reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-33. "Bonus Depreciation"

Sec. 33. As used in this article, "bonus depreciation" means an amount equal to that part of any depreciation allowance allowed in computing the taxpayer's federal adjusted gross income or federal taxable income that is attributable to the additional first-year special depreciation allowance (bonus depreciation) for qualified property allowed under Section 168(k) of the Internal Revenue Code, including the special depreciation allowance for 50-percent bonus depreciation property. For taxable years beginning after December 31, 2017, the term does not include any amount of additional first-year special depreciation allowance under Section 168(k) of the Internal Revenue Code in the amount of adjusted gross income realized on the exchange of property that otherwise would have been deferred under Section 1031 of the Internal Revenue Code in effect on January 1, 2017, if:
(1) the exchange would have been eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017;
(2) the exchange is not eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code; and
(3) the taxpayer claimed a deduction for the additional first-year special depreciation allowance under Section 168(k) of the Internal Revenue Code with regard to the acquired property.
For purposes of this section, if the taxpayer elected to claim a deduction under Section 179 of the Internal Revenue Code with regard to an item of acquired property, the adjusted gross income realized on the exchange must be reduced (but not below zero dollars ($0)) by the amount of the deduction under Section 179 of the Internal Revenue Code elected to be claimed on the acquired property.
As added by P.L.105-2003, SEC.3. Amended by P.L.246-2005, SEC.71; P.L.234-2019, SEC.9.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-34. "Qualified Military Income"

Sec. 34. "Qualified military income" means the following:
(1) Wages that are paid to a member of a reserve component of the armed forces of the United States or the National Guard for the member's service in the reserve component or National Guard.
(2) For a member of an active component of the armed forces of the United States one hundred percent (100%) of wages that are paid to the member for taxable years beginning in 2024 and thereafter for service in the active component.
As added by P.L.144-2007, SEC.4. Amended by P.L.121-2023, SEC.1.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-34.5. "Captive Real Estate Investment Trust"

Sec. 34.5. (a) Except as provided in subsection (b), "captive real estate investment trust" means a corporation, a trust, or an association:
(1) that is considered a real estate investment trust for the taxable year under Section 856 of the Internal Revenue Code;
(2) that is not regularly traded on an established securities market; and
(3) in which more than fifty percent (50%) of the:
(A) voting power;
(B) beneficial interests; or
(C) shares;
are owned or controlled, directly or constructively, by a single entity that is subject to Subchapter C of Chapter 1 of the Internal Revenue Code.
(b) The term does not include a corporation, a trust, or an association in which more than fifty percent (50%) of the entity's voting power, beneficial interests, or shares are owned by a single entity described in subsection (a)(3) that is owned or controlled, directly or constructively, by:
(1) a corporation, a trust, or an association that is considered a real estate investment trust under Section 856 of the Internal Revenue Code;
(2) a person exempt from taxation under Section 501 of the Internal Revenue Code;
(3) a listed property trust or other foreign real estate investment trust that is organized in a country that has a tax treaty with the United States Treasury Department governing the tax treatment of these trusts; or
(4) a real estate investment trust that:
(A) is intended to become regularly traded on an established securities market; and
(B) satisfies the requirements of Section 856(a)(5) and Section 856(a)(6) of the Internal Revenue Code under Section 856(h) of the Internal Revenue Code.
(c) For purposes of this section, the constructive ownership rules of Section 318 of the Internal Revenue Code, as modified by Section 856(d)(5) of the Internal Revenue Code, apply to the determination of the ownership of stock, assets, or net profits of any person.
As added by P.L.211-2007, SEC.20. Amended by P.L.182-2009(ss), SEC.189.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-35. "Pass Through Entity"

Sec. 35. As used in this article, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a trust;
(4) an estate;
(5) a limited liability company; or
(6) a limited liability partnership.
As added by P.L.182-2009(ss), SEC.190. Amended by P.L.159-2021, SEC.10.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-36. "Eligible Community Foundation"

Sec. 36. As used in this article, "eligible community foundation" means an organization that:
(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code;
(2) satisfies the public support test of Section 170(b)(1)(A)(vi) of the Internal Revenue Code;
(3) is an autonomous, nonsectarian philanthropic institution with permanent, component funds established by many separate donors;
(4) is accredited under national standards for United States Community Foundations established by the Community Foundations National Standards Board; and
(5) supports a broad range of charitable activities within a specific geographic area in Indiana.
The term includes an affiliate fund of an eligible community foundation.
As added by P.L.50-2015, SEC.1.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-37. "Telecommunication Services"

