Indiana 2023 Regular Session

Indiana Senate Bill SB0313 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. 313
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-1-3.5; IC 6-5.5-1-2.
7	7	Synopsis: Accelerated depreciation. Couples Indiana depreciation
8	8	provisions with federal depreciation provisions under Section 179 of
9	9	the Internal Revenue Code.
10	10	Effective: January 1, 2023 (retroactive).
11	11	Rogers, Buchanan
12	12	January 12, 2023, read first time and referred to Committee on Appropriations.
13	13	2023 IN 313—LS 6306/DI 134 Introduced
14	14	First Regular Session of the 123rd General Assembly (2023)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2022 Regular Session of the General Assembly.
24	24	SENATE BILL No. 313
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.180-2022(ss),
29	29	2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30	30	3 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 3.5. When used in this
31	31	4 article, the term "adjusted gross income" shall mean the following:
32	32	5 (a) In the case of all individuals, "adjusted gross income" (as
33	33	6 defined in Section 62 of the Internal Revenue Code), modified as
34	34	7 follows:
35	35	8 (1) Subtract income that is exempt from taxation under this article
36	36	9 by the Constitution and statutes of the United States.
37	37	10 (2) Except as provided in subsection (c), add an amount equal to
38	38	11 any deduction or deductions allowed or allowable pursuant to
39	39	12 Section 62 of the Internal Revenue Code for taxes based on or
40	40	13 measured by income and levied at the state level by any state of
41	41	14 the United States.
42	42	15 (3) Subtract one thousand dollars ($1,000), or in the case of a
43	43	16 joint return filed by a husband and wife, subtract for each spouse
44	44	17 one thousand dollars ($1,000).
45	45	2023 IN 313—LS 6306/DI 134 2
46	46	1 (4) Subtract one thousand dollars ($1,000) for:
47	47	2 (A) each of the exemptions provided by Section 151(c) of the
48	48	3 Internal Revenue Code (as effective January 1, 2017);
49	49	4 (B) each additional amount allowable under Section 63(f) of
50	50	5 the Internal Revenue Code; and
51	51	6 (C) the spouse of the taxpayer if a separate return is made by
52	52	7 the taxpayer and if the spouse, for the calendar year in which
53	53	8 the taxable year of the taxpayer begins, has no gross income
54	54	9 and is not the dependent of another taxpayer.
55	55	10 (5) Subtract:
56	56	11 (A) One thousand five hundred dollars ($1,500) for each of the
57	57	12 exemptions allowed under Section 151(c)(1)(B) of the Internal
58	58	13 Revenue Code (as effective January 1, 2004).
59	59	14 (B) One thousand five hundred dollars ($1,500) for each
60	60	15 exemption allowed under Section 151(c) of the Internal
61	61	16 Revenue Code (as effective January 1, 2017) for an individual:
62	62	17 (i) who is less than nineteen (19) years of age or is a
63	63	18 full-time student who is less than twenty-four (24) years of
64	64	19 age;
65	65	20 (ii) for whom the taxpayer is the legal guardian; and
66	66	21 (iii) for whom the taxpayer does not claim an exemption
67	67	22 under clause (A).
68	68	23 (C) Five hundred dollars ($500) for each additional amount
69	69	24 allowable under Section 63(f)(1) of the Internal Revenue Code
70	70	25 if the federal adjusted gross income of the taxpayer, or the
71	71	26 taxpayer and the taxpayer's spouse in the case of a joint return,
72	72	27 is less than forty thousand dollars ($40,000). In the case of a
73	73	28 married individual filing a separate return, the qualifying
74	74	29 income amount in this clause is equal to twenty thousand
75	75	30 dollars ($20,000).
76	76	31 (D) Three thousand dollars ($3,000) for each exemption
77	77	32 allowed under Section 151(c) of the Internal Revenue Code (as
78	78	33 effective January 1, 2017) for an individual who is:
79	79	34 (i) an adopted child of the taxpayer; and
80	80	35 (ii) less than nineteen (19) years of age or is a full-time
81	81	36 student who is less than twenty-four (24) years of age.
82	82	37 This amount is in addition to any amount subtracted under
83	83	38 clause (A) or (B).
84	84	39 This amount is in addition to the amount subtracted under
85	85	40 subdivision (4).
86	86	41 (6) Subtract any amounts included in federal adjusted gross
87	87	42 income under Section 111 of the Internal Revenue Code as a
88	88	2023 IN 313—LS 6306/DI 134 3
89	89	1 recovery of items previously deducted as an itemized deduction
90	90	2 from adjusted gross income.
91	91	3 (7) Subtract any amounts included in federal adjusted gross
92	92	4 income under the Internal Revenue Code which amounts were
93	93	5 received by the individual as supplemental railroad retirement
94	94	6 annuities under 45 U.S.C. 231 and which are not deductible under
95	95	7 subdivision (1).
96	96	8 (8) Subtract an amount equal to the amount of federal Social
97	97	9 Security and Railroad Retirement benefits included in a taxpayer's
98	98	10 federal gross income by Section 86 of the Internal Revenue Code.
99	99	11 (9) In the case of a nonresident taxpayer or a resident taxpayer
100	100	12 residing in Indiana for a period of less than the taxpayer's entire
101	101	13 taxable year, the total amount of the deductions allowed pursuant
102	102	14 to subdivisions (3), (4), and (5) shall be reduced to an amount
103	103	15 which bears the same ratio to the total as the taxpayer's income
104	104	16 taxable in Indiana bears to the taxpayer's total income.
105	105	17 (10) In the case of an individual who is a recipient of assistance
106	106	18 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
107	107	19 subtract an amount equal to that portion of the individual's
108	108	20 adjusted gross income with respect to which the individual is not
109	109	21 allowed under federal law to retain an amount to pay state and
110	110	22 local income taxes.
111	111	23 (11) In the case of an eligible individual, subtract the amount of
112	112	24 a Holocaust victim's settlement payment included in the
113	113	25 individual's federal adjusted gross income.
114	114	26 (12) Subtract an amount equal to the portion of any premiums
115	115	27 paid during the taxable year by the taxpayer for a qualified long
116	116	28 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
117	117	29 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
118	118	30 file a joint income tax return or the taxpayer is otherwise entitled
119	119	31 to a deduction under this subdivision for the taxpayer's spouse, or
120	120	32 both.
121	121	33 (13) Subtract an amount equal to the lesser of:
122	122	34 (A) two thousand five hundred dollars ($2,500), or one
123	123	35 thousand two hundred fifty dollars ($1,250) in the case of a
124	124	36 married individual filing a separate return; or
125	125	37 (B) the amount of property taxes that are paid during the
126	126	38 taxable year in Indiana by the individual on the individual's
127	127	39 principal place of residence.
128	128	40 (14) Subtract an amount equal to the amount of a September 11
129	129	41 terrorist attack settlement payment included in the individual's
130	130	42 federal adjusted gross income.
131	131	2023 IN 313—LS 6306/DI 134 4
132	132	1 (15) Add or subtract the amount necessary to make the adjusted
133	133	2 gross income of any taxpayer that owns property for which bonus
134	134	3 depreciation was allowed in the current taxable year or in an
135	135	4 earlier taxable year equal to the amount of adjusted gross income
136	136	5 that would have been computed had an election not been made
137	137	6 under Section 168(k) of the Internal Revenue Code to apply bonus
138	138	7 depreciation to the property in the year that it was placed in
139	139	8 service.
140	140	9 (16) Add an amount equal to any deduction allowed under
141	141	10 Section 172 of the Internal Revenue Code (concerning net
142	142	11 operating losses).
143	143	12 (17) Add or subtract the amount necessary to make the adjusted
144	144	13 gross income of any taxpayer that placed Section 179 property (as
145	145	14 defined in Section 179 of the Internal Revenue Code) in service
146	146	15 in the current taxable year or in an earlier taxable year a taxable
147	147	16 year beginning prior to January 1, 2023, equal to the amount
148	148	17 of adjusted gross income that would have been computed had an
149	149	18 election for federal income tax purposes not been made for the
150	150	19 year in which the property was placed in service to take
151	151	20 deductions under Section 179 of the Internal Revenue Code in a
152	152	21 total amount exceeding the sum of:
153	153	22 (A) twenty-five thousand dollars ($25,000) to the extent
154	154	23 deductions under Section 179 of the Internal Revenue Code
155	155	24 were not elected as provided in clause (B); and
156	156	25 (B) for taxable years beginning after December 31, 2017, the
157	157	26 deductions elected under Section 179 of the Internal Revenue
158	158	27 Code on property acquired in an exchange if:
159	159	28 (i) the exchange would have been eligible for
160	160	29 nonrecognition of gain or loss under Section 1031 of the
161	161	30 Internal Revenue Code in effect on January 1, 2017;
162	162	31 (ii) the exchange is not eligible for nonrecognition of gain or
163	163	32 loss under Section 1031 of the Internal Revenue Code; and
164	164	33 (iii) the taxpayer made an election to take deductions under
165	165	34 Section 179 of the Internal Revenue Code with regard to the
166	166	35 acquired property in the year that the property was placed
167	167	36 into service.
168	168	37 The amount of deductions allowable for an item of property
169	169	38 under this clause may not exceed the amount of adjusted gross
170	170	39 income realized on the property that would have been deferred
171	171	40 under the Internal Revenue Code in effect on January 1, 2017.
