of that month. However, in place of monthly
reporting periods, the department may permit an employer to report and
pay the tax for:
(1) a calendar year reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed ten dollars ($10);
(2) a six (6) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed twenty-five dollars ($25);
or
(3) a three (3) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed seventy-five dollars ($75).
An employer using a reporting period (other than a monthly reporting
period) must file the employer's return and pay the tax for a reporting
period no later than the last day of the month immediately following the
close of the reporting period. If an employer files a combined sales and
withholding tax report, the reporting period for the combined report is
the shortest period required under this section, section 8.1 of this
chapter, or IC 6-2.5-6-1.
(c) For purposes of determining whether an employee is subject to
taxation under IC 6-3.5, an employer is entitled to rely on the statement
of an employee as to the employee's county of residence as represented
by the statement of address in forms claiming exemptions for purposes
of withholding, regardless of when the employee supplied the forms.
Every employee shall notify the employee's employer within five (5)
days after any change in the employee's county of residence.
(d) A county that makes payments of wages subject to tax under this
article:
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election
officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and
retain from the wages the amount prescribed in withholding
instructions issued by the department.
(e) Every employer shall, at the time of each payment made by the
employer to the department, deliver to the department a return upon the
form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the
provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom
in accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and
deducted therefrom in accordance with this section; and
(5) any other information the department may require.
Every employer making a declaration of withholding as provided in this
section shall furnish the employer's employees annually, but not later
than thirty (30) days after the end of the calendar year, a record of the
total amount of adjusted gross income tax and the amount of each
income tax, if any, imposed under IC 6-3.5, withheld from the
employees, on the forms prescribed by the department.
(f) All money deducted and withheld by an employer shall
immediately upon such deduction be the money of the state, and every
employer who deducts and retains any amount of money under the
provisions of this article shall hold the same in trust for the state of
Indiana and for payment thereof to the department in the manner and
at the times provided in this article. Any employer may be required to
post a surety bond in the sum the department determines to be
appropriate to protect the state with respect to money withheld pursuant
to this section.
(g) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to employers subject to the
provisions of this section, and for these purposes any amount deducted
or required to be deducted and remitted to the department under this
section shall be considered to be the tax of the employer, and with
respect to such amount the employer shall be considered the taxpayer.
In the case of a corporate or partnership employer, every officer,
employee, or member of such employer, who, as such officer,
employee, or member is under a duty to deduct and remit such taxes
shall be personally liable for such taxes, penalties, and interest.
(h) Amounts deducted from wages of an employee during any
calendar year in accordance with the provisions of this section shall be
considered to be in part payment of the tax imposed on such employee
for the employee's taxable year which begins in such calendar year, and
a return made by the employer under subsection (b) shall be accepted
by the department as evidence in favor of the employee of the amount
so deducted from the employee's wages. Where the total amount so
deducted exceeds the amount of tax on the employee as computed
under this article and IC 6-3.5, the department shall, after examining
the return or returns filed by the employee in accordance with this
article and IC 6-3.5, refund the amount of the excess deduction.
However, under rules promulgated by the department, the excess or any
part thereof may be applied to any taxes or other claim due from the
taxpayer to the state of Indiana or any subdivision thereof. No refund
shall be made to an employee who fails to file the employee's return or
returns as required under this article and IC 6-3.5 within two (2) years
from the due date of the return or returns. In the event that the excess
tax deducted is less than one dollar ($1), no refund shall be made.
