Indiana 2023 Regular Session

Indiana Senate Bill SB0223 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 223
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-1-3.5.
7	7	Synopsis: Deduction for long term care premiums. Provides a
8	8	deduction from adjusted gross income for any premiums paid during
9	9	a taxable year for a long term care insurance policy purchased in a state
10	10	other than Indiana that is considered to have reciprocity with Indiana
11	11	under an Indiana long term care insurance program. Provides a
12	12	deduction from adjusted gross income for any premiums paid during
13	13	a taxable year for a qualified long term care insurance policy under the
14	14	Indiana long term care insurance partnership program.
15	15	Effective: January 1, 2024.
16	16	Walker G
17	17	January 10, 2023, read first time and referred to Committee on Insurance and Financial
18	18	Institutions.
19	19	2023 IN 223—LS 6342/DI 134 Introduced
20	20	First Regular Session of the 123rd General Assembly (2023)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2022 Regular Session of the General Assembly.
30	30	SENATE BILL No. 223
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	taxation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.180-2022(ss),
35	35	2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JANUARY 1, 2024]: Sec. 3.5. When used in this article, the term
37	37	4 "adjusted gross income" shall mean the following:
38	38	5 (a) In the case of all individuals, "adjusted gross income" (as
39	39	6 defined in Section 62 of the Internal Revenue Code), modified as
40	40	7 follows:
41	41	8 (1) Subtract income that is exempt from taxation under this article
42	42	9 by the Constitution and statutes of the United States.
43	43	10 (2) Except as provided in subsection (c), add an amount equal to
44	44	11 any deduction or deductions allowed or allowable pursuant to
45	45	12 Section 62 of the Internal Revenue Code for taxes based on or
46	46	13 measured by income and levied at the state level by any state of
47	47	14 the United States.
48	48	15 (3) Subtract one thousand dollars ($1,000), or in the case of a
49	49	16 joint return filed by a husband and wife, subtract for each spouse
50	50	17 one thousand dollars ($1,000).
51	51	2023 IN 223—LS 6342/DI 134 2
52	52	1 (4) Subtract one thousand dollars ($1,000) for:
53	53	2 (A) each of the exemptions provided by Section 151(c) of the
54	54	3 Internal Revenue Code (as effective January 1, 2017);
55	55	4 (B) each additional amount allowable under Section 63(f) of
56	56	5 the Internal Revenue Code; and
57	57	6 (C) the spouse of the taxpayer if a separate return is made by
58	58	7 the taxpayer and if the spouse, for the calendar year in which
59	59	8 the taxable year of the taxpayer begins, has no gross income
60	60	9 and is not the dependent of another taxpayer.
61	61	10 (5) Subtract:
62	62	11 (A) One thousand five hundred dollars ($1,500) for each of the
63	63	12 exemptions allowed under Section 151(c)(1)(B) of the Internal
64	64	13 Revenue Code (as effective January 1, 2004).
65	65	14 (B) One thousand five hundred dollars ($1,500) for each
66	66	15 exemption allowed under Section 151(c) of the Internal
67	67	16 Revenue Code (as effective January 1, 2017) for an individual:
68	68	17 (i) who is less than nineteen (19) years of age or is a
69	69	18 full-time student who is less than twenty-four (24) years of
70	70	19 age;
71	71	20 (ii) for whom the taxpayer is the legal guardian; and
72	72	21 (iii) for whom the taxpayer does not claim an exemption
73	73	22 under clause (A).
74	74	23 (C) Five hundred dollars ($500) for each additional amount
75	75	24 allowable under Section 63(f)(1) of the Internal Revenue Code
76	76	25 if the federal adjusted gross income of the taxpayer, or the
77	77	26 taxpayer and the taxpayer's spouse in the case of a joint return,
78	78	27 is less than forty thousand dollars ($40,000). In the case of a
79	79	28 married individual filing a separate return, the qualifying
80	80	29 income amount in this clause is equal to twenty thousand
81	81	30 dollars ($20,000).
82	82	31 (D) Three thousand dollars ($3,000) for each exemption
83	83	32 allowed under Section 151(c) of the Internal Revenue Code (as
84	84	33 effective January 1, 2017) for an individual who is:
85	85	34 (i) an adopted child of the taxpayer; and
86	86	35 (ii) less than nineteen (19) years of age or is a full-time
87	87	36 student who is less than twenty-four (24) years of age.
88	88	37 This amount is in addition to any amount subtracted under
89	89	38 clause (A) or (B).
90	90	39 This amount is in addition to the amount subtracted under
91	91	40 subdivision (4).
92	92	41 (6) Subtract any amounts included in federal adjusted gross
93	93	42 income under Section 111 of the Internal Revenue Code as a
94	94	2023 IN 223—LS 6342/DI 134 3
95	95	1 recovery of items previously deducted as an itemized deduction
96	96	2 from adjusted gross income.
97	97	3 (7) Subtract any amounts included in federal adjusted gross
98	98	4 income under the Internal Revenue Code which amounts were
99	99	5 received by the individual as supplemental railroad retirement
100	100	6 annuities under 45 U.S.C. 231 and which are not deductible under
101	101	7 subdivision (1).
102	102	8 (8) Subtract an amount equal to the amount of federal Social
103	103	9 Security and Railroad Retirement benefits included in a taxpayer's
104	104	10 federal gross income by Section 86 of the Internal Revenue Code.
105	105	11 (9) In the case of a nonresident taxpayer or a resident taxpayer
106	106	12 residing in Indiana for a period of less than the taxpayer's entire
107	107	13 taxable year, the total amount of the deductions allowed pursuant
108	108	14 to subdivisions (3), (4), and (5) shall be reduced to an amount
109	109	15 which bears the same ratio to the total as the taxpayer's income
110	110	16 taxable in Indiana bears to the taxpayer's total income.
111	111	17 (10) In the case of an individual who is a recipient of assistance
112	112	18 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
113	113	19 subtract an amount equal to that portion of the individual's
114	114	20 adjusted gross income with respect to which the individual is not
115	115	21 allowed under federal law to retain an amount to pay state and
116	116	22 local income taxes.
117	117	23 (11) In the case of an eligible individual, subtract the amount of
118	118	24 a Holocaust victim's settlement payment included in the
119	119	25 individual's federal adjusted gross income.
120	120	26 (12) Subtract an amount equal to the portion of any premiums
121	121	27 paid during the taxable year by the taxpayer for:
122	122	28 (A) a qualified long term care policy as defined in
123	123	29 IC 12-15-39.6-5;
124	124	30 (B) a qualified long term care insurance policy as defined
125	125	31 in IC 12-15-39.8-3; or
126	126	32 (C) a long term care insurance policy purchased in a state
127	127	33 other than Indiana that is considered to have reciprocity
128	128	34 with Indiana under a long term care insurance program
129	129	35 set forth in IC 12-15-39.6 or IC 12-15-39.8;
130	130	36 for the taxpayer or the taxpayer's spouse if the taxpayer and the
131	131	37 taxpayer's spouse file a joint income tax return or the taxpayer is
132	132	38 otherwise entitled to a deduction under this subdivision for the
133	133	39 taxpayer's spouse, or both.
134	134	40 (13) Subtract an amount equal to the lesser of:
135	135	41 (A) two thousand five hundred dollars ($2,500), or one
136	136	42 thousand two hundred fifty dollars ($1,250) in the case of a
137	137	2023 IN 223—LS 6342/DI 134 4
138	138	1 married individual filing a separate return; or
139	139	2 (B) the amount of property taxes that are paid during the
140	140	3 taxable year in Indiana by the individual on the individual's
141	141	4 principal place of residence.