172	172	41 (18) Subtract an amount equal to the amount of the taxpayer's
173	173	42 qualified military income that was not excluded from the
174	174	2023 IN 313—LS 6306/DI 134 5
175	175	1 taxpayer's gross income for federal income tax purposes under
176	176	2 Section 112 of the Internal Revenue Code.
177	177	3 (19) Subtract income that is:
178	178	4 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
179	179	5 derived from patents); and
180	180	6 (B) included in the individual's federal adjusted gross income
181	181	7 under the Internal Revenue Code.
182	182	8 (20) Add an amount equal to any income not included in gross
183	183	9 income as a result of the deferral of income arising from business
184	184	10 indebtedness discharged in connection with the reacquisition after
185	185	11 December 31, 2008, and before January 1, 2011, of an applicable
186	186	12 debt instrument, as provided in Section 108(i) of the Internal
187	187	13 Revenue Code. Subtract the amount necessary from the adjusted
188	188	14 gross income of any taxpayer that added an amount to adjusted
189	189	15 gross income in a previous year to offset the amount included in
190	190	16 federal gross income as a result of the deferral of income arising
191	191	17 from business indebtedness discharged in connection with the
192	192	18 reacquisition after December 31, 2008, and before January 1,
193	193	19 2011, of an applicable debt instrument, as provided in Section
194	194	20 108(i) of the Internal Revenue Code.
195	195	21 (21) Add the amount excluded from federal gross income under
196	196	22 Section 103 of the Internal Revenue Code for interest received on
197	197	23 an obligation of a state other than Indiana, or a political
198	198	24 subdivision of such a state, that is acquired by the taxpayer after
199	199	25 December 31, 2011.
200	200	26 (22) Subtract an amount as described in Section 1341(a)(2) of the
201	201	27 Internal Revenue Code to the extent, if any, that the amount was
202	202	28 previously included in the taxpayer's adjusted gross income for a
203	203	29 prior taxable year.
204	204	30 (23) For taxable years beginning after December 25, 2016, add an
205	205	31 amount equal to the deduction for deferred foreign income that
206	206	32 was claimed by the taxpayer for the taxable year under Section
207	207	33 965(c) of the Internal Revenue Code.
208	208	34 (24) Subtract any interest expense paid or accrued in the current
209	209	35 taxable year but not deducted as a result of the limitation imposed
210	210	36 under Section 163(j)(1) of the Internal Revenue Code. Add any
211	211	37 interest expense paid or accrued in a previous taxable year but
212	212	38 allowed as a deduction under Section 163 of the Internal Revenue
213	213	39 Code in the current taxable year. For purposes of this subdivision,
214	214	40 an interest expense is considered paid or accrued only in the first
215	215	41 taxable year the deduction would have been allowable under
216	216	42 Section 163 of the Internal Revenue Code if the limitation under
217	217	2023 IN 313—LS 6306/DI 134 6
218	218	1 Section 163(j)(1) of the Internal Revenue Code did not exist.
219	219	2 (25) Subtract the amount that would have been excluded from
220	220	3 gross income but for the enactment of Section 118(b)(2) of the
221	221	4 Internal Revenue Code for taxable years ending after December
222	222	5 22, 2017.
223	223	6 (26) For taxable years beginning after December 31, 2019, and
224	224	7 before January 1, 2021, add an amount of the deduction claimed
225	225	8 under Section 62(a)(22) of the Internal Revenue Code.
226	226	9 (27) For taxable years beginning after December 31, 2019, for
227	227	10 payments made by an employer under an education assistance
228	228	11 program after March 27, 2020:
229	229	12 (A) add the amount of payments by an employer that are
230	230	13 excluded from the taxpayer's federal gross income under
231	231	14 Section 127(c)(1)(B) of the Internal Revenue Code; and
232	232	15 (B) deduct the interest allowable under Section 221 of the
233	233	16 Internal Revenue Code, if the disallowance under Section
234	234	17 221(e)(1) of the Internal Revenue Code did not apply to the
235	235	18 payments described in clause (A). For purposes of applying
236	236	19 Section 221(b) of the Internal Revenue Code to the amount
237	237	20 allowable under this clause, the amount under clause (A) shall
238	238	21 not be added to adjusted gross income.
239	239	22 (28) Add an amount equal to the remainder of:
240	240	23 (A) the amount allowable as a deduction under Section 274(n)
241	241	24 of the Internal Revenue Code; minus
242	242	25 (B) the amount otherwise allowable as a deduction under
243	243	26 Section 274(n) of the Internal Revenue Code, if Section
244	244	27 274(n)(2)(D) of the Internal Revenue Code was not in effect
245	245	28 for amounts paid or incurred after December 31, 2020.
246	246	29 (29) For taxable years beginning after December 31, 2017, and
247	247	30 before January 1, 2021, add an amount equal to the excess
248	248	31 business loss of the taxpayer as defined in Section 461(l)(3) of the
249	249	32 Internal Revenue Code. In addition:
250	250	33 (A) If a taxpayer has an excess business loss under this
251	251	34 subdivision and also has modifications under subdivisions (15)
252	252	35 and (17) for property placed in service during the taxable year,
253	253	36 the taxpayer shall treat a portion of the taxable year
254	254	37 modifications for that property as occurring in the taxable year
255	255	38 the property is placed in service and a portion of the
256	256	39 modifications as occurring in the immediately following
257	257	40 taxable year.
258	258	41 (B) The portion of the modifications under subdivisions (15)
259	259	42 and (17) for property placed in service during the taxable year
260	260	2023 IN 313—LS 6306/DI 134 7
261	261	1 treated as occurring in the taxable year in which the property
262	262	2 is placed in service equals:
263	263	3 (i) the modification for the property otherwise determined
264	264	4 under this section; minus
265	265	5 (ii) the excess business loss disallowed under this
266	266	6 subdivision;
267	267	7 but not less than zero (0).
268	268	8 (C) The portion of the modifications under subdivisions (15)
269	269	9 and (17) for property placed in service during the taxable year
270	270	10 treated as occurring in the taxable year immediately following
271	271	11 the taxable year in which the property is placed in service
272	272	12 equals the modification for the property otherwise determined
273	273	13 under this section minus the amount in clause (B).
274	274	14 (D) Any reallocation of modifications between taxable years
275	275	15 under clauses (B) and (C) shall be first allocated to the
276	276	16 modification under subdivision (15), then to the modification
277	277	17 under subdivision (17).
278	278	18 (30) Add an amount equal to the amount excluded from federal
279	279	19 gross income under Section 108(f)(5) of the Internal Revenue
280	280	20 Code. For purposes of this subdivision:
281	281	21 (A) if an amount excluded under Section 108(f)(5) of the
282	282	22 Internal Revenue Code would be excludible under Section
283	283	23 108(a)(1)(B) of the Internal Revenue Code, the exclusion
284	284	24 under Section 108(a)(1)(B) of the Internal Revenue Code shall
285	285	25 take precedence; and
286	286	26 (B) if an amount would have been excludible under Section
287	287	27 108(f)(5) of the Internal Revenue Code as in effect on January
288	288	28 1, 2020, the amount is not required to be added back under this
289	289	29 subdivision.
290	290	30 (31) For taxable years ending after March 12, 2020, subtract an
291	291	31 amount equal to the deduction disallowed pursuant to:
292	292	32 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
293	293	33 as modified by Sections 206 and 207 of the Taxpayer Certainty
294	294	34 and Disaster Relief Tax Act (Division EE of Public Law
295	295	35 116-260); and
296	296	36 (B) Section 3134(e) of the Internal Revenue Code.
297	297	37 (32) Subtract the amount of an annual grant amount distributed to
298	298	38 a taxpayer's Indiana education scholarship account under
299	299	39 IC 20-51.4-4-2 that is used for a qualified expense (as defined in
300	300	40 IC 20-51.4-2-9) or to an Indiana enrichment scholarship account
301	301	41 under IC 20-52 that is used for qualified expenses (as defined in
302	302	42 IC 20-52-2-6), to the extent the distribution used for the qualified
303	303	2023 IN 313—LS 6306/DI 134 8
304	304	1 expense is included in the taxpayer's federal adjusted gross
305	305	2 income under the Internal Revenue Code.
306	306	3 (33) For taxable years beginning after December 31, 2019, and
307	307	4 before January 1, 2021, add an amount equal to the amount of
308	308	5 unemployment compensation excluded from federal gross income
309	309	6 under Section 85(c) of the Internal Revenue Code.
310	310	7 (34) For taxable years beginning after December 31, 2022,
311	311	8 subtract an amount equal to the deduction disallowed under
312	312	9 Section 280C(h) of the Internal Revenue Code.
313	313	10 (35) Subtract any other amounts the taxpayer is entitled to deduct
314	314	11 under IC 6-3-2.
315	315	12 (b) In the case of corporations, the same as "taxable income" (as
316	316	13 defined in Section 63 of the Internal Revenue Code) adjusted as
317	317	14 follows:
318	318	15 (1) Subtract income that is exempt from taxation under this article
319	319	16 by the Constitution and statutes of the United States.
320	320	17 (2) Add an amount equal to any deduction or deductions allowed
321	321	18 or allowable pursuant to Section 170 of the Internal Revenue
322	322	19 Code (concerning charitable contributions).
323	323	20 (3) Except as provided in subsection (c), add an amount equal to
324	324	21 any deduction or deductions allowed or allowable pursuant to
325	325	22 Section 63 of the Internal Revenue Code for taxes based on or
326	326	23 measured by income and levied at the state level by any state of
327	327	24 the United States.