(i) This section shall in no way relieve any taxpayer from the
taxpayer's obligation of filing a return or returns at the time required
under this article and IC 6-3.5, and, should the amount withheld under
the provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic
service employee that enters into an agreement with the domestic
service employee to withhold federal income tax under Section 3402
of the Internal Revenue Code may withhold Indiana income tax on the
domestic service employee's wages on the employer's Indiana
individual income tax return in the same manner as allowed by Section
3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security
Act, an employer of a domestic service employee may report and remit
state unemployment insurance contributions on the employee's wages
on the employer's Indiana individual income tax return in the same
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) The department shall adopt rules under IC 4-22-2 to exempt an
employer from the duty to deduct and remit from the wages of an
employee adjusted gross income tax withholding that would otherwise
be required under this section whenever:
(1) an employee has at least one (1) qualifying child, as
determined under Section 32 of the Internal Revenue Code;
(2) the employee is eligible for an earned income tax credit under
IC 6-3.1-21;
(3) the employee elects to receive advance payments of the earned
income tax credit under IC 6-3.1-21 from money that would
otherwise be withheld from the employee's wages for adjusted
gross income taxes; and
(4) the amount that is not deducted and remitted is distributed to
the employee, in accordance with the procedures prescribed by
the department, as an advance payment of the earned income tax
credit for which the employee is eligible under IC 6-3.1-21.
The rules must establish the procedures and reports required to carry
out this subsection.
(m) (l) A person who knowingly fails to remit trust fund money as
set forth in this section commits a Class D felony.
(1) is eligible to receive in the taxable year; and
(2) claimed for the taxable year;
under Section 32 of the Internal Revenue Code as it existed before being amended by Tax relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312).
(b) 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 amount of the credit is equal to the product of:
(1) the amount determined under subsection (a); multiplied by
(2) the quotient of the taxpayer's income taxable in Indiana divided by the taxpayer's total income.
(c) If the credit amount exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the excess, less any advance payments of the credit made by the taxpayer's employer under IC 6-3-4-8 that reduce the excess, shall be refunded to the taxpayer.
chapter provided under IC 6-3-4-8, a taxpayer must claim the advance
payment or credit in the manner prescribed by the department of state
revenue. The taxpayer shall submit to the department of state revenue
all information that the department of state revenue determines is
necessary for the calculation of the credit provided by this chapter.
(1) contain a statement of all property interests transferred by the decedent under taxable transfers known to the person filing the return;
(2) indicate the fair market value, as of the appraisal date prescribed by IC 6-4.1-5-1.5, of each property interest included in the statement;
(3) contain an itemized list of all inheritance tax deductions claimed with respect to property interests included in the statement;
(4) contain a list which indicates the name and address of each transferee of the property interests included in the statement and which indicates the total value of the property interests transferred to each transferee;
(5) contain the name and address of the attorney for the personal representative or for the person filing the return; and
(6) contain a copy of all appraisals or other evidence of property valuation as prescribed by section 1.5 of this chapter.
(b) If the decedent died testate, the person filing the return shall attach a copy of the decedent's will to the return.
(c) If a decedent disposed of any property by trust, contract, or other document, the person filing the return shall attach a copy of any such document, other than contracts solely indicating beneficiary designations, to the return.
real estate, tangible or intangible personal property, including
business interests, subject to tax under this article, the person filing
the return shall obtain an appraisal for all such property in order
to determine the fair market value of the property.
(b) For purposes of real estate valuation, an appraisal must be
obtained from a licensed real estate appraiser or licensed real
estate broker under IC 25-34.1-3.
(c) For purposes of appraising business interests not traded on
a national or regional securities or commodities exchange, an
appraisal must be obtained from an individual accredited to value
such business interests.
(d) For purposes of appraising tangible personal property, a
person filing an inheritance tax return may obtain:
(1) an appraisal by an individual whose ordinary trade or
business includes the valuation of tangible personal property
for which the appraisal is sought; or
(2) a valuation from a commonly recognized publication that
provides standard valuations of the tangible personal
property for which an appraisal is sought.
(e) Except as provided in subsection (h), if any real property,
tangible personal property, or intangible personal property listed
on the inheritance tax return is sold in an arms length transaction
within twelve (12) months of the decedent's date of death, the sale
price of the property is presumed to be the fair market value of the
property. However, this presumption is rebuttable.