Sec. 37. The term "telecommunication services" has the meaning set forth in IC 6-2.5-1-27.5, except that telecommunication services also includes those items described in the following:
(1) IC 6-2.5-1-27.5(c)(1) associated with telecommunications services.
(2) IC 6-2.5-1-27.5(c)(4) associated with telecommunications services or the provision of services described in subdivision (4).
(3) IC 6-2.5-1-27.5(c)(6).
(4) IC 6-2.5-1-27.5(c)(7).
(5) IC 6-2.5-1-27.5(c)(8) associated with telecommunications services.
(6) IC 6-2.5-1-27.5(c)(9)(B) and IC 6-2.5-1-27.5(c)(9)(C), except to the extent the item consists of specified digital products under IC 6-2.5-1-26.5.
As added by P.L.158-2019, SEC.5.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-38. "Broadcast Services"

Sec. 38. The term "broadcast services" means the transmission, conveyance, and routing of video broadcasts, regardless of the medium, including the furnishing of transmission, conveyance, and routing of the services by a television broadcast network, a cable program network, or a television distribution company. The term also includes any advertising or promotional activity furnished in conjunction with the broadcast services.
As added by P.L.158-2019, SEC.6.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-39. "Preliminary Federal Net Operating Loss"

Sec. 39. (a) The term "preliminary federal net operating loss" means:
(1) in the case of a taxpayer that has a federal net operating loss for a taxable year, the taxpayer's federal net operating loss under Section 172 of the Internal Revenue Code; and
(2) in the case of a taxpayer that does not have a federal net operating loss for a taxable year:
(A) the taxpayer's:
(i) in the case of an individual, or, except as provided in item (iii) or (iv), a corporation, federal taxable income as defined in Section 63 of the Internal Revenue Code;
(ii) in the case of an estate or trust, federal taxable income as defined in Section 641(b) of the Internal Revenue Code;
(iii) in the case of an insurance company subject to the tax imposed under Section 831 of the Internal Revenue Code, federal taxable income as defined in Section 832(b) of the Internal Revenue Code; and
(iv) in the case of a life insurance company subject to the tax imposed under Section 801(a) of the Internal Revenue Code, federal life insurance company taxable income as defined in Section 801(b) of the Internal Revenue Code; plus
(B) any amounts that are disallowed for the taxpayer in computing a federal net operating loss for a taxable year, excluding any amounts used in determining a separately stated net operating loss; minus
(C) any amounts by which a federal net operating loss is increased for a taxable year, excluding any amounts used in determining a separately stated net operating loss.
For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a preliminary federal net operating loss described in subdivision (1) must be expressed as a negative number, and a preliminary federal net operating loss described in subdivision (2) may be expressed as a positive or negative number, subject to the determination under subdivision (2).
(b) The term does not include a separately stated net operating loss, or any amounts used in determining a separately stated net operating loss.
As added by P.L.194-2023, SEC.9.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 1. Definitions › 6-3-1-40. "Separately Stated Net Operating Loss"

Sec. 40. (a) The term "separately stated net operating loss" means a federal net operating loss, or a portion of a federal net operating loss, determined according to the Internal Revenue Code that is:
(1) computed as an allowable federal net operating loss with regard to a taxable year; and
(2) required to be carried forward or carried back under the Internal Revenue Code;
regardless of whether the taxpayer had federal taxable income for the year of the loss.
(b) A separately stated net operating loss for a taxable year includes:
(1) an excess business loss for the taxable year under Section 461(l) of the Internal Revenue Code;
(2) a federal net operating loss for a trade or business that is not allowable in the taxable year in which the loss was incurred as a result of the application of Section 512(a)(6)(C) of the Internal Revenue Code, with the federal net operating loss determined separately for each trade or business; and
(3) a federal net operating loss that is not affected by excess inclusion income under Section 860E of the Internal Revenue Code.
(c) For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a separately stated net operating loss must be expressed as a negative number.
As added by P.L.194-2023, SEC.10.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-0.3. Intent of General Assembly Adding Section 2.3 of This Chapter

Sec. 0.3. It is the intent of the general assembly that the addition of section 2.3 of this chapter by P.L.70-1993 be construed liberally in favor of persons, corporations, partnerships, or other entities contracting with commercial printers.
As added by P.L.220-2011, SEC.138.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-1.9. "Federal Taxable Income" for Determination of State Net Operating Loss Deduction