328	328	25 (4) Subtract an amount equal to the amount included in the
329	329	26 corporation's taxable income under Section 78 of the Internal
330	330	27 Revenue Code (concerning foreign tax credits).
331	331	28 (5) Add or subtract the amount necessary to make the adjusted
332	332	29 gross income of any taxpayer that owns property for which bonus
333	333	30 depreciation was allowed in the current taxable year or in an
334	334	31 earlier taxable year equal to the amount of adjusted gross income
335	335	32 that would have been computed had an election not been made
336	336	33 under Section 168(k) of the Internal Revenue Code to apply bonus
337	337	34 depreciation to the property in the year that it was placed in
338	338	35 service.
339	339	36 (6) Add an amount equal to any deduction allowed under Section
340	340	37 172 of the Internal Revenue Code (concerning net operating
341	341	38 losses).
342	342	39 (7) Add or subtract the amount necessary to make the adjusted
343	343	40 gross income of any taxpayer that placed Section 179 property (as
344	344	41 defined in Section 179 of the Internal Revenue Code) in service
345	345	42 in the current taxable year or in an earlier taxable year a taxable
346	346	2023 IN 313—LS 6306/DI 134 9
347	347	1 year beginning prior to January 1, 2023, equal to the amount
348	348	2 of adjusted gross income that would have been computed had an
349	349	3 election for federal income tax purposes not been made for the
350	350	4 year in which the property was placed in service to take
351	351	5 deductions under Section 179 of the Internal Revenue Code in a
352	352	6 total amount exceeding the sum of:
353	353	7 (A) twenty-five thousand dollars ($25,000) to the extent
354	354	8 deductions under Section 179 of the Internal Revenue Code
355	355	9 were not elected as provided in clause (B); and
356	356	10 (B) for taxable years beginning after December 31, 2017, the
357	357	11 deductions elected under Section 179 of the Internal Revenue
358	358	12 Code on property acquired in an exchange if:
359	359	13 (i) the exchange would have been eligible for
360	360	14 nonrecognition of gain or loss under Section 1031 of the
361	361	15 Internal Revenue Code in effect on January 1, 2017;
362	362	16 (ii) the exchange is not eligible for nonrecognition of gain or
363	363	17 loss under Section 1031 of the Internal Revenue Code; and
364	364	18 (iii) the taxpayer made an election to take deductions under
365	365	19 Section 179 of the Internal Revenue Code with regard to the
366	366	20 acquired property in the year that the property was placed
367	367	21 into service.
368	368	22 The amount of deductions allowable for an item of property
369	369	23 under this clause may not exceed the amount of adjusted gross
370	370	24 income realized on the property that would have been deferred
371	371	25 under the Internal Revenue Code in effect on January 1, 2017.
372	372	26 (8) Add to the extent required by IC 6-3-2-20:
373	373	27 (A) the amount of intangible expenses (as defined in
374	374	28 IC 6-3-2-20) for the taxable year that reduced the corporation's
375	375	29 taxable income (as defined in Section 63 of the Internal
376	376	30 Revenue Code) for federal income tax purposes; and
377	377	31 (B) any directly related interest expenses (as defined in
378	378	32 IC 6-3-2-20) that reduced the corporation's adjusted gross
379	379	33 income (determined without regard to this subdivision). For
380	380	34 purposes of this clause, any directly related interest expense
381	381	35 that constitutes business interest within the meaning of Section
382	382	36 163(j) of the Internal Revenue Code shall be considered to
383	383	37 have reduced the taxpayer's federal taxable income only in the
384	384	38 first taxable year in which the deduction otherwise would have
385	385	39 been allowable under Section 163 of the Internal Revenue
386	386	40 Code if the limitation under Section 163(j)(1) of the Internal
387	387	41 Revenue Code did not exist.
388	388	42 (9) Add an amount equal to any deduction for dividends paid (as
389	389	2023 IN 313—LS 6306/DI 134 10
390	390	1 defined in Section 561 of the Internal Revenue Code) to
391	391	2 shareholders of a captive real estate investment trust (as defined
392	392	3 in section 34.5 of this chapter).
393	393	4 (10) Subtract income that is:
394	394	5 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
395	395	6 derived from patents); and
396	396	7 (B) included in the corporation's taxable income under the
397	397	8 Internal Revenue Code.
398	398	9 (11) Add an amount equal to any income not included in gross
399	399	10 income as a result of the deferral of income arising from business
400	400	11 indebtedness discharged in connection with the reacquisition after
401	401	12 December 31, 2008, and before January 1, 2011, of an applicable
402	402	13 debt instrument, as provided in Section 108(i) of the Internal
403	403	14 Revenue Code. Subtract from the adjusted gross income of any
404	404	15 taxpayer that added an amount to adjusted gross income in a
405	405	16 previous year the amount necessary to offset the amount included
406	406	17 in federal gross income as a result of the deferral of income
407	407	18 arising from business indebtedness discharged in connection with
408	408	19 the reacquisition after December 31, 2008, and before January 1,
409	409	20 2011, of an applicable debt instrument, as provided in Section
410	410	21 108(i) of the Internal Revenue Code.
411	411	22 (12) Add the amount excluded from federal gross income under
412	412	23 Section 103 of the Internal Revenue Code for interest received on
413	413	24 an obligation of a state other than Indiana, or a political
414	414	25 subdivision of such a state, that is acquired by the taxpayer after
415	415	26 December 31, 2011.
416	416	27 (13) For taxable years beginning after December 25, 2016:
417	417	28 (A) for a corporation other than a real estate investment trust,
418	418	29 add:
419	419	30 (i) an amount equal to the amount reported by the taxpayer
420	420	31 on IRC 965 Transition Tax Statement, line 1; or
421	421	32 (ii) if the taxpayer deducted an amount under Section 965(c)
422	422	33 of the Internal Revenue Code in determining the taxpayer's
423	423	34 taxable income for purposes of the federal income tax, the
424	424	35 amount deducted under Section 965(c) of the Internal
425	425	36 Revenue Code; and
426	426	37 (B) for a real estate investment trust, add an amount equal to
427	427	38 the deduction for deferred foreign income that was claimed by
428	428	39 the taxpayer for the taxable year under Section 965(c) of the
429	429	40 Internal Revenue Code, but only to the extent that the taxpayer
430	430	41 included income pursuant to Section 965 of the Internal
431	431	42 Revenue Code in its taxable income for federal income tax
432	432	2023 IN 313—LS 6306/DI 134 11
433	433	1 purposes or is required to add back dividends paid under
434	434	2 subdivision (9).
435	435	3 (14) Add an amount equal to the deduction that was claimed by
436	436	4 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
437	437	5 Internal Revenue Code (attributable to global intangible
438	438	6 low-taxed income). The taxpayer shall separately specify the
439	439	7 amount of the reduction under Section 250(a)(1)(B)(i) of the
440	440	8 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
441	441	9 Internal Revenue Code.
442	442	10 (15) Subtract any interest expense paid or accrued in the current
443	443	11 taxable year but not deducted as a result of the limitation imposed
444	444	12 under Section 163(j)(1) of the Internal Revenue Code. Add any
445	445	13 interest expense paid or accrued in a previous taxable year but
446	446	14 allowed as a deduction under Section 163 of the Internal Revenue
447	447	15 Code in the current taxable year. For purposes of this subdivision,
448	448	16 an interest expense is considered paid or accrued only in the first
449	449	17 taxable year the deduction would have been allowable under
450	450	18 Section 163 of the Internal Revenue Code if the limitation under
451	451	19 Section 163(j)(1) of the Internal Revenue Code did not exist.
452	452	20 (16) Subtract the amount that would have been excluded from
453	453	21 gross income but for the enactment of Section 118(b)(2) of the
454	454	22 Internal Revenue Code for taxable years ending after December
455	455	23 22, 2017.
456	456	24 (17) Add an amount equal to the remainder of:
457	457	25 (A) the amount allowable as a deduction under Section 274(n)
458	458	26 of the Internal Revenue Code; minus
459	459	27 (B) the amount otherwise allowable as a deduction under
460	460	28 Section 274(n) of the Internal Revenue Code, if Section
461	461	29 274(n)(2)(D) of the Internal Revenue Code was not in effect
462	462	30 for amounts paid or incurred after December 31, 2020.
463	463	31 (18) For taxable years ending after March 12, 2020, subtract an
464	464	32 amount equal to the deduction disallowed pursuant to:
465	465	33 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
466	466	34 as modified by Sections 206 and 207 of the Taxpayer Certainty
467	467	35 and Disaster Relief Tax Act (Division EE of Public Law
468	468	36 116-260); and
469	469	37 (B) Section 3134(e) of the Internal Revenue Code.
470	470	38 (19) For taxable years beginning after December 31, 2022,
471	471	39 subtract an amount equal to the deduction disallowed under
472	472	40 Section 280C(h) of the Internal Revenue Code.
473	473	41 (20) Add or subtract any other amounts the taxpayer is:
474	474	42 (A) required to add or subtract; or
475	475	2023 IN 313—LS 6306/DI 134 12
476	476	1 (B) entitled to deduct;
477	477	2 under IC 6-3-2.
478	478	3 (c) The following apply to taxable years beginning after December
479	479	4 31, 2018, for purposes of the add back of any deduction allowed on the
480	480	5 taxpayer's federal income tax return for wagering taxes, as provided in
481	481	6 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
482	482	7 the taxpayer is a corporation:
483	483	8 (1) For taxable years beginning after December 31, 2018, and
484	484	9 before January 1, 2020, a taxpayer is required to add back under
485	485	10 this section eighty-seven and five-tenths percent (87.5%) of any
486	486	11 deduction allowed on the taxpayer's federal income tax return for
487	487	12 wagering taxes.
