IN
Indiana Senate Bill SB0419

Indiana 2023 Regular Session

Indiana Senate Bill SB0419 Compare Versions

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1+*ES0419.2*
2+Reprinted
3+April 12, 2023
4+ENGROSSED
5+SENATE BILL No. 419
6+_____
7+DIGEST OF SB 419 (Updated April 11, 2023 3:30 pm - DI 125)
8+Citations Affected: IC 4-10; IC 5-13; IC 6-1.1; IC 6-2.5; IC 6-3;
9+IC 6-3.1; IC 6-3.6; IC 6-5.5; IC 6-6; IC 6-7; IC 6-8; IC 6-8.1; IC 12-11;
10+IC 20-19; IC 20-40; IC 35-43; IC 36-7; IC 36-7.5; IC 36-8; noncode.
11+Synopsis: State tax matters. Makes certain changes regarding net
12+operating losses for purposes of determinating state adjusted gross
13+income. Provides that certain amounts for providing or expanding
14+access to broadband service in Indiana may be subtracted from a
15+taxpayer's state corporate adjusted gross income. Provides for successor
16+liability for certain unpaid taxes following a business asset sale.
17+Repeals an outdated provision requiring separate exemption certificates
18+for manufacturers and wholesalers. Makes a clarifying change to the
19+sales tax exemption that applies to power subsidiaries. Clarifies the
20+acquisition date for purposes of adding back interest from tax exempt
21+bonds issued by another state in determining Indiana adjusted gross
22+income. Amends provisions regarding the exemption for certain
23+income derived from patents. Provides that tax paid by an electing
24+(Continued next page)
25+Effective: Upon passage; July 1, 2021 (retroactive); January 1, 2022
26+(retroactive); January 1, 2023 (retroactive); July 1, 2023; January 1,
27+2024; January 1, 2026.
28+Holdman, Baldwin,
29+Randolph Lonnie M
30+(HOUSE SPONSORS — THOMPSON, CHERRY, PORTER, HAMILTON)
31+January 19, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
32+February 21, 2023, amended, reported favorably — Do Pass.
33+February 23, 2023, read second time, ordered engrossed. Engrossed.
34+February 27, 2023, read third time, passed. Yeas 49, nays 0.
35+HOUSE ACTION
36+March 6, 2023, read first time and referred to Committee on Ways and Means.
37+April 6, 2023, amended, reported — Do Pass.
38+April 11, 2023, read second time, amended, ordered engrossed.
39+ES 419—LS 6606/DI 120 Digest Continued
40+partnership is deposited in the state general fund. Makes clarifying
41+changes and technical corrections to the affordable and workforce
42+housing tax credit. Specifies the deposit and distribution of interest and
43+penalties associated with certain taxes. Authorizes the department of
44+state revenue to publish or disclose the status of a governmental or
45+nonprofit entity's sales tax exemption certificate. Provides that a person
46+who knowingly or intentionally sells, purchases, installs, transfers, or
47+possesses: (1) an automated sales suppression device or a zapper; or (2)
48+phantom-ware; commits a class A misdemeanor, and increases the
49+penalty if certain circumstances exist. Makes clarifying and technical
50+corrections to provisions under the electronic cigarette tax. Resolves
51+conflicts occurring between P.L.1-2023 and SB 419. Makes certain
52+changes and technical corrections to provisions contained in P.L.1-
53+2023. Provides that an individual who is an Indiana resident and a
54+member of a health care sharing ministry is entitled to an adjusted
55+gross income tax deduction. Provides that, beginning January 1, 2026,
56+an "eligible individual" for purposes of the achieving a better life
57+experience (ABLE) program means an individual who during a taxable
58+year: (1) is entitled to benefits based on blindness or disability under
59+Title II or Title XVI of the federal Social Security Act and the
60+blindness or disability occurred before the individual became 46 years
61+of age (rather than 26 years of age under current law); or (2) has a
62+disability certification that has been filed as set forth in Section 529A
63+of the Internal Revenue Code. Requires a taxpayer to: (1) deduct from
64+the taxpayer's adjusted gross income for a taxable year the amount of
65+specified research or experimental expenditures paid or incurred by the
66+taxpayer during the taxable year; and (2) add to the taxpayer's adjusted
67+gross income an amount equal to the deduction claimed under Section
68+174 of the Internal Revenue Code for the taxable year. Provides that
69+certain transactions involving a person's acquisition of agricultural
70+machinery, tools, or equipment are exempt from the application of the
71+state gross retail tax. Provides that if an organization provides nonprofit
72+agricultural organization insurance coverage, the organization is
73+subject to a nonprofit agricultural organization health coverage tax
74+unless the organization: (1) files a notice of election with the insurance
75+commissioner and the commissioner of the department of state revenue
76+on or before November 30 of a taxable year; and (2) states in the notice
77+of election that the organization elects to be subject to state income tax
78+for the taxable year. Provides that compensation received by an
79+individual who: (1) is not a resident of Indiana; and (2) receives
80+compensation for employment duties performed in Indiana for 30 days
81+or less during the calendar year; is exempt from the adjusted gross
82+income tax. Establishes a tax credit for an eligible taxpayer that
83+employs certain individuals with a disability. Reduces the fee, from
84+15% to 10%, that the department of state revenue may charge a debtor
85+for any debts collected as a collection fee for the department's services,
86+not including local collection assistance fees. Provides that, for 2023,
87+an ordinance or resolution to establish or expand a fire protection
88+territory is adopted after the legislative body holds at least three public
89+hearings to receive public comment on the proposed ordinance or
90+resolution in which: (1) at least one public hearing must be held at least
91+25 days before the legislative body votes on the adoption of the
92+ordinance or resolution; and (2) at least two additional public hearings
93+must be held not later than five days before the legislative body votes
94+on the adoption of the ordinance or resolution. Provides that the excess
95+of the proceeds of the property taxes attributable to an increase in the
96+property tax rate for a participating unit of a fire protection territory
97+that is established after the establishment of a tax increment financing
98+area located outside of Marion County shall be allocated to and
99+distributed in the form of an allocated property tax revenue pass back
100+to the participating unit of the fire protection territory and not to the
101+redevelopment district. Provides that the difference between the
102+(Continued next page)
103+ES 419—LS 6606/DI 120 Digest Continued
104+amount of special fuel purchased by a compressed natural gas product
105+fuel station and the amount of compressed natural gas product
106+produced and sold by the compressed natural gas product fuel station
107+is exempt from the special fuel tax. Provides a maximum tax rate that
108+a county fiscal body may impose for correctional facilities and
109+rehabilitation facilities. Provides a sales tax exemption for certain
110+components of a solar or wind energy system. Provides that the
111+distressed unit appeal board may employ staff (instead of an executive
112+director). Repeals the fiscal and qualitative indicators committee
113+(committee). Provides that part of the tax revenue that is allocated to
114+public safety may be distributed to certain township fire departments,
115+fire protection territories, or fire protection districts. Changes the
116+definition of "Internal Revenue Code" in the adjusted gross income tax
117+law to mean the Internal Revenue Code of 1986 as amended and in
118+effect on January 1, 2023. Requires a redevelopment commission to
119+provide an annual spending plan listing planned expenditures for the
120+next calendar year. Allows a redevelopment commission to expend
121+revenues from a tax increment financing district that are allocated for
122+police and fire services on both capital expenditures and operating
123+expenses. Provides a refundable tax credit for certain taxpayers based
124+on the 2021 determination of state reserves. Adds nonprofit building
125+corporations created by a municipal corporation to a provision
126+concerning the purchase of municipal securities by the treasurer of
127+state. Provides that the fiscal body of a county may adopt an ordinance
128+to establish a property tax amnesty program and require a waiver of
129+interest and penalties added before January 1, 2023, on delinquent
130+taxes and special assessments on real property in the county if certain
131+conditions are met. Exempts breastfeeding items from the state gross
132+retail tax. Provides that contributions to a 529 college savings account
133+or 529A ABLE account made after December 31, 2023, shall be
134+considered as having been made during the taxable year preceding the
135+contribution if certain conditions are met. Beginning in taxable year
136+2024, allows the Indiana economic development corporation to award
137+a qualified taxpayer a historic rehabilitation tax credit equal to 25% or
138+30% of the qualified expenditures incurred in the restoration and
139+preservation of a qualified historic structure, depending on the type of
140+historic structure. Requires notice if a county adopting body makes any
141+fiscal decision that has a financial impact to an underlying local taxing
142+unit or adopts an ordinance to reallocate revenue received from a local
143+income tax.
144+ES 419—LS 6606/DI 120 Reprinted
145+April 12, 2023
1146 First Regular Session of the 123rd General Assembly (2023)
2147 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3148 Constitution) is being amended, the text of the existing provision will appear in this style type,
4149 additions will appear in this style type, and deletions will appear in this style type.
5150 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6151 provision adopted), the text of the new provision will appear in this style type. Also, the
7152 word NEW will appear in that style type in the introductory clause of each SECTION that adds
8153 a new provision to the Indiana Code or the Indiana Constitution.
9154 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10155 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 419
12-AN ACT to amend the Indiana Code concerning taxation.
156+ENGROSSED
157+SENATE BILL No. 419
158+A BILL FOR AN ACT to amend the Indiana Code concerning
159+taxation.
13160 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 6-2.5-5-2, AS AMENDED BY P.L.239-2017,
161+1 SECTION 1. IC 4-10-22-4.6 IS ADDED TO THE INDIANA CODE
162+2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
163+3 1, 2023]: Sec. 4.6. (a) This section applies only to a taxpayer who:
164+4 (1) is required to file an Indiana resident individual adjusted
165+5 gross income tax return:
166+6 (A) for the 2020 taxable year under IC 6-3-4-1; or
167+7 (B) to claim the credit allowable under IC 6-3-3-9 for the
168+8 2020 taxable year;
169+9 (2) was not claimed as a dependent of any other taxpayer for
170+10 the 2020 taxable year;
171+11 (3) was not claimed as a dependent of any other taxpayer for
172+12 the 2023 taxable year;
173+13 (4) is not eligible for an automatic taxpayer refund under
174+14 section 4 of this chapter; and
175+15 (5) does not claim the additional taxpayer refund under
176+16 section 4.5 of this chapter.
177+17 (b) A taxpayer is eligible for a refundable tax credit in the
178+ES 419—LS 6606/DI 120 2
179+1 amount determined under section 4 of this chapter for the
180+2 determination made during calendar year 2021 if the taxpayer:
181+3 (1) files, not later than January 1, 2024, an Indiana resident
182+4 individual adjusted gross income tax return for the 2020
183+5 taxable year; and
184+6 (2) claims the credit on an Indiana adjusted gross income tax
185+7 return for the 2023 taxable year that is filed not later than
186+8 January 1, 2025.
187+9 (c) If an individual and the individual's spouse file a joint
188+10 Indiana resident individual adjusted gross income tax return for
189+11 the 2023 taxable year, and both the individual and the individual's
190+12 spouse are eligible for the credit under this section, the credit
191+13 under this section shall be provided to both the individual and the
192+14 individual's spouse.
193+15 (d) The department of state revenue may prescribe any tax
194+16 forms necessary for a taxpayer to claim a credit under this section.
195+17 SECTION 2. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
196+18 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
197+19 UPON PASSAGE]: Sec. 8. (a) During the annual meeting required by
198+20 section 6 of this chapter, the superintendent of a school corporation
199+21 shall submit a written report to the local board of finance for the school
200+22 corporation. The report must assess the financial condition of the
201+23 school corporation using the fiscal and qualitative indicators
202+24 determined under IC 20-19-7-4 by the fiscal and qualitative indicators
203+25 committee. distressed unit appeal board established by
204+26 IC 6-1.1-20.3-4.
205+27 (b) The local board of finance shall review the report made under
206+28 subsection (a).
207+29 (c) The superintendent of a school corporation may delegate the
208+30 duty to submit a report under subsection (a) to an employee or
209+31 representative of the school corporation.
210+32 SECTION 3. IC 5-13-9-2, AS AMENDED BY P.L.104-2022,
211+33 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
212+34 JULY 1, 2023]: Sec. 2. (a) Each officer designated in section 1 of this
213+35 chapter may invest or reinvest any funds that are held by the officer and
214+36 available for investment in any of the following:
215+37 (1) Securities backed by the full faith and credit of the United
216+38 States Treasury or fully guaranteed by the United States and
217+39 issued by any of the following:
218+40 (A) The United States Treasury.
219+41 (B) A federal agency.
220+42 (C) A federal instrumentality.
221+ES 419—LS 6606/DI 120 3
222+1 (D) A federal government sponsored enterprise.
223+2 (2) Securities fully guaranteed and issued by any of the following:
224+3 (A) A federal agency.
225+4 (B) A federal instrumentality.
226+5 (C) A federal government sponsored enterprise.
227+6 (3) Municipal securities issued by an Indiana local governmental
228+7 entity, a quasi-governmental entity related to the state, or a unit of
229+8 government, municipal corporation, or special taxing district in
230+9 Indiana, or a nonprofit building corporation created by a
231+10 municipal corporation, if the issuer has not defaulted on any of
232+11 the issuer's obligations within the twenty (20) years preceding the
233+12 date of the purchase. A security purchased by the treasurer of
234+13 state under this subdivision must have a stated final maturity of
235+14 not more than ten (10) years after the date of purchase. However,
236+15 a security purchased by the treasurer of state from the
237+16 Indiana bond bank under this subdivision must have a stated
238+17 final maturity of not more than twenty-five (25) years after
239+18 the date of purchase.
240+19 (b) If an investment under subsection (a) is made at a cost in excess
241+20 of the par value of the securities purchased, any premium paid for the
242+21 securities shall be deducted from the first interest received and returned
243+22 to the fund from which the investment was purchased, and only the net
244+23 amount is considered interest income.
245+24 (c) The officer making the investment may sell any securities
246+25 acquired and may do anything necessary to protect the interests of the
247+26 funds invested, including the exercise of exchange privileges which
248+27 may be granted with respect to maturing securities in cases where the
249+28 new securities offered in exchange meet the requirements for initial
250+29 investment.
251+30 (d) The investing officers of the political subdivisions are the legal
252+31 custodians of securities under this chapter. They shall accept
253+32 safekeeping receipts or other reporting for securities from:
254+33 (1) a duly designated depository as prescribed in this article; or
255+34 (2) a financial institution located either in or out of Indiana having
256+35 custody of securities with a combined capital and surplus of at
257+36 least ten million dollars ($10,000,000) according to the last
258+37 statement of condition filed by the financial institution with its
259+38 governmental supervisory body.
260+39 (e) The state board of accounts may rely on safekeeping receipts or
261+40 other reporting from any depository or financial institution.
262+41 (f) In addition to any other investments allowed under this chapter,
263+42 an officer of a conservancy district located in a city having a population
264+ES 419—LS 6606/DI 120 4
265+1 of more than five thousand (5,000) and less than five thousand one
266+2 hundred thirty (5,130) may also invest in:
267+3 (1) municipal securities; and
268+4 (2) equity securities;
269+5 having a stated final maturity of any number of years or having no
270+6 stated final maturity. The total investments outstanding under this
271+7 subsection may not exceed twenty-five percent (25%) of the total
272+8 portfolio of funds invested by the officer of a conservancy district.
273+9 However, an investment that complies with this subsection when the
274+10 investment is made remains legal even if a subsequent decrease in the
275+11 total portfolio invested by the officer of a conservancy district causes
276+12 the percentage of investments outstanding under this subsection to
277+13 exceed twenty-five percent (25%).
278+14 (g) In addition to any other investments allowed under this chapter,
279+15 the clerk-treasurer of a town with a population of more than ten
280+16 thousand (10,000) and less than twenty thousand (20,000) located in a
281+17 county having a population of more than one hundred seventy-four
282+18 thousand (174,000) and less than one hundred eighty thousand
283+19 (180,000) may also invest money in a host community agreement
284+20 future fund established by ordinance of the town in:
285+21 (1) municipal securities; and
286+22 (2) equity securities;
287+23 having a stated final maturity of any number of years or having no
288+24 stated final maturity. The total investments outstanding under this
289+25 subsection may not exceed twenty-five percent (25%) of the total
290+26 portfolio of funds invested by the clerk-treasurer of a town. However,
291+27 an investment that complies with this subsection when the investment
292+28 is made remains legal even if a subsequent decrease in the total
293+29 portfolio invested by the clerk-treasurer of a town causes the
294+30 percentage of investments outstanding under this subsection to exceed
295+31 twenty-five percent (25%).
296+32 SECTION 4. IC 5-13-10.5-11 IS AMENDED TO READ AS
297+33 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 11. The treasurer of
298+34 state may invest or reinvest funds that are held by the treasurer and that
299+35 are available for investment in obligations issued by any of the
300+36 following:
301+37 (1) Agencies or instrumentalities of the United States
302+38 government.
303+39 (2) Federal government sponsored enterprises.
304+40 (3) The Indiana bond bank, if the obligations are secured by tax
305+41 anticipation time warrants or notes that: either:
306+42 (A) tax anticipation time warrants or notes that:
307+ES 419—LS 6606/DI 120 5
308+1 (A) (i) are issued by a political subdivision (as defined in
309+2 IC 36-1-2-13); and
310+3 (B) (ii) have a maturity date not later than the end of the
311+4 calendar year following the year of issuance; or
312+5 (B) a security (as defined in IC 5-1.5-1-10) that:
313+6 (i) is subject to the statutory intercept and deduction
314+7 provisions of IC 5-1.5-8-5, IC 6-1.1-20.6-10,
315+8 IC 20-48-1-11, or a similar applicable statutory
316+9 provision; and
317+10 (ii) has a maturity date that is not later than the date of
318+11 the maximum term of the security as permitted under
319+12 state law.
320+13 SECTION 5. IC 5-13-12-7, AS AMENDED BY P.L.189-2018,
321+14 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
322+15 JULY 1, 2023]: Sec. 7. (a) The board for depositories shall manage and
323+16 operate the insurance fund. All expenses incident to the administration
324+17 of the fund shall be paid out of the money accumulated in it subject to
325+18 the direction of the board for depositories. Money in the fund may not
326+19 be expended, removed, or transferred from the fund for any purpose
327+20 other than the following unless the expenditure, the removal, or transfer
328+21 is first reviewed by the budget committee:
329+22 (1) Paying expenses of administering the fund.
330+23 (2) Investing, reinvesting, and exchanging investments as
331+24 described in subsection (d).
332+25 (3) Paying claims on insured public deposits under IC 5-13-13.
333+26 (4) Making payments required by contracts executed under
334+27 section 3(a)(6) of this chapter.
335+28 (5) Making deposits of uninvested funds under section 3(a)(8) of
336+29 this chapter.
337+30 (6) Paying allowable expenses as provided in section 4 of this
338+31 chapter.
339+32 (b) Effective January 1 and July 1 in each year, the board shall
340+33 before those dates redetermine the amount of the reserve to be
341+34 maintained by the insurance fund. The establishment or any change in
342+35 the reserve for losses shall be determined by the board based on
343+36 information the board considers, including but not limited to capital
344+37 adequacy, liquidity, and asset quality, and a study to be made or
345+38 updated by actuaries, economists, or other consultants based on the
346+39 history of losses, earnings on the funds, conditions of the depositories,
347+40 economic conditions affecting particular depositories or depositories
348+41 in general, and any other factors that the board considers relevant in
349+42 making its determination. The reserve determined by the board must be
350+ES 419—LS 6606/DI 120 6
351+1 sufficient to ensure the safekeeping and prompt payment of public
352+2 funds to the extent they are not covered by insurance of any federal
353+3 deposit insurance agency.
354+4 (c) At the end of each biennial period during which depositories
355+5 have had public funds on deposit under this chapter and paid the
356+6 assessments levied by the board, the board shall compute its receipts
357+7 from assessments and all other sources and its expenses and losses and
358+8 determine the profit derived from the operation of the fund for the
359+9 period. Until the amount of the reserve for losses has been
360+10 accumulated, all assessments levied for a biennial period shall be
361+11 retained by the fund. The amount of the assessments, if any, levied by
362+12 the board shall, to the extent the fund exceeds the reserve for losses at
363+13 the end of a biennial period commencing July 1 of each odd-numbered
364+14 year, be distributed to the depositories that had public funds on deposit
365+15 during the biennial period in which the assessments were paid. The
366+16 distribution shall be made to the respective depositories in the
367+17 proportion that the total assessments paid by each depository during
368+18 that period bears to the total assessments then paid by all depositories.
369+19 A distribution to which any closed depository would otherwise be
370+20 entitled shall be set off against any claim that the insurance fund may
371+21 have against the closed depository.
372+22 (d) The board may invest, reinvest, and exchange investments of the
373+23 insurance fund in excess of the cash working balance in any of the
374+24 following:
375+25 (1) In bonds, notes, certificates, and other valid obligations of the
376+26 United States, either directly or, subject to the limitations in
377+27 subsection (e), in the form of securities of or other interests in an
378+28 open-end no-load management-type investment company or
379+29 investment trust registered under the provisions of the Investment
380+30 Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
381+31 (2) In bonds, notes, debentures, and other securities issued by a
382+32 federal agency or a federal instrumentality and fully guaranteed
383+33 by the United States either directly or, subject to the limitations
384+34 in subsection (e), in the form of securities of or other interests in
385+35 an open-end no-load management-type investment company or
386+36 investment trust registered under the provisions of the Investment
387+37 Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
388+38 (3) In bonds, notes, certificates, and other valid obligations of a
389+39 state or of an Indiana political subdivision that are issued under
390+40 law, the issuers of which, for five (5) years before the date of the
391+41 investment, have promptly paid the principal and interest on their
392+42 bonds and other legal obligations.
393+ES 419—LS 6606/DI 120 7
394+1 (4) In bonds or other obligations of the Indiana finance authority
395+2 issued under IC 5-1.2.
396+3 (5) In investments permitted the state under IC 5-13-10.5.
397+4 (6) In guarantees of economic development obligations or credit
398+5 enhancement obligations, or both, for the purposes of retaining
399+6 and increasing employment in enterprises in Indiana, subject to
400+7 the limitations and conditions set out in this subdivision,
401+8 subsection (e), and section 8 of this chapter. An individual
402+9 guarantee of the board under this subdivision must not exceed
403+10 eight million dollars ($8,000,000).
404+11 (7) In guarantees of bonds or notes bonds, notes, or other valid
405+12 obligations of the Indiana bond bank issued under IC 5-1.5-4-1,
406+13 subject to the limitations and conditions set out in subsection (e)
407+14 and section 8 of this chapter.
408+15 (8) In bonds, notes, or other valid obligations of the Indiana
409+16 finance authority that have been issued in conjunction with the
410+17 authority's acquisition, development, or improvement of property
411+18 or other interests for an economic development project (as
412+19 defined in IC 5-1.2-2) that the authority has undertaken for the
413+20 purposes of retaining or increasing employment in existing or new
414+21 enterprises in Indiana, subject to the limitations in subsection (e).
415+22 (9) In notes or other debt obligations of counties, cities, and towns
416+23 that have been issued under IC 6-1.1-39 for borrowings from the
417+24 industrial development fund under IC 5-28-9 for purposes of
418+25 retaining or increasing employment in existing or new enterprises
419+26 in Indiana, subject to the limitations in subsection (e).
420+27 (10) In bonds or other obligations of the Indiana housing and
421+28 community development authority.
422+29 (e) The investment authority of the board under subsection (d) is
423+30 subject to the following limitations:
424+31 (1) For investments under subsection (d)(1) and (d)(2), the
425+32 portfolio of an open-end no-load management-type investment
426+33 company or investment trust must be limited to:
427+34 (A) direct obligations of the United States and obligations of
428+35 a federal agency or a federal instrumentality that are fully
429+36 guaranteed by the United States; and
430+37 (B) repurchase agreements fully collateralized by obligations
431+38 described in clause (A), of which the company or trust takes
432+39 delivery either directly or through an authorized custodian.
433+40 (2) Total outstanding investments in guarantees of economic
434+41 development obligations and credit enhancement obligations
435+42 under subsection (d)(6) must not exceed the greater of:
436+ES 419—LS 6606/DI 120 8
437+1 (A) ten percent (10%) of the available balance of the insurance
438+2 fund; or
439+3 (B) fourteen million dollars ($14,000,000).
440+4 (3) Total outstanding investments in bonds, notes, or other valid
441+5 obligations guarantees of the Indiana bond bank obligations
442+6 under subsection (d)(7) must not exceed the greater of:
443+7 (A) twenty percent (20%) of the available balance of the
444+8 insurance fund; or
445+9 (B) twenty-four million dollars ($24,000,000).
446+10 (4) Total outstanding investments in bonds, notes, or other
447+11 obligations of the Indiana finance authority under subsection
448+12 (d)(8) may not exceed the greater of:
449+13 (A) fifteen percent (15%) of the available balance of the
450+14 insurance fund; or
451+15 (B) twenty million dollars ($20,000,000).
452+16 However, after June 30, 1988, the board may not make any
453+17 additional investment in bonds, notes, or other obligations of the
454+18 Indiana finance authority issued under IC 4-4-11 (before its
455+19 repeal), and the board may invest an amount equal to the
456+20 remainder, if any, of:
457+21 (i) fifteen percent (15%) of the available balance of the
458+22 insurance fund; minus
459+23 (ii) the board's total outstanding investments in bonds, notes,
460+24 or other obligations of the Indiana finance authority issued
461+25 under IC 4-4-11 (before its repeal);
462+26 in guarantees of economic development obligations or credit
463+27 enhancement obligations, or both, as authorized by subsection
464+28 (d)(6). In such a case, the outstanding investments, as authorized
465+29 by subsection (d)(6) and (d)(8), may not exceed in total the
466+30 greater of twenty-five percent (25%) of the available balance of
467+31 the insurance fund or thirty-four million dollars ($34,000,000).
468+32 (5) Total outstanding investments in notes or other debt
469+33 obligations of counties, cities, and towns under subsection (d)(9)
470+34 may not exceed the greater of:
471+35 (A) ten percent (10%) of the available balance of the insurance
472+36 fund; or
473+37 (B) twelve million dollars ($12,000,000).
474+38 (f) For purposes of subsection (e), the available balance of the
475+39 insurance fund does not include the outstanding principal amount of
476+40 any fund investment in a corporate note or obligation or the part of the
477+41 fund that has been established as a reserve for losses.
478+42 (g) All interest and other income earned on investments of the
479+ES 419—LS 6606/DI 120 9
480+1 insurance fund and all amounts collected by the board accrue to the
481+2 fund.
482+3 (h) Members of the board and any officers or employees of the
483+4 board are not subject to personal liability or accountability by reason
484+5 of any investment in any of the obligations listed in subsection (d).
485+6 SECTION 6. IC 6-1.1-20.3-5, AS AMENDED BY
486+7 P.L.213-2018(ss), SECTION 4, IS AMENDED TO READ AS
487+8 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The board may
488+9 employ an executive director staff who shall serve at the pleasure of
489+10 the board and carry out the administrative responsibilities assigned by
490+11 the board. The board may delegate a specific duty, authority, or
491+12 responsibility assigned to the board under this chapter to the executive
492+13 director. staff.
493+14 (b) The department of local government finance shall provide the
494+15 board with the staff and assistance that the board reasonably requires.
495+16 (c) The department of local government finance shall may provide
496+17 from the department's budget funding to support the board's duties
497+18 under this chapter.
498+19 (d) The board may contract with accountants, financial experts, and
499+20 other advisors and consultants as necessary to carry out the board's
500+21 duties under this chapter.
501+22 (e) The board may adopt rules to implement the board's duties,
502+23 authorities, or responsibilities, including those in this chapter and those
503+24 in IC 20-19-7.
504+25 SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE JULY
505+26 1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
506+27 Community Schools.
507+28 (b) The general assembly finds that the provisions of this section:
508+29 (1) are necessary to address the unique issues faced by the
509+30 Muncie Community Schools;
510+31 (2) are not precedent for and may not be appropriate for
511+32 addressing issues faced by other school corporations; and
512+33 (3) are consistent with the board designating the Muncie
513+34 Community school corporation as a distressed political
514+35 subdivision effective January 1, 2018.
515+36 (c) Notwithstanding section 7.5(d) of this chapter, the board shall
516+37 determine the compensation of the emergency manager, pay the
517+38 emergency manager's compensation, and reimburse the emergency
518+39 manager for actual and necessary expenses from funds appropriated to
519+40 the board.
520+41 (d) In addition to any other actions that the board may take under
521+42 this chapter concerning a distressed political subdivision, the board
522+ES 419—LS 6606/DI 120 10
523+1 may recommend, before July 1, 2020, to the state board of finance that
524+2 the state board of finance make an interest free loan to the school
525+3 corporation from the common school fund. The distressed unit appeal
526+4 board shall determine the payment schedule and the commencement
527+5 date for the loan. If the board makes a recommendation that such a loan
528+6 be made, the state board of finance may, notwithstanding IC 20-49,
529+7 make the loan for a term of not more than ten (10) years.
530+8 SECTION 8. IC 6-1.1-20.3-15, AS AMENDED BY
531+9 P.L.213-2018(ss), SECTION 13, IS AMENDED TO READ AS
532+10 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
533+11 executive of a political subdivision or a majority of the members of the
534+12 fiscal body of a political subdivision may request technical assistance
535+13 from the board in helping prevent the political subdivision from
536+14 becoming a distressed political subdivision. The board, by using the
537+15 health fiscal and qualitative indicators developed under IC 20-19-7 or
538+16 the fiscal health indicators developed under IC 5-14-3.8-8, shall
539+17 determine whether to provide assistance to the political subdivision.
540+18 (b) The board may do any of the following for a political subdivision
541+19 that receives assistance under subsection (a):
542+20 (1) Provide information and technical assistance with respect to
543+21 the data management, accounting, or other aspects of the fiscal
544+22 management of the political subdivision.
545+23 (2) Assist the political subdivision in obtaining assistance from
546+24 state agencies and other resources.
547+25 SECTION 9. IC 6-1.1-21.2-8, AS AMENDED BY P.L.203-2011,
548+26 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
549+27 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 8. As used in this
550+28 chapter, "special fund" means:
551+29 (1) the special funds referred to in IC 6-1.1-39-5;
552+30 (2) the special funds referred to in IC 8-22-3.5-9(e);
553+31 (3) the allocation fund referred to in IC 36-7-14-39(b)(3);
554+32 IC 36-7-14-39(b)(4);
555+33 (4) the allocation fund referred to in IC 36-7-14.5-12.5(d);
556+34 (5) the special fund referred to in IC 36-7-15.1-26(b)(3);
557+35 (6) the special fund referred to in IC 36-7-15.1-53(b)(3);
558+36 (7) the allocation fund referred to in IC 36-7-30-25(b)(3); or
559+37 (8) the allocation fund referred to in IC 36-7-30.5-30(b)(3).
560+38 SECTION 10. IC 6-1.1-24-2, AS AMENDED BY SEA 157-2023,
561+39 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
562+40 UPON PASSAGE]: Sec. 2. (a) This section does not apply to vacant or
563+41 abandoned real property that is on the list prepared by the county
564+42 auditor under section 1.5 of this chapter.
565+ES 419—LS 6606/DI 120 11
566+1 (b) In addition to the delinquency list required under section 1 of
567+2 this chapter, each county auditor shall prepare a notice. The notice shall
568+3 contain the following:
569+4 (1) A list of tracts or real property eligible for sale under this
570+5 chapter.
571+6 (2) A statement that the tracts or real property included in the list
572+7 will be sold at public auction to the highest bidder, subject to the
573+8 right of redemption.
574+9 (3) A statement that the tracts or real property will not be sold for
575+10 an amount which is less than the sum of:
576+11 (A) the delinquent taxes and special assessments on each tract
577+12 or item of real property;
578+13 (B) the taxes and special assessments on each tract or item of
579+14 real property that are due and payable in the year of the sale,
580+15 whether or not they are delinquent;
581+16 (C) all penalties due on the delinquencies;
582+17 (D) an amount prescribed by the county auditor that equals the
583+18 sum of:
584+19 (i) the greater of twenty-five dollars ($25) or postage and
585+20 publication costs; and
586+21 (ii) any other actual costs incurred by the county that are
587+22 directly attributable to the tax sale; and
588+23 (E) any unpaid costs due under subsection (c) from a prior tax
589+24 sale.
590+25 (4) A statement that a person redeeming each tract or item of real
591+26 property after the sale must pay:
592+27 (A) one hundred ten percent (110%) of the amount of the
593+28 minimum bid for which the tract or item of real property was
594+29 offered at the time of sale if the tract or item of real property
595+30 is redeemed not more than six (6) months after the date of
596+31 sale;
597+32 (B) one hundred fifteen percent (115%) of the amount of the
598+33 minimum bid for which the tract or item of real property was
599+34 offered at the time of sale if the tract or item of real property
600+35 is redeemed more than six (6) months after the date of sale;
601+36 (C) the amount by which the purchase price exceeds the
602+37 minimum bid on the tract or item of real property plus five
603+38 percent (5%) interest per annum, on the amount by which the
604+39 purchase price exceeds the minimum bid; and
605+40 (D) all taxes and special assessments on the tract or item of
606+41 real property paid by the purchaser after the tax sale plus
607+42 interest at the rate of five percent (5%) per annum, on the
608+ES 419—LS 6606/DI 120 12
609+1 amount of taxes and special assessments paid by the purchaser
610+2 on the redeemed property.
611+3 (5) A statement for informational purposes only, of the location
612+4 of each tract or item of real property by key number, if any, and
613+5 street address, if any, or a common description of the property
614+6 other than a legal description. The township assessor, or the
615+7 county assessor if there is no township assessor for the township,
616+8 upon written request from the county auditor, shall provide the
617+9 information to be in the notice required by this subsection. A
618+10 misstatement in the key number or street address does not
619+11 invalidate an otherwise valid sale.
620+12 (6) A statement that the county does not warrant the accuracy of
621+13 the street address or common description of the property.
622+14 (7) A statement indicating:
623+15 (A) the name of the owner of each tract or item of real
624+16 property with a single owner; or
625+17 (B) the name of at least one (1) of the owners of each tract or
626+18 item of real property with multiple owners.
627+19 (8) A statement of the procedure to be followed for obtaining or
628+20 objecting to a judgment and order of sale, that must include the
629+21 following:
630+22 (A) A statement:
631+23 (i) that the county auditor and county treasurer will apply on
632+24 or after a date designated in the notice for a court judgment
633+25 against the tracts or real property for an amount that is not
634+26 less than the amount set under subdivision (3), and for an
635+27 order to sell the tracts or real property at public auction to
636+28 the highest bidder, subject to the right of redemption; and
637+29 (ii) indicating the date when the period of redemption
638+30 specified in IC 6-1.1-25-4 will expire.
639+31 (B) A statement that any defense to the application for
640+32 judgment must be:
641+33 (i) filed with the court; and
642+34 (ii) served on the county auditor and the county treasurer;
643+35 before the date designated as the earliest date on which the
644+36 application for judgment may be filed.
645+37 (C) A statement that the county auditor and the county
646+38 treasurer are entitled to receive all pleadings, motions,
647+39 petitions, and other filings related to the defense to the
648+40 application for judgment.
649+41 (D) A statement that the court will set a date for a hearing at
650+42 least seven (7) days before the advertised date and that the
651+ES 419—LS 6606/DI 120 13
652+1 court will determine any defenses to the application for
653+2 judgment at the hearing.
654+3 (9) A statement that the sale will be conducted at a place
655+4 designated in the notice and that the sale will continue until all
656+5 tracts and real property have been offered for sale.
657+6 (10) A statement that the sale will take place at the times and
658+7 dates designated in the notice. Whenever the public auction is to
659+8 be conducted as an electronic sale, the notice must include a
660+9 statement indicating that the public auction will be conducted as
661+10 an electronic sale and a description of the procedures that must be
662+11 followed to participate in the electronic sale.
663+12 (11) A statement that a person redeeming each tract or item after
664+13 the sale must pay the costs described in IC 6-1.1-25-2(e).
665+14 (12) If a county auditor and county treasurer have entered into an
666+15 agreement under IC 6-1.1-25-4.7, a statement that the county
667+16 auditor will perform the duties of the notification and title search
668+17 under IC 6-1.1-25-4.5 and the notification and petition to the
669+18 court for the tax deed under IC 6-1.1-25-4.6.
670+19 (13) A statement that, if the tract or item of real property is sold
671+20 for an amount more than the minimum bid and the property is not
672+21 redeemed, the owner of record of the tract or item of real property
673+22 who is divested of ownership at the time the tax deed is issued
674+23 may have a right to the tax sale surplus.
675+24 (14) If a determination has been made under subsection (e), a
676+25 statement that tracts or items will be sold together.
677+26 (15) A statement that if a tract or item of real property has been
678+27 offered for sale at a county treasurer's tax sale in accordance with
679+28 section 5 of this chapter and a county executive's tax sale in
680+29 accordance with section 6.1 of this chapter on two (2) or more
681+30 occasions without a bid, the tract or item of real property may be
682+31 subject to an ordinance adopted under IC 6-1.1-25-4.9.
683+32 (16) With respect to a tract or an item of real property that is
684+33 subject to sale under this chapter after October 31, 2023, and
685+34 before November 1, 2024, a statement declaring whether an
686+35 ordinance adopted under IC 6-1.1-37-16 is in effect in the
687+36 county and, if applicable, an explanation of the circumstances
688+37 in which interest and penalties on the delinquent taxes and
689+38 special assessments will be waived.
690+39 (c) If within sixty (60) days before the date of the tax sale the county
691+40 incurs costs set under subsection (b)(3)(D) and those costs are not paid,
692+41 the county auditor shall enter the amount of costs that remain unpaid
693+42 upon the tax duplicate of the property for which the costs were set. The
694+ES 419—LS 6606/DI 120 14
695+1 county treasurer shall mail notice of unpaid costs entered upon a tax
696+2 duplicate under this subsection to the owner of the property identified
697+3 in the tax duplicate.
698+4 (d) The amount of unpaid costs entered upon a tax duplicate under
699+5 subsection (c) must be paid no later than the date upon which the next
700+6 installment of real estate taxes for the property is due. Unpaid costs
701+7 entered upon a tax duplicate under subsection (c) are a lien against the
702+8 property described in the tax duplicate, and amounts remaining unpaid
703+9 on the date the next installment of real estate taxes is due may be
704+10 collected in the same manner that delinquent property taxes are
705+11 collected.
706+12 (e) The county auditor and county treasurer may establish the
707+13 condition that a tract or item will be sold and may be redeemed under
708+14 this chapter only if the tract or item is sold or redeemed together with
709+15 one (1) or more other tracts or items. Property may be sold together
710+16 only if the tract or item is owned by the same person.
711+17 SECTION 11. IC 6-1.1-24-4, AS AMENDED BY P.L.251-2015,
712+18 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
713+19 UPON PASSAGE]: Sec. 4. (a) This section does not apply to vacant or
714+20 abandoned real property that is on the list prepared by the county
715+21 auditor under section 1.5 of this chapter.
716+22 (b) Not less than twenty-one (21) days before the earliest date on
717+23 which the application for judgment and order for sale of real property
718+24 eligible for sale may be made, the county auditor shall send a notice of
719+25 the sale by certified mail, return receipt requested, and by first class
720+26 mail to:
721+27 (1) the owner of record of real property with a single owner; or
722+28 (2) at least one (1) of the owners, as of the date of certification, of
723+29 real property with multiple owners;
724+30 at the last address of the owner for the property as indicated in the
725+31 transfer book records of the county auditor under IC 6-1.1-5-4 on the
726+32 date that the tax sale list is certified. If both notices are returned, the
727+33 county auditor shall take an additional reasonable step to notify the
728+34 property owner, if the county auditor determines that an additional
729+35 reasonable step to notify the property owner is practical. The county
730+36 auditor shall prepare the notice in the form prescribed by the state
731+37 board of accounts. The notice must set forth the key number, if any, of
732+38 the real property and a street address, if any, or other common
733+39 description of the property other than a legal description. The notice
734+40 must include the statement set forth in section 2(b)(4) of this chapter.
735+41 With respect to a tract or an item of real property that is subject
736+42 to sale under this chapter after October 31, 2023, and before
737+ES 419—LS 6606/DI 120 15
738+1 November 1, 2024, the notice must include a statement declaring
739+2 whether an ordinance adopted under IC 6-1.1-37-16 is in effect in
740+3 the county and, if applicable, an explanation of the circumstances
741+4 in which interest and penalties on the delinquent taxes and special
742+5 assessments will be waived. The county auditor must present proof of
743+6 this mailing to the court along with the application for judgment and
744+7 order for sale. Failure by an owner to receive or accept the notice
745+8 required by this section does not affect the validity of the judgment and
746+9 order. The owner of real property shall notify the county auditor of the
747+10 owner's correct address. The notice required under this section is
748+11 considered sufficient if the notice is mailed to the address or addresses
749+12 required by this section.
750+13 (c) On or before the day of sale, the county auditor shall list, on the
751+14 tax sale record required by IC 6-1.1-25-8, all properties that will be
752+15 offered for sale.
753+16 SECTION 12. IC 6-1.1-24-5, AS AMENDED BY P.L.251-2015,
754+17 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
755+18 UPON PASSAGE]: Sec. 5. (a) When a tract or an item of real property
756+19 is subject to sale under this chapter, it must be sold in compliance with
757+20 this section.
758+21 (b) The sale must be held at the times and place stated in the notice
759+22 of sale.
760+23 (c) A tract or an item of real property may not be sold under this
761+24 chapter to collect:
762+25 (1) delinquent personal property taxes; or
763+26 (2) taxes or special assessments which are chargeable to other real
764+27 property.
765+28 (d) A tract or an item of real property may not be sold under this
766+29 chapter if all the delinquent taxes, penalties, and special assessments
767+30 on the tract or an item of real property and the amount prescribed by
768+31 section 1.5 or 2(b)(3)(D) of this chapter, whichever applies, reflecting
769+32 the costs incurred by the county due to the sale, are paid before the time
770+33 of sale.
771+34 (e) The county treasurer shall sell the tract or item of real property,
772+35 subject to the right of redemption, to the highest bidder at public
773+36 auction. The right of redemption after a sale does not apply to an item
774+37 of real property that is on the vacant and abandoned property list
775+38 prepared by the county auditor under section 1.5 of this chapter. Except
776+39 as provided in section 1.5 of this chapter, a tract or an item of real
777+40 property may not be sold for an amount which is less than the sum of:
778+41 (1) the delinquent taxes and special assessments on each tract or
779+42 item of real property;
780+ES 419—LS 6606/DI 120 16
781+1 (2) the taxes and special assessments on each tract or item of real
782+2 property that are due and payable in the year of the sale,
783+3 regardless of whether the taxes and special assessments are
784+4 delinquent;
785+5 (3) all penalties which are due on the delinquencies;
786+6 (4) the amount prescribed by section 2(b)(3)(D) of this chapter
787+7 reflecting the costs incurred by the county due to the sale;
788+8 (5) any unpaid costs which are due under section 2(c) of this
789+9 chapter from a prior tax sale; and
790+10 (6) other reasonable expenses of collection, including title search
791+11 expenses, uniform commercial code expenses, and reasonable
792+12 attorney's fees incurred by the date of the sale.
793+13 The amount of penalties due on the delinquencies under
794+14 subdivision (3) must be adjusted in accordance with IC 6-1.1-37-16,
795+15 if applicable.
796+16 (f) For purposes of the sale, it is not necessary for the county
797+17 treasurer to first attempt to collect the real property taxes or special
798+18 assessments out of the personal property of the owner of the tract or
799+19 real property.
800+20 (g) The county auditor shall serve as the clerk of the sale.
801+21 (h) Real property certified to the county auditor under section 1.5 of
802+22 this chapter must be offered for sale in a different phase of the tax sale
803+23 or on a different day of the tax sale than the phase or day during which
804+24 other real property is offered for sale.
805+25 (i) The public auction required under subsection (e) may be
806+26 conducted by electronic means, at the option of the county treasurer.
807+27 The electronic sale must comply with the other statutory requirements
808+28 of this section. If an electronic sale is conducted under this subsection,
809+29 the county treasurer shall provide access to the electronic sale by
810+30 providing computer terminals open to the public at a designated
811+31 location. A county treasurer who elects to conduct an electronic sale
812+32 may receive electronic payments and establish rules necessary to
813+33 secure the payments in a timely fashion. The county treasurer may not
814+34 add an additional cost of sale charge to a parcel for the purpose of
815+35 conducting the electronic sale.
816+36 SECTION 13. IC 6-1.1-37-16 IS ADDED TO THE INDIANA
817+37 CODE AS A NEW SECTION TO READ AS FOLLOWS
818+38 [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) The fiscal body of a
819+39 county may, before November 1, 2023, adopt an ordinance to have
820+40 this section apply throughout the county. If the fiscal body of a
821+41 county adopts an ordinance under this subsection, the ordinance
822+42 applies after October 31, 2023, and before November 1, 2024. The
823+ES 419—LS 6606/DI 120 17
824+1 fiscal body shall deliver a copy of the ordinance to the county
825+2 treasurer and the county auditor.
826+3 (b) Subject to subsection (d), the county treasurer of a county to
827+4 which this section applies shall waive all interest and penalties
828+5 added before January 1, 2023, to a delinquent property tax
829+6 installment or special assessment on a tract or an item of real
830+7 property if:
831+8 (1) all of the delinquent taxes and special assessments on the
832+9 tract or item of real property were first due and payable
833+10 before January 1, 2023; and
834+11 (2) before November 1, 2024, the taxpayer has paid:
835+12 (A) all of the delinquent taxes and special assessments
836+13 described in subdivision (1); and
837+14 (B) all of the taxes and special assessments that are first
838+15 due and payable on the tract or item of real property after
839+16 December 31, 2022, and before November 1, 2024 (and any
840+17 interest and penalties on these taxes and special
841+18 assessments).
842+19 (c) Subject to subsection (d), the county treasurer of a county to
843+20 which this section applies shall waive interest and penalties as
844+21 provided in subsection (b) if the conditions of subsection (b) are
845+22 satisfied, notwithstanding any payment arrangement entered into
846+23 by the county treasurer and the taxpayer under IC 6-1.1-24-1.2 or
847+24 under any other law.
848+25 (d) This section shall not apply to interest and penalties added
849+26 to delinquent property tax installments or special assessments on
850+27 a tract or item of real property that was purchased or sold in any
851+28 prior tax sale.
852+29 SECTION 14. IC 6-2.5-5-2, AS AMENDED BY P.L.239-2017,
853+30 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
854+31 JULY 1, 2023]: Sec. 2. (a) Transactions involving agricultural
855+32 machinery, tools, and equipment, including material handling
856+33 equipment purchased for the purpose of transporting materials into
857+34 activities described in this subsection from an onsite location, are
858+35 exempt from the state gross retail tax if the person acquiring that
859+36 property acquires it for the person's direct use in the direct production,
860+37 extraction, harvesting, or processing of agricultural commodities.
861+38 (b) Transactions involving agricultural machinery or equipment are
862+39 exempt from the state gross retail tax if:
863+40 (1) the person acquiring the property acquires it for use in
864+41 conjunction with the production of food and food ingredients or
865+42 commodities for sale;
866+ES 419—LS 6606/DI 120 18
867+1 (2) the person acquiring the property is occupationally engaged in
868+2 the production of food or commodities which the person sells for
869+3 human or animal consumption or uses for further food and food
870+4 ingredients or commodity production; and
871+5 (3) the machinery or equipment is designed for use in gathering,
872+6 moving, or spreading animal waste.
873+7 (c) Transactions involving agricultural machinery or equipment,
874+8 including material handling equipment purchased for the purpose of
875+9 transporting materials into activities described in this subsection from
876+10 an onsite location, are exempt from the state gross retail tax if the
877+11 person acquiring the property:
878+12 (1) acquires it for the person's direct use in:
879+13 (A) the direct application of fertilizers, pesticides, fungicides,
880+14 seeds, and other tangible personal property; or
881+15 (B) the direct extraction, harvesting, or processing of
882+16 agricultural commodities;
883+17 for consideration; and
884+18 (2) is occupationally engaged in providing the services described
885+19 in subdivision (1) on property that is:
886+20 (A) owned or rented by another person occupationally engaged
887+21 in agricultural production; and
888+22 (B) used for agricultural production.
889+23 (d) If a transaction:
890+24 (1) involving agricultural machinery, tools, or equipment
891+25 qualifies for an exemption under subsection (a), (b), or (c);
892+26 (2) involves agricultural machinery, tools, or equipment
893+27 included on the person's business tangible personal property
894+28 tax return, or, if IC 6-1.1-3-7.2(f) applies, agricultural
895+29 machinery, tools, or equipment that would otherwise be
896+30 included on a business tangible personal property tax return;
897+31 and
898+32 (3) the agricultural machinery, tools, or equipment is
899+33 predominately used for exempt purposes under subsection (a),
900+34 (b), or (c);
901+35 the entire transaction is exempt from the application of the state
902+36 gross retail tax regardless of whether the person also uses or
903+37 intends to use the property for a nonexempt purpose. Transactions
904+38 involving agricultural machinery, tools, or equipment under this
905+39 section may not be prorated.
906+40 (e) If agricultural machinery, tools, or equipment described in
907+41 this section is purchased in Indiana but is used outside of Indiana,
908+42 subsection (d)(2) shall apply as if the agricultural machinery, tools,
909+ES 419—LS 6606/DI 120 19
910+1 or equipment was located in Indiana.
911+2 (f) The department may amend the administrative rules to
912+3 conform with subsection (d).
913+4 SECTION 15. IC 6-2.5-5-8.5, AS AMENDED BY THE
914+5 TECHNICAL CORRECTIONS BILL OF THE 2023 GENERAL
915+6 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
916+7 UPON PASSAGE]: Sec. 8.5. Transactions involving electrical energy,
917+8 natural or artificial gas, water, steam, or steam heating service sold or
918+9 furnished by a power subsidiary or a person engaged as a public utility
919+10 are exempt from the state gross retail tax when:
920+11 (1) the a power subsidiary or person provides, installs, constructs,
921+12 services, or removes tangible personal property which is used in
922+13 connection with the furnishing of the services or commodities
923+14 listed in IC 6-2.5-4-5;
924+15 (2) the a power subsidiary or person sells the services or
925+16 commodities listed in IC 6-2.5-4-5 to another public utility or
926+17 power subsidiary or a person described in IC 6-2.5-4-6; or
927+18 (3) the a power subsidiary or person sells the services or
928+19 commodities listed in IC 6-2.5-4-5 and all of the following
929+20 conditions are satisfied:
930+21 (A) The services or commodities are sold to a business that:
931+22 (i) relocates all or part of its operations to a facility; or
932+23 (ii) expands all or part of its operations in a facility;
933+24 located in a military base (as defined in IC 36-7-30-1(c)), a
934+25 military base reuse area established under IC 36-7-14.5-12.5
935+26 that is or formerly was a military base (as defined in
936+27 IC 36-7-30-1(c)), or a qualified military base enhancement
937+28 area established under IC 36-7-34.
938+29 (B) The business uses the services or commodities in the
939+30 facility described in clause (A) not later than five (5) years
940+31 after the operation operations that relocated to the facility, or
941+32 expanded in the facility, commence.
942+33 (C) The sales of the services or commodities are separately
943+34 metered for use by the relocated or expanded operations.
944+35 (D) In the case of a business that uses the services or
945+36 commodities in a qualified military base enhancement area
946+37 established under IC 36-7-34-4(1), the business must satisfy at
947+38 least one (1) of the following criteria:
948+39 (i) The business is a participant in the technology transfer
949+40 program conducted by the qualified military base (as defined
950+41 in IC 36-7-34-3).
951+42 (ii) The business is a United States Department of Defense
952+ES 419—LS 6606/DI 120 20
953+1 contractor.
954+2 (iii) The business and the qualified military base have a
955+3 mutually beneficial relationship evidenced by a
956+4 memorandum of understanding between the business and
957+5 the United States Department of Defense.
958+6 (E) In the case of a business that uses the services and
959+7 commodities in a qualified military base enhancement area
960+8 established under IC 36-7-34-4(2), the business must satisfy at
961+9 least one (1) of the following criteria:
962+10 (i) The business is a participant in the technology transfer
963+11 program conducted by the qualified military base (as defined
964+12 in IC 36-7-34-3).
965+13 (ii) The business and the qualified miliary base have a
966+14 mutually beneficial relationship evidenced by a
967+15 memorandum of understanding between the business and
968+16 the qualified military base (as defined in IC 36-7-34-3).
969+17 However, this subdivision does not apply to a business that
970+18 substantially reduces or ceases its operations at another
971+19 location in Indiana in order to relocate its operations in an area
972+20 described in this subdivision, unless the department
973+21 determines that the business had existing operations in the area
974+22 described in this subdivision and that the operations relocated
975+23 to the area are an expansion of the business's operations in the
976+24 area.
977+25 However, this subdivision does not apply to a business that
978+26 substantially reduces or ceases its operations at another
979+27 location in Indiana in order to relocate its operations in an
980+28 area described in this subdivision, unless the department
981+29 determines that the business had existing operations in the
982+30 area described in this subdivision and that the operations
983+31 relocated to the area are an expansion of the business's
984+32 operations in the area.
985+33 SECTION 16. IC 6-2.5-5-10.7 IS ADDED TO THE INDIANA
986+34 CODE AS A NEW SECTION TO READ AS FOLLOWS
987+35 [EFFECTIVE JULY 1, 2023]: Sec. 10.7. (a) This section does not
988+36 apply to tangible personal property that:
989+37 (1) is used to store or consume usable energy, electricity, or
990+38 heat;
991+39 (2) is used to convey, transfer, or alter generated electricity;
992+40 or
993+41 (3) will be used to produce energy for the purchaser's
994+42 residential use, regardless of whether any of the energy
995+ES 419—LS 6606/DI 120 21
996+1 produced may be sold to a public utility or power subsidiary.
997+2 (b) As used in this section, "solar energy system" means any
998+3 device that converts solar energy to a form of usable energy with
999+4 an originally rated nameplate production capacity of at least two
1000+5 (2) megawatts.
1001+6 (c) As used in this section, "wind energy system" means any
1002+7 device, including a wind turbine, windmill, and wind charger, that
1003+8 converts wind energy to a form of usable energy with an originally
1004+9 rated nameplate production capacity of at least two (2) megawatts.
1005+10 (d) A transaction involving tangible personal property is exempt
1006+11 from the state gross retail tax if the:
1007+12 (1) tangible personal property is a component of a solar
1008+13 energy system or wind energy system; and
1009+14 (2) person acquiring the tangible personal property is a:
1010+15 (A) public utility that furnishes or sells electrical energy;
1011+16 (B) power subsidiary (as defined in IC 6-2.5-1-22.5) that
1012+17 furnishes or sells electrical energy to a power utility
1013+18 described in clause (A); or
1014+19 (C) business that furnishes or sells electrical energy to a
1015+20 public utility described in clause (A), to a power subsidiary
1016+21 described in clause (B), or to a renewable utility grade
1017+22 solar electricity or wind facility that is used to generate
1018+23 electricity for resale to consumers or wholesalers.
1019+24 SECTION 17. IC 6-2.5-5-57.5 IS ADDED TO THE INDIANA
1020+25 CODE AS A NEW SECTION TO READ AS FOLLOWS
1021+26 [EFFECTIVE JULY 1, 2023]: Sec. 57.5. (a) As used in this section,
1022+27 "breastfeeding items" means breast pumps, breast pump kits,
1023+28 breast pump repair and replacement parts, and breast pump
1024+29 collection and storage supplies.
1025+30 (b) Sales of breastfeeding items are exempt from the state gross
1026+31 retail tax.
1027+32 SECTION 18. IC 6-2.5-8-3 IS REPEALED [EFFECTIVE UPON
1028+33 PASSAGE]. Sec. 3. (a) A manufacturer or wholesaler may register with
1029+34 the department as a purchaser of property in exempt transactions. A
1030+35 manufacturer or wholesaler wishing to register must apply in the same
1031+36 manner and pay the same fee as a retail merchant under section 1 of
1032+37 this chapter.
1033+38 (b) Upon receiving the application and fee, the department may
1034+39 issue a manufacturer's or wholesaler's certificate for each place of
1035+40 business listed on the application. Each certificate shall contain a serial
1036+41 number and the location of the place of business for which it is issued.
1037+42 SECTION 19. IC 6-2.5-8-5, AS AMENDED BY P.L.111-2006,
1038+ES 419—LS 6606/DI 120 22
1039+1 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1040+2 UPON PASSAGE]: Sec. 5. A certificate issued under section 3 or 4 of
1041+3 this chapter is valid so long as the business or exempt organization is
1042+4 in existence.
1043+5 SECTION 20. IC 6-2.5-8-7, AS AMENDED BY P.L.156-2020,
1044+6 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1045+7 UPON PASSAGE]: Sec. 7. (a) The department may, for good cause,
1046+8 revoke a certificate issued under section 1 3, or 4 of this chapter.
1047+9 However, the department must give the certificate holder at least five
1048+10 (5) days notice before it revokes the certificate under this subsection.
1049+11 Good cause for revocation may include the following:
1050+12 (1) Failure to:
1051+13 (A) file a return required under this chapter or for any tax
1052+14 collected for the state in trust; or
1053+15 (B) remit any tax collected for the state in trust.
1054+16 (2) Being charged with a violation of any provision under IC 35.
1055+17 (3) Being subject to a court order under IC 7.1-2-6-7,
1056+18 IC 32-30-6-8, IC 32-30-7, or IC 32-30-8.
1057+19 (4) Being charged with a violation of IC 23-15-12.
1058+20 (5) Operating as a retail merchant where the certificate issued
1059+21 under section 1 of this chapter could have been denied under
1060+22 section 1(e) of this chapter prior to its issuance.
1061+23 The department may revoke a certificate before a criminal adjudication
1062+24 or without a criminal charge being filed. If the department gives notice
1063+25 of an intent to revoke based on an alleged violation of subdivision (2),
1064+26 the department shall hold a public hearing to determine whether good
1065+27 cause exists. If the department finds in a public hearing by a
1066+28 preponderance of the evidence that a person has committed a violation
1067+29 described in subdivision (2), the department shall proceed in
1068+30 accordance with subsection (i) (if the violation resulted in a criminal
1069+31 conviction) or subsection (j) (if the violation resulted in a judgment for
1070+32 an infraction).
1071+33 (b) The department shall revoke a certificate issued under section
1072+34 1 3, or 4 of this chapter if, for a period of three (3) years, the certificate
1073+35 holder fails to:
1074+36 (1) file the returns required by IC 6-2.5-6-1; or
1075+37 (2) report the collection of any state gross retail or use tax on the
1076+38 returns filed under IC 6-2.5-6-1.
1077+39 However, the department must give the certificate holder at least five
1078+40 (5) days notice before it revokes the certificate.
1079+41 (c) The department may, for good cause, revoke a certificate issued
1080+42 under section 1 of this chapter after at least five (5) days notice to the
1081+ES 419—LS 6606/DI 120 23
1082+1 certificate holder if:
1083+2 (1) the certificate holder is subject to an innkeeper's tax under
1084+3 IC 6-9; and
1085+4 (2) a board, bureau, or commission established under IC 6-9 files
1086+5 a written statement with the department.
1087+6 (d) The statement filed under subsection (c) must state that:
1088+7 (1) information obtained by the board, bureau, or commission
1089+8 under IC 6-8.1-7-1 indicates that the certificate holder has not
1090+9 complied with IC 6-9; and
1091+10 (2) the board, bureau, or commission has determined that
1092+11 significant harm will result to the county from the certificate
1093+12 holder's failure to comply with IC 6-9.
1094+13 (e) The department shall revoke or suspend a certificate issued
1095+14 under section 1 of this chapter after at least five (5) days notice to the
1096+15 certificate holder if:
1097+16 (1) the certificate holder owes taxes, penalties, fines, interest, or
1098+17 costs due under IC 6-1.1 that remain unpaid at least sixty (60)
1099+18 days after the due date under IC 6-1.1; and
1100+19 (2) the treasurer of the county to which the taxes are due requests
1101+20 the department to revoke or suspend the certificate.
1102+21 (f) The department shall reinstate a certificate suspended under
1103+22 subsection (e) if the taxes and any penalties due under IC 6-1.1 are paid
1104+23 or the county treasurer requests the department to reinstate the
1105+24 certificate because an agreement for the payment of taxes and any
1106+25 penalties due under IC 6-1.1 has been reached to the satisfaction of the
1107+26 county treasurer.
1108+27 (g) The department shall revoke a certificate issued under section
1109+28 1 of this chapter after at least five (5) days notice to the certificate
1110+29 holder if the department finds in a public hearing by a preponderance
1111+30 of the evidence that the certificate holder has violated IC 35-45-5-3,
1112+31 IC 35-45-5-3.5, or IC 35-45-5-4.
1113+32 (h) If a person makes a payment for the certificate under section 1
1114+33 or 3 of this chapter with a check, credit card, debit card, or electronic
1115+34 funds transfer, and the department is unable to obtain payment of the
1116+35 check, credit card, debit card, or electronic funds transfer for its full
1117+36 face amount when the check, credit card, debit card, or electronic funds
1118+37 transfer is presented for payment through normal banking channels, the
1119+38 department shall notify the person by mail that the check, credit card,
1120+39 debit card, or electronic funds transfer was not honored and that the
1121+40 person has five (5) days after the notice is mailed to pay the fee in cash,
1122+41 by certified check, or other guaranteed payment. If the person fails to
1123+42 make the payment within the five (5) day period, the department shall
1124+ES 419—LS 6606/DI 120 24
1125+1 revoke the certificate.
1126+2 (i) If the department finds in a public hearing by a preponderance of
1127+3 the evidence that a person has a conviction for an offense under
1128+4 IC 35-48-4 and the conviction involved the sale of or the offer to sell,
1129+5 in the normal course of business, a synthetic drug (as defined in
1130+6 IC 35-31.5-2-321), a synthetic drug lookalike substance (as defined in
1131+7 IC 35-31.5-2-321.5 (before its repeal on July 1, 2019)), a controlled
1132+8 substance analog (as defined in IC 35-48-1-9.3), or a substance
1133+9 represented to be a controlled substance (as described in
1134+10 IC 35-48-4-4.6) by a retail merchant in a place of business for which
1135+11 the retail merchant has been issued a registered retail merchant
1136+12 certificate under section 1 of this chapter, the department:
1137+13 (1) shall suspend the registered retail merchant certificate for the
1138+14 place of business for one (1) year; and
1139+15 (2) may not issue another retail merchant certificate under section
1140+16 1 of this chapter for one (1) year to any person:
1141+17 (A) that:
1142+18 (i) applied for; or
1143+19 (ii) made a retail transaction under;
1144+20 the retail merchant certificate suspended under subdivision
1145+21 (1); or
1146+22 (B) that:
1147+23 (i) owned or co-owned, directly or indirectly; or
1148+24 (ii) was an officer, a director, a manager, or a partner of;
1149+25 the retail merchant that was issued the retail merchant
1150+26 certificate suspended under subdivision (1).
1151+27 (j) If the department finds in a public hearing by a preponderance of
1152+28 the evidence that a person has a judgment for a violation of
1153+29 IC 35-48-4-10.5 (before its repeal on July 1, 2019) as an infraction and
1154+30 the violation involved the sale of or the offer to sell, in the normal
1155+31 course of business, a synthetic drug or a synthetic drug lookalike
1156+32 substance by a retail merchant in a place of business for which the
1157+33 retail merchant has been issued a registered retail merchant certificate
1158+34 under section 1 of this chapter, the department:
1159+35 (1) may suspend the registered retail merchant certificate for the
1160+36 place of business for six (6) months; and
1161+37 (2) may withhold issuance of another retail merchant certificate
1162+38 under section 1 of this chapter for six (6) months to any person:
1163+39 (A) that:
1164+40 (i) applied for; or
1165+41 (ii) made a retail transaction under;
1166+42 the retail merchant certificate suspended under subdivision
1167+ES 419—LS 6606/DI 120 25
1168+1 (1); or
1169+2 (B) that:
1170+3 (i) owned or co-owned, directly or indirectly; or
1171+4 (ii) was an officer, a director, a manager, or a partner of;
1172+5 the retail merchant that was issued the retail merchant
1173+6 certificate suspended under subdivision (1).
1174+7 (k) If the department finds in a public hearing by a preponderance
1175+8 of the evidence that a person has a conviction for a violation of
1176+9 IC 35-48-4-10(d)(3) and the conviction involved an offense committed
1177+10 by a retail merchant in a place of business for which the retail merchant
1178+11 has been issued a registered retail merchant certificate under section 1
1179+12 of this chapter, the department:
1180+13 (1) shall suspend the registered retail merchant certificate for the
1181+14 place of business for one (1) year; and
1182+15 (2) may not issue another retail merchant certificate under section
1183+16 1 of this chapter for one (1) year to any person:
1184+17 (A) that:
1185+18 (i) applied for; or
1186+19 (ii) made a retail transaction under;
1187+20 the retail merchant certificate suspended under subdivision
1188+21 (1); or
1189+22 (B) that:
1190+23 (i) owned or co-owned, directly or indirectly; or
1191+24 (ii) was an officer, a director, a manager, or a partner of;
1192+25 the retail merchant that was issued the retail merchant
1193+26 certificate suspended under subdivision (1).
1194+27 SECTION 21. IC 6-3-1-3.5, AS AMENDED BY P.L.1-2023,
1195+28 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1196+29 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 3.5. When used in this
1197+30 article, the term "adjusted gross income" shall mean the following:
1198+31 (a) In the case of all individuals, "adjusted gross income" (as
1199+32 defined in Section 62 of the Internal Revenue Code), modified as
1200+33 follows:
1201+34 (1) Subtract income that is exempt from taxation under this article
1202+35 by the Constitution and statutes of the United States.
1203+36 (2) Except as provided in subsection (c), add an amount equal to
1204+37 any deduction or deductions allowed or allowable pursuant to
1205+38 Section 62 of the Internal Revenue Code for taxes based on or
1206+39 measured by income and levied at the state level by any state of
1207+40 the United States.
1208+41 (3) Subtract one thousand dollars ($1,000), or in the case of a
1209+42 joint return filed by a husband and wife, subtract for each spouse
1210+ES 419—LS 6606/DI 120 26
1211+1 one thousand dollars ($1,000).
1212+2 (4) Subtract one thousand dollars ($1,000) for:
1213+3 (A) each of the exemptions provided by Section 151(c) of the
1214+4 Internal Revenue Code (as effective January 1, 2017);
1215+5 (B) each additional amount allowable under Section 63(f) of
1216+6 the Internal Revenue Code; and
1217+7 (C) the spouse of the taxpayer if a separate return is made by
1218+8 the taxpayer and if the spouse, for the calendar year in which
1219+9 the taxable year of the taxpayer begins, has no gross income
1220+10 and is not the dependent of another taxpayer.
1221+11 (5) Subtract:
1222+12 (A) One thousand five hundred dollars ($1,500) for each of the
1223+13 exemptions allowed under Section 151(c)(1)(B) of the Internal
1224+14 Revenue Code (as effective January 1, 2004).
1225+15 (B) One thousand five hundred dollars ($1,500) for each
1226+16 exemption allowed under Section 151(c) of the Internal
1227+17 Revenue Code (as effective January 1, 2017) for an individual:
1228+18 (i) who is less than nineteen (19) years of age or is a
1229+19 full-time student who is less than twenty-four (24) years of
1230+20 age;
1231+21 (ii) for whom the taxpayer is the legal guardian; and
1232+22 (iii) for whom the taxpayer does not claim an exemption
1233+23 under clause (A).
1234+24 (C) Five hundred dollars ($500) for each additional amount
1235+25 allowable under Section 63(f)(1) of the Internal Revenue Code
1236+26 if the federal adjusted gross income of the taxpayer, or the
1237+27 taxpayer and the taxpayer's spouse in the case of a joint return,
1238+28 is less than forty thousand dollars ($40,000). In the case of a
1239+29 married individual filing a separate return, the qualifying
1240+30 income amount in this clause is equal to twenty thousand
1241+31 dollars ($20,000).
1242+32 (D) Three thousand dollars ($3,000) for each exemption
1243+33 allowed under Section 151(c) of the Internal Revenue Code (as
1244+34 effective January 1, 2017) for an individual who is:
1245+35 (i) an adopted child of the taxpayer; and
1246+36 (ii) less than nineteen (19) years of age or is a full-time
1247+37 student who is less than twenty-four (24) years of age.
1248+38 This amount is in addition to any amount subtracted under
1249+39 clause (A) or (B).
1250+40 This amount is in addition to the amount subtracted under
1251+41 subdivision (4).
1252+42 (6) Subtract any amounts included in federal adjusted gross
1253+ES 419—LS 6606/DI 120 27
1254+1 income under Section 111 of the Internal Revenue Code as a
1255+2 recovery of items previously deducted as an itemized deduction
1256+3 from adjusted gross income.
1257+4 (7) Subtract any amounts included in federal adjusted gross
1258+5 income under the Internal Revenue Code which amounts were
1259+6 received by the individual as supplemental railroad retirement
1260+7 annuities under 45 U.S.C. 231 and which are not deductible under
1261+8 subdivision (1).
1262+9 (8) Subtract an amount equal to the amount of federal Social
1263+10 Security and Railroad Retirement benefits included in a taxpayer's
1264+11 federal gross income by Section 86 of the Internal Revenue Code.
1265+12 (9) In the case of a nonresident taxpayer or a resident taxpayer
1266+13 residing in Indiana for a period of less than the taxpayer's entire
1267+14 taxable year, the total amount of the deductions allowed pursuant
1268+15 to subdivisions (3), (4), and (5) shall be reduced to an amount
1269+16 which bears the same ratio to the total as the taxpayer's income
1270+17 taxable in Indiana bears to the taxpayer's total income.
1271+18 (10) In the case of an individual who is a recipient of assistance
1272+19 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
1273+20 subtract an amount equal to that portion of the individual's
1274+21 adjusted gross income with respect to which the individual is not
1275+22 allowed under federal law to retain an amount to pay state and
1276+23 local income taxes.
1277+24 (11) In the case of an eligible individual, subtract the amount of
1278+25 a Holocaust victim's settlement payment included in the
1279+26 individual's federal adjusted gross income.
1280+27 (12) Subtract an amount equal to the portion of any premiums
1281+28 paid during the taxable year by the taxpayer for a qualified long
1282+29 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
1283+30 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
1284+31 file a joint income tax return or the taxpayer is otherwise entitled
1285+32 to a deduction under this subdivision for the taxpayer's spouse, or
1286+33 both.
1287+34 (13) Subtract an amount equal to the lesser of:
1288+35 (A) two thousand five hundred dollars ($2,500), or one
1289+36 thousand two hundred fifty dollars ($1,250) in the case of a
1290+37 married individual filing a separate return; or
1291+38 (B) the amount of property taxes that are paid during the
1292+39 taxable year in Indiana by the individual on the individual's
1293+40 principal place of residence.
1294+41 (14) Subtract an amount equal to the amount of a September 11
1295+42 terrorist attack settlement payment included in the individual's
1296+ES 419—LS 6606/DI 120 28
1297+1 federal adjusted gross income.
1298+2 (15) Add or subtract the amount necessary to make the adjusted
1299+3 gross income of any taxpayer that owns property for which bonus
1300+4 depreciation was allowed in the current taxable year or in an
1301+5 earlier taxable year equal to the amount of adjusted gross income
1302+6 that would have been computed had an election not been made
1303+7 under Section 168(k) of the Internal Revenue Code to apply bonus
1304+8 depreciation to the property in the year that it was placed in
1305+9 service.
1306+10 (16) Add an amount equal to any deduction allowed under
1307+11 Section 172 of the Internal Revenue Code (concerning net
1308+12 operating losses).
1309+13 (17) Add or subtract the amount necessary to make the adjusted
1310+14 gross income of any taxpayer that placed Section 179 property (as
1311+15 defined in Section 179 of the Internal Revenue Code) in service
1312+16 in the current taxable year or in an earlier taxable year equal to
1313+17 the amount of adjusted gross income that would have been
1314+18 computed had an election for federal income tax purposes not
1315+19 been made for the year in which the property was placed in
1316+20 service to take deductions under Section 179 of the Internal
1317+21 Revenue Code in a total amount exceeding the sum of:
1318+22 (A) twenty-five thousand dollars ($25,000) to the extent
1319+23 deductions under Section 179 of the Internal Revenue Code
1320+24 were not elected as provided in clause (B); and
1321+25 (B) for taxable years beginning after December 31, 2017, the
1322+26 deductions elected under Section 179 of the Internal Revenue
1323+27 Code on property acquired in an exchange if:
1324+28 (i) the exchange would have been eligible for
1325+29 nonrecognition of gain or loss under Section 1031 of the
1326+30 Internal Revenue Code in effect on January 1, 2017;
1327+31 (ii) the exchange is not eligible for nonrecognition of gain or
1328+32 loss under Section 1031 of the Internal Revenue Code; and
1329+33 (iii) the taxpayer made an election to take deductions under
1330+34 Section 179 of the Internal Revenue Code with regard to the
1331+35 acquired property in the year that the property was placed
1332+36 into service.
1333+37 The amount of deductions allowable for an item of property
1334+38 under this clause may not exceed the amount of adjusted gross
1335+39 income realized on the property that would have been deferred
1336+40 under the Internal Revenue Code in effect on January 1, 2017.
1337+41 (18) Subtract an amount equal to the amount of the taxpayer's
1338+42 qualified military income that was not excluded from the
1339+ES 419—LS 6606/DI 120 29
1340+1 taxpayer's gross income for federal income tax purposes under
1341+2 Section 112 of the Internal Revenue Code.
1342+3 (19) Subtract income that is:
1343+4 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1344+5 derived from patents); and
1345+6 (B) included in the individual's federal adjusted gross income
1346+7 under the Internal Revenue Code.
1347+8 (20) Add an amount equal to any income not included in gross
1348+9 income as a result of the deferral of income arising from business
1349+10 indebtedness discharged in connection with the reacquisition after
1350+11 December 31, 2008, and before January 1, 2011, of an applicable
1351+12 debt instrument, as provided in Section 108(i) of the Internal
1352+13 Revenue Code. Subtract the amount necessary from the adjusted
1353+14 gross income of any taxpayer that added an amount to adjusted
1354+15 gross income in a previous year to offset the amount included in
1355+16 federal gross income as a result of the deferral of income arising
1356+17 from business indebtedness discharged in connection with the
1357+18 reacquisition after December 31, 2008, and before January 1,
1358+19 2011, of an applicable debt instrument, as provided in Section
1359+20 108(i) of the Internal Revenue Code.
1360+21 (21) Add the amount excluded from federal gross income under
1361+22 Section 103 of the Internal Revenue Code for interest received on
1362+23 an obligation of a state other than Indiana, or a political
1363+24 subdivision of such a state, that is acquired by the taxpayer after
1364+25 December 31, 2011. For purposes of this subdivision:
1365+26 (A) if the taxpayer receives interest from a pass through
1366+27 entity, a regulated investment company, a hedge fund, or
1367+28 similar arrangement, the taxpayer will be considered to
1368+29 have acquired the obligation on the date the entity
1369+30 acquired the obligation;
1370+31 (B) if ownership of the obligation occurs by means other
1371+32 than a purchase, the date of acquisition of the obligation
1372+33 shall be the date ownership of the obligation was
1373+34 transferred, except to the extent provided in clause (A),
1374+35 and if a portion of the obligation is acquired on multiple
1375+36 dates, the date of acquisition shall be considered separately
1376+37 for each portion of the obligation; and
1377+38 (C) if ownership of the obligation occurred as the result of
1378+39 a refinancing of another obligation, the acquisition date
1379+40 shall be the date on which the obligation was refinanced.
1380+41 (22) Subtract an amount as described in Section 1341(a)(2) of the
1381+42 Internal Revenue Code to the extent, if any, that the amount was
1382+ES 419—LS 6606/DI 120 30
1383+1 previously included in the taxpayer's adjusted gross income for a
1384+2 prior taxable year.
1385+3 (23) For taxable years beginning after December 25, 2016, add an
1386+4 amount equal to the deduction for deferred foreign income that
1387+5 was claimed by the taxpayer for the taxable year under Section
1388+6 965(c) of the Internal Revenue Code.
1389+7 (24) Subtract any interest expense paid or accrued in the current
1390+8 taxable year but not deducted as a result of the limitation imposed
1391+9 under Section 163(j)(1) of the Internal Revenue Code. Add any
1392+10 interest expense paid or accrued in a previous taxable year but
1393+11 allowed as a deduction under Section 163 of the Internal Revenue
1394+12 Code in the current taxable year. For purposes of this subdivision,
1395+13 an interest expense is considered paid or accrued only in the first
1396+14 taxable year the deduction would have been allowable under
1397+15 Section 163 of the Internal Revenue Code if the limitation under
1398+16 Section 163(j)(1) of the Internal Revenue Code did not exist.
1399+17 (25) Subtract the amount that would have been excluded from
1400+18 gross income but for the enactment of Section 118(b)(2) of the
1401+19 Internal Revenue Code for taxable years ending after December
1402+20 22, 2017.
1403+21 (26) For taxable years beginning after December 31, 2019, and
1404+22 before January 1, 2021, add an amount of the deduction claimed
1405+23 under Section 62(a)(22) of the Internal Revenue Code.
1406+24 (27) For taxable years beginning after December 31, 2019, for
1407+25 payments made by an employer under an education assistance
1408+26 program after March 27, 2020:
1409+27 (A) add the amount of payments by an employer that are
1410+28 excluded from the taxpayer's federal gross income under
1411+29 Section 127(c)(1)(B) of the Internal Revenue Code; and
1412+30 (B) deduct the interest allowable under Section 221 of the
1413+31 Internal Revenue Code, if the disallowance under Section
1414+32 221(e)(1) of the Internal Revenue Code did not apply to the
1415+33 payments described in clause (A). For purposes of applying
1416+34 Section 221(b) of the Internal Revenue Code to the amount
1417+35 allowable under this clause, the amount under clause (A) shall
1418+36 not be added to adjusted gross income.
1419+37 (28) Add an amount equal to the remainder of:
1420+38 (A) the amount allowable as a deduction under Section 274(n)
1421+39 of the Internal Revenue Code; minus
1422+40 (B) the amount otherwise allowable as a deduction under
1423+41 Section 274(n) of the Internal Revenue Code, if Section
1424+42 274(n)(2)(D) of the Internal Revenue Code was not in effect
1425+ES 419—LS 6606/DI 120 31
1426+1 for amounts paid or incurred after December 31, 2020.
1427+2 (29) For taxable years beginning after December 31, 2017, and
1428+3 before January 1, 2021, add an amount equal to the excess
1429+4 business loss of the taxpayer as defined in Section 461(l)(3) of the
1430+5 Internal Revenue Code. In addition:
1431+6 (A) If a taxpayer has an excess business loss under this
1432+7 subdivision and also has modifications under subdivisions (15)
1433+8 and (17) for property placed in service during the taxable year,
1434+9 the taxpayer shall treat a portion of the taxable year
1435+10 modifications for that property as occurring in the taxable year
1436+11 the property is placed in service and a portion of the
1437+12 modifications as occurring in the immediately following
1438+13 taxable year.
1439+14 (B) The portion of the modifications under subdivisions (15)
1440+15 and (17) for property placed in service during the taxable year
1441+16 treated as occurring in the taxable year in which the property
1442+17 is placed in service equals:
1443+18 (i) the modification for the property otherwise determined
1444+19 under this section; minus
1445+20 (ii) the excess business loss disallowed under this
1446+21 subdivision;
1447+22 but not less than zero (0).
1448+23 (C) The portion of the modifications under subdivisions (15)
1449+24 and (17) for property placed in service during the taxable year
1450+25 treated as occurring in the taxable year immediately following
1451+26 the taxable year in which the property is placed in service
1452+27 equals the modification for the property otherwise determined
1453+28 under this section minus the amount in clause (B).
1454+29 (D) Any reallocation of modifications between taxable years
1455+30 under clauses (B) and (C) shall be first allocated to the
1456+31 modification under subdivision (15), then to the modification
1457+32 under subdivision (17).
1458+33 (30) Add an amount equal to the amount excluded from federal
1459+34 gross income under Section 108(f)(5) of the Internal Revenue
1460+35 Code. For purposes of this subdivision:
1461+36 (A) if an amount excluded under Section 108(f)(5) of the
1462+37 Internal Revenue Code would be excludible under Section
1463+38 108(a)(1)(B) of the Internal Revenue Code, the exclusion
1464+39 under Section 108(a)(1)(B) of the Internal Revenue Code shall
1465+40 take precedence; and
1466+41 (B) if an amount would have been excludible under Section
1467+42 108(f)(5) of the Internal Revenue Code as in effect on January
1468+ES 419—LS 6606/DI 120 32
1469+1 1, 2020, the amount is not required to be added back under this
1470+2 subdivision.
1471+3 (31) For taxable years ending after March 12, 2020, subtract an
1472+4 amount equal to the deduction disallowed pursuant to:
1473+5 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1474+6 as modified by Sections 206 and 207 of the Taxpayer Certainty
1475+7 and Disaster Relief Tax Act (Division EE of Public Law
1476+8 116-260); and
1477+9 (B) Section 3134(e) of the Internal Revenue Code.
1478+10 (32) Subtract the amount of an annual grant amount distributed to
1479+11 a taxpayer's Indiana education scholarship account under
1480+12 IC 20-51.4-4-2 that is used for a qualified expense (as defined in
1481+13 IC 20-51.4-2-9) or to an Indiana enrichment scholarship account
1482+14 under IC 20-52 that is used for qualified expenses (as defined in
1483+15 IC 20-52-2-6), to the extent the distribution used for the qualified
1484+16 expense is included in the taxpayer's federal adjusted gross
1485+17 income under the Internal Revenue Code.
1486+18 (33) For taxable years beginning after December 31, 2019, and
1487+19 before January 1, 2021, add an amount equal to the amount of
1488+20 unemployment compensation excluded from federal gross income
1489+21 under Section 85(c) of the Internal Revenue Code.
1490+22 (34) For taxable years beginning after December 31, 2022,
1491+23 subtract an amount equal to the deduction disallowed under
1492+24 Section 280C(h) of the Internal Revenue Code.
1493+25 (35) For taxable years beginning after December 31, 2021, add
1494+26 or subtract amounts related to specified research or
1495+27 experimental procedures as required under IC 6-3-2-29.
1496+28 (35) (36) Subtract any other amounts the taxpayer is entitled to
1497+29 deduct under IC 6-3-2.
1498+30 (b) In the case of corporations, the same as "taxable income" (as
1499+31 defined in Section 63 of the Internal Revenue Code) adjusted as
1500+32 follows:
1501+33 (1) Subtract income that is exempt from taxation under this article
1502+34 by the Constitution and statutes of the United States.
1503+35 (2) Add an amount equal to any deduction or deductions allowed
1504+36 or allowable pursuant to Section 170 of the Internal Revenue
1505+37 Code (concerning charitable contributions).
1506+38 (3) Except as provided in subsection (c), add an amount equal to
1507+39 any deduction or deductions allowed or allowable pursuant to
1508+40 Section 63 of the Internal Revenue Code for taxes based on or
1509+41 measured by income and levied at the state level by any state of
1510+42 the United States.
1511+ES 419—LS 6606/DI 120 33
1512+1 (4) Subtract an amount equal to the amount included in the
1513+2 corporation's taxable income under Section 78 of the Internal
1514+3 Revenue Code (concerning foreign tax credits).
1515+4 (5) Add or subtract the amount necessary to make the adjusted
1516+5 gross income of any taxpayer that owns property for which bonus
1517+6 depreciation was allowed in the current taxable year or in an
1518+7 earlier taxable year equal to the amount of adjusted gross income
1519+8 that would have been computed had an election not been made
1520+9 under Section 168(k) of the Internal Revenue Code to apply bonus
1521+10 depreciation to the property in the year that it was placed in
1522+11 service.
1523+12 (6) Add an amount equal to any deduction allowed under Section
1524+13 172 of the Internal Revenue Code (concerning net operating
1525+14 losses).
1526+15 (7) Add or subtract the amount necessary to make the adjusted
1527+16 gross income of any taxpayer that placed Section 179 property (as
1528+17 defined in Section 179 of the Internal Revenue Code) in service
1529+18 in the current taxable year or in an earlier taxable year equal to
1530+19 the amount of adjusted gross income that would have been
1531+20 computed had an election for federal income tax purposes not
1532+21 been made for the year in which the property was placed in
1533+22 service to take deductions under Section 179 of the Internal
1534+23 Revenue Code in a total amount exceeding the sum of:
1535+24 (A) twenty-five thousand dollars ($25,000) to the extent
1536+25 deductions under Section 179 of the Internal Revenue Code
1537+26 were not elected as provided in clause (B); and
1538+27 (B) for taxable years beginning after December 31, 2017, the
1539+28 deductions elected under Section 179 of the Internal Revenue
1540+29 Code on property acquired in an exchange if:
1541+30 (i) the exchange would have been eligible for
1542+31 nonrecognition of gain or loss under Section 1031 of the
1543+32 Internal Revenue Code in effect on January 1, 2017;
1544+33 (ii) the exchange is not eligible for nonrecognition of gain or
1545+34 loss under Section 1031 of the Internal Revenue Code; and
1546+35 (iii) the taxpayer made an election to take deductions under
1547+36 Section 179 of the Internal Revenue Code with regard to the
1548+37 acquired property in the year that the property was placed
1549+38 into service.
1550+39 The amount of deductions allowable for an item of property
1551+40 under this clause may not exceed the amount of adjusted gross
1552+41 income realized on the property that would have been deferred
1553+42 under the Internal Revenue Code in effect on January 1, 2017.
1554+ES 419—LS 6606/DI 120 34
1555+1 (8) Add to the extent required by IC 6-3-2-20:
1556+2 (A) the amount of intangible expenses (as defined in
1557+3 IC 6-3-2-20) for the taxable year that reduced the corporation's
1558+4 taxable income (as defined in Section 63 of the Internal
1559+5 Revenue Code) for federal income tax purposes; and
1560+6 (B) any directly related interest expenses (as defined in
1561+7 IC 6-3-2-20) that reduced the corporation's adjusted gross
1562+8 income (determined without regard to this subdivision). For
1563+9 purposes of this clause, any directly related interest expense
1564+10 that constitutes business interest within the meaning of Section
1565+11 163(j) of the Internal Revenue Code shall be considered to
1566+12 have reduced the taxpayer's federal taxable income only in the
1567+13 first taxable year in which the deduction otherwise would have
1568+14 been allowable under Section 163 of the Internal Revenue
1569+15 Code if the limitation under Section 163(j)(1) of the Internal
1570+16 Revenue Code did not exist.
1571+17 (9) Add an amount equal to any deduction for dividends paid (as
1572+18 defined in Section 561 of the Internal Revenue Code) to
1573+19 shareholders of a captive real estate investment trust (as defined
1574+20 in section 34.5 of this chapter).
1575+21 (10) Subtract income that is:
1576+22 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1577+23 derived from patents); and
1578+24 (B) included in the corporation's taxable income under the
1579+25 Internal Revenue Code.
1580+26 (11) Add an amount equal to any income not included in gross
1581+27 income as a result of the deferral of income arising from business
1582+28 indebtedness discharged in connection with the reacquisition after
1583+29 December 31, 2008, and before January 1, 2011, of an applicable
1584+30 debt instrument, as provided in Section 108(i) of the Internal
1585+31 Revenue Code. Subtract from the adjusted gross income of any
1586+32 taxpayer that added an amount to adjusted gross income in a
1587+33 previous year the amount necessary to offset the amount included
1588+34 in federal gross income as a result of the deferral of income
1589+35 arising from business indebtedness discharged in connection with
1590+36 the reacquisition after December 31, 2008, and before January 1,
1591+37 2011, of an applicable debt instrument, as provided in Section
1592+38 108(i) of the Internal Revenue Code.
1593+39 (12) Add the amount excluded from federal gross income under
1594+40 Section 103 of the Internal Revenue Code for interest received on
1595+41 an obligation of a state other than Indiana, or a political
1596+42 subdivision of such a state, that is acquired by the taxpayer after
1597+ES 419—LS 6606/DI 120 35
1598+1 December 31, 2011. For purposes of this subdivision:
1599+2 (A) if the taxpayer receives interest from a pass through
1600+3 entity, a regulated investment company, a hedge fund, or
1601+4 similar arrangement, the taxpayer will be considered to
1602+5 have acquired the obligation on the date the entity
1603+6 acquired the obligation;
1604+7 (B) if ownership of the obligation occurs by means other
1605+8 than a purchase, the date of acquisition of the obligation
1606+9 shall be the date ownership of the obligation was
1607+10 transferred, except to the extent provided in clause (A),
1608+11 and if a portion of the obligation is acquired on multiple
1609+12 dates, the date of acquisition shall be considered separately
1610+13 for each portion of the obligation; and
1611+14 (C) if ownership of the obligation occurred as the result of
1612+15 a refinancing of another obligation, the acquisition date
1613+16 shall be the date on which the obligation was refinanced.
1614+17 (13) For taxable years beginning after December 25, 2016:
1615+18 (A) for a corporation other than a real estate investment trust,
1616+19 add:
1617+20 (i) an amount equal to the amount reported by the taxpayer
1618+21 on IRC 965 Transition Tax Statement, line 1; or
1619+22 (ii) if the taxpayer deducted an amount under Section 965(c)
1620+23 of the Internal Revenue Code in determining the taxpayer's
1621+24 taxable income for purposes of the federal income tax, the
1622+25 amount deducted under Section 965(c) of the Internal
1623+26 Revenue Code; and
1624+27 (B) for a real estate investment trust, add an amount equal to
1625+28 the deduction for deferred foreign income that was claimed by
1626+29 the taxpayer for the taxable year under Section 965(c) of the
1627+30 Internal Revenue Code, but only to the extent that the taxpayer
1628+31 included income pursuant to Section 965 of the Internal
1629+32 Revenue Code in its taxable income for federal income tax
1630+33 purposes or is required to add back dividends paid under
1631+34 subdivision (9).
1632+35 (14) Add an amount equal to the deduction that was claimed by
1633+36 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1634+37 Internal Revenue Code (attributable to global intangible
1635+38 low-taxed income). The taxpayer shall separately specify the
1636+39 amount of the reduction under Section 250(a)(1)(B)(i) of the
1637+40 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1638+41 Internal Revenue Code.
1639+42 (15) Subtract any interest expense paid or accrued in the current
1640+ES 419—LS 6606/DI 120 36
1641+1 taxable year but not deducted as a result of the limitation imposed
1642+2 under Section 163(j)(1) of the Internal Revenue Code. Add any
1643+3 interest expense paid or accrued in a previous taxable year but
1644+4 allowed as a deduction under Section 163 of the Internal Revenue
1645+5 Code in the current taxable year. For purposes of this subdivision,
1646+6 an interest expense is considered paid or accrued only in the first
1647+7 taxable year the deduction would have been allowable under
1648+8 Section 163 of the Internal Revenue Code if the limitation under
1649+9 Section 163(j)(1) of the Internal Revenue Code did not exist.
1650+10 (16) Subtract the amount that would have been excluded from
1651+11 gross income but for the enactment of Section 118(b)(2) of the
1652+12 Internal Revenue Code for taxable years ending after December
1653+13 22, 2017.
1654+14 (17) Add an amount equal to the remainder of:
1655+15 (A) the amount allowable as a deduction under Section 274(n)
1656+16 of the Internal Revenue Code; minus
1657+17 (B) the amount otherwise allowable as a deduction under
1658+18 Section 274(n) of the Internal Revenue Code, if Section
1659+19 274(n)(2)(D) of the Internal Revenue Code was not in effect
1660+20 for amounts paid or incurred after December 31, 2020.
1661+21 (18) For taxable years ending after March 12, 2020, subtract an
1662+22 amount equal to the deduction disallowed pursuant to:
1663+23 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1664+24 as modified by Sections 206 and 207 of the Taxpayer Certainty
1665+25 and Disaster Relief Tax Act (Division EE of Public Law
1666+26 116-260); and
1667+27 (B) Section 3134(e) of the Internal Revenue Code.
1668+28 (19) For taxable years beginning after December 31, 2022,
1669+29 subtract an amount equal to the deduction disallowed under
1670+30 Section 280C(h) of the Internal Revenue Code.
1671+31 (20) For taxable years beginning after December 31, 2021,
1672+32 subtract the amount of any:
1673+33 (A) federal, state, or local grant received by the taxpayer;
1674+34 and
1675+35 (B) discharged federal, state, or local indebtedness
1676+36 incurred by the taxpayer;
1677+37 for purposes of providing or expanding access to broadband
1678+38 service in this state.
1679+39 (21) For taxable years beginning after December 31, 2021, add
1680+40 or subtract amounts related to specified research or
1681+41 experimental procedures as required under IC 6-3-2-29.
1682+42 (20) (22) Add or subtract any other amounts the taxpayer is:
1683+ES 419—LS 6606/DI 120 37
1684+1 (A) required to add or subtract; or
1685+2 (B) entitled to deduct;
1686+3 under IC 6-3-2.
1687+4 (c) The following apply to taxable years beginning after December
1688+5 31, 2018, for purposes of the add back of any deduction allowed on the
1689+6 taxpayer's federal income tax return for wagering taxes, as provided in
1690+7 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
1691+8 the taxpayer is a corporation:
1692+9 (1) For taxable years beginning after December 31, 2018, and
1693+10 before January 1, 2020, a taxpayer is required to add back under
1694+11 this section eighty-seven and five-tenths percent (87.5%) of any
1695+12 deduction allowed on the taxpayer's federal income tax return for
1696+13 wagering taxes.
1697+14 (2) For taxable years beginning after December 31, 2019, and
1698+15 before January 1, 2021, a taxpayer is required to add back under
1699+16 this section seventy-five percent (75%) of any deduction allowed
1700+17 on the taxpayer's federal income tax return for wagering taxes.
1701+18 (3) For taxable years beginning after December 31, 2020, and
1702+19 before January 1, 2022, a taxpayer is required to add back under
1703+20 this section sixty-two and five-tenths percent (62.5%) of any
1704+21 deduction allowed on the taxpayer's federal income tax return for
1705+22 wagering taxes.
1706+23 (4) For taxable years beginning after December 31, 2021, and
1707+24 before January 1, 2023, a taxpayer is required to add back under
1708+25 this section fifty percent (50%) of any deduction allowed on the
1709+26 taxpayer's federal income tax return for wagering taxes.
1710+27 (5) For taxable years beginning after December 31, 2022, and
1711+28 before January 1, 2024, a taxpayer is required to add back under
1712+29 this section thirty-seven and five-tenths percent (37.5%) of any
1713+30 deduction allowed on the taxpayer's federal income tax return for
1714+31 wagering taxes.
1715+32 (6) For taxable years beginning after December 31, 2023, and
1716+33 before January 1, 2025, a taxpayer is required to add back under
1717+34 this section twenty-five percent (25%) of any deduction allowed
1718+35 on the taxpayer's federal income tax return for wagering taxes.
1719+36 (7) For taxable years beginning after December 31, 2024, and
1720+37 before January 1, 2026, a taxpayer is required to add back under
1721+38 this section twelve and five-tenths percent (12.5%) of any
1722+39 deduction allowed on the taxpayer's federal income tax return for
1723+40 wagering taxes.
1724+41 (8) For taxable years beginning after December 31, 2025, a
1725+42 taxpayer is not required to add back under this section any amount
1726+ES 419—LS 6606/DI 120 38
1727+1 of a deduction allowed on the taxpayer's federal income tax return
1728+2 for wagering taxes.
1729+3 (d) In the case of life insurance companies (as defined in Section
1730+4 816(a) of the Internal Revenue Code) that are organized under Indiana
1731+5 law, the same as "life insurance company taxable income" (as defined
1732+6 in Section 801 of the Internal Revenue Code), adjusted as follows:
1733+7 (1) Subtract income that is exempt from taxation under this article
1734+8 by the Constitution and statutes of the United States.
1735+9 (2) Add an amount equal to any deduction allowed or allowable
1736+10 under Section 170 of the Internal Revenue Code (concerning
1737+11 charitable contributions).
1738+12 (3) Add an amount equal to a deduction allowed or allowable
1739+13 under Section 805 or Section 832(c) of the Internal Revenue Code
1740+14 for taxes based on or measured by income and levied at the state
1741+15 level by any state.
1742+16 (4) Subtract an amount equal to the amount included in the
1743+17 company's taxable income under Section 78 of the Internal
1744+18 Revenue Code (concerning foreign tax credits).
1745+19 (5) Add or subtract the amount necessary to make the adjusted
1746+20 gross income of any taxpayer that owns property for which bonus
1747+21 depreciation was allowed in the current taxable year or in an
1748+22 earlier taxable year equal to the amount of adjusted gross income
1749+23 that would have been computed had an election not been made
1750+24 under Section 168(k) of the Internal Revenue Code to apply bonus
1751+25 depreciation to the property in the year that it was placed in
1752+26 service.
1753+27 (6) Add an amount equal to any deduction allowed under Section
1754+28 172 of the Internal Revenue Code (concerning net operating
1755+29 losses).
1756+30 (7) Add or subtract the amount necessary to make the adjusted
1757+31 gross income of any taxpayer that placed Section 179 property (as
1758+32 defined in Section 179 of the Internal Revenue Code) in service
1759+33 in the current taxable year or in an earlier taxable year equal to
1760+34 the amount of adjusted gross income that would have been
1761+35 computed had an election for federal income tax purposes not
1762+36 been made for the year in which the property was placed in
1763+37 service to take deductions under Section 179 of the Internal
1764+38 Revenue Code in a total amount exceeding the sum of:
1765+39 (A) twenty-five thousand dollars ($25,000) to the extent
1766+40 deductions under Section 179 of the Internal Revenue Code
1767+41 were not elected as provided in clause (B); and
1768+42 (B) for taxable years beginning after December 31, 2017, the
1769+ES 419—LS 6606/DI 120 39
1770+1 deductions elected under Section 179 of the Internal Revenue
1771+2 Code on property acquired in an exchange if:
1772+3 (i) the exchange would have been eligible for
1773+4 nonrecognition of gain or loss under Section 1031 of the
1774+5 Internal Revenue Code in effect on January 1, 2017;
1775+6 (ii) the exchange is not eligible for nonrecognition of gain or
1776+7 loss under Section 1031 of the Internal Revenue Code; and
1777+8 (iii) the taxpayer made an election to take deductions under
1778+9 Section 179 of the Internal Revenue Code with regard to the
1779+10 acquired property in the year that the property was placed
1780+11 into service.
1781+12 The amount of deductions allowable for an item of property
1782+13 under this clause may not exceed the amount of adjusted gross
1783+14 income realized on the property that would have been deferred
1784+15 under the Internal Revenue Code in effect on January 1, 2017.
1785+16 (8) Subtract income that is:
1786+17 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1787+18 derived from patents); and
1788+19 (B) included in the insurance company's taxable income under
1789+20 the Internal Revenue Code.
1790+21 (9) Add an amount equal to any income not included in gross
1791+22 income as a result of the deferral of income arising from business
1792+23 indebtedness discharged in connection with the reacquisition after
1793+24 December 31, 2008, and before January 1, 2011, of an applicable
1794+25 debt instrument, as provided in Section 108(i) of the Internal
1795+26 Revenue Code. Subtract from the adjusted gross income of any
1796+27 taxpayer that added an amount to adjusted gross income in a
1797+28 previous year the amount necessary to offset the amount included
1798+29 in federal gross income as a result of the deferral of income
1799+30 arising from business indebtedness discharged in connection with
1800+31 the reacquisition after December 31, 2008, and before January 1,
1801+32 2011, of an applicable debt instrument, as provided in Section
1802+33 108(i) of the Internal Revenue Code.
1803+34 (10) Add an amount equal to any exempt insurance income under
1804+35 Section 953(e) of the Internal Revenue Code that is active
1805+36 financing income under Subpart F of Subtitle A, Chapter 1,
1806+37 Subchapter N of the Internal Revenue Code.
1807+38 (11) Add the amount excluded from federal gross income under
1808+39 Section 103 of the Internal Revenue Code for interest received on
1809+40 an obligation of a state other than Indiana, or a political
1810+41 subdivision of such a state, that is acquired by the taxpayer after
1811+42 December 31, 2011. For purposes of this subdivision:
1812+ES 419—LS 6606/DI 120 40
1813+1 (A) if the taxpayer receives interest from a pass through
1814+2 entity, a regulated investment company, a hedge fund, or
1815+3 similar arrangement, the taxpayer will be considered to
1816+4 have acquired the obligation on the date the entity
1817+5 acquired the obligation;
1818+6 (B) if ownership of the obligation occurs by means other
1819+7 than a purchase, the date of acquisition of the obligation
1820+8 shall be the date ownership of the obligation was
1821+9 transferred, except to the extent provided in clause (A),
1822+10 and if a portion of the obligation is acquired on multiple
1823+11 dates, the date of acquisition shall be considered separately
1824+12 for each portion of the obligation; and
1825+13 (C) if ownership of the obligation occurred as the result of
1826+14 a refinancing of another obligation, the acquisition date
1827+15 shall be the date on which the obligation was refinanced.
1828+16 (12) For taxable years beginning after December 25, 2016, add:
1829+17 (A) an amount equal to the amount reported by the taxpayer on
1830+18 IRC 965 Transition Tax Statement, line 1; or
1831+19 (B) if the taxpayer deducted an amount under Section 965(c)
1832+20 of the Internal Revenue Code in determining the taxpayer's
1833+21 taxable income for purposes of the federal income tax, the
1834+22 amount deducted under Section 965(c) of the Internal Revenue
1835+23 Code.
1836+24 (13) Add an amount equal to the deduction that was claimed by
1837+25 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1838+26 Internal Revenue Code (attributable to global intangible
1839+27 low-taxed income). The taxpayer shall separately specify the
1840+28 amount of the reduction under Section 250(a)(1)(B)(i) of the
1841+29 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1842+30 Internal Revenue Code.
1843+31 (14) Subtract any interest expense paid or accrued in the current
1844+32 taxable year but not deducted as a result of the limitation imposed
1845+33 under Section 163(j)(1) of the Internal Revenue Code. Add any
1846+34 interest expense paid or accrued in a previous taxable year but
1847+35 allowed as a deduction under Section 163 of the Internal Revenue
1848+36 Code in the current taxable year. For purposes of this subdivision,
1849+37 an interest expense is considered paid or accrued only in the first
1850+38 taxable year the deduction would have been allowable under
1851+39 Section 163 of the Internal Revenue Code if the limitation under
1852+40 Section 163(j)(1) of the Internal Revenue Code did not exist.
1853+41 (15) Subtract the amount that would have been excluded from
1854+42 gross income but for the enactment of Section 118(b)(2) of the
1855+ES 419—LS 6606/DI 120 41
1856+1 Internal Revenue Code for taxable years ending after December
1857+2 22, 2017.
1858+3 (16) Add an amount equal to the remainder of:
1859+4 (A) the amount allowable as a deduction under Section 274(n)
1860+5 of the Internal Revenue Code; minus
1861+6 (B) the amount otherwise allowable as a deduction under
1862+7 Section 274(n) of the Internal Revenue Code, if Section
1863+8 274(n)(2)(D) of the Internal Revenue Code was not in effect
1864+9 for amounts paid or incurred after December 31, 2020.
1865+10 (17) For taxable years ending after March 12, 2020, subtract an
1866+11 amount equal to the deduction disallowed pursuant to:
1867+12 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1868+13 as modified by Sections 206 and 207 of the Taxpayer Certainty
1869+14 and Disaster Relief Tax Act (Division EE of Public Law
1870+15 116-260); and
1871+16 (B) Section 3134(e) of the Internal Revenue Code.
1872+17 (18) For taxable years beginning after December 31, 2022,
1873+18 subtract an amount equal to the deduction disallowed under
1874+19 Section 280C(h) of the Internal Revenue Code.
1875+20 (19) For taxable years beginning after December 31, 2021, add
1876+21 or subtract amounts related to specified research or
1877+22 experimental procedures as required under IC 6-3-2-29.
1878+23 (19) (20) Add or subtract any other amounts the taxpayer is:
1879+24 (A) required to add or subtract; or
1880+25 (B) entitled to deduct;
1881+26 under IC 6-3-2.
1882+27 (e) In the case of insurance companies subject to tax under Section
1883+28 831 of the Internal Revenue Code and organized under Indiana law, the
1884+29 same as "taxable income" (as defined in Section 832 of the Internal
1885+30 Revenue Code), adjusted as follows:
1886+31 (1) Subtract income that is exempt from taxation under this article
1887+32 by the Constitution and statutes of the United States.
1888+33 (2) Add an amount equal to any deduction allowed or allowable
1889+34 under Section 170 of the Internal Revenue Code (concerning
1890+35 charitable contributions).
1891+36 (3) Add an amount equal to a deduction allowed or allowable
1892+37 under Section 805 or Section 832(c) of the Internal Revenue Code
1893+38 for taxes based on or measured by income and levied at the state
1894+39 level by any state.
1895+40 (4) Subtract an amount equal to the amount included in the
1896+41 company's taxable income under Section 78 of the Internal
1897+42 Revenue Code (concerning foreign tax credits).
1898+ES 419—LS 6606/DI 120 42
1899+1 (5) Add or subtract the amount necessary to make the adjusted
1900+2 gross income of any taxpayer that owns property for which bonus
1901+3 depreciation was allowed in the current taxable year or in an
1902+4 earlier taxable year equal to the amount of adjusted gross income
1903+5 that would have been computed had an election not been made
1904+6 under Section 168(k) of the Internal Revenue Code to apply bonus
1905+7 depreciation to the property in the year that it was placed in
1906+8 service.
1907+9 (6) Add an amount equal to any deduction allowed under Section
1908+10 172 of the Internal Revenue Code (concerning net operating
1909+11 losses).
1910+12 (7) Add or subtract the amount necessary to make the adjusted
1911+13 gross income of any taxpayer that placed Section 179 property (as
1912+14 defined in Section 179 of the Internal Revenue Code) in service
1913+15 in the current taxable year or in an earlier taxable year equal to
1914+16 the amount of adjusted gross income that would have been
1915+17 computed had an election for federal income tax purposes not
1916+18 been made for the year in which the property was placed in
1917+19 service to take deductions under Section 179 of the Internal
1918+20 Revenue Code in a total amount exceeding the sum of:
1919+21 (A) twenty-five thousand dollars ($25,000) to the extent
1920+22 deductions under Section 179 of the Internal Revenue Code
1921+23 were not elected as provided in clause (B); and
1922+24 (B) for taxable years beginning after December 31, 2017, the
1923+25 deductions elected under Section 179 of the Internal Revenue
1924+26 Code on property acquired in an exchange if:
1925+27 (i) the exchange would have been eligible for
1926+28 nonrecognition of gain or loss under Section 1031 of the
1927+29 Internal Revenue Code in effect on January 1, 2017;
1928+30 (ii) the exchange is not eligible for nonrecognition of gain or
1929+31 loss under Section 1031 of the Internal Revenue Code; and
1930+32 (iii) the taxpayer made an election to take deductions under
1931+33 Section 179 of the Internal Revenue Code with regard to the
1932+34 acquired property in the year that the property was placed
1933+35 into service.
1934+36 The amount of deductions allowable for an item of property
1935+37 under this clause may not exceed the amount of adjusted gross
1936+38 income realized on the property that would have been deferred
1937+39 under the Internal Revenue Code in effect on January 1, 2017.
1938+40 (8) Subtract income that is:
1939+41 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1940+42 derived from patents); and
1941+ES 419—LS 6606/DI 120 43
1942+1 (B) included in the insurance company's taxable income under
1943+2 the Internal Revenue Code.
1944+3 (9) Add an amount equal to any income not included in gross
1945+4 income as a result of the deferral of income arising from business
1946+5 indebtedness discharged in connection with the reacquisition after
1947+6 December 31, 2008, and before January 1, 2011, of an applicable
1948+7 debt instrument, as provided in Section 108(i) of the Internal
1949+8 Revenue Code. Subtract from the adjusted gross income of any
1950+9 taxpayer that added an amount to adjusted gross income in a
1951+10 previous year the amount necessary to offset the amount included
1952+11 in federal gross income as a result of the deferral of income
1953+12 arising from business indebtedness discharged in connection with
1954+13 the reacquisition after December 31, 2008, and before January 1,
1955+14 2011, of an applicable debt instrument, as provided in Section
1956+15 108(i) of the Internal Revenue Code.
1957+16 (10) Add an amount equal to any exempt insurance income under
1958+17 Section 953(e) of the Internal Revenue Code that is active
1959+18 financing income under Subpart F of Subtitle A, Chapter 1,
1960+19 Subchapter N of the Internal Revenue Code.
1961+20 (11) Add the amount excluded from federal gross income under
1962+21 Section 103 of the Internal Revenue Code for interest received on
1963+22 an obligation of a state other than Indiana, or a political
1964+23 subdivision of such a state, that is acquired by the taxpayer after
1965+24 December 31, 2011. For purposes of this subdivision:
1966+25 (A) if the taxpayer receives interest from a pass through
1967+26 entity, a regulated investment company, a hedge fund, or
1968+27 similar arrangement, the taxpayer will be considered to
1969+28 have acquired the obligation on the date the entity
1970+29 acquired the obligation;
1971+30 (B) if ownership of the obligation occurs by means other
1972+31 than a purchase, the date of acquisition of the obligation
1973+32 shall be the date ownership of the obligation was
1974+33 transferred, except to the extent provided in clause (A),
1975+34 and if a portion of the obligation is acquired on multiple
1976+35 dates, the date of acquisition shall be considered separately
1977+36 for each portion of the obligation; and
1978+37 (C) if ownership of the obligation occurred as the result of
1979+38 a refinancing of another obligation, the acquisition date
1980+39 shall be the date on which the obligation was refinanced.
1981+40 (12) For taxable years beginning after December 25, 2016, add:
1982+41 (A) an amount equal to the amount reported by the taxpayer on
1983+42 IRC 965 Transition Tax Statement, line 1; or
1984+ES 419—LS 6606/DI 120 44
1985+1 (B) if the taxpayer deducted an amount under Section 965(c)
1986+2 of the Internal Revenue Code in determining the taxpayer's
1987+3 taxable income for purposes of the federal income tax, the
1988+4 amount deducted under Section 965(c) of the Internal Revenue
1989+5 Code.
1990+6 (13) Add an amount equal to the deduction that was claimed by
1991+7 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1992+8 Internal Revenue Code (attributable to global intangible
1993+9 low-taxed income). The taxpayer shall separately specify the
1994+10 amount of the reduction under Section 250(a)(1)(B)(i) of the
1995+11 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1996+12 Internal Revenue Code.
1997+13 (14) Subtract any interest expense paid or accrued in the current
1998+14 taxable year but not deducted as a result of the limitation imposed
1999+15 under Section 163(j)(1) of the Internal Revenue Code. Add any
2000+16 interest expense paid or accrued in a previous taxable year but
2001+17 allowed as a deduction under Section 163 of the Internal Revenue
2002+18 Code in the current taxable year. For purposes of this subdivision,
2003+19 an interest expense is considered paid or accrued only in the first
2004+20 taxable year the deduction would have been allowable under
2005+21 Section 163 of the Internal Revenue Code if the limitation under
2006+22 Section 163(j)(1) of the Internal Revenue Code did not exist.
2007+23 (15) Subtract the amount that would have been excluded from
2008+24 gross income but for the enactment of Section 118(b)(2) of the
2009+25 Internal Revenue Code for taxable years ending after December
2010+26 22, 2017.
2011+27 (16) Add an amount equal to the remainder of:
2012+28 (A) the amount allowable as a deduction under Section 274(n)
2013+29 of the Internal Revenue Code; minus
2014+30 (B) the amount otherwise allowable as a deduction under
2015+31 Section 274(n) of the Internal Revenue Code, if Section
2016+32 274(n)(2)(D) of the Internal Revenue Code was not in effect
2017+33 for amounts paid or incurred after December 31, 2020.
2018+34 (17) For taxable years ending after March 12, 2020, subtract an
2019+35 amount equal to the deduction disallowed pursuant to:
2020+36 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
2021+37 as modified by Sections 206 and 207 of the Taxpayer Certainty
2022+38 and Disaster Relief Tax Act (Division EE of Public Law
2023+39 116-260); and
2024+40 (B) Section 3134(e) of the Internal Revenue Code.
2025+41 (18) For taxable years beginning after December 31, 2022,
2026+42 subtract an amount equal to the deduction disallowed under
2027+ES 419—LS 6606/DI 120 45
2028+1 Section 280C(h) of the Internal Revenue Code.
2029+2 (19) For taxable years beginning after December 31, 2021, add
2030+3 or subtract amounts related to specified research or
2031+4 experimental procedures as required under IC 6-3-2-29.
2032+5 (19) (20) Add or subtract any other amounts the taxpayer is:
2033+6 (A) required to add or subtract; or
2034+7 (B) entitled to deduct;
2035+8 under IC 6-3-2.
2036+9 (f) In the case of trusts and estates, "taxable income" (as defined for
2037+10 trusts and estates in Section 641(b) of the Internal Revenue Code)
2038+11 adjusted as follows:
2039+12 (1) Subtract income that is exempt from taxation under this article
2040+13 by the Constitution and statutes of the United States.
2041+14 (2) Subtract an amount equal to the amount of a September 11
2042+15 terrorist attack settlement payment included in the federal
2043+16 adjusted gross income of the estate of a victim of the September
2044+17 11 terrorist attack or a trust to the extent the trust benefits a victim
2045+18 of the September 11 terrorist attack.
2046+19 (3) Add or subtract the amount necessary to make the adjusted
2047+20 gross income of any taxpayer that owns property for which bonus
2048+21 depreciation was allowed in the current taxable year or in an
2049+22 earlier taxable year equal to the amount of adjusted gross income
2050+23 that would have been computed had an election not been made
2051+24 under Section 168(k) of the Internal Revenue Code to apply bonus
2052+25 depreciation to the property in the year that it was placed in
2053+26 service.
2054+27 (4) Add an amount equal to any deduction allowed under Section
2055+28 172 of the Internal Revenue Code (concerning net operating
2056+29 losses).
2057+30 (5) Add or subtract the amount necessary to make the adjusted
2058+31 gross income of any taxpayer that placed Section 179 property (as
2059+32 defined in Section 179 of the Internal Revenue Code) in service
2060+33 in the current taxable year or in an earlier taxable year equal to
2061+34 the amount of adjusted gross income that would have been
2062+35 computed had an election for federal income tax purposes not
2063+36 been made for the year in which the property was placed in
2064+37 service to take deductions under Section 179 of the Internal
2065+38 Revenue Code in a total amount exceeding the sum of:
2066+39 (A) twenty-five thousand dollars ($25,000) to the extent
2067+40 deductions under Section 179 of the Internal Revenue Code
2068+41 were not elected as provided in clause (B); and
2069+42 (B) for taxable years beginning after December 31, 2017, the
2070+ES 419—LS 6606/DI 120 46
2071+1 deductions elected under Section 179 of the Internal Revenue
2072+2 Code on property acquired in an exchange if:
2073+3 (i) the exchange would have been eligible for
2074+4 nonrecognition of gain or loss under Section 1031 of the
2075+5 Internal Revenue Code in effect on January 1, 2017;
2076+6 (ii) the exchange is not eligible for nonrecognition of gain or
2077+7 loss under Section 1031 of the Internal Revenue Code; and
2078+8 (iii) the taxpayer made an election to take deductions under
2079+9 Section 179 of the Internal Revenue Code with regard to the
2080+10 acquired property in the year that the property was placed
2081+11 into service.
2082+12 The amount of deductions allowable for an item of property
2083+13 under this clause may not exceed the amount of adjusted gross
2084+14 income realized on the property that would have been deferred
2085+15 under the Internal Revenue Code in effect on January 1, 2017.
2086+16 (6) Subtract income that is:
2087+17 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
2088+18 derived from patents); and
2089+19 (B) included in the taxpayer's taxable income under the
2090+20 Internal Revenue Code.
2091+21 (7) Add an amount equal to any income not included in gross
2092+22 income as a result of the deferral of income arising from business
2093+23 indebtedness discharged in connection with the reacquisition after
2094+24 December 31, 2008, and before January 1, 2011, of an applicable
2095+25 debt instrument, as provided in Section 108(i) of the Internal
2096+26 Revenue Code. Subtract from the adjusted gross income of any
2097+27 taxpayer that added an amount to adjusted gross income in a
2098+28 previous year the amount necessary to offset the amount included
2099+29 in federal gross income as a result of the deferral of income
2100+30 arising from business indebtedness discharged in connection with
2101+31 the reacquisition after December 31, 2008, and before January 1,
2102+32 2011, of an applicable debt instrument, as provided in Section
2103+33 108(i) of the Internal Revenue Code.
2104+34 (8) Add the amount excluded from federal gross income under
2105+35 Section 103 of the Internal Revenue Code for interest received on
2106+36 an obligation of a state other than Indiana, or a political
2107+37 subdivision of such a state, that is acquired by the taxpayer after
2108+38 December 31, 2011. For purposes of this subdivision:
2109+39 (A) if the taxpayer receives interest from a pass through
2110+40 entity, a regulated investment company, a hedge fund, or
2111+41 similar arrangement, the taxpayer will be considered to
2112+42 have acquired the obligation on the date the entity
2113+ES 419—LS 6606/DI 120 47
2114+1 acquired the obligation;
2115+2 (B) if ownership of the obligation occurs by means other
2116+3 than a purchase, the date of acquisition of the obligation
2117+4 shall be the date ownership of the obligation was
2118+5 transferred, except to the extent provided in clause (A),
2119+6 and if a portion of the obligation is acquired on multiple
2120+7 dates, the date of acquisition shall be considered separately
2121+8 for each portion of the obligation; and
2122+9 (C) if ownership of the obligation occurred as the result of
2123+10 a refinancing of another obligation, the acquisition date
2124+11 shall be the date on which the obligation was refinanced.
2125+12 (9) For taxable years beginning after December 25, 2016, add an
2126+13 amount equal to:
2127+14 (A) the amount reported by the taxpayer on IRC 965
2128+15 Transition Tax Statement, line 1;
2129+16 (B) if the taxpayer deducted an amount under Section 965(c)
2130+17 of the Internal Revenue Code in determining the taxpayer's
2131+18 taxable income for purposes of the federal income tax, the
2132+19 amount deducted under Section 965(c) of the Internal Revenue
2133+20 Code; and
2134+21 (C) with regard to any amounts of income under Section 965
2135+22 of the Internal Revenue Code distributed by the taxpayer, the
2136+23 deduction under Section 965(c) of the Internal Revenue Code
2137+24 attributable to such distributed amounts and not reported to the
2138+25 beneficiary.
2139+26 For purposes of this article, the amount required to be added back
2140+27 under clause (B) is not considered to be distributed or
2141+28 distributable to a beneficiary of the estate or trust for purposes of
2142+29 Sections 651 and 661 of the Internal Revenue Code.
2143+30 (10) Subtract any interest expense paid or accrued in the current
2144+31 taxable year but not deducted as a result of the limitation imposed
2145+32 under Section 163(j)(1) of the Internal Revenue Code. Add any
2146+33 interest expense paid or accrued in a previous taxable year but
2147+34 allowed as a deduction under Section 163 of the Internal Revenue
2148+35 Code in the current taxable year. For purposes of this subdivision,
2149+36 an interest expense is considered paid or accrued only in the first
2150+37 taxable year the deduction would have been allowable under
2151+38 Section 163 of the Internal Revenue Code if the limitation under
2152+39 Section 163(j)(1) of the Internal Revenue Code did not exist.
2153+40 (11) Add an amount equal to the deduction for qualified business
2154+41 income that was claimed by the taxpayer for the taxable year
2155+42 under Section 199A of the Internal Revenue Code.
2156+ES 419—LS 6606/DI 120 48
2157+1 (12) Subtract the amount that would have been excluded from
2158+2 gross income but for the enactment of Section 118(b)(2) of the
2159+3 Internal Revenue Code for taxable years ending after December
2160+4 22, 2017.
2161+5 (13) Add an amount equal to the remainder of:
2162+6 (A) the amount allowable as a deduction under Section 274(n)
2163+7 of the Internal Revenue Code; minus
2164+8 (B) the amount otherwise allowable as a deduction under
2165+9 Section 274(n) of the Internal Revenue Code, if Section
2166+10 274(n)(2)(D) of the Internal Revenue Code was not in effect
2167+11 for amounts paid or incurred after December 31, 2020.
2168+12 (14) For taxable years beginning after December 31, 2017, and
2169+13 before January 1, 2021, add an amount equal to the excess
2170+14 business loss of the taxpayer as defined in Section 461(l)(3) of the
2171+15 Internal Revenue Code. In addition:
2172+16 (A) If a taxpayer has an excess business loss under this
2173+17 subdivision and also has modifications under subdivisions (3)
2174+18 and (5) for property placed in service during the taxable year,
2175+19 the taxpayer shall treat a portion of the taxable year
2176+20 modifications for that property as occurring in the taxable year
2177+21 the property is placed in service and a portion of the
2178+22 modifications as occurring in the immediately following
2179+23 taxable year.
2180+24 (B) The portion of the modifications under subdivisions (3)
2181+25 and (5) for property placed in service during the taxable year
2182+26 treated as occurring in the taxable year in which the property
2183+27 is placed in service equals:
2184+28 (i) the modification for the property otherwise determined
2185+29 under this section; minus
2186+30 (ii) the excess business loss disallowed under this
2187+31 subdivision;
2188+32 but not less than zero (0).
