Bill Text: IN SB0589 | 2011 | Regular Session | Amended
Bill Title: Economic development and state tax matters.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Enrolled - Dead) 2011-04-25 - House advisors appointed: Espich, Cherry, Baird, Pelath, Goodin and Tyler [SB0589 Detail]
Download: Indiana-2011-SB0589-Amended.html
Citations Affected: IC 2-5; IC 5-28; IC 6-2.5; IC 6-3; IC 6-3.1;
IC 6-5.5; IC 6-8; IC 6-8.1; IC 20-19; IC 21-18; IC 22-4.1; IC 33-26;
IC 36-7; IC 36-7.6; noncode.
Effective: Upon passage; January 1, 2011 (retroactive); July 1, 2011;
January 1, 2012; July 1, 2012.
January 20, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
February 17, 2011, amended, reported favorably _ Do Pass.
Digest Continued
organizations within geographic regions in Indiana. (5) Permits the department of state revenue to negotiate a collection allowance for the collection of sales taxes by an out-of-state seller. (6) Provides that a claim for a sales tax refund must be filed within one year if the claim is based on the predominant use of electrical energy, natural or artificial gas, water, steam, and steam heat by certain businesses or based on the sales tax exemption for these services or commodities. (7) Decreases the corporate income tax rate from 8.5% to 6.5% effective July 1, 2012. (8) Provides an income tax deduction for corporations that repatriate profits from controlled foreign corporations. (9) Provides that the adjusted gross income tax and financial institutions tax (for credit unions and investment companies) apply to interest on state and local bonds issued by a state other than Indiana or issued by a political subdivision of such a state. (10) Clarifies the attribution rules applicable to business income and sales receipts from certain intangibles under the adjusted gross income tax. Provides that the department of state revenue must contract for advice and recommendations concerning the proper distribution, apportionment, or allocation of income and deductions among two or more businesses. (11) Eliminates the carryback of net operating losses under the adjusted gross income tax. (12) Expries the teacher summer employment income tax credit on January 1, 2012. (13) Specifies that a maternity home tax credit may not be awarded for the providing, after December 31, 2011, of a temporary residence. (14) Provides that a community revitalization enhancement district tax credit may not be awarded for a qualified investment made after December 31, 2011. (15) Provides that a tax credit may not be awarded for making available, after December 31, 2011, a health benefit plan. (16) Provides that a small employer qualified wellness program tax credit may not be awarded for costs incurred after December 31, 2011. (17) Extends the time in which a person must file an amended Indiana adjusted gross income tax return to reflect modifications made in a federal income tax return. (18) Prohibits the department of state revenue from taking an action to collect a delinquent tax until the later of the time to file a tax appeal has expired or a final decision is made in a tax appeal. Expands the power of the tax court. Makes related changes to obtaining injunctions against the collection of a tax. (19) Permits local governments to pledge revenue from the county adjusted gross income tax and the county economic development income tax for redevelopment financing. (20) Requires higher education institutions to expand technology and innovation commercialization programs. (21) Provides that if a county or a municipality becomes a member of a regional development authority (other than the northwest Indiana regional development authority) after June 30, 2011, and before July 1, 2013, the amount of money that must be transferred annually by the county or municipality is equal to the amount that would be distributed to the county or the municipality from a county economic development income tax rate of 0.025%. Removes outdated individual income tax adjustments.
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 state
and local administration.
Chapter 31. Interim Study Committee on Economic Development
Sec. 1. The interim study committee on economic development is established.
Sec. 2. (a) The committee consists of the following members:
(1) Two (2) members of the senate, who must be affiliated with different political parties, appointed by the president pro tempore of the senate.
(2) Two (2) members of the house of representatives, who must be affiliated with different political parties, appointed by the speaker of the house of representatives.
(3) The chief executive officer of the Indiana economic
development corporation (or the chief executive officer's
designee).
(4) The following twelve (12) members appointed as follows:
(A) The following four (4) members appointed by the
governor, not more than two (2) of whom may be affiliated
with the same political party and at least one (1) of whom
must be a woman who is an owner of a women's business
enterprise (as defined in IC 4-13-16.5-1.3) that is certified
under IC 4-13-16.5 or a member of a minority group (as
defined in IC 4-13-16.5-1) who is an owner of a minority
business enterprise (as defined in IC 4-13-16.5-1) that is
certified under IC 4-13-16.5:
(i) One (1) member to represent large businesses.
(ii) One (1) member to represent small businesses.
(iii) One (1) member to represent banking and finance.
(iv) One (1) member to represent labor interests.
(B) The following four (4) members appointed by the
president pro tempore of the senate, not more than two (2)
of whom may be affiliated with the same political party:
(i) One (1) member to represent higher education.
(ii) One (1) member to represent local economic
development organizations and officials.
(iii) One (1) member to represent cities.
(iv) One (1) member to represent counties.
(C) The following four (4) members appointed by the
speaker of the house of representatives, not more than two
(2) of whom may be affiliated with the same political
party:
(i) One (1) member to represent agricultural interests.
(ii) One (1) member to represent the public at large.
(iii) One (1) member to represent kindergarten through
grade 12 education.
(iv) One (1) member to represent quality of life issues.
(b) The president pro tempore of the senate shall appoint one (1)
of the members appointed by the president under subsection (a)(1)
as a co-chair of the committee. The speaker of the house of
representatives shall appoint one (1) of the members appointed by
the speaker under subsection (a)(2) as a co-chair of the committee.
(c) The affirmative votes of a majority of the voting members
appointed to the committee are required for the committee to take
action on any measure, including final reports.
Sec. 3. The committee shall study the following during each
interim:
(1) Best practices in state and local economic development
policies and activities.
(2) The use and effectiveness of tax credits and deductions.
(3) Whether there are any specific sectors of the economy for
which Indiana might have comparative advantages over other
states.
(4) The extent to which Indiana's tax laws encourage business
investment, and any improvements that might be made to
Indiana's tax laws.
(5) The extent to which Indiana's education systems support
economic development.
(6) The benefits of existing community revitalization
enhancement districts and possible new community
revitalization enhancement districts as an economic
development tool.
(7) Methods for eliminating or reducing the personal property
tax statewide and the appropriateness of allowing local
government the option of eliminating or abating personal
property tax for new investment and economic development
purposes.
(8) Any other issue assigned to the committee by the
legislative council or as directed by the committee's co-chairs.
Sec. 4. The committee shall issue a final report before November
1 each year to the legislative council containing any findings and
recommendations of the committee. The report must be in an
electronic format under IC 5-14-6.
Sec. 5. Except as otherwise provided in this chapter, the
committee shall operate under the policies governing study
committees adopted by the legislative council.
Sec. 6. This chapter expires December 31, 2014.
(1) Create and regularly update a strategic economic development plan based on a statewide study to determine specific economic sectors that should be emphasized by the state and by local economic development organizations within geographic regions in Indiana.
(2) Establish strategic benchmarks and performance measures.
(3) Monitor and report on Indiana's economic performance.
(4) Market Indiana to businesses worldwide.