488	488	13 (2) For taxable years beginning after December 31, 2019, and
489	489	14 before January 1, 2021, a taxpayer is required to add back under
490	490	15 this section seventy-five percent (75%) of any deduction allowed
491	491	16 on the taxpayer's federal income tax return for wagering taxes.
492	492	17 (3) For taxable years beginning after December 31, 2020, and
493	493	18 before January 1, 2022, a taxpayer is required to add back under
494	494	19 this section sixty-two and five-tenths percent (62.5%) of any
495	495	20 deduction allowed on the taxpayer's federal income tax return for
496	496	21 wagering taxes.
497	497	22 (4) For taxable years beginning after December 31, 2021, and
498	498	23 before January 1, 2023, a taxpayer is required to add back under
499	499	24 this section fifty percent (50%) of any deduction allowed on the
500	500	25 taxpayer's federal income tax return for wagering taxes.
501	501	26 (5) For taxable years beginning after December 31, 2022, and
502	502	27 before January 1, 2024, a taxpayer is required to add back under
503	503	28 this section thirty-seven and five-tenths percent (37.5%) of any
504	504	29 deduction allowed on the taxpayer's federal income tax return for
505	505	30 wagering taxes.
506	506	31 (6) For taxable years beginning after December 31, 2023, and
507	507	32 before January 1, 2025, a taxpayer is required to add back under
508	508	33 this section twenty-five percent (25%) of any deduction allowed
509	509	34 on the taxpayer's federal income tax return for wagering taxes.
510	510	35 (7) For taxable years beginning after December 31, 2024, and
511	511	36 before January 1, 2026, a taxpayer is required to add back under
512	512	37 this section twelve and five-tenths percent (12.5%) of any
513	513	38 deduction allowed on the taxpayer's federal income tax return for
514	514	39 wagering taxes.
515	515	40 (8) For taxable years beginning after December 31, 2025, a
516	516	41 taxpayer is not required to add back under this section any amount
517	517	42 of a deduction allowed on the taxpayer's federal income tax return
518	518	2023 IN 313—LS 6306/DI 134 13
519	519	1 for wagering taxes.
520	520	2 (d) In the case of life insurance companies (as defined in Section
521	521	3 816(a) of the Internal Revenue Code) that are organized under Indiana
522	522	4 law, the same as "life insurance company taxable income" (as defined
523	523	5 in Section 801 of the Internal Revenue Code), adjusted as follows:
524	524	6 (1) Subtract income that is exempt from taxation under this article
525	525	7 by the Constitution and statutes of the United States.
526	526	8 (2) Add an amount equal to any deduction allowed or allowable
527	527	9 under Section 170 of the Internal Revenue Code (concerning
528	528	10 charitable contributions).
529	529	11 (3) Add an amount equal to a deduction allowed or allowable
530	530	12 under Section 805 or Section 832(c) of the Internal Revenue Code
531	531	13 for taxes based on or measured by income and levied at the state
532	532	14 level by any state.
533	533	15 (4) Subtract an amount equal to the amount included in the
534	534	16 company's taxable income under Section 78 of the Internal
535	535	17 Revenue Code (concerning foreign tax credits).
536	536	18 (5) Add or subtract the amount necessary to make the adjusted
537	537	19 gross income of any taxpayer that owns property for which bonus
538	538	20 depreciation was allowed in the current taxable year or in an
539	539	21 earlier taxable year equal to the amount of adjusted gross income
540	540	22 that would have been computed had an election not been made
541	541	23 under Section 168(k) of the Internal Revenue Code to apply bonus
542	542	24 depreciation to the property in the year that it was placed in
543	543	25 service.
544	544	26 (6) Add an amount equal to any deduction allowed under Section
545	545	27 172 of the Internal Revenue Code (concerning net operating
546	546	28 losses).
547	547	29 (7) Add or subtract the amount necessary to make the adjusted
548	548	30 gross income of any taxpayer that placed Section 179 property (as
549	549	31 defined in Section 179 of the Internal Revenue Code) in service
550	550	32 in the current taxable year or in an earlier taxable year a taxable
551	551	33 year beginning prior to January 1, 2023, equal to the amount
552	552	34 of adjusted gross income that would have been computed had an
553	553	35 election for federal income tax purposes not been made for the
554	554	36 year in which the property was placed in service to take
555	555	37 deductions under Section 179 of the Internal Revenue Code in a
556	556	38 total amount exceeding the sum of:
557	557	39 (A) twenty-five thousand dollars ($25,000) to the extent
558	558	40 deductions under Section 179 of the Internal Revenue Code
559	559	41 were not elected as provided in clause (B); and
560	560	42 (B) for taxable years beginning after December 31, 2017, the
561	561	2023 IN 313—LS 6306/DI 134 14
562	562	1 deductions elected under Section 179 of the Internal Revenue
563	563	2 Code on property acquired in an exchange if:
564	564	3 (i) the exchange would have been eligible for
565	565	4 nonrecognition of gain or loss under Section 1031 of the
566	566	5 Internal Revenue Code in effect on January 1, 2017;
567	567	6 (ii) the exchange is not eligible for nonrecognition of gain or
568	568	7 loss under Section 1031 of the Internal Revenue Code; and
569	569	8 (iii) the taxpayer made an election to take deductions under
570	570	9 Section 179 of the Internal Revenue Code with regard to the
571	571	10 acquired property in the year that the property was placed
572	572	11 into service.
573	573	12 The amount of deductions allowable for an item of property
574	574	13 under this clause may not exceed the amount of adjusted gross
575	575	14 income realized on the property that would have been deferred
576	576	15 under the Internal Revenue Code in effect on January 1, 2017.
577	577	16 (8) Subtract income that is:
578	578	17 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
579	579	18 derived from patents); and
580	580	19 (B) included in the insurance company's taxable income under
581	581	20 the Internal Revenue Code.
582	582	21 (9) Add an amount equal to any income not included in gross
583	583	22 income as a result of the deferral of income arising from business
584	584	23 indebtedness discharged in connection with the reacquisition after
585	585	24 December 31, 2008, and before January 1, 2011, of an applicable
586	586	25 debt instrument, as provided in Section 108(i) of the Internal
587	587	26 Revenue Code. Subtract from the adjusted gross income of any
588	588	27 taxpayer that added an amount to adjusted gross income in a
589	589	28 previous year the amount necessary to offset the amount included
590	590	29 in federal gross income as a result of the deferral of income
591	591	30 arising from business indebtedness discharged in connection with
592	592	31 the reacquisition after December 31, 2008, and before January 1,
593	593	32 2011, of an applicable debt instrument, as provided in Section
594	594	33 108(i) of the Internal Revenue Code.
595	595	34 (10) Add an amount equal to any exempt insurance income under
596	596	35 Section 953(e) of the Internal Revenue Code that is active
597	597	36 financing income under Subpart F of Subtitle A, Chapter 1,
598	598	37 Subchapter N of the Internal Revenue Code.
599	599	38 (11) Add the amount excluded from federal gross income under
600	600	39 Section 103 of the Internal Revenue Code for interest received on
601	601	40 an obligation of a state other than Indiana, or a political
602	602	41 subdivision of such a state, that is acquired by the taxpayer after
603	603	42 December 31, 2011.
604	604	2023 IN 313—LS 6306/DI 134 15
605	605	1 (12) For taxable years beginning after December 25, 2016, add:
606	606	2 (A) an amount equal to the amount reported by the taxpayer on
607	607	3 IRC 965 Transition Tax Statement, line 1; or
608	608	4 (B) if the taxpayer deducted an amount under Section 965(c)
609	609	5 of the Internal Revenue Code in determining the taxpayer's
610	610	6 taxable income for purposes of the federal income tax, the
611	611	7 amount deducted under Section 965(c) of the Internal Revenue
612	612	8 Code.
613	613	9 (13) Add an amount equal to the deduction that was claimed by
614	614	10 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
615	615	11 Internal Revenue Code (attributable to global intangible
616	616	12 low-taxed income). The taxpayer shall separately specify the
617	617	13 amount of the reduction under Section 250(a)(1)(B)(i) of the
618	618	14 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
619	619	15 Internal Revenue Code.
620	620	16 (14) Subtract any interest expense paid or accrued in the current
621	621	17 taxable year but not deducted as a result of the limitation imposed
622	622	18 under Section 163(j)(1) of the Internal Revenue Code. Add any
623	623	19 interest expense paid or accrued in a previous taxable year but
624	624	20 allowed as a deduction under Section 163 of the Internal Revenue
625	625	21 Code in the current taxable year. For purposes of this subdivision,
626	626	22 an interest expense is considered paid or accrued only in the first
627	627	23 taxable year the deduction would have been allowable under
628	628	24 Section 163 of the Internal Revenue Code if the limitation under
629	629	25 Section 163(j)(1) of the Internal Revenue Code did not exist.
630	630	26 (15) Subtract the amount that would have been excluded from
631	631	27 gross income but for the enactment of Section 118(b)(2) of the
632	632	28 Internal Revenue Code for taxable years ending after December
633	633	29 22, 2017.
634	634	30 (16) Add an amount equal to the remainder of:
635	635	31 (A) the amount allowable as a deduction under Section 274(n)
636	636	32 of the Internal Revenue Code; minus
637	637	33 (B) the amount otherwise allowable as a deduction under
638	638	34 Section 274(n) of the Internal Revenue Code, if Section
639	639	35 274(n)(2)(D) of the Internal Revenue Code was not in effect
640	640	36 for amounts paid or incurred after December 31, 2020.