2189+33 (C) The portion of the modifications under subdivisions (3)
2190+34 and (5) for property placed in service during the taxable year
2191+35 treated as occurring in the taxable year immediately following
2192+36 the taxable year in which the property is placed in service
2193+37 equals the modification for the property otherwise determined
2194+38 under this section minus the amount in clause (B).
2195+39 (D) Any reallocation of modifications between taxable years
2196+40 under clauses (B) and (C) shall be first allocated to the
2197+41 modification under subdivision (3), then to the modification
2198+42 under subdivision (5).
2199+ES 419—LS 6606/DI 120 49
2200+1 (15) For taxable years ending after March 12, 2020, subtract an
2201+2 amount equal to the deduction disallowed pursuant to:
2202+3 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
2203+4 as modified by Sections 206 and 207 of the Taxpayer Certainty
2204+5 and Disaster Relief Tax Act (Division EE of Public Law
2205+6 116-260); and
2206+7 (B) Section 3134(e) of the Internal Revenue Code.
2207+8 (16) For taxable years beginning after December 31, 2022,
2208+9 subtract an amount equal to the deduction disallowed under
2209+10 Section 280C(h) of the Internal Revenue Code.
2210+11 (17) Except as provided in subsection (c), for taxable years
2211+12 beginning after December 31, 2022, add an amount equal to any
2212+13 deduction or deductions allowed or allowable in determining
2213+14 taxable income under Section 641(b) of the Internal Revenue
2214+15 Code for taxes based on or measured by income and levied at the
2215+16 state level by any state of the United States.
2216+17 (18) For taxable years beginning after December 31, 2021, add
2217+18 or subtract amounts related to specified research or
2218+19 experimental procedures as required under IC 6-3-2-29.
2219+20 (18) (19) Add or subtract any other amounts the taxpayer is:
2220+21 (A) required to add or subtract; or
2221+22 (B) entitled to deduct;
2222+23 under IC 6-3-2.
2223+24 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
2224+25 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
2225+26 "adjusted gross income" of a pass through entity means the aggregate
2226+27 of items of ordinary income and loss in the case of a partnership or a
2227+28 corporation described in IC 6-3-2-2.8(2), or aggregate distributable net
2228+29 income of a trust or estate as defined in Section 643 of the Internal
2229+30 Revenue Code, distributions for beneficiaries that are subject to
2230+31 state and federal income tax in the case of a trust or estate,
2231+32 whichever is applicable, for the taxable year modified as follows:
2232+33 (1) Add the separately stated items of income and gains, or the
2233+34 equivalent items that must be considered separately by a
2234+35 beneficiary, as determined for federal purposes, attributed to the
2235+36 partners, shareholders, or beneficiaries of the pass through entity,
2236+37 determined without regard to whether the owner is permitted to
2237+38 exclude all or part of the income or gain or deduct any amount
2238+39 against the income or gain.
2239+40 (2) Subtract the separately stated items of deductions or losses or
2240+41 items that must be considered separately by beneficiaries, as
2241+42 determined for federal purposes, attributed to partners,
2242+ES 419—LS 6606/DI 120 50
2243+1 shareholders, or beneficiaries of the pass through entity and that
2244+2 are deductible by an individual in determining adjusted gross
2245+3 income as defined under Section 62 of the Internal Revenue
2246+4 Code:
2247+5 (A) limited as if the partners, shareholders, and beneficiaries
2248+6 deducted the maximum allowable loss or deduction allowable
2249+7 for the taxable year prior to any amount deductible from the
2250+8 pass through entity; but
2251+9 (B) not considering any disallowance of deductions resulting
2252+10 from federal basis limitations for the partner, shareholder, or
2253+11 beneficiary.
2254+12 (3) Add or subtract any modifications to adjusted gross income
2255+13 that would be required both for individuals under subsection (a)
2256+14 and corporations under subsection (b) to the extent otherwise
2257+15 provided in those subsections, including amounts that are
2258+16 allowable for which such modifications are necessary to account
2259+17 for separately stated items in subdivision (1) or (2).
2260+18 (h) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(18) (a)(36),
2261+19 (b)(22), (d)(20), (e)(20), or (f)(19) may not be construed to require an
2262+20 add back or allow a deduction or exemption more than once for a
2263+21 particular add back, deduction, or exemption.
2264+22 (i) For taxable years beginning after December 25, 2016, if:
2265+23 (1) a taxpayer is a shareholder, either directly or indirectly, in a
2266+24 corporation that is an E&P deficit foreign corporation as defined
2267+25 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
2268+26 earnings and profit deficit, or a portion of the earnings and profit
2269+27 deficit, of the E&P deficit foreign corporation is permitted to
2270+28 reduce the federal adjusted gross income or federal taxable
2271+29 income of the taxpayer, the deficit, or the portion of the deficit,
2272+30 shall also reduce the amount taxable under this section to the
2273+31 extent permitted under the Internal Revenue Code, however, in no
2274+32 case shall this permit a reduction in the amount taxable under
2275+33 Section 965 of the Internal Revenue Code for purposes of this
2276+34 section to be less than zero (0); and
2277+35 (2) the Internal Revenue Service issues guidance that such an
2278+36 income or deduction is not reported directly on a federal tax
2279+37 return or is to be reported in a manner different than specified in
2280+38 this section, this section shall be construed as if federal adjusted
2281+39 gross income or federal taxable income included the income or
2282+40 deduction.
2283+41 (j) If a partner is required to include an item of income, a deduction,
2284+42 or another tax attribute in the partner's adjusted gross income tax return
2285+ES 419—LS 6606/DI 120 51
2286+1 pursuant to IC 6-3-4.5, such item shall be considered to be includible
2287+2 in the partner's federal adjusted gross income or federal taxable
2288+3 income, regardless of whether such item is actually required to be
2289+4 reported by the partner for federal income tax purposes. For purposes
2290+5 of this subsection:
2291+6 (1) items for which a valid election is made under IC 6-3-4.5-6,
2292+7 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
2293+8 in the partner's adjusted gross income or taxable income; and
2294+9 (2) items for which the partnership did not make an election under
2295+10 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
2296+11 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
2297+12 shall be included in the partner's adjusted gross income or taxable
2298+13 income.
2299+14 (k) The following apply for purposes of this section:
2300+15 (1) For purposes of subsections (b) and (f), if a taxpayer is an
2301+16 organization that has more than one (1) trade or business
2302+17 subject to the provisions of Section 512(a)(6) of the Internal
2303+18 Revenue Code, the following rules apply for taxable years
2304+19 beginning after December 31, 2017:
2305+20 (A) If a trade or business has federal unrelated business
2306+21 taxable income of zero (0) or greater for a taxable year, the
2307+22 unrelated business taxable income and modifications
2308+23 required under this section shall be combined in
2309+24 determining the adjusted gross income of the taxpayer and
2310+25 shall not be treated as being subject to the provisions of
2311+26 Section 512(a)(6) of the Internal Revenue Code if one (1) or
2312+27 more trades or businesses have negative Indiana adjusted
2313+28 gross income after adjustments.
2314+29 (B) If a trade or business has federal unrelated business
2315+30 taxable income of less than zero (0) for a taxable year, the
2316+31 taxpayer shall apply the modifications under this section
2317+32 for the taxable year against the net operating loss in the
2318+33 manner required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for
2319+34 separately stated net operating losses. However, if the
2320+35 application of modifications required under IC 6-3-2-2.5 or
2321+36 IC 6-3-2-2.6 results in the separately stated net operating
2322+37 loss for the trade or business being zero (0), the
2323+38 modifications that increase adjusted gross income under
2324+39 this section and remain after the calculations to adjust the
2325+40 separately stated net operating loss to zero (0) that result
2326+41 from the trade or business must be treated as
2327+42 modifications to which clause (A) applies for the taxable
2328+ES 419—LS 6606/DI 120 52
2329+1 year.
2330+2 (C) If a trade or business otherwise described in Section
2331+3 512(a)(6) of the Internal Revenue Code incurred a net
2332+4 operating loss for a taxable year beginning after December
2333+5 31, 2017, and before January 1, 2021, and the net operating
2334+6 loss was carried back for federal tax purposes:
2335+7 (i) if the loss was carried back to a taxable year for which
2336+8 the requirements under Section 512(a)(6) of the Internal
2337+9 Revenue Code did not apply, the portion of the loss and
2338+10 modifications attributable to the loss shall be treated as
2339+11 adjusted gross income of the taxpayer for the first
2340+12 taxable year of the taxpayer beginning after December
2341+13 31, 2022, and shall be treated as part of the adjusted
2342+14 gross income attributable to clause (A), unless, and to the
2343+15 extent, the loss and modifications were applied to
2344+16 adjusted gross income for a previous taxable year, as
2345+17 determined under this article; and
2346+18 (ii) if the loss was carried back to a taxable year for
2347+19 which the requirements under Section 512(a)(6) of the
2348+20 Internal Revenue Code applied, the portion of the loss
2349+21 and modifications attributable to the loss shall be treated
2350+22 as adjusted gross income of the taxpayer for the first
2351+23 taxable year of the taxpayer beginning after December
2352+24 31, 2022, and for purposes of this clause, the inclusion of
2353+25 losses and modifications shall be in the same manner as
2354+26 provided in clause (B), unless, and to the extent, the loss
2355+27 and modifications were applied to adjusted gross income
2356+28 for a previous taxable year, as determined under this
2357+29 article.
2358+30 (D) Notwithstanding any provision in this subdivision, if a
2359+31 taxpayer computed its adjusted gross income for a taxable
2360+32 year beginning before January 1, 2023, based on a
2361+33 reasonable interpretation of this article, the taxpayer shall
2362+34 be permitted to compute its adjusted gross income for
2363+35 those taxable years based on that interpretation. However,
2364+36 a taxpayer must continue to report any tax attributes for
2365+37 taxable years beginning after December 31, 2022, in a
2366+38 manner consistent with its previous interpretation.
2367+39 (2) In the case of a corporation, other than a captive real
2368+40 estate investment trust, for which the adjusted gross income
2369+41 under this article is determined after a deduction for
2370+42 dividends paid under the Internal Revenue Code, the
2371+ES 419—LS 6606/DI 120 53
2372+1 modifications required under this section shall be applied in
2373+2 ratio to the corporation's taxable income (as defined in
2374+3 Section 63 of the Internal Revenue Code) after deductions for
2375+4 dividends paid under the Internal Revenue Code compared to
2376+5 the corporation's taxable income (as defined in Section 63 of
2377+6 the Internal Revenue Code) before the deduction for
2378+7 dividends paid under the Internal Revenue Code.
2379+8 (3) In the case of a trust or estate, the trust or estate is
2380+9 required to include only the portion of the modifications not
2381+10 passed through to beneficiaries.
2382+11 (4) In the case of a taxpayer for which modifications are
2383+12 required to be applied against a separately stated net
2384+13 operating loss under IC 6-3-2-2.5 or IC 6-3-2-2.6, the
2385+14 modifications required under this section must be adjusted to
2386+15 reflect the required application of the modifications against a
2387+16 separately stated net operating loss, in order to avoid the
2388+17 application of a particular modification multiple times.
2389+18 SECTION 22. IC 6-3-1-11, AS AMENDED BY P.L.165-2021,
2390+19 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2391+20 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 11. (a) The term "Internal
2392+21 Revenue Code" means the Internal Revenue Code of 1986 of the
2393+22 United States as amended and in effect on March 31, 2021. January
2394+23 1, 2023.
2395+24 (b) Whenever the Internal Revenue Code is mentioned in this
2396+25 article, or in another provision of the Indiana Code that cites the
2397+26 definition of "Internal Revenue Code" provided in this section, the
2398+27 particular provisions that are referred to, together with all the other
2399+28 provisions of the Internal Revenue Code in effect on March 31, 2021,
2400+29 January 1, 2023, that pertain to the provisions specifically mentioned,
2401+30 shall be regarded as incorporated in this article by reference and have
2402+31 the same force and effect as though fully set forth in this article. To the
2403+32 extent that a federal statute in the United States Code is enacted or
2404+33 amended in a title other than the Internal Revenue Code on or before
2405+34 March 31, 2021, January 1, 2023, and affects federal adjusted gross
2406+35 income, federal taxable income, federal tax credits, or other federal tax
2407+36 attributes, the federal statute shall be considered to be part of the
2408+37 Internal Revenue Code as amended and in effect on March 31, 2021.
2409+38 January 1, 2023. To the extent:
2410+39 (1) the provisions of the Internal Revenue Code apply to this
2411+40 article, regulations adopted under Section 7805(a) of the Internal
2412+41 Revenue Code, and in effect on March 31, 2021; January 1,
2413+42 2023; and
2414+ES 419—LS 6606/DI 120 54
2415+1 (2) a federal statute in the United States Code that is enacted or
2416+2 amended in a title other than the Internal Revenue Code on or
2417+3 before March 31, 2021, January 1, 2023, and affects federal
2418+4 adjusted gross income, federal taxable income, federal tax credits,
2419+5 or other federal tax attributes applies to this article, regulations
2420+6 adopted under the federal statute of the United States Code and in
2421+7 effect on March 31, 2021; January 1, 2023;
2422+8 shall be regarded as rules adopted by the department under this article,
2423+9 unless the department adopts specific rules that supersede the
2424+10 regulation.
2425+11 (c) An amendment to the Internal Revenue Code made by an act
2426+12 passed by Congress before March 31, 2021, January 1, 2023, other
2427+13 than the federal 21st Century Cures Act (P.L. 114-255) and the federal
2428+14 Disaster Tax Relief and Airport and Airway Extension Act of 2017
2429+15 (P.L. 115-63), that is effective for any taxable year that began before
2430+16 March 31, 2021, January 1, 2023, and that affects:
2431+17 (1) individual adjusted gross income (as defined in Section 62 of
2432+18 the Internal Revenue Code);
2433+19 (2) corporate taxable income (as defined in Section 63 of the
2434+20 Internal Revenue Code);
2435+21 (3) trust and estate taxable income (as defined in Section 641(b)
2436+22 of the Internal Revenue Code);
2437+23 (4) life insurance company taxable income (as defined in Section
2438+24 801(b) of the Internal Revenue Code);
2439+25 (5) mutual insurance company taxable income (as defined in
2440+26 Section 821(b) of the Internal Revenue Code); or
2441+27 (6) taxable income (as defined in Section 832 of the Internal
2442+28 Revenue Code);
2443+29 is also effective for that same taxable year for purposes of determining
2444+30 adjusted gross income under section 3.5 of this chapter and
2445+31 IC 6-5.5-1-2.
2446+32 (d) This subsection applies to a taxable year ending before January
2447+33 1, 2013. The following provisions of the Internal Revenue Code that
2448+34 were amended by the Tax Relief Act, Unemployment Insurance
2449+35 Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are
2450+36 treated as though they were not amended by the Tax Relief Act,
2451+37 Unemployment Insurance Reauthorization, and Job Creation Act of
2452+38 2010 (P.L. 111-312):
2453+39 (1) Section 1367(a)(2) of the Internal Revenue Code pertaining to
2454+40 an adjustment of basis of the stock of shareholders.
2455+41 (2) Section 871(k)(1)(C) and 871(k)(2)(C) of the Internal
2456+42 Revenue Code pertaining the treatment of certain dividends of
2457+ES 419—LS 6606/DI 120 55
2458+1 regulated investment companies.
2459+2 (3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code
2460+3 pertaining to regulated investment companies qualified entity
2461+4 treatment.
2462+5 (4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code
2463+6 pertaining to the modification of tax treatment of certain
2464+7 payments to controlling exempt organizations.
2465+8 (5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code
2466+9 pertaining to the limitations on percentage depletion in the case
2467+10 of oil and gas wells.
2468+11 (6) Section 451(i)(3) of the Internal Revenue Code pertaining to
2469+12 special rule for sales or dispositions to implement Federal Energy
2470+13 Regulatory Commission or state electric restructuring policy for
2471+14 qualified electric utilities.
2472+15 (7) Section 954(c)(6) of the Internal Revenue Code pertaining to
2473+16 the look-through treatment of payments between related
2474+17 controlled foreign corporation under foreign personal holding
2475+18 company rules.
2476+19 The department shall develop forms and adopt any necessary rules
2477+20 under IC 4-22-2 to implement this subsection.
2478+21 SECTION 23. IC 6-3-1-39 IS ADDED TO THE INDIANA CODE
2479+22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2480+23 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) The term
2481+24 "preliminary federal net operating loss" means:
2482+25 (1) in the case of a taxpayer that has a federal net operating
2483+26 loss for a taxable year, the taxpayer's federal net operating
2484+27 loss under Section 172 of the Internal Revenue Code; and
2485+28 (2) in the case of a taxpayer that does not have a federal net
2486+29 operating loss for a taxable year:
2487+30 (A) the taxpayer's:
2488+31 (i) in the case of an individual, or, except as provided in
2489+32 item (iii) or (iv), a corporation, federal taxable income as
2490+33 defined in Section 63 of the Internal Revenue Code;
2491+34 (ii) in the case of an estate or trust, federal taxable
2492+35 income as defined in Section 641(b) of the Internal
2493+36 Revenue Code;
2494+37 (iii) in the case of an insurance company subject to the
2495+38 tax imposed under Section 831 of the Internal Revenue
2496+39 Code, federal taxable income as defined in Section 832(b)
2497+40 of the Internal Revenue Code; and
2498+41 (iv) in the case of a life insurance company subject to the
2499+42 tax imposed under Section 801(a) of the Internal
2500+ES 419—LS 6606/DI 120 56
2501+1 Revenue Code, federal life insurance company taxable
2502+2 income as defined in Section 801(b) of the Internal
2503+3 Revenue Code; plus
2504+4 (B) any amounts that are disallowed for the taxpayer in
2505+5 computing a federal net operating loss for a taxable year,
2506+6 excluding any amounts used in determining a separately
2507+7 stated net operating loss; minus
2508+8 (C) any amounts by which a federal net operating loss is
2509+9 increased for a taxable year, excluding any amounts used
2510+10 in determining a separately stated net operating loss.
2511+11 For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a preliminary
2512+12 federal net operating loss described in subdivision (1) must be
2513+13 expressed as a negative number, and a preliminary federal net
2514+14 operating loss described in subdivision (2) may be expressed as a
2515+15 positive or negative number, subject to the determination under
2516+16 subdivision (2).
2517+17 (b) The term does not include a separately stated net operating
2518+18 loss, or any amounts used in determining a separately stated net
2519+19 operating loss.
2520+20 SECTION 24. IC 6-3-1-40 IS ADDED TO THE INDIANA CODE
2521+21 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2522+22 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 40. (a) The term
2523+23 "separately stated net operating loss" means a federal net
2524+24 operating loss, or a portion of a federal net operating loss,
2525+25 determined according to the Internal Revenue Code that is:
2526+26 (1) computed as an allowable federal net operating loss with
2527+27 regard to a taxable year; and
2528+28 (2) required to be carried forward or carried back under the
2529+29 Internal Revenue Code;
2530+30 regardless of whether the taxpayer had federal taxable income for
2531+31 the year of the loss.
2532+32 (b) A separately stated net operating loss for a taxable year
2533+33 includes:
2534+34 (1) an excess business loss for the taxable year under Section
2535+35 461(l) of the Internal Revenue Code;
2536+36 (2) a federal net operating loss for a trade or business that is
2537+37 not allowable in the taxable year in which the loss was
2538+38 incurred as a result of the application of Section 512(a)(6)(C)
2539+39 of the Internal Revenue Code, with the federal net operating
2540+40 loss determined separately for each trade or business; and
2541+41 (3) a federal net operating loss that is not affected by excess
2542+42 inclusion income under Section 860E of the Internal Revenue
2543+ES 419—LS 6606/DI 120 57
2544+1 Code.
2545+2 (c) For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a separately
2546+3 stated net operating loss must be expressed as a negative number.
2547+4 SECTION 25. IC 6-3-2-1.9 IS ADDED TO THE INDIANA CODE
2548+5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2549+6 1, 2021 (RETROACTIVE)]: Sec. 1.9. (a) This section applies only to
2550+7 a taxable year ending after June 30, 2021, and beginning before
2551+8 January 1, 2023.
2552+9 (b) For purposes of determining a net operating loss deduction
2553+10 under IC 6-3-2-2.5 or IC 6-3-2-2.6, the term "federal taxable
2554+11 income" means:
2555+12 (1) in the case of an individual, or, except as provided in
2556+13 subdivision (3) or (4), a corporation, federal taxable income as
2557+14 defined in Section 63 of the Internal Revenue Code;
2558+15 (2) in the case of an estate or trust, federal taxable income as
2559+16 defined in Section 641(b) of the Internal Revenue Code;
2560+17 (3) in the case of an insurance company subject to the tax
2561+18 imposed under Section 831 of the Internal Revenue Code,
2562+19 federal taxable income as defined in Section 832(b) of the
2563+20 Internal Revenue Code; and
2564+21 (4) in the case of a life insurance company subject to the tax
2565+22 imposed under Section 801(a) of the Internal Revenue Code,
2566+23 federal life insurance company taxable income as defined in
2567+24 Section 801(b) of the Internal Revenue Code.
2568+25 SECTION 26. IC 6-3-2-2.5, AS AMENDED BY P.L.1-2023,
2569+26 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2570+27 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.5. (a) This section
2571+28 applies to a resident person.
2572+29 (b) Resident persons are entitled to a net operating loss deduction.
2573+30 The amount of the deduction taken in a taxable year may not exceed
2574+31 the taxpayer's unused Indiana net operating losses carried over to that
2575+32 year. A taxpayer is not entitled to carryback any net operating losses
2576+33 after December 31, 2011.
2577+34 (c) An Indiana net operating loss equals the sum of the following:
2578+35 (1) Subject to subsection (j), any separately stated net
2579+36 operating loss, plus each of the following, as applicable:
2580+37 (A) In the case of an individual, any deductions allowable
2581+38 in determining the separately stated net operating loss for
2582+39 the taxable year, but not allowable in determining federal
2583+40 adjusted gross income.
2584+41 (B) In the case of a separately stated net operating loss that
2585+42 results from an excess business loss (as defined in Section
2586+ES 419—LS 6606/DI 120 58
2587+1 461(l) of the Internal Revenue Code) for a taxable year
2588+2 beginning after December 31, 2022, the modifications
2589+3 required by IC 6-3-1-3.5, as set forth in subsection (d), that
2590+4 result in an increase of the taxpayer's Indiana adjusted
2591+5 gross income and that arise from federal deductions that
2592+6 resulted in the excess business loss.
2593+7 (C) In the case of a separately stated net operating loss not
2594+8 described in clause (B), the modifications required by
2595+9 IC 6-3-1-3.5, as set forth in subsection (d). For purposes of
2596+10 this clause, a modification that results in an increase to a
2597+11 taxpayer's adjusted gross income is considered an addition,
2598+12 and a modification that results in a decrease to a
2599+13 taxpayer's adjusted gross income is considered a
2600+14 subtraction.
2601+15 If the amount determined under this subdivision is less than
2602+16 zero (0), the amount is an Indiana net operating loss.
2603+17 (1) (2) Subject to subsection (j), the taxpayer's preliminary
2604+18 federal net operating loss for a taxable year as calculated under
2605+19 Section 172 of the Internal Revenue Code, adjusted for plus the
2606+20 sum of the following:
2607+21 (A) The application of certain modifications required by
2608+22 IC 6-3-1-3.5 as set forth in subsection (d)(1) and, (d). For
2609+23 purposes of this clause, a modification that results in an
2610+24 increase to a taxpayer's adjusted gross income is
2611+25 considered an addition, and a modification that results in
2612+26 a decrease to a taxpayer's adjusted gross income is
2613+27 considered a subtraction.
2614+28 (B) In the case of an individual, reduced by any deductions
2615+29 allowable in determining the preliminary federal net
2616+30 operating loss for the taxable year, but not allowable in
2617+31 determining federal adjusted gross income.
2618+32 If the amount determined under this subdivision is less than
2619+33 zero (0), the amount is an Indiana net operating loss. If the
2620+34 amount determined under this subdivision is equal to or
2621+35 greater than zero (0), the Indiana net operating loss under this
2622+36 subdivision is zero (0).
2623+37 (2) (3) The excess business loss deduction disallowed under
2624+38 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14). and
2625+39 (3) for taxable years beginning after December 31, 2020, a loss
2626+40 for a taxable year disallowed because of Section 461(l) of the
2627+41 Internal Revenue Code, without any modifications under
2628+42 subsection (d).
2629+ES 419—LS 6606/DI 120 59
2630+1 (d) The following provisions apply For purposes of subsection (c),
2631+2 (1) the modifications that are to be applied are those
2632+3 modifications required under IC 6-3-1-3.5 for the same taxable
2633+4 year in which each net operating loss was incurred, except that the
2634+5 modifications do not include the modifications required under:
2635+6 (A) (1) IC 6-3-1-3.5(a)(3);
2636+7 (B) (2) IC 6-3-1-3.5(a)(4);
2637+8 (C) (3) IC 6-3-1-3.5(a)(5);
2638+9 (D) IC 6-3-1-3.5(a)(35); (4) IC 6-3-1-3.5(a)(36);
2639+10 (E) IC 6-3-1-3.5(f)(11); and
2640+11 (F) IC 6-3-1-3.5(f)(18). (5) IC 6-3-1-3.5(f)(19); and
2641+12 (6) any modification required under Section 172(d) or Section
2642+13 512(b) of the Internal Revenue Code that is also required
2643+14 under IC 6-3-1-3.5 in determining Indiana adjusted gross
2644+15 income.
2645+16 (2) An Indiana net operating loss includes a net operating loss that
2646+17 arises when the applicable modifications required by IC 6-3-1-3.5
2647+18 as set forth in subdivision (1) exceed the sum of the taxpayer's
2648+19 federal adjusted gross income (as defined in Section 62 of the
2649+20 Internal Revenue Code) if the taxpayer is an individual, or federal
2650+21 taxable income (as defined in Section 63 of the Internal Revenue
2651+22 Code) if the taxpayer is a trust or an estate for the taxable year in
2652+23 which the Indiana net operating loss is determined and the
2653+24 modifications otherwise required for federal net operating losses
2654+25 for the taxable year by Section 172(d) of the Internal Revenue
2655+26 Code. A modification that reduces a federal net operating loss
2656+27 shall be treated as a positive number for purposes of this
2657+28 subdivision, and a modification that increases a federal net
2658+29 operating loss shall be treated as a negative number for purposes
2659+30 of this subdivision.
2660+31 (e) Subject to the limitations contained in subsection (g),
2661+32 subsections (g), (h), and (i), an Indiana net operating loss carryover
2662+33 shall be available as a deduction from the taxpayer's adjusted gross
2663+34 income (as defined in IC 6-3-1-3.5) in the carryover year provided in
2664+35 subsection (f), but not in excess of the taxpayer's adjusted gross income
2665+36 (as defined in IC 6-3-1-3.5) in the carryover year determined without
2666+37 regard to this section.
2667+38 (f) Carryovers shall be determined under this subsection as follows:
2668+39 (1) An Indiana net operating loss shall be an Indiana net operating
2669+40 loss carryover to each of the carryover years following the taxable
2670+41 year of the loss.
2671+42 (2) An Indiana net operating loss may not be carried over for
2672+ES 419—LS 6606/DI 120 60
2673+1 more than twenty (20) taxable years after the taxable year of the
2674+2 loss.
2675+3 (g) Except as provided in subsection (h), the entire amount of the
2676+4 Indiana net operating loss for any taxable year shall be carried to the
2677+5 earliest of the taxable years to which (as determined under subsection
2678+6 (f)) the loss may be carried. The amount of the Indiana net operating
2679+7 loss remaining after the deduction is taken under this section in a
2680+8 taxable year may be carried over as provided in subsection (f). The
2681+9 amount of the Indiana net operating loss carried over from year to year
2682+10 shall be reduced to the extent that the Indiana net operating loss
2683+11 carryover is used by the taxpayer to obtain a deduction in a taxable
2684+12 year, or as required by subsection (i), until the occurrence of the
2685+13 earlier of the following:
2686+14 (1) The entire amount of the Indiana net operating loss has been
2687+15 used as a deduction or reduced as required by subsection (i).
2688+16 (2) The Indiana net operating loss has been carried over to each
2689+17 of the carryover years provided by subsection (f).
2690+18 (h) An Indiana net operating loss that arises after the
2691+19 application of Section 512(a)(6) of the Internal Revenue Code shall
2692+20 be allowable only:
2693+21 (1) in a taxable year in which the trade or business that
2694+22 generated the federal net operating loss has an adjusted gross
2695+23 income greater than zero (0) as determined under
2696+24 IC 6-3-1-3.5; and
2697+25 (2) against the trade's or business's adjusted gross income;
2698+26 until the federal net operating loss from the trade or business has
2699+27 been exhausted. When the federal net operating loss from the trade
2700+28 or business has been exhausted, and subject to the limitations of
2701+29 this section, any remaining Indiana net operating loss shall be
2702+30 allowable against any trade or business of the taxpayer.
2703+31 (i) The following rules apply to an Indiana net operating loss:
2704+32 (1) If the taxpayer had a discharge of indebtedness that is
2705+33 excluded from gross income under Section 108(a)(1)(A),
2706+34 Section 108(a)(1)(B), or Section 108(a)(1)(C) of the Internal
2707+35 Revenue Code, the Indiana net operating loss shall be reduced
2708+36 by the remainder of:
2709+37 (A) the amount of discharge of indebtedness excluded from
2710+38 federal gross income; minus
2711+39 (B) the amount of discharge of indebtedness that reduced
2712+40 the tax attributes under Section 108(b)(2)(D), Section
2713+41 108(b)(2)(E), or Section 108(b)(2)(F) of the Internal
2714+42 Revenue Code or was applied for federal tax purposes
2715+ES 419—LS 6606/DI 120 61
2716+1 under Section 108(b)(5) of the Internal Revenue Code.
2717+2 (2) Any reduction in an Indiana net operating loss shall be
2718+3 first applied to the Indiana net operating loss for the taxable
2719+4 year of the discharge, and then to any Indiana net operating
2720+5 loss carryovers.
2721+6 (3) The provisions of Section 108(d)(6) and Section 108(d)(7)
2722+7 of the Internal Revenue Code shall apply to any discharge of
2723+8 indebtedness for purposes of determining the reduction of net
2724+9 operating losses under this section.
2725+10 (j) The following apply for purposes of calculating an Indiana
2726+11 net operating loss under subsection (c):
2727+12 (1) An itemized deduction shall be applied first under
2728+13 subsection (c)(1), and any amount not applied under
2729+14 subsection (c)(1) to make the net operating loss equal to zero
2730+15 (0) shall be applied under subsection (c)(2).
2731+16 (2) In the case of a modification under IC 6-3-1-3.5 required
2732+17 to modify a separately stated net operating loss or a
2733+18 preliminary federal net operating loss, the amount of the
2734+19 modification may not exceed the amount prescribed under
2735+20 IC 6-3-1-3.5 and must be applied in the following order:
2736+21 (A) Against a separately stated net operating loss under
2737+22 subsection (c)(1)(B), but only to the extent necessary to
2738+23 increase the separately stated net operating loss, after
2739+24 application of subsection (c)(1)(A) and (c)(1)(B), to an
2740+25 amount not greater than zero (0).
2741+26 (B) Against a separately stated net operating loss under
2742+27 subsection (c)(1)(C), but only to the extent necessary to
2743+28 increase the separately stated net operating loss to an
2744+29 amount not greater than zero (0).
2745+30 (C) To compute a modification to a preliminary federal net
2746+31 operating loss under subsection (c)(2).
2747+32 SECTION 27. IC 6-3-2-2.6, AS AMENDED BY P.L.1-2023,
2748+33 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2749+34 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.6. (a) This section
2750+35 applies to a corporation or a nonresident person.
2751+36 (b) Corporations and nonresident persons are entitled to a net
2752+37 operating loss deduction. The amount of the deduction taken in a
2753+38 taxable year may not exceed the taxpayer's unused Indiana net
2754+39 operating losses carried over to that year. A taxpayer is not entitled to
2755+40 carryback any net operating losses after December 31, 2011.
2756+41 (c) An Indiana net operating loss equals the sum of the following:
2757+42 (1) the taxpayer's federal net operating loss for a taxable year as
2758+ES 419—LS 6606/DI 120 62
2759+1 calculated under Section 172 of the Internal Revenue Code,
2760+2 derived from sources within Indiana and adjusted for certain
2761+3 modifications required by IC 6-3-1-3.5 as set forth in subsection
2762+4 (d)(1) and, for a nonresident individual, reduced by any
2763+5 deductions from Indiana sources allowable in determining the
2764+6 federal net operating loss for the taxable year, but not allowable
2765+7 in determining federal adjusted gross income;
2766+8 (1) Subject to subsection (m), any separately stated net
2767+9 operating loss derived from sources within Indiana, plus each
2768+10 of the following, as applicable:
2769+11 (A) In the case of an individual, any deductions allowable
2770+12 in determining the separately stated net operating loss for
2771+13 the taxable year that are derived from sources within
2772+14 Indiana but not allowable in determining federal adjusted
2773+15 gross income.
2774+16 (B) In the case of a separately stated net operating loss that
2775+17 results from an excess business loss (as defined in Section
2776+18 461(l) of the Internal Revenue Code) for a taxable year
2777+19 beginning after December 31, 2022, the modifications
2778+20 required by IC 6-3-1-3.5, as set forth in subsection (d)(1),
2779+21 that result in an increase of the taxpayer's Indiana
2780+22 adjusted gross income and that arise from federal
2781+23 deductions that resulted in the excess business loss.
2782+24 (C) In the case of a separately stated net operating loss not
2783+25 described in clause (B), the modifications required by
2784+26 IC 6-3-1-3.5, as set forth in subsection (d)(1). For purposes
2785+27 of this clause, a modification that results in an increase to
2786+28 a taxpayer's adjusted gross income is considered an
2787+29 addition, and a modification that results in a decrease to a
2788+30 taxpayer's adjusted gross income is considered a
2789+31 subtraction.
2790+32 If the amount determined under this subdivision is less than
2791+33 zero (0), the amount is an Indiana net operating loss.
2792+34 (2) Subject to subsection (m), the taxpayer's preliminary
2793+35 federal net operating loss for a taxable year derived from
2794+36 sources within Indiana plus the sum of the following:
2795+37 (A) The application of certain modifications required by
2796+38 IC 6-3-1-3.5 as set forth in subsection (d)(1). For purposes
2797+39 of this clause, a modification that results in an increase to
2798+40 a taxpayer's adjusted gross income is considered an
2799+41 addition, and a modification that results in a decrease to a
2800+42 taxpayer's adjusted gross income is considered a
2801+ES 419—LS 6606/DI 120 63
2802+1 subtraction.
2803+2 (B) In the case of an individual, any deductions derived
2804+3 from sources within Indiana and allowable in determining
2805+4 the preliminary federal net operating loss for the taxable
2806+5 year but not allowable in determining federal adjusted
2807+6 gross income.
2808+7 If the amount determined under this subdivision is less than
2809+8 zero (0), the amount is an Indiana net operating loss. If the
2810+9 amount determined under this subdivision is equal to or
2811+10 greater than zero (0), the Indiana net operating loss under this
2812+11 subdivision is zero (0).
2813+12 (2) (3) The excess business loss deduction disallowed under
2814+13 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14) and incurred from
2815+14 Indiana sources. and
2816+15 (3) for taxable years beginning after December 31, 2020, the
2817+16 portion of the loss for a taxable year disallowed because of
2818+17 Section 461(l) of the Internal Revenue Code and incurred from
2819+18 Indiana sources, without any modifications under subsection (d).
2820+19 Any net operating loss under this subdivision shall be computed
2821+20 in a manner consistent with the computation of adjusted gross
2822+21 income under IC 6-3.
2823+22 (d) The following provisions apply for purposes of subsection (c):
2824+23 (1) The modifications that are to be applied are those
2825+24 modifications required under IC 6-3-1-3.5 for the same taxable
2826+25 year in which each net operating loss was incurred, except that the
2827+26 modifications do not include the modifications required under:
2828+27 (A) IC 6-3-1-3.5(a)(3);
2829+28 (B) IC 6-3-1-3.5(a)(4);
2830+29 (C) IC 6-3-1-3.5(a)(5);
2831+30 (D) IC 6-3-1-3.5(a)(35); IC 6-3-1-3.5(a)(36);
2832+31 (E) IC 6-3-1-3.5(b)(14);
2833+32 (F) IC 6-3-1-3.5(b)(20); (E) IC 6-3-1-3.5(b)(22);
2834+33 (G) IC 6-3-1-3.5(d)(13);
2835+34 (H) IC 6-3-1-3.5(d)(19); (F) IC 6-3-1-3.5(d)(20);
2836+35 (I) IC 6-3-1-3.5(e)(13);
2837+36 (J) IC 6-3-1-3.5(e)(19); (G) IC 6-3-1-3.5(e)(20);
2838+37 (K) IC 6-3-1-3.5(f)(11); and
2839+38 (L) IC 6-3-1-3.5(f)(18). (H) IC 6-3-1-3.5(f)(19); and
2840+39 (I) any modification required under Section 172(d) or
2841+40 Section 512(b) of the Internal Revenue Code that is also
2842+41 required under IC 6-3-1-3.5 in determining Indiana
2843+42 adjusted gross income.
2844+ES 419—LS 6606/DI 120 64
2845+1 (2) The amount of the taxpayer's net operating loss that is derived
2846+2 from sources within Indiana shall be determined in the same
2847+3 manner that the amount of the taxpayer's adjusted gross income
2848+4 derived from sources within Indiana is determined under section
2849+5 2 of this chapter for the same taxable year during which each loss
2850+6 was incurred.
2851+7 (3) An Indiana net operating loss includes a net operating loss that
2852+8 arises when the applicable modifications required by IC 6-3-1-3.5
2853+9 as set forth in subdivision (1) exceed the sum of:
2854+10 (A) either:
2855+11 (i) the taxpayer's federal taxable income (as defined in
2856+12 Section 63 of the Internal Revenue Code), if the taxpayer is
2857+13 a corporation, nonresident estate, or nonresident trust; or
2858+14 (ii) the taxpayer's federal adjusted gross income (as defined
2859+15 by Section 62 of the Internal Revenue Code), if the taxpayer
2860+16 is a nonresident individual;
2861+17 for the taxable year in which the Indiana net operating loss is
2862+18 determined; and
2863+19 (B) the modifications otherwise required for federal net
2864+20 operating losses for the taxable year of the Indiana net
2865+21 operating loss under Section 172(d) of the Internal Revenue
2866+22 Code or Section 512(b) of the Internal Revenue Code. A
2867+23 modification that reduces a federal net operating loss shall be
2868+24 treated as a positive number for purposes of this subdivision,
2869+25 and a modification that increases a federal net operating loss
2870+26 shall be treated as a negative number for purposes of this
2871+27 subdivision.
2872+28 (e) Subject to the limitations contained in subsection (g),
2873+29 subsections (g) through (l), an Indiana net operating loss carryover
2874+30 shall be available as a deduction from the taxpayer's adjusted gross
2875+31 income derived from sources within Indiana (as defined in section 2 of
2876+32 this chapter) in the carryover year provided in subsection (f), but not in
2877+33 excess of the taxpayer's adjusted gross income (as defined in
2878+34 IC 6-3-1-3.5) in the carryover year determined without regard to the
2879+35 deduction allowable under this section.
2880+36 (f) Carryovers shall be determined under this subsection as follows:
2881+37 (1) An Indiana net operating loss shall be an Indiana net operating
2882+38 loss carryover to each of the carryover years following the taxable
2883+39 year of the loss.
2884+40 (2) An Indiana net operating loss may not be carried over for
2885+41 more than twenty (20) taxable years after the taxable year of the
2886+42 loss.
2887+ES 419—LS 6606/DI 120 65
2888+1 (g) The entire amount of the Indiana net operating loss for any
2889+2 taxable year shall be carried to the earliest of the taxable years to which
2890+3 (as determined under subsection (f)) the loss may be carried. The
2891+4 amount of the Indiana net operating loss remaining after the deduction
2892+5 is taken under this section in a taxable year may be carried over as
2893+6 provided in subsection (f). The amount of the Indiana net operating loss
2894+7 carried over from year to year shall be reduced to the extent that the
2895+8 Indiana net operating loss carryover is used by the taxpayer to obtain
2896+9 a deduction in a taxable year, or as required by subsection (i), until
2897+10 the occurrence of the earlier of the following:
2898+11 (1) The entire amount of the Indiana net operating loss has been
2899+12 used as a deduction or reduced as required by subsection (i).
2900+13 (2) The Indiana net operating loss has been carried over to each
2901+14 of the carryover years provided by subsection (f).
2902+15 (h) An Indiana net operating loss deduction determined under this
2903+16 section shall be allowed notwithstanding the fact that in the year the
2904+17 taxpayer incurred the net operating loss the taxpayer was not subject to
2905+18 the tax imposed under section 1 of this chapter because the taxpayer
2906+19 was:
2907+20 (1) a life insurance company (as defined in Section 816(a) of the
2908+21 Internal Revenue Code); or
2909+22 (2) an insurance company subject to tax under Section 831 of the
2910+23 Internal Revenue Code.
2911+24 (i) In the case of a life insurance company, this section shall be
2912+25 applied by substituting life insurance company taxable income (as
2913+26 defined in Section 801 the Internal Revenue Code) in place of
2914+27 references to taxable income (as defined in Section 63 of the Internal
2915+28 Revenue Code).
2916+29 (i) Notwithstanding subsection (g), the following apply to an
2917+30 Indiana net operating loss:
2918+31 (1) An Indiana net operating loss that arises after the
2919+32 application of Section 512(a)(6) of the Internal Revenue Code
2920+33 shall be allowable only:
2921+34 (A) in a taxable year in which the trade or business that
2922+35 generated the federal net operating loss has an adjusted
2923+36 gross income derived from sources within Indiana greater
2924+37 than zero (0) as determined under IC 6-3-1-3.5; and
2925+38 (B) against the trade's or business's adjusted gross income;
2926+39 until the federal net operating loss from the trade or business
2927+40 has been exhausted. When the federal net operating loss from
2928+41 the trade or business has been exhausted, and subject to the
2929+42 limitations of this section, any remaining Indiana net
2930+ES 419—LS 6606/DI 120 66
2931+1 operating loss shall be allowable against any trade or business
2932+2 of the taxpayer.
2933+3 (2) In the case of a corporation described in section 2.8(2) of
2934+4 this chapter, an Indiana net operating loss deduction that is
2935+5 attributable to a preconversion year may not be greater than
2936+6 any net recognized built-in gain of the corporation as defined
2937+7 in Section 1374(d)(2) of the Internal Revenue Code derived
2938+8 from sources within Indiana.
2939+9 (j) The following rules apply to an Indiana net operating loss:
2940+10 (1) If the taxpayer had a discharge of indebtedness derived
2941+11 from Indiana sources that is excluded from gross income
2942+12 under Section 108(a)(1)(A), Section 108(a)(1)(B), or Section
2943+13 108(a)(1)(C) of the Internal Revenue Code, the Indiana net
2944+14 operating loss shall be reduced by the remainder of:
2945+15 (A) the amount of discharge of indebtedness excluded from
2946+16 federal gross income derived from Indiana sources; minus
2947+17 (B) the amount of discharge of indebtedness derived from
2948+18 Indiana sources that reduced the tax attributes under
2949+19 Section 108(b)(2)(D), Section 108(b)(2)(E), or Section
2950+20 108(b)(2)(F) of the Internal Revenue Code or was applied
2951+21 for federal tax purposes under Section 108(b)(5) of the
2952+22 Internal Revenue Code.
2953+23 (2) Any reduction in an Indiana net operating loss shall be
2954+24 first applied to the Indiana net operating loss for the taxable
2955+25 year of the discharge, and then to any Indiana net operating
2956+26 loss carryovers.
2957+27 (3) The provisions of Section 108(d)(6) and Section 108(d)(7)
2958+28 of the Internal Revenue Code shall apply to any discharge of
2959+29 indebtedness for purposes of determining the reduction of net
2960+30 operating losses under this section.
2961+31 (k) If a taxpayer has an ownership change for which the
2962+32 limitations of net operating losses under Section 382 of the Internal
2963+33 Revenue Code apply, the following shall apply:
2964+34 (1) The amount a taxpayer may claim as an Indiana net
2965+35 operating loss deduction for a taxable year beginning after
2966+36 December 31, 2022, shall not exceed the limitation imposed by
2967+37 Section 382(b)(1) of the Internal Revenue Code multiplied by
2968+38 the apportionment percentage determined under section 2 of
2969+39 this chapter for the year in which the net operating loss is
2970+40 being claimed, unless otherwise provided by this subsection.
2971+41 The following apply:
2972+42 (A) The limitation under this subdivision does not apply to
2973+ES 419—LS 6606/DI 120 67
2974+1 adjusted gross income accrued in the portion of the taxable
2975+2 year on or before the change date (as defined in Section
2976+3 382(j) of the Internal Revenue Code). For purposes of this
2977+4 subdivision, the adjusted gross income of the taxpayer
2978+5 shall be multiplied by the number of days in the taxable
2979+6 year on or before the change date to the number of days in
2980+7 the taxable year.
2981+8 (B) For the portion of the taxable year after the change
2982+9 date (as defined in Section 382(j) of the Internal Revenue
2983+10 Code), the limitation under this subdivision shall be the
2984+11 limitation otherwise computed in this subdivision
2985+12 multiplied by the number of days in the taxable year after
2986+13 the change date to the number of days in the taxable year.
2987+14 (2) If a taxpayer's Indiana net operating loss determined
2988+15 under this subsection is not fully deductible as a result of
2989+16 subsection (e) for a taxable year, the limitation under this
2990+17 subsection for the following taxable year shall be increased by
2991+18 the net operating loss determined but not allowable as a
2992+19 deduction for the taxable year.
2993+20 (3) If the continuity of business requirements under Section
2994+21 382(c) of the Internal Revenue Code are not met, the Indiana
2995+22 net operating loss available for carryforward shall be zero (0)
2996+23 except to the extent of recognized built in gains derived from
2997+24 Indiana sources and amounts allowable under subdivision (2).
2998+25 (4) If the limitation under Section 382(b) of the Internal
2999+26 Revenue Code is increased for a taxable year under Section
3000+27 382(h) of the Internal Revenue Code, the limitation under
3001+28 subdivision (1) for that taxable year shall be increased by the
3002+29 federal increase in the net operating loss limitation for the
3003+30 taxable year multiplied by the Indiana apportionment
3004+31 percentage for that taxable year.
3005+32 (5) For purposes of any other matters not provided for in
3006+33 subdivisions (1) through (4), the taxpayer and the department
3007+34 are required to apply the limitations and rules under Section
3008+35 382 of the Internal Revenue Code in a manner consistent with
3009+36 this subsection.
3010+37 (6) This subsection applies to a taxpayer regardless of
3011+38 whether the taxpayer actually has a federal net operating loss
3012+39 subject to Section 382 of the Internal Revenue Code or
3013+40 whether any federal net operating losses have been exhausted.
3014+41 (l) If two (2) or more corporations file a consolidated return
3015+42 under IC 6-3-4-14 or a combined return under this chapter and
3016+ES 419—LS 6606/DI 120 68
3017+1 have an Indiana net operating loss on a consolidated or combined
3018+2 basis for a taxable year:
3019+3 (1) the Indiana net operating loss attributable to each
3020+4 corporation included in the consolidated or combined return
3021+5 shall be determined in a manner consistent with the
3022+6 attribution of federal net operating losses for consolidated
3023+7 groups as provided under the Internal Revenue Code and
3024+8 regulations promulgated thereunder;
3025+9 (2) the application of Indiana net operating losses and
3026+10 reduction of losses attributable to each member shall be in a
3027+11 manner consistent with the application and reduction of
3028+12 federal net operating losses for consolidated groups as
3029+13 provided under the Internal Revenue Code and regulations
3030+14 promulgated thereunder; and
3031+15 (3) the availability of net operating losses to each corporation
3032+16 upon an ownership change or change in filing status shall be
3033+17 in a manner consistent with the availability and use of federal
3034+18 net operating losses for consolidated groups as provided
3035+19 under the Internal Revenue Code and regulations
3036+20 promulgated thereunder.
3037+21 (m) The following apply for purposes of calculating an Indiana
3038+22 net operating loss under subsection (c):
3039+23 (1) An itemized deduction shall be applied first under
3040+24 subsection (c)(1), and any amount not applied under
3041+25 subsection (c)(1) to make the net operating loss equal to zero
3042+26 (0) shall be applied under subsection (c)(2).
3043+27 (2) In the case of a modification under IC 6-3-1-3.5 required
3044+28 to modify a separately stated net operating loss or a
3045+29 preliminary federal net operating loss, the amount of the
3046+30 modification may not exceed the amount prescribed under
3047+31 IC 6-3-1-3.5 and must be applied in the following order:
3048+32 (A) Against a separately stated net operating loss under
3049+33 subsection (c)(1)(B), but only to the extent necessary to
3050+34 increase the separately stated net operating loss, after
3051+35 application of subsection (c)(1)(A) and (c)(1)(B), to an
3052+36 amount not greater than zero (0).
3053+37 (B) Against a separately stated net operating loss under
3054+38 subsection (c)(1)(C), but only to the extent necessary to
3055+39 increase the separately stated net operating loss to an
3056+40 amount not greater than zero (0).
3057+41 (C) To compute a modification to a preliminary federal net
3058+42 operating loss under subsection (c)(2).
3059+ES 419—LS 6606/DI 120 69
3060+1 SECTION 28. IC 6-3-2-2.8, AS AMENDED BY P.L.1-2023,
3061+2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3062+3 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.8. Notwithstanding any
3063+4 provision of IC 6-3-1 through IC 6-3-7, there shall be no tax on the
3064+5 adjusted gross income of the following:
3065+6 (1) Any organization described in Section 501(a) of the Internal
3066+7 Revenue Code, except that any income of such organization
3067+8 which is subject to income tax under the Internal Revenue Code
3068+9 shall be subject to the tax under IC 6-3-1 through IC 6-3-7.
3069+10 (2) Any corporation which is exempt from income tax under
3070+11 Section 1363 of the Internal Revenue Code and which complies
3071+12 with the requirements of IC 6-3-4-13. However, income of a
3072+13 corporation described under this subdivision that is subject to
3073+14 income tax under the Internal Revenue Code is subject to the tax
3074+15 under IC 6-3-1 through IC 6-3-7. A corporation will not lose its
3075+16 exemption under this section because it fails to comply with
3076+17 IC 6-3-4-13 but it will be subject to the penalties provided by
3077+18 IC 6-8.1-10. Any corporation that is exempt from income tax
3078+19 under Section 1363 of the Internal Revenue Code and that makes
3079+20 an election under IC 6-3-2.1 for a taxable year shall be subject to
3080+21 tax as provided in IC 6-3-2.1 for the taxable year of the election.
3081+22 (3) Banks and trust companies, national banking associations,
3082+23 savings banks, building and loan associations, and savings and
3083+24 loan associations.
3084+25 (4) Insurance companies or organizations offering nonprofit
3085+26 agricultural organization insurance coverage subject to tax
3086+27 under any of the following:
3087+28 (A) IC 27-1-18-2, including a domestic insurance company
3088+29 that elects to be taxed under IC 27-1-18-2.
3089+30 (B) IC 27-1-2-2.3.
3090+31 (C) IC 6-8-15, unless a nonprofit agricultural organization:
3091+32 (i) files a notice of election with the insurance
3092+33 commissioner and the commissioner of the department
3093+34 on or before November 30 of a taxable year; and
3094+35 (ii) states in the notice of election that the organization
3095+36 elects to be subject to the tax imposed under IC 6-3-1
3096+37 through IC 6-3-7 for the taxable year.
3097+38 (5) International banking facilities (as defined in Regulation D of
3098+39 the Board of Governors of the Federal Reserve System (12 CFR
3099+40 204)).
3100+41 SECTION 29. IC 6-3-2-21.7, AS AMENDED BY P.L.130-2018,
3101+42 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3102+ES 419—LS 6606/DI 120 70
3103+1 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 21.7. (a) This section
3104+2 applies to a qualified patent issued to a taxpayer after December 31,
3105+3 2007.
3106+4 (b) As used in this section, "invention" has the meaning set forth in
3107+5 35 U.S.C. 100(a).
3108+6 (c) As used in this section, "qualified patent" means:
3109+7 (1) a utility patent issued under 35 U.S.C. 101; or
3110+8 (2) a plant patent issued under 35 U.S.C. 161;
3111+9 after December 31, 2007, for an invention resulting from a
3112+10 development process conducted in Indiana. The term does not include
3113+11 a design patent issued under 35 U.S.C. 171.
3114+12 (d) As used in this section, "qualified taxpayer" means a taxpayer
3115+13 that on the effective filing date of the claimed invention:
3116+14 (1) is: either:
3117+15 (A) an individual, or corporation, if the number of employees
3118+16 of the individual, or corporation, including affiliates as
3119+17 specified in 13 CFR 121.103, does not exceed five hundred
3120+18 (500) persons; or
3121+19 (B) a corporation, if the number of employees of the
3122+20 corporation, including affiliates as specified in 13 CFR
3123+21 121.103, does not exceed five hundred (500) persons; or
3124+22 (B) (C) a nonprofit organization or nonprofit corporation as
3125+23 specified in:
3126+24 (i) 37 CFR 1.27(a)(3)(ii)(A) or 37 CFR 1.27(a)(3)(ii)(B); or
3127+25 (ii) IC 23-17; and
3128+26 (2) is domiciled in Indiana.
3129+27 For purposes of subdivision (1)(A), an individual shall not be
3130+28 considered to meet the requirements under subdivision (1)(A) as a
3131+29 result of the individual's interest in a partnership, S corporation,
3132+30 trust, estate, or other entity. For purposes of subdivision (1)(B), a
3133+31 corporation includes a corporation described in section 2.8(2) of
3134+32 this chapter.
3135+33 (e) Subject to subsections (g) and (h), in determining adjusted gross
3136+34 income or taxable income under IC 6-3-1-3.5 or IC 6-5.5-1-2, a
3137+35 qualified taxpayer is entitled to an exemption from taxation under
3138+36 IC 6-3-1 through IC 6-3-7 for the following:
3139+37 (1) Licensing fees or other income received for the use of a
3140+38 qualified patent.
3141+39 (2) Royalties received for the infringement of a qualified patent.
3142+40 (3) Receipts from the sale of a qualified patent.
3143+41 (4) Subject to subsection (f), income from the taxpayer's own use
3144+42 of the taxpayer's qualified patent to produce the claimed
3145+ES 419—LS 6606/DI 120 71
3146+1 invention.
3147+2 (f) The exemption provided by subsection (e)(4) may not exceed the
3148+3 fair market value of the licensing fees or other income that would be
3149+4 received by allowing use of the qualified taxpayer's qualified patent by
3150+5 someone other than the taxpayer. The fair market value referred to in
3151+6 this subsection must be determined in each taxable year in which the
3152+7 qualified taxpayer claims an exemption under subsection (e)(4).
3153+8 (g) The total amount of exemptions claimed under this section by a
3154+9 qualified taxpayer in a taxable year may not exceed five million dollars
3155+10 ($5,000,000).
3156+11 (h) A taxpayer may not claim an exemption under this section with
3157+12 respect to a particular qualified patent for more than ten (10) taxable
3158+13 years. Subject to the provisions of this section, the following amount of
3159+14 the income, royalties, or receipts described in subsection (e) from a
3160+15 particular qualified patent is exempt:
3161+16 (1) Fifty percent (50%) for each of the first five (5) taxable years
3162+17 in which the exemption is claimed for the qualified patent.
3163+18 (2) Forty percent (40%) for the sixth taxable year in which the
3164+19 exemption is claimed for the qualified patent.
3165+20 (3) Thirty percent (30%) for the seventh taxable year in which the
3166+21 exemption is claimed for the qualified patent.
3167+22 (4) Twenty percent (20%) for the eighth taxable year in which the
3168+23 exemption is claimed for the qualified patent.
3169+24 (5) Ten percent (10%) each year for the ninth and tenth taxable
3170+25 year in which the exemption is claimed for the qualified patent.
3171+26 (6) No exemption under this section for the particular qualified
3172+27 patent after the eleventh taxable year in which the exemption is
3173+28 claimed for the qualified patent.
3174+29 (i) For purposes of subsection (h):
3175+30 (1) a taxpayer is not required to claim the exemption under
3176+31 this section in the first year after which the patent was issued;
3177+32 (2) the years in which the exemption under this section is
3178+33 claimed are not required to be consecutive taxable years;
3179+34 (3) if a qualified taxpayer claims an exemption under this
3180+35 section on the taxpayer's return for a taxable year, the
3181+36 taxpayer may not file an amended return to reverse the
3182+37 claimed exemption unless the correct amount of the claimed
3183+38 exemption would have been zero (0);
3184+39 (4) if a qualified taxpayer does not claim an exemption under
3185+40 this section on the taxpayer's return for a taxable year, the
3186+41 taxpayer may not file an amended return to claim an
3187+42 exemption; and
3188+ES 419—LS 6606/DI 120 72
3189+1 (5) if a qualified taxpayer files returns claiming an exemption
3190+2 under this section with regard to a particular qualified patent
3191+3 for more than ten (10) years, the statute of limitations for
3192+4 assessment of the qualified taxpayer and any entities claiming
3193+5 an exemption through a qualified taxpayer for taxable years
3194+6 after the tenth taxable year for which the exemption is
3195+7 claimed for the qualified patent shall not expire with regard
3196+8 to any claimed exemption.
3197+9 (i) (j) To receive the exemption provided by this section, a qualified
3198+10 taxpayer must claim the exemption on the qualified taxpayer's annual
3199+11 state tax return or returns in the manner prescribed by the department.
3200+12 The qualified taxpayer shall submit to the department all information
3201+13 that the department determines is necessary for the determination of the
3202+14 exemption provided by this section.
3203+15 (j) (k) The department shall determine, record, and retain the North
3204+16 American Industry Classification System code for each taxpayer
3205+17 claiming an exemption under this section.
3206+18 (l) In the case of a corporation described in section 2.8(2) of this
3207+19 chapter that is a qualified taxpayer, the corporation may pass
3208+20 through the exemption under this section to its shareholders in
3209+21 proportion with their ownership of the corporation. For purposes
3210+22 of applying this subsection to a corporation described in section
3211+23 2.8(2) of this chapter and its shareholders:
3212+24 (1) the limitation on the exemption for qualified patent income
3213+25 shall be applied at the corporation level; and
3214+26 (2) the period in which the exemption can be claimed and the
3215+27 years for which the exemption is claimed shall be determined
3216+28 at the corporation level.
3217+29 SECTION 30. IC 6-3-2-27.5 IS ADDED TO THE INDIANA CODE
3218+30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3219+31 JANUARY 1, 2024]: Sec. 27.5. (a) As used in this section,
3220+32 "compensation" means any wages, salaries, tips, or similar income
3221+33 that is subject to the withholding requirements under IC 6-3-4-8,
3222+34 or would otherwise be subject to the withholding requirements
3223+35 under IC 6-3-4-8 if not for the application of:
3224+36 (1) IC 6-3-4-8(d);
3225+37 (2) IC 6-3-5; or
3226+38 (3) this section.
3227+39 (b) As used in this section, "professional athlete" means:
3228+40 (1) an athlete, other than a team member (as defined in
3229+41 section 2.7(a)(4) of this chapter) or a race team member (as
3230+42 defined in section 3.2(a)(4) of this chapter), who performs
3231+ES 419—LS 6606/DI 120 73
3232+1 services in a professional athletic event for compensation;
3233+2 (2) a team member (as defined in section 2.7(a)(4) of this
3234+3 chapter) who has at least one (1) duty day in Indiana during
3235+4 a taxable year; or
3236+5 (3) a race team member (as defined in section 3.2(a)(4) of this
3237+6 chapter) who has at least one (1) duty day in Indiana during
3238+7 a taxable year.
3239+8 (c) As used in this section, "professional entertainer" means a
3240+9 person who performs services in the professional performing arts
3241+10 for compensation on a per-event basis.
3242+11 (d) As used in this section, "public figure" means a person of
3243+12 prominence who performs services at discrete events, including
3244+13 speeches, public appearances, and similar events, for compensation
3245+14 on a per-event basis.
3246+15 (e) As used in this section, "time and attendance system" means
3247+16 a system:
3248+17 (1) through which an employee is required, on a
3249+18 contemporaneous basis, to record the employee's work
3250+19 location for each day worked outside the state in which the
3251+20 employee's employment duties are primarily performed; and
3252+21 (2) which is designed to allow the employer to allocate the
3253+22 employee's compensation for income tax purposes among all
3254+23 states in which the employee performs employment duties.
3255+24 (f) Except as provided in subsection (j), compensation is exempt
3256+25 from the adjusted gross income tax imposed under this article and
3257+26 IC 6-3.6 if all of the following conditions are met:
3258+27 (1) The individual is not a resident of Indiana at any time
3259+28 during the calendar year in which the employee performs
3260+29 employment duties.
3261+30 (2) The individual receives compensation for employment
3262+31 duties performed by the individual in Indiana for thirty (30)
3263+32 days or less during the calendar year.
3264+33 (3) The compensation is not paid for employment duties
3265+34 performed by the individual in the individual's capacity as a
3266+35 professional athlete, professional entertainer, or public figure.
3267+36 (g) Except as otherwise provided in this section, an employer is
3268+37 not required to withhold taxes imposed under this article or
3269+38 IC 6-3.6 from compensation paid to an employee described in
3270+39 subsection (f). However, if the number of days that an employee
3271+40 performs employment duties in Indiana exceeds thirty (30) days,
3272+41 the employer shall withhold and remit tax to the state of Indiana
3273+42 from all compensation paid to the employee for every day on which
3274+ES 419—LS 6606/DI 120 74
3275+1 the employee performed employment duties in Indiana, including
3276+2 the first thirty (30) days.
3277+3 (h) The department may not require payment of any penalties
3278+4 otherwise applicable for a failure to deduct and withhold income
3279+5 taxes under IC 6-3-4-8, if, when making the determination of
3280+6 whether withholding was required, either of the following applied:
3281+7 (1) The employer relied on a time and attendance system
3282+8 maintained by the employer specifically designed to allocate
3283+9 employee wages for income tax purposes among all taxing
3284+10 jurisdictions in which the employee performs employment
3285+11 duties for the employer.
3286+12 (2) The employer did not maintain a time and attendance
3287+13 system and the employer relied on the employee's annual
3288+14 determination of the time the employee expected to spend
3289+15 performing employment duties in Indiana, if:
3290+16 (A) the employer did not have actual knowledge of fraud
3291+17 on the part of the employee in making the determination;
3292+18 and
3293+19 (B) the employer and the employee did not collude to evade
3294+20 taxation in making the determination.
3295+21 An employer's maintaining of records as described in subdivision
3296+22 (1) does not preclude an employer's ability to rely on an employee's
3297+23 determination of the time the employee expected to spend
3298+24 performing employment duties in Indiana as described in
3299+25 subdivision (2) when making the determination of whether
3300+26 withholding is required.
3301+27 (i) For purposes of this section:
3302+28 (1) subject to subdivision (3), an employee shall be considered
3303+29 present and performing employment duties within Indiana if
3304+30 the employee performs more of the employee's employment
3305+31 duties within Indiana than in any other state during a
3306+32 particular day;
3307+33 (2) any portion of the day during which an employee is in
3308+34 transit may not be considered in determining the location of
3309+35 the employee's performance of employment duties; and
3310+36 (3) if an employee performs employment duties in the
3311+37 employee's state of residence and in only one (1) nonresident
3312+38 state during a particular day, the employee shall be
3313+39 considered to have performed more of the employee's
3314+40 employment duties in the nonresident state than in the state
3315+41 of residence for that day.
3316+42 (j) The following apply for purposes of this section:
3317+ES 419—LS 6606/DI 120 75
3318+1 (1) If an individual receives compensation for employment
3319+2 duties performed by the individual both:
3320+3 (A) in the individual's capacity as a professional athlete,
3321+4 professional entertainer, or public figure; and
3322+5 (B) in some capacity other than the individual's capacity as
3323+6 a professional athlete, professional entertainer, or public
3324+7 figure;
3325+8 the exemption under this section may not be applied to the
3326+9 portion of compensation described in clause (B).
3327+10 (2) If an employee is working at a location other than a
3328+11 physical location of the employer, the employee shall be
3329+12 considered to be working in the state or states in which the
3330+13 services for the employer are performed, regardless of the
3331+14 physical location of the employer.
3332+15 (3) If an individual performs employment duties in Indiana
3333+16 for more than thirty (30) days during a calendar year,
3334+17 compensation received by the individual is not eligible for the
3335+18 exemption under this section.
3336+19 (4) If an individual performs substantially similar job duties
3337+20 for an employer both while designated as an employee and in
3338+21 some capacity other than as an employee during a calendar
3339+22 year, the number of days for which the individual shall be
3340+23 considered to have worked in Indiana with regard to that
3341+24 employer must be determined by aggregating the days for
3342+25 which the individual performed duties for the employer,
3343+26 whether designated as an employee or not.
3344+27 (5) If an employer or individual reasonably believes that an
3345+28 individual is an employee for a calendar year but the
3346+29 individual is later determined to not be an employee, the
3347+30 individual:
3348+31 (A) is subject to tax under this article and IC 6-3.6 on any
3349+32 income that otherwise would have been exempt under this
3350+33 section; and
3351+34 (B) is not subject to penalties under IC 6-3-4-4.1 or
3352+35 IC 6-8.1-10-2.1 based on the inclusion of amounts claimed
3353+36 as exempt under this section as income.
3354+37 (6) If an individual is not a resident of Indiana, amounts paid
3355+38 for vacation, sick, personal, or any other type of leave may not
3356+39 be considered as compensation in Indiana, and any day for
3357+40 which a type of leave is used may not be considered as a day
3358+41 for which the individual performed services for an employer
3359+42 unless the individual performed services for the employer in
3360+ES 419—LS 6606/DI 120 76
3361+1 Indiana on that day and the day would otherwise be counted
3362+2 as a day of services performed in Indiana under this section.
3363+3 (7) The exemption provided under this section shall not apply
3364+4 to an individual's compensation that is deferred or delayed
3365+5 from a previous calendar year to a subsequent calendar year
3366+6 unless:
3367+7 (A) the individual was exempt from taxation under this
3368+8 section on the compensation for the calendar year in which
3369+9 the compensation was earned; and
3370+10 (B) the individual is not a resident of Indiana when the
3371+11 individual includes the compensation in the individual's
3372+12 federal gross income.
3373+13 (k) Nothing in this section may be construed to prevent an
3374+14 individual from being considered a local taxpayer (as defined in
3375+15 IC 6-3.6-2-13(2)), regardless of whether the individual's
3376+16 compensation is exempt under this section.
3377+17 SECTION 31. IC 6-3-2-28 IS ADDED TO THE INDIANA CODE
3378+18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3379+19 JANUARY 1, 2024]: Sec. 28. (a) The following definitions apply
3380+20 throughout this section:
3381+21 (1) "Health care sharing ministry" has the meaning set forth
3382+22 in IC 27-1-2.1-1.
3383+23 (2) "Qualified health care sharing expenses" means the
3384+24 amount paid by a qualified individual for membership in a
3385+25 health care sharing ministry.
3386+26 (3) "Qualified individual" means an individual who is:
3387+27 (A) a resident of Indiana; and
3388+28 (B) a member of a health care sharing ministry for at least
3389+29 one (1) month during a taxable year for which the qualified
3390+30 individual claims a deduction under this section.
3391+31 (b) Each taxable year, a qualified individual is entitled to a
3392+32 deduction from the qualified individual's adjusted gross income for
3393+33 the taxable year equal to the total amount of qualified health care
3394+34 sharing expenses paid by the qualified individual during the
3395+35 taxable year.
3396+36 (c) To receive the deduction allowed by this section, a qualified
3397+37 individual must claim the deduction on the qualified individual's
3398+38 annual state tax return or returns in the manner prescribed by the
3399+39 department. The qualified individual shall submit to the
3400+40 department any information that the department determines is
3401+41 necessary to calculate the amount of the deduction allowed by this
3402+42 section.
3403+ES 419—LS 6606/DI 120 77
3404+1 SECTION 32. IC 6-3-2-29 IS ADDED TO THE INDIANA CODE
3405+2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3406+3 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 29. (a) As used in this
3407+4 section, "specified research or experimental expenditures" means
3408+5 specified research or experimental expenditures (as defined in
3409+6 Section 174(b) of the Internal Revenue Code) that the taxpayer is
3410+7 required to charge to capital account under Section 174(a)(2) of the
3411+8 Internal Revenue Code. The term does not include expenditures for
3412+9 which a deduction is disallowed as a result of Section 280C(c) of the
3413+10 Internal Revenue Code.
3414+11 (b) Except as otherwise provided in this section, for taxable
3415+12 years beginning after December 31, 2021, a taxpayer, in
3416+13 determining the taxpayer's adjusted gross income for a particular
3417+14 taxable year, shall:
3418+15 (1) deduct from the taxpayer's adjusted gross income an
3419+16 amount equal to the specified research or experimental
3420+17 expenditures charged to capital account under Section
3421+18 174(a)(2)(A) of the Internal Revenue Code for the taxable
3422+19 year; and
3423+20 (2) add to the taxpayer's adjusted gross income the amount
3424+21 deducted under Section 174(a)(2)(B) of the Internal Revenue
3425+22 Code for the taxable year.
3426+23 (c) In the case of a taxpayer that owns an interest in a
3427+24 partnership or corporation described in section 2.8(2) of this
3428+25 chapter, the amount that must be deducted under subsection (b)(1)
3429+26 for a particular taxable year may not exceed the sum of:
3430+27 (1) the taxpayer's adjusted basis in the partnership or
3431+28 corporation for federal tax purposes, as determined at the end
3432+29 of the taxpayer's taxable year and after application of any
3433+30 expenses, deductions, or losses; plus
3434+31 (2) the amount of any specified research or experimental
3435+32 expenditures claimed as a deduction under Section 174 of the
3436+33 Internal Revenue Code in determining the taxpayer's federal
3437+34 adjusted gross income for the taxable year.
3438+35 (d) A deduction or part of a deduction that is disallowed under
3439+36 subsection (c) must be:
3440+37 (1) carried forward to the subsequent taxable year;
3441+38 (2) treated as a specified research or experimental
3442+39 expenditure that is paid or incurred in the subsequent taxable
3443+40 year; and
3444+41 (3) applied under subsection (c) against the adjusted basis of
3445+42 the partnership or corporation for the subsequent taxable
3446+ES 419—LS 6606/DI 120 78
3447+1 year.
3448+2 (e) If a taxpayer is eligible for a deduction under subsection
3449+3 (b)(1), but the deduction would be treated as a passive deduction
3450+4 under Section 469 of the Internal Revenue Code, the amount that
3451+5 may be deducted under subsection (b)(1) for a particular taxable
3452+6 year may not exceed the sum of:
3453+7 (1) the amount of the taxpayer's passive income, as
3454+8 determined for federal tax purposes, after application of any
3455+9 passive losses or deductions for the taxable year and after
3456+10 application of any passive loss carryovers for the taxable year,
3457+11 but not less than zero (0); plus
3458+12 (2) the amount of any specified research or experimental
3459+13 expenditures claimed as a deduction under Section 174 of the
3460+14 Internal Revenue Code in determining the taxpayer's federal
3461+15 adjusted gross income for the taxable year.
3462+16 The requirements under this subsection must be applied after
3463+17 application of subsections (c) and (d). Any deduction or part of a
3464+18 deduction that is disallowed under this subsection must be carried
3465+19 forward to the subsequent taxable year and treated as a specified
3466+20 research or experimental expenditure that is paid or incurred in
3467+21 the subsequent taxable year from a trade or business that is a
3468+22 passive activity for the taxpayer.
3469+23 (f) If, before the effective date of this section, a taxpayer:
3470+24 (1) is a pass through entity; and
3471+25 (2) filed a return either:
3472+26 (A) for a taxable year beginning before January 1, 2023,
3473+27 that reported tax under IC 6-3-2.1 as an electing entity; or
3474+28 (B) for a taxable year beginning before January 1, 2023,
3475+29 passing through the tax paid under IC 6-3-2.1 by another
3476+30 entity on the taxpayer's behalf as pass through entity to its
3477+31 owners;
3478+32 the taxpayer shall report the adjusted gross income subject to pass
3479+33 through entity tax for purposes of IC 6-3-2.1 as if the modification
3480+34 under this section was not in effect for taxable years beginning
3481+35 before January 1, 2023. The taxpayer shall report the
3482+36 modifications otherwise required under this section to its partners,
3483+37 shareholders, or beneficiaries for the taxable year in the manner
3484+38 prescribed under this article.
3485+39 (g) The modifications required under this section are not
3486+40 applicable if a taxpayer is not required under federal law to charge
3487+41 specified research or experimental expenditures to capital account
3488+42 in determining federal adjusted gross income, regardless of
3489+ES 419—LS 6606/DI 120 79
3490+1 whether the taxpayer elects to charge research or experimental
3491+2 expenditures to capital account.
3492+3 SECTION 33. IC 6-3-2.1-2, AS ADDED BY P.L.1-2023, SECTION
3493+4 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
3494+5 1, 2022 (RETROACTIVE)]: Sec. 2. The following definitions apply
3495+6 throughout this chapter:
3496+7 (1) "Electing entity" means a pass through entity described in
3497+8 IC 6-3-1-35 that is subject to Subchapter K or Subchapter S of the
3498+9 Internal Revenue Code and makes the election under this chapter.
3499+10 (2) "Entity owner" means the direct or indirect owners of an
3500+11 electing entity that are ultimately taxable on the entity's income
3501+12 under Subchapter K or Subchapter S of the Internal Revenue
3502+13 Code, except an owner described in subdivision (4)(A) through
3503+14 (4)(C).
3504+15 (3) "Nonresident" means:
3505+16 (A) a nonresident partner as defined by IC 6-3-4-12(n);
3506+17 (B) a nonresident shareholder as defined by IC 6-3-4-13(n); or
3507+18 (C) a nonresident beneficiary as defined by IC 6-3-4-15(i); or
3508+19 (D) in the case of a shareholder of a corporation described
3509+20 in IC 6-3-2-2.8(2), a corporation described in Section
3510+21 501(c)(3) of the Internal Revenue Code that is exempt from
3511+22 taxation under Section 501(a) of the Internal Revenue
3512+23 Code and that is not domiciled in Indiana;
3513+24 whichever is applicable.
3514+25 (4) "Owner" means a direct or indirect owner of an electing entity
3515+26 and includes a beneficiary of an estate or trust. However an owner
3516+27 shall not include:
3517+28 (A) an entity described in IC 6-3-2-2.8(3) that is not a
3518+29 partnership, a trust, or a corporation described in
3519+30 IC 6-3-2-2.8(2);
3520+31 (B) an entity described in IC 6-3-2-2.8(5); or
3521+32 (C) any other entity as determined by the department and listed
3522+33 in instructions or guidance issued by the department.
3523+34 (5) "Resident" means a partner, shareholder, or beneficiary:
3524+35 (A) that, in the case of an individual, estate, or trust, is a
3525+36 resident of Indiana as defined in IC 6-3-1-12; or
3526+37 (B) that is a partnership or corporation, including a
3527+38 corporation described in IC 6-3-2-2.8(1) or IC 6-3-2-2.8(2),
3528+39 that is domiciled in Indiana.
3529+40 SECTION 34. IC 6-3-2.1-4, AS ADDED BY P.L.1-2023, SECTION
3530+41 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
3531+42 1, 2022 (RETROACTIVE)]: Sec. 4. (a) A tax shall be imposed on the
3532+ES 419—LS 6606/DI 120 80
3533+1 adjusted gross income of an electing entity for the taxable year of the
3534+2 election. The adjusted gross income of the electing entity shall be the
3535+3 aggregate of the direct owners' share of the electing entity's adjusted
3536+4 gross income. For purposes of this section:
3537+5 (1) the electing entity shall determine each nonresident direct
3538+6 owner's share after allocation and apportionment pursuant to
3539+7 IC 6-3-2-2; and
3540+8 (2) the electing entity shall determine the resident direct owner's
3541+9 share either before allocation and apportionment pursuant to
3542+10 IC 6-3-2-2 or after allocation and apportionment pursuant to
3543+11 IC 6-3-2-2. The electing entity must use the same method for all
3544+12 resident direct owners.
3545+13 (b) The tax rate shall be the tax rate specified in IC 6-3-2-1(b) as of
3546+14 the last day of the electing entity's taxable year, and the tax shall be due
3547+15 on the same date as the entity return for the taxable year is due under
3548+16 this article, without regard to extensions.
3549+17 (c) On its return for the taxable year, the electing entity shall attach
3550+18 a schedule showing the calculation of the tax and the credit for each
3551+19 entity direct owner, and remit the tax with the return, taking into
3552+20 account prior estimated tax payments and other tax payments by the
3553+21 electing entity, along with other payments that are credited to the
3554+22 electing entity as tax paid under this chapter or as tax withheld under
3555+23 IC 6-3-4 or IC 6-5.5-2-8. The department may prescribe the form for
3556+24 providing the information required by this section.
3557+25 (d) If a pass through entity makes estimated tax payments, makes
3558+26 other tax payments, or has other payments that are credited to the
3559+27 electing entity as tax paid under this chapter or a tax withheld under
3560+28 IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
3561+29 election under section 3 of this chapter, the pass through entity:
3562+30 (1) may treat pass through entity tax remitted on its behalf under
3563+31 this chapter as pass through entity tax to its direct owners,
3564+32 provided that:
3565+33 (A) the tax is designated on a schedule similar to the schedule
3566+34 required under subsection (c) and is reported to the direct
3567+35 owners in the manner provided in section 5 of this chapter; and
3568+36 (B) the pass through entity credits an amount to a direct owner
3569+37 no greater than the tax that otherwise would be due under this
3570+38 chapter on their share of the adjusted gross income from the
3571+39 pass through entity or the direct owner's portion (as
3572+40 determined under subsection (a)) of the pass through entity tax
3573+41 passed through to the pass through entity, whichever is greater
3574+42 (for purposes of this clause, a trust or estate shall compute the
3575+ES 419—LS 6606/DI 120 81
3576+1 tax in the same manner as an electing entity);
3577+2 (2) shall treat any payment other than a payment designated under
3578+3 subdivision (1) as a withholding tax payment under IC 6-3-4-12,
3579+4 IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
3580+5 through entity otherwise has not remitted or been credited with
3581+6 such withholding; and
3582+7 (3) may request a refund of any payment in excess of the amounts
3583+8 credited or designated under subdivision (1) or (2).
3584+9 (e) If a pass through entity elects to be subject to tax under this
3585+10 chapter and the pass through entity determines that the pass
3586+11 through entity's tax is less than the pass through entity tax that is
3587+12 paid on the pass through entity's behalf, the pass through entity
3588+13 may treat the tax paid on the pass through entity's behalf in a
3589+14 manner similar to subsection (d). However, the pass through entity
3590+15 may not treat an amount less than its own liability under this
3591+16 chapter as pass through entity tax under subsection (d)(1).
3592+17 SECTION 35. IC 6-3-3-12, AS AMENDED BY P.L.122-2022,
3593+18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3594+19 JANUARY 1, 2024]: Sec. 12. (a) As used in this section, "account" has
3595+20 the meaning set forth in IC 21-9-2-2.
3596+21 (b) As used in this section, "account beneficiary" has the meaning
3597+22 set forth in IC 21-9-2-3.
3598+23 (c) As used in this section, "account owner" has the meaning set
3599+24 forth in IC 21-9-2-4.
3600+25 (d) As used in this section, "college choice 529 education savings
3601+26 plan" refers to a college choice 529 plan established under IC 21-9.
3602+27 (e) As used in this section, "contribution" means the amount of
3603+28 money directly provided to a college choice 529 education savings plan
3604+29 account by a taxpayer. A contribution does not include any of the
3605+30 following:
3606+31 (1) Money credited to an account as a result of bonus points or
3607+32 other forms of consideration earned by the taxpayer that result in
3608+33 a transfer of money to the account.
3609+34 (2) Money transferred from any other qualified tuition program
3610+35 under Section 529 of the Internal Revenue Code or from any other
3611+36 similar plan.
3612+37 (3) Money transferred from any qualified ABLE program under
3613+38 Section 529A of the Internal Revenue Code or any other similar
3614+39 plan.
3615+40 (f) As used in this section, "nonqualified withdrawal" means a
3616+41 withdrawal or distribution from a college choice 529 education savings
3617+42 plan that is not a qualified withdrawal.
3618+ES 419—LS 6606/DI 120 82
3619+1 (g) As used in this section, "qualified higher education expenses"
3620+2 has the meaning set forth in IC 21-9-2-19.5, except that the term does
3621+3 not include qualified education loan repayments under Section
3622+4 529(c)(9) of the Internal Revenue Code.
3623+5 (h) As used in this section, "qualified K-12 education expenses"
3624+6 means expenses that are for tuition in connection with enrollment or
3625+7 attendance at an elementary or secondary public, private, or religious
3626+8 school located in Indiana and are permitted under Section 529 of the
3627+9 Internal Revenue Code.
3628+10 (i) As used in this section, "qualified withdrawal" means a
3629+11 withdrawal or distribution from a college choice 529 education savings
3630+12 plan that is made:
3631+13 (1) to pay for qualified higher education expenses, excluding any
3632+14 withdrawals or distributions used to pay for qualified higher
3633+15 education expenses, if the withdrawals or distributions are made
3634+16 from an account of a college choice 529 education savings plan
3635+17 that is terminated within twelve (12) months after the account is
3636+18 opened;
3637+19 (2) as a result of the death or disability of an account beneficiary;
3638+20 (3) because an account beneficiary received a scholarship that
3639+21 paid for all or part of the qualified higher education expenses of
3640+22 the account beneficiary, to the extent that the withdrawal or
3641+23 distribution does not exceed the amount of the scholarship; or
3642+24 (4) by a college choice 529 education savings plan as the result of
3643+25 a transfer of funds by a college choice 529 education savings plan
3644+26 from one (1) third party custodian to another.
3645+27 However, a qualified withdrawal does not include a withdrawal or
3646+28 distribution that will be used for expenses that are for tuition in
3647+29 connection with enrollment or attendance at an elementary or
3648+30 secondary public, private, or religious school unless the school is
3649+31 located in Indiana. A qualified withdrawal does not include a rollover
3650+32 distribution or transfer of assets from a college choice 529 education
3651+33 savings plan to any other qualified tuition program under Section 529
3652+34 of the Internal Revenue Code, to any qualified ABLE program under
3653+35 Section 529A other than an Indiana ABLE 529A savings plan adopted
3654+36 by the state under IC 12-11, or to any other similar plan.
3655+37 (j) As used in this section, "taxpayer" means:
3656+38 (1) an individual filing a single return;
3657+39 (2) a married couple filing a joint return; or
3658+40 (3) for taxable years beginning after December 31, 2019, a
3659+41 married individual filing a separate return.
3660+42 (k) A taxpayer is entitled to a credit against the taxpayer's adjusted
3661+ES 419—LS 6606/DI 120 83
3662+1 gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
3663+2 year equal to the least of the following:
3664+3 (1) The following amount:
3665+4 (A) For taxable years beginning before January 1, 2019, the
3666+5 sum of twenty percent (20%) multiplied by the amount of the
3667+6 total contributions that are made by the taxpayer to an account
3668+7 or accounts of a college choice 529 education savings plan
3669+8 during the taxable year and that will be used to pay for
3670+9 qualified higher education expenses that are not qualified K-12
3671+10 education expenses, plus the lesser of:
3672+11 (i) five hundred dollars ($500); or
3673+12 (ii) ten percent (10%) multiplied by the amount of the total
3674+13 contributions that are made by the taxpayer to an account or
3675+14 accounts of a college choice 529 education savings plan
3676+15 during the taxable year and that will be used to pay for
3677+16 qualified K-12 education expenses.
3678+17 (B) For taxable years beginning after December 31, 2018, the
3679+18 sum of:
3680+19 (i) twenty percent (20%) multiplied by the amount of the
3681+20 total contributions that are made by the taxpayer to an
3682+21 account or accounts of a college choice 529 education
3683+22 savings plan during the taxable year and that are designated
3684+23 to pay for qualified higher education expenses that are not
3685+24 qualified K-12 education expenses; plus
3686+25 (ii) twenty percent (20%) multiplied by the amount of the
3687+26 total contributions that are made by the taxpayer to an
3688+27 account or accounts of a college choice 529 education
3689+28 savings plan during the taxable year and that are designated
3690+29 to pay for qualified K-12 education expenses.
3691+30 (2) One thousand five hundred dollars ($1,500), or seven hundred
3692+31 fifty dollars ($750) in the case of a married individual filing a
3693+32 separate return.
3694+33 (3) The amount of the taxpayer's adjusted gross income tax
3695+34 imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
3696+35 reduced by the sum of all credits (as determined without regard to
3697+36 this section) allowed by IC 6-3-1 through IC 6-3-7.
3698+37 (l) This subsection applies after December 31, 2018. At the time a
3699+38 contribution is made to or a withdrawal is made from an account or
3700+39 accounts of a college choice 529 education savings plan, the person
3701+40 making the contribution or withdrawal shall designate whether the
3702+41 contribution is made for or the withdrawal will be used for:
3703+42 (1) qualified higher education expenses that are not qualified
3704+ES 419—LS 6606/DI 120 84
3705+1 K-12 education expenses; or
3706+2 (2) qualified K-12 education expenses.
3707+3 The Indiana education savings authority (IC 21-9-3) shall use
3708+4 subaccounting to track the designations.
3709+5 (m) A taxpayer who makes a contribution to a college choice 529
3710+6 education savings plan is considered to have made the contribution on
3711+7 the date that:
3712+8 (1) the taxpayer's contribution is postmarked or accepted by a
3713+9 delivery service, for contributions that are submitted to a college
3714+10 choice 529 education savings plan by mail or delivery service; or
3715+11 (2) the taxpayer's electronic funds transfer is initiated, for
3716+12 contributions that are submitted to a college choice 529 education
3717+13 savings plan by electronic funds transfer.
3718+14 (n) A taxpayer is not entitled to a carryback, carryover, or refund of
3719+15 an unused credit.
3720+16 (o) A taxpayer may not sell, assign, convey, or otherwise transfer the
3721+17 tax credit provided by this section.
3722+18 (p) To receive the credit provided by this section, a taxpayer must
3723+19 claim the credit on the taxpayer's annual state tax return or returns in
3724+20 the manner prescribed by the department. The taxpayer shall submit to
3725+21 the department all information that the department determines is
3726+22 necessary for the calculation of the credit provided by this section.
3727+23 (q) An account owner of an account of a college choice 529
3728+24 education savings plan must repay all or a part of the credit in a taxable
3729+25 year in which any nonqualified withdrawal is made from the account.
3730+26 The amount the taxpayer must repay is equal to the lesser of:
3731+27 (1) twenty percent (20%) of the total amount of nonqualified
3732+28 withdrawals made during the taxable year from the account; or
3733+29 (2) the excess of:
3734+30 (A) the cumulative amount of all credits provided by this
3735+31 section that are claimed by any taxpayer with respect to the
3736+32 taxpayer's contributions to the account for all prior taxable
3737+33 years beginning on or after January 1, 2007; over
3738+34 (B) the cumulative amount of repayments paid by the account
3739+35 owner under this subsection for all prior taxable years
3740+36 beginning on or after January 1, 2008.
3741+37 (r) Any required repayment under subsection (q) shall be reported
3742+38 by the account owner on the account owner's annual state income tax
3743+39 return for any taxable year in which a nonqualified withdrawal is made.
3744+40 (s) A nonresident account owner who is not required to file an
3745+41 annual income tax return for a taxable year in which a nonqualified
3746+42 withdrawal is made shall make any required repayment on the form
3747+ES 419—LS 6606/DI 120 85
3748+1 required under IC 6-3-4-1(2). If the nonresident account owner does
3749+2 not make the required repayment, the department shall issue a demand
3750+3 notice in accordance with IC 6-8.1-5-1.
3751+4 (t) The executive director of the Indiana education savings authority
3752+5 shall submit or cause to be submitted to the department a copy of all
3753+6 information returns or statements issued to account owners, account
3754+7 beneficiaries, and other taxpayers for each taxable year with respect to:
3755+8 (1) nonqualified withdrawals made from accounts, including
3756+9 subaccounts of a college choice 529 education savings plan for
3757+10 the taxable year; or
3758+11 (2) account closings for the taxable year.
3759+12 (u) The following apply to contributions made after December
3760+13 31, 2023:
3761+14 (1) For purposes of this section, all or part of a contribution
3762+15 made after the end of a taxable year, and not later than the
3763+16 due date of the taxpayer's adjusted gross income tax return
3764+17 for the taxable year under this article (as determined without
3765+18 regard to any allowable extensions), shall be considered as
3766+19 having been made during the taxable year preceding the
3767+20 contribution if:
3768+21 (A) the taxpayer elects to treat all or part of a contribution
3769+22 as occurring in the taxable year preceding the
3770+23 contribution;
3771+24 (B) the taxpayer designates the amounts of the
3772+25 contribution to be treated as occurring in each taxable
3773+26 year, in the case of a single contribution that is to be
3774+27 allowable under this section in two (2) separate years; and
3775+28 (C) the taxpayer irrevocably waives the right to claim the
3776+29 contribution claimed in the taxable year preceding the
3777+30 contribution as occurring in the taxable year of the
3778+31 contribution.
3779+32 (2) An irrevocable election under this subsection must be
3780+33 made in writing at the time the contribution is made.
3781+34 (3) An election under this subsection shall be made in a
3782+35 manner as prescribed by the Indiana education savings
3783+36 authority.
3784+37 (4) The Indiana education savings authority may prescribe
3785+38 any forms necessary for purposes of this subsection.
3786+39 SECTION 36. IC 6-3-3-12.1, AS AMENDED BY THE
3787+40 TECHNICAL CORRECTIONS BILL OF THE 2023 GENERAL
3788+41 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3789+42 JANUARY 1, 2024]: Sec. 12.1. (a) As used in this section, "ABLE
3790+ES 419—LS 6606/DI 120 86
3791+1 account" has the meaning set forth in IC 12-11-14-1.
3792+2 (b) As used in this section, "contribution" means the amount of
3793+3 money directly provided to an Indiana ABLE 529A savings plan
3794+4 account by a taxpayer. A contribution does not include any of the
3795+5 following:
3796+6 (1) Money credited to an ABLE account as a result of bonus
3797+7 points or other forms of consideration earned by the taxpayer that
3798+8 result in a transfer of money to the ABLE account.
3799+9 (2) Money transferred from any qualified ABLE program under
3800+10 Section 529A of the Internal Revenue Code or from any other
3801+11 similar plan.
3802+12 (3) Money transferred from any qualified tuition program under
3803+13 Section 529 of the Internal Revenue Code or from any other
3804+14 similar plan.
3805+15 (c) As used in this section, "designated beneficiary" has the meaning
3806+16 set forth in IC 12-11-14-5.
3807+17 (d) As used in this section, "Indiana ABLE 529A savings plan"
3808+18 refers to the Achieving a Better Life Experience (ABLE) 529A plan
3809+19 established under IC 12-11.
3810+20 (e) As used in this section, "nonqualified withdrawal" means a
3811+21 withdrawal or distribution from an Indiana ABLE 529A savings plan
3812+22 that is not a qualified withdrawal.
3813+23 (f) As used in this section, "qualified disability expense" has the
3814+24 meaning set forth in IC 12-11-14-8.
3815+25 (g) As used in this section, "qualified withdrawal" means a
3816+26 withdrawal or distribution from an Indiana ABLE 529A savings plan
3817+27 that is made:
3818+28 (1) to pay for qualified disability expenses, excluding any
3819+29 withdrawals or distributions used to pay for qualified disability
3820+30 expenses, if the withdrawals or distributions are made from an
3821+31 Indiana ABLE 529A savings plan that is terminated within twelve
3822+32 (12) months after the ABLE account is opened;
3823+33 (2) as a result of the death of a designated beneficiary; or
3824+34 (3) by an Indiana ABLE 529A savings plan as the result of a
3825+35 transfer of funds by an Indiana ABLE 529A savings plan from
3826+36 one (1) third party custodian to another.
3827+37 A qualified withdrawal does not include a rollover distribution or
3828+38 transfer of assets from an Indiana ABLE 529A savings plan to any
3829+39 other qualified ABLE program under Section 529A of the Internal
3830+40 Revenue Code, or to any qualified tuition program under Section 529
3831+41 of the Internal Revenue Code other than a college choice 529 saving
3832+42 education savings plan established under IC 21-9, or to any other
3833+ES 419—LS 6606/DI 120 87
3834+1 similar plan.
3835+2 (h) As used in this section, "taxpayer" means:
3836+3 (1) an individual filing a single return;
3837+4 (2) a married couple filing a joint return; or
3838+5 (3) a married individual filing a separate return.
3839+6 (i) A taxpayer is entitled to a credit against the taxpayer's adjusted
3840+7 gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
3841+8 year equal to the least of the following:
3842+9 (1) Twenty percent (20%) of the amount of the total contributions
3843+10 made by the taxpayer to an ABLE account or accounts of an
3844+11 Indiana ABLE 529A savings plan during the taxable year.
3845+12 (2) Five hundred dollars ($500).
3846+13 (3) The amount of the taxpayer's adjusted gross income tax
3847+14 imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
3848+15 reduced by the sum of all credits (as determined without regard to
3849+16 this section) allowed by IC 6-3-1 through IC 6-3-7.
3850+17 (j) A taxpayer is not entitled to a carryback, carryover, or refund of
3851+18 an unused credit.
3852+19 (k) A taxpayer may not sell, assign, convey, or otherwise transfer the
3853+20 tax credit provided by this section.
3854+21 (l) To receive the credit provided by this section, a taxpayer must
3855+22 claim the credit on the taxpayer's annual state tax return or returns in
3856+23 the manner prescribed by the department. The taxpayer shall submit to
3857+24 the department all information that the department determines is
3858+25 necessary for the calculation of the credit provided by this section.
3859+26 (m) An owner of an ABLE account of an Indiana ABLE 529A
3860+27 savings plan must repay all or a part of the credit in a taxable year in
3861+28 which any nonqualified withdrawal is made from the ABLE account.
3862+29 The amount the taxpayer must repay is equal to the lesser of:
3863+30 (1) twenty percent (20%) of the total amount of nonqualified
3864+31 withdrawals made during the taxable year from the ABLE
3865+32 account; or
3866+33 (2) the excess of:
3867+34 (A) the cumulative amount of all credits provided by this
3868+35 section that are claimed by any taxpayer with respect to the
3869+36 taxpayer's contributions to the ABLE account for all prior
3870+37 taxable years; over
3871+38 (B) the cumulative amount of repayments paid by the owner of
3872+39 the ABLE account under this subsection for all prior taxable
3873+40 years.
3874+41 (n) Any required repayment under subsection (m) must be reported
3875+42 by the owner of the ABLE account on the owner's annual state income
3876+ES 419—LS 6606/DI 120 88
3877+1 tax return for any taxable year in which a nonqualified withdrawal is
3878+2 made.
3879+3 (o) A nonresident owner of an ABLE account who is not required
3880+4 to file an annual income tax return for a taxable year in which a
3881+5 nonqualified withdrawal is made shall make any required repayment on
3882+6 the form required under IC 6-3-4-1(2). If the nonresident owner of the
3883+7 ABLE account does not make the required repayment, the department
3884+8 shall issue a demand notice in accordance with IC 6-8.1-5-1.
3885+9 (p) The executive director of the Indiana ABLE authority shall
3886+10 submit or cause to be submitted to the department a copy of all
3887+11 information returns or statements issued to ABLE account owners,
3888+12 designated beneficiaries, and other taxpayers for each taxable year with
3889+13 respect to:
3890+14 (1) nonqualified withdrawals made from ABLE accounts for the
3891+15 taxable year; or
3892+16 (2) ABLE account closings for the taxable year.
3893+17 (q) The following apply to contributions made after December
3894+18 31, 2023:
3895+19 (1) For purposes of this section, all or part of a contribution
3896+20 made after the end of a taxable year, and not later than the
3897+21 due date of the taxpayer's adjusted gross income tax return
3898+22 for the taxable year under this article (as determined without
3899+23 regard to any allowable extensions), shall be considered as
3900+24 having been made during the taxable year preceding the
3901+25 contribution if:
3902+26 (A) the taxpayer elects to treat all or part of a contribution
3903+27 as occurring in the taxable year preceding the
3904+28 contribution;
3905+29 (B) the taxpayer designates the amounts of the
3906+30 contribution to be treated as occurring in each taxable
3907+31 year, in the case of a single contribution that is to be
3908+32 allowable under this section in two (2) separate years; and
3909+33 (C) the taxpayer irrevocably waives the right to claim the
3910+34 contribution claimed in the taxable year preceding the
3911+35 contribution as occurring in the taxable year of the
3912+36 contribution.
3913+37 (2) An irrevocable election under this subsection must be
3914+38 made in writing at the time the contribution is made.
3915+39 (3) An election under this subsection shall be made in a
3916+40 manner as prescribed by the Indiana ABLE authority.
3917+41 (4) The Indiana ABLE authority may prescribe any forms
3918+42 necessary for purposes of this subsection.
3919+ES 419—LS 6606/DI 120 89
3920+1 SECTION 37. IC 6-3-4-8, AS AMENDED BY P.L.159-2021,
3921+2 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3922+3 JANUARY 1, 2024]: Sec. 8. (a) Except as provided in IC 6-3-2-27.5
3923+4 and subsection (d), every employer making payments of wages subject
3924+5 to tax under this article, regardless of the place where such payment is
3925+6 made, who is required under the provisions of the Internal Revenue
3926+7 Code to withhold, collect, and pay over income tax on wages paid by
3927+8 such employer to such employee, shall, at the time of payment of such
3928+9 wages, deduct and retain therefrom the amount prescribed in
3929+10 withholding instructions issued by the department. The department
3930+11 shall base its withholding instructions on the adjusted gross income tax
3931+12 rate for persons, on the total local income tax rate that the taxpayer is
3932+13 subject to under IC 6-3.6, and on the total amount of exclusions the
3933+14 taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
3934+15 However, the withholding instructions on the adjusted gross income of
3935+16 a nonresident alien (as defined in Section 7701 of the Internal Revenue
3936+17 Code) are to be based on applying not more than one (1) withholding
3937+18 exclusion, regardless of the total number of exclusions that
3938+19 IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
3939+20 on the taxpayer's final return for the taxable year. Such employer
3940+21 making payments of any wages:
3941+22 (1) shall be liable to the state of Indiana for the payment of the tax
3942+23 required to be deducted and withheld under this section and shall
3943+24 not be liable to any individual for the amount deducted from the
3944+25 individual's wages and paid over in compliance or intended
3945+26 compliance with this section; and
3946+27 (2) shall make return of and payment to the department monthly
3947+28 of the amount of tax which under this article and IC 6-3.6 the
3948+29 employer is required to withhold.
3949+30 (b) An employer shall pay taxes withheld under subsection (a)
3950+31 during a particular month to the department no later than thirty (30)
3951+32 days after the end of that month. However, in place of monthly
3952+33 reporting periods, the department may permit an employer to report and
3953+34 pay the tax for a calendar year reporting period, if the average monthly
3954+35 amount of all tax required to be withheld by the employer in the
3955+36 previous calendar year does not exceed one thousand dollars ($1,000).
3956+37 An employer using a reporting period (other than a monthly reporting
3957+38 period) must file the employer's return and pay the tax for a reporting
3958+39 period no later than the last day of the month immediately following
3959+40 the close of the reporting period.
3960+41 (c) For purposes of determining whether an employee is subject to
3961+42 taxation under IC 6-3.6, an employer is entitled to rely on the statement
3962+ES 419—LS 6606/DI 120 90
3963+1 of an employee as to the employee's county of residence as represented
3964+2 by the statement of address in forms claiming exemptions for purposes
3965+3 of withholding, regardless of when the employee supplied the forms.
3966+4 Every employee shall notify the employee's employer within five (5)
3967+5 days after any change in the employee's county of residence.
3968+6 (d) A county that makes payments of wages subject to tax under this
3969+7 article:
3970+8 (1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
3971+9 (2) for the performance of the duties of the precinct election
3972+10 officer imposed by IC 3 that are performed on election day;
3973+11 is not required, at the time of payment of the wages, to deduct and
3974+12 retain from the wages the amount prescribed in withholding
3975+13 instructions issued by the department.
3976+14 (e) Every employer shall, at the time of each payment made by the
3977+15 employer to the department, deliver to the department a return upon the
3978+16 form prescribed by the department showing, with regard to wages paid
3979+17 to the employer's employees:
3980+18 (1) the amount of adjusted gross income tax deducted therefrom
3981+19 in accordance with the provisions of this section;
3982+20 (2) the amount of income tax, if any, imposed under IC 6-3.6 and
3983+21 deducted therefrom in accordance with this section; and
3984+22 (3) any other information the department may require.
3985+23 Every employer making a declaration of withholding as provided in this
3986+24 section shall furnish the employer's employees annually, but not later
3987+25 than thirty (30) days after the end of the calendar year, a record of the
3988+26 total amount of adjusted gross income tax and the amount of each
3989+27 income tax, if any, imposed under IC 6-3.6, withheld from the
3990+28 employees, on the forms prescribed by the department. In addition, the
3991+29 employer shall file Form WH-3 annual withholding tax reports with the
3992+30 department not later than thirty-one (31) days after the end of the
3993+31 calendar year.
3994+32 (f) All money deducted and withheld by an employer shall
3995+33 immediately upon such deduction be the money of the state, and every
3996+34 employer who deducts and retains any amount of money under the
3997+35 provisions of this article shall hold the same in trust for the state of
3998+36 Indiana and for payment thereof to the department in the manner and
3999+37 at the times provided in this article. Any employer may be required to
4000+38 post a surety bond in the sum the department determines to be
4001+39 appropriate to protect the state with respect to money withheld pursuant
4002+40 to this section.
4003+41 (g) The provisions of IC 6-8.1 relating to additions to tax in case of
4004+42 delinquency and penalties shall apply to employers subject to the
4005+ES 419—LS 6606/DI 120 91
4006+1 provisions of this section, and for these purposes any amount deducted
4007+2 or required to be deducted and remitted to the department under this
4008+3 section shall be considered to be the tax of the employer, and with
4009+4 respect to such amount the employer shall be considered the taxpayer.
4010+5 In the case of a corporate or partnership employer, every officer,
4011+6 employee, or member of such employer, who, as such officer,
4012+7 employee, or member is under a duty to deduct and remit such taxes,
4013+8 shall be personally liable for such taxes, penalties, and interest.
4014+9 (h) Amounts deducted from wages of an employee during any
4015+10 calendar year in accordance with the provisions of this section shall be
4016+11 considered to be in part payment of the tax imposed on such employee
4017+12 for the employee's taxable year which begins in such calendar year, and
4018+13 a return made by the employer under subsection (b) shall be accepted
4019+14 by the department as evidence in favor of the employee of the amount
4020+15 so deducted from the employee's wages. Where the total amount so
4021+16 deducted exceeds the amount of tax on the employee as computed
4022+17 under this article and IC 6-3.6, the department shall, after examining
4023+18 the return or returns filed by the employee in accordance with this
4024+19 article and IC 6-3.6, refund the amount of the excess deduction.
4025+20 However, under rules promulgated by the department, the excess or any
4026+21 part thereof may be applied to any taxes or other claim due from the
4027+22 taxpayer to the state of Indiana or any subdivision thereof. In the event
4028+23 that the excess tax deducted is less than one dollar ($1), no refund shall
4029+24 be made.
4030+25 (i) This section shall in no way relieve any taxpayer from the
4031+26 taxpayer's obligation of filing a return or returns at the time required
4032+27 under this article and IC 6-3.6, and, should the amount withheld under
4033+28 the provisions of this section be insufficient to pay the total tax of such
4034+29 taxpayer, such unpaid tax shall be paid at the time prescribed by
4035+30 section 5 of this chapter.
4036+31 (j) Notwithstanding subsection (b), an employer of a domestic
4037+32 service employee that enters into an agreement with the domestic
4038+33 service employee to withhold federal income tax under Section 3402
4039+34 of the Internal Revenue Code may withhold Indiana income tax on the
4040+35 domestic service employee's wages on the employer's Indiana
4041+36 individual income tax return in the same manner as allowed by Section
4042+37 3510 of the Internal Revenue Code.
4043+38 (k) To the extent allowed by Section 1137 of the Social Security
4044+39 Act, an employer of a domestic service employee may report and remit
4045+40 state unemployment insurance contributions on the employee's wages
4046+41 on the employer's Indiana individual income tax return in the same
4047+42 manner as allowed by Section 3510 of the Internal Revenue Code.
4048+ES 419—LS 6606/DI 120 92
4049+1 (l) A person who knowingly fails to remit trust fund money as set
4050+2 forth in this section commits a Level 6 felony.
4051+3 SECTION 38. IC 6-3-7-3, AS AMENDED BY P.L.146-2008,
4052+4 SECTION 323, IS AMENDED TO READ AS FOLLOWS
4053+5 [EFFECTIVE JULY 1, 2023]: Sec. 3. (a) All revenues derived from
4054+6 collection of the adjusted gross income tax imposed on corporations
4055+7 shall be deposited in the state general fund.
4056+8 (b) All revenues derived from collection of the adjusted gross
4057+9 income tax imposed on persons shall be deposited in the state general
4058+10 fund.
4059+11 (c) All revenues derived from adjusted gross income tax
4060+12 computed from a partnership that has made an election to be
4061+13 subjected to tax directly at the partnership level under IC 6-3-4.5
4062+14 shall be deposited in the state general fund. For purposes of this
4063+15 subsection, "adjusted gross income tax" means any tax for which
4064+16 the partnership is directly subject to as the result of an election
4065+17 under IC 6-3-4.5, regardless of the provision under which the tax
4066+18 is computed.
4067+19 SECTION 39. IC 6-3.1-17.1 IS ADDED TO THE INDIANA CODE
4068+20 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4069+21 JANUARY 1, 2024]:
4070+22 Chapter 17.1. Historic Rehabilitation Tax Credit
4071+23 Sec. 1. This chapter applies to taxable years beginning after
4072+24 December 31, 2023.
4073+25 Sec. 2. As used in this chapter, "pass through entity" means:
4074+26 (1) a corporation that is exempt from the adjusted gross
4075+27 income tax under IC 6-3-2-2.8(2);
4076+28 (2) a partnership;
4077+29 (3) a limited liability company; or
4078+30 (4) a limited liability partnership.
4079+31 Sec. 3. As used in this chapter, "qualified historic structure"
4080+32 means any building that is:
4081+33 (1) a certified historic structure (as defined in Section 47(c)(3)
4082+34 of the Internal Revenue Code);
4083+35 (2) individually listed on the register of Indiana historic sites
4084+36 and historic structures; or
4085+37 (3) located in, and contributes to, a district listed in the
4086+38 register of Indiana historic sites and historic structures.
4087+39 Sec. 4. As used in this chapter, "qualified rehabilitation
4088+40 expenditure" means the costs and expenses incurred by a qualified
4089+41 taxpayer in the restoration and preservation of a qualified historic
4090+42 structure that are defined as a qualified rehabilitation expenditure
4091+ES 419—LS 6606/DI 120 93
4092+1 in Section 47(c)(2) of the Internal Revenue Code.
4093+2 Sec. 5. As used in this chapter, "qualified taxpayer" means the
4094+3 owner of a qualified historic structure or any other person who
4095+4 may qualify for the federal rehabilitation tax credit allowable
4096+5 under Section 47 of the Internal Revenue Code.
4097+6 Sec. 6. As used in this chapter, "state tax liability" means a
4098+7 taxpayer's total tax liability incurred under IC 6-3-1 through
4099+8 IC 6-3-7 (the adjusted gross income tax), as computed after the
4100+9 application of all credits that under IC 6-3.1-1-2 are to be applied
4101+10 before the credit provided by this chapter.
4102+11 Sec. 7. (a) Subject to IC 5-28-6-9, the Indiana economic
4103+12 development corporation may award a credit to a qualified
4104+13 taxpayer against the qualified taxpayer's state tax liability in the
4105+14 taxable year in which the qualified taxpayer completes restoration
4106+15 and preservation of a qualified historic structure if the total
4107+16 amount of qualified rehabilitation expenditures incurred by the
4108+17 qualified taxpayer equals five thousand dollars ($5,000) or more.
4109+18 (b) The amount of the credit is equal to:
4110+19 (1) twenty-five percent (25%) of the qualified rehabilitation
4111+20 expenditures that the qualified taxpayer makes for the
4112+21 restoration and preservation of a qualified historic structure;
4113+22 or
4114+23 (2) thirty percent (30%) of the qualified rehabilitation
4115+24 expenditures that the qualified taxpayer makes for the
4116+25 restoration and preservation of a qualified historic structure
4117+26 that is:
4118+27 (A) owned by a taxpayer that is exempt from federal
4119+28 income taxation under Section 501(c)(3) of the Internal
4120+29 Revenue Code; or
4121+30 (B) not income producing.
4122+31 (c) If the Indiana economic development corporation awards
4123+32 credits under this chapter, the department of state revenue and the
4124+33 office of community and rural affairs shall administer the
4125+34 allowance of the credits.
4126+35 Sec. 8. (a) If a pass through entity is awarded a credit under
4127+36 section 7 of this chapter but does not have state tax liability against
4128+37 which the credit may be applied, a shareholder, partner, or
4129+38 member of the pass through entity may receive a credit equal to:
4130+39 (1) the credit determined for the pass through entity for the
4131+40 taxable year; multiplied by
4132+41 (2) the percentage of the pass through entity's distributive
4133+42 income to which the shareholder, partner, or member is
4134+ES 419—LS 6606/DI 120 94
4135+1 entitled.
4136+2 (b) The credit provided under subsection (a) is in addition to a
4137+3 credit a shareholder, partner, or member of a pass through entity
4138+4 is otherwise awarded under this chapter. However, a pass through
4139+5 entity and a shareholder, partner, or member of the pass through
4140+6 entity may not claim more than one (1) credit for the same
4141+7 qualified expenditure.
4142+8 (c) A pass through entity (other than a pass through entity
4143+9 described in section 2(1) of this chapter) and its partners,
4144+10 beneficiaries, or members may allocate the credit among its
4145+11 partners, beneficiaries, or members of the pass through entity as
4146+12 provided by written agreement without regard to their sharing of
4147+13 other tax or economic attributes. The pass through entity shall
4148+14 provide to the department a copy of such agreements, a list of
4149+15 partners, beneficiaries, or members of the pass through entity, and
4150+16 their respective shares of the credit resulting from such agreements
4151+17 in the manner prescribed by the department.
4152+18 Sec. 9. To obtain a credit under this chapter, a qualified
4153+19 taxpayer must claim the credit on the qualified taxpayer's annual
4154+20 state tax return or returns in the manner prescribed by the
4155+21 department. The qualified taxpayer shall submit to the department
4156+22 all information that the department determines is necessary for the
4157+23 allowance and calculation of the credit provided by this chapter.
4158+24 Sec. 10. (a) If the credit provided by this chapter exceeds a
4159+25 qualified taxpayer's state tax liability for the taxable year for
4160+26 which the credit is first claimed, the excess may be carried over to
4161+27 succeeding taxable years and used as a credit against the tax
4162+28 otherwise due and payable by the qualified taxpayer under IC 6-3
4163+29 during those taxable years. Each time that the credit is carried
4164+30 over to a succeeding taxable year, the credit is to be reduced by the
4165+31 amount that was used as a credit during the immediately preceding
4166+32 taxable year. The credit provided by this chapter may be carried
4167+33 forward and applied to succeeding taxable years for ten (10)
4168+34 taxable years following the unused credit year.
4169+35 (b) A qualified taxpayer is not entitled to any carryback or
4170+36 refund of any unused credit.
4171+37 Sec. 11. (a) A qualified taxpayer may assign any part of the
4172+38 credit that the qualified taxpayer may claim under this chapter. A
4173+39 credit that is assigned under this section remains subject to this
4174+40 chapter. If a qualified taxpayer assigns a part of a credit during a
4175+41 taxable year, the assignee may not subsequently assign all or part
4176+42 of the credit to another qualified taxpayer. A qualified taxpayer
4177+ES 419—LS 6606/DI 120 95
4178+1 may make only one (1) assignment of a credit.
4179+2 (b) An assignment of a credit must be in writing, and both the
4180+3 qualified taxpayer and assignee shall report the assignment on the
4181+4 qualified taxpayer's and the assignee's state tax returns for the
4182+5 year in which the assignment is made, in the manner prescribed by
4183+6 the department. A qualified taxpayer may not receive value in
4184+7 connection with an assignment under this section that exceeds the
4185+8 value of the part of the credit assigned.
4186+9 Sec. 12. For each state fiscal year beginning after June 30, 2023,
4187+10 and ending before July 1, 2030, the aggregate amount of state tax
4188+11 credits allowed under this chapter may not exceed ten million
4189+12 dollars ($10,000,000).
4190+13 Sec. 13. Any credit awarded under this chapter must be
4191+14 included in the calculation of the aggregate amount of applicable
4192+15 tax credits that the Indiana economic development corporation
4193+16 may certify for a state fiscal year under IC 5-28-6-9.
4194+17 Sec. 14. The department or the office of community and rural
4195+18 affairs may adopt rules under IC 4-22-2 governing this chapter.
4196+19 Sec. 15. This chapter expires January 1, 2030.
4197+20 SECTION 40. IC 6-3.1-35-2, AS ADDED BY P.L.137-2022,
4198+21 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4199+22 JULY 1, 2023]: Sec. 2. The following definitions apply throughout this
4200+23 chapter:
4201+24 (1) "Authority" refers to the Indiana housing and community
4202+25 development authority created by IC 5-20-1-3.
4203+26 (2) "Eligibility statement" refers to the statement issued by the
4204+27 authority to an eligible applicant under section 7 of this chapter.
4205+28 (3) "Eligible applicant" means a taxpayer who is:
4206+29 (A) an owner of a qualified project; or
4207+30 (B) a shareholder, member, or partner of an owner of a
4208+31 qualified project that is designated by the owner in the manner
4209+32 prescribed by the authority.
4210+33 (4) "Federal tax credit" means a federal low income housing
4211+34 credit under Section 42 of the Internal Revenue Code that is a
4212+35 thirty percent (30%) present value credit. The term does not
4213+36 include a seventy percent (70%) present value credit under
4214+37 Section 42 of the Internal Revenue Code for certain new
4215+38 buildings.
4216+39 (5) "Holder of a state tax credit" for a taxable year in a qualified
4217+40 project's state tax credit period means:
4218+41 (A) the eligible applicant for the qualified project;
4219+42 (B) a shareholder, member, or partner of the owner of the
4220+ES 419—LS 6606/DI 120 96
4221+1 qualified project; or
4222+2 (C) a successor, assignee, or transferee of the eligible
4223+3 applicant under section 6 of this chapter;
4224+4 that has a right to claim all or part of the tax credit for the taxable
4225+5 year.
4226+6 (6) "Qualified basis" of a qualified project has the meaning set
4227+7 forth in Section 42 of the Internal Revenue Code.
4228+8 (7) "Qualified project" means a qualified low income building (as
4229+9 defined in Section 42(c) of the Internal Revenue Code):
4230+10 (A) that is located in Indiana;
4231+11 (B) for which a federal affordable housing tax credit was
4232+12 awarded using a thirty percent (30%) present value of the
4233+13 qualified basis of the building; and
4234+14 (C) that is financed by tax exempt bonds that are subject to the
4235+15 private activity bond volume cap (under Section 42(h)(4) of
4236+16 the Internal Revenue Code).
4237+17 (8) "State tax credit" means the tax credit provided by this
4238+18 chapter.
4239+19 (9) "State tax credit period" for a qualified project means the
4240+20 period of five (5) taxable years beginning with the taxable year in
4241+21 which any amount of the federal tax credit for the qualified
4242+22 project is first claimed by a taxpayer. a building in the project is
4243+23 placed into service.
4244+24 (10) "State tax liability" means a taxpayer's total tax liability
4245+25 incurred under:
4246+26 (A) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
4247+27 (B) IC 6-5.5 (the financial institutions tax);
4248+28 (C) IC 27-1-18-2 (the insurance premiums tax); and
4249+29 (D) IC 27-1-20-12 (the insurance premiums retaliatory tax);
4250+30 as computed after the application of the credits that under
4251+31 IC 6-3.1-1-2 are to be applied before the credit provided by this
4252+32 chapter.
4253+33 (11) "Tax credit application" means an application submitted by
4254+34 an eligible applicant to the authority under section 7 of this
4255+35 chapter.
4256+36 (12) "Taxpayer" means an individual, a corporation, an S
4257+37 corporation, a partnership, a limited partnership, a limited liability
4258+38 partnership, a limited liability company, or a joint venture.
4259+39 SECTION 41. IC 6-3.1-35-3, AS ADDED BY P.L.137-2022,
4260+40 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4261+41 JULY 1, 2023]: Sec. 3. (a) Except as otherwise provided in this
4262+42 chapter, for each taxable year in the state tax credit period of a
4263+ES 419—LS 6606/DI 120 97
4264+1 qualified project, the holder of a state tax credit awarded under this
4265+2 chapter for the qualified project is entitled to a credit against the
4266+3 holder's state tax liability for the taxable year in an amount equal to:
4267+4 (1) the percentage of the state tax credit for the taxable year that
4268+5 the holder retains at the end of the last day of the taxable year, as
4269+6 determined under subsection (c); multiplied by
4270+7 (2) the amount of the state tax credit for the qualified project for
4271+8 the taxable year, as determined under subsections (d) and (e).
4272+9 (b) At the time an eligibility statement is issued to an eligible
4273+10 applicant, the eligible applicant is considered to have acquired one
4274+11 hundred percent (100%) of the state tax credit for each taxable year in
4275+12 the state tax credit period of the qualified project.
4276+13 (c) The percentage of a state tax credit for a taxable year that a
4277+14 holder retains at the end of the last day of a taxable year under
4278+15 subsection (a)(1) is equal to:
4279+16 (1) the sum of the percentages of the state tax credit for the
4280+17 taxable year that the holder acquires before the end of the last day
4281+18 of the taxable year; minus
4282+19 (2) the sum of the percentages of the state tax credit for the
4283+20 taxable year that the holder transfers before the end of the last day
4284+21 of the taxable year.
4285+22 (d) The amount of a state tax credit for a taxable year in the state tax
4286+23 credit period of a qualified project under subsection (a)(2) is equal to:
4287+24 (1) a factor equal to:
4288+25 (A) one (1); divided by
4289+26 (B) the number of taxable years in the state tax credit period
4290+27 for the qualified project; multiplied by
4291+28 (2) the lesser of:
4292+29 (A) the amount of the total federal credit allowed for the
4293+30 qualified project over the credit period as defined by
4294+31 Section 42(f) of the Internal Revenue Code (based as shown
4295+32 on Internal Revenue Service Form 8609, Line 1(b) (annual
4296+33 amount multiplied by ten (10) years)), if available, for the
4297+34 qualified project; or
4298+35 (B) the maximum aggregate amount of state tax credits
4299+36 awarded for the qualified project, as stated in the eligibility
4300+37 statement issued under section 7 of this chapter.
4301+38 (e) The department shall determine the amounts of the state tax
4302+39 credits specified under subsection (d) for each taxable year in the state
4303+40 tax credit period of each qualified project as those amounts are able to
4304+41 be computed and promptly publish the amounts on the department's
4305+42 Internet web site website to assist holders in claiming the state tax
4306+ES 419—LS 6606/DI 120 98
4307+1 credit provided by this chapter.
4308+2 SECTION 42. IC 6-3.1-35-7, AS ADDED BY P.L.137-2022,
4309+3 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4310+4 JULY 1, 2023]: Sec. 7. (a) An eligible applicant who wishes to obtain
4311+5 the state tax credit provided by this chapter for a qualified project must
4312+6 submit an application to the authority after June 30, 2023, and before
4313+7 January 1, 2028, in the manner prescribed by the authority.
4314+8 (b) An application submitted under subsection (a) must include:
4315+9 (1) the name and address of the qualified project;
4316+10 (2) the name and address of the owner of the qualified project;
4317+11 and
4318+12 (3) any other information required by the authority.
4319+13 (c) Subject to section 8 of this chapter, the authority may approve a
4320+14 tax credit application if:
4321+15 (1) the applicant is an eligible applicant;
4322+16 (2) the project identified in the application is a qualified project;
4323+17 and
4324+18 (3) the tax credit application meets any other requirements for
4325+19 receipt of state tax credits established by the authority.
4326+20 (d) If the authority approves a tax credit application for a qualified
4327+21 project, for each taxable year in the tax credit period the authority may
4328+22 approve a maximum amount of state tax credits. The maximum
4329+23 aggregate amount of state tax credits awarded by the authority for the
4330+24 state tax credit period of a qualified project is an amount that is the
4331+25 product of:
4332+26 (1) a percentage determined by the authority, which must be
4333+27 (A) greater than or equal to forty percent (40%); and
4334+28 (B) less than or equal to one hundred percent (100%);
4335+29 multiplied by
4336+30 (2) the anticipated aggregate federal tax credits over the credit
4337+31 period as defined by Section 42(f) of the Internal Revenue
4338+32 Code and specified in a letter issued by the authority for the
4339+33 qualified project under Section 42(m) of the Internal Revenue
4340+34 Code (annual amount multiplied by ten (10) years).
