Subchapter S corporations are exempt from this tax. Net income for purposes of supplemental net income tax is adjusted gross income derived from Indiana sources minus the greater of the adjusted gross income tax or the gross income tax. Special provisions apply to domestic insurance companies. Indiana allows deductions of most foreign source income from the supplemental net and corporate adjusted gross base before computation of the tax. Generally food, not including such items as candy, soft drinks or restaurant meals, and prescription drugs are also exempt.
Personal property is assessed annually.
Any property owner in a locally designated Economic Revitalization Area who makes improvements to the real property or installs new manufacturing equipment is eligible for property tax abatement. Land does not qualify for abatement. Used manufacturing equipment can also qualify as long as such equipment is new to the state of Indiana. Equipment not used in direct production, such as office equipment or distribution equipment, does not qualify for abatement. Personal property tax abatement is a declining percentage of the assessed value of the newly installed manufacturing equipment, based on a one to ten year time period and percentages as determined by the local governing body.