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Indiana House Bill HB1388

Indiana 2024 Regular Session

Indiana House Bill HB1388 Compare Versions

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22 Introduced Version
33 HOUSE BILL No. 1388
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 6-3; IC 6-3.5-12; IC 8-1-2-4.4; IC 23-19-1-2;
77 IC 27-1-12.7-6; IC 28-8-4.1-201; IC 34-30-34.5; IC 35-46-7-2; IC 36-1.
88 Synopsis: Use of digital assets. Provides an income tax deduction for
99 short term or long term capital gain that is attributable to the sale or
1010 exchange of digital assets in a transaction and that is included in
1111 federal adjusted gross income, in an amount not to exceed $200 per
1212 transaction for the 2024 taxable year, and adjusted annually for
1313 inflation each taxable year thereafter. Provides that a county or
1414 municipality may not: (1) impose a tax that is assessed based on use of
1515 a digital asset as payment in a transaction; or (2) impose a tax on
1616 transactions at a different rate based on the use of a digital asset for
1717 payment in the transaction. Prohibits the Indiana utility regulatory
1818 commission (commission) from approving a rate schedule for
1919 electricity supplied by an electricity supplier to digital asset mining
2020 businesses that is unreasonable or unjustly discriminatory as compared
2121 to the rate schedule approved by the commission for electricity
2222 supplied by the electricity supplier to industrial customers. Provides
2323 that a person is not required to be licensed as a securities broker-dealer
2424 solely because the person provides, or offers to provide, specified
2525 services with respect to transactions involving digital assets. Provides
2626 that specified operations conducted with respect to maintenance of a
2727 blockchain do not constitute money transmission for purposes of
2828 statutes regarding licensure of money transmitters. Provides immunity
2929 from civil liability for a person that performs specified actions with
3030 respect to validation of a transaction on a blockchain network. Prohibits
3131 a county, municipality, or township from adopting or enforcing an
3232 ordinance that would have the effect of prohibiting, restricting, or
3333 impairing an individual's ability to: (1) use digital assets to purchase
3434 (Continued next page)
3535 Effective: January 1, 2024 (retroactive); July 1, 2024.
3636 VanNatter
3737 January 11, 2024, read first time and referred to Committee on Ways and Means.
3838 2024 IN 1388—LS 6710/DI 119 Digest Continued
3939 legal goods and services; or (2) use a hardware wallet or self-hosted
4040 wallet to store the individual's digital assets. Provides that use of a
4141 property for digital asset mining is a permitted industrial use under any
4242 applicable zoning ordinance of a unit and may not be disallowed by a
4343 zoning ordinance in a zoning district that permits industrial use.
4444 Prohibits a unit from applying the unit's zoning ordinances in specified
4545 ways to regulate digital asset mining. Makes conforming amendments
4646 and technical corrections.
4747 2024 IN 1388—LS 6710/DI 1192024 IN 1388—LS 6710/DI 119 Introduced
4848 Second Regular Session of the 123rd General Assembly (2024)
4949 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
5050 Constitution) is being amended, the text of the existing provision will appear in this style type,
5151 additions will appear in this style type, and deletions will appear in this style type.
5252 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
5353 provision adopted), the text of the new provision will appear in this style type. Also, the
5454 word NEW will appear in that style type in the introductory clause of each SECTION that adds
5555 a new provision to the Indiana Code or the Indiana Constitution.
5656 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
5757 between statutes enacted by the 2023 Regular Session of the General Assembly.
5858 HOUSE BILL No. 1388
5959 A BILL FOR AN ACT to amend the Indiana Code concerning
6060 technology.
6161 Be it enacted by the General Assembly of the State of Indiana:
6262 1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.236-2023,
6363 2 SECTION 63, AND AS AMENDED BY P.L.194-2023, SECTION 7,
6464 3 AND AS AMENDED BY P.L.201-2023, SECTION 94, AND AS
6565 4 AMENDED BY P.L.202-2023, SECTION 7, AND AS AMENDED BY
6666 5 THE TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
6767 6 ASSEMBLY, IS CORRECTED AND AMENDED TO READ AS
6868 7 FOLLOWS [EFFECTIVE JANUARY 1, 2024 (RETROACTIVE)]:
6969 8 Sec. 3.5. When used in this article, the term "adjusted gross income"
7070 9 shall mean the following:
7171 10 (a) In the case of all individuals, "adjusted gross income" (as
7272 11 defined in Section 62 of the Internal Revenue Code), modified as
7373 12 follows:
7474 13 (1) Subtract income that is exempt from taxation under this article
7575 14 by the Constitution and statutes of the United States.