4341+35 (e) If the authority approves a tax credit application for a qualified
4342+36 project, the authority shall issue an eligibility statement to the eligible
4343+37 applicant. The eligibility statement must specify at least the following:
4344+38 (1) A unique identification code for the eligibility statement,
4345+39 determined by the authority.
4346+40 (2) The name of the qualified project.
4347+41 (3) For each taxable year in the state tax credit period of the
4348+42 qualified project, the maximum amount of state tax credit that the
4349+ES 419—LS 6606/DI 120 99
4350+1 authority is awarding to the eligible applicant for the qualified
4351+2 project.
4352+3 (f) The authority shall transmit a copy of each eligibility statement
4353+4 issued under subsection (e) to the department.
4354+5 SECTION 43. IC 6-3.1-38.3 IS ADDED TO THE INDIANA CODE
4355+6 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4356+7 JANUARY 1, 2024]:
4357+8 Chapter 38.3. Employment of Individuals with Disability Tax
4358+9 Credit
4359+10 Sec. 1. As used in this chapter, "pass through entity" means:
4360+11 (1) a corporation that is exempt from the adjusted gross
4361+12 income tax under IC 6-3-2-2.8(2);
4362+13 (2) a partnership;
4363+14 (3) a trust;
4364+15 (4) an estate;
4365+16 (5) a limited liability company; or
4366+17 (6) a limited liability partnership.
4367+18 Sec. 2. As used in this chapter, "state tax liability" means the
4368+19 taxpayer's total tax liability that is incurred under:
4369+20 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
4370+21 (2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15
4371+22 (the nonprofit agricultural organization health coverage tax);
4372+23 and
4373+24 (3) IC 6-5.5 (the financial institutions tax);
4374+25 as computed after the application of the credits that, under
4375+26 IC 6-3.1-1-2, are to be applied before the credit provided by this
4376+27 chapter.
4377+28 Sec. 3. (a) Except as provided in subsections (b) and (c), and
4378+29 subject to section 4 of this chapter, a taxpayer that employs an
4379+30 individual who:
4380+31 (1) is referred to the employer for employment through a
4381+32 vocational rehabilitation services program for individuals
4382+33 with a disability; and
4383+34 (2) was initially hired by the taxpayer after December 31,
4384+35 2023;
4385+36 during a taxable year is entitled to a credit in the amount
4386+37 determined under section 5 or 6 of this chapter, as applicable,
4387+38 against the taxpayer's state tax liability for the taxable year based
4388+39 on the wages paid to the particular employee during the taxable
4389+40 year.
4390+41 (b) A taxpayer that has received an authorization certificate
4391+42 from the United States Department of Labor, Wage and Hour
4392+ES 419—LS 6606/DI 120 100
4393+1 Division, under Section 14(c) of the federal Fair Labor Standards
4394+2 Act of 1938, as amended (29 U.S.C. 201 et seq.), is not eligible for
4395+3 a credit under this chapter.
4396+4 (c) A taxpayer is not eligible for a credit under this chapter for
4397+5 employment of a particular employee described in subsection (a)
4398+6 if the employee was hired within the previous twelve (12) months
4399+7 to replace a former employee who was terminated, unless the
4400+8 employee who is being replaced:
4401+9 (1) was terminated for misconduct in connection with that
4402+10 employee's employment; or
4403+11 (2) voluntarily left that employee's position.
4404+12 Sec. 4. To be eligible for the credit under this chapter, a
4405+13 taxpayer must employ an individual described in section 3(a) of
4406+14 this chapter who works at least an average of twenty (20) hours per
4407+15 week for the employer in a similar setting and at a rate that is
4408+16 comparable to other employees of the taxpayer who perform the
4409+17 same or similar tasks.
4410+18 Sec. 5. (a) This section applies to a taxpayer that satisfies the
4411+19 following requirements:
4412+20 (1) The taxpayer is a benefit corporation (as defined in
4413+21 IC 23-1.3-2-3).
4414+22 (2) The taxpayer employs not more than fifty (50) individuals.
4415+23 (3) The majority of the taxpayer's employees are individuals
4416+24 described in section 3(a) of this chapter.
4417+25 (b) The amount of the tax credit is determined according to the
4418+26 following:
4419+27 (1) In the first taxable year for which the credit is claimed
4420+28 with respect to wages paid to a particular employee, an
4421+29 amount equal to thirty percent (30%) of the wages paid to the
4422+30 employee during the taxable year.
4423+31 (2) In the second taxable year for which the credit is claimed
4424+32 with respect to wages paid to a particular employee, an
4425+33 amount equal to forty percent (40%) of the wages paid to the
4426+34 employee during the taxable year.
4427+35 (3) In the third and each subsequent taxable year for which
4428+36 the credit is claimed with respect to wages paid to a particular
4429+37 employee, an amount equal to fifty percent (50%) of the
4430+38 wages paid to the employee during the taxable year.
4431+39 Sec. 6. (a) This section applies to a taxpayer that does not meet
4432+40 the requirements under section 5(a) of this chapter.
4433+41 (b) The amount of the tax credit is determined according to the
4434+42 following:
4435+ES 419—LS 6606/DI 120 101
4436+1 (1) In the first taxable year for which the credit is claimed
4437+2 with respect to wages paid to a particular employee:
4438+3 (A) in the case of a taxpayer with a total number of
4439+4 employees that is less than fifty (50), an amount equal to
4440+5 twenty percent (20%) of the wages paid to the employee
4441+6 during the taxable year; and
4442+7 (B) in the case of an eligible taxpayer with a total number
4443+8 of employees that is at least fifty (50) but less than five
4444+9 hundred (500), an amount equal to twenty percent (20%)
4445+10 of the wages paid to the employee during the taxable year.
4446+11 (2) In the second taxable year for which the credit is claimed
4447+12 with respect to wages paid to a particular employee:
4448+13 (A) in the case of an eligible taxpayer with a total number
4449+14 of employees that is less than fifty (50), an amount equal to
4450+15 thirty percent (30%) of the wages paid to the employee
4451+16 during the taxable year; and
4452+17 (B) in the case of an eligible taxpayer with a total number
4453+18 of employees that is at least fifty (50) but less than five
4454+19 hundred (500), an amount equal to thirty percent (30%) of
4455+20 the wages paid to the employee during the taxable year.
4456+21 (3) In the third and each subsequent taxable year for which
4457+22 the credit is claimed with respect to wages paid to a particular
4458+23 employee:
4459+24 (A) in the case of an eligible taxpayer with a total number
4460+25 of employees that is less than fifty (50), an amount equal to
4461+26 forty percent (40%) of the wages paid to the employee
4462+27 during the taxable year; and
4463+28 (B) in the case of an eligible taxpayer with a total number
4464+29 of employees that is at least fifty (50) but less than five
4465+30 hundred (500), an amount equal to forty percent (40%) of
4466+31 the wages paid to the employee during the taxable year.
4467+32 Sec. 7. If a pass through entity is entitled to a credit under this
4468+33 chapter but does not have state tax liability against which the tax
4469+34 credit may be applied, an individual who is a shareholder, partner,
4470+35 beneficiary, or member of the pass through entity is entitled to a
4471+36 tax credit equal to:
4472+37 (1) the tax credit determined for the pass through entity for
4473+38 the taxable year; multiplied by
4474+39 (2) the percentage of the pass through entity's distributive
4475+40 income to which the shareholder, partner, beneficiary, or
4476+41 member is entitled.
4477+42 The credit provided under this section is in addition to a tax credit
4478+ES 419—LS 6606/DI 120 102
4479+1 to which a shareholder, partner, beneficiary, or member of a pass
4480+2 through entity is entitled. However, a pass through entity and an
4481+3 individual who is a shareholder, partner, beneficiary, or member
4482+4 of a pass through entity may not claim more than one (1) credit.
4483+5 Sec. 8. In order to receive the credit provided under this
4484+6 chapter, a taxpayer must claim the credit on the taxpayer's annual
4485+7 state tax return in the manner prescribed by the department. The
4486+8 taxpayer shall submit to the department any information that the
4487+9 department determines is necessary for the calculation of the
4488+10 credit.
4489+11 Sec. 9. (a) If the amount of the credit determined under section
4490+12 5 or 6 of this chapter, as applicable, for a taxpayer in a taxable
4491+13 year exceeds the taxpayer's state tax liability for that taxable year,
4492+14 the taxpayer may carry the excess credit over for a period not to
4493+15 exceed the taxpayer's following five (5) taxable years. The amount
4494+16 of the credit carryover from a taxable year shall be reduced to the
4495+17 extent that the carryover is used by the taxpayer to obtain a credit
4496+18 under this chapter for any subsequent taxable year. A taxpayer is
4497+19 not entitled to a carryback or a refund of any unused credit
4498+20 amount.
4499+21 (b) A taxpayer may not assign any part of a credit to which the
4500+22 taxpayer is entitled under this chapter.
4501+23 Sec. 10. This chapter expires December 31, 2028.
4502+24 SECTION 44. IC 6-3.6-3-3, AS AMENDED BY P.L.247-2017,
4503+25 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4504+26 JULY 1, 2023]: Sec. 3. (a) Except as provided in subsection (f), an
4505+27 ordinance adopted under this article takes effect as provided in this
4506+28 section.
4507+29 (b) An ordinance that adopts, increases, decreases, or rescinds a tax
4508+30 or a tax rate takes effect as follows:
4509+31 (1) An ordinance adopted after December 31 of the immediately
4510+32 preceding year and before September 1 of the current year takes
4511+33 effect on October 1 of the current year.
4512+34 (2) An ordinance adopted after August 31 and before November
4513+35 1 of the current year takes effect on January 1 of the following
4514+36 year.
4515+37 (3) An ordinance adopted after October 31 of the current year and
4516+38 before January 1 of the following year takes effect on October 1
4517+39 of the following year.
4518+40 (c) An ordinance that grants, increases, decreases, rescinds, or
4519+41 changes a credit against the property tax liability of a taxpayer takes
4520+42 effect as follows:
4521+ES 419—LS 6606/DI 120 103
4522+1 (1) An ordinance adopted after December 31 of the immediately
4523+2 preceding year and before November 2 of the current year takes
4524+3 effect on January 1 of, and applies to property taxes first due and
4525+4 payable in, the year immediately following the year in which the
4526+5 ordinance is adopted.
4527+6 (2) An ordinance adopted after November 1 of the current year
4528+7 and before January 1 of the immediately succeeding year takes
4529+8 effect on January 1 of, and applies to property taxes first due and
4530+9 payable in, the year that follows the current year by two (2) years.
4531+10 (d) An ordinance that grants, increases, decreases, rescinds, or
4532+11 changes a distribution or allocation of taxes takes effect as follows:
4533+12 (1) An ordinance adopted after December 31 of the immediately
4534+13 preceding year and before November 2 of the current year takes
4535+14 effect January 1 of the year immediately following the year in
4536+15 which the ordinance is adopted.
4537+16 (2) An ordinance adopted after November 1 of the current year
4538+17 and before January 1 of the immediately succeeding year takes
4539+18 effect January 1 of the year that follows the current year by two
4540+19 (2) years.
4541+20 (e) An ordinance not described in subsections (b) through (d) takes
4542+21 effect as provided under IC 36 for other ordinances of the
4543+22 governmental entity adopting the ordinance.
4544+23 (f) An ordinance described in section 7(e) or 7.5(e) of this
4545+24 chapter that changes a tax rate or changes the allocation of
4546+25 revenue received from a tax rate does not take effect as provided
4547+26 under this section if the county adopting body fails to meet the
4548+27 required deadlines for notice described in section 7(e) or 7.5(e) of
4549+28 this chapter. If an ordinance does not take effect, the tax rate or
4550+29 allocation, as applicable, that is subject to the proposed change in
4551+30 the ordinance shall be the lesser of the:
4552+31 (1) applicable distribution schedule for the certified
4553+32 distribution for the upcoming calendar year; or
4554+33 (2) applicable distribution schedule for the certified
4555+34 distribution for the current calendar year;
4556+35 unless, or until, a subsequent ordinance is adopted and the
4557+36 required deadlines for notice described in section 7(e) or 7.5(e) of
4558+37 this chapter are met.
4559+38 SECTION 45. IC 6-3.6-3-4, AS ADDED BY P.L.243-2015,
4560+39 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4561+40 JULY 1, 2023]: Sec. 4. (a) Except for a tax rate that has an expiration
4562+41 date, and except as provided in section 3(f) of this chapter, a tax rate
4563+42 remains in effect until the effective date of an ordinance that increases,
4564+ES 419—LS 6606/DI 120 104
4565+1 decreases, or rescinds that tax rate.
4566+2 (b) A tax rate may not be changed more than once each year under
4567+3 this article.
4568+4 SECTION 46. IC 6-3.6-3-7, AS AMENDED BY P.L.154-2020,
4569+5 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4570+6 JULY 1, 2023]: Sec. 7. (a) This section applies to a county in which the
4571+7 county adopting body is a local income tax council.
4572+8 (b) Before a member of the local income tax council may propose
4573+9 an ordinance under section 8 of this chapter, or vote on a proposed
4574+10 ordinance (including a proposed ordinance under section 8(e) of this
4575+11 chapter that is being considered by the local income tax council as a
4576+12 whole as required under section 9.5 of this chapter (before its
4577+13 expiration)), the member must hold a public hearing on the proposed
4578+14 ordinance and provide the public with notice of the time and place
4579+15 where the public hearing will be held.
4580+16 (c) The notice required by subsection (b) must be given in
4581+17 accordance with IC 5-3-1 and include the proposed ordinance or
4582+18 resolution to propose an ordinance.
4583+19 (d) In addition to the notice required by subsection (b), the adopting
4584+20 body shall also provide a copy of the notice to all taxing units in the
4585+21 county at least ten (10) days before the public hearing.
4586+22 (e) If a county adopting body makes any fiscal decision that has
4587+23 a financial impact to an underlying local taxing unit, the decision
4588+24 must be made, and notice must be given to the affected local taxing
4589+25 unit, by August 1 of a year. If a county adopting body passes an
4590+26 ordinance changing the allocation of local income tax revenue to a
4591+27 local taxing unit, the county adopting body must provide direct
4592+28 notice, in addition to the public notice described in subsection (b),
4593+29 to the affected local taxing unit within fifteen (15) days of the
4594+30 passage of the ordinance.
4595+31 SECTION 47. IC 6-3.6-3-7.5, AS AMENDED BY P.L.247-2017,
4596+32 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4597+33 JULY 1, 2023]: Sec. 7.5. (a) This section applies to a county in which
4598+34 the county adopting body is the county council.
4599+35 (b) Before the county council may vote on a proposed ordinance
4600+36 under this article, the county council must hold a public hearing on the
4601+37 proposed ordinance and provide the public with notice of the date,
4602+38 time, and place of the public hearing.
4603+39 (c) The notice required by subsection (b) must be given in
4604+40 accordance with IC 5-3-1 and include the proposed ordinance.
4605+41 (d) In addition to the notice required by subsection (b), the adopting
4606+42 body shall also provide a copy of the notice to all taxing units in the
4607+ES 419—LS 6606/DI 120 105
4608+1 county at least ten (10) days before the public hearing.
4609+2 (e) If a county adopting body makes any fiscal decision that has
4610+3 a financial impact to an underlying local taxing unit, the decision
4611+4 must be made, and notice must be given to the affected local taxing
4612+5 unit, by August 1 of a year. If a county adopting body passes an
4613+6 ordinance changing the allocation of local income tax revenue to a
4614+7 local taxing unit, the county adopting body must provide direct
4615+8 notice, in addition to the public notice described in subsection (b),
4616+9 to the affected local taxing unit within fifteen (15) days of the
4617+10 passage of the ordinance.
4618+11 SECTION 48. IC 6-3.6-6-2.7, AS AMENDED BY P.L.137-2022,
4619+12 SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4620+13 JULY 1, 2023]: Sec. 2.7. (a) A county fiscal body may adopt an
4621+14 ordinance to impose a tax rate for correctional facilities and
4622+15 rehabilitation facilities in the county. The tax rate must be in
4623+16 increments of:
4624+17 (1) in the case of a county with bonds or lease agreements
4625+18 outstanding on July 1, 2023, for which a pledge of tax revenue
4626+19 from revenue received under a tax rate imposed under this
4627+20 section is made, one-hundredth of one percent (0.01%) and
4628+21 may not exceed three-tenths of one percent (0.3%); and
4629+22 (2) in the case of a county with no bonds or lease agreements
4630+23 outstanding on July 1, 2023, for which a pledge of tax revenue
4631+24 from revenue received under a tax rate imposed under this
4632+25 section is made, one-hundredth of one percent (0.01%) and may
4633+26 not exceed two-tenths of one percent (0.2%).
4634+27 Not more than an amount equal to the amount of revenue that is
4635+28 attributable to two-tenths of one percent (0.2%) of a tax rate
4636+29 imposed under this section may be used for operating expenses for
4637+30 correctional facilities and rehabilitation facilities in the county.
4638+31 (b) The tax rate imposed under this section may not be in effect for
4639+32 more than:
4640+33 (1) twenty-two (22) years, in the case of a tax rate imposed in an
4641+34 ordinance adopted before January 1, 2019; or
4642+35 (2) twenty-five (25) years, in the case of a tax rate imposed in an
4643+36 ordinance adopted on or after January 1, 2019.
4644+37 If an ordinance is adopted after June 30, 2019, to impose a tax rate
4645+38 under this section, not more than twenty percent (20%) of the revenue
4646+39 from the tax rate under this section may be used for operating expenses
4647+40 for correctional facilities and rehabilitation facilities in the county.
4648+41 (b) (c) The revenue generated by a tax rate imposed under this
4649+42 section must be distributed directly to the county before the remainder
4650+ES 419—LS 6606/DI 120 106
4651+1 of the expenditure rate revenue is distributed. The revenue shall be
4652+2 maintained in a separate dedicated county fund and used by the county
4653+3 only for paying for correctional facilities and rehabilitation facilities in
4654+4 the county.
4655+5 SECTION 49. IC 6-3.6-6-8, AS AMENDED BY P.L.247-2017,
4656+6 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4657+7 JULY 1, 2023]: Sec. 8. (a) This section applies to the allocation of
4658+8 additional revenue from a tax under this chapter to public safety
4659+9 purposes. Funding dedicated for a PSAP under a former tax continues
4660+10 to apply under this chapter until it is rescinded or modified. If funding
4661+11 was not dedicated for a PSAP under a former tax, the adopting body
4662+12 may adopt a resolution providing that all or part of the additional
4663+13 revenue allocated to public safety is to be dedicated for a PSAP. The
4664+14 resolution first applies in the following year and then thereafter until it
4665+15 is rescinded or modified. Funding dedicated for a PSAP shall be
4666+16 allocated and distributed as provided in IC 6-3.6-11-4.
4667+17 (b) Except as provided in subsection subsections (c) and (d), the
4668+18 amount of the certified distribution that is allocated to public safety
4669+19 purposes, and after making allocations under IC 6-3.6-11, shall be
4670+20 allocated to the county and to each municipality in the county that is
4671+21 carrying out or providing at least one (1) public safety purpose. For
4672+22 purposes of this subsection, in the case of a consolidated city, the total
4673+23 property taxes imposed by the consolidated city include the property
4674+24 taxes imposed by the consolidated city and all special taxing districts
4675+25 (except for a public library district, a public transportation corporation,
4676+26 and a health and hospital corporation), and all special service districts.
4677+27 The amount allocated under this subsection to a county or municipality
4678+28 is equal to the result of:
4679+29 (1) the amount of the remaining certified distribution that is
4680+30 allocated to public safety purposes; multiplied by
4681+31 (2) a fraction equal to:
4682+32 (A) in the case of a county that initially imposed a rate for
4683+33 public safety under IC 6-3.5-6 (repealed), the result of the total
4684+34 property taxes imposed in the county by the county or
4685+35 municipality for the calendar year preceding the distribution
4686+36 year, divided by the sum of the total property taxes imposed in
4687+37 the county by the county and each municipality in the county
4688+38 that is entitled to a distribution under this section for that
4689+39 calendar year; or
4690+40 (B) in the case of a county that initially imposed a rate for
4691+41 public safety under IC 6-3.5-1.1 (repealed) or a county that did
4692+42 not impose a rate for public safety under either IC 6-3.5-1.1
4693+ES 419—LS 6606/DI 120 107
4694+1 (repealed) or IC 6-3.5-6 (repealed), the result of the attributed
4695+2 allocation amount of the county or municipality for the
4696+3 calendar year preceding the distribution year, divided by the
4697+4 sum of the attributed allocation amounts of the county and
4698+5 each municipality in the county that is entitled to a distribution
4699+6 under this section for that calendar year.
4700+7 (c) A fire department, volunteer fire department, or emergency
4701+8 medical services provider that:
4702+9 (1) provides fire protection or emergency medical services within
4703+10 the county; and
4704+11 (2) is operated by or serves a political subdivision that is not
4705+12 otherwise entitled to receive a distribution of tax revenue under
4706+13 this section;
4707+14 may, before July 1 of a year, apply to the adopting body for a
4708+15 distribution of tax revenue under this section during the following
4709+16 calendar year. The adopting body shall review an application submitted
4710+17 under this subsection and may, before September 1 of a year, adopt a
4711+18 resolution requiring that one (1) or more of the applicants shall receive
4712+19 a specified amount of the tax revenue to be distributed under this
4713+20 section during the following calendar year. The adopting body shall
4714+21 provide a copy of the resolution to the county auditor and the
4715+22 department of local government finance not more than fifteen (15) days
4716+23 after the resolution is adopted. A resolution adopted under this
4717+24 subsection and provided in a timely manner to the county auditor and
4718+25 the department applies only to distributions in the following calendar
4719+26 year. Any amount of tax revenue distributed under this subsection to a
4720+27 fire department, volunteer fire department, or emergency medical
4721+28 services provider shall be distributed before the remainder of the tax
4722+29 revenue is allocated under subsection (b).
4723+30 (d) From the amount of the certified distribution that is
4724+31 allocated to public safety purposes, and after making allocations
4725+32 under IC 6-3.6-11, the adopting body may adopt a resolution that
4726+33 one (1) or more township fire departments, fire protection
4727+34 territories, or fire protection districts shall receive an amount of
4728+35 the tax revenue to be distributed under this section during the
4729+36 following calendar year up to the amount of revenue that is
4730+37 attributable to five one-hundredths of one percent (0.05%) of the
4731+38 tax rate imposed for allocations to public safety purposes. A
4732+39 resolution adopted under this subsection must include information
4733+40 on the service area for each township fire department, fire
4734+41 protection territory, or fire protection district, as applicable. Any
4735+42 distribution under this subsection must be based on the assessed
4736+ES 419—LS 6606/DI 120 108
4737+1 value of real property, not including land, that is served by each
4738+2 township fire department, fire protection territory, or fire
4739+3 protection district, as applicable. The adopting body shall provide
4740+4 a copy of the resolution to the county auditor and the department
4741+5 of local government finance not more than fifteen (15) days after
4742+6 the resolution is adopted. A resolution adopted under this
4743+7 subsection and provided in a timely manner to the county auditor
4744+8 and the department applies only to distributions in the following
4745+9 calendar year. Any amount of tax revenue distributed under this
4746+10 subsection to a township fire department, fire protection territory,
4747+11 or fire protection district, as applicable, shall be distributed before
4748+12 the remainder of the tax revenue is allocated under subsection (b).
4749+13 SECTION 50. IC 6-3.6-11-9, AS ADDED BY P.L.159-2020,
4750+14 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4751+15 JULY 1, 2023]: Sec. 9. (a) This section applies to the calculation and
4752+16 allocation of certified shares among civil taxing units in Hamilton
4753+17 County after 2020 and before 2024. 2027.
4754+18 (b) For each calendar year to which this section applies, the amount
4755+19 of a civil taxing unit's certified shares is equal to:
4756+20 (1) the amount of the civil taxing unit's certified shares
4757+21 determined under IC 6-3.6-6, for a civil taxing unit other than the
4758+22 city of Carmel or the city of Fishers;
4759+23 (2) the adjusted amount determined under subsection (c), for the
4760+24 city of Carmel; or
4761+25 (3) the adjusted amount determined under subsection (d), for the
4762+26 city of Fishers.
4763+27 (c) For each calendar year to which this section applies, the adjusted
4764+28 amount of the city of Carmel's certified shares is equal to the lesser of:
4765+29 (1) the amount of the city of Carmel's certified shares determined
4766+30 under IC 6-3.6-6, without regard to this section; or
4767+31 (2) the product of:
4768+32 (A) the amount of the city of Carmel's certified shares
4769+33 determined for the immediately preceding calendar year under
4770+34 IC 6-3.6-6, for 2021, or this section, after 2021; and
4771+35 (B) one and twenty-five thousandths (1.025).
4772+36 (d) For each calendar year to which this section applies, the adjusted
4773+37 amount of the city of Fishers' certified shares is equal to:
4774+38 (1) the sum of:
4775+39 (A) the amount of the city of Carmel's certified shares
4776+40 determined under IC 6-3.6-6, without regard to this section;
4777+41 and
4778+42 (B) the amount of the city of Fishers' certified shares
4779+ES 419—LS 6606/DI 120 109
4780+1 determined under IC 6-3.6-6, without regard to this section;
4781+2 minus
4782+3 (2) the adjusted amount of the city of Carmel's certified shares
4783+4 determined under subsection (c).
4784+5 SECTION 51. IC 6-5.5-1-2, AS AMENDED BY P.L.137-2022,
4785+6 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4786+7 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2. (a) Except as provided
4787+8 in subsections (b) through (d), "adjusted gross income" means taxable
4788+9 income as defined in Section 63 of the Internal Revenue Code, adjusted
4789+10 as follows:
4790+11 (1) Add the following amounts:
4791+12 (A) An amount equal to a deduction allowed or allowable
4792+13 under Section 166, Section 585, or Section 593 of the Internal
4793+14 Revenue Code.
4794+15 (B) An amount equal to a deduction allowed or allowable
4795+16 under Section 170 of the Internal Revenue Code.
4796+17 (C) An amount equal to a deduction or deductions allowed or
4797+18 allowable under Section 63 of the Internal Revenue Code for
4798+19 taxes based on or measured by income and levied at the state
4799+20 level by a state of the United States or levied at the local level
4800+21 by any subdivision of a state of the United States.
4801+22 (D) The amount of interest excluded under Section 103 of the
4802+23 Internal Revenue Code or under any other federal law, minus
4803+24 the associated expenses disallowed in the computation of
4804+25 taxable income under Section 265 of the Internal Revenue
4805+26 Code.
4806+27 (E) An amount equal to the deduction allowed under Section
4807+28 172 or 1212 of the Internal Revenue Code for net operating
4808+29 losses or net capital losses.
4809+30 (F) For a taxpayer that is not a large bank (as defined in
4810+31 Section 585(c)(2) of the Internal Revenue Code), an amount
4811+32 equal to the recovery of a debt, or part of a debt, that becomes
4812+33 worthless to the extent a deduction was allowed from gross
4813+34 income in a prior taxable year under Section 166(a) of the
4814+35 Internal Revenue Code.
4815+36 (G) Add the amount necessary to make the adjusted gross
4816+37 income of any taxpayer that owns property for which bonus
4817+38 depreciation was allowed in the current taxable year or in an
4818+39 earlier taxable year equal to the amount of adjusted gross
4819+40 income that would have been computed had an election not
4820+41 been made under Section 168(k) of the Internal Revenue Code
4821+42 to apply bonus depreciation to the property in the year that it
4822+ES 419—LS 6606/DI 120 110
4823+1 was placed in service.
4824+2 (H) Add the amount necessary to make the adjusted gross
4825+3 income of any taxpayer that placed Section 179 property (as
4826+4 defined in Section 179 of the Internal Revenue Code) in
4827+5 service in the current taxable year or in an earlier taxable year
4828+6 equal to the amount of adjusted gross income that would have
4829+7 been computed had an election for federal income tax
4830+8 purposes not been made for the year in which the property was
4831+9 placed in service to take deductions under Section 179 of the
4832+10 Internal Revenue Code in a total amount exceeding the sum of:
4833+11 (i) twenty-five thousand dollars ($25,000) to the extent
4834+12 deductions under Section 179 of the Internal Revenue Code
4835+13 were not elected as provided in item (ii); and
4836+14 (ii) for taxable years beginning after December 31, 2017, the
4837+15 deductions elected under Section 179 of the Internal
4838+16 Revenue Code on property acquired in an exchange if the
4839+17 exchange would have been eligible for nonrecognition of
4840+18 gain or loss under Section 1031 of the Internal Revenue
4841+19 Code in effect on January 1, 2017, the exchange is not
4842+20 eligible for nonrecognition of gain or loss under Section
4843+21 1031 of the Internal Revenue Code, and the taxpayer made
4844+22 an election to take deductions under Section 179 of the
4845+23 Internal Revenue Code with regard to the acquired property
4846+24 in the year that the property was placed into service. The
4847+25 amount of deductions allowable for an item of property
4848+26 under this item may not exceed the amount of adjusted gross
4849+27 income realized on the property that would have been
4850+28 deferred under the Internal Revenue Code in effect on
4851+29 January 1, 2017.
4852+30 (I) Add an amount equal to any income not included in gross
4853+31 income as a result of the deferral of income arising from
4854+32 business indebtedness discharged in connection with the
4855+33 reacquisition after December 31, 2008, and before January 1,
4856+34 2011, of an applicable debt instrument, as provided in Section
4857+35 108(i) of the Internal Revenue Code. Subtract from the
4858+36 adjusted gross income of any taxpayer that added an amount
4859+37 to adjusted gross income in a previous year the amount
4860+38 necessary to offset the amount included in federal gross
4861+39 income as a result of the deferral of income arising from
4862+40 business indebtedness discharged in connection with the
4863+41 reacquisition after December 31, 2008, and before January 1,
4864+42 2011, of an applicable debt instrument, as provided in Section
4865+ES 419—LS 6606/DI 120 111
4866+1 108(i) of the Internal Revenue Code.
4867+2 (J) Add an amount equal to any exempt insurance income
4868+3 under Section 953(e) of the Internal Revenue Code for active
4869+4 financing income under Subpart F, Subtitle A, Chapter 1,
4870+5 Subchapter N of the Internal Revenue Code.
4871+6 (K) Add an amount equal to the remainder of:
4872+7 (i) the amount allowable as a deduction under Section
4873+8 274(n) of the Internal Revenue Code; minus
4874+9 (ii) the amount otherwise allowable as a deduction under
4875+10 Section 274(n) of the Internal Revenue Code, if Section
4876+11 274(n)(2)(D) of the Internal Revenue Code was not in effect
4877+12 for amounts paid or incurred after December 31, 2020.
4878+13 (2) Subtract the following amounts:
4879+14 (A) Income that the United States Constitution or any statute
4880+15 of the United States prohibits from being used to measure the
4881+16 tax imposed by this chapter.
4882+17 (B) Income that is derived from sources outside the United
4883+18 States, as defined by the Internal Revenue Code.
4884+19 (C) An amount equal to a debt or part of a debt that becomes
4885+20 worthless, as permitted under Section 166(a) of the Internal
4886+21 Revenue Code.
4887+22 (D) An amount equal to any bad debt reserves that are
4888+23 included in federal income because of accounting method
4889+24 changes required by Section 585(c)(3)(A) or Section 593 of
4890+25 the Internal Revenue Code.
4891+26 (E) The amount necessary to make the adjusted gross income
4892+27 of any taxpayer that owns property for which bonus
4893+28 depreciation was allowed in the current taxable year or in an
4894+29 earlier taxable year equal to the amount of adjusted gross
4895+30 income that would have been computed had an election not
4896+31 been made under Section 168(k) of the Internal Revenue Code
4897+32 to apply bonus depreciation.
4898+33 (F) The amount necessary to make the adjusted gross income
4899+34 of any taxpayer that placed Section 179 property (as defined
4900+35 in Section 179 of the Internal Revenue Code) in service in the
4901+36 current taxable year or in an earlier taxable year equal to the
4902+37 amount of adjusted gross income that would have been
4903+38 computed had an election for federal income tax purposes not
4904+39 been made for the year in which the property was placed in
4905+40 service to take deductions under Section 179 of the Internal
4906+41 Revenue Code in a total amount exceeding the sum of:
4907+42 (i) twenty-five thousand dollars ($25,000) to the extent
4908+ES 419—LS 6606/DI 120 112
4909+1 deductions under Section 179 of the Internal Revenue Code
4910+2 were not elected as provided in item (ii); and
4911+3 (ii) for taxable years beginning after December 31, 2017, the
4912+4 deductions elected under Section 179 of the Internal
4913+5 Revenue Code on property acquired in an exchange if the
4914+6 exchange would have been eligible for nonrecognition of
4915+7 gain or loss under Section 1031 of the Internal Revenue
4916+8 Code in effect on January 1, 2017, the exchange is not
4917+9 eligible for nonrecognition of gain or loss under Section
4918+10 1031 of the Internal Revenue Code, and the taxpayer made
4919+11 an election to take deductions under Section 179 of the
4920+12 Internal Revenue Code with regard to the acquired property
4921+13 in the year that the property was placed into service. The
4922+14 amount of deductions allowable for an item of property
4923+15 under this item may not exceed the amount of adjusted gross
4924+16 income realized on the property that would have been
4925+17 deferred under the Internal Revenue Code in effect on
4926+18 January 1, 2017.
4927+19 (G) Income that is:
4928+20 (i) exempt from taxation under IC 6-3-2-21.7; and
4929+21 (ii) included in the taxpayer's taxable income under the
4930+22 Internal Revenue Code.
4931+23 (H) The amount that would have been excluded from gross
4932+24 income but for the enactment of Section 118(b)(2) of the
4933+25 Internal Revenue Code for taxable years ending after
4934+26 December 22, 2017.
4935+27 (I) For taxable years ending after March 12, 2020, an amount
4936+28 equal to the deduction disallowed pursuant to:
4937+29 (i) Section 2301(e) of the CARES Act (Public Law
4938+30 116-136), as modified by Sections 206 and 207 of the
4939+31 Taxpayer Certainty and Disaster Relief Tax Act (Division
4940+32 EE of Public Law 116-260); and
4941+33 (ii) Section 3134(e) of the Internal Revenue Code.
4942+34 (J) Subtract an amount equal to the deduction disallowed
4943+35 under Section 280C(h) of the Internal Revenue Code.
4944+36 (3) Make the following adjustments:
4945+37 (A) Subtract the amount of any interest expense paid or
4946+38 accrued in the current taxable year but not deducted as a result
4947+39 of the limitation imposed under Section 163(j)(1) of the
4948+40 Internal Revenue Code.
4949+41 (B) Add any interest expense paid or accrued in a previous
4950+42 taxable year but allowed as a deduction under Section 163 of
4951+ES 419—LS 6606/DI 120 113
4952+1 the Internal Revenue Code in the current taxable year.
4953+2 (C) For taxable years beginning after December 31, 2021,
4954+3 add or subtract amounts related to specified research or
4955+4 experimental procedures as required under IC 6-3-2-29.
4956+5 For purposes of this subdivision, an interest expense is considered
4957+6 paid or accrued only in the first taxable year the deduction would
4958+7 have been allowable under Section 163 of the Internal Revenue
4959+8 Code if the limitation under Section 163(j)(1) of the Internal
4960+9 Revenue Code did not exist.
4961+10 (b) In the case of a credit union, "adjusted gross income" for a
4962+11 taxable year means the total transfers to undivided earnings minus
4963+12 dividends for that taxable year after statutory reserves are set aside
4964+13 under IC 28-7-1-24.
4965+14 (c) In the case of an investment company, "adjusted gross income"
4966+15 means the company's federal taxable income adjusted as follows:
4967+16 (1) Add the amount excluded from federal gross income under
4968+17 Section 103 of the Internal Revenue Code for interest received on
4969+18 an obligation of a state other than Indiana, or a political
4970+19 subdivision of such a state, that is acquired by the taxpayer after
4971+20 December 31, 2011.
4972+21 (2) Make the following adjustments:
4973+22 (A) Subtract the amount of any interest expense paid or
4974+23 accrued in the current taxable year but not deducted as a result
4975+24 of the limitation imposed under Section 163(j)(1) of the
4976+25 Internal Revenue Code.
4977+26 (B) Add any interest expense paid or accrued in a previous
4978+27 taxable year but allowed as a deduction under Section 163 of
4979+28 the Internal Revenue Code in the current taxable year.
4980+29 For purposes of this subdivision, an interest expense is considered
4981+30 paid or accrued only in the first taxable year the deduction would
4982+31 have been allowable under Section 163 of the Internal Revenue
4983+32 Code if the limitation under Section 163(j)(1) of the Internal
4984+33 Revenue Code did not exist.
4985+34 (3) Multiply the amount determined after the adjustments in
4986+35 subdivisions (1) and (2) by the quotient of:
4987+36 (A) the aggregate of the gross payments collected by the
4988+37 company during the taxable year from old and new business
4989+38 upon investment contracts issued by the company and held by
4990+39 residents of Indiana; divided by
4991+40 (B) the total amount of gross payments collected during the
4992+41 taxable year by the company from the business upon
4993+42 investment contracts issued by the company and held by
4994+ES 419—LS 6606/DI 120 114
4995+1 persons residing within Indiana and elsewhere.
4996+2 (d) As used in subsection (c), "investment company" means a
4997+3 person, copartnership, association, limited liability company, or
4998+4 corporation, whether domestic or foreign, that:
4999+5 (1) is registered under the Investment Company Act of 1940 (15
5000+6 U.S.C. 80a-1 et seq.); and
5001+7 (2) solicits or receives a payment to be made to itself and issues
5002+8 in exchange for the payment:
5003+9 (A) a so-called bond;
5004+10 (B) a share;
5005+11 (C) a coupon;
5006+12 (D) a certificate of membership;
5007+13 (E) an agreement;
5008+14 (F) a pretended agreement; or
5009+15 (G) other evidences of obligation;
5010+16 entitling the holder to anything of value at some future date, if the
5011+17 gross payments received by the company during the taxable year
5012+18 on outstanding investment contracts, plus interest and dividends
5013+19 earned on those contracts (by prorating the interest and dividends
5014+20 earned on investment contracts by the same proportion that
5015+21 certificate reserves (as defined by the Investment Company Act
5016+22 of 1940) is to the company's total assets) is at least fifty percent
5017+23 (50%) of the company's gross payments upon investment
5018+24 contracts plus gross income from all other sources except
5019+25 dividends from subsidiaries for the taxable year. The term
5020+26 "investment contract" means an instrument listed in clauses (A)
5021+27 through (G).
5022+28 (e) If a partner is required to include an item of income, a deduction,
5023+29 or another tax attribute in the partner's adjusted gross income tax return
5024+30 pursuant to IC 6-3-4.5, such item shall be considered to be includible
5025+31 in the partner's federal adjusted gross income or federal taxable
5026+32 income, regardless of whether such item is actually required to be
5027+33 reported by the partner for federal income tax purposes. For purposes
5028+34 of this subsection:
5029+35 (1) items for which a valid election is made under IC 6-3-4.5-6,
5030+36 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
5031+37 in the partner's adjusted gross income or taxable income; and
5032+38 (2) items for which the partnership did not make an election under
5033+39 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
5034+40 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
5035+41 shall be included in the partner's adjusted gross income or taxable
5036+42 income.
5037+ES 419—LS 6606/DI 120 115
5038+1 SECTION 52. IC 6-5.5-2-1, AS AMENDED BY P.L.80-2014,
5039+2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5040+3 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 1. (a) There is imposed
5041+4 on each taxpayer a franchise tax measured by the taxpayer's
5042+5 apportioned income for the privilege of exercising its franchise or the
5043+6 corporate privilege of transacting the business of a financial institution
5044+7 in Indiana. The amount of the tax for a taxable year shall be determined
5045+8 by multiplying the applicable rate under subsection (b) times the
5046+9 remainder of:
5047+10 (1) the taxpayer's apportioned income; minus
5048+11 (2) the taxpayer's deductible Indiana net operating losses as
5049+12 determined under this section; minus
5050+13 (3) the taxpayer's net capital losses minus the taxpayer's net
5051+14 capital gains computed under the Internal Revenue Code for each
5052+15 taxable year or part of a taxable year beginning after December
5053+16 31, 1989, multiplied by the apportionment percentage applicable
5054+17 to the taxpayer under this chapter for the taxable year of the loss.
5055+18 A net capital loss for a taxable year is a net capital loss carryover to
5056+19 each of the five (5) taxable years that follow the taxable year in which
5057+20 the loss occurred.
5058+21 (b) The following are the applicable tax rates to be used under
5059+22 subsection (a):
5060+23 (1) For taxable years beginning before January 1, 2014, eight and
5061+24 five-tenths percent (8.5%).
5062+25 (2) For taxable years beginning after December 31, 2013, and
5063+26 before January 1, 2015, eight percent (8.0%).
5064+27 (3) For taxable years beginning after December 31, 2014, and
5065+28 before January 1, 2016, seven and five-tenths percent (7.5%).
5066+29 (4) For taxable years beginning after December 31, 2015, and
5067+30 before January 1, 2017, seven percent (7.0%).
5068+31 (5) For taxable years beginning after December 31, 2016, and
5069+32 before January 1, 2019, six and five-tenths percent (6.5%).
5070+33 (6) For taxable years beginning after December 31, 2018, and
5071+34 before January 1, 2020, six and twenty-five hundredths percent
5072+35 (6.25%).
5073+36 (7) For taxable years beginning after December 31, 2019, and
5074+37 before January 1, 2021, six percent (6.0%).
5075+38 (8) For taxable years beginning after December 31, 2020, and
5076+39 before January 1, 2022, five and five-tenths percent (5.5%).
5077+40 (9) For taxable years beginning after December 31, 2021, and
5078+41 before January 1, 2023, five percent (5.0%).
5079+42 (10) For taxable years beginning after December 31, 2022, four
5080+ES 419—LS 6606/DI 120 116
5081+1 and nine-tenths percent (4.9%).
5082+2 (c) The amount of net operating losses deductible under subsection
5083+3 (a) is an amount equal to the net operating losses computed under the
5084+4 Internal Revenue Code, adjusted for the items set forth in IC 6-5.5-1-2,
5085+5 that are:
5086+6 (1) incurred in each taxable year, or part of a year, beginning after
5087+7 December 31, 1989; and
5088+8 (2) attributable to Indiana.
5089+9 (d) The following apply to determining the amount of net operating
5090+10 losses that may be deducted under subsection (a):
5091+11 (1) The amount of net operating losses that is attributable to
5092+12 Indiana is the taxpayer's total net operating losses under the
5093+13 Internal Revenue Code for the taxable year of the loss, adjusted
5094+14 for the items set forth in IC 6-5.5-1-2, multiplied by the
5095+15 apportionment percentage applicable to the taxpayer under this
5096+16 chapter for the taxable year of the loss.
5097+17 (2) A net operating loss for any taxable year is a net operating loss
5098+18 carryover to each of the fifteen (15) taxable years that follow the
5099+19 taxable year in which the loss occurred.
5100+20 (3) If the taxpayer has discharge of indebtedness excluded
5101+21 from federal gross income under Section 108(a)(1)(A), Section
5102+22 108(a)(1)(B), or Section 108(a)(1)(C) of the Internal Revenue
5103+23 Code, the Indiana net operating loss available for use or
5104+24 carryover shall be reduced by the remainder of:
5105+25 (A) the amount of discharge of indebtedness excluded from
5106+26 federal gross income, multiplied by the apportionment
5107+27 percentage applicable to the taxpayer under this chapter
5108+28 or IC 6-3 for the year of discharge; minus
5109+29 (B) the amount of discharge of indebtedness excluded from
5110+30 federal gross income that reduced the tax attributes under
5111+31 Section 108(b)(2)(D), Section 108(b)(2)(E), or Section
5112+32 108(b)(2)(F) of the Internal Revenue Code or was applied
5113+33 for federal tax purposes under Section 108(b)(5) of the
5114+34 Internal Revenue Code, multiplied by the apportionment
5115+35 percentage applicable to the taxpayer under this chapter
5116+36 or IC 6-3 for the year of discharge.
5117+37 (4) For purposes of applying this subsection, the amount of
5118+38 the reduction computed under subdivision (3) shall be
5119+39 applied:
5120+40 (A) first, as if the discharge of indebtedness was a
5121+41 modification of an item set forth in IC 6-5.5-1-2 that
5122+42 increased the taxpayer's adjusted gross income for the
5123+ES 419—LS 6606/DI 120 117
5124+1 taxable year to zero (0), but only if the amount determined
5125+2 after modifications under IC 6-5.5-1-2 was less than zero
5126+3 (0); and
5127+4 (B) after the application required under clause (A), as if
5128+5 the discharge of indebtedness was part of the taxpayer's
5129+6 apportioned income under subsection (a)(1), and prorated
5130+7 for the taxable year of discharge between taxpayer
5131+8 members of a unitary group as provided in subsection
5132+9 (e)(1). However, if the application of this clause results in
5133+10 a net operating loss of a member being reduced to zero (0),
5134+11 the excess shall not be considered income of the taxpayer
5135+12 nor shall it reduce the net operating loss of any other
5136+13 taxpayer member of a unitary group.
5137+14 (5) For purposes of subdivisions (3) and (4), the provisions of
5138+15 Section 108(d)(6) and Section 108(d)(7) of the Internal
5139+16 Revenue Code shall apply.
5140+17 (e) The following provisions apply to a combined return computing
5141+18 the tax on the basis of the income of the unitary group when the return
5142+19 is filed for more than one (1) taxpayer member of the unitary group for
5143+20 any taxable year:
5144+21 (1) Any net capital loss or net operating loss attributable to
5145+22 Indiana in the combined return shall be prorated between each
5146+23 taxpayer member of the unitary group by the quotient of:
5147+24 (A) the receipts of that taxpayer member attributable to
5148+25 Indiana under section 4 of this chapter; divided by
5149+26 (B) the receipts of all taxpayer members of the unitary group
5150+27 attributable to Indiana.
5151+28 (2) The net capital loss or net operating loss for that year, if any,
5152+29 to be carried forward to any subsequent year shall be limited to
5153+30 the capital gains or apportioned income for the subsequent year
5154+31 of that taxpayer, determined by the same receipts formula set out
5155+32 in subdivision (1).
5156+33 SECTION 53. IC 6-5.5-2-7, AS AMENDED BY P.L.129-2014,
5157+34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5158+35 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 7. Notwithstanding any
5159+36 other provision of this article, there is no tax imposed on the adjusted
5160+37 gross income or apportioned income of the following:
5161+38 (1) Insurance companies or organizations offering nonprofit
5162+39 agricultural organization insurance coverage subject to the tax
5163+40 under any of the following:
5164+41 (A) IC 27-1-18-2.
5165+42 (B) IC 27-1-2-2.3.
5166+ES 419—LS 6606/DI 120 118
5167+1 (C) IC 6-3.
5168+2 (D) IC 6-8-15.
5169+3 (2) International banking facilities (as defined in Regulation D of
5170+4 the Board of Governors of the Federal Reserve System).
5171+5 (3) Any corporation that is exempt from income tax under Section
5172+6 1363 of the Internal Revenue Code.
5173+7 (4) Any corporation exempt from federal income taxation under
5174+8 the Internal Revenue Code, except for the corporation's unrelated
5175+9 business income. However, this exemption does not apply to a
5176+10 corporation exempt from federal income taxation under Section
5177+11 501(c)(14) of the Internal Revenue Code.
5178+12 SECTION 54. IC 6-6-2.5-6.5 IS ADDED TO THE INDIANA
5179+13 CODE AS A NEW SECTION TO READ AS FOLLOWS
5180+14 [EFFECTIVE JULY 1, 2023]: Sec. 6.5. As used in this chapter,
5181+15 "compressed natural gas product fuel station" means a fuel station
5182+16 that purchases special fuel, converts it into compressed natural gas
5183+17 product, and sells the compressed natural gas product from a
5184+18 metered pump at the same location.
5185+19 SECTION 55. IC 6-6-2.5-30, AS AMENDED BY P.L.218-2017,
5186+20 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5187+21 JULY 1, 2023]: Sec. 30. (a) The following are exempt from the special
5188+22 fuel tax:
5189+23 (1) Special fuel sold by a supplier to a licensed exporter for export
5190+24 from Indiana to another state or country to which the exporter is
5191+25 specifically licensed to export exports by a supplier, or exports for
5192+26 which the destination state special fuel tax has been paid to the
5193+27 supplier and proof of export is available in the form of a
5194+28 destination state bill of lading.
5195+29 (2) Special fuel sold to the United States or an agency or
5196+30 instrumentality thereof.
5197+31 (3) Special fuel sold to a post exchange or other concessionaire on
5198+32 a federal reservation within Indiana. However, the post exchange
5199+33 or concessionaire shall collect, report, and pay quarterly to the
5200+34 department any tax permitted by federal law on special fuel sold.
5201+35 (4) Special fuel sold to a public transportation corporation
5202+36 established under IC 36-9-4 and used for the transportation of
5203+37 persons for compensation within the territory of the corporation.
5204+38 (5) Special fuel sold to a public transit department of a
5205+39 municipality and used for the transportation of persons for
5206+40 compensation within a service area, no part of which is more than
5207+41 five (5) miles outside the corporate limits of the municipality.
5208+42 (6) Special fuel sold to a common carrier of passengers, including
5209+ES 419—LS 6606/DI 120 119
5210+1 a business operating a taxicab (as defined in IC 6-6-1.1-103(l))
5211+2 and used by the carrier to transport passengers within a service
5212+3 area that is not larger than one (1) county, and counties
5213+4 contiguous to that county.
5214+5 (7) The portion of special fuel determined by the commissioner to
5215+6 have been used to operate equipment attached to a motor vehicle,
5216+7 if the special fuel was placed into the fuel supply tank of a motor
5217+8 vehicle that has a common fuel reservoir for travel on a highway
5218+9 and for the operation of equipment.
5219+10 (8) Special fuel used for nonhighway purposes, used as heating
5220+11 oil, or in trains.
5221+12 (9) Special fuel sold by a supplier to an unlicensed person for
5222+13 export from Indiana to another state and the special fuel has been
5223+14 dye addityzed in accordance with section 31 of this chapter.
5224+15 (10) Sales of transmix between licensed suppliers.
5225+16 (11) Special fuel sold or removed via truck or rail from a terminal
5226+17 or refinery, if the destination is an Indiana terminal or refinery.
5227+18 (12) Special fuel received at an Indiana terminal or refinery, if the
5228+19 tax on the special fuel has previously been paid. If this
5229+20 subdivision applies, the receiving supplier is entitled to a credit
5230+21 on the receiving supplier's Indiana Special Fuel Supplier's Tax
5231+22 Return for the tax paid to the receiving supplier's vendor or
5232+23 directly to the state.
5233+24 (13) The difference between the amount of special fuel
5234+25 purchased by a compressed natural gas product fuel station
5235+26 and the amount of compressed natural gas product produced
5236+27 and sold by the compressed natural gas product fuel station.
5237+28 (b) The exemption from tax provided under subsection (a)(4)
5238+29 through (a)(7) shall be applied for through the refund procedures
5239+30 established in section 32 of this chapter. The exemption from tax
5240+31 provided under subsection (a)(13) shall be applied for through the
5241+32 refund procedures established in section 32.7 of this chapter.
5242+33 (c) The department shall provide information to licensed suppliers
5243+34 of the destination state or states to which exporters are authorized to
5244+35 export.
5245+36 (d) Subject to gallonage limits and other conditions established by
5246+37 the department, the department shall provide for refund of the tax
5247+38 imposed by this chapter to a wholesale distributor exporting undyed
5248+39 special fuel out of a bulk plant in this state in a vehicle capable of
5249+40 carrying not more than five thousand four hundred (5,400) gallons if
5250+41 the destination of that vehicle does not exceed twenty-five (25) miles
5251+42 from the border of Indiana.
5252+ES 419—LS 6606/DI 120 120
5253+1 SECTION 56. IC 6-6-2.5-32 IS AMENDED TO READ AS
5254+2 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 32. (a) Special fuel tax
5255+3 that has been collected by a supplier on special fuel used for an exempt
5256+4 purpose, including section 30(a)(4) through 30(a)(7) of this chapter and
5257+5 pretaxed exempt fuel under section 30(a)(8) of this chapter, but which
5258+6 was not dyed or marked, or both, in accordance with section 31 of this
5259+7 chapter, shall be refunded by the department to the user or the user's
5260+8 assignee under rules adopted by the department, in accordance with
5261+9 subsection (c), upon presentation of proof of exempt use by the end
5262+10 user in the form that the department prescribes. A person that claims
5263+11 a refund under section 32.7 of this chapter for special fuel tax
5264+12 collected on compressed natural gas product may not claim a
5265+13 refund under this subsection for the same special fuel tax.
5266+14 (b) Special fuel tax that has been collected by a supplier on special
5267+15 fuel that was removed from a terminal or refinery for delivery in
5268+16 Indiana, and was exported by a licensed exporter shall be refunded by
5269+17 the department to the licensed exporter in accordance with subsection
5270+18 (c), upon presentation of proof of export in the form that the
5271+19 department prescribes.
5272+20 (c) Special fuel tax that has been erroneously paid by a person shall
5273+21 be refunded by the department in accordance with subsection (d).
5274+22 (d) To claim a refund under subsection subsections (a) through (c),
5275+23 a person must present to the department a statement that contains a
5276+24 written verification that the claim is made under penalties of perjury
5277+25 and lists the total amount of special fuel purchased and used for
5278+26 non-highway purposes. The claim must be filed not more than three (3)
5279+27 years after the date the special fuel was purchased. The statement must
5280+28 show that payment for the purchase has been made and the amount of
5281+29 tax paid on the purchase has been remitted.
5282+30 (e) The department may make any investigations it considers
5283+31 necessary before refunding the special fuel tax to a person.
5284+32 SECTION 57. IC 6-6-2.5-32.7 IS ADDED TO THE INDIANA
5285+33 CODE AS A NEW SECTION TO READ AS FOLLOWS
5286+34 [EFFECTIVE JULY 1, 2023]: Sec. 32.7. (a) A person is entitled to a
5287+35 quarterly refund of the special fuel tax paid under this chapter on
5288+36 the difference between the amount of special fuel purchased by a
5289+37 compressed natural gas product fuel station and the amount of
5290+38 compressed natural gas product produced and sold by the
5291+39 compressed natural gas product fuel station. The refund amount
5292+40 is in addition to the collection allowance the person may receive
5293+41 under section 37 of this chapter. A person that claims a refund
5294+42 under section 32 of this chapter for special fuel tax may not claim
5295+ES 419—LS 6606/DI 120 121
5296+1 a refund under this section for the same special fuel tax.
5297+2 (b) To qualify for a quarterly refund under this section, a
5298+3 person shall submit to the department a statement that contains a
5299+4 written verification that the claim is made under penalties of
5300+5 perjury and lists the total amount of natural gas purchased and the
5301+6 total amount of compressed natural gas for which the person
5302+7 claims a refund. The claim must be filed not later than the end of
5303+8 the third month following the end of the calendar quarter the
5304+9 compressed natural gas qualified for a special fuel tax refund
5305+10 under subsection (a). No interest may be paid on a refund made
5306+11 under this section.
5307+12 (c) A refund claim must be in the form prescribed by the
5308+13 department and include any information reasonably requested by
5309+14 the department.
5310+15 (d) The department may make any investigations it considers
5311+16 necessary before refunding the tax to a person.
5312+17 SECTION 58. IC 6-6-2.5-37 IS AMENDED TO READ AS
5313+18 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 37. (a) Every supplier
5314+19 and permissive supplier who properly remits tax under this chapter
5315+20 shall be allowed to retain one and six-tenths percent (1.6%) of the tax
5316+21 to cover the costs of collecting, reporting, and timely remitting the tax
5317+22 imposed by this chapter.
5318+23 (b) The amount that the supplier is permitted to retain under
5319+24 subsection (a) shall be distributed by the supplier as follows:
5320+25 (1) One-third (1/3) retained by the supplier.
5321+26 (2) Two-thirds (2/3) to the wholesale distributor. If the special
5322+27 fuel is resold by that wholesale distributor or another wholesale
5323+28 distributor to an eligible purchaser, the last wholesale distributor
5324+29 in the distribution process shall pass on one-half (1/2) of the
5325+30 two-thirds (2/3) to the eligible purchaser.
5326+31 (3) If an eligible purchaser is the direct purchaser from a supplier,
5327+32 and that retail dealer or bulk end user is responsible for shipping
5328+33 the product, then the supplier shall pass through two-thirds (2/3)
5329+34 to the retail dealer or bulk end user. If the supplier is responsible
5330+35 for shipping the product, the supplier shall retain two-thirds (2/3)
5331+36 and pass through one-third (1/3) to the eligible purchaser.
5332+37 The amount a person receives under this subsection is in addition
5333+38 to the amount of the person's refund claim under section 32.7 of
5334+39 this chapter.
5335+40 (c) If a monthly report is filed or the amount due is remitted later
5336+41 than the time required by this chapter, the supplier shall pay to the
5337+42 department all of the special fuel tax the dealer collected from the sale
5338+ES 419—LS 6606/DI 120 122
5339+1 of special fuel during the reporting period.
5340+2 SECTION 59. IC 6-6-6.5-1, AS AMENDED BY P.L.245-2015,
5341+3 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5342+4 UPON PASSAGE]: Sec. 1. As used in this chapter, unless the context
5343+5 clearly indicates otherwise:
5344+6 (a) "Aircraft" means a device which is designed to provide air
5345+7 transportation for one (1) or more individuals or for cargo.
5346+8 (b) "State" means the state of Indiana.
5347+9 (c) "Department" refers to the department of state revenue.
5348+10 (d) "Person" includes an individual, a partnership, a firm, a
5349+11 corporation, a limited liability company, an association, a trust, or an
5350+12 estate, or a legal representative of such.
5351+13 (e) "Owner" means a person who holds or is required to obtain a
5352+14 certificate of registration from the Federal Aviation Administration for
5353+15 a specific aircraft. In the event an aircraft is the subject of an agreement
5354+16 for the conditional sale or lease with the right of purchase upon the
5355+17 performance of the conditions stated in the agreement and with an
5356+18 immediate right of possession of the aircraft vested in the conditional
5357+19 vendee or lessee, or in the event the mortgagor of an aircraft is entitled
5358+20 to possession, then the conditional vendee or lessee or mortgagor shall
5359+21 be deemed to be the owner for purposes of this chapter.
5360+22 (f) "Dealer" means a person who has an established place of
5361+23 business in this state, is required to obtain a certificate under
5362+24 IC 6-2.5-8-1 or IC 6-2.5-8-3 (before its repeal), and is engaged in the
5363+25 business of manufacturing, buying, selling, or exchanging new or used
5364+26 aircraft.
5365+27 (g) "Maximum landing weight" means the maximum weight of the
5366+28 aircraft, accessories, fuel, pilot, passengers, and cargo that is permitted
5367+29 on landing under the best conditions, as determined for an aircraft by
5368+30 the appropriate federal agency or the certified allowable gross weight
5369+31 published by the manufacturer of the aircraft.
5370+32 (h) "Resident" means an individual or a fiduciary who resides or is
5371+33 domiciled within Indiana or any corporation or business association
5372+34 which maintains a fixed and established place of business within
5373+35 Indiana for a period of more than sixty (60) days in any one (1) year.
5374+36 (i) "Taxable aircraft" means an aircraft required to be registered
5375+37 with the department by this chapter.
5376+38 (j) "Regular annual registration date" means the last day of
5377+39 December of each year.
5378+40 (k) "Taxing district" means a geographic area within which property
5379+41 is taxed by the same taxing units and at the same total rate.
5380+42 (l) "Taxing unit" means an entity which has the power to impose ad
5381+ES 419—LS 6606/DI 120 123
5382+1 valorem property taxes.
5383+2 (m) "Base" means the location or place where the aircraft is
5384+3 normally hangared, tied down, housed, parked, or kept, when not in
5385+4 use.
5386+5 (n) "Homebuilt aircraft" means an aircraft constructed primarily by
5387+6 an individual for personal use. The term homebuilt aircraft does not
5388+7 include an aircraft constructed primarily by a for-profit aircraft
5389+8 manufacturing business.
5390+9 (o) "Pressurized aircraft" means an aircraft equipped with a system
5391+10 designed to control the atmospheric pressure in the crew or passenger
5392+11 cabins.
5393+12 (p) "Establishing a base" means renting or leasing a hangar or tie
5394+13 down for a particular aircraft for at least thirty-one (31) days.
5395+14 (q) "Inventory aircraft" means an aircraft held for resale by a
5396+15 registered Indiana dealer.
5397+16 (r) "Repair station" means a person who holds a repair station
5398+17 certificate that was issued to the person by the Federal Aviation
5399+18 Administration under 14 CFR Part 145.
5400+19 SECTION 60. IC 6-7-4-8, AS ADDED BY P.L.165-2021,
5401+20 SECTION 119, IS AMENDED TO READ AS FOLLOWS
5402+21 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) Except as provided in
5403+22 subsection (b), as used in this chapter, "vapor product" means any of
5404+23 the following:
5405+24 (1) A device, such as an electronic cigarette, that employs a
5406+25 mechanical heating element, battery, or electronic circuit,
5407+26 regardless of shape or size, that can be used to produce vapor
5408+27 from consumable material that may or may not be sold with the
5409+28 device.
5410+29 (2) Any open system container of a consumable material in a
5411+30 solution or other form that is intended to be used with or in a
5412+31 device described in subdivision (1).
5413+32 (3) Disposable vapor product devices that are attached to a closed
5414+33 system cartridge and intended for single use.
5415+34 (b) The term "vapor product" does not include closed system
5416+35 cartridges (as defined in IC 6-7-2-0.5).
5417+36 SECTION 61. IC 6-7-4-10, AS ADDED BY P.L.165-2021,
5418+37 SECTION 119, IS AMENDED TO READ AS FOLLOWS
5419+38 [EFFECTIVE JULY 1, 2023]: Sec. 10. (a) It is unlawful for any retail
5420+39 dealer to sell consumable material or vapor products in Indiana unless
5421+40 the retail dealer has a valid open system electronic cigarette retail
5422+41 dealer's certificate issued by the department.
5423+42 (b) The department shall issue certificates to applicants that qualify
5424+ES 419—LS 6606/DI 120 124
5425+1 under this section. A certificate issued under this section is valid for
5426+2 one (1) year unless revoked or suspended by the department and is not
5427+3 transferable. An open system electronic cigarette retail dealer's
5428+4 certificate may be revoked or suspended by the department in the same
5429+5 manner, for the same reasons, and is subject to the same procedures as
5430+6 for the revocation or suspension of a retail merchant's certificate under
5431+7 IC 6-2.5-8-7. If a retail dealer's retail merchant's certificate under
5432+8 IC 6-2.5-8 expires or is revoked by the department, an open system
5433+9 electronic cigarette retail dealer's certificate issued to the retail dealer
5434+10 under this subsection shall automatically be revoked without notice
5435+11 otherwise required under IC 6-2.5-8.
5436+12 (c) An applicant for a certificate under this section must submit
5437+13 proof to the department of the appointment of an agent for service of
5438+14 process in Indiana if the applicant is:
5439+15 (1) an individual whose principal place of residence is outside
5440+16 Indiana; or
5441+17 (2) a person, other than an individual, that has its principal place
5442+18 of business outside Indiana.
5443+19 (d) To obtain or renew a certificate under this section, a person
5444+20 must:
5445+21 (1) submit, for each location where it intends to distribute
5446+22 consumable material or vapor products, an application that
5447+23 includes all information required by the department;
5448+24 (2) pay a fee of twenty-five dollars ($25) at the time of
5449+25 application; and
5450+26 (3) at the time of application, post a bond, issued by a surety
5451+27 company approved by the department, in an amount not less than
5452+28 one thousand dollars ($1,000) and conditioned on the applicant's
5453+29 compliance with this chapter.
5454+30 (e) If business is transacted at two (2) or more places by one (1)
5455+31 retail dealer, a separate certificate must be obtained for each place of
5456+32 business.
5457+33 (f) Each certificate must be numbered, show the name and address
5458+34 of the retail dealer, and be posted in a conspicuous place at the place
5459+35 of business for which it is issued.
5460+36 (g) If the department determines that a bond provided by a
5461+37 certificate is inadequate, the department may require a new bond in the
5462+38 amount necessary to fully protect the state.
5463+39 SECTION 62. IC 6-8-15-5, AS ADDED BY P.L.154-2020,
5464+40 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5465+41 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 5. If an organization
5466+42 provides nonprofit agricultural organization coverage in Indiana, the
5467+ES 419—LS 6606/DI 120 125
5468+1 organization is subject to a nonprofit agricultural organization health
5469+2 coverage tax under this chapter unless the organization:
5470+3 (1) files a notice of election with the insurance commissioner
5471+4 and the commissioner of the department on or before
5472+5 November 30 of a taxable year; and
5473+6 (2) states in the notice of election that the organization elects
5474+7 to be subject to the tax imposed under IC 6-3-1 through
5475+8 IC 6-3-7 for the taxable year.
5476+9 SECTION 63. IC 6-8.1-7-1, AS AMENDED BY P.L.137-2022,
5477+10 SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5478+11 UPON PASSAGE]: Sec. 1. (a) This subsection does not apply to the
5479+12 disclosure of information concerning a conviction on a tax evasion
5480+13 charge. Unless in accordance with a judicial order or as otherwise
5481+14 provided in this chapter, the department, its employees, former
5482+15 employees, counsel, agents, or any other person may not divulge the
5483+16 amount of tax paid by any taxpayer, terms of a settlement agreement
5484+17 executed between a taxpayer and the department, investigation records,
5485+18 investigation reports, or any other information disclosed by the reports
5486+19 filed under the provisions of the law relating to any of the listed taxes,
5487+20 including required information derived from a federal return, except to
5488+21 any of the following when it is agreed that the information is to be
5489+22 confidential and to be used solely for official purposes:
5490+23 (1) Members and employees of the department.
5491+24 (2) The governor.
5492+25 (3) A member of the general assembly or an employee of the
5493+26 house of representatives or the senate when acting on behalf of a
5494+27 taxpayer located in the member's legislative district who has
5495+28 provided sufficient information to the member or employee for
5496+29 the department to determine that the member or employee is
5497+30 acting on behalf of the taxpayer.
5498+31 (4) An employee of the legislative services agency to carry out the
5499+32 responsibilities of the legislative services agency under
5500+33 IC 2-5-1.1-7 or another law.
5501+34 (5) The attorney general or any other legal representative of the
5502+35 state in any action in respect to the amount of tax due under the
5503+36 provisions of the law relating to any of the listed taxes.
5504+37 (6) Any authorized officers of the United States.
5505+38 (b) The information described in subsection (a) may be revealed
5506+39 upon the receipt of a certified request of any designated officer of the
5507+40 state tax department of any other state, district, territory, or possession
5508+41 of the United States when:
5509+42 (1) the state, district, territory, or possession permits the exchange
5510+ES 419—LS 6606/DI 120 126
5511+1 of like information with the taxing officials of the state; and
5512+2 (2) it is agreed that the information is to be confidential and to be
5513+3 used solely for tax collection purposes.
5514+4 (c) The information described in subsection (a) relating to a person
5515+5 on public welfare or a person who has made application for public
5516+6 welfare may be revealed to the director of the division of family
5517+7 resources, and to any director of a county office of the division of
5518+8 family resources located in Indiana, upon receipt of a written request
5519+9 from either director for the information. The information shall be
5520+10 treated as confidential by the directors. In addition, the information
5521+11 described in subsection (a) relating to a person who has been
5522+12 designated as an absent parent by the state Title IV-D agency shall be
5523+13 made available to the state Title IV-D agency upon request. The
5524+14 information shall be subject to the information safeguarding provisions
5525+15 of the state and federal Title IV-D programs.
5526+16 (d) The name, address, Social Security number, and place of
5527+17 employment relating to any individual who is delinquent in paying
5528+18 educational loans owed to a postsecondary educational institution may
5529+19 be revealed to that institution if it provides proof to the department that
5530+20 the individual is delinquent in paying for educational loans. This
5531+21 information shall be provided free of charge to approved postsecondary
5532+22 educational institutions (as defined by IC 21-7-13-6(a)). The
5533+23 department shall establish fees that all other institutions must pay to the
5534+24 department to obtain information under this subsection. However, these
5535+25 fees may not exceed the department's administrative costs in providing
5536+26 the information to the institution.
5537+27 (e) The information described in subsection (a) relating to reports
5538+28 submitted under IC 6-6-1.1-502 concerning the number of gallons of
5539+29 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
5540+30 gallons of special fuel sold by a supplier and the number of gallons of
5541+31 special fuel exported by a licensed exporter or imported by a licensed
5542+32 transporter may be released by the commissioner upon receipt of a
5543+33 written request for the information.
5544+34 (f) The information described in subsection (a) may be revealed
5545+35 upon the receipt of a written request from the administrative head of a
5546+36 state agency of Indiana when:
5547+37 (1) the state agency shows an official need for the information;
5548+38 and
5549+39 (2) the administrative head of the state agency agrees that any
5550+40 information released will be kept confidential and will be used
5551+41 solely for official purposes.
5552+42 (g) The information described in subsection (a) may be revealed
5553+ES 419—LS 6606/DI 120 127
5554+1 upon the receipt of a written request from the chief law enforcement
5555+2 officer of a state or local law enforcement agency in Indiana when it is
5556+3 agreed that the information is to be confidential and to be used solely
5557+4 for official purposes.
5558+5 (h) The name and address of retail merchants, including township,
5559+6 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
5560+7 purposes to township assessors and county assessors.
5561+8 (i) The department shall notify the appropriate innkeeper's tax
5562+9 board, bureau, or commission that a taxpayer is delinquent in remitting
5563+10 innkeepers' taxes under IC 6-9.
5564+11 (j) All information relating to the delinquency or evasion of the
5565+12 vehicle excise tax may be disclosed to the bureau of motor vehicles in
5566+13 Indiana and may be disclosed to another state, if the information is
5567+14 disclosed for the purpose of the enforcement and collection of the taxes
5568+15 imposed by IC 6-6-5.
5569+16 (k) All information relating to the delinquency or evasion of
5570+17 commercial vehicle excise taxes payable to the bureau of motor
5571+18 vehicles in Indiana may be disclosed to the bureau and may be
5572+19 disclosed to another state, if the information is disclosed for the
5573+20 purpose of the enforcement and collection of the taxes imposed by
5574+21 IC 6-6-5.5.
5575+22 (l) All information relating to the delinquency or evasion of
5576+23 commercial vehicle excise taxes payable under the International
5577+24 Registration Plan may be disclosed to another state, if the information
5578+25 is disclosed for the purpose of the enforcement and collection of the
5579+26 taxes imposed by IC 6-6-5.5.
5580+27 (m) All information relating to the delinquency or evasion of the
5581+28 excise taxes imposed on recreational vehicles and truck campers that
5582+29 are payable to the bureau of motor vehicles in Indiana may be disclosed
5583+30 to the bureau and may be disclosed to another state if the information
5584+31 is disclosed for the purpose of the enforcement and collection of the
5585+32 taxes imposed by IC 6-6-5.1.
5586+33 (n) This section does not apply to:
5587+34 (1) the beer excise tax, including brand and packaged type
5588+35 (IC 7.1-4-2);
5589+36 (2) the liquor excise tax (IC 7.1-4-3);
5590+37 (3) the wine excise tax (IC 7.1-4-4);
5591+38 (4) the hard cider excise tax (IC 7.1-4-4.5);
5592+39 (5) the vehicle excise tax (IC 6-6-5);
5593+40 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
5594+41 (7) the fees under IC 13-23.
5595+42 (o) The name and business address of retail merchants within each
5596+ES 419—LS 6606/DI 120 128
5597+1 county that sell tobacco products may be released to the division of
5598+2 mental health and addiction and the alcohol and tobacco commission
5599+3 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
5600+4 (p) The name and business address of a person licensed by the
5601+5 department under IC 6-6 or IC 6-7, or issued a registered retail
5602+6 merchant's certificate under IC 6-2.5, may be released for the purpose
5603+7 of reporting the status of the person's license or certificate.
5604+8 (q) The department may release information concerning total
5605+9 incremental tax amounts under:
5606+10 (1) IC 5-28-26;
5607+11 (2) IC 36-7-13;
5608+12 (3) IC 36-7-26;
5609+13 (4) IC 36-7-27;
5610+14 (5) IC 36-7-31;
5611+15 (6) IC 36-7-31.3; or
5612+16 (7) any other statute providing for the calculation of incremental
5613+17 state taxes that will be distributed to or retained by a political
5614+18 subdivision or other entity;
5615+19 to the fiscal officer of the political subdivision or other entity that
5616+20 established the district or area from which the incremental taxes were
5617+21 received if that fiscal officer enters into an agreement with the
5618+22 department specifying that the political subdivision or other entity will
5619+23 use the information solely for official purposes.
5620+24 (r) The department may release the information as required in
5621+25 IC 6-8.1-3-7.1 concerning:
5622+26 (1) an innkeeper's tax, a food and beverage tax, or an admissions
5623+27 tax under IC 6-9;
5624+28 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
5625+29 (3) the covered taxes allocated to a professional sports
5626+30 development area fund, sports and convention facilities operating
5627+31 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
5628+32 (s) Information concerning state gross retail tax exemption
5629+33 certificates that relate to a person who is exempt from the state gross
5630+34 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
5631+35 defined in IC 6-2.5-1-22.5) or a person selling the services or
5632+36 commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
5633+37 collecting the state gross retail and use taxes under IC 6-2.5.
5634+38 (t) The department may release a statement of tax withholding or
5635+39 other tax information statement provided on behalf of a taxpayer to the
5636+40 department to:
5637+41 (1) the taxpayer on whose behalf the tax withholding or other tax
5638+42 information statement was provided to the department;
5639+ES 419—LS 6606/DI 120 129
5640+1 (2) the taxpayer's spouse, if:
5641+2 (A) the taxpayer is deceased or incapacitated; and
5642+3 (B) the taxpayer's spouse is filing a joint income tax return
5643+4 with the taxpayer; or
5644+5 (3) an administrator, executor, trustee, or other fiduciary acting on
5645+6 behalf of the taxpayer if the taxpayer is deceased.
5646+7 (u) Information related to a listed tax regarding a taxpayer may be
5647+8 disclosed to an individual without a power of attorney under
5648+9 IC 6-8.1-3-8(a)(2) if:
5649+10 (1) the individual is authorized to file returns and remit payments
5650+11 for one (1) or more listed taxes on behalf of the taxpayer through
5651+12 the department's online tax system before September 8, 2020;
5652+13 (2) the information relates to a listed tax described in subdivision
5653+14 (1) for which the individual is authorized to file returns and remit
5654+15 payments;
5655+16 (3) the taxpayer has been notified by the department of the
5656+17 individual's ability to access the taxpayer's information for the
5657+18 listed taxes described in subdivision (1) and the taxpayer has not
5658+19 objected to the individual's access;
5659+20 (4) the individual's authorization or right to access the taxpayer's
5660+21 information for a listed tax described in subdivision (1) has not
5661+22 been withdrawn by the taxpayer; and
5662+23 (5) disclosure of the information to the individual is not
5663+24 prohibited by federal law.
5664+25 Except as otherwise provided by this article, this subsection does not
5665+26 authorize the disclosure of any correspondence from the department
5666+27 that is mailed or otherwise delivered to the taxpayer relating to the
5667+28 specified listed taxes for which the individual was given authorization
5668+29 by the taxpayer. The department shall establish a date, which may be
5669+30 earlier but not later than September 1, 2023, after which a taxpayer's
5670+31 information concerning returns and remittances for a listed tax may not
5671+32 be disclosed to an individual without a power of attorney under
5672+33 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
5673+34 previously authorized individuals, including notification published on
5674+35 the department's Internet web site. website. After the earlier of the date
5675+36 established by the department or September 1, 2023, the department
5676+37 may not disclose a taxpayer's information concerning returns and
5677+38 remittances for a listed tax to an individual unless the individual has a
5678+39 power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
5679+40 otherwise allowed under this article.
5680+41 (v) The department may publish a list of persons, corporations,
5681+42 or other entities that qualify or have qualified for an exemption for
5682+ES 419—LS 6606/DI 120 130
5683+1 sales tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or
5684+2 otherwise provide information regarding a person's, corporation's,
5685+3 or entity's exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or
5686+4 IC 6-2.5-5-26. For purposes of this subsection, information that
5687+5 may be disclosed includes:
5688+6 (1) any federal identification number or other identification
5689+7 number for the entity assigned by the department;
5690+8 (2) any expiration date of an exemption under IC 6-2.5-5-25;
5691+9 (3) whether any sales tax exemption has expired or has been
5692+10 revoked by the department; and
5693+11 (4) any other information reasonably necessary for a recipient
5694+12 of an exemption certificate to determine if an exemption
5695+13 certificate is valid.
5696+14 SECTION 64. IC 6-8.1-9.5-10, AS AMENDED BY P.L.117-2018,
5697+15 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5698+16 JULY 1, 2023]: Sec. 10. (a) The department of state revenue may
5699+17 charge a debtor a fee of fifteen percent (15%) ten percent (10%) of
5700+18 any debts collected under this chapter as a collection fee for the
5701+19 department's services, not including any local collection assistance fees
5702+20 charged under subsection (b).
5703+21 (b) This subsection applies to a debt collected for a claimant agency
5704+22 that is a political subdivision described in section 1(1)(B) of this
5705+23 chapter. A local collection assistance fee not to exceed twenty dollars
5706+24 ($20) shall be imposed on each debt submitted by the claimant agency
5707+25 and collected through a set off under this chapter. The board of the
5708+26 nonprofit organization that operates the clearinghouse registered under
5709+27 section 3.5 of this chapter shall determine the amount of the fee by
5710+28 resolution. Notwithstanding any law concerning delinquent accounts,
5711+29 charges, fees, loans, taxes, or other indebtedness, the local collection
5712+30 assistance fee shall be added to the amount due the claimant agency
5713+31 when the collection is made, not including any fee charged by the
5714+32 department of state revenue under subsection (a). A fee collected under
5715+33 this subsection shall be distributed by the department to:
5716+34 (1) the nonprofit entity with which the department has entered
5717+35 into a contract under section 3.5(b) of this chapter; or
5718+36 (2) at the direction of the nonprofit entity, the nonprofit entity's
5719+37 account held by the investment pool.
5720+38 SECTION 65. IC 6-8.1-10-9.5 IS ADDED TO THE INDIANA
5721+39 CODE AS A NEW SECTION TO READ AS FOLLOWS
5722+40 [EFFECTIVE JANUARY 1, 2024]: Sec. 9.5. (a) As used in this
5723+41 section, the following terms have the following meanings:
5724+42 (1) "Successor in liability" means a person that directly or
5725+ES 419—LS 6606/DI 120 131
5726+1 indirectly purchases, acquires, is gifted, or succeeds to
5727+2 ownership of more than one-half (1/2) of all tangible personal
5728+3 property of a business, by value, including inventory, at all
5729+4 locations combined, as measured by the value of the property
5730+5 at the time of the transfer. "Successor in liability" does not
5731+6 include a personal representative or beneficiary of an estate,
5732+7 a trustee in bankruptcy, a debtor in possession, a receiver, a
5733+8 secured party, a mortgagee, an assignee of rents, or any other
5734+9 lienholder. A person shall only be considered a successor in
5735+10 liability to the extent that:
5736+11 (A) a department lien or liens exist on tangible personal
5737+12 property transferred to the person;
5738+13 (B) all tax due by the transferring business to the extent
5739+14 that notice was not provided to the department as required
5740+15 by subsection (b); or
5741+16 (C) any tax due was included in the summary mailed to the
5742+17 successor in liability by the department pursuant to
5743+18 subsection (c).
5744+19 (2) "Purchase price" means the consideration paid or to be
5745+20 paid by the successor in liability to the transferring business
5746+21 for the transfer of tangible personal property. "Purchase
5747+22 price" also includes debts assumed or forgiven by the
5748+23 successor in liability, or real or personal property conveyed or
5749+24 to be conveyed by the successor in liability to the transferring
5750+25 business.
5751+26 (3) "Arm's-length transaction" means a transfer for adequate
5752+27 consideration between independent parties both acting in
5753+28 their own best interests. If the parties are related to each
5754+29 other, a rebuttable presumption arises that the transaction is
5755+30 not at arm's length.
5756+31 (4) "Transfer" means every mode, direct or indirect, absolute
5757+32 or conditional, voluntary or involuntary, of disposing of or
5758+33 parting with a business or an interest in a business, or a stock
5759+34 of goods, whether by gift or for consideration. "Transfer"
5760+35 includes a change in the type of business entity or the name of
5761+36 the business, where one (1) business is discontinued and a new
5762+37 business is started. "Transfer" also includes the acquisition by
5763+38 a new corporation of the assets of a prior business in exchange
5764+39 for the stock of the new corporation. "Transfer" does not
5765+40 include an assignment for the benefit of creditors, foreclosure
5766+41 or enforcement of a mortgage, assignment of rents, security
5767+42 interest or lien, sale or disposition in a bankruptcy
5768+ES 419—LS 6606/DI 120 132
5769+1 proceeding, or sale or disposition by a receiver.
5770+2 (5) "Transfer in bulk" means a transfer, other than in the
5771+3 ordinary course of the transferor's trade or business, of more
5772+4 than one-half (1/2) of all the tangible personal property of a
5773+5 business, by value, including inventory, at all locations
5774+6 combined, as measured by the value of the property at the
5775+7 time of the transfer.
5776+8 (6) "Tax" means the gross retail tax imposed by IC 6-2.5-2-1,
5777+9 the use tax imposed by IC 6-2.5-3-2, and any county
5778+10 innkeepers tax or food and beverage tax imposed by IC 6-9.
5779+11 (7) "Good cause" means the inability to comply with the
5780+12 statutory requirements of this section due to force majeure,
5781+13 fraud, failure of delivery by a carrier, or similar
5782+14 circumstances beyond the control of the successor. Lack of
5783+15 knowledge by the successor in liability of the requirements of
5784+16 this section shall not be considered good cause. Failure of a
5785+17 transferee or third party to provide the notice required by
5786+18 subsection (b) pursuant to a contractual obligation or
5787+19 informal understanding shall not be considered to be good
5788+20 cause.
5789+21 (b) Whenever a business engages in a transfer in bulk, at least
5790+22 forty-five (45) days before taking possession of the assets or paying
5791+23 the purchase price, the potential successor in liability or the
5792+24 transferring business shall notify the department of the transfer
5793+25 and the terms and conditions related to the transfer on a form
5794+26 prescribed by the department. The notice must include the tax
5795+27 identification number of the transferring business and the potential
5796+28 successor in liability.
5797+29 (c) The following apply:
5798+30 (1) If the notice is not provided to the department as required
5799+31 in subsection (b), the potential successor in liability becomes
5800+32 the successor in liability and becomes liable for any unpaid
5801+33 taxes, interest, and penalties due from the transferring
5802+34 business to the extent of the purchase price.
5803+35 (2) If the notice is provided as required in subsection (b) and,
5804+36 within twenty (20) days after receipt of the notice, the
5805+37 department places a summary in the United States mail
5806+38 addressed to the successor in liability specifying that tax
5807+39 liabilities exist in addition to those subject to a department
5808+40 lien or there are tax returns due but not filed, the successor in
5809+41 liability is liable for all taxes, interest, and penalties as stated
5810+42 in the department's summary to the extent of the purchase
5811+ES 419—LS 6606/DI 120 133
5812+1 price if the successor in liability pays the purchase price or
5813+2 takes possession of the assets without withholding and
5814+3 remitting the liability to the department. The successor in
5815+4 liability is liable whether the purchase price is paid or the
5816+5 assets are transferred prior to or after notification from the
5817+6 department.
5818+7 (3) If the department does not find any tax is due from the
5819+8 transferring business or that the transferring business has
5820+9 failed to file any returns that are due, the department must
5821+10 place a tax clearance letter in the United States mail
5822+11 addressed to the potential successor in liability within twenty
5823+12 (20) days after receipt of the notice required by subsection (b)
5824+13 specifying that no tax liabilities exist and that the transferee
5825+14 is not a successor in liability. The department shall issue the
5826+15 tax clearance letter even if the department determines that the
5827+16 transfer at issue does not constitute a transfer in bulk
5828+17 pursuant to subsection (a).
5829+18 (d) If, based upon the information available, the department
5830+19 determines that a transfer in bulk was not at arm's length or was
5831+20 a gift, the successor's liability under this section equals the value of
5832+21 the tangible personal property transferred. Upon such a
5833+22 determination, the department may require that the successor in
5834+23 liability provide a third party valuation of the tangible personal
5835+24 property transferred.
5836+25 (e) In the case of a gift resulting in successor liability under this
5837+26 section, the return of the gifted property by the donee to the donor
5838+27 releases the donee's successor liability.
5839+28 (f) A potential successor in liability that complies with the
5840+29 requirements of subsections (b) and (c) is not liable for any
5841+30 assessments of taxes of the transferring business made after the
5842+31 department provides a summary to the potential successor in
5843+32 liability under subsection (c), except for taxes assessed on returns
5844+33 filed to comply with the summary. If the department fails to place
5845+34 the required summary in the United States mail within the twenty
5846+35 (20) day period, the potential successor in liability is not liable for
5847+36 any taxes of the transferring business, except with regard to
5848+37 transfers subject to subsection (d), if the purchase price is paid and
5849+38 the potential successor in liability takes possession of the assets
5850+39 within sixty (60) days of the mailing date the notice required
5851+40 pursuant to subsection (b). If the purchase price is not paid or the
5852+41 potential successor in liability does not take possession of the assets
5853+42 within sixty (60) days of the mailing date of the notice required
5854+ES 419—LS 6606/DI 120 134
5855+1 pursuant to subsection (b), the potential successor in liability or the
5856+2 transferring business must submit a new notice pursuant to
5857+3 subsection (b).
5858+4 (g) If the required notice under subsection (b) is not filed or any
5859+5 tax liability included in a summary mailed by the department
5860+6 pursuant to subsection (c)(2) remains due after the purchase price
5861+7 is paid or the successor in liability takes possession of the assets,
5862+8 the department must issue a notice of proposed assessment to the
5863+9 successor in liability for any such tax due.
5864+10 (h) A successor in liability may protest the underlying tax unless
5865+11 the transferring business has already exhausted its protest rights
5866+12 with regard to the underlying tax. A successor in liability may also
5867+13 protest whether they qualify as a successor in liability with regard
5868+14 to the tax. In addition, the successor in liability may protest by
5869+15 submitting evidence showing good cause for not submitting the
5870+16 required notice or completing the purchase before receiving a
5871+17 clearance letter from the department. In the event that the
5872+18 transferring business has protested any taxes identified in the
5873+19 department's notice mailed pursuant to subsection (c)(2), the
5874+20 potential successor in liability shall not be considered a successor
5875+21 in liability with respect to such taxes if the potential successor in
5876+22 liability places an amount in escrow sufficient to satisfy such taxes
5877+23 pending resolution of the transferring business's administrative
5878+24 and legal process protesting such taxes.
5879+25 (i) A transfer in bulk shall not constitute a retail transaction
5880+26 except for any inventory, motor vehicles, watercraft, aircraft, or
5881+27 rental property transferred.
5882+28 (j) A transferor in bulk and any responsible officer thereof shall
5883+29 not be relieved of liability for any tax, interest, or penalties when
5884+30 a successor in interest also becomes liable for the tax, interest, and
5885+31 penalties. No owner, shareholder, director, officer, or employee of
5886+32 a successor in liability shall be considered to be a responsible
5887+33 officer relative to any tax, interest or penalties owed by the
5888+34 purchaser as a successor.
5889+35 (k) The department has discretion in assessing and collecting the
5890+36 tax due from any liable party, but the department cannot collect
5891+37 more than the total tax, interest, and penalties imposed. The ability
5892+38 of the department to impose collections fees on the liable parties as
5893+39 otherwise allowed by this article shall not be impacted by this
5894+40 section.
5895+41 SECTION 66. IC 6-8.1-10-14 IS ADDED TO THE INDIANA
5896+42 CODE AS A NEW SECTION TO READ AS FOLLOWS
5897+ES 419—LS 6606/DI 120 135
5898+1 [EFFECTIVE JULY 1, 2023]: Sec. 14. (a) Except as otherwise
5899+2 provided in this section or by the provisions of a listed tax, any
5900+3 penalties and interest resulting from a listed tax shall be deposited
5901+4 as if it were the listed tax to which the penalty and interest are
5902+5 associated.
5903+6 (b) In the case of penalties or interest paid with regard to a tax
5904+7 imposed under IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6 (before
5905+8 its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6 (local income
5906+9 tax), the penalties and interest shall be deposited in the state
5907+10 general fund.
5908+11 (c) In the case of penalties or interest associated with the late
5909+12 payment of a tax imposed under IC 6-6-9, IC 6-6-9.5, IC 6-6-9.7, or
5910+13 IC 6-6-16, or the taxes imposed under IC 6-9 by local units,
5911+14 penalties and interest shall be distributed to the appropriate local
5912+15 unit and shall be distributed, spent, or otherwise managed in the
5913+16 same manner as the underlying tax.
5914+17 (d) Amounts collected under IC 6-8.1-10-5 shall be deposited in
5915+18 the state general fund.
5916+19 SECTION 67. IC 12-11-14-6, AS ADDED BY P.L.12-2016,
5917+20 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5918+21 JANUARY 1, 2026]: Sec. 6. As used in this chapter, "eligible
5919+22 individual" means an individual who during a taxable year:
5920+23 (1) is entitled to benefits based on blindness or disability under
5921+24 Title II or Title XVI of the federal Social Security Act and the
5922+25 blindness or disability occurred before the individual became
5923+26 twenty-six (26) forty-six (46) years of age; or
5924+27 (2) has a disability certification that has been filed as set forth in
5925+28 Section 529A of the Internal Revenue Code.
5926+29 SECTION 68. IC 20-19-7-2 IS REPEALED [EFFECTIVE JULY 1,
5927+30 2023]. Sec. 2. As used in this chapter, "executive director" means the
5928+31 executive director of the DUAB.
5929+32 SECTION 69. IC 20-19-7-2.3 IS ADDED TO THE INDIANA
5930+33 CODE AS A NEW SECTION TO READ AS FOLLOWS
5931+34 [EFFECTIVE UPON PASSAGE]: Sec. 2.3. As used in this chapter,
5932+35 "public agency" has the meaning set forth in IC 5-14-1.5-2(a).
5933+36 SECTION 70. IC 20-19-7-2.5 IS ADDED TO THE INDIANA
5934+37 CODE AS A NEW SECTION TO READ AS FOLLOWS
5935+38 [EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter,
5936+39 "public official" means an elected or appointed official in the
5937+40 executive, legislative, or judicial branch of the state government or
5938+41 a political subdivision, and includes an individual acting on behalf
5939+42 of a public employer, whether temporarily or permanently,
5940+ES 419—LS 6606/DI 120 136
5941+1 including, but not limited to, members of boards, committees,
5942+2 commissions, authorities, and other instrumentalities of the state
5943+3 or a political subdivision.
5944+4 SECTION 71. IC 20-19-7-3 IS REPEALED [EFFECTIVE UPON
5945+5 PASSAGE]. Sec. 3. (a) The fiscal and qualitative indicators committee
5946+6 is established to make the following determinations:
5947+7 (1) The determination of the fiscal and qualitative indicators to be
5948+8 used for evaluating the financial condition of each school
5949+9 corporation.
5950+10 (2) The determination of the information that is to be presented on
5951+11 the DUAB's Internet website or the management performance
5952+12 hub's Internet web site in accordance with section 5(c) of this
5953+13 chapter.
5954+14 (3) The determination of how frequently to update:
5955+15 (A) the fiscal and qualitative indicators being used to evaluate
5956+16 the financial condition of school corporations; and
5957+17 (B) the presentation of information on the DUAB's Internet
5958+18 web site or the management performance hub's Internet web
5959+19 site in accordance with section 5(c) of this chapter.
5960+20 (b) The members of the committee must be employees of, and
5961+21 appointed by, each of the following:
5962+22 (1) The DUAB.
5963+23 (2) The department of education.
5964+24 (3) The budget agency.
5965+25 (4) The state board of accounts.
5966+26 (5) The department of local government finance.
5967+27 (6) The management performance hub.
5968+28 In addition, a member of the Indiana Association of School Business
5969+29 Officials appointed by the Association's board of directors is a member
5970+30 of the committee.
5971+31 (c) The member appointed by the DUAB is the chairperson of the
5972+32 committee.
5973+33 (d) Members serve at the pleasure of the appointing authority.
5974+34 SECTION 72. IC 20-19-7-4, AS ADDED BY P.L.213-2018(ss),
5975+35 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5976+36 UPON PASSAGE]: Sec. 4. (a) Subject to review by the state budget
5977+37 committee under section 6 of this chapter, the fiscal and qualitative
5978+38 indicators committee DUAB shall determine the fiscal and qualitative
5979+39 indicators to be used for evaluating the financial condition of each
5980+40 school corporation.
5981+41 (b) The fiscal indicators under subsection (a) may include the
5982+42 following factors:
5983+ES 419—LS 6606/DI 120 137
5984+1 Annual capital expenses compared to total capital assets
5985+2 Average daily membership (ADM)
5986+3 Common school fund loans
5987+4 Controlled project fund referendum revenue
5988+5 Debt to assessed value and debt to ADM ratios
5989+6 Education fund referendum revenue
5990+7 Federal revenues
5991+8 Fund cash balances by fund and overall
5992+9 Fund deficits and surpluses by fund and overall
5993+10 Fund deficits and surpluses combining the education and
5994+11 operations fund and debt
5995+12 Gross expenditures per ADM
5996+13 Interfund transfers
5997+14 Operating deficit or surplus
5998+15 Outstanding debt and annual debt service obligations
5999+16 Qualitative indicators as set forth in subsection (c)
6000+17 Salaries and benefits
6001+18 Seven (7) year trend lines using state fiscal years
6002+19 State tuition support
6003+20 Any other fiscal indicator determined by the fiscal and qualitative
6004+21 indicators committee. DUAB.
6005+22 (c) The qualitative indicators under subsection (a) may include the
6006+23 following factors:
6007+24 Failure to make required contributions or transfers
6008+25 Issuance of judgment bonds
6009+26 Missed debt payments
6010+27 Missed payroll
6011+28 Past due vendor payments
6012+29 Any findings related to the financial condition of the school
6013+30 corporation by the Indiana education employment relations board
6014+31 Any other qualitative indicator determined by the fiscal and
6015+32 qualitative indicators committee. DUAB.
6016+33 SECTION 73. IC 20-19-7-5, AS ADDED BY P.L.213-2018(ss),
6017+34 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6018+35 UPON PASSAGE]: Sec. 5. (a) Subject to review by the state budget
6019+36 committee under section 6 of this chapter, the fiscal and qualitative
6020+37 indicators committee DUAB shall prescribe the presentation of the
6021+38 information of the fiscal and qualitative indicators used under this
6022+39 chapter.
6023+40 (b) The information under subsection (a) must be presented in a
6024+41 manner that accomplishes the following:
6025+42 (1) The information must be conveniently and easily accessed
6026+ES 419—LS 6606/DI 120 138
6027+1 from a single Internet web page.
6028+2 (2) The information must be viewable in a format commonly
6029+3 known as an Internet a dashboard.
6030+4 (3) The information must be viewable in graphical form.
6031+5 (4) The information must be easily searchable.
6032+6 (5) The underlying data must be downloadable in a format that
6033+7 can be imported into standard spreadsheet computer software.
6034+8 (c) The DUAB shall periodically publish the information under
6035+9 subsection (a) on its Internet web site website or the management
6036+10 performance hub's Internet web site. website. The management
6037+11 performance hub shall assist the DUAB in the development of the
6038+12 dashboard for publication.
6039+13 SECTION 74. IC 20-19-7-6, AS ADDED BY P.L.213-2018(ss),
6040+14 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6041+15 UPON PASSAGE]: Sec. 6. (a) Before making a final determination
6042+16 under section 4 of this chapter concerning the fiscal and qualitative
6043+17 indicators that will be used for evaluating the financial condition of
6044+18 school corporations, the fiscal and qualitative indicators committee
6045+19 DUAB must present a draft of the proposed fiscal and qualitative
6046+20 indicators to the state budget committee for review by the state budget
6047+21 committee.
6048+22 (b) Before prescribing the requirements under section 5 of this
6049+23 chapter for the presentation of the fiscal and qualitative indicators used
6050+24 under this chapter, the fiscal and qualitative indicators committee
6051+25 DUAB must present a draft of the proposed requirements to the state
6052+26 budget committee for review by the state budget committee.
6053+27 SECTION 75. IC 20-19-7-7 IS REPEALED [EFFECTIVE UPON
6054+28 PASSAGE]. Sec. 7. The fiscal and qualitative indicators committee
6055+29 shall before January 1, 2019, publish the fiscal and qualitative
6056+30 indicators for each school corporation on the DUAB's Internet web site
6057+31 or the management performance hub's Internet web site.
6058+32 SECTION 76. IC 20-19-7-8, AS ADDED BY P.L.213-2018(ss),
6059+33 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6060+34 JULY 1, 2023]: Sec. 8. The DUAB shall may adopt policies and
6061+35 procedures that will be used by the DUAB to implement this chapter.
6062+36 Policies and procedures adopted under this section may include
6063+37 processes that will be used by the DUAB to do the following:
6064+38 (1) Identify school corporations that demonstrate signs of
6065+39 financial distress.
6066+40 (2) Determine when a corrective action plan is necessary for
6067+41 a school corporation.
6068+42 (3) Determine the conditions that must be satisfied before a
6069+ES 419—LS 6606/DI 120 139
6070+1 school corporation:
6071+2 (A) will no longer be subject to a corrective action plan;
6072+3 and
6073+4 (B) will be considered as financially healthy.
6074+5 SECTION 77. IC 20-19-7-9 IS REPEALED [EFFECTIVE JULY 1,
6075+6 2023]. Sec. 9. The executive director shall present to the state budget
6076+7 committee a report concerning the processes that will be used by
6077+8 DUAB and the executive director to do the following:
6078+9 (1) Identify school corporations that demonstrate signs of
6079+10 financial distress.
6080+11 (2) Determine when a corrective action plan is necessary for a
6081+12 school corporation.
6082+13 (3) Determine the conditions that must be satisfied before a
6083+14 school corporation:
6084+15 (A) will no longer be subject to a corrective action plan; and
6085+16 (B) will be considered as financially healthy.
6086+17 SECTION 78. IC 20-19-7-10, AS ADDED BY P.L.213-2018(ss),
6087+18 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6088+19 JULY 1, 2023]: Sec. 10. Before June 1, 2019, the executive director
6089+20 shall prepare and submit to the DUAB an initial report identifying
6090+21 those school corporations for which a corrective action plan may be
6091+22 appropriate, based on the fiscal and qualitative indicators. The
6092+23 executive director DUAB shall on a schedule determined by the DUAB
6093+24 submit subsequent periodically prepare reports identifying those
6094+25 school corporations for which a corrective action plan may be
6095+26 appropriate, based on the fiscal and qualitative indicators. The DUAB
6096+27 shall make a determination concerning which school corporations the
6097+28 executive director DUAB shall contact for purposes of conducting an
6098+29 assessment under section 11 of this chapter.
6099+30 SECTION 79. IC 20-19-7-11, AS ADDED BY P.L.213-2018(ss),
6100+31 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6101+32 JULY 1, 2023]: Sec. 11. (a) The executive director DUAB shall do the
6102+33 following:
6103+34 (1) Contact the governing body and the superintendent of each
6104+35 school corporation for which the distressed unit appeal board
6105+36 DUAB makes a determination under section 10 of this chapter.
6106+37 (2) Carry out an assessment of the financial condition of each
6107+38 school corporation for which the DUAB makes a determination
6108+39 under section 10 of this chapter.
6109+40 (b) A school corporation for which an assessment of financial
6110+41 condition is carried out under this section shall:
6111+42 (1) cooperate with the executive director DUAB as the executive
6112+ES 419—LS 6606/DI 120 140
6113+1 director DUAB carries out the assessment of the school
6114+2 corporation's financial condition; and
6115+3 (2) provide any information and documents requested by the
6116+4 executive director. DUAB.
6117+5 SECTION 80. IC 20-19-7-12, AS ADDED BY P.L.213-2018(ss),
6118+6 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6119+7 JULY 1, 2023]: Sec. 12. (a) After reviewing:
6120+8 (1) the assessment of a school corporation's financial condition
6121+9 made by the executive director under section 11 of this chapter;
6122+10 and
6123+11 (2) the school corporation's fiscal and qualitative indicators;
6124+12 the DUAB shall make a determination of whether a corrective action
6125+13 plan is necessary for the school corporation.
6126+14 (b) If the DUAB makes a determination that a corrective action plan
6127+15 is necessary for the school corporation, the DUAB shall notify the
6128+16 governing body and the superintendent of the school corporation that
6129+17 the school corporation must develop and submit to the DUAB a
6130+18 corrective action plan for the school corporation within ninety (90)
6131+19 days after the notice is provided.
6132+20 (c) If a school corporation does not prepare and submit a corrective
6133+21 action plan to the DUAB within ninety (90) days after the notice is
6134+22 provided under subsection (b), the DUAB shall place the school
6135+23 corporation on the watch list under section 17 of this chapter.
6136+24 SECTION 81. IC 20-19-7-13, AS ADDED BY P.L.213-2018(ss),
6137+25 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6138+26 JULY 1, 2023]: Sec. 13. (a) Upon the request of a school corporation
6139+27 that is required to submit a corrective action plan, the executive
6140+28 director DUAB and other appropriate state departments and agencies
6141+29 shall:
6142+30 (1) assist the school corporation in developing the corrective
6143+31 action plan; and
6144+32 (2) provide technical assistance to the school corporation.
6145+33 (b) The DUAB and any other state departments or agencies that
6146+34 provide assistance to a school corporation under this section are not
6147+35 responsible for implementing the corrective action plan.
6148+36 SECTION 82. IC 20-19-7-14, AS ADDED BY P.L.213-2018(ss),
6149+37 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6150+38 UPON PASSAGE]: Sec. 14. The superintendent of a school
6151+39 corporation that is required to submit a corrective action plan shall
6152+40 update the governing body of the school corporation, as requested by
6153+41 the governing body, concerning the implementation of the corrective
6154+42 action plan submitted to the DUAB. The governing body of a school
6155+ES 419—LS 6606/DI 120 141
6156+1 corporation that is required to prepare a corrective action plan
6157+2 may meet in executive session to receive the updates of the
6158+3 superintendent. discuss all aspects of the corrective action plan,
6159+4 including voting to approve a corrective action plan or
6160+5 modifications under section 16 of this chapter.
6161+6 SECTION 83. IC 20-19-7-15, AS ADDED BY P.L.213-2018(ss),
6162+7 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6163+8 JULY 1, 2023]: Sec. 15. The executive director DUAB shall meet at
6164+9 least once every ninety (90) days with the school corporation's
6165+10 superintendent, the president of the school corporation's governing
6166+11 body, and (as necessary) other administrators of the school corporation
6167+12 to discuss the corrective action plan and the school corporation's
6168+13 progress in implementing the corrective action plan.
6169+14 SECTION 84. IC 20-19-7-16, AS ADDED BY P.L.213-2018(ss),
6170+15 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6171+16 UPON PASSAGE]: Sec. 16. The following apply after a corrective
6172+17 action plan is submitted to the DUAB:
6173+18 (1) The DUAB may modify the corrective action plan at any time
6174+19 if the DUAB determines that the modification is necessary.
6175+20 (2) The superintendent or the governing body of the school
6176+21 corporation may request the DUAB to modify the corrective
6177+22 action plan, and the DUAB may make the requested modification.
6178+23 If the superintendent of the school corporation makes the request,
6179+24 the superintendent must notify the governing body of the school
6180+25 corporation of the requested modification.
6181+26 SECTION 85. IC 20-19-7-17, AS ADDED BY P.L.213-2018(ss),
6182+27 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6183+28 JULY 1, 2023]: Sec. 17. (a) The DUAB shall place the school
6184+29 corporation on a watch list if:
6185+30 (1) the executive director DUAB determines that the school
6186+31 corporation is not in compliance with the school corporation's
6187+32 corrective action plan;
6188+33 (2) the executive director DUAB notifies the superintendent and
6189+34 governing body of the school corporation that:
6190+35 (A) the school corporation is not in compliance with the school
6191+36 corporation's corrective action plan; and
6192+37 (B) the school corporation must achieve compliance with the
6193+38 school corporation's corrective action plan within a period
6194+39 specified by the executive director; DUAB; and
6195+40 (3) the executive director DUAB determines that the school
6196+41 corporation has not achieved compliance with the school
6197+42 corporation's corrective action plan within the period specified in
6198+ES 419—LS 6606/DI 120 142
6199+1 subdivision (2).
6200+2 (b) The DUAB shall place a school corporation on the watch list if
6201+3 required by section 12(c) of this chapter.
6202+4 (c) If the DUAB places a school corporation on the watch list under
6203+5 this section, the executive director DUAB shall notify:
6204+6 (1) the superintendent and governing body of the school
6205+7 corporation; and
6206+8 (2) the budget director.
6207+9 (d) The state budget committee shall review the school corporation's
6208+10 placement on the watch list.
6209+11 SECTION 86. IC 20-19-7-18, AS ADDED BY P.L.213-2018(ss),
6210+12 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6211+13 UPON PASSAGE]: Sec. 18. (a) Notwithstanding any other law, all
6212+14 reports, correspondence, and other records related to a school
6213+15 corporation's corrective action plan, including the initial report reports
6214+16 prepared by the executive director DUAB under section 10 of this
6215+17 chapter and an assessment prepared under section 11 of this chapter,
6216+18 and the placement of a school corporation on the watch list are
6217+19 excepted from public disclosure under IC 5-14-3 or any other law at the
6218+20 discretion of the DUAB or the school corporation unless and until the
6219+21 school corporation is placed on the watch list and the state budget
6220+22 committee has reviewed the school corporation's placement on the
6221+23 watch list. If the DUAB or a school corporation discloses any reports,
6222+24 correspondence, and other records related to a school corporation's
6223+25 corrective action plan, including the initial report a report prepared by
6224+26 the executive director DUAB under section 10 of this chapter and an
6225+27 assessment prepared under section 11 of this chapter, to other state
6226+28 agencies or officials public agencies or public officials prior to a
6227+29 school corporation's placement on the watch list and review by the state
6228+30 budget committee, these public agencies or public officials may not
6229+31 disclose the reports, correspondence, and other records, or the
6230+32 information contained in those reports, correspondence, and other
6231+33 records without the permission of the DUAB or the school
6232+34 corporation.
6233+35 (b) If the DUAB or a school corporation discloses to public
6234+36 agencies or public officials that the school corporation was
6235+37 required to submit a corrective action plan, the public agencies or
6236+38 public officials may not disclose that information without the
6237+39 permission of the DUAB or the school corporation.
6238+40 (b) (c) The DUAB shall hold executive sessions to consider reports
6239+41 related to a school corporation's corrective action plan, including the
6240+42 initial report reports prepared by the executive director DUAB under
6241+ES 419—LS 6606/DI 120 143
6242+1 section 10 of this chapter and an assessment prepared under section 11
6243+2 of this chapter, and to make final determinations required under
6244+3 sections 10, 12, 16, and 17 of this chapter. The final determinations
6245+4 required under sections 10, 12, 16, and 17 of this chapter shall be
6246+5 made in executive session.
6247+6 SECTION 87. IC 20-19-7-19, AS ADDED BY P.L.213-2018(ss),
6248+7 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6249+8 UPON PASSAGE]: Sec. 19. (a) The fiscal and qualitative indicators
6250+9 committee shall DUAB may do the following each year:
6251+10 (1) Review the fiscal and qualitative indicators used under this
6252+11 chapter to evaluate the financial condition of school corporations.
6253+12 (2) Determine if it is appropriate to change one (1) or more of the
6254+13 fiscal and qualitative indicators.
6255+14 (b) Before the fiscal and qualitative indicators committee DUAB
6256+15 may change a fiscal or qualitative indicator, the fiscal and qualitative
6257+16 indicators committee DUAB must first submit a report in an electronic
6258+17 format to the state budget committee specifying the proposed change
6259+18 in the fiscal or qualitative indicator.
6260+19 SECTION 88. IC 20-19-7-20, AS ADDED BY P.L.213-2018(ss),
6261+20 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6262+21 JULY 1, 2023]: Sec. 20. (a) The DUAB shall may do the following
6263+22 each year:
6264+23 (1) Review policies and procedures adopted under section 8 of
6265+24 this chapter by the DUAB.
6266+25 (2) Determine if it is appropriate to change one (1) or more of
6267+26 those policies and procedures.
6268+27 (b) Before the DUAB may change a policy or procedure adopted
6269+28 under section 8 of this chapter, the DUAB must first submit a report in
6270+29 an electronic format to the state budget committee specifying the
6271+30 proposed change in the policy or procedure.
6272+31 SECTION 89. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
6273+32 CODE AS A NEW SECTION TO READ AS FOLLOWS
6274+33 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. As used in this chapter,
6275+34 "DUAB" means the distressed unit appeal board established by
6276+35 IC 6-1.1-20.3-4.
6277+36 SECTION 90. IC 20-40-2-10, AS ADDED BY P.L.161-2019,
6278+37 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6279+38 UPON PASSAGE]: Sec. 10. (a) After the department completes the
6280+39 school corporation notice requirement under section 9 of this chapter,
6281+40 the department shall notify the state board, fiscal and qualitative
6282+41 indicators committee, DUAB, and Indiana education employment
6283+42 relations board as soon as possible of all school corporations that
6284+ES 419—LS 6606/DI 120 144
6285+1 received a notice stating they were on the excessive education fund
6286+2 transfer list for the immediately preceding calendar year.
6287+3 (b) Upon receipt of the department notice to a school corporation
6288+4 under section 9 of this chapter, the school corporation's superintendent
6289+5 and financial personnel, including the school's business officer, shall
6290+6 prepare and submit explanatory documentation within ninety (90) days,
6291+7 explaining the following:
6292+8 (1) How and why the school corporation's leadership believes the
6293+9 school corporation failed to meet the education fund transfer
6294+10 target percentage.
6295+11 (2) The steps the school corporation's leadership is planning or
6296+12 actively taking to budget and spend during the next calendar year
6297+13 to meet the education fund transfer target percentage for the next
6298+14 calendar year.
6299+15 (c) The school corporation's superintendent shall submit the
6300+16 explanatory documentation to the department and the fiscal and
6301+17 qualitative indicators committee. DUAB.
6302+18 (d) Upon submission of the explanatory documentation under
6303+19 subsection (b), the school corporation's superintendent shall present the
6304+20 explanatory documentation to the school corporation's governing body
6305+21 at its next public meeting. The governing body shall enter both the
6306+22 actual documentation and corresponding discussion into its official
6307+23 minutes for that meeting.
6308+24 (e) Upon the completion of the duties under subsection (d), the
6309+25 school corporation shall publish the explanatory documentation
6310+26 alongside any further notices and related reports from the department
6311+27 on its Internet web site website within thirty (30) days.
6312+28 (f) Upon receipt of a school corporation's explanatory
6313+29 documentation, the fiscal and qualitative indicators committee DUAB
6314+30 shall officially acknowledge receipt of the documentation at its next
6315+31 public meeting and enter the receipt into its official minutes for that
6316+32 meeting.
6317+33 (g) Upon receipt of the explanatory documentation, the department,
6318+34 in collaboration with the fiscal and qualitative indicators committee,
6319+35 DUAB, shall review the documentation within sixty (60) days to make
6320+36 a preliminary determination of whether the documentation
6321+37 satisfactorily demonstrates that the school corporation's leadership has
6322+38 outlined and begun a corrective action plan to make progress in
6323+39 meeting the education fund transfer target percentage for the next
6324+40 calendar year.
6325+41 (h) If the department determines the explanatory documentation is
6326+42 not satisfactory, the department may contact the superintendent and
6327+ES 419—LS 6606/DI 120 145
6328+1 financial personnel, including the school business officer, of the school
6329+2 corporation to schedule as soon as possible an appearance before the
6330+3 fiscal and qualitative indicators committee DUAB at a public meeting
6331+4 to provide an opportunity to explain the details within the explanatory
6332+5 documentation, and to explain to the fiscal and qualitative indicators
6333+6 committee DUAB the school corporation's budgeting and
6334+7 compensation levels in relation to the following for the school
6335+8 corporation:
6336+9 (1) How and why the education fund transfer target percentage
6337+10 was not met during the previous calendar year.
6338+11 (2) Total combined expenditures.
6339+12 (3) Student instructional expenditures.
6340+13 (4) Noninstructional expenditures.
6341+14 (5) Full-time teacher compensation expenditures.
6342+15 (6) Nonteaching, full-time administrative personnel compensation
6343+16 expenditures.
6344+17 (7) Nonteaching staff personnel compensation expenditures.
6345+18 (8) Any prior or planned attempts to seek the assistance available
6346+19 under this chapter from the Indiana education employment
6347+20 relations board and the department's division of finance.
6348+21 (9) Any prior or planned pooling of resources, combined
6349+22 purchases, usage of shared administrative services, or
6350+23 collaboration with contiguous school corporations in reducing
6351+24 noninstructional expenditures as described under IC 20-42.5-2-1.
6352+25 (10) Any prior or planned participation in a county school safety
6353+26 commission under IC 5-2-10.1-10 to assist and reduce school
6354+27 safety expenditures.
6355+28 (11) Any prior or planned consideration of meeting the
6356+29 requirements of and applying for school corporation efficiency
6357+30 incentive grants under IC 36-1.5-6.
6358+31 (i) The fiscal and qualitative indicators committee DUAB may
6359+32 contact the superintendent and financial personnel, including the
6360+33 school's business officer, of a school corporation that has been included
6361+34 on the department's excessive education fund transfer list for at least
6362+35 two (2) immediately preceding calendar years to provide the school
6363+36 corporation an opportunity to explain to the fiscal and qualitative
6364+37 indicators committee DUAB in a public meeting the school
6365+38 corporation's budgeting and compensation levels in relation to the
6366+39 items listed in subsection (h).
6367+40 (j) After the fiscal and qualitative indicators committee DUAB
6368+41 receives the school corporation's explanation under this section, the
6369+42 fiscal and qualitative indicators committee DUAB may issue an official
6370+ES 419—LS 6606/DI 120 146
6371+1 recommendation to the school corporation to perform a review and
6372+2 improve its budgeting procedures in consultation with any state
6373+3 agencies the fiscal and qualitative indicators committee DUAB
6374+4 considers appropriate. The state agencies specified by the fiscal and
6375+5 qualitative indicators committee DUAB shall assist the school
6376+6 corporation before and during its next collective bargaining period with
6377+7 the goal of meeting or making progress toward the education fund
6378+8 transfer target percentage. If the fiscal and qualitative indicators
6379+9 committee DUAB issues an official recommendation to a school
6380+10 corporation, the school corporation's governing body shall officially
6381+11 acknowledge receipt of the recommendation at its next public meeting
6382+12 and enter into the school corporation governing body's minutes for that
6383+13 meeting acknowledgment of receipt of the recommendation. In
6384+14 addition, the school corporation shall publish the official
6385+15 recommendation on the school corporation's Internet web site. website.
6386+16 (k) The school corporation shall publish the most recent notices
6387+17 from the department, relevant individual reports prepared by the
6388+18 department, explanatory documentation by the school corporation, and
6389+19 official recommendations by the fiscal and qualitative indicators
6390+20 committee DUAB on the school corporation's Internet web site.
6391+21 website.
6392+22 (l) The school corporation may remove the notice, its explanatory
6393+23 documentation, and the fiscal and qualitative indicators committee's
6394+24 DUAB's official recommendation from its Internet web site website if
6395+25 the department determines that the school corporation met its education
6396+26 fund transfer target percentage and is no longer on the excessive
6397+27 education fund transfer list.
6398+28 SECTION 91. IC 35-43-5-4.8 IS ADDED TO THE INDIANA
6399+29 CODE AS A NEW SECTION TO READ AS FOLLOWS
6400+30 [EFFECTIVE JULY 1, 2023]: Sec. 4.8. (a) The following definitions
6401+31 apply throughout this section:
6402+32 (1) "Automated sales suppression device" means a software
6403+33 program:
6404+34 (A) carried on a memory stick or removable compact disc;
6405+35 (B) accessed through an Internet link; or
6406+36 (C) accessed through any other means;
6407+37 that falsifies the electronic records of electronic cash registers
6408+38 and other point of sale systems, including transaction data
6409+39 and transaction reports.
6410+40 (2) "Electronic cash register" means a device that keeps a
6411+41 register or supporting documents through the means of an
6412+42 electronic device or a computer system designed to record
6413+ES 419—LS 6606/DI 120 147
6414+1 transaction data for the purpose of computing, compiling, or
6415+2 processing retail sales transaction data in any manner.
6416+3 (3) "Phantom-ware" means a hidden, a preinstalled, or an
6417+4 installed at a later time programming option embedded in the
6418+5 operating system of an electronic cash register, or hardwired
6419+6 into the electronic cash register that:
6420+7 (A) can be used to create a virtual second till; or
6421+8 (B) may eliminate or manipulate transaction records that
6422+9 may or may not be preserved in digital formats to
6423+10 represent the true or manipulated record of transactions
6424+11 in the electronic cash register.
6425+12 (4) "Transaction data" includes information regarding:
6426+13 (A) items purchased by a customer;
6427+14 (B) the price for each item;
6428+15 (C) a taxability determination for each item;
6429+16 (D) a segregated tax amount for each of the taxed items;
6430+17 (E) the amount of cash or credit tendered;
6431+18 (F) the net amount returned to the customer in change;
6432+19 (G) the date and time of the purchase;
6433+20 (H) the name, address, and identification number of the
6434+21 vendor; and
6435+22 (I) the receipt or invoice number of the transaction.
6436+23 (5) "Transaction report" means:
6437+24 (A) a report that includes:
6438+25 (i) the sales;
6439+26 (ii) taxes collected;
6440+27 (iii) media totals; and
6441+28 (iv) discount voids;
6442+29 at an electronic cash register that is printed on cash
6443+30 register tape at the end of a day or shift; or
6444+31 (B) a report documenting every action at an electronic cash
6445+32 register that is stored electronically.
6446+33 (6) "Zapper" refers to an automated sales suppression device.
6447+34 (b) A person who knowingly or intentionally sells, purchases,
6448+35 installs, transfers, or possesses:
6449+36 (1) an automated sales suppression device or a zapper; or
6450+37 (2) phantom-ware;
6451+38 after June 30, 2023, commits unlawful sale or possession of a
6452+39 transaction manipulation device, a Class A misdemeanor, except
6453+40 as provided in subsection (c).
6454+41 (c) The offense under subsection (b) is:
6455+42 (1) a Level 6 felony if:
6456+ES 419—LS 6606/DI 120 148
6457+1 (A) the pecuniary loss caused by the offense is at least
6458+2 seven hundred fifty dollars ($750) and less than fifty
6459+3 thousand dollars ($50,000); or
6460+4 (B) the person has a prior unrelated conviction for:
6461+5 (i) a violation of this section;
6462+6 (ii) theft under IC 35-43-4-2;
6463+7 (iii) criminal conversion under IC 35-43-4-3;
6464+8 (iv) robbery under IC 35-42-5-1; or
6465+9 (v) burglary under IC 35-43-2-1; and
6466+10 (2) a Level 5 felony if the pecuniary loss caused by the offense
6467+11 is at least fifty thousand dollars ($50,000).
6468+12 SECTION 92. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
6469+13 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6470+14 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 12.2. (a) The
6471+15 redevelopment commission may do the following:
6472+16 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
6473+17 lease, or any combination of methods, any personal property or
6474+18 interest in real property needed for the redevelopment of areas
6475+19 needing redevelopment that are located within the corporate
6476+20 boundaries of the unit.
6477+21 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
6478+22 other instrument), exchange, lease, rent, or otherwise dispose of
6479+23 property acquired for use in the redevelopment of areas needing
6480+24 redevelopment on the terms and conditions that the commission
6481+25 considers best for the unit and its inhabitants.
6482+26 (3) Sell, lease, or grant interests in all or part of the real property
6483+27 acquired for redevelopment purposes to any other department of
6484+28 the unit or to any other governmental agency for public ways,
6485+29 levees, sewerage, parks, playgrounds, schools, and other public
6486+30 purposes on any terms that may be agreed on.
6487+31 (4) Clear real property acquired for redevelopment purposes.
6488+32 (5) Enter on or into, inspect, investigate, and assess real property
6489+33 and structures acquired or to be acquired for redevelopment
6490+34 purposes to determine the existence, source, nature, and extent of
6491+35 any environmental contamination, including the following:
6492+36 (A) Hazardous substances.
6493+37 (B) Petroleum.
6494+38 (C) Other pollutants.
6495+39 (6) Remediate environmental contamination, including the
6496+40 following, found on any real property or structures acquired for
6497+41 redevelopment purposes:
6498+42 (A) Hazardous substances.
6499+ES 419—LS 6606/DI 120 149
6500+1 (B) Petroleum.
6501+2 (C) Other pollutants.
6502+3 (7) Repair and maintain structures acquired for redevelopment
6503+4 purposes.
6504+5 (8) Remodel, rebuild, enlarge, or make major structural
6505+6 improvements on structures acquired for redevelopment purposes.
6506+7 (9) Survey or examine any land to determine whether it should be
6507+8 included within an area needing redevelopment to be acquired for
6508+9 redevelopment purposes and to determine the value of that land.