(f) Except as provided in subsection (h), if the fair market value
of any property is determined by reference to its gross selling price,
a copy of a bill of sale or such other documentation from a person
or entity who has no beneficial interest is the decedent's estate or
property shall be attached to the inheritance tax return.
(g) Except as provided in subsection (h), if the fair marked value
of any property is determined by reference to its gross selling price,
an appraisal otherwise required under subsections (b) through (d)
is not required for the property sold.
(h) Subsections (e) through (g) do not apply to stocks, bonds, a
mutual fund, or other evidence of ownership or indebtedness
traded on a public securities or commodities exchange, or the sale
of any property interest determined by reference to the value of
any stocks, bonds, mutual fund, or other evidence of ownership or
indebtedness traded on a public securities or commodities
exchange.
(i) Notwithstanding any provision contained in this section, the
person filing the return under section 1 of this chapter is not
required to obtain an appraisal or other evidence of property
valuation for a property interest that passed at the decedent's
death solely to:
(1) the decedent's surviving spouse where the spousal
exemption under IC 6-4.1-3-7(a) is available for the entire
value of the property interest; or
(2) one (1) or more nonprofit organizations where the
charitable exemption under IC 6-4.1-3-1 is available for the
entire value of the property interest.
(j) Notwithstanding subsections (b) through (d), the department
may establish guidelines for circumstances:
(1) in which the requirement of an appraisal may be waived;
or
(2) when an alternative form of valuation may be used.
(1) Add the following amounts:
(A) An amount equal to a deduction allowed or allowable under Section 166, Section 585, or Section 593 of the Internal Revenue Code.
(B) An amount equal to a deduction allowed or allowable under Section 170 of the Internal Revenue Code.
(C) An amount equal to a deduction or deductions allowed or allowable under Section 63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by a state of the United States or levied at the local level by any subdivision of a state of the United States.
(D) The amount of interest excluded under Section 103 of the Internal Revenue Code or under any other federal law, minus the associated expenses disallowed in the computation of taxable income under Section 265 of the Internal Revenue Code.
(E) An amount equal to the deduction allowed under Section 172 or 1212 of the Internal Revenue Code for net operating losses or net capital losses.
(F) For a taxpayer that is not a large bank (as defined in Section 585(c)(2) of the Internal Revenue Code), an amount
equal to the recovery of a debt, or part of a debt, that becomes
worthless to the extent a deduction was allowed from gross
income in a prior taxable year under Section 166(a) of the
Internal Revenue Code.
(G) Add 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.
(H) Add 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).
(I) 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.
(J) 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.
(K) 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.
(L) 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.
(M) 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.
(N) 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.
(O) 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.
(P) 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:
(i) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(ii) 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.
(Q) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code for active
financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(R) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year
and that was classified as 15-year property under Section
168(e)(3)(E)(iv) 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 into service.
(S) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing
of environmental remediation costs.
(T) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any
qualified advanced mine safety equipment property.
(U) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports
entertainment complex in service during the taxable year
and that was classified as 7-year property under Section
168(e)(3)(C)(ii) 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 into service.
(V) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that
exceeds the amount the taxpayer could deduct under
Section 195 of the Internal Revenue Code before it was
amended by the Small Business Jobs Act of 2010 (P.L.
111-240).
(W) Add the amount necessary to make the adjusted gross
income of any taxpayer for which tax was not imposed on
the net recognized built-in gain of an S corporation under
Section 1374(d)(7) of the Internal Revenue Code as
amended by the Small Business Jobs Act of 2010 (P.L.
111-240) equal to the amount of adjusted gross income that
would have been computed before Section 1374(d)(7) of the
Internal Revenue Code as amended by the Small Business
Jobs Act of 2010 (P.L. 111-240).
(2) Subtract the following amounts:
(A) Income that the United States Constitution or any statute
of the United States prohibits from being used to measure the
tax imposed by this chapter.