7676 15 (2) Except as provided in subsection (c), add an amount equal to
7777 2024 IN 1388—LS 6710/DI 119 2
7878 1 any deduction or deductions allowed or allowable pursuant to
7979 2 Section 62 of the Internal Revenue Code for taxes based on or
8080 3 measured by income and levied at the state level by any state of
8181 4 the United States.
8282 5 (3) Subtract one thousand dollars ($1,000), or in the case of a
8383 6 joint return filed by a husband and wife, subtract for each spouse
8484 7 one thousand dollars ($1,000).
8585 8 (4) Subtract one thousand dollars ($1,000) for:
8686 9 (A) each of the exemptions provided by Section 151(c) of the
8787 10 Internal Revenue Code (as effective January 1, 2017);
8888 11 (B) each additional amount allowable under Section 63(f) of
8989 12 the Internal Revenue Code; and
9090 13 (C) the spouse of the taxpayer if a separate return is made by
9191 14 the taxpayer and if the spouse, for the calendar year in which
9292 15 the taxable year of the taxpayer begins, has no gross income
9393 16 and is not the dependent of another taxpayer.
9494 17 (5) Subtract each of the following:
9595 18 (A) One thousand five hundred dollars ($1,500) for each of the
9696 19 exemptions allowed under Section 151(c)(1)(B) of the Internal
9797 20 Revenue Code (as effective January 1, 2004), except that in
9898 21 the first taxable year in which a particular exemption is
9999 22 allowed under Section 151(c)(1)(B) of the Internal Revenue
100100 23 Code (as effective January 1, 2004), subtract three thousand
101101 24 dollars ($3,000) for that exemption.
102102 25 (B) One thousand five hundred dollars ($1,500) for each
103103 26 exemption allowed under Section 151(c) of the Internal
104104 27 Revenue Code (as effective January 1, 2017) for an individual:
105105 28 (i) who is less than nineteen (19) years of age or is a
106106 29 full-time student who is less than twenty-four (24) years of
107107 30 age;
108108 31 (ii) for whom the taxpayer is the legal guardian; and
109109 32 (iii) for whom the taxpayer does not claim an exemption
110110 33 under clause (A).
111111 34 (C) Five hundred dollars ($500) for each additional amount
112112 35 allowable under Section 63(f)(1) of the Internal Revenue Code
113113 36 if the federal adjusted gross income of the taxpayer, or the
114114 37 taxpayer and the taxpayer's spouse in the case of a joint return,
115115 38 is less than forty thousand dollars ($40,000). In the case of a
116116 39 married individual filing a separate return, the qualifying
117117 40 income amount in this clause is equal to twenty thousand
118118 41 dollars ($20,000).
119119 42 (D) Three thousand dollars ($3,000) for each exemption
120120 2024 IN 1388—LS 6710/DI 119 3
121121 1 allowed under Section 151(c) of the Internal Revenue Code (as
122122 2 effective January 1, 2017) for an individual who is:
123123 3 (i) an adopted child of the taxpayer; and
124124 4 (ii) less than nineteen (19) years of age or is a full-time
125125 5 student who is less than twenty-four (24) years of age.
126126 6 This amount is in addition to any amount subtracted under
127127 7 clause (A) or (B).
128128 8 This amount is in addition to the amount subtracted under
129129 9 subdivision (4).
130130 10 (6) Subtract any amounts included in federal adjusted gross
131131 11 income under Section 111 of the Internal Revenue Code as a
132132 12 recovery of items previously deducted as an itemized deduction
133133 13 from adjusted gross income.
134134 14 (7) Subtract any amounts included in federal adjusted gross
135135 15 income under the Internal Revenue Code which amounts were
136136 16 received by the individual as supplemental railroad retirement
137137 17 annuities under 45 U.S.C. 231 and which are not deductible under
138138 18 subdivision (1).
139139 19 (8) Subtract an amount equal to the amount of federal Social
140140 20 Security and Railroad Retirement benefits included in a taxpayer's
141141 21 federal gross income by Section 86 of the Internal Revenue Code.
142142 22 (9) In the case of a nonresident taxpayer or a resident taxpayer
143143 23 residing in Indiana for a period of less than the taxpayer's entire
144144 24 taxable year, the total amount of the deductions allowed pursuant
145145 25 to subdivisions (3), (4), and (5) shall be reduced to an amount
146146 26 which bears the same ratio to the total as the taxpayer's income
147147 27 taxable in Indiana bears to the taxpayer's total income.