6509+10 (10) Appear before any other department or agency of the unit, or
6510+11 before any other governmental agency in respect to any matter
6511+12 affecting:
6512+13 (A) real property acquired or being acquired for
6513+14 redevelopment purposes; or
6514+15 (B) any area needing redevelopment within the jurisdiction of
6515+16 the commissioners.
6516+17 (11) Institute or defend in the name of the unit any civil action.
6517+18 (12) Use any legal or equitable remedy that is necessary or
6518+19 considered proper to protect and enforce the rights of and perform
6519+20 the duties of the department of redevelopment.
6520+21 (13) Appoint an executive director, appraisers, real estate experts,
6521+22 engineers, architects, surveyors, and attorneys.
6522+23 (14) Appoint clerks, guards, laborers, and other employees the
6523+24 commission considers advisable, except that those appointments
6524+25 must be made in accordance with the merit system of the unit if
6525+26 such a system exists.
6526+27 (15) Prescribe the duties and regulate the compensation of
6527+28 employees of the department of redevelopment.
6528+29 (16) Provide a pension and retirement system for employees of
6529+30 the department of redevelopment by using the Indiana public
6530+31 employees' retirement fund or a retirement plan approved by the
6531+32 United States Department of Housing and Urban Development.
6532+33 (17) Discharge and appoint successors to employees of the
6533+34 department of redevelopment subject to subdivision (14).
6534+35 (18) Rent offices for use of the department of redevelopment, or
6535+36 accept the use of offices furnished by the unit.
6536+37 (19) Equip the offices of the department of redevelopment with
6537+38 the necessary furniture, furnishings, equipment, records, and
6538+39 supplies.
6539+40 (20) Expend, on behalf of the special taxing district, all or any
6540+41 part of the money of the special taxing district.
6541+42 (21) Contract for the construction of:
6542+ES 419—LS 6606/DI 120 150
6543+1 (A) local public improvements (as defined in IC 36-7-14.5-6)
6544+2 or structures that are necessary for redevelopment of areas
6545+3 needing redevelopment or economic development within the
6546+4 corporate boundaries of the unit; or
6547+5 (B) any structure that enhances development or economic
6548+6 development.
6549+7 (22) Contract for the construction, extension, or improvement of
6550+8 pedestrian skyways.
6551+9 (23) Accept loans, grants, and other forms of financial assistance
6552+10 from the federal government, the state government, a municipal
6553+11 corporation, a special taxing district, a foundation, or any other
6554+12 source.
6555+13 (24) Provide financial assistance (including grants and loans) to
6556+14 enable individuals and families to purchase or lease residential
6557+15 units in a multiple unit residential structure within the district.
6558+16 However, financial assistance may be provided only to individuals
6559+17 and families whose income is at or below the unit's median
6560+18 income for individuals and families, respectively.
6561+19 (25) Provide financial assistance (including grants and loans) to
6562+20 neighborhood development corporations to permit them to:
6563+21 (A) provide financial assistance for the purposes described in
6564+22 subdivision (24); or
6565+23 (B) construct, rehabilitate, or repair commercial property
6566+24 within the district.
6567+25 (26) Require as a condition of financial assistance to the owner of
6568+26 a multiple unit residential structure that any of the units leased by
6569+27 the owner must be leased:
6570+28 (A) for a period to be determined by the commission, which
6571+29 may not be less than five (5) years;
6572+30 (B) to families whose income does not exceed eighty percent
6573+31 (80%) of the unit's median income for families; and
6574+32 (C) at an affordable rate.
6575+33 (27) This subdivision does not apply to a redevelopment
6576+34 commission in a county for which the total amount of net property
6577+35 taxes allocated to all allocation areas or other tax increment
6578+36 financing areas established by a redevelopment commission,
6579+37 military base reuse authority, military base development authority,
6580+38 or another similar entity in the county in the preceding calendar
6581+39 year exceeded nineteen percent (19%) of the total net property
6582+40 taxes billed in the county in the preceding calendar year. Subject
6583+41 to prior approval by the fiscal body of the unit that established the
6584+42 redevelopment commission, expend money and provide financial
6585+ES 419—LS 6606/DI 120 151
6586+1 assistance (including grants and loans):
6587+2 (A) in direct support of:
6588+3 (i) an active military base located within the unit; or
6589+4 (ii) an entity located in the territory or facilities of a military
6590+5 base or former military base within the unit that is scheduled
6591+6 for closing or is completely or partially inactive or closed, or
6592+7 an entity that is located in any territory or facilities of the
6593+8 United States Department of Defense within the unit that are
6594+9 scheduled for closing or are completely or partially inactive
6595+10 or closed;
6596+11 including direct support for the promotion of the active
6597+12 military base or entity, the growth of the active military base
6598+13 or entity, and activities at the active military base or entity; and
6599+14 (B) in support of any other entity that provides services or
6600+15 direct support to an active military base or entity described in
6601+16 clause (A).
6602+17 The fiscal body of the unit that established the redevelopment
6603+18 commission must separately approve each grant, loan, or other
6604+19 expenditure for financial assistance under this subdivision. The
6605+20 terms of any loan that is made under this subdivision may be
6606+21 changed only if the change is approved by the fiscal body of the
6607+22 unit that established the redevelopment commission. As used in
6608+23 this subdivision, "active military base" has the meaning set forth
6609+24 in IC 36-1-4-20.
6610+25 (28) Expend revenues from a tax increment financing district
6611+26 that are allocated for police and fire services on both capital
6612+27 expenditures and operating expenses.
6613+28 (b) Conditions imposed by the commission under subsection (a)(26)
6614+29 remain in force throughout the period determined under subsection
6615+30 (a)(26)(A), even if the owner sells, leases, or conveys the property. The
6616+31 subsequent owner or lessee is bound by the conditions for the
6617+32 remainder of the period.
6618+33 (c) As used in this section, "pedestrian skyway" means a pedestrian
6619+34 walkway within or outside of the public right-of-way and through and
6620+35 above public or private property and buildings, including all structural
6621+36 supports required to connect skyways to buildings or buildings under
6622+37 construction. Pedestrian skyways constructed, extended, or improved
6623+38 over or through public or private property constitute public property
6624+39 and public improvements, constitute a public use and purpose, and do
6625+40 not require vacation of any public way or other property.
6626+41 (d) All powers that may be exercised under this chapter by the
6627+42 redevelopment commission may also be exercised by the
6628+ES 419—LS 6606/DI 120 152
6629+1 redevelopment commission in carrying out its duties and purposes
6630+2 under IC 36-7-14.5. However, if a power pertains to issuing bonds or
6631+3 incurring an obligation, the exercise of the power must first be
6632+4 specifically approved by the fiscal or legislative body of the unit,
6633+5 whichever applies.
6634+6 (e) A commission may not exercise the power of eminent domain.
6635+7 SECTION 93. IC 36-7-14-12.7 IS ADDED TO THE INDIANA
6636+8 CODE AS A NEW SECTION TO READ AS FOLLOWS
6637+9 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 12.7. (a)
6638+10 Not later than December 1 each year, the redevelopment
6639+11 commissioners shall file with the department of local government
6640+12 finance and with the unit's executive and fiscal body a report
6641+13 setting out a spending plan for the next calendar year describing
6642+14 planned expenditures. The spending plan must be filed in the
6643+15 manner prescribed by the department of local government finance.
6644+16 (b) A redevelopment commission may use money from the
6645+17 redevelopment commission's allocation fund described in section
6646+18 39(b)(4) of this chapter and any other fund maintained by the
6647+19 redevelopment commission only for the purposes provided in the
6648+20 annual spending plan described in subsection (a).
6649+21 SECTION 94. IC 36-7-14-13, AS AMENDED BY P.L.255-2017,
6650+22 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6651+23 JULY 1, 2023]: Sec. 13. (a) Not later than April 15 of each year, the
6652+24 redevelopment commissioners or their designees shall file with the
6653+25 unit's executive and fiscal body a report setting out their activities
6654+26 during the preceding calendar year. The redevelopment
6655+27 commissioners or their designees shall also present the report to
6656+28 the unit's fiscal body at a public meeting.
6657+29 (b) The report of the commissioners of a municipal redevelopment
6658+30 commission must show the names of the then qualified and acting
6659+31 commissioners, the names of the officers of that body, the number of
6660+32 regular employees and their fixed salaries or compensation, the amount
6661+33 of the expenditures made during the preceding year and their general
6662+34 purpose, an accounting of the tax increment revenues expended by any
6663+35 entity receiving the tax increment revenues as a grant or loan from the
6664+36 commission, the amount of funds on hand at the close of the calendar
6665+37 year, and other information necessary to disclose the activities of the
6666+38 commissioners and the results obtained.
6667+39 (c) The report of the commissioners of a county redevelopment
6668+40 commission must show all the information required by subsection (b),
6669+41 plus the names of any commissioners appointed to or removed from
6670+42 office during the preceding calendar year.
6671+ES 419—LS 6606/DI 120 153
6672+1 (d) A copy of each report filed under this section must be submitted
6673+2 to the department of local government finance in an electronic format.
6674+3 (e) The report required under subsection (a) must also include the
6675+4 following information set forth for each tax increment financing district
6676+5 regarding the previous year:
6677+6 (1) Revenues received.
6678+7 (2) Expenses paid.
6679+8 (3) Fund balances.
6680+9 (4) The amount and maturity date for all outstanding obligations.
6681+10 (5) The amount paid on outstanding obligations.
6682+11 (6) A list of all the parcels and the depreciable personal property
6683+12 of any designated taxpayer included in each tax increment
6684+13 financing district allocation area and the base assessed value and
6685+14 incremental assessed value for each parcel and the depreciable
6686+15 personal property of any designated taxpayer in the list.
6687+16 (7) To the extent that the following information has not previously
6688+17 been provided to the department of local government finance:
6689+18 (A) The year in which the tax increment financing district was
6690+19 established.
6691+20 (B) The section of the Indiana Code under which the tax
6692+21 increment financing district was established.
6693+22 (C) Whether the tax increment financing district is part of an
6694+23 area needing redevelopment, an economic development area,
6695+24 a redevelopment project area, or an urban renewal project
6696+25 area.
6697+26 (D) If applicable, the year in which the boundaries of the tax
6698+27 increment financing district were changed and a description of
6699+28 those changes.
6700+29 (E) The date on which the tax increment financing district will
6701+30 expire.
6702+31 (F) A copy of each resolution adopted by the redevelopment
6703+32 commission that establishes or alters the tax increment
6704+33 financing district.
6705+34 (8) Amounts distributed to other units, if applicable.
6706+35 (f) A redevelopment commission and a department of
6707+36 redevelopment are subject to the same laws, rules, and ordinances of
6708+37 a general nature that apply to all other commissions or departments of
6709+38 the unit.
6710+39 SECTION 95. IC 36-7-14-15.5, AS AMENDED BY P.L.104-2022,
6711+40 SECTION 187, IS AMENDED TO READ AS FOLLOWS
6712+41 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 15.5. (a)
6713+42 This section applies to a county having a population of more than two
6714+ES 419—LS 6606/DI 120 154
6715+1 hundred fifty thousand (250,000) and less than three hundred thousand
6716+2 (300,000).
6717+3 (b) In adopting a declaratory resolution under section 15 of this
6718+4 chapter, a redevelopment commission may include a provision stating
6719+5 that the redevelopment project area is considered to include one (1) or
6720+6 more additional areas outside the boundaries of the redevelopment
6721+7 project area if the redevelopment commission makes the following
6722+8 findings and the requirements of subsection (c) are met:
6723+9 (1) One (1) or more taxpayers presently located within the
6724+10 boundaries of the redevelopment project area are expected within
6725+11 one (1) year to relocate all or part of their operations outside the
6726+12 boundaries of the redevelopment project area and have expressed
6727+13 an interest in relocating all or part of their operations within the
6728+14 boundaries of an additional area.
6729+15 (2) The relocation described in subdivision (1) will contribute to
6730+16 the continuation of the conditions described in IC 36-7-1-3 in the
6731+17 redevelopment project area.
6732+18 (3) For purposes of this section, it will be of public utility and
6733+19 benefit to include the additional areas as part of the
6734+20 redevelopment project area.
6735+21 (c) Each additional area must be designated by the redevelopment
6736+22 commission as a redevelopment project area or an economic
6737+23 development area under this chapter.
6738+24 (d) Notwithstanding section 3 of this chapter, the additional areas
6739+25 shall be considered to be a part of the redevelopment special taxing
6740+26 district under the jurisdiction of the redevelopment commission. Any
6741+27 excess property taxes that the commission has determined may be paid
6742+28 to taxing units under section 39(b)(4) section 39(b)(5) of this chapter
6743+29 shall be paid to the taxing units from which the excess property taxes
6744+30 were derived. All powers of the redevelopment commission authorized
6745+31 under this chapter may be exercised by the redevelopment commission
6746+32 in additional areas under its jurisdiction.
6747+33 (e) The declaratory resolution must include a statement of the
6748+34 general boundaries of each additional area. However, it is sufficient to
6749+35 describe those boundaries by location in relation to public ways,
6750+36 streams, or otherwise, as determined by the commissioners.
6751+37 (f) The declaratory resolution may include a provision with respect
6752+38 to the allocation and distribution of property taxes with respect to one
6753+39 (1) or more of the additional areas in the manner provided in section 39
6754+40 of this chapter. If the redevelopment commission includes such a
6755+41 provision in the resolution, allocation areas in the redevelopment
6756+42 project area and in the additional areas considered to be part of the
6757+ES 419—LS 6606/DI 120 155
6758+1 redevelopment project area shall be considered a single allocation area
6759+2 for purposes of this chapter.
6760+3 (g) The additional areas must be located within the same county as
6761+4 the redevelopment project area but are not otherwise required to be
6762+5 within the jurisdiction of the redevelopment commission, if the
6763+6 redevelopment commission obtains the consent by ordinance of:
6764+7 (1) the county legislative body, for each additional area located
6765+8 within the unincorporated part of the county; or
6766+9 (2) the legislative body of the city or town affected, for each
6767+10 additional area located within a city or town.
6768+11 In granting its consent, the legislative body shall approve the plan of
6769+12 development or redevelopment relating to the additional area.
6770+13 (h) A declaratory resolution previously adopted may be amended to
6771+14 include a provision to include additional areas as set forth in this
6772+15 section and an allocation provision under section 39 of this chapter
6773+16 with respect to one (1) or more of the additional areas in accordance
6774+17 with sections 15, 16, and 17 of this chapter.
6775+18 (i) The redevelopment commission may amend the allocation
6776+19 provision of a declaratory resolution in accordance with sections 15,
6777+20 16, and 17 of this chapter to change the assessment date that
6778+21 determines the base assessed value of property in the allocation area to
6779+22 any assessment date following the effective date of the allocation
6780+23 provision of the declaratory resolution. Such a change may relate to the
6781+24 assessment date that determines the base assessed value of that portion
6782+25 of the allocation area that is located in the redevelopment project area
6783+26 alone, that portion of the allocation area that is located in an additional
6784+27 area alone, or the entire allocation area.
6785+28 SECTION 96. IC 36-7-14-25.1, AS AMENDED BY P.L.257-2019,
6786+29 SECTION 117, IS AMENDED TO READ AS FOLLOWS
6787+30 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 25.1. (a)
6788+31 In addition to other methods of raising money for property acquisition
6789+32 or redevelopment in a redevelopment project area, and in anticipation
6790+33 of the special tax to be levied under section 27 of this chapter, the taxes
6791+34 allocated under section 39 of this chapter, or other revenues of the
6792+35 district, or any combination of these sources, the redevelopment
6793+36 commission may, by bond resolution and subject to subsections (c) and
6794+37 (p), issue the bonds of the special taxing district in the name of the unit.
6795+38 The amount of the bonds may not exceed the total, as estimated by the
6796+39 commission, of all expenses reasonably incurred in connection with the
6797+40 acquisition and redevelopment of the property, including:
6798+41 (1) the total cost of all land, rights-of-way, and other property to
6799+42 be acquired and redeveloped;
6800+ES 419—LS 6606/DI 120 156
6801+1 (2) all reasonable and necessary architectural, engineering, legal,
6802+2 financing, accounting, advertising, bond discount, and
6803+3 supervisory expenses related to the acquisition and redevelopment
6804+4 of the property or the issuance of bonds;
6805+5 (3) capitalized interest permitted by this chapter and a debt
6806+6 service reserve for the bonds to the extent the redevelopment
6807+7 commission determines that a reserve is reasonably required; and
6808+8 (4) expenses that the redevelopment commission is required or
6809+9 permitted to pay under IC 8-23-17.
6810+10 (b) If the redevelopment commission plans to acquire different
6811+11 parcels of land or let different contracts for redevelopment work at
6812+12 approximately the same time, whether under one (1) or more
6813+13 resolutions, the commission may provide for the total cost in one (1)
6814+14 issue of bonds.
6815+15 (c) The legislative body of the unit must adopt a resolution that
6816+16 specifies the public purpose of the bond, the use of the bond proceeds,
6817+17 the maximum principal amount of the bond, the term of the bond, and
6818+18 the maximum interest rate or rates of the bond, any provision for
6819+19 redemption before maturity, and any provision for the payment of
6820+20 capitalized interest. The bonds must be dated as set forth in the bond
6821+21 resolution and negotiable, subject to the requirements of the bond
6822+22 resolution for registering the bonds. The resolution authorizing the
6823+23 bonds must state:
6824+24 (1) the denominations of the bonds;
6825+25 (2) the place or places at which the bonds are payable; and
6826+26 (3) the term of the bonds, which may not exceed:
6827+27 (A) fifty (50) years, for bonds issued before July 1, 2008;
6828+28 (B) thirty (30) years, for bonds issued after June 30, 2008, to
6829+29 finance:
6830+30 (i) an integrated coal gasification powerplant (as defined in
6831+31 IC 6-3.1-29-6);
6832+32 (ii) a part of an integrated coal gasification powerplant (as
6833+33 defined in IC 6-3.1-29-6); or
6834+34 (iii) property used in the operation or maintenance of an
6835+35 integrated coal gasification powerplant (as defined in
6836+36 IC 6-3.1-29-6);
6837+37 that received a certificate of public convenience and necessity
6838+38 from the Indiana utility regulatory commission under
6839+39 IC 8-1-8.5 et seq. before July 1, 2008;
6840+40 (C) thirty-five (35) years, for bonds issued after June 30, 2019,
6841+41 to finance a project that is located in a redevelopment project
6842+42 area, an economic development area, or an urban renewal
6843+ES 419—LS 6606/DI 120 157
6844+1 project area and that includes, as part of the project, the use
6845+2 and repurposing of two (2) or more buildings and structures
6846+3 that are:
6847+4 (i) at least seventy-five (75) years old; and
6848+5 (ii) located at a site at which manufacturing previously
6849+6 occurred over a period of at least seventy-five (75) years; or
6850+7 (D) twenty-five (25) years, for bonds issued after June 30,
6851+8 2008, that are not described in clause (B) or (C).
6852+9 The bond resolution may also state that the bonds are redeemable
6853+10 before maturity with or without a premium, as determined by the
6854+11 redevelopment commission.
6855+12 (d) The redevelopment commission shall certify a copy of the
6856+13 resolution authorizing the bonds to the municipal or county fiscal
6857+14 officer, who shall then prepare the bonds, subject to subsections (c) and
6858+15 (p). The seal of the unit must be impressed on the bonds, or a facsimile
6859+16 of the seal must be printed on the bonds.
6860+17 (e) The bonds must be executed by the appropriate officer of the
6861+18 unit and attested by the municipal or county fiscal officer.
6862+19 (f) The bonds are exempt from taxation for all purposes.
6863+20 (g) The municipal or county fiscal officer shall give notice of the
6864+21 sale of the bonds by publication in accordance with IC 5-3-1. The
6865+22 municipal fiscal officer, or county fiscal officer or executive, shall sell
6866+23 the bonds to the highest bidder, but may not sell them for less than
6867+24 ninety-seven percent (97%) of their par value. However, bonds payable
6868+25 solely or in part from tax proceeds allocated under section 39(b)(3)
6869+26 section 39(b)(4) of this chapter, or other revenues of the district may
6870+27 be sold at a private negotiated sale.
6871+28 (h) Except as provided in subsection (i), a redevelopment
6872+29 commission may not issue the bonds when the total issue, including
6873+30 bonds already issued and to be issued, exceeds two percent (2%) of the
6874+31 adjusted value of the taxable property in the special taxing district, as
6875+32 determined under IC 36-1-15.
6876+33 (i) The bonds are not a corporate obligation of the unit but are an
6877+34 indebtedness of the taxing district. The bonds and interest are payable,
6878+35 as set forth in the bond resolution of the redevelopment commission:
6879+36 (1) from a special tax levied upon all of the property in the taxing
6880+37 district, as provided by section 27 of this chapter;
6881+38 (2) from the tax proceeds allocated under section 39(b)(3) section
6882+39 39(b)(4) of this chapter;
6883+40 (3) from other revenues available to the redevelopment
6884+41 commission; or
6885+42 (4) from a combination of the methods stated in subdivisions (1)
6886+ES 419—LS 6606/DI 120 158
6887+1 through (3).
6888+2 If the bonds are payable solely from the tax proceeds allocated under
6889+3 section 39(b)(3) section 39(b)(4) of this chapter, other revenues of the
6890+4 redevelopment commission, or any combination of these sources, they
6891+5 may be issued in any amount not to exceed the maximum amount
6892+6 approved by the legislative body in the resolution described in
6893+7 subsection (c).
6894+8 (j) Proceeds from the sale of bonds may be used to pay the cost of
6895+9 interest on the bonds for a period not to exceed five (5) years from the
6896+10 date of issuance.
6897+11 (k) All laws relating to the giving of notice of the issuance of bonds,
6898+12 the giving of notice of a hearing on the appropriation of the proceeds
6899+13 of the bonds, the right of taxpayers to appear and be heard on the
6900+14 proposed appropriation, and the approval of the appropriation by the
6901+15 department of local government finance apply to all bonds issued under
6902+16 this chapter that are payable from the special benefits tax levied
6903+17 pursuant to section 27 of this chapter or from taxes allocated under
6904+18 section 39 of this chapter.
6905+19 (l) All laws relating to:
6906+20 (1) the filing of petitions requesting the issuance of bonds; and
6907+21 (2) the right of:
6908+22 (A) taxpayers and voters to remonstrate against the issuance of
6909+23 bonds in the case of a proposed bond issue described by
6910+24 IC 6-1.1-20-3.1(a); or
6911+25 (B) voters to vote on the issuance of bonds in the case of a
6912+26 proposed bond issue described by IC 6-1.1-20-3.5(a);
6913+27 apply to bonds issued under this chapter except for bonds payable
6914+28 solely from tax proceeds allocated under section 39(b)(3) section
6915+29 39(b)(4) of this chapter, other revenues of the redevelopment
6916+30 commission, or any combination of these sources.
6917+31 (m) If a debt service reserve is created from the proceeds of bonds,
6918+32 the debt service reserve may be used to pay principal and interest on
6919+33 the bonds as provided in the bond resolution.
6920+34 (n) Any amount remaining in the debt service reserve after all of the
6921+35 bonds of the issue for which the debt service reserve was established
6922+36 have matured shall be:
6923+37 (1) deposited in the allocation fund established under section
6924+38 39(b)(3) section 39(b)(4) of this chapter; and
6925+39 (2) to the extent permitted by law, transferred to the county or
6926+40 municipality that established the department of redevelopment for
6927+41 use in reducing the county's or municipality's property tax levies
6928+42 for debt service.
6929+ES 419—LS 6606/DI 120 159
6930+1 (o) If bonds are issued under this chapter that are payable solely or
6931+2 in part from revenues to the redevelopment commission from a project
6932+3 or projects, the redevelopment commission may adopt a resolution or
6933+4 trust indenture or enter into covenants as is customary in the issuance
6934+5 of revenue bonds. The resolution or trust indenture may pledge or
6935+6 assign the revenues from the project or projects, but may not convey or
6936+7 mortgage any project or parts of a project. The resolution or trust
6937+8 indenture may also contain any provisions for protecting and enforcing
6938+9 the rights and remedies of the bond owners as may be reasonable and
6939+10 proper and not in violation of law, including covenants setting forth the
6940+11 duties of the redevelopment commission. The redevelopment
6941+12 commission may establish fees and charges for the use of any project
6942+13 and covenant with the owners of any bonds to set those fees and
6943+14 charges at a rate sufficient to protect the interest of the owners of the
6944+15 bonds. Any revenue bonds issued by the redevelopment commission
6945+16 that are payable solely from revenues of the commission shall contain
6946+17 a statement to that effect in the form of bond.
6947+18 (p) If the total principal amount of bonds authorized by a resolution
6948+19 of the redevelopment commission adopted before July 1, 2008, is equal
6949+20 to or greater than three million dollars ($3,000,000), the bonds may not
6950+21 be issued without the approval, by resolution, of the legislative body of
6951+22 the unit. Bonds authorized in any principal amount by a resolution of
6952+23 the redevelopment commission adopted after June 30, 2008, may not
6953+24 be issued without the approval of the legislative body of the unit.
6954+25 SECTION 97. IC 36-7-14-26, AS AMENDED BY P.L.203-2011,
6955+26 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6956+27 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 26. (a) All proceeds from
6957+28 the sale of bonds under section 25.1 of this chapter shall be kept as a
6958+29 separate and specific fund to pay the expenses incurred in connection
6959+30 with the acquisition and redevelopment of property. The fund shall be
6960+31 known as the redevelopment district capital fund. Any surplus of funds
6961+32 remaining after all expenses are paid shall be paid into and become a
6962+33 part of the redevelopment district bond fund established under section
6963+34 27 of this chapter.
6964+35 (b) All gifts or donations that are given or paid to the department of
6965+36 redevelopment or to the unit for redevelopment purposes shall be
6966+37 promptly deposited to the credit of the redevelopment district capital
6967+38 fund. The redevelopment commission may use these gifts and
6968+39 donations for the purposes of this chapter.
6969+40 (c) Before the eleventh day of each calendar month the fiscal officer
6970+41 shall notify the redevelopment commission and the officers of the unit
6971+42 who have duties in respect to the funds and accounts of the unit of the
6972+ES 419—LS 6606/DI 120 160
6973+1 amount standing to the credit of the redevelopment district capital fund
6974+2 at the close of business on the last day of the preceding month.
6975+3 (d) A redevelopment commission shall deposit in the allocation fund
6976+4 established under section 39(b)(3) section 39(b)(4) of this chapter of
6977+5 an allocation area the proceeds from the sale or leasing of property in
6978+6 the area under section 22 of this chapter if:
6979+7 (1) there are outstanding bonds that were issued to pay costs of
6980+8 redevelopment in the allocation area; and
6981+9 (2) the bonds are payable solely or in part from tax proceeds
6982+10 allocated under section 39(b)(3) section 39(b)(4) of this chapter.
6983+11 SECTION 98. IC 36-7-14-27, AS AMENDED BY P.L.149-2014,
6984+12 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6985+13 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 27. (a) This section
6986+14 applies only to:
6987+15 (1) bonds that are issued under section 25.1 of this chapter; and
6988+16 (2) leases entered into under section 25.2 of this chapter;
6989+17 which are payable from a special tax levied upon all of the property in
6990+18 the special taxing district. This section does not apply to bonds or
6991+19 leases that are payable solely from tax proceeds allocated under section
6992+20 39(b)(3) section 39(b)(4) of this chapter, other revenues of the
6993+21 redevelopment commission, or any combination of these sources.
6994+22 (b) The redevelopment commission, with the prior approval of the
6995+23 legislative body, shall levy each year a special tax on all of the property
6996+24 of the redevelopment taxing district, in such a manner as to meet and
6997+25 pay the principal of the bonds as they mature, together with all accruing
6998+26 interest on the bonds or lease rental payments under section 25.2 of this
6999+27 chapter. The commission shall cause the tax levied to be certified to the
7000+28 proper officers as other tax levies are certified, and to the auditor of the
7001+29 county in which the redevelopment district is located, before the
7002+30 second day of October in each year. The tax shall be estimated and
7003+31 entered on the tax duplicate by the county auditor and shall be collected
7004+32 and enforced by the county treasurer in the same manner as other state
7005+33 and county taxes are estimated, entered, collected, and enforced. The
7006+34 amount of the tax levied to pay bonds or lease rentals payable from the
7007+35 tax levied under this section shall be reduced by any amount available
7008+36 in the allocation fund established under section 39(b)(3) section
7009+37 39(b)(4) of this chapter or other revenues of the redevelopment
7010+38 commission to the extent such revenues have been set aside in the
7011+39 redevelopment bond fund.
7012+40 (c) As the tax is collected, it shall be accumulated in a separate fund
7013+41 to be known as the redevelopment district bond fund and shall be
7014+42 applied to the payment of the bonds as they mature and the interest on
7015+ES 419—LS 6606/DI 120 161
7016+1 the bonds as it accrues, or to make lease payments and to no other
7017+2 purpose. All accumulations of the fund before their use for the payment
7018+3 of bonds and interest or to make lease payments shall be deposited with
7019+4 the depository or depositories for other public funds of the unit in
7020+5 accordance with IC 5-13, unless they are invested under IC 5-13-9.
7021+6 (d) If there are no outstanding bonds that are payable solely or in
7022+7 part from tax proceeds allocated under section 39(b)(3) section
7023+8 39(b)(4) of this chapter and that were issued to pay costs of
7024+9 redevelopment in an allocation area that is located wholly or in part in
7025+10 the special taxing district, then all proceeds from the sale or leasing of
7026+11 property in the allocation area under section 22 of this chapter shall be
7027+12 paid into the redevelopment district bond fund and become a part of
7028+13 that fund. In arriving at the tax levy for any year, the redevelopment
7029+14 commission shall take into account the amount of the proceeds
7030+15 deposited under this subsection and remaining on hand.
7031+16 (e) The tax levies provided for in this section are reviewable by
7032+17 other bodies vested by law with the authority to ascertain that the levies
7033+18 are sufficient to raise the amount that, with other amounts available, is
7034+19 sufficient to meet the payments under the lease payable from the levy
7035+20 of taxes.
7036+21 SECTION 99. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
7037+22 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7038+23 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As used in this
7039+24 section:
7040+25 "Allocation area" means that part of a redevelopment project area
7041+26 to which an allocation provision of a declaratory resolution adopted
7042+27 under section 15 of this chapter refers for purposes of distribution and
7043+28 allocation of property taxes.
7044+29 "Base assessed value" means, subject to subsection (j), the
7045+30 following:
7046+31 (1) If an allocation provision is adopted after June 30, 1995, in a
7047+32 declaratory resolution or an amendment to a declaratory
7048+33 resolution establishing an economic development area:
7049+34 (A) the net assessed value of all the property as finally
7050+35 determined for the assessment date immediately preceding the
7051+36 effective date of the allocation provision of the declaratory
7052+37 resolution, as adjusted under subsection (h); plus
7053+38 (B) to the extent that it is not included in clause (A), the net
7054+39 assessed value of property that is assessed as residential
7055+40 property under the rules of the department of local government
7056+41 finance, within the allocation area, as finally determined for
7057+42 the current assessment date.
7058+ES 419—LS 6606/DI 120 162
7059+1 (2) If an allocation provision is adopted after June 30, 1997, in a
7060+2 declaratory resolution or an amendment to a declaratory
7061+3 resolution establishing a redevelopment project area:
7062+4 (A) the net assessed value of all the property as finally
7063+5 determined for the assessment date immediately preceding the
7064+6 effective date of the allocation provision of the declaratory
7065+7 resolution, as adjusted under subsection (h); plus
7066+8 (B) to the extent that it is not included in clause (A), the net
7067+9 assessed value of property that is assessed as residential
7068+10 property under the rules of the department of local government
7069+11 finance, as finally determined for the current assessment date.
7070+12 (3) If:
7071+13 (A) an allocation provision adopted before June 30, 1995, in
7072+14 a declaratory resolution or an amendment to a declaratory
7073+15 resolution establishing a redevelopment project area expires
7074+16 after June 30, 1997; and
7075+17 (B) after June 30, 1997, a new allocation provision is included
7076+18 in an amendment to the declaratory resolution;
7077+19 the net assessed value of all the property as finally determined for
7078+20 the assessment date immediately preceding the effective date of
7079+21 the allocation provision adopted after June 30, 1997, as adjusted
7080+22 under subsection (h).
7081+23 (4) Except as provided in subdivision (5), for all other allocation
7082+24 areas, the net assessed value of all the property as finally
7083+25 determined for the assessment date immediately preceding the
7084+26 effective date of the allocation provision of the declaratory
7085+27 resolution, as adjusted under subsection (h).
7086+28 (5) If an allocation area established in an economic development
7087+29 area before July 1, 1995, is expanded after June 30, 1995, the
7088+30 definition in subdivision (1) applies to the expanded part of the
7089+31 area added after June 30, 1995.
7090+32 (6) If an allocation area established in a redevelopment project
7091+33 area before July 1, 1997, is expanded after June 30, 1997, the
7092+34 definition in subdivision (2) applies to the expanded part of the
7093+35 area added after June 30, 1997.
7094+36 Except as provided in section 39.3 of this chapter, "property taxes"
7095+37 means taxes imposed under IC 6-1.1 on real property. However, upon
7096+38 approval by a resolution of the redevelopment commission adopted
7097+39 before June 1, 1987, "property taxes" also includes taxes imposed
7098+40 under IC 6-1.1 on depreciable personal property. If a redevelopment
7099+41 commission adopted before June 1, 1987, a resolution to include within
7100+42 the definition of property taxes, taxes imposed under IC 6-1.1 on
7101+ES 419—LS 6606/DI 120 163
7102+1 depreciable personal property that has a useful life in excess of eight
7103+2 (8) years, the commission may by resolution determine the percentage
7104+3 of taxes imposed under IC 6-1.1 on all depreciable personal property
7105+4 that will be included within the definition of property taxes. However,
7106+5 the percentage included must not exceed twenty-five percent (25%) of
7107+6 the taxes imposed under IC 6-1.1 on all depreciable personal property.
7108+7 (b) A declaratory resolution adopted under section 15 of this chapter
7109+8 on or before the allocation deadline determined under subsection (i)
7110+9 may include a provision with respect to the allocation and distribution
7111+10 of property taxes for the purposes and in the manner provided in this
7112+11 section. A declaratory resolution previously adopted may include an
7113+12 allocation provision by the amendment of that declaratory resolution on
7114+13 or before the allocation deadline determined under subsection (i) in
7115+14 accordance with the procedures required for its original adoption. A
7116+15 declaratory resolution or amendment that establishes an allocation
7117+16 provision must include a specific finding of fact, supported by
7118+17 evidence, that the adoption of the allocation provision will result in
7119+18 new property taxes in the area that would not have been generated but
7120+19 for the adoption of the allocation provision. For an allocation area
7121+20 established before July 1, 1995, the expiration date of any allocation
7122+21 provisions for the allocation area is June 30, 2025, or the last date of
7123+22 any obligations that are outstanding on July 1, 2015, whichever is later.
7124+23 A declaratory resolution or an amendment that establishes an allocation
7125+24 provision after June 30, 1995, must specify an expiration date for the
7126+25 allocation provision. For an allocation area established before July 1,
7127+26 2008, the expiration date may not be more than thirty (30) years after
7128+27 the date on which the allocation provision is established. For an
7129+28 allocation area established after June 30, 2008, the expiration date may
7130+29 not be more than twenty-five (25) years after the date on which the first
7131+30 obligation was incurred to pay principal and interest on bonds or lease
7132+31 rentals on leases payable from tax increment revenues. However, with
7133+32 respect to bonds or other obligations that were issued before July 1,
7134+33 2008, if any of the bonds or other obligations that were scheduled when
7135+34 issued to mature before the specified expiration date and that are
7136+35 payable only from allocated tax proceeds with respect to the allocation
7137+36 area remain outstanding as of the expiration date, the allocation
7138+37 provision does not expire until all of the bonds or other obligations are
7139+38 no longer outstanding. Notwithstanding any other law, in the case of an
7140+39 allocation area that is established after June 30, 2019, and that is
7141+40 located in a redevelopment project area described in section
7142+41 25.1(c)(3)(C) of this chapter, an economic development area described
7143+42 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
7144+ES 419—LS 6606/DI 120 164
7145+1 area described in section 25.1(c)(3)(C) of this chapter, the expiration
7146+2 date of the allocation provision may not be more than thirty-five (35)
7147+3 years after the date on which the allocation provision is established.
7148+4 The allocation provision may apply to all or part of the redevelopment
7149+5 project area. The allocation provision must require that any property
7150+6 taxes subsequently levied by or for the benefit of any public body
7151+7 entitled to a distribution of property taxes on taxable property in the
7152+8 allocation area be allocated and distributed as follows:
7153+9 (1) Except as otherwise provided in this section, the proceeds of
7154+10 the taxes attributable to the lesser of:
7155+11 (A) the assessed value of the property for the assessment date
7156+12 with respect to which the allocation and distribution is made;
7157+13 or
7158+14 (B) the base assessed value;
7159+15 shall be allocated to and, when collected, paid into the funds of
7160+16 the respective taxing units.
7161+17 (2) This subdivision applies to a fire protection territory
7162+18 established after December 31, 2022. If a unit becomes a
7163+19 participating unit of a fire protection territory that is
7164+20 established after a declaratory resolution is adopted under
7165+21 section 15 of this chapter, the excess of the proceeds of the
7166+22 property taxes attributable to an increase in the property tax
7167+23 rate for the participating unit of a fire protection territory:
7168+24 (A) except as otherwise provided by this subdivision, shall
7169+25 be determined as follows:
7170+26 STEP ONE: Divide the unit's tax rate for fire protection
7171+27 for the year before the establishment of the fire
7172+28 protection territory by the participating unit's tax rate
7173+29 as part of the fire protection territory.
7174+30 STEP TWO: Subtract the STEP ONE amount from one
7175+31 (1).
7176+32 STEP THREE: Multiply the STEP TWO amount by the
7177+33 allocated property tax attributable to the participating
7178+34 unit of the fire protection territory; and
7179+35 (B) to the extent not otherwise included in subdivisions (1)
7180+36 and (3), the amount determined under STEP THREE of
7181+37 clause (A) shall be allocated to and distributed in the form
7182+38 of an allocated property tax revenue pass back to the
7183+39 participating unit of the fire protection territory for the
7184+40 assessment date with respect to which the allocation is
7185+41 made.
7186+42 However, if the redevelopment commission determines that it
7187+ES 419—LS 6606/DI 120 165
7188+1 is unable to meet its debt service obligations with regards to
7189+2 the allocation area without all or part of the allocated
7190+3 property tax revenue pass back to the participating unit of a
7191+4 fire protection area under this subdivision, then the allocated
7192+5 property tax revenue pass back under this subdivision shall be
7193+6 reduced by the amount necessary for the redevelopment
7194+7 commission to meet its debt service obligations of the
7195+8 allocation area. The calculation under this subdivision must
7196+9 be made by the redevelopment commission in collaboration
7197+10 with the county auditor and the applicable fire protection
7198+11 territory. Any calculation determined according to clause (A)
7199+12 must be submitted to the department of local government
7200+13 finance in the manner prescribed by the department of local
7201+14 government finance. The department of local government
7202+15 finance shall verify the accuracy of each calculation.
7203+16 (2) (3) The excess of the proceeds of the property taxes imposed
7204+17 for the assessment date with respect to which the allocation and
7205+18 distribution is made that are attributable to taxes imposed after
7206+19 being approved by the voters in a referendum or local public
7207+20 question conducted after April 30, 2010, not otherwise included
7208+21 in subdivision (1) subdivisions (1) and (2) shall be allocated to
7209+22 and, when collected, paid into the funds of the taxing unit for
7210+23 which the referendum or local public question was conducted.
7211+24 (3) (4) Except as otherwise provided in this section, property tax
7212+25 proceeds in excess of those described in subdivisions (1), (2), and
7213+26 (2) (3) shall be allocated to the redevelopment district and, when
7214+27 collected, paid into an allocation fund for that allocation area that
7215+28 may be used by the redevelopment district only to do one (1) or
7216+29 more of the following:
7217+30 (A) Pay the principal of and interest on any obligations
7218+31 payable solely from allocated tax proceeds which are incurred
7219+32 by the redevelopment district for the purpose of financing or
7220+33 refinancing the redevelopment of that allocation area.
7221+34 (B) Establish, augment, or restore the debt service reserve for
7222+35 bonds payable solely or in part from allocated tax proceeds in
7223+36 that allocation area.
7224+37 (C) Pay the principal of and interest on bonds payable from
7225+38 allocated tax proceeds in that allocation area and from the
7226+39 special tax levied under section 27 of this chapter.
7227+40 (D) Pay the principal of and interest on bonds issued by the
7228+41 unit to pay for local public improvements that are physically
7229+42 located in or physically connected to that allocation area.
7230+ES 419—LS 6606/DI 120 166
7231+1 (E) Pay premiums on the redemption before maturity of bonds
7232+2 payable solely or in part from allocated tax proceeds in that
7233+3 allocation area.
7234+4 (F) Make payments on leases payable from allocated tax
7235+5 proceeds in that allocation area under section 25.2 of this
7236+6 chapter.
7237+7 (G) Reimburse the unit for expenditures made by it for local
7238+8 public improvements (which include buildings, parking
7239+9 facilities, and other items described in section 25.1(a) of this
7240+10 chapter) that are physically located in or physically connected
7241+11 to that allocation area.
7242+12 (H) Reimburse the unit for rentals paid by it for a building or
7243+13 parking facility that is physically located in or physically
7244+14 connected to that allocation area under any lease entered into
7245+15 under IC 36-1-10.
7246+16 (I) For property taxes first due and payable before January 1,
7247+17 2009, pay all or a part of a property tax replacement credit to
7248+18 taxpayers in an allocation area as determined by the
7249+19 redevelopment commission. This credit equals the amount
7250+20 determined under the following STEPS for each taxpayer in a
7251+21 taxing district (as defined in IC 6-1.1-1-20) that contains all or
7252+22 part of the allocation area:
7253+23 STEP ONE: Determine that part of the sum of the amounts
7254+24 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
7255+25 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
7256+26 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
7257+27 the taxing district.
7258+28 STEP TWO: Divide:
7259+29 (i) that part of each county's eligible property tax
7260+30 replacement amount (as defined in IC 6-1.1-21-2 (before its
7261+31 repeal)) for that year as determined under IC 6-1.1-21-4
7262+32 (before its repeal) that is attributable to the taxing district;
7263+33 by
7264+34 (ii) the STEP ONE sum.
7265+35 STEP THREE: Multiply:
7266+36 (i) the STEP TWO quotient; times
7267+37 (ii) the total amount of the taxpayer's taxes (as defined in
7268+38 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
7269+39 that have been allocated during that year to an allocation
7270+40 fund under this section.
7271+41 If not all the taxpayers in an allocation area receive the credit
7272+42 in full, each taxpayer in the allocation area is entitled to
7273+ES 419—LS 6606/DI 120 167
7274+1 receive the same proportion of the credit. A taxpayer may not
7275+2 receive a credit under this section and a credit under section
7276+3 39.5 of this chapter (before its repeal) in the same year.
7277+4 (J) Pay expenses incurred by the redevelopment commission
7278+5 for local public improvements that are in the allocation area or
7279+6 serving the allocation area. Public improvements include
7280+7 buildings, parking facilities, and other items described in
7281+8 section 25.1(a) of this chapter.
7282+9 (K) Reimburse public and private entities for expenses
7283+10 incurred in training employees of industrial facilities that are
7284+11 located:
7285+12 (i) in the allocation area; and
7286+13 (ii) on a parcel of real property that has been classified as
7287+14 industrial property under the rules of the department of local
7288+15 government finance.
7289+16 However, the total amount of money spent for this purpose in
7290+17 any year may not exceed the total amount of money in the
7291+18 allocation fund that is attributable to property taxes paid by the
7292+19 industrial facilities described in this clause. The
7293+20 reimbursements under this clause must be made within three
7294+21 (3) years after the date on which the investments that are the
7295+22 basis for the increment financing are made.
7296+23 (L) Pay the costs of carrying out an eligible efficiency project
7297+24 (as defined in IC 36-9-41-1.5) within the unit that established
7298+25 the redevelopment commission. However, property tax
7299+26 proceeds may be used under this clause to pay the costs of
7300+27 carrying out an eligible efficiency project only if those
7301+28 property tax proceeds exceed the amount necessary to do the
7302+29 following:
7303+30 (i) Make, when due, any payments required under clauses
7304+31 (A) through (K), including any payments of principal and
7305+32 interest on bonds and other obligations payable under this
7306+33 subdivision, any payments of premiums under this
7307+34 subdivision on the redemption before maturity of bonds, and
7308+35 any payments on leases payable under this subdivision.
7309+36 (ii) Make any reimbursements required under this
7310+37 subdivision.
7311+38 (iii) Pay any expenses required under this subdivision.
7312+39 (iv) Establish, augment, or restore any debt service reserve
7313+40 under this subdivision.
7314+41 (M) Expend money and provide financial assistance as
7315+42 authorized in section 12.2(a)(27) of this chapter.
7316+ES 419—LS 6606/DI 120 168
7317+1 The allocation fund may not be used for operating expenses of the
7318+2 commission.
7319+3 (4) (5) Except as provided in subsection (g), before June 15 of
7320+4 each year, the commission shall do the following:
7321+5 (A) Determine the amount, if any, by which the assessed value
7322+6 of the taxable property in the allocation area for the most
7323+7 recent assessment date minus the base assessed value, when
7324+8 multiplied by the estimated tax rate of the allocation area, will
7325+9 exceed the amount of assessed value needed to produce the
7326+10 property taxes necessary to make, when due, principal and
7327+11 interest payments on bonds described in subdivision (3), (4),
7328+12 plus the amount necessary for other purposes described in
7329+13 subdivision (3). (4).
7330+14 (B) Provide a written notice to the county auditor, the fiscal
7331+15 body of the county or municipality that established the
7332+16 department of redevelopment, and the officers who are
7333+17 authorized to fix budgets, tax rates, and tax levies under
7334+18 IC 6-1.1-17-5 for each of the other taxing units that is wholly
7335+19 or partly located within the allocation area. The county auditor,
7336+20 upon receiving the notice, shall forward this notice (in an
7337+21 electronic format) to the department of local government
7338+22 finance not later than June 15 of each year. The notice must:
7339+23 (i) state the amount, if any, of excess assessed value that the
7340+24 commission has determined may be allocated to the
7341+25 respective taxing units in the manner prescribed in
7342+26 subdivision (1); or
7343+27 (ii) state that the commission has determined that there is no
7344+28 excess assessed value that may be allocated to the respective
7345+29 taxing units in the manner prescribed in subdivision (1).
7346+30 The county auditor shall allocate to the respective taxing units
7347+31 the amount, if any, of excess assessed value determined by the
7348+32 commission. The commission may not authorize an allocation
7349+33 of assessed value to the respective taxing units under this
7350+34 subdivision if to do so would endanger the interests of the
7351+35 holders of bonds described in subdivision (3) (4) or lessors
7352+36 under section 25.3 of this chapter.
7353+37 (C) If:
7354+38 (i) the amount of excess assessed value determined by the
7355+39 commission is expected to generate more than two hundred
7356+40 percent (200%) of the amount of allocated tax proceeds
7357+41 necessary to make, when due, principal and interest
7358+42 payments on bonds described in subdivision (3); (4); plus
7359+ES 419—LS 6606/DI 120 169
7360+1 (ii) the amount necessary for other purposes described in
7361+2 subdivision (3); (4);
7362+3 the commission shall submit to the legislative body of the unit
7363+4 its determination of the excess assessed value that the
7364+5 commission proposes to allocate to the respective taxing units
7365+6 in the manner prescribed in subdivision (1). The legislative
7366+7 body of the unit may approve the commission's determination
7367+8 or modify the amount of the excess assessed value that will be
7368+9 allocated to the respective taxing units in the manner
7369+10 prescribed in subdivision (1).
7370+11 (5) (6) Notwithstanding subdivision (4), (5), in the case of an
7371+12 allocation area that is established after June 30, 2019, and that is
7372+13 located in a redevelopment project area described in section
7373+14 25.1(c)(3)(C) of this chapter, an economic development area
7374+15 described in section 25.1(c)(3)(C) of this chapter, or an urban
7375+16 renewal project area described in section 25.1(c)(3)(C) of this
7376+17 chapter, for each year the allocation provision is in effect, if the
7377+18 amount of excess assessed value determined by the commission
7378+19 under subdivision (4)(A) (5)(A) is expected to generate more than
7379+20 two hundred percent (200%) of:
7380+21 (A) the amount of allocated tax proceeds necessary to make,
7381+22 when due, principal and interest payments on bonds described
7382+23 in subdivision (3) (4) for the project; plus
7383+24 (B) the amount necessary for other purposes described in
7384+25 subdivision (3) (4) for the project;
7385+26 the amount of the excess assessed value that generates more than
7386+27 two hundred percent (200%) of the amounts described in clauses
7387+28 (A) and (B) shall be allocated to the respective taxing units in the
7388+29 manner prescribed by subdivision (1).
7389+30 (c) For the purpose of allocating taxes levied by or for any taxing
7390+31 unit or units, the assessed value of taxable property in a territory in the
7391+32 allocation area that is annexed by any taxing unit after the effective
7392+33 date of the allocation provision of the declaratory resolution is the
7393+34 lesser of:
7394+35 (1) the assessed value of the property for the assessment date with
7395+36 respect to which the allocation and distribution is made; or
7396+37 (2) the base assessed value.
7397+38 (d) Property tax proceeds allocable to the redevelopment district
7398+39 under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),
7399+40 be irrevocably pledged by the redevelopment district for payment as set
7400+41 forth in subsection (b)(3). (b)(4).
7401+42 (e) Notwithstanding any other law, each assessor shall, upon
7402+ES 419—LS 6606/DI 120 170
7403+1 petition of the redevelopment commission, reassess the taxable
7404+2 property situated upon or in, or added to, the allocation area, effective
7405+3 on the next assessment date after the petition.
7406+4 (f) Notwithstanding any other law, the assessed value of all taxable
7407+5 property in the allocation area, for purposes of tax limitation, property
7408+6 tax replacement, and formulation of the budget, tax rate, and tax levy
7409+7 for each political subdivision in which the property is located is the
7410+8 lesser of:
7411+9 (1) the assessed value of the property as valued without regard to
7412+10 this section; or
7413+11 (2) the base assessed value.
7414+12 (g) If any part of the allocation area is located in an enterprise zone
7415+13 created under IC 5-28-15, the unit that designated the allocation area
7416+14 shall create funds as specified in this subsection. A unit that has
7417+15 obligations, bonds, or leases payable from allocated tax proceeds under
7418+16 subsection (b)(3) (b)(4) shall establish an allocation fund for the
7419+17 purposes specified in subsection (b)(3) (b)(4) and a special zone fund.
7420+18 Such a unit shall, until the end of the enterprise zone phase out period,
7421+19 deposit each year in the special zone fund any amount in the allocation
7422+20 fund derived from property tax proceeds in excess of those described
7423+21 in subsection (b)(1), and (b)(2), and (b)(3) from property located in the
7424+22 enterprise zone that exceeds the amount sufficient for the purposes
7425+23 specified in subsection (b)(3) (b)(4) for the year. The amount sufficient
7426+24 for purposes specified in subsection (b)(3) (b)(4) for the year shall be
7427+25 determined based on the pro rata portion of such current property tax
7428+26 proceeds from the part of the enterprise zone that is within the
7429+27 allocation area as compared to all such current property tax proceeds
7430+28 derived from the allocation area. A unit that has no obligations, bonds,
7431+29 or leases payable from allocated tax proceeds under subsection (b)(3)
7432+30 (b)(4) shall establish a special zone fund and deposit all the property
7433+31 tax proceeds in excess of those described in subsection (b)(1), and
7434+32 (b)(2), and (b)(3) in the fund derived from property tax proceeds in
7435+33 excess of those described in subsection (b)(1), and (b)(2), and (b)(3)
7436+34 from property located in the enterprise zone. The unit that creates the
7437+35 special zone fund shall use the fund (based on the recommendations of
7438+36 the urban enterprise association) for programs in job training, job
7439+37 enrichment, and basic skill development that are designed to benefit
7440+38 residents and employers in the enterprise zone or other purposes
7441+39 specified in subsection (b)(3), (b)(4), except that where reference is
7442+40 made in subsection (b)(3) (b)(4) to allocation area it shall refer for
7443+41 purposes of payments from the special zone fund only to that part of the
7444+42 allocation area that is also located in the enterprise zone. Those
7445+ES 419—LS 6606/DI 120 171
7446+1 programs shall reserve at least one-half (1/2) of their enrollment in any
7447+2 session for residents of the enterprise zone.
7448+3 (h) The state board of accounts and department of local government
7449+4 finance shall make the rules and prescribe the forms and procedures
7450+5 that they consider expedient for the implementation of this chapter.
7451+6 After each reassessment in an area under a reassessment plan prepared
7452+7 under IC 6-1.1-4-4.2, the department of local government finance shall
7453+8 adjust the base assessed value one (1) time to neutralize any effect of
7454+9 the reassessment of the real property in the area on the property tax
7455+10 proceeds allocated to the redevelopment district under this section.
7456+11 After each annual adjustment under IC 6-1.1-4-4.5, the department of
7457+12 local government finance shall adjust the base assessed value one (1)
7458+13 time to neutralize any effect of the annual adjustment on the property
7459+14 tax proceeds allocated to the redevelopment district under this section.
7460+15 However, the adjustments under this subsection:
7461+16 (1) may not include the effect of phasing in assessed value due to
7462+17 property tax abatements under IC 6-1.1-12.1;
7463+18 (2) may not produce less property tax proceeds allocable to the
7464+19 redevelopment district under subsection (b)(3) (b)(4) than would
7465+20 otherwise have been received if the reassessment under the
7466+21 reassessment plan or the annual adjustment had not occurred; and
7467+22 (3) may decrease base assessed value only to the extent that
7468+23 assessed values in the allocation area have been decreased due to
7469+24 annual adjustments or the reassessment under the reassessment
7470+25 plan.
7471+26 Assessed value increases attributable to the application of an abatement
7472+27 schedule under IC 6-1.1-12.1 may not be included in the base assessed
7473+28 value of an allocation area. The department of local government
7474+29 finance may prescribe procedures for county and township officials to
7475+30 follow to assist the department in making the adjustments.
7476+31 (i) The allocation deadline referred to in subsection (b) is
7477+32 determined in the following manner:
7478+33 (1) The initial allocation deadline is December 31, 2011.
7479+34 (2) Subject to subdivision (3), the initial allocation deadline and
7480+35 subsequent allocation deadlines are automatically extended in
7481+36 increments of five (5) years, so that allocation deadlines
7482+37 subsequent to the initial allocation deadline fall on December 31,
7483+38 2016, and December 31 of each fifth year thereafter.
7484+39 (3) At least one (1) year before the date of an allocation deadline
7485+40 determined under subdivision (2), the general assembly may enact
7486+41 a law that:
7487+42 (A) terminates the automatic extension of allocation deadlines
7488+ES 419—LS 6606/DI 120 172
7489+1 under subdivision (2); and
7490+2 (B) specifically designates a particular date as the final
7491+3 allocation deadline.
7492+4 (j) If a redevelopment commission adopts a declaratory resolution
7493+5 or an amendment to a declaratory resolution that contains an allocation
7494+6 provision and the redevelopment commission makes either of the
7495+7 filings required under section 17(e) of this chapter after the first
7496+8 anniversary of the effective date of the allocation provision, the auditor
7497+9 of the county in which the unit is located shall compute the base
7498+10 assessed value for the allocation area using the assessment date
7499+11 immediately preceding the later of:
7500+12 (1) the date on which the documents are filed with the county
7501+13 auditor; or
7502+14 (2) the date on which the documents are filed with the department
7503+15 of local government finance.
7504+16 (k) For an allocation area established after June 30, 2024,
7505+17 "residential property" refers to the assessed value of property that is
7506+18 allocated to the one percent (1%) homestead land and improvement
7507+19 categories in the county tax and billing software system, along with the
7508+20 residential assessed value as defined for purposes of calculating the
7509+21 rate for the local income tax property tax relief credit designated for
7510+22 residential property under IC 6-3.6-5-6(d)(3).
7511+23 SECTION 100. IC 36-7-14-48, AS AMENDED BY P.L.38-2021,
7512+24 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7513+25 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 48. (a) Notwithstanding
7514+26 section 39(a) of this chapter, with respect to the allocation and
7515+27 distribution of property taxes for the accomplishment of a program
7516+28 adopted under section 45 of this chapter, "base assessed value" means,
7517+29 subject to section 39(j) of this chapter, the net assessed value of all of
7518+30 the property, other than personal property, as finally determined for the
7519+31 assessment date immediately preceding the effective date of the
7520+32 allocation provision, as adjusted under section 39(h) of this chapter.
7521+33 (b) The allocation fund established under section 39(b) of this
7522+34 chapter for the allocation area for a program adopted under section 45
7523+35 of this chapter may be used only for purposes related to the
7524+36 accomplishment of the program, including the following:
7525+37 (1) The construction, rehabilitation, or repair of residential units
7526+38 within the allocation area.
7527+39 (2) The construction, reconstruction, or repair of any
7528+40 infrastructure (including streets, sidewalks, and sewers) within or
7529+41 serving the allocation area.
7530+42 (3) The acquisition of real property and interests in real property
7531+ES 419—LS 6606/DI 120 173
7532+1 within the allocation area.
7533+2 (4) The demolition of real property within the allocation area.
7534+3 (5) The provision of financial assistance to enable individuals and
7535+4 families to purchase or lease residential units within the allocation
7536+5 area. However, financial assistance may be provided only to those
7537+6 individuals and families whose income is at or below the county's
7538+7 median income for individuals and families, respectively.
7539+8 (6) The provision of financial assistance to neighborhood
7540+9 development corporations to permit them to provide financial
7541+10 assistance for the purposes described in subdivision (5).
7542+11 (7) For property taxes first due and payable before January 1,
7543+12 2009, providing each taxpayer in the allocation area a credit for
7544+13 property tax replacement as determined under subsections (c) and
7545+14 (d). However, the commission may provide this credit only if the
7546+15 municipal legislative body (in the case of a redevelopment
7547+16 commission established by a municipality) or the county
7548+17 executive (in the case of a redevelopment commission established
7549+18 by a county) establishes the credit by ordinance adopted in the
7550+19 year before the year in which the credit is provided.
7551+20 (c) The maximum credit that may be provided under subsection
7552+21 (b)(7) to a taxpayer in a taxing district that contains all or part of an
7553+22 allocation area established for a program adopted under section 45 of
7554+23 this chapter shall be determined as follows:
7555+24 STEP ONE: Determine that part of the sum of the amounts
7556+25 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
7557+26 through IC 6-1.1-21-2(g)(5) (before their repeal) that is
7558+27 attributable to the taxing district.
7559+28 STEP TWO: Divide:
7560+29 (A) that part of each county's eligible property tax replacement
7561+30 amount (as defined in IC 6-1.1-21-2) (before its repeal) for
7562+31 that year as determined under IC 6-1.1-21-4(a)(1) (before its
7563+32 repeal) that is attributable to the taxing district; by
7564+33 (B) the amount determined under STEP ONE.
7565+34 STEP THREE: Multiply:
7566+35 (A) the STEP TWO quotient; by
7567+36 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
7568+37 its repeal) levied in the taxing district allocated to the
7569+38 allocation fund, including the amount that would have been
7570+39 allocated but for the credit.
7571+40 (d) The commission may determine to grant to taxpayers in an
7572+41 allocation area from its allocation fund a credit under this section, as
7573+42 calculated under subsection (c). Except as provided in subsection (g),
7574+ES 419—LS 6606/DI 120 174
7575+1 one-half (1/2) of the credit shall be applied to each installment of taxes
7576+2 (as defined in IC 6-1.1-21-2) (before its repeal) that under
7577+3 IC 6-1.1-22-9 are due and payable in a year. The commission must
7578+4 provide for the credit annually by a resolution and must find in the
7579+5 resolution the following:
7580+6 (1) That the money to be collected and deposited in the allocation
7581+7 fund, based upon historical collection rates, after granting the
7582+8 credit will equal the amounts payable for contractual obligations
7583+9 from the fund, plus ten percent (10%) of those amounts.
7584+10 (2) If bonds payable from the fund are outstanding, that there is
7585+11 a debt service reserve for the bonds that at least equals the amount
7586+12 of the credit to be granted.
7587+13 (3) If bonds of a lessor under section 25.2 of this chapter or under
7588+14 IC 36-1-10 are outstanding and if lease rentals are payable from
7589+15 the fund, that there is a debt service reserve for those bonds that
7590+16 at least equals the amount of the credit to be granted.
7591+17 If the tax increment is insufficient to grant the credit in full, the
7592+18 commission may grant the credit in part, prorated among all taxpayers.
7593+19 (e) Notwithstanding section 39(b) of this chapter, the allocation
7594+20 fund established under section 39(b) of this chapter for the allocation
7595+21 area for a program adopted under section 45 of this chapter may only
7596+22 be used to do one (1) or more of the following:
7597+23 (1) Accomplish one (1) or more of the actions set forth in section
7598+24 39(b)(3)(A) 39(b)(4)(A) through 39(b)(3)(H) 39(b)(4)(H) and
7599+25 39(b)(3)(J) 39(b)(4)(J) of this chapter for property that is
7600+26 residential in nature.
7601+27 (2) Reimburse the county or municipality for expenditures made
7602+28 by the county or municipality in order to accomplish the housing
7603+29 program in that allocation area.
7604+30 The allocation fund may not be used for operating expenses of the
7605+31 commission.
7606+32 (f) Notwithstanding section 39(b) of this chapter, the commission
7607+33 shall, relative to the allocation fund established under section 39(b) of
7608+34 this chapter for an allocation area for a program adopted under section
7609+35 45 of this chapter, do the following before June 15 of each year:
7610+36 (1) Determine the amount, if any, by which the assessed value of
7611+37 the taxable property in the allocation area for the most recent
7612+38 assessment date minus the base assessed value, when multiplied
7613+39 by the estimated tax rate of the allocation area, will exceed the
7614+40 amount of assessed value needed to produce the property taxes
7615+41 necessary to:
7616+42 (A) make the distribution required under section 39(b)(2) and
7617+ES 419—LS 6606/DI 120 175
7618+1 39(b)(3) of this chapter;
7619+2 (B) make, when due, principal and interest payments on bonds
7620+3 described in section 39(b)(3) 39(b)(4) of this chapter;
7621+4 (C) pay the amount necessary for other purposes described in
7622+5 section 39(b)(3) 39(b)(4) of this chapter; and
7623+6 (D) reimburse the county or municipality for anticipated
7624+7 expenditures described in subsection (e)(2).
7625+8 (2) Provide a written notice to the county auditor, the fiscal body
7626+9 of the county or municipality that established the department of
7627+10 redevelopment, and the officers who are authorized to fix budgets,
7628+11 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
7629+12 taxing units that is wholly or partly located within the allocation
7630+13 area. The county auditor, upon receiving the notice, shall forward
7631+14 this notice (in an electronic format) to the department of local
7632+15 government finance not later than June 15 of each year. The
7633+16 notice must:
7634+17 (A) state the amount, if any, of excess property taxes that the
7635+18 commission has determined may be paid to the respective
7636+19 taxing units in the manner prescribed in section 39(b)(1) of
7637+20 this chapter; or
7638+21 (B) state that the commission has determined that there is no
7639+22 excess assessed value that may be allocated to the respective
7640+23 taxing units in the manner prescribed in subdivision (1).
7641+24 The county auditor shall allocate to the respective taxing units the
7642+25 amount, if any, of excess assessed value determined by the
7643+26 commission.
7644+27 (3) If:
7645+28 (A) the amount of excess assessed value determined by the
7646+29 commission is expected to generate more than two hundred
7647+30 percent (200%) of the amount of allocated tax proceeds
7648+31 necessary to make, when due, principal and interest payments
7649+32 on bonds described in subdivision (1); plus
7650+33 (B) the amount necessary for other purposes described in
7651+34 subdivision (1);
7652+35 the commission shall submit to the legislative body of the unit its
7653+36 determination of the excess assessed value that the commission
7654+37 proposes to allocate to the respective taxing units in the manner
7655+38 prescribed in subdivision (2). The legislative body of the unit may
7656+39 approve the commission's determination or modify the amount of
7657+40 the excess assessed value that will be allocated to the respective
7658+41 taxing units in the manner prescribed in subdivision (2).
7659+42 (g) This subsection applies to an allocation area only to the extent
7660+ES 419—LS 6606/DI 120 176
7661+1 that the net assessed value of property that is assessed as residential
7662+2 property under the rules of the department of local government finance
7663+3 is not included in the base assessed value. If property tax installments
7664+4 with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
7665+5 installments established by the department of local government finance
7666+6 under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
7667+7 allocation area is entitled to an additional credit under subsection (d)
7668+8 for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
7669+9 installments. The credit shall be applied in the same proportion to each
7670+10 installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
7671+11 SECTION 101. IC 36-7-14-52, AS AMENDED BY P.L.38-2021,
7672+12 SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7673+13 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 52. (a) Notwithstanding
7674+14 section 39(a) of this chapter, with respect to the allocation and
7675+15 distribution of property taxes for the accomplishment of the purposes
7676+16 of an age-restricted housing program adopted under section 49 of this
7677+17 chapter, "base assessed value" means, subject to section 39(j) of this
7678+18 chapter, the net assessed value of all of the property, other than
7679+19 personal property, as finally determined for the assessment date
7680+20 immediately preceding the effective date of the allocation provision, as
7681+21 adjusted under section 39(h) of this chapter.
7682+22 (b) The allocation fund established under section 39(b) of this
7683+23 chapter for the allocation area for an age-restricted housing program
7684+24 adopted under section 49 of this chapter may be used only for purposes
7685+25 related to the accomplishment of the purposes of the program,
7686+26 including, but not limited to, the following:
7687+27 (1) The construction of any infrastructure (including streets,
7688+28 sidewalks, and sewers) or local public improvements in, serving,
7689+29 or benefiting the allocation area.
7690+30 (2) The acquisition of real property and interests in real property
7691+31 within the allocation area.
7692+32 (3) The preparation of real property in anticipation of
7693+33 development of the real property within the allocation area.
7694+34 (4) To do any of the following:
7695+35 (A) Pay the principal of and interest on bonds or any other
7696+36 obligations payable from allocated tax proceeds in the
7697+37 allocation area that are incurred by the redevelopment district
7698+38 for the purpose of financing or refinancing the age-restricted
7699+39 housing program established under section 49 of this chapter
7700+40 for the allocation area.
7701+41 (B) Establish, augment, or restore the debt service reserve for
7702+42 bonds payable solely or in part from allocated tax proceeds in
7703+ES 419—LS 6606/DI 120 177
7704+1 the allocation area.
7705+2 (C) Pay the principal of and interest on bonds payable from
7706+3 allocated tax proceeds in the allocation area and from the
7707+4 special tax levied under section 27 of this chapter.
7708+5 (D) Pay the principal of and interest on bonds issued by the
7709+6 unit to pay for local public improvements that are physically
7710+7 located in or physically connected to the allocation area.
7711+8 (E) Pay premiums on the redemption before maturity of bonds
7712+9 payable solely or in part from allocated tax proceeds in the
7713+10 allocation area.
7714+11 (F) Make payments on leases payable from allocated tax
7715+12 proceeds in the allocation area under section 25.2 of this
7716+13 chapter.
7717+14 (G) Reimburse the unit for expenditures made by the unit for
7718+15 local public improvements (which include buildings, parking
7719+16 facilities, and other items described in section 25.1(a) of this
7720+17 chapter) that are physically located in or physically connected
7721+18 to the allocation area.
7722+19 (c) Notwithstanding section 39(b) of this chapter, the commission
7723+20 shall, relative to the allocation fund established under section 39(b) of
7724+21 this chapter for an allocation area for an age-restricted housing program
7725+22 adopted under section 49 of this chapter, do the following before June
7726+23 15 of each year:
7727+24 (1) Determine the amount, if any, by which the assessed value of
7728+25 the taxable property in the allocation area for the most recent
7729+26 assessment date minus the base assessed value, when multiplied
7730+27 by the estimated tax rate of the allocation area, will exceed the
7731+28 amount of assessed value needed to produce the property taxes
7732+29 necessary to:
7733+30 (A) make the distribution required under section 39(b)(2) and
7734+31 39(b)(3) of this chapter;
7735+32 (B) make, when due, principal and interest payments on bonds
7736+33 described in section 39(b)(3) 39(b)(4) of this chapter;
7737+34 (C) pay the amount necessary for other purposes described in
7738+35 section 39(b)(3) 39(b)(4) of this chapter; and
7739+36 (D) reimburse the county or municipality for anticipated
7740+37 expenditures described in subsection (b)(2).
7741+38 (2) Provide a written notice to the county auditor, the fiscal body
7742+39 of the county or municipality that established the department of
7743+40 redevelopment, and the officers who are authorized to fix budgets,
7744+41 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
7745+42 taxing units that is wholly or partly located within the allocation
7746+ES 419—LS 6606/DI 120 178
7747+1 area. The county auditor, upon receiving the notice, shall forward
7748+2 this notice (in an electronic format) to the department of local
7749+3 government finance not later than June 15 of each year. The
7750+4 notice must:
7751+5 (A) state the amount, if any, of excess property taxes that the
7752+6 commission has determined may be paid to the respective
7753+7 taxing units in the manner prescribed in section 39(b)(1) of
7754+8 this chapter; or
7755+9 (B) state that the commission has determined that there is no
7756+10 excess assessed value that may be allocated to the respective
7757+11 taxing units in the manner prescribed in subdivision (1).
7758+12 The county auditor shall allocate to the respective taxing units the
7759+13 amount, if any, of excess assessed value determined by the
7760+14 commission.
7761+15 SECTION 102. IC 36-7-14-56, AS ADDED BY P.L.235-2019,
7762+16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7763+17 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 56. (a) This section
7764+18 applies only to a residential housing development program authorized
7765+19 by section 53 of this chapter.
7766+20 (b) Notwithstanding section 39(a) of this chapter, with respect to the
7767+21 allocation and distribution of property taxes for the accomplishment of
7768+22 the purposes of a residential housing development program adopted
7769+23 under section 53 of this chapter, "base assessed value" means the net
7770+24 assessed value of all of the property, other than personal property, as
7771+25 finally determined for the assessment date immediately preceding the
7772+26 effective date of the allocation provision, as adjusted under section
7773+27 39(h) of this chapter.
7774+28 (c) The allocation fund established under section 39(b) of this
7775+29 chapter for the allocation area for a residential housing development
7776+30 program adopted under section 53 of this chapter may be used only for
7777+31 purposes related to the accomplishment of the purposes of the program,
7778+32 including, but not limited to, the following:
7779+33 (1) The construction of any infrastructure (including streets,
7780+34 roads, and sidewalks) or local public improvements in, serving,
7781+35 or benefiting a residential housing development project.
7782+36 (2) The acquisition of real property and interests in real property
7783+37 for rehabilitation purposes within the allocation area.
7784+38 (3) The preparation of real property in anticipation of
7785+39 development of the real property within the allocation area.
7786+40 (4) To do any of the following:
7787+41 (A) Pay the principal of and interest on bonds or any other
7788+42 obligations payable from allocated tax proceeds in the
7789+ES 419—LS 6606/DI 120 179
7790+1 allocation area that are incurred by the redevelopment district
7791+2 for the purpose of financing or refinancing the residential
7792+3 housing development program established under section 53 of
7793+4 this chapter for the allocation area.
7794+5 (B) Establish, augment, or restore the debt service reserve for
7795+6 bonds payable solely or in part from allocated tax proceeds in
7796+7 the allocation area.
7797+8 (C) Pay the principal of and interest on bonds payable from
7798+9 allocated tax proceeds in the allocation area and from the
7799+10 special tax levied under section 27 of this chapter.
7800+11 (D) Pay the principal of and interest on bonds issued by the
7801+12 unit to pay for local public improvements that are physically
7802+13 located in or physically connected to the allocation area.
7803+14 (E) Pay premiums on the redemption before maturity of bonds
7804+15 payable solely or in part from allocated tax proceeds in the
7805+16 allocation area.
7806+17 (F) Make payments on leases payable from allocated tax
7807+18 proceeds in the allocation area under section 25.2 of this
7808+19 chapter.
7809+20 (G) Reimburse the unit for expenditures made by the unit for
7810+21 local public improvements (which include buildings, parking
7811+22 facilities, and other items described in section 25.1(a) of this
7812+23 chapter) that are physically located in or physically connected
7813+24 to the allocation area.
7814+25 (d) Notwithstanding section 39(b) of this chapter, the commission
7815+26 shall, relative to the allocation fund established under section 39(b) of
7816+27 this chapter for an allocation area for a residential housing
7817+28 development program adopted under section 53 of this chapter, do the
7818+29 following before June 15 of each year:
7819+30 (1) Determine the amount, if any, by which the assessed value of
7820+31 the taxable property in the allocation area for the most recent
7821+32 assessment date minus the base assessed value, when multiplied
7822+33 by the estimated tax rate of the allocation area, will exceed the
7823+34 amount of assessed value needed to produce the property taxes
7824+35 necessary to:
7825+36 (A) make the distribution required under section 39(b)(2) and
7826+37 39(b)(3) of this chapter;
7827+38 (B) make, when due, principal and interest payments on bonds
7828+39 described in section 39(b)(3) 39(b)(4) of this chapter;
7829+40 (C) pay the amount necessary for other purposes described in
7830+41 section 39(b)(3) 39(b)(4) of this chapter; and
7831+42 (D) reimburse the county or municipality for anticipated
7832+ES 419—LS 6606/DI 120 180
7833+1 expenditures described in subsection (c)(2).
7834+2 (2) Provide a written notice to the county auditor, the fiscal body
7835+3 of the county or municipality that established the department of
7836+4 redevelopment, the officers who are authorized to fix budgets, tax
7837+5 rates, and tax levies under IC 6-1.1-17-5 for each of the other
7838+6 taxing units that are wholly or partly located within the allocation
7839+7 area, and (in an electronic format) the department of local
7840+8 government finance. The notice must:
7841+9 (A) state the amount, if any, of excess property taxes that the
7842+10 commission has determined may be paid to the respective
7843+11 taxing units in the manner prescribed in section 39(b)(1) of
7844+12 this chapter; or
7845+13 (B) state that the commission has determined that there is no
7846+14 excess assessed value that may be allocated to the respective
7847+15 taxing units in the manner prescribed in subdivision (1).
7848+16 The county auditor shall allocate to the respective taxing units the
7849+17 amount, if any, of excess assessed value determined by the
7850+18 commission.
7851+19 (e) If the amount of excess assessed value determined by the
7852+20 commission is expected to generate more than two hundred percent
7853+21 (200%) of the amount of allocated tax proceeds:
7854+22 (1) necessary to make, when due, principal and interest payments
7855+23 on bonds described in 39(b)(3) section 39(b)(4) of this chapter;
7856+24 plus
7857+25 (2) the amount necessary for other purposes described in 39(b)(3)
7858+26 section 39(b)(4) of this chapter;
7859+27 the commission shall submit to the county or municipal legislative
7860+28 body its determination of the excess assessed value that the
7861+29 commission proposes to allocate to the respective taxing units in the
7862+30 manner prescribed in subsection (d)(2). The county or municipal
7863+31 legislative body may approve the commission's determination or
7864+32 modify the amount of the excess assessed value that will be allocated
7865+33 to the respective taxing units in the manner prescribed in subsection
7866+34 (d)(2).
7867+35 (f) An allocation area must terminate on the date the residential
7868+36 housing development program is terminated as set forth in section
7869+37 53(e) of this chapter.
7870+38 SECTION 103. IC 36-7-14.5-12.5, AS AMENDED BY
7871+39 P.L.242-2015, SECTION 43, IS AMENDED TO READ AS
7872+40 FOLLOWS [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]:
7873+41 Sec. 12.5. (a) This section applies only to an authority in a county
7874+42 having a United States government military base that is scheduled for
7875+ES 419—LS 6606/DI 120 181
7876+1 closing or is completely or partially inactive or closed.
7877+2 (b) In order to accomplish the purposes set forth in section 11 of this
7878+3 chapter, an authority may create an economic development area:
7879+4 (1) by following the procedures set forth in IC 36-7-14-41 for the
7880+5 establishment of an economic development area by a
7881+6 redevelopment commission; and
7882+7 (2) with the same effect as if the economic development area was
7883+8 created by a redevelopment commission.
7884+9 The area established under this section shall be established only in the
7885+10 area where a United States government military base that is scheduled
7886+11 for closing or is completely or partially inactive or closed is or was
7887+12 located.
7888+13 (c) In order to accomplish the purposes set forth in section 11 of this
7889+14 chapter, an authority may do the following in a manner that serves an
7890+15 economic development area created under this section:
7891+16 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
7892+17 lease, or any combination of methods, any personal property or
7893+18 interest in real property needed for the redevelopment of
7894+19 economic development areas located within the corporate
7895+20 boundaries of the unit.
7896+21 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
7897+22 other instrument), exchange, lease, rent, or otherwise dispose of
7898+23 property acquired for use in the redevelopment of economic
7899+24 development areas on the terms and conditions that the authority
7900+25 considers best for the unit and the unit's inhabitants.
7901+26 (3) Sell, lease, or grant interests in all or part of the real property
7902+27 acquired for redevelopment purposes to any other department of
7903+28 the unit or to any other governmental agency for public ways,
7904+29 levees, sewerage, parks, playgrounds, schools, and other public
7905+30 purposes on any terms that may be agreed on.
7906+31 (4) Clear real property acquired for redevelopment purposes.
7907+32 (5) Repair and maintain structures acquired for redevelopment
7908+33 purposes.
7909+34 (6) Remodel, rebuild, enlarge, or make major structural
7910+35 improvements on structures acquired for redevelopment purposes.
7911+36 (7) Survey or examine any land to determine whether the land
7912+37 should be included within an economic development area to be
7913+38 acquired for redevelopment purposes and to determine the value
7914+39 of that land.
7915+40 (8) Appear before any other department or agency of the unit, or
7916+41 before any other governmental agency in respect to any matter
7917+42 affecting:
7918+ES 419—LS 6606/DI 120 182
7919+1 (A) real property acquired or being acquired for
7920+2 redevelopment purposes; or
7921+3 (B) any economic development area within the jurisdiction of
7922+4 the authority.
7923+5 (9) Institute or defend in the name of the unit any civil action, but
7924+6 all actions against the authority must be brought in the circuit or
7925+7 superior court of the county where the authority is located.
7926+8 (10) Use any legal or equitable remedy that is necessary or
7927+9 considered proper to protect and enforce the rights of and perform
7928+10 the duties of the authority.
7929+11 (11) Exercise the power of eminent domain in the name of and
7930+12 within the corporate boundaries of the unit subject to the same
7931+13 conditions and procedures that apply to the exercise of the power
7932+14 of eminent domain by a redevelopment commission under
7933+15 IC 36-7-14.
7934+16 (12) Appoint an executive director, appraisers, real estate experts,
7935+17 engineers, architects, surveyors, and attorneys.
7936+18 (13) Appoint clerks, guards, laborers, and other employees the
7937+19 authority considers advisable, except that those appointments
7938+20 must be made in accordance with the merit system of the unit if
7939+21 such a system exists.
7940+22 (14) Prescribe the duties and regulate the compensation of
7941+23 employees of the authority.
7942+24 (15) Provide a pension and retirement system for employees of
7943+25 the authority by using the public employees' retirement fund or a
7944+26 retirement plan approved by the United States Department of
7945+27 Housing and Urban Development.
7946+28 (16) Discharge and appoint successors to employees of the
7947+29 authority subject to subdivision (13).
7948+30 (17) Rent offices for use of the department or authority, or accept
7949+31 the use of offices furnished by the unit.
7950+32 (18) Equip the offices of the authority with the necessary
7951+33 furniture, furnishings, equipment, records, and supplies.
7952+34 (19) Design, order, contract for, and construct, reconstruct,
7953+35 improve, or renovate the following:
7954+36 (A) Any local public improvement or structure that is
7955+37 necessary for redevelopment purposes or economic
7956+38 development within the corporate boundaries of the unit.
7957+39 (B) Any structure that enhances development or economic
7958+40 development.
7959+41 (20) Contract for the construction, extension, or improvement of
7960+42 pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
7961+ES 419—LS 6606/DI 120 183
7962+1 (21) Accept loans, grants, and other forms of financial assistance
7963+2 from, or contract with, the federal government, the state
7964+3 government, a municipal corporation, a special taxing district, a
7965+4 foundation, or any other source.
7966+5 (22) Make and enter into all contracts and agreements necessary
7967+6 or incidental to the performance of the duties of the authority and
7968+7 the execution of the powers of the authority under this chapter.
7969+8 (23) Take any action necessary to implement the purpose of the
7970+9 authority.
7971+10 (24) Provide financial assistance, in the manner that best serves
7972+11 the purposes set forth in section 11 of this chapter, including
7973+12 grants and loans, to enable private enterprise to develop,
7974+13 redevelop, and reuse military base property or otherwise enable
7975+14 private enterprise to provide social and economic benefits to the
7976+15 citizens of the unit.
7977+16 (d) An authority may designate all or a portion of an economic
7978+17 development area created under this section as an allocation area by
7979+18 following the procedures set forth in IC 36-7-14-39 for the
7980+19 establishment of an allocation area by a redevelopment commission.
7981+20 The allocation provision may modify the definition of "property taxes"
7982+21 under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
7983+22 depreciable personal property located and taxable on the site of
7984+23 operations of designated taxpayers in accordance with the procedures
7985+24 applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
7986+25 applies to such a modification. An allocation area established by an
7987+26 authority under this section is a special taxing district authorized by the
7988+27 general assembly to enable the unit to provide special benefits to
7989+28 taxpayers in the allocation area by promoting economic development
7990+29 that is of public use and benefit. For allocation areas established for an
7991+30 economic development area created under this section after June 30,
7992+31 1997, and to the expanded portion of an allocation area for an
7993+32 economic development area that was established before June 30, 1997,
7994+33 and that is expanded under this section after June 30, 1997, the net
7995+34 assessed value of property that is assessed as residential property under
7996+35 the rules of the department of local government finance, as finally
7997+36 determined for any assessment date, must be allocated. All of the
7998+37 provisions of IC 36-7-14-39 apply to an allocation area created under
7999+38 this section, except that the authority shall be vested with the rights and
8000+39 duties of a commission as referenced in those sections, except that the
8001+40 expiration date of any allocation provision for the allocation area is the
8002+41 later of July 1, 2016, or the expiration date determined under
8003+42 IC 36-7-14-39(b), and except that, notwithstanding
8004+ES 419—LS 6606/DI 120 184
8005+1 IC 36-7-14-39(b)(3), IC 36-7-14-39(b)(4), property tax proceeds paid
8006+2 into the allocation fund may be used by the authority only to do one (1)
8007+3 or more of the following:
8008+4 (1) Pay the principal of and interest and redemption premium on
8009+5 any obligations incurred by the special taxing district or any other
8010+6 entity for the purpose of financing or refinancing military base
8011+7 reuse activities in or serving or benefiting that allocation area.
8012+8 (2) Establish, augment, or restore the debt service reserve for
8013+9 obligations payable solely or in part from allocated tax proceeds
8014+10 in that allocation area or from other revenues of the authority
8015+11 (including lease rental revenues).
8016+12 (3) Make payments on leases payable solely or in part from
8017+13 allocated tax proceeds in that allocation area.
8018+14 (4) Reimburse any other governmental body for expenditures
8019+15 made by it that benefits or provides for local public improvements
8020+16 or structures in or serving or benefiting that allocation area.
8021+17 (5) Pay expenses incurred by the authority that benefit or provide
8022+18 for local public improvements or structures that are in the
8023+19 allocation area or serving or benefiting the allocation area.
8024+20 (6) Reimburse public and private entities for expenses incurred in
8025+21 training employees of industrial facilities that are located:
8026+22 (A) in the allocation area; and
8027+23 (B) on a parcel of real property that has been classified as
8028+24 industrial property under the rules of the department of local
8029+25 government finance.
8030+26 However, the total amount of money spent for this purpose in any
8031+27 year may not exceed the total amount of money in the allocation
8032+28 fund that is attributable to property taxes paid by the industrial
8033+29 facilities described in clause (B). The reimbursements under this
8034+30 subdivision must be made within three (3) years after the date on
8035+31 which the investments that are the basis for the increment
8036+32 financing are made.
8037+33 (e) In addition to other methods of raising money for property
8038+34 acquisition, redevelopment, or economic development activities in or
8039+35 directly serving or benefiting an economic development area created
8040+36 by an authority under this section, and in anticipation of the taxes
8041+37 allocated under subsection (d), other revenues of the authority, or any
8042+38 combination of these sources, the authority may, by resolution, issue
8043+39 the bonds of the special taxing district in the name of the unit. Bonds
8044+40 issued under this section may be issued in any amount without
8045+41 limitation. The following apply if such a resolution is adopted:
8046+42 (1) The authority shall certify a copy of the resolution authorizing
8047+ES 419—LS 6606/DI 120 185
8048+1 the bonds to the municipal or county fiscal officer, who shall then
8049+2 prepare the bonds. The seal of the unit must be impressed on the
8050+3 bonds, or a facsimile of the seal must be printed on the bonds.
8051+4 (2) The bonds must be executed by the appropriate officer of the
8052+5 unit and attested by the unit's fiscal officer.
8053+6 (3) The bonds are exempt from taxation for all purposes.
8054+7 (4) Bonds issued under this section may be sold at public sale in
8055+8 accordance with IC 5-1-11 or at a negotiated sale.
8056+9 (5) The bonds are not a corporate obligation of the unit but are an
8057+10 indebtedness of the taxing district. The bonds and interest are
8058+11 payable, as set forth in the bond resolution of the authority:
8059+12 (A) from the tax proceeds allocated under subsection (d);
8060+13 (B) from other revenues available to the authority; or
8061+14 (C) from a combination of the methods stated in clauses (A)
8062+15 and (B).
8063+16 (6) Proceeds from the sale of bonds may be used to pay the cost
8064+17 of interest on the bonds for a period not to exceed five (5) years
8065+18 from the date of issuance.
8066+19 (7) Laws relating to the filing of petitions requesting the issuance
8067+20 of bonds and the right of taxpayers and voters to remonstrate
8068+21 against the issuance of bonds do not apply to bonds issued under
8069+22 this section.
8070+23 (8) If a debt service reserve is created from the proceeds of bonds,
8071+24 the debt service reserve may be used to pay principal and interest
8072+25 on the bonds as provided in the bond resolution.
8073+26 (9) If bonds are issued under this chapter that are payable solely
8074+27 or in part from revenues to the authority from a project or
8075+28 projects, the authority may adopt a resolution or trust indenture or
8076+29 enter into covenants as is customary in the issuance of revenue
8077+30 bonds. The resolution or trust indenture may pledge or assign the
8078+31 revenues from the project or projects. The resolution or trust
8079+32 indenture may also contain any provisions for protecting and
8080+33 enforcing the rights and remedies of the bond owners as may be
8081+34 reasonable and proper and not in violation of law, including
8082+35 covenants setting forth the duties of the authority. The authority
8083+36 may establish fees and charges for the use of any project and
8084+37 covenant with the owners of any bonds to set those fees and
8085+38 charges at a rate sufficient to protect the interest of the owners of
8086+39 the bonds. Any revenue bonds issued by the authority that are
8087+40 payable solely from revenues of the authority shall contain a
8088+41 statement to that effect in the form of bond.
8089+42 (f) Notwithstanding section 8(a) of this chapter, an ordinance
8090+ES 419—LS 6606/DI 120 186
8091+1 adopted under section 11 of this chapter may provide, or be amended
8092+2 to provide, that the board of directors of the authority shall be
8093+3 composed of not fewer than three (3) nor more than eleven (11)
8094+4 members, who must be residents of or be employed at a place of
8095+5 employment located within the unit. The members shall be appointed
8096+6 by the executive of the unit.
8097+7 (g) The acquisition of real and personal property by an authority
8098+8 under this section is not subject to the provisions of IC 5-22,
8099+9 IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
8100+10 purchase of property by public bodies or their agencies.
8101+11 (h) An authority may negotiate for the sale, lease, or other
8102+12 disposition of real and personal property without complying with the
8103+13 provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
8104+14 statute governing the disposition of public property.
8105+15 (i) Notwithstanding any other law, utility services provided within
8106+16 an economic development area established under this section are
8107+17 subject to regulation by the appropriate regulatory agencies unless the
8108+18 utility service is provided by a utility that provides utility service solely
8109+19 within the geographic boundaries of an existing or a closed military
8110+20 installation, in which case the utility service is not subject to regulation
8111+21 for purposes of rate making, regulation, service delivery, or issuance of
8112+22 bonds or other forms of indebtedness. However, this exemption from
8113+23 regulation does not apply to utility service if the service is generated,
8114+24 treated, or produced outside the boundaries of the existing or closed
8115+25 military installation.
8116+26 SECTION 104. IC 36-7.5-4.5-18, AS ADDED BY P.L.248-2017,
8117+27 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8118+28 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 18. If a district is
8119+29 established, the following apply to the administration and use of
8120+30 incremental property tax revenue by the development authority, or a
8121+31 redevelopment commission in the case of a district located in a cash
8122+32 participant county, in the district:
8123+33 (1) The department of local government finance shall adjust the
8124+34 base assessed value to neutralize any effect of a reassessment and
8125+35 the annual adjustment of the real property in the district in the
8126+36 same manner as provided in IC 36-7-14-39(h).
8127+37 (2) Proceeds of the property taxes approved by the voters in a
8128+38 referendum or local public question shall be allocated to and,
8129+39 when collected, paid into the funds of the taxing unit for which
8130+40 the referendum or local public question was conducted in the
8131+41 same manner as provided in IC 36-7-14-39(b)(2).
8132+42 IC 36-7-14-39(b)(3).
8133+ES 419—LS 6606/DI 120 187
8134+1 (3) Incremental property tax revenue may be used only for one (1)
8135+2 or more of the following purposes for a district:
8136+3 (A) To finance the improvement, construction, reconstruction,
8137+4 renovation, and acquisition of real and personal property
8138+5 improvements within a district.
8139+6 (B) To pay the principal of and interest on any obligations that
8140+7 are incurred for the purpose of financing or refinancing
8141+8 development in the district, including local public
8142+9 improvements that are physically located in or physically
8143+10 connected to the district.
8144+11 (C) To establish, augment, or restore the debt service reserve
8145+12 for bonds payable solely or in part from incremental property
8146+13 tax revenue from the district.
8147+14 (D) To pay premiums on the redemption before maturity of
8148+15 bonds payable solely or in part from incremental property tax
8149+16 revenue from the district.
8150+17 (E) To make payments on leases payable from incremental
8151+18 property tax revenue from the district.
8152+19 (F) To reimburse a municipality in which a district is located
8153+20 for expenditures made by the municipality for local public
8154+21 improvements that are physically located in or physically
8155+22 connected to the district.
8156+23 (G) To reimburse a municipality for rentals paid by the
8157+24 municipality for a building or parking facility that is physically
8158+25 located in or physically connected to the district under any
8159+26 lease entered into under IC 36-1-10.
8160+27 (H) To pay expenses incurred by the development authority for
8161+28 local public improvements that are in the district or serving the
8162+29 district.
8163+30 SECTION 105. IC 36-8-19-6, AS AMENDED BY P.L.95-2022,
8164+31 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8165+32 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 6. (a) To establish or
8166+33 expand a fire protection territory, the legislative bodies of each unit or
8167+34 fire protection district:
8168+35 (1) desiring to establish a fire protection territory; or
8169+36 (2) desiring to expand an existing fire protection territory by:
8170+37 (A) becoming a participating unit in; or
8171+38 (B) approving the addition of a participating unit in;
8172+39 an existing fire protection territory;
8173+40 must adopt an ordinance (in the case of a county or municipality) or a
8174+41 resolution (in the case of a township or a fire protection district).
8175+42 (b) The ordinance or resolution must meet the following
8176+ES 419—LS 6606/DI 120 188
8177+1 requirements:
8178+2 (1) The ordinance or resolution is identical to the ordinances and
8179+3 resolutions adopted by the other units or fire protection districts
8180+4 desiring to establish or expand the proposed territory.
8181+5 (2) Except as otherwise provided in this subdivision, the
8182+6 ordinance or resolution is adopted after January 1 but before April
8183+7 1. However, for an ordinance or resolution adopted in 2023,
8184+8 the ordinance or resolution must be adopted after January 1,
8185+9 2023, and before August 2, 2023.
8186+10 (3) The ordinance or resolution authorizes the unit or fire
8187+11 protection district to become a party to an agreement for the
8188+12 establishment of a fire protection territory or the expansion of an
8189+13 existing fire protection territory.
8190+14 (4) This subdivision does not apply to an ordinance or
8191+15 resolution adopted in 2023. An ordinance or resolution is
8192+16 adopted after the legislative body holds at least three (3) public
8193+17 hearings to receive public comment on the proposed ordinance or
8194+18 resolution as follows:
8195+19 (A) At least one (1) public hearing must be held at least thirty
8196+20 (30) days before the legislative body votes on the adoption of
8197+21 the ordinance or resolution. At the hearing, the legislative
8198+22 body shall make available to the public the information
8199+23 required by subsection (c) concerning the fiscal impact of the
8200+24 proposed fire protection territory.
8201+25 (B) At least two (2) public hearings must be held after the
8202+26 public hearing in clause (A), with the last public hearing held
8203+27 not later than ten (10) days before the legislative body votes on
8204+28 the adoption of the ordinance or resolution.
8205+29 The legislative body must give notice of the hearings under
8206+30 IC 5-3-1.
8207+31 (5) This subdivision applies to an ordinance or resolution
8208+32 adopted in 2023. An ordinance or resolution is adopted after
8209+33 the legislative body holds at least three (3) public hearings to
8210+34 receive public comment on the proposed ordinance or
8211+35 resolution as follows:
8212+36 (A) At least one (1) public hearing must be held at least
8213+37 twenty-five (25) days before the legislative body votes on
8214+38 the adoption of the ordinance or resolution. At the hearing,
8215+39 the legislative body shall make available to the public the
8216+40 information required by subsection (c) concerning the
8217+41 fiscal impact of the proposed fire protection territory.
8218+42 (B) At least two (2) public hearings must be held after the
8219+ES 419—LS 6606/DI 120 189
8220+1 public hearing in clause (A), with the last public hearing
8221+2 held not later than five (5) days before the legislative body
8222+3 votes on the adoption of the ordinance or resolution.
8223+4 The legislative body must give notice of the hearings under
8224+5 IC 5-3-1.
8225+6 (c) The legislative body must make available to the public the
8226+7 following information:
8227+8 (1) The property tax levy, property tax rate, and budget to be
8228+9 imposed or adopted during the first year of the proposed territory
8229+10 for each of the units or fire protection districts that would
8230+11 participate in the proposed territory. If a property tax rate is to be
8231+12 implemented over a number of years as provided in section 7(c)
8232+13 of this chapter, the information under this subdivision must
8233+14 include the amount of the intended property tax rate after having
8234+15 been fully implemented.
8235+16 (2) The estimated effect of the proposed reorganization in the
8236+17 following years on taxpayers in each of the units or fire protection
8237+18 districts that would participate in the proposed territory, including
8238+19 the expected property tax rates, property tax levies, expenditure
8239+20 levels, service levels, and annual debt service payments.
8240+21 (3) The estimated effect of the proposed reorganization on other
8241+22 units in the county in the following years and on local option
8242+23 income taxes, excise taxes, and property tax circuit breaker
8243+24 credits.
8244+25 (4) A description of the planned services and staffing levels to be
8245+26 provided in the proposed territory.
8246+27 (5) A description of any capital improvements to be provided in
8247+28 the proposed territory.
8248+29 (d) The notice required for a hearing under subsection (b)(4) and
8249+30 (b)(5) shall include all of the following:
8250+31 (1) A list of the provider unit and all participating units in the
8251+32 proposed territory.
8252+33 (2) The date, time, and location of the hearing.
8253+34 (3) The location where the public can inspect the proposed
8254+35 ordinance or resolution.
8255+36 (4) A statement as to whether the proposed ordinance or
8256+37 resolution requires uniform tax rates or different tax rates within
8257+38 the territory.
8258+39 (5) The name and telephone number of a representative of the unit
8259+40 or fire protection district who may be contacted for further
8260+41 information.
8261+42 (6) The proposed levies and tax rates for each participating unit,
8262+ES 419—LS 6606/DI 120 190
8263+1 and whether a tax rate will be implemented over a number of
8264+2 years under section 7(c) of this chapter.
8265+3 (e) The ordinance or resolution adopted under this section shall
8266+4 include at least the following:
8267+5 (1) The boundaries of the proposed territory.
8268+6 (2) The identity of the provider unit and all other participating
8269+7 units desiring to be included within the territory.
8270+8 (3) An agreement to impose:
8271+9 (A) a uniform tax rate upon all of the taxable property within
8272+10 the territory for fire protection services; or
8273+11 (B) different tax rates for fire protection services for the units
8274+12 or fire protection districts desiring to be included within the
8275+13 territory, so long as a tax rate applies uniformly to all of a
8276+14 unit's or fire protection district's taxable property within the
8277+15 territory.
8278+16 (4) An agreement as to how the property that is held by the
8279+17 territory will be disposed of if:
8280+18 (A) a participating unit withdraws from the territory; or
8281+19 (B) the territory is dissolved.
8282+20 (5) The contents of the agreement to establish the territory.
8283+21 (f) An ordinance or a resolution adopted under this section takes
8284+22 effect July 1 of the year the ordinance or resolution is adopted.
8285+23 SECTION 106. [EFFECTIVE UPON PASSAGE] (a) IC 6-3-1-3.5,
8286+24 IC 6-3-2-2.5, IC 6-3-2-2.6, IC 6-3-2-21.7, and IC 6-5.5-2-1, all as
8287+25 amended by this act, apply to taxable years beginning after
8288+26 December 31, 2022.
8289+27 (b) This SECTION expires January 1, 2025.
8290+28 SECTION 107. [EFFECTIVE UPON PASSAGE] (a) This
8291+29 SECTION applies to IC 6-8.1-10-9.5, as added by this act.
8292+30 (b) No purchaser in bulk shall be considered to be a successor
8293+31 in liability pursuant to IC 6-8.1-10-9.5, as added by this act, for
8294+32 transactions that take place prior to February 14, 2024.
8295+33 (c) IC 6-8.1-10-9.5(i) shall be considered a restatement of the
8296+34 law.
8297+35 (d) This SECTION expires January 1, 2025.
8298+36 SECTION 108. P.L.1-2023, SECTION 21, IS AMENDED TO
8299+37 READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2022
8300+38 (RETROACTIVE)]: SECTION 21. (a) This SECTION applies to the
8301+39 election and imposition of the pass through entity tax pursuant to
8302+40 IC 6-3-2.1, as added by this act, for tax years ending before January 1,
8303+41 2023.
8304+42 (b) For the applicable period, the tax shall be paid and filed in
8305+ES 419—LS 6606/DI 120 191
8306+1 conjunction with and consistent with the filing of a composite tax
8307+2 return pursuant to IC 6-3-4-12 or IC 6-3-4-13.
8308+3 (c) Notwithstanding any other provision, no estimated payments
8309+4 shall be due for the applicable period other than any such payment that
8310+5 is currently required for purposes of withholding tax pursuant to
8311+6 IC 6-3-4-12 or IC 6-3-4-13.
8312+7 (d) All provisions of IC 6-3-2.1, as added by this act, shall apply to
8313+8 the applicable period unless any such provision is inconsistent with the
8314+9 provisions and procedures applicable to the filing of composite returns
8315+10 pursuant to IC 6-3-4-12 or IC 6-3-4-13.
8316+11 (e) A pass through entity that elects to pay the tax imposed by
8317+12 IC 6-3-2.1, as added by this act, for the applicable period will not be
8318+13 subject to an underpayment penalty pursuant to IC 6-8.1-10-2.1(a)(2)
8319+14 for failure to pay any tax due pursuant to IC 6-3-2.1, as added by this
8320+15 act, for any such tax not remitted as of the due date of the return,
8321+16 including extensions. This provision does not waive any interest due on
8322+17 such amounts pursuant to IC 6-8.1-10-1.
8323+18 (f) (e) Notwithstanding any provision to the contrary in
8324+19 IC 6-8.1-10-1 or IC 6-8.1-10-2.1, if the tax under IC 6-3-2.1, as added
8325+20 by this act, is due before August 31, 2024, interest and penalty for late
8326+21 payment of the tax shall be waived for the period from the due date to
8327+22 August 30, 2024. Interest and penalty shall be due on any amounts
8328+23 unpaid after August 30, 2024, in the manner otherwise provided by
8329+24 law.
8330+25 SECTION 109. [EFFECTIVE JANUARY 1, 2024] (a)
8331+26 IC 6-3-2-27.5, IC 6-3-2-28, and IC 6-3.1-38.3, as added by this act,
8332+27 apply to taxable years beginning after December 31, 2023.
8333+28 (b) This SECTION expires July 1, 2026.
8334+29 SECTION 110. [EFFECTIVE UPON PASSAGE] (a) IC 6-3-2-29,
8335+30 as added by this act, applies to taxable years beginning after
8336+31 December 31, 2021.
8337+32 (b) This SECTION expires July 1, 2025.
8338+33 SECTION 111. [EFFECTIVE JULY 1, 2023] (a) Notwithstanding
8339+34 the effective date of July 1, 2023, for IC 6-6-2.5-32.7, as added by
8340+35 this act, a person that would have qualified for a refund of special
8341+36 fuel taxes under IC 6-6-2.5-32.7, as added by this act, is entitled to
8342+37 a refund for the period beginning July 1, 2022, through June 30,
8343+38 2023. The person must file a refund claim for that period in a single
8344+39 claim.
8345+40 (b) A claim for a refund under this SECTION must be filed
8346+41 before September 30, 2023. A refund claim must be in the form
8347+42 prescribed by the department of state revenue and include any
8348+ES 419—LS 6606/DI 120 192
8349+1 information reasonably requested by the department.
8350+2 (c) The department of state revenue may make any
8351+3 investigations it considers necessary before making a refund to a
8352+4 person.
8353+5 (d) This SECTION expires June 30, 2024.
8354+6 SECTION 112. [EFFECTIVE JULY 1, 2023] (a) IC 6-2.5-5-57.5,
8355+7 as added by this act, applies only to retail transactions occurring
8356+8 after June 30, 2023.
8357+9 (b) Except as provided in subsection (c), a retail transaction is
8358+10 considered to have occurred after June 30, 2023, if the property
8359+11 whose transfer constitutes selling at retail is delivered to the
8360+12 purchaser or to the place of delivery designated by the purchaser
8361+13 after June 30, 2023.
8362+14 (c) Notwithstanding the delivery of the property constituting
8363+15 selling at retail after June 30, 2023, a transaction is considered to
8364+16 have occurred before July 1, 2023, to the extent that:
8365+17 (1) the agreement of the parties to the transaction is entered
8366+18 into before July 1, 2023; and
8367+19 (2) payment for the property furnished in the transaction is
8368+20 made before July 1, 2023.
8369+21 (d) This SECTION expires January 1, 2026.
8370+22 SECTION 113. An emergency is declared for this act.
8371+ES 419—LS 6606/DI 120 193
8372+COMMITTEE REPORT
8373+Madam President: The Senate Committee on Tax and Fiscal Policy,
8374+to which was referred Senate Bill No. 419, has had the same under
8375+consideration and begs leave to report the same back to the Senate with
8376+the recommendation that said bill be AMENDED as follows:
8377+Page 18, between lines 8 and 9, begin a new line block indented and
8378+insert:
8379+"(20) For taxable years beginning after December 31, 2021,
8380+subtract the amount of any:
8381+(A) federal, state, or local grant received by the taxpayer;
8382+and
8383+(B) discharged federal, state, or local indebtedness
8384+incurred by the taxpayer;
8385+for purposes of providing or expanding access to broadband
8386+service in this state.".
8387+Page 18, line 9, strike "(20)" and insert "(21)".
8388+Page 30, line 18, strike "(b)(20)," and insert "(b)(21),".
8389+Page 44, line 7, delete "IC 6-3-1-3.5(b)(20);" and insert "IC
8390+6-3-1-3.5(b)(21);".
8391+Page 63, delete lines 38 through 42, begin a new paragraph and
8392+insert:
8393+"SECTION 19. IC 6-8.1-10-9.5 IS ADDED TO THE INDIANA
8394+CODE AS A NEW SECTION TO READ AS FOLLOWS
8395+[EFFECTIVE JULY 1, 2023]: Sec. 9.5. (a) As used in this section, the
8396+following terms have the following meanings:
8397+(1) "Successor in liability" means a person that directly or
8398+indirectly purchases, acquires, is gifted, or succeeds to
8399+ownership of more than one-half (1/2) of all tangible personal
8400+property of a business, by value, including inventory, at all
8401+locations combined, as measured by the value of the property
8402+at the time of the transfer. "Successor in liability" does not
8403+include a personal representative or beneficiary of an estate,
8404+a trustee in bankruptcy, a debtor in possession, a receiver, a
8405+secured party, a mortgagee, an assignee of rents, or any other
8406+lienholder. A person shall only be considered a successor in
8407+liability to the extent that:
8408+(A) a lien or liens exist on tangible personal property
8409+transferred to the person;
8410+(B) all tax due by the transferring business to the extent
8411+that notice was not provided to the department as required
8412+by subsection (b); or
8413+(C) any tax due was included in the summary mailed to the
8414+ES 419—LS 6606/DI 120 194
8415+successor in liability by the department pursuant to
8416+subsection (c).
8417+(2) "Purchase price" means the consideration paid or to be
8418+paid by the successor in liability to the transferring business
8419+for the transfer of tangible personal property. "Purchase
8420+price" also includes debts assumed or forgiven by the
8421+successor in liability, or real or personal property conveyed or
8422+to be conveyed by the successor in liability to the transferring
8423+business.
8424+(3) "Arm's-length transaction" means a transfer for adequate
8425+consideration between independent parties both acting in
8426+their own best interests. If the parties are related to each
8427+other, a rebuttable presumption arises that the transaction is
8428+not at arm's length.
8429+(4) "Transfer" means every mode, direct or indirect, absolute
8430+or conditional, voluntary or involuntary, of disposing of or
8431+parting with a business or an interest in a business, or a stock
8432+of goods, whether by gift or for consideration. "Transfer"
8433+includes a change in the type of business entity or the name of
8434+the business, where one (1) business is discontinued and a new
8435+business is started. "Transfer" also includes the acquisition by
8436+a new corporation of the assets of a prior business in exchange
8437+for the stock of the new corporation. "Transfer" does not
8438+include an assignment for the benefit of creditors, foreclosure
8439+or enforcement of a mortgage, assignment of rents, security
8440+interest or lien, sale or disposition in a bankruptcy
8441+proceeding, or sale or disposition by a receiver.
8442+(5) "Transfer in bulk" means a transfer, other than in the
8443+ordinary course of the transferor's trade or business, of more
8444+than one-half (1/2) of all the tangible personal property of a
8445+business, by value, including inventory, at all locations
8446+combined, as measured by the value of the property at the
8447+time of the transfer.
8448+(6) "Tax" means the gross retail tax imposed by IC 6-2.5-2-1,
8449+the use tax imposed by IC 6-2.5-3-2, and any county
8450+innkeepers tax or food and beverage tax imposed by IC 6-9.
8451+(7) "Good cause" means the inability to comply with the
8452+statutory requirements of this section due to force majeure,
8453+fraud, failure of delivery by a carrier, or similar
8454+circumstances beyond the control of the successor. Lack of
8455+knowledge by the successor in liability of the requirements of
8456+this section shall not be considered good cause. Failure of a
8457+ES 419—LS 6606/DI 120 195
8458+transferee or third party to provide the notice required by
8459+subsection (b) pursuant to a contractual obligation or
8460+informational understanding shall not be considered to be
8461+good cause.
8462+(b) Whenever a business engages in a transfer in bulk, at least
8463+forty-five (45) days before taking possession of the assets or paying
8464+the purchase price, the potential successor in liability or the
8465+transferring business shall notify the department of the transfer
8466+and the terms and conditions related to the transfer on a form
8467+prescribed by the department. The notice must include the tax
8468+identification number of the transferring business and the potential
8469+successor in liability.
8470+(c) The following apply:
8471+(1) If the notice is not provided to the department as required
8472+in subsection (b), the potential successor in liability becomes
8473+the successor in liability and becomes liable for any unpaid
8474+taxes, interest, and penalties due from the transferring
8475+business to the extent of the purchase price.
8476+(2) If the notice is provided as required in subsection (b) and,
8477+within twenty (20) days after receipt of the notice, the
8478+department places a summary in the United States mail
8479+addressed to the successor in liability specifying that tax
8480+liabilities exist in addition to those subject to lien or there are
8481+tax returns due but not filed, the successor in liability is liable
8482+for all taxes, interest, and penalties as stated in the
8483+department's summary to the extent of the purchase price if
8484+the successor in liability pays the purchase price or takes
8485+possession of the assets without withholding and remitting the
8486+liability to the department. The successor in liability is liable
8487+whether the purchase price is paid or the assets are
8488+transferred prior to or after notification from the department.
8489+(3) If the department does not find any tax is due from the
8490+transferring business or that the transferring business has
8491+failed to file any returns that are due, the department must
8492+place a tax clearance letter in the United States mail
8493+addressed to the potential successor in liability within twenty
8494+(20) days after receipt of the notice required by subsection (b)
8495+specifying that no tax liabilities exist and that the transferee
8496+is not a successor in liability. The department shall issue the
8497+tax clearance letter even if the department determines that the
8498+transfer at issue does not constitute a transfer in bulk
8499+pursuant to subsection (a).
8500+ES 419—LS 6606/DI 120 196
8501+(d) If, based upon the information available, the department
8502+determines that a transfer in bulk was not at arm's length or was
8503+a gift, the successor's liability under this section equals the value of
8504+the tangible personal property transferred. Upon such a
8505+determination, the department may require that the successor in
8506+liability provide a third party valuation of the tangible personal
8507+property transferred.
8508+(e) In the case of a gift resulting in successor liability under this
8509+section, the return of the gifted property by the donee to the donor
8510+releases the donee's successor liability.
8511+(f) A potential successor in liability that complies with the
8512+requirements of subsections (b) and (c) is not liable for any
8513+assessments of taxes of the transferring business made after the
8514+department provides a summary to the potential successor in
8515+liability under subsection (c), except for taxes assessed on returns
8516+filed to comply with the summary. If the department fails to place
8517+the required summary in the United States mail within the twenty
8518+(20) day period, the potential successor in liability is not liable for
8519+any taxes of the transferring business, except with regard to
8520+transfers subject to subsection (d), if the purchase price is paid and
8521+the potential successor in liability takes possession of the assets
8522+within sixty (60) days of the mailing date the notice required
8523+pursuant to subsection (b). If the purchase price is not paid or the
8524+potential successor in liability does not take possession of the assets
8525+within sixty (60) days of the mailing date of the notice required
8526+pursuant to subsection (b), the potential successor in liability or the
8527+transferring business must submit a new notice pursuant to
8528+subsection (b).
8529+(g) If the required notice under subsection (b) is not filed or any
8530+tax liability included in a summary mailed by the department
8531+pursuant to subsection (c)(2) remains due after the purchase price
8532+is paid or the successor in liability takes possession of the assets,
8533+the department must issue a notice of proposed assessment to the
8534+successor in liability for any such tax due.
8535+(h) A successor in liability may protest the underlying tax unless
8536+the transferring business has already exhausted its protest rights
8537+with regard to the underlying tax. A successor in liability may also
8538+protest whether they qualify as a successor in liability with regard
8539+to the tax. In addition, the successor in liability may protest by
8540+submitting evidence showing good cause for not submitting the
8541+required notice or completing the purchase before receiving a
8542+clearance letter from the department. In the event that the
8543+ES 419—LS 6606/DI 120 197
8544+transferring business has protested any taxes identified in the
8545+department's notice mailed pursuant to subsection (c)(2), the
8546+potential successor in liability shall not be considered a successor
8547+in liability with respect to such taxes if the potential successor in
8548+liability places an amount in escrow sufficient to satisfy such taxes
8549+pending resolution of the transferring business's administrative
8550+and legal process protesting such taxes.
8551+(i) A transfer in bulk shall not constitute a retail transaction
8552+except for any inventory, motor vehicles, watercraft, aircraft, or
8553+rental property transferred.
8554+(j) A transferor in bulk and any responsible officer thereof shall
8555+not be relieved of liability for any tax, interest, or penalties when
8556+a successor in interest also becomes liable for the tax, interest, and
8557+penalties. No owner, shareholder, director, officer, or employee of
8558+a successor in liability shall be considered to be a responsible
8559+officer relative to any tax, interest or penalties owed by the
8560+purchaser as a successor.
8561+(k) The department has discretion in assessing and collecting the
8562+tax due from any liable party, but the department cannot collect
8563+more than the total tax, interest, and penalties imposed. The ability
8564+of the department to impose collections fees on the liable parties as
8565+otherwise allowed by this article shall not be impacted by this
8566+section.".
8567+Delete page 64.
8568+Page 65, delete lines 1 through 35.
8569+Page 67, between lines 30 and 31, begin a new paragraph and insert:
8570+"SECTION 23. [EFFECTIVE UPON PASSAGE] (a) This
8571+SECTION applies to IC 6-8.1-19-9.5, as added by this act.
8572+(b) No purchaser in bulk shall be considered to be a successor
8573+in liability pursuant to IC 6-8.1-19-9.5, as added by this act, for
8574+transactions that take place prior to August 14, 2023.
8575+(c) IC 6-8.1-10-9.5(i) shall be considered a restatement of the
8576+law.
8577+(d) This SECTION expires January 1, 2025.".
8578+and when so amended that said bill do pass.
8579+(Reference is to SB 419 as introduced.)
8580+HOLDMAN, Chairperson
8581+Committee Vote: Yeas 12, Nays 0.
8582+ES 419—LS 6606/DI 120 198
8583+COMMITTEE REPORT
8584+Mr. Speaker: Your Committee on Ways and Means, to which was
8585+referred Senate Bill 419, has had the same under consideration and
8586+begs leave to report the same back to the House with the
8587+recommendation that said bill be amended as follows:
8588+Replace the effective date in SECTION 19 with "[EFFECTIVE
8589+JANUARY 1, 2024]".
8590+Page 1, between the enacting clause and line 1, begin a new
8591+paragraph and insert:
8592+"SECTION 1. IC 4-10-22-4.6 IS ADDED TO THE INDIANA
8593+CODE AS A NEW SECTION TO READ AS FOLLOWS
8594+[EFFECTIVE JULY 1, 2023]: Sec. 4.6. (a) This section applies only
8595+to a taxpayer who:
8596+(1) is required to file an Indiana resident individual adjusted
8597+gross income tax return:
8598+(A) for the 2020 taxable year under IC 6-3-4-1; or
8599+(B) to claim the credit allowable under IC 6-3-3-9 for the
8600+2020 taxable year;
8601+(2) was not claimed as a dependent of any other taxpayer for
8602+the 2020 taxable year;
8603+(3) was not claimed as a dependent of any other taxpayer for
8604+the 2023 taxable year;
8605+(4) is not eligible for an automatic taxpayer refund under
8606+section 4 of this chapter; and
8607+(5) does not claim the additional taxpayer refund under
8608+section 4.5 of this chapter.
8609+(b) A taxpayer is eligible for a refundable tax credit in the
8610+amount determined under section 4 of this chapter for the
8611+determination made during calendar year 2021 if the taxpayer:
8612+(1) files, not later than January 1, 2024, an Indiana resident
8613+individual adjusted gross income tax return for the 2020
8614+taxable year; and
8615+(2) claims the credit on an Indiana adjusted gross income tax
8616+return for the 2023 taxable year that is filed not later than
8617+January 1, 2025.
8618+(c) If an individual and the individual's spouse file a joint
8619+Indiana resident individual adjusted gross income tax return for
8620+the 2023 taxable year, and both the individual and the individual's
8621+spouse are eligible for the credit under this section, the credit
8622+under this section shall be provided to both the individual and the
8623+individual's spouse.
8624+(d) The department of state revenue may prescribe any tax
8625+ES 419—LS 6606/DI 120 199
8626+forms necessary for a taxpayer to claim a credit under this section.
8627+SECTION 2. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
8628+SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8629+UPON PASSAGE]: Sec. 8. (a) During the annual meeting required by
8630+section 6 of this chapter, the superintendent of a school corporation
8631+shall submit a written report to the local board of finance for the school
8632+corporation. The report must assess the financial condition of the
8633+school corporation using the fiscal and qualitative indicators
8634+determined under IC 20-19-7-4 by the fiscal and qualitative indicators
8635+committee. distressed unit appeal board established by
8636+IC 6-1.1-20.3-4.
8637+(b) The local board of finance shall review the report made under
8638+subsection (a).
8639+(c) The superintendent of a school corporation may delegate the
8640+duty to submit a report under subsection (a) to an employee or
8641+representative of the school corporation.
8642+SECTION 3. IC 5-13-9-2, AS AMENDED BY P.L.104-2022,
8643+SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8644+JULY 1, 2023]: Sec. 2. (a) Each officer designated in section 1 of this
8645+chapter may invest or reinvest any funds that are held by the officer and
8646+available for investment in any of the following:
8647+(1) Securities backed by the full faith and credit of the United
8648+States Treasury or fully guaranteed by the United States and
8649+issued by any of the following:
8650+(A) The United States Treasury.
8651+(B) A federal agency.
8652+(C) A federal instrumentality.
8653+(D) A federal government sponsored enterprise.
8654+(2) Securities fully guaranteed and issued by any of the following:
8655+(A) A federal agency.
8656+(B) A federal instrumentality.
8657+(C) A federal government sponsored enterprise.
8658+(3) Municipal securities issued by an Indiana local governmental
8659+entity, a quasi-governmental entity related to the state, or a unit of
8660+government, municipal corporation, or special taxing district in
8661+Indiana, or a nonprofit building corporation created by a
8662+municipal corporation, if the issuer has not defaulted on any of
8663+the issuer's obligations within the twenty (20) years preceding the
8664+date of the purchase. A security purchased by the treasurer of
8665+state under this subdivision must have a stated final maturity of
8666+not more than ten (10) years after the date of purchase. However,
8667+a security purchased by the treasurer of state from the
8668+ES 419—LS 6606/DI 120 200
8669+Indiana bond bank under this subdivision must have a stated
8670+final maturity of not more than twenty-five (25) years after
8671+the date of purchase.
8672+(b) If an investment under subsection (a) is made at a cost in excess
8673+of the par value of the securities purchased, any premium paid for the
8674+securities shall be deducted from the first interest received and returned
8675+to the fund from which the investment was purchased, and only the net
8676+amount is considered interest income.
8677+(c) The officer making the investment may sell any securities
8678+acquired and may do anything necessary to protect the interests of the
8679+funds invested, including the exercise of exchange privileges which
8680+may be granted with respect to maturing securities in cases where the
8681+new securities offered in exchange meet the requirements for initial
8682+investment.
8683+(d) The investing officers of the political subdivisions are the legal
8684+custodians of securities under this chapter. They shall accept
8685+safekeeping receipts or other reporting for securities from:
8686+(1) a duly designated depository as prescribed in this article; or
8687+(2) a financial institution located either in or out of Indiana having
8688+custody of securities with a combined capital and surplus of at
8689+least ten million dollars ($10,000,000) according to the last
8690+statement of condition filed by the financial institution with its
8691+governmental supervisory body.
8692+(e) The state board of accounts may rely on safekeeping receipts or
8693+other reporting from any depository or financial institution.
8694+(f) In addition to any other investments allowed under this chapter,
8695+an officer of a conservancy district located in a city having a population
8696+of more than five thousand (5,000) and less than five thousand one
8697+hundred thirty (5,130) may also invest in:
8698+(1) municipal securities; and
8699+(2) equity securities;
8700+having a stated final maturity of any number of years or having no
8701+stated final maturity. The total investments outstanding under this
8702+subsection may not exceed twenty-five percent (25%) of the total
8703+portfolio of funds invested by the officer of a conservancy district.
8704+However, an investment that complies with this subsection when the
8705+investment is made remains legal even if a subsequent decrease in the
8706+total portfolio invested by the officer of a conservancy district causes
8707+the percentage of investments outstanding under this subsection to
8708+exceed twenty-five percent (25%).
8709+(g) In addition to any other investments allowed under this chapter,
8710+the clerk-treasurer of a town with a population of more than ten
8711+ES 419—LS 6606/DI 120 201
8712+thousand (10,000) and less than twenty thousand (20,000) located in a
8713+county having a population of more than one hundred seventy-four
8714+thousand (174,000) and less than one hundred eighty thousand
8715+(180,000) may also invest money in a host community agreement
8716+future fund established by ordinance of the town in:
8717+(1) municipal securities; and
8718+(2) equity securities;
8719+having a stated final maturity of any number of years or having no
8720+stated final maturity. The total investments outstanding under this
8721+subsection may not exceed twenty-five percent (25%) of the total
8722+portfolio of funds invested by the clerk-treasurer of a town. However,
8723+an investment that complies with this subsection when the investment
8724+is made remains legal even if a subsequent decrease in the total
8725+portfolio invested by the clerk-treasurer of a town causes the
8726+percentage of investments outstanding under this subsection to exceed
8727+twenty-five percent (25%).