(B) Income that is derived from sources outside the United
States, as defined by the Internal Revenue Code.
(C) An amount equal to a debt or part of a debt that becomes
worthless, as permitted under Section 166(a) of the Internal
Revenue Code.
(D) An amount equal to any bad debt reserves that are
included in federal income because of accounting method
changes required by Section 585(c)(3)(A) or Section 593 of
the Internal Revenue Code.
(E) 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.
(F) 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).
(G) Income that is:
(i) exempt from taxation under IC 6-3-2-21.7; and
(ii) included in the taxpayer's taxable income under the
Internal Revenue Code.
(b) In the case of a credit union, "adjusted gross income" for a
taxable year means the total transfers to undivided earnings minus
dividends for that taxable year after statutory reserves are set aside
under IC 28-7-1-24.
(c) In the case of an investment company, "adjusted gross income"
means the company's federal taxable income multiplied by the quotient
of:
(1) the aggregate of the gross payments collected by the company
during the taxable year from old and new business upon
investment contracts issued by the company and held by residents
of Indiana; divided by
(2) the total amount of gross payments collected during the
taxable year by the company from the business upon investment
contracts issued by the company and held by persons residing
within Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a
person, copartnership, association, limited liability company, or
corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues
in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if the
gross payments received by the company during the taxable year
on outstanding investment contracts, plus interest and dividends
earned on those contracts (by prorating the interest and dividends
earned on investment contracts by the same proportion that
certificate reserves (as defined by the Investment Company Act
of 1940) is to the company's total assets) is at least fifty percent
(50%) of the company's gross payments upon investment
contracts plus gross income from all other sources except
dividends from subsidiaries for the taxable year. The term
"investment contract" means an instrument listed in clauses (A)
through (G).
type if the applicant:
(1) is seeking a renewal and the applicant has not paid all the
property taxes under IC 6-1.1 and the innkeeper's tax under IC 6-9
that are due currently;
(2) is seeking a transfer and the applicant has not paid all the
property taxes under IC 6-1.1 and innkeeper's tax under IC 6-9 for
the assessment periods during which the transferor held the
permit; or
(3) is on the most recent tax warrant list supplied to the
commission by the department of state revenue.
(b) The commission shall issue, renew, or transfer a permit that the
commission denied under subsection (a) when the appropriate one (1)
of the following occurs:
(1) The person, if seeking a renewal, provides to the commission
a statement from the county treasurer of the county in which the
property of the applicant was assessed indicating that all the
property taxes under IC 6-1.1 and, in a county where the county
treasurer collects the innkeeper's tax, the innkeeper's tax under
IC 6-9 that were delinquent have been paid.
(2) The person, if seeking a transfer of ownership, provides to the
commission a statement from the county treasurer of the county
in which the property of the transferor was assessed indicating
that all the property taxes under IC 6-1.1 and, in a county where
the county treasurer collects the innkeeper's tax, the innkeeper's
tax under IC 6-9 have been paid for the assessment periods during
which the transferor held the permit.
(3) The person provides to the commission a statement from the
commissioner of the department of state revenue indicating that
the person's delinquent tax liability tax warrant has been
satisfied, including any delinquency in innkeeper's tax if the state
collects the innkeeper's tax for the county in which the person
seeks the permit.
(4) The commission receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
(c) An applicant may not be considered delinquent in the payment
of listed taxes if the applicant has filed a proper protest under
IC 6-8.1-5-1 contesting the remittance of those taxes. The applicant
shall be considered delinquent in the payment of those taxes if the
applicant does not remit the taxes owed to the state department of
revenue after a final determination on the protest is made by the
department of state revenue.
(d) (c) The commission may require that an applicant for the
issuance, renewal, or transfer of a wholesaler's, retailer's, or dealer's, or
other permit of any type furnish proof of the payment of a listed tax (as
defined by IC 6-8.1-1-1), tax warrant, or taxes imposed by IC 6-1.1.