148148 28 (10) In the case of an individual who is a recipient of assistance
149149 29 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
150150 30 subtract an amount equal to that portion of the individual's
151151 31 adjusted gross income with respect to which the individual is not
152152 32 allowed under federal law to retain an amount to pay state and
153153 33 local income taxes.
154154 34 (11) In the case of an eligible individual, subtract the amount of
155155 35 a Holocaust victim's settlement payment included in the
156156 36 individual's federal adjusted gross income.
157157 37 (12) Subtract an amount equal to the portion of any premiums
158158 38 paid during the taxable year by the taxpayer for a qualified long
159159 39 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
160160 40 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
161161 41 file a joint income tax return or the taxpayer is otherwise entitled
162162 42 to a deduction under this subdivision for the taxpayer's spouse, or
163163 2024 IN 1388—LS 6710/DI 119 4
164164 1 both.
165165 2 (13) Subtract an amount equal to the lesser of:
166166 3 (A) two thousand five hundred dollars ($2,500), or one
167167 4 thousand two hundred fifty dollars ($1,250) in the case of a
168168 5 married individual filing a separate return; or
169169 6 (B) the amount of property taxes that are paid during the
170170 7 taxable year in Indiana by the individual on the individual's
171171 8 principal place of residence.
172172 9 (14) Subtract an amount equal to the amount of a September 11
173173 10 terrorist attack settlement payment included in the individual's
174174 11 federal adjusted gross income.
175175 12 (15) Add or subtract the amount necessary to make the adjusted
176176 13 gross income of any taxpayer that owns property for which bonus
177177 14 depreciation was allowed in the current taxable year or in an
178178 15 earlier taxable year equal to the amount of adjusted gross income
179179 16 that would have been computed had an election not been made
180180 17 under Section 168(k) of the Internal Revenue Code to apply bonus
181181 18 depreciation to the property in the year that it was placed in
182182 19 service.
183183 20 (16) Add an amount equal to any deduction allowed under
184184 21 Section 172 of the Internal Revenue Code (concerning net
185185 22 operating losses).
186186 23 (17) Add or subtract the amount necessary to make the adjusted
187187 24 gross income of any taxpayer that placed Section 179 property (as
188188 25 defined in Section 179 of the Internal Revenue Code) in service
189189 26 in the current taxable year or in an earlier taxable year equal to
190190 27 the amount of adjusted gross income that would have been
191191 28 computed had an election for federal income tax purposes not
192192 29 been made for the year in which the property was placed in
193193 30 service to take deductions under Section 179 of the Internal
194194 31 Revenue Code in a total amount exceeding the sum of:
195195 32 (A) twenty-five thousand dollars ($25,000) to the extent
196196 33 deductions under Section 179 of the Internal Revenue Code
197197 34 were not elected as provided in clause (B); and
198198 35 (B) for taxable years beginning after December 31, 2017, the
199199 36 deductions elected under Section 179 of the Internal Revenue
200200 37 Code on property acquired in an exchange if:
201201 38 (i) the exchange would have been eligible for
202202 39 nonrecognition of gain or loss under Section 1031 of the
203203 40 Internal Revenue Code in effect on January 1, 2017;
204204 41 (ii) the exchange is not eligible for nonrecognition of gain or
205205 42 loss under Section 1031 of the Internal Revenue Code; and
206206 2024 IN 1388—LS 6710/DI 119 5
207207 1 (iii) the taxpayer made an election to take deductions under
208208 2 Section 179 of the Internal Revenue Code with regard to the
209209 3 acquired property in the year that the property was placed
210210 4 into service.
211211 5 The amount of deductions allowable for an item of property
212212 6 under this clause may not exceed the amount of adjusted gross
213213 7 income realized on the property that would have been deferred
214214 8 under the Internal Revenue Code in effect on January 1, 2017.
215215 9 (18) Subtract an amount equal to the amount of the taxpayer's
216216 10 qualified military income that was not excluded from the
217217 11 taxpayer's gross income for federal income tax purposes under
218218 12 Section 112 of the Internal Revenue Code.
219219 13 (19) Subtract income that is:
220220 14 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
221221 15 derived from patents); and
222222 16 (B) included in the individual's federal adjusted gross income
223223 17 under the Internal Revenue Code.