Sec. 1.9. (a) This section applies only to a taxable year ending after June 30, 2021, and beginning before January 1, 2023.
(b) For purposes of determining a net operating loss deduction under IC 6-3-2-2.5 or IC 6-3-2-2.6, the term "federal taxable income" means:
(1) in the case of an individual, or, except as provided in subdivision (3) or (4), a corporation, federal taxable income as defined in Section 63 of the Internal Revenue Code;
(2) in the case of an estate or trust, federal taxable income as defined in Section 641(b) of the Internal Revenue Code;
(3) in the case of an insurance company subject to the tax imposed under Section 831 of the Internal Revenue Code, federal taxable income as defined in Section 832(b) of the Internal Revenue Code; and
(4) in the case of a life insurance company subject to the tax imposed under Section 801(a) of the Internal Revenue Code, federal life insurance company taxable income as defined in Section 801(b) of the Internal Revenue Code.
As added by P.L.194-2023, SEC.11.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-2.2. Interest Income, Discounts, and Receipts Attributable to State

Sec. 2.2. (a) Interest income and other receipts from assets in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property are attributable to this state if the security or sale property is located in Indiana.
(b) Interest income and other receipts from consumer loans not secured by real or tangible personal property are attributable to this state if the loan is made to a resident of Indiana, whether at a place of business, by a traveling loan officer, by mail, by telephone, or by other electronic means.
(c) Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property are attributable to this state if the proceeds of the loan are to be applied in Indiana. If it cannot be determined where the funds are to be applied, the income and receipts are attributable to the state in which the business applied for the loan. As used in this section, "applied for" means initial inquiry (including customer assistance in preparing the loan application) or submission of a completed loan application, whichever occurs first.
(d) Interest income, merchant discount, and other receipts including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders' fees are attributable to the state to which the card charges and fees are regularly billed.
(e) Receipts from the performance of fiduciary and other services are attributable to the state in which the benefits of the services are consumed. If the benefits are consumed in more than one (1) state, the receipts from those benefits are attributable to this state on a pro rata basis according to the portion of the benefits consumed in Indiana.
(f) Receipts from the issuance of traveler's checks, money orders, or United States savings bonds are attributable to the state in which the traveler's checks, money orders, or bonds are purchased.
(g) Receipts in the form of dividends from investments are attributable to this state if the taxpayer's commercial domicile is in Indiana.
(h) Receipts from the maturity, redemption, sale, exchange, loan, or other disposition of stocks, bonds, notes, options, forward contracts, futures contracts, and similar instruments are attributable to this state if the taxpayer's commercial domicile is in Indiana. For purposes of this subsection, only the portion of the receipts required to be included in the taxpayer's sales denominator are attributable to Indiana.
As added by P.L.347-1989(ss), SEC.7. Amended by P.L.158-2019, SEC.8.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-2.3. In-State Commercial Printing for Out-of-State Customer

Sec. 2.3. Notwithstanding any other provision of this article, with respect to a person, corporation, or partnership that has contracted with a commercial printer for printing:
(1) the ownership or leasing by that entity of tangible or intangible property located at the Indiana premises of the commercial printer;
(2) the sale by that entity of property of any kind produced at and shipped or distributed from the Indiana premises of the commercial printer;
(3) the activities of any kind performed by or on behalf of that entity at the Indiana premises of the commercial printer; and
(4) the activities performed by the commercial printer in Indiana for or on behalf of that entity;
shall not cause that entity to have adjusted gross income derived from sources within Indiana for purposes of the taxes imposed by this chapter, unless that entity engages in other activities in Indiana away from the premises of the commercial printer that exceed the protection of 15 U.S.C. 381.
As added by P.L.70-1993, SEC.6. Amended by P.L.192-2002(ss), SEC.72.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-2.8. Exemption; Nonprofit Entities; Subchapter S Corporations; Financial Institutions; Insurance Companies; International Banking Facilities

Note: This version of section effective 1-1-2022 until 1-1-2023. See also following version of this section, effective 1-1-2023.
Sec. 2.8. Notwithstanding any provision of IC 6-3-1 through IC 6-3-7, there shall be no tax on the adjusted gross income of the following:
(1) Any organization described in Section 501(a) of the Internal Revenue Code, except that any income of such organization which is subject to income tax under the Internal Revenue Code shall be subject to the tax under IC 6-3-1 through IC 6-3-7.
(2) Any corporation which is exempt from income tax under Section 1363 of the Internal Revenue Code and which complies with the requirements of IC 6-3-4-13. However, income of a corporation described under this subdivision that is subject to income tax under the Internal Revenue Code is subject to the tax under IC 6-3-1 through IC 6-3-7. A corporation will not lose its exemption under this section because it fails to comply with IC 6-3-4-13 but it will be subject to the penalties provided by IC 6-8.1-10. Any corporation that is exempt from income tax under Section 1363 of the Internal Revenue Code and that makes an election under IC 6-3-2.1 for a taxable year shall be subject to tax as provided in IC 6-3-2.1 for the taxable year of the election.
(3) Banks and trust companies, national banking associations, savings banks, building and loan associations, and savings and loan associations.
(4) Insurance companies subject to tax under any of the following:
(A) IC 27-1-18-2, including a domestic insurance company that elects to be taxed under IC 27-1-18-2.
(B) IC 27-1-2-2.3.
(5) International banking facilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System (12 CFR 204)).
As added by P.L.47-1984, SEC.5. Amended by P.L.42-1993, SEC.3; P.L.18-1994, SEC.8; P.L.192-2002(ss), SEC.74; P.L.129-2014, SEC.1; P.L.1-2023, SEC.4.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-2.8-b. Exemption; Nonprofit Entities; Subchapter S Corporations; Financial Institutions; Insurance Companies; International Banking Facilities