(5) Assist Indiana businesses that want to grow.
(6) Solicit funding from the private sector for selected initiatives.
(7) Provide for the orderly economic development and growth of Indiana.
(8) Establish and coordinate the operation of programs commonly available to all citizens of Indiana to implement a strategic plan for the state's economic development and enhance the general welfare.
(9) Evaluate and analyze the state's economy to determine the direction of future public and private actions, and report and make recommendations to the general assembly in an electronic format under IC 5-14-6 with respect to the state's economy.
(1) Cooperate with federal, state, and local governments and agencies in the coordination of programs to make the best use of Indiana resources, based on a statewide study to determine specific economic sectors that should be emphasized by the state and by local economic development organizations within geographic regions in Indiana.
(2) Receive and expend funds, grants, gifts, and contributions of money, property, labor, interest accrued from loans made by the corporation, and other things of value from public and private sources, including grants from agencies and instrumentalities of the state and the federal government. The corporation:
(A) may accept federal grants for providing planning assistance, making grants, or providing other services or functions necessary to political subdivisions, planning commissions, or other public or private organizations;
(B) shall administer these grants in accordance with the terms of the grants; and
(C) may contract with political subdivisions, planning commissions, or other public or private organizations to carry out the purposes for which the grants were made.
(3) Direct that assistance, information, and advice regarding the duties and functions of the corporation be given to the corporation by an officer, agent, or employee of the executive branch of the state. The head of any other state department or agency may
assign one (1) or more of the department's or agency's employees
to the corporation on a temporary basis or may direct a division
or an agency under the department's or agency's supervision and
control to make a special study or survey requested by the
corporation.
(b) The corporation shall perform the following duties:
(1) Develop and implement industrial development programs to
encourage expansion of existing industrial, commercial, and
business facilities in Indiana and to encourage new industrial,
commercial, and business locations in Indiana.
(2) Assist businesses and industries in acquiring, improving, and
developing overseas markets and encourage international plant
locations in Indiana. The corporation, with the approval of the
governor, may establish foreign offices to assist in this function.
(3) Promote the growth of minority business enterprises by doing
the following:
(A) Mobilizing and coordinating the activities, resources, and
efforts of governmental and private agencies, businesses, trade
associations, institutions, and individuals.
(B) Assisting minority businesses in obtaining governmental
or commercial financing for expansion or establishment of
new businesses or individual development projects.
(C) Aiding minority businesses in procuring contracts from
governmental or private sources, or both.
(D) Providing technical, managerial, and counseling assistance
to minority business enterprises.
(4) Assist the office of the lieutenant governor in:
(A) community economic development planning;
(B) implementation of programs designed to further
community economic development; and
(C) the development and promotion of Indiana's tourist
resources.
(5) Assist the secretary of agriculture and rural development in
promoting and marketing of Indiana's agricultural products and
provide assistance to the director of the Indiana state department
of agriculture.
(6) With the approval of the governor, implement federal
programs delegated to the state to carry out the purposes of this
article.
(7) Promote the growth of small businesses by doing the
following:
(A) Assisting small businesses in obtaining and preparing the
permits required to conduct business in Indiana.
(B) Serving as a liaison between small businesses and state
agencies.
(C) Providing information concerning business assistance
programs available through government agencies and private
sources.
(8) Establish a public information page on its current Internet site
on the world wide web. The page must provide the following:
(A) By program, cumulative information on the total amount
of incentives awarded, the total number of companies that
received the incentives and were assisted in a year, and the
names and addresses of those companies.
(B) A mechanism on the page whereby the public may request
further information online about specific programs or
incentives awarded.
(C) A mechanism for the public to receive an electronic
response.
(c) The corporation may do the following:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, recreational,
agricultural, and other advantages of Indiana.
(2) Plan, direct, and conduct research activities.
(3) Assist in community economic development planning and the
implementation of programs designed to further community
economic development.
(b) Transactions involving tangible personal property are exempt from the state gross retail tax if the person acquiring the property acquires it for direct consumption as a material to be consumed in the
direct production of other tangible personal property in the person's
business of manufacturing, processing, refining, repairing, mining,
agriculture, horticulture, floriculture, or arboriculture. This exemption
includes transactions involving acquisitions of tangible personal
property used in commercial printing.
(c) A refund claim based on the exemption provided by this
section for electrical energy, natural or artificial gas, water, steam,
and steam heat may not cover transactions that occur more than
twelve (12) months before the date of the refund claim.
(b) A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system. A seller that uses a certified automated system remains responsible and is liable to the state for reporting and remitting tax.
(c) A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard.
(d) A certified service provider or a seller using a certified automated system that obtains a certification or taxability matrix from the department is not liable for sales or use tax collection errors that
result from reliance on the department's certification or taxability
matrix. If the department determines that an item or transaction is
incorrectly classified as to the taxability of the item or transaction, the
department shall notify the certified service provider or the seller using
a certified automated system of the incorrect classification. The
certified service provider or the seller using a certified automated
system must revise the incorrect classification within ten (10) days
after receiving notice of the determination from the department. If the
classification error is not corrected within ten (10) days after receiving
the department's notice, the certified service provider or the seller using
a certified automated system is liable for failure to collect the correct
amount of sales or use tax due and owing.
(e) If at least thirty (30) days are not provided between the
enactment of a statute changing the rate set forth in IC 6-2.5-2-2 and
the effective date of the rate change, the department shall relieve the
seller of liability for failing to collect tax at the new rate if:
(1) the seller collected the tax at the immediately preceding
effective rate; and
(2) the seller's failure to collect at the current rate does not extend
beyond thirty (30) days after the effective date of the rate change.
A seller is not eligible for the relief provided for in this subsection if
the seller fraudulently fails to collect at the current rate or solicits
purchases based on the immediately preceding effective rate.
(f) The department shall allow any monetary allowances that are
provided by the member states to sellers or certified service providers
in exchange for collecting the sales and use taxes as provided in article
VI of the agreement.
(g) After June 30, 2011, the department may negotiate with a
certified service provider or seller to provide a monetary allowance
that is greater than the allowance provided in IC 6-2.5-6-10 for the
collection of gross retail tax or use tax on sales, leases, and rentals
of goods or services made in a member state or a jurisdiction that
is not a member state. A monetary allowance permitted under this
subsection may not exceed ten percent (10%) of the gross retail tax
or use tax collected from a sale, lease, or rental. The department
may adopt emergency rules under IC 4-22-2-37.1 and shall adopt
rules under IC 4-22-2 to establish standards for granting monetary
allowances under this subsection. The rules must provide that the
permitted monetary allowance is a negotiated rate based on:
(1) the collection costs of the certified service provider or
seller;
(2) the volume and value to the state of sales, leases, or rentals
processed by a certified service provider or seller;
(3) the administrative and legal costs that the state would
otherwise incur to collect gross retail taxes or use taxes for
these sales, leases, or rentals absent a negotiated monetary
allowance; and
(4) the likelihood of collecting gross retail taxes or use taxes
on these sales, leases, or rentals absent a negotiated monetary
allowance.