224224 18 (20) Add an amount equal to any income not included in gross
225225 19 income as a result of the deferral of income arising from business
226226 20 indebtedness discharged in connection with the reacquisition after
227227 21 December 31, 2008, and before January 1, 2011, of an applicable
228228 22 debt instrument, as provided in Section 108(i) of the Internal
229229 23 Revenue Code. Subtract the amount necessary from the adjusted
230230 24 gross income of any taxpayer that added an amount to adjusted
231231 25 gross income in a previous year to offset the amount included in
232232 26 federal gross income as a result of the deferral of income arising
233233 27 from business indebtedness discharged in connection with the
234234 28 reacquisition after December 31, 2008, and before January 1,
235235 29 2011, of an applicable debt instrument, as provided in Section
236236 30 108(i) of the Internal Revenue Code.
237237 31 (21) Add the amount excluded from federal gross income under
238238 32 Section 103 of the Internal Revenue Code for interest received on
239239 33 an obligation of a state other than Indiana, or a political
240240 34 subdivision of such a state, that is acquired by the taxpayer after
241241 35 December 31, 2011. For purposes of this subdivision:
242242 36 (A) if the taxpayer receives interest from a pass through entity,
243243 37 a regulated investment company, a hedge fund, or similar
244244 38 arrangement, the taxpayer will be considered to have
245245 39 acquired the obligation on the date the entity acquired the
246246 40 obligation;
247247 41 (B) if ownership of the obligation occurs by means other than
248248 42 a purchase, the date of acquisition of the obligation shall be
249249 2024 IN 1388—LS 6710/DI 119 6
250250 1 the date ownership of the obligation was transferred, except
251251 2 to the extent provided in clause (A), and if a portion of the
252252 3 obligation is acquired on multiple dates, the date of
253253 4 acquisition shall be considered separately for each portion of
254254 5 the obligation; and
255255 6 (C) if ownership of the obligation occurred as the result of a
256256 7 refinancing of another obligation, the acquisition date shall be
257257 8 the date on which the obligation was refinanced.
258258 9 (22) Subtract an amount as described in Section 1341(a)(2) of the
259259 10 Internal Revenue Code to the extent, if any, that the amount was
260260 11 previously included in the taxpayer's adjusted gross income for a
261261 12 prior taxable year.
262262 13 (23) For taxable years beginning after December 25, 2016, add an
263263 14 amount equal to the deduction for deferred foreign income that
264264 15 was claimed by the taxpayer for the taxable year under Section
265265 16 965(c) of the Internal Revenue Code.
266266 17 (24) Subtract any interest expense paid or accrued in the current
267267 18 taxable year but not deducted as a result of the limitation imposed
268268 19 under Section 163(j)(1) of the Internal Revenue Code. Add any
269269 20 interest expense paid or accrued in a previous taxable year but
270270 21 allowed as a deduction under Section 163 of the Internal Revenue
271271 22 Code in the current taxable year. For purposes of this subdivision,
272272 23 an interest expense is considered paid or accrued only in the first
273273 24 taxable year the deduction would have been allowable under
274274 25 Section 163 of the Internal Revenue Code if the limitation under
275275 26 Section 163(j)(1) of the Internal Revenue Code did not exist.
276276 27 (25) Subtract the amount that would have been excluded from
277277 28 gross income but for the enactment of Section 118(b)(2) of the
278278 29 Internal Revenue Code for taxable years ending after December
279279 30 22, 2017.
280280 31 (26) For taxable years beginning after December 31, 2019, and
281281 32 before January 1, 2021, add an amount of the deduction claimed
282282 33 under Section 62(a)(22) of the Internal Revenue Code.
283283 34 (27) For taxable years beginning after December 31, 2019, for
284284 35 payments made by an employer under an education assistance
285285 36 program after March 27, 2020:
286286 37 (A) add the amount of payments by an employer that are
287287 38 excluded from the taxpayer's federal gross income under
288288 39 Section 127(c)(1)(B) of the Internal Revenue Code; and
289289 40 (B) deduct the interest allowable under Section 221 of the
290290 41 Internal Revenue Code, if the disallowance under Section
291291 42 221(e)(1) of the Internal Revenue Code did not apply to the
292292 2024 IN 1388—LS 6710/DI 119 7
293293 1 payments described in clause (A). For purposes of applying
294294 2 Section 221(b) of the Internal Revenue Code to the amount
295295 3 allowable under this clause, the amount under clause (A) shall
296296 4 not be added to adjusted gross income.
297297 5 (28) Add an amount equal to the remainder of:
298298 6 (A) the amount allowable as a deduction under Section 274(n)
299299 7 of the Internal Revenue Code; minus
300300 8 (B) the amount otherwise allowable as a deduction under
301301 9 Section 274(n) of the Internal Revenue Code, if Section
302302 10 274(n)(2)(D) of the Internal Revenue Code was not in effect
303303 11 for amounts paid or incurred after December 31, 2020.