Note: This version of section effective 1-1-2023. See also preceding version of this section, effective 1-1-2022 until 1-1-2023.
Sec. 2.8. Notwithstanding any provision of IC 6-3-1 through IC 6-3-7, there shall be no tax on the adjusted gross income of the following:
(1) Any organization described in Section 501(a) of the Internal Revenue Code, except that any income of such organization which is subject to income tax under the Internal Revenue Code shall be subject to the tax under IC 6-3-1 through IC 6-3-7.
(2) Any corporation which is exempt from income tax under Section 1363 of the Internal Revenue Code and which complies with the requirements of IC 6-3-4-13. However, income of a corporation described under this subdivision that is subject to income tax under the Internal Revenue Code is subject to the tax under IC 6-3-1 through IC 6-3-7. A corporation will not lose its exemption under this section because it fails to comply with IC 6-3-4-13 but it will be subject to the penalties provided by IC 6-8.1-10. Any corporation that is exempt from income tax under Section 1363 of the Internal Revenue Code and that makes an election under IC 6-3-2.1 for a taxable year shall be subject to tax as provided in IC 6-3-2.1 for the taxable year of the election.
(3) Banks and trust companies, national banking associations, savings banks, building and loan associations, and savings and loan associations.
(4) Insurance companies or organizations offering nonprofit agricultural organization insurance coverage subject to tax under any of the following:
(A) IC 27-1-18-2, including a domestic insurance company that elects to be taxed under IC 27-1-18-2.
(B) IC 27-1-2-2.3.
(C) IC 6-8-15, unless a nonprofit agricultural organization:
(i) files a notice of election with the insurance commissioner and the commissioner of the department on or before November 30 of a taxable year; and
(ii) states in the notice of election that the organization elects to be subject to the tax imposed under IC 6-3-1 through IC 6-3-7 for the taxable year.
(5) International banking facilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System (12 CFR 204)).
As added by P.L.47-1984, SEC.5. Amended by P.L.42-1993, SEC.3; P.L.18-1994, SEC.8; P.L.192-2002(ss), SEC.74; P.L.129-2014, SEC.1; P.L.1-2023, SEC.4; P.L.194-2023, SEC.14.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-3. Repealed

Formerly Acts 1963(ss)c.32, s.205; Acts 1965, c.233, s.14. Amended by Acts 1981, P.L.77, SEC.9; P.L.79-1983, SEC.2, P.L.82-1983, SEC.5. Repealed by P.L.47-1984, SEC.7(b).
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-3.1. Taxation; Nonprofit Entities; Unrelated Business Income

Sec. 3.1. (a) Except as otherwise provided in subsection (b), income is not exempt from the adjusted gross income tax under section 2.8(1) of this chapter if the income is derived by the exempt organization from an unrelated trade or business, as defined in Section 513 of the Internal Revenue Code.
(b) This section does not apply to:
(1) the United States government;
(2) an agency or instrumentality of the United States government;
(3) this state;
(4) a state agency, as defined in IC 34-6-2-141;
(5) a political subdivision, as defined in IC 34-6-2-110; or
(6) a county solid waste management district or a joint solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal).
As added by Acts 1978, P.L.32, SEC.3. Amended by P.L.25-1991, SEC.4; P.L.1-1994, SEC.28; P.L.1-1996, SEC.46; P.L.1-1998, SEC.78; P.L.192-2002(ss), SEC.75.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-3.5. Exemption; Fares for Public Transportation Services

Sec. 3.5. (a) For purposes of this section, "public transportation services" means the transportation of individuals for hire.
(b) All fares collected for public transportation services are exempt from the income taxes imposed by this article if the fares are received by a:
(1) public transportation corporation established under IC 36-9-4;
(2) public transit department established by ordinance under IC 36; or
(3) lessee common carrier that provides public transportation services under IC 36.
(c) Fares collected for public transportation services by a private corporation are exempt from income taxes imposed by this article if during the tax year at least eighty percent (80%) of the corporation's total regularly scheduled bus passenger vehicle route miles are within the corporation's designated regional service area. A private corporation's designated regional service area may not be greater than:
(1) the county that the private corporation designates as its principal place of business; and
(2) all counties contiguous to the county designated by the private corporation as its principal place of business.
A private corporation may choose a smaller area as its regional service area.
Formerly: Acts 1975, P.L.58, SEC.3. As amended by P.L.19-1986, SEC.14; P.L.192-2002(ss), SEC.76.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-3.7. Remainder of Federal Civil Service Annuity Minus Certain Retirement Benefits; Deduction