(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)
(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 federal
Social Security and Railroad Retirement benefits 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.
(A)
(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.
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) (20) 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) (21) 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) (22) 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) (23) 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) (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.
(32) (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.
(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 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.
(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 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.
(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 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.
(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 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.
(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) Except as provided in section 1.5 of this chapter, each taxable year, a tax at the rate of
(1) income from real or tangible personal property located in this state;
(2) income from doing business in this state;
(3) income from a trade or profession conducted in this state;
(4) compensation for labor or services rendered within this state; and
(5) income from stocks, bonds, notes, bank deposits, patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other intangible personal property
Income from a pass through entity shall be characterized in a manner consistent with the income's characterization for federal income tax purposes and shall be considered Indiana source income as if the person, corporation, or pass through entity that received the income had directly engaged in the income producing activity. Income that is derived from one (1) pass through entity and is considered to pass
through to another pass through entity does not change these
characteristics or attribution provisions. In the case of nonbusiness
income described in subsection (g), only so much of such income as is
allocated to this state under the provisions of subsections (h) through
(k) shall be deemed to be derived from sources within Indiana. In the
case of business income, only so much of such income as is
apportioned to this state under the provision of subsection (b) shall be
deemed to be derived from sources within the state of Indiana. In the
case of compensation of a team member (as defined in section 2.7 of
this chapter), only the portion of income determined to be Indiana
income under section 2.7 of this chapter is considered derived from
sources within Indiana. In the case of a corporation that is a life
insurance company (as defined in Section 816(a) of the Internal
Revenue Code) or an insurance company that is subject to tax under
Section 831 of the Internal Revenue Code, only so much of the income
as is apportioned to Indiana under subsection (r) is considered derived
from sources within Indiana.
(b) Except as provided in subsection (l), if business income of a
corporation or a nonresident person is derived from sources within the
state of Indiana and from sources without the state of Indiana, the
business income derived from sources within this state shall be
determined by multiplying the business income derived from sources
both within and without the state of Indiana by the following:
(1) For all taxable years that begin after December 31, 2006, and
before January 1, 2008, a fraction. The:
(A) numerator of the fraction is the sum of the property factor
plus the payroll factor plus the product of the sales factor
multiplied by three (3); and
(B) denominator of the fraction is five (5).
(2) For all taxable years that begin after December 31, 2007, and
before January 1, 2009, a fraction. The:
(A) numerator of the fraction is the property factor plus the
payroll factor plus the product of the sales factor multiplied by
four and sixty-seven hundredths (4.67); and
(B) denominator of the fraction is six and sixty-seven
hundredths (6.67).
(3) For all taxable years beginning after December 31, 2008, and
before January 1, 2010, a fraction. The:
(A) numerator of the fraction is the property factor plus the
payroll factor plus the product of the sales factor multiplied by
eight (8); and
(B) denominator of the fraction is ten (10).
(4) For all taxable years beginning after December 31, 2009, and before January 1, 2011, a fraction. The:
(A) numerator of the fraction is the property factor plus the payroll factor plus the product of the sales factor multiplied by eighteen (18); and
(B) denominator of the fraction is twenty (20).
(5) For all taxable years beginning after December 31, 2010, the sales factor.
(c) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the taxable year and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the taxable year. However, with respect to a foreign corporation, the denominator does not include the average value of real or tangible personal property owned or rented and used in a place that is outside the United States. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. The average of property shall be determined by averaging the values at the beginning and ending of the taxable year, but the department may require the averaging of monthly values during the taxable year if reasonably required to reflect properly the average value of the taxpayer's property.
(d) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the taxable year. However, with respect to a foreign corporation, the denominator does not include compensation paid in a place that is outside the United States. Compensation is paid in this state if:
(1) the individual's service is performed entirely within the state;
(2) the individual's service is performed both within and without this state, but the service performed without this state is incidental to the individual's service within this state; or
(3) some of the service is performed in this state and:
(A) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state; or
(B) the base of operations or the place from which the service is directed or controlled is not in any state in which some part
of the service is performed, but the individual is a resident of
this state.
(e) The sales factor is a fraction, the numerator of which is the total
sales of the taxpayer in this state during the taxable year, and the
denominator of which is the total sales of the taxpayer everywhere
during the taxable year. Sales include receipts from intangible property
and receipts from the sale or exchange of intangible property. However,
with respect to a foreign corporation, the denominator does not include
sales made in a place that is outside the United States. Receipts from
intangible personal property are derived from sources within Indiana
if the receipts from the intangible personal property are attributable to
Indiana under section 2.2 of this chapter. to the extent that the income
from the receipts would be apportioned to Indiana under this
section or if the income from the receipts would be allocated to
Indiana or considered to be derived from sources within Indiana
under this section. Regardless of the f.o.b. point or other conditions of
the sale, sales of tangible personal property are in this state if:
(1) the property is delivered or shipped to a purchaser that is
within Indiana, other than the United States government; or
(2) the property is shipped from an office, a store, a warehouse, a
factory, or other place of storage in this state and:
(A) the purchaser is the United States government; or
(B) the taxpayer is not taxable in the state of the purchaser.
Gross receipts derived from commercial printing as described in
IC 6-2.5-1-10 shall be treated as sales of tangible personal property for
purposes of this chapter.
(f) Sales, other than receipts from intangible property covered by
subsection (e) and sales of tangible personal property, are in this state
if:
(1) the income-producing activity is performed in this state; or
(2) the income-producing activity is performed both within and
without this state and a greater proportion of the
income-producing activity is performed in this state than in any
other state, based on costs of performance.
(g) Rents and royalties from real or tangible personal property,
capital gains, interest, dividends, or patent or copyright royalties, to the
extent that they constitute nonbusiness income, shall be allocated as
provided in subsections (h) through (k).
(h)(1) Net rents and royalties from real property located in this state
are allocable to this state.
(2) Net rents and royalties from tangible personal property are
allocated to this state:
(i) if and to the extent that the property is utilized in this state; or
(ii) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(3) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year, and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
(i)(1) Capital gains and losses from sales of real property located in this state are allocable to this state.
(2) Capital gains and losses from sales of tangible personal property are allocable to this state if:
(i) the property had a situs in this state at the time of the sale; or
(ii) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(3) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
(j) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
(k)(1) Patent and copyright royalties are allocable to this state:
(i) if and to the extent that the patent or copyright is utilized by the taxpayer in this state; or
(ii) if and to the extent that the patent or copyright is utilized by the taxpayer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts
from copyright royalties does not permit allocation to states or if
the accounting procedures do not reflect states of utilization, the
copyright is utilized in the state in which the taxpayer's
commercial domicile is located.
(l) If the allocation and apportionment provisions of this article do
not fairly represent the taxpayer's income derived from sources within
the state of Indiana, the taxpayer may petition for or the department
may require, in respect to all or any part of the taxpayer's business
activity, if reasonable:
(1) separate accounting;
(2) for a taxable year beginning before January 1, 2011, the
exclusion of any one (1) or more of the factors, except the sales
factor;
(3) the inclusion of one (1) or more additional factors which will
fairly represent the taxpayer's income derived from sources within
the state of Indiana; or
(4) the employment of any other method to effectuate an equitable
allocation and apportionment of the taxpayer's income.