8728+SECTION 4. IC 5-13-10.5-11 IS AMENDED TO READ AS
8729+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 11. The treasurer of
8730+state may invest or reinvest funds that are held by the treasurer and that
8731+are available for investment in obligations issued by any of the
8732+following:
8733+(1) Agencies or instrumentalities of the United States
8734+government.
8735+(2) Federal government sponsored enterprises.
8736+(3) The Indiana bond bank, if the obligations are secured by tax
8737+anticipation time warrants or notes that: either:
8738+(A) tax anticipation time warrants or notes that:
8739+(A) (i) are issued by a political subdivision (as defined in
8740+IC 36-1-2-13); and
8741+(B) (ii) have a maturity date not later than the end of the
8742+calendar year following the year of issuance; or
8743+(B) a security (as defined in IC 5-1.5-1-10) that:
8744+(i) is subject to the statutory intercept and deduction
8745+provisions of IC 5-1.5-8-5, IC 6-1.1-20.6-10,
8746+IC 20-48-1-11, or a similar applicable statutory
8747+provision; and
8748+(ii) has a maturity date that is not later than the date of
8749+the maximum term of the security as permitted under
8750+state law.
8751+SECTION 5. IC 5-13-12-7, AS AMENDED BY P.L.189-2018,
8752+SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8753+JULY 1, 2023]: Sec. 7. (a) The board for depositories shall manage and
8754+ES 419—LS 6606/DI 120 202
8755+operate the insurance fund. All expenses incident to the administration
8756+of the fund shall be paid out of the money accumulated in it subject to
8757+the direction of the board for depositories. Money in the fund may not
8758+be expended, removed, or transferred from the fund for any purpose
8759+other than the following unless the expenditure, the removal, or transfer
8760+is first reviewed by the budget committee:
8761+(1) Paying expenses of administering the fund.
8762+(2) Investing, reinvesting, and exchanging investments as
8763+described in subsection (d).
8764+(3) Paying claims on insured public deposits under IC 5-13-13.
8765+(4) Making payments required by contracts executed under
8766+section 3(a)(6) of this chapter.
8767+(5) Making deposits of uninvested funds under section 3(a)(8) of
8768+this chapter.
8769+(6) Paying allowable expenses as provided in section 4 of this
8770+chapter.
8771+(b) Effective January 1 and July 1 in each year, the board shall
8772+before those dates redetermine the amount of the reserve to be
8773+maintained by the insurance fund. The establishment or any change in
8774+the reserve for losses shall be determined by the board based on
8775+information the board considers, including but not limited to capital
8776+adequacy, liquidity, and asset quality, and a study to be made or
8777+updated by actuaries, economists, or other consultants based on the
8778+history of losses, earnings on the funds, conditions of the depositories,
8779+economic conditions affecting particular depositories or depositories
8780+in general, and any other factors that the board considers relevant in
8781+making its determination. The reserve determined by the board must be
8782+sufficient to ensure the safekeeping and prompt payment of public
8783+funds to the extent they are not covered by insurance of any federal
8784+deposit insurance agency.
8785+(c) At the end of each biennial period during which depositories
8786+have had public funds on deposit under this chapter and paid the
8787+assessments levied by the board, the board shall compute its receipts
8788+from assessments and all other sources and its expenses and losses and
8789+determine the profit derived from the operation of the fund for the
8790+period. Until the amount of the reserve for losses has been
8791+accumulated, all assessments levied for a biennial period shall be
8792+retained by the fund. The amount of the assessments, if any, levied by
8793+the board shall, to the extent the fund exceeds the reserve for losses at
8794+the end of a biennial period commencing July 1 of each odd-numbered
8795+year, be distributed to the depositories that had public funds on deposit
8796+during the biennial period in which the assessments were paid. The
8797+ES 419—LS 6606/DI 120 203
8798+distribution shall be made to the respective depositories in the
8799+proportion that the total assessments paid by each depository during
8800+that period bears to the total assessments then paid by all depositories.
8801+A distribution to which any closed depository would otherwise be
8802+entitled shall be set off against any claim that the insurance fund may
8803+have against the closed depository.
8804+(d) The board may invest, reinvest, and exchange investments of the
8805+insurance fund in excess of the cash working balance in any of the
8806+following:
8807+(1) In bonds, notes, certificates, and other valid obligations of the
8808+United States, either directly or, subject to the limitations in
8809+subsection (e), in the form of securities of or other interests in an
8810+open-end no-load management-type investment company or
8811+investment trust registered under the provisions of the Investment
8812+Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
8813+(2) In bonds, notes, debentures, and other securities issued by a
8814+federal agency or a federal instrumentality and fully guaranteed
8815+by the United States either directly or, subject to the limitations
8816+in subsection (e), in the form of securities of or other interests in
8817+an open-end no-load management-type investment company or
8818+investment trust registered under the provisions of the Investment
8819+Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
8820+(3) In bonds, notes, certificates, and other valid obligations of a
8821+state or of an Indiana political subdivision that are issued under
8822+law, the issuers of which, for five (5) years before the date of the
8823+investment, have promptly paid the principal and interest on their
8824+bonds and other legal obligations.
8825+(4) In bonds or other obligations of the Indiana finance authority
8826+issued under IC 5-1.2.
8827+(5) In investments permitted the state under IC 5-13-10.5.
8828+(6) In guarantees of economic development obligations or credit
8829+enhancement obligations, or both, for the purposes of retaining
8830+and increasing employment in enterprises in Indiana, subject to
8831+the limitations and conditions set out in this subdivision,
8832+subsection (e), and section 8 of this chapter. An individual
8833+guarantee of the board under this subdivision must not exceed
8834+eight million dollars ($8,000,000).
8835+(7) In guarantees of bonds or notes bonds, notes, or other valid
8836+obligations of the Indiana bond bank issued under IC 5-1.5-4-1,
8837+subject to the limitations and conditions set out in subsection (e)
8838+and section 8 of this chapter.
8839+(8) In bonds, notes, or other valid obligations of the Indiana
8840+ES 419—LS 6606/DI 120 204
8841+finance authority that have been issued in conjunction with the
8842+authority's acquisition, development, or improvement of property
8843+or other interests for an economic development project (as
8844+defined in IC 5-1.2-2) that the authority has undertaken for the
8845+purposes of retaining or increasing employment in existing or new
8846+enterprises in Indiana, subject to the limitations in subsection (e).
8847+(9) In notes or other debt obligations of counties, cities, and towns
8848+that have been issued under IC 6-1.1-39 for borrowings from the
8849+industrial development fund under IC 5-28-9 for purposes of
8850+retaining or increasing employment in existing or new enterprises
8851+in Indiana, subject to the limitations in subsection (e).
8852+(10) In bonds or other obligations of the Indiana housing and
8853+community development authority.
8854+(e) The investment authority of the board under subsection (d) is
8855+subject to the following limitations:
8856+(1) For investments under subsection (d)(1) and (d)(2), the
8857+portfolio of an open-end no-load management-type investment
8858+company or investment trust must be limited to:
8859+(A) direct obligations of the United States and obligations of
8860+a federal agency or a federal instrumentality that are fully
8861+guaranteed by the United States; and
8862+(B) repurchase agreements fully collateralized by obligations
8863+described in clause (A), of which the company or trust takes
8864+delivery either directly or through an authorized custodian.
8865+(2) Total outstanding investments in guarantees of economic
8866+development obligations and credit enhancement obligations
8867+under subsection (d)(6) must not exceed the greater of:
8868+(A) ten percent (10%) of the available balance of the insurance
8869+fund; or
8870+(B) fourteen million dollars ($14,000,000).
8871+(3) Total outstanding investments in bonds, notes, or other valid
8872+obligations guarantees of the Indiana bond bank obligations
8873+under subsection (d)(7) must not exceed the greater of:
8874+(A) twenty percent (20%) of the available balance of the
8875+insurance fund; or
8876+(B) twenty-four million dollars ($24,000,000).
8877+(4) Total outstanding investments in bonds, notes, or other
8878+obligations of the Indiana finance authority under subsection
8879+(d)(8) may not exceed the greater of:
8880+(A) fifteen percent (15%) of the available balance of the
8881+insurance fund; or
8882+(B) twenty million dollars ($20,000,000).
8883+ES 419—LS 6606/DI 120 205
8884+However, after June 30, 1988, the board may not make any
8885+additional investment in bonds, notes, or other obligations of the
8886+Indiana finance authority issued under IC 4-4-11 (before its
8887+repeal), and the board may invest an amount equal to the
8888+remainder, if any, of:
8889+(i) fifteen percent (15%) of the available balance of the
8890+insurance fund; minus
8891+(ii) the board's total outstanding investments in bonds, notes,
8892+or other obligations of the Indiana finance authority issued
8893+under IC 4-4-11 (before its repeal);
8894+in guarantees of economic development obligations or credit
8895+enhancement obligations, or both, as authorized by subsection
8896+(d)(6). In such a case, the outstanding investments, as authorized
8897+by subsection (d)(6) and (d)(8), may not exceed in total the
8898+greater of twenty-five percent (25%) of the available balance of
8899+the insurance fund or thirty-four million dollars ($34,000,000).
8900+(5) Total outstanding investments in notes or other debt
8901+obligations of counties, cities, and towns under subsection (d)(9)
8902+may not exceed the greater of:
8903+(A) ten percent (10%) of the available balance of the insurance
8904+fund; or
8905+(B) twelve million dollars ($12,000,000).
8906+(f) For purposes of subsection (e), the available balance of the
8907+insurance fund does not include the outstanding principal amount of
8908+any fund investment in a corporate note or obligation or the part of the
8909+fund that has been established as a reserve for losses.
8910+(g) All interest and other income earned on investments of the
8911+insurance fund and all amounts collected by the board accrue to the
8912+fund.
8913+(h) Members of the board and any officers or employees of the
8914+board are not subject to personal liability or accountability by reason
8915+of any investment in any of the obligations listed in subsection (d).
8916+SECTION 6. IC 6-1.1-20.3-5, AS AMENDED BY
8917+P.L.213-2018(ss), SECTION 4, IS AMENDED TO READ AS
8918+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The board may
8919+employ an executive director staff who shall serve at the pleasure of
8920+the board and carry out the administrative responsibilities assigned by
8921+the board. The board may delegate a specific duty, authority, or
8922+responsibility assigned to the board under this chapter to the executive
8923+director. staff.
8924+(b) The department of local government finance shall provide the
8925+board with the staff and assistance that the board reasonably requires.
8926+ES 419—LS 6606/DI 120 206
8927+(c) The department of local government finance shall may provide
8928+from the department's budget funding to support the board's duties
8929+under this chapter.
8930+(d) The board may contract with accountants, financial experts, and
8931+other advisors and consultants as necessary to carry out the board's
8932+duties under this chapter.
8933+(e) The board may adopt rules to implement the board's duties,
8934+authorities, or responsibilities, including those in this chapter and those
8935+in IC 20-19-7.
8936+SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE JULY
8937+1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
8938+Community Schools.
8939+(b) The general assembly finds that the provisions of this section:
8940+(1) are necessary to address the unique issues faced by the
8941+Muncie Community Schools;
8942+(2) are not precedent for and may not be appropriate for
8943+addressing issues faced by other school corporations; and
8944+(3) are consistent with the board designating the Muncie
8945+Community school corporation as a distressed political
8946+subdivision effective January 1, 2018.
8947+(c) Notwithstanding section 7.5(d) of this chapter, the board shall
8948+determine the compensation of the emergency manager, pay the
8949+emergency manager's compensation, and reimburse the emergency
8950+manager for actual and necessary expenses from funds appropriated to
8951+the board.
8952+(d) In addition to any other actions that the board may take under
8953+this chapter concerning a distressed political subdivision, the board
8954+may recommend, before July 1, 2020, to the state board of finance that
8955+the state board of finance make an interest free loan to the school
8956+corporation from the common school fund. The distressed unit appeal
8957+board shall determine the payment schedule and the commencement
8958+date for the loan. If the board makes a recommendation that such a loan
8959+be made, the state board of finance may, notwithstanding IC 20-49,
8960+make the loan for a term of not more than ten (10) years.
8961+SECTION 8. IC 6-1.1-20.3-15, AS AMENDED BY
8962+P.L.213-2018(ss), SECTION 13, IS AMENDED TO READ AS
8963+FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
8964+executive of a political subdivision or a majority of the members of the
8965+fiscal body of a political subdivision may request technical assistance
8966+from the board in helping prevent the political subdivision from
8967+becoming a distressed political subdivision. The board, by using the
8968+health fiscal and qualitative indicators developed under IC 20-19-7 or
8969+ES 419—LS 6606/DI 120 207
8970+the fiscal health indicators developed under IC 5-14-3.8-8, shall
8971+determine whether to provide assistance to the political subdivision.
8972+(b) The board may do any of the following for a political subdivision
8973+that receives assistance under subsection (a):
8974+(1) Provide information and technical assistance with respect to
8975+the data management, accounting, or other aspects of the fiscal
8976+management of the political subdivision.
8977+(2) Assist the political subdivision in obtaining assistance from
8978+state agencies and other resources.
8979+SECTION 9. IC 6-1.1-21.2-8, AS AMENDED BY P.L.203-2011,
8980+SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8981+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 8. As used in this
8982+chapter, "special fund" means:
8983+(1) the special funds referred to in IC 6-1.1-39-5;
8984+(2) the special funds referred to in IC 8-22-3.5-9(e);
8985+(3) the allocation fund referred to in IC 36-7-14-39(b)(3);
8986+IC 36-7-14-39(b)(4);
8987+(4) the allocation fund referred to in IC 36-7-14.5-12.5(d);
8988+(5) the special fund referred to in IC 36-7-15.1-26(b)(3);
8989+(6) the special fund referred to in IC 36-7-15.1-53(b)(3);
8990+(7) the allocation fund referred to in IC 36-7-30-25(b)(3); or
8991+(8) the allocation fund referred to in IC 36-7-30.5-30(b)(3).
8992+SECTION 10. IC 6-1.1-24-2, AS AMENDED BY P.L.251-2015,
8993+SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8994+UPON PASSAGE]: Sec. 2. (a) This section does not apply to vacant or
8995+abandoned real property that is on the list prepared by the county
8996+auditor under section 1.5 of this chapter.
8997+(b) In addition to the delinquency list required under section 1 of
8998+this chapter, each county auditor shall prepare a notice. The notice shall
8999+contain the following:
9000+(1) A list of tracts or real property eligible for sale under this
9001+chapter.
9002+(2) A statement that the tracts or real property included in the list
9003+will be sold at public auction to the highest bidder, subject to the
9004+right of redemption.
9005+(3) A statement that the tracts or real property will not be sold for
9006+an amount which is less than the sum of:
9007+(A) the delinquent taxes and special assessments on each tract
9008+or item of real property;
9009+(B) the taxes and special assessments on each tract or item of
9010+real property that are due and payable in the year of the sale,
9011+whether or not they are delinquent;
9012+ES 419—LS 6606/DI 120 208
9013+(C) all penalties due on the delinquencies;
9014+(D) an amount prescribed by the county auditor that equals the
9015+sum of:
9016+(i) the greater of twenty-five dollars ($25) or postage and
9017+publication costs; and
9018+(ii) any other actual costs incurred by the county that are
9019+directly attributable to the tax sale; and
9020+(E) any unpaid costs due under subsection (c) from a prior tax
9021+sale.
9022+(4) A statement that a person redeeming each tract or item of real
9023+property after the sale must pay:
9024+(A) one hundred ten percent (110%) of the amount of the
9025+minimum bid for which the tract or item of real property was
9026+offered at the time of sale if the tract or item of real property
9027+is redeemed not more than six (6) months after the date of
9028+sale;
9029+(B) one hundred fifteen percent (115%) of the amount of the
9030+minimum bid for which the tract or item of real property was
9031+offered at the time of sale if the tract or item of real property
9032+is redeemed more than six (6) months after the date of sale;
9033+(C) the amount by which the purchase price exceeds the
9034+minimum bid on the tract or item of real property plus five
9035+percent (5%) interest per annum, on the amount by which the
9036+purchase price exceeds the minimum bid; and
9037+(D) all taxes and special assessments on the tract or item of
9038+real property paid by the purchaser after the tax sale plus
9039+interest at the rate of five percent (5%) per annum, on the
9040+amount of taxes and special assessments paid by the purchaser
9041+on the redeemed property.
9042+(5) A statement for informational purposes only, of the location
9043+of each tract or item of real property by key number, if any, and
9044+street address, if any, or a common description of the property
9045+other than a legal description. The township assessor, or the
9046+county assessor if there is no township assessor for the township,
9047+upon written request from the county auditor, shall provide the
9048+information to be in the notice required by this subsection. A
9049+misstatement in the key number or street address does not
9050+invalidate an otherwise valid sale.
9051+(6) A statement that the county does not warrant the accuracy of
9052+the street address or common description of the property.
9053+(7) A statement indicating:
9054+(A) the name of the owner of each tract or item of real
9055+ES 419—LS 6606/DI 120 209
9056+property with a single owner; or
9057+(B) the name of at least one (1) of the owners of each tract or
9058+item of real property with multiple owners.
9059+(8) A statement of the procedure to be followed for obtaining or
9060+objecting to a judgment and order of sale, that must include the
9061+following:
9062+(A) A statement:
9063+(i) that the county auditor and county treasurer will apply on
9064+or after a date designated in the notice for a court judgment
9065+against the tracts or real property for an amount that is not
9066+less than the amount set under subdivision (3), and for an
9067+order to sell the tracts or real property at public auction to
9068+the highest bidder, subject to the right of redemption; and
9069+(ii) indicating the date when the period of redemption
9070+specified in IC 6-1.1-25-4 will expire.
9071+(B) A statement that any defense to the application for
9072+judgment must be:
9073+(i) filed with the court; and
9074+(ii) served on the county auditor and the county treasurer;
9075+before the date designated as the earliest date on which the
9076+application for judgment may be filed.
9077+(C) A statement that the county auditor and the county
9078+treasurer are entitled to receive all pleadings, motions,
9079+petitions, and other filings related to the defense to the
9080+application for judgment.
9081+(D) A statement that the court will set a date for a hearing at
9082+least seven (7) days before the advertised date and that the
9083+court will determine any defenses to the application for
9084+judgment at the hearing.
9085+(9) A statement that the sale will be conducted at a place
9086+designated in the notice and that the sale will continue until all
9087+tracts and real property have been offered for sale.
9088+(10) A statement that the sale will take place at the times and
9089+dates designated in the notice. Whenever the public auction is to
9090+be conducted as an electronic sale, the notice must include a
9091+statement indicating that the public auction will be conducted as
9092+an electronic sale and a description of the procedures that must be
9093+followed to participate in the electronic sale.
9094+(11) A statement that a person redeeming each tract or item after
9095+the sale must pay the costs described in IC 6-1.1-25-2(e).
9096+(12) If a county auditor and county treasurer have entered into an
9097+agreement under IC 6-1.1-25-4.7, a statement that the county
9098+ES 419—LS 6606/DI 120 210
9099+auditor will perform the duties of the notification and title search
9100+under IC 6-1.1-25-4.5 and the notification and petition to the
9101+court for the tax deed under IC 6-1.1-25-4.6.
9102+(13) A statement that, if the tract or item of real property is sold
9103+for an amount more than the minimum bid and the property is not
9104+redeemed, the owner of record of the tract or item of real property
9105+who is divested of ownership at the time the tax deed is issued
9106+may have a right to the tax sale surplus.
9107+(14) If a determination has been made under subsection (e), a
9108+statement that tracts or items will be sold together.
9109+(15) With respect to a tract or an item of real property that is
9110+subject to sale under this chapter after October 31, 2023, and
9111+before November 1, 2024, a statement declaring whether an
9112+ordinance adopted under IC 6-1.1-37-16 is in effect in the
9113+county and, if applicable, an explanation of the circumstances
9114+in which interest and penalties on the delinquent taxes and
9115+special assessments will be waived.
9116+(c) If within sixty (60) days before the date of the tax sale the county
9117+incurs costs set under subsection (b)(3)(D) and those costs are not paid,
9118+the county auditor shall enter the amount of costs that remain unpaid
9119+upon the tax duplicate of the property for which the costs were set. The
9120+county treasurer shall mail notice of unpaid costs entered upon a tax
9121+duplicate under this subsection to the owner of the property identified
9122+in the tax duplicate.
9123+(d) The amount of unpaid costs entered upon a tax duplicate under
9124+subsection (c) must be paid no later than the date upon which the next
9125+installment of real estate taxes for the property is due. Unpaid costs
9126+entered upon a tax duplicate under subsection (c) are a lien against the
9127+property described in the tax duplicate, and amounts remaining unpaid
9128+on the date the next installment of real estate taxes is due may be
9129+collected in the same manner that delinquent property taxes are
9130+collected.
9131+(e) The county auditor and county treasurer may establish the
9132+condition that a tract or item will be sold and may be redeemed under
9133+this chapter only if the tract or item is sold or redeemed together with
9134+one (1) or more other tracts or items. Property may be sold together
9135+only if the tract or item is owned by the same person.
9136+SECTION 11. IC 6-1.1-24-4, AS AMENDED BY P.L.251-2015,
9137+SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9138+UPON PASSAGE]: Sec. 4. (a) This section does not apply to vacant or
9139+abandoned real property that is on the list prepared by the county
9140+auditor under section 1.5 of this chapter.
9141+ES 419—LS 6606/DI 120 211
9142+(b) Not less than twenty-one (21) days before the earliest date on
9143+which the application for judgment and order for sale of real property
9144+eligible for sale may be made, the county auditor shall send a notice of
9145+the sale by certified mail, return receipt requested, and by first class
9146+mail to:
9147+(1) the owner of record of real property with a single owner; or
9148+(2) at least one (1) of the owners, as of the date of certification, of
9149+real property with multiple owners;
9150+at the last address of the owner for the property as indicated in the
9151+transfer book records of the county auditor under IC 6-1.1-5-4 on the
9152+date that the tax sale list is certified. If both notices are returned, the
9153+county auditor shall take an additional reasonable step to notify the
9154+property owner, if the county auditor determines that an additional
9155+reasonable step to notify the property owner is practical. The county
9156+auditor shall prepare the notice in the form prescribed by the state
9157+board of accounts. The notice must set forth the key number, if any, of
9158+the real property and a street address, if any, or other common
9159+description of the property other than a legal description. The notice
9160+must include the statement set forth in section 2(b)(4) of this chapter.
9161+With respect to a tract or an item of real property that is subject
9162+to sale under this chapter after October 31, 2023, and before
9163+November 1, 2024, the notice must include a statement declaring
9164+whether an ordinance adopted under IC 6-1.1-37-16 is in effect in
9165+the county and, if applicable, an explanation of the circumstances
9166+in which interest and penalties on the delinquent taxes and special
9167+assessments will be waived. The county auditor must present proof of
9168+this mailing to the court along with the application for judgment and
9169+order for sale. Failure by an owner to receive or accept the notice
9170+required by this section does not affect the validity of the judgment and
9171+order. The owner of real property shall notify the county auditor of the
9172+owner's correct address. The notice required under this section is
9173+considered sufficient if the notice is mailed to the address or addresses
9174+required by this section.
9175+(c) On or before the day of sale, the county auditor shall list, on the
9176+tax sale record required by IC 6-1.1-25-8, all properties that will be
9177+offered for sale.
9178+SECTION 12. IC 6-1.1-24-5, AS AMENDED BY P.L.251-2015,
9179+SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9180+UPON PASSAGE]: Sec. 5. (a) When a tract or an item of real property
9181+is subject to sale under this chapter, it must be sold in compliance with
9182+this section.
9183+(b) The sale must be held at the times and place stated in the notice
9184+ES 419—LS 6606/DI 120 212
9185+of sale.
9186+(c) A tract or an item of real property may not be sold under this
9187+chapter to collect:
9188+(1) delinquent personal property taxes; or
9189+(2) taxes or special assessments which are chargeable to other real
9190+property.
9191+(d) A tract or an item of real property may not be sold under this
9192+chapter if all the delinquent taxes, penalties, and special assessments
9193+on the tract or an item of real property and the amount prescribed by
9194+section 1.5 or 2(b)(3)(D) of this chapter, whichever applies, reflecting
9195+the costs incurred by the county due to the sale, are paid before the time
9196+of sale.
9197+(e) The county treasurer shall sell the tract or item of real property,
9198+subject to the right of redemption, to the highest bidder at public
9199+auction. The right of redemption after a sale does not apply to an item
9200+of real property that is on the vacant and abandoned property list
9201+prepared by the county auditor under section 1.5 of this chapter. Except
9202+as provided in section 1.5 of this chapter, a tract or an item of real
9203+property may not be sold for an amount which is less than the sum of:
9204+(1) the delinquent taxes and special assessments on each tract or
9205+item of real property;
9206+(2) the taxes and special assessments on each tract or item of real
9207+property that are due and payable in the year of the sale,
9208+regardless of whether the taxes and special assessments are
9209+delinquent;
9210+(3) all penalties which are due on the delinquencies;
9211+(4) the amount prescribed by section 2(b)(3)(D) of this chapter
9212+reflecting the costs incurred by the county due to the sale;
9213+(5) any unpaid costs which are due under section 2(c) of this
9214+chapter from a prior tax sale; and
9215+(6) other reasonable expenses of collection, including title search
9216+expenses, uniform commercial code expenses, and reasonable
9217+attorney's fees incurred by the date of the sale.
9218+The amount of penalties due on the delinquencies under
9219+subdivision (3) must be adjusted in accordance with IC 6-1.1-37-16,
9220+if applicable.
9221+(f) For purposes of the sale, it is not necessary for the county
9222+treasurer to first attempt to collect the real property taxes or special
9223+assessments out of the personal property of the owner of the tract or
9224+real property.
9225+(g) The county auditor shall serve as the clerk of the sale.
9226+(h) Real property certified to the county auditor under section 1.5 of
9227+ES 419—LS 6606/DI 120 213
9228+this chapter must be offered for sale in a different phase of the tax sale
9229+or on a different day of the tax sale than the phase or day during which
9230+other real property is offered for sale.
9231+(i) The public auction required under subsection (e) may be
9232+conducted by electronic means, at the option of the county treasurer.
9233+The electronic sale must comply with the other statutory requirements
9234+of this section. If an electronic sale is conducted under this subsection,
9235+the county treasurer shall provide access to the electronic sale by
9236+providing computer terminals open to the public at a designated
9237+location. A county treasurer who elects to conduct an electronic sale
9238+may receive electronic payments and establish rules necessary to
9239+secure the payments in a timely fashion. The county treasurer may not
9240+add an additional cost of sale charge to a parcel for the purpose of
9241+conducting the electronic sale.
9242+SECTION 13. IC 6-1.1-37-16 IS ADDED TO THE INDIANA
9243+CODE AS A NEW SECTION TO READ AS FOLLOWS
9244+[EFFECTIVE UPON PASSAGE]: Sec. 16. (a) The fiscal body of a
9245+county may, before November 1, 2023, adopt an ordinance to have
9246+this section apply throughout the county. If the fiscal body of a
9247+county adopts an ordinance under this subsection, the ordinance
9248+applies after October 31, 2023, and before November 1, 2024. The
9249+fiscal body shall deliver a copy of the ordinance to the county
9250+treasurer and the county auditor.
9251+(b) Subject to subsection (d), the county treasurer of a county to
9252+which this section applies shall waive all interest and penalties
9253+added before January 1, 2023, to a delinquent property tax
9254+installment or special assessment on a tract or an item of real
9255+property if:
9256+(1) all of the delinquent taxes and special assessments on the
9257+tract or item of real property were first due and payable
9258+before January 1, 2023; and
9259+(2) before November 1, 2024, the taxpayer has paid:
9260+(A) all of the delinquent taxes and special assessments
9261+described in subdivision (1); and
9262+(B) all of the taxes and special assessments that are first
9263+due and payable on the tract or item of real property after
9264+December 31, 2022, and before November 1, 2024 (and any
9265+interest and penalties on these taxes and special
9266+assessments).
9267+(c) Subject to subsection (d), the county treasurer of a county to
9268+which this section applies shall waive interest and penalties as
9269+provided in subsection (b) if the conditions of subsection (b) are
9270+ES 419—LS 6606/DI 120 214
9271+satisfied, notwithstanding any payment arrangement entered into
9272+by the county treasurer and the taxpayer under IC 6-1.1-24-1.2 or
9273+under any other law.
9274+(d) This section shall not apply to interest and penalties added
9275+to delinquent property tax installments or special assessments on
9276+a tract or item of real property that was purchased or sold in any
9277+prior tax sale.
9278+SECTION 14. IC 6-2.5-5-2, AS AMENDED BY P.L.239-2017,
159279 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
169280 JULY 1, 2023]: Sec. 2. (a) Transactions involving agricultural
179281 machinery, tools, and equipment, including material handling
189282 equipment purchased for the purpose of transporting materials into
199283 activities described in this subsection from an onsite location, are
209284 exempt from the state gross retail tax if the person acquiring that
219285 property acquires it for the person's direct use in the direct production,
229286 extraction, harvesting, or processing of agricultural commodities.
239287 (b) Transactions involving agricultural machinery or equipment are
249288 exempt from the state gross retail tax if:
259289 (1) the person acquiring the property acquires it for use in
269290 conjunction with the production of food and food ingredients or
279291 commodities for sale;
289292 (2) the person acquiring the property is occupationally engaged in
299293 the production of food or commodities which the person sells for
309294 human or animal consumption or uses for further food and food
319295 ingredients or commodity production; and
329296 (3) the machinery or equipment is designed for use in gathering,
339297 moving, or spreading animal waste.
349298 (c) Transactions involving agricultural machinery or equipment,
359299 including material handling equipment purchased for the purpose of
369300 transporting materials into activities described in this subsection from
37-SEA 419 — CC 1 2
389301 an onsite location, are exempt from the state gross retail tax if the
399302 person acquiring the property:
409303 (1) acquires it for the person's direct use in:
419304 (A) the direct application of fertilizers, pesticides, fungicides,
429305 seeds, and other tangible personal property; or
439306 (B) the direct extraction, harvesting, or processing of
449307 agricultural commodities;
459308 for consideration; and
469309 (2) is occupationally engaged in providing the services described
479310 in subdivision (1) on property that is:
489311 (A) owned or rented by another person occupationally engaged
499312 in agricultural production; and
9313+ES 419—LS 6606/DI 120 215
509314 (B) used for agricultural production.
519315 (d) If a transaction:
529316 (1) involving agricultural machinery, tools, or equipment
539317 qualifies for an exemption under subsection (a), (b), or (c);
549318 (2) involves agricultural machinery, tools, or equipment
559319 included on the person's business tangible personal property
569320 tax return, or, if IC 6-1.1-3-7.2(f) applies, agricultural
579321 machinery, tools, or equipment that would otherwise be
589322 included on a business tangible personal property tax return;
599323 and
609324 (3) the agricultural machinery, tools, or equipment is
619325 predominately used for exempt purposes under subsection (a),
629326 (b), or (c);
639327 the entire transaction is exempt from the application of the state
649328 gross retail tax regardless of whether the person also uses or
65-intends to use the property for a nonexempt purpose.
66-(e) The amount of state gross retail tax or use tax imposed on
67-transactions involving agricultural machinery, tools, or equipment
68-that meet the qualifications of subsection (d)(1) and (d)(2), but not
69-subsection (d)(3), is prorated based on the purchaser's nonexempt
70-use.
71-(f) If agricultural machinery, tools, or equipment described in
9329+intends to use the property for a nonexempt purpose. Transactions
9330+involving agricultural machinery, tools, or equipment under this
9331+section may not be prorated.
9332+(e) If agricultural machinery, tools, or equipment described in
729333 this section is purchased in Indiana but is used outside of Indiana,
739334 subsection (d)(2) shall apply as if the agricultural machinery, tools,
749335 or equipment was located in Indiana.
75-(g) The department may amend the administrative rules to
76-conform with subsection (d).
77-SECTION 2. IC 6-2.5-5-8.5, AS AMENDED BY THE
78-TECHNICAL CORRECTIONS BILL OF THE 2023 GENERAL
79-ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
80-SEA 419 — CC 1 3
81-UPON PASSAGE]: Sec. 8.5. Transactions involving electrical energy,
82-natural or artificial gas, water, steam, or steam heating service sold or
83-furnished by a power subsidiary or a person engaged as a public utility
84-are exempt from the state gross retail tax when:
85-(1) the a power subsidiary or person provides, installs, constructs,
86-services, or removes tangible personal property which is used in
87-connection with the furnishing of the services or commodities
88-listed in IC 6-2.5-4-5;
89-(2) the a power subsidiary or person sells the services or
90-commodities listed in IC 6-2.5-4-5 to another public utility or
91-power subsidiary or a person described in IC 6-2.5-4-6; or
92-(3) the a power subsidiary or person sells the services or
93-commodities listed in IC 6-2.5-4-5 and all of the following
94-conditions are satisfied:
95-(A) The services or commodities are sold to a business that:
96-(i) relocates all or part of its operations to a facility; or
97-(ii) expands all or part of its operations in a facility;
98-located in a military base (as defined in IC 36-7-30-1(c)), a
99-military base reuse area established under IC 36-7-14.5-12.5
100-that is or formerly was a military base (as defined in
101-IC 36-7-30-1(c)), or a qualified military base enhancement
102-area established under IC 36-7-34.
103-(B) The business uses the services or commodities in the
104-facility described in clause (A) not later than five (5) years
105-after the operation operations that relocated to the facility, or
106-expanded in the facility, commence.
107-(C) The sales of the services or commodities are separately
108-metered for use by the relocated or expanded operations.
109-(D) In the case of a business that uses the services or
110-commodities in a qualified military base enhancement area
111-established under IC 36-7-34-4(1), the business must satisfy at
112-least one (1) of the following criteria:
113-(i) The business is a participant in the technology transfer
114-program conducted by the qualified military base (as defined
115-in IC 36-7-34-3).
116-(ii) The business is a United States Department of Defense
117-contractor.
118-(iii) The business and the qualified military base have a
119-mutually beneficial relationship evidenced by a
120-memorandum of understanding between the business and
121-the United States Department of Defense.
122-(E) In the case of a business that uses the services and
123-SEA 419 — CC 1 4
124-commodities in a qualified military base enhancement area
125-established under IC 36-7-34-4(2), the business must satisfy at
126-least one (1) of the following criteria:
127-(i) The business is a participant in the technology transfer
128-program conducted by the qualified military base (as defined
129-in IC 36-7-34-3).
130-(ii) The business and the qualified miliary base have a
131-mutually beneficial relationship evidenced by a
132-memorandum of understanding between the business and
133-the qualified military base (as defined in IC 36-7-34-3).
134-However, this subdivision does not apply to a business that
135-substantially reduces or ceases its operations at another
136-location in Indiana in order to relocate its operations in an area
137-described in this subdivision, unless the department
138-determines that the business had existing operations in the area
139-described in this subdivision and that the operations relocated
140-to the area are an expansion of the business's operations in the
141-area.
142-However, this subdivision does not apply to a business that
143-substantially reduces or ceases its operations at another
144-location in Indiana in order to relocate its operations in an
145-area described in this subdivision, unless the department
146-determines that the business had existing operations in the
147-area described in this subdivision and that the operations
148-relocated to the area are an expansion of the business's
149-operations in the area.
150-SECTION 3. IC 6-2.5-5-10.7 IS ADDED TO THE INDIANA
9336+(f) The department shall amend the administrative rules to
9337+conform with subsection (d).".
9338+Page 3, between lines 12 and 13, begin a new paragraph and insert:
9339+"SECTION 16. IC 6-2.5-5-10.7 IS ADDED TO THE INDIANA
1519340 CODE AS A NEW SECTION TO READ AS FOLLOWS
1529341 [EFFECTIVE JULY 1, 2023]: Sec. 10.7. (a) This section does not
1539342 apply to tangible personal property that:
1549343 (1) is used to store or consume usable energy, electricity, or
1559344 heat;
1569345 (2) is used to convey, transfer, or alter generated electricity;
1579346 or
1589347 (3) will be used to produce energy for the purchaser's
1599348 residential use, regardless of whether any of the energy
1609349 produced may be sold to a public utility or power subsidiary.
1619350 (b) As used in this section, "solar energy system" means any
1629351 device that converts solar energy to a form of usable energy with
1639352 an originally rated nameplate production capacity of at least two
1649353 (2) megawatts.
1659354 (c) As used in this section, "wind energy system" means any
166-SEA 419 — CC 1 5
1679355 device, including a wind turbine, windmill, and wind charger, that
9356+ES 419—LS 6606/DI 120 216
1689357 converts wind energy to a form of usable energy with an originally
1699358 rated nameplate production capacity of at least two (2) megawatts.
1709359 (d) A transaction involving tangible personal property is exempt
1719360 from the state gross retail tax if the:
1729361 (1) tangible personal property is a component of a solar
1739362 energy system or wind energy system; and
1749363 (2) person acquiring the tangible personal property is a:
1759364 (A) public utility that furnishes or sells electrical energy;
1769365 (B) power subsidiary (as defined in IC 6-2.5-1-22.5) that
1779366 furnishes or sells electrical energy to a power utility
1789367 described in clause (A); or
1799368 (C) business that furnishes or sells electrical energy to a
1809369 public utility described in clause (A), to a power subsidiary
1819370 described in clause (B), or to a renewable utility grade
1829371 solar electricity or wind facility that is used to generate
1839372 electricity for resale to consumers or wholesalers.
184-SECTION 4. IC 6-2.5-8-3 IS REPEALED [EFFECTIVE UPON
185-PASSAGE]. Sec. 3. (a) A manufacturer or wholesaler may register with
186-the department as a purchaser of property in exempt transactions. A
187-manufacturer or wholesaler wishing to register must apply in the same
188-manner and pay the same fee as a retail merchant under section 1 of
189-this chapter.
190-(b) Upon receiving the application and fee, the department may
191-issue a manufacturer's or wholesaler's certificate for each place of
192-business listed on the application. Each certificate shall contain a serial
193-number and the location of the place of business for which it is issued.
194-SECTION 5. IC 6-2.5-8-5, AS AMENDED BY P.L.111-2006,
195-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
196-UPON PASSAGE]: Sec. 5. A certificate issued under section 3 or 4 of
197-this chapter is valid so long as the business or exempt organization is
198-in existence.
199-SECTION 6. IC 6-2.5-8-7, AS AMENDED BY P.L.156-2020,
200-SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
201-UPON PASSAGE]: Sec. 7. (a) The department may, for good cause,
202-revoke a certificate issued under section 1 3, or 4 of this chapter.
203-However, the department must give the certificate holder at least five
204-(5) days notice before it revokes the certificate under this subsection.
205-Good cause for revocation may include the following:
206-(1) Failure to:
207-(A) file a return required under this chapter or for any tax
208-collected for the state in trust; or
209-SEA 419 — CC 1 6
210-(B) remit any tax collected for the state in trust.
211-(2) Being charged with a violation of any provision under IC 35.
212-(3) Being subject to a court order under IC 7.1-2-6-7,
213-IC 32-30-6-8, IC 32-30-7, or IC 32-30-8.
214-(4) Being charged with a violation of IC 23-15-12.
215-(5) Operating as a retail merchant where the certificate issued
216-under section 1 of this chapter could have been denied under
217-section 1(e) of this chapter prior to its issuance.
218-The department may revoke a certificate before a criminal adjudication
219-or without a criminal charge being filed. If the department gives notice
220-of an intent to revoke based on an alleged violation of subdivision (2),
221-the department shall hold a public hearing to determine whether good
222-cause exists. If the department finds in a public hearing by a
223-preponderance of the evidence that a person has committed a violation
224-described in subdivision (2), the department shall proceed in
225-accordance with subsection (i) (if the violation resulted in a criminal
226-conviction) or subsection (j) (if the violation resulted in a judgment for
227-an infraction).
228-(b) The department shall revoke a certificate issued under section
229-1 3, or 4 of this chapter if, for a period of three (3) years, the certificate
230-holder fails to:
231-(1) file the returns required by IC 6-2.5-6-1; or
232-(2) report the collection of any state gross retail or use tax on the
233-returns filed under IC 6-2.5-6-1.
234-However, the department must give the certificate holder at least five
235-(5) days notice before it revokes the certificate.
236-(c) The department may, for good cause, revoke a certificate issued
237-under section 1 of this chapter after at least five (5) days notice to the
238-certificate holder if:
239-(1) the certificate holder is subject to an innkeeper's tax under
240-IC 6-9; and
241-(2) a board, bureau, or commission established under IC 6-9 files
242-a written statement with the department.
243-(d) The statement filed under subsection (c) must state that:
244-(1) information obtained by the board, bureau, or commission
245-under IC 6-8.1-7-1 indicates that the certificate holder has not
246-complied with IC 6-9; and
247-(2) the board, bureau, or commission has determined that
248-significant harm will result to the county from the certificate
249-holder's failure to comply with IC 6-9.
250-(e) The department shall revoke or suspend a certificate issued
251-under section 1 of this chapter after at least five (5) days notice to the
252-SEA 419 — CC 1 7
253-certificate holder if:
254-(1) the certificate holder owes taxes, penalties, fines, interest, or
255-costs due under IC 6-1.1 that remain unpaid at least sixty (60)
256-days after the due date under IC 6-1.1; and
257-(2) the treasurer of the county to which the taxes are due requests
258-the department to revoke or suspend the certificate.
259-(f) The department shall reinstate a certificate suspended under
260-subsection (e) if the taxes and any penalties due under IC 6-1.1 are paid
261-or the county treasurer requests the department to reinstate the
262-certificate because an agreement for the payment of taxes and any
263-penalties due under IC 6-1.1 has been reached to the satisfaction of the
264-county treasurer.
265-(g) The department shall revoke a certificate issued under section
266-1 of this chapter after at least five (5) days notice to the certificate
267-holder if the department finds in a public hearing by a preponderance
268-of the evidence that the certificate holder has violated IC 35-45-5-3,
269-IC 35-45-5-3.5, or IC 35-45-5-4.
270-(h) If a person makes a payment for the certificate under section 1
271-or 3 of this chapter with a check, credit card, debit card, or electronic
272-funds transfer, and the department is unable to obtain payment of the
273-check, credit card, debit card, or electronic funds transfer for its full
274-face amount when the check, credit card, debit card, or electronic funds
275-transfer is presented for payment through normal banking channels, the
276-department shall notify the person by mail that the check, credit card,
277-debit card, or electronic funds transfer was not honored and that the
278-person has five (5) days after the notice is mailed to pay the fee in cash,
279-by certified check, or other guaranteed payment. If the person fails to
280-make the payment within the five (5) day period, the department shall
281-revoke the certificate.
282-(i) If the department finds in a public hearing by a preponderance of
283-the evidence that a person has a conviction for an offense under
284-IC 35-48-4 and the conviction involved the sale of or the offer to sell,
285-in the normal course of business, a synthetic drug (as defined in
286-IC 35-31.5-2-321), a synthetic drug lookalike substance (as defined in
287-IC 35-31.5-2-321.5 (before its repeal on July 1, 2019)), a controlled
288-substance analog (as defined in IC 35-48-1-9.3), or a substance
289-represented to be a controlled substance (as described in
290-IC 35-48-4-4.6) by a retail merchant in a place of business for which
291-the retail merchant has been issued a registered retail merchant
292-certificate under section 1 of this chapter, the department:
293-(1) shall suspend the registered retail merchant certificate for the
294-place of business for one (1) year; and
295-SEA 419 — CC 1 8
296-(2) may not issue another retail merchant certificate under section
297-1 of this chapter for one (1) year to any person:
298-(A) that:
299-(i) applied for; or
300-(ii) made a retail transaction under;
301-the retail merchant certificate suspended under subdivision
302-(1); or
303-(B) that:
304-(i) owned or co-owned, directly or indirectly; or
305-(ii) was an officer, a director, a manager, or a partner of;
306-the retail merchant that was issued the retail merchant
307-certificate suspended under subdivision (1).
308-(j) If the department finds in a public hearing by a preponderance of
309-the evidence that a person has a judgment for a violation of
310-IC 35-48-4-10.5 (before its repeal on July 1, 2019) as an infraction and
311-the violation involved the sale of or the offer to sell, in the normal
312-course of business, a synthetic drug or a synthetic drug lookalike
313-substance by a retail merchant in a place of business for which the
314-retail merchant has been issued a registered retail merchant certificate
315-under section 1 of this chapter, the department:
316-(1) may suspend the registered retail merchant certificate for the
317-place of business for six (6) months; and
318-(2) may withhold issuance of another retail merchant certificate
319-under section 1 of this chapter for six (6) months to any person:
320-(A) that:
321-(i) applied for; or
322-(ii) made a retail transaction under;
323-the retail merchant certificate suspended under subdivision
324-(1); or
325-(B) that:
326-(i) owned or co-owned, directly or indirectly; or
327-(ii) was an officer, a director, a manager, or a partner of;
328-the retail merchant that was issued the retail merchant
329-certificate suspended under subdivision (1).
330-(k) If the department finds in a public hearing by a preponderance
331-of the evidence that a person has a conviction for a violation of
332-IC 35-48-4-10(d)(3) and the conviction involved an offense committed
333-by a retail merchant in a place of business for which the retail merchant
334-has been issued a registered retail merchant certificate under section 1
335-of this chapter, the department:
336-(1) shall suspend the registered retail merchant certificate for the
337-place of business for one (1) year; and
338-SEA 419 — CC 1 9
339-(2) may not issue another retail merchant certificate under section
340-1 of this chapter for one (1) year to any person:
341-(A) that:
342-(i) applied for; or
343-(ii) made a retail transaction under;
344-the retail merchant certificate suspended under subdivision
345-(1); or
346-(B) that:
347-(i) owned or co-owned, directly or indirectly; or
348-(ii) was an officer, a director, a manager, or a partner of;
349-the retail merchant that was issued the retail merchant
350-certificate suspended under subdivision (1).
351-SECTION 7. IC 6-3-1-3.5, AS AMENDED BY P.L.1-2023,
9373+SECTION 17. IC 6-2.5-5-57.5 IS ADDED TO THE INDIANA
9374+CODE AS A NEW SECTION TO READ AS FOLLOWS
9375+[EFFECTIVE JULY 1, 2023]: Sec. 57.5. (a) As used in this section,
9376+"breastfeeding items" means breast pumps, breast pump kits,
9377+breast pump repair and replacement parts, and breast pump
9378+collection and storage supplies.
9379+(b) Sales of breastfeeding items are exempt from the state gross
9380+retail tax.".
9381+Page 7, delete lines 8 through 42, begin a new paragraph and insert:
9382+"SECTION 21. IC 6-3-1-3.5, AS AMENDED BY P.L.1-2023,
3529383 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3539384 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 3.5. When used in this
3549385 article, the term "adjusted gross income" shall mean the following:
3559386 (a) In the case of all individuals, "adjusted gross income" (as
3569387 defined in Section 62 of the Internal Revenue Code), modified as
3579388 follows:
3589389 (1) Subtract income that is exempt from taxation under this article
3599390 by the Constitution and statutes of the United States.
3609391 (2) Except as provided in subsection (c), add an amount equal to
3619392 any deduction or deductions allowed or allowable pursuant to
3629393 Section 62 of the Internal Revenue Code for taxes based on or
3639394 measured by income and levied at the state level by any state of
3649395 the United States.
3659396 (3) Subtract one thousand dollars ($1,000), or in the case of a
3669397 joint return filed by a husband and wife, subtract for each spouse
3679398 one thousand dollars ($1,000).
9399+ES 419—LS 6606/DI 120 217
3689400 (4) Subtract one thousand dollars ($1,000) for:
3699401 (A) each of the exemptions provided by Section 151(c) of the
3709402 Internal Revenue Code (as effective January 1, 2017);
3719403 (B) each additional amount allowable under Section 63(f) of
3729404 the Internal Revenue Code; and
3739405 (C) the spouse of the taxpayer if a separate return is made by
3749406 the taxpayer and if the spouse, for the calendar year in which
3759407 the taxable year of the taxpayer begins, has no gross income
3769408 and is not the dependent of another taxpayer.
3779409 (5) Subtract:
3789410 (A) One thousand five hundred dollars ($1,500) for each of the
3799411 exemptions allowed under Section 151(c)(1)(B) of the Internal
3809412 Revenue Code (as effective January 1, 2004).
381-SEA 419 — CC 1 10
3829413 (B) One thousand five hundred dollars ($1,500) for each
3839414 exemption allowed under Section 151(c) of the Internal
3849415 Revenue Code (as effective January 1, 2017) for an individual:
3859416 (i) who is less than nineteen (19) years of age or is a
3869417 full-time student who is less than twenty-four (24) years of
3879418 age;
3889419 (ii) for whom the taxpayer is the legal guardian; and
3899420 (iii) for whom the taxpayer does not claim an exemption
3909421 under clause (A).
3919422 (C) Five hundred dollars ($500) for each additional amount
3929423 allowable under Section 63(f)(1) of the Internal Revenue Code
3939424 if the federal adjusted gross income of the taxpayer, or the
3949425 taxpayer and the taxpayer's spouse in the case of a joint return,
3959426 is less than forty thousand dollars ($40,000). In the case of a
3969427 married individual filing a separate return, the qualifying
3979428 income amount in this clause is equal to twenty thousand
3989429 dollars ($20,000).
3999430 (D) Three thousand dollars ($3,000) for each exemption
4009431 allowed under Section 151(c) of the Internal Revenue Code (as
4019432 effective January 1, 2017) for an individual who is:
4029433 (i) an adopted child of the taxpayer; and
4039434 (ii) less than nineteen (19) years of age or is a full-time
4049435 student who is less than twenty-four (24) years of age.
4059436 This amount is in addition to any amount subtracted under
4069437 clause (A) or (B).
4079438 This amount is in addition to the amount subtracted under
4089439 subdivision (4).
4099440 (6) Subtract any amounts included in federal adjusted gross
4109441 income under Section 111 of the Internal Revenue Code as a
9442+ES 419—LS 6606/DI 120 218
4119443 recovery of items previously deducted as an itemized deduction
4129444 from adjusted gross income.
4139445 (7) Subtract any amounts included in federal adjusted gross
4149446 income under the Internal Revenue Code which amounts were
4159447 received by the individual as supplemental railroad retirement
4169448 annuities under 45 U.S.C. 231 and which are not deductible under
4179449 subdivision (1).
4189450 (8) Subtract an amount equal to the amount of federal Social
4199451 Security and Railroad Retirement benefits included in a taxpayer's
4209452 federal gross income by Section 86 of the Internal Revenue Code.
4219453 (9) In the case of a nonresident taxpayer or a resident taxpayer
4229454 residing in Indiana for a period of less than the taxpayer's entire
4239455 taxable year, the total amount of the deductions allowed pursuant
424-SEA 419 — CC 1 11
4259456 to subdivisions (3), (4), and (5) shall be reduced to an amount
4269457 which bears the same ratio to the total as the taxpayer's income
4279458 taxable in Indiana bears to the taxpayer's total income.
4289459 (10) In the case of an individual who is a recipient of assistance
4299460 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
4309461 subtract an amount equal to that portion of the individual's
4319462 adjusted gross income with respect to which the individual is not
4329463 allowed under federal law to retain an amount to pay state and
4339464 local income taxes.
4349465 (11) In the case of an eligible individual, subtract the amount of
4359466 a Holocaust victim's settlement payment included in the
4369467 individual's federal adjusted gross income.
4379468 (12) Subtract an amount equal to the portion of any premiums
4389469 paid during the taxable year by the taxpayer for a qualified long
4399470 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
4409471 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
4419472 file a joint income tax return or the taxpayer is otherwise entitled
4429473 to a deduction under this subdivision for the taxpayer's spouse, or
4439474 both.
4449475 (13) Subtract an amount equal to the lesser of:
4459476 (A) two thousand five hundred dollars ($2,500), or one
4469477 thousand two hundred fifty dollars ($1,250) in the case of a
4479478 married individual filing a separate return; or
4489479 (B) the amount of property taxes that are paid during the
4499480 taxable year in Indiana by the individual on the individual's
4509481 principal place of residence.
4519482 (14) Subtract an amount equal to the amount of a September 11
4529483 terrorist attack settlement payment included in the individual's
4539484 federal adjusted gross income.
9485+ES 419—LS 6606/DI 120 219
4549486 (15) Add or subtract the amount necessary to make the adjusted
4559487 gross income of any taxpayer that owns property for which bonus
4569488 depreciation was allowed in the current taxable year or in an
4579489 earlier taxable year equal to the amount of adjusted gross income
4589490 that would have been computed had an election not been made
4599491 under Section 168(k) of the Internal Revenue Code to apply bonus
4609492 depreciation to the property in the year that it was placed in
4619493 service.
4629494 (16) Add an amount equal to any deduction allowed under
4639495 Section 172 of the Internal Revenue Code (concerning net
4649496 operating losses).
4659497 (17) Add or subtract the amount necessary to make the adjusted
4669498 gross income of any taxpayer that placed Section 179 property (as
467-SEA 419 — CC 1 12
4689499 defined in Section 179 of the Internal Revenue Code) in service
4699500 in the current taxable year or in an earlier taxable year equal to
4709501 the amount of adjusted gross income that would have been
4719502 computed had an election for federal income tax purposes not
4729503 been made for the year in which the property was placed in
4739504 service to take deductions under Section 179 of the Internal
4749505 Revenue Code in a total amount exceeding the sum of:
4759506 (A) twenty-five thousand dollars ($25,000) to the extent
4769507 deductions under Section 179 of the Internal Revenue Code
4779508 were not elected as provided in clause (B); and
4789509 (B) for taxable years beginning after December 31, 2017, the
4799510 deductions elected under Section 179 of the Internal Revenue
4809511 Code on property acquired in an exchange if:
4819512 (i) the exchange would have been eligible for
4829513 nonrecognition of gain or loss under Section 1031 of the
4839514 Internal Revenue Code in effect on January 1, 2017;
4849515 (ii) the exchange is not eligible for nonrecognition of gain or
4859516 loss under Section 1031 of the Internal Revenue Code; and
4869517 (iii) the taxpayer made an election to take deductions under
4879518 Section 179 of the Internal Revenue Code with regard to the
4889519 acquired property in the year that the property was placed
4899520 into service.
4909521 The amount of deductions allowable for an item of property
4919522 under this clause may not exceed the amount of adjusted gross
4929523 income realized on the property that would have been deferred
4939524 under the Internal Revenue Code in effect on January 1, 2017.
4949525 (18) Subtract an amount equal to the amount of the taxpayer's
4959526 qualified military income that was not excluded from the
4969527 taxpayer's gross income for federal income tax purposes under
9528+ES 419—LS 6606/DI 120 220
4979529 Section 112 of the Internal Revenue Code.
4989530 (19) Subtract income that is:
4999531 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
5009532 derived from patents); and
5019533 (B) included in the individual's federal adjusted gross income
5029534 under the Internal Revenue Code.
5039535 (20) Add an amount equal to any income not included in gross
5049536 income as a result of the deferral of income arising from business
5059537 indebtedness discharged in connection with the reacquisition after
5069538 December 31, 2008, and before January 1, 2011, of an applicable
5079539 debt instrument, as provided in Section 108(i) of the Internal
5089540 Revenue Code. Subtract the amount necessary from the adjusted
5099541 gross income of any taxpayer that added an amount to adjusted
510-SEA 419 — CC 1 13
5119542 gross income in a previous year to offset the amount included in
5129543 federal gross income as a result of the deferral of income arising
5139544 from business indebtedness discharged in connection with the
5149545 reacquisition after December 31, 2008, and before January 1,
5159546 2011, of an applicable debt instrument, as provided in Section
5169547 108(i) of the Internal Revenue Code.
5179548 (21) Add the amount excluded from federal gross income under
5189549 Section 103 of the Internal Revenue Code for interest received on
5199550 an obligation of a state other than Indiana, or a political
5209551 subdivision of such a state, that is acquired by the taxpayer after
5219552 December 31, 2011. For purposes of this subdivision:
5229553 (A) if the taxpayer receives interest from a pass through
5239554 entity, a regulated investment company, a hedge fund, or
5249555 similar arrangement, the taxpayer will be considered to
5259556 have acquired the obligation on the date the entity
5269557 acquired the obligation;
5279558 (B) if ownership of the obligation occurs by means other
5289559 than a purchase, the date of acquisition of the obligation
5299560 shall be the date ownership of the obligation was
5309561 transferred, except to the extent provided in clause (A),
5319562 and if a portion of the obligation is acquired on multiple
5329563 dates, the date of acquisition shall be considered separately
5339564 for each portion of the obligation; and
5349565 (C) if ownership of the obligation occurred as the result of
5359566 a refinancing of another obligation, the acquisition date
5369567 shall be the date on which the obligation was refinanced.
5379568 (22) Subtract an amount as described in Section 1341(a)(2) of the
5389569 Internal Revenue Code to the extent, if any, that the amount was
5399570 previously included in the taxpayer's adjusted gross income for a
9571+ES 419—LS 6606/DI 120 221
5409572 prior taxable year.
5419573 (23) For taxable years beginning after December 25, 2016, add an
5429574 amount equal to the deduction for deferred foreign income that
5439575 was claimed by the taxpayer for the taxable year under Section
5449576 965(c) of the Internal Revenue Code.
5459577 (24) Subtract any interest expense paid or accrued in the current
5469578 taxable year but not deducted as a result of the limitation imposed
5479579 under Section 163(j)(1) of the Internal Revenue Code. Add any
5489580 interest expense paid or accrued in a previous taxable year but
5499581 allowed as a deduction under Section 163 of the Internal Revenue
5509582 Code in the current taxable year. For purposes of this subdivision,
5519583 an interest expense is considered paid or accrued only in the first
5529584 taxable year the deduction would have been allowable under
553-SEA 419 — CC 1 14
5549585 Section 163 of the Internal Revenue Code if the limitation under
5559586 Section 163(j)(1) of the Internal Revenue Code did not exist.
5569587 (25) Subtract the amount that would have been excluded from
5579588 gross income but for the enactment of Section 118(b)(2) of the
5589589 Internal Revenue Code for taxable years ending after December
5599590 22, 2017.
5609591 (26) For taxable years beginning after December 31, 2019, and
5619592 before January 1, 2021, add an amount of the deduction claimed
5629593 under Section 62(a)(22) of the Internal Revenue Code.
5639594 (27) For taxable years beginning after December 31, 2019, for
5649595 payments made by an employer under an education assistance
5659596 program after March 27, 2020:
5669597 (A) add the amount of payments by an employer that are
5679598 excluded from the taxpayer's federal gross income under
5689599 Section 127(c)(1)(B) of the Internal Revenue Code; and
5699600 (B) deduct the interest allowable under Section 221 of the
5709601 Internal Revenue Code, if the disallowance under Section
5719602 221(e)(1) of the Internal Revenue Code did not apply to the
5729603 payments described in clause (A). For purposes of applying
5739604 Section 221(b) of the Internal Revenue Code to the amount
5749605 allowable under this clause, the amount under clause (A) shall
5759606 not be added to adjusted gross income.
5769607 (28) Add an amount equal to the remainder of:
5779608 (A) the amount allowable as a deduction under Section 274(n)
5789609 of the Internal Revenue Code; minus
5799610 (B) the amount otherwise allowable as a deduction under
5809611 Section 274(n) of the Internal Revenue Code, if Section
5819612 274(n)(2)(D) of the Internal Revenue Code was not in effect
5829613 for amounts paid or incurred after December 31, 2020.
9614+ES 419—LS 6606/DI 120 222
5839615 (29) For taxable years beginning after December 31, 2017, and
5849616 before January 1, 2021, add an amount equal to the excess
5859617 business loss of the taxpayer as defined in Section 461(l)(3) of the
5869618 Internal Revenue Code. In addition:
5879619 (A) If a taxpayer has an excess business loss under this
5889620 subdivision and also has modifications under subdivisions (15)
5899621 and (17) for property placed in service during the taxable year,
5909622 the taxpayer shall treat a portion of the taxable year
5919623 modifications for that property as occurring in the taxable year
5929624 the property is placed in service and a portion of the
5939625 modifications as occurring in the immediately following
5949626 taxable year.
5959627 (B) The portion of the modifications under subdivisions (15)
596-SEA 419 — CC 1 15
5979628 and (17) for property placed in service during the taxable year
5989629 treated as occurring in the taxable year in which the property
5999630 is placed in service equals:
6009631 (i) the modification for the property otherwise determined
6019632 under this section; minus
6029633 (ii) the excess business loss disallowed under this
6039634 subdivision;
6049635 but not less than zero (0).
6059636 (C) The portion of the modifications under subdivisions (15)
6069637 and (17) for property placed in service during the taxable year
6079638 treated as occurring in the taxable year immediately following
6089639 the taxable year in which the property is placed in service
6099640 equals the modification for the property otherwise determined
6109641 under this section minus the amount in clause (B).
6119642 (D) Any reallocation of modifications between taxable years
6129643 under clauses (B) and (C) shall be first allocated to the
6139644 modification under subdivision (15), then to the modification
6149645 under subdivision (17).
6159646 (30) Add an amount equal to the amount excluded from federal
6169647 gross income under Section 108(f)(5) of the Internal Revenue
6179648 Code. For purposes of this subdivision:
6189649 (A) if an amount excluded under Section 108(f)(5) of the
6199650 Internal Revenue Code would be excludible under Section
6209651 108(a)(1)(B) of the Internal Revenue Code, the exclusion
6219652 under Section 108(a)(1)(B) of the Internal Revenue Code shall
6229653 take precedence; and
6239654 (B) if an amount would have been excludible under Section
6249655 108(f)(5) of the Internal Revenue Code as in effect on January
6259656 1, 2020, the amount is not required to be added back under this
9657+ES 419—LS 6606/DI 120 223
6269658 subdivision.
6279659 (31) For taxable years ending after March 12, 2020, subtract an
6289660 amount equal to the deduction disallowed pursuant to:
6299661 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
6309662 as modified by Sections 206 and 207 of the Taxpayer Certainty
6319663 and Disaster Relief Tax Act (Division EE of Public Law
6329664 116-260); and
6339665 (B) Section 3134(e) of the Internal Revenue Code.
6349666 (32) Subtract the amount of an annual grant amount distributed to
6359667 a taxpayer's Indiana education scholarship account under
6369668 IC 20-51.4-4-2 that is used for a qualified expense (as defined in
6379669 IC 20-51.4-2-9) or to an Indiana enrichment scholarship account
6389670 under IC 20-52 that is used for qualified expenses (as defined in
639-SEA 419 — CC 1 16
6409671 IC 20-52-2-6), to the extent the distribution used for the qualified
6419672 expense is included in the taxpayer's federal adjusted gross
6429673 income under the Internal Revenue Code.
6439674 (33) For taxable years beginning after December 31, 2019, and
6449675 before January 1, 2021, add an amount equal to the amount of
6459676 unemployment compensation excluded from federal gross income
6469677 under Section 85(c) of the Internal Revenue Code.
6479678 (34) For taxable years beginning after December 31, 2022,
6489679 subtract an amount equal to the deduction disallowed under
6499680 Section 280C(h) of the Internal Revenue Code.
6509681 (35) For taxable years beginning after December 31, 2021, add
6519682 or subtract amounts related to specified research or
6529683 experimental procedures as required under IC 6-3-2-29.
6539684 (35) (36) Subtract any other amounts the taxpayer is entitled to
6549685 deduct under IC 6-3-2.
6559686 (b) In the case of corporations, the same as "taxable income" (as
6569687 defined in Section 63 of the Internal Revenue Code) adjusted as
6579688 follows:
6589689 (1) Subtract income that is exempt from taxation under this article
6599690 by the Constitution and statutes of the United States.
6609691 (2) Add an amount equal to any deduction or deductions allowed
6619692 or allowable pursuant to Section 170 of the Internal Revenue
6629693 Code (concerning charitable contributions).
6639694 (3) Except as provided in subsection (c), add an amount equal to
6649695 any deduction or deductions allowed or allowable pursuant to
6659696 Section 63 of the Internal Revenue Code for taxes based on or
6669697 measured by income and levied at the state level by any state of
6679698 the United States.
6689699 (4) Subtract an amount equal to the amount included in the
9700+ES 419—LS 6606/DI 120 224
6699701 corporation's taxable income under Section 78 of the Internal
670-Revenue Code (concerning foreign tax credits).
671-(5) Add or subtract the amount necessary to make the adjusted
672-gross income of any taxpayer that owns property for which bonus
673-depreciation was allowed in the current taxable year or in an
674-earlier taxable year equal to the amount of adjusted gross income
675-that would have been computed had an election not been made
676-under Section 168(k) of the Internal Revenue Code to apply bonus
677-depreciation to the property in the year that it was placed in
678-service.
679-(6) Add an amount equal to any deduction allowed under Section
680-172 of the Internal Revenue Code (concerning net operating
681-losses).
682-SEA 419 — CC 1 17
683-(7) Add or subtract the amount necessary to make the adjusted
684-gross income of any taxpayer that placed Section 179 property (as
685-defined in Section 179 of the Internal Revenue Code) in service
686-in the current taxable year or in an earlier taxable year equal to
687-the amount of adjusted gross income that would have been
688-computed had an election for federal income tax purposes not
689-been made for the year in which the property was placed in
690-service to take deductions under Section 179 of the Internal
691-Revenue Code in a total amount exceeding the sum of:
692-(A) twenty-five thousand dollars ($25,000) to the extent
693-deductions under Section 179 of the Internal Revenue Code
694-were not elected as provided in clause (B); and
695-(B) for taxable years beginning after December 31, 2017, the
696-deductions elected under Section 179 of the Internal Revenue
697-Code on property acquired in an exchange if:
698-(i) the exchange would have been eligible for
699-nonrecognition of gain or loss under Section 1031 of the
700-Internal Revenue Code in effect on January 1, 2017;
701-(ii) the exchange is not eligible for nonrecognition of gain or
702-loss under Section 1031 of the Internal Revenue Code; and
703-(iii) the taxpayer made an election to take deductions under
704-Section 179 of the Internal Revenue Code with regard to the
705-acquired property in the year that the property was placed
706-into service.
707-The amount of deductions allowable for an item of property
708-under this clause may not exceed the amount of adjusted gross
709-income realized on the property that would have been deferred
710-under the Internal Revenue Code in effect on January 1, 2017.
711-(8) Add to the extent required by IC 6-3-2-20:
712-(A) the amount of intangible expenses (as defined in
713-IC 6-3-2-20) for the taxable year that reduced the corporation's
714-taxable income (as defined in Section 63 of the Internal
715-Revenue Code) for federal income tax purposes; and
716-(B) any directly related interest expenses (as defined in
717-IC 6-3-2-20) that reduced the corporation's adjusted gross
718-income (determined without regard to this subdivision). For
719-purposes of this clause, any directly related interest expense
720-that constitutes business interest within the meaning of Section
721-163(j) of the Internal Revenue Code shall be considered to
722-have reduced the taxpayer's federal taxable income only in the
723-first taxable year in which the deduction otherwise would have
724-been allowable under Section 163 of the Internal Revenue
725-SEA 419 — CC 1 18
726-Code if the limitation under Section 163(j)(1) of the Internal
727-Revenue Code did not exist.
728-(9) Add an amount equal to any deduction for dividends paid (as
729-defined in Section 561 of the Internal Revenue Code) to
730-shareholders of a captive real estate investment trust (as defined
731-in section 34.5 of this chapter).
732-(10) Subtract income that is:
733-(A) exempt from taxation under IC 6-3-2-21.7 (certain income
734-derived from patents); and
735-(B) included in the corporation's taxable income under the
736-Internal Revenue Code.
737-(11) Add an amount equal to any income not included in gross
738-income as a result of the deferral of income arising from business
739-indebtedness discharged in connection with the reacquisition after
740-December 31, 2008, and before January 1, 2011, of an applicable
741-debt instrument, as provided in Section 108(i) of the Internal
742-Revenue Code. Subtract from the adjusted gross income of any
743-taxpayer that added an amount to adjusted gross income in a
744-previous year the amount necessary to offset the amount included
745-in federal gross income as a result of the deferral of income
746-arising from business indebtedness discharged in connection with
747-the reacquisition after December 31, 2008, and before January 1,
748-2011, of an applicable debt instrument, as provided in Section
749-108(i) of the Internal Revenue Code.
750-(12) Add the amount excluded from federal gross income under
751-Section 103 of the Internal Revenue Code for interest received on
752-an obligation of a state other than Indiana, or a political
753-subdivision of such a state, that is acquired by the taxpayer after
754-December 31, 2011. For purposes of this subdivision:
755-(A) if the taxpayer receives interest from a pass through
756-entity, a regulated investment company, a hedge fund, or
757-similar arrangement, the taxpayer will be considered to
758-have acquired the obligation on the date the entity
759-acquired the obligation;
760-(B) if ownership of the obligation occurs by means other
761-than a purchase, the date of acquisition of the obligation
762-shall be the date ownership of the obligation was
763-transferred, except to the extent provided in clause (A),
764-and if a portion of the obligation is acquired on multiple
765-dates, the date of acquisition shall be considered separately
766-for each portion of the obligation; and
767-(C) if ownership of the obligation occurred as the result of
768-SEA 419 — CC 1 19
769-a refinancing of another obligation, the acquisition date
770-shall be the date on which the obligation was refinanced.
771-(13) For taxable years beginning after December 25, 2016:
772-(A) for a corporation other than a real estate investment trust,
773-add:
774-(i) an amount equal to the amount reported by the taxpayer
775-on IRC 965 Transition Tax Statement, line 1; or
776-(ii) if the taxpayer deducted an amount under Section 965(c)
777-of the Internal Revenue Code in determining the taxpayer's
778-taxable income for purposes of the federal income tax, the
779-amount deducted under Section 965(c) of the Internal
780-Revenue Code; and
781-(B) for a real estate investment trust, add an amount equal to
782-the deduction for deferred foreign income that was claimed by
783-the taxpayer for the taxable year under Section 965(c) of the
784-Internal Revenue Code, but only to the extent that the taxpayer
785-included income pursuant to Section 965 of the Internal
786-Revenue Code in its taxable income for federal income tax
787-purposes or is required to add back dividends paid under
788-subdivision (9).
789-(14) Add an amount equal to the deduction that was claimed by
790-the taxpayer for the taxable year under Section 250(a)(1)(B) of the
791-Internal Revenue Code (attributable to global intangible
792-low-taxed income). The taxpayer shall separately specify the
793-amount of the reduction under Section 250(a)(1)(B)(i) of the
794-Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
795-Internal Revenue Code.
796-(15) Subtract any interest expense paid or accrued in the current
797-taxable year but not deducted as a result of the limitation imposed
798-under Section 163(j)(1) of the Internal Revenue Code. Add any
799-interest expense paid or accrued in a previous taxable year but
800-allowed as a deduction under Section 163 of the Internal Revenue
801-Code in the current taxable year. For purposes of this subdivision,
802-an interest expense is considered paid or accrued only in the first
803-taxable year the deduction would have been allowable under
804-Section 163 of the Internal Revenue Code if the limitation under
805-Section 163(j)(1) of the Internal Revenue Code did not exist.
806-(16) Subtract the amount that would have been excluded from
807-gross income but for the enactment of Section 118(b)(2) of the
808-Internal Revenue Code for taxable years ending after December
809-22, 2017.
810-(17) Add an amount equal to the remainder of:
811-SEA 419 — CC 1 20
812-(A) the amount allowable as a deduction under Section 274(n)
813-of the Internal Revenue Code; minus
814-(B) the amount otherwise allowable as a deduction under
815-Section 274(n) of the Internal Revenue Code, if Section
816-274(n)(2)(D) of the Internal Revenue Code was not in effect
817-for amounts paid or incurred after December 31, 2020.
818-(18) For taxable years ending after March 12, 2020, subtract an
819-amount equal to the deduction disallowed pursuant to:
820-(A) Section 2301(e) of the CARES Act (Public Law 116-136),
821-as modified by Sections 206 and 207 of the Taxpayer Certainty
822-and Disaster Relief Tax Act (Division EE of Public Law
823-116-260); and
824-(B) Section 3134(e) of the Internal Revenue Code.
825-(19) For taxable years beginning after December 31, 2022,
826-subtract an amount equal to the deduction disallowed under
827-Section 280C(h) of the Internal Revenue Code.
828-(20) For taxable years beginning after December 31, 2021,
829-subtract the amount of any:
830-(A) federal, state, or local grant received by the taxpayer;
831-and
832-(B) discharged federal, state, or local indebtedness
833-incurred by the taxpayer;
834-for purposes of providing or expanding access to broadband
835-service in this state.
836-(21) For taxable years beginning after December 31, 2021, add
837-or subtract amounts related to specified research or
838-experimental procedures as required under IC 6-3-2-29.
839-(20) (22) Add or subtract any other amounts the taxpayer is:
840-(A) required to add or subtract; or
841-(B) entitled to deduct;
842-under IC 6-3-2.
843-(c) The following apply to taxable years beginning after December
844-31, 2018, for purposes of the add back of any deduction allowed on the
845-taxpayer's federal income tax return for wagering taxes, as provided in
846-subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
847-the taxpayer is a corporation:
848-(1) For taxable years beginning after December 31, 2018, and
849-before January 1, 2020, a taxpayer is required to add back under
850-this section eighty-seven and five-tenths percent (87.5%) of any
851-deduction allowed on the taxpayer's federal income tax return for
852-wagering taxes.
853-(2) For taxable years beginning after December 31, 2019, and
854-SEA 419 — CC 1 21
855-before January 1, 2021, a taxpayer is required to add back under
856-this section seventy-five percent (75%) of any deduction allowed
857-on the taxpayer's federal income tax return for wagering taxes.
858-(3) For taxable years beginning after December 31, 2020, and
859-before January 1, 2022, a taxpayer is required to add back under
860-this section sixty-two and five-tenths percent (62.5%) of any
861-deduction allowed on the taxpayer's federal income tax return for
862-wagering taxes.
863-(4) For taxable years beginning after December 31, 2021, and
864-before January 1, 2023, a taxpayer is required to add back under
865-this section fifty percent (50%) of any deduction allowed on the
866-taxpayer's federal income tax return for wagering taxes.
867-(5) For taxable years beginning after December 31, 2022, and
868-before January 1, 2024, a taxpayer is required to add back under
869-this section thirty-seven and five-tenths percent (37.5%) of any
870-deduction allowed on the taxpayer's federal income tax return for
871-wagering taxes.
872-(6) For taxable years beginning after December 31, 2023, and
873-before January 1, 2025, a taxpayer is required to add back under
874-this section twenty-five percent (25%) of any deduction allowed
875-on the taxpayer's federal income tax return for wagering taxes.
876-(7) For taxable years beginning after December 31, 2024, and
877-before January 1, 2026, a taxpayer is required to add back under
878-this section twelve and five-tenths percent (12.5%) of any
879-deduction allowed on the taxpayer's federal income tax return for
880-wagering taxes.
881-(8) For taxable years beginning after December 31, 2025, a
882-taxpayer is not required to add back under this section any amount
883-of a deduction allowed on the taxpayer's federal income tax return
884-for wagering taxes.
885-(d) In the case of life insurance companies (as defined in Section
886-816(a) of the Internal Revenue Code) that are organized under Indiana
887-law, the same as "life insurance company taxable income" (as defined
888-in Section 801 of the Internal Revenue Code), adjusted as follows:
889-(1) Subtract income that is exempt from taxation under this article
890-by the Constitution and statutes of the United States.
891-(2) Add an amount equal to any deduction allowed or allowable
892-under Section 170 of the Internal Revenue Code (concerning
893-charitable contributions).
894-(3) Add an amount equal to a deduction allowed or allowable
895-under Section 805 or Section 832(c) of the Internal Revenue Code
896-for taxes based on or measured by income and levied at the state
897-SEA 419 — CC 1 22
898-level by any state.
899-(4) Subtract an amount equal to the amount included in the
900-company's taxable income under Section 78 of the Internal
9019702 Revenue Code (concerning foreign tax credits).
9029703 (5) Add or subtract the amount necessary to make the adjusted
9039704 gross income of any taxpayer that owns property for which bonus
9049705 depreciation was allowed in the current taxable year or in an
9059706 earlier taxable year equal to the amount of adjusted gross income
9069707 that would have been computed had an election not been made
9079708 under Section 168(k) of the Internal Revenue Code to apply bonus
9089709 depreciation to the property in the year that it was placed in
9099710 service.
9109711 (6) Add an amount equal to any deduction allowed under Section
9119712 172 of the Internal Revenue Code (concerning net operating
9129713 losses).
9139714 (7) Add or subtract the amount necessary to make the adjusted
9149715 gross income of any taxpayer that placed Section 179 property (as
9159716 defined in Section 179 of the Internal Revenue Code) in service
9169717 in the current taxable year or in an earlier taxable year equal to
9179718 the amount of adjusted gross income that would have been
9189719 computed had an election for federal income tax purposes not
9199720 been made for the year in which the property was placed in
9209721 service to take deductions under Section 179 of the Internal
9219722 Revenue Code in a total amount exceeding the sum of:
9229723 (A) twenty-five thousand dollars ($25,000) to the extent
9239724 deductions under Section 179 of the Internal Revenue Code
9249725 were not elected as provided in clause (B); and
9259726 (B) for taxable years beginning after December 31, 2017, the
9269727 deductions elected under Section 179 of the Internal Revenue
9279728 Code on property acquired in an exchange if:
9289729 (i) the exchange would have been eligible for
9299730 nonrecognition of gain or loss under Section 1031 of the
9309731 Internal Revenue Code in effect on January 1, 2017;
9319732 (ii) the exchange is not eligible for nonrecognition of gain or
9329733 loss under Section 1031 of the Internal Revenue Code; and
9339734 (iii) the taxpayer made an election to take deductions under
9349735 Section 179 of the Internal Revenue Code with regard to the
9359736 acquired property in the year that the property was placed
9369737 into service.
9379738 The amount of deductions allowable for an item of property
9389739 under this clause may not exceed the amount of adjusted gross
9399740 income realized on the property that would have been deferred
940-SEA 419 — CC 1 23
9741+under the Internal Revenue Code in effect on January 1, 2017.
9742+(8) Add to the extent required by IC 6-3-2-20:
9743+ES 419—LS 6606/DI 120 225
9744+(A) the amount of intangible expenses (as defined in
9745+IC 6-3-2-20) for the taxable year that reduced the corporation's
9746+taxable income (as defined in Section 63 of the Internal
9747+Revenue Code) for federal income tax purposes; and
9748+(B) any directly related interest expenses (as defined in
9749+IC 6-3-2-20) that reduced the corporation's adjusted gross
9750+income (determined without regard to this subdivision). For
9751+purposes of this clause, any directly related interest expense
9752+that constitutes business interest within the meaning of Section
9753+163(j) of the Internal Revenue Code shall be considered to
9754+have reduced the taxpayer's federal taxable income only in the
9755+first taxable year in which the deduction otherwise would have
9756+been allowable under Section 163 of the Internal Revenue
9757+Code if the limitation under Section 163(j)(1) of the Internal
9758+Revenue Code did not exist.
9759+(9) Add an amount equal to any deduction for dividends paid (as
9760+defined in Section 561 of the Internal Revenue Code) to
9761+shareholders of a captive real estate investment trust (as defined
9762+in section 34.5 of this chapter).
9763+(10) Subtract income that is:
9764+(A) exempt from taxation under IC 6-3-2-21.7 (certain income
9765+derived from patents); and
9766+(B) included in the corporation's taxable income under the
9767+Internal Revenue Code.
9768+(11) Add an amount equal to any income not included in gross
9769+income as a result of the deferral of income arising from business
9770+indebtedness discharged in connection with the reacquisition after
9771+December 31, 2008, and before January 1, 2011, of an applicable
9772+debt instrument, as provided in Section 108(i) of the Internal
9773+Revenue Code. Subtract from the adjusted gross income of any
9774+taxpayer that added an amount to adjusted gross income in a
9775+previous year the amount necessary to offset the amount included
9776+in federal gross income as a result of the deferral of income
9777+arising from business indebtedness discharged in connection with
9778+the reacquisition after December 31, 2008, and before January 1,
9779+2011, of an applicable debt instrument, as provided in Section
9780+108(i) of the Internal Revenue Code.
9781+(12) Add the amount excluded from federal gross income under
9782+Section 103 of the Internal Revenue Code for interest received on
9783+an obligation of a state other than Indiana, or a political
9784+subdivision of such a state, that is acquired by the taxpayer after
9785+December 31, 2011. For purposes of this subdivision:
9786+ES 419—LS 6606/DI 120 226
9787+(A) if the taxpayer receives interest from a pass through
9788+entity, a regulated investment company, a hedge fund, or
9789+similar arrangement, the taxpayer will be considered to
9790+have acquired the obligation on the date the entity
9791+acquired the obligation;
9792+(B) if ownership of the obligation occurs by means other
9793+than a purchase, the date of acquisition of the obligation
9794+shall be the date ownership of the obligation was
9795+transferred, except to the extent provided in clause (A),
9796+and if a portion of the obligation is acquired on multiple
9797+dates, the date of acquisition shall be considered separately
9798+for each portion of the obligation; and
9799+(C) if ownership of the obligation occurred as the result of
9800+a refinancing of another obligation, the acquisition date
9801+shall be the date on which the obligation was refinanced.
9802+(13) For taxable years beginning after December 25, 2016:
9803+(A) for a corporation other than a real estate investment trust,
9804+add:
9805+(i) an amount equal to the amount reported by the taxpayer
9806+on IRC 965 Transition Tax Statement, line 1; or
9807+(ii) if the taxpayer deducted an amount under Section 965(c)
9808+of the Internal Revenue Code in determining the taxpayer's
9809+taxable income for purposes of the federal income tax, the
9810+amount deducted under Section 965(c) of the Internal
9811+Revenue Code; and
9812+(B) for a real estate investment trust, add an amount equal to
9813+the deduction for deferred foreign income that was claimed by
9814+the taxpayer for the taxable year under Section 965(c) of the
9815+Internal Revenue Code, but only to the extent that the taxpayer
9816+included income pursuant to Section 965 of the Internal
9817+Revenue Code in its taxable income for federal income tax
9818+purposes or is required to add back dividends paid under
9819+subdivision (9).
9820+(14) Add an amount equal to the deduction that was claimed by
9821+the taxpayer for the taxable year under Section 250(a)(1)(B) of the
9822+Internal Revenue Code (attributable to global intangible
9823+low-taxed income). The taxpayer shall separately specify the
9824+amount of the reduction under Section 250(a)(1)(B)(i) of the
9825+Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
9826+Internal Revenue Code.
9827+(15) Subtract any interest expense paid or accrued in the current
9828+taxable year but not deducted as a result of the limitation imposed
9829+ES 419—LS 6606/DI 120 227
9830+under Section 163(j)(1) of the Internal Revenue Code. Add any
9831+interest expense paid or accrued in a previous taxable year but
9832+allowed as a deduction under Section 163 of the Internal Revenue
9833+Code in the current taxable year. For purposes of this subdivision,
9834+an interest expense is considered paid or accrued only in the first
9835+taxable year the deduction would have been allowable under
9836+Section 163 of the Internal Revenue Code if the limitation under
9837+Section 163(j)(1) of the Internal Revenue Code did not exist.
9838+(16) Subtract the amount that would have been excluded from
9839+gross income but for the enactment of Section 118(b)(2) of the
9840+Internal Revenue Code for taxable years ending after December
9841+22, 2017.
9842+(17) Add an amount equal to the remainder of:
9843+(A) the amount allowable as a deduction under Section 274(n)
9844+of the Internal Revenue Code; minus
9845+(B) the amount otherwise allowable as a deduction under
9846+Section 274(n) of the Internal Revenue Code, if Section
9847+274(n)(2)(D) of the Internal Revenue Code was not in effect
9848+for amounts paid or incurred after December 31, 2020.
9849+(18) For taxable years ending after March 12, 2020, subtract an
9850+amount equal to the deduction disallowed pursuant to:
9851+(A) Section 2301(e) of the CARES Act (Public Law 116-136),
9852+as modified by Sections 206 and 207 of the Taxpayer Certainty
9853+and Disaster Relief Tax Act (Division EE of Public Law
9854+116-260); and
9855+(B) Section 3134(e) of the Internal Revenue Code.
9856+(19) For taxable years beginning after December 31, 2022,
9857+subtract an amount equal to the deduction disallowed under
9858+Section 280C(h) of the Internal Revenue Code.
9859+(20) For taxable years beginning after December 31, 2021,
9860+subtract the amount of any:
9861+(A) federal, state, or local grant received by the taxpayer;
9862+and
9863+(B) discharged federal, state, or local indebtedness
9864+incurred by the taxpayer;
9865+for purposes of providing or expanding access to broadband
9866+service in this state.
9867+(21) For taxable years beginning after December 31, 2021, add
9868+or subtract amounts related to specified research or
9869+experimental procedures as required under IC 6-3-2-29.
9870+(20) (22) Add or subtract any other amounts the taxpayer is:
9871+(A) required to add or subtract; or
9872+ES 419—LS 6606/DI 120 228
9873+(B) entitled to deduct;
9874+under IC 6-3-2.
9875+(c) The following apply to taxable years beginning after December
9876+31, 2018, for purposes of the add back of any deduction allowed on the
9877+taxpayer's federal income tax return for wagering taxes, as provided in
9878+subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
9879+the taxpayer is a corporation:
9880+(1) For taxable years beginning after December 31, 2018, and
9881+before January 1, 2020, a taxpayer is required to add back under
9882+this section eighty-seven and five-tenths percent (87.5%) of any
9883+deduction allowed on the taxpayer's federal income tax return for
9884+wagering taxes.
9885+(2) For taxable years beginning after December 31, 2019, and
9886+before January 1, 2021, a taxpayer is required to add back under
9887+this section seventy-five percent (75%) of any deduction allowed
9888+on the taxpayer's federal income tax return for wagering taxes.
9889+(3) For taxable years beginning after December 31, 2020, and
9890+before January 1, 2022, a taxpayer is required to add back under
9891+this section sixty-two and five-tenths percent (62.5%) of any
9892+deduction allowed on the taxpayer's federal income tax return for
9893+wagering taxes.
9894+(4) For taxable years beginning after December 31, 2021, and
9895+before January 1, 2023, a taxpayer is required to add back under
9896+this section fifty percent (50%) of any deduction allowed on the
9897+taxpayer's federal income tax return for wagering taxes.
9898+(5) For taxable years beginning after December 31, 2022, and
9899+before January 1, 2024, a taxpayer is required to add back under
9900+this section thirty-seven and five-tenths percent (37.5%) of any
9901+deduction allowed on the taxpayer's federal income tax return for
9902+wagering taxes.
9903+(6) For taxable years beginning after December 31, 2023, and
9904+before January 1, 2025, a taxpayer is required to add back under
9905+this section twenty-five percent (25%) of any deduction allowed
9906+on the taxpayer's federal income tax return for wagering taxes.
9907+(7) For taxable years beginning after December 31, 2024, and
9908+before January 1, 2026, a taxpayer is required to add back under
9909+this section twelve and five-tenths percent (12.5%) of any
9910+deduction allowed on the taxpayer's federal income tax return for
9911+wagering taxes.
9912+(8) For taxable years beginning after December 31, 2025, a
9913+taxpayer is not required to add back under this section any amount
9914+of a deduction allowed on the taxpayer's federal income tax return
9915+ES 419—LS 6606/DI 120 229
9916+for wagering taxes.
9917+(d) In the case of life insurance companies (as defined in Section
9918+816(a) of the Internal Revenue Code) that are organized under Indiana
9919+law, the same as "life insurance company taxable income" (as defined
9920+in Section 801 of the Internal Revenue Code), adjusted as follows:
9921+(1) Subtract income that is exempt from taxation under this article
9922+by the Constitution and statutes of the United States.
9923+(2) Add an amount equal to any deduction allowed or allowable
9924+under Section 170 of the Internal Revenue Code (concerning
9925+charitable contributions).
9926+(3) Add an amount equal to a deduction allowed or allowable
9927+under Section 805 or Section 832(c) of the Internal Revenue Code
9928+for taxes based on or measured by income and levied at the state
9929+level by any state.
9930+(4) Subtract an amount equal to the amount included in the
9931+company's taxable income under Section 78 of the Internal
9932+Revenue Code (concerning foreign tax credits).
9933+(5) Add or subtract the amount necessary to make the adjusted
9934+gross income of any taxpayer that owns property for which bonus
9935+depreciation was allowed in the current taxable year or in an
9936+earlier taxable year equal to the amount of adjusted gross income
9937+that would have been computed had an election not been made
9938+under Section 168(k) of the Internal Revenue Code to apply bonus
9939+depreciation to the property in the year that it was placed in
9940+service.
9941+(6) Add an amount equal to any deduction allowed under Section
9942+172 of the Internal Revenue Code (concerning net operating
9943+losses).
9944+(7) Add or subtract the amount necessary to make the adjusted
9945+gross income of any taxpayer that placed Section 179 property (as
9946+defined in Section 179 of the Internal Revenue Code) in service
9947+in the current taxable year or in an earlier taxable year equal to
9948+the amount of adjusted gross income that would have been
9949+computed had an election for federal income tax purposes not
9950+been made for the year in which the property was placed in
9951+service to take deductions under Section 179 of the Internal
9952+Revenue Code in a total amount exceeding the sum of:
9953+(A) twenty-five thousand dollars ($25,000) to the extent
9954+deductions under Section 179 of the Internal Revenue Code
9955+were not elected as provided in clause (B); and
9956+(B) for taxable years beginning after December 31, 2017, the
9957+deductions elected under Section 179 of the Internal Revenue
9958+ES 419—LS 6606/DI 120 230
9959+Code on property acquired in an exchange if:
9960+(i) the exchange would have been eligible for
9961+nonrecognition of gain or loss under Section 1031 of the
9962+Internal Revenue Code in effect on January 1, 2017;
9963+(ii) the exchange is not eligible for nonrecognition of gain or
9964+loss under Section 1031 of the Internal Revenue Code; and
9965+(iii) the taxpayer made an election to take deductions under
9966+Section 179 of the Internal Revenue Code with regard to the
9967+acquired property in the year that the property was placed
9968+into service.
9969+The amount of deductions allowable for an item of property
9970+under this clause may not exceed the amount of adjusted gross
9971+income realized on the property that would have been deferred
9419972 under the Internal Revenue Code in effect on January 1, 2017.
9429973 (8) Subtract income that is:
9439974 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
9449975 derived from patents); and
9459976 (B) included in the insurance company's taxable income under
9977+the Internal Revenue Code.
9978+(9) Add an amount equal to any income not included in gross
9979+income as a result of the deferral of income arising from business
9980+indebtedness discharged in connection with the reacquisition after
9981+December 31, 2008, and before January 1, 2011, of an applicable
9982+debt instrument, as provided in Section 108(i) of the Internal
9983+Revenue Code. Subtract from the adjusted gross income of any
9984+taxpayer that added an amount to adjusted gross income in a
9985+previous year the amount necessary to offset the amount included
9986+in federal gross income as a result of the deferral of income
9987+arising from business indebtedness discharged in connection with
9988+the reacquisition after December 31, 2008, and before January 1,
9989+2011, of an applicable debt instrument, as provided in Section
9990+108(i) of the Internal Revenue Code.
9991+(10) Add an amount equal to any exempt insurance income under
9992+Section 953(e) of the Internal Revenue Code that is active
9993+financing income under Subpart F of Subtitle A, Chapter 1,
9994+Subchapter N of the Internal Revenue Code.
9995+(11) Add the amount excluded from federal gross income under
9996+Section 103 of the Internal Revenue Code for interest received on
9997+an obligation of a state other than Indiana, or a political
9998+subdivision of such a state, that is acquired by the taxpayer after
9999+December 31, 2011. For purposes of this subdivision:
10000+(A) if the taxpayer receives interest from a pass through
10001+ES 419—LS 6606/DI 120 231
10002+entity, a regulated investment company, a hedge fund, or
10003+similar arrangement, the taxpayer will be considered to
10004+have acquired the obligation on the date the entity
10005+acquired the obligation;
10006+(B) if ownership of the obligation occurs by means other
10007+than a purchase, the date of acquisition of the obligation
10008+shall be the date ownership of the obligation was
10009+transferred, except to the extent provided in clause (A),
10010+and if a portion of the obligation is acquired on multiple
10011+dates, the date of acquisition shall be considered separately
10012+for each portion of the obligation; and
10013+(C) if ownership of the obligation occurred as the result of
10014+a refinancing of another obligation, the acquisition date
10015+shall be the date on which the obligation was refinanced.
10016+(12) For taxable years beginning after December 25, 2016, add:
10017+(A) an amount equal to the amount reported by the taxpayer on
10018+IRC 965 Transition Tax Statement, line 1; or
10019+(B) if the taxpayer deducted an amount under Section 965(c)
10020+of the Internal Revenue Code in determining the taxpayer's
10021+taxable income for purposes of the federal income tax, the
10022+amount deducted under Section 965(c) of the Internal Revenue
10023+Code.
10024+(13) Add an amount equal to the deduction that was claimed by
10025+the taxpayer for the taxable year under Section 250(a)(1)(B) of the
10026+Internal Revenue Code (attributable to global intangible
10027+low-taxed income). The taxpayer shall separately specify the
10028+amount of the reduction under Section 250(a)(1)(B)(i) of the
10029+Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
10030+Internal Revenue Code.
10031+(14) Subtract any interest expense paid or accrued in the current
10032+taxable year but not deducted as a result of the limitation imposed
10033+under Section 163(j)(1) of the Internal Revenue Code. Add any
10034+interest expense paid or accrued in a previous taxable year but
10035+allowed as a deduction under Section 163 of the Internal Revenue
10036+Code in the current taxable year. For purposes of this subdivision,
10037+an interest expense is considered paid or accrued only in the first
10038+taxable year the deduction would have been allowable under
10039+Section 163 of the Internal Revenue Code if the limitation under
10040+Section 163(j)(1) of the Internal Revenue Code did not exist.
10041+(15) Subtract the amount that would have been excluded from
10042+gross income but for the enactment of Section 118(b)(2) of the
10043+Internal Revenue Code for taxable years ending after December
10044+ES 419—LS 6606/DI 120 232
10045+22, 2017.
10046+(16) Add an amount equal to the remainder of:
10047+(A) the amount allowable as a deduction under Section 274(n)
10048+of the Internal Revenue Code; minus
10049+(B) the amount otherwise allowable as a deduction under
10050+Section 274(n) of the Internal Revenue Code, if Section
10051+274(n)(2)(D) of the Internal Revenue Code was not in effect
10052+for amounts paid or incurred after December 31, 2020.
10053+(17) For taxable years ending after March 12, 2020, subtract an
10054+amount equal to the deduction disallowed pursuant to:
10055+(A) Section 2301(e) of the CARES Act (Public Law 116-136),
10056+as modified by Sections 206 and 207 of the Taxpayer Certainty
10057+and Disaster Relief Tax Act (Division EE of Public Law
10058+116-260); and
10059+(B) Section 3134(e) of the Internal Revenue Code.
10060+(18) For taxable years beginning after December 31, 2022,
10061+subtract an amount equal to the deduction disallowed under
10062+Section 280C(h) of the Internal Revenue Code.
10063+(19) For taxable years beginning after December 31, 2021, add
10064+or subtract amounts related to specified research or
10065+experimental procedures as required under IC 6-3-2-29.
10066+(19) (20) Add or subtract any other amounts the taxpayer is:
10067+(A) required to add or subtract; or
10068+(B) entitled to deduct;
10069+under IC 6-3-2.
10070+(e) In the case of insurance companies subject to tax under Section
10071+831 of the Internal Revenue Code and organized under Indiana law, the
10072+same as "taxable income" (as defined in Section 832 of the Internal
10073+Revenue Code), adjusted as follows:
10074+(1) Subtract income that is exempt from taxation under this article
10075+by the Constitution and statutes of the United States.
10076+(2) Add an amount equal to any deduction allowed or allowable
10077+under Section 170 of the Internal Revenue Code (concerning
10078+charitable contributions).
10079+(3) Add an amount equal to a deduction allowed or allowable
10080+under Section 805 or Section 832(c) of the Internal Revenue Code
10081+for taxes based on or measured by income and levied at the state
10082+level by any state.
10083+(4) Subtract an amount equal to the amount included in the
10084+company's taxable income under Section 78 of the Internal
10085+Revenue Code (concerning foreign tax credits).
10086+(5) Add or subtract the amount necessary to make the adjusted
10087+ES 419—LS 6606/DI 120 233
10088+gross income of any taxpayer that owns property for which bonus
10089+depreciation was allowed in the current taxable year or in an
10090+earlier taxable year equal to the amount of adjusted gross income
10091+that would have been computed had an election not been made
10092+under Section 168(k) of the Internal Revenue Code to apply bonus
10093+depreciation to the property in the year that it was placed in
10094+service.
10095+(6) Add an amount equal to any deduction allowed under Section
10096+172 of the Internal Revenue Code (concerning net operating
10097+losses).
10098+(7) Add or subtract the amount necessary to make the adjusted
10099+gross income of any taxpayer that placed Section 179 property (as
10100+defined in Section 179 of the Internal Revenue Code) in service
10101+in the current taxable year or in an earlier taxable year equal to
10102+the amount of adjusted gross income that would have been
10103+computed had an election for federal income tax purposes not
10104+been made for the year in which the property was placed in
10105+service to take deductions under Section 179 of the Internal
10106+Revenue Code in a total amount exceeding the sum of:
10107+(A) twenty-five thousand dollars ($25,000) to the extent
10108+deductions under Section 179 of the Internal Revenue Code
10109+were not elected as provided in clause (B); and
10110+(B) for taxable years beginning after December 31, 2017, the
10111+deductions elected under Section 179 of the Internal Revenue
10112+Code on property acquired in an exchange if:
10113+(i) the exchange would have been eligible for
10114+nonrecognition of gain or loss under Section 1031 of the
10115+Internal Revenue Code in effect on January 1, 2017;
10116+(ii) the exchange is not eligible for nonrecognition of gain or
10117+loss under Section 1031 of the Internal Revenue Code; and
10118+(iii) the taxpayer made an election to take deductions under
10119+Section 179 of the Internal Revenue Code with regard to the
10120+acquired property in the year that the property was placed
10121+into service.
10122+The amount of deductions allowable for an item of property
10123+under this clause may not exceed the amount of adjusted gross
10124+income realized on the property that would have been deferred
10125+under the Internal Revenue Code in effect on January 1, 2017.
10126+(8) Subtract income that is:
10127+(A) exempt from taxation under IC 6-3-2-21.7 (certain income
10128+derived from patents); and
10129+(B) included in the insurance company's taxable income under
10130+ES 419—LS 6606/DI 120 234
94610131 the Internal Revenue Code.
94710132 (9) Add an amount equal to any income not included in gross
94810133 income as a result of the deferral of income arising from business
94910134 indebtedness discharged in connection with the reacquisition after
95010135 December 31, 2008, and before January 1, 2011, of an applicable
95110136 debt instrument, as provided in Section 108(i) of the Internal
95210137 Revenue Code. Subtract from the adjusted gross income of any
95310138 taxpayer that added an amount to adjusted gross income in a
95410139 previous year the amount necessary to offset the amount included
95510140 in federal gross income as a result of the deferral of income
95610141 arising from business indebtedness discharged in connection with
95710142 the reacquisition after December 31, 2008, and before January 1,
95810143 2011, of an applicable debt instrument, as provided in Section
95910144 108(i) of the Internal Revenue Code.
96010145 (10) Add an amount equal to any exempt insurance income under
96110146 Section 953(e) of the Internal Revenue Code that is active
96210147 financing income under Subpart F of Subtitle A, Chapter 1,
96310148 Subchapter N of the Internal Revenue Code.
96410149 (11) Add the amount excluded from federal gross income under
96510150 Section 103 of the Internal Revenue Code for interest received on
96610151 an obligation of a state other than Indiana, or a political
96710152 subdivision of such a state, that is acquired by the taxpayer after
96810153 December 31, 2011. For purposes of this subdivision:
96910154 (A) if the taxpayer receives interest from a pass through
97010155 entity, a regulated investment company, a hedge fund, or
97110156 similar arrangement, the taxpayer will be considered to
97210157 have acquired the obligation on the date the entity
97310158 acquired the obligation;
97410159 (B) if ownership of the obligation occurs by means other
97510160 than a purchase, the date of acquisition of the obligation
97610161 shall be the date ownership of the obligation was
97710162 transferred, except to the extent provided in clause (A),
97810163 and if a portion of the obligation is acquired on multiple
97910164 dates, the date of acquisition shall be considered separately
98010165 for each portion of the obligation; and
98110166 (C) if ownership of the obligation occurred as the result of
98210167 a refinancing of another obligation, the acquisition date
983-SEA 419 — CC 1 24
98410168 shall be the date on which the obligation was refinanced.
98510169 (12) For taxable years beginning after December 25, 2016, add:
98610170 (A) an amount equal to the amount reported by the taxpayer on
98710171 IRC 965 Transition Tax Statement, line 1; or
98810172 (B) if the taxpayer deducted an amount under Section 965(c)
10173+ES 419—LS 6606/DI 120 235
98910174 of the Internal Revenue Code in determining the taxpayer's
99010175 taxable income for purposes of the federal income tax, the
99110176 amount deducted under Section 965(c) of the Internal Revenue
99210177 Code.
99310178 (13) Add an amount equal to the deduction that was claimed by
99410179 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
99510180 Internal Revenue Code (attributable to global intangible
99610181 low-taxed income). The taxpayer shall separately specify the
99710182 amount of the reduction under Section 250(a)(1)(B)(i) of the
99810183 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
99910184 Internal Revenue Code.
100010185 (14) Subtract any interest expense paid or accrued in the current
100110186 taxable year but not deducted as a result of the limitation imposed
100210187 under Section 163(j)(1) of the Internal Revenue Code. Add any
100310188 interest expense paid or accrued in a previous taxable year but
100410189 allowed as a deduction under Section 163 of the Internal Revenue
100510190 Code in the current taxable year. For purposes of this subdivision,
100610191 an interest expense is considered paid or accrued only in the first
100710192 taxable year the deduction would have been allowable under
100810193 Section 163 of the Internal Revenue Code if the limitation under
100910194 Section 163(j)(1) of the Internal Revenue Code did not exist.
101010195 (15) Subtract the amount that would have been excluded from
101110196 gross income but for the enactment of Section 118(b)(2) of the
101210197 Internal Revenue Code for taxable years ending after December
101310198 22, 2017.
101410199 (16) Add an amount equal to the remainder of:
101510200 (A) the amount allowable as a deduction under Section 274(n)
101610201 of the Internal Revenue Code; minus
101710202 (B) the amount otherwise allowable as a deduction under
101810203 Section 274(n) of the Internal Revenue Code, if Section
101910204 274(n)(2)(D) of the Internal Revenue Code was not in effect
102010205 for amounts paid or incurred after December 31, 2020.
102110206 (17) For taxable years ending after March 12, 2020, subtract an
102210207 amount equal to the deduction disallowed pursuant to:
102310208 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
102410209 as modified by Sections 206 and 207 of the Taxpayer Certainty
102510210 and Disaster Relief Tax Act (Division EE of Public Law
1026-SEA 419 — CC 1 25
102710211 116-260); and
102810212 (B) Section 3134(e) of the Internal Revenue Code.
102910213 (18) For taxable years beginning after December 31, 2022,
103010214 subtract an amount equal to the deduction disallowed under
103110215 Section 280C(h) of the Internal Revenue Code.
1032-(19) For taxable years beginning after December 31, 2021, add
1033-or subtract amounts related to specified research or
1034-experimental procedures as required under IC 6-3-2-29.
1035-(19) (20) Add or subtract any other amounts the taxpayer is:
1036-(A) required to add or subtract; or
1037-(B) entitled to deduct;
1038-under IC 6-3-2.
1039-(e) In the case of insurance companies subject to tax under Section
1040-831 of the Internal Revenue Code and organized under Indiana law, the
1041-same as "taxable income" (as defined in Section 832 of the Internal
1042-Revenue Code), adjusted as follows:
1043-(1) Subtract income that is exempt from taxation under this article
1044-by the Constitution and statutes of the United States.
1045-(2) Add an amount equal to any deduction allowed or allowable
1046-under Section 170 of the Internal Revenue Code (concerning
1047-charitable contributions).
1048-(3) Add an amount equal to a deduction allowed or allowable
1049-under Section 805 or Section 832(c) of the Internal Revenue Code
1050-for taxes based on or measured by income and levied at the state
1051-level by any state.
1052-(4) Subtract an amount equal to the amount included in the
1053-company's taxable income under Section 78 of the Internal
1054-Revenue Code (concerning foreign tax credits).
1055-(5) Add or subtract the amount necessary to make the adjusted
1056-gross income of any taxpayer that owns property for which bonus
1057-depreciation was allowed in the current taxable year or in an
1058-earlier taxable year equal to the amount of adjusted gross income
1059-that would have been computed had an election not been made
1060-under Section 168(k) of the Internal Revenue Code to apply bonus
1061-depreciation to the property in the year that it was placed in
1062-service.
1063-(6) Add an amount equal to any deduction allowed under Section
1064-172 of the Internal Revenue Code (concerning net operating
1065-losses).
1066-(7) Add or subtract the amount necessary to make the adjusted
1067-gross income of any taxpayer that placed Section 179 property (as
1068-defined in Section 179 of the Internal Revenue Code) in service
1069-SEA 419 — CC 1 26
1070-in the current taxable year or in an earlier taxable year equal to
1071-the amount of adjusted gross income that would have been
1072-computed had an election for federal income tax purposes not
1073-been made for the year in which the property was placed in
1074-service to take deductions under Section 179 of the Internal
1075-Revenue Code in a total amount exceeding the sum of:
1076-(A) twenty-five thousand dollars ($25,000) to the extent
1077-deductions under Section 179 of the Internal Revenue Code
1078-were not elected as provided in clause (B); and
1079-(B) for taxable years beginning after December 31, 2017, the
1080-deductions elected under Section 179 of the Internal Revenue
1081-Code on property acquired in an exchange if:
1082-(i) the exchange would have been eligible for
1083-nonrecognition of gain or loss under Section 1031 of the
1084-Internal Revenue Code in effect on January 1, 2017;
1085-(ii) the exchange is not eligible for nonrecognition of gain or
1086-loss under Section 1031 of the Internal Revenue Code; and
1087-(iii) the taxpayer made an election to take deductions under
1088-Section 179 of the Internal Revenue Code with regard to the
1089-acquired property in the year that the property was placed
1090-into service.
1091-The amount of deductions allowable for an item of property
1092-under this clause may not exceed the amount of adjusted gross
1093-income realized on the property that would have been deferred
1094-under the Internal Revenue Code in effect on January 1, 2017.
1095-(8) Subtract income that is:
1096-(A) exempt from taxation under IC 6-3-2-21.7 (certain income
1097-derived from patents); and
1098-(B) included in the insurance company's taxable income under
1099-the Internal Revenue Code.
1100-(9) Add an amount equal to any income not included in gross
1101-income as a result of the deferral of income arising from business
1102-indebtedness discharged in connection with the reacquisition after
1103-December 31, 2008, and before January 1, 2011, of an applicable
1104-debt instrument, as provided in Section 108(i) of the Internal
1105-Revenue Code. Subtract from the adjusted gross income of any
1106-taxpayer that added an amount to adjusted gross income in a
1107-previous year the amount necessary to offset the amount included
1108-in federal gross income as a result of the deferral of income
1109-arising from business indebtedness discharged in connection with
1110-the reacquisition after December 31, 2008, and before January 1,
1111-2011, of an applicable debt instrument, as provided in Section
1112-SEA 419 — CC 1 27
1113-108(i) of the Internal Revenue Code.
1114-(10) Add an amount equal to any exempt insurance income under
1115-Section 953(e) of the Internal Revenue Code that is active
1116-financing income under Subpart F of Subtitle A, Chapter 1,
1117-Subchapter N of the Internal Revenue Code.
1118-(11) Add the amount excluded from federal gross income under
1119-Section 103 of the Internal Revenue Code for interest received on
1120-an obligation of a state other than Indiana, or a political
1121-subdivision of such a state, that is acquired by the taxpayer after
1122-December 31, 2011. For purposes of this subdivision:
1123-(A) if the taxpayer receives interest from a pass through
1124-entity, a regulated investment company, a hedge fund, or
1125-similar arrangement, the taxpayer will be considered to
1126-have acquired the obligation on the date the entity
1127-acquired the obligation;
1128-(B) if ownership of the obligation occurs by means other
1129-than a purchase, the date of acquisition of the obligation
1130-shall be the date ownership of the obligation was
1131-transferred, except to the extent provided in clause (A),
1132-and if a portion of the obligation is acquired on multiple
1133-dates, the date of acquisition shall be considered separately
1134-for each portion of the obligation; and
1135-(C) if ownership of the obligation occurred as the result of
1136-a refinancing of another obligation, the acquisition date
1137-shall be the date on which the obligation was refinanced.
1138-(12) For taxable years beginning after December 25, 2016, add:
1139-(A) an amount equal to the amount reported by the taxpayer on
1140-IRC 965 Transition Tax Statement, line 1; or
1141-(B) if the taxpayer deducted an amount under Section 965(c)
1142-of the Internal Revenue Code in determining the taxpayer's
1143-taxable income for purposes of the federal income tax, the
1144-amount deducted under Section 965(c) of the Internal Revenue
1145-Code.
1146-(13) Add an amount equal to the deduction that was claimed by
1147-the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1148-Internal Revenue Code (attributable to global intangible
1149-low-taxed income). The taxpayer shall separately specify the
1150-amount of the reduction under Section 250(a)(1)(B)(i) of the
1151-Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1152-Internal Revenue Code.
1153-(14) Subtract any interest expense paid or accrued in the current
1154-taxable year but not deducted as a result of the limitation imposed
1155-SEA 419 — CC 1 28
1156-under Section 163(j)(1) of the Internal Revenue Code. Add any
1157-interest expense paid or accrued in a previous taxable year but
1158-allowed as a deduction under Section 163 of the Internal Revenue
1159-Code in the current taxable year. For purposes of this subdivision,
1160-an interest expense is considered paid or accrued only in the first
1161-taxable year the deduction would have been allowable under
1162-Section 163 of the Internal Revenue Code if the limitation under
1163-Section 163(j)(1) of the Internal Revenue Code did not exist.
1164-(15) Subtract the amount that would have been excluded from
1165-gross income but for the enactment of Section 118(b)(2) of the
1166-Internal Revenue Code for taxable years ending after December
1167-22, 2017.
1168-(16) Add an amount equal to the remainder of:
1169-(A) the amount allowable as a deduction under Section 274(n)
1170-of the Internal Revenue Code; minus
1171-(B) the amount otherwise allowable as a deduction under
1172-Section 274(n) of the Internal Revenue Code, if Section
1173-274(n)(2)(D) of the Internal Revenue Code was not in effect
1174-for amounts paid or incurred after December 31, 2020.
1175-(17) For taxable years ending after March 12, 2020, subtract an
1176-amount equal to the deduction disallowed pursuant to:
1177-(A) Section 2301(e) of the CARES Act (Public Law 116-136),
1178-as modified by Sections 206 and 207 of the Taxpayer Certainty
1179-and Disaster Relief Tax Act (Division EE of Public Law
1180-116-260); and
1181-(B) Section 3134(e) of the Internal Revenue Code.
1182-(18) For taxable years beginning after December 31, 2022,
1183-subtract an amount equal to the deduction disallowed under
1184-Section 280C(h) of the Internal Revenue Code.
10216+ES 419—LS 6606/DI 120 236
118510217 (19) For taxable years beginning after December 31, 2021, add
118610218 or subtract amounts related to specified research or
118710219 experimental procedures as required under IC 6-3-2-29.
118810220 (19) (20) Add or subtract any other amounts the taxpayer is:
118910221 (A) required to add or subtract; or
119010222 (B) entitled to deduct;
119110223 under IC 6-3-2.
119210224 (f) In the case of trusts and estates, "taxable income" (as defined for
119310225 trusts and estates in Section 641(b) of the Internal Revenue Code)
119410226 adjusted as follows:
119510227 (1) Subtract income that is exempt from taxation under this article
119610228 by the Constitution and statutes of the United States.
119710229 (2) Subtract an amount equal to the amount of a September 11
1198-SEA 419 — CC 1 29
119910230 terrorist attack settlement payment included in the federal
120010231 adjusted gross income of the estate of a victim of the September
120110232 11 terrorist attack or a trust to the extent the trust benefits a victim
120210233 of the September 11 terrorist attack.
120310234 (3) Add or subtract the amount necessary to make the adjusted
120410235 gross income of any taxpayer that owns property for which bonus
120510236 depreciation was allowed in the current taxable year or in an
120610237 earlier taxable year equal to the amount of adjusted gross income
120710238 that would have been computed had an election not been made
120810239 under Section 168(k) of the Internal Revenue Code to apply bonus
120910240 depreciation to the property in the year that it was placed in
121010241 service.
121110242 (4) Add an amount equal to any deduction allowed under Section
121210243 172 of the Internal Revenue Code (concerning net operating
121310244 losses).
121410245 (5) Add or subtract the amount necessary to make the adjusted
121510246 gross income of any taxpayer that placed Section 179 property (as
121610247 defined in Section 179 of the Internal Revenue Code) in service
121710248 in the current taxable year or in an earlier taxable year equal to
121810249 the amount of adjusted gross income that would have been
121910250 computed had an election for federal income tax purposes not
122010251 been made for the year in which the property was placed in
122110252 service to take deductions under Section 179 of the Internal
122210253 Revenue Code in a total amount exceeding the sum of:
122310254 (A) twenty-five thousand dollars ($25,000) to the extent
122410255 deductions under Section 179 of the Internal Revenue Code
122510256 were not elected as provided in clause (B); and
122610257 (B) for taxable years beginning after December 31, 2017, the
122710258 deductions elected under Section 179 of the Internal Revenue
10259+ES 419—LS 6606/DI 120 237
122810260 Code on property acquired in an exchange if:
122910261 (i) the exchange would have been eligible for
123010262 nonrecognition of gain or loss under Section 1031 of the
123110263 Internal Revenue Code in effect on January 1, 2017;
123210264 (ii) the exchange is not eligible for nonrecognition of gain or
123310265 loss under Section 1031 of the Internal Revenue Code; and
123410266 (iii) the taxpayer made an election to take deductions under
123510267 Section 179 of the Internal Revenue Code with regard to the
123610268 acquired property in the year that the property was placed
123710269 into service.
123810270 The amount of deductions allowable for an item of property
123910271 under this clause may not exceed the amount of adjusted gross
124010272 income realized on the property that would have been deferred
1241-SEA 419 — CC 1 30
124210273 under the Internal Revenue Code in effect on January 1, 2017.
124310274 (6) Subtract income that is:
124410275 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
124510276 derived from patents); and
124610277 (B) included in the taxpayer's taxable income under the
124710278 Internal Revenue Code.
124810279 (7) Add an amount equal to any income not included in gross
124910280 income as a result of the deferral of income arising from business
125010281 indebtedness discharged in connection with the reacquisition after
125110282 December 31, 2008, and before January 1, 2011, of an applicable
125210283 debt instrument, as provided in Section 108(i) of the Internal
125310284 Revenue Code. Subtract from the adjusted gross income of any
125410285 taxpayer that added an amount to adjusted gross income in a
125510286 previous year the amount necessary to offset the amount included
125610287 in federal gross income as a result of the deferral of income
125710288 arising from business indebtedness discharged in connection with
125810289 the reacquisition after December 31, 2008, and before January 1,
125910290 2011, of an applicable debt instrument, as provided in Section
126010291 108(i) of the Internal Revenue Code.
126110292 (8) Add the amount excluded from federal gross income under
126210293 Section 103 of the Internal Revenue Code for interest received on
126310294 an obligation of a state other than Indiana, or a political
126410295 subdivision of such a state, that is acquired by the taxpayer after
126510296 December 31, 2011. For purposes of this subdivision:
126610297 (A) if the taxpayer receives interest from a pass through
126710298 entity, a regulated investment company, a hedge fund, or
126810299 similar arrangement, the taxpayer will be considered to
126910300 have acquired the obligation on the date the entity
127010301 acquired the obligation;
10302+ES 419—LS 6606/DI 120 238
127110303 (B) if ownership of the obligation occurs by means other
127210304 than a purchase, the date of acquisition of the obligation
127310305 shall be the date ownership of the obligation was
127410306 transferred, except to the extent provided in clause (A),
127510307 and if a portion of the obligation is acquired on multiple
127610308 dates, the date of acquisition shall be considered separately
127710309 for each portion of the obligation; and
127810310 (C) if ownership of the obligation occurred as the result of
127910311 a refinancing of another obligation, the acquisition date
128010312 shall be the date on which the obligation was refinanced.
128110313 (9) For taxable years beginning after December 25, 2016, add an
128210314 amount equal to:
128310315 (A) the amount reported by the taxpayer on IRC 965
1284-SEA 419 — CC 1 31
128510316 Transition Tax Statement, line 1;
128610317 (B) if the taxpayer deducted an amount under Section 965(c)
128710318 of the Internal Revenue Code in determining the taxpayer's
128810319 taxable income for purposes of the federal income tax, the
128910320 amount deducted under Section 965(c) of the Internal Revenue
129010321 Code; and
129110322 (C) with regard to any amounts of income under Section 965
129210323 of the Internal Revenue Code distributed by the taxpayer, the
129310324 deduction under Section 965(c) of the Internal Revenue Code
129410325 attributable to such distributed amounts and not reported to the
129510326 beneficiary.
129610327 For purposes of this article, the amount required to be added back
129710328 under clause (B) is not considered to be distributed or
129810329 distributable to a beneficiary of the estate or trust for purposes of
129910330 Sections 651 and 661 of the Internal Revenue Code.
130010331 (10) Subtract any interest expense paid or accrued in the current
130110332 taxable year but not deducted as a result of the limitation imposed
130210333 under Section 163(j)(1) of the Internal Revenue Code. Add any
130310334 interest expense paid or accrued in a previous taxable year but
130410335 allowed as a deduction under Section 163 of the Internal Revenue
130510336 Code in the current taxable year. For purposes of this subdivision,
130610337 an interest expense is considered paid or accrued only in the first
130710338 taxable year the deduction would have been allowable under
130810339 Section 163 of the Internal Revenue Code if the limitation under
130910340 Section 163(j)(1) of the Internal Revenue Code did not exist.
131010341 (11) Add an amount equal to the deduction for qualified business
131110342 income that was claimed by the taxpayer for the taxable year
131210343 under Section 199A of the Internal Revenue Code.
131310344 (12) Subtract the amount that would have been excluded from
10345+ES 419—LS 6606/DI 120 239
131410346 gross income but for the enactment of Section 118(b)(2) of the
131510347 Internal Revenue Code for taxable years ending after December
131610348 22, 2017.
131710349 (13) Add an amount equal to the remainder of:
131810350 (A) the amount allowable as a deduction under Section 274(n)
131910351 of the Internal Revenue Code; minus
132010352 (B) the amount otherwise allowable as a deduction under
132110353 Section 274(n) of the Internal Revenue Code, if Section
132210354 274(n)(2)(D) of the Internal Revenue Code was not in effect
132310355 for amounts paid or incurred after December 31, 2020.
132410356 (14) For taxable years beginning after December 31, 2017, and
132510357 before January 1, 2021, add an amount equal to the excess
132610358 business loss of the taxpayer as defined in Section 461(l)(3) of the
1327-SEA 419 — CC 1 32
132810359 Internal Revenue Code. In addition:
132910360 (A) If a taxpayer has an excess business loss under this
133010361 subdivision and also has modifications under subdivisions (3)
133110362 and (5) for property placed in service during the taxable year,
133210363 the taxpayer shall treat a portion of the taxable year
133310364 modifications for that property as occurring in the taxable year
133410365 the property is placed in service and a portion of the
133510366 modifications as occurring in the immediately following
133610367 taxable year.
133710368 (B) The portion of the modifications under subdivisions (3)
133810369 and (5) for property placed in service during the taxable year
133910370 treated as occurring in the taxable year in which the property
134010371 is placed in service equals:
134110372 (i) the modification for the property otherwise determined
134210373 under this section; minus
134310374 (ii) the excess business loss disallowed under this
134410375 subdivision;
134510376 but not less than zero (0).
134610377 (C) The portion of the modifications under subdivisions (3)
134710378 and (5) for property placed in service during the taxable year
134810379 treated as occurring in the taxable year immediately following
134910380 the taxable year in which the property is placed in service
135010381 equals the modification for the property otherwise determined
135110382 under this section minus the amount in clause (B).
135210383 (D) Any reallocation of modifications between taxable years
135310384 under clauses (B) and (C) shall be first allocated to the
135410385 modification under subdivision (3), then to the modification
135510386 under subdivision (5).
135610387 (15) For taxable years ending after March 12, 2020, subtract an
10388+ES 419—LS 6606/DI 120 240
135710389 amount equal to the deduction disallowed pursuant to:
135810390 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
135910391 as modified by Sections 206 and 207 of the Taxpayer Certainty
136010392 and Disaster Relief Tax Act (Division EE of Public Law
136110393 116-260); and
136210394 (B) Section 3134(e) of the Internal Revenue Code.
136310395 (16) For taxable years beginning after December 31, 2022,
136410396 subtract an amount equal to the deduction disallowed under
136510397 Section 280C(h) of the Internal Revenue Code.
136610398 (17) Except as provided in subsection (c), for taxable years
136710399 beginning after December 31, 2022, add an amount equal to any
136810400 deduction or deductions allowed or allowable in determining
136910401 taxable income under Section 641(b) of the Internal Revenue
1370-SEA 419 — CC 1 33
137110402 Code for taxes based on or measured by income and levied at the
137210403 state level by any state of the United States.