Sec. 3.7. (a) Each taxable year, an individual or the individual's surviving spouse is entitled to an adjusted gross income tax deduction equal to the remainder of:
(1) the:
(A) first eight thousand dollars ($8,000), for taxable years beginning after December 31, 2014, and before January 1, 2016; and
(B) first sixteen thousand dollars ($16,000), for taxable years beginning after December 31, 2015;
which is received by the individual or the individual's surviving spouse during the taxable year from a federal civil service annuity, and which is included in adjusted gross income under Section 62 of the Internal Revenue Code; minus
(2) the total amount of Social Security benefits and railroad retirement benefits received by the individual or the individual's surviving spouse during the taxable year.
(b) The individual is only entitled to the deduction provided by this section if the individual is at least sixty-two (62) years of age before the end of the taxable year. This subsection does not apply to the individual's surviving spouse.
As added by Acts 1977, P.L.79, SEC.1. Amended by Acts 1980, P.L.54, SEC.2; P.L.76-1985, SEC.1; P.L.250-2015, SEC.15.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-4. Military Service Deduction; Retirement Income or Survivor's Benefits Deduction

Sec. 4. (a) Each taxable year, an individual, or the individual's surviving spouse, is entitled to the following:
(1) An adjusted gross income tax deduction for the first five thousand dollars ($5,000) of income, excluding adjusted gross income described in subdivision (2), received during the taxable year by the individual, or the individual's surviving spouse, for the individual's service in an active or reserve component of the armed forces of the United States, including the army, navy, air force, coast guard, marine corps, merchant marine, Indiana army national guard, or Indiana air national guard.
(2) An adjusted gross income tax deduction for income from retirement or survivor's benefits received during the taxable year by the individual, or the individual's surviving spouse, for the individual's service in an active or reserve component of the armed forces of the United States, including the army, navy, air force, coast guard, marine corps, merchant marine, Indiana army national guard, or Indiana air national guard. The amount of the deduction is the lesser of:
(A) the benefits included in the adjusted gross income of the individual or the individual's surviving spouse; or
(B) six thousand two hundred fifty dollars ($6,250) plus the following:
(i) For taxable years beginning in 2019, twenty-five percent (25%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).
(ii) For taxable years beginning in 2020, fifty percent (50%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).
(iii) For taxable years beginning in 2021, seventy-five percent (75%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).
(iv) For taxable years beginning after 2021, one hundred percent (100%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).
(b) An individual whose qualified military income is subtracted from the individual's federal adjusted gross income under IC 6-3-1-3.5(a)(18) for Indiana individual income tax purposes is not, for that taxable year, entitled to a deduction under this section for the same qualified military income that is deducted under IC 6-3-1-3.5(a)(18).
As added by Acts 1977, P.L.78, SEC.3. Amended by P.L.76-1985, SEC.2; P.L.144-2007, SEC.5; P.L.6-2012, SEC.49; P.L.250-2015, SEC.16; P.L.217-2017, SEC.64; P.L.214-2018(ss), SEC.7; P.L.162-2019, SEC.1.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-6. Deduction; Rent Payments

Sec. 6. (a) Each taxable year, an individual who rents a dwelling for use as the individual's principal place of residence may deduct from the individual's adjusted gross income (as defined in IC 6-3-1-3.5(a)), the lesser of:
(1) the amount of rent paid by the individual with respect to the dwelling during the taxable year; or
(2) three thousand dollars ($3,000).
(b) Notwithstanding subsection (a):
(1) a married couple filing a joint return for a particular taxable year may not claim a deduction under this section of more than three thousand dollars ($3,000); and
(2) a married individual filing a separate return for a particular taxable year may not claim a deduction under this section of more than one thousand five hundred dollars ($1,500).
(c) The deduction provided by this section does not apply to an individual who rents a dwelling that is exempt from Indiana property tax.
(d) For purposes of this section, a "dwelling" includes a single family dwelling and unit of a multi-family dwelling.
As added by Acts 1979, P.L.70, SEC.1. Amended by P.L.14-1999, SEC.1; P.L.192-2002(ss), SEC.77; P.L.146-2008, SEC.318; P.L.146-2020, SEC.23.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-8. Enterprise Zone Employers; Exemption From Deduction