641	641	37 (17) For taxable years ending after March 12, 2020, subtract an
642	642	38 amount equal to the deduction disallowed pursuant to:
643	643	39 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
644	644	40 as modified by Sections 206 and 207 of the Taxpayer Certainty
645	645	41 and Disaster Relief Tax Act (Division EE of Public Law
646	646	42 116-260); and
647	647	2023 IN 313—LS 6306/DI 134 16
648	648	1 (B) Section 3134(e) of the Internal Revenue Code.
649	649	2 (18) For taxable years beginning after December 31, 2022,
650	650	3 subtract an amount equal to the deduction disallowed under
651	651	4 Section 280C(h) of the Internal Revenue Code.
652	652	5 (19) Add or subtract any other amounts the taxpayer is:
653	653	6 (A) required to add or subtract; or
654	654	7 (B) entitled to deduct;
655	655	8 under IC 6-3-2.
656	656	9 (e) In the case of insurance companies subject to tax under Section
657	657	10 831 of the Internal Revenue Code and organized under Indiana law, the
658	658	11 same as "taxable income" (as defined in Section 832 of the Internal
659	659	12 Revenue Code), adjusted as follows:
660	660	13 (1) Subtract income that is exempt from taxation under this article
661	661	14 by the Constitution and statutes of the United States.
662	662	15 (2) Add an amount equal to any deduction allowed or allowable
663	663	16 under Section 170 of the Internal Revenue Code (concerning
664	664	17 charitable contributions).
665	665	18 (3) Add an amount equal to a deduction allowed or allowable
666	666	19 under Section 805 or Section 832(c) of the Internal Revenue Code
667	667	20 for taxes based on or measured by income and levied at the state
668	668	21 level by any state.
669	669	22 (4) Subtract an amount equal to the amount included in the
670	670	23 company's taxable income under Section 78 of the Internal
671	671	24 Revenue Code (concerning foreign tax credits).
672	672	25 (5) Add or subtract the amount necessary to make the adjusted
673	673	26 gross income of any taxpayer that owns property for which bonus
674	674	27 depreciation was allowed in the current taxable year or in an
675	675	28 earlier taxable year equal to the amount of adjusted gross income
676	676	29 that would have been computed had an election not been made
677	677	30 under Section 168(k) of the Internal Revenue Code to apply bonus
678	678	31 depreciation to the property in the year that it was placed in
679	679	32 service.
680	680	33 (6) Add an amount equal to any deduction allowed under Section
681	681	34 172 of the Internal Revenue Code (concerning net operating
682	682	35 losses).
683	683	36 (7) Add or subtract the amount necessary to make the adjusted
684	684	37 gross income of any taxpayer that placed Section 179 property (as
685	685	38 defined in Section 179 of the Internal Revenue Code) in service
686	686	39 in the current taxable year or in an earlier taxable year a taxable
687	687	40 year beginning prior to January 1, 2023, equal to the amount
688	688	41 of adjusted gross income that would have been computed had an
689	689	42 election for federal income tax purposes not been made for the
690	690	2023 IN 313—LS 6306/DI 134 17
691	691	1 year in which the property was placed in service to take
692	692	2 deductions under Section 179 of the Internal Revenue Code in a
693	693	3 total amount exceeding the sum of:
694	694	4 (A) twenty-five thousand dollars ($25,000) to the extent
695	695	5 deductions under Section 179 of the Internal Revenue Code
696	696	6 were not elected as provided in clause (B); and
697	697	7 (B) for taxable years beginning after December 31, 2017, the
698	698	8 deductions elected under Section 179 of the Internal Revenue
699	699	9 Code on property acquired in an exchange if:
700	700	10 (i) the exchange would have been eligible for
701	701	11 nonrecognition of gain or loss under Section 1031 of the
702	702	12 Internal Revenue Code in effect on January 1, 2017;
703	703	13 (ii) the exchange is not eligible for nonrecognition of gain or
704	704	14 loss under Section 1031 of the Internal Revenue Code; and
705	705	15 (iii) the taxpayer made an election to take deductions under
706	706	16 Section 179 of the Internal Revenue Code with regard to the
707	707	17 acquired property in the year that the property was placed
708	708	18 into service.
709	709	19 The amount of deductions allowable for an item of property
710	710	20 under this clause may not exceed the amount of adjusted gross
711	711	21 income realized on the property that would have been deferred
712	712	22 under the Internal Revenue Code in effect on January 1, 2017.
713	713	23 (8) Subtract income that is:
714	714	24 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
715	715	25 derived from patents); and
716	716	26 (B) included in the insurance company's taxable income under
717	717	27 the Internal Revenue Code.
718	718	28 (9) Add an amount equal to any income not included in gross
719	719	29 income as a result of the deferral of income arising from business
720	720	30 indebtedness discharged in connection with the reacquisition after
721	721	31 December 31, 2008, and before January 1, 2011, of an applicable
722	722	32 debt instrument, as provided in Section 108(i) of the Internal
723	723	33 Revenue Code. Subtract from the adjusted gross income of any
724	724	34 taxpayer that added an amount to adjusted gross income in a
725	725	35 previous year the amount necessary to offset the amount included
726	726	36 in federal gross income as a result of the deferral of income
727	727	37 arising from business indebtedness discharged in connection with
728	728	38 the reacquisition after December 31, 2008, and before January 1,
729	729	39 2011, of an applicable debt instrument, as provided in Section
730	730	40 108(i) of the Internal Revenue Code.
731	731	41 (10) Add an amount equal to any exempt insurance income under
732	732	42 Section 953(e) of the Internal Revenue Code that is active
733	733	2023 IN 313—LS 6306/DI 134 18
734	734	1 financing income under Subpart F of Subtitle A, Chapter 1,
735	735	2 Subchapter N of the Internal Revenue Code.
736	736	3 (11) Add the amount excluded from federal gross income under
737	737	4 Section 103 of the Internal Revenue Code for interest received on
738	738	5 an obligation of a state other than Indiana, or a political
739	739	6 subdivision of such a state, that is acquired by the taxpayer after
740	740	7 December 31, 2011.
741	741	8 (12) For taxable years beginning after December 25, 2016, add:
742	742	9 (A) an amount equal to the amount reported by the taxpayer on
743	743	10 IRC 965 Transition Tax Statement, line 1; or
744	744	11 (B) if the taxpayer deducted an amount under Section 965(c)
745	745	12 of the Internal Revenue Code in determining the taxpayer's
746	746	13 taxable income for purposes of the federal income tax, the
747	747	14 amount deducted under Section 965(c) of the Internal Revenue
748	748	15 Code.
749	749	16 (13) Add an amount equal to the deduction that was claimed by
750	750	17 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
751	751	18 Internal Revenue Code (attributable to global intangible
752	752	19 low-taxed income). The taxpayer shall separately specify the
753	753	20 amount of the reduction under Section 250(a)(1)(B)(i) of the
754	754	21 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
755	755	22 Internal Revenue Code.
756	756	23 (14) Subtract any interest expense paid or accrued in the current
757	757	24 taxable year but not deducted as a result of the limitation imposed
758	758	25 under Section 163(j)(1) of the Internal Revenue Code. Add any
759	759	26 interest expense paid or accrued in a previous taxable year but
760	760	27 allowed as a deduction under Section 163 of the Internal Revenue
761	761	28 Code in the current taxable year. For purposes of this subdivision,
762	762	29 an interest expense is considered paid or accrued only in the first
763	763	30 taxable year the deduction would have been allowable under
764	764	31 Section 163 of the Internal Revenue Code if the limitation under
765	765	32 Section 163(j)(1) of the Internal Revenue Code did not exist.
766	766	33 (15) Subtract the amount that would have been excluded from
767	767	34 gross income but for the enactment of Section 118(b)(2) of the
768	768	35 Internal Revenue Code for taxable years ending after December
769	769	36 22, 2017.
770	770	37 (16) Add an amount equal to the remainder of:
771	771	38 (A) the amount allowable as a deduction under Section 274(n)
772	772	39 of the Internal Revenue Code; minus
773	773	40 (B) the amount otherwise allowable as a deduction under
774	774	41 Section 274(n) of the Internal Revenue Code, if Section
775	775	42 274(n)(2)(D) of the Internal Revenue Code was not in effect
776	776	2023 IN 313—LS 6306/DI 134 19
777	777	1 for amounts paid or incurred after December 31, 2020.
778	778	2 (17) For taxable years ending after March 12, 2020, subtract an
779	779	3 amount equal to the deduction disallowed pursuant to:
780	780	4 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
781	781	5 as modified by Sections 206 and 207 of the Taxpayer Certainty
782	782	6 and Disaster Relief Tax Act (Division EE of Public Law
783	783	7 116-260); and
784	784	8 (B) Section 3134(e) of the Internal Revenue Code.
785	785	9 (18) For taxable years beginning after December 31, 2022,
786	786	10 subtract an amount equal to the deduction disallowed under
787	787	11 Section 280C(h) of the Internal Revenue Code.
788	788	12 (19) Add or subtract any other amounts the taxpayer is:
789	789	13 (A) required to add or subtract; or
790	790	14 (B) entitled to deduct;
791	791	15 under IC 6-3-2.