142	142	5 (14) Subtract an amount equal to the amount of a September 11
143	143	6 terrorist attack settlement payment included in the individual's
144	144	7 federal adjusted gross income.
145	145	8 (15) Add or subtract the amount necessary to make the adjusted
146	146	9 gross income of any taxpayer that owns property for which bonus
147	147	10 depreciation was allowed in the current taxable year or in an
148	148	11 earlier taxable year equal to the amount of adjusted gross income
149	149	12 that would have been computed had an election not been made
150	150	13 under Section 168(k) of the Internal Revenue Code to apply bonus
151	151	14 depreciation to the property in the year that it was placed in
152	152	15 service.
153	153	16 (16) Add an amount equal to any deduction allowed under
154	154	17 Section 172 of the Internal Revenue Code (concerning net
155	155	18 operating losses).
156	156	19 (17) Add or subtract the amount necessary to make the adjusted
157	157	20 gross income of any taxpayer that placed Section 179 property (as
158	158	21 defined in Section 179 of the Internal Revenue Code) in service
159	159	22 in the current taxable year or in an earlier taxable year equal to
160	160	23 the amount of adjusted gross income that would have been
161	161	24 computed had an election for federal income tax purposes not
162	162	25 been made for the year in which the property was placed in
163	163	26 service to take deductions under Section 179 of the Internal
164	164	27 Revenue Code in a total amount exceeding the sum of:
165	165	28 (A) twenty-five thousand dollars ($25,000) to the extent
166	166	29 deductions under Section 179 of the Internal Revenue Code
167	167	30 were not elected as provided in clause (B); and
168	168	31 (B) for taxable years beginning after December 31, 2017, the
169	169	32 deductions elected under Section 179 of the Internal Revenue
170	170	33 Code on property acquired in an exchange if:
171	171	34 (i) the exchange would have been eligible for
172	172	35 nonrecognition of gain or loss under Section 1031 of the
173	173	36 Internal Revenue Code in effect on January 1, 2017;
174	174	37 (ii) the exchange is not eligible for nonrecognition of gain or
175	175	38 loss under Section 1031 of the Internal Revenue Code; and
176	176	39 (iii) the taxpayer made an election to take deductions under
177	177	40 Section 179 of the Internal Revenue Code with regard to the
178	178	41 acquired property in the year that the property was placed
179	179	42 into service.
180	180	2023 IN 223—LS 6342/DI 134 5
181	181	1 The amount of deductions allowable for an item of property
182	182	2 under this clause may not exceed the amount of adjusted gross
183	183	3 income realized on the property that would have been deferred
184	184	4 under the Internal Revenue Code in effect on January 1, 2017.
185	185	5 (18) Subtract an amount equal to the amount of the taxpayer's
186	186	6 qualified military income that was not excluded from the
187	187	7 taxpayer's gross income for federal income tax purposes under
188	188	8 Section 112 of the Internal Revenue Code.
189	189	9 (19) Subtract income that is:
190	190	10 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
191	191	11 derived from patents); and
192	192	12 (B) included in the individual's federal adjusted gross income
193	193	13 under the Internal Revenue Code.
194	194	14 (20) Add an amount equal to any income not included in gross
195	195	15 income as a result of the deferral of income arising from business
196	196	16 indebtedness discharged in connection with the reacquisition after
197	197	17 December 31, 2008, and before January 1, 2011, of an applicable
198	198	18 debt instrument, as provided in Section 108(i) of the Internal
199	199	19 Revenue Code. Subtract the amount necessary from the adjusted
200	200	20 gross income of any taxpayer that added an amount to adjusted
201	201	21 gross income in a previous year to offset the amount included in
202	202	22 federal gross income as a result of the deferral of income arising
203	203	23 from business indebtedness discharged in connection with the
204	204	24 reacquisition after December 31, 2008, and before January 1,
205	205	25 2011, of an applicable debt instrument, as provided in Section
206	206	26 108(i) of the Internal Revenue Code.
207	207	27 (21) Add the amount excluded from federal gross income under
208	208	28 Section 103 of the Internal Revenue Code for interest received on
209	209	29 an obligation of a state other than Indiana, or a political
210	210	30 subdivision of such a state, that is acquired by the taxpayer after
211	211	31 December 31, 2011.
212	212	32 (22) Subtract an amount as described in Section 1341(a)(2) of the
213	213	33 Internal Revenue Code to the extent, if any, that the amount was
214	214	34 previously included in the taxpayer's adjusted gross income for a
215	215	35 prior taxable year.
216	216	36 (23) For taxable years beginning after December 25, 2016, add an
217	217	37 amount equal to the deduction for deferred foreign income that
218	218	38 was claimed by the taxpayer for the taxable year under Section
219	219	39 965(c) of the Internal Revenue Code.
220	220	40 (24) Subtract any interest expense paid or accrued in the current
221	221	41 taxable year but not deducted as a result of the limitation imposed
222	222	42 under Section 163(j)(1) of the Internal Revenue Code. Add any
223	223	2023 IN 223—LS 6342/DI 134 6
224	224	1 interest expense paid or accrued in a previous taxable year but
225	225	2 allowed as a deduction under Section 163 of the Internal Revenue
226	226	3 Code in the current taxable year. For purposes of this subdivision,
227	227	4 an interest expense is considered paid or accrued only in the first
228	228	5 taxable year the deduction would have been allowable under
229	229	6 Section 163 of the Internal Revenue Code if the limitation under
230	230	7 Section 163(j)(1) of the Internal Revenue Code did not exist.
231	231	8 (25) Subtract the amount that would have been excluded from
232	232	9 gross income but for the enactment of Section 118(b)(2) of the
233	233	10 Internal Revenue Code for taxable years ending after December
234	234	11 22, 2017.
235	235	12 (26) For taxable years beginning after December 31, 2019, and
236	236	13 before January 1, 2021, add an amount of the deduction claimed
237	237	14 under Section 62(a)(22) of the Internal Revenue Code.
238	238	15 (27) For taxable years beginning after December 31, 2019, for
239	239	16 payments made by an employer under an education assistance
240	240	17 program after March 27, 2020:
241	241	18 (A) add the amount of payments by an employer that are
242	242	19 excluded from the taxpayer's federal gross income under
243	243	20 Section 127(c)(1)(B) of the Internal Revenue Code; and
244	244	21 (B) deduct the interest allowable under Section 221 of the
245	245	22 Internal Revenue Code, if the disallowance under Section
246	246	23 221(e)(1) of the Internal Revenue Code did not apply to the
247	247	24 payments described in clause (A). For purposes of applying
248	248	25 Section 221(b) of the Internal Revenue Code to the amount
249	249	26 allowable under this clause, the amount under clause (A) shall
250	250	27 not be added to adjusted gross income.
251	251	28 (28) Add an amount equal to the remainder of:
252	252	29 (A) the amount allowable as a deduction under Section 274(n)
253	253	30 of the Internal Revenue Code; minus
254	254	31 (B) the amount otherwise allowable as a deduction under
255	255	32 Section 274(n) of the Internal Revenue Code, if Section
256	256	33 274(n)(2)(D) of the Internal Revenue Code was not in effect
257	257	34 for amounts paid or incurred after December 31, 2020.