Sec. 8. (a) For purposes of this section, "qualified employee" means an individual who is employed by a taxpayer, a pass through entity, an employer exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under section 2.8(3), 2.8(4), or 2.8(5) of this chapter, a nonprofit entity, the state, a political subdivision of the state, or the United States government and who:
(1) has the employee's principal place of residence in the enterprise zone in which the employee is employed;
(2) performs services for the taxpayer, the employer, the nonprofit entity, the state, the political subdivision, or the United States government, ninety percent (90%) of which are directly related to:
(A) the conduct of the taxpayer's or employer's trade or business; or
(B) the activities of the nonprofit entity, the state, the political subdivision, or the United States government;
that is located in an enterprise zone; and
(3) performs at least fifty percent (50%) of the employee's service for the taxpayer or employer during the taxable year in the enterprise zone.
(b) Except as provided in subsection (c), a qualified employee is entitled to a deduction from the employee's adjusted gross income in each taxable year in the amount of the lesser of:
(1) one-half (1/2) of the employee's adjusted gross income for the taxable year that the employee earns as a qualified employee; or
(2) seven thousand five hundred dollars ($7,500).
(c) No qualified employee is entitled to a deduction under this section for a taxable year that begins after the termination of the enterprise zone in which the employee resides.
As added by P.L.23-1983, SEC.11. Amended by P.L.9-1986, SEC.5; P.L.289-2001, SEC.12; P.L.269-2003, SEC.4; P.L.182-2009(ss), SEC.194; P.L.86-2018, SEC.72.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-9. Disability Retirement; Deduction; Amount

Sec. 9. (a) An individual who:
(1) retired on disability before the end of the taxable year; and
(2) had a permanent and total disability, as determined under subsection (c), at the time of retirement;
is entitled to a deduction from the individual's adjusted gross income for that taxable year in the amount determined under subsection (b).
(b) The deduction provided by subsection (a) is the amount determined using the following STEPS:
STEP ONE: Determine the amount received by the individual during the taxable year through an accident and health plan for personal injuries or sickness to the extent that:
(A) these amounts are attributable to contributions by the individual's employer that were not includable in the individual's gross income or are paid by the employer; and
(B) these amounts constitute wages or payments in lieu of wages for a period during which the employee is absent from work because of permanent and total disability.
STEP TWO: Determine for each week of the taxable year the amount by which each weekly payment referred to in STEP ONE exceeds one hundred dollars ($100), then add these amounts.
STEP THREE: Determine the amount by which the individual's federal adjusted gross income for the taxable year, as defined by Section 62 of the Internal Revenue Code, exceeds fifteen thousand dollars ($15,000), or seven thousand five hundred dollars ($7,500) in the case of a married individual filing a separate return.
STEP FOUR: Subtract from the amount determined in STEP ONE the amount determined in STEP TWO and the amount determined in STEP THREE.
(c) For purposes of this section, an individual has a permanent and total disability if the individual is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve (12) months. An individual may not be considered to have a permanent and total disability unless the individual furnishes proof of the existence of the disability as the department of revenue may require.
As added by P.L.76-1985, SEC.3. Amended by P.L.47-2001, SEC.1; P.L.99-2007, SEC.26; P.L.146-2020, SEC.24.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-10. Unemployment Compensation; Deduction

Sec. 10. (a) For purposes of this section, "excess adjusted gross income" means the greater of zero (0) or one-half (1/2) of:
(1) the individual's adjusted gross income or the combined adjusted gross income of the individual and the individual's spouse, if the individual files a joint return with the individual's spouse, as determined under Section 62 of the Internal Revenue Code; plus
(2) any unemployment compensation excluded from federal gross income under Section 85(c) of the Internal Revenue Code; minus
(3) the following amount:
(A) Eighteen thousand dollars ($18,000) for an individual who files a joint tax return with the individual's spouse.
(B) Zero dollars ($0) if the individual:
(i) is married at the close of the taxable year, as determined under Section 7703 of the Internal Revenue Code;
(ii) does not file a joint return for the taxable year; and
(iii) does not live apart from the individual's spouse at all times during the taxable year.
(C) Twelve thousand dollars ($12,000) for an individual not described in clause (A) or (B).
(b) "Eligible unemployment compensation" means unemployment compensation received by an individual and included in the individual's federal gross income under Section 85 of the Internal Revenue Code plus any unemployment compensation received by the individual excluded from federal gross income under Section 85(c) of the Internal Revenue Code. The term does not include amounts not taxable under this article as a result of 45 U.S.C. 352.
(c) An individual is entitled to a deduction against the individual's adjusted gross income in an amount equal to the greater of zero (0) or the remainder of:
(1) eligible unemployment compensation; minus
(2) excess adjusted gross income.
(d) For an individual and an individual's spouse described in subsection (a)(3)(A):
(1) the deduction under subsection (c) shall be computed based on the combined eligible unemployment compensation of the individual and the individual's spouse; and
(2) this subsection and subsection (c) shall not be construed to permit more than one (1) deduction under this section.
As added by P.L.2-1987, SEC.19. Amended by P.L.5-1988, SEC.46; P.L.182-2009(ss), SEC.196; P.L.165-2021, SEC.75.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-11. Deductions From Adjusted Gross Income; Federal Employee Paid Leave