792	792	16 (f) In the case of trusts and estates, "taxable income" (as defined for
793	793	17 trusts and estates in Section 641(b) of the Internal Revenue Code)
794	794	18 adjusted as follows:
795	795	19 (1) Subtract income that is exempt from taxation under this article
796	796	20 by the Constitution and statutes of the United States.
797	797	21 (2) Subtract an amount equal to the amount of a September 11
798	798	22 terrorist attack settlement payment included in the federal
799	799	23 adjusted gross income of the estate of a victim of the September
800	800	24 11 terrorist attack or a trust to the extent the trust benefits a victim
801	801	25 of the September 11 terrorist attack.
802	802	26 (3) Add or subtract the amount necessary to make the adjusted
803	803	27 gross income of any taxpayer that owns property for which bonus
804	804	28 depreciation was allowed in the current taxable year or in an
805	805	29 earlier taxable year equal to the amount of adjusted gross income
806	806	30 that would have been computed had an election not been made
807	807	31 under Section 168(k) of the Internal Revenue Code to apply bonus
808	808	32 depreciation to the property in the year that it was placed in
809	809	33 service.
810	810	34 (4) Add an amount equal to any deduction allowed under Section
811	811	35 172 of the Internal Revenue Code (concerning net operating
812	812	36 losses).
813	813	37 (5) Add or subtract the amount necessary to make the adjusted
814	814	38 gross income of any taxpayer that placed Section 179 property (as
815	815	39 defined in Section 179 of the Internal Revenue Code) in service
816	816	40 in the current taxable year or in an earlier taxable year a taxable
817	817	41 year beginning prior to January 1, 2023, equal to the amount
818	818	42 of adjusted gross income that would have been computed had an
819	819	2023 IN 313—LS 6306/DI 134 20
820	820	1 election for federal income tax purposes not been made for the
821	821	2 year in which the property was placed in service to take
822	822	3 deductions under Section 179 of the Internal Revenue Code in a
823	823	4 total amount exceeding the sum of:
824	824	5 (A) twenty-five thousand dollars ($25,000) to the extent
825	825	6 deductions under Section 179 of the Internal Revenue Code
826	826	7 were not elected as provided in clause (B); and
827	827	8 (B) for taxable years beginning after December 31, 2017, the
828	828	9 deductions elected under Section 179 of the Internal Revenue
829	829	10 Code on property acquired in an exchange if:
830	830	11 (i) the exchange would have been eligible for
831	831	12 nonrecognition of gain or loss under Section 1031 of the
832	832	13 Internal Revenue Code in effect on January 1, 2017;
833	833	14 (ii) the exchange is not eligible for nonrecognition of gain or
834	834	15 loss under Section 1031 of the Internal Revenue Code; and
835	835	16 (iii) the taxpayer made an election to take deductions under
836	836	17 Section 179 of the Internal Revenue Code with regard to the
837	837	18 acquired property in the year that the property was placed
838	838	19 into service.
839	839	20 The amount of deductions allowable for an item of property
840	840	21 under this clause may not exceed the amount of adjusted gross
841	841	22 income realized on the property that would have been deferred
842	842	23 under the Internal Revenue Code in effect on January 1, 2017.
843	843	24 (6) Subtract income that is:
844	844	25 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
845	845	26 derived from patents); and
846	846	27 (B) included in the taxpayer's taxable income under the
847	847	28 Internal Revenue Code.
848	848	29 (7) Add an amount equal to any income not included in gross
849	849	30 income as a result of the deferral of income arising from business
850	850	31 indebtedness discharged in connection with the reacquisition after
851	851	32 December 31, 2008, and before January 1, 2011, of an applicable
852	852	33 debt instrument, as provided in Section 108(i) of the Internal
853	853	34 Revenue Code. Subtract from the adjusted gross income of any
854	854	35 taxpayer that added an amount to adjusted gross income in a
855	855	36 previous year the amount necessary to offset the amount included
856	856	37 in federal gross income as a result of the deferral of income
857	857	38 arising from business indebtedness discharged in connection with
858	858	39 the reacquisition after December 31, 2008, and before January 1,
859	859	40 2011, of an applicable debt instrument, as provided in Section
860	860	41 108(i) of the Internal Revenue Code.
861	861	42 (8) Add the amount excluded from federal gross income under
862	862	2023 IN 313—LS 6306/DI 134 21
863	863	1 Section 103 of the Internal Revenue Code for interest received on
864	864	2 an obligation of a state other than Indiana, or a political
865	865	3 subdivision of such a state, that is acquired by the taxpayer after
866	866	4 December 31, 2011.
867	867	5 (9) For taxable years beginning after December 25, 2016, add an
868	868	6 amount equal to:
869	869	7 (A) the amount reported by the taxpayer on IRC 965
870	870	8 Transition Tax Statement, line 1;
871	871	9 (B) if the taxpayer deducted an amount under Section 965(c)
872	872	10 of the Internal Revenue Code in determining the taxpayer's
873	873	11 taxable income for purposes of the federal income tax, the
874	874	12 amount deducted under Section 965(c) of the Internal Revenue
875	875	13 Code; and
876	876	14 (C) with regard to any amounts of income under Section 965
877	877	15 of the Internal Revenue Code distributed by the taxpayer, the
878	878	16 deduction under Section 965(c) of the Internal Revenue Code
879	879	17 attributable to such distributed amounts and not reported to the
880	880	18 beneficiary.
881	881	19 For purposes of this article, the amount required to be added back
882	882	20 under clause (B) is not considered to be distributed or
883	883	21 distributable to a beneficiary of the estate or trust for purposes of
884	884	22 Sections 651 and 661 of the Internal Revenue Code.
885	885	23 (10) Subtract any interest expense paid or accrued in the current
886	886	24 taxable year but not deducted as a result of the limitation imposed
887	887	25 under Section 163(j)(1) of the Internal Revenue Code. Add any
888	888	26 interest expense paid or accrued in a previous taxable year but
889	889	27 allowed as a deduction under Section 163 of the Internal Revenue
890	890	28 Code in the current taxable year. For purposes of this subdivision,
891	891	29 an interest expense is considered paid or accrued only in the first
892	892	30 taxable year the deduction would have been allowable under
893	893	31 Section 163 of the Internal Revenue Code if the limitation under
894	894	32 Section 163(j)(1) of the Internal Revenue Code did not exist.
895	895	33 (11) Add an amount equal to the deduction for qualified business
896	896	34 income that was claimed by the taxpayer for the taxable year
897	897	35 under Section 199A of the Internal Revenue Code.
898	898	36 (12) Subtract the amount that would have been excluded from
899	899	37 gross income but for the enactment of Section 118(b)(2) of the
900	900	38 Internal Revenue Code for taxable years ending after December
901	901	39 22, 2017.
902	902	40 (13) Add an amount equal to the remainder of:
903	903	41 (A) the amount allowable as a deduction under Section 274(n)
904	904	42 of the Internal Revenue Code; minus
905	905	2023 IN 313—LS 6306/DI 134 22
906	906	1 (B) the amount otherwise allowable as a deduction under
907	907	2 Section 274(n) of the Internal Revenue Code, if Section
908	908	3 274(n)(2)(D) of the Internal Revenue Code was not in effect
909	909	4 for amounts paid or incurred after December 31, 2020.
910	910	5 (14) For taxable years beginning after December 31, 2017, and
911	911	6 before January 1, 2021, add an amount equal to the excess
912	912	7 business loss of the taxpayer as defined in Section 461(l)(3) of the
913	913	8 Internal Revenue Code. In addition:
914	914	9 (A) If a taxpayer has an excess business loss under this
915	915	10 subdivision and also has modifications under subdivisions (3)
916	916	11 and (5) for property placed in service during the taxable year,
917	917	12 the taxpayer shall treat a portion of the taxable year
918	918	13 modifications for that property as occurring in the taxable year
919	919	14 the property is placed in service and a portion of the
920	920	15 modifications as occurring in the immediately following
921	921	16 taxable year.
922	922	17 (B) The portion of the modifications under subdivisions (3)
923	923	18 and (5) for property placed in service during the taxable year
924	924	19 treated as occurring in the taxable year in which the property
925	925	20 is placed in service equals:
926	926	21 (i) the modification for the property otherwise determined
927	927	22 under this section; minus
928	928	23 (ii) the excess business loss disallowed under this
929	929	24 subdivision;
930	930	25 but not less than zero (0).
931	931	26 (C) The portion of the modifications under subdivisions (3)
932	932	27 and (5) for property placed in service during the taxable year
933	933	28 treated as occurring in the taxable year immediately following
934	934	29 the taxable year in which the property is placed in service
935	935	30 equals the modification for the property otherwise determined
936	936	31 under this section minus the amount in clause (B).
937	937	32 (D) Any reallocation of modifications between taxable years
938	938	33 under clauses (B) and (C) shall be first allocated to the
939	939	34 modification under subdivision (3), then to the modification
940	940	35 under subdivision (5).
941	941	36 (15) For taxable years ending after March 12, 2020, subtract an
942	942	37 amount equal to the deduction disallowed pursuant to:
943	943	38 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
944	944	39 as modified by Sections 206 and 207 of the Taxpayer Certainty
945	945	40 and Disaster Relief Tax Act (Division EE of Public Law
946	946	41 116-260); and
947	947	42 (B) Section 3134(e) of the Internal Revenue Code.
948	948	2023 IN 313—LS 6306/DI 134 23
949	949	1 (16) For taxable years beginning after December 31, 2022,
950	950	2 subtract an amount equal to the deduction disallowed under
951	951	3 Section 280C(h) of the Internal Revenue Code.