304304 12 (29) For taxable years beginning after December 31, 2017, and
305305 13 before January 1, 2021, add an amount equal to the excess
306306 14 business loss of the taxpayer as defined in Section 461(l)(3) of the
307307 15 Internal Revenue Code. In addition:
308308 16 (A) If a taxpayer has an excess business loss under this
309309 17 subdivision and also has modifications under subdivisions (15)
310310 18 and (17) for property placed in service during the taxable year,
311311 19 the taxpayer shall treat a portion of the taxable year
312312 20 modifications for that property as occurring in the taxable year
313313 21 the property is placed in service and a portion of the
314314 22 modifications as occurring in the immediately following
315315 23 taxable year.
316316 24 (B) The portion of the modifications under subdivisions (15)
317317 25 and (17) for property placed in service during the taxable year
318318 26 treated as occurring in the taxable year in which the property
319319 27 is placed in service equals:
320320 28 (i) the modification for the property otherwise determined
321321 29 under this section; minus
322322 30 (ii) the excess business loss disallowed under this
323323 31 subdivision;
324324 32 but not less than zero (0).
325325 33 (C) The portion of the modifications under subdivisions (15)
326326 34 and (17) for property placed in service during the taxable year
327327 35 treated as occurring in the taxable year immediately following
328328 36 the taxable year in which the property is placed in service
329329 37 equals the modification for the property otherwise determined
330330 38 under this section minus the amount in clause (B).
331331 39 (D) Any reallocation of modifications between taxable years
332332 40 under clauses (B) and (C) shall be first allocated to the
333333 41 modification under subdivision (15), then to the modification
334334 42 under subdivision (17).
335335 2024 IN 1388—LS 6710/DI 119 8
336336 1 (30) Add an amount equal to the amount excluded from federal
337337 2 gross income under Section 108(f)(5) of the Internal Revenue
338338 3 Code. For purposes of this subdivision:
339339 4 (A) if an amount excluded under Section 108(f)(5) of the
340340 5 Internal Revenue Code would be excludible under Section
341341 6 108(a)(1)(B) of the Internal Revenue Code, the exclusion
342342 7 under Section 108(a)(1)(B) of the Internal Revenue Code shall
343343 8 take precedence; and
344344 9 (B) if an amount would have been excludible under Section
345345 10 108(f)(5) of the Internal Revenue Code as in effect on January
346346 11 1, 2020, the amount is not required to be added back under this
347347 12 subdivision.
348348 13 (31) For taxable years ending after March 12, 2020, subtract an
349349 14 amount equal to the deduction disallowed pursuant to:
350350 15 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
351351 16 as modified by Sections 206 and 207 of the Taxpayer Certainty
352352 17 and Disaster Relief Tax Act (Division EE of Public Law
353353 18 116-260); and
354354 19 (B) Section 3134(e) of the Internal Revenue Code.
355355 20 (32) Subtract the amount of an ESA annual grant amount and, as
356356 21 applicable, a CSA annual grant amount distributed to a taxpayer's
357357 22 Indiana education scholarship account under IC 20-51.4-4-2
358358 23 IC 20-51.4 that is used for a an ESA or CSA qualified expense (as
359359 24 defined in IC 20-51.4-2-9) IC 20-51.4-2) or to an Indiana
360360 25 enrichment scholarship account under IC 20-52 that is used for
361361 26 qualified expenses (as defined in IC 20-52-2-6), to the extent the
362362 27 distribution used for the qualified expense is included in the
363363 28 taxpayer's federal adjusted gross income under the Internal
364364 29 Revenue Code.
365365 30 (33) For taxable years beginning after December 31, 2019, and
366366 31 before January 1, 2021, add an amount equal to the amount of
367367 32 unemployment compensation excluded from federal gross income
368368 33 under Section 85(c) of the Internal Revenue Code.
369369 34 (34) For taxable years beginning after December 31, 2022,
370370 35 subtract an amount equal to the deduction disallowed under
371371 36 Section 280C(h) of the Internal Revenue Code.
372372 37 (35) For taxable years beginning after December 31, 2021, add
373373 38 or subtract amounts related to specified research or experimental
374374 39 procedures as required under IC 6-3-2-29.