Sec. 11. (a) An individual is entitled to a deduction from the individual's adjusted gross income for the taxable year if the individual:
(1) is an employee of the federal government during the taxable year and the year preceding the taxable year;
(2) has used paid leave from employment as an employee of the federal government during the year preceding the taxable year; and
(3) is entitled to an itemized deduction under the Internal Revenue Code for the taxable year because the individual bought back the leave used by the individual during the year preceding the taxable year.
(b) The amount of the deduction for a taxable year may not exceed the lesser of:
(1) the individual's itemized deduction that is allowed under the Internal Revenue Code for the taxable year; or
(2) the individual's adjusted gross income for the taxable year.
As added by P.L.91-1987, SEC.5.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-12. Foreign Source Dividends; Deduction; Computation

Sec. 12. (a) As used in this section, the term "foreign source dividend" means a dividend from a foreign corporation. The term:
(1) includes any amount that a taxpayer is required to include in its gross income for a taxable year under Sections 951 and 951A of the Internal Revenue Code, and, for taxable years beginning after December 25, 2016, any amounts required to be included in adjusted gross income under this article after application of IC 6-3-1-3.5(b)(13), IC 6-3-1-3.5(d)(12), and IC 6-3-1-3.5(e)(12), but prior to application of this section; and
(2) does not include any amount that is treated as a dividend under Section 78 of the Internal Revenue Code.
The reference in subdivision (1) to amounts required to be included in adjusted gross income under this article after application of IC 6-3-1-3.5(b)(13), IC 6-3-1-3.5(d)(12), and IC 6-3-1-3.5(e)(12) applies in the same taxable year that the taxpayer takes into account the increase in Subpart F income as a result of Section 965(a) of the Internal Revenue Code and uses the deduction for deferred foreign income under Section 965(c) of the Internal Revenue Code.
(b) A corporation that includes any foreign source dividend in its adjusted gross income for a taxable year is entitled to a deduction from that adjusted gross income. The amount of the deduction equals the product of:
(1) the amount of the foreign source dividend included in the corporation's adjusted gross income for the taxable year; multiplied by
(2) the percentage prescribed in subsection (c), (d), or (e), as the case may be.
(c) The percentage referred to in subsection (b)(2) is one hundred percent (100%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing at least eighty percent (80%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
(d) The percentage referred to in subsection (b)(2) is eighty-five percent (85%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing at least fifty percent (50%) but less than eighty percent (80%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
(e) The percentage referred to in subsection (b)(2) is fifty percent (50%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing less than fifty percent (50%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
As added by P.L.383-1987(ss), SEC.4. Amended by P.L.214-2018(ss), SEC.8.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-13. Export Income; Maritime Opportunity Districts; Limit on Deduction After December 31, 2015; Expiration

Sec. 13. (a) As used in this section, "export income" means the gross receipts from the sale, transfer, or exchange of tangible personal property destined for international markets that is:
(1) manufactured at a plant located within a maritime opportunity district established under IC 6-1.1-40 (before its expiration); and
(2) shipped through a port operated by the state.
(b) As used in this section, "export sales ratio" means the quotient of:
(1) the taxpayer's export income; divided by
(2) the taxpayer's gross receipts from the sale, transfer, or exchange of tangible personal property, regardless of its destination.
(c) As used in this section, "taxpayer" means a person or corporation that has export income.
(d) The ports of Indiana established by IC 8-10-1-3 shall notify the department when a maritime opportunity district is established under IC 6-1.1-40 (before its expiration). The notice must include:
(1) the resolution passed by the commission to establish the district; and
(2) a list of all taxpayers located in the district.
(e) The ports of Indiana shall also notify the department of any subsequent changes in the list of taxpayers located in the district.
(f) A taxpayer is entitled to a deduction from the taxpayer's adjusted gross income in an amount equal to the lesser of:
(1) the taxpayer's adjusted gross income; or
(2) the product of the export sales ratio multiplied by the percentage set forth in subsection (g).
(g) The percentage to be used in determining the amount a taxpayer is entitled to deduct under this section depends upon the number of years that the taxpayer could have taken a deduction under this section. The percentage to be used in subsection (f) is as follows:
YEAR OF DEDUCTION
PERCENTAGE
1st through 4th
100%
5th
80%
6th
60%
7th
40%
8th
20%
9th and thereafter
0%
(h) The department shall determine, for each taxpayer claiming a deduction under this section, the taxpayer's export sales ratio for purposes of IC 6-1.1-40 (before its expiration). The department shall certify the amount of the ratio to the department of local government finance.
(i) A taxpayer is not entitled to a deduction under this section based on export income received by the taxpayer after December 31, 2015.
(j) This section expires January 1, 2025.
As added by P.L.62-1988, SEC.2. Amended by P.L.90-2002, SEC.288; P.L.98-2008, SEC.8; P.L.250-2015, SEC.19; P.L.212-2018(ss), SEC.22.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-14.1. Prize Money Accruing Before July 1, 2002; Exemption