258	258	35 (29) For taxable years beginning after December 31, 2017, and
259	259	36 before January 1, 2021, add an amount equal to the excess
260	260	37 business loss of the taxpayer as defined in Section 461(l)(3) of the
261	261	38 Internal Revenue Code. In addition:
262	262	39 (A) If a taxpayer has an excess business loss under this
263	263	40 subdivision and also has modifications under subdivisions (15)
264	264	41 and (17) for property placed in service during the taxable year,
265	265	42 the taxpayer shall treat a portion of the taxable year
266	266	2023 IN 223—LS 6342/DI 134 7
267	267	1 modifications for that property as occurring in the taxable year
268	268	2 the property is placed in service and a portion of the
269	269	3 modifications as occurring in the immediately following
270	270	4 taxable year.
271	271	5 (B) The portion of the modifications under subdivisions (15)
272	272	6 and (17) for property placed in service during the taxable year
273	273	7 treated as occurring in the taxable year in which the property
274	274	8 is placed in service equals:
275	275	9 (i) the modification for the property otherwise determined
276	276	10 under this section; minus
277	277	11 (ii) the excess business loss disallowed under this
278	278	12 subdivision;
279	279	13 but not less than zero (0).
280	280	14 (C) The portion of the modifications under subdivisions (15)
281	281	15 and (17) for property placed in service during the taxable year
282	282	16 treated as occurring in the taxable year immediately following
283	283	17 the taxable year in which the property is placed in service
284	284	18 equals the modification for the property otherwise determined
285	285	19 under this section minus the amount in clause (B).
286	286	20 (D) Any reallocation of modifications between taxable years
287	287	21 under clauses (B) and (C) shall be first allocated to the
288	288	22 modification under subdivision (15), then to the modification
289	289	23 under subdivision (17).
290	290	24 (30) Add an amount equal to the amount excluded from federal
291	291	25 gross income under Section 108(f)(5) of the Internal Revenue
292	292	26 Code. For purposes of this subdivision:
293	293	27 (A) if an amount excluded under Section 108(f)(5) of the
294	294	28 Internal Revenue Code would be excludible under Section
295	295	29 108(a)(1)(B) of the Internal Revenue Code, the exclusion
296	296	30 under Section 108(a)(1)(B) of the Internal Revenue Code shall
297	297	31 take precedence; and
298	298	32 (B) if an amount would have been excludible under Section
299	299	33 108(f)(5) of the Internal Revenue Code as in effect on January
300	300	34 1, 2020, the amount is not required to be added back under this
301	301	35 subdivision.
302	302	36 (31) For taxable years ending after March 12, 2020, subtract an
303	303	37 amount equal to the deduction disallowed pursuant to:
304	304	38 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
305	305	39 as modified by Sections 206 and 207 of the Taxpayer Certainty
306	306	40 and Disaster Relief Tax Act (Division EE of Public Law
307	307	41 116-260); and
308	308	42 (B) Section 3134(e) of the Internal Revenue Code.
309	309	2023 IN 223—LS 6342/DI 134 8
310	310	1 (32) Subtract the amount of an annual grant amount distributed to
311	311	2 a taxpayer's Indiana education scholarship account under
312	312	3 IC 20-51.4-4-2 that is used for a qualified expense (as defined in
313	313	4 IC 20-51.4-2-9) or to an Indiana enrichment scholarship account
314	314	5 under IC 20-52 that is used for qualified expenses (as defined in
315	315	6 IC 20-52-2-6), to the extent the distribution used for the qualified
316	316	7 expense is included in the taxpayer's federal adjusted gross
317	317	8 income under the Internal Revenue Code.
318	318	9 (33) For taxable years beginning after December 31, 2019, and
319	319	10 before January 1, 2021, add an amount equal to the amount of
320	320	11 unemployment compensation excluded from federal gross income
321	321	12 under Section 85(c) of the Internal Revenue Code.
322	322	13 (34) For taxable years beginning after December 31, 2022,
323	323	14 subtract an amount equal to the deduction disallowed under
324	324	15 Section 280C(h) of the Internal Revenue Code.
325	325	16 (35) Subtract any other amounts the taxpayer is entitled to deduct
326	326	17 under IC 6-3-2.
327	327	18 (b) In the case of corporations, the same as "taxable income" (as
328	328	19 defined in Section 63 of the Internal Revenue Code) adjusted as
329	329	20 follows:
330	330	21 (1) Subtract income that is exempt from taxation under this article
331	331	22 by the Constitution and statutes of the United States.
332	332	23 (2) Add an amount equal to any deduction or deductions allowed
333	333	24 or allowable pursuant to Section 170 of the Internal Revenue
334	334	25 Code (concerning charitable contributions).
335	335	26 (3) Except as provided in subsection (c), add an amount equal to
336	336	27 any deduction or deductions allowed or allowable pursuant to
337	337	28 Section 63 of the Internal Revenue Code for taxes based on or
338	338	29 measured by income and levied at the state level by any state of
339	339	30 the United States.
340	340	31 (4) Subtract an amount equal to the amount included in the
341	341	32 corporation's taxable income under Section 78 of the Internal
342	342	33 Revenue Code (concerning foreign tax credits).
343	343	34 (5) Add or subtract the amount necessary to make the adjusted
344	344	35 gross income of any taxpayer that owns property for which bonus
345	345	36 depreciation was allowed in the current taxable year or in an
346	346	37 earlier taxable year equal to the amount of adjusted gross income
347	347	38 that would have been computed had an election not been made
348	348	39 under Section 168(k) of the Internal Revenue Code to apply bonus
349	349	40 depreciation to the property in the year that it was placed in
350	350	41 service.
351	351	42 (6) Add an amount equal to any deduction allowed under Section
352	352	2023 IN 223—LS 6342/DI 134 9
353	353	1 172 of the Internal Revenue Code (concerning net operating
354	354	2 losses).
355	355	3 (7) Add or subtract the amount necessary to make the adjusted
356	356	4 gross income of any taxpayer that placed Section 179 property (as
357	357	5 defined in Section 179 of the Internal Revenue Code) in service
358	358	6 in the current taxable year or in an earlier taxable year equal to
359	359	7 the amount of adjusted gross income that would have been
360	360	8 computed had an election for federal income tax purposes not
361	361	9 been made for the year in which the property was placed in
362	362	10 service to take deductions under Section 179 of the Internal
363	363	11 Revenue Code in a total amount exceeding the sum of:
364	364	12 (A) twenty-five thousand dollars ($25,000) to the extent
365	365	13 deductions under Section 179 of the Internal Revenue Code
366	366	14 were not elected as provided in clause (B); and
367	367	15 (B) for taxable years beginning after December 31, 2017, the
368	368	16 deductions elected under Section 179 of the Internal Revenue
369	369	17 Code on property acquired in an exchange if:
370	370	18 (i) the exchange would have been eligible for
371	371	19 nonrecognition of gain or loss under Section 1031 of the
372	372	20 Internal Revenue Code in effect on January 1, 2017;
373	373	21 (ii) the exchange is not eligible for nonrecognition of gain or
374	374	22 loss under Section 1031 of the Internal Revenue Code; and
375	375	23 (iii) the taxpayer made an election to take deductions under
376	376	24 Section 179 of the Internal Revenue Code with regard to the
377	377	25 acquired property in the year that the property was placed
378	378	26 into service.
379	379	27 The amount of deductions allowable for an item of property
380	380	28 under this clause may not exceed the amount of adjusted gross
381	381	29 income realized on the property that would have been deferred
382	382	30 under the Internal Revenue Code in effect on January 1, 2017.