375375 40 (36) Subtract the amount of short term or long term capital
376376 41 gain that is attributable to the sale or exchange of one (1) or
377377 42 more digital assets in a transaction and that is included in
378378 2024 IN 1388—LS 6710/DI 119 9
379379 1 federal adjusted gross income, not to exceed:
380380 2 (A) for taxable years beginning after December 31, 2023,
381381 3 and before January 1, 2025, two hundred dollars ($200)
382382 4 per transaction; and
383383 5 (B) for taxable years beginning after December 31, 2024,
384384 6 an amount per transaction equal to the maximum
385385 7 deduction allowed under this subdivision in the
386386 8 immediately preceding calendar year adjusted by the
387387 9 annual percentage change in the Consumer Price Index for
388388 10 All Urban Consumers published by the federal Bureau of
389389 11 Labor Statistics for the immediately preceding calendar
390390 12 year.
391391 13 (35) (36) (37) Subtract any other amounts the taxpayer is entitled
392392 14 to deduct under IC 6-3-2.
393393 15 (36) (37) (38) Subtract the amount of a CSA annual grant amount
394394 16 distributed to a taxpayer's career scholarship account under
395395 17 IC 20-51.4-4.5 that is used for a CSA qualified expense (as
396396 18 defined in IC 20-51.4-2-3.8), to the extent the distribution used
397397 19 for the CSA qualified expense is included in the taxpayer's federal
398398 20 adjusted gross income under the Internal Revenue Code.
399399 21 (b) In the case of corporations, the same as "taxable income" (as
400400 22 defined in Section 63 of the Internal Revenue Code) adjusted as
401401 23 follows:
402402 24 (1) Subtract income that is exempt from taxation under this article
403403 25 by the Constitution and statutes of the United States.
404404 26 (2) Add an amount equal to any deduction or deductions allowed
405405 27 or allowable pursuant to Section 170 of the Internal Revenue
406406 28 Code (concerning charitable contributions).
407407 29 (3) Except as provided in subsection (c), add an amount equal to
408408 30 any deduction or deductions allowed or allowable pursuant to
409409 31 Section 63 of the Internal Revenue Code for taxes based on or
410410 32 measured by income and levied at the state level by any state of
411411 33 the United States.
412412 34 (4) Subtract an amount equal to the amount included in the
413413 35 corporation's taxable income under Section 78 of the Internal
414414 36 Revenue Code (concerning foreign tax credits).
415415 37 (5) Add or subtract the amount necessary to make the adjusted
416416 38 gross income of any taxpayer that owns property for which bonus
417417 39 depreciation was allowed in the current taxable year or in an
418418 40 earlier taxable year equal to the amount of adjusted gross income
419419 41 that would have been computed had an election not been made
420420 42 under Section 168(k) of the Internal Revenue Code to apply bonus
421421 2024 IN 1388—LS 6710/DI 119 10
422422 1 depreciation to the property in the year that it was placed in
423423 2 service.
424424 3 (6) Add an amount equal to any deduction allowed under Section
425425 4 172 of the Internal Revenue Code (concerning net operating
426426 5 losses).
427427 6 (7) Add or subtract the amount necessary to make the adjusted
428428 7 gross income of any taxpayer that placed Section 179 property (as
429429 8 defined in Section 179 of the Internal Revenue Code) in service
430430 9 in the current taxable year or in an earlier taxable year equal to
431431 10 the amount of adjusted gross income that would have been
432432 11 computed had an election for federal income tax purposes not
433433 12 been made for the year in which the property was placed in
434434 13 service to take deductions under Section 179 of the Internal
435435 14 Revenue Code in a total amount exceeding the sum of:
436436 15 (A) twenty-five thousand dollars ($25,000) to the extent
437437 16 deductions under Section 179 of the Internal Revenue Code
438438 17 were not elected as provided in clause (B); and
439439 18 (B) for taxable years beginning after December 31, 2017, the
440440 19 deductions elected under Section 179 of the Internal Revenue
441441 20 Code on property acquired in an exchange if:
442442 21 (i) the exchange would have been eligible for
443443 22 nonrecognition of gain or loss under Section 1031 of the
444444 23 Internal Revenue Code in effect on January 1, 2017;
445445 24 (ii) the exchange is not eligible for nonrecognition of gain or
446446 25 loss under Section 1031 of the Internal Revenue Code; and
447447 26 (iii) the taxpayer made an election to take deductions under
448448 27 Section 179 of the Internal Revenue Code with regard to the
449449 28 acquired property in the year that the property was placed
450450 29 into service.
451451 30 The amount of deductions allowable for an item of property
452452 31 under this clause may not exceed the amount of adjusted gross
453453 32 income realized on the property that would have been deferred
454454 33 under the Internal Revenue Code in effect on January 1, 2017.