137310404 (18) For taxable years beginning after December 31, 2021, add
137410405 or subtract amounts related to specified research or
137510406 experimental procedures as required under IC 6-3-2-29.
137610407 (18) (19) Add or subtract any other amounts the taxpayer is:
137710408 (A) required to add or subtract; or
137810409 (B) entitled to deduct;
137910410 under IC 6-3-2.
138010411 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
138110412 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
138210413 "adjusted gross income" of a pass through entity means the aggregate
138310414 of items of ordinary income and loss in the case of a partnership or a
138410415 corporation described in IC 6-3-2-2.8(2), or aggregate distributable net
138510416 income of a trust or estate as defined in Section 643 of the Internal
1386-Revenue Code, whichever is applicable, for the taxable year modified
1387-as follows:
10417+Revenue Code, distributions for beneficiaries that are subject to
10418+state and federal income tax in the case of a trust or estate,
10419+whichever is applicable, for the taxable year modified as follows:
138810420 (1) Add the separately stated items of income and gains, or the
138910421 equivalent items that must be considered separately by a
139010422 beneficiary, as determined for federal purposes, attributed to the
139110423 partners, shareholders, or beneficiaries of the pass through entity,
139210424 determined without regard to whether the owner is permitted to
139310425 exclude all or part of the income or gain or deduct any amount
139410426 against the income or gain.
139510427 (2) Subtract the separately stated items of deductions or losses or
139610428 items that must be considered separately by beneficiaries, as
139710429 determined for federal purposes, attributed to partners,
139810430 shareholders, or beneficiaries of the pass through entity and that
10431+ES 419—LS 6606/DI 120 241
139910432 are deductible by an individual in determining adjusted gross
140010433 income as defined under Section 62 of the Internal Revenue
140110434 Code:
140210435 (A) limited as if the partners, shareholders, and beneficiaries
140310436 deducted the maximum allowable loss or deduction allowable
140410437 for the taxable year prior to any amount deductible from the
140510438 pass through entity; but
140610439 (B) not considering any disallowance of deductions resulting
140710440 from federal basis limitations for the partner, shareholder, or
140810441 beneficiary.
140910442 (3) Add or subtract any modifications to adjusted gross income
141010443 that would be required both for individuals under subsection (a)
141110444 and corporations under subsection (b) to the extent otherwise
141210445 provided in those subsections, including amounts that are
1413-SEA 419 — CC 1 34
141410446 allowable for which such modifications are necessary to account
141510447 for separately stated items in subdivision (1) or (2).
141610448 (h) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(18) (a)(36),
1417-(b)(22), (d)(20), (e)(20), or (f)(19) may not be construed to require an
1418-add back or allow a deduction or exemption more than once for a
10449+(b)(22), (d)(20), (e)(20), and (f)(19) may not be construed to require
10450+an add back or allow a deduction or exemption more than once for a
141910451 particular add back, deduction, or exemption.
142010452 (i) For taxable years beginning after December 25, 2016, if:
142110453 (1) a taxpayer is a shareholder, either directly or indirectly, in a
142210454 corporation that is an E&P deficit foreign corporation as defined
142310455 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
142410456 earnings and profit deficit, or a portion of the earnings and profit
142510457 deficit, of the E&P deficit foreign corporation is permitted to
142610458 reduce the federal adjusted gross income or federal taxable
142710459 income of the taxpayer, the deficit, or the portion of the deficit,
142810460 shall also reduce the amount taxable under this section to the
142910461 extent permitted under the Internal Revenue Code, however, in no
143010462 case shall this permit a reduction in the amount taxable under
143110463 Section 965 of the Internal Revenue Code for purposes of this
143210464 section to be less than zero (0); and
143310465 (2) the Internal Revenue Service issues guidance that such an
143410466 income or deduction is not reported directly on a federal tax
143510467 return or is to be reported in a manner different than specified in
143610468 this section, this section shall be construed as if federal adjusted
143710469 gross income or federal taxable income included the income or
143810470 deduction.
143910471 (j) If a partner is required to include an item of income, a deduction,
144010472 or another tax attribute in the partner's adjusted gross income tax return
144110473 pursuant to IC 6-3-4.5, such item shall be considered to be includible
10474+ES 419—LS 6606/DI 120 242
144210475 in the partner's federal adjusted gross income or federal taxable
144310476 income, regardless of whether such item is actually required to be
144410477 reported by the partner for federal income tax purposes. For purposes
144510478 of this subsection:
144610479 (1) items for which a valid election is made under IC 6-3-4.5-6,
144710480 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
144810481 in the partner's adjusted gross income or taxable income; and
144910482 (2) items for which the partnership did not make an election under
145010483 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
145110484 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
145210485 shall be included in the partner's adjusted gross income or taxable
145310486 income.
145410487 (k) The following apply for purposes of this section:
145510488 (1) For purposes of subsections (b) and (f), if a taxpayer is an
1456-SEA 419 — CC 1 35
145710489 organization that has more than one (1) trade or business
145810490 subject to the provisions of Section 512(a)(6) of the Internal
145910491 Revenue Code, the following rules apply for taxable years
146010492 beginning after December 31, 2017:
146110493 (A) If a trade or business has federal unrelated business
146210494 taxable income of zero (0) or greater for a taxable year, the
146310495 unrelated business taxable income and modifications
146410496 required under this section shall be combined in
146510497 determining the adjusted gross income of the taxpayer and
146610498 shall not be treated as being subject to the provisions of
146710499 Section 512(a)(6) of the Internal Revenue Code if one (1) or
146810500 more trades or businesses have negative Indiana adjusted
146910501 gross income after adjustments.
147010502 (B) If a trade or business has federal unrelated business
147110503 taxable income of less than zero (0) for a taxable year, the
147210504 taxpayer shall apply the modifications under this section
147310505 for the taxable year against the net operating loss in the
147410506 manner required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for
147510507 separately stated net operating losses. However, if the
147610508 application of modifications required under IC 6-3-2-2.5 or
147710509 IC 6-3-2-2.6 results in the separately stated net operating
147810510 loss for the trade or business being zero (0), the
147910511 modifications that increase adjusted gross income under
148010512 this section and remain after the calculations to adjust the
148110513 separately stated net operating loss to zero (0) that result
148210514 from the trade or business must be treated as
148310515 modifications to which clause (A) applies for the taxable
148410516 year.
10517+ES 419—LS 6606/DI 120 243
148510518 (C) If a trade or business otherwise described in Section
148610519 512(a)(6) of the Internal Revenue Code incurred a net
148710520 operating loss for a taxable year beginning after December
148810521 31, 2017, and before January 1, 2021, and the net operating
148910522 loss was carried back for federal tax purposes:
149010523 (i) if the loss was carried back to a taxable year for which
149110524 the requirements under Section 512(a)(6) of the Internal
149210525 Revenue Code did not apply, the portion of the loss and
149310526 modifications attributable to the loss shall be treated as
149410527 adjusted gross income of the taxpayer for the first
149510528 taxable year of the taxpayer beginning after December
149610529 31, 2022, and shall be treated as part of the adjusted
149710530 gross income attributable to clause (A), unless, and to the
149810531 extent, the loss and modifications were applied to
1499-SEA 419 — CC 1 36
150010532 adjusted gross income for a previous taxable year, as
150110533 determined under this article; and
150210534 (ii) if the loss was carried back to a taxable year for
150310535 which the requirements under Section 512(a)(6) of the
150410536 Internal Revenue Code applied, the portion of the loss
150510537 and modifications attributable to the loss shall be treated
150610538 as adjusted gross income of the taxpayer for the first
150710539 taxable year of the taxpayer beginning after December
150810540 31, 2022, and for purposes of this clause, the inclusion of
150910541 losses and modifications shall be in the same manner as
151010542 provided in clause (B), unless, and to the extent, the loss
151110543 and modifications were applied to adjusted gross income
151210544 for a previous taxable year, as determined under this
151310545 article.
151410546 (D) Notwithstanding any provision in this subdivision, if a
151510547 taxpayer computed its adjusted gross income for a taxable
151610548 year beginning before January 1, 2023, based on a
151710549 reasonable interpretation of this article, the taxpayer shall
151810550 be permitted to compute its adjusted gross income for
151910551 those taxable years based on that interpretation. However,
152010552 a taxpayer must continue to report any tax attributes for
152110553 taxable years beginning after December 31, 2022, in a
152210554 manner consistent with its previous interpretation.
152310555 (2) In the case of a corporation, other than a captive real
152410556 estate investment trust, for which the adjusted gross income
152510557 under this article is determined after a deduction for
152610558 dividends paid under the Internal Revenue Code, the
152710559 modifications required under this section shall be applied in
10560+ES 419—LS 6606/DI 120 244
152810561 ratio to the corporation's taxable income (as defined in
152910562 Section 63 of the Internal Revenue Code) after deductions for
153010563 dividends paid under the Internal Revenue Code compared to
153110564 the corporation's taxable income (as defined in Section 63 of
153210565 the Internal Revenue Code) before the deduction for
153310566 dividends paid under the Internal Revenue Code.
153410567 (3) In the case of a trust or estate, the trust or estate is
153510568 required to include only the portion of the modifications not
153610569 passed through to beneficiaries.
153710570 (4) In the case of a taxpayer for which modifications are
153810571 required to be applied against a separately stated net
153910572 operating loss under IC 6-3-2-2.5 or IC 6-3-2-2.6, the
154010573 modifications required under this section must be adjusted to
154110574 reflect the required application of the modifications against a
1542-SEA 419 — CC 1 37
154310575 separately stated net operating loss, in order to avoid the
154410576 application of a particular modification multiple times.
1545-SECTION 8. IC 6-3-1-11, AS AMENDED BY P.L.165-2021,
10577+SECTION 22. IC 6-3-1-11, AS AMENDED BY P.L.165-2021,
154610578 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
154710579 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 11. (a) The term "Internal
154810580 Revenue Code" means the Internal Revenue Code of 1986 of the
154910581 United States as amended and in effect on March 31, 2021. January
155010582 1, 2023.
155110583 (b) Whenever the Internal Revenue Code is mentioned in this
155210584 article, or in another provision of the Indiana Code that cites the
155310585 definition of "Internal Revenue Code" provided in this section, the
155410586 particular provisions that are referred to, together with all the other
155510587 provisions of the Internal Revenue Code in effect on March 31, 2021,
155610588 January 1, 2023, that pertain to the provisions specifically mentioned,
155710589 shall be regarded as incorporated in this article by reference and have
155810590 the same force and effect as though fully set forth in this article. To the
155910591 extent that a federal statute in the United States Code is enacted or
156010592 amended in a title other than the Internal Revenue Code on or before
156110593 March 31, 2021, January 1, 2023, and affects federal adjusted gross
156210594 income, federal taxable income, federal tax credits, or other federal tax
156310595 attributes, the federal statute shall be considered to be part of the
156410596 Internal Revenue Code as amended and in effect on March 31, 2021.
156510597 January 1, 2023. To the extent:
156610598 (1) the provisions of the Internal Revenue Code apply to this
156710599 article, regulations adopted under Section 7805(a) of the Internal
156810600 Revenue Code, and in effect on March 31, 2021; January 1,
156910601 2023; and
157010602 (2) a federal statute in the United States Code that is enacted or
10603+ES 419—LS 6606/DI 120 245
157110604 amended in a title other than the Internal Revenue Code on or
157210605 before March 31, 2021, January 1, 2023, and affects federal
157310606 adjusted gross income, federal taxable income, federal tax credits,
157410607 or other federal tax attributes applies to this article, regulations
157510608 adopted under the federal statute of the United States Code and in
157610609 effect on March 31, 2021; January 1, 2023;
157710610 shall be regarded as rules adopted by the department under this article,
157810611 unless the department adopts specific rules that supersede the
157910612 regulation.
158010613 (c) An amendment to the Internal Revenue Code made by an act
158110614 passed by Congress before March 31, 2021, January 1, 2023, other
158210615 than the federal 21st Century Cures Act (P.L. 114-255) and the federal
158310616 Disaster Tax Relief and Airport and Airway Extension Act of 2017
158410617 (P.L. 115-63), that is effective for any taxable year that began before
1585-SEA 419 — CC 1 38
158610618 March 31, 2021, January 1, 2023, and that affects:
158710619 (1) individual adjusted gross income (as defined in Section 62 of
158810620 the Internal Revenue Code);
158910621 (2) corporate taxable income (as defined in Section 63 of the
159010622 Internal Revenue Code);
159110623 (3) trust and estate taxable income (as defined in Section 641(b)
159210624 of the Internal Revenue Code);
159310625 (4) life insurance company taxable income (as defined in Section
159410626 801(b) of the Internal Revenue Code);
159510627 (5) mutual insurance company taxable income (as defined in
159610628 Section 821(b) of the Internal Revenue Code); or
159710629 (6) taxable income (as defined in Section 832 of the Internal
159810630 Revenue Code);
159910631 is also effective for that same taxable year for purposes of determining
160010632 adjusted gross income under section 3.5 of this chapter and
160110633 IC 6-5.5-1-2.
160210634 (d) This subsection applies to a taxable year ending before January
160310635 1, 2013. The following provisions of the Internal Revenue Code that
160410636 were amended by the Tax Relief Act, Unemployment Insurance
160510637 Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are
160610638 treated as though they were not amended by the Tax Relief Act,
160710639 Unemployment Insurance Reauthorization, and Job Creation Act of
160810640 2010 (P.L. 111-312):
160910641 (1) Section 1367(a)(2) of the Internal Revenue Code pertaining to
161010642 an adjustment of basis of the stock of shareholders.
161110643 (2) Section 871(k)(1)(C) and 871(k)(2)(C) of the Internal
161210644 Revenue Code pertaining the treatment of certain dividends of
161310645 regulated investment companies.
10646+ES 419—LS 6606/DI 120 246
161410647 (3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code
161510648 pertaining to regulated investment companies qualified entity
161610649 treatment.
161710650 (4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code
161810651 pertaining to the modification of tax treatment of certain
161910652 payments to controlling exempt organizations.
162010653 (5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code
162110654 pertaining to the limitations on percentage depletion in the case
162210655 of oil and gas wells.
162310656 (6) Section 451(i)(3) of the Internal Revenue Code pertaining to
162410657 special rule for sales or dispositions to implement Federal Energy
162510658 Regulatory Commission or state electric restructuring policy for
162610659 qualified electric utilities.
162710660 (7) Section 954(c)(6) of the Internal Revenue Code pertaining to
1628-SEA 419 — CC 1 39
162910661 the look-through treatment of payments between related
163010662 controlled foreign corporation under foreign personal holding
163110663 company rules.
163210664 The department shall develop forms and adopt any necessary rules
163310665 under IC 4-22-2 to implement this subsection.
1634-SECTION 9. IC 6-3-1-39 IS ADDED TO THE INDIANA CODE
10666+SECTION 23. IC 6-3-1-39 IS ADDED TO THE INDIANA CODE
163510667 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
163610668 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) The term
163710669 "preliminary federal net operating loss" means:
163810670 (1) in the case of a taxpayer that has a federal net operating
163910671 loss for a taxable year, the taxpayer's federal net operating
164010672 loss under Section 172 of the Internal Revenue Code; and
164110673 (2) in the case of a taxpayer that does not have a federal net
164210674 operating loss for a taxable year:
164310675 (A) the taxpayer's:
164410676 (i) in the case of an individual, or, except as provided in
164510677 item (iii) or (iv), a corporation, federal taxable income as
164610678 defined in Section 63 of the Internal Revenue Code;
164710679 (ii) in the case of an estate or trust, federal taxable
164810680 income as defined in Section 641(b) of the Internal
164910681 Revenue Code;
165010682 (iii) in the case of an insurance company subject to the
165110683 tax imposed under Section 831 of the Internal Revenue
165210684 Code, federal taxable income as defined in Section 832(b)
165310685 of the Internal Revenue Code; and
165410686 (iv) in the case of a life insurance company subject to the
165510687 tax imposed under Section 801(a) of the Internal
165610688 Revenue Code, federal life insurance company taxable
10689+ES 419—LS 6606/DI 120 247
165710690 income as defined in Section 801(b) of the Internal
165810691 Revenue Code; plus
165910692 (B) any amounts that are disallowed for the taxpayer in
166010693 computing a federal net operating loss for a taxable year,
166110694 excluding any amounts used in determining a separately
166210695 stated net operating loss; minus
166310696 (C) any amounts by which a federal net operating loss is
166410697 increased for a taxable year, excluding any amounts used
166510698 in determining a separately stated net operating loss.
166610699 For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a preliminary
166710700 federal net operating loss described in subdivision (1) must be
166810701 expressed as a negative number, and a preliminary federal net
166910702 operating loss described in subdivision (2) may be expressed as a
167010703 positive or negative number, subject to the determination under
1671-SEA 419 — CC 1 40
167210704 subdivision (2).
167310705 (b) The term does not include a separately stated net operating
167410706 loss, or any amounts used in determining a separately stated net
167510707 operating loss.
1676-SECTION 10. IC 6-3-1-40 IS ADDED TO THE INDIANA CODE
10708+SECTION 24. IC 6-3-1-40 IS ADDED TO THE INDIANA CODE
167710709 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
167810710 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 40. (a) The term
167910711 "separately stated net operating loss" means a federal net
168010712 operating loss, or a portion of a federal net operating loss,
168110713 determined according to the Internal Revenue Code that is:
168210714 (1) computed as an allowable federal net operating loss with
168310715 regard to a taxable year; and
168410716 (2) required to be carried forward or carried back under the
168510717 Internal Revenue Code;
168610718 regardless of whether the taxpayer had federal taxable income for
168710719 the year of the loss.
168810720 (b) A separately stated net operating loss for a taxable year
168910721 includes:
169010722 (1) an excess business loss for the taxable year under Section
169110723 461(l) of the Internal Revenue Code;
169210724 (2) a federal net operating loss for a trade or business that is
169310725 not allowable in the taxable year in which the loss was
169410726 incurred as a result of the application of Section 512(a)(6)(C)
169510727 of the Internal Revenue Code, with the federal net operating
169610728 loss determined separately for each trade or business; and
169710729 (3) a federal net operating loss that is not affected by excess
169810730 inclusion income under Section 860E of the Internal Revenue
169910731 Code.
10732+ES 419—LS 6606/DI 120 248
170010733 (c) For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a separately
170110734 stated net operating loss must be expressed as a negative number.
1702-SECTION 11. IC 6-3-2-1.9 IS ADDED TO THE INDIANA CODE
10735+SECTION 25. IC 6-3-2-1.9 IS ADDED TO THE INDIANA CODE
170310736 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
170410737 1, 2021 (RETROACTIVE)]: Sec. 1.9. (a) This section applies only to
170510738 a taxable year ending after June 30, 2021, and beginning before
170610739 January 1, 2023.
170710740 (b) For purposes of determining a net operating loss deduction
170810741 under IC 6-3-2-2.5 or IC 6-3-2-2.6, the term "federal taxable
170910742 income" means:
171010743 (1) in the case of an individual, or, except as provided in
171110744 subdivision (3) or (4), a corporation, federal taxable income as
171210745 defined in Section 63 of the Internal Revenue Code;
171310746 (2) in the case of an estate or trust, federal taxable income as
1714-SEA 419 — CC 1 41
171510747 defined in Section 641(b) of the Internal Revenue Code;
171610748 (3) in the case of an insurance company subject to the tax
171710749 imposed under Section 831 of the Internal Revenue Code,
171810750 federal taxable income as defined in Section 832(b) of the
171910751 Internal Revenue Code; and
172010752 (4) in the case of a life insurance company subject to the tax
172110753 imposed under Section 801(a) of the Internal Revenue Code,
172210754 federal life insurance company taxable income as defined in
172310755 Section 801(b) of the Internal Revenue Code.
1724-SECTION 12. IC 6-3-2-2.5, AS AMENDED BY P.L.1-2023,
10756+SECTION 26. IC 6-3-2-2.5, AS AMENDED BY P.L.1-2023,
172510757 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
172610758 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.5. (a) This section
172710759 applies to a resident person.
172810760 (b) Resident persons are entitled to a net operating loss deduction.
172910761 The amount of the deduction taken in a taxable year may not exceed
173010762 the taxpayer's unused Indiana net operating losses carried over to that
173110763 year. A taxpayer is not entitled to carryback any net operating losses
173210764 after December 31, 2011.
173310765 (c) An Indiana net operating loss equals the sum of the following:
173410766 (1) Subject to subsection (j), any separately stated net
173510767 operating loss, plus each of the following, as applicable:
173610768 (A) In the case of an individual, any deductions allowable
173710769 in determining the separately stated net operating loss for
173810770 the taxable year, but not allowable in determining federal
173910771 adjusted gross income.
174010772 (B) In the case of a separately stated net operating loss that
174110773 results from an excess business loss (as defined in Section
174210774 461(l) of the Internal Revenue Code) for a taxable year
10775+ES 419—LS 6606/DI 120 249
174310776 beginning after December 31, 2022, the modifications
174410777 required by IC 6-3-1-3.5, as set forth in subsection (d), that
174510778 result in an increase of the taxpayer's Indiana adjusted
174610779 gross income and that arise from federal deductions that
174710780 resulted in the excess business loss.
174810781 (C) In the case of a separately stated net operating loss not
174910782 described in clause (B), the modifications required by
175010783 IC 6-3-1-3.5, as set forth in subsection (d). For purposes of
175110784 this clause, a modification that results in an increase to a
175210785 taxpayer's adjusted gross income is considered an addition,
175310786 and a modification that results in a decrease to a
175410787 taxpayer's adjusted gross income is considered a
175510788 subtraction.
175610789 If the amount determined under this subdivision is less than
1757-SEA 419 — CC 1 42
175810790 zero (0), the amount is an Indiana net operating loss.
175910791 (1) (2) Subject to subsection (j), the taxpayer's preliminary
176010792 federal net operating loss for a taxable year as calculated under
176110793 Section 172 of the Internal Revenue Code, adjusted for plus the
176210794 sum of the following:
176310795 (A) The application of certain modifications required by
176410796 IC 6-3-1-3.5 as set forth in subsection (d)(1) and, (d). For
176510797 purposes of this clause, a modification that results in an
176610798 increase to a taxpayer's adjusted gross income is
176710799 considered an addition, and a modification that results in
176810800 a decrease to a taxpayer's adjusted gross income is
176910801 considered a subtraction.
177010802 (B) In the case of an individual, reduced by any deductions
177110803 allowable in determining the preliminary federal net
177210804 operating loss for the taxable year, but not allowable in
177310805 determining federal adjusted gross income.
177410806 If the amount determined under this subdivision is less than
177510807 zero (0), the amount is an Indiana net operating loss. If the
177610808 amount determined under this subdivision is equal to or
177710809 greater than zero (0), the Indiana net operating loss under this
177810810 subdivision is zero (0).
177910811 (2) (3) The excess business loss deduction disallowed under
178010812 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14). and
178110813 (3) for taxable years beginning after December 31, 2020, a loss
178210814 for a taxable year disallowed because of Section 461(l) of the
178310815 Internal Revenue Code, without any modifications under
178410816 subsection (d).
178510817 (d) The following provisions apply For purposes of subsection (c),
10818+ES 419—LS 6606/DI 120 250
178610819 (1) the modifications that are to be applied are those
178710820 modifications required under IC 6-3-1-3.5 for the same taxable
178810821 year in which each net operating loss was incurred, except that the
178910822 modifications do not include the modifications required under:
179010823 (A) (1) IC 6-3-1-3.5(a)(3);
179110824 (B) (2) IC 6-3-1-3.5(a)(4);
179210825 (C) (3) IC 6-3-1-3.5(a)(5);
179310826 (D) IC 6-3-1-3.5(a)(35); (4) IC 6-3-1-3.5(a)(36);
179410827 (E) IC 6-3-1-3.5(f)(11); and
179510828 (F) IC 6-3-1-3.5(f)(18). (5) IC 6-3-1-3.5(f)(19); and
179610829 (6) any modification required under Section 172(d) or Section
179710830 512(b) of the Internal Revenue Code that is also required
179810831 under IC 6-3-1-3.5 in determining Indiana adjusted gross
179910832 income.
1800-SEA 419 — CC 1 43
180110833 (2) An Indiana net operating loss includes a net operating loss that
180210834 arises when the applicable modifications required by IC 6-3-1-3.5
180310835 as set forth in subdivision (1) exceed the sum of the taxpayer's
180410836 federal adjusted gross income (as defined in Section 62 of the
180510837 Internal Revenue Code) if the taxpayer is an individual, or federal
180610838 taxable income (as defined in Section 63 of the Internal Revenue
180710839 Code) if the taxpayer is a trust or an estate for the taxable year in
180810840 which the Indiana net operating loss is determined and the
180910841 modifications otherwise required for federal net operating losses
181010842 for the taxable year by Section 172(d) of the Internal Revenue
181110843 Code. A modification that reduces a federal net operating loss
181210844 shall be treated as a positive number for purposes of this
181310845 subdivision, and a modification that increases a federal net
181410846 operating loss shall be treated as a negative number for purposes
181510847 of this subdivision.
181610848 (e) Subject to the limitations contained in subsection (g),
181710849 subsections (g), (h), and (i), an Indiana net operating loss carryover
181810850 shall be available as a deduction from the taxpayer's adjusted gross
181910851 income (as defined in IC 6-3-1-3.5) in the carryover year provided in
182010852 subsection (f), but not in excess of the taxpayer's adjusted gross income
182110853 (as defined in IC 6-3-1-3.5) in the carryover year determined without
182210854 regard to this section.
182310855 (f) Carryovers shall be determined under this subsection as follows:
182410856 (1) An Indiana net operating loss shall be an Indiana net operating
182510857 loss carryover to each of the carryover years following the taxable
182610858 year of the loss.
182710859 (2) An Indiana net operating loss may not be carried over for
182810860 more than twenty (20) taxable years after the taxable year of the
10861+ES 419—LS 6606/DI 120 251
182910862 loss.
183010863 (g) Except as provided in subsection (h), the entire amount of the
183110864 Indiana net operating loss for any taxable year shall be carried to the
183210865 earliest of the taxable years to which (as determined under subsection
183310866 (f)) the loss may be carried. The amount of the Indiana net operating
183410867 loss remaining after the deduction is taken under this section in a
183510868 taxable year may be carried over as provided in subsection (f). The
183610869 amount of the Indiana net operating loss carried over from year to year
183710870 shall be reduced to the extent that the Indiana net operating loss
183810871 carryover is used by the taxpayer to obtain a deduction in a taxable
183910872 year, or as required by subsection (i), until the occurrence of the
184010873 earlier of the following:
184110874 (1) The entire amount of the Indiana net operating loss has been
184210875 used as a deduction or reduced as required by subsection (i).
1843-SEA 419 — CC 1 44
184410876 (2) The Indiana net operating loss has been carried over to each
184510877 of the carryover years provided by subsection (f).
184610878 (h) An Indiana net operating loss that arises after the
184710879 application of Section 512(a)(6) of the Internal Revenue Code shall
184810880 be allowable only:
184910881 (1) in a taxable year in which the trade or business that
185010882 generated the federal net operating loss has an adjusted gross
185110883 income greater than zero (0) as determined under
185210884 IC 6-3-1-3.5; and
185310885 (2) against the trade's or business's adjusted gross income;
185410886 until the federal net operating loss from the trade or business has
185510887 been exhausted. When the federal net operating loss from the trade
185610888 or business has been exhausted, and subject to the limitations of
185710889 this section, any remaining Indiana net operating loss shall be
185810890 allowable against any trade or business of the taxpayer.
185910891 (i) The following rules apply to an Indiana net operating loss:
186010892 (1) If the taxpayer had a discharge of indebtedness that is
186110893 excluded from gross income under Section 108(a)(1)(A),
186210894 Section 108(a)(1)(B), or Section 108(a)(1)(C) of the Internal
186310895 Revenue Code, the Indiana net operating loss shall be reduced
186410896 by the remainder of:
186510897 (A) the amount of discharge of indebtedness excluded from
186610898 federal gross income; minus
186710899 (B) the amount of discharge of indebtedness that reduced
186810900 the tax attributes under Section 108(b)(2)(D), Section
186910901 108(b)(2)(E), or Section 108(b)(2)(F) of the Internal
187010902 Revenue Code or was applied for federal tax purposes
187110903 under Section 108(b)(5) of the Internal Revenue Code.
10904+ES 419—LS 6606/DI 120 252
187210905 (2) Any reduction in an Indiana net operating loss shall be
187310906 first applied to the Indiana net operating loss for the taxable
187410907 year of the discharge, and then to any Indiana net operating
187510908 loss carryovers.
187610909 (3) The provisions of Section 108(d)(6) and Section 108(d)(7)
187710910 of the Internal Revenue Code shall apply to any discharge of
187810911 indebtedness for purposes of determining the reduction of net
187910912 operating losses under this section.
188010913 (j) The following apply for purposes of calculating an Indiana
188110914 net operating loss under subsection (c):
188210915 (1) An itemized deduction shall be applied first under
188310916 subsection (c)(1), and any amount not applied under
188410917 subsection (c)(1) to make the net operating loss equal to zero
188510918 (0) shall be applied under subsection (c)(2).
1886-SEA 419 — CC 1 45
188710919 (2) In the case of a modification under IC 6-3-1-3.5 required
188810920 to modify a separately stated net operating loss or a
188910921 preliminary federal net operating loss, the amount of the
189010922 modification may not exceed the amount prescribed under
189110923 IC 6-3-1-3.5 and must be applied in the following order:
189210924 (A) Against a separately stated net operating loss under
189310925 subsection (c)(1)(B), but only to the extent necessary to
189410926 increase the separately stated net operating loss, after
189510927 application of subsection (c)(1)(A) and (c)(1)(B), to an
189610928 amount not greater than zero (0).
189710929 (B) Against a separately stated net operating loss under
189810930 subsection (c)(1)(C), but only to the extent necessary to
189910931 increase the separately stated net operating loss to an
190010932 amount not greater than zero (0).
190110933 (C) To compute a modification to a preliminary federal net
190210934 operating loss under subsection (c)(2).
1903-SECTION 13. IC 6-3-2-2.6, AS AMENDED BY P.L.1-2023,
10935+SECTION 27. IC 6-3-2-2.6, AS AMENDED BY P.L.1-2023,
190410936 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
190510937 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.6. (a) This section
190610938 applies to a corporation or a nonresident person.
190710939 (b) Corporations and nonresident persons are entitled to a net
190810940 operating loss deduction. The amount of the deduction taken in a
190910941 taxable year may not exceed the taxpayer's unused Indiana net
191010942 operating losses carried over to that year. A taxpayer is not entitled to
191110943 carryback any net operating losses after December 31, 2011.
191210944 (c) An Indiana net operating loss equals the sum of the following:
191310945 (1) the taxpayer's federal net operating loss for a taxable year as
191410946 calculated under Section 172 of the Internal Revenue Code,
10947+ES 419—LS 6606/DI 120 253
191510948 derived from sources within Indiana and adjusted for certain
191610949 modifications required by IC 6-3-1-3.5 as set forth in subsection
191710950 (d)(1) and, for a nonresident individual, reduced by any
191810951 deductions from Indiana sources allowable in determining the
191910952 federal net operating loss for the taxable year, but not allowable
192010953 in determining federal adjusted gross income;
192110954 (1) Subject to subsection (m), any separately stated net
192210955 operating loss derived from sources within Indiana, plus each
192310956 of the following, as applicable:
192410957 (A) In the case of an individual, any deductions allowable
192510958 in determining the separately stated net operating loss for
192610959 the taxable year that are derived from sources within
192710960 Indiana but not allowable in determining federal adjusted
192810961 gross income.
1929-SEA 419 — CC 1 46
193010962 (B) In the case of a separately stated net operating loss that
193110963 results from an excess business loss (as defined in Section
193210964 461(l) of the Internal Revenue Code) for a taxable year
193310965 beginning after December 31, 2022, the modifications
193410966 required by IC 6-3-1-3.5, as set forth in subsection (d)(1),
193510967 that result in an increase of the taxpayer's Indiana
193610968 adjusted gross income and that arise from federal
193710969 deductions that resulted in the excess business loss.
193810970 (C) In the case of a separately stated net operating loss not
193910971 described in clause (B), the modifications required by
194010972 IC 6-3-1-3.5, as set forth in subsection (d)(1). For purposes
194110973 of this clause, a modification that results in an increase to
194210974 a taxpayer's adjusted gross income is considered an
194310975 addition, and a modification that results in a decrease to a
194410976 taxpayer's adjusted gross income is considered a
194510977 subtraction.
194610978 If the amount determined under this subdivision is less than
194710979 zero (0), the amount is an Indiana net operating loss.
194810980 (2) Subject to subsection (m), the taxpayer's preliminary
194910981 federal net operating loss for a taxable year derived from
195010982 sources within Indiana plus the sum of the following:
195110983 (A) The application of certain modifications required by
195210984 IC 6-3-1-3.5 as set forth in subsection (d)(1). For purposes
195310985 of this clause, a modification that results in an increase to
195410986 a taxpayer's adjusted gross income is considered an
195510987 addition, and a modification that results in a decrease to a
195610988 taxpayer's adjusted gross income is considered a
195710989 subtraction.
10990+ES 419—LS 6606/DI 120 254
195810991 (B) In the case of an individual, any deductions derived
195910992 from sources within Indiana and allowable in determining
196010993 the preliminary federal net operating loss for the taxable
196110994 year but not allowable in determining federal adjusted
196210995 gross income.
196310996 If the amount determined under this subdivision is less than
196410997 zero (0), the amount is an Indiana net operating loss. If the
196510998 amount determined under this subdivision is equal to or
196610999 greater than zero (0), the Indiana net operating loss under this
196711000 subdivision is zero (0).
196811001 (2) (3) The excess business loss deduction disallowed under
196911002 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14) and incurred from
197011003 Indiana sources. and
197111004 (3) for taxable years beginning after December 31, 2020, the
1972-SEA 419 — CC 1 47
197311005 portion of the loss for a taxable year disallowed because of
197411006 Section 461(l) of the Internal Revenue Code and incurred from
197511007 Indiana sources, without any modifications under subsection (d).
197611008 Any net operating loss under this subdivision shall be computed
197711009 in a manner consistent with the computation of adjusted gross
197811010 income under IC 6-3.
197911011 (d) The following provisions apply for purposes of subsection (c):
198011012 (1) The modifications that are to be applied are those
198111013 modifications required under IC 6-3-1-3.5 for the same taxable
198211014 year in which each net operating loss was incurred, except that the
198311015 modifications do not include the modifications required under:
198411016 (A) IC 6-3-1-3.5(a)(3);
198511017 (B) IC 6-3-1-3.5(a)(4);
198611018 (C) IC 6-3-1-3.5(a)(5);
198711019 (D) IC 6-3-1-3.5(a)(35); IC 6-3-1-3.5(a)(36);
198811020 (E) IC 6-3-1-3.5(b)(14);
198911021 (F) IC 6-3-1-3.5(b)(20); (E) IC 6-3-1-3.5(b)(22);
199011022 (G) IC 6-3-1-3.5(d)(13);
199111023 (H) IC 6-3-1-3.5(d)(19); (F) IC 6-3-1-3.5(d)(20);
199211024 (I) IC 6-3-1-3.5(e)(13);
199311025 (J) IC 6-3-1-3.5(e)(19); (G) IC 6-3-1-3.5(e)(20);
199411026 (K) IC 6-3-1-3.5(f)(11); and
199511027 (L) IC 6-3-1-3.5(f)(18). (H) IC 6-3-1-3.5(f)(19); and
199611028 (I) any modification required under Section 172(d) or
199711029 Section 512(b) of the Internal Revenue Code that is also
199811030 required under IC 6-3-1-3.5 in determining Indiana
199911031 adjusted gross income.
200011032 (2) The amount of the taxpayer's net operating loss that is derived
11033+ES 419—LS 6606/DI 120 255
200111034 from sources within Indiana shall be determined in the same
200211035 manner that the amount of the taxpayer's adjusted gross income
200311036 derived from sources within Indiana is determined under section
200411037 2 of this chapter for the same taxable year during which each loss
200511038 was incurred.
200611039 (3) An Indiana net operating loss includes a net operating loss that
200711040 arises when the applicable modifications required by IC 6-3-1-3.5
200811041 as set forth in subdivision (1) exceed the sum of:
200911042 (A) either:
201011043 (i) the taxpayer's federal taxable income (as defined in
201111044 Section 63 of the Internal Revenue Code), if the taxpayer is
201211045 a corporation, nonresident estate, or nonresident trust; or
201311046 (ii) the taxpayer's federal adjusted gross income (as defined
201411047 by Section 62 of the Internal Revenue Code), if the taxpayer
2015-SEA 419 — CC 1 48
201611048 is a nonresident individual;
201711049 for the taxable year in which the Indiana net operating loss is
201811050 determined; and
201911051 (B) the modifications otherwise required for federal net
202011052 operating losses for the taxable year of the Indiana net
202111053 operating loss under Section 172(d) of the Internal Revenue
202211054 Code or Section 512(b) of the Internal Revenue Code. A
202311055 modification that reduces a federal net operating loss shall be
202411056 treated as a positive number for purposes of this subdivision,
202511057 and a modification that increases a federal net operating loss
202611058 shall be treated as a negative number for purposes of this
202711059 subdivision.
202811060 (e) Subject to the limitations contained in subsection (g),
202911061 subsections (g) through (l), an Indiana net operating loss carryover
203011062 shall be available as a deduction from the taxpayer's adjusted gross
203111063 income derived from sources within Indiana (as defined in section 2 of
203211064 this chapter) in the carryover year provided in subsection (f), but not in
203311065 excess of the taxpayer's adjusted gross income (as defined in
203411066 IC 6-3-1-3.5) in the carryover year determined without regard to the
203511067 deduction allowable under this section.
203611068 (f) Carryovers shall be determined under this subsection as follows:
203711069 (1) An Indiana net operating loss shall be an Indiana net operating
203811070 loss carryover to each of the carryover years following the taxable
203911071 year of the loss.
204011072 (2) An Indiana net operating loss may not be carried over for
204111073 more than twenty (20) taxable years after the taxable year of the
204211074 loss.
204311075 (g) The entire amount of the Indiana net operating loss for any
11076+ES 419—LS 6606/DI 120 256
204411077 taxable year shall be carried to the earliest of the taxable years to which
204511078 (as determined under subsection (f)) the loss may be carried. The
204611079 amount of the Indiana net operating loss remaining after the deduction
204711080 is taken under this section in a taxable year may be carried over as
204811081 provided in subsection (f). The amount of the Indiana net operating loss
204911082 carried over from year to year shall be reduced to the extent that the
205011083 Indiana net operating loss carryover is used by the taxpayer to obtain
205111084 a deduction in a taxable year, or as required by subsection (i), until
205211085 the occurrence of the earlier of the following:
205311086 (1) The entire amount of the Indiana net operating loss has been
205411087 used as a deduction or reduced as required by subsection (i).
205511088 (2) The Indiana net operating loss has been carried over to each
205611089 of the carryover years provided by subsection (f).
205711090 (h) An Indiana net operating loss deduction determined under this
2058-SEA 419 — CC 1 49
205911091 section shall be allowed notwithstanding the fact that in the year the
206011092 taxpayer incurred the net operating loss the taxpayer was not subject to
206111093 the tax imposed under section 1 of this chapter because the taxpayer
206211094 was:
206311095 (1) a life insurance company (as defined in Section 816(a) of the
206411096 Internal Revenue Code); or
206511097 (2) an insurance company subject to tax under Section 831 of the
206611098 Internal Revenue Code.
206711099 (i) In the case of a life insurance company, this section shall be
206811100 applied by substituting life insurance company taxable income (as
206911101 defined in Section 801 the Internal Revenue Code) in place of
207011102 references to taxable income (as defined in Section 63 of the Internal
207111103 Revenue Code).
207211104 (i) Notwithstanding subsection (g), the following apply to an
207311105 Indiana net operating loss:
207411106 (1) An Indiana net operating loss that arises after the
207511107 application of Section 512(a)(6) of the Internal Revenue Code
207611108 shall be allowable only:
207711109 (A) in a taxable year in which the trade or business that
207811110 generated the federal net operating loss has an adjusted
207911111 gross income derived from sources within Indiana greater
208011112 than zero (0) as determined under IC 6-3-1-3.5; and
208111113 (B) against the trade's or business's adjusted gross income;
208211114 until the federal net operating loss from the trade or business
208311115 has been exhausted. When the federal net operating loss from
208411116 the trade or business has been exhausted, and subject to the
208511117 limitations of this section, any remaining Indiana net
208611118 operating loss shall be allowable against any trade or business
11119+ES 419—LS 6606/DI 120 257
208711120 of the taxpayer.
208811121 (2) In the case of a corporation described in section 2.8(2) of
208911122 this chapter, an Indiana net operating loss deduction that is
209011123 attributable to a preconversion year may not be greater than
209111124 any net recognized built-in gain of the corporation as defined
209211125 in Section 1374(d)(2) of the Internal Revenue Code derived
209311126 from sources within Indiana.
209411127 (j) The following rules apply to an Indiana net operating loss:
209511128 (1) If the taxpayer had a discharge of indebtedness derived
209611129 from Indiana sources that is excluded from gross income
209711130 under Section 108(a)(1)(A), Section 108(a)(1)(B), or Section
209811131 108(a)(1)(C) of the Internal Revenue Code, the Indiana net
209911132 operating loss shall be reduced by the remainder of:
210011133 (A) the amount of discharge of indebtedness excluded from
2101-SEA 419 — CC 1 50
210211134 federal gross income derived from Indiana sources; minus
210311135 (B) the amount of discharge of indebtedness derived from
210411136 Indiana sources that reduced the tax attributes under
210511137 Section 108(b)(2)(D), Section 108(b)(2)(E), or Section
210611138 108(b)(2)(F) of the Internal Revenue Code or was applied
210711139 for federal tax purposes under Section 108(b)(5) of the
210811140 Internal Revenue Code.
210911141 (2) Any reduction in an Indiana net operating loss shall be
211011142 first applied to the Indiana net operating loss for the taxable
211111143 year of the discharge, and then to any Indiana net operating
211211144 loss carryovers.
211311145 (3) The provisions of Section 108(d)(6) and Section 108(d)(7)
211411146 of the Internal Revenue Code shall apply to any discharge of
211511147 indebtedness for purposes of determining the reduction of net
211611148 operating losses under this section.
211711149 (k) If a taxpayer has an ownership change for which the
211811150 limitations of net operating losses under Section 382 of the Internal
211911151 Revenue Code apply, the following shall apply:
212011152 (1) The amount a taxpayer may claim as an Indiana net
212111153 operating loss deduction for a taxable year beginning after
212211154 December 31, 2022, shall not exceed the limitation imposed by
212311155 Section 382(b)(1) of the Internal Revenue Code multiplied by
212411156 the apportionment percentage determined under section 2 of
212511157 this chapter for the year in which the net operating loss is
212611158 being claimed, unless otherwise provided by this subsection.
212711159 The following apply:
212811160 (A) The limitation under this subdivision does not apply to
212911161 adjusted gross income accrued in the portion of the taxable
11162+ES 419—LS 6606/DI 120 258
213011163 year on or before the change date (as defined in Section
213111164 382(j) of the Internal Revenue Code). For purposes of this
213211165 subdivision, the adjusted gross income of the taxpayer
213311166 shall be multiplied by the number of days in the taxable
213411167 year on or before the change date to the number of days in
213511168 the taxable year.
213611169 (B) For the portion of the taxable year after the change
213711170 date (as defined in Section 382(j) of the Internal Revenue
213811171 Code), the limitation under this subdivision shall be the
213911172 limitation otherwise computed in this subdivision
214011173 multiplied by the number of days in the taxable year after
214111174 the change date to the number of days in the taxable year.
214211175 (2) If a taxpayer's Indiana net operating loss determined
214311176 under this subsection is not fully deductible as a result of
2144-SEA 419 — CC 1 51
214511177 subsection (e) for a taxable year, the limitation under this
214611178 subsection for the following taxable year shall be increased by
214711179 the net operating loss determined but not allowable as a
214811180 deduction for the taxable year.
214911181 (3) If the continuity of business requirements under Section
215011182 382(c) of the Internal Revenue Code are not met, the Indiana
215111183 net operating loss available for carryforward shall be zero (0)
215211184 except to the extent of recognized built in gains derived from
215311185 Indiana sources and amounts allowable under subdivision (2).
215411186 (4) If the limitation under Section 382(b) of the Internal
215511187 Revenue Code is increased for a taxable year under Section
215611188 382(h) of the Internal Revenue Code, the limitation under
215711189 subdivision (1) for that taxable year shall be increased by the
215811190 federal increase in the net operating loss limitation for the
215911191 taxable year multiplied by the Indiana apportionment
216011192 percentage for that taxable year.
216111193 (5) For purposes of any other matters not provided for in
216211194 subdivisions (1) through (4), the taxpayer and the department
216311195 are required to apply the limitations and rules under Section
216411196 382 of the Internal Revenue Code in a manner consistent with
216511197 this subsection.
216611198 (6) This subsection applies to a taxpayer regardless of
216711199 whether the taxpayer actually has a federal net operating loss
216811200 subject to Section 382 of the Internal Revenue Code or
216911201 whether any federal net operating losses have been exhausted.
217011202 (l) If two (2) or more corporations file a consolidated return
217111203 under IC 6-3-4-14 or a combined return under this chapter and
217211204 have an Indiana net operating loss on a consolidated or combined
11205+ES 419—LS 6606/DI 120 259
217311206 basis for a taxable year:
217411207 (1) the Indiana net operating loss attributable to each
217511208 corporation included in the consolidated or combined return
217611209 shall be determined in a manner consistent with the
217711210 attribution of federal net operating losses for consolidated
217811211 groups as provided under the Internal Revenue Code and
217911212 regulations promulgated thereunder;
218011213 (2) the application of Indiana net operating losses and
218111214 reduction of losses attributable to each member shall be in a
218211215 manner consistent with the application and reduction of
218311216 federal net operating losses for consolidated groups as
218411217 provided under the Internal Revenue Code and regulations
218511218 promulgated thereunder; and
218611219 (3) the availability of net operating losses to each corporation
2187-SEA 419 — CC 1 52
218811220 upon an ownership change or change in filing status shall be
218911221 in a manner consistent with the availability and use of federal
219011222 net operating losses for consolidated groups as provided
219111223 under the Internal Revenue Code and regulations
219211224 promulgated thereunder.
219311225 (m) The following apply for purposes of calculating an Indiana
219411226 net operating loss under subsection (c):
219511227 (1) An itemized deduction shall be applied first under
219611228 subsection (c)(1), and any amount not applied under
219711229 subsection (c)(1) to make the net operating loss equal to zero
219811230 (0) shall be applied under subsection (c)(2).
219911231 (2) In the case of a modification under IC 6-3-1-3.5 required
220011232 to modify a separately stated net operating loss or a
220111233 preliminary federal net operating loss, the amount of the
220211234 modification may not exceed the amount prescribed under
220311235 IC 6-3-1-3.5 and must be applied in the following order:
220411236 (A) Against a separately stated net operating loss under
220511237 subsection (c)(1)(B), but only to the extent necessary to
220611238 increase the separately stated net operating loss, after
220711239 application of subsection (c)(1)(A) and (c)(1)(B), to an
220811240 amount not greater than zero (0).
220911241 (B) Against a separately stated net operating loss under
221011242 subsection (c)(1)(C), but only to the extent necessary to
221111243 increase the separately stated net operating loss to an
221211244 amount not greater than zero (0).
221311245 (C) To compute a modification to a preliminary federal net
221411246 operating loss under subsection (c)(2).
2215-SECTION 14. IC 6-3-2-2.8, AS AMENDED BY P.L.1-2023,
11247+SECTION 28. IC 6-3-2-2.8, AS AMENDED BY P.L.1-2023,
11248+ES 419—LS 6606/DI 120 260
221611249 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
221711250 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2.8. Notwithstanding any
221811251 provision of IC 6-3-1 through IC 6-3-7, there shall be no tax on the
221911252 adjusted gross income of the following:
222011253 (1) Any organization described in Section 501(a) of the Internal
222111254 Revenue Code, except that any income of such organization
222211255 which is subject to income tax under the Internal Revenue Code
222311256 shall be subject to the tax under IC 6-3-1 through IC 6-3-7.
222411257 (2) Any corporation which is exempt from income tax under
222511258 Section 1363 of the Internal Revenue Code and which complies
222611259 with the requirements of IC 6-3-4-13. However, income of a
222711260 corporation described under this subdivision that is subject to
222811261 income tax under the Internal Revenue Code is subject to the tax
222911262 under IC 6-3-1 through IC 6-3-7. A corporation will not lose its
2230-SEA 419 — CC 1 53
223111263 exemption under this section because it fails to comply with
223211264 IC 6-3-4-13 but it will be subject to the penalties provided by
223311265 IC 6-8.1-10. Any corporation that is exempt from income tax
223411266 under Section 1363 of the Internal Revenue Code and that makes
223511267 an election under IC 6-3-2.1 for a taxable year shall be subject to
223611268 tax as provided in IC 6-3-2.1 for the taxable year of the election.
223711269 (3) Banks and trust companies, national banking associations,
223811270 savings banks, building and loan associations, and savings and
223911271 loan associations.
224011272 (4) Insurance companies or organizations offering nonprofit
224111273 agricultural organization insurance coverage subject to tax
224211274 under any of the following:
224311275 (A) IC 27-1-18-2, including a domestic insurance company
224411276 that elects to be taxed under IC 27-1-18-2.
224511277 (B) IC 27-1-2-2.3.
224611278 (C) IC 6-8-15, unless a nonprofit agricultural organization:
224711279 (i) files a notice of election with the insurance
224811280 commissioner and the commissioner of the department
224911281 on or before November 30 of a taxable year; and
225011282 (ii) states in the notice of election that the organization
225111283 elects to be subject to the tax imposed under IC 6-3-1
225211284 through IC 6-3-7 for the taxable year.
225311285 (5) International banking facilities (as defined in Regulation D of
225411286 the Board of Governors of the Federal Reserve System (12 CFR
2255-204)).
2256-SECTION 15. IC 6-3-2-21.7, AS AMENDED BY P.L.130-2018,
2257-SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2258-JANUARY 1, 2023 (RETROACTIVE)]: Sec. 21.7. (a) This section
2259-applies to a qualified patent issued to a taxpayer after December 31,
2260-2007.
2261-(b) As used in this section, "invention" has the meaning set forth in
2262-35 U.S.C. 100(a).
2263-(c) As used in this section, "qualified patent" means:
2264-(1) a utility patent issued under 35 U.S.C. 101; or
2265-(2) a plant patent issued under 35 U.S.C. 161;
2266-after December 31, 2007, for an invention resulting from a
2267-development process conducted in Indiana. The term does not include
2268-a design patent issued under 35 U.S.C. 171.
2269-(d) As used in this section, "qualified taxpayer" means a taxpayer
2270-that on the effective filing date of the claimed invention:
2271-(1) is: either:
2272-(A) an individual, or corporation, if the number of employees
2273-SEA 419 — CC 1 54
2274-of the individual, or corporation, including affiliates as
2275-specified in 13 CFR 121.103, does not exceed five hundred
2276-(500) persons; or
2277-(B) a corporation, if the number of employees of the
2278-corporation, including affiliates as specified in 13 CFR
2279-121.103, does not exceed five hundred (500) persons; or
2280-(B) (C) a nonprofit organization or nonprofit corporation as
2281-specified in:
2282-(i) 37 CFR 1.27(a)(3)(ii)(A) or 37 CFR 1.27(a)(3)(ii)(B); or
2283-(ii) IC 23-17; and
2284-(2) is domiciled in Indiana.
2285-For purposes of subdivision (1)(A), an individual shall not be
2286-considered to meet the requirements under subdivision (1)(A) as a
2287-result of the individual's interest in a partnership, S corporation,
2288-trust, estate, or other entity. For purposes of subdivision (1)(B), a
2289-corporation includes a corporation described in section 2.8(2) of
2290-this chapter.
2291-(e) Subject to subsections (g) and (h), in determining adjusted gross
2292-income or taxable income under IC 6-3-1-3.5 or IC 6-5.5-1-2, a
2293-qualified taxpayer is entitled to an exemption from taxation under
2294-IC 6-3-1 through IC 6-3-7 for the following:
2295-(1) Licensing fees or other income received for the use of a
2296-qualified patent.
2297-(2) Royalties received for the infringement of a qualified patent.
2298-(3) Receipts from the sale of a qualified patent.
2299-(4) Subject to subsection (f), income from the taxpayer's own use
2300-of the taxpayer's qualified patent to produce the claimed
2301-invention.
2302-(f) The exemption provided by subsection (e)(4) may not exceed the
2303-fair market value of the licensing fees or other income that would be
2304-received by allowing use of the qualified taxpayer's qualified patent by
2305-someone other than the taxpayer. The fair market value referred to in
2306-this subsection must be determined in each taxable year in which the
2307-qualified taxpayer claims an exemption under subsection (e)(4).
2308-(g) The total amount of exemptions claimed under this section by a
2309-qualified taxpayer in a taxable year may not exceed five million dollars
2310-($5,000,000).
2311-(h) A taxpayer may not claim an exemption under this section with
2312-respect to a particular qualified patent for more than ten (10) taxable
2313-years. Subject to the provisions of this section, the following amount of
2314-the income, royalties, or receipts described in subsection (e) from a
2315-particular qualified patent is exempt:
2316-SEA 419 — CC 1 55
2317-(1) Fifty percent (50%) for each of the first five (5) taxable years
2318-in which the exemption is claimed for the qualified patent.
2319-(2) Forty percent (40%) for the sixth taxable year in which the
2320-exemption is claimed for the qualified patent.
2321-(3) Thirty percent (30%) for the seventh taxable year in which the
2322-exemption is claimed for the qualified patent.
2323-(4) Twenty percent (20%) for the eighth taxable year in which the
2324-exemption is claimed for the qualified patent.
2325-(5) Ten percent (10%) each year for the ninth and tenth taxable
2326-year in which the exemption is claimed for the qualified patent.
2327-(6) No exemption under this section for the particular qualified
2328-patent after the eleventh taxable year in which the exemption is
2329-claimed for the qualified patent.
2330-(i) For purposes of subsection (h):
2331-(1) a taxpayer is not required to claim the exemption under
2332-this section in the first year after which the patent was issued;
2333-(2) the years in which the exemption under this section is
2334-claimed are not required to be consecutive taxable years;
2335-(3) if a qualified taxpayer claims an exemption under this
2336-section on the taxpayer's return for a taxable year, the
2337-taxpayer may not file an amended return to reverse the
2338-claimed exemption unless the correct amount of the claimed
2339-exemption would have been zero (0);
2340-(4) if a qualified taxpayer does not claim an exemption under
2341-this section on the taxpayer's return for a taxable year, the
2342-taxpayer may not file an amended return to claim an
2343-exemption; and
2344- (5) if a qualified taxpayer files returns claiming an exemption
2345-under this section with regard to a particular qualified patent
2346-for more than ten (10) years, the statute of limitations for
2347-assessment of the qualified taxpayer and any entities claiming
2348-an exemption through a qualified taxpayer for taxable years
2349-after the tenth taxable year for which the exemption is
2350-claimed for the qualified patent shall not expire with regard
2351-to any claimed exemption.
2352-(i) (j) To receive the exemption provided by this section, a qualified
2353-taxpayer must claim the exemption on the qualified taxpayer's annual
2354-state tax return or returns in the manner prescribed by the department.
2355-The qualified taxpayer shall submit to the department all information
2356-that the department determines is necessary for the determination of the
2357-exemption provided by this section.
2358-(j) (k) The department shall determine, record, and retain the North
2359-SEA 419 — CC 1 56
2360-American Industry Classification System code for each taxpayer
2361-claiming an exemption under this section.
2362-(l) In the case of a corporation described in section 2.8(2) of this
2363-chapter that is a qualified taxpayer, the corporation may pass
2364-through the exemption under this section to its shareholders in
2365-proportion with their ownership of the corporation. For purposes
2366-of applying this subsection to a corporation described in section
2367-2.8(2) of this chapter and its shareholders:
2368-(1) the limitation on the exemption for qualified patent income
2369-shall be applied at the corporation level; and
2370-(2) the period in which the exemption can be claimed and the
2371-years for which the exemption is claimed shall be determined
2372-at the corporation level.
2373-SECTION 16. IC 6-3-2-27.5 IS ADDED TO THE INDIANA CODE
2374-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2375-JANUARY 1, 2024]: Sec. 27.5. (a) As used in this section,
2376-"compensation" means any wages, salaries, tips, or similar income
2377-that is subject to the withholding requirements under IC 6-3-4-8,
2378-or would otherwise be subject to the withholding requirements
2379-under IC 6-3-4-8 if not for the application of:
11287+204)).".
11288+Delete pages 8 through 40.
11289+Page 43, delete lines 31 through 42, begin a new paragraph and
11290+insert:
11291+ES 419—LS 6606/DI 120 261
11292+"SECTION 30. IC 6-3-2-27.5 IS ADDED TO THE INDIANA
11293+CODE AS A NEW SECTION TO READ AS FOLLOWS
11294+[EFFECTIVE JANUARY 1, 2024]: Sec. 27.5. (a) As used in this
11295+section, "compensation" means any wages, salaries, tips, or similar
11296+income that is subject to the withholding requirements under
11297+IC 6-3-4-8, or would otherwise be subject to the withholding
11298+requirements under IC 6-3-4-8 if not for the application of:
238011299 (1) IC 6-3-4-8(d);
238111300 (2) IC 6-3-5; or
238211301 (3) this section.
238311302 (b) As used in this section, "professional athlete" means:
238411303 (1) an athlete, other than a team member (as defined in
238511304 section 2.7(a)(4) of this chapter) or a race team member (as
238611305 defined in section 3.2(a)(4) of this chapter), who performs
238711306 services in a professional athletic event for compensation;
238811307 (2) a team member (as defined in section 2.7(a)(4) of this
238911308 chapter) who has at least one (1) duty day in Indiana during
239011309 a taxable year; or
239111310 (3) a race team member (as defined in section 3.2(a)(4) of this
239211311 chapter) who has at least one (1) duty day in Indiana during
239311312 a taxable year.
239411313 (c) As used in this section, "professional entertainer" means a
239511314 person who performs services in the professional performing arts
239611315 for compensation on a per-event basis.
239711316 (d) As used in this section, "public figure" means a person of
239811317 prominence who performs services at discrete events, including
239911318 speeches, public appearances, and similar events, for compensation
240011319 on a per-event basis.
240111320 (e) As used in this section, "time and attendance system" means
2402-SEA 419 — CC 1 57
240311321 a system:
240411322 (1) through which an employee is required, on a
240511323 contemporaneous basis, to record the employee's work
240611324 location for each day worked outside the state in which the
240711325 employee's employment duties are primarily performed; and
240811326 (2) which is designed to allow the employer to allocate the
240911327 employee's compensation for income tax purposes among all
241011328 states in which the employee performs employment duties.
241111329 (f) Except as provided in subsection (j), compensation is exempt
241211330 from the adjusted gross income tax imposed under this article and
241311331 IC 6-3.6 if all of the following conditions are met:
241411332 (1) The individual is not a resident of Indiana at any time
241511333 during the calendar year in which the employee performs
11334+ES 419—LS 6606/DI 120 262
241611335 employment duties.
241711336 (2) The individual receives compensation for employment
241811337 duties performed by the individual in Indiana for thirty (30)
241911338 days or less during the calendar year.
242011339 (3) The compensation is not paid for employment duties
242111340 performed by the individual in the individual's capacity as a
242211341 professional athlete, professional entertainer, or public figure.
242311342 (g) Except as otherwise provided in this section, an employer is
242411343 not required to withhold taxes imposed under this article or
242511344 IC 6-3.6 from compensation paid to an employee described in
242611345 subsection (f). However, if the number of days that an employee
242711346 performs employment duties in Indiana exceeds thirty (30) days,
242811347 the employer shall withhold and remit tax to the state of Indiana
242911348 from all compensation paid to the employee for every day on which
243011349 the employee performed employment duties in Indiana, including
243111350 the first thirty (30) days.
243211351 (h) The department may not require payment of any penalties
243311352 otherwise applicable for a failure to deduct and withhold income
243411353 taxes under IC 6-3-4-8, if, when making the determination of
243511354 whether withholding was required, either of the following applied:
243611355 (1) The employer relied on a time and attendance system
243711356 maintained by the employer specifically designed to allocate
243811357 employee wages for income tax purposes among all taxing
243911358 jurisdictions in which the employee performs employment
244011359 duties for the employer.
244111360 (2) The employer did not maintain a time and attendance
244211361 system and the employer relied on the employee's annual
244311362 determination of the time the employee expected to spend
244411363 performing employment duties in Indiana, if:
2445-SEA 419 — CC 1 58
244611364 (A) the employer did not have actual knowledge of fraud
244711365 on the part of the employee in making the determination;
244811366 and
244911367 (B) the employer and the employee did not collude to evade
245011368 taxation in making the determination.
245111369 An employer's maintaining of records as described in subdivision
245211370 (1) does not preclude an employer's ability to rely on an employee's
245311371 determination of the time the employee expected to spend
245411372 performing employment duties in Indiana as described in
245511373 subdivision (2) when making the determination of whether
245611374 withholding is required.
245711375 (i) For purposes of this section:
245811376 (1) subject to subdivision (3), an employee shall be considered
11377+ES 419—LS 6606/DI 120 263
245911378 present and performing employment duties within Indiana if
246011379 the employee performs more of the employee's employment
246111380 duties within Indiana than in any other state during a
246211381 particular day;
246311382 (2) any portion of the day during which an employee is in
246411383 transit may not be considered in determining the location of
246511384 the employee's performance of employment duties; and
246611385 (3) if an employee performs employment duties in the
246711386 employee's state of residence and in only one (1) nonresident
246811387 state during a particular day, the employee shall be
246911388 considered to have performed more of the employee's
247011389 employment duties in the nonresident state than in the state
247111390 of residence for that day.
247211391 (j) The following apply for purposes of this section:
247311392 (1) If an individual receives compensation for employment
247411393 duties performed by the individual both:
247511394 (A) in the individual's capacity as a professional athlete,
247611395 professional entertainer, or public figure; and
247711396 (B) in some capacity other than the individual's capacity as
247811397 a professional athlete, professional entertainer, or public
247911398 figure;
248011399 the exemption under this section may not be applied to the
248111400 portion of compensation described in clause (B).
248211401 (2) If an employee is working at a location other than a
248311402 physical location of the employer, the employee shall be
248411403 considered to be working in the state or states in which the
248511404 services for the employer are performed, regardless of the
248611405 physical location of the employer.
248711406 (3) If an individual performs employment duties in Indiana
2488-SEA 419 — CC 1 59
248911407 for more than thirty (30) days during a calendar year,
249011408 compensation received by the individual is not eligible for the
249111409 exemption under this section.
249211410 (4) If an individual performs substantially similar job duties
249311411 for an employer both while designated as an employee and in
249411412 some capacity other than as an employee during a calendar
249511413 year, the number of days for which the individual shall be
249611414 considered to have worked in Indiana with regard to that
249711415 employer must be determined by aggregating the days for
249811416 which the individual performed duties for the employer,
249911417 whether designated as an employee or not.
250011418 (5) If an employer or individual reasonably believes that an
250111419 individual is an employee for a calendar year but the
11420+ES 419—LS 6606/DI 120 264
250211421 individual is later determined to not be an employee, the
250311422 individual:
250411423 (A) is subject to tax under this article and IC 6-3.6 on any
250511424 income that otherwise would have been exempt under this
250611425 section; and
250711426 (B) is not subject to penalties under IC 6-3-4-4.1 or
250811427 IC 6-8.1-10-2.1 based on the inclusion of amounts claimed
250911428 as exempt under this section as income.
251011429 (6) If an individual is not a resident of Indiana, amounts paid
251111430 for vacation, sick, personal, or any other type of leave may not
251211431 be considered as compensation in Indiana, and any day for
251311432 which a type of leave is used may not be considered as a day
251411433 for which the individual performed services for an employer
251511434 unless the individual performed services for the employer in
251611435 Indiana on that day and the day would otherwise be counted
251711436 as a day of services performed in Indiana under this section.
251811437 (7) The exemption provided under this section shall not apply
251911438 to an individual's compensation that is deferred or delayed
252011439 from a previous calendar year to a subsequent calendar year
252111440 unless:
252211441 (A) the individual was exempt from taxation under this
252311442 section on the compensation for the calendar year in which
252411443 the compensation was earned; and
252511444 (B) the individual is not a resident of Indiana when the
252611445 individual includes the compensation in the individual's
252711446 federal gross income.
252811447 (k) Nothing in this section may be construed to prevent an
252911448 individual from being considered a local taxpayer (as defined in
253011449 IC 6-3.6-2-13(2)), regardless of whether the individual's
2531-SEA 419 — CC 1 60
253211450 compensation is exempt under this section.
2533-SECTION 17. IC 6-3-2-28 IS ADDED TO THE INDIANA CODE
11451+SECTION 31. IC 6-3-2-28 IS ADDED TO THE INDIANA CODE
253411452 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
253511453 JANUARY 1, 2024]: Sec. 28. (a) The following definitions apply
253611454 throughout this section:
253711455 (1) "Health care sharing ministry" has the meaning set forth
253811456 in IC 27-1-2.1-1.
253911457 (2) "Qualified health care sharing expenses" means the
254011458 amount paid by a qualified individual for membership in a
254111459 health care sharing ministry.
254211460 (3) "Qualified individual" means an individual who is:
254311461 (A) a resident of Indiana; and
254411462 (B) a member of a health care sharing ministry for at least
11463+ES 419—LS 6606/DI 120 265
254511464 one (1) month during a taxable year for which the qualified
254611465 individual claims a deduction under this section.
254711466 (b) Each taxable year, a qualified individual is entitled to a
254811467 deduction from the qualified individual's adjusted gross income for
254911468 the taxable year equal to the total amount of qualified health care
255011469 sharing expenses paid by the qualified individual during the
255111470 taxable year.
255211471 (c) To receive the deduction allowed by this section, a qualified
255311472 individual must claim the deduction on the qualified individual's
255411473 annual state tax return or returns in the manner prescribed by the
255511474 department. The qualified individual shall submit to the
255611475 department any information that the department determines is
255711476 necessary to calculate the amount of the deduction allowed by this
255811477 section.
2559-SECTION 18. IC 6-3-2-29 IS ADDED TO THE INDIANA CODE
11478+SECTION 32. IC 6-3-2-29 IS ADDED TO THE INDIANA CODE
256011479 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
256111480 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 29. (a) As used in this
256211481 section, "specified research or experimental expenditures" means
256311482 specified research or experimental expenditures (as defined in
256411483 Section 174(b) of the Internal Revenue Code) that the taxpayer is
256511484 required to charge to capital account under Section 174(a)(2) of the
256611485 Internal Revenue Code. The term does not include expenditures for
256711486 which a deduction is disallowed as a result of Section 280C(c) of the
256811487 Internal Revenue Code.
256911488 (b) Except as otherwise provided in this section, for taxable
257011489 years beginning after December 31, 2021, a taxpayer, in
257111490 determining the taxpayer's adjusted gross income for a particular
257211491 taxable year, shall:
257311492 (1) deduct from the taxpayer's adjusted gross income an
2574-SEA 419 — CC 1 61
257511493 amount equal to the specified research or experimental
257611494 expenditures charged to capital account under Section
257711495 174(a)(2)(A) of the Internal Revenue Code for the taxable
257811496 year; and
257911497 (2) add to the taxpayer's adjusted gross income the amount
258011498 deducted under Section 174(a)(2)(B) of the Internal Revenue
258111499 Code for the taxable year.
258211500 (c) In the case of a taxpayer that owns an interest in a
258311501 partnership or corporation described in section 2.8(2) of this
258411502 chapter, the amount that must be deducted under subsection (b)(1)
258511503 for a particular taxable year may not exceed the sum of:
258611504 (1) the taxpayer's adjusted basis in the partnership or
258711505 corporation for federal tax purposes, as determined at the end
11506+ES 419—LS 6606/DI 120 266
258811507 of the taxpayer's taxable year and after application of any
258911508 expenses, deductions, or losses; plus
259011509 (2) the amount of any specified research or experimental
259111510 expenditures claimed as a deduction under Section 174 of the
259211511 Internal Revenue Code in determining the taxpayer's federal
259311512 adjusted gross income for the taxable year.
259411513 (d) A deduction or part of a deduction that is disallowed under
259511514 subsection (c) must be:
259611515 (1) carried forward to the subsequent taxable year;
259711516 (2) treated as a specified research or experimental
259811517 expenditure that is paid or incurred in the subsequent taxable
259911518 year; and
260011519 (3) applied under subsection (c) against the adjusted basis of
260111520 the partnership or corporation for the subsequent taxable
260211521 year.
260311522 (e) If a taxpayer is eligible for a deduction under subsection
260411523 (b)(1), but the deduction would be treated as a passive deduction
260511524 under Section 469 of the Internal Revenue Code, the amount that
260611525 may be deducted under subsection (b)(1) for a particular taxable
260711526 year may not exceed the sum of:
260811527 (1) the amount of the taxpayer's passive income, as
260911528 determined for federal tax purposes, after application of any
261011529 passive losses or deductions for the taxable year and after
261111530 application of any passive loss carryovers for the taxable year,
261211531 but not less than zero (0); plus
261311532 (2) the amount of any specified research or experimental
261411533 expenditures claimed as a deduction under Section 174 of the
261511534 Internal Revenue Code in determining the taxpayer's federal
261611535 adjusted gross income for the taxable year.
2617-SEA 419 — CC 1 62
261811536 The requirements under this subsection must be applied after
261911537 application of subsections (c) and (d). Any deduction or part of a
262011538 deduction that is disallowed under this subsection must be carried
262111539 forward to the subsequent taxable year and treated as a specified
262211540 research or experimental expenditure that is paid or incurred in
262311541 the subsequent taxable year from a trade or business that is a
262411542 passive activity for the taxpayer.
262511543 (f) If, before the effective date of this section, a taxpayer:
262611544 (1) is a pass through entity; and
262711545 (2) filed a return either:
262811546 (A) for a taxable year beginning before January 1, 2023,
262911547 that reported tax under IC 6-3-2.1 as an electing entity; or
263011548 (B) for a taxable year beginning before January 1, 2023,
11549+ES 419—LS 6606/DI 120 267
263111550 passing through the tax paid under IC 6-3-2.1 by another
263211551 entity on the taxpayer's behalf as pass through entity to its
263311552 owners;
263411553 the taxpayer shall report the adjusted gross income subject to pass
263511554 through entity tax for purposes of IC 6-3-2.1 as if the modification
263611555 under this section was not in effect for taxable years beginning
263711556 before January 1, 2023. The taxpayer shall report the
263811557 modifications otherwise required under this section to its partners,
263911558 shareholders, or beneficiaries for the taxable year in the manner
264011559 prescribed under this article.
264111560 (g) The modifications required under this section are not
264211561 applicable if a taxpayer is not required under federal law to charge
264311562 specified research or experimental expenditures to capital account
264411563 in determining federal adjusted gross income, regardless of
264511564 whether the taxpayer elects to charge research or experimental
264611565 expenditures to capital account.
2647-SECTION 19. IC 6-3-2.1-2, AS ADDED BY P.L.1-2023, SECTION
11566+SECTION 33. IC 6-3-2.1-2, AS ADDED BY P.L.1-2023, SECTION
264811567 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
264911568 1, 2022 (RETROACTIVE)]: Sec. 2. The following definitions apply
265011569 throughout this chapter:
265111570 (1) "Electing entity" means a pass through entity described in
265211571 IC 6-3-1-35 that is subject to Subchapter K or Subchapter S of the
265311572 Internal Revenue Code and makes the election under this chapter.
265411573 (2) "Entity owner" means the direct or indirect owners of an
265511574 electing entity that are ultimately taxable on the entity's income
265611575 under Subchapter K or Subchapter S of the Internal Revenue
265711576 Code, except an owner described in subdivision (4)(A) through
265811577 (4)(C).
265911578 (3) "Nonresident" means:
2660-SEA 419 — CC 1 63
266111579 (A) a nonresident partner as defined by IC 6-3-4-12(n);
266211580 (B) a nonresident shareholder as defined by IC 6-3-4-13(n); or
266311581 (C) a nonresident beneficiary as defined by IC 6-3-4-15(i); or
266411582 (D) in the case of a shareholder of a corporation described
266511583 in IC 6-3-2-2.8(2), a corporation described in Section
266611584 501(c)(3) of the Internal Revenue Code that is exempt from
266711585 taxation under Section 501(a) of the Internal Revenue
266811586 Code and that is not domiciled in Indiana;
266911587 whichever is applicable.
267011588 (4) "Owner" means a direct or indirect owner of an electing entity
267111589 and includes a beneficiary of an estate or trust. However an owner
267211590 shall not include:
267311591 (A) an entity described in IC 6-3-2-2.8(3) that is not a
11592+ES 419—LS 6606/DI 120 268
267411593 partnership, a trust, or a corporation described in
267511594 IC 6-3-2-2.8(2);
267611595 (B) an entity described in IC 6-3-2-2.8(5); or
267711596 (C) any other entity as determined by the department and listed
267811597 in instructions or guidance issued by the department.
267911598 (5) "Resident" means a partner, shareholder, or beneficiary:
268011599 (A) that, in the case of an individual, estate, or trust, is a
268111600 resident of Indiana as defined in IC 6-3-1-12; or
268211601 (B) that is a partnership or corporation, including a
268311602 corporation described in IC 6-3-2-2.8(1) or IC 6-3-2-2.8(2),
268411603 that is domiciled in Indiana.
2685-SECTION 20. IC 6-3-4-8, AS AMENDED BY P.L.159-2021,
11604+SECTION 34. IC 6-3-2.1-4, AS ADDED BY P.L.1-2023, SECTION
11605+5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
11606+1, 2022 (RETROACTIVE)]: Sec. 4. (a) A tax shall be imposed on the
11607+adjusted gross income of an electing entity for the taxable year of the
11608+election. The adjusted gross income of the electing entity shall be the
11609+aggregate of the direct owners' share of the electing entity's adjusted
11610+gross income. For purposes of this section:
11611+(1) the electing entity shall determine each nonresident direct
11612+owner's share after allocation and apportionment pursuant to
11613+IC 6-3-2-2; and
11614+(2) the electing entity shall determine the resident direct owner's
11615+share either before allocation and apportionment pursuant to
11616+IC 6-3-2-2 or after allocation and apportionment pursuant to
11617+IC 6-3-2-2. The electing entity must use the same method for all
11618+resident direct owners.
11619+(b) The tax rate shall be the tax rate specified in IC 6-3-2-1(b) as of
11620+the last day of the electing entity's taxable year, and the tax shall be due
11621+on the same date as the entity return for the taxable year is due under
11622+this article, without regard to extensions.
11623+(c) On its return for the taxable year, the electing entity shall attach
11624+a schedule showing the calculation of the tax and the credit for each
11625+entity direct owner, and remit the tax with the return, taking into
11626+account prior estimated tax payments and other tax payments by the
11627+electing entity, along with other payments that are credited to the
11628+electing entity as tax paid under this chapter or as tax withheld under
11629+IC 6-3-4 or IC 6-5.5-2-8. The department may prescribe the form for
11630+providing the information required by this section.
11631+(d) If a pass through entity makes estimated tax payments, makes
11632+other tax payments, or has other payments that are credited to the
11633+electing entity as tax paid under this chapter or a tax withheld under
11634+IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
11635+ES 419—LS 6606/DI 120 269
11636+election under section 3 of this chapter, the pass through entity:
11637+(1) may treat pass through entity tax remitted on its behalf under
11638+this chapter as pass through entity tax to its direct owners,
11639+provided that:
11640+(A) the tax is designated on a schedule similar to the schedule
11641+required under subsection (c) and is reported to the direct
11642+owners in the manner provided in section 5 of this chapter; and
11643+(B) the pass through entity credits an amount to a direct owner
11644+no greater than the tax that otherwise would be due under this
11645+chapter on their share of the adjusted gross income from the
11646+pass through entity or the direct owner's portion (as
11647+determined under subsection (a)) of the pass through entity tax
11648+passed through to the pass through entity, whichever is greater
11649+(for purposes of this clause, a trust or estate shall compute the
11650+tax in the same manner as an electing entity);
11651+(2) shall treat any payment other than a payment designated under
11652+subdivision (1) as a withholding tax payment under IC 6-3-4-12,
11653+IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
11654+through entity otherwise has not remitted or been credited with
11655+such withholding; and
11656+(3) may request a refund of any payment in excess of the amounts
11657+credited or designated under subdivision (1) or (2).
11658+(e) If a pass through entity elects to be subject to tax under this
11659+chapter and the pass through entity determines that the pass
11660+through entity's tax is less than the pass through entity tax that is
11661+paid on the pass through entity's behalf, the pass through entity
11662+may treat the tax paid on the pass through entity's behalf in a
11663+manner similar to subsection (d). However, the pass through entity
11664+may not treat an amount less than its own liability under this
11665+chapter as pass through entity tax under subsection (d)(1).
11666+SECTION 35. IC 6-3-3-12, AS AMENDED BY P.L.122-2022,
11667+SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11668+JANUARY 1, 2024]: Sec. 12. (a) As used in this section, "account" has
11669+the meaning set forth in IC 21-9-2-2.
11670+(b) As used in this section, "account beneficiary" has the meaning
11671+set forth in IC 21-9-2-3.
11672+(c) As used in this section, "account owner" has the meaning set
11673+forth in IC 21-9-2-4.
11674+(d) As used in this section, "college choice 529 education savings
11675+plan" refers to a college choice 529 plan established under IC 21-9.
11676+(e) As used in this section, "contribution" means the amount of
11677+money directly provided to a college choice 529 education savings plan
11678+ES 419—LS 6606/DI 120 270
11679+account by a taxpayer. A contribution does not include any of the
11680+following:
11681+(1) Money credited to an account as a result of bonus points or
11682+other forms of consideration earned by the taxpayer that result in
11683+a transfer of money to the account.
11684+(2) Money transferred from any other qualified tuition program
11685+under Section 529 of the Internal Revenue Code or from any other
11686+similar plan.
11687+(3) Money transferred from any qualified ABLE program under
11688+Section 529A of the Internal Revenue Code or any other similar
11689+plan.
11690+(f) As used in this section, "nonqualified withdrawal" means a
11691+withdrawal or distribution from a college choice 529 education savings
11692+plan that is not a qualified withdrawal.
11693+(g) As used in this section, "qualified higher education expenses"
11694+has the meaning set forth in IC 21-9-2-19.5, except that the term does
11695+not include qualified education loan repayments under Section
11696+529(c)(9) of the Internal Revenue Code.
11697+(h) As used in this section, "qualified K-12 education expenses"
11698+means expenses that are for tuition in connection with enrollment or
11699+attendance at an elementary or secondary public, private, or religious
11700+school located in Indiana and are permitted under Section 529 of the
11701+Internal Revenue Code.
11702+(i) As used in this section, "qualified withdrawal" means a
11703+withdrawal or distribution from a college choice 529 education savings
11704+plan that is made:
11705+(1) to pay for qualified higher education expenses, excluding any
11706+withdrawals or distributions used to pay for qualified higher
11707+education expenses, if the withdrawals or distributions are made
11708+from an account of a college choice 529 education savings plan
11709+that is terminated within twelve (12) months after the account is
11710+opened;
11711+(2) as a result of the death or disability of an account beneficiary;
11712+(3) because an account beneficiary received a scholarship that
11713+paid for all or part of the qualified higher education expenses of
11714+the account beneficiary, to the extent that the withdrawal or
11715+distribution does not exceed the amount of the scholarship; or
11716+(4) by a college choice 529 education savings plan as the result of
11717+a transfer of funds by a college choice 529 education savings plan
11718+from one (1) third party custodian to another.
11719+However, a qualified withdrawal does not include a withdrawal or
11720+distribution that will be used for expenses that are for tuition in
11721+ES 419—LS 6606/DI 120 271
11722+connection with enrollment or attendance at an elementary or
11723+secondary public, private, or religious school unless the school is
11724+located in Indiana. A qualified withdrawal does not include a rollover
11725+distribution or transfer of assets from a college choice 529 education
11726+savings plan to any other qualified tuition program under Section 529
11727+of the Internal Revenue Code, to any qualified ABLE program under
11728+Section 529A other than an Indiana ABLE 529A savings plan adopted
11729+by the state under IC 12-11, or to any other similar plan.
11730+(j) As used in this section, "taxpayer" means:
11731+(1) an individual filing a single return;
11732+(2) a married couple filing a joint return; or
11733+(3) for taxable years beginning after December 31, 2019, a
11734+married individual filing a separate return.
11735+(k) A taxpayer is entitled to a credit against the taxpayer's adjusted
11736+gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
11737+year equal to the least of the following:
11738+(1) The following amount:
11739+(A) For taxable years beginning before January 1, 2019, the
11740+sum of twenty percent (20%) multiplied by the amount of the
11741+total contributions that are made by the taxpayer to an account
11742+or accounts of a college choice 529 education savings plan
11743+during the taxable year and that will be used to pay for
11744+qualified higher education expenses that are not qualified K-12
11745+education expenses, plus the lesser of:
11746+(i) five hundred dollars ($500); or
11747+(ii) ten percent (10%) multiplied by the amount of the total
11748+contributions that are made by the taxpayer to an account or
11749+accounts of a college choice 529 education savings plan
11750+during the taxable year and that will be used to pay for
11751+qualified K-12 education expenses.
11752+(B) For taxable years beginning after December 31, 2018, the
11753+sum of:
11754+(i) twenty percent (20%) multiplied by the amount of the
11755+total contributions that are made by the taxpayer to an
11756+account or accounts of a college choice 529 education
11757+savings plan during the taxable year and that are designated
11758+to pay for qualified higher education expenses that are not
11759+qualified K-12 education expenses; plus
11760+(ii) twenty percent (20%) multiplied by the amount of the
11761+total contributions that are made by the taxpayer to an
11762+account or accounts of a college choice 529 education
11763+savings plan during the taxable year and that are designated
11764+ES 419—LS 6606/DI 120 272
11765+to pay for qualified K-12 education expenses.
11766+(2) One thousand five hundred dollars ($1,500), or seven hundred
11767+fifty dollars ($750) in the case of a married individual filing a
11768+separate return.
11769+(3) The amount of the taxpayer's adjusted gross income tax
11770+imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
11771+reduced by the sum of all credits (as determined without regard to
11772+this section) allowed by IC 6-3-1 through IC 6-3-7.
11773+(l) This subsection applies after December 31, 2018. At the time a
11774+contribution is made to or a withdrawal is made from an account or
11775+accounts of a college choice 529 education savings plan, the person
11776+making the contribution or withdrawal shall designate whether the
11777+contribution is made for or the withdrawal will be used for:
11778+(1) qualified higher education expenses that are not qualified
11779+K-12 education expenses; or
11780+(2) qualified K-12 education expenses.
11781+The Indiana education savings authority (IC 21-9-3) shall use
11782+subaccounting to track the designations.
11783+(m) A taxpayer who makes a contribution to a college choice 529
11784+education savings plan is considered to have made the contribution on
11785+the date that:
11786+(1) the taxpayer's contribution is postmarked or accepted by a
11787+delivery service, for contributions that are submitted to a college
11788+choice 529 education savings plan by mail or delivery service; or
11789+(2) the taxpayer's electronic funds transfer is initiated, for
11790+contributions that are submitted to a college choice 529 education
11791+savings plan by electronic funds transfer.
11792+(n) A taxpayer is not entitled to a carryback, carryover, or refund of
11793+an unused credit.
11794+(o) A taxpayer may not sell, assign, convey, or otherwise transfer the
11795+tax credit provided by this section.
11796+(p) To receive the credit provided by this section, a taxpayer must
11797+claim the credit on the taxpayer's annual state tax return or returns in
11798+the manner prescribed by the department. The taxpayer shall submit to
11799+the department all information that the department determines is
11800+necessary for the calculation of the credit provided by this section.
11801+(q) An account owner of an account of a college choice 529
11802+education savings plan must repay all or a part of the credit in a taxable
11803+year in which any nonqualified withdrawal is made from the account.
11804+The amount the taxpayer must repay is equal to the lesser of:
11805+(1) twenty percent (20%) of the total amount of nonqualified
11806+withdrawals made during the taxable year from the account; or
11807+ES 419—LS 6606/DI 120 273
11808+(2) the excess of:
11809+(A) the cumulative amount of all credits provided by this
11810+section that are claimed by any taxpayer with respect to the
11811+taxpayer's contributions to the account for all prior taxable
11812+years beginning on or after January 1, 2007; over
11813+(B) the cumulative amount of repayments paid by the account
11814+owner under this subsection for all prior taxable years
11815+beginning on or after January 1, 2008.
11816+(r) Any required repayment under subsection (q) shall be reported
11817+by the account owner on the account owner's annual state income tax
11818+return for any taxable year in which a nonqualified withdrawal is made.
11819+(s) A nonresident account owner who is not required to file an
11820+annual income tax return for a taxable year in which a nonqualified
11821+withdrawal is made shall make any required repayment on the form
11822+required under IC 6-3-4-1(2). If the nonresident account owner does
11823+not make the required repayment, the department shall issue a demand
11824+notice in accordance with IC 6-8.1-5-1.
11825+(t) The executive director of the Indiana education savings authority
11826+shall submit or cause to be submitted to the department a copy of all
11827+information returns or statements issued to account owners, account
11828+beneficiaries, and other taxpayers for each taxable year with respect to:
11829+(1) nonqualified withdrawals made from accounts, including
11830+subaccounts of a college choice 529 education savings plan for
11831+the taxable year; or
11832+(2) account closings for the taxable year.
11833+(u) The following apply to contributions made after December
11834+31, 2023:
11835+(1) For purposes of this section, all or part of a contribution
11836+made after the end of a taxable year, and not later than the
11837+due date of the taxpayer's adjusted gross income tax return
11838+for the taxable year under this article (as determined without
11839+regard to any allowable extensions), shall be considered as
11840+having been made during the taxable year preceding the
11841+contribution if:
11842+(A) the taxpayer elects to treat all or part of a contribution
11843+as occurring in the taxable year preceding the
11844+contribution;
11845+(B) the taxpayer designates the amounts of the
11846+contribution to be treated as occurring in each taxable
11847+year, in the case of a single contribution that is to be
11848+allowable under this section in two (2) separate years; and
11849+(C) the taxpayer irrevocably waives the right to claim the
11850+ES 419—LS 6606/DI 120 274
11851+contribution claimed in the taxable year preceding the
11852+contribution as occurring in the taxable year of the
11853+contribution.
11854+(2) An irrevocable election under this subsection must be
11855+made in writing at the time the contribution is made.
11856+(3) An election under this subsection shall be made in a
11857+manner as prescribed by the Indiana education savings
11858+authority.
11859+(4) The Indiana education savings authority may prescribe
11860+any forms necessary for purposes of this subsection.
11861+SECTION 36. IC 6-3-3-12.1, AS AMENDED BY THE
11862+TECHNICAL CORRECTIONS BILL OF THE 2023 GENERAL
11863+ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11864+JANUARY 1, 2024]: Sec. 12.1. (a) As used in this section, "ABLE
11865+account" has the meaning set forth in IC 12-11-14-1.
11866+(b) As used in this section, "contribution" means the amount of
11867+money directly provided to an Indiana ABLE 529A savings plan
11868+account by a taxpayer. A contribution does not include any of the
11869+following:
11870+(1) Money credited to an ABLE account as a result of bonus
11871+points or other forms of consideration earned by the taxpayer that
11872+result in a transfer of money to the ABLE account.
11873+(2) Money transferred from any qualified ABLE program under
11874+Section 529A of the Internal Revenue Code or from any other
11875+similar plan.
11876+(3) Money transferred from any qualified tuition program under
11877+Section 529 of the Internal Revenue Code or from any other
11878+similar plan.
11879+(c) As used in this section, "designated beneficiary" has the meaning
11880+set forth in IC 12-11-14-5.
11881+(d) As used in this section, "Indiana ABLE 529A savings plan"
11882+refers to the Achieving a Better Life Experience (ABLE) 529A plan
11883+established under IC 12-11.
11884+(e) As used in this section, "nonqualified withdrawal" means a
11885+withdrawal or distribution from an Indiana ABLE 529A savings plan
11886+that is not a qualified withdrawal.
11887+(f) As used in this section, "qualified disability expense" has the
11888+meaning set forth in IC 12-11-14-8.
11889+(g) As used in this section, "qualified withdrawal" means a
11890+withdrawal or distribution from an Indiana ABLE 529A savings plan
11891+that is made:
11892+(1) to pay for qualified disability expenses, excluding any
11893+ES 419—LS 6606/DI 120 275
11894+withdrawals or distributions used to pay for qualified disability
11895+expenses, if the withdrawals or distributions are made from an
11896+Indiana ABLE 529A savings plan that is terminated within twelve
11897+(12) months after the ABLE account is opened;
11898+(2) as a result of the death of a designated beneficiary; or
11899+(3) by an Indiana ABLE 529A savings plan as the result of a
11900+transfer of funds by an Indiana ABLE 529A savings plan from
11901+one (1) third party custodian to another.
11902+A qualified withdrawal does not include a rollover distribution or
11903+transfer of assets from an Indiana ABLE 529A savings plan to any
11904+other qualified ABLE program under Section 529A of the Internal
11905+Revenue Code, or to any qualified tuition program under Section 529
11906+of the Internal Revenue Code other than a college choice 529 saving
11907+education savings plan established under IC 21-9, or to any other
11908+similar plan.
11909+(h) As used in this section, "taxpayer" means:
11910+(1) an individual filing a single return;
11911+(2) a married couple filing a joint return; or
11912+(3) a married individual filing a separate return.
11913+(i) A taxpayer is entitled to a credit against the taxpayer's adjusted
11914+gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
11915+year equal to the least of the following:
11916+(1) Twenty percent (20%) of the amount of the total contributions
11917+made by the taxpayer to an ABLE account or accounts of an
11918+Indiana ABLE 529A savings plan during the taxable year.
11919+(2) Five hundred dollars ($500).
11920+(3) The amount of the taxpayer's adjusted gross income tax
11921+imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
11922+reduced by the sum of all credits (as determined without regard to
11923+this section) allowed by IC 6-3-1 through IC 6-3-7.
11924+(j) A taxpayer is not entitled to a carryback, carryover, or refund of
11925+an unused credit.
11926+(k) A taxpayer may not sell, assign, convey, or otherwise transfer the
11927+tax credit provided by this section.
11928+(l) To receive the credit provided by this section, a taxpayer must
11929+claim the credit on the taxpayer's annual state tax return or returns in
11930+the manner prescribed by the department. The taxpayer shall submit to
11931+the department all information that the department determines is
11932+necessary for the calculation of the credit provided by this section.
11933+(m) An owner of an ABLE account of an Indiana ABLE 529A
11934+savings plan must repay all or a part of the credit in a taxable year in
11935+which any nonqualified withdrawal is made from the ABLE account.
11936+ES 419—LS 6606/DI 120 276
11937+The amount the taxpayer must repay is equal to the lesser of:
11938+(1) twenty percent (20%) of the total amount of nonqualified
11939+withdrawals made during the taxable year from the ABLE
11940+account; or
11941+(2) the excess of:
11942+(A) the cumulative amount of all credits provided by this
11943+section that are claimed by any taxpayer with respect to the
11944+taxpayer's contributions to the ABLE account for all prior
11945+taxable years; over
11946+(B) the cumulative amount of repayments paid by the owner of
11947+the ABLE account under this subsection for all prior taxable
11948+years.
11949+(n) Any required repayment under subsection (m) must be reported
11950+by the owner of the ABLE account on the owner's annual state income
11951+tax return for any taxable year in which a nonqualified withdrawal is
11952+made.
11953+(o) A nonresident owner of an ABLE account who is not required
11954+to file an annual income tax return for a taxable year in which a
11955+nonqualified withdrawal is made shall make any required repayment on
11956+the form required under IC 6-3-4-1(2). If the nonresident owner of the
11957+ABLE account does not make the required repayment, the department
11958+shall issue a demand notice in accordance with IC 6-8.1-5-1.
11959+(p) The executive director of the Indiana ABLE authority shall
11960+submit or cause to be submitted to the department a copy of all
11961+information returns or statements issued to ABLE account owners,
11962+designated beneficiaries, and other taxpayers for each taxable year with
11963+respect to:
11964+(1) nonqualified withdrawals made from ABLE accounts for the
11965+taxable year; or
11966+(2) ABLE account closings for the taxable year.
11967+(q) The following apply to contributions made after December
11968+31, 2023:
11969+(1) For purposes of this section, all or part of a contribution
11970+made after the end of a taxable year, and not later than the
11971+due date of the taxpayer's adjusted gross income tax return
11972+for the taxable year under this article (as determined without
11973+regard to any allowable extensions), shall be considered as
11974+having been made during the taxable year preceding the
11975+contribution if:
11976+(A) the taxpayer elects to treat all or part of a contribution
11977+as occurring in the taxable year preceding the
11978+contribution;
11979+ES 419—LS 6606/DI 120 277
11980+(B) the taxpayer designates the amounts of the
11981+contribution to be treated as occurring in each taxable
11982+year, in the case of a single contribution that is to be
11983+allowable under this section in two (2) separate years; and
11984+(C) the taxpayer irrevocably waives the right to claim the
11985+contribution claimed in the taxable year preceding the
11986+contribution as occurring in the taxable year of the
11987+contribution.
11988+(2) An irrevocable election under this subsection must be
11989+made in writing at the time the contribution is made.
11990+(3) An election under this subsection shall be made in a
11991+manner as prescribed by the Indiana education savings
11992+authority.
11993+(4) The Indiana education savings authority may prescribe
11994+any forms necessary for purposes of this subsection.".
11995+Delete pages 44 through 48.
11996+Page 49, delete lines 1 through 13, begin a new paragraph and
11997+insert:
11998+"SECTION 37. IC 6-3-4-8, AS AMENDED BY P.L.159-2021,
268611999 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
268712000 JANUARY 1, 2024]: Sec. 8. (a) Except as provided in IC 6-3-2-27.5
268812001 and subsection (d), every employer making payments of wages subject
268912002 to tax under this article, regardless of the place where such payment is
269012003 made, who is required under the provisions of the Internal Revenue
269112004 Code to withhold, collect, and pay over income tax on wages paid by
269212005 such employer to such employee, shall, at the time of payment of such
269312006 wages, deduct and retain therefrom the amount prescribed in
269412007 withholding instructions issued by the department. The department
269512008 shall base its withholding instructions on the adjusted gross income tax
269612009 rate for persons, on the total local income tax rate that the taxpayer is
269712010 subject to under IC 6-3.6, and on the total amount of exclusions the
269812011 taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
269912012 However, the withholding instructions on the adjusted gross income of
270012013 a nonresident alien (as defined in Section 7701 of the Internal Revenue
270112014 Code) are to be based on applying not more than one (1) withholding
270212015 exclusion, regardless of the total number of exclusions that
2703-SEA 419 — CC 1 64
270412016 IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
270512017 on the taxpayer's final return for the taxable year. Such employer
270612018 making payments of any wages:
270712019 (1) shall be liable to the state of Indiana for the payment of the tax
270812020 required to be deducted and withheld under this section and shall
270912021 not be liable to any individual for the amount deducted from the
12022+ES 419—LS 6606/DI 120 278
271012023 individual's wages and paid over in compliance or intended
271112024 compliance with this section; and
271212025 (2) shall make return of and payment to the department monthly
271312026 of the amount of tax which under this article and IC 6-3.6 the
271412027 employer is required to withhold.
271512028 (b) An employer shall pay taxes withheld under subsection (a)
271612029 during a particular month to the department no later than thirty (30)
271712030 days after the end of that month. However, in place of monthly
271812031 reporting periods, the department may permit an employer to report and
271912032 pay the tax for a calendar year reporting period, if the average monthly
272012033 amount of all tax required to be withheld by the employer in the
272112034 previous calendar year does not exceed one thousand dollars ($1,000).
272212035 An employer using a reporting period (other than a monthly reporting
272312036 period) must file the employer's return and pay the tax for a reporting
272412037 period no later than the last day of the month immediately following
272512038 the close of the reporting period.
272612039 (c) For purposes of determining whether an employee is subject to
272712040 taxation under IC 6-3.6, an employer is entitled to rely on the statement
272812041 of an employee as to the employee's county of residence as represented
272912042 by the statement of address in forms claiming exemptions for purposes
273012043 of withholding, regardless of when the employee supplied the forms.
273112044 Every employee shall notify the employee's employer within five (5)
273212045 days after any change in the employee's county of residence.
273312046 (d) A county that makes payments of wages subject to tax under this
273412047 article:
273512048 (1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
273612049 (2) for the performance of the duties of the precinct election
273712050 officer imposed by IC 3 that are performed on election day;
273812051 is not required, at the time of payment of the wages, to deduct and
273912052 retain from the wages the amount prescribed in withholding
274012053 instructions issued by the department.
274112054 (e) Every employer shall, at the time of each payment made by the
274212055 employer to the department, deliver to the department a return upon the
274312056 form prescribed by the department showing, with regard to wages paid
274412057 to the employer's employees:
274512058 (1) the amount of adjusted gross income tax deducted therefrom
2746-SEA 419 — CC 1 65
274712059 in accordance with the provisions of this section;
274812060 (2) the amount of income tax, if any, imposed under IC 6-3.6 and
274912061 deducted therefrom in accordance with this section; and
275012062 (3) any other information the department may require.
275112063 Every employer making a declaration of withholding as provided in this
275212064 section shall furnish the employer's employees annually, but not later
12065+ES 419—LS 6606/DI 120 279
275312066 than thirty (30) days after the end of the calendar year, a record of the
275412067 total amount of adjusted gross income tax and the amount of each
275512068 income tax, if any, imposed under IC 6-3.6, withheld from the
275612069 employees, on the forms prescribed by the department. In addition, the
275712070 employer shall file Form WH-3 annual withholding tax reports with the
275812071 department not later than thirty-one (31) days after the end of the
275912072 calendar year.
276012073 (f) All money deducted and withheld by an employer shall
276112074 immediately upon such deduction be the money of the state, and every
276212075 employer who deducts and retains any amount of money under the
276312076 provisions of this article shall hold the same in trust for the state of
276412077 Indiana and for payment thereof to the department in the manner and
276512078 at the times provided in this article. Any employer may be required to
276612079 post a surety bond in the sum the department determines to be
276712080 appropriate to protect the state with respect to money withheld pursuant
276812081 to this section.
276912082 (g) The provisions of IC 6-8.1 relating to additions to tax in case of
277012083 delinquency and penalties shall apply to employers subject to the
277112084 provisions of this section, and for these purposes any amount deducted
277212085 or required to be deducted and remitted to the department under this
277312086 section shall be considered to be the tax of the employer, and with
277412087 respect to such amount the employer shall be considered the taxpayer.
277512088 In the case of a corporate or partnership employer, every officer,
277612089 employee, or member of such employer, who, as such officer,
277712090 employee, or member is under a duty to deduct and remit such taxes,
277812091 shall be personally liable for such taxes, penalties, and interest.
277912092 (h) Amounts deducted from wages of an employee during any
278012093 calendar year in accordance with the provisions of this section shall be
278112094 considered to be in part payment of the tax imposed on such employee
278212095 for the employee's taxable year which begins in such calendar year, and
278312096 a return made by the employer under subsection (b) shall be accepted
278412097 by the department as evidence in favor of the employee of the amount
278512098 so deducted from the employee's wages. Where the total amount so
278612099 deducted exceeds the amount of tax on the employee as computed
278712100 under this article and IC 6-3.6, the department shall, after examining
278812101 the return or returns filed by the employee in accordance with this
2789-SEA 419 — CC 1 66
279012102 article and IC 6-3.6, refund the amount of the excess deduction.
279112103 However, under rules promulgated by the department, the excess or any
279212104 part thereof may be applied to any taxes or other claim due from the
279312105 taxpayer to the state of Indiana or any subdivision thereof. In the event
279412106 that the excess tax deducted is less than one dollar ($1), no refund shall
279512107 be made.
12108+ES 419—LS 6606/DI 120 280
279612109 (i) This section shall in no way relieve any taxpayer from the
279712110 taxpayer's obligation of filing a return or returns at the time required
279812111 under this article and IC 6-3.6, and, should the amount withheld under
279912112 the provisions of this section be insufficient to pay the total tax of such
280012113 taxpayer, such unpaid tax shall be paid at the time prescribed by
280112114 section 5 of this chapter.
280212115 (j) Notwithstanding subsection (b), an employer of a domestic
280312116 service employee that enters into an agreement with the domestic
280412117 service employee to withhold federal income tax under Section 3402
280512118 of the Internal Revenue Code may withhold Indiana income tax on the
280612119 domestic service employee's wages on the employer's Indiana
280712120 individual income tax return in the same manner as allowed by Section
280812121 3510 of the Internal Revenue Code.
280912122 (k) To the extent allowed by Section 1137 of the Social Security
281012123 Act, an employer of a domestic service employee may report and remit
281112124 state unemployment insurance contributions on the employee's wages
281212125 on the employer's Indiana individual income tax return in the same
281312126 manner as allowed by Section 3510 of the Internal Revenue Code.
281412127 (l) A person who knowingly fails to remit trust fund money as set
2815-forth in this section commits a Level 6 felony.
2816-SECTION 21. IC 6-3-7-3, AS AMENDED BY P.L.146-2008,
2817-SECTION 323, IS AMENDED TO READ AS FOLLOWS
2818-[EFFECTIVE JULY 1, 2023]: Sec. 3. (a) All revenues derived from
2819-collection of the adjusted gross income tax imposed on corporations
2820-shall be deposited in the state general fund.
2821-(b) All revenues derived from collection of the adjusted gross
2822-income tax imposed on persons shall be deposited in the state general
2823-fund.
2824-(c) All revenues derived from adjusted gross income tax
2825-computed from a partnership that has made an election to be
2826-subjected to tax directly at the partnership level under IC 6-3-4.5
2827-shall be deposited in the state general fund. For purposes of this
2828-subsection, "adjusted gross income tax" means any tax for which
2829-the partnership is directly subject to as the result of an election
2830-under IC 6-3-4.5, regardless of the provision under which the tax
2831-is computed.
2832-SEA 419 — CC 1 67
2833-SECTION 22. IC 6-3.1-35-2, AS ADDED BY P.L.137-2022,
2834-SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2835-JULY 1, 2023]: Sec. 2. The following definitions apply throughout this
2836-chapter:
2837-(1) "Authority" refers to the Indiana housing and community
2838-development authority created by IC 5-20-1-3.
2839-(2) "Eligibility statement" refers to the statement issued by the
2840-authority to an eligible applicant under section 7 of this chapter.
2841-(3) "Eligible applicant" means a taxpayer who is:
2842-(A) an owner of a qualified project; or
2843-(B) a shareholder, member, or partner of an owner of a
2844-qualified project that is designated by the owner in the manner
2845-prescribed by the authority.
2846-(4) "Federal tax credit" means a federal low income housing
2847-credit under Section 42 of the Internal Revenue Code that is a
2848-thirty percent (30%) present value credit. The term does not
2849-include a seventy percent (70%) present value credit under
2850-Section 42 of the Internal Revenue Code for certain new
2851-buildings.
2852-(5) "Holder of a state tax credit" for a taxable year in a qualified
2853-project's state tax credit period means:
2854-(A) the eligible applicant for the qualified project;
2855-(B) a shareholder, member, or partner of the owner of the
2856-qualified project; or
2857-(C) a successor, assignee, or transferee of the eligible
2858-applicant under section 6 of this chapter;
2859-that has a right to claim all or part of the tax credit for the taxable
12128+forth in this section commits a Level 6 felony.".
12129+Page 49, between lines 29 and 30, begin a new paragraph and insert:
12130+"SECTION 39. IC 6-3.1-17.1 IS ADDED TO THE INDIANA
12131+CODE AS A NEW CHAPTER TO READ AS FOLLOWS
12132+[EFFECTIVE JANUARY 1, 2024]:
12133+Chapter 17.1. Historic Rehabilitation Tax Credit
12134+Sec. 1. This chapter applies to taxable years beginning after
12135+December 31, 2023.
12136+Sec. 2. As used in this chapter, "pass through entity" means:
12137+(1) a corporation that is exempt from the adjusted gross
12138+income tax under IC 6-3-2-2.8(2);
12139+(2) a partnership;
12140+(3) a limited liability company; or
12141+(4) a limited liability partnership.
12142+Sec. 3. As used in this chapter, "qualified historic structure"
12143+means any building that is:
12144+(1) a certified historic structure (as defined in Section 47(c)(3)
12145+of the Internal Revenue Code);
12146+(2) individually listed on the register of Indiana historic sites
12147+and historic structures; or
12148+(3) located in, and contributes to, a district listed in the
12149+register of Indiana historic sites and historic structures.
12150+Sec. 4. As used in this chapter, "qualified rehabilitation
12151+ES 419—LS 6606/DI 120 281
12152+expenditure" means the costs and expenses incurred by a qualified
12153+taxpayer in the restoration and preservation of a qualified historic
12154+structure that are defined as a qualified rehabilitation expenditure
12155+in Section 47(c)(2) of the Internal Revenue Code.
12156+Sec. 5. As used in this chapter, "qualified taxpayer" means the
12157+owner of a qualified historic structure or any other person who
12158+may qualify for the federal rehabilitation tax credit allowable
12159+under Section 47 of the Internal Revenue Code.
12160+Sec. 6. As used in this chapter, "state tax liability" means a
12161+taxpayer's total tax liability incurred under IC 6-3-1 through
12162+IC 6-3-7 (the adjusted gross income tax), as computed after the
12163+application of all credits that under IC 6-3.1-1-2 are to be applied
12164+before the credit provided by this chapter.
12165+Sec. 7. (a) A qualified taxpayer is entitled to a credit as allowed,
12166+but not required, by the Indiana economic development
12167+corporation under IC 5-28-6-9 against the qualified taxpayer's
12168+state tax liability in the taxable year in which the qualified
12169+taxpayer completes restoration and preservation of a qualified
12170+historic structure if the total amount of qualified rehabilitation
12171+expenditures incurred by the qualified taxpayer equals five
12172+thousand dollars ($5,000) or more.
12173+(b) The amount of the credit is equal to:
12174+(1) twenty-five percent (25%) of the qualified rehabilitation
12175+expenditures that the qualified taxpayer makes for the
12176+restoration and preservation of a qualified historic structure;
12177+or
12178+(2) thirty percent (30%) of the qualified rehabilitation
12179+expenditures that the qualified taxpayer makes for the
12180+restoration and preservation of a qualified historic structure
12181+that is:
12182+(A) exempt from federal income taxation under Section
12183+501(3) of the Internal Revenue Code; or
12184+(B) not income producing.
12185+(c) If the Indiana economic development corporation awards
12186+credits under this chapter, the department of state revenue and the
12187+office of community and rural affairs shall administrate the
12188+allowance of the credits.
12189+Sec. 8. (a) If a pass through entity is entitled to a credit under
12190+section 7 of this chapter but does not have state tax liability against
12191+which the credit may be applied, a shareholder, partner, or
12192+member of the pass through entity is entitled to a credit equal to:
12193+(1) the credit determined for the pass through entity for the
12194+ES 419—LS 6606/DI 120 282
12195+taxable year; multiplied by
12196+(2) the percentage of the pass through entity's distributive
12197+income to which the shareholder, partner, or member is
12198+entitled.
12199+(b) The credit provided under subsection (a) is in addition to a
12200+credit to which a shareholder, partner, or member of a pass
12201+through entity is otherwise entitled under this chapter. However,
12202+a pass through entity and a shareholder, partner, or member of the
12203+pass through entity may not claim more than one (1) credit for the
12204+same qualified expenditure.
12205+(c) A pass through entity (other than a pass through entity
12206+described in section 2(1) of this chapter) and its partners,
12207+beneficiaries, or members may allocate the credit among its
12208+partners, beneficiaries, or members of the pass through entity as
12209+provided by written agreement without regard to their sharing of
12210+other tax or economic attributes. The pass through entity shall
12211+provide to the department a copy of such agreements, a list of
12212+partners, beneficiaries, or members of the pass through entity, and
12213+their respective shares of the credit resulting from such agreements
12214+in the manner prescribed by the department.
12215+Sec. 9. To obtain a credit under this chapter, a qualified
12216+taxpayer must claim the credit on the qualified taxpayer's annual
12217+state tax return or returns in the manner prescribed by the
12218+department. The qualified taxpayer shall submit to the department
12219+all information that the department determines is necessary for the
12220+allowance and calculation of the credit provided by this chapter.
12221+Sec. 10. (a) If the credit provided by this chapter exceeds a
12222+qualified taxpayer's state tax liability for the taxable year for
12223+which the credit is first claimed, the excess may be carried over to
12224+succeeding taxable years and used as a credit against the tax
12225+otherwise due and payable by the qualified taxpayer under IC 6-3
12226+during those taxable years. Each time that the credit is carried
12227+over to a succeeding taxable year, the credit is to be reduced by the
12228+amount that was used as a credit during the immediately preceding
12229+taxable year. The credit provided by this chapter may be carried
12230+forward and applied to succeeding taxable years for ten (10)
12231+taxable years following the unused credit year.
12232+(b) A qualified taxpayer is not entitled to any carryback or
12233+refund of any unused credit.
12234+Sec. 11. (a) A qualified taxpayer may assign any part of the
12235+credit that the qualified taxpayer may claim under this chapter. A
12236+credit that is assigned under this section remains subject to this
12237+ES 419—LS 6606/DI 120 283
12238+chapter. If a qualified taxpayer assigns a part of a credit during a
12239+taxable year, the assignee may not subsequently assign all or part
12240+of the credit to another qualified taxpayer. A qualified taxpayer
12241+may make only one (1) assignment of a credit.
12242+(b) An assignment of a credit must be in writing, and both the
12243+qualified taxpayer and assignee shall report the assignment on the
12244+qualified taxpayer's and the assignee's state tax returns for the
12245+year in which the assignment is made, in the manner prescribed by
12246+the department. A qualified taxpayer may not receive value in
12247+connection with an assignment under this section that exceeds the
12248+value of the part of the credit assigned.
12249+Sec. 12. For each state fiscal year beginning after June 30, 2023,
12250+and ending before July 1, 2033, the aggregate amount of state tax
12251+credits allowed under this chapter may not exceed ten million
12252+dollars ($10,000,000).
12253+Sec. 13. The department or the office of community and rural
12254+affairs may adopt rules under IC 4-22-2, including emergency rules
12255+under IC 4-22-2-37.1, governing this chapter.
12256+Sec. 14. This chapter expires January 1, 2033.".
12257+Page 53, between lines 14 and 15, begin a new paragraph and insert:
12258+"SECTION 43. IC 6-3.1-38.3 IS ADDED TO THE INDIANA
12259+CODE AS A NEW CHAPTER TO READ AS FOLLOWS
12260+[EFFECTIVE JANUARY 1, 2024]:
12261+Chapter 38.3. Employment of Individuals with Disability Tax
12262+Credit
12263+Sec. 1. As used in this chapter, "pass through entity" means:
12264+(1) a corporation that is exempt from the adjusted gross
12265+income tax under IC 6-3-2-2.8(2);
12266+(2) a partnership;
12267+(3) a trust;
12268+(4) an estate;
12269+(5) a limited liability company; or
12270+(6) a limited liability partnership.
12271+Sec. 2. As used in this chapter, "state tax liability" means the
12272+taxpayer's total tax liability that is incurred under:
12273+(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
12274+(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15
12275+(the nonprofit agricultural organization health coverage tax);
12276+and
12277+(3) IC 6-5.5 (the financial institutions tax);
12278+as computed after the application of the credits that, under
12279+IC 6-3.1-1-2, are to be applied before the credit provided by this
12280+ES 419—LS 6606/DI 120 284
12281+chapter.
12282+Sec. 3. (a) Except as provided in subsections (b) and (c), and
12283+subject to section 4 of this chapter, a taxpayer that employs an
12284+individual who:
12285+(1) is referred to the employer for employment through a
12286+vocational rehabilitation services program for individuals
12287+with a disability; and
12288+(2) was initially hired by the taxpayer after December 31,
12289+2023;
12290+during a taxable year is entitled to a credit in the amount
12291+determined under section 5 or 6 of this chapter, as applicable,
12292+against the taxpayer's state tax liability for the taxable year based
12293+on the wages paid to the particular employee during the taxable
286012294 year.
2861-(6) "Qualified basis" of a qualified project has the meaning set
2862-forth in Section 42 of the Internal Revenue Code.
2863-(7) "Qualified project" means a qualified low income building (as
2864-defined in Section 42(c) of the Internal Revenue Code):
2865-(A) that is located in Indiana;
2866-(B) for which a federal affordable housing tax credit was
2867-awarded using a thirty percent (30%) present value of the
2868-qualified basis of the building; and
2869-(C) that is financed by tax exempt bonds that are subject to the
2870-private activity bond volume cap (under Section 42(h)(4) of
2871-the Internal Revenue Code).
2872-(8) "State tax credit" means the tax credit provided by this
2873-chapter.
2874-(9) "State tax credit period" for a qualified project means the
2875-SEA 419 — CC 1 68
2876-period of five (5) taxable years beginning with the taxable year in
2877-which any amount of the federal tax credit for the qualified
2878-project is first claimed by a taxpayer. a building in the project is
2879-placed into service.
2880-(10) "State tax liability" means a taxpayer's total tax liability
2881-incurred under:
2882-(A) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
2883-(B) IC 6-5.5 (the financial institutions tax);
2884-(C) IC 27-1-18-2 (the insurance premiums tax); and
2885-(D) IC 27-1-20-12 (the insurance premiums retaliatory tax);
2886-as computed after the application of the credits that under
2887-IC 6-3.1-1-2 are to be applied before the credit provided by this
2888-chapter.
2889-(11) "Tax credit application" means an application submitted by
2890-an eligible applicant to the authority under section 7 of this
2891-chapter.
2892-(12) "Taxpayer" means an individual, a corporation, an S
2893-corporation, a partnership, a limited partnership, a limited liability
2894-partnership, a limited liability company, or a joint venture.
2895-SECTION 23. IC 6-3.1-35-3, AS ADDED BY P.L.137-2022,
2896-SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2897-JULY 1, 2023]: Sec. 3. (a) Except as otherwise provided in this
2898-chapter, for each taxable year in the state tax credit period of a
2899-qualified project, the holder of a state tax credit awarded under this
2900-chapter for the qualified project is entitled to a credit against the
2901-holder's state tax liability for the taxable year in an amount equal to:
2902-(1) the percentage of the state tax credit for the taxable year that
2903-the holder retains at the end of the last day of the taxable year, as
2904-determined under subsection (c); multiplied by
2905-(2) the amount of the state tax credit for the qualified project for
2906-the taxable year, as determined under subsections (d) and (e).
2907-(b) At the time an eligibility statement is issued to an eligible
2908-applicant, the eligible applicant is considered to have acquired one
2909-hundred percent (100%) of the state tax credit for each taxable year in
2910-the state tax credit period of the qualified project.
2911-(c) The percentage of a state tax credit for a taxable year that a
2912-holder retains at the end of the last day of a taxable year under
2913-subsection (a)(1) is equal to:
2914-(1) the sum of the percentages of the state tax credit for the
2915-taxable year that the holder acquires before the end of the last day
2916-of the taxable year; minus
2917-(2) the sum of the percentages of the state tax credit for the
2918-SEA 419 — CC 1 69
2919-taxable year that the holder transfers before the end of the last day
2920-of the taxable year.
2921-(d) The amount of a state tax credit for a taxable year in the state tax
2922-credit period of a qualified project under subsection (a)(2) is equal to:
2923-(1) a factor equal to:
2924-(A) one (1); divided by
2925-(B) the number of taxable years in the state tax credit period
2926-for the qualified project; multiplied by
2927-(2) the lesser of:
2928-(A) the amount of the total federal credit allowed for the
2929-qualified project over the credit period as defined by
2930-Section 42(f) of the Internal Revenue Code (based as shown
2931-on Internal Revenue Service Form 8609, Line 1(b) (annual
2932-amount multiplied by ten (10) years)), if available, for the
2933-qualified project; or
2934-(B) the maximum aggregate amount of state tax credits
2935-awarded for the qualified project, as stated in the eligibility
2936-statement issued under section 7 of this chapter.
2937-(e) The department shall determine the amounts of the state tax
2938-credits specified under subsection (d) for each taxable year in the state
2939-tax credit period of each qualified project as those amounts are able to
2940-be computed and promptly publish the amounts on the department's
2941-Internet web site website to assist holders in claiming the state tax
2942-credit provided by this chapter.
2943-SECTION 24. IC 6-3.1-35-7, AS ADDED BY P.L.137-2022,
2944-SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2945-JULY 1, 2023]: Sec. 7. (a) An eligible applicant who wishes to obtain
2946-the state tax credit provided by this chapter for a qualified project must
2947-submit an application to the authority after June 30, 2023, and before
2948-January 1, 2028, in the manner prescribed by the authority.
2949-(b) An application submitted under subsection (a) must include:
2950-(1) the name and address of the qualified project;
2951-(2) the name and address of the owner of the qualified project;
12295+(b) A taxpayer that has received an authorization certificate
12296+from the United States Department of Labor, Wage and Hour
12297+Division, under Section 14(c) of the federal Fair Labor Standards
12298+Act of 1938, as amended (29 U.S.C. 201 et seq.), is not eligible for
12299+a credit under this chapter.
12300+(c) A taxpayer is not eligible for a credit under this chapter for
12301+employment of a particular employee described in subsection (a)
12302+if the employee was hired within the previous twelve (12) months
12303+to replace a former employee who was terminated, unless the
12304+employee who is being replaced:
12305+(1) was terminated for misconduct in connection with that
12306+employee's employment; or
12307+(2) voluntarily left that employee's position.
12308+Sec. 4. To be eligible for the credit under this chapter, a
12309+taxpayer must employ an individual described in section 3(a) of
12310+this chapter who works at least an average of twenty (20) hours per
12311+week for the employer in a similar setting and at a rate that is
12312+comparable to other employees of the taxpayer who perform the
12313+same or similar tasks.
12314+Sec. 5. (a) This section applies to a taxpayer that satisfies the
12315+following requirements:
12316+(1) The taxpayer is a benefit corporation (as defined in
12317+IC 23-1.3-2-3).
12318+(2) The taxpayer employs not more than fifty (50) individuals.
12319+(3) The majority of the taxpayer's employees are individuals
12320+described in section 3(a) of this chapter.
12321+(b) The amount of the tax credit is determined according to the
12322+following:
12323+ES 419—LS 6606/DI 120 285
12324+(1) In the first taxable year for which the credit is claimed
12325+with respect to wages paid to a particular employee, an
12326+amount equal to thirty percent (30%) of the wages paid to the
12327+employee during the taxable year.
12328+(2) In the second taxable year for which the credit is claimed
12329+with respect to wages paid to a particular employee, an
12330+amount equal to forty percent (40%) of the wages paid to the
12331+employee during the taxable year.
12332+(3) In the third and each subsequent taxable year for which
12333+the credit is claimed with respect to wages paid to a particular
12334+employee, an amount equal to fifty percent (50%) of the
12335+wages paid to the employee during the taxable year.
12336+Sec. 6. (a) This section applies to a taxpayer that does not meet
12337+the requirements under section 5(a) of this chapter.
12338+(b) The amount of the tax credit is determined according to the
12339+following:
12340+(1) In the first taxable year for which the credit is claimed
12341+with respect to wages paid to a particular employee:
12342+(A) in the case of a taxpayer with a total number of
12343+employees that is less than fifty (50), an amount equal to
12344+twenty percent (20%) of the wages paid to the employee
12345+during the taxable year; and
12346+(B) in the case of an eligible taxpayer with a total number
12347+of employees that is at least fifty (50) but less than five
12348+hundred (500), an amount equal to twenty percent (20%)
12349+of the wages paid to the employee during the taxable year.
12350+(2) In the second taxable year for which the credit is claimed
12351+with respect to wages paid to a particular employee:
12352+(A) in the case of an eligible taxpayer with a total number
12353+of employees that is less than fifty (50), an amount equal to
12354+thirty percent (30%) of the wages paid to the employee
12355+during the taxable year; and
12356+(B) in the case of an eligible taxpayer with a total number
12357+of employees that is at least fifty (50) but less than five
12358+hundred (500), an amount equal to thirty percent (30%) of
12359+the wages paid to the employee during the taxable year.
12360+(3) In the third and each subsequent taxable year for which
12361+the credit is claimed with respect to wages paid to a particular
12362+employee:
12363+(A) in the case of an eligible taxpayer with a total number
12364+of employees that is less than fifty (50), an amount equal to
12365+forty percent (40%) of the wages paid to the employee
12366+ES 419—LS 6606/DI 120 286
12367+during the taxable year; and
12368+(B) in the case of an eligible taxpayer with a total number
12369+of employees that is at least fifty (50) but less than five
12370+hundred (500), an amount equal to forty percent (40%) of
12371+the wages paid to the employee during the taxable year.