952	952	4 (17) Add or subtract any other amounts the taxpayer is:
953	953	5 (A) required to add or subtract; or
954	954	6 (B) entitled to deduct;
955	955	7 under IC 6-3-2.
956	956	8 (g) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(17) may not
957	957	9 be construed to require an add back or allow a deduction or exemption
958	958	10 more than once for a particular add back, deduction, or exemption.
959	959	11 (h) For taxable years beginning after December 25, 2016, if:
960	960	12 (1) a taxpayer is a shareholder, either directly or indirectly, in a
961	961	13 corporation that is an E&P deficit foreign corporation as defined
962	962	14 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
963	963	15 earnings and profit deficit, or a portion of the earnings and profit
964	964	16 deficit, of the E&P deficit foreign corporation is permitted to
965	965	17 reduce the federal adjusted gross income or federal taxable
966	966	18 income of the taxpayer, the deficit, or the portion of the deficit,
967	967	19 shall also reduce the amount taxable under this section to the
968	968	20 extent permitted under the Internal Revenue Code, however, in no
969	969	21 case shall this permit a reduction in the amount taxable under
970	970	22 Section 965 of the Internal Revenue Code for purposes of this
971	971	23 section to be less than zero (0); and
972	972	24 (2) the Internal Revenue Service issues guidance that such an
973	973	25 income or deduction is not reported directly on a federal tax
974	974	26 return or is to be reported in a manner different than specified in
975	975	27 this section, this section shall be construed as if federal adjusted
976	976	28 gross income or federal taxable income included the income or
977	977	29 deduction.
978	978	30 (i) If a partner is required to include an item of income, a deduction,
979	979	31 or another tax attribute in the partner's adjusted gross income tax return
980	980	32 pursuant to IC 6-3-4.5, such item shall be considered to be includible
981	981	33 in the partner's federal adjusted gross income or federal taxable
982	982	34 income, regardless of whether such item is actually required to be
983	983	35 reported by the partner for federal income tax purposes. For purposes
984	984	36 of this subsection:
985	985	37 (1) items for which a valid election is made under IC 6-3-4.5-6,
986	986	38 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
987	987	39 in the partner's adjusted gross income or taxable income; and
988	988	40 (2) items for which the partnership did not make an election under
989	989	41 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
990	990	42 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
991	991	2023 IN 313—LS 6306/DI 134 24
992	992	1 shall be included in the partner's adjusted gross income or taxable
993	993	2 income.
994	994	3 SECTION 2. IC 6-5.5-1-2, AS AMENDED BY P.L.137-2022,
995	995	4 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
996	996	5 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2. (a) Except as provided
997	997	6 in subsections (b) through (d), "adjusted gross income" means taxable
998	998	7 income as defined in Section 63 of the Internal Revenue Code, adjusted
999	999	8 as follows:
1000	1000	9 (1) Add the following amounts:
1001	1001	10 (A) An amount equal to a deduction allowed or allowable
1002	1002	11 under Section 166, Section 585, or Section 593 of the Internal
1003	1003	12 Revenue Code.
1004	1004	13 (B) An amount equal to a deduction allowed or allowable
1005	1005	14 under Section 170 of the Internal Revenue Code.
1006	1006	15 (C) An amount equal to a deduction or deductions allowed or
1007	1007	16 allowable under Section 63 of the Internal Revenue Code for
1008	1008	17 taxes based on or measured by income and levied at the state
1009	1009	18 level by a state of the United States or levied at the local level
1010	1010	19 by any subdivision of a state of the United States.
1011	1011	20 (D) The amount of interest excluded under Section 103 of the
1012	1012	21 Internal Revenue Code or under any other federal law, minus
1013	1013	22 the associated expenses disallowed in the computation of
1014	1014	23 taxable income under Section 265 of the Internal Revenue
1015	1015	24 Code.
1016	1016	25 (E) An amount equal to the deduction allowed under Section
1017	1017	26 172 or 1212 of the Internal Revenue Code for net operating
1018	1018	27 losses or net capital losses.
1019	1019	28 (F) For a taxpayer that is not a large bank (as defined in
1020	1020	29 Section 585(c)(2) of the Internal Revenue Code), an amount
1021	1021	30 equal to the recovery of a debt, or part of a debt, that becomes
1022	1022	31 worthless to the extent a deduction was allowed from gross
1023	1023	32 income in a prior taxable year under Section 166(a) of the
1024	1024	33 Internal Revenue Code.
1025	1025	34 (G) Add the amount necessary to make the adjusted gross
1026	1026	35 income of any taxpayer that owns property for which bonus
1027	1027	36 depreciation was allowed in the current taxable year or in an
1028	1028	37 earlier taxable year equal to the amount of adjusted gross
1029	1029	38 income that would have been computed had an election not
1030	1030	39 been made under Section 168(k) of the Internal Revenue Code
1031	1031	40 to apply bonus depreciation to the property in the year that it
1032	1032	41 was placed in service.
1033	1033	42 (H) Add the amount necessary to make the adjusted gross
1034	1034	2023 IN 313—LS 6306/DI 134 25
1035	1035	1 income of any taxpayer that placed Section 179 property (as
1036	1036	2 defined in Section 179 of the Internal Revenue Code) in
1037	1037	3 service in the current taxable year or in an earlier taxable year
1038	1038	4 a taxable year beginning prior to January 1, 2023, equal to
1039	1039	5 the amount of adjusted gross income that would have been
1040	1040	6 computed had an election for federal income tax purposes not
1041	1041	7 been made for the year in which the property was placed in
1042	1042	8 service to take deductions under Section 179 of the Internal
1043	1043	9 Revenue Code in a total amount exceeding the sum of:
1044	1044	10 (i) twenty-five thousand dollars ($25,000) to the extent
1045	1045	11 deductions under Section 179 of the Internal Revenue Code
1046	1046	12 were not elected as provided in item (ii); and
1047	1047	13 (ii) for taxable years beginning after December 31, 2017, the
1048	1048	14 deductions elected under Section 179 of the Internal
1049	1049	15 Revenue Code on property acquired in an exchange if the
1050	1050	16 exchange would have been eligible for nonrecognition of
1051	1051	17 gain or loss under Section 1031 of the Internal Revenue
1052	1052	18 Code in effect on January 1, 2017, the exchange is not
1053	1053	19 eligible for nonrecognition of gain or loss under Section
1054	1054	20 1031 of the Internal Revenue Code, and the taxpayer made
1055	1055	21 an election to take deductions under Section 179 of the
1056	1056	22 Internal Revenue Code with regard to the acquired property
1057	1057	23 in the year that the property was placed into service. The
1058	1058	24 amount of deductions allowable for an item of property
1059	1059	25 under this item may not exceed the amount of adjusted gross
1060	1060	26 income realized on the property that would have been
1061	1061	27 deferred under the Internal Revenue Code in effect on
1062	1062	28 January 1, 2017.
1063	1063	29 (I) Add an amount equal to any income not included in gross
1064	1064	30 income as a result of the deferral of income arising from
1065	1065	31 business indebtedness discharged in connection with the
1066	1066	32 reacquisition after December 31, 2008, and before January 1,
1067	1067	33 2011, of an applicable debt instrument, as provided in Section
1068	1068	34 108(i) of the Internal Revenue Code. Subtract from the
1069	1069	35 adjusted gross income of any taxpayer that added an amount
1070	1070	36 to adjusted gross income in a previous year the amount
1071	1071	37 necessary to offset the amount included in federal gross
1072	1072	38 income as a result of the deferral of income arising from
1073	1073	39 business indebtedness discharged in connection with the
1074	1074	40 reacquisition after December 31, 2008, and before January 1,
1075	1075	41 2011, of an applicable debt instrument, as provided in Section
1076	1076	42 108(i) of the Internal Revenue Code.
1077	1077	2023 IN 313—LS 6306/DI 134 26
1078	1078	1 (J) Add an amount equal to any exempt insurance income
1079	1079	2 under Section 953(e) of the Internal Revenue Code for active
1080	1080	3 financing income under Subpart F, Subtitle A, Chapter 1,
1081	1081	4 Subchapter N of the Internal Revenue Code.
1082	1082	5 (K) Add an amount equal to the remainder of:
1083	1083	6 (i) the amount allowable as a deduction under Section
1084	1084	7 274(n) of the Internal Revenue Code; minus
1085	1085	8 (ii) the amount otherwise allowable as a deduction under
1086	1086	9 Section 274(n) of the Internal Revenue Code, if Section
1087	1087	10 274(n)(2)(D) of the Internal Revenue Code was not in effect
1088	1088	11 for amounts paid or incurred after December 31, 2020.
1089	1089	12 (2) Subtract the following amounts:
1090	1090	13 (A) Income that the United States Constitution or any statute
1091	1091	14 of the United States prohibits from being used to measure the
1092	1092	15 tax imposed by this chapter.
1093	1093	16 (B) Income that is derived from sources outside the United
1094	1094	17 States, as defined by the Internal Revenue Code.
1095	1095	18 (C) An amount equal to a debt or part of a debt that becomes
1096	1096	19 worthless, as permitted under Section 166(a) of the Internal
1097	1097	20 Revenue Code.
1098	1098	21 (D) An amount equal to any bad debt reserves that are
1099	1099	22 included in federal income because of accounting method
1100	1100	23 changes required by Section 585(c)(3)(A) or Section 593 of
1101	1101	24 the Internal Revenue Code.
