2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 4. Returns and Remittances › 6-3-4-14. Affiliated Group of Corporations; Consolidated Returns

Sec. 14. (a) An affiliated group of corporations shall have the privilege of making a consolidated return with respect to the taxes imposed by IC 6-3. The making of a consolidated return shall be upon the condition that all corporations which at any time during the taxable year have been members of the affiliated group consent to all of the provisions of this section including all provisions of the consolidated return regulations prescribed pursuant to Section 1502 of the Internal Revenue Code and incorporated in this section by reference and all regulations promulgated by the department implementing this section prior to the last day prescribed by law for the filing of such return. The making of a consolidated return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated return shall include the income of such corporation for such part of the year as it is a member of the affiliated group.
(b) For the purposes of this section the term "affiliated group" shall mean an "affiliated group" as defined in Section 1504 of the Internal Revenue Code with the exception that the affiliated group shall not include any corporation which does not have adjusted gross income derived from sources within the state of Indiana.
(c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable income," as defined in Section 63 of the Internal Revenue Code, of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, shall be determined pursuant to the regulations prescribed under Section 1502 of the Internal Revenue Code.
(d) Any credit against the taxes imposed by IC 6-3 which is available to any corporation which is a member of an affiliated group of corporations making a consolidated return shall be applied against the tax liability of the affiliated group.
(e) For purposes of this section, the following rules shall apply:
(1) In the case of the sale of a corporation, the filing status of the remaining members of the consolidated group shall continue absent an election by those consolidated members to file separately or on a combined basis.
(2) In the case of a merger, the previous filing status of the surviving corporation shall continue. If the surviving corporation is part of an affiliated group that filed a consolidated return in the immediately preceding taxable year, the surviving corporation shall be considered to be part of the consolidated return, provided that the surviving corporation would otherwise be part of the affiliated group under subsection (b).
(3) In the case of an acquisition of a corporation, the filing status of the acquiring group shall continue absent an election by the corporations to file separately or on a combined basis.
(4) In the case of a corporation that was previously part of a consolidated return but ceased to be part of a consolidated return for any other reason, the election to be part of a consolidated return shall be considered to continue for all corporations.
Provided, however, that if a consolidated election is discontinued as a result of sale, merger, acquisition, or any other reason, nothing in this section shall be construed to prevent a new election to file a consolidated return under this section.
Formerly: Acts 1963(ss), c.32, s.414; Acts 1965, c.233, s.24. As amended by Acts 1980, P.L.54, SEC.6; P.L.136-2018, SEC.40; P.L.137-2022, SEC.39.