(m) In the case of two (2) or more organizations, trades, or
businesses owned or controlled directly or indirectly by the same
interests, the department shall distribute, apportion, or allocate the
income derived from sources within the state of Indiana between and
among those organizations, trades, or businesses in order to fairly
reflect and report the income derived from sources within the state of
Indiana by various taxpayers, considering the recommendations
made under IC 6-8.1-3-10.
(n) For purposes of allocation and apportionment of income under
this article, a taxpayer is taxable in another state if:
(1) in that state the taxpayer is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net
income tax regardless of whether, in fact, the state does or does
not.
(o) Notwithstanding subsections (l) and (m), the department may
not, under any circumstances, require that income, deductions, and
credits attributable to a taxpayer and another entity be reported in a
combined income tax return for any taxable year, if the other entity is:
(1) a foreign corporation; or
(2) a corporation that is classified as a foreign operating
corporation for the taxable year by section 2.4 of this chapter.
(p) Notwithstanding subsections (l) and (m), the department may not
require that income, deductions, and credits attributable to a taxpayer
and another entity not described in subsection (o)(1) or (o)(2) be
reported in a combined income tax return for any taxable year, unless
the department is unable to fairly reflect the taxpayer's adjusted gross
income for the taxable year through use of other powers granted to the
department by subsections (l) and (m).
(q) Notwithstanding subsections (o) and (p), one (1) or more
taxpayers may petition the department under subsection (l) for
permission to file a combined income tax return for a taxable year. The
petition to file a combined income tax return must be completed and
filed with the department not more than thirty (30) days after the end
of the taxpayer's taxable year. A taxpayer filing a combined income tax
return must petition the department within thirty (30) days after the end
of the taxpayer's taxable year to discontinue filing a combined income
tax return.
(r) This subsection applies to a corporation that is a life insurance
company (as defined in Section 816(a) of the Internal Revenue Code)
or an insurance company that is subject to tax under Section 831 of the
Internal Revenue Code. The corporation's adjusted gross income that
is derived from sources within Indiana is determined by multiplying the
corporation's adjusted gross income by a fraction:
(1) the numerator of which is the direct premiums and annuity
considerations received during the taxable year for insurance
upon property or risks in the state; and
(2) the denominator of which is the direct premiums and annuity
considerations received during the taxable year for insurance
upon property or risks everywhere.
The term "direct premiums and annuity considerations" means the
gross premiums received from direct business as reported in the
corporation's annual statement filed with the department of insurance.
(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
(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) (1) An Indiana net operating loss shall be an Indiana net
operating loss carryover to each of the carryover years following
the taxable year of the loss.
(3) Carryback years shall be determined by reference to the
number of years allowed for carrying back a net operating loss
under Section 172(b) of the Internal Revenue Code. However,
with respect to the carryback period for a net operating loss:
(A) for which a taxpayer made an election to use five (5) years
instead of two (2) years under Section 172(b)(1)(H) of the
Internal Revenue Code, two (2) years shall be used instead of
five (5) years; or
(B) that is a qualified disaster loss for which the taxpayer
elected to have the net operating loss carryback period with
respect to the loss year determined without regard to Section
172(b)(1)(J) of the Internal Revenue Code, five (5) years shall
be used.
(4) (2) 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
(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) (1) An Indiana net operating loss shall be an Indiana net
operating loss carryover to each of the carryover years following
the taxable year of the loss.
(3) Carryback years shall be determined by reference to the
number of years allowed for carrying back a net operating loss
under Section 172(b) of the Internal Revenue Code. However,
with respect to the carryback period for a net operating loss:
(A) for which a taxpayer made an election to use five (5) years
instead of two (2) years under Section 172(b)(1)(H) of the
Internal Revenue Code, two (2) years shall be used instead of
five (5) years; or
(B) that is a qualified disaster loss for which the taxpayer
elected to have the net operating loss carryback period with
respect to the loss year determined without regard to Section
172(b)(1)(J) of the Internal Revenue Code, five (5) years shall
be used.
(4) (2) 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.
JANUARY 1, 2012]: Sec. 22. (a) If a taxpayer is a corporation that
is a United States shareholder, the taxpayer may elect to deduct an
amount equal to part of the cash dividends that are received during
the taxable year by the shareholder from controlled foreign
corporations. The amount of the deduction is the percentage
amount approved by the Indiana economic development
corporation established under IC 5-28-3. If, within the taxable year
for which the election under this section is in effect, a United States
shareholder receives a cash distribution from a controlled foreign
corporation which is excluded from gross income under Section
959(a) of the Internal Revenue Code, the distribution shall be
treated for purposes of this section as a cash dividend to the extent
of any amount included in income by the United States shareholder
under Section 951(a)(1)(A) of the Internal Revenue Code as a
result of any cash dividend during such taxable year to:
(1) the controlled foreign corporation from another controlled
foreign corporation that is in a chain of ownership described
in Section 958(a) of the Internal Revenue Code; or
(2) any other controlled foreign corporation in the chain of
ownership, but only to the extent of cash distributions
described in Section 959(b) of the Internal Revenue Code that
are made during the taxable year to the controlled foreign
corporation from which the United States shareholder
received the distribution.
(b) The following apply to the amount of dividends taken into
account under subsection (a):
(1) The amount of dividends taken into account under
subsection (a) may not exceed the greater of:
(A) one million dollars ($1,000,000);
(B) the amount shown on the applicable financial
statement as earnings permanently reinvested outside the
United States; or
(C) in the case of an applicable financial statement that
fails to show a specific amount of earnings permanently
reinvested outside the United States and that shows a
specific amount of tax liability attributable to the earnings,
the amount equal to the amount of the liability divided by
eighty-five thousandths (0.085).
The amounts described in clauses (B) and (C) shall be treated
as being zero (0) if there is no statement or the statement fails
to show a specific amount of earnings or liability, whichever
applies.
(2) The amount of dividends taken into account under
subsection (a) may not exceed the excess (if any) of the
remainder of:
(A) the dividends received during the taxable year by the
shareholder from controlled foreign corporations; minus
(B) the annual average for the base period years of:
(i) the dividends received during each base period year
by the shareholder from controlled foreign corporations;
(ii) the amounts includable in the shareholder's gross
income for each base period year under Section
951(a)(1)(B) of the Internal Revenue Code with respect
to controlled foreign corporations; and
(iii) the amounts that would have been included for each
base period year but for Section 959(a) of the Internal
Revenue Code with respect to controlled foreign
corporations.
The amount taken into account under item (iii) for any
base period year may not include any amount that is not
includable in gross income by reason of an amount
described in item (ii) with respect to a prior taxable year.
Amounts described in clause (B) for any base period year
must be the amounts shown on the most recent return filed
for that year, except that amended returns filed after June 30,
2012, may not be taken into account.