1102	1102	25 (E) The amount necessary to make the adjusted gross income
1103	1103	26 of any taxpayer that owns property for which bonus
1104	1104	27 depreciation was allowed in the current taxable year or in an
1105	1105	28 earlier taxable year equal to the amount of adjusted gross
1106	1106	29 income that would have been computed had an election not
1107	1107	30 been made under Section 168(k) of the Internal Revenue Code
1108	1108	31 to apply bonus depreciation.
1109	1109	32 (F) The amount necessary to make the adjusted gross income
1110	1110	33 of any taxpayer that placed Section 179 property (as defined
1111	1111	34 in Section 179 of the Internal Revenue Code) in service in the
1112	1112	35 current taxable year or in an earlier taxable year a taxable
1113	1113	36 year beginning prior to January 1, 2023, equal to the
1114	1114	37 amount of adjusted gross income that would have been
1115	1115	38 computed had an election for federal income tax purposes not
1116	1116	39 been made for the year in which the property was placed in
1117	1117	40 service to take deductions under Section 179 of the Internal
1118	1118	41 Revenue Code in a total amount exceeding the sum of:
1119	1119	42 (i) twenty-five thousand dollars ($25,000) to the extent
1120	1120	2023 IN 313—LS 6306/DI 134 27
1121	1121	1 deductions under Section 179 of the Internal Revenue Code
1122	1122	2 were not elected as provided in item (ii); and
1123	1123	3 (ii) for taxable years beginning after December 31, 2017, the
1124	1124	4 deductions elected under Section 179 of the Internal
1125	1125	5 Revenue Code on property acquired in an exchange if the
1126	1126	6 exchange would have been eligible for nonrecognition of
1127	1127	7 gain or loss under Section 1031 of the Internal Revenue
1128	1128	8 Code in effect on January 1, 2017, the exchange is not
1129	1129	9 eligible for nonrecognition of gain or loss under Section
1130	1130	10 1031 of the Internal Revenue Code, and the taxpayer made
1131	1131	11 an election to take deductions under Section 179 of the
1132	1132	12 Internal Revenue Code with regard to the acquired property
1133	1133	13 in the year that the property was placed into service. The
1134	1134	14 amount of deductions allowable for an item of property
1135	1135	15 under this item may not exceed the amount of adjusted gross
1136	1136	16 income realized on the property that would have been
1137	1137	17 deferred under the Internal Revenue Code in effect on
1138	1138	18 January 1, 2017.
1139	1139	19 (G) Income that is:
1140	1140	20 (i) exempt from taxation under IC 6-3-2-21.7; and
1141	1141	21 (ii) included in the taxpayer's taxable income under the
1142	1142	22 Internal Revenue Code.
1143	1143	23 (H) The amount that would have been excluded from gross
1144	1144	24 income but for the enactment of Section 118(b)(2) of the
1145	1145	25 Internal Revenue Code for taxable years ending after
1146	1146	26 December 22, 2017.
1147	1147	27 (I) For taxable years ending after March 12, 2020, an amount
1148	1148	28 equal to the deduction disallowed pursuant to:
1149	1149	29 (i) Section 2301(e) of the CARES Act (Public Law
1150	1150	30 116-136), as modified by Sections 206 and 207 of the
1151	1151	31 Taxpayer Certainty and Disaster Relief Tax Act (Division
1152	1152	32 EE of Public Law 116-260); and
1153	1153	33 (ii) Section 3134(e) of the Internal Revenue Code.
1154	1154	34 (J) Subtract an amount equal to the deduction disallowed
1155	1155	35 under Section 280C(h) of the Internal Revenue Code.
1156	1156	36 (3) Make the following adjustments:
1157	1157	37 (A) Subtract the amount of any interest expense paid or
1158	1158	38 accrued in the current taxable year but not deducted as a result
1159	1159	39 of the limitation imposed under Section 163(j)(1) of the
1160	1160	40 Internal Revenue Code.
1161	1161	41 (B) Add any interest expense paid or accrued in a previous
1162	1162	42 taxable year but allowed as a deduction under Section 163 of
1163	1163	2023 IN 313—LS 6306/DI 134 28
1164	1164	1 the Internal Revenue Code in the current taxable year.
1165	1165	2 For purposes of this subdivision, an interest expense is considered
1166	1166	3 paid or accrued only in the first taxable year the deduction would
1167	1167	4 have been allowable under Section 163 of the Internal Revenue
1168	1168	5 Code if the limitation under Section 163(j)(1) of the Internal
1169	1169	6 Revenue Code did not exist.
1170	1170	7 (b) In the case of a credit union, "adjusted gross income" for a
1171	1171	8 taxable year means the total transfers to undivided earnings minus
1172	1172	9 dividends for that taxable year after statutory reserves are set aside
1173	1173	10 under IC 28-7-1-24.
1174	1174	11 (c) In the case of an investment company, "adjusted gross income"
1175	1175	12 means the company's federal taxable income adjusted as follows:
1176	1176	13 (1) Add the amount excluded from federal gross income under
1177	1177	14 Section 103 of the Internal Revenue Code for interest received on
1178	1178	15 an obligation of a state other than Indiana, or a political
1179	1179	16 subdivision of such a state, that is acquired by the taxpayer after
1180	1180	17 December 31, 2011.
1181	1181	18 (2) Make the following adjustments:
1182	1182	19 (A) Subtract the amount of any interest expense paid or
1183	1183	20 accrued in the current taxable year but not deducted as a result
1184	1184	21 of the limitation imposed under Section 163(j)(1) of the
1185	1185	22 Internal Revenue Code.
1186	1186	23 (B) Add any interest expense paid or accrued in a previous
1187	1187	24 taxable year but allowed as a deduction under Section 163 of
1188	1188	25 the Internal Revenue Code in the current taxable year.
1189	1189	26 For purposes of this subdivision, an interest expense is considered
1190	1190	27 paid or accrued only in the first taxable year the deduction would
1191	1191	28 have been allowable under Section 163 of the Internal Revenue
1192	1192	29 Code if the limitation under Section 163(j)(1) of the Internal
1193	1193	30 Revenue Code did not exist.
1194	1194	31 (3) Multiply the amount determined after the adjustments in
1195	1195	32 subdivisions (1) and (2) by the quotient of:
1196	1196	33 (A) the aggregate of the gross payments collected by the
1197	1197	34 company during the taxable year from old and new business
1198	1198	35 upon investment contracts issued by the company and held by
1199	1199	36 residents of Indiana; divided by
1200	1200	37 (B) the total amount of gross payments collected during the
1201	1201	38 taxable year by the company from the business upon
1202	1202	39 investment contracts issued by the company and held by
1203	1203	40 persons residing within Indiana and elsewhere.
1204	1204	41 (d) As used in subsection (c), "investment company" means a
1205	1205	42 person, copartnership, association, limited liability company, or
1206	1206	2023 IN 313—LS 6306/DI 134 29
1207	1207	1 corporation, whether domestic or foreign, that:
1208	1208	2 (1) is registered under the Investment Company Act of 1940 (15
1209	1209	3 U.S.C. 80a-1 et seq.); and
1210	1210	4 (2) solicits or receives a payment to be made to itself and issues
1211	1211	5 in exchange for the payment:
1212	1212	6 (A) a so-called bond;
1213	1213	7 (B) a share;
1214	1214	8 (C) a coupon;
1215	1215	9 (D) a certificate of membership;
1216	1216	10 (E) an agreement;
1217	1217	11 (F) a pretended agreement; or
1218	1218	12 (G) other evidences of obligation;
1219	1219	13 entitling the holder to anything of value at some future date, if the
1220	1220	14 gross payments received by the company during the taxable year
1221	1221	15 on outstanding investment contracts, plus interest and dividends
1222	1222	16 earned on those contracts (by prorating the interest and dividends
1223	1223	17 earned on investment contracts by the same proportion that
1224	1224	18 certificate reserves (as defined by the Investment Company Act
1225	1225	19 of 1940) is to the company's total assets) is at least fifty percent
1226	1226	20 (50%) of the company's gross payments upon investment
1227	1227	21 contracts plus gross income from all other sources except
1228	1228	22 dividends from subsidiaries for the taxable year. The term
1229	1229	23 "investment contract" means an instrument listed in clauses (A)
1230	1230	24 through (G).
1231	1231	25 (e) If a partner is required to include an item of income, a deduction,
1232	1232	26 or another tax attribute in the partner's adjusted gross income tax return
1233	1233	27 pursuant to IC 6-3-4.5, such item shall be considered to be includible
1234	1234	28 in the partner's federal adjusted gross income or federal taxable
1235	1235	29 income, regardless of whether such item is actually required to be
1236	1236	30 reported by the partner for federal income tax purposes. For purposes
1237	1237	31 of this subsection:
1238	1238	32 (1) items for which a valid election is made under IC 6-3-4.5-6,
1239	1239	33 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
1240	1240	34 in the partner's adjusted gross income or taxable income; and
1241	1241	35 (2) items for which the partnership did not make an election under
1242	1242	36 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
1243	1243	37 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
1244	1244	38 shall be included in the partner's adjusted gross income or taxable
1245	1245	39 income.
1246	1246	40 SECTION 3. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
1247	1247	41 (a) IC 6-3-1-3.5 and IC 6-5.5-1-2, both as amended by this act,
1248	1248	42 apply to taxable years beginning after December 31, 2022.
1249	1249	2023 IN 313—LS 6306/DI 134 30
1250	1250	1 (b) This SECTION expires July 1, 2026.
1251	1251	2 SECTION 4. An emergency is declared for this act.
1252	1252	2023 IN 313—LS 6306/DI 134