The commission shall allow the applicant to certify, under the penalties
for perjury, that the applicant is not delinquent in filing returns or
remitting taxes.
(1) this title;
(2) other statutes; and
(3) rules of the boards.
(b) If the commissioner is notified by the department of state revenue that a person is on the most recent tax warrant list, the commissioner may not issue a permit or license to the applicant until:
(1) the applicant provides a statement to the commissioner from the department of state revenue indicating that the applicant's
(2) the commissioner receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(1) the applicant is of reputable and responsible character;
(2) the applicant is able to comply with the minimum standards for a hospital, an ambulatory outpatient surgical center, an abortion clinic, or a birthing center, and with rules adopted under this chapter; and
(3) the applicant has complied with section 15.4 of this chapter.
(b) The application must contain the following additional information:
(1) The name of the applicant.
(2) The type of institution to be operated.
(3) The location of the institution.
(4) The name of the person to be in charge of the institution.
(5) If the applicant is a hospital, the range and types of services to be provided under the general hospital license, including any service that would otherwise require licensure by the state department under the authority of IC 16-19.
(6) If the department of state revenue notifies the department that a person is on the most recent tax warrant list, the department shall not issue or renew the person's license until:
(A) the person provides to the department a statement from the department of state revenue that the person's tax warrant has been satisfied; or
(B) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(1) meet the minimum standards for certification under the Medicare program (42 U.S.C. 1395 et seq.) and comply with the regulations for hospices under 42 CFR 418.1 et seq.;
(2) be certified by the Medicare program; or
(3) If the department of state revenue notifies the department that a person is on the most recent tax warrant list, the department shall not issue or renew the person's license until:
(A) the person provides to the department a statement from the department of state revenue indicating that the person's tax warrant has been satisfied; or
(B) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(b) The state health commissioner may also permit persons who are not required to be licensed under this chapter to be voluntarily licensed if:
(1) the services provided by the person are substantially similar to those provided by licensed home health agencies under this chapter; and
(2) licensure will assist the person in obtaining:
(A) payment for services; or
(B) certification.
(c) If the department of state revenue notifies the department
that a person is on the most recent tax warrant list, the department
shall not issue or renew the person's license until:
(1) the person provides to the department a statement from
the department of state revenue indicating that the person's
tax warrant has been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
(1) The physical structure in which the service is to be performed.
(2) The educational level, number, and personal health of the staff.
(3) The financial ability to provide the service to be performed.
(4) The equipment with which to perform the service.
(5) The operating history of other health facilities owned or managed by the same person who owns or manages the facility. The director may recommend denial of licensure to a new facility or facility applying for licensure under new ownership where the owner or manager has a record of operation of other health facilities in substantial breach of this chapter or any other law governing health facilities.
(6) If the department of state revenue notifies the department that a person is on the most recent tax warrant list, the department shall not issue or renew the person's license until:
(A) the person provides to the department a statement from the department of state revenue indicating that the person's tax warrant has been satisfied; or
(B) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
department within thirty (30) days as an amendment to the original
registration, unless exempted under rules adopted under this chapter.
(b) The state department shall specify the expiration date for a
license in the license.
(c) The governor may, on behalf of the state, enter into an agreement
with the federal government providing for discontinuance of certain of
the federal government's responsibilities with respect to sources of
radiation and the assumption of those responsibilities by the state.
(d) A person who, on the effective date of an agreement under
subsection (c), possesses a license issued by the federal government is
considered to possess an equivalent license issued under this chapter
that expires:
(1) ninety (90) days after receipt from the state department of a
notice of expiration of the license; or
(2) on the date of expiration specified in the federal license;
whichever is earlier.
(e) The term of a license issued under this section by the state
department is twenty-four (24) months.
(f) The license fee for a new or renewal license is two hundred fifty
dollars ($250).