(3) The amount of dividends that would (but for this
subdivision) be taken into account under subsection (a) shall
be reduced by the excess (if any) of:
(A) the amount of indebtedness of the controlled foreign
corporation to any related person (as defined in Section
954(d)(3)) of the Internal Revenue Code as of the close of
the taxable year for which the election under this section is
in effect; minus
(B) the amount of indebtedness of the controlled foreign
corporation to any related person (as so defined) as of
December 31, 2012.
All controlled foreign corporations with respect to which the
taxpayer is a United States shareholder shall be treated as one
(1) controlled foreign corporation for purposes of this
subdivision.
(4) Subsection (a) does not apply to any dividend received by
a United States shareholder unless the amount of the dividend
is invested in Indiana under a domestic reinvestment plan
that:
(A) is approved by:
(i) the taxpayer's president, chief executive officer, or
comparable official before the payment of the dividend
and subsequently approved by the taxpayer's board of
directors, management committee, executive committee,
or similar body; and
(ii) the Indiana economic development corporation; and
(B) provides for the reinvestment of the dividend in
Indiana (other than as payment for executive
compensation), including as a source for the funding of
worker hiring and training, infrastructure, research and
development, capital investments, or the financial
stabilization of the corporation for the purposes of job
retention or creation.
(c) For purposes of this section, the following apply:
(1) "Applicable financial statement" refers, with respect to a
United States shareholder, to the most recently audited
financial statement (including notes and other documents
which accompany such a statement) that includes the
shareholder:
(A) that is certified on or before the date established by the
Indiana economic development corporation for the
corporation, as being prepared in accordance with
generally accepted accounting principles; and
(B) that is used for the purposes of a statement or report:
(i) to creditors;
(ii) to shareholders; or
(iii) for any other substantial nontax purpose.
In the case of a corporation required to file a financial
statement with the United States Securities and Exchange
Commission, the term means the most recent financial
statement filed on or before the date established by the
Indiana economic development corporation.
(2) "Base period years" means:
(A) the three (3) taxable years:
(i) that are among the five (5) most recent taxable years
ending on or before the date established by the Indiana
economic development corporation for the corporation;
and
(ii) that are determined by disregarding one (1) taxable
year for which the sum of the amounts described in
subsection (b)(2)(B)(i), (b)(2)(B)(ii), and (b)(2)(B)(iii) is
the largest and the one (1) taxable year for which the
sum is the smallest.
(B) If the taxpayer has fewer than five (5) taxable years
ending on or before the date established by the Indiana
economic development corporation for the corporation,
then instead of applying clause (A), the base period years
include all the taxable years of the taxpayer ending on or
before the date established by the Indiana economic
development corporation for the corporation.
(C) With regard to mergers, acquisitions, spin-offs, or
similar situations:
(i) Rules similar to the rules of subparagraphs (A) and
(B) of Section 41(f)(3) of the Internal Revenue Code
apply for purposes of this subdivision.
(ii) If there is a distribution to which Section 355 of the
Internal Revenue Code (or so much of Section 356 of the
Internal Revenue Code as relates to Section 355 of the
Internal Revenue Code) applies during the five (5) year
period referred to in clause (A)(i) and the controlled
corporation (within the meaning of Section 355 of the
Internal Revenue Code) is a United States shareholder,
the controlled corporation shall be treated as being in
existence during the period that the distributing
corporation (within the meaning of Section 355 of the
Internal Revenue Code) is in existence. In addition, for
purposes of applying subsection (b)(2) to the controlled
corporation and the distributing corporation, amounts
described in subsection (b)(2)(B) that are received or
includable by the distributing corporation or controlled
corporation (whichever applies) before the distribution
from a controlled foreign corporation shall be allocated
between these corporations in proportion to their
respective interests as United States shareholders of the
controlled foreign corporation immediately after the
distribution. However, this allocation does not apply if
neither the controlled corporation nor the distributing
corporation is a United States shareholder of the
controlled foreign corporation immediately after the
distribution.
(3) "Dividend" does not include amounts includable in gross
income as a dividend under Section 78 of the Internal
Revenue Code, Section 367 of the Internal Revenue Code, or
Section 1248 of the Internal Revenue Code. However, in the
case of a liquidation under Section 332 of the Internal
Revenue Code to which Section 367(b) of the Internal
Revenue Code applies, the exclusion does not apply to the
extent the United States shareholder actually receives cash as
part of the liquidation.
(4) A deduction is not allowed under any other law for any
dividend for which a deduction is allowed under this section.
(5) With regard to controlled groups the following apply:
(A) All United States shareholders that are members of an
affiliated group filing a consolidated return under Section
1501 of the Internal Revenue Code shall be treated as one
(1) United States shareholder.
(B) All corporations that are treated as a single employer
under Section 52(a) of the Internal Revenue Code shall be
limited to one (1) ceiling amount in subsection (b)(1)(A),
and the amount shall be divided among these corporations
as prescribed by the Indiana economic development
corporation.
(C) If a financial statement is an applicable financial
statement for more than one (1) United States shareholder,
the amount applicable under subsection (b)(1)(B) or
(b)(1)(C) shall be divided among these shareholders as
prescribed by the Indiana economic development
corporation.
(d) No other credit or deduction is allowed under any other law
for the following:
(1) Any taxes paid or accrued (or treated as paid or accrued)
with respect to the deductible part of:
(A) any dividend; or
(B) any amount described in subsection (a)(2) which is
included in income under Section 951(a)(1)(A) of the
Internal Revenue Code.
No deduction is allowed under this section for any tax for
which credit is not allowable by reason of this subdivision.
(2) Expenses properly allocated and apportioned to the
deductible part described in subdivision (1).
For purposes of this section, unless the taxpayer otherwise
specifies, the deductible part of any dividend or other amount is the
amount that bears the same ratio to the amount of the dividend or
other amount as the amount allowed as a deduction under
subsection (a) for the taxable year bears to the amount described
in subsection (b)(2)(A) for that year.
(e) A deduction under this section may not reduce the adjusted
gross income of any United States shareholder for any taxable year
to less than zero (0). The excess of the amount of dividends taken
into account under subsection (a) over the deduction allowed under
subsection (a) for these dividends for any taxable year may not be
taken into account in determining the amount of any net operating
loss deductible from adjusted gross income for the taxable year.
(f) A taxpayer may elect to apply this section to:
(1) the taxpayer's last taxable year that begins in the year the
deduction is approved by the Indiana economic development
corporation; or
(2) the taxpayer's first taxable year that begins in the year
after the year the deduction is approved by the Indiana
economic development corporation.
An election may be made for a taxable year only if it is made
before the due date (including extensions) for filing the return of
tax for that taxable year. An election may cover not more than two
(2) taxable years for any particular taxpayer.
(b) Each taxpayer shall notify the department of any modification of:
(1) a federal income tax return filed by the taxpayer after January 1, 1978; or
(2) the taxpayer's federal income tax liability for a taxable year which begins after December 31, 1977.
The taxpayer shall file the notice on the form prescribed by the department within one hundred twenty (120) days after the modification is made if the modification was made before January 1, 2011, and one hundred eighty (180) days after the modification is made if the modification is made after December 31, 2010.