383	383	31 (8) Add to the extent required by IC 6-3-2-20:
384	384	32 (A) the amount of intangible expenses (as defined in
385	385	33 IC 6-3-2-20) for the taxable year that reduced the corporation's
386	386	34 taxable income (as defined in Section 63 of the Internal
387	387	35 Revenue Code) for federal income tax purposes; and
388	388	36 (B) any directly related interest expenses (as defined in
389	389	37 IC 6-3-2-20) that reduced the corporation's adjusted gross
390	390	38 income (determined without regard to this subdivision). For
391	391	39 purposes of this clause, any directly related interest expense
392	392	40 that constitutes business interest within the meaning of Section
393	393	41 163(j) of the Internal Revenue Code shall be considered to
394	394	42 have reduced the taxpayer's federal taxable income only in the
395	395	2023 IN 223—LS 6342/DI 134 10
396	396	1 first taxable year in which the deduction otherwise would have
397	397	2 been allowable under Section 163 of the Internal Revenue
398	398	3 Code if the limitation under Section 163(j)(1) of the Internal
399	399	4 Revenue Code did not exist.
400	400	5 (9) Add an amount equal to any deduction for dividends paid (as
401	401	6 defined in Section 561 of the Internal Revenue Code) to
402	402	7 shareholders of a captive real estate investment trust (as defined
403	403	8 in section 34.5 of this chapter).
404	404	9 (10) Subtract income that is:
405	405	10 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
406	406	11 derived from patents); and
407	407	12 (B) included in the corporation's taxable income under the
408	408	13 Internal Revenue Code.
409	409	14 (11) Add an amount equal to any income not included in gross
410	410	15 income as a result of the deferral of income arising from business
411	411	16 indebtedness discharged in connection with the reacquisition after
412	412	17 December 31, 2008, and before January 1, 2011, of an applicable
413	413	18 debt instrument, as provided in Section 108(i) of the Internal
414	414	19 Revenue Code. Subtract from the adjusted gross income of any
415	415	20 taxpayer that added an amount to adjusted gross income in a
416	416	21 previous year the amount necessary to offset the amount included
417	417	22 in federal gross income as a result of the deferral of income
418	418	23 arising from business indebtedness discharged in connection with
419	419	24 the reacquisition after December 31, 2008, and before January 1,
420	420	25 2011, of an applicable debt instrument, as provided in Section
421	421	26 108(i) of the Internal Revenue Code.
422	422	27 (12) Add the amount excluded from federal gross income under
423	423	28 Section 103 of the Internal Revenue Code for interest received on
424	424	29 an obligation of a state other than Indiana, or a political
425	425	30 subdivision of such a state, that is acquired by the taxpayer after
426	426	31 December 31, 2011.
427	427	32 (13) For taxable years beginning after December 25, 2016:
428	428	33 (A) for a corporation other than a real estate investment trust,
429	429	34 add:
430	430	35 (i) an amount equal to the amount reported by the taxpayer
431	431	36 on IRC 965 Transition Tax Statement, line 1; or
432	432	37 (ii) if the taxpayer deducted an amount under Section 965(c)
433	433	38 of the Internal Revenue Code in determining the taxpayer's
434	434	39 taxable income for purposes of the federal income tax, the
435	435	40 amount deducted under Section 965(c) of the Internal
436	436	41 Revenue Code; and
437	437	42 (B) for a real estate investment trust, add an amount equal to
438	438	2023 IN 223—LS 6342/DI 134 11
439	439	1 the deduction for deferred foreign income that was claimed by
440	440	2 the taxpayer for the taxable year under Section 965(c) of the
441	441	3 Internal Revenue Code, but only to the extent that the taxpayer
442	442	4 included income pursuant to Section 965 of the Internal
443	443	5 Revenue Code in its taxable income for federal income tax
444	444	6 purposes or is required to add back dividends paid under
445	445	7 subdivision (9).
446	446	8 (14) Add an amount equal to the deduction that was claimed by
447	447	9 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
448	448	10 Internal Revenue Code (attributable to global intangible
449	449	11 low-taxed income). The taxpayer shall separately specify the
450	450	12 amount of the reduction under Section 250(a)(1)(B)(i) of the
451	451	13 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
452	452	14 Internal Revenue Code.
453	453	15 (15) Subtract any interest expense paid or accrued in the current
454	454	16 taxable year but not deducted as a result of the limitation imposed
455	455	17 under Section 163(j)(1) of the Internal Revenue Code. Add any
456	456	18 interest expense paid or accrued in a previous taxable year but
457	457	19 allowed as a deduction under Section 163 of the Internal Revenue
458	458	20 Code in the current taxable year. For purposes of this subdivision,
459	459	21 an interest expense is considered paid or accrued only in the first
460	460	22 taxable year the deduction would have been allowable under
461	461	23 Section 163 of the Internal Revenue Code if the limitation under
462	462	24 Section 163(j)(1) of the Internal Revenue Code did not exist.
463	463	25 (16) Subtract the amount that would have been excluded from
464	464	26 gross income but for the enactment of Section 118(b)(2) of the
465	465	27 Internal Revenue Code for taxable years ending after December
466	466	28 22, 2017.
467	467	29 (17) Add an amount equal to the remainder of:
468	468	30 (A) the amount allowable as a deduction under Section 274(n)
469	469	31 of the Internal Revenue Code; minus
470	470	32 (B) the amount otherwise allowable as a deduction under
471	471	33 Section 274(n) of the Internal Revenue Code, if Section
472	472	34 274(n)(2)(D) of the Internal Revenue Code was not in effect
473	473	35 for amounts paid or incurred after December 31, 2020.
474	474	36 (18) For taxable years ending after March 12, 2020, subtract an
475	475	37 amount equal to the deduction disallowed pursuant to:
476	476	38 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
477	477	39 as modified by Sections 206 and 207 of the Taxpayer Certainty
478	478	40 and Disaster Relief Tax Act (Division EE of Public Law
479	479	41 116-260); and
480	480	42 (B) Section 3134(e) of the Internal Revenue Code.
481	481	2023 IN 223—LS 6342/DI 134 12
482	482	1 (19) For taxable years beginning after December 31, 2022,
483	483	2 subtract an amount equal to the deduction disallowed under
484	484	3 Section 280C(h) of the Internal Revenue Code.
485	485	4 (20) Add or subtract any other amounts the taxpayer is:
486	486	5 (A) required to add or subtract; or
487	487	6 (B) entitled to deduct;
488	488	7 under IC 6-3-2.
489	489	8 (c) The following apply to taxable years beginning after December
490	490	9 31, 2018, for purposes of the add back of any deduction allowed on the
491	491	10 taxpayer's federal income tax return for wagering taxes, as provided in
492	492	11 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
493	493	12 the taxpayer is a corporation:
494	494	13 (1) For taxable years beginning after December 31, 2018, and
495	495	14 before January 1, 2020, a taxpayer is required to add back under
496	496	15 this section eighty-seven and five-tenths percent (87.5%) of any
497	497	16 deduction allowed on the taxpayer's federal income tax return for
498	498	17 wagering taxes.
499	499	18 (2) For taxable years beginning after December 31, 2019, and
500	500	19 before January 1, 2021, a taxpayer is required to add back under
501	501	20 this section seventy-five percent (75%) of any deduction allowed
502	502	21 on the taxpayer's federal income tax return for wagering taxes.
503	503	22 (3) For taxable years beginning after December 31, 2020, and
504	504	23 before January 1, 2022, a taxpayer is required to add back under
505	505	24 this section sixty-two and five-tenths percent (62.5%) of any
506	506	25 deduction allowed on the taxpayer's federal income tax return for
507	507	26 wagering taxes.
