Corporations pay the greater of the adjusted gross income tax or the gross income tax. The Corporate Gross Income Tax is a levied tax on the gross receipts of corporations doing business in Indiana. Receipts from the sale of goods in interstate commerce are not taxable under the corporate gross income tax. 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.
Numerous credits are available to Indiana corporations such as research credits, enterprise zone, and industrial recovery credits. 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.