(c) If the federal modification results in a change in the taxpayer's federal or Indiana adjusted gross income, the taxpayer shall file an Indiana amended return within one hundred twenty (120) days after the modification is made if the modification was made before January
1, 2011, and one hundred eighty (180) days after the modification
is made if the modification is made after December 31, 2010.
(b) This chapter expires January 1, 2020.
(b) Any tax credit previously awarded but not claimed may not be carried over to a taxable year beginning during the period January 1, 2012, through December 31, 2013, and must be carried forward to a taxable year that begins after December 31, 2013, and before January 1, 2016.
(c) This chapter expires January 1, 2020.
(b) Any tax credit previously awarded but not claimed may not be carried over to a taxable year beginning during the period January 1, 2012, through December 31, 2013, and must be carried forward to a taxable year that begins after December 31, 2013, and before January 1, 2016.
(c) This chapter expires January 1, 2020.
(b) Any tax credit previously awarded but not claimed may not be carried over to a taxable year beginning during the period January 1, 2012, through December 31, 2013, and must be carried forward to a taxable year that begins after December 31, 2013, and before January 1, 2016.
(c) This chapter expires January 1, 2020.
awarded under this chapter for costs incurred after December 31,
2011.
(b) Any tax credit previously awarded but not claimed may not
be carried over to a taxable year beginning during the period
January 1, 2012, through December 31, 2013, and must be carried
forward to a taxable year that begins after December 31, 2013, and
before January 1, 2016.
(c) This chapter expires January 1, 2020.
(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.
(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 plus 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
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 plus 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
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).
(b) All bonds issued after March 11, 1933, and before March 12, 1959, by any municipality in this state under the provisions of any statute whereby the terms thereof provide for the payment of such bonds out of the funds derived from the revenues of any municipally owned utility or which are to be paid by pledging the physical property of any such municipally owned utility, or any bonds issued pledging both the physical property and the revenues of such utility, or any bonds issued for additions to or improvements to be made to such municipally owned utility, or any bonds issued by any municipality to be paid out of taxes levied by such municipality for the acquiring, purchase, construction, or the reconstruction of a utility, or any part thereof, shall be exempt from taxation for all purposes except a state inheritance tax imposed under IC 6-4.1.
(c) This section does not apply to measuring the franchise tax imposed on the privilege of transacting the business of a financial institution in Indiana under IC 6-5.5.
(d) No other statute exempting interest paid on debt obligations of:
(1) a state or local public entity, including an agency, a government corporation, or an authority; or
(2) a corporation or other entity leasing real or personal property to an entity described in subdivision (1);
applies to measuring of the franchise tax imposed on financial institutions under IC 6-5.5.
services that the department feels are necessary to properly administer
and collect the listed taxes.
(b) A contract entered into under this section must require the
person providing the service to comply with the requirements
governing the administration and collection of taxes by the department.
(c) The department shall enter into a contract with persons
outside the department to recommend to the department the
proper distribution, apportionment, or allocation of income and
deductions between and among two (2) or more organizations,
trades, or businesses owned or controlled directly or indirectly by
the same interests in the manner provided in IC 6-3-2-2(m).
(b) If the department reasonably believes that a person has not reported the proper amount of tax due, the department shall make a proposed assessment of the amount of the unpaid tax on the basis of the best information available to the department. The amount of the assessment is considered a tax payment not made by the due date and is subject to IC 6-8.1-10 concerning the imposition of penalties and interest. The department shall send the person a notice of the proposed assessment through the United States mail.
(c) If the person has a surety bond guaranteeing payment of the tax for which the proposed assessment is made, the department shall furnish a copy of the proposed assessment to the surety. The notice of proposed assessment is prima facie evidence that the department's claim for the unpaid tax is valid. The burden of proving that the proposed assessment is wrong rests with the person against whom the proposed assessment is made.
(d) The notice shall state that the person has forty-five (45) days from the date the notice is mailed, if the notice was mailed before January 1, 2011, and sixty (60) days from the date the notice is mailed, if the notice was mailed after December 31, 2010, to pay the assessment or to file a written protest. If the person files a protest and requires a hearing on the protest, the department shall:
(1) set the hearing at the department's earliest convenient time; and
(2) notify the person by United States mail of the time, date, and location of the hearing.
(e) The department may hold the hearing at the location of its choice within Indiana if that location complies with IC 6-8.1-3-8.5.
(f) No later than sixty (60) days after conducting a hearing on a protest, or after making a decision on a protest when no hearing is requested, the department shall issue a letter of findings and shall send a copy of the letter through the United States mail to the person who filed the protest and to the person's surety, if the surety was notified of the proposed assessment under subsection (b). The department may continue the hearing until a later date if the taxpayer presents additional information at the hearing or the taxpayer requests an opportunity to present additional information after the hearing.
(g) A person that disagrees with a decision in a letter of findings may request a rehearing not more than thirty (30) days after the date on which the letter of findings is issued by the department. The department shall consider the request and may grant the rehearing if the department reasonably believes that a rehearing would be in the best interests of the taxpayer and the state.
(h) If a person disagrees with a decision in a letter of findings, the person may appeal the decision to the tax court. However, the tax court does not have jurisdiction to hear an appeal that is filed more than sixty (60) days after the date on which:
(1) the letter of findings is issued by the department, if the person does not make a timely request for a rehearing under subsection (g) on the letter of findings; or
(2) the department issues a denial of the person's timely request for a rehearing under subsection (g) on the letter of findings.
(i) The tax court shall hear an appeal under subsection (h) de novo and without a jury. The tax court may do the following:
(1) Uphold or deny any part of the assessment that is appealed.
(2) Assess the court costs in a manner that the court believes to be equitable.
(3) Take any other action permitted by law.
(j) The department shall demand payment, as provided in IC 6-8.1-8-2(a), of any part of the proposed tax assessment, interest, and penalties that it finds owing because:
(1) the person failed to properly respond within the forty-five (45) day period;
(2) the person requested a hearing but failed to appear at that hearing; or
(3) after consideration of the evidence presented in the protest or hearing, the department finds that the person still owes tax.
(k) The department shall make the demand for payment in the manner provided in IC 6-8.1-8-2.
(l) Subsection (b) does not apply to a motor carrier fuel tax return.
(1) That the person has ten (10) days from the date the department mails the notice to either pay the amount demanded or show reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of a tax warrant.
(3) The earliest date on which a tax warrant may be filed and recorded.
(4) The statutory authority for the department to levy against a person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show reasonable cause for not paying the amount demanded within the ten (10) day period, the department may issue a tax warrant for the amount of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs, and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the warrant with the circuit court clerk of any county in which the person owns property until at least twenty (20) days after the date the demand notice was mailed to the taxpayer. The department may also send the warrant to the sheriff of any county in which the person owns property and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues the warrant.