508	508	27 (4) For taxable years beginning after December 31, 2021, and
509	509	28 before January 1, 2023, a taxpayer is required to add back under
510	510	29 this section fifty percent (50%) of any deduction allowed on the
511	511	30 taxpayer's federal income tax return for wagering taxes.
512	512	31 (5) For taxable years beginning after December 31, 2022, and
513	513	32 before January 1, 2024, a taxpayer is required to add back under
514	514	33 this section thirty-seven and five-tenths percent (37.5%) of any
515	515	34 deduction allowed on the taxpayer's federal income tax return for
516	516	35 wagering taxes.
517	517	36 (6) For taxable years beginning after December 31, 2023, and
518	518	37 before January 1, 2025, a taxpayer is required to add back under
519	519	38 this section twenty-five percent (25%) of any deduction allowed
520	520	39 on the taxpayer's federal income tax return for wagering taxes.
521	521	40 (7) For taxable years beginning after December 31, 2024, and
522	522	41 before January 1, 2026, a taxpayer is required to add back under
523	523	42 this section twelve and five-tenths percent (12.5%) of any
524	524	2023 IN 223—LS 6342/DI 134 13
525	525	1 deduction allowed on the taxpayer's federal income tax return for
526	526	2 wagering taxes.
527	527	3 (8) For taxable years beginning after December 31, 2025, a
528	528	4 taxpayer is not required to add back under this section any amount
529	529	5 of a deduction allowed on the taxpayer's federal income tax return
530	530	6 for wagering taxes.
531	531	7 (d) In the case of life insurance companies (as defined in Section
532	532	8 816(a) of the Internal Revenue Code) that are organized under Indiana
533	533	9 law, the same as "life insurance company taxable income" (as defined
534	534	10 in Section 801 of the Internal Revenue Code), adjusted as follows:
535	535	11 (1) Subtract income that is exempt from taxation under this article
536	536	12 by the Constitution and statutes of the United States.
537	537	13 (2) Add an amount equal to any deduction allowed or allowable
538	538	14 under Section 170 of the Internal Revenue Code (concerning
539	539	15 charitable contributions).
540	540	16 (3) Add an amount equal to a deduction allowed or allowable
541	541	17 under Section 805 or Section 832(c) of the Internal Revenue Code
542	542	18 for taxes based on or measured by income and levied at the state
543	543	19 level by any state.
544	544	20 (4) Subtract an amount equal to the amount included in the
545	545	21 company's taxable income under Section 78 of the Internal
546	546	22 Revenue Code (concerning foreign tax credits).
547	547	23 (5) Add or subtract the amount necessary to make the adjusted
548	548	24 gross income of any taxpayer that owns property for which bonus
549	549	25 depreciation was allowed in the current taxable year or in an
550	550	26 earlier taxable year equal to the amount of adjusted gross income
551	551	27 that would have been computed had an election not been made
552	552	28 under Section 168(k) of the Internal Revenue Code to apply bonus
553	553	29 depreciation to the property in the year that it was placed in
554	554	30 service.
555	555	31 (6) Add an amount equal to any deduction allowed under Section
556	556	32 172 of the Internal Revenue Code (concerning net operating
557	557	33 losses).
558	558	34 (7) Add or subtract the amount necessary to make the adjusted
559	559	35 gross income of any taxpayer that placed Section 179 property (as
560	560	36 defined in Section 179 of the Internal Revenue Code) in service
561	561	37 in the current taxable year or in an earlier taxable year equal to
562	562	38 the amount of adjusted gross income that would have been
563	563	39 computed had an election for federal income tax purposes not
564	564	40 been made for the year in which the property was placed in
565	565	41 service to take deductions under Section 179 of the Internal
566	566	42 Revenue Code in a total amount exceeding the sum of:
567	567	2023 IN 223—LS 6342/DI 134 14
568	568	1 (A) twenty-five thousand dollars ($25,000) to the extent
569	569	2 deductions under Section 179 of the Internal Revenue Code
570	570	3 were not elected as provided in clause (B); and
571	571	4 (B) for taxable years beginning after December 31, 2017, the
572	572	5 deductions elected under Section 179 of the Internal Revenue
573	573	6 Code on property acquired in an exchange if:
574	574	7 (i) the exchange would have been eligible for
575	575	8 nonrecognition of gain or loss under Section 1031 of the
576	576	9 Internal Revenue Code in effect on January 1, 2017;
577	577	10 (ii) the exchange is not eligible for nonrecognition of gain or
578	578	11 loss under Section 1031 of the Internal Revenue Code; and
579	579	12 (iii) the taxpayer made an election to take deductions under
580	580	13 Section 179 of the Internal Revenue Code with regard to the
581	581	14 acquired property in the year that the property was placed
582	582	15 into service.
583	583	16 The amount of deductions allowable for an item of property
584	584	17 under this clause may not exceed the amount of adjusted gross
585	585	18 income realized on the property that would have been deferred
586	586	19 under the Internal Revenue Code in effect on January 1, 2017.
587	587	20 (8) Subtract income that is:
588	588	21 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
589	589	22 derived from patents); and
590	590	23 (B) included in the insurance company's taxable income under
591	591	24 the Internal Revenue Code.
592	592	25 (9) Add an amount equal to any income not included in gross
593	593	26 income as a result of the deferral of income arising from business
594	594	27 indebtedness discharged in connection with the reacquisition after
595	595	28 December 31, 2008, and before January 1, 2011, of an applicable
596	596	29 debt instrument, as provided in Section 108(i) of the Internal
597	597	30 Revenue Code. Subtract from the adjusted gross income of any
598	598	31 taxpayer that added an amount to adjusted gross income in a
599	599	32 previous year the amount necessary to offset the amount included
600	600	33 in federal gross income as a result of the deferral of income
601	601	34 arising from business indebtedness discharged in connection with
602	602	35 the reacquisition after December 31, 2008, and before January 1,
603	603	36 2011, of an applicable debt instrument, as provided in Section
604	604	37 108(i) of the Internal Revenue Code.
605	605	38 (10) Add an amount equal to any exempt insurance income under
606	606	39 Section 953(e) of the Internal Revenue Code that is active
607	607	40 financing income under Subpart F of Subtitle A, Chapter 1,
608	608	41 Subchapter N of the Internal Revenue Code.
609	609	42 (11) Add the amount excluded from federal gross income under
610	610	2023 IN 223—LS 6342/DI 134 15
611	611	1 Section 103 of the Internal Revenue Code for interest received on
612	612	2 an obligation of a state other than Indiana, or a political
613	613	3 subdivision of such a state, that is acquired by the taxpayer after
614	614	4 December 31, 2011.
615	615	5 (12) For taxable years beginning after December 25, 2016, add:
616	616	6 (A) an amount equal to the amount reported by the taxpayer on
617	617	7 IRC 965 Transition Tax Statement, line 1; or
618	618	8 (B) if the taxpayer deducted an amount under Section 965(c)
619	619	9 of the Internal Revenue Code in determining the taxpayer's
620	620	10 taxable income for purposes of the federal income tax, the
621	621	11 amount deducted under Section 965(c) of the Internal Revenue
622	622	12 Code.
623	623	13 (13) Add an amount equal to the deduction that was claimed by
624	624	14 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
625	625	15 Internal Revenue Code (attributable to global intangible
626	626	16 low-taxed income). The taxpayer shall separately specify the
627	627	17 amount of the reduction under Section 250(a)(1)(B)(i) of the
628	628	18 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
629	629	19 Internal Revenue Code.