12372+Sec. 7. If a pass through entity is entitled to a credit under this
12373+chapter but does not have state tax liability against which the tax
12374+credit may be applied, an individual who is a shareholder, partner,
12375+beneficiary, or member of the pass through entity is entitled to a
12376+tax credit equal to:
12377+(1) the tax credit determined for the pass through entity for
12378+the taxable year; multiplied by
12379+(2) the percentage of the pass through entity's distributive
12380+income to which the shareholder, partner, beneficiary, or
12381+member is entitled.
12382+The credit provided under this section is in addition to a tax credit
12383+to which a shareholder, partner, beneficiary, or member of a pass
12384+through entity is entitled. However, a pass through entity and an
12385+individual who is a shareholder, partner, beneficiary, or member
12386+of a pass through entity may not claim more than one (1) credit.
12387+Sec. 8. In order to receive the credit provided under this
12388+chapter, a taxpayer must claim the credit on the taxpayer's annual
12389+state tax return in the manner prescribed by the department. The
12390+taxpayer shall submit to the department any information that the
12391+department determines is necessary for the calculation of the
12392+credit.
12393+Sec. 9. (a) If the amount of the credit determined under section
12394+5 or 6 of this chapter, as applicable, for a taxpayer in a taxable
12395+year exceeds the taxpayer's state tax liability for that taxable year,
12396+the taxpayer may carry the excess credit over for a period not to
12397+exceed the taxpayer's following five (5) taxable years. The amount
12398+of the credit carryover from a taxable year shall be reduced to the
12399+extent that the carryover is used by the taxpayer to obtain a credit
12400+under this chapter for any subsequent taxable year. A taxpayer is
12401+not entitled to a carryback or a refund of any unused credit
12402+amount.
12403+(b) A taxpayer may not assign any part of a credit to which the
12404+taxpayer is entitled under this chapter.
12405+Sec. 10. This chapter expires December 31, 2028.
12406+SECTION 44. IC 6-3.6-3-3, AS AMENDED BY P.L.247-2017,
12407+SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12408+JULY 1, 2023]: Sec. 3. (a) Except as provided in subsection (f), an
12409+ES 419—LS 6606/DI 120 287
12410+ordinance adopted under this article takes effect as provided in this
12411+section.
12412+(b) An ordinance that adopts, increases, decreases, or rescinds a tax
12413+or a tax rate takes effect as follows:
12414+(1) An ordinance adopted after December 31 of the immediately
12415+preceding year and before September 1 of the current year takes
12416+effect on October 1 of the current year.
12417+(2) An ordinance adopted after August 31 and before November
12418+1 of the current year takes effect on January 1 of the following
12419+year.
12420+(3) An ordinance adopted after October 31 of the current year and
12421+before January 1 of the following year takes effect on October 1
12422+of the following year.
12423+(c) An ordinance that grants, increases, decreases, rescinds, or
12424+changes a credit against the property tax liability of a taxpayer takes
12425+effect as follows:
12426+(1) An ordinance adopted after December 31 of the immediately
12427+preceding year and before November 2 of the current year takes
12428+effect on January 1 of, and applies to property taxes first due and
12429+payable in, the year immediately following the year in which the
12430+ordinance is adopted.
12431+(2) An ordinance adopted after November 1 of the current year
12432+and before January 1 of the immediately succeeding year takes
12433+effect on January 1 of, and applies to property taxes first due and
12434+payable in, the year that follows the current year by two (2) years.
12435+(d) An ordinance that grants, increases, decreases, rescinds, or
12436+changes a distribution or allocation of taxes takes effect as follows:
12437+(1) An ordinance adopted after December 31 of the immediately
12438+preceding year and before November 2 of the current year takes
12439+effect January 1 of the year immediately following the year in
12440+which the ordinance is adopted.
12441+(2) An ordinance adopted after November 1 of the current year
12442+and before January 1 of the immediately succeeding year takes
12443+effect January 1 of the year that follows the current year by two
12444+(2) years.
12445+(e) An ordinance not described in subsections (b) through (d) takes
12446+effect as provided under IC 36 for other ordinances of the
12447+governmental entity adopting the ordinance.
12448+(f) An ordinance described in section 7(e) or 7.5(e) of this
12449+chapter that changes a tax rate or changes the allocation of
12450+revenue received from a tax rate does not take effect as provided
12451+under this section if the county adopting body fails to meet the
12452+ES 419—LS 6606/DI 120 288
12453+required deadlines for notice described in section 7(e) or 7.5(e) of
12454+this chapter. If an ordinance does not take effect, the tax rate or
12455+allocation, as applicable, that is subject to the proposed change in
12456+the ordinance remains frozen at the previous year's allocation
12457+amount or tax rate unless, or until, a subsequent ordinance is
12458+adopted and the required deadlines for notice described in section
12459+7(e) or 7.5(e) of this chapter are met.
12460+SECTION 45. IC 6-3.6-3-4, AS ADDED BY P.L.243-2015,
12461+SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12462+JULY 1, 2023]: Sec. 4. (a) Except for a tax rate that has an expiration
12463+date, and except as provided in section 3(f) of this chapter, a tax rate
12464+remains in effect until the effective date of an ordinance that increases,
12465+decreases, or rescinds that tax rate.
12466+(b) A tax rate may not be changed more than once each year under
12467+this article.
12468+SECTION 46. IC 6-3.6-3-7, AS AMENDED BY P.L.154-2020,
12469+SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12470+JULY 1, 2023]: Sec. 7. (a) This section applies to a county in which the
12471+county adopting body is a local income tax council.
12472+(b) Before a member of the local income tax council may propose
12473+an ordinance under section 8 of this chapter, or vote on a proposed
12474+ordinance (including a proposed ordinance under section 8(e) of this
12475+chapter that is being considered by the local income tax council as a
12476+whole as required under section 9.5 of this chapter (before its
12477+expiration)), the member must hold a public hearing on the proposed
12478+ordinance and provide the public with notice of the time and place
12479+where the public hearing will be held.
12480+(c) The notice required by subsection (b) must be given in
12481+accordance with IC 5-3-1 and include the proposed ordinance or
12482+resolution to propose an ordinance.
12483+(d) In addition to the notice required by subsection (b), the adopting
12484+body shall also provide a copy of the notice to all taxing units in the
12485+county at least ten (10) days before the public hearing.
12486+(e) If a county adopting body makes any fiscal decision that has
12487+a financial impact to an underlying local taxing unit, the decision
12488+must be made, and notice must be given to the affected local taxing
12489+unit, by August 1 of a year. If a county adopting body passes an
12490+ordinance changing the allocation of local income tax revenue to a
12491+local taxing unit, the county adopting body must provide direct
12492+notice, in addition to the public notice described in subsection (b),
12493+to the affected local taxing unit within fifteen (15) days of the
12494+passage of the ordinance.
12495+ES 419—LS 6606/DI 120 289
12496+SECTION 47. IC 6-3.6-3-7.5, AS AMENDED BY P.L.247-2017,
12497+SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12498+JULY 1, 2023]: Sec. 7.5. (a) This section applies to a county in which
12499+the county adopting body is the county council.
12500+(b) Before the county council may vote on a proposed ordinance
12501+under this article, the county council must hold a public hearing on the
12502+proposed ordinance and provide the public with notice of the date,
12503+time, and place of the public hearing.
12504+(c) The notice required by subsection (b) must be given in
12505+accordance with IC 5-3-1 and include the proposed ordinance.
12506+(d) In addition to the notice required by subsection (b), the adopting
12507+body shall also provide a copy of the notice to all taxing units in the
12508+county at least ten (10) days before the public hearing.
12509+(e) If a county adopting body makes any fiscal decision that has
12510+a financial impact to an underlying local taxing unit, the decision
12511+must be made, and notice must be given to the affected local taxing
12512+unit, by August 1 of a year. If a county adopting body passes an
12513+ordinance changing the allocation of local income tax revenue to a
12514+local taxing unit, the county adopting body must provide direct
12515+notice, in addition to the public notice described in subsection (b),
12516+to the affected local taxing unit within fifteen (15) days of the
12517+passage of the ordinance.
12518+SECTION 48. IC 6-3.6-6-2.7, AS AMENDED BY P.L.137-2022,
12519+SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12520+JULY 1, 2023]: Sec. 2.7. (a) A county fiscal body may adopt an
12521+ordinance to impose a tax rate for correctional facilities and
12522+rehabilitation facilities in the county. The tax rate must be in
12523+increments of:
12524+(1) in the case of a county with bonds or lease agreements
12525+outstanding on July 1, 2023, for which a pledge of tax revenue
12526+from revenue received under a tax rate imposed under this
12527+section is made, one-hundredth of one percent (0.01%) and
12528+may not exceed three-tenths of one percent (0.3%); and
12529+(2) in the case of a county with no bonds or lease agreements
12530+outstanding on July 1, 2023, for which a pledge of tax revenue
12531+from revenue received under a tax rate imposed under this
12532+section is made, one-hundredth of one percent (0.01%) and may
12533+not exceed two-tenths of one percent (0.2%).
12534+Not more than an amount equal to the amount of revenue that is
12535+attributable to two-tenths of one percent (0.2%) of a tax rate
12536+imposed under this section may be used for operating expenses for
12537+correctional facilities and rehabilitation facilities in the county.
12538+ES 419—LS 6606/DI 120 290
12539+(b) The tax rate imposed under this section may not be in effect for
12540+more than:
12541+(1) twenty-two (22) years, in the case of a tax rate imposed in an
12542+ordinance adopted before January 1, 2019; or
12543+(2) twenty-five (25) years, in the case of a tax rate imposed in an
12544+ordinance adopted on or after January 1, 2019.
12545+If an ordinance is adopted after June 30, 2019, to impose a tax rate
12546+under this section, not more than twenty percent (20%) of the revenue
12547+from the tax rate under this section may be used for operating expenses
12548+for correctional facilities and rehabilitation facilities in the county.
12549+(b) (c) The revenue generated by a tax rate imposed under this
12550+section must be distributed directly to the county before the remainder
12551+of the expenditure rate revenue is distributed. The revenue shall be
12552+maintained in a separate dedicated county fund and used by the county
12553+only for paying for correctional facilities and rehabilitation facilities in
12554+the county.
12555+SECTION 49. IC 6-3.6-6-8, AS AMENDED BY P.L.247-2017,
12556+SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12557+JULY 1, 2023]: Sec. 8. (a) This section applies to the allocation of
12558+additional revenue from a tax under this chapter to public safety
12559+purposes. Funding dedicated for a PSAP under a former tax continues
12560+to apply under this chapter until it is rescinded or modified. If funding
12561+was not dedicated for a PSAP under a former tax, the adopting body
12562+may adopt a resolution providing that all or part of the additional
12563+revenue allocated to public safety is to be dedicated for a PSAP. The
12564+resolution first applies in the following year and then thereafter until it
12565+is rescinded or modified. Funding dedicated for a PSAP shall be
12566+allocated and distributed as provided in IC 6-3.6-11-4.
12567+(b) Except as provided in subsection subsections (c) and (d), the
12568+amount of the certified distribution that is allocated to public safety
12569+purposes, and after making allocations under IC 6-3.6-11, shall be
12570+allocated to the county and to each municipality in the county that is
12571+carrying out or providing at least one (1) public safety purpose. For
12572+purposes of this subsection, in the case of a consolidated city, the total
12573+property taxes imposed by the consolidated city include the property
12574+taxes imposed by the consolidated city and all special taxing districts
12575+(except for a public library district, a public transportation corporation,
12576+and a health and hospital corporation), and all special service districts.
12577+The amount allocated under this subsection to a county or municipality
12578+is equal to the result of:
12579+(1) the amount of the remaining certified distribution that is
12580+allocated to public safety purposes; multiplied by
12581+ES 419—LS 6606/DI 120 291
12582+(2) a fraction equal to:
12583+(A) in the case of a county that initially imposed a rate for
12584+public safety under IC 6-3.5-6 (repealed), the result of the total
12585+property taxes imposed in the county by the county or
12586+municipality for the calendar year preceding the distribution
12587+year, divided by the sum of the total property taxes imposed in
12588+the county by the county and each municipality in the county
12589+that is entitled to a distribution under this section for that
12590+calendar year; or
12591+(B) in the case of a county that initially imposed a rate for
12592+public safety under IC 6-3.5-1.1 (repealed) or a county that did
12593+not impose a rate for public safety under either IC 6-3.5-1.1
12594+(repealed) or IC 6-3.5-6 (repealed), the result of the attributed
12595+allocation amount of the county or municipality for the
12596+calendar year preceding the distribution year, divided by the
12597+sum of the attributed allocation amounts of the county and
12598+each municipality in the county that is entitled to a distribution
12599+under this section for that calendar year.
12600+(c) A fire department, volunteer fire department, or emergency
12601+medical services provider that:
12602+(1) provides fire protection or emergency medical services within
12603+the county; and
12604+(2) is operated by or serves a political subdivision that is not
12605+otherwise entitled to receive a distribution of tax revenue under
12606+this section;
12607+may, before July 1 of a year, apply to the adopting body for a
12608+distribution of tax revenue under this section during the following
12609+calendar year. The adopting body shall review an application submitted
12610+under this subsection and may, before September 1 of a year, adopt a
12611+resolution requiring that one (1) or more of the applicants shall receive
12612+a specified amount of the tax revenue to be distributed under this
12613+section during the following calendar year. The adopting body shall
12614+provide a copy of the resolution to the county auditor and the
12615+department of local government finance not more than fifteen (15) days
12616+after the resolution is adopted. A resolution adopted under this
12617+subsection and provided in a timely manner to the county auditor and
12618+the department applies only to distributions in the following calendar
12619+year. Any amount of tax revenue distributed under this subsection to a
12620+fire department, volunteer fire department, or emergency medical
12621+services provider shall be distributed before the remainder of the tax
12622+revenue is allocated under subsection (b).
12623+(d) From the amount of the certified distribution that is
12624+ES 419—LS 6606/DI 120 292
12625+allocated to public safety purposes, and after making allocations
12626+under IC 6-3.6-11, the adopting body may adopt a resolution that
12627+one (1) or more township fire departments that:
12628+(1) provide fire protection services within the county; and
12629+(2) are not participating units in a fire protection district or
12630+fire protection territory;
12631+shall receive an amount of the tax revenue to be distributed under
12632+this section during the following calendar year up to the amount of
12633+revenue that is attributable to five one-hundredths of one percent
12634+(0.05%) of the tax rate imposed for allocations to public safety
12635+purposes. A resolution adopted under this subsection must include
12636+information on the service area for the township fire department.
12637+Any distribution under this subsection must be based on the
12638+assessed value of real property, not including land, that is served
12639+by the township fire department. The adopting body shall provide
12640+a copy of the resolution to the county auditor and the department
12641+of local government finance not more than fifteen (15) days after
12642+the resolution is adopted. A resolution adopted under this
12643+subsection and provided in a timely manner to the county auditor
12644+and the department applies only to distributions in the following
12645+calendar year. Any amount of tax revenue distributed under this
12646+subsection to a township fire department shall be distributed
12647+before the remainder of the tax revenue is allocated under
12648+subsection (b).
12649+SECTION 50. IC 6-3.6-11-9, AS ADDED BY P.L.159-2020,
12650+SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12651+JULY 1, 2023]: Sec. 9. (a) This section applies to the calculation and
12652+allocation of certified shares among civil taxing units in Hamilton
12653+County after 2020 and before 2024. 2027.
12654+ (b) For each calendar year to which this section applies, the amount
12655+of a civil taxing unit's certified shares is equal to:
12656+(1) the amount of the civil taxing unit's certified shares
12657+determined under IC 6-3.6-6, for a civil taxing unit other than the
12658+city of Carmel or the city of Fishers;
12659+(2) the adjusted amount determined under subsection (c), for the
12660+city of Carmel; or
12661+(3) the adjusted amount determined under subsection (d), for the
12662+city of Fishers.
12663+(c) For each calendar year to which this section applies, the adjusted
12664+amount of the city of Carmel's certified shares is equal to the lesser of:
12665+(1) the amount of the city of Carmel's certified shares determined
12666+under IC 6-3.6-6, without regard to this section; or
12667+ES 419—LS 6606/DI 120 293
12668+(2) the product of:
12669+(A) the amount of the city of Carmel's certified shares
12670+determined for the immediately preceding calendar year under
12671+IC 6-3.6-6, for 2021, or this section, after 2021; and
12672+(B) one and twenty-five thousandths (1.025).
12673+(d) For each calendar year to which this section applies, the adjusted
12674+amount of the city of Fishers' certified shares is equal to:
12675+(1) the sum of:
12676+(A) the amount of the city of Carmel's certified shares
12677+determined under IC 6-3.6-6, without regard to this section;
295212678 and
2953-(3) any other information required by the authority.
2954-(c) Subject to section 8 of this chapter, the authority may approve a
2955-tax credit application if:
2956-(1) the applicant is an eligible applicant;
2957-(2) the project identified in the application is a qualified project;
2958-and
2959-(3) the tax credit application meets any other requirements for
2960-receipt of state tax credits established by the authority.
2961-SEA 419 — CC 1 70
2962-(d) If the authority approves a tax credit application for a qualified
2963-project, for each taxable year in the tax credit period the authority may
2964-approve a maximum amount of state tax credits. The maximum
2965-aggregate amount of state tax credits awarded by the authority for the
2966-state tax credit period of a qualified project is an amount that is the
2967-product of:
2968-(1) a percentage determined by the authority, which must be
2969-(A) greater than or equal to forty percent (40%); and
2970-(B) less than or equal to one hundred percent (100%);
2971-multiplied by
2972-(2) the anticipated aggregate federal tax credits over the credit
2973-period as defined by Section 42(f) of the Internal Revenue
2974-Code and specified in a letter issued by the authority for the
2975-qualified project under Section 42(m) of the Internal Revenue
2976-Code (annual amount multiplied by ten (10) years).
2977-(e) If the authority approves a tax credit application for a qualified
2978-project, the authority shall issue an eligibility statement to the eligible
2979-applicant. The eligibility statement must specify at least the following:
2980-(1) A unique identification code for the eligibility statement,
2981-determined by the authority.
2982-(2) The name of the qualified project.
2983-(3) For each taxable year in the state tax credit period of the
2984-qualified project, the maximum amount of state tax credit that the
2985-authority is awarding to the eligible applicant for the qualified
2986-project.
2987-(f) The authority shall transmit a copy of each eligibility statement
2988-issued under subsection (e) to the department.
2989-SECTION 25. IC 6-5.5-1-2, AS AMENDED BY P.L.137-2022,
12679+(B) the amount of the city of Fishers' certified shares
12680+determined under IC 6-3.6-6, without regard to this section;
12681+minus
12682+(2) the adjusted amount of the city of Carmel's certified shares
12683+determined under subsection (c).
12684+SECTION 51. IC 6-5.5-1-2, AS AMENDED BY P.L.137-2022,
299012685 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
299112686 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 2. (a) Except as provided
299212687 in subsections (b) through (d), "adjusted gross income" means taxable
299312688 income as defined in Section 63 of the Internal Revenue Code, adjusted
299412689 as follows:
299512690 (1) Add the following amounts:
299612691 (A) An amount equal to a deduction allowed or allowable
299712692 under Section 166, Section 585, or Section 593 of the Internal
299812693 Revenue Code.
299912694 (B) An amount equal to a deduction allowed or allowable
300012695 under Section 170 of the Internal Revenue Code.
300112696 (C) An amount equal to a deduction or deductions allowed or
300212697 allowable under Section 63 of the Internal Revenue Code for
300312698 taxes based on or measured by income and levied at the state
3004-SEA 419 — CC 1 71
300512699 level by a state of the United States or levied at the local level
300612700 by any subdivision of a state of the United States.
300712701 (D) The amount of interest excluded under Section 103 of the
300812702 Internal Revenue Code or under any other federal law, minus
300912703 the associated expenses disallowed in the computation of
301012704 taxable income under Section 265 of the Internal Revenue
301112705 Code.
301212706 (E) An amount equal to the deduction allowed under Section
301312707 172 or 1212 of the Internal Revenue Code for net operating
301412708 losses or net capital losses.
301512709 (F) For a taxpayer that is not a large bank (as defined in
12710+ES 419—LS 6606/DI 120 294
301612711 Section 585(c)(2) of the Internal Revenue Code), an amount
301712712 equal to the recovery of a debt, or part of a debt, that becomes
301812713 worthless to the extent a deduction was allowed from gross
301912714 income in a prior taxable year under Section 166(a) of the
302012715 Internal Revenue Code.
302112716 (G) Add the amount necessary to make the adjusted gross
302212717 income of any taxpayer that owns property for which bonus
302312718 depreciation was allowed in the current taxable year or in an
302412719 earlier taxable year equal to the amount of adjusted gross
302512720 income that would have been computed had an election not
302612721 been made under Section 168(k) of the Internal Revenue Code
302712722 to apply bonus depreciation to the property in the year that it
302812723 was placed in service.
302912724 (H) Add the amount necessary to make the adjusted gross
303012725 income of any taxpayer that placed Section 179 property (as
303112726 defined in Section 179 of the Internal Revenue Code) in
303212727 service in the current taxable year or in an earlier taxable year
303312728 equal to the amount of adjusted gross income that would have
303412729 been computed had an election for federal income tax
303512730 purposes not been made for the year in which the property was
303612731 placed in service to take deductions under Section 179 of the
303712732 Internal Revenue Code in a total amount exceeding the sum of:
303812733 (i) twenty-five thousand dollars ($25,000) to the extent
303912734 deductions under Section 179 of the Internal Revenue Code
304012735 were not elected as provided in item (ii); and
304112736 (ii) for taxable years beginning after December 31, 2017, the
304212737 deductions elected under Section 179 of the Internal
304312738 Revenue Code on property acquired in an exchange if the
304412739 exchange would have been eligible for nonrecognition of
304512740 gain or loss under Section 1031 of the Internal Revenue
304612741 Code in effect on January 1, 2017, the exchange is not
3047-SEA 419 — CC 1 72
304812742 eligible for nonrecognition of gain or loss under Section
304912743 1031 of the Internal Revenue Code, and the taxpayer made
305012744 an election to take deductions under Section 179 of the
305112745 Internal Revenue Code with regard to the acquired property
305212746 in the year that the property was placed into service. The
305312747 amount of deductions allowable for an item of property
305412748 under this item may not exceed the amount of adjusted gross
305512749 income realized on the property that would have been
305612750 deferred under the Internal Revenue Code in effect on
305712751 January 1, 2017.
305812752 (I) Add an amount equal to any income not included in gross
12753+ES 419—LS 6606/DI 120 295
305912754 income as a result of the deferral of income arising from
306012755 business indebtedness discharged in connection with the
306112756 reacquisition after December 31, 2008, and before January 1,
306212757 2011, of an applicable debt instrument, as provided in Section
306312758 108(i) of the Internal Revenue Code. Subtract from the
306412759 adjusted gross income of any taxpayer that added an amount
306512760 to adjusted gross income in a previous year the amount
306612761 necessary to offset the amount included in federal gross
306712762 income as a result of the deferral of income arising from
306812763 business indebtedness discharged in connection with the
306912764 reacquisition after December 31, 2008, and before January 1,
307012765 2011, of an applicable debt instrument, as provided in Section
307112766 108(i) of the Internal Revenue Code.
307212767 (J) Add an amount equal to any exempt insurance income
307312768 under Section 953(e) of the Internal Revenue Code for active
307412769 financing income under Subpart F, Subtitle A, Chapter 1,
307512770 Subchapter N of the Internal Revenue Code.
307612771 (K) Add an amount equal to the remainder of:
307712772 (i) the amount allowable as a deduction under Section
307812773 274(n) of the Internal Revenue Code; minus
307912774 (ii) the amount otherwise allowable as a deduction under
308012775 Section 274(n) of the Internal Revenue Code, if Section
308112776 274(n)(2)(D) of the Internal Revenue Code was not in effect
308212777 for amounts paid or incurred after December 31, 2020.
308312778 (2) Subtract the following amounts:
308412779 (A) Income that the United States Constitution or any statute
308512780 of the United States prohibits from being used to measure the
308612781 tax imposed by this chapter.
308712782 (B) Income that is derived from sources outside the United
308812783 States, as defined by the Internal Revenue Code.
308912784 (C) An amount equal to a debt or part of a debt that becomes
3090-SEA 419 — CC 1 73
309112785 worthless, as permitted under Section 166(a) of the Internal
309212786 Revenue Code.
309312787 (D) An amount equal to any bad debt reserves that are
309412788 included in federal income because of accounting method
309512789 changes required by Section 585(c)(3)(A) or Section 593 of
309612790 the Internal Revenue Code.
309712791 (E) The amount necessary to make the adjusted gross income
309812792 of any taxpayer that owns property for which bonus
309912793 depreciation was allowed in the current taxable year or in an
310012794 earlier taxable year equal to the amount of adjusted gross
310112795 income that would have been computed had an election not
12796+ES 419—LS 6606/DI 120 296
310212797 been made under Section 168(k) of the Internal Revenue Code
310312798 to apply bonus depreciation.
310412799 (F) The amount necessary to make the adjusted gross income
310512800 of any taxpayer that placed Section 179 property (as defined
310612801 in Section 179 of the Internal Revenue Code) in service in the
310712802 current taxable year or in an earlier taxable year equal to the
310812803 amount of adjusted gross income that would have been
310912804 computed had an election for federal income tax purposes not
311012805 been made for the year in which the property was placed in
311112806 service to take deductions under Section 179 of the Internal
311212807 Revenue Code in a total amount exceeding the sum of:
311312808 (i) twenty-five thousand dollars ($25,000) to the extent
311412809 deductions under Section 179 of the Internal Revenue Code
311512810 were not elected as provided in item (ii); and
311612811 (ii) for taxable years beginning after December 31, 2017, the
311712812 deductions elected under Section 179 of the Internal
311812813 Revenue Code on property acquired in an exchange if the
311912814 exchange would have been eligible for nonrecognition of
312012815 gain or loss under Section 1031 of the Internal Revenue
312112816 Code in effect on January 1, 2017, the exchange is not
312212817 eligible for nonrecognition of gain or loss under Section
312312818 1031 of the Internal Revenue Code, and the taxpayer made
312412819 an election to take deductions under Section 179 of the
312512820 Internal Revenue Code with regard to the acquired property
312612821 in the year that the property was placed into service. The
312712822 amount of deductions allowable for an item of property
312812823 under this item may not exceed the amount of adjusted gross
312912824 income realized on the property that would have been
313012825 deferred under the Internal Revenue Code in effect on
313112826 January 1, 2017.
313212827 (G) Income that is:
3133-SEA 419 — CC 1 74
313412828 (i) exempt from taxation under IC 6-3-2-21.7; and
313512829 (ii) included in the taxpayer's taxable income under the
313612830 Internal Revenue Code.
313712831 (H) The amount that would have been excluded from gross
313812832 income but for the enactment of Section 118(b)(2) of the
313912833 Internal Revenue Code for taxable years ending after
314012834 December 22, 2017.
314112835 (I) For taxable years ending after March 12, 2020, an amount
314212836 equal to the deduction disallowed pursuant to:
314312837 (i) Section 2301(e) of the CARES Act (Public Law
314412838 116-136), as modified by Sections 206 and 207 of the
12839+ES 419—LS 6606/DI 120 297
314512840 Taxpayer Certainty and Disaster Relief Tax Act (Division
314612841 EE of Public Law 116-260); and
314712842 (ii) Section 3134(e) of the Internal Revenue Code.
314812843 (J) Subtract an amount equal to the deduction disallowed
314912844 under Section 280C(h) of the Internal Revenue Code.
315012845 (3) Make the following adjustments:
315112846 (A) Subtract the amount of any interest expense paid or
315212847 accrued in the current taxable year but not deducted as a result
315312848 of the limitation imposed under Section 163(j)(1) of the
315412849 Internal Revenue Code.
315512850 (B) Add any interest expense paid or accrued in a previous
315612851 taxable year but allowed as a deduction under Section 163 of
315712852 the Internal Revenue Code in the current taxable year.
315812853 (C) For taxable years beginning after December 31, 2021,
315912854 add or subtract amounts related to specified research or
316012855 experimental procedures as required under IC 6-3-2-29.
316112856 For purposes of this subdivision, an interest expense is considered
316212857 paid or accrued only in the first taxable year the deduction would
316312858 have been allowable under Section 163 of the Internal Revenue
316412859 Code if the limitation under Section 163(j)(1) of the Internal
316512860 Revenue Code did not exist.
316612861 (b) In the case of a credit union, "adjusted gross income" for a
316712862 taxable year means the total transfers to undivided earnings minus
316812863 dividends for that taxable year after statutory reserves are set aside
316912864 under IC 28-7-1-24.
317012865 (c) In the case of an investment company, "adjusted gross income"
317112866 means the company's federal taxable income adjusted as follows:
317212867 (1) Add the amount excluded from federal gross income under
317312868 Section 103 of the Internal Revenue Code for interest received on
317412869 an obligation of a state other than Indiana, or a political
317512870 subdivision of such a state, that is acquired by the taxpayer after
3176-SEA 419 — CC 1 75
317712871 December 31, 2011.
317812872 (2) Make the following adjustments:
317912873 (A) Subtract the amount of any interest expense paid or
318012874 accrued in the current taxable year but not deducted as a result
318112875 of the limitation imposed under Section 163(j)(1) of the
318212876 Internal Revenue Code.
318312877 (B) Add any interest expense paid or accrued in a previous
318412878 taxable year but allowed as a deduction under Section 163 of
318512879 the Internal Revenue Code in the current taxable year.
318612880 For purposes of this subdivision, an interest expense is considered
318712881 paid or accrued only in the first taxable year the deduction would
12882+ES 419—LS 6606/DI 120 298
318812883 have been allowable under Section 163 of the Internal Revenue
318912884 Code if the limitation under Section 163(j)(1) of the Internal
319012885 Revenue Code did not exist.
319112886 (3) Multiply the amount determined after the adjustments in
319212887 subdivisions (1) and (2) by the quotient of:
319312888 (A) the aggregate of the gross payments collected by the
319412889 company during the taxable year from old and new business
319512890 upon investment contracts issued by the company and held by
319612891 residents of Indiana; divided by
319712892 (B) the total amount of gross payments collected during the
319812893 taxable year by the company from the business upon
319912894 investment contracts issued by the company and held by
320012895 persons residing within Indiana and elsewhere.
320112896 (d) As used in subsection (c), "investment company" means a
320212897 person, copartnership, association, limited liability company, or
320312898 corporation, whether domestic or foreign, that:
320412899 (1) is registered under the Investment Company Act of 1940 (15
320512900 U.S.C. 80a-1 et seq.); and
320612901 (2) solicits or receives a payment to be made to itself and issues
320712902 in exchange for the payment:
320812903 (A) a so-called bond;
320912904 (B) a share;
321012905 (C) a coupon;
321112906 (D) a certificate of membership;
321212907 (E) an agreement;
321312908 (F) a pretended agreement; or
321412909 (G) other evidences of obligation;
321512910 entitling the holder to anything of value at some future date, if the
321612911 gross payments received by the company during the taxable year
321712912 on outstanding investment contracts, plus interest and dividends
321812913 earned on those contracts (by prorating the interest and dividends
3219-SEA 419 — CC 1 76
322012914 earned on investment contracts by the same proportion that
322112915 certificate reserves (as defined by the Investment Company Act
322212916 of 1940) is to the company's total assets) is at least fifty percent
322312917 (50%) of the company's gross payments upon investment
322412918 contracts plus gross income from all other sources except
322512919 dividends from subsidiaries for the taxable year. The term
322612920 "investment contract" means an instrument listed in clauses (A)
322712921 through (G).
322812922 (e) If a partner is required to include an item of income, a deduction,
322912923 or another tax attribute in the partner's adjusted gross income tax return
323012924 pursuant to IC 6-3-4.5, such item shall be considered to be includible
12925+ES 419—LS 6606/DI 120 299
323112926 in the partner's federal adjusted gross income or federal taxable
323212927 income, regardless of whether such item is actually required to be
323312928 reported by the partner for federal income tax purposes. For purposes
323412929 of this subsection:
323512930 (1) items for which a valid election is made under IC 6-3-4.5-6,
323612931 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
323712932 in the partner's adjusted gross income or taxable income; and
323812933 (2) items for which the partnership did not make an election under
323912934 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
324012935 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
324112936 shall be included in the partner's adjusted gross income or taxable
3242-income.
3243-SECTION 26. IC 6-5.5-2-1, AS AMENDED BY P.L.80-2014,
3244-SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3245-JANUARY 1, 2023 (RETROACTIVE)]: Sec. 1. (a) There is imposed
3246-on each taxpayer a franchise tax measured by the taxpayer's
3247-apportioned income for the privilege of exercising its franchise or the
3248-corporate privilege of transacting the business of a financial institution
3249-in Indiana. The amount of the tax for a taxable year shall be determined
3250-by multiplying the applicable rate under subsection (b) times the
3251-remainder of:
3252-(1) the taxpayer's apportioned income; minus
3253-(2) the taxpayer's deductible Indiana net operating losses as
3254-determined under this section; minus
3255-(3) the taxpayer's net capital losses minus the taxpayer's net
3256-capital gains computed under the Internal Revenue Code for each
3257-taxable year or part of a taxable year beginning after December
3258-31, 1989, multiplied by the apportionment percentage applicable
3259-to the taxpayer under this chapter for the taxable year of the loss.
3260-A net capital loss for a taxable year is a net capital loss carryover to
3261-each of the five (5) taxable years that follow the taxable year in which
3262-SEA 419 — CC 1 77
3263-the loss occurred.
3264-(b) The following are the applicable tax rates to be used under
3265-subsection (a):
3266-(1) For taxable years beginning before January 1, 2014, eight and
3267-five-tenths percent (8.5%).
3268-(2) For taxable years beginning after December 31, 2013, and
3269-before January 1, 2015, eight percent (8.0%).
3270-(3) For taxable years beginning after December 31, 2014, and
3271-before January 1, 2016, seven and five-tenths percent (7.5%).
3272-(4) For taxable years beginning after December 31, 2015, and
3273-before January 1, 2017, seven percent (7.0%).
3274-(5) For taxable years beginning after December 31, 2016, and
3275-before January 1, 2019, six and five-tenths percent (6.5%).
3276-(6) For taxable years beginning after December 31, 2018, and
3277-before January 1, 2020, six and twenty-five hundredths percent
3278-(6.25%).
3279-(7) For taxable years beginning after December 31, 2019, and
3280-before January 1, 2021, six percent (6.0%).
3281-(8) For taxable years beginning after December 31, 2020, and
3282-before January 1, 2022, five and five-tenths percent (5.5%).
3283-(9) For taxable years beginning after December 31, 2021, and
3284-before January 1, 2023, five percent (5.0%).
3285-(10) For taxable years beginning after December 31, 2022, four
3286-and nine-tenths percent (4.9%).
3287-(c) The amount of net operating losses deductible under subsection
3288-(a) is an amount equal to the net operating losses computed under the
3289-Internal Revenue Code, adjusted for the items set forth in IC 6-5.5-1-2,
3290-that are:
3291-(1) incurred in each taxable year, or part of a year, beginning after
3292-December 31, 1989; and
3293-(2) attributable to Indiana.
3294-(d) The following apply to determining the amount of net operating
3295-losses that may be deducted under subsection (a):
3296-(1) The amount of net operating losses that is attributable to
3297-Indiana is the taxpayer's total net operating losses under the
3298-Internal Revenue Code for the taxable year of the loss, adjusted
3299-for the items set forth in IC 6-5.5-1-2, multiplied by the
3300-apportionment percentage applicable to the taxpayer under this
3301-chapter for the taxable year of the loss.
3302-(2) A net operating loss for any taxable year is a net operating loss
3303-carryover to each of the fifteen (15) taxable years that follow the
3304-taxable year in which the loss occurred.
3305-SEA 419 — CC 1 78
3306-(3) If the taxpayer has discharge of indebtedness excluded
3307-from federal gross income under Section 108(a)(1)(A), Section
3308-108(a)(1)(B), or Section 108(a)(1)(C) of the Internal Revenue
3309-Code, the Indiana net operating loss available for use or
3310-carryover shall be reduced by the remainder of:
3311-(A) the amount of discharge of indebtedness excluded from
3312-federal gross income, multiplied by the apportionment
3313-percentage applicable to the taxpayer under this chapter
3314-or IC 6-3 for the year of discharge; minus
3315-(B) the amount of discharge of indebtedness excluded from
3316-federal gross income that reduced the tax attributes under
3317-Section 108(b)(2)(D), Section 108(b)(2)(E), or Section
3318-108(b)(2)(F) of the Internal Revenue Code or was applied
3319-for federal tax purposes under Section 108(b)(5) of the
3320-Internal Revenue Code, multiplied by the apportionment
3321-percentage applicable to the taxpayer under this chapter
3322-or IC 6-3 for the year of discharge.
3323-(4) For purposes of applying this subsection, the amount of
3324-the reduction computed under subdivision (3) shall be
3325-applied:
3326-(A) first, as if the discharge of indebtedness was a
3327-modification of an item set forth in IC 6-5.5-1-2 that
3328-increased the taxpayer's adjusted gross income for the
3329-taxable year to zero (0), but only if the amount determined
3330-after modifications under IC 6-5.5-1-2 was less than zero
3331-(0); and
3332-(B) after the application required under clause (A), as if
3333-the discharge of indebtedness was part of the taxpayer's
3334-apportioned income under subsection (a)(1), and prorated
3335-for the taxable year of discharge between taxpayer
3336-members of a unitary group as provided in subsection
3337-(e)(1). However, if the application of this clause results in
3338-a net operating loss of a member being reduced to zero (0),
3339-the excess shall not be considered income of the taxpayer
3340-nor shall it reduce the net operating loss of any other
3341-taxpayer member of a unitary group.
3342-(5) For purposes of subdivisions (3) and (4), the provisions of
3343-Section 108(d)(6) and Section 108(d)(7) of the Internal
3344-Revenue Code shall apply.
3345-(e) The following provisions apply to a combined return computing
3346-the tax on the basis of the income of the unitary group when the return
3347-is filed for more than one (1) taxpayer member of the unitary group for
3348-SEA 419 — CC 1 79
3349-any taxable year:
3350-(1) Any net capital loss or net operating loss attributable to
3351-Indiana in the combined return shall be prorated between each
3352-taxpayer member of the unitary group by the quotient of:
3353-(A) the receipts of that taxpayer member attributable to
3354-Indiana under section 4 of this chapter; divided by
3355-(B) the receipts of all taxpayer members of the unitary group
3356-attributable to Indiana.
3357-(2) The net capital loss or net operating loss for that year, if any,
3358-to be carried forward to any subsequent year shall be limited to
3359-the capital gains or apportioned income for the subsequent year
3360-of that taxpayer, determined by the same receipts formula set out
3361-in subdivision (1).
3362-SECTION 27. IC 6-5.5-2-7, AS AMENDED BY P.L.129-2014,
12937+income.".
12938+Page 56, between lines 4 and 5, begin a new paragraph and insert:
12939+"SECTION 53. IC 6-5.5-2-7, AS AMENDED BY P.L.129-2014,
336312940 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
336412941 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 7. Notwithstanding any
336512942 other provision of this article, there is no tax imposed on the adjusted
336612943 gross income or apportioned income of the following:
336712944 (1) Insurance companies or organizations offering nonprofit
336812945 agricultural organization insurance coverage subject to the tax
336912946 under any of the following:
337012947 (A) IC 27-1-18-2.
337112948 (B) IC 27-1-2-2.3.
337212949 (C) IC 6-3.
337312950 (D) IC 6-8-15.
337412951 (2) International banking facilities (as defined in Regulation D of
337512952 the Board of Governors of the Federal Reserve System).
337612953 (3) Any corporation that is exempt from income tax under Section
337712954 1363 of the Internal Revenue Code.
337812955 (4) Any corporation exempt from federal income taxation under
337912956 the Internal Revenue Code, except for the corporation's unrelated
338012957 business income. However, this exemption does not apply to a
338112958 corporation exempt from federal income taxation under Section
338212959 501(c)(14) of the Internal Revenue Code.
3383-SECTION 28. IC 6-6-6.5-1, AS AMENDED BY P.L.245-2015,
3384-SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3385-UPON PASSAGE]: Sec. 1. As used in this chapter, unless the context
3386-clearly indicates otherwise:
3387-(a) "Aircraft" means a device which is designed to provide air
3388-transportation for one (1) or more individuals or for cargo.
3389-(b) "State" means the state of Indiana.
3390-(c) "Department" refers to the department of state revenue.
3391-SEA 419 — CC 1 80
3392-(d) "Person" includes an individual, a partnership, a firm, a
3393-corporation, a limited liability company, an association, a trust, or an
3394-estate, or a legal representative of such.
3395-(e) "Owner" means a person who holds or is required to obtain a
3396-certificate of registration from the Federal Aviation Administration for
3397-a specific aircraft. In the event an aircraft is the subject of an agreement
3398-for the conditional sale or lease with the right of purchase upon the
3399-performance of the conditions stated in the agreement and with an
3400-immediate right of possession of the aircraft vested in the conditional
3401-vendee or lessee, or in the event the mortgagor of an aircraft is entitled
3402-to possession, then the conditional vendee or lessee or mortgagor shall
3403-be deemed to be the owner for purposes of this chapter.
3404-(f) "Dealer" means a person who has an established place of
3405-business in this state, is required to obtain a certificate under
3406-IC 6-2.5-8-1 or IC 6-2.5-8-3 (before its repeal), and is engaged in the
3407-business of manufacturing, buying, selling, or exchanging new or used
3408-aircraft.
3409-(g) "Maximum landing weight" means the maximum weight of the
3410-aircraft, accessories, fuel, pilot, passengers, and cargo that is permitted
3411-on landing under the best conditions, as determined for an aircraft by
3412-the appropriate federal agency or the certified allowable gross weight
3413-published by the manufacturer of the aircraft.
3414-(h) "Resident" means an individual or a fiduciary who resides or is
3415-domiciled within Indiana or any corporation or business association
3416-which maintains a fixed and established place of business within
3417-Indiana for a period of more than sixty (60) days in any one (1) year.
3418-(i) "Taxable aircraft" means an aircraft required to be registered
3419-with the department by this chapter.
3420-(j) "Regular annual registration date" means the last day of
3421-December of each year.
3422-(k) "Taxing district" means a geographic area within which property
3423-is taxed by the same taxing units and at the same total rate.
3424-(l) "Taxing unit" means an entity which has the power to impose ad
3425-valorem property taxes.
3426-(m) "Base" means the location or place where the aircraft is
3427-normally hangared, tied down, housed, parked, or kept, when not in
3428-use.
3429-(n) "Homebuilt aircraft" means an aircraft constructed primarily by
3430-an individual for personal use. The term homebuilt aircraft does not
3431-include an aircraft constructed primarily by a for-profit aircraft
3432-manufacturing business.
3433-(o) "Pressurized aircraft" means an aircraft equipped with a system
3434-SEA 419 — CC 1 81
3435-designed to control the atmospheric pressure in the crew or passenger
3436-cabins.
3437-(p) "Establishing a base" means renting or leasing a hangar or tie
3438-down for a particular aircraft for at least thirty-one (31) days.
3439-(q) "Inventory aircraft" means an aircraft held for resale by a
3440-registered Indiana dealer.
3441-(r) "Repair station" means a person who holds a repair station
3442-certificate that was issued to the person by the Federal Aviation
3443-Administration under 14 CFR Part 145.
3444-SECTION 29. IC 6-7-4-8, AS ADDED BY P.L.165-2021,
3445-SECTION 119, IS AMENDED TO READ AS FOLLOWS
3446-[EFFECTIVE JULY 1, 2023]: Sec. 8. (a) Except as provided in
3447-subsection (b), as used in this chapter, "vapor product" means any of
3448-the following:
3449-(1) A device, such as an electronic cigarette, that employs a
3450-mechanical heating element, battery, or electronic circuit,
3451-regardless of shape or size, that can be used to produce vapor
3452-from consumable material that may or may not be sold with the
3453-device.
3454-(2) Any open system container of a consumable material in a
3455-solution or other form that is intended to be used with or in a
3456-device described in subdivision (1).
3457-(3) Disposable vapor product devices that are attached to a closed
3458-system cartridge and intended for single use.
3459-(b) The term "vapor product" does not include closed system
3460-cartridges (as defined in IC 6-7-2-0.5).
3461-SECTION 30. IC 6-7-4-10, AS ADDED BY P.L.165-2021,
3462-SECTION 119, IS AMENDED TO READ AS FOLLOWS
3463-[EFFECTIVE JULY 1, 2023]: Sec. 10. (a) It is unlawful for any retail
3464-dealer to sell consumable material or vapor products in Indiana unless
3465-the retail dealer has a valid open system electronic cigarette retail
3466-dealer's certificate issued by the department.
3467-(b) The department shall issue certificates to applicants that qualify
3468-under this section. A certificate issued under this section is valid for
3469-one (1) year unless revoked or suspended by the department and is not
3470-transferable. An open system electronic cigarette retail dealer's
3471-certificate may be revoked or suspended by the department in the same
3472-manner, for the same reasons, and is subject to the same procedures as
3473-for the revocation or suspension of a retail merchant's certificate under
3474-IC 6-2.5-8-7. If a retail dealer's retail merchant's certificate under
3475-IC 6-2.5-8 expires or is revoked by the department, an open system
3476-electronic cigarette retail dealer's certificate issued to the retail dealer
3477-SEA 419 — CC 1 82
3478-under this subsection shall automatically be revoked without notice
3479-otherwise required under IC 6-2.5-8.
3480-(c) An applicant for a certificate under this section must submit
3481-proof to the department of the appointment of an agent for service of
3482-process in Indiana if the applicant is:
3483-(1) an individual whose principal place of residence is outside
3484-Indiana; or
3485-(2) a person, other than an individual, that has its principal place
3486-of business outside Indiana.
3487-(d) To obtain or renew a certificate under this section, a person
3488-must:
3489-(1) submit, for each location where it intends to distribute
3490-consumable material or vapor products, an application that
3491-includes all information required by the department;
3492-(2) pay a fee of twenty-five dollars ($25) at the time of
3493-application; and
3494-(3) at the time of application, post a bond, issued by a surety
3495-company approved by the department, in an amount not less than
3496-one thousand dollars ($1,000) and conditioned on the applicant's
3497-compliance with this chapter.
3498-(e) If business is transacted at two (2) or more places by one (1)
3499-retail dealer, a separate certificate must be obtained for each place of
3500-business.
3501-(f) Each certificate must be numbered, show the name and address
3502-of the retail dealer, and be posted in a conspicuous place at the place
3503-of business for which it is issued.
3504-(g) If the department determines that a bond provided by a
3505-certificate is inadequate, the department may require a new bond in the
3506-amount necessary to fully protect the state.
3507-SECTION 31. IC 6-8-15-5, AS ADDED BY P.L.154-2020,
12960+SECTION 54. IC 6-6-2.5-6.5 IS ADDED TO THE INDIANA
12961+CODE AS A NEW SECTION TO READ AS FOLLOWS
12962+[EFFECTIVE JULY 1, 2023]: Sec. 6.5. As used in this chapter,
12963+"compressed natural gas product fuel station" means a fuel station
12964+that purchases special fuel, converts it into compressed natural gas
12965+product, and sells the compressed natural gas product from a
12966+metered pump at the same location.
12967+SECTION 55. IC 6-6-2.5-30, AS AMENDED BY P.L.218-2017,
12968+ES 419—LS 6606/DI 120 300
12969+SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12970+JULY 1, 2023]: Sec. 30. (a) The following are exempt from the special
12971+fuel tax:
12972+(1) Special fuel sold by a supplier to a licensed exporter for export
12973+from Indiana to another state or country to which the exporter is
12974+specifically licensed to export exports by a supplier, or exports for
12975+which the destination state special fuel tax has been paid to the
12976+supplier and proof of export is available in the form of a
12977+destination state bill of lading.
12978+(2) Special fuel sold to the United States or an agency or
12979+instrumentality thereof.
12980+(3) Special fuel sold to a post exchange or other concessionaire on
12981+a federal reservation within Indiana. However, the post exchange
12982+or concessionaire shall collect, report, and pay quarterly to the
12983+department any tax permitted by federal law on special fuel sold.
12984+(4) Special fuel sold to a public transportation corporation
12985+established under IC 36-9-4 and used for the transportation of
12986+persons for compensation within the territory of the corporation.
12987+(5) Special fuel sold to a public transit department of a
12988+municipality and used for the transportation of persons for
12989+compensation within a service area, no part of which is more than
12990+five (5) miles outside the corporate limits of the municipality.
12991+(6) Special fuel sold to a common carrier of passengers, including
12992+a business operating a taxicab (as defined in IC 6-6-1.1-103(l))
12993+and used by the carrier to transport passengers within a service
12994+area that is not larger than one (1) county, and counties
12995+contiguous to that county.
12996+(7) The portion of special fuel determined by the commissioner to
12997+have been used to operate equipment attached to a motor vehicle,
12998+if the special fuel was placed into the fuel supply tank of a motor
12999+vehicle that has a common fuel reservoir for travel on a highway
13000+and for the operation of equipment.
13001+(8) Special fuel used for nonhighway purposes, used as heating
13002+oil, or in trains.
13003+(9) Special fuel sold by a supplier to an unlicensed person for
13004+export from Indiana to another state and the special fuel has been
13005+dye addityzed in accordance with section 31 of this chapter.
13006+(10) Sales of transmix between licensed suppliers.
13007+(11) Special fuel sold or removed via truck or rail from a terminal
13008+or refinery, if the destination is an Indiana terminal or refinery.
13009+(12) Special fuel received at an Indiana terminal or refinery, if the
13010+tax on the special fuel has previously been paid. If this
13011+ES 419—LS 6606/DI 120 301
13012+subdivision applies, the receiving supplier is entitled to a credit
13013+on the receiving supplier's Indiana Special Fuel Supplier's Tax
13014+Return for the tax paid to the receiving supplier's vendor or
13015+directly to the state.
13016+(13) The difference between the amount of special fuel
13017+purchased by a compressed natural gas product fuel station
13018+and the amount of compressed natural gas product produced
13019+and sold by the compressed natural gas product fuel station.
13020+(b) The exemption from tax provided under subsection (a)(4)
13021+through (a)(7) shall be applied for through the refund procedures
13022+established in section 32 of this chapter. The exemption from tax
13023+provided under subsection (a)(13) shall be applied for through the
13024+refund procedures established in section 32.7 of this chapter.
13025+(c) The department shall provide information to licensed suppliers
13026+of the destination state or states to which exporters are authorized to
13027+export.
13028+(d) Subject to gallonage limits and other conditions established by
13029+the department, the department shall provide for refund of the tax
13030+imposed by this chapter to a wholesale distributor exporting undyed
13031+special fuel out of a bulk plant in this state in a vehicle capable of
13032+carrying not more than five thousand four hundred (5,400) gallons if
13033+the destination of that vehicle does not exceed twenty-five (25) miles
13034+from the border of Indiana.
13035+SECTION 56. IC 6-6-2.5-32 IS AMENDED TO READ AS
13036+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 32. (a) Special fuel tax
13037+that has been collected by a supplier on special fuel used for an exempt
13038+purpose, including section 30(a)(4) through 30(a)(7) of this chapter and
13039+pretaxed exempt fuel under section 30(a)(8) of this chapter, but which
13040+was not dyed or marked, or both, in accordance with section 31 of this
13041+chapter, shall be refunded by the department to the user or the user's
13042+assignee under rules adopted by the department, in accordance with
13043+subsection (c), upon presentation of proof of exempt use by the end
13044+user in the form that the department prescribes. A person that claims
13045+a refund under section 32.7 of this chapter for special fuel tax
13046+collected on compressed natural gas product may not claim a
13047+refund under this subsection for the same special fuel tax.
13048+(b) Special fuel tax that has been collected by a supplier on special
13049+fuel that was removed from a terminal or refinery for delivery in
13050+Indiana, and was exported by a licensed exporter shall be refunded by
13051+the department to the licensed exporter in accordance with subsection
13052+(c), upon presentation of proof of export in the form that the
13053+department prescribes.
13054+ES 419—LS 6606/DI 120 302
13055+(c) Special fuel tax that has been erroneously paid by a person shall
13056+be refunded by the department in accordance with subsection (d).
13057+(d) To claim a refund under subsection subsections (a) through (c),
13058+a person must present to the department a statement that contains a
13059+written verification that the claim is made under penalties of perjury
13060+and lists the total amount of special fuel purchased and used for
13061+non-highway purposes. The claim must be filed not more than three (3)
13062+years after the date the special fuel was purchased. The statement must
13063+show that payment for the purchase has been made and the amount of
13064+tax paid on the purchase has been remitted.
13065+(e) The department may make any investigations it considers
13066+necessary before refunding the special fuel tax to a person.
13067+SECTION 57. IC 6-6-2.5-32.7 IS ADDED TO THE INDIANA
13068+CODE AS A NEW SECTION TO READ AS FOLLOWS
13069+[EFFECTIVE JULY 1, 2023]: Sec. 32.7. (a) A person is entitled to a
13070+quarterly refund of the special fuel tax paid under this chapter on
13071+the difference between the amount of special fuel purchased by a
13072+compressed natural gas product fuel station and the amount of
13073+compressed natural gas product produced and sold by the
13074+compressed natural gas product fuel station. The refund amount
13075+is in addition to the collection allowance the person may receive
13076+under section 37 of this chapter. A person that claims a refund
13077+under section 32 of this chapter for special fuel tax may not claim
13078+a refund under this section for the same special fuel tax.
13079+(b) To qualify for a quarterly refund under this section, a
13080+person shall submit to the department a statement that contains a
13081+written verification that the claim is made under penalties of
13082+perjury and lists the total amount of natural gas purchased and the
13083+total amount of compressed natural gas for which the person
13084+claims a refund. The claim must be filed not later than the end of
13085+the third month following the end of the calendar quarter the
13086+compressed natural gas qualified for a special fuel tax refund
13087+under subsection (a). No interest may be paid on a refund made
13088+under this section.
13089+(c) A refund claim must be in the form prescribed by the
13090+department and include any information reasonably requested by
13091+the department.
13092+(d) The department may make any investigations it considers
13093+necessary before refunding the tax to a person.
13094+SECTION 58. IC 6-6-2.5-37 IS AMENDED TO READ AS
13095+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 37. (a) Every supplier
13096+and permissive supplier who properly remits tax under this chapter
13097+ES 419—LS 6606/DI 120 303
13098+shall be allowed to retain one and six-tenths percent (1.6%) of the tax
13099+to cover the costs of collecting, reporting, and timely remitting the tax
13100+imposed by this chapter.
13101+(b) The amount that the supplier is permitted to retain under
13102+subsection (a) shall be distributed by the supplier as follows:
13103+(1) One-third (1/3) retained by the supplier.
13104+(2) Two-thirds (2/3) to the wholesale distributor. If the special
13105+fuel is resold by that wholesale distributor or another wholesale
13106+distributor to an eligible purchaser, the last wholesale distributor
13107+in the distribution process shall pass on one-half (1/2) of the
13108+two-thirds (2/3) to the eligible purchaser.
13109+(3) If an eligible purchaser is the direct purchaser from a supplier,
13110+and that retail dealer or bulk end user is responsible for shipping
13111+the product, then the supplier shall pass through two-thirds (2/3)
13112+to the retail dealer or bulk end user. If the supplier is responsible
13113+for shipping the product, the supplier shall retain two-thirds (2/3)
13114+and pass through one-third (1/3) to the eligible purchaser.
13115+The amount a person receives under this subsection is in addition
13116+to the amount of the person's refund claim under section 32.7 of
13117+this chapter.
13118+(c) If a monthly report is filed or the amount due is remitted later
13119+than the time required by this chapter, the supplier shall pay to the
13120+department all of the special fuel tax the dealer collected from the sale
13121+of special fuel during the reporting period.".
13122+Page 58, between lines 41 and 42, begin a new paragraph and insert:
13123+"SECTION 62. IC 6-8-15-5, AS ADDED BY P.L.154-2020,
350813124 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
350913125 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 5. If an organization
351013126 provides nonprofit agricultural organization coverage in Indiana, the
351113127 organization is subject to a nonprofit agricultural organization health
351213128 coverage tax under this chapter unless the organization:
351313129 (1) files a notice of election with the insurance commissioner
351413130 and the commissioner of the department on or before
351513131 November 30 of a taxable year; and
351613132 (2) states in the notice of election that the organization elects
351713133 to be subject to the tax imposed under IC 6-3-1 through
3518-IC 6-3-7 for the taxable year.
3519-SECTION 32. IC 6-8.1-7-1, AS AMENDED BY P.L.137-2022,
3520-SEA 419 — CC 1 83
3521-SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3522-UPON PASSAGE]: Sec. 1. (a) This subsection does not apply to the
3523-disclosure of information concerning a conviction on a tax evasion
3524-charge. Unless in accordance with a judicial order or as otherwise
3525-provided in this chapter, the department, its employees, former
3526-employees, counsel, agents, or any other person may not divulge the
3527-amount of tax paid by any taxpayer, terms of a settlement agreement
3528-executed between a taxpayer and the department, investigation records,
3529-investigation reports, or any other information disclosed by the reports
3530-filed under the provisions of the law relating to any of the listed taxes,
3531-including required information derived from a federal return, except to
3532-any of the following when it is agreed that the information is to be
3533-confidential and to be used solely for official purposes:
3534-(1) Members and employees of the department.
3535-(2) The governor.
3536-(3) A member of the general assembly or an employee of the
3537-house of representatives or the senate when acting on behalf of a
3538-taxpayer located in the member's legislative district who has
3539-provided sufficient information to the member or employee for
3540-the department to determine that the member or employee is
3541-acting on behalf of the taxpayer.
3542-(4) An employee of the legislative services agency to carry out the
3543-responsibilities of the legislative services agency under
3544-IC 2-5-1.1-7 or another law.
3545-(5) The attorney general or any other legal representative of the
3546-state in any action in respect to the amount of tax due under the
3547-provisions of the law relating to any of the listed taxes.
3548-(6) Any authorized officers of the United States.
3549-(b) The information described in subsection (a) may be revealed
3550-upon the receipt of a certified request of any designated officer of the
3551-state tax department of any other state, district, territory, or possession
3552-of the United States when:
3553-(1) the state, district, territory, or possession permits the exchange
3554-of like information with the taxing officials of the state; and
3555-(2) it is agreed that the information is to be confidential and to be
3556-used solely for tax collection purposes.
3557-(c) The information described in subsection (a) relating to a person
3558-on public welfare or a person who has made application for public
3559-welfare may be revealed to the director of the division of family
3560-resources, and to any director of a county office of the division of
3561-family resources located in Indiana, upon receipt of a written request
3562-from either director for the information. The information shall be
3563-SEA 419 — CC 1 84
3564-treated as confidential by the directors. In addition, the information
3565-described in subsection (a) relating to a person who has been
3566-designated as an absent parent by the state Title IV-D agency shall be
3567-made available to the state Title IV-D agency upon request. The
3568-information shall be subject to the information safeguarding provisions
3569-of the state and federal Title IV-D programs.
3570-(d) The name, address, Social Security number, and place of
3571-employment relating to any individual who is delinquent in paying
3572-educational loans owed to a postsecondary educational institution may
3573-be revealed to that institution if it provides proof to the department that
3574-the individual is delinquent in paying for educational loans. This
3575-information shall be provided free of charge to approved postsecondary
3576-educational institutions (as defined by IC 21-7-13-6(a)). The
3577-department shall establish fees that all other institutions must pay to the
3578-department to obtain information under this subsection. However, these
3579-fees may not exceed the department's administrative costs in providing
3580-the information to the institution.
3581-(e) The information described in subsection (a) relating to reports
3582-submitted under IC 6-6-1.1-502 concerning the number of gallons of
3583-gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
3584-gallons of special fuel sold by a supplier and the number of gallons of
3585-special fuel exported by a licensed exporter or imported by a licensed
3586-transporter may be released by the commissioner upon receipt of a
3587-written request for the information.
3588-(f) The information described in subsection (a) may be revealed
3589-upon the receipt of a written request from the administrative head of a
3590-state agency of Indiana when:
3591-(1) the state agency shows an official need for the information;
13134+IC 6-3-7 for the taxable year.".
13135+Page 64, between lines 4 and 5, begin a new paragraph and insert:
13136+"SECTION 64. IC 6-8.1-9.5-10, AS AMENDED BY P.L.117-2018,
13137+SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13138+JULY 1, 2023]: Sec. 10. (a) The department of state revenue may
13139+charge a debtor a fee of fifteen percent (15%) ten percent (10%) of
13140+ES 419—LS 6606/DI 120 304
13141+any debts collected under this chapter as a collection fee for the
13142+department's services, not including any local collection assistance fees
13143+charged under subsection (b).
13144+(b) This subsection applies to a debt collected for a claimant agency
13145+that is a political subdivision described in section 1(1)(B) of this
13146+chapter. A local collection assistance fee not to exceed twenty dollars
13147+($20) shall be imposed on each debt submitted by the claimant agency
13148+and collected through a set off under this chapter. The board of the
13149+nonprofit organization that operates the clearinghouse registered under
13150+section 3.5 of this chapter shall determine the amount of the fee by
13151+resolution. Notwithstanding any law concerning delinquent accounts,
13152+charges, fees, loans, taxes, or other indebtedness, the local collection
13153+assistance fee shall be added to the amount due the claimant agency
13154+when the collection is made, not including any fee charged by the
13155+department of state revenue under subsection (a). A fee collected under
13156+this subsection shall be distributed by the department to:
13157+(1) the nonprofit entity with which the department has entered
13158+into a contract under section 3.5(b) of this chapter; or
13159+(2) at the direction of the nonprofit entity, the nonprofit entity's
13160+account held by the investment pool.".
13161+Page 64, line 20, after "(A) a" insert "department".
13162+Page 65, line 28, delete "informational" and insert "informal".
13163+Page 66, line 6, after "subject to" insert "a department".
13164+Page 68, between lines 26 and 27, begin a new paragraph and insert:
13165+"SECTION 67. IC 8-1.5-3-8, AS AMENDED BY P.L.161-2020,
13166+SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13167+UPON PASSAGE]: Sec. 8. (a) A municipality owning a utility under
13168+this chapter shall furnish reasonably adequate services and facilities.
13169+(b) The rates and charges made by a municipality for a service
13170+rendered or to be rendered, either directly or in connection therewith,
13171+must be nondiscriminatory, reasonable, and just.
13172+(c) "Reasonable and just rates and charges for services" means rates
13173+and charges that produce sufficient revenue to:
13174+(1) pay all the legal and other necessary expenses incident to the
13175+operation of the utility, including:
13176+(A) maintenance costs;
13177+(B) operating charges;
13178+(C) upkeep;
13179+(D) repairs;
13180+(E) depreciation;
13181+(F) interest charges on bonds or other obligations, including
13182+leases; and
13183+ES 419—LS 6606/DI 120 305
13184+(G) costs associated with the acquisition of utility property
13185+under IC 8-1.5-2;
13186+(2) provide a sinking fund for the liquidation of bonds or other
13187+obligations, including leases;
13188+(3) provide a debt service reserve for bonds or other obligations,
13189+including leases, in an amount established by the municipality,
13190+not to exceed the maximum annual debt service on the bonds or
13191+obligations or the maximum annual lease rentals;
13192+(4) provide adequate money for working capital;
13193+(5) provide adequate money for making extensions and
13194+replacements to the extent not provided for through depreciation
13195+in subdivision (1); and
13196+(6) provide money for the payment of any taxes that may be
13197+assessed against the utility.
13198+(d) It is the intent of this section that the rates and charges produce
13199+an income sufficient to maintain the utility property in a sound physical
13200+and financial condition to render adequate and efficient service. Rates
13201+and charges too low to meet these requirements are unlawful.
13202+(e) The board may recommend to the municipal legislative body
13203+rates and charges sufficient to include a reasonable return on the utility
13204+plant of the municipality.
13205+(f) Rates and charges established under this section are subject to
13206+the approval of:
13207+(1) the municipal legislative body by ordinance; and
13208+(2) the commission, in accordance with the procedures set forth
13209+in IC 8-1-2.
13210+The commission shall approve rates and charges that are sufficient, in
13211+addition to the cash revenue requirements set forth in subsection (c), to
13212+include a reasonable return on the utility plant of the municipality if the
13213+legislative body so elects.
13214+(g) Except for a municipally owned utility taxed under IC 6-1.1-8-3,
13215+the commission shall approve rates and charges sufficient to
13216+compensate the municipality for taxes that would be due the
13217+municipality on the utility property were it privately owned. These rates
13218+and charges in lieu of taxes:
13219+(1) may not be transferred to the municipal general fund; if the
13220+legislative body so elects. and
13221+(2) must be used by the municipally owned utility for the
13222+purposes set forth in subsection (c). However, in the case of a
13223+utility described in section 8.1(a) of this chapter, to the extent
13224+not otherwise needed for the purposes set forth in subsection
13225+(c), rates and charges in lieu of taxes may be used to reduce
13226+ES 419—LS 6606/DI 120 306
13227+the percentage difference between:
13228+(A) the rates and charges imposed on users of the works
13229+(as defined in section 8.1(b) of this chapter) for service to
13230+property located outside the corporate boundaries of the
13231+municipality; and
13232+(B) the rates and charges imposed on users of the works (as
13233+defined in section 8.1(b) of this chapter) for service to
13234+property located within the corporate boundaries of the
13235+municipality;
13236+as applicable.
13237+(h) The commission shall grant a request that an increase in rates
13238+and charges not be effective until after the occurrence of a future event
13239+if the legislative body so requests.
13240+(i) A municipality that acquires and operates a utility under
13241+IC 8-1.5-2 by exercising the power of eminent domain may not impose
13242+a special rate, charge, surcharge, or other fee, other than rates and
13243+charges approved under this section or otherwise authorized by law, on
13244+the customers of the utility in order to pay for the costs associated with
13245+acquiring the utility through the exercise of the power of eminent
13246+domain.
13247+(j) This subsection does not apply to services rendered by a sewage
13248+works that is subject to IC 36-9-23 or to IC 36-9-25. This subsection
13249+also does not apply to services rendered by a department of public
13250+utilities created by IC 8-1-11.1 or to services rendered by a utility
13251+company owned, operated, or held in trust by a consolidated city. This
13252+subsection applies to property that is served by a municipally owned
13253+utility and that is occupied by someone other than the owner of the
13254+property. Upon applying for utility service from a municipally owned
13255+utility for property subject to this subsection, the person occupying the
13256+property shall provide the municipally owned utility with the name and
13257+contact information of the owner or manager of the property. Subject
13258+to subsection (k), all rates, charges, and other fees for services rendered
13259+by a municipally owned utility to a property that is subject to this
13260+subsection are payable by the person occupying the property if the
13261+account or other customer or billing records maintained by the
13262+municipally owned utility for the property indicate that:
13263+(1) the property is occupied by someone other than the owner; and
13264+(2) the person occupying the property is responsible for paying
13265+the rates, charges, and fees assessed for the services rendered by
13266+the municipally owned utility with respect to the property.
13267+Rates, charges, and fees assessed for services rendered by a
13268+municipally owned utility with respect to property occupied by
13269+ES 419—LS 6606/DI 120 307
13270+someone other than the owner of the property do not constitute a lien
13271+against the property.
13272+(k) With respect to property that is served by a municipally owned
13273+utility and that is occupied by someone other than the owner of the
13274+property, subsection (j) does not:
13275+(1) prohibit a municipal legislative body from imposing any:
13276+(A) requirement for a deposit to ensure payment by the person
13277+occupying the property of the rates, charges, and fees assessed
13278+for the services rendered by the municipally owned utility with
13279+respect to the property; or
13280+(B) other requirement to ensure the creditworthiness of the
13281+person occupying the property as the account holder or
13282+customer with respect to the property;
13283+that the municipal legislative body may lawfully impose; or
13284+(2) abrogate or limit the authority of the owner of a multi-unit
13285+building to engage in electrical submetering under IC 8-1-2-36.5,
13286+subject to:
13287+(A) the owner's qualification to engage in submetering under
13288+IC 8-1-2-36.5 and 170 IAC 4-5; and
13289+(B) the owner's compliance with the requirements for
13290+submetering set forth in IC 8-1-2-36.5 and 170 IAC 4-5.
13291+(l) With respect to property that is served by a municipally owned
13292+utility and that is occupied by someone other than the owner of the
13293+property, subsection (k) does not allow a municipal legislative body to
13294+impose a requirement that the owner of the property must:
13295+(1) ensure the creditworthiness of the person occupying the
13296+property; or
13297+(2) accept responsibility for charges incurred by the person
13298+occupying the property;
13299+by cosigning an agreement or by any other method.
13300+SECTION 68. IC 8-1.5-3-8.3, AS AMENDED BY P.L.270-2013,
13301+SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13302+UPON PASSAGE]: Sec. 8.3. (a) This section applies to a utility that
13303+provides service to property located outside the corporate boundaries
13304+of the municipality.
13305+(b) As used in this section:
13306+(1) "utility"; and
13307+(2) "works";
13308+have the meaning set forth for those terms in section 8.1 of this chapter.
13309+(c) This subsection applies if a municipal legislative body adopts an
13310+ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that
13311+is in effect on March 31, 2012, and that imposes rates and charges on
13312+ES 419—LS 6606/DI 120 308
13313+users of the works for service to property located outside the corporate
13314+boundaries of the municipality that exceed by more than fifteen percent
13315+(15%), but not more than fifty percent (50%), the rates and charges
13316+imposed on users of the works for service to property located within the
13317+corporate boundaries of the municipality. Not later than September 30,
13318+2012, the municipality may petition the commission to approve the
13319+percentage difference between rates and charges established in the
13320+ordinance for property within and property outside the corporate
13321+boundaries. In the petition, the municipality shall set forth the
13322+following:
13323+(1) The date on which the ordinance took effect.
13324+(2) The percentage difference between rates and charges imposed
13325+on users of the works for service to property located outside the
13326+corporate boundaries of the municipality and to property located
13327+within the corporate boundaries of the municipality.
13328+(3) Whether the works that is the subject of the ordinance is a
13329+water utility works, a wastewater utility works, or both a water
13330+and wastewater utility works.
13331+If the commission determines that a petition filed under this subsection
13332+satisfies the requirements of this subsection, the commission shall
13333+approve the petition, including the percentage difference between rates
13334+and charges described in subdivision (2). If the commission determines
13335+that a petition filed under this subsection does not satisfy the
13336+requirements of this subsection, the commission shall disapprove the
13337+petition. However, if the percentage difference imposed in the
13338+ordinance was the subject of an objecting petition that was filed under
13339+section 8.2 of this chapter or under IC 36-9-23-26.1 and sustained on
13340+final judgment or appeal, as applicable, by a court, the percentage
13341+difference is considered approved without the filing of a petition under
13342+this subsection.
13343+(d) If a municipality that files, or that is exempt from filing, a
13344+petition under subsection (c) adopts an ordinance under section 8.1 of
13345+this chapter or under IC 36-9-23-26 after March 31, 2012, that imposes
13346+rates and charges on users of the works for service to property located
13347+outside the corporate boundaries of the municipality that exceed the
13348+rates and charges imposed on users of the works for service to property
13349+located within the corporate boundaries of the municipality by more
13350+than the sum of the percentage difference approved or considered
13351+approved by the commission under subsection (c) plus fifteen percent
13352+(15%), either or both of the following may petition the commission to
13353+review and adjust, if necessary, the rates and charges imposed on users
13354+of the works for service to property located outside the corporate
13355+ES 419—LS 6606/DI 120 309
13356+boundaries of the municipality:
13357+(1) The municipality.
13358+(2) The lesser of:
13359+(A) ten percent (10%) of all; or
13360+(B) twenty-five (25);
13361+users of the works whose property is located outside the corporate
13362+boundaries of the municipality.
13363+A petition filed under this subsection must be filed not more than
13364+fourteen (14) days after the date on which the ordinance referred to in
13365+this subsection is adopted. A petition may not be filed under this
13366+subsection if a petition has already been filed under section 8.2 of this
13367+chapter appealing the same rates and charges.
13368+(e) If a municipal legislative body, other than a municipal legislative
13369+body described in subsection (c), adopts an ordinance under section 8.1
13370+of this chapter or under IC 36-9-23-26 after March 31, 2012, that
13371+imposes rates and charges on users of the works for service to property
13372+located outside the corporate boundaries of the municipality that
13373+exceed the rates and charges imposed on users of the works for service
13374+to property located within the corporate boundaries of the municipality
13375+by more than fifteen percent (15%), either or both of the following may
13376+petition the commission to review and adjust, if necessary, the rates and
13377+charges imposed on users of the works for service to property located
13378+outside the corporate boundaries of the municipality:
13379+(1) The municipality.
13380+(2) The lesser of:
13381+(A) ten percent (10%) of all; or
13382+(B) twenty-five (25);
13383+users of the works whose property is located outside the corporate
13384+boundaries of the municipality.
13385+A petition must be filed not more than fourteen (14) days after the date
13386+on which the ordinance is adopted. A petition may not be filed under
13387+this subsection if a petition has already been filed under section 8.2 of
13388+this chapter or under IC 36-9-23-26.1 appealing the same rates and
13389+charges.
13390+(f) The filing of a petition with the commission under subsection
13391+(d), (e), or (m) stays the ordinance adopted under section 8.1 of this
13392+chapter or under IC 36-9-23-26. The rates and charges in effect before
13393+the adoption of the ordinance remain in effect until:
13394+(1) the commission approves or disapproves the petition; and
13395+(2) if applicable, the commission adjusts the rates and charges
13396+imposed by the ordinance on users of the works whose property
13397+is located outside the corporate boundaries of the municipality.
13398+ES 419—LS 6606/DI 120 310
13399+(g) The commission shall prescribe the form and manner in which
13400+a petition must be filed under subsection (d), (e), or (m), or (o). A
13401+petition filed under subsection (d)(2), (e)(2), or (m)(2), or (o)(2) must
13402+be signed by:
13403+(1) each individual user seeking review by the commission; or
13404+(2) one (1) or more attorneys licensed to practice law in Indiana
13405+who represent the individual users seeking review by the
13406+commission.
13407+The burden of proof to demonstrate that the proposed rates and charges
13408+are nondiscriminatory, reasonable, and just is on the municipality,
13409+regardless of who petitions the commission. The commission shall
13410+approve or disapprove a petition within one hundred twenty (120) days
13411+after the petition is filed in the form and manner prescribed by the
13412+commission. However, the commission may extend the one hundred
13413+twenty (120) day deadline for up to sixty (60) days for good cause if all
13414+parties to the proceeding agree. A petition is automatically disapproved
13415+if the petitioner has filed a petition under section 8.2 of this chapter or
13416+under IC 36-9-23-26.1 with respect to the same rate ordinance.
13417+(h) For purposes of determining whether the percentage difference
13418+between rates and charges imposed on users of the works for service to
13419+property located outside the corporate boundaries of the municipality
13420+and the rates and charges imposed on users of the works for service to
13421+property located within the corporate boundaries of the municipality is
13422+nondiscriminatory, reasonable, and just under section 8 of this chapter,
13423+the commission:
13424+(1) may consider the benefit and expense to all users of the works
13425+of extending the works outside the corporate boundaries of the
13426+municipality; and
13427+(2) may not consider any connection fees or capital surcharges
13428+imposed on users of the works for service to property that is
13429+located outside the corporate boundaries of the municipality that
13430+are specifically designated to pay for the costs associated with
13431+main extensions to the users of the works.
13432+(i) If the commission determines that the percentage difference
13433+between the rates and charges imposed on users of the works for
13434+service to property located outside the corporate boundaries of the
13435+municipality and the rates and charges imposed on users of the works
13436+for service to property located within the corporate boundaries of the
13437+municipality is not nondiscriminatory, reasonable, and just under
13438+section 8 of this chapter, the commission may:
13439+(1) establish nondiscriminatory, reasonable, and just rates and
13440+charges for users of the works for service to property located
13441+ES 419—LS 6606/DI 120 311
13442+outside the corporate boundaries of the municipality; and
13443+(2) order the municipal legislative body to adopt an ordinance
13444+imposing the nondiscriminatory, reasonable, and just rates and
13445+charges.
13446+However, with respect to rates and charges imposed in an ordinance
13447+that was the subject of an objecting petition filed under section 8.2 of
13448+this chapter or under IC 36-9-23-26.1 and sustained on final judgment
13449+or appeal, as applicable, by a court, the commission may not establish
13450+rates and charges such that the percentage difference between rates and
13451+charges established by the commission is less than the percentage
13452+difference between rates and charges imposed in the ordinance.
13453+(j) This section does not:
13454+(1) authorize the commission to review or revise rates and charges
13455+imposed on users of the works for service to property located
13456+within the corporate boundaries of the municipality; or
13457+(2) otherwise return or subject a utility to the jurisdiction of the
13458+commission for the approval of rates and charges.
13459+(k) The commission may adopt rules under IC 4-22-2 to implement
13460+this section.
13461+(l) The commission may not impose a fee with respect to
13462+proceedings under this section.
13463+(m) This subsection applies if a municipal legislative body, other
13464+than a municipal legislative body described in subsection (c), adopts an
13465+ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that
13466+is in effect on March 31, 2012, and that imposes rates and charges on
13467+users of the works for service to property located outside the corporate
13468+boundaries of the municipality that exceed by more than fifty percent
13469+(50%) the rates and charges imposed on users of the works for service
13470+to property located anywhere within the corporate boundaries of the
13471+municipality. Not later than December 31, 2013, either or both of the
13472+following may petition the commission to review and adjust, if
13473+necessary, the rates and charges imposed on users of the works for
13474+service to property located outside the corporate boundaries of the
13475+municipality:
13476+(1) The municipality.
13477+(2) Subject to subsection (n), the lesser of:
13478+(A) ten percent (10%) of all; or
13479+(B) twenty-five (25);
13480+users of the works whose property is located outside the corporate
13481+boundaries of the municipality.
13482+(n) At least twenty (20) days before a group of users described in
13483+subsection (m)(2) may petition the commission under subsection (m),
13484+ES 419—LS 6606/DI 120 312
13485+the group of users must file the petition with the municipal legislative
13486+body. The municipal legislative body and the group of users shall
13487+attempt to resolve the issues set forth in the petition concerning the
13488+rates and charges imposed on the group of users. If the group of users
13489+and the municipal legislative body are unable to resolve the issues
13490+within ten (10) days, the group of users may petition the commission
13491+under subsection (m).
13492+(o) This subsection applies if a municipality that files, or that is
13493+exempt from filing, a petition under subsection (c) has adopted an
13494+ordinance under section 8.1 of this chapter or under IC 36-9-23-26
13495+that is in effect on January 1, 2023, and that imposes rates and
13496+charges on users of the works for service to property located
13497+outside the corporate boundaries of the municipality that exceed by
13498+more than fifteen percent (15%), but not more than fifty percent
13499+(50%), the rates and charges imposed on users of the works for
13500+service to property located within the corporate boundaries of the
13501+municipality. Not later than December 31, 2023, either or both of
13502+the following may petition the commission to review and adjust, if
13503+necessary, the rates and charges imposed on users of the works for
13504+service to property located outside the corporate boundaries of the
13505+municipality:
13506+(1) The municipality.
13507+(2) The lesser of:
13508+(A) ten percent (10%) of all; or
13509+(B) twenty-five (25);
13510+users of the works whose property is located outside the
13511+corporate boundaries of the municipality.
13512+SECTION 69. IC 12-11-14-6, AS ADDED BY P.L.12-2016,
13513+SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13514+JANUARY 1, 2026]: Sec. 6. As used in this chapter, "eligible
13515+individual" means an individual who during a taxable year:
13516+(1) is entitled to benefits based on blindness or disability under
13517+Title II or Title XVI of the federal Social Security Act and the
13518+blindness or disability occurred before the individual became
13519+twenty-six (26) forty-six (46) years of age; or
13520+(2) has a disability certification that has been filed as set forth in
13521+Section 529A of the Internal Revenue Code.
13522+SECTION 70. IC 20-19-7-2 IS REPEALED [EFFECTIVE JULY 1,
13523+2023]. Sec. 2. As used in this chapter, "executive director" means the
13524+executive director of the DUAB.
13525+SECTION 71. IC 20-19-7-2.3 IS ADDED TO THE INDIANA
13526+CODE AS A NEW SECTION TO READ AS FOLLOWS
13527+ES 419—LS 6606/DI 120 313
13528+[EFFECTIVE UPON PASSAGE]: Sec. 2.3. As used in this chapter,
13529+"public agency" has the meaning set forth in IC 5-14-1.5-2(a).
13530+SECTION 72. IC 20-19-7-2.5 IS ADDED TO THE INDIANA
13531+CODE AS A NEW SECTION TO READ AS FOLLOWS
13532+[EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter,
13533+"public official" means an elected or appointed official in the
13534+executive, legislative, or judicial branch of the state government or
13535+a political subdivision, and includes an individual acting on behalf
13536+of a public employer, whether temporarily or permanently,
13537+including, but not limited to, members of boards, committees,
13538+commissions, authorities, and other instrumentalities of the state
13539+or a political subdivision.
13540+SECTION 73. IC 20-19-7-3 IS REPEALED [EFFECTIVE UPON
13541+PASSAGE]. Sec. 3. (a) The fiscal and qualitative indicators committee
13542+is established to make the following determinations:
13543+(1) The determination of the fiscal and qualitative indicators to be
13544+used for evaluating the financial condition of each school
13545+corporation.
13546+(2) The determination of the information that is to be presented on
13547+the DUAB's Internet website or the management performance
13548+hub's Internet web site in accordance with section 5(c) of this
13549+chapter.
13550+(3) The determination of how frequently to update:
13551+(A) the fiscal and qualitative indicators being used to evaluate
13552+the financial condition of school corporations; and
13553+(B) the presentation of information on the DUAB's Internet
13554+web site or the management performance hub's Internet web
13555+site in accordance with section 5(c) of this chapter.
13556+(b) The members of the committee must be employees of, and
13557+appointed by, each of the following:
13558+(1) The DUAB.
13559+(2) The department of education.
13560+(3) The budget agency.
13561+(4) The state board of accounts.
13562+(5) The department of local government finance.
13563+(6) The management performance hub.
13564+In addition, a member of the Indiana Association of School Business
13565+Officials appointed by the Association's board of directors is a member
13566+of the committee.
13567+(c) The member appointed by the DUAB is the chairperson of the
13568+committee.
13569+(d) Members serve at the pleasure of the appointing authority.
13570+ES 419—LS 6606/DI 120 314
13571+SECTION 74. IC 20-19-7-4, AS ADDED BY P.L.213-2018(ss),
13572+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13573+UPON PASSAGE]: Sec. 4. (a) Subject to review by the state budget
13574+committee under section 6 of this chapter, the fiscal and qualitative
13575+indicators committee DUAB shall determine the fiscal and qualitative
13576+indicators to be used for evaluating the financial condition of each
13577+school corporation.
13578+(b) The fiscal indicators under subsection (a) may include the
13579+following factors:
13580+Annual capital expenses compared to total capital assets
13581+Average daily membership (ADM)
13582+Common school fund loans
13583+Controlled project fund referendum revenue
13584+Debt to assessed value and debt to ADM ratios
13585+Education fund referendum revenue
13586+Federal revenues
13587+Fund cash balances by fund and overall
13588+Fund deficits and surpluses by fund and overall
13589+Fund deficits and surpluses combining the education and
13590+operations fund and debt
13591+Gross expenditures per ADM
13592+Interfund transfers
13593+Operating deficit or surplus
13594+Outstanding debt and annual debt service obligations
13595+Qualitative indicators as set forth in subsection (c)
13596+Salaries and benefits
13597+Seven (7) year trend lines using state fiscal years
13598+State tuition support
13599+Any other fiscal indicator determined by the fiscal and qualitative
13600+indicators committee. DUAB.
13601+(c) The qualitative indicators under subsection (a) may include the
13602+following factors:
13603+Failure to make required contributions or transfers
13604+Issuance of judgment bonds
13605+Missed debt payments
13606+Missed payroll
13607+Past due vendor payments
13608+Any findings related to the financial condition of the school
13609+corporation by the Indiana education employment relations board
13610+Any other qualitative indicator determined by the fiscal and
13611+qualitative indicators committee. DUAB.
13612+SECTION 75. IC 20-19-7-5, AS ADDED BY P.L.213-2018(ss),
13613+ES 419—LS 6606/DI 120 315
13614+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13615+UPON PASSAGE]: Sec. 5. (a) Subject to review by the state budget
13616+committee under section 6 of this chapter, the fiscal and qualitative
13617+indicators committee DUAB shall prescribe the presentation of the
13618+information of the fiscal and qualitative indicators used under this
13619+chapter.
13620+(b) The information under subsection (a) must be presented in a
13621+manner that accomplishes the following:
13622+(1) The information must be conveniently and easily accessed
13623+from a single Internet web page.
13624+(2) The information must be viewable in a format commonly
13625+known as an Internet a dashboard.
13626+(3) The information must be viewable in graphical form.
13627+(4) The information must be easily searchable.
13628+(5) The underlying data must be downloadable in a format that
13629+can be imported into standard spreadsheet computer software.
13630+(c) The DUAB shall periodically publish the information under
13631+subsection (a) on its Internet web site website or the management
13632+performance hub's Internet web site. website. The management
13633+performance hub shall assist the DUAB in the development of the
13634+dashboard for publication.
13635+SECTION 76. IC 20-19-7-6, AS ADDED BY P.L.213-2018(ss),
13636+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13637+UPON PASSAGE]: Sec. 6. (a) Before making a final determination
13638+under section 4 of this chapter concerning the fiscal and qualitative
13639+indicators that will be used for evaluating the financial condition of
13640+school corporations, the fiscal and qualitative indicators committee
13641+DUAB must present a draft of the proposed fiscal and qualitative
13642+indicators to the state budget committee for review by the state budget
13643+committee.
13644+(b) Before prescribing the requirements under section 5 of this
13645+chapter for the presentation of the fiscal and qualitative indicators used
13646+under this chapter, the fiscal and qualitative indicators committee
13647+DUAB must present a draft of the proposed requirements to the state
13648+budget committee for review by the state budget committee.
13649+SECTION 77. IC 20-19-7-7 IS REPEALED [EFFECTIVE UPON
13650+PASSAGE]. Sec. 7. The fiscal and qualitative indicators committee
13651+shall before January 1, 2019, publish the fiscal and qualitative
13652+indicators for each school corporation on the DUAB's Internet web site
13653+or the management performance hub's Internet web site.
13654+SECTION 78. IC 20-19-7-8, AS ADDED BY P.L.213-2018(ss),
13655+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13656+ES 419—LS 6606/DI 120 316
13657+JULY 1, 2023]: Sec. 8. The DUAB shall may adopt policies and
13658+procedures that will be used by the DUAB to implement this chapter.
13659+Policies and procedures adopted under this section may include
13660+processes that will be used by the DUAB to do the following:
13661+(1) Identify school corporations that demonstrate signs of
13662+financial distress.
13663+(2) Determine when a corrective action plan is necessary for
13664+a school corporation.
13665+(3) Determine the conditions that must be satisfied before a
13666+school corporation:
13667+(A) will no longer be subject to a corrective action plan;
359213668 and
3593-(2) the administrative head of the state agency agrees that any
3594-information released will be kept confidential and will be used
3595-solely for official purposes.
3596-(g) The information described in subsection (a) may be revealed
3597-upon the receipt of a written request from the chief law enforcement
3598-officer of a state or local law enforcement agency in Indiana when it is
3599-agreed that the information is to be confidential and to be used solely
3600-for official purposes.
3601-(h) The name and address of retail merchants, including township,
3602-as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
3603-purposes to township assessors and county assessors.
3604-(i) The department shall notify the appropriate innkeeper's tax
3605-board, bureau, or commission that a taxpayer is delinquent in remitting
3606-SEA 419 — CC 1 85
3607-innkeepers' taxes under IC 6-9.
3608-(j) All information relating to the delinquency or evasion of the
3609-vehicle excise tax may be disclosed to the bureau of motor vehicles in
3610-Indiana and may be disclosed to another state, if the information is
3611-disclosed for the purpose of the enforcement and collection of the taxes
3612-imposed by IC 6-6-5.
3613-(k) All information relating to the delinquency or evasion of
3614-commercial vehicle excise taxes payable to the bureau of motor
3615-vehicles in Indiana may be disclosed to the bureau and may be
3616-disclosed to another state, if the information is disclosed for the
3617-purpose of the enforcement and collection of the taxes imposed by
3618-IC 6-6-5.5.
3619-(l) All information relating to the delinquency or evasion of
3620-commercial vehicle excise taxes payable under the International
3621-Registration Plan may be disclosed to another state, if the information
3622-is disclosed for the purpose of the enforcement and collection of the
3623-taxes imposed by IC 6-6-5.5.
3624-(m) All information relating to the delinquency or evasion of the
3625-excise taxes imposed on recreational vehicles and truck campers that
3626-are payable to the bureau of motor vehicles in Indiana may be disclosed
3627-to the bureau and may be disclosed to another state if the information
3628-is disclosed for the purpose of the enforcement and collection of the
3629-taxes imposed by IC 6-6-5.1.
3630-(n) This section does not apply to:
3631-(1) the beer excise tax, including brand and packaged type (IC
3632-7.1-4-2);
3633-(2) the liquor excise tax (IC 7.1-4-3);
3634-(3) the wine excise tax (IC 7.1-4-4);
3635-(4) the hard cider excise tax (IC 7.1-4-4.5);
3636-(5) the vehicle excise tax (IC 6-6-5);
3637-(6) the commercial vehicle excise tax (IC 6-6-5.5); and
3638-(7) the fees under IC 13-23.
3639-(o) The name and business address of retail merchants within each
3640-county that sell tobacco products may be released to the division of
3641-mental health and addiction and the alcohol and tobacco commission
3642-solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
3643-(p) The name and business address of a person licensed by the
3644-department under IC 6-6 or IC 6-7, or issued a registered retail
3645-merchant's certificate under IC 6-2.5, may be released for the purpose
3646-of reporting the status of the person's license or certificate.
3647-(q) The department may release information concerning total
3648-incremental tax amounts under:
3649-SEA 419 — CC 1 86
3650-(1) IC 5-28-26;
3651-(2) IC 36-7-13;
3652-(3) IC 36-7-26;
3653-(4) IC 36-7-27;
3654-(5) IC 36-7-31;
3655-(6) IC 36-7-31.3; or
3656-(7) any other statute providing for the calculation of incremental
3657-state taxes that will be distributed to or retained by a political
3658-subdivision or other entity;
3659-to the fiscal officer of the political subdivision or other entity that
3660-established the district or area from which the incremental taxes were
3661-received if that fiscal officer enters into an agreement with the
3662-department specifying that the political subdivision or other entity will
3663-use the information solely for official purposes.
3664-(r) The department may release the information as required in
3665-IC 6-8.1-3-7.1 concerning:
3666-(1) an innkeeper's tax, a food and beverage tax, or an admissions
3667-tax under IC 6-9;
3668-(2) the supplemental auto rental excise tax under IC 6-6-9.7; and
3669-(3) the covered taxes allocated to a professional sports
3670-development area fund, sports and convention facilities operating
3671-fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
3672-(s) Information concerning state gross retail tax exemption
3673-certificates that relate to a person who is exempt from the state gross
3674-retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
3675-defined in IC 6-2.5-1-22.5) or a person selling the services or
3676-commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
3677-collecting the state gross retail and use taxes under IC 6-2.5.
3678-(t) The department may release a statement of tax withholding or
3679-other tax information statement provided on behalf of a taxpayer to the
3680-department to:
3681-(1) the taxpayer on whose behalf the tax withholding or other tax
3682-information statement was provided to the department;
3683-(2) the taxpayer's spouse, if:
3684-(A) the taxpayer is deceased or incapacitated; and
3685-(B) the taxpayer's spouse is filing a joint income tax return
3686-with the taxpayer; or
3687-(3) an administrator, executor, trustee, or other fiduciary acting on
3688-behalf of the taxpayer if the taxpayer is deceased.
3689-(u) Information related to a listed tax regarding a taxpayer may be
3690-disclosed to an individual without a power of attorney under
3691-IC 6-8.1-3-8(a)(2) if:
3692-SEA 419 — CC 1 87
3693-(1) the individual is authorized to file returns and remit payments
3694-for one (1) or more listed taxes on behalf of the taxpayer through
3695-the department's online tax system before September 8, 2020;
3696-(2) the information relates to a listed tax described in subdivision
3697-(1) for which the individual is authorized to file returns and remit
3698-payments;
3699-(3) the taxpayer has been notified by the department of the
3700-individual's ability to access the taxpayer's information for the
3701-listed taxes described in subdivision (1) and the taxpayer has not
3702-objected to the individual's access;
3703-(4) the individual's authorization or right to access the taxpayer's
3704-information for a listed tax described in subdivision (1) has not
3705-been withdrawn by the taxpayer; and
3706-(5) disclosure of the information to the individual is not
3707-prohibited by federal law.
3708-Except as otherwise provided by this article, this subsection does not
3709-authorize the disclosure of any correspondence from the department
3710-that is mailed or otherwise delivered to the taxpayer relating to the
3711-specified listed taxes for which the individual was given authorization
3712-by the taxpayer. The department shall establish a date, which may be
3713-earlier but not later than September 1, 2023, after which a taxpayer's
3714-information concerning returns and remittances for a listed tax may not
3715-be disclosed to an individual without a power of attorney under
3716-IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
3717-previously authorized individuals, including notification published on
3718-the department's Internet web site. website. After the earlier of the date
3719-established by the department or September 1, 2023, the department
3720-may not disclose a taxpayer's information concerning returns and
3721-remittances for a listed tax to an individual unless the individual has a
3722-power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
3723-otherwise allowed under this article.
3724-(v) The department may publish a list of persons, corporations,
3725-or other entities that qualify or have qualified for an exemption for
3726-sales tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or
3727-otherwise provide information regarding a person's, corporation's,
3728-or entity's exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or
3729-IC 6-2.5-5-26. For purposes of this subsection, information that
3730-may be disclosed includes:
3731-(1) any federal identification number or other identification
3732-number for the entity assigned by the department;
3733-(2) any expiration date of an exemption under IC 6-2.5-5-25;
3734-(3) whether any sales tax exemption has expired or has been
3735-SEA 419 — CC 1 88
3736-revoked by the department; and
3737-(4) any other information reasonably necessary for a recipient
3738-of an exemption certificate to determine if an exemption
3739-certificate is valid.
3740-SECTION 33. IC 6-8.1-10-9.5 IS ADDED TO THE INDIANA
13669+(B) will be considered as financially healthy.
13670+SECTION 79. IC 20-19-7-9 IS REPEALED [EFFECTIVE JULY 1,
13671+2023]. Sec. 9. The executive director shall present to the state budget
13672+committee a report concerning the processes that will be used by
13673+DUAB and the executive director to do the following:
13674+(1) Identify school corporations that demonstrate signs of
13675+financial distress.
13676+(2) Determine when a corrective action plan is necessary for a
13677+school corporation.
13678+(3) Determine the conditions that must be satisfied before a
13679+school corporation:
13680+(A) will no longer be subject to a corrective action plan; and
13681+(B) will be considered as financially healthy.
13682+SECTION 80. IC 20-19-7-10, AS ADDED BY P.L.213-2018(ss),
13683+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13684+JULY 1, 2023]: Sec. 10. Before June 1, 2019, the executive director
13685+shall prepare and submit to the DUAB an initial report identifying
13686+those school corporations for which a corrective action plan may be
13687+appropriate, based on the fiscal and qualitative indicators. The
13688+executive director DUAB shall on a schedule determined by the DUAB
13689+submit subsequent periodically prepare reports identifying those
13690+school corporations for which a corrective action plan may be
13691+appropriate, based on the fiscal and qualitative indicators. The DUAB
13692+shall make a determination concerning which school corporations the
13693+executive director DUAB shall contact for purposes of conducting an
13694+assessment under section 11 of this chapter.
13695+SECTION 81. IC 20-19-7-11, AS ADDED BY P.L.213-2018(ss),
13696+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13697+JULY 1, 2023]: Sec. 11. (a) The executive director DUAB shall do the
13698+following:
13699+ES 419—LS 6606/DI 120 317
13700+(1) Contact the governing body and the superintendent of each
13701+school corporation for which the distressed unit appeal board
13702+DUAB makes a determination under section 10 of this chapter.
13703+(2) Carry out an assessment of the financial condition of each
13704+school corporation for which the DUAB makes a determination
13705+under section 10 of this chapter.
13706+(b) A school corporation for which an assessment of financial
13707+condition is carried out under this section shall:
13708+(1) cooperate with the executive director DUAB as the executive
13709+director DUAB carries out the assessment of the school
13710+corporation's financial condition; and
13711+(2) provide any information and documents requested by the
13712+executive director. DUAB.
13713+SECTION 82. IC 20-19-7-12, AS ADDED BY P.L.213-2018(ss),
13714+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13715+JULY 1, 2023]: Sec. 12. (a) After reviewing:
13716+(1) the assessment of a school corporation's financial condition
13717+made by the executive director under section 11 of this chapter;
13718+and
13719+(2) the school corporation's fiscal and qualitative indicators;
13720+the DUAB shall make a determination of whether a corrective action
13721+plan is necessary for the school corporation.
13722+(b) If the DUAB makes a determination that a corrective action plan
13723+is necessary for the school corporation, the DUAB shall notify the
13724+governing body and the superintendent of the school corporation that
13725+the school corporation must develop and submit to the DUAB a
13726+corrective action plan for the school corporation within ninety (90)
13727+days after the notice is provided.
13728+(c) If a school corporation does not prepare and submit a corrective
13729+action plan to the DUAB within ninety (90) days after the notice is
13730+provided under subsection (b), the DUAB shall place the school
13731+corporation on the watch list under section 17 of this chapter.
13732+SECTION 83. IC 20-19-7-13, AS ADDED BY P.L.213-2018(ss),
13733+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13734+JULY 1, 2023]: Sec. 13. (a) Upon the request of a school corporation
13735+that is required to submit a corrective action plan, the executive
13736+director DUAB and other appropriate state departments and agencies
13737+shall:
13738+(1) assist the school corporation in developing the corrective
13739+action plan; and
13740+(2) provide technical assistance to the school corporation.
13741+(b) The DUAB and any other state departments or agencies that
13742+ES 419—LS 6606/DI 120 318
13743+provide assistance to a school corporation under this section are not
13744+responsible for implementing the corrective action plan.
13745+SECTION 84. IC 20-19-7-14, AS ADDED BY P.L.213-2018(ss),
13746+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13747+UPON PASSAGE]: Sec. 14. The superintendent of a school
13748+corporation that is required to submit a corrective action plan shall
13749+update the governing body of the school corporation, as requested by
13750+the governing body, concerning the implementation of the corrective
13751+action plan submitted to the DUAB. The governing body of a school
13752+corporation that is required to prepare a corrective action plan
13753+may meet in executive session to receive the updates of the
13754+superintendent. discuss all aspects of the corrective action plan,
13755+including voting to approve a corrective action plan or
13756+modifications under section 16 of this chapter.
13757+SECTION 85. IC 20-19-7-15, AS ADDED BY P.L.213-2018(ss),
13758+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13759+JULY 1, 2023]: Sec. 15. The executive director DUAB shall meet at
13760+least once every ninety (90) days with the school corporation's
13761+superintendent, the president of the school corporation's governing
13762+body, and (as necessary) other administrators of the school corporation
13763+to discuss the corrective action plan and the school corporation's
13764+progress in implementing the corrective action plan.
13765+SECTION 86. IC 20-19-7-16, AS ADDED BY P.L.213-2018(ss),
13766+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13767+UPON PASSAGE]: Sec. 16. The following apply after a corrective
13768+action plan is submitted to the DUAB:
13769+(1) The DUAB may modify the corrective action plan at any time
13770+if the DUAB determines that the modification is necessary.
13771+(2) The superintendent or the governing body of the school
13772+corporation may request the DUAB to modify the corrective
13773+action plan, and the DUAB may make the requested modification.
13774+If the superintendent of the school corporation makes the request,
13775+the superintendent must notify the governing body of the school
13776+corporation of the requested modification.
13777+SECTION 87. IC 20-19-7-17, AS ADDED BY P.L.213-2018(ss),
13778+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13779+JULY 1, 2023]: Sec. 17. (a) The DUAB shall place the school
13780+corporation on a watch list if:
13781+(1) the executive director DUAB determines that the school
13782+corporation is not in compliance with the school corporation's
13783+corrective action plan;
13784+(2) the executive director DUAB notifies the superintendent and
13785+ES 419—LS 6606/DI 120 319
13786+governing body of the school corporation that:
13787+(A) the school corporation is not in compliance with the school
13788+corporation's corrective action plan; and
13789+(B) the school corporation must achieve compliance with the
13790+school corporation's corrective action plan within a period
13791+specified by the executive director; DUAB; and
13792+(3) the executive director DUAB determines that the school
13793+corporation has not achieved compliance with the school
13794+corporation's corrective action plan within the period specified in
13795+subdivision (2).
13796+(b) The DUAB shall place a school corporation on the watch list if
13797+required by section 12(c) of this chapter.
13798+(c) If the DUAB places a school corporation on the watch list under
13799+this section, the executive director DUAB shall notify:
13800+(1) the superintendent and governing body of the school
13801+corporation; and
13802+(2) the budget director.
13803+(d) The state budget committee shall review the school corporation's
13804+placement on the watch list.
13805+SECTION 88. IC 20-19-7-18, AS ADDED BY P.L.213-2018(ss),
13806+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13807+UPON PASSAGE]: Sec. 18. (a) Notwithstanding any other law, all
13808+reports, correspondence, and other records related to a school
13809+corporation's corrective action plan, including the initial report reports
13810+prepared by the executive director DUAB under section 10 of this
13811+chapter and an assessment prepared under section 11 of this chapter,
13812+and the placement of a school corporation on the watch list are
13813+excepted from public disclosure under IC 5-14-3 or any other law at the
13814+discretion of the DUAB or the school corporation unless and until the
13815+school corporation is placed on the watch list and the state budget
13816+committee has reviewed the school corporation's placement on the
13817+watch list. If the DUAB or a school corporation discloses any reports,
13818+correspondence, and other records related to a school corporation's
13819+corrective action plan, including the initial report a report prepared by
13820+the executive director DUAB under section 10 of this chapter and an
13821+assessment prepared under section 11 of this chapter, to other state
13822+agencies or officials public agencies or public officials prior to a
13823+school corporation's placement on the watch list and review by the state
13824+budget committee, these public agencies or public officials may not
13825+disclose the reports, correspondence, and other records, or the
13826+information contained in those reports, correspondence, and other
13827+records without the permission of the DUAB or the school
13828+ES 419—LS 6606/DI 120 320
13829+corporation.
13830+(b) If the DUAB or a school corporation discloses to public
13831+agencies or public officials that the school corporation was
13832+required to submit a corrective action plan, the public agencies or
13833+public officials may not disclose that information without the
13834+permission of the DUAB or the school corporation.
13835+(b) (c) The DUAB shall hold executive sessions to consider reports
13836+related to a school corporation's corrective action plan, including the
13837+initial report reports prepared by the executive director DUAB under
13838+section 10 of this chapter and an assessment prepared under section 11
13839+of this chapter, and to make final determinations required under
13840+sections 10, 12, 16, and 17 of this chapter. The final determinations
13841+required under sections 10, 12, 16, and 17 of this chapter shall be
13842+made in executive session.
13843+SECTION 89. IC 20-19-7-19, AS ADDED BY P.L.213-2018(ss),
13844+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13845+UPON PASSAGE]: Sec. 19. (a) The fiscal and qualitative indicators
13846+committee shall DUAB may do the following each year:
13847+(1) Review the fiscal and qualitative indicators used under this
13848+chapter to evaluate the financial condition of school corporations.
13849+(2) Determine if it is appropriate to change one (1) or more of the
13850+fiscal and qualitative indicators.
13851+(b) Before the fiscal and qualitative indicators committee DUAB
13852+may change a fiscal or qualitative indicator, the fiscal and qualitative
13853+indicators committee DUAB must first submit a report in an electronic
13854+format to the state budget committee specifying the proposed change
13855+in the fiscal or qualitative indicator.
13856+SECTION 90. IC 20-19-7-20, AS ADDED BY P.L.213-2018(ss),
13857+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13858+JULY 1, 2023]: Sec. 20. (a) The DUAB shall may do the following
13859+each year:
13860+(1) Review policies and procedures adopted under section 8 of
13861+this chapter by the DUAB.
13862+(2) Determine if it is appropriate to change one (1) or more of
13863+those policies and procedures.
13864+(b) Before the DUAB may change a policy or procedure adopted
13865+under section 8 of this chapter, the DUAB must first submit a report in
13866+an electronic format to the state budget committee specifying the
13867+proposed change in the policy or procedure.
13868+SECTION 91. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
374113869 CODE AS A NEW SECTION TO READ AS FOLLOWS
3742-[EFFECTIVE JANUARY 1, 2024]: Sec. 9.5. (a) As used in this
3743-section, the following terms have the following meanings:
3744-(1) "Successor in liability" means a person that directly or
3745-indirectly purchases, acquires, is gifted, or succeeds to
3746-ownership of more than one-half (1/2) of all tangible personal
3747-property of a business, by value, including inventory, at all
3748-locations combined, as measured by the value of the property
3749-at the time of the transfer. "Successor in liability" does not
3750-include a personal representative or beneficiary of an estate,
3751-a trustee in bankruptcy, a debtor in possession, a receiver, a
3752-secured party, a mortgagee, an assignee of rents, or any other
3753-lienholder. A person shall only be considered a successor in
3754-liability to the extent that:
3755-(A) a department lien or liens exist on tangible personal
3756-property transferred to the person;
3757-(B) all tax due by the transferring business to the extent
3758-that notice was not provided to the department as required
3759-by subsection (b); or
3760-(C) any tax due was included in the summary mailed to the
3761-successor in liability by the department pursuant to
13870+[EFFECTIVE UPON PASSAGE]: Sec. 0.2. As used in this chapter,
13871+ES 419—LS 6606/DI 120 321
13872+"DUAB" means the distressed unit appeal board established by
13873+IC 6-1.1-20.3-4.
13874+SECTION 92. IC 20-40-2-10, AS ADDED BY P.L.161-2019,
13875+SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13876+UPON PASSAGE]: Sec. 10. (a) After the department completes the
13877+school corporation notice requirement under section 9 of this chapter,
13878+the department shall notify the state board, fiscal and qualitative
13879+indicators committee, DUAB, and Indiana education employment
13880+relations board as soon as possible of all school corporations that
13881+received a notice stating they were on the excessive education fund
13882+transfer list for the immediately preceding calendar year.
13883+(b) Upon receipt of the department notice to a school corporation
13884+under section 9 of this chapter, the school corporation's superintendent
13885+and financial personnel, including the school's business officer, shall
13886+prepare and submit explanatory documentation within ninety (90) days,
13887+explaining the following:
13888+(1) How and why the school corporation's leadership believes the
13889+school corporation failed to meet the education fund transfer
13890+target percentage.
13891+(2) The steps the school corporation's leadership is planning or
13892+actively taking to budget and spend during the next calendar year
13893+to meet the education fund transfer target percentage for the next
13894+calendar year.
13895+(c) The school corporation's superintendent shall submit the
13896+explanatory documentation to the department and the fiscal and
13897+qualitative indicators committee. DUAB.
13898+(d) Upon submission of the explanatory documentation under
13899+subsection (b), the school corporation's superintendent shall present the
13900+explanatory documentation to the school corporation's governing body
13901+at its next public meeting. The governing body shall enter both the
13902+actual documentation and corresponding discussion into its official
13903+minutes for that meeting.
13904+(e) Upon the completion of the duties under subsection (d), the
13905+school corporation shall publish the explanatory documentation
13906+alongside any further notices and related reports from the department
13907+on its Internet web site website within thirty (30) days.
13908+(f) Upon receipt of a school corporation's explanatory
13909+documentation, the fiscal and qualitative indicators committee DUAB
13910+shall officially acknowledge receipt of the documentation at its next
13911+public meeting and enter the receipt into its official minutes for that
13912+meeting.
13913+(g) Upon receipt of the explanatory documentation, the department,
13914+ES 419—LS 6606/DI 120 322
13915+in collaboration with the fiscal and qualitative indicators committee,
13916+DUAB, shall review the documentation within sixty (60) days to make
13917+a preliminary determination of whether the documentation
13918+satisfactorily demonstrates that the school corporation's leadership has
13919+outlined and begun a corrective action plan to make progress in
13920+meeting the education fund transfer target percentage for the next
13921+calendar year.
13922+(h) If the department determines the explanatory documentation is
13923+not satisfactory, the department may contact the superintendent and
13924+financial personnel, including the school business officer, of the school
13925+corporation to schedule as soon as possible an appearance before the
13926+fiscal and qualitative indicators committee DUAB at a public meeting
13927+to provide an opportunity to explain the details within the explanatory
13928+documentation, and to explain to the fiscal and qualitative indicators
13929+committee DUAB the school corporation's budgeting and
13930+compensation levels in relation to the following for the school
13931+corporation:
13932+(1) How and why the education fund transfer target percentage
13933+was not met during the previous calendar year.
13934+(2) Total combined expenditures.
13935+(3) Student instructional expenditures.
13936+(4) Noninstructional expenditures.
13937+(5) Full-time teacher compensation expenditures.
13938+(6) Nonteaching, full-time administrative personnel compensation
13939+expenditures.
13940+(7) Nonteaching staff personnel compensation expenditures.
13941+(8) Any prior or planned attempts to seek the assistance available
13942+under this chapter from the Indiana education employment
13943+relations board and the department's division of finance.
13944+(9) Any prior or planned pooling of resources, combined
13945+purchases, usage of shared administrative services, or
13946+collaboration with contiguous school corporations in reducing
13947+noninstructional expenditures as described under IC 20-42.5-2-1.
13948+(10) Any prior or planned participation in a county school safety
13949+commission under IC 5-2-10.1-10 to assist and reduce school
13950+safety expenditures.
13951+(11) Any prior or planned consideration of meeting the
13952+requirements of and applying for school corporation efficiency
13953+incentive grants under IC 36-1.5-6.
13954+(i) The fiscal and qualitative indicators committee DUAB may
13955+contact the superintendent and financial personnel, including the
13956+school's business officer, of a school corporation that has been included
13957+ES 419—LS 6606/DI 120 323
13958+on the department's excessive education fund transfer list for at least
13959+two (2) immediately preceding calendar years to provide the school
13960+corporation an opportunity to explain to the fiscal and qualitative
13961+indicators committee DUAB in a public meeting the school
13962+corporation's budgeting and compensation levels in relation to the
13963+items listed in subsection (h).
13964+(j) After the fiscal and qualitative indicators committee DUAB
13965+receives the school corporation's explanation under this section, the
13966+fiscal and qualitative indicators committee DUAB may issue an official
13967+recommendation to the school corporation to perform a review and
13968+improve its budgeting procedures in consultation with any state
13969+agencies the fiscal and qualitative indicators committee DUAB
13970+considers appropriate. The state agencies specified by the fiscal and
13971+qualitative indicators committee DUAB shall assist the school
13972+corporation before and during its next collective bargaining period with
13973+the goal of meeting or making progress toward the education fund
13974+transfer target percentage. If the fiscal and qualitative indicators
13975+committee DUAB issues an official recommendation to a school
13976+corporation, the school corporation's governing body shall officially
13977+acknowledge receipt of the recommendation at its next public meeting
13978+and enter into the school corporation governing body's minutes for that
13979+meeting acknowledgment of receipt of the recommendation. In
13980+addition, the school corporation shall publish the official
13981+recommendation on the school corporation's Internet web site. website.
13982+(k) The school corporation shall publish the most recent notices
13983+from the department, relevant individual reports prepared by the
13984+department, explanatory documentation by the school corporation, and
13985+official recommendations by the fiscal and qualitative indicators
13986+committee DUAB on the school corporation's Internet web site.
13987+website.
13988+(l) The school corporation may remove the notice, its explanatory
13989+documentation, and the fiscal and qualitative indicators committee's
13990+DUAB's official recommendation from its Internet web site website if
13991+the department determines that the school corporation met its education
13992+fund transfer target percentage and is no longer on the excessive
13993+education fund transfer list.".
13994+Page 69, between lines 38 and 39, begin a new paragraph and insert:
13995+"SECTION 94. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
13996+SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13997+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 12.2. (a) The
13998+redevelopment commission may do the following:
13999+(1) Acquire by purchase, exchange, gift, grant, condemnation, or
14000+ES 419—LS 6606/DI 120 324
14001+lease, or any combination of methods, any personal property or
14002+interest in real property needed for the redevelopment of areas
14003+needing redevelopment that are located within the corporate
14004+boundaries of the unit.
14005+(2) Hold, use, sell (by conveyance by deed, land sale contract, or
14006+other instrument), exchange, lease, rent, or otherwise dispose of
14007+property acquired for use in the redevelopment of areas needing
14008+redevelopment on the terms and conditions that the commission
14009+considers best for the unit and its inhabitants.
14010+(3) Sell, lease, or grant interests in all or part of the real property
14011+acquired for redevelopment purposes to any other department of
14012+the unit or to any other governmental agency for public ways,
14013+levees, sewerage, parks, playgrounds, schools, and other public
14014+purposes on any terms that may be agreed on.
14015+(4) Clear real property acquired for redevelopment purposes.
14016+(5) Enter on or into, inspect, investigate, and assess real property
14017+and structures acquired or to be acquired for redevelopment
14018+purposes to determine the existence, source, nature, and extent of
14019+any environmental contamination, including the following:
14020+(A) Hazardous substances.
14021+(B) Petroleum.
14022+(C) Other pollutants.
14023+(6) Remediate environmental contamination, including the
14024+following, found on any real property or structures acquired for
14025+redevelopment purposes:
14026+(A) Hazardous substances.
14027+(B) Petroleum.
14028+(C) Other pollutants.
14029+(7) Repair and maintain structures acquired for redevelopment
14030+purposes.
14031+(8) Remodel, rebuild, enlarge, or make major structural
14032+improvements on structures acquired for redevelopment purposes.
14033+(9) Survey or examine any land to determine whether it should be
14034+included within an area needing redevelopment to be acquired for
14035+redevelopment purposes and to determine the value of that land.
14036+(10) Appear before any other department or agency of the unit, or
14037+before any other governmental agency in respect to any matter
14038+affecting:
14039+(A) real property acquired or being acquired for
14040+redevelopment purposes; or
14041+(B) any area needing redevelopment within the jurisdiction of
14042+the commissioners.
14043+ES 419—LS 6606/DI 120 325
14044+(11) Institute or defend in the name of the unit any civil action.
14045+(12) Use any legal or equitable remedy that is necessary or
14046+considered proper to protect and enforce the rights of and perform
14047+the duties of the department of redevelopment.
14048+(13) Appoint an executive director, appraisers, real estate experts,
14049+engineers, architects, surveyors, and attorneys.
14050+(14) Appoint clerks, guards, laborers, and other employees the
14051+commission considers advisable, except that those appointments
14052+must be made in accordance with the merit system of the unit if
14053+such a system exists.
14054+(15) Prescribe the duties and regulate the compensation of
14055+employees of the department of redevelopment.
14056+(16) Provide a pension and retirement system for employees of
14057+the department of redevelopment by using the Indiana public
14058+employees' retirement fund or a retirement plan approved by the
14059+United States Department of Housing and Urban Development.
14060+(17) Discharge and appoint successors to employees of the
14061+department of redevelopment subject to subdivision (14).
14062+(18) Rent offices for use of the department of redevelopment, or
14063+accept the use of offices furnished by the unit.
14064+(19) Equip the offices of the department of redevelopment with
14065+the necessary furniture, furnishings, equipment, records, and
14066+supplies.
14067+(20) Expend, on behalf of the special taxing district, all or any
14068+part of the money of the special taxing district.
14069+(21) Contract for the construction of:
14070+(A) local public improvements (as defined in IC 36-7-14.5-6)
14071+or structures that are necessary for redevelopment of areas
14072+needing redevelopment or economic development within the
14073+corporate boundaries of the unit; or
14074+(B) any structure that enhances development or economic
14075+development.
14076+(22) Contract for the construction, extension, or improvement of
14077+pedestrian skyways.
14078+(23) Accept loans, grants, and other forms of financial assistance
14079+from the federal government, the state government, a municipal
14080+corporation, a special taxing district, a foundation, or any other
14081+source.
14082+(24) Provide financial assistance (including grants and loans) to
14083+enable individuals and families to purchase or lease residential
14084+units in a multiple unit residential structure within the district.
14085+However, financial assistance may be provided only to individuals
14086+ES 419—LS 6606/DI 120 326
14087+and families whose income is at or below the unit's median
14088+income for individuals and families, respectively.
14089+(25) Provide financial assistance (including grants and loans) to
14090+neighborhood development corporations to permit them to:
14091+(A) provide financial assistance for the purposes described in
14092+subdivision (24); or
14093+(B) construct, rehabilitate, or repair commercial property
14094+within the district.
14095+(26) Require as a condition of financial assistance to the owner of
14096+a multiple unit residential structure that any of the units leased by
14097+the owner must be leased:
14098+(A) for a period to be determined by the commission, which
14099+may not be less than five (5) years;
14100+(B) to families whose income does not exceed eighty percent
14101+(80%) of the unit's median income for families; and
14102+(C) at an affordable rate.
14103+(27) This subdivision does not apply to a redevelopment
14104+commission in a county for which the total amount of net property
14105+taxes allocated to all allocation areas or other tax increment
14106+financing areas established by a redevelopment commission,
14107+military base reuse authority, military base development authority,
14108+or another similar entity in the county in the preceding calendar
14109+year exceeded nineteen percent (19%) of the total net property
14110+taxes billed in the county in the preceding calendar year. Subject
14111+to prior approval by the fiscal body of the unit that established the
14112+redevelopment commission, expend money and provide financial
14113+assistance (including grants and loans):
14114+(A) in direct support of:
14115+(i) an active military base located within the unit; or
14116+(ii) an entity located in the territory or facilities of a military
14117+base or former military base within the unit that is scheduled
14118+for closing or is completely or partially inactive or closed, or
14119+an entity that is located in any territory or facilities of the
14120+United States Department of Defense within the unit that are
14121+scheduled for closing or are completely or partially inactive
14122+or closed;
14123+including direct support for the promotion of the active
14124+military base or entity, the growth of the active military base
14125+or entity, and activities at the active military base or entity; and
14126+(B) in support of any other entity that provides services or
14127+direct support to an active military base or entity described in
14128+clause (A).
14129+ES 419—LS 6606/DI 120 327
14130+The fiscal body of the unit that established the redevelopment
14131+commission must separately approve each grant, loan, or other
14132+expenditure for financial assistance under this subdivision. The
14133+terms of any loan that is made under this subdivision may be
14134+changed only if the change is approved by the fiscal body of the
14135+unit that established the redevelopment commission. As used in
14136+this subdivision, "active military base" has the meaning set forth
14137+in IC 36-1-4-20.
14138+(28) Expend revenues from a tax increment financing district
14139+that are allocated for police and fire services on both capital
14140+expenditures and operating expenses.
14141+(b) Conditions imposed by the commission under subsection (a)(26)
14142+remain in force throughout the period determined under subsection
14143+(a)(26)(A), even if the owner sells, leases, or conveys the property. The
14144+subsequent owner or lessee is bound by the conditions for the
14145+remainder of the period.
14146+(c) As used in this section, "pedestrian skyway" means a pedestrian
14147+walkway within or outside of the public right-of-way and through and
14148+above public or private property and buildings, including all structural
14149+supports required to connect skyways to buildings or buildings under
14150+construction. Pedestrian skyways constructed, extended, or improved
14151+over or through public or private property constitute public property
14152+and public improvements, constitute a public use and purpose, and do
14153+not require vacation of any public way or other property.
14154+(d) All powers that may be exercised under this chapter by the
14155+redevelopment commission may also be exercised by the
14156+redevelopment commission in carrying out its duties and purposes
14157+under IC 36-7-14.5. However, if a power pertains to issuing bonds or
14158+incurring an obligation, the exercise of the power must first be
14159+specifically approved by the fiscal or legislative body of the unit,
14160+whichever applies.
14161+(e) A commission may not exercise the power of eminent domain.
14162+SECTION 95. IC 36-7-14-12.7 IS ADDED TO THE INDIANA
14163+CODE AS A NEW SECTION TO READ AS FOLLOWS
14164+[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 12.7. (a)
14165+Not later than December 1 each year, the redevelopment
14166+commissioners shall file with the department of local government
14167+finance and with the unit's executive and fiscal body a report
14168+setting out a spending plan for the next calendar year describing
14169+planned expenditures. The spending plan must be filed in the
14170+manner prescribed by the department of local government finance.
14171+(b) Except as provided in subsection (c), a redevelopment
14172+ES 419—LS 6606/DI 120 328
14173+commission may use money from the redevelopment commission's
14174+allocation fund described in section 39(b)(4) of this chapter and
14175+any other fund maintained by the redevelopment commission only
14176+for the purposes provided in the annual spending plan described in
14177+subsection (a).
14178+(c) A redevelopment commission may use money from funds
14179+described in subsection (b) for the purpose of paying more toward
14180+debt service obligations, in order to retire debt service earlier,
14181+regardless of whether that use is listed in the annual spending plan
14182+described in subsection (a). A redevelopment commission making
14183+accelerated debt payments under this subsection may retain the
14184+assessed value associated with the original debt service schedule.
14185+(d) Early debt retirement described under subsection (c) applies
14186+only if the early defeasance of debt is allowed according to the
14187+bond issuance documents.