455455 34 (8) Add to the extent required by IC 6-3-2-20:
456456 35 (A) the amount of intangible expenses (as defined in
457457 36 IC 6-3-2-20) for the taxable year that reduced the corporation's
458458 37 taxable income (as defined in Section 63 of the Internal
459459 38 Revenue Code) for federal income tax purposes; and
460460 39 (B) any directly related interest expenses (as defined in
461461 40 IC 6-3-2-20) that reduced the corporation's adjusted gross
462462 41 income (determined without regard to this subdivision). For
463463 42 purposes of this clause, any directly related interest expense
464464 2024 IN 1388—LS 6710/DI 119 11
465465 1 that constitutes business interest within the meaning of Section
466466 2 163(j) of the Internal Revenue Code shall be considered to
467467 3 have reduced the taxpayer's federal taxable income only in the
468468 4 first taxable year in which the deduction otherwise would have
469469 5 been allowable under Section 163 of the Internal Revenue
470470 6 Code if the limitation under Section 163(j)(1) of the Internal
471471 7 Revenue Code did not exist.
472472 8 (9) Add an amount equal to any deduction for dividends paid (as
473473 9 defined in Section 561 of the Internal Revenue Code) to
474474 10 shareholders of a captive real estate investment trust (as defined
475475 11 in section 34.5 of this chapter).
476476 12 (10) Subtract income that is:
477477 13 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
478478 14 derived from patents); and
479479 15 (B) included in the corporation's taxable income under the
480480 16 Internal Revenue Code.
481481 17 (11) Add an amount equal to any income not included in gross
482482 18 income as a result of the deferral of income arising from business
483483 19 indebtedness discharged in connection with the reacquisition after
484484 20 December 31, 2008, and before January 1, 2011, of an applicable
485485 21 debt instrument, as provided in Section 108(i) of the Internal
486486 22 Revenue Code. Subtract from the adjusted gross income of any
487487 23 taxpayer that added an amount to adjusted gross income in a
488488 24 previous year the amount necessary to offset the amount included
489489 25 in federal gross income as a result of the deferral of income
490490 26 arising from business indebtedness discharged in connection with
491491 27 the reacquisition after December 31, 2008, and before January 1,
492492 28 2011, of an applicable debt instrument, as provided in Section
493493 29 108(i) of the Internal Revenue Code.
494494 30 (12) Add the amount excluded from federal gross income under
495495 31 Section 103 of the Internal Revenue Code for interest received on
496496 32 an obligation of a state other than Indiana, or a political
497497 33 subdivision of such a state, that is acquired by the taxpayer after
498498 34 December 31, 2011. For purposes of this subdivision:
499499 35 (A) if the taxpayer receives interest from a pass through entity,
500500 36 a regulated investment company, a hedge fund, or similar
501501 37 arrangement, the taxpayer will be considered to have
502502 38 acquired the obligation on the date the entity acquired the
503503 39 obligation;
504504 40 (B) if ownership of the obligation occurs by means other than
505505 41 a purchase, the date of acquisition of the obligation shall be
506506 42 the date ownership of the obligation was transferred, except
507507 2024 IN 1388—LS 6710/DI 119 12
508508 1 to the extent provided in clause (A), and if a portion of the
509509 2 obligation is acquired on multiple dates, the date of
510510 3 acquisition shall be considered separately for each portion of
511511 4 the obligation; and
512512 5 (C) if ownership of the obligation occurred as the result of a
513513 6 refinancing of another obligation, the acquisition date shall be
514514 7 the date on which the obligation was refinanced.
515515 8 (13) For taxable years beginning after December 25, 2016:
516516 9 (A) for a corporation other than a real estate investment trust,
517517 10 add:
518518 11 (i) an amount equal to the amount reported by the taxpayer
519519 12 on IRC 965 Transition Tax Statement, line 1; or
520520 13 (ii) if the taxpayer deducted an amount under Section 965(c)
521521 14 of the Internal Revenue Code in determining the taxpayer's
522522 15 taxable income for purposes of the federal income tax, the
523523 16 amount deducted under Section 965(c) of the Internal
524524 17 Revenue Code; and
525525 18 (B) for a real estate investment trust, add an amount equal to
526526 19 the deduction for deferred foreign income that was claimed by
527527 20 the taxpayer for the taxable year under Section 965(c) of the
528528 21 Internal Revenue Code, but only to the extent that the taxpayer
529529 22 included income pursuant to Section 965 of the Internal
530530 23 Revenue Code in its taxable income for federal income tax
531531 24 purposes or is required to add back dividends paid under
532532 25 subdivision (9).