630	630	20 (14) Subtract any interest expense paid or accrued in the current
631	631	21 taxable year but not deducted as a result of the limitation imposed
632	632	22 under Section 163(j)(1) of the Internal Revenue Code. Add any
633	633	23 interest expense paid or accrued in a previous taxable year but
634	634	24 allowed as a deduction under Section 163 of the Internal Revenue
635	635	25 Code in the current taxable year. For purposes of this subdivision,
636	636	26 an interest expense is considered paid or accrued only in the first
637	637	27 taxable year the deduction would have been allowable under
638	638	28 Section 163 of the Internal Revenue Code if the limitation under
639	639	29 Section 163(j)(1) of the Internal Revenue Code did not exist.
640	640	30 (15) Subtract the amount that would have been excluded from
641	641	31 gross income but for the enactment of Section 118(b)(2) of the
642	642	32 Internal Revenue Code for taxable years ending after December
643	643	33 22, 2017.
644	644	34 (16) Add an amount equal to the remainder of:
645	645	35 (A) the amount allowable as a deduction under Section 274(n)
646	646	36 of the Internal Revenue Code; minus
647	647	37 (B) the amount otherwise allowable as a deduction under
648	648	38 Section 274(n) of the Internal Revenue Code, if Section
649	649	39 274(n)(2)(D) of the Internal Revenue Code was not in effect
650	650	40 for amounts paid or incurred after December 31, 2020.
651	651	41 (17) For taxable years ending after March 12, 2020, subtract an
652	652	42 amount equal to the deduction disallowed pursuant to:
653	653	2023 IN 223—LS 6342/DI 134 16
654	654	1 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
655	655	2 as modified by Sections 206 and 207 of the Taxpayer Certainty
656	656	3 and Disaster Relief Tax Act (Division EE of Public Law
657	657	4 116-260); and
658	658	5 (B) Section 3134(e) of the Internal Revenue Code.
659	659	6 (18) For taxable years beginning after December 31, 2022,
660	660	7 subtract an amount equal to the deduction disallowed under
661	661	8 Section 280C(h) of the Internal Revenue Code.
662	662	9 (19) Add or subtract any other amounts the taxpayer is:
663	663	10 (A) required to add or subtract; or
664	664	11 (B) entitled to deduct;
665	665	12 under IC 6-3-2.
666	666	13 (e) In the case of insurance companies subject to tax under Section
667	667	14 831 of the Internal Revenue Code and organized under Indiana law, the
668	668	15 same as "taxable income" (as defined in Section 832 of the Internal
669	669	16 Revenue Code), adjusted as follows:
670	670	17 (1) Subtract income that is exempt from taxation under this article
671	671	18 by the Constitution and statutes of the United States.
672	672	19 (2) Add an amount equal to any deduction allowed or allowable
673	673	20 under Section 170 of the Internal Revenue Code (concerning
674	674	21 charitable contributions).
675	675	22 (3) Add an amount equal to a deduction allowed or allowable
676	676	23 under Section 805 or Section 832(c) of the Internal Revenue Code
677	677	24 for taxes based on or measured by income and levied at the state
678	678	25 level by any state.
679	679	26 (4) Subtract an amount equal to the amount included in the
680	680	27 company's taxable income under Section 78 of the Internal
681	681	28 Revenue Code (concerning foreign tax credits).
682	682	29 (5) Add or subtract the amount necessary to make the adjusted
683	683	30 gross income of any taxpayer that owns property for which bonus
684	684	31 depreciation was allowed in the current taxable year or in an
685	685	32 earlier taxable year equal to the amount of adjusted gross income
686	686	33 that would have been computed had an election not been made
687	687	34 under Section 168(k) of the Internal Revenue Code to apply bonus
688	688	35 depreciation to the property in the year that it was placed in
689	689	36 service.
690	690	37 (6) Add an amount equal to any deduction allowed under Section
691	691	38 172 of the Internal Revenue Code (concerning net operating
692	692	39 losses).
693	693	40 (7) Add or subtract the amount necessary to make the adjusted
694	694	41 gross income of any taxpayer that placed Section 179 property (as
695	695	42 defined in Section 179 of the Internal Revenue Code) in service
696	696	2023 IN 223—LS 6342/DI 134 17
697	697	1 in the current taxable year or in an earlier taxable year equal to
698	698	2 the amount of adjusted gross income that would have been
699	699	3 computed had an election for federal income tax purposes not
700	700	4 been made for the year in which the property was placed in
701	701	5 service to take deductions under Section 179 of the Internal
702	702	6 Revenue Code in a total amount exceeding the sum of:
703	703	7 (A) twenty-five thousand dollars ($25,000) to the extent
704	704	8 deductions under Section 179 of the Internal Revenue Code
705	705	9 were not elected as provided in clause (B); and
706	706	10 (B) for taxable years beginning after December 31, 2017, the
707	707	11 deductions elected under Section 179 of the Internal Revenue
708	708	12 Code on property acquired in an exchange if:
709	709	13 (i) the exchange would have been eligible for
710	710	14 nonrecognition of gain or loss under Section 1031 of the
711	711	15 Internal Revenue Code in effect on January 1, 2017;
712	712	16 (ii) the exchange is not eligible for nonrecognition of gain or
713	713	17 loss under Section 1031 of the Internal Revenue Code; and
714	714	18 (iii) the taxpayer made an election to take deductions under
715	715	19 Section 179 of the Internal Revenue Code with regard to the
716	716	20 acquired property in the year that the property was placed
717	717	21 into service.
718	718	22 The amount of deductions allowable for an item of property
719	719	23 under this clause may not exceed the amount of adjusted gross
720	720	24 income realized on the property that would have been deferred
721	721	25 under the Internal Revenue Code in effect on January 1, 2017.
722	722	26 (8) Subtract income that is:
723	723	27 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
724	724	28 derived from patents); and
725	725	29 (B) included in the insurance company's taxable income under
726	726	30 the Internal Revenue Code.
727	727	31 (9) Add an amount equal to any income not included in gross
728	728	32 income as a result of the deferral of income arising from business
729	729	33 indebtedness discharged in connection with the reacquisition after
730	730	34 December 31, 2008, and before January 1, 2011, of an applicable
731	731	35 debt instrument, as provided in Section 108(i) of the Internal
732	732	36 Revenue Code. Subtract from the adjusted gross income of any
733	733	37 taxpayer that added an amount to adjusted gross income in a
734	734	38 previous year the amount necessary to offset the amount included
735	735	39 in federal gross income as a result of the deferral of income
736	736	40 arising from business indebtedness discharged in connection with
737	737	41 the reacquisition after December 31, 2008, and before January 1,
738	738	42 2011, of an applicable debt instrument, as provided in Section
739	739	2023 IN 223—LS 6342/DI 134 18
740	740	1 108(i) of the Internal Revenue Code.
741	741	2 (10) Add an amount equal to any exempt insurance income under
742	742	3 Section 953(e) of the Internal Revenue Code that is active
743	743	4 financing income under Subpart F of Subtitle A, Chapter 1,
744	744	5 Subchapter N of the Internal Revenue Code.
745	745	6 (11) Add the amount excluded from federal gross income under
746	746	7 Section 103 of the Internal Revenue Code for interest received on
747	747	8 an obligation of a state other than Indiana, or a political
748	748	9 subdivision of such a state, that is acquired by the taxpayer after
749	749	10 December 31, 2011.