Sec. 14.1. Notwithstanding IC 6-3-4-8.2, a payment made after June 30, 2002, on prize money received from a winning lottery ticket purchased under IC 4-30 for a lottery held before July 1, 2002, is exempt from the adjusted gross income tax and supplemental net income tax (repealed) imposed by this article.
As added by P.L.269-2003, SEC.5. Amended by P.L.250-2015, SEC.20.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-16. Transactions Between Taxable Entity and Unitary Taxpayer Subject to Ic 6-5.5

Sec. 16. If an entity is subject to taxation under this article and is a member of a unitary group of which a taxpayer subject to taxation under IC 6-5.5 is a member, all income and deductions attributable to transactions between the entity and the unitary taxpayer shall be eliminated in determining the amount of tax imposed under this article. This section does not prohibit the elimination of income and deductions between two (2) or more entities that are not members of a unitary group.
As added by P.L.1-1990, SEC.77.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-18. Employee Medical Care Savings Accounts; Exemption Limited to Deposits Before January 1, 2016

Sec. 18. (a) As used in this section, "eligible medical expense" has the meaning set forth in IC 6-8-11-3.
(b) As used in this section, "medical care savings account" has the meaning set forth in IC 6-8-11-6.
(c) This subsection applies only to money deposited by an employer in a medical care savings account before January 1, 2016. Except as provided in subsection (g), the amount of money deposited by an employer in a medical care savings account established for an employee under IC 6-8-11 is exempt from taxation under IC 6-3-1 through IC 6-3-7 as income of the employee in the taxable year in which the money is deposited in the account.
(d) Except as provided in subsection (g), the amount of money that is:
(1) withdrawn from a medical care savings account established for an employee under IC 6-8-11; and
(2) either:
(A) used by the administrator of the account for a purpose set forth in IC 6-8-11-13; or
(B) used under IC 6-8-11-13 to reimburse an employee for eligible medical expenses that the employee has incurred and paid for medical care for the employee or a dependent of the employee;
is exempt from taxation under IC 6-3-1 through IC 6-3-7 as income of the employee.
(e) Except as provided in IC 6-8-11-11 and IC 6-8-11-11.5, in each taxable year, the amount of money that is:
(1) withdrawn by an employee from a medical care savings account established under IC 6-8-11; and
(2) used for a purpose other than the purposes set forth in IC 6-8-11-13;
is income to the employee that is subject to taxation under IC 6-3-1 through IC 6-3-7.
(f) If an employee withdraws money from the employee's medical care savings account under the circumstances set forth in IC 6-8-11-17(c), the interest earned on the balance in the account during the full tax year in which the withdrawal is made is subject to taxation under IC 6-3-1 through IC 6-3-7 as income of the employee.
(g) A taxpayer that excluded or deducted an amount deposited into a medical care savings account from adjusted gross income under:
(1) section 106 of the Internal Revenue Code;
(2) section 220 of the Internal Revenue Code; or
(3) any other section of the Internal Revenue Code;
is not eligible for an additional exemption from adjusted gross income under this section.
As added by P.L.92-1995, SEC.1 and P.L.93-1995, SEC.1. Amended by P.L.60-1997, SEC.3; P.L.250-2015, SEC.23.
2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 2. Imposition of Tax and Deductions › 6-3-2-19. Distributions for Higher Education; Exemptions

Sec. 19. (a) As used in this section, "account beneficiary" has the meaning set forth in IC 21-9-2-3.
(b) As used in this section, "account owner" has the meaning set forth in IC 21-9-2-4.
(c) As used in this section, "individual account" has the meaning set forth in IC 21-9-2-2.
(d) As used in this section, "qualified higher education expenses" has the meaning set forth in IC 21-9-2-19.5.
(e) Distributions from an individual account used to pay qualified higher education expenses are exempt from the adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 as income of an account beneficiary or an account owner.
As added by P.L.15-2001, SEC.1.