(d) When the circuit court clerk receives a tax warrant from the department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant
becomes a judgment against the person owing the tax. The judgment
creates a lien in favor of the state that attaches to all the person's
interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10) years
from the date the judgment is filed. The department may renew the
judgment for additional ten (10) year periods by filing an alias tax
warrant with the circuit court clerk of the county in which the judgment
previously existed.
(g) A judgment arising from a tax warrant in a county may be
released by the department:
(1) after the judgment, including all accrued interest to the date of
payment, has been fully satisfied; or
(2) if the department determines that the tax assessment or the
issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant was
in error, the department shall mail a release of the judgment to the
taxpayer and the circuit court clerk of each county where the warrant
was filed. The department shall mail the release as soon as possible but
no later than seven (7) days after:
(1) the determination by the department that the filing of the
warrant was in error; and
(2) the receipt of information by the department that the judgment
has been recorded under subsection (d).
(i) If the department determines that a judgment described in
subsection (h) is obstructing a lawful transaction, the department shall
mail a release of the judgment to the taxpayer and the circuit court
clerk of each county where the judgment was filed immediately upon
making the determination.
(j) A release issued under subsection (h) or (i) must state that the
filing of the tax warrant was in error. Upon the request of the taxpayer,
the department shall mail a copy of a release issued under subsection
(h) or (i) to each major credit reporting company located in each county
where the judgment was filed.
(k) The commissioner shall notify each state agency or officer
supplied with a tax warrant list of the issuance of a release under
subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the sheriff
shall disburse the money collected in the manner provided in section
3(c) of this chapter. If a judgment has been partially or fully satisfied
by a person's surety, the surety becomes subrogated to the department's
rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected;
or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for
the part of the judgment not remitted to the department.
(b) Except as provided in IC 6-8.1-5-3, no demand notice, warrant, levy, or proceeding in court for the collection of a listed tax or any penalties and interest on a listed tax may be issued, commenced, or conducted against a taxpayer and no lien on the taxpayer's property may be imposed until after the later of the following:
(1) The expiration of the period in which the taxpayer may appeal the listed tax to the tax court.
(2) A decision of the tax court concerning the listed tax becomes final, if the taxpayer filed a timely appeal.
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for the state
gross retail or use tax, the gasoline tax, the special fuel tax, the motor
carrier fuel tax, the oil inspection fee, or the petroleum severance tax
is the end of the calendar year which contains the taxable period for
which the return is filed. The claim must set forth the amount of the
refund to which the person is entitled and the reasons that the person
is entitled to the refund.
(b) When the department receives a claim for refund, the
department shall consider the claim for refund and shall, if the taxpayer
requests, hold a hearing on the claim for refund to obtain and consider
additional evidence. After considering the claim and all evidence
relevant to the claim, the department shall issue a decision on the
claim, stating the part, if any, of the refund allowed and containing a
statement of the reasons for any part of the refund that is denied. The
department shall mail a copy of the decision to the person who filed the
claim. If the department allows the full amount of the refund claim, a
warrant for the payment of the claim is sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether or
not the person protested the tax payment or whether or not the person
has accepted a refund. The person must file the appeal with the tax
court. The tax court does not have jurisdiction to hear a refund appeal
suit, if:
(1) the appeal is filed more than three (3) years after the date the
claim for refund was filed with the department;
(2) the appeal is filed more than ninety (90) days after the date the
department mails the decision of denial to the person; or
(3) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files the claim for refund with the department.
(d) The tax court shall hear the appeal de novo and without a jury,
and after the hearing may order or deny any part of the appealed
refund. The court may assess the court costs in any manner that it feels
is equitable. The court may enjoin the collection of any of the listed
taxes under IC 33-26-6-2. The court may also allow a refund of taxes,
interest, and penalties that have been paid to and collected by the
department.
(e) With respect to the motor vehicle excise tax, this section applies
only to penalties and interest paid on assessments of the motor vehicle
excise tax. Any other overpayment of the motor vehicle excise tax is
subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is
modified by the Internal Revenue Service, and the modification would
result in a reduction of the tax legally due, the due date by which the
taxpayer must file a claim for refund with the department is the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months one hundred eighty (180) days
after the date on which the taxpayer is notified of the modification
by the Internal Revenue Service.
(g) If an agreement to extend the assessment time period is entered
into under IC 6-8.1-5-2(h), the period during which a person may file
a claim for a refund under subsection (a) is extended to the same date
to which the assessment time period is extended.
(h) If a taxpayer's claim for a refund of gross retail or use tax is
based on:
(1) IC 6-2.5-4-5(c)(3); or
(2) the exemption provided by IC 6-2.5-5-5.1 for electrical
energy, natural or artificial gas, water, steam, and steam heat;
the person must file the claim with the department within one (1)
year after the date of payment.
(b) Subject to subsection (c), if a court determines that a person has paid more tax for a taxable year than is legally due, the department shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity"means a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2), a partnership, a limited liability company, or a limited liability partnership and "pass through income" means a person's distributive share of adjusted gross income for a taxable year attributable to the person's interest in a pass through entity. This subsection applies to a person's overpayment of adjusted gross income tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect to
the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning before January
1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is not
includible in the person's adjusted gross income derived from
sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5). and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability for
taxes that have been assessed and are currently due as provided in
subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in taxable
years beginning after December 31, 2008. If the person, including any
successor to the person's interest in the overpayment, does not have
sufficient liability for listed taxes against which to credit all the
remaining overpayment in a taxable year beginning after December 31,
2008, and ending before January 1, 2019, the taxpayer is not entitled
for any taxable year ending after December 31, 2018, to have any part
of the remaining overpayment applied, refunded, or credited to the
person's liability for listed taxes. If an overpayment or part of an
overpayment is required to be applied as a credit under this subsection
to the person's liability for listed taxes for a taxable year beginning after
December 31, 2008, and has not been determined by the department or
a court to meet the conditions of subdivision (3) by the due date of the
person's return for a listed tax for a taxable year beginning after
December 31, 2008, the department shall refund to the person that part
of the overpayment that should have been applied as a credit for such
taxable year within ninety (90) days of the date that the department or
a court makes the determination that the overpayment meets the
conditions of subdivision (3). However, the department may establish
a program to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the form
and in the schedule specified by the department that identifies under
penalties of perjury the home state or other jurisdiction where the
income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited against
a current or future tax liability within ninety (90) days after the date the
refund claim is filed, the date the tax payment was due, or the date the
tax was paid, whichever is latest, accrues interest from the date the
refund claim is filed at the rate established under IC 6-8.1-10-1 until a
date, determined by the department, that does not precede by more than
thirty (30) days, the date on which the refund or credit is made. As used
in this subsection, "refund claim" includes an amended return that
indicates an overpayment of tax.
(1) Establish the educational goals of the state, developing standards and objectives for local school corporations.
(2) Assess the attainment of the established goals.
(3) Assure compliance with established standards and objectives.
(4) Coordinate with the commission for higher education (IC 21-18-1) and the department of workforce development (IC 22-4.1-2) to develop entrepreneurship education programs for elementary and secondary education, higher education, and individuals in the work force.