750	750	11 (12) For taxable years beginning after December 25, 2016, add:
751	751	12 (A) an amount equal to the amount reported by the taxpayer on
752	752	13 IRC 965 Transition Tax Statement, line 1; or
753	753	14 (B) if the taxpayer deducted an amount under Section 965(c)
754	754	15 of the Internal Revenue Code in determining the taxpayer's
755	755	16 taxable income for purposes of the federal income tax, the
756	756	17 amount deducted under Section 965(c) of the Internal Revenue
757	757	18 Code.
758	758	19 (13) Add an amount equal to the deduction that was claimed by
759	759	20 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
760	760	21 Internal Revenue Code (attributable to global intangible
761	761	22 low-taxed income). The taxpayer shall separately specify the
762	762	23 amount of the reduction under Section 250(a)(1)(B)(i) of the
763	763	24 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
764	764	25 Internal Revenue Code.
765	765	26 (14) Subtract any interest expense paid or accrued in the current
766	766	27 taxable year but not deducted as a result of the limitation imposed
767	767	28 under Section 163(j)(1) of the Internal Revenue Code. Add any
768	768	29 interest expense paid or accrued in a previous taxable year but
769	769	30 allowed as a deduction under Section 163 of the Internal Revenue
770	770	31 Code in the current taxable year. For purposes of this subdivision,
771	771	32 an interest expense is considered paid or accrued only in the first
772	772	33 taxable year the deduction would have been allowable under
773	773	34 Section 163 of the Internal Revenue Code if the limitation under
774	774	35 Section 163(j)(1) of the Internal Revenue Code did not exist.
775	775	36 (15) Subtract the amount that would have been excluded from
776	776	37 gross income but for the enactment of Section 118(b)(2) of the
777	777	38 Internal Revenue Code for taxable years ending after December
778	778	39 22, 2017.
779	779	40 (16) Add an amount equal to the remainder of:
780	780	41 (A) the amount allowable as a deduction under Section 274(n)
781	781	42 of the Internal Revenue Code; minus
782	782	2023 IN 223—LS 6342/DI 134 19
783	783	1 (B) the amount otherwise allowable as a deduction under
784	784	2 Section 274(n) of the Internal Revenue Code, if Section
785	785	3 274(n)(2)(D) of the Internal Revenue Code was not in effect
786	786	4 for amounts paid or incurred after December 31, 2020.
787	787	5 (17) For taxable years ending after March 12, 2020, subtract an
788	788	6 amount equal to the deduction disallowed pursuant to:
789	789	7 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
790	790	8 as modified by Sections 206 and 207 of the Taxpayer Certainty
791	791	9 and Disaster Relief Tax Act (Division EE of Public Law
792	792	10 116-260); and
793	793	11 (B) Section 3134(e) of the Internal Revenue Code.
794	794	12 (18) For taxable years beginning after December 31, 2022,
795	795	13 subtract an amount equal to the deduction disallowed under
796	796	14 Section 280C(h) of the Internal Revenue Code.
797	797	15 (19) Add or subtract any other amounts the taxpayer is:
798	798	16 (A) required to add or subtract; or
799	799	17 (B) entitled to deduct;
800	800	18 under IC 6-3-2.
801	801	19 (f) In the case of trusts and estates, "taxable income" (as defined for
802	802	20 trusts and estates in Section 641(b) of the Internal Revenue Code)
803	803	21 adjusted as follows:
804	804	22 (1) Subtract income that is exempt from taxation under this article
805	805	23 by the Constitution and statutes of the United States.
806	806	24 (2) Subtract an amount equal to the amount of a September 11
807	807	25 terrorist attack settlement payment included in the federal
808	808	26 adjusted gross income of the estate of a victim of the September
809	809	27 11 terrorist attack or a trust to the extent the trust benefits a victim
810	810	28 of the September 11 terrorist attack.
811	811	29 (3) Add or subtract the amount necessary to make the adjusted
812	812	30 gross income of any taxpayer that owns property for which bonus
813	813	31 depreciation was allowed in the current taxable year or in an
814	814	32 earlier taxable year equal to the amount of adjusted gross income
815	815	33 that would have been computed had an election not been made
816	816	34 under Section 168(k) of the Internal Revenue Code to apply bonus
817	817	35 depreciation to the property in the year that it was placed in
818	818	36 service.
819	819	37 (4) Add an amount equal to any deduction allowed under Section
820	820	38 172 of the Internal Revenue Code (concerning net operating
821	821	39 losses).
822	822	40 (5) Add or subtract the amount necessary to make the adjusted
823	823	41 gross income of any taxpayer that placed Section 179 property (as
824	824	42 defined in Section 179 of the Internal Revenue Code) in service
825	825	2023 IN 223—LS 6342/DI 134 20
826	826	1 in the current taxable year or in an earlier taxable year equal to
827	827	2 the amount of adjusted gross income that would have been
828	828	3 computed had an election for federal income tax purposes not
829	829	4 been made for the year in which the property was placed in
830	830	5 service to take deductions under Section 179 of the Internal
831	831	6 Revenue Code in a total amount exceeding the sum of:
832	832	7 (A) twenty-five thousand dollars ($25,000) to the extent
833	833	8 deductions under Section 179 of the Internal Revenue Code
834	834	9 were not elected as provided in clause (B); and
835	835	10 (B) for taxable years beginning after December 31, 2017, the
836	836	11 deductions elected under Section 179 of the Internal Revenue
837	837	12 Code on property acquired in an exchange if:
838	838	13 (i) the exchange would have been eligible for
839	839	14 nonrecognition of gain or loss under Section 1031 of the
840	840	15 Internal Revenue Code in effect on January 1, 2017;
841	841	16 (ii) the exchange is not eligible for nonrecognition of gain or
842	842	17 loss under Section 1031 of the Internal Revenue Code; and
843	843	18 (iii) the taxpayer made an election to take deductions under
844	844	19 Section 179 of the Internal Revenue Code with regard to the
845	845	20 acquired property in the year that the property was placed
846	846	21 into service.
847	847	22 The amount of deductions allowable for an item of property
848	848	23 under this clause may not exceed the amount of adjusted gross
849	849	24 income realized on the property that would have been deferred
850	850	25 under the Internal Revenue Code in effect on January 1, 2017.
851	851	26 (6) Subtract income that is:
852	852	27 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
853	853	28 derived from patents); and
854	854	29 (B) included in the taxpayer's taxable income under the
855	855	30 Internal Revenue Code.
856	856	31 (7) Add an amount equal to any income not included in gross
857	857	32 income as a result of the deferral of income arising from business
858	858	33 indebtedness discharged in connection with the reacquisition after
859	859	34 December 31, 2008, and before January 1, 2011, of an applicable
860	860	35 debt instrument, as provided in Section 108(i) of the Internal
861	861	36 Revenue Code. Subtract from the adjusted gross income of any
862	862	37 taxpayer that added an amount to adjusted gross income in a
863	863	38 previous year the amount necessary to offset the amount included
864	864	39 in federal gross income as a result of the deferral of income
865	865	40 arising from business indebtedness discharged in connection with
866	866	41 the reacquisition after December 31, 2008, and before January 1,
867	867	42 2011, of an applicable debt instrument, as provided in Section
868	868	2023 IN 223—LS 6342/DI 134 21
869	869	1 108(i) of the Internal Revenue Code.
870	870	2 (8) Add the amount excluded from federal gross income under
871	871	3 Section 103 of the Internal Revenue Code for interest received on
872	872	4 an obligation of a state other than Indiana, or a political
873	873	5 subdivision of such a state, that is acquired by the taxpayer after
874	874	6 December 31, 2011.
