Bill Text: IN SB0324 | 2012 | Regular Session | Introduced
Bill Title: Income tax deductions.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-01-30 - Senator Steele added as second author [SB0324 Detail]
Download: Indiana-2012-SB0324-Introduced.html
Citations Affected: IC 6-3-1-3.5; IC 6-3-2-3.7.
Synopsis: Income tax deductions. Increases the income tax deduction
for federal civil service annuity income received by an individual or the
individual's surviving spouse from $2,000 to the first $25,000 of
federal civil service annuity income for an individual and the first
$32,000 for a husband and wife who both receive income from a
federal civil service annuity. Caps the income tax deduction for Social
Security and railroad retirement benefits at these amounts. (The current
deduction is 100% of these benefits.) Makes technical corrections.
Effective: January 1, 2013.
January 9, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
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.
(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) (10) Subtract an amount equal to: the amount of:
(1) the first twenty-five thousand dollars ($25,000), which
is received by an individual; or
(2) the first thirty-two thousand dollars ($32,000) received
by a husband and wife, in the case of a husband and wife
filing a joint return who both receive income;
during the taxable year from federal Social Security and
Railroad Retirement benefits that are included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(13) (11) 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) (12) 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) (13) 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, (14)
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) (15) 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
(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.
(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.
U.S.C. 6428 (federal Economic Stimulus Act of 2008) and
included in the individual's federal adjusted gross income.
(26) (24) 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) (25) 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) (26) 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) (27) 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) (28) 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) (29) 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.
(31) (30) 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) (31) 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) (32) 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.
(33) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(35) (34) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(36) (35) 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) (36) Add the amount deducted from gross income under
Section 222 of the Internal Revenue Code for qualified tuition
and related expenses.
(38) (37) 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) (38) Add the amount excluded from gross income under
Section 127 of the Internal Revenue Code as annual employer
provided education expenses.
(40) (39) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(41) (40) Add the monthly amount excluded from gross income
under Section 132(f)(1)(A) and 132(f)(1)(B) of the Internal
Revenue Code that exceeds one hundred dollars ($100) a month
for a qualified transportation fringe.
(42) (41) 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) (42) 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) (43) 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) (44) 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) (45) 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).
(35) (46) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(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).
(19) (24) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(24) (25) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(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.
(18) (23) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(23) (24) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(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.
(18) (23) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(23) (24) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(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).
(16) (22) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(22) (23) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(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).
(1) the first:
(A) twenty-five thousand dollars
(B) thirty-two thousand dollars ($32,000) received by a husband and wife, in the case of a husband and wife filing a joint return who both receive income;
during the taxable year from a federal civil service annuity, and which is included in adjusted gross income under Section 62 of the Internal Revenue Code; minus
(2) the total amount of Social Security benefits and railroad retirement benefits received by the individual during the taxable year.
However, the individual or surviving spouse is only entitled to the deduction provided by this section if the individual or surviving spouse is at least sixty-two (62) years of age before the end of the taxable year. In addition, in the case of a husband and wife filing a joint return who both receive income during the taxable year from a federal civil service annuity, the husband and wife are only entitled to the deduction provided by this section if both the husband and wife are at least sixty-two (62) years of age before the end of the taxable year.
(b) This SECTION expires January 1, 2015.