(b) The commission shall require each state educational institution to expand technology and innovation commercialization programs.
(b) If a taxpayer
(1) the issues that the petitioner will raise in the original tax appeal; and
(2) the equitable considerations for which the tax court should order the collection of the tax to be enjoined.
(c) After a hearing on the petition filed under subsection (b), the tax court may enjoin the collection of the tax pending the original tax appeal, if the tax court finds that:
(1) the issues raised by the original tax appeal are substantial;
(2) the petitioner has a reasonable opportunity to prevail in the original tax appeal; and
(3) the equitable considerations favoring the enjoining of the collection of the tax outweigh the state's interests in collecting the tax pending the original tax appeal.
(d) This section does not apply to a final determination of the Indiana gaming commission under IC 4-32.2.
(e) This section applies to a final determination made by the department of state revenue concerning the gaming card excise tax established under IC 4-32.2-10.
(b) After a hearing on a petition filed under subsection (a), the tax court may:
(1) enjoin a collection action that violates IC 6-8.1-8-16;
(2) order the release of any lien imposed in violation of IC 6-8.1-8-16; and
(3) order a refund of any amount that was collected in violation of IC 6-8.1-8-16.
(1) the unit's:
(A) certified shares of the county adjusted gross income tax under IC 6-3.5-1.1;
(B) distributive share of the county option income tax under IC 6-3.5-6; or
(C) distributions of county economic development income tax revenue under IC 6-3.5-7;
(2) any other source legally available to the unit for the purposes of this chapter; or
(3) any combination of revenues under subdivisions (1) through (2);
in any amount to pay amounts payable under section 25.1 or 25.2 of this chapter.
(b) The legislative body may covenant to adopt an ordinance to increase its tax rate under the county option income tax or any other revenues at the time it is necessary to raise funds to pay any amounts payable under section 25.1 or 25.2 of this chapter.
(c) The commission may pledge revenues received or to be received from any source legally available to the commission for the purposes of this chapter in any amount to pay amounts payable under section 25.1 or 25.2 of this chapter.
(d) The pledge or the covenant under this section may be for the life of the bonds issued under section 25.1 of this chapter, the term of a lease entered into under section 25.2 of this chapter, or for a shorter period as determined by the legislative body. Money pledged by the legislative body under this section shall be considered revenues or other money available to the commission under sections 25.1 through 25.2 of this chapter.
(e) The general assembly covenants not to impair this pledge or covenant so long as any bonds issued under section 25.1 of this chapter are outstanding or as long as any lease entered into under section 25.2
of this chapter is still in effect. The pledge or covenant shall be
enforced as provided in IC 5-1-14-4.
(1) the unit's:
(A) certified shares of the county adjusted gross income tax under IC 6-3.5-1.1;
(B) distributive share of the county option income tax under IC 6-3.5-6; or
(C) distributions of county economic development income tax revenue under IC 6-3.5-7;
(2) any other source legally available to the unit for the purposes of this chapter; or
(3) combination of revenues under subdivisions (1) through (2);
in any amount to pay amounts payable under section 17 or 17.1 of this chapter.
(b) The legislative body may covenant to adopt an ordinance to increase its tax rate under the county option income tax or any other revenues at the time it is necessary to raise funds to pay any amounts payable under section 17 or 17.1 of this chapter.
(c) The commission may pledge revenues received or to be received from any source legally available to it for the purposes of this chapter in any amount to pay amounts payable under section 17 or 17.1 of this chapter.
(d) The pledge or the covenant under this section may be for the life of the bonds issued under section 17 of this chapter, the term of a lease entered into under section 17.1 of this chapter, or for a shorter period as determined by the legislative body. Money pledged by the legislative body under this section shall be considered revenues or other money available to the commission under sections 17 through 17.1 of this chapter.
(e) The general assembly covenants not to impair this pledge or covenant so long as any bonds issued under section 17 of this chapter are outstanding or as long as any lease entered into under section 17.1 of this chapter is still in effect. The pledge or covenant shall be enforced as provided in IC 5-1-14-4.
officer of each county and each municipality that is a member of the
development authority shall transfer the amount determined under
subsection (b) to the development authority for deposit in the
development authority fund.
(b) The amount of the transfer required each year by subsection (a)
from each county and each municipality is equal to the following:
(1) Except as provided in subdivision (2), the amount that
would be distributed to the county or the municipality as certified
distributions of county economic development income tax
revenue raised from a county economic development income tax
rate of five-hundredths of one percent (0.05%) in the county.
(2) In the case of a county or municipality that becomes a
member of a development authority after June 30, 2011, and
before July 1, 2013, the amount that would be distributed to
the county or municipality as certified distributions of county
economic development income tax revenue raised from a
county economic development income tax rate of twenty-five
thousandths of one percent (0.025%) in the county.
(c) Notwithstanding subsection (b), if the additional county
economic development income tax under IC 6-3.5-7-28 is in effect in
a county, the obligations of the county and each municipality in the
county under this section are satisfied by the transfer to the
development fund of all county economic development income tax
revenue derived from the additional tax and deposited in the county
regional development authority fund.
(d) The following apply to the transfers required by this section:
(1) The transfers shall be made without appropriation by the fiscal
body of the county or the fiscal body of the municipality.
(2) Except as provided in subdivision (3), the fiscal officer of
each county and each municipality that is a member of the
development authority shall transfer twenty-five percent (25%) of
the total transfers due for the year before the last business day of
January, April, July, and October of each year.
(3) County economic development income tax revenue derived
from the additional county economic development income tax
under IC 6-3.5-7-28 must be transferred to the development fund
not more than thirty (30) days after being deposited in the county
regional development fund.
(4) This subdivision does not apply to a county in which the
additional county economic development income tax under
IC 6-3.5-7-28 has been imposed or to any municipality in the
county. The transfers required by this section may be made from
any local revenue (other than property tax revenue) of the county
or municipality, including excise tax revenue, income tax
revenue, local option tax revenue, riverboat tax revenue,
distributions, incentive payments, or money deposited in the
county's or municipality's local major moves construction fund
under IC 8-14-16.
(b) This SECTION expires January 1, 2016.
(b) This SECTION expires January 1, 2014.
(1) pays adjusted gross income tax under IC 6-3-1 through IC 6-3-7; and
(2) has a taxable year that begins before July 1, 2012, and ends after June 30, 2012.
(b) Subject to subsection (c), the rate of the adjusted gross income tax imposed under IC 6-3-2-1 for that taxable year is a rate equal to the sum of:
(1) eight and five-tenths percent (8.5%) multiplied by a fraction, the numerator of which is the number of days in the taxpayer's taxable year that occurred before July 1, 2012, and the denominator of which is the total number of days in the taxable year; and
(2) six and five-tenths percent (6.5%) multiplied by a fraction, the numerator of which is the number of days in the taxpayer's taxable year that occurred after June 30, 2012, and the denominator of which is the total number of days in the taxable year.
(c) However, the rate determined under this section shall be rounded to the nearest one-hundredth of one percent (0.01%).
(d) This SECTION expires January 1, 2015.