875	875	7 (9) For taxable years beginning after December 25, 2016, add an
876	876	8 amount equal to:
877	877	9 (A) the amount reported by the taxpayer on IRC 965
878	878	10 Transition Tax Statement, line 1;
879	879	11 (B) if the taxpayer deducted an amount under Section 965(c)
880	880	12 of the Internal Revenue Code in determining the taxpayer's
881	881	13 taxable income for purposes of the federal income tax, the
882	882	14 amount deducted under Section 965(c) of the Internal Revenue
883	883	15 Code; and
884	884	16 (C) with regard to any amounts of income under Section 965
885	885	17 of the Internal Revenue Code distributed by the taxpayer, the
886	886	18 deduction under Section 965(c) of the Internal Revenue Code
887	887	19 attributable to such distributed amounts and not reported to the
888	888	20 beneficiary.
889	889	21 For purposes of this article, the amount required to be added back
890	890	22 under clause (B) is not considered to be distributed or
891	891	23 distributable to a beneficiary of the estate or trust for purposes of
892	892	24 Sections 651 and 661 of the Internal Revenue Code.
893	893	25 (10) Subtract any interest expense paid or accrued in the current
894	894	26 taxable year but not deducted as a result of the limitation imposed
895	895	27 under Section 163(j)(1) of the Internal Revenue Code. Add any
896	896	28 interest expense paid or accrued in a previous taxable year but
897	897	29 allowed as a deduction under Section 163 of the Internal Revenue
898	898	30 Code in the current taxable year. For purposes of this subdivision,
899	899	31 an interest expense is considered paid or accrued only in the first
900	900	32 taxable year the deduction would have been allowable under
901	901	33 Section 163 of the Internal Revenue Code if the limitation under
902	902	34 Section 163(j)(1) of the Internal Revenue Code did not exist.
903	903	35 (11) Add an amount equal to the deduction for qualified business
904	904	36 income that was claimed by the taxpayer for the taxable year
905	905	37 under Section 199A of the Internal Revenue Code.
906	906	38 (12) Subtract the amount that would have been excluded from
907	907	39 gross income but for the enactment of Section 118(b)(2) of the
908	908	40 Internal Revenue Code for taxable years ending after December
909	909	41 22, 2017.
910	910	42 (13) Add an amount equal to the remainder of:
911	911	2023 IN 223—LS 6342/DI 134 22
912	912	1 (A) the amount allowable as a deduction under Section 274(n)
913	913	2 of the Internal Revenue Code; minus
914	914	3 (B) the amount otherwise allowable as a deduction under
915	915	4 Section 274(n) of the Internal Revenue Code, if Section
916	916	5 274(n)(2)(D) of the Internal Revenue Code was not in effect
917	917	6 for amounts paid or incurred after December 31, 2020.
918	918	7 (14) For taxable years beginning after December 31, 2017, and
919	919	8 before January 1, 2021, add an amount equal to the excess
920	920	9 business loss of the taxpayer as defined in Section 461(l)(3) of the
921	921	10 Internal Revenue Code. In addition:
922	922	11 (A) If a taxpayer has an excess business loss under this
923	923	12 subdivision and also has modifications under subdivisions (3)
924	924	13 and (5) for property placed in service during the taxable year,
925	925	14 the taxpayer shall treat a portion of the taxable year
926	926	15 modifications for that property as occurring in the taxable year
927	927	16 the property is placed in service and a portion of the
928	928	17 modifications as occurring in the immediately following
929	929	18 taxable year.
930	930	19 (B) The portion of the modifications under subdivisions (3)
931	931	20 and (5) for property placed in service during the taxable year
932	932	21 treated as occurring in the taxable year in which the property
933	933	22 is placed in service equals:
934	934	23 (i) the modification for the property otherwise determined
935	935	24 under this section; minus
936	936	25 (ii) the excess business loss disallowed under this
937	937	26 subdivision;
938	938	27 but not less than zero (0).
939	939	28 (C) The portion of the modifications under subdivisions (3)
940	940	29 and (5) for property placed in service during the taxable year
941	941	30 treated as occurring in the taxable year immediately following
942	942	31 the taxable year in which the property is placed in service
943	943	32 equals the modification for the property otherwise determined
944	944	33 under this section minus the amount in clause (B).
945	945	34 (D) Any reallocation of modifications between taxable years
946	946	35 under clauses (B) and (C) shall be first allocated to the
947	947	36 modification under subdivision (3), then to the modification
948	948	37 under subdivision (5).
949	949	38 (15) For taxable years ending after March 12, 2020, subtract an
950	950	39 amount equal to the deduction disallowed pursuant to:
951	951	40 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
952	952	41 as modified by Sections 206 and 207 of the Taxpayer Certainty
953	953	42 and Disaster Relief Tax Act (Division EE of Public Law
954	954	2023 IN 223—LS 6342/DI 134 23
955	955	1 116-260); and
956	956	2 (B) Section 3134(e) of the Internal Revenue Code.
957	957	3 (16) For taxable years beginning after December 31, 2022,
958	958	4 subtract an amount equal to the deduction disallowed under
959	959	5 Section 280C(h) of the Internal Revenue Code.
960	960	6 (17) Add or subtract any other amounts the taxpayer is:
961	961	7 (A) required to add or subtract; or
962	962	8 (B) entitled to deduct;
963	963	9 under IC 6-3-2.
964	964	10 (g) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(17) may not
965	965	11 be construed to require an add back or allow a deduction or exemption
966	966	12 more than once for a particular add back, deduction, or exemption.
967	967	13 (h) For taxable years beginning after December 25, 2016, if:
968	968	14 (1) a taxpayer is a shareholder, either directly or indirectly, in a
969	969	15 corporation that is an E&P deficit foreign corporation as defined
970	970	16 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
971	971	17 earnings and profit deficit, or a portion of the earnings and profit
972	972	18 deficit, of the E&P deficit foreign corporation is permitted to
973	973	19 reduce the federal adjusted gross income or federal taxable
974	974	20 income of the taxpayer, the deficit, or the portion of the deficit,
975	975	21 shall also reduce the amount taxable under this section to the
976	976	22 extent permitted under the Internal Revenue Code, however, in no
977	977	23 case shall this permit a reduction in the amount taxable under
978	978	24 Section 965 of the Internal Revenue Code for purposes of this
979	979	25 section to be less than zero (0); and
980	980	26 (2) the Internal Revenue Service issues guidance that such an
981	981	27 income or deduction is not reported directly on a federal tax
982	982	28 return or is to be reported in a manner different than specified in
983	983	29 this section, this section shall be construed as if federal adjusted
984	984	30 gross income or federal taxable income included the income or
985	985	31 deduction.
986	986	32 (i) If a partner is required to include an item of income, a deduction,
987	987	33 or another tax attribute in the partner's adjusted gross income tax return
988	988	34 pursuant to IC 6-3-4.5, such item shall be considered to be includible
989	989	35 in the partner's federal adjusted gross income or federal taxable
990	990	36 income, regardless of whether such item is actually required to be
991	991	37 reported by the partner for federal income tax purposes. For purposes
992	992	38 of this subsection:
993	993	39 (1) items for which a valid election is made under IC 6-3-4.5-6,
994	994	40 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
995	995	41 in the partner's adjusted gross income or taxable income; and
996	996	42 (2) items for which the partnership did not make an election under
997	997	2023 IN 223—LS 6342/DI 134 24
998	998	1 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
999	999	2 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
1000	1000	3 shall be included in the partner's adjusted gross income or taxable
1001	1001	4 income.
1002	1002	2023 IN 223—LS 6342/DI 134