14188+SECTION 96. IC 36-7-14-13.5 IS ADDED TO THE INDIANA
14189+CODE AS A NEW SECTION TO READ AS FOLLOWS
14190+[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 13.5. (a)
14191+Not later than December 31 of each year, the redevelopment
14192+commissioners shall provide the balance of:
14193+(1) the allocation fund described in section 39(b)(4) of this
14194+chapter; and
14195+(2) any other funds maintained by the redevelopment
14196+commission;
14197+to the department of local government finance, in the manner
14198+prescribed by the department of local government finance.
14199+(b) The department of local government finance shall post fund
14200+balances received under subsection (a) on the Indiana
14201+transparency website within ninety (90) days of the receipt of the
14202+fund balances.
14203+(c) This section expires July 1, 2028.
14204+SECTION 97. IC 36-7-14-15.5, AS AMENDED BY P.L.104-2022,
14205+SECTION 187, IS AMENDED TO READ AS FOLLOWS
14206+[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 15.5. (a)
14207+This section applies to a county having a population of more than two
14208+hundred fifty thousand (250,000) and less than three hundred thousand
14209+(300,000).
14210+(b) In adopting a declaratory resolution under section 15 of this
14211+chapter, a redevelopment commission may include a provision stating
14212+that the redevelopment project area is considered to include one (1) or
14213+more additional areas outside the boundaries of the redevelopment
14214+project area if the redevelopment commission makes the following
14215+ES 419—LS 6606/DI 120 329
14216+findings and the requirements of subsection (c) are met:
14217+(1) One (1) or more taxpayers presently located within the
14218+boundaries of the redevelopment project area are expected within
14219+one (1) year to relocate all or part of their operations outside the
14220+boundaries of the redevelopment project area and have expressed
14221+an interest in relocating all or part of their operations within the
14222+boundaries of an additional area.
14223+(2) The relocation described in subdivision (1) will contribute to
14224+the continuation of the conditions described in IC 36-7-1-3 in the
14225+redevelopment project area.
14226+(3) For purposes of this section, it will be of public utility and
14227+benefit to include the additional areas as part of the
14228+redevelopment project area.
14229+(c) Each additional area must be designated by the redevelopment
14230+commission as a redevelopment project area or an economic
14231+development area under this chapter.
14232+(d) Notwithstanding section 3 of this chapter, the additional areas
14233+shall be considered to be a part of the redevelopment special taxing
14234+district under the jurisdiction of the redevelopment commission. Any
14235+excess property taxes that the commission has determined may be paid
14236+to taxing units under section 39(b)(4) section 39(b)(5) of this chapter
14237+shall be paid to the taxing units from which the excess property taxes
14238+were derived. All powers of the redevelopment commission authorized
14239+under this chapter may be exercised by the redevelopment commission
14240+in additional areas under its jurisdiction.
14241+(e) The declaratory resolution must include a statement of the
14242+general boundaries of each additional area. However, it is sufficient to
14243+describe those boundaries by location in relation to public ways,
14244+streams, or otherwise, as determined by the commissioners.
14245+(f) The declaratory resolution may include a provision with respect
14246+to the allocation and distribution of property taxes with respect to one
14247+(1) or more of the additional areas in the manner provided in section 39
14248+of this chapter. If the redevelopment commission includes such a
14249+provision in the resolution, allocation areas in the redevelopment
14250+project area and in the additional areas considered to be part of the
14251+redevelopment project area shall be considered a single allocation area
14252+for purposes of this chapter.
14253+(g) The additional areas must be located within the same county as
14254+the redevelopment project area but are not otherwise required to be
14255+within the jurisdiction of the redevelopment commission, if the
14256+redevelopment commission obtains the consent by ordinance of:
14257+(1) the county legislative body, for each additional area located
14258+ES 419—LS 6606/DI 120 330
14259+within the unincorporated part of the county; or
14260+(2) the legislative body of the city or town affected, for each
14261+additional area located within a city or town.
14262+In granting its consent, the legislative body shall approve the plan of
14263+development or redevelopment relating to the additional area.
14264+(h) A declaratory resolution previously adopted may be amended to
14265+include a provision to include additional areas as set forth in this
14266+section and an allocation provision under section 39 of this chapter
14267+with respect to one (1) or more of the additional areas in accordance
14268+with sections 15, 16, and 17 of this chapter.
14269+(i) The redevelopment commission may amend the allocation
14270+provision of a declaratory resolution in accordance with sections 15,
14271+16, and 17 of this chapter to change the assessment date that
14272+determines the base assessed value of property in the allocation area to
14273+any assessment date following the effective date of the allocation
14274+provision of the declaratory resolution. Such a change may relate to the
14275+assessment date that determines the base assessed value of that portion
14276+of the allocation area that is located in the redevelopment project area
14277+alone, that portion of the allocation area that is located in an additional
14278+area alone, or the entire allocation area.
14279+SECTION 98. IC 36-7-14-25.1, AS AMENDED BY P.L.257-2019,
14280+SECTION 117, IS AMENDED TO READ AS FOLLOWS
14281+[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 25.1. (a)
14282+In addition to other methods of raising money for property acquisition
14283+or redevelopment in a redevelopment project area, and in anticipation
14284+of the special tax to be levied under section 27 of this chapter, the taxes
14285+allocated under section 39 of this chapter, or other revenues of the
14286+district, or any combination of these sources, the redevelopment
14287+commission may, by bond resolution and subject to subsections (c) and
14288+(p), issue the bonds of the special taxing district in the name of the unit.
14289+The amount of the bonds may not exceed the total, as estimated by the
14290+commission, of all expenses reasonably incurred in connection with the
14291+acquisition and redevelopment of the property, including:
14292+(1) the total cost of all land, rights-of-way, and other property to
14293+be acquired and redeveloped;
14294+(2) all reasonable and necessary architectural, engineering, legal,
14295+financing, accounting, advertising, bond discount, and
14296+supervisory expenses related to the acquisition and redevelopment
14297+of the property or the issuance of bonds;
14298+(3) capitalized interest permitted by this chapter and a debt
14299+service reserve for the bonds to the extent the redevelopment
14300+commission determines that a reserve is reasonably required; and
14301+ES 419—LS 6606/DI 120 331
14302+(4) expenses that the redevelopment commission is required or
14303+permitted to pay under IC 8-23-17.
14304+(b) If the redevelopment commission plans to acquire different
14305+parcels of land or let different contracts for redevelopment work at
14306+approximately the same time, whether under one (1) or more
14307+resolutions, the commission may provide for the total cost in one (1)
14308+issue of bonds.
14309+(c) The legislative body of the unit must adopt a resolution that
14310+specifies the public purpose of the bond, the use of the bond proceeds,
14311+the maximum principal amount of the bond, the term of the bond, and
14312+the maximum interest rate or rates of the bond, any provision for
14313+redemption before maturity, and any provision for the payment of
14314+capitalized interest. The bonds must be dated as set forth in the bond
14315+resolution and negotiable, subject to the requirements of the bond
14316+resolution for registering the bonds. The resolution authorizing the
14317+bonds must state:
14318+(1) the denominations of the bonds;
14319+(2) the place or places at which the bonds are payable; and
14320+(3) the term of the bonds, which may not exceed:
14321+(A) fifty (50) years, for bonds issued before July 1, 2008;
14322+(B) thirty (30) years, for bonds issued after June 30, 2008, to
14323+finance:
14324+(i) an integrated coal gasification powerplant (as defined in
14325+IC 6-3.1-29-6);
14326+(ii) a part of an integrated coal gasification powerplant (as
14327+defined in IC 6-3.1-29-6); or
14328+(iii) property used in the operation or maintenance of an
14329+integrated coal gasification powerplant (as defined in
14330+IC 6-3.1-29-6);
14331+that received a certificate of public convenience and necessity
14332+from the Indiana utility regulatory commission under
14333+IC 8-1-8.5 et seq. before July 1, 2008;
14334+(C) thirty-five (35) years, for bonds issued after June 30, 2019,
14335+to finance a project that is located in a redevelopment project
14336+area, an economic development area, or an urban renewal
14337+project area and that includes, as part of the project, the use
14338+and repurposing of two (2) or more buildings and structures
14339+that are:
14340+(i) at least seventy-five (75) years old; and
14341+(ii) located at a site at which manufacturing previously
14342+occurred over a period of at least seventy-five (75) years; or
14343+(D) twenty-five (25) years, for bonds issued after June 30,
14344+ES 419—LS 6606/DI 120 332
14345+2008, that are not described in clause (B) or (C).
14346+The bond resolution may also state that the bonds are redeemable
14347+before maturity with or without a premium, as determined by the
14348+redevelopment commission.
14349+(d) The redevelopment commission shall certify a copy of the
14350+resolution authorizing the bonds to the municipal or county fiscal
14351+officer, who shall then prepare the bonds, subject to subsections (c) and
14352+(p). The seal of the unit must be impressed on the bonds, or a facsimile
14353+of the seal must be printed on the bonds.
14354+(e) The bonds must be executed by the appropriate officer of the
14355+unit and attested by the municipal or county fiscal officer.
14356+(f) The bonds are exempt from taxation for all purposes.
14357+(g) The municipal or county fiscal officer shall give notice of the
14358+sale of the bonds by publication in accordance with IC 5-3-1. The
14359+municipal fiscal officer, or county fiscal officer or executive, shall sell
14360+the bonds to the highest bidder, but may not sell them for less than
14361+ninety-seven percent (97%) of their par value. However, bonds payable
14362+solely or in part from tax proceeds allocated under section 39(b)(3)
14363+section 39(b)(4) of this chapter, or other revenues of the district may
14364+be sold at a private negotiated sale.
14365+(h) Except as provided in subsection (i), a redevelopment
14366+commission may not issue the bonds when the total issue, including
14367+bonds already issued and to be issued, exceeds two percent (2%) of the
14368+adjusted value of the taxable property in the special taxing district, as
14369+determined under IC 36-1-15.
14370+(i) The bonds are not a corporate obligation of the unit but are an
14371+indebtedness of the taxing district. The bonds and interest are payable,
14372+as set forth in the bond resolution of the redevelopment commission:
14373+(1) from a special tax levied upon all of the property in the taxing
14374+district, as provided by section 27 of this chapter;
14375+(2) from the tax proceeds allocated under section 39(b)(3) section
14376+39(b)(4) of this chapter;
14377+(3) from other revenues available to the redevelopment
14378+commission; or
14379+(4) from a combination of the methods stated in subdivisions (1)
14380+through (3).
14381+If the bonds are payable solely from the tax proceeds allocated under
14382+section 39(b)(3) section 39(b)(4) of this chapter, other revenues of the
14383+redevelopment commission, or any combination of these sources, they
14384+may be issued in any amount not to exceed the maximum amount
14385+approved by the legislative body in the resolution described in
376214386 subsection (c).
3763-(2) "Purchase price" means the consideration paid or to be
3764-paid by the successor in liability to the transferring business
3765-for the transfer of tangible personal property. "Purchase
3766-price" also includes debts assumed or forgiven by the
3767-successor in liability, or real or personal property conveyed or
3768-to be conveyed by the successor in liability to the transferring
3769-business.
3770-(3) "Arm's-length transaction" means a transfer for adequate
3771-consideration between independent parties both acting in
3772-their own best interests. If the parties are related to each
3773-other, a rebuttable presumption arises that the transaction is
3774-not at arm's length.
3775-(4) "Transfer" means every mode, direct or indirect, absolute
3776-or conditional, voluntary or involuntary, of disposing of or
3777-parting with a business or an interest in a business, or a stock
3778-SEA 419 — CC 1 89
3779-of goods, whether by gift or for consideration. "Transfer"
3780-includes a change in the type of business entity or the name of
3781-the business, where one (1) business is discontinued and a new
3782-business is started. "Transfer" also includes the acquisition by
3783-a new corporation of the assets of a prior business in exchange
3784-for the stock of the new corporation. "Transfer" does not
3785-include an assignment for the benefit of creditors, foreclosure
3786-or enforcement of a mortgage, assignment of rents, security
3787-interest or lien, sale or disposition in a bankruptcy
3788-proceeding, or sale or disposition by a receiver.
3789-(5) "Transfer in bulk" means a transfer, other than in the
3790-ordinary course of the transferor's trade or business, of more
3791-than one-half (1/2) of all the tangible personal property of a
3792-business, by value, including inventory, at all locations
3793-combined, as measured by the value of the property at the
3794-time of the transfer.
3795-(6) "Tax" means the gross retail tax imposed by IC 6-2.5-2-1,
3796-the use tax imposed by IC 6-2.5-3-2, and any county
3797-innkeepers tax or food and beverage tax imposed by IC 6-9.
3798-(7) "Good cause" means the inability to comply with the
3799-statutory requirements of this section due to force majeure,
3800-fraud, failure of delivery by a carrier, or similar
3801-circumstances beyond the control of the successor. Lack of
3802-knowledge by the successor in liability of the requirements of
3803-this section shall not be considered good cause. Failure of a
3804-transferee or third party to provide the notice required by
3805-subsection (b) pursuant to a contractual obligation or
3806-informal understanding shall not be considered to be good
3807-cause.
3808-(b) Whenever a business engages in a transfer in bulk, at least
3809-forty-five (45) days before taking possession of the assets or paying
3810-the purchase price, the potential successor in liability or the
3811-transferring business shall notify the department of the transfer
3812-and the terms and conditions related to the transfer on a form
3813-prescribed by the department. The notice must include the tax
3814-identification number of the transferring business and the potential
3815-successor in liability.
3816-(c) The following apply:
3817-(1) If the notice is not provided to the department as required
3818-in subsection (b), the potential successor in liability becomes
3819-the successor in liability and becomes liable for any unpaid
3820-taxes, interest, and penalties due from the transferring
3821-SEA 419 — CC 1 90
3822-business to the extent of the purchase price.
3823-(2) If the notice is provided as required in subsection (b) and,
3824-within twenty (20) days after receipt of the notice, the
3825-department places a summary in the United States mail
3826-addressed to the successor in liability specifying that tax
3827-liabilities exist in addition to those subject to a department
3828-lien or there are tax returns due but not filed, the successor in
3829-liability is liable for all taxes, interest, and penalties as stated
3830-in the department's summary to the extent of the purchase
3831-price if the successor in liability pays the purchase price or
3832-takes possession of the assets without withholding and
3833-remitting the liability to the department. The successor in
3834-liability is liable whether the purchase price is paid or the
3835-assets are transferred prior to or after notification from the
3836-department.
3837-(3) If the department does not find any tax is due from the
3838-transferring business or that the transferring business has
3839-failed to file any returns that are due, the department must
3840-place a tax clearance letter in the United States mail
3841-addressed to the potential successor in liability within twenty
3842-(20) days after receipt of the notice required by subsection (b)
3843-specifying that no tax liabilities exist and that the transferee
3844-is not a successor in liability. The department shall issue the
3845-tax clearance letter even if the department determines that the
3846-transfer at issue does not constitute a transfer in bulk
3847-pursuant to subsection (a).
3848-(d) If, based upon the information available, the department
3849-determines that a transfer in bulk was not at arm's length or was
3850-a gift, the successor's liability under this section equals the value of
3851-the tangible personal property transferred. Upon such a
3852-determination, the department may require that the successor in
3853-liability provide a third party valuation of the tangible personal
3854-property transferred.
3855-(e) In the case of a gift resulting in successor liability under this
3856-section, the return of the gifted property by the donee to the donor
3857-releases the donee's successor liability.
3858-(f) A potential successor in liability that complies with the
3859-requirements of subsections (b) and (c) is not liable for any
3860-assessments of taxes of the transferring business made after the
3861-department provides a summary to the potential successor in
3862-liability under subsection (c), except for taxes assessed on returns
3863-filed to comply with the summary. If the department fails to place
3864-SEA 419 — CC 1 91
3865-the required summary in the United States mail within the twenty
3866-(20) day period, the potential successor in liability is not liable for
3867-any taxes of the transferring business, except with regard to
3868-transfers subject to subsection (d), if the purchase price is paid and
3869-the potential successor in liability takes possession of the assets
3870-within sixty (60) days of the mailing date the notice required
3871-pursuant to subsection (b). If the purchase price is not paid or the
3872-potential successor in liability does not take possession of the assets
3873-within sixty (60) days of the mailing date of the notice required
3874-pursuant to subsection (b), the potential successor in liability or the
3875-transferring business must submit a new notice pursuant to
3876-subsection (b).
3877-(g) If the required notice under subsection (b) is not filed or any
3878-tax liability included in a summary mailed by the department
3879-pursuant to subsection (c)(2) remains due after the purchase price
3880-is paid or the successor in liability takes possession of the assets,
3881-the department must issue a notice of proposed assessment to the
3882-successor in liability for any such tax due.
3883-(h) A successor in liability may protest the underlying tax unless
3884-the transferring business has already exhausted its protest rights
3885-with regard to the underlying tax. A successor in liability may also
3886-protest whether they qualify as a successor in liability with regard
3887-to the tax. In addition, the successor in liability may protest by
3888-submitting evidence showing good cause for not submitting the
3889-required notice or completing the purchase before receiving a
3890-clearance letter from the department. In the event that the
3891-transferring business has protested any taxes identified in the
3892-department's notice mailed pursuant to subsection (c)(2), the
3893-potential successor in liability shall not be considered a successor
3894-in liability with respect to such taxes if the potential successor in
3895-liability places an amount in escrow sufficient to satisfy such taxes
3896-pending resolution of the transferring business's administrative
3897-and legal process protesting such taxes.
3898-(i) A transfer in bulk shall not constitute a retail transaction
3899-except for any inventory, motor vehicles, watercraft, aircraft, or
3900-rental property transferred.
3901-(j) A transferor in bulk and any responsible officer thereof shall
3902-not be relieved of liability for any tax, interest, or penalties when
3903-a successor in interest also becomes liable for the tax, interest, and
3904-penalties. No owner, shareholder, director, officer, or employee of
3905-a successor in liability shall be considered to be a responsible
3906-officer relative to any tax, interest or penalties owed by the
3907-SEA 419 — CC 1 92
3908-purchaser as a successor.
3909-(k) The department has discretion in assessing and collecting the
3910-tax due from any liable party, but the department cannot collect
3911-more than the total tax, interest, and penalties imposed. The ability
3912-of the department to impose collections fees on the liable parties as
3913-otherwise allowed by this article shall not be impacted by this
3914-section.
3915-SECTION 34. IC 6-8.1-10-14 IS ADDED TO THE INDIANA
14387+ES 419—LS 6606/DI 120 333
14388+(j) Proceeds from the sale of bonds may be used to pay the cost of
14389+interest on the bonds for a period not to exceed five (5) years from the
14390+date of issuance.
14391+(k) All laws relating to the giving of notice of the issuance of bonds,
14392+the giving of notice of a hearing on the appropriation of the proceeds
14393+of the bonds, the right of taxpayers to appear and be heard on the
14394+proposed appropriation, and the approval of the appropriation by the
14395+department of local government finance apply to all bonds issued under
14396+this chapter that are payable from the special benefits tax levied
14397+pursuant to section 27 of this chapter or from taxes allocated under
14398+section 39 of this chapter.
14399+(l) All laws relating to:
14400+(1) the filing of petitions requesting the issuance of bonds; and
14401+(2) the right of:
14402+(A) taxpayers and voters to remonstrate against the issuance of
14403+bonds in the case of a proposed bond issue described by
14404+IC 6-1.1-20-3.1(a); or
14405+(B) voters to vote on the issuance of bonds in the case of a
14406+proposed bond issue described by IC 6-1.1-20-3.5(a);
14407+apply to bonds issued under this chapter except for bonds payable
14408+solely from tax proceeds allocated under section 39(b)(3) section
14409+39(b)(4) of this chapter, other revenues of the redevelopment
14410+commission, or any combination of these sources.
14411+(m) If a debt service reserve is created from the proceeds of bonds,
14412+the debt service reserve may be used to pay principal and interest on
14413+the bonds as provided in the bond resolution.
14414+(n) Any amount remaining in the debt service reserve after all of the
14415+bonds of the issue for which the debt service reserve was established
14416+have matured shall be:
14417+(1) deposited in the allocation fund established under section
14418+39(b)(3) section 39(b)(4) of this chapter; and
14419+(2) to the extent permitted by law, transferred to the county or
14420+municipality that established the department of redevelopment for
14421+use in reducing the county's or municipality's property tax levies
14422+for debt service.
14423+(o) If bonds are issued under this chapter that are payable solely or
14424+in part from revenues to the redevelopment commission from a project
14425+or projects, the redevelopment commission may adopt a resolution or
14426+trust indenture or enter into covenants as is customary in the issuance
14427+of revenue bonds. The resolution or trust indenture may pledge or
14428+assign the revenues from the project or projects, but may not convey or
14429+mortgage any project or parts of a project. The resolution or trust
14430+ES 419—LS 6606/DI 120 334
14431+indenture may also contain any provisions for protecting and enforcing
14432+the rights and remedies of the bond owners as may be reasonable and
14433+proper and not in violation of law, including covenants setting forth the
14434+duties of the redevelopment commission. The redevelopment
14435+commission may establish fees and charges for the use of any project
14436+and covenant with the owners of any bonds to set those fees and
14437+charges at a rate sufficient to protect the interest of the owners of the
14438+bonds. Any revenue bonds issued by the redevelopment commission
14439+that are payable solely from revenues of the commission shall contain
14440+a statement to that effect in the form of bond.
14441+(p) If the total principal amount of bonds authorized by a resolution
14442+of the redevelopment commission adopted before July 1, 2008, is equal
14443+to or greater than three million dollars ($3,000,000), the bonds may not
14444+be issued without the approval, by resolution, of the legislative body of
14445+the unit. Bonds authorized in any principal amount by a resolution of
14446+the redevelopment commission adopted after June 30, 2008, may not
14447+be issued without the approval of the legislative body of the unit.
14448+SECTION 99. IC 36-7-14-26, AS AMENDED BY P.L.203-2011,
14449+SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14450+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 26. (a) All proceeds from
14451+the sale of bonds under section 25.1 of this chapter shall be kept as a
14452+separate and specific fund to pay the expenses incurred in connection
14453+with the acquisition and redevelopment of property. The fund shall be
14454+known as the redevelopment district capital fund. Any surplus of funds
14455+remaining after all expenses are paid shall be paid into and become a
14456+part of the redevelopment district bond fund established under section
14457+27 of this chapter.
14458+(b) All gifts or donations that are given or paid to the department of
14459+redevelopment or to the unit for redevelopment purposes shall be
14460+promptly deposited to the credit of the redevelopment district capital
14461+fund. The redevelopment commission may use these gifts and
14462+donations for the purposes of this chapter.
14463+(c) Before the eleventh day of each calendar month the fiscal officer
14464+shall notify the redevelopment commission and the officers of the unit
14465+who have duties in respect to the funds and accounts of the unit of the
14466+amount standing to the credit of the redevelopment district capital fund
14467+at the close of business on the last day of the preceding month.
14468+(d) A redevelopment commission shall deposit in the allocation fund
14469+established under section 39(b)(3) section 39(b)(4) of this chapter of
14470+an allocation area the proceeds from the sale or leasing of property in
14471+the area under section 22 of this chapter if:
14472+(1) there are outstanding bonds that were issued to pay costs of
14473+ES 419—LS 6606/DI 120 335
14474+redevelopment in the allocation area; and
14475+(2) the bonds are payable solely or in part from tax proceeds
14476+allocated under section 39(b)(3) section 39(b)(4) of this chapter.
14477+SECTION 100. IC 36-7-14-27, AS AMENDED BY P.L.149-2014,
14478+SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14479+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 27. (a) This section
14480+applies only to:
14481+(1) bonds that are issued under section 25.1 of this chapter; and
14482+(2) leases entered into under section 25.2 of this chapter;
14483+which are payable from a special tax levied upon all of the property in
14484+the special taxing district. This section does not apply to bonds or
14485+leases that are payable solely from tax proceeds allocated under section
14486+39(b)(3) section 39(b)(4) of this chapter, other revenues of the
14487+redevelopment commission, or any combination of these sources.
14488+(b) The redevelopment commission, with the prior approval of the
14489+legislative body, shall levy each year a special tax on all of the property
14490+of the redevelopment taxing district, in such a manner as to meet and
14491+pay the principal of the bonds as they mature, together with all accruing
14492+interest on the bonds or lease rental payments under section 25.2 of this
14493+chapter. The commission shall cause the tax levied to be certified to the
14494+proper officers as other tax levies are certified, and to the auditor of the
14495+county in which the redevelopment district is located, before the
14496+second day of October in each year. The tax shall be estimated and
14497+entered on the tax duplicate by the county auditor and shall be collected
14498+and enforced by the county treasurer in the same manner as other state
14499+and county taxes are estimated, entered, collected, and enforced. The
14500+amount of the tax levied to pay bonds or lease rentals payable from the
14501+tax levied under this section shall be reduced by any amount available
14502+in the allocation fund established under section 39(b)(3) section
14503+39(b)(4) of this chapter or other revenues of the redevelopment
14504+commission to the extent such revenues have been set aside in the
14505+redevelopment bond fund.
14506+(c) As the tax is collected, it shall be accumulated in a separate fund
14507+to be known as the redevelopment district bond fund and shall be
14508+applied to the payment of the bonds as they mature and the interest on
14509+the bonds as it accrues, or to make lease payments and to no other
14510+purpose. All accumulations of the fund before their use for the payment
14511+of bonds and interest or to make lease payments shall be deposited with
14512+the depository or depositories for other public funds of the unit in
14513+accordance with IC 5-13, unless they are invested under IC 5-13-9.
14514+(d) If there are no outstanding bonds that are payable solely or in
14515+part from tax proceeds allocated under section 39(b)(3) section
14516+ES 419—LS 6606/DI 120 336
14517+39(b)(4) of this chapter and that were issued to pay costs of
14518+redevelopment in an allocation area that is located wholly or in part in
14519+the special taxing district, then all proceeds from the sale or leasing of
14520+property in the allocation area under section 22 of this chapter shall be
14521+paid into the redevelopment district bond fund and become a part of
14522+that fund. In arriving at the tax levy for any year, the redevelopment
14523+commission shall take into account the amount of the proceeds
14524+deposited under this subsection and remaining on hand.
14525+(e) The tax levies provided for in this section are reviewable by
14526+other bodies vested by law with the authority to ascertain that the levies
14527+are sufficient to raise the amount that, with other amounts available, is
14528+sufficient to meet the payments under the lease payable from the levy
14529+of taxes.
14530+SECTION 101. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
14531+SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14532+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As used in this
14533+section:
14534+"Allocation area" means that part of a redevelopment project area
14535+to which an allocation provision of a declaratory resolution adopted
14536+under section 15 of this chapter refers for purposes of distribution and
14537+allocation of property taxes.
14538+"Base assessed value" means, subject to subsection (j), the
14539+following:
14540+(1) If an allocation provision is adopted after June 30, 1995, in a
14541+declaratory resolution or an amendment to a declaratory
14542+resolution establishing an economic development area:
14543+(A) the net assessed value of all the property as finally
14544+determined for the assessment date immediately preceding the
14545+effective date of the allocation provision of the declaratory
14546+resolution, as adjusted under subsection (h); plus
14547+(B) to the extent that it is not included in clause (A), the net
14548+assessed value of property that is assessed as residential
14549+property under the rules of the department of local government
14550+finance, within the allocation area, as finally determined for
14551+the current assessment date.
14552+(2) If an allocation provision is adopted after June 30, 1997, in a
14553+declaratory resolution or an amendment to a declaratory
14554+resolution establishing a redevelopment project area:
14555+(A) the net assessed value of all the property as finally
14556+determined for the assessment date immediately preceding the
14557+effective date of the allocation provision of the declaratory
14558+resolution, as adjusted under subsection (h); plus
14559+ES 419—LS 6606/DI 120 337
14560+(B) to the extent that it is not included in clause (A), the net
14561+assessed value of property that is assessed as residential
14562+property under the rules of the department of local government
14563+finance, as finally determined for the current assessment date.
14564+(3) If:
14565+(A) an allocation provision adopted before June 30, 1995, in
14566+a declaratory resolution or an amendment to a declaratory
14567+resolution establishing a redevelopment project area expires
14568+after June 30, 1997; and
14569+(B) after June 30, 1997, a new allocation provision is included
14570+in an amendment to the declaratory resolution;
14571+the net assessed value of all the property as finally determined for
14572+the assessment date immediately preceding the effective date of
14573+the allocation provision adopted after June 30, 1997, as adjusted
14574+under subsection (h).
14575+(4) Except as provided in subdivision (5), for all other allocation
14576+areas, the net assessed value of all the property as finally
14577+determined for the assessment date immediately preceding the
14578+effective date of the allocation provision of the declaratory
14579+resolution, as adjusted under subsection (h).
14580+(5) If an allocation area established in an economic development
14581+area before July 1, 1995, is expanded after June 30, 1995, the
14582+definition in subdivision (1) applies to the expanded part of the
14583+area added after June 30, 1995.
14584+(6) If an allocation area established in a redevelopment project
14585+area before July 1, 1997, is expanded after June 30, 1997, the
14586+definition in subdivision (2) applies to the expanded part of the
14587+area added after June 30, 1997.
14588+Except as provided in section 39.3 of this chapter, "property taxes"
14589+means taxes imposed under IC 6-1.1 on real property. However, upon
14590+approval by a resolution of the redevelopment commission adopted
14591+before June 1, 1987, "property taxes" also includes taxes imposed
14592+under IC 6-1.1 on depreciable personal property. If a redevelopment
14593+commission adopted before June 1, 1987, a resolution to include within
14594+the definition of property taxes, taxes imposed under IC 6-1.1 on
14595+depreciable personal property that has a useful life in excess of eight
14596+(8) years, the commission may by resolution determine the percentage
14597+of taxes imposed under IC 6-1.1 on all depreciable personal property
14598+that will be included within the definition of property taxes. However,
14599+the percentage included must not exceed twenty-five percent (25%) of
14600+the taxes imposed under IC 6-1.1 on all depreciable personal property.
14601+(b) A declaratory resolution adopted under section 15 of this chapter
14602+ES 419—LS 6606/DI 120 338
14603+on or before the allocation deadline determined under subsection (i)
14604+may include a provision with respect to the allocation and distribution
14605+of property taxes for the purposes and in the manner provided in this
14606+section. A declaratory resolution previously adopted may include an
14607+allocation provision by the amendment of that declaratory resolution on
14608+or before the allocation deadline determined under subsection (i) in
14609+accordance with the procedures required for its original adoption. A
14610+declaratory resolution or amendment that establishes an allocation
14611+provision must include a specific finding of fact, supported by
14612+evidence, that the adoption of the allocation provision will result in
14613+new property taxes in the area that would not have been generated but
14614+for the adoption of the allocation provision. For an allocation area
14615+established before July 1, 1995, the expiration date of any allocation
14616+provisions for the allocation area is June 30, 2025, or the last date of
14617+any obligations that are outstanding on July 1, 2015, whichever is later.
14618+A declaratory resolution or an amendment that establishes an allocation
14619+provision after June 30, 1995, must specify an expiration date for the
14620+allocation provision. For an allocation area established before July 1,
14621+2008, the expiration date may not be more than thirty (30) years after
14622+the date on which the allocation provision is established. For an
14623+allocation area established after June 30, 2008, the expiration date may
14624+not be more than twenty-five (25) years after the date on which the first
14625+obligation was incurred to pay principal and interest on bonds or lease
14626+rentals on leases payable from tax increment revenues. However, with
14627+respect to bonds or other obligations that were issued before July 1,
14628+2008, if any of the bonds or other obligations that were scheduled when
14629+issued to mature before the specified expiration date and that are
14630+payable only from allocated tax proceeds with respect to the allocation
14631+area remain outstanding as of the expiration date, the allocation
14632+provision does not expire until all of the bonds or other obligations are
14633+no longer outstanding. Notwithstanding any other law, in the case of an
14634+allocation area that is established after June 30, 2019, and that is
14635+located in a redevelopment project area described in section
14636+25.1(c)(3)(C) of this chapter, an economic development area described
14637+in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
14638+area described in section 25.1(c)(3)(C) of this chapter, the expiration
14639+date of the allocation provision may not be more than thirty-five (35)
14640+years after the date on which the allocation provision is established.
14641+The allocation provision may apply to all or part of the redevelopment
14642+project area. The allocation provision must require that any property
14643+taxes subsequently levied by or for the benefit of any public body
14644+entitled to a distribution of property taxes on taxable property in the
14645+ES 419—LS 6606/DI 120 339
14646+allocation area be allocated and distributed as follows:
14647+(1) Except as otherwise provided in this section, the proceeds of
14648+the taxes attributable to the lesser of:
14649+(A) the assessed value of the property for the assessment date
14650+with respect to which the allocation and distribution is made;
14651+or
14652+(B) the base assessed value;
14653+shall be allocated to and, when collected, paid into the funds of
14654+the respective taxing units.
14655+(2) This subdivision applies to a fire protection territory
14656+established after December 31, 2022. If a unit becomes a
14657+participating unit of a fire protection territory that is
14658+established after a declaratory resolution is adopted under
14659+section 15 of this chapter, the excess of the proceeds of the
14660+property taxes attributable to an increase in the property tax
14661+rate for the participating unit of a fire protection territory:
14662+(A) except as otherwise provided by this subdivision, shall
14663+be determined as follows:
14664+STEP ONE: Divide the unit's tax rate for fire protection
14665+for the year before the establishment of the fire
14666+protection territory by the participating unit's tax rate
14667+as part of the fire protection territory.
14668+STEP TWO: Subtract the STEP ONE amount from one
14669+(1).
14670+STEP THREE: Multiply the STEP TWO amount by the
14671+allocated property tax attributable to the participating
14672+unit of the fire protection territory; and
14673+(B) to the extent not otherwise included in subdivisions (1)
14674+and (3), the amount determined under STEP THREE of
14675+clause (A) shall be allocated to and distributed in the form
14676+of an assessed value pass back to the participating unit of
14677+the fire protection territory for the assessment date with
14678+respect to which the allocation is made.
14679+However, if the redevelopment commission determines that it
14680+is unable to meet its debt service obligations with regards to
14681+the allocation area without all or part of the assessed value
14682+pass back to the participating unit of a fire protection area
14683+under this subdivision, then the assessed value pass back
14684+under this subdivision shall be reduced by the amount
14685+necessary for the redevelopment commission to meet its debt
14686+service obligations of the allocation area. The calculation
14687+under this subdivision must be made by the redevelopment
14688+ES 419—LS 6606/DI 120 340
14689+commission in collaboration with the county auditor and the
14690+applicable fire protection territory. Any calculation
14691+determined according to clause (A) must be submitted to the
14692+department of local government finance in the manner
14693+prescribed by the department of local government finance.
14694+The department of local government finance shall verify the
14695+accuracy of each calculation.
14696+(2) (3) The excess of the proceeds of the property taxes imposed
14697+for the assessment date with respect to which the allocation and
14698+distribution is made that are attributable to taxes imposed after
14699+being approved by the voters in a referendum or local public
14700+question conducted after April 30, 2010, not otherwise included
14701+in subdivision (1) subdivisions (1) and (2) shall be allocated to
14702+and, when collected, paid into the funds of the taxing unit for
14703+which the referendum or local public question was conducted.
14704+(3) (4) Except as otherwise provided in this section, property tax
14705+proceeds in excess of those described in subdivisions (1), (2), and
14706+(2) (3) shall be allocated to the redevelopment district and, when
14707+collected, paid into an allocation fund for that allocation area that
14708+may be used by the redevelopment district only to do one (1) or
14709+more of the following:
14710+(A) Pay the principal of and interest on any obligations
14711+payable solely from allocated tax proceeds which are incurred
14712+by the redevelopment district for the purpose of financing or
14713+refinancing the redevelopment of that allocation area.
14714+(B) Establish, augment, or restore the debt service reserve for
14715+bonds payable solely or in part from allocated tax proceeds in
14716+that allocation area.
14717+(C) Pay the principal of and interest on bonds payable from
14718+allocated tax proceeds in that allocation area and from the
14719+special tax levied under section 27 of this chapter.
14720+(D) Pay the principal of and interest on bonds issued by the
14721+unit to pay for local public improvements that are physically
14722+located in or physically connected to that allocation area.
14723+(E) Pay premiums on the redemption before maturity of bonds
14724+payable solely or in part from allocated tax proceeds in that
14725+allocation area.
14726+(F) Make payments on leases payable from allocated tax
14727+proceeds in that allocation area under section 25.2 of this
14728+chapter.
14729+(G) Reimburse the unit for expenditures made by it for local
14730+public improvements (which include buildings, parking
14731+ES 419—LS 6606/DI 120 341
14732+facilities, and other items described in section 25.1(a) of this
14733+chapter) that are physically located in or physically connected
14734+to that allocation area.
14735+(H) Reimburse the unit for rentals paid by it for a building or
14736+parking facility that is physically located in or physically
14737+connected to that allocation area under any lease entered into
14738+under IC 36-1-10.
14739+(I) For property taxes first due and payable before January 1,
14740+2009, pay all or a part of a property tax replacement credit to
14741+taxpayers in an allocation area as determined by the
14742+redevelopment commission. This credit equals the amount
14743+determined under the following STEPS for each taxpayer in a
14744+taxing district (as defined in IC 6-1.1-1-20) that contains all or
14745+part of the allocation area:
14746+STEP ONE: Determine that part of the sum of the amounts
14747+under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
14748+IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
14749+IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
14750+the taxing district.
14751+STEP TWO: Divide:
14752+(i) that part of each county's eligible property tax
14753+replacement amount (as defined in IC 6-1.1-21-2 (before its
14754+repeal)) for that year as determined under IC 6-1.1-21-4
14755+(before its repeal) that is attributable to the taxing district;
14756+by
14757+(ii) the STEP ONE sum.
14758+STEP THREE: Multiply:
14759+(i) the STEP TWO quotient; times
14760+(ii) the total amount of the taxpayer's taxes (as defined in
14761+IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
14762+that have been allocated during that year to an allocation
14763+fund under this section.
14764+If not all the taxpayers in an allocation area receive the credit
14765+in full, each taxpayer in the allocation area is entitled to
14766+receive the same proportion of the credit. A taxpayer may not
14767+receive a credit under this section and a credit under section
14768+39.5 of this chapter (before its repeal) in the same year.
14769+(J) Pay expenses incurred by the redevelopment commission
14770+for local public improvements that are in the allocation area or
14771+serving the allocation area. Public improvements include
14772+buildings, parking facilities, and other items described in
14773+section 25.1(a) of this chapter.
14774+ES 419—LS 6606/DI 120 342
14775+(K) Reimburse public and private entities for expenses
14776+incurred in training employees of industrial facilities that are
14777+located:
14778+(i) in the allocation area; and
14779+(ii) on a parcel of real property that has been classified as
14780+industrial property under the rules of the department of local
14781+government finance.
14782+However, the total amount of money spent for this purpose in
14783+any year may not exceed the total amount of money in the
14784+allocation fund that is attributable to property taxes paid by the
14785+industrial facilities described in this clause. The
14786+reimbursements under this clause must be made within three
14787+(3) years after the date on which the investments that are the
14788+basis for the increment financing are made.
14789+(L) Pay the costs of carrying out an eligible efficiency project
14790+(as defined in IC 36-9-41-1.5) within the unit that established
14791+the redevelopment commission. However, property tax
14792+proceeds may be used under this clause to pay the costs of
14793+carrying out an eligible efficiency project only if those
14794+property tax proceeds exceed the amount necessary to do the
14795+following:
14796+(i) Make, when due, any payments required under clauses
14797+(A) through (K), including any payments of principal and
14798+interest on bonds and other obligations payable under this
14799+subdivision, any payments of premiums under this
14800+subdivision on the redemption before maturity of bonds, and
14801+any payments on leases payable under this subdivision.
14802+(ii) Make any reimbursements required under this
14803+subdivision.
14804+(iii) Pay any expenses required under this subdivision.
14805+(iv) Establish, augment, or restore any debt service reserve
14806+under this subdivision.
14807+(M) Expend money and provide financial assistance as
14808+authorized in section 12.2(a)(27) of this chapter.
14809+The allocation fund may not be used for operating expenses of the
14810+commission.
14811+(4) (5) Except as provided in subsection (g), before June 15 of
14812+each year, the commission shall do the following:
14813+(A) Determine the amount, if any, by which the assessed value
14814+of the taxable property in the allocation area for the most
14815+recent assessment date minus the base assessed value, when
14816+multiplied by the estimated tax rate of the allocation area, will
14817+ES 419—LS 6606/DI 120 343
14818+exceed the amount of assessed value needed to produce the
14819+property taxes necessary to make, when due, principal and
14820+interest payments on bonds described in subdivision (3), (4),
14821+plus the amount necessary for other purposes described in
14822+subdivision (3). (4).
14823+(B) Provide a written notice to the county auditor, the fiscal
14824+body of the county or municipality that established the
14825+department of redevelopment, and the officers who are
14826+authorized to fix budgets, tax rates, and tax levies under
14827+IC 6-1.1-17-5 for each of the other taxing units that is wholly
14828+or partly located within the allocation area. The county auditor,
14829+upon receiving the notice, shall forward this notice (in an
14830+electronic format) to the department of local government
14831+finance not later than June 15 of each year. The notice must:
14832+(i) state the amount, if any, of excess assessed value that the
14833+commission has determined may be allocated to the
14834+respective taxing units in the manner prescribed in
14835+subdivision (1); or
14836+(ii) state that the commission has determined that there is no
14837+excess assessed value that may be allocated to the respective
14838+taxing units in the manner prescribed in subdivision (1).
14839+The county auditor shall allocate to the respective taxing units
14840+the amount, if any, of excess assessed value determined by the
14841+commission. The commission may not authorize an allocation
14842+of assessed value to the respective taxing units under this
14843+subdivision if to do so would endanger the interests of the
14844+holders of bonds described in subdivision (3) (4) or lessors
14845+under section 25.3 of this chapter.
14846+(C) If:
14847+(i) the amount of excess assessed value determined by the
14848+commission is expected to generate more than two hundred
14849+percent (200%) of the amount of allocated tax proceeds
14850+necessary to make, when due, principal and interest
14851+payments on bonds described in subdivision (3); (4); plus
14852+(ii) the amount necessary for other purposes described in
14853+subdivision (3); (4);
14854+the commission shall submit to the legislative body of the unit
14855+its determination of the excess assessed value that the
14856+commission proposes to allocate to the respective taxing units
14857+in the manner prescribed in subdivision (1). The legislative
14858+body of the unit may approve the commission's determination
14859+or modify the amount of the excess assessed value that will be
14860+ES 419—LS 6606/DI 120 344
14861+allocated to the respective taxing units in the manner
14862+prescribed in subdivision (1).
14863+(5) (6) Notwithstanding subdivision (4), (5), in the case of an
14864+allocation area that is established after June 30, 2019, and that is
14865+located in a redevelopment project area described in section
14866+25.1(c)(3)(C) of this chapter, an economic development area
14867+described in section 25.1(c)(3)(C) of this chapter, or an urban
14868+renewal project area described in section 25.1(c)(3)(C) of this
14869+chapter, for each year the allocation provision is in effect, if the
14870+amount of excess assessed value determined by the commission
14871+under subdivision (4)(A) (5)(A) is expected to generate more than
14872+two hundred percent (200%) of:
14873+(A) the amount of allocated tax proceeds necessary to make,
14874+when due, principal and interest payments on bonds described
14875+in subdivision (3) (4) for the project; plus
14876+(B) the amount necessary for other purposes described in
14877+subdivision (3) (4) for the project;
14878+the amount of the excess assessed value that generates more than
14879+two hundred percent (200%) of the amounts described in clauses
14880+(A) and (B) shall be allocated to the respective taxing units in the
14881+manner prescribed by subdivision (1).
14882+(c) For the purpose of allocating taxes levied by or for any taxing
14883+unit or units, the assessed value of taxable property in a territory in the
14884+allocation area that is annexed by any taxing unit after the effective
14885+date of the allocation provision of the declaratory resolution is the
14886+lesser of:
14887+(1) the assessed value of the property for the assessment date with
14888+respect to which the allocation and distribution is made; or
14889+(2) the base assessed value.
14890+(d) Property tax proceeds allocable to the redevelopment district
14891+under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),
14892+be irrevocably pledged by the redevelopment district for payment as set
14893+forth in subsection (b)(3). (b)(4).
14894+(e) Notwithstanding any other law, each assessor shall, upon
14895+petition of the redevelopment commission, reassess the taxable
14896+property situated upon or in, or added to, the allocation area, effective
14897+on the next assessment date after the petition.
14898+(f) Notwithstanding any other law, the assessed value of all taxable
14899+property in the allocation area, for purposes of tax limitation, property
14900+tax replacement, and formulation of the budget, tax rate, and tax levy
14901+for each political subdivision in which the property is located is the
14902+lesser of:
14903+ES 419—LS 6606/DI 120 345
14904+(1) the assessed value of the property as valued without regard to
14905+this section; or
14906+(2) the base assessed value.
14907+(g) If any part of the allocation area is located in an enterprise zone
14908+created under IC 5-28-15, the unit that designated the allocation area
14909+shall create funds as specified in this subsection. A unit that has
14910+obligations, bonds, or leases payable from allocated tax proceeds under
14911+subsection (b)(3) (b)(4) shall establish an allocation fund for the
14912+purposes specified in subsection (b)(3) (b)(4) and a special zone fund.
14913+Such a unit shall, until the end of the enterprise zone phase out period,
14914+deposit each year in the special zone fund any amount in the allocation
14915+fund derived from property tax proceeds in excess of those described
14916+in subsection (b)(1), and (b)(2), and (b)(3) from property located in the
14917+enterprise zone that exceeds the amount sufficient for the purposes
14918+specified in subsection (b)(3) (b)(4) for the year. The amount sufficient
14919+for purposes specified in subsection (b)(3) (b)(4) for the year shall be
14920+determined based on the pro rata portion of such current property tax
14921+proceeds from the part of the enterprise zone that is within the
14922+allocation area as compared to all such current property tax proceeds
14923+derived from the allocation area. A unit that has no obligations, bonds,
14924+or leases payable from allocated tax proceeds under subsection (b)(3)
14925+(b)(4) shall establish a special zone fund and deposit all the property
14926+tax proceeds in excess of those described in subsection (b)(1), and
14927+(b)(2), and (b)(3) in the fund derived from property tax proceeds in
14928+excess of those described in subsection (b)(1), and (b)(2), and (b)(3)
14929+from property located in the enterprise zone. The unit that creates the
14930+special zone fund shall use the fund (based on the recommendations of
14931+the urban enterprise association) for programs in job training, job
14932+enrichment, and basic skill development that are designed to benefit
14933+residents and employers in the enterprise zone or other purposes
14934+specified in subsection (b)(3), (b)(4), except that where reference is
14935+made in subsection (b)(3) (b)(4) to allocation area it shall refer for
14936+purposes of payments from the special zone fund only to that part of the
14937+allocation area that is also located in the enterprise zone. Those
14938+programs shall reserve at least one-half (1/2) of their enrollment in any
14939+session for residents of the enterprise zone.
14940+(h) The state board of accounts and department of local government
14941+finance shall make the rules and prescribe the forms and procedures
14942+that they consider expedient for the implementation of this chapter.
14943+After each reassessment in an area under a reassessment plan prepared
14944+under IC 6-1.1-4-4.2, the department of local government finance shall
14945+adjust the base assessed value one (1) time to neutralize any effect of
14946+ES 419—LS 6606/DI 120 346
14947+the reassessment of the real property in the area on the property tax
14948+proceeds allocated to the redevelopment district under this section.
14949+After each annual adjustment under IC 6-1.1-4-4.5, the department of
14950+local government finance shall adjust the base assessed value one (1)
14951+time to neutralize any effect of the annual adjustment on the property
14952+tax proceeds allocated to the redevelopment district under this section.
14953+However, the adjustments under this subsection:
14954+(1) may not include the effect of phasing in assessed value due to
14955+property tax abatements under IC 6-1.1-12.1;
14956+(2) may not produce less property tax proceeds allocable to the
14957+redevelopment district under subsection (b)(3) (b)(4) than would
14958+otherwise have been received if the reassessment under the
14959+reassessment plan or the annual adjustment had not occurred; and
14960+(3) may decrease base assessed value only to the extent that
14961+assessed values in the allocation area have been decreased due to
14962+annual adjustments or the reassessment under the reassessment
14963+plan.
14964+Assessed value increases attributable to the application of an abatement
14965+schedule under IC 6-1.1-12.1 may not be included in the base assessed
14966+value of an allocation area. The department of local government
14967+finance may prescribe procedures for county and township officials to
14968+follow to assist the department in making the adjustments.
14969+(i) The allocation deadline referred to in subsection (b) is
14970+determined in the following manner:
14971+(1) The initial allocation deadline is December 31, 2011.
14972+(2) Subject to subdivision (3), the initial allocation deadline and
14973+subsequent allocation deadlines are automatically extended in
14974+increments of five (5) years, so that allocation deadlines
14975+subsequent to the initial allocation deadline fall on December 31,
14976+2016, and December 31 of each fifth year thereafter.
14977+(3) At least one (1) year before the date of an allocation deadline
14978+determined under subdivision (2), the general assembly may enact
14979+a law that:
14980+(A) terminates the automatic extension of allocation deadlines
14981+under subdivision (2); and
14982+(B) specifically designates a particular date as the final
14983+allocation deadline.
14984+(j) If a redevelopment commission adopts a declaratory resolution
14985+or an amendment to a declaratory resolution that contains an allocation
14986+provision and the redevelopment commission makes either of the
14987+filings required under section 17(e) of this chapter after the first
14988+anniversary of the effective date of the allocation provision, the auditor
14989+ES 419—LS 6606/DI 120 347
14990+of the county in which the unit is located shall compute the base
14991+assessed value for the allocation area using the assessment date
14992+immediately preceding the later of:
14993+(1) the date on which the documents are filed with the county
14994+auditor; or
14995+(2) the date on which the documents are filed with the department
14996+of local government finance.
14997+(k) For an allocation area established after June 30, 2024,
14998+"residential property" refers to the assessed value of property that is
14999+allocated to the one percent (1%) homestead land and improvement
15000+categories in the county tax and billing software system, along with the
15001+residential assessed value as defined for purposes of calculating the
15002+rate for the local income tax property tax relief credit designated for
15003+residential property under IC 6-3.6-5-6(d)(3).
15004+SECTION 102. IC 36-7-14-48, AS AMENDED BY P.L.38-2021,
15005+SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15006+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 48. (a) Notwithstanding
15007+section 39(a) of this chapter, with respect to the allocation and
15008+distribution of property taxes for the accomplishment of a program
15009+adopted under section 45 of this chapter, "base assessed value" means,
15010+subject to section 39(j) of this chapter, the net assessed value of all of
15011+the property, other than personal property, as finally determined for the
15012+assessment date immediately preceding the effective date of the
15013+allocation provision, as adjusted under section 39(h) of this chapter.
15014+(b) The allocation fund established under section 39(b) of this
15015+chapter for the allocation area for a program adopted under section 45
15016+of this chapter may be used only for purposes related to the
15017+accomplishment of the program, including the following:
15018+(1) The construction, rehabilitation, or repair of residential units
15019+within the allocation area.
15020+(2) The construction, reconstruction, or repair of any
15021+infrastructure (including streets, sidewalks, and sewers) within or
15022+serving the allocation area.
15023+(3) The acquisition of real property and interests in real property
15024+within the allocation area.
15025+(4) The demolition of real property within the allocation area.
15026+(5) The provision of financial assistance to enable individuals and
15027+families to purchase or lease residential units within the allocation
15028+area. However, financial assistance may be provided only to those
15029+individuals and families whose income is at or below the county's
15030+median income for individuals and families, respectively.
15031+(6) The provision of financial assistance to neighborhood
15032+ES 419—LS 6606/DI 120 348
15033+development corporations to permit them to provide financial
15034+assistance for the purposes described in subdivision (5).
15035+(7) For property taxes first due and payable before January 1,
15036+2009, providing each taxpayer in the allocation area a credit for
15037+property tax replacement as determined under subsections (c) and
15038+(d). However, the commission may provide this credit only if the
15039+municipal legislative body (in the case of a redevelopment
15040+commission established by a municipality) or the county
15041+executive (in the case of a redevelopment commission established
15042+by a county) establishes the credit by ordinance adopted in the
15043+year before the year in which the credit is provided.
15044+(c) The maximum credit that may be provided under subsection
15045+(b)(7) to a taxpayer in a taxing district that contains all or part of an
15046+allocation area established for a program adopted under section 45 of
15047+this chapter shall be determined as follows:
15048+STEP ONE: Determine that part of the sum of the amounts
15049+described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
15050+through IC 6-1.1-21-2(g)(5) (before their repeal) that is
15051+attributable to the taxing district.
15052+STEP TWO: Divide:
15053+(A) that part of each county's eligible property tax replacement
15054+amount (as defined in IC 6-1.1-21-2) (before its repeal) for
15055+that year as determined under IC 6-1.1-21-4(a)(1) (before its
15056+repeal) that is attributable to the taxing district; by
15057+(B) the amount determined under STEP ONE.
15058+STEP THREE: Multiply:
15059+(A) the STEP TWO quotient; by
15060+(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
15061+its repeal) levied in the taxing district allocated to the
15062+allocation fund, including the amount that would have been
15063+allocated but for the credit.
15064+(d) The commission may determine to grant to taxpayers in an
15065+allocation area from its allocation fund a credit under this section, as
15066+calculated under subsection (c). Except as provided in subsection (g),
15067+one-half (1/2) of the credit shall be applied to each installment of taxes
15068+(as defined in IC 6-1.1-21-2) (before its repeal) that under
15069+IC 6-1.1-22-9 are due and payable in a year. The commission must
15070+provide for the credit annually by a resolution and must find in the
15071+resolution the following:
15072+(1) That the money to be collected and deposited in the allocation
15073+fund, based upon historical collection rates, after granting the
15074+credit will equal the amounts payable for contractual obligations
15075+ES 419—LS 6606/DI 120 349
15076+from the fund, plus ten percent (10%) of those amounts.
15077+(2) If bonds payable from the fund are outstanding, that there is
15078+a debt service reserve for the bonds that at least equals the amount
15079+of the credit to be granted.
15080+(3) If bonds of a lessor under section 25.2 of this chapter or under
15081+IC 36-1-10 are outstanding and if lease rentals are payable from
15082+the fund, that there is a debt service reserve for those bonds that
15083+at least equals the amount of the credit to be granted.
15084+If the tax increment is insufficient to grant the credit in full, the
15085+commission may grant the credit in part, prorated among all taxpayers.
15086+(e) Notwithstanding section 39(b) of this chapter, the allocation
15087+fund established under section 39(b) of this chapter for the allocation
15088+area for a program adopted under section 45 of this chapter may only
15089+be used to do one (1) or more of the following:
15090+(1) Accomplish one (1) or more of the actions set forth in section
15091+39(b)(3)(A) 39(b)(4)(A) through 39(b)(3)(H) 39(b)(4)(H) and
15092+39(b)(3)(J) 39(b)(4)(J) of this chapter for property that is
15093+residential in nature.
15094+(2) Reimburse the county or municipality for expenditures made
15095+by the county or municipality in order to accomplish the housing
15096+program in that allocation area.
15097+The allocation fund may not be used for operating expenses of the
15098+commission.
15099+(f) Notwithstanding section 39(b) of this chapter, the commission
15100+shall, relative to the allocation fund established under section 39(b) of
15101+this chapter for an allocation area for a program adopted under section
15102+45 of this chapter, do the following before June 15 of each year:
15103+(1) Determine the amount, if any, by which the assessed value of
15104+the taxable property in the allocation area for the most recent
15105+assessment date minus the base assessed value, when multiplied
15106+by the estimated tax rate of the allocation area, will exceed the
15107+amount of assessed value needed to produce the property taxes
15108+necessary to:
15109+(A) make the distribution required under section 39(b)(2) and
15110+39(b)(3) of this chapter;
15111+(B) make, when due, principal and interest payments on bonds
15112+described in section 39(b)(3) 39(b)(4) of this chapter;
15113+(C) pay the amount necessary for other purposes described in
15114+section 39(b)(3) 39(b)(4) of this chapter; and
15115+(D) reimburse the county or municipality for anticipated
15116+expenditures described in subsection (e)(2).
15117+(2) Provide a written notice to the county auditor, the fiscal body
15118+ES 419—LS 6606/DI 120 350
15119+of the county or municipality that established the department of
15120+redevelopment, and the officers who are authorized to fix budgets,
15121+tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
15122+taxing units that is wholly or partly located within the allocation
15123+area. The county auditor, upon receiving the notice, shall forward
15124+this notice (in an electronic format) to the department of local
15125+government finance not later than June 15 of each year. The
15126+notice must:
15127+(A) state the amount, if any, of excess property taxes that the
15128+commission has determined may be paid to the respective
15129+taxing units in the manner prescribed in section 39(b)(1) of
15130+this chapter; or
15131+(B) state that the commission has determined that there is no
15132+excess assessed value that may be allocated to the respective
15133+taxing units in the manner prescribed in subdivision (1).
15134+The county auditor shall allocate to the respective taxing units the
15135+amount, if any, of excess assessed value determined by the
15136+commission.
15137+(3) If:
15138+(A) the amount of excess assessed value determined by the
15139+commission is expected to generate more than two hundred
15140+percent (200%) of the amount of allocated tax proceeds
15141+necessary to make, when due, principal and interest payments
15142+on bonds described in subdivision (1); plus
15143+(B) the amount necessary for other purposes described in
15144+subdivision (1);
15145+the commission shall submit to the legislative body of the unit its
15146+determination of the excess assessed value that the commission
15147+proposes to allocate to the respective taxing units in the manner
15148+prescribed in subdivision (2). The legislative body of the unit may
15149+approve the commission's determination or modify the amount of
15150+the excess assessed value that will be allocated to the respective
15151+taxing units in the manner prescribed in subdivision (2).
15152+(g) This subsection applies to an allocation area only to the extent
15153+that the net assessed value of property that is assessed as residential
15154+property under the rules of the department of local government finance
15155+is not included in the base assessed value. If property tax installments
15156+with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
15157+installments established by the department of local government finance
15158+under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
15159+allocation area is entitled to an additional credit under subsection (d)
15160+for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
15161+ES 419—LS 6606/DI 120 351
15162+installments. The credit shall be applied in the same proportion to each
15163+installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
15164+SECTION 103. IC 36-7-14-52, AS AMENDED BY P.L.38-2021,
15165+SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15166+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 52. (a) Notwithstanding
15167+section 39(a) of this chapter, with respect to the allocation and
15168+distribution of property taxes for the accomplishment of the purposes
15169+of an age-restricted housing program adopted under section 49 of this
15170+chapter, "base assessed value" means, subject to section 39(j) of this
15171+chapter, the net assessed value of all of the property, other than
15172+personal property, as finally determined for the assessment date
15173+immediately preceding the effective date of the allocation provision, as
15174+adjusted under section 39(h) of this chapter.
15175+(b) The allocation fund established under section 39(b) of this
15176+chapter for the allocation area for an age-restricted housing program
15177+adopted under section 49 of this chapter may be used only for purposes
15178+related to the accomplishment of the purposes of the program,
15179+including, but not limited to, the following:
15180+(1) The construction of any infrastructure (including streets,
15181+sidewalks, and sewers) or local public improvements in, serving,
15182+or benefiting the allocation area.
15183+(2) The acquisition of real property and interests in real property
15184+within the allocation area.
15185+(3) The preparation of real property in anticipation of
15186+development of the real property within the allocation area.
15187+(4) To do any of the following:
15188+(A) Pay the principal of and interest on bonds or any other
15189+obligations payable from allocated tax proceeds in the
15190+allocation area that are incurred by the redevelopment district
15191+for the purpose of financing or refinancing the age-restricted
15192+housing program established under section 49 of this chapter
15193+for the allocation area.
15194+(B) Establish, augment, or restore the debt service reserve for
15195+bonds payable solely or in part from allocated tax proceeds in
15196+the allocation area.
15197+(C) Pay the principal of and interest on bonds payable from
15198+allocated tax proceeds in the allocation area and from the
15199+special tax levied under section 27 of this chapter.
15200+(D) Pay the principal of and interest on bonds issued by the
15201+unit to pay for local public improvements that are physically
15202+located in or physically connected to the allocation area.
15203+(E) Pay premiums on the redemption before maturity of bonds
15204+ES 419—LS 6606/DI 120 352
15205+payable solely or in part from allocated tax proceeds in the
15206+allocation area.
15207+(F) Make payments on leases payable from allocated tax
15208+proceeds in the allocation area under section 25.2 of this
15209+chapter.
15210+(G) Reimburse the unit for expenditures made by the unit for
15211+local public improvements (which include buildings, parking
15212+facilities, and other items described in section 25.1(a) of this
15213+chapter) that are physically located in or physically connected
15214+to the allocation area.
15215+(c) Notwithstanding section 39(b) of this chapter, the commission
15216+shall, relative to the allocation fund established under section 39(b) of
15217+this chapter for an allocation area for an age-restricted housing program
15218+adopted under section 49 of this chapter, do the following before June
15219+15 of each year:
15220+(1) Determine the amount, if any, by which the assessed value of
15221+the taxable property in the allocation area for the most recent
15222+assessment date minus the base assessed value, when multiplied
15223+by the estimated tax rate of the allocation area, will exceed the
15224+amount of assessed value needed to produce the property taxes
15225+necessary to:
15226+(A) make the distribution required under section 39(b)(2) and
15227+39(b)(3) of this chapter;
15228+(B) make, when due, principal and interest payments on bonds
15229+described in section 39(b)(3) 39(b)(4) of this chapter;
15230+(C) pay the amount necessary for other purposes described in
15231+section 39(b)(3) 39(b)(4) of this chapter; and
15232+(D) reimburse the county or municipality for anticipated
15233+expenditures described in subsection (b)(2).
15234+(2) Provide a written notice to the county auditor, the fiscal body
15235+of the county or municipality that established the department of
15236+redevelopment, and the officers who are authorized to fix budgets,
15237+tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
15238+taxing units that is wholly or partly located within the allocation
15239+area. The county auditor, upon receiving the notice, shall forward
15240+this notice (in an electronic format) to the department of local
15241+government finance not later than June 15 of each year. The
15242+notice must:
15243+(A) state the amount, if any, of excess property taxes that the
15244+commission has determined may be paid to the respective
15245+taxing units in the manner prescribed in section 39(b)(1) of
15246+this chapter; or
15247+ES 419—LS 6606/DI 120 353
15248+(B) state that the commission has determined that there is no
15249+excess assessed value that may be allocated to the respective
15250+taxing units in the manner prescribed in subdivision (1).
15251+The county auditor shall allocate to the respective taxing units the
15252+amount, if any, of excess assessed value determined by the
15253+commission.
15254+SECTION 104. IC 36-7-14-56, AS ADDED BY P.L.235-2019,
15255+SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15256+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 56. (a) This section
15257+applies only to a residential housing development program authorized
15258+by section 53 of this chapter.
15259+(b) Notwithstanding section 39(a) of this chapter, with respect to the
15260+allocation and distribution of property taxes for the accomplishment of
15261+the purposes of a residential housing development program adopted
15262+under section 53 of this chapter, "base assessed value" means the net
15263+assessed value of all of the property, other than personal property, as
15264+finally determined for the assessment date immediately preceding the
15265+effective date of the allocation provision, as adjusted under section
15266+39(h) of this chapter.
15267+(c) The allocation fund established under section 39(b) of this
15268+chapter for the allocation area for a residential housing development
15269+program adopted under section 53 of this chapter may be used only for
15270+purposes related to the accomplishment of the purposes of the program,
15271+including, but not limited to, the following:
15272+(1) The construction of any infrastructure (including streets,
15273+roads, and sidewalks) or local public improvements in, serving,
15274+or benefiting a residential housing development project.
15275+(2) The acquisition of real property and interests in real property
15276+for rehabilitation purposes within the allocation area.
15277+(3) The preparation of real property in anticipation of
15278+development of the real property within the allocation area.
15279+(4) To do any of the following:
15280+(A) Pay the principal of and interest on bonds or any other
15281+obligations payable from allocated tax proceeds in the
15282+allocation area that are incurred by the redevelopment district
15283+for the purpose of financing or refinancing the residential
15284+housing development program established under section 53 of
15285+this chapter for the allocation area.
15286+(B) Establish, augment, or restore the debt service reserve for
15287+bonds payable solely or in part from allocated tax proceeds in
15288+the allocation area.
15289+(C) Pay the principal of and interest on bonds payable from
15290+ES 419—LS 6606/DI 120 354
15291+allocated tax proceeds in the allocation area and from the
15292+special tax levied under section 27 of this chapter.
15293+(D) Pay the principal of and interest on bonds issued by the
15294+unit to pay for local public improvements that are physically
15295+located in or physically connected to the allocation area.
15296+(E) Pay premiums on the redemption before maturity of bonds
15297+payable solely or in part from allocated tax proceeds in the
15298+allocation area.
15299+(F) Make payments on leases payable from allocated tax
15300+proceeds in the allocation area under section 25.2 of this
15301+chapter.
15302+(G) Reimburse the unit for expenditures made by the unit for
15303+local public improvements (which include buildings, parking
15304+facilities, and other items described in section 25.1(a) of this
15305+chapter) that are physically located in or physically connected
15306+to the allocation area.
15307+(d) Notwithstanding section 39(b) of this chapter, the commission
15308+shall, relative to the allocation fund established under section 39(b) of
15309+this chapter for an allocation area for a residential housing
15310+development program adopted under section 53 of this chapter, do the
15311+following before June 15 of each year:
15312+(1) Determine the amount, if any, by which the assessed value of
15313+the taxable property in the allocation area for the most recent
15314+assessment date minus the base assessed value, when multiplied
15315+by the estimated tax rate of the allocation area, will exceed the
15316+amount of assessed value needed to produce the property taxes
15317+necessary to:
15318+(A) make the distribution required under section 39(b)(2) and
15319+39(b)(3) of this chapter;
15320+(B) make, when due, principal and interest payments on bonds
15321+described in section 39(b)(3) 39(b)(4) of this chapter;
15322+(C) pay the amount necessary for other purposes described in
15323+section 39(b)(3) 39(b)(4) of this chapter; and
15324+(D) reimburse the county or municipality for anticipated
15325+expenditures described in subsection (c)(2).
15326+(2) Provide a written notice to the county auditor, the fiscal body
15327+of the county or municipality that established the department of
15328+redevelopment, the officers who are authorized to fix budgets, tax
15329+rates, and tax levies under IC 6-1.1-17-5 for each of the other
15330+taxing units that are wholly or partly located within the allocation
15331+area, and (in an electronic format) the department of local
15332+government finance. The notice must:
15333+ES 419—LS 6606/DI 120 355
15334+(A) state the amount, if any, of excess property taxes that the
15335+commission has determined may be paid to the respective
15336+taxing units in the manner prescribed in section 39(b)(1) of
15337+this chapter; or
15338+(B) state that the commission has determined that there is no
15339+excess assessed value that may be allocated to the respective
15340+taxing units in the manner prescribed in subdivision (1).
15341+The county auditor shall allocate to the respective taxing units the
15342+amount, if any, of excess assessed value determined by the
15343+commission.
15344+(e) If the amount of excess assessed value determined by the
15345+commission is expected to generate more than two hundred percent
15346+(200%) of the amount of allocated tax proceeds:
15347+(1) necessary to make, when due, principal and interest payments
15348+on bonds described in 39(b)(3) section 39(b)(4) of this chapter;
15349+plus
15350+(2) the amount necessary for other purposes described in 39(b)(3)
15351+section 39(b)(4) of this chapter;
15352+the commission shall submit to the county or municipal legislative
15353+body its determination of the excess assessed value that the
15354+commission proposes to allocate to the respective taxing units in the
15355+manner prescribed in subsection (d)(2). The county or municipal
15356+legislative body may approve the commission's determination or
15357+modify the amount of the excess assessed value that will be allocated
15358+to the respective taxing units in the manner prescribed in subsection
15359+(d)(2).
15360+(f) An allocation area must terminate on the date the residential
15361+housing development program is terminated as set forth in section
15362+53(e) of this chapter.
15363+SECTION 105. IC 36-7-14.5-12.5, AS AMENDED BY
15364+P.L.242-2015, SECTION 43, IS AMENDED TO READ AS
15365+FOLLOWS [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]:
15366+Sec. 12.5. (a) This section applies only to an authority in a county
15367+having a United States government military base that is scheduled for
15368+closing or is completely or partially inactive or closed.
15369+(b) In order to accomplish the purposes set forth in section 11 of this
15370+chapter, an authority may create an economic development area:
15371+(1) by following the procedures set forth in IC 36-7-14-41 for the
15372+establishment of an economic development area by a
15373+redevelopment commission; and
15374+(2) with the same effect as if the economic development area was
15375+created by a redevelopment commission.
15376+ES 419—LS 6606/DI 120 356
15377+The area established under this section shall be established only in the
15378+area where a United States government military base that is scheduled
15379+for closing or is completely or partially inactive or closed is or was
15380+located.
15381+(c) In order to accomplish the purposes set forth in section 11 of this
15382+chapter, an authority may do the following in a manner that serves an
15383+economic development area created under this section:
15384+(1) Acquire by purchase, exchange, gift, grant, condemnation, or
15385+lease, or any combination of methods, any personal property or
15386+interest in real property needed for the redevelopment of
15387+economic development areas located within the corporate
15388+boundaries of the unit.
15389+(2) Hold, use, sell (by conveyance by deed, land sale contract, or
15390+other instrument), exchange, lease, rent, or otherwise dispose of
15391+property acquired for use in the redevelopment of economic
15392+development areas on the terms and conditions that the authority
15393+considers best for the unit and the unit's inhabitants.
15394+(3) Sell, lease, or grant interests in all or part of the real property
15395+acquired for redevelopment purposes to any other department of
15396+the unit or to any other governmental agency for public ways,
15397+levees, sewerage, parks, playgrounds, schools, and other public
15398+purposes on any terms that may be agreed on.
15399+(4) Clear real property acquired for redevelopment purposes.
15400+(5) Repair and maintain structures acquired for redevelopment
15401+purposes.
15402+(6) Remodel, rebuild, enlarge, or make major structural
15403+improvements on structures acquired for redevelopment purposes.
15404+(7) Survey or examine any land to determine whether the land
15405+should be included within an economic development area to be
15406+acquired for redevelopment purposes and to determine the value
15407+of that land.
15408+(8) Appear before any other department or agency of the unit, or
15409+before any other governmental agency in respect to any matter
15410+affecting:
15411+(A) real property acquired or being acquired for
15412+redevelopment purposes; or
15413+(B) any economic development area within the jurisdiction of
15414+the authority.
15415+(9) Institute or defend in the name of the unit any civil action, but
15416+all actions against the authority must be brought in the circuit or
15417+superior court of the county where the authority is located.
15418+(10) Use any legal or equitable remedy that is necessary or
15419+ES 419—LS 6606/DI 120 357
15420+considered proper to protect and enforce the rights of and perform
15421+the duties of the authority.
15422+(11) Exercise the power of eminent domain in the name of and
15423+within the corporate boundaries of the unit subject to the same
15424+conditions and procedures that apply to the exercise of the power
15425+of eminent domain by a redevelopment commission under
15426+IC 36-7-14.
15427+(12) Appoint an executive director, appraisers, real estate experts,
15428+engineers, architects, surveyors, and attorneys.
15429+(13) Appoint clerks, guards, laborers, and other employees the
15430+authority considers advisable, except that those appointments
15431+must be made in accordance with the merit system of the unit if
15432+such a system exists.
15433+(14) Prescribe the duties and regulate the compensation of
15434+employees of the authority.
15435+(15) Provide a pension and retirement system for employees of
15436+the authority by using the public employees' retirement fund or a
15437+retirement plan approved by the United States Department of
15438+Housing and Urban Development.
15439+(16) Discharge and appoint successors to employees of the
15440+authority subject to subdivision (13).
15441+(17) Rent offices for use of the department or authority, or accept
15442+the use of offices furnished by the unit.
15443+(18) Equip the offices of the authority with the necessary
15444+furniture, furnishings, equipment, records, and supplies.
15445+(19) Design, order, contract for, and construct, reconstruct,
15446+improve, or renovate the following:
15447+(A) Any local public improvement or structure that is
15448+necessary for redevelopment purposes or economic
15449+development within the corporate boundaries of the unit.
15450+(B) Any structure that enhances development or economic
15451+development.
15452+(20) Contract for the construction, extension, or improvement of
15453+pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
15454+(21) Accept loans, grants, and other forms of financial assistance
15455+from, or contract with, the federal government, the state
15456+government, a municipal corporation, a special taxing district, a
15457+foundation, or any other source.
15458+(22) Make and enter into all contracts and agreements necessary
15459+or incidental to the performance of the duties of the authority and
15460+the execution of the powers of the authority under this chapter.
15461+(23) Take any action necessary to implement the purpose of the
15462+ES 419—LS 6606/DI 120 358
15463+authority.
15464+(24) Provide financial assistance, in the manner that best serves
15465+the purposes set forth in section 11 of this chapter, including
15466+grants and loans, to enable private enterprise to develop,
15467+redevelop, and reuse military base property or otherwise enable
15468+private enterprise to provide social and economic benefits to the
15469+citizens of the unit.
15470+(d) An authority may designate all or a portion of an economic
15471+development area created under this section as an allocation area by
15472+following the procedures set forth in IC 36-7-14-39 for the
15473+establishment of an allocation area by a redevelopment commission.
15474+The allocation provision may modify the definition of "property taxes"
15475+under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
15476+depreciable personal property located and taxable on the site of
15477+operations of designated taxpayers in accordance with the procedures
15478+applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
15479+applies to such a modification. An allocation area established by an
15480+authority under this section is a special taxing district authorized by the
15481+general assembly to enable the unit to provide special benefits to
15482+taxpayers in the allocation area by promoting economic development
15483+that is of public use and benefit. For allocation areas established for an
15484+economic development area created under this section after June 30,
15485+1997, and to the expanded portion of an allocation area for an
15486+economic development area that was established before June 30, 1997,
15487+and that is expanded under this section after June 30, 1997, the net
15488+assessed value of property that is assessed as residential property under
15489+the rules of the department of local government finance, as finally
15490+determined for any assessment date, must be allocated. All of the
15491+provisions of IC 36-7-14-39 apply to an allocation area created under
15492+this section, except that the authority shall be vested with the rights and
15493+duties of a commission as referenced in those sections, except that the
15494+expiration date of any allocation provision for the allocation area is the
15495+later of July 1, 2016, or the expiration date determined under
15496+IC 36-7-14-39(b), and except that, notwithstanding
15497+IC 36-7-14-39(b)(3), IC 36-7-14-39(b)(4), property tax proceeds paid
15498+into the allocation fund may be used by the authority only to do one (1)
15499+or more of the following:
15500+(1) Pay the principal of and interest and redemption premium on
15501+any obligations incurred by the special taxing district or any other
15502+entity for the purpose of financing or refinancing military base
15503+reuse activities in or serving or benefiting that allocation area.
15504+(2) Establish, augment, or restore the debt service reserve for
15505+ES 419—LS 6606/DI 120 359
15506+obligations payable solely or in part from allocated tax proceeds
15507+in that allocation area or from other revenues of the authority
15508+(including lease rental revenues).
15509+(3) Make payments on leases payable solely or in part from
15510+allocated tax proceeds in that allocation area.
15511+(4) Reimburse any other governmental body for expenditures
15512+made by it that benefits or provides for local public improvements
15513+or structures in or serving or benefiting that allocation area.
15514+(5) Pay expenses incurred by the authority that benefit or provide
15515+for local public improvements or structures that are in the
15516+allocation area or serving or benefiting the allocation area.
15517+(6) Reimburse public and private entities for expenses incurred in
15518+training employees of industrial facilities that are located:
15519+(A) in the allocation area; and
15520+(B) on a parcel of real property that has been classified as
15521+industrial property under the rules of the department of local
15522+government finance.
15523+However, the total amount of money spent for this purpose in any
15524+year may not exceed the total amount of money in the allocation
15525+fund that is attributable to property taxes paid by the industrial
15526+facilities described in clause (B). The reimbursements under this
15527+subdivision must be made within three (3) years after the date on
15528+which the investments that are the basis for the increment
15529+financing are made.
15530+(e) In addition to other methods of raising money for property
15531+acquisition, redevelopment, or economic development activities in or
15532+directly serving or benefiting an economic development area created
15533+by an authority under this section, and in anticipation of the taxes
15534+allocated under subsection (d), other revenues of the authority, or any
15535+combination of these sources, the authority may, by resolution, issue
15536+the bonds of the special taxing district in the name of the unit. Bonds
15537+issued under this section may be issued in any amount without
15538+limitation. The following apply if such a resolution is adopted:
15539+(1) The authority shall certify a copy of the resolution authorizing
15540+the bonds to the municipal or county fiscal officer, who shall then
15541+prepare the bonds. The seal of the unit must be impressed on the
15542+bonds, or a facsimile of the seal must be printed on the bonds.
15543+(2) The bonds must be executed by the appropriate officer of the
15544+unit and attested by the unit's fiscal officer.
15545+(3) The bonds are exempt from taxation for all purposes.
15546+(4) Bonds issued under this section may be sold at public sale in
15547+accordance with IC 5-1-11 or at a negotiated sale.
15548+ES 419—LS 6606/DI 120 360
15549+(5) The bonds are not a corporate obligation of the unit but are an
15550+indebtedness of the taxing district. The bonds and interest are
15551+payable, as set forth in the bond resolution of the authority:
15552+(A) from the tax proceeds allocated under subsection (d);
15553+(B) from other revenues available to the authority; or
15554+(C) from a combination of the methods stated in clauses (A)
15555+and (B).
15556+(6) Proceeds from the sale of bonds may be used to pay the cost
15557+of interest on the bonds for a period not to exceed five (5) years
15558+from the date of issuance.
15559+(7) Laws relating to the filing of petitions requesting the issuance
15560+of bonds and the right of taxpayers and voters to remonstrate
15561+against the issuance of bonds do not apply to bonds issued under
15562+this section.
15563+(8) If a debt service reserve is created from the proceeds of bonds,
15564+the debt service reserve may be used to pay principal and interest
15565+on the bonds as provided in the bond resolution.
15566+(9) If bonds are issued under this chapter that are payable solely
15567+or in part from revenues to the authority from a project or
15568+projects, the authority may adopt a resolution or trust indenture or
15569+enter into covenants as is customary in the issuance of revenue
15570+bonds. The resolution or trust indenture may pledge or assign the
15571+revenues from the project or projects. The resolution or trust
15572+indenture may also contain any provisions for protecting and
15573+enforcing the rights and remedies of the bond owners as may be
15574+reasonable and proper and not in violation of law, including
15575+covenants setting forth the duties of the authority. The authority
15576+may establish fees and charges for the use of any project and
15577+covenant with the owners of any bonds to set those fees and
15578+charges at a rate sufficient to protect the interest of the owners of
15579+the bonds. Any revenue bonds issued by the authority that are
15580+payable solely from revenues of the authority shall contain a
15581+statement to that effect in the form of bond.
15582+(f) Notwithstanding section 8(a) of this chapter, an ordinance
15583+adopted under section 11 of this chapter may provide, or be amended
15584+to provide, that the board of directors of the authority shall be
15585+composed of not fewer than three (3) nor more than eleven (11)
15586+members, who must be residents of or be employed at a place of
15587+employment located within the unit. The members shall be appointed
15588+by the executive of the unit.
15589+(g) The acquisition of real and personal property by an authority
15590+under this section is not subject to the provisions of IC 5-22,
15591+ES 419—LS 6606/DI 120 361
15592+IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
15593+purchase of property by public bodies or their agencies.
15594+(h) An authority may negotiate for the sale, lease, or other
15595+disposition of real and personal property without complying with the
15596+provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
15597+statute governing the disposition of public property.
15598+(i) Notwithstanding any other law, utility services provided within
15599+an economic development area established under this section are
15600+subject to regulation by the appropriate regulatory agencies unless the
15601+utility service is provided by a utility that provides utility service solely
15602+within the geographic boundaries of an existing or a closed military
15603+installation, in which case the utility service is not subject to regulation
15604+for purposes of rate making, regulation, service delivery, or issuance of
15605+bonds or other forms of indebtedness. However, this exemption from
15606+regulation does not apply to utility service if the service is generated,
15607+treated, or produced outside the boundaries of the existing or closed
15608+military installation.
15609+SECTION 106. IC 36-7-15.1-36.4 IS ADDED TO THE INDIANA
391615610 CODE AS A NEW SECTION TO READ AS FOLLOWS
3917-[EFFECTIVE JULY 1, 2023]: Sec. 14. (a) Except as otherwise
3918-provided in this section or by the provisions of a listed tax, any
3919-penalties and interest resulting from a listed tax shall be deposited
3920-as if it were the listed tax to which the penalty and interest are
3921-associated.
3922-(b) In the case of penalties or interest paid with regard to a tax
3923-imposed under IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6 (before
3924-its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6 (local income
3925-tax), the penalties and interest shall be deposited in the state
3926-general fund.
3927-(c) In the case of penalties or interest associated with the late
3928-payment of a tax imposed under IC 6-6-9, IC 6-6-9.5, IC 6-6-9.7, or
3929-IC 6-6-16, or the taxes imposed under IC 6-9 by local units,
3930-penalties and interest shall be distributed to the appropriate local
3931-unit and shall be distributed, spent, or otherwise managed in the
3932-same manner as the underlying tax.
3933-(d) Amounts collected under IC 6-8.1-10-5 shall be deposited in
3934-the state general fund.
3935-SECTION 35. IC 35-43-5-4.8 IS ADDED TO THE INDIANA
3936-CODE AS A NEW SECTION TO READ AS FOLLOWS
3937-[EFFECTIVE JULY 1, 2023]: Sec. 4.8. (a) The following definitions
3938-apply throughout this section:
3939-(1) "Automated sales suppression device" means a software
3940-program:
3941-(A) carried on a memory stick or removable compact disc;
3942-(B) accessed through an Internet link; or
3943-(C) accessed through any other means;
3944-that falsifies the electronic records of electronic cash registers
3945-and other point of sale systems, including transaction data
3946-and transaction reports.
3947-(2) "Electronic cash register" means a device that keeps a
3948-register or supporting documents through the means of an
3949-electronic device or a computer system designed to record
3950-SEA 419 — CC 1 93
3951-transaction data for the purpose of computing, compiling, or
3952-processing retail sales transaction data in any manner.
3953-(3) "Phantom-ware" means a hidden, a preinstalled, or an
3954-installed at a later time programming option embedded in the
3955-operating system of an electronic cash register, or hardwired
3956-into the electronic cash register that:
3957-(A) can be used to create a virtual second till; or
3958-(B) may eliminate or manipulate transaction records that
3959-may or may not be preserved in digital formats to
3960-represent the true or manipulated record of transactions
3961-in the electronic cash register.
3962-(4) "Transaction data" includes information regarding:
3963-(A) items purchased by a customer;
3964-(B) the price for each item;
3965-(C) a taxability determination for each item;
3966-(D) a segregated tax amount for each of the taxed items;
3967-(E) the amount of cash or credit tendered;
3968-(F) the net amount returned to the customer in change;
3969-(G) the date and time of the purchase;
3970-(H) the name, address, and identification number of the
3971-vendor; and
3972-(I) the receipt or invoice number of the transaction.
3973-(5) "Transaction report" means:
3974-(A) a report that includes:
3975-(i) the sales;
3976-(ii) taxes collected;
3977-(iii) media totals; and
3978-(iv) discount voids;
3979-at an electronic cash register that is printed on cash
3980-register tape at the end of a day or shift; or
3981-(B) a report documenting every action at an electronic cash
3982-register that is stored electronically.
3983-(6) "Zapper" refers to an automated sales suppression device.
3984-(b) A person who knowingly or intentionally sells, purchases,
3985-installs, transfers, or possesses:
3986-(1) an automated sales suppression device or a zapper; or
3987-(2) phantom-ware;
3988-after June 30, 2023, commits unlawful sale or possession of a
3989-transaction manipulation device, a Class A misdemeanor, except
3990-as provided in subsection (c).
15611+[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 36.4. (a)
15612+Not later than December 31 of each year, the redevelopment
15613+commissioners shall provide the balance of:
15614+(1) the special fund described in section 53(b)(3) of this
15615+chapter; and
15616+(2) any other funds maintained by the redevelopment
15617+commission;
15618+to the department of local government finance in the manner
15619+prescribed by the department of local government finance.
15620+(b) The department of local government finance shall post fund
15621+balances received under subsection (a) on the Indiana
15622+transparency website within ninety (90) days of the receipt of the
15623+fund balances.
15624+(c) This section expires July 1, 2028.
15625+SECTION 107. IC 36-7.5-4.5-18, AS ADDED BY P.L.248-2017,
15626+SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15627+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 18. If a district is
15628+established, the following apply to the administration and use of
15629+incremental property tax revenue by the development authority, or a
15630+redevelopment commission in the case of a district located in a cash
15631+participant county, in the district:
15632+(1) The department of local government finance shall adjust the
15633+base assessed value to neutralize any effect of a reassessment and
15634+ES 419—LS 6606/DI 120 362
15635+the annual adjustment of the real property in the district in the
15636+same manner as provided in IC 36-7-14-39(h).
15637+(2) Proceeds of the property taxes approved by the voters in a
15638+referendum or local public question shall be allocated to and,
15639+when collected, paid into the funds of the taxing unit for which
15640+the referendum or local public question was conducted in the
15641+same manner as provided in IC 36-7-14-39(b)(2).
15642+IC 36-7-14-39(b)(3).
15643+(3) Incremental property tax revenue may be used only for one (1)
15644+or more of the following purposes for a district:
15645+(A) To finance the improvement, construction, reconstruction,
15646+renovation, and acquisition of real and personal property
15647+improvements within a district.
15648+(B) To pay the principal of and interest on any obligations that
15649+are incurred for the purpose of financing or refinancing
15650+development in the district, including local public
15651+improvements that are physically located in or physically
15652+connected to the district.
15653+(C) To establish, augment, or restore the debt service reserve
15654+for bonds payable solely or in part from incremental property
15655+tax revenue from the district.
15656+(D) To pay premiums on the redemption before maturity of
15657+bonds payable solely or in part from incremental property tax
15658+revenue from the district.
15659+(E) To make payments on leases payable from incremental
15660+property tax revenue from the district.
15661+(F) To reimburse a municipality in which a district is located
15662+for expenditures made by the municipality for local public
15663+improvements that are physically located in or physically
15664+connected to the district.
15665+(G) To reimburse a municipality for rentals paid by the
15666+municipality for a building or parking facility that is physically
15667+located in or physically connected to the district under any
15668+lease entered into under IC 36-1-10.
15669+(H) To pay expenses incurred by the development authority for
15670+local public improvements that are in the district or serving the
15671+district.
15672+SECTION 108. IC 36-8-19-6, AS AMENDED BY P.L.95-2022,
15673+SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15674+JANUARY 1, 2023 (RETROACTIVE)]: Sec. 6. (a) To establish or
15675+expand a fire protection territory, the legislative bodies of each unit or
15676+fire protection district:
15677+ES 419—LS 6606/DI 120 363
15678+(1) desiring to establish a fire protection territory; or
15679+(2) desiring to expand an existing fire protection territory by:
15680+(A) becoming a participating unit in; or
15681+(B) approving the addition of a participating unit in;
15682+an existing fire protection territory;
15683+must adopt an ordinance (in the case of a county or municipality) or a
15684+resolution (in the case of a township or a fire protection district).
15685+(b) The ordinance or resolution must meet the following
15686+requirements:
15687+(1) The ordinance or resolution is identical to the ordinances and
15688+resolutions adopted by the other units or fire protection districts
15689+desiring to establish or expand the proposed territory.
15690+(2) Except as otherwise provided in this subdivision, the
15691+ordinance or resolution is adopted after January 1 but before April
15692+1. However, for an ordinance or resolution adopted in 2023,
15693+the ordinance or resolution must be adopted after January 1,
15694+2023, and before August 2, 2023.
15695+(3) The ordinance or resolution authorizes the unit or fire
15696+protection district to become a party to an agreement for the
15697+establishment of a fire protection territory or the expansion of an
15698+existing fire protection territory.
15699+(4) This subdivision does not apply to an ordinance or
15700+resolution adopted in 2023. An ordinance or resolution is
15701+adopted after the legislative body holds at least three (3) public
15702+hearings to receive public comment on the proposed ordinance or
15703+resolution as follows:
15704+(A) At least one (1) public hearing must be held at least thirty
15705+(30) days before the legislative body votes on the adoption of
15706+the ordinance or resolution. At the hearing, the legislative
15707+body shall make available to the public the information
15708+required by subsection (c) concerning the fiscal impact of the
15709+proposed fire protection territory.
15710+(B) At least two (2) public hearings must be held after the
15711+public hearing in clause (A), with the last public hearing held
15712+not later than ten (10) days before the legislative body votes on
15713+the adoption of the ordinance or resolution.
15714+The legislative body must give notice of the hearings under
15715+IC 5-3-1.
15716+(5) This subdivision applies to an ordinance or resolution
15717+adopted in 2023. An ordinance or resolution is adopted after
15718+the legislative body holds at least three (3) public hearings to
15719+receive public comment on the proposed ordinance or
15720+ES 419—LS 6606/DI 120 364
15721+resolution as follows:
15722+(A) At least one (1) public hearing must be held at least
15723+twenty-five (25) days before the legislative body votes on
15724+the adoption of the ordinance or resolution. At the hearing,
15725+the legislative body shall make available to the public the
15726+information required by subsection (c) concerning the
15727+fiscal impact of the proposed fire protection territory.
15728+(B) At least two (2) public hearings must be held after the
15729+public hearing in clause (A), with the last public hearing
15730+held not later than five (5) days before the legislative body
15731+votes on the adoption of the ordinance or resolution.
15732+The legislative body must give notice of the hearings under
15733+IC 5-3-1.
15734+(c) The legislative body must make available to the public the
15735+following information:
15736+(1) The property tax levy, property tax rate, and budget to be
15737+imposed or adopted during the first year of the proposed territory
15738+for each of the units or fire protection districts that would
15739+participate in the proposed territory. If a property tax rate is to be
15740+implemented over a number of years as provided in section 7(c)
15741+of this chapter, the information under this subdivision must
15742+include the amount of the intended property tax rate after having
15743+been fully implemented.
15744+(2) The estimated effect of the proposed reorganization in the
15745+following years on taxpayers in each of the units or fire protection
15746+districts that would participate in the proposed territory, including
15747+the expected property tax rates, property tax levies, expenditure
15748+levels, service levels, and annual debt service payments.
15749+(3) The estimated effect of the proposed reorganization on other
15750+units in the county in the following years and on local option
15751+income taxes, excise taxes, and property tax circuit breaker
15752+credits.
15753+(4) A description of the planned services and staffing levels to be
15754+provided in the proposed territory.
15755+(5) A description of any capital improvements to be provided in
15756+the proposed territory.
15757+(d) The notice required for a hearing under subsection (b)(4) and
15758+(b)(5) shall include all of the following:
15759+(1) A list of the provider unit and all participating units in the
15760+proposed territory.
15761+(2) The date, time, and location of the hearing.
15762+(3) The location where the public can inspect the proposed
15763+ES 419—LS 6606/DI 120 365
15764+ordinance or resolution.
15765+(4) A statement as to whether the proposed ordinance or
15766+resolution requires uniform tax rates or different tax rates within
15767+the territory.
15768+(5) The name and telephone number of a representative of the unit
15769+or fire protection district who may be contacted for further
15770+information.
15771+(6) The proposed levies and tax rates for each participating unit,
15772+and whether a tax rate will be implemented over a number of
15773+years under section 7(c) of this chapter.
15774+(e) The ordinance or resolution adopted under this section shall
15775+include at least the following:
15776+(1) The boundaries of the proposed territory.
15777+(2) The identity of the provider unit and all other participating
15778+units desiring to be included within the territory.
15779+(3) An agreement to impose:
15780+(A) a uniform tax rate upon all of the taxable property within
15781+the territory for fire protection services; or
15782+(B) different tax rates for fire protection services for the units
15783+or fire protection districts desiring to be included within the
15784+territory, so long as a tax rate applies uniformly to all of a
15785+unit's or fire protection district's taxable property within the
15786+territory.
15787+(4) An agreement as to how the property that is held by the
15788+territory will be disposed of if:
15789+(A) a participating unit withdraws from the territory; or
15790+(B) the territory is dissolved.
15791+(5) The contents of the agreement to establish the territory.
15792+(f) An ordinance or a resolution adopted under this section takes
15793+effect July 1 of the year the ordinance or resolution is adopted.
15794+SECTION 109. IC 36-9-23-25, AS AMENDED BY P.L.196-2014,
15795+SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15796+UPON PASSAGE]: Sec. 25. (a) Subject to section 37 of this chapter,
15797+the municipal legislative body shall, by ordinance, establish just and
15798+equitable fees for the services rendered by the sewage works, and
15799+provide the dates on which the fees are due.
15800+(b) Just and equitable fees are the fees required to maintain the
15801+sewage works in the sound physical and financial condition necessary
15802+to render adequate and efficient service. The fees must be sufficient to:
15803+(1) pay all expenses incidental to the operation of the works,
15804+including legal expenses, maintenance costs, operating charges,
15805+repairs, lease rentals, and interest charges on bonds or other
15806+ES 419—LS 6606/DI 120 366
15807+obligations;
15808+(2) provide the sinking fund required by section 21 of this
15809+chapter;
15810+(3) provide adequate money to be used as working capital; and
15811+(4) provide adequate money for improving and replacing the
15812+works.
15813+Fees established after notice and hearing under this chapter are
15814+presumed to be just and equitable.
15815+(c) Except as otherwise provided in a provision included in an
15816+ordinance under subsection (f), the fees are payable by the owner of
15817+each lot, parcel of real property, or building that:
15818+(1) is connected with the sewage works by or through any part of
15819+the municipal sewer system; or
15820+(2) uses or is served by the works.
15821+Unless the municipal legislative body finds otherwise, the works are
15822+considered to benefit every lot, parcel of real property, or building
15823+connected or to be connected with the municipal sewer system as a
15824+result of construction work under the contract, and the fees shall be
15825+billed and collected accordingly.
15826+(d) The municipal legislative body may use one (1) or more of the
15827+following factors to establish the fees:
15828+(1) A flat charge for each sewer connection.
15829+(2) The amount of water used on the property.
15830+(3) The number and size of water outlets on the property.
15831+(4) The amount, strength, or character of sewage discharged into
15832+the sewers.
15833+(5) The size of sewer connections.
15834+(6) Whether the property has been or will be required to pay
15835+separately for any part of the sewage works.
15836+(7) Whether the property, although vacant or unimproved, is
15837+benefited by a local or lateral sewer because of the availability of
15838+that sewer. However, the owner must have been notified, by
15839+recorded covenants and restrictions or deed restrictions in the
15840+chain of title of the owner's property, that a fee or assessment for
15841+sewer availability may be charged, and the fee may reflect only
15842+the capital cost of the sewer and not the cost of operation and
15843+maintenance of the sewage works.
15844+(8) The cost of collecting, treating, and disposing of garbage in a
15845+sanitary manner, including equipment and wages.
15846+(9) The amount of money sufficient to compensate the
15847+municipality for the property taxes that would be paid on the
15848+sewage works if the sewage works were privately owned.
15849+ES 419—LS 6606/DI 120 367
15850+(10) Any other factors the legislative body considers necessary.
15851+Fees collected under subdivision (8) may be spent for that purpose only
15852+after compliance with all provisions of the ordinance authorizing the
15853+issuance of the revenue bonds for the sewage works. The board may
15854+not transfer fees collected in lieu of taxes under subdivision (9) to the
15855+general fund of the municipality. Fees collected in lieu of taxes must
15856+be used for the purposes set forth in subsection (b). However, to the
15857+extent not otherwise needed for the purposes set forth in subsection
15858+(b), fees collected in lieu of taxes may be used to reduce the
15859+percentage difference between the rates and charges imposed on
15860+users of the sewage works for service to property located outside
15861+the corporate boundaries of the municipality and the rates and
15862+charges imposed on users of the sewage works for service to
15863+property located within the corporate boundaries of the
15864+municipality, as applicable.
15865+(e) The municipal legislative body may exercise reasonable
15866+discretion in adopting different schedules of fees, or making
15867+classifications in schedules of fees, based on variations in:
15868+(1) the costs, including capital expenditures, of furnishing
15869+services to various classes of users or to various locations; or
15870+(2) the number of users in various locations.
15871+(f) Notwithstanding IC 14-33-5-21, this subsection does not apply
15872+to a conservancy district established under IC 14-33 for the collection,
15873+treatment, and disposal of sewage and other liquid wastes. In an
15874+ordinance adopted under this section, the municipal legislative body
15875+may include one (1) or more of the following provisions with respect
15876+to property occupied by someone other than the owner of the property:
15877+(1) That fees for the services rendered by the sewage works to the
15878+property are payable by the person occupying the property. At the
15879+option of the municipal legislative body, the ordinance may
15880+include any:
15881+(A) requirement for a deposit to ensure payment of the fees by
15882+the person occupying the property; or
15883+(B) other requirement to ensure the creditworthiness of the
15884+person occupying the property as the account holder or
15885+customer with respect to the property;
15886+that the municipal legislative body may lawfully impose.
15887+(2) That the fees for the services rendered by the sewage works to
15888+the property are payable by the person occupying the property if
15889+one (1) of the following conditions is satisfied:
15890+(A) Either the property owner or the person occupying the
15891+property gives to the general office of the utility written notice
15892+ES 419—LS 6606/DI 120 368
15893+that indicates that the person occupying the property is
15894+responsible for paying the fees with respect to the property and
15895+requests that the account or other customer or billing records
15896+maintained for the property be in the name of the person
15897+occupying the property. At the option of the municipal
15898+legislative body, the ordinance may provide that a document
15899+that:
15900+(i) is executed by the property owner and the person
15901+occupying the property;
15902+(ii) identifies the person occupying the property by name;
15903+and
15904+(iii) indicates that the person occupying the property is
15905+responsible for paying the fees assessed by the utility with
15906+respect to the property;
15907+serves as written notice for purposes of this clause.
15908+(B) The account or other customer or billing records
15909+maintained by the utility for the property otherwise indicate
15910+that:
15911+(i) the property is occupied by someone other than the
15912+owner; and
15913+(ii) the person occupying the property is responsible for
15914+paying the fees.
15915+(C) The property owner or the person occupying the property
15916+satisfies any other requirements or conditions that the
15917+municipal legislative body includes in the ordinance.
15918+(3) That fees assessed against the property for the services
15919+rendered by the sewage works to the property do not constitute a
15920+lien against the property, notwithstanding section 32 of this
15921+chapter, and subject to any requirements or conditions set forth in
15922+the ordinance.
15923+This subsection may not be construed to prohibit a municipal
15924+legislative body from including in an ordinance adopted under this
15925+section any other provision that the municipal legislative body
15926+considers appropriate.".
15927+Page 69, line 39, delete "IC 6-3-2-27, as".
15928+Page 69, line 40, delete "added by this act, and".
15929+Page 70, line 3, delete "IC 6-8.1-19-9.5" and insert "IC
15930+6-8.1-10-9.5".
15931+Page 70, line 5, delete "IC 6-8.1-19-9.5" and insert "IC
15932+6-8.1-10-9.5".
15933+Page 70, line 6, delete "August 14, 2023." and insert "February 14,
15934+2024.".
15935+ES 419—LS 6606/DI 120 369
15936+Page 70, between lines 9 and 10, begin a new paragraph and insert:
15937+"SECTION 112. P.L.1-2023, SECTION 21, IS AMENDED TO
15938+READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2022
15939+(RETROACTIVE)]: SECTION 21. (a) This SECTION applies to the
15940+election and imposition of the pass through entity tax pursuant to
15941+IC 6-3-2.1, as added by this act, for tax years ending before January 1,
15942+2023.
15943+(b) For the applicable period, the tax shall be paid and filed in
15944+conjunction with and consistent with the filing of a composite tax
15945+return pursuant to IC 6-3-4-12 or IC 6-3-4-13.
15946+(c) Notwithstanding any other provision, no estimated payments
15947+shall be due for the applicable period other than any such payment that
15948+is currently required for purposes of withholding tax pursuant to
15949+IC 6-3-4-12 or IC 6-3-4-13.
15950+(d) All provisions of IC 6-3-2.1, as added by this act, shall apply to
15951+the applicable period unless any such provision is inconsistent with the
15952+provisions and procedures applicable to the filing of composite returns
15953+pursuant to IC 6-3-4-12 or IC 6-3-4-13.
15954+(e) A pass through entity that elects to pay the tax imposed by
15955+IC 6-3-2.1, as added by this act, for the applicable period will not be
15956+subject to an underpayment penalty pursuant to IC 6-8.1-10-2.1(a)(2)
15957+for failure to pay any tax due pursuant to IC 6-3-2.1, as added by this
15958+act, for any such tax not remitted as of the due date of the return,
15959+including extensions. This provision does not waive any interest due on
15960+such amounts pursuant to IC 6-8.1-10-1.
15961+(f) (e) Notwithstanding any provision to the contrary in
15962+IC 6-8.1-10-1 or IC 6-8.1-10-2.1, if the tax under IC 6-3-2.1, as added
15963+by this act, is due before August 31, 2024, interest and penalty for late
15964+payment of the tax shall be waived for the period from the due date to
15965+August 30, 2024. Interest and penalty shall be due on any amounts
15966+unpaid after August 30, 2024, in the manner otherwise provided by
15967+law.
15968+SECTION 113. [EFFECTIVE JANUARY 1, 2024] (a)
15969+IC 6-3-2-27.5, IC 6-3-2-28, and IC 6-3.1-38.3, as added by this act,
15970+apply to taxable years beginning after December 31, 2023.
15971+(b) This SECTION expires July 1, 2026.
15972+SECTION 114. [EFFECTIVE UPON PASSAGE] (a) IC 6-3-2-29,
15973+as added by this act, applies to taxable years beginning after
15974+December 31, 2021.
15975+(b) This SECTION expires July 1, 2025.
15976+SECTION 115. [EFFECTIVE JULY 1, 2023] (a) Notwithstanding
15977+the effective date of July 1, 2023, for IC 6-6-2.5-32.7, as added by
15978+ES 419—LS 6606/DI 120 370
15979+this act, a person that would have qualified for a refund of special
15980+fuel taxes under IC 6-6-2.5-32.7, as added by this act, is entitled to
15981+a refund for the period beginning July 1, 2022, through June 30,
15982+2023. The person must file a refund claim for that period in a single
15983+claim.
15984+(b) A claim for a refund under this SECTION must be filed
15985+before September 30, 2023. A refund claim must be in the form
15986+prescribed by the department of state revenue and include any
15987+information reasonably requested by the department.
15988+(c) The department of state revenue may make any
15989+investigations it considers necessary before making a refund to a
15990+person.
15991+(d) This SECTION expires June 30, 2024.
15992+SECTION 116. [EFFECTIVE JULY 1, 2023] (a) IC 6-2.5-5-57.5,
15993+as added by this act, applies only to retail transactions occurring
15994+after June 30, 2023.
15995+(b) Except as provided in subsection (c), a retail transaction is
15996+considered to have occurred after June 30, 2023, if the property
15997+whose transfer constitutes selling at retail is delivered to the
15998+purchaser or to the place of delivery designated by the purchaser
15999+after June 30, 2023.
16000+(c) Notwithstanding the delivery of the property constituting
16001+selling at retail after June 30, 2023, a transaction is considered to
16002+have occurred before July 1, 2023, to the extent that:
16003+(1) the agreement of the parties to the transaction is entered
16004+into before July 1, 2023; and
16005+(2) payment for the property furnished in the transaction is
16006+made before July 1, 2023.
16007+(d) This SECTION expires January 1, 2026.".
16008+Renumber all SECTIONS consecutively.
16009+and when so amended that said bill do pass.
16010+(Reference is to SB 419 as printed February 22, 2023.)
16011+THOMPSON
16012+Committee Vote: yeas 23, nays 0.
16013+ES 419—LS 6606/DI 120 371
16014+HOUSE MOTION
16015+Mr. Speaker: I move that Engrossed Senate Bill 419 be amended to
16016+read as follows:
16017+Page 10, delete lines 38 through 42, begin a new paragraph and
16018+insert:
16019+"SECTION 10. IC 6-1.1-24-2, AS AMENDED BY SEA 157-2023,
16020+SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16021+UPON PASSAGE]: Sec. 2. (a) This section does not apply to vacant or
16022+abandoned real property that is on the list prepared by the county
16023+auditor under section 1.5 of this chapter.
16024+(b) In addition to the delinquency list required under section 1 of
16025+this chapter, each county auditor shall prepare a notice. The notice shall
16026+contain the following:
16027+(1) A list of tracts or real property eligible for sale under this
16028+chapter.
16029+(2) A statement that the tracts or real property included in the list
16030+will be sold at public auction to the highest bidder, subject to the
16031+right of redemption.
16032+(3) A statement that the tracts or real property will not be sold for
16033+an amount which is less than the sum of:
16034+(A) the delinquent taxes and special assessments on each tract
16035+or item of real property;
16036+(B) the taxes and special assessments on each tract or item of
16037+real property that are due and payable in the year of the sale,
16038+whether or not they are delinquent;
16039+(C) all penalties due on the delinquencies;
16040+(D) an amount prescribed by the county auditor that equals the
16041+sum of:
16042+(i) the greater of twenty-five dollars ($25) or postage and
16043+publication costs; and
16044+(ii) any other actual costs incurred by the county that are
16045+directly attributable to the tax sale; and
16046+(E) any unpaid costs due under subsection (c) from a prior tax
16047+sale.
16048+(4) A statement that a person redeeming each tract or item of real
16049+property after the sale must pay:
16050+(A) one hundred ten percent (110%) of the amount of the
16051+minimum bid for which the tract or item of real property was
16052+offered at the time of sale if the tract or item of real property
16053+is redeemed not more than six (6) months after the date of
16054+sale;
16055+ES 419—LS 6606/DI 120 372
16056+(B) one hundred fifteen percent (115%) of the amount of the
16057+minimum bid for which the tract or item of real property was
16058+offered at the time of sale if the tract or item of real property
16059+is redeemed more than six (6) months after the date of sale;
16060+(C) the amount by which the purchase price exceeds the
16061+minimum bid on the tract or item of real property plus five
16062+percent (5%) interest per annum, on the amount by which the
16063+purchase price exceeds the minimum bid; and
16064+(D) all taxes and special assessments on the tract or item of
16065+real property paid by the purchaser after the tax sale plus
16066+interest at the rate of five percent (5%) per annum, on the
16067+amount of taxes and special assessments paid by the purchaser
16068+on the redeemed property.
16069+(5) A statement for informational purposes only, of the location
16070+of each tract or item of real property by key number, if any, and
16071+street address, if any, or a common description of the property
16072+other than a legal description. The township assessor, or the
16073+county assessor if there is no township assessor for the township,
16074+upon written request from the county auditor, shall provide the
16075+information to be in the notice required by this subsection. A
16076+misstatement in the key number or street address does not
16077+invalidate an otherwise valid sale.
16078+(6) A statement that the county does not warrant the accuracy of
16079+the street address or common description of the property.
16080+(7) A statement indicating:
16081+(A) the name of the owner of each tract or item of real
16082+property with a single owner; or
16083+(B) the name of at least one (1) of the owners of each tract or
16084+item of real property with multiple owners.
16085+(8) A statement of the procedure to be followed for obtaining or
16086+objecting to a judgment and order of sale, that must include the
16087+following:
16088+(A) A statement:
16089+(i) that the county auditor and county treasurer will apply on
16090+or after a date designated in the notice for a court judgment
16091+against the tracts or real property for an amount that is not
16092+less than the amount set under subdivision (3), and for an
16093+order to sell the tracts or real property at public auction to
16094+the highest bidder, subject to the right of redemption; and
16095+(ii) indicating the date when the period of redemption
16096+specified in IC 6-1.1-25-4 will expire.
16097+(B) A statement that any defense to the application for
16098+ES 419—LS 6606/DI 120 373
16099+judgment must be:
16100+(i) filed with the court; and
16101+(ii) served on the county auditor and the county treasurer;
16102+before the date designated as the earliest date on which the
16103+application for judgment may be filed.
16104+(C) A statement that the county auditor and the county
16105+treasurer are entitled to receive all pleadings, motions,
16106+petitions, and other filings related to the defense to the
16107+application for judgment.
16108+(D) A statement that the court will set a date for a hearing at
16109+least seven (7) days before the advertised date and that the
16110+court will determine any defenses to the application for
16111+judgment at the hearing.
16112+(9) A statement that the sale will be conducted at a place
16113+designated in the notice and that the sale will continue until all
16114+tracts and real property have been offered for sale.
16115+(10) A statement that the sale will take place at the times and
16116+dates designated in the notice. Whenever the public auction is to
16117+be conducted as an electronic sale, the notice must include a
16118+statement indicating that the public auction will be conducted as
16119+an electronic sale and a description of the procedures that must be
16120+followed to participate in the electronic sale.
16121+(11) A statement that a person redeeming each tract or item after
16122+the sale must pay the costs described in IC 6-1.1-25-2(e).
16123+(12) If a county auditor and county treasurer have entered into an
16124+agreement under IC 6-1.1-25-4.7, a statement that the county
16125+auditor will perform the duties of the notification and title search
16126+under IC 6-1.1-25-4.5 and the notification and petition to the
16127+court for the tax deed under IC 6-1.1-25-4.6.
16128+(13) A statement that, if the tract or item of real property is sold
16129+for an amount more than the minimum bid and the property is not
16130+redeemed, the owner of record of the tract or item of real property
16131+who is divested of ownership at the time the tax deed is issued
16132+may have a right to the tax sale surplus.
16133+(14) If a determination has been made under subsection (e), a
16134+statement that tracts or items will be sold together.
16135+(15) A statement that if a tract or item of real property has been
16136+offered for sale at a county treasurer's tax sale in accordance with
16137+section 5 of this chapter and a county executive's tax sale in
16138+accordance with section 6.1 of this chapter on two (2) or more
16139+occasions without a bid, the tract or item of real property may be
16140+subject to an ordinance adopted under IC 6-1.1-25-4.9.
16141+ES 419—LS 6606/DI 120 374
16142+(16) With respect to a tract or an item of real property that is
16143+subject to sale under this chapter after October 31, 2023, and
16144+before November 1, 2024, a statement declaring whether an
16145+ordinance adopted under IC 6-1.1-37-16 is in effect in the
16146+county and, if applicable, an explanation of the circumstances
16147+in which interest and penalties on the delinquent taxes and
16148+special assessments will be waived.
16149+(c) If within sixty (60) days before the date of the tax sale the county
16150+incurs costs set under subsection (b)(3)(D) and those costs are not paid,
16151+the county auditor shall enter the amount of costs that remain unpaid
16152+upon the tax duplicate of the property for which the costs were set. The
16153+county treasurer shall mail notice of unpaid costs entered upon a tax
16154+duplicate under this subsection to the owner of the property identified
16155+in the tax duplicate.
16156+(d) The amount of unpaid costs entered upon a tax duplicate under
16157+subsection (c) must be paid no later than the date upon which the next
16158+installment of real estate taxes for the property is due. Unpaid costs
16159+entered upon a tax duplicate under subsection (c) are a lien against the
16160+property described in the tax duplicate, and amounts remaining unpaid
16161+on the date the next installment of real estate taxes is due may be
16162+collected in the same manner that delinquent property taxes are
16163+collected.
16164+(e) The county auditor and county treasurer may establish the
16165+condition that a tract or item will be sold and may be redeemed under
16166+this chapter only if the tract or item is sold or redeemed together with
16167+one (1) or more other tracts or items. Property may be sold together
16168+only if the tract or item is owned by the same person.".
16169+Delete pages 11 through 13.
16170+Page 14, delete lines 1 through 10.
16171+Page 18, line 38, delete "shall" and insert "may".
16172+Page 50, line 13, delete "and" and insert "or".
16173+Page 88, line 34, delete "education savings" and insert "ABLE".
16174+Page 88, line 36, delete "education savings" and insert "ABLE".
16175+Page 93, line 6, delete "A qualified taxpayer is entitled to a credit as
16176+allowed," and insert "Subject to IC 5-28-6-9, the Indiana economic
16177+development corporation may award a credit to a qualified
16178+taxpayer".
16179+Page 93, delete line 7.
16180+Page 93, line 8, delete "corporation under IC 5-28-6-9".
16181+Page 93, line 23, after "(A)" insert "owned by a taxpayer that is".
16182+Page 93, line 24, delete "501(3)" and insert "501(c)(3)".
16183+Page 93, line 28, delete "administrate" and insert "administer".
16184+ES 419—LS 6606/DI 120 375
16185+Page 93, line 30, delete "entitled to" and insert "awarded".
16186+Page 93, line 33, delete "is entitled to" and insert "may receive".
16187+Page 93, line 40, delete "to which".
16188+Page 93, line 41, delete "entitled" and insert "awarded".
16189+Page 95, line 5, delete "2033," and insert "2030,".
16190+Page 95, between lines 7 and 8, begin a new paragraph and insert:
16191+"Sec. 13. Any credit awarded under this chapter must be
16192+included in the calculation of the aggregate amount of applicable
16193+tax credits that the Indiana economic development corporation
16194+may certify for a state fiscal year under IC 5-28-6-9.".
16195+Page 95, line 8, delete "13." and insert "14.".
16196+Page 95, line 9, delete "IC 4-22-2, including emergency rules" and
16197+insert "IC 4-22-2".
16198+Page 95, line 10, delete "under IC 4-22-2-37.1,".
16199+Page 95, line 11, delete "14." and insert "15.".
16200+Page 95, line 11, delete "2033." and insert "2030.".
16201+Page 103, line 22, delete "remains frozen at the previous year's
16202+allocation" and insert "shall be the lesser of the:
16203+(1) applicable distribution schedule for the certified
16204+distribution for the upcoming calendar year; or
16205+(2) applicable distribution schedule for the certified
16206+distribution for the current calendar year;".
16207+Page 103, line 23, delete "amount or tax rate".
16208+Page 103, line 23, begin a new line blocked left beginning with
16209+"unless".
16210+Page 107, line 21, delete "that:" and insert ", fire protection
16211+territories, or fire protection districts".
16212+Page 107, delete lines 22 through 24.
16213+Page 107, run in lines 21 through 25.
16214+Page 107, line 30, after "for" delete "the" and insert "each".
16215+Page 107, line 30, delete "department." and insert "department, fire
16216+protection territory, or fire protection district, as applicable.".
16217+Page 107, line 33, delete "the township fire department." and insert
16218+"each township fire department, fire protection territory, or fire
16219+protection district, as applicable.".
16220+Page 107, line 40, after "department" insert ", fire protection
16221+territory, or fire protection district, as applicable,".
16222+Page 116, line 8, delete "income excluded" and insert "discharge of
16223+indebtedness excluded from federal gross income".
16224+Page 135, delete lines 7 through 42.
16225+Delete pages 136 through 142.
16226+Page 143, delete lines 1 through 9.
16227+ES 419—LS 6606/DI 120 376
16228+Page 155, line 30, delete "Level 5 felony." and insert "Class A
16229+misdemeanor, except as provided in subsection (c).
399116230 (c) The offense under subsection (b) is:
399216231 (1) a Level 6 felony if:
3993-SEA 419 — CC 1 94
399416232 (A) the pecuniary loss caused by the offense is at least
399516233 seven hundred fifty dollars ($750) and less than fifty
399616234 thousand dollars ($50,000); or
399716235 (B) the person has a prior unrelated conviction for:
399816236 (i) a violation of this section;
399916237 (ii) theft under IC 35-43-4-2;
400016238 (iii) criminal conversion under IC 35-43-4-3;
400116239 (iv) robbery under IC 35-42-5-1; or
400216240 (v) burglary under IC 35-43-2-1; and
400316241 (2) a Level 5 felony if the pecuniary loss caused by the offense
4004-is at least fifty thousand dollars ($50,000).
4005-SECTION 36. [EFFECTIVE UPON PASSAGE] (a) IC 6-3-1-3.5,
4006-IC 6-3-2-2.5, IC 6-3-2-2.6, IC 6-3-2-21.7, and IC 6-5.5-2-1, all as
4007-amended by this act, apply to taxable years beginning after
4008-December 31, 2022.
4009-(b) This SECTION expires January 1, 2025.
4010-SECTION 37. [EFFECTIVE UPON PASSAGE] (a) This
4011-SECTION applies to IC 6-8.1-10-9.5, as added by this act.
4012-(b) No purchaser in bulk shall be considered to be a successor
4013-in liability pursuant to IC 6-8.1-10-9.5, as added by this act, for
4014-transactions that take place prior to February 14, 2024.
4015-(c) IC 6-8.1-10-9.5(i) shall be considered a restatement of the
4016-law.
4017-(d) This SECTION expires January 1, 2025.
4018-SECTION 38. [EFFECTIVE JANUARY 1, 2024] (a) IC 6-3-2-27.5
4019-and IC 6-3-2-28, as added by this act, apply to taxable years
4020-beginning after December 31, 2023.
4021-(b) This SECTION expires July 1, 2026.
4022-SECTION 39. [EFFECTIVE UPON PASSAGE] (a) IC 6-3-2-29, as
4023-added by this act, applies to taxable years beginning after
4024-December 31, 2021.
4025-(b) This SECTION expires July 1, 2025.
4026-SECTION 40. An emergency is declared for this act.
4027-SEA 419 — CC 1 President of the Senate
4028-President Pro Tempore
4029-Speaker of the House of Representatives
4030-Governor of the State of Indiana
4031-Date: Time:
4032-SEA 419 — CC 1
16242+is at least fifty thousand dollars ($50,000).".
16243+Page 159, line 35, delete "Except as provided in subsection (c), a"
16244+and insert "A".
16245+Page 159, delete lines 41 through 42.
16246+Page 160, delete lines 1 through 24, begin a new paragraph and
16247+insert:
16248+"SECTION 97. IC 36-7-14-13, AS AMENDED BY P.L.255-2017,
16249+SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16250+JULY 1, 2023]: Sec. 13. (a) Not later than April 15 of each year, the
16251+redevelopment commissioners or their designees shall file with the
16252+unit's executive and fiscal body a report setting out their activities
16253+during the preceding calendar year. The redevelopment
16254+commissioners or their designees shall also present the report to
16255+the unit's fiscal body at a public meeting.
16256+(b) The report of the commissioners of a municipal redevelopment
16257+commission must show the names of the then qualified and acting
16258+commissioners, the names of the officers of that body, the number of
16259+regular employees and their fixed salaries or compensation, the amount
16260+of the expenditures made during the preceding year and their general
16261+purpose, an accounting of the tax increment revenues expended by any
16262+entity receiving the tax increment revenues as a grant or loan from the
16263+commission, the amount of funds on hand at the close of the calendar
16264+year, and other information necessary to disclose the activities of the
16265+commissioners and the results obtained.
16266+(c) The report of the commissioners of a county redevelopment
16267+commission must show all the information required by subsection (b),
16268+plus the names of any commissioners appointed to or removed from
16269+office during the preceding calendar year.
16270+ES 419—LS 6606/DI 120 377
16271+(d) A copy of each report filed under this section must be submitted
16272+to the department of local government finance in an electronic format.
16273+(e) The report required under subsection (a) must also include the
16274+following information set forth for each tax increment financing district
16275+regarding the previous year:
16276+(1) Revenues received.
16277+(2) Expenses paid.
16278+(3) Fund balances.
16279+(4) The amount and maturity date for all outstanding obligations.
16280+(5) The amount paid on outstanding obligations.
16281+(6) A list of all the parcels and the depreciable personal property
16282+of any designated taxpayer included in each tax increment
16283+financing district allocation area and the base assessed value and
16284+incremental assessed value for each parcel and the depreciable
16285+personal property of any designated taxpayer in the list.
16286+(7) To the extent that the following information has not previously
16287+been provided to the department of local government finance:
16288+(A) The year in which the tax increment financing district was
16289+established.
16290+(B) The section of the Indiana Code under which the tax
16291+increment financing district was established.
16292+(C) Whether the tax increment financing district is part of an
16293+area needing redevelopment, an economic development area,
16294+a redevelopment project area, or an urban renewal project
16295+area.
16296+(D) If applicable, the year in which the boundaries of the tax
16297+increment financing district were changed and a description of
16298+those changes.
16299+(E) The date on which the tax increment financing district will
16300+expire.
16301+(F) A copy of each resolution adopted by the redevelopment
16302+commission that establishes or alters the tax increment
16303+financing district.
16304+(8) Amounts distributed to other units, if applicable.
16305+(f) A redevelopment commission and a department of
16306+redevelopment are subject to the same laws, rules, and ordinances of
16307+a general nature that apply to all other commissions or departments of
16308+the unit.".
16309+Page 171, line 24, delete "assessed value" and insert "allocated
16310+property tax revenue".
16311+Page 171, line 29, delete "assessed value" and insert "allocated
16312+property tax revenue".
16313+ES 419—LS 6606/DI 120 378
16314+Page 171, line 31, delete "assessed value" and insert "allocated
16315+property tax revenue".
16316+Page 193, delete lines 11 through 26.
16317+Page 197, delete lines 24 through 42.
16318+Delete pages 198 through 199.
16319+Page 200, delete lines 1 through 27.
16320+Renumber all SECTIONS consecutively.
16321+(Reference is to ESB 419 as printed April 6, 2023.)
16322+THOMPSON
16323+ES 419—LS 6606/DI 120