(g) If the department of state revenue notifies the department
that a person is on the most recent tax warrant list, the department
shall not issue or renew the person's license until:
(1) the person provides to the department a statement from
the department of state revenue indicating that the person's
tax warrant has been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
(1) the individual provides the department with a statement from the department of state revenue indicating that the individual's
(2) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
may allow the department of state revenue access to the name of each
person who:
(1) is licensed under this chapter or IC 25-1-5; or
(2) has applied for a license under this chapter or IC 25-1-5.
(b) If the department of state revenue notifies the licensing agency
that a person is on the most recent tax warrant list, the licensing agency
may shall not issue or renew the person's license until:
(1) the person provides to the licensing agency a statement from
the department of state revenue indicating that the person's
delinquent tax liability tax warrant has been satisfied; or
(2) the licensing agency receives a notice from the commissioner
of the department of state revenue under IC 6-8.1-8-2(k).
(1) the person or any of the person's employees or agents are located in Indiana; or
(2) the person:
(A) contracts with debtors who are residents of Indiana; or
(B) solicits business from residents of Indiana by advertisements or other communications sent or delivered through any of the following means:
(i) Mail.
(ii) Personal delivery.
(iii) Telephone.
(iv) Radio.
(v) Television.
(vi) The Internet or other electronic communications.
(vii) Any other means of communication.
(b) The director may request evidence of compliance with this section at:
(1) the time of application;
(2) the time of renewal of a license; or
(3) any other time considered necessary by the director.
(c) For purposes of subsection (b), evidence of compliance with this section may include:
(1) criminal background checks, including a national criminal history background check (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation for any individual described in
section 5(b)(2) or 5(b)(3) of this chapter;
(2) credit histories; and
(3) other background checks considered necessary by the director.
If the director requests a national criminal history background check
under subdivision (1) for an individual described in that subdivision,
the director shall require the individual to submit fingerprints to the
department or to the state police department, as appropriate, at the time
evidence of compliance is requested under subsection (b). The
individual to whom the request is made shall pay any fees or costs
associated with the fingerprints and the national criminal history
background check. The national criminal history background check
may be used by the director to determine the individual's compliance
with this section. The director or the department may not release the
results of the national criminal history background check to any private
entity.
(d) The fee for a license or renewal shall be fixed by the department
under IC 28-11-3-5 and shall be nonrefundable. The department may
impose a fee under IC 28-11-3-5 for each day that a renewal fee and
any related documents that are required to be submitted with the
renewal are delinquent.
(e) If a person knowingly acts as a debt management company in
violation of this chapter, any agreement the person has made under this
chapter is void and the debtor under the agreement is not obligated to
pay any fees. If the debtor has paid any amounts to the person, the
debtor, or the department on behalf of the debtor, may recover the
payment from the person that violated this section.
(f) A license issued under this section:
(1) is not assignable or transferable; and
(2) must be renewed every year in the manner prescribed by the
director of the department.
The director of the department shall prescribe the form of the renewal
application. In order to be accepted for processing, a renewal
application must be accompanied by the license renewal fee imposed
under subsection (d) and all information and documents requested by
the director of the department.
(g) If the department of state revenue notifies the department
that a person is on the most recent tax warrant list, the department
shall not issue or renew the person's license until:
(1) the person provides to the department a statement from
the department of state revenue that the person's tax warrant
has been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
(1) is prepared in accordance with standards adopted by the director;
(2) indicates the applicant meets minimum financial responsibility standards adopted by the director; and
(3) is prepared by a third party acceptable to the director.
(b) The initial application and any renewal application must be accompanied by proof that the applicant:
(1) has executed a bond, payable to the state, in an amount determined by the director; and
(2) has obtained property and casualty insurance coverage, in an amount determined by the director;
in accordance with standards adopted by the director.
(c) Any standards adopted by the director and described in subsection (a)(1), (a)(2), or (b) must be made available:
(1) for public inspection and copying at the offices of the department under IC 5-14-3; and
(2) electronically through the computer gateway administered by the office of technology established by IC 4-13.1-2-1.
(d) If the department of state revenue notifies the department that a person is on the most recent tax warrant list, the department shall not issue or renew the person's license until:
(1) the person provides to the department a statement from the department of state revenue that the person's tax warrant has been satisfied; or
(2) the department receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(b) An application for a license must be submitted on a form prescribed by the department and must include the information required by the department.
(c) An application submitted under this section must indicate
whether any individuals described in section 35(b)(2) or 35(b)(3) of
this chapter:
(1) are, at the time of the application, under indictment for a
felony under the laws of Indiana or any other jurisdiction; or
(2) have been convicted of or pleaded guilty or nolo contendere
to a felony under the laws of Indiana or any other jurisdiction.
(d) The director may request evidence of compliance with this
section at:
(1) the time of application;
(2) the time of renewal of a license; or
(3) any other time considered necessary by the director.
(e) For purposes of subsection (d), evidence of compliance may
include:
(1) criminal background checks, including a national criminal
history background check (as defined in IC 10-13-3-12) by the
Federal Bureau of Investigation for an individual described in
section 35(b)(2) or 35(b)(3) of this chapter;
(2) credit histories; and
(3) other background checks considered necessary by the director.
If the director requests a national criminal history background check
under subdivision (1) for an individual described in that subdivision,
the director shall require the individual to submit fingerprints to the
department or to the state police department, as appropriate, at the time
evidence of compliance is requested under subsection (d). The
individual to whom the request is made shall pay any fees or costs
associated with the fingerprints and the national criminal history
background check. The national criminal history background check
may be used by the director to determine the individual's compliance
with this section. The director or the department may not release the
results of the national criminal history background check to any private
entity.
(f) If the department of state revenue notifies the department
that a person is on the most recent tax warrant list, the department
shall not issue or renew the person's license until:
(1) the person provides to the department a statement from
the department of state revenue that the person's tax warrant
has been satisfied; or
(2) the department receives a notice from the commissioner of
the department of state revenue under IC 6-8.1-8-2(k).
engage in the business of cashing checks for consideration without first
obtaining a license.
(b) Each application for a license shall be in writing in such form as
the director may prescribe and shall include all of the following:
(1) The following information pertaining to the applicant:
(A) Name.
(B) Residence address.
(C) Business address.
(2) The following information pertaining to any individual
described in section 12(b)(1) of this chapter:
(A) Name.
(B) Residence address.
(C) Business address.
(D) Whether the person:
(i) is, at the time of the application, under indictment for a
felony under the laws of Indiana or any other jurisdiction; or
(ii) has been convicted of or pleaded guilty or nolo
contendere to a felony under the laws of Indiana or any other
jurisdiction.
(3) The address where the applicant's office or offices will be
located. If any business, other than the business of cashing checks
under this chapter, will be conducted by the applicant or another
person at any of the locations identified under this subdivision,
the applicant shall indicate for each location at which another
business will be conducted:
(A) the nature of the other business;
(B) the name under which the other business operates;
(C) the address of the principal office of the other business;
(D) the name and address of the business's resident agent in
Indiana; and
(E) any other information that the director may require.
(4) If the department of state revenue notifies the department
that a person is on the most recent tax warrant list, the
department shall not issue or renew the person's license until:
(A) the person provides to the department a statement
from the department of state revenue that the person's tax
warrant has been satisfied; or
(B) the department receives a notice from the
commissioner of the department of state revenue under
IC 6-8.1-8-2(k).
(4) (5) Such other data, financial statements, and pertinent
information as the director may require.
(c) The application shall be filed with a nonrefundable fee fixed by the department under IC 28-11-3-5.
(b) This SECTION expires January 1, 2012.