533533 26 (14) Add an amount equal to the deduction that was claimed by
534534 27 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
535535 28 Internal Revenue Code (attributable to global intangible
536536 29 low-taxed income). The taxpayer shall separately specify the
537537 30 amount of the reduction under Section 250(a)(1)(B)(i) of the
538538 31 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
539539 32 Internal Revenue Code.
540540 33 (15) Subtract any interest expense paid or accrued in the current
541541 34 taxable year but not deducted as a result of the limitation imposed
542542 35 under Section 163(j)(1) of the Internal Revenue Code. Add any
543543 36 interest expense paid or accrued in a previous taxable year but
544544 37 allowed as a deduction under Section 163 of the Internal Revenue
545545 38 Code in the current taxable year. For purposes of this subdivision,
546546 39 an interest expense is considered paid or accrued only in the first
547547 40 taxable year the deduction would have been allowable under
548548 41 Section 163 of the Internal Revenue Code if the limitation under
549549 42 Section 163(j)(1) of the Internal Revenue Code did not exist.
550550 2024 IN 1388—LS 6710/DI 119 13
551551 1 (16) Subtract the amount that would have been excluded from
552552 2 gross income but for the enactment of Section 118(b)(2) of the
553553 3 Internal Revenue Code for taxable years ending after December
554554 4 22, 2017.
555555 5 (17) Add an amount equal to the remainder of:
556556 6 (A) the amount allowable as a deduction under Section 274(n)
557557 7 of the Internal Revenue Code; minus
558558 8 (B) the amount otherwise allowable as a deduction under
559559 9 Section 274(n) of the Internal Revenue Code, if Section
560560 10 274(n)(2)(D) of the Internal Revenue Code was not in effect
561561 11 for amounts paid or incurred after December 31, 2020.
562562 12 (18) For taxable years ending after March 12, 2020, subtract an
563563 13 amount equal to the deduction disallowed pursuant to:
564564 14 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
565565 15 as modified by Sections 206 and 207 of the Taxpayer Certainty
566566 16 and Disaster Relief Tax Act (Division EE of Public Law
567567 17 116-260); and
568568 18 (B) Section 3134(e) of the Internal Revenue Code.
569569 19 (19) For taxable years beginning after December 31, 2022,
570570 20 subtract an amount equal to the deduction disallowed under
571571 21 Section 280C(h) of the Internal Revenue Code.
572572 22 (20) For taxable years beginning after December 31, 2021,
573573 23 subtract the amount of any:
574574 24 (A) federal, state, or local grant received by the taxpayer; and
575575 25 (B) discharged federal, state, or local indebtedness incurred
576576 26 by the taxpayer;
577577 27 for purposes of providing or expanding access to broadband
578578 28 service in this state.
579579 29 (21) For taxable years beginning after December 31, 2021, add
580580 30 or subtract amounts related to specified research or experimental
581581 31 procedures as required under IC 6-3-2-29.
582582 32 (22) Subtract the amount of short term or long term capital
583583 33 gain that is attributable to the sale or exchange of one (1) or
584584 34 more digital assets in a transaction and that is included in
585585 35 federal adjusted gross income, not to exceed:
586586 36 (A) for taxable years beginning after December 31, 2023,
587587 37 and before January 1, 2025, two hundred dollars ($200)
588588 38 per transaction; and
589589 39 (B) for taxable years beginning after December 31, 2024,
590590 40 an amount per transaction equal to the maximum
591591 41 deduction allowed under this subdivision in the
592592 42 immediately preceding calendar year adjusted by the
593593 2024 IN 1388—LS 6710/DI 119 14
594594 1 annual percentage change in the Consumer Price Index for
595595 2 All Urban Consumers published by the federal Bureau of
596596 3 Labor Statistics for the immediately preceding calendar
597597 4 year.
598598 5 (20) (22) (23) Add or subtract any other amounts the taxpayer is:
599599 6 (A) required to add or subtract; or
600600 7 (B) entitled to deduct;
601601 8 under IC 6-3-2.
602602 9 (c) The following apply to taxable years beginning after December
603603 10 31, 2018, for purposes of the add back of any deduction allowed on the
604604 11 taxpayer's federal income tax return for wagering taxes, as provided in
605605 12 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
606606 13 the taxpayer is a corporation:
607607 14 (1) For taxable years beginning after December 31, 2018, and
608608 15 before January 1, 2020, a taxpayer is required to add back under
609609 16 this section eighty-seven and five-tenths percent (87.5%) of any
610610 17 deduction allowed on the taxpayer's federal income tax return for
611611 18 wagering taxes.
612612 19 (2) For taxable years beginning after December 31, 2019, and
613613 20 before January 1, 2021, a taxpayer is required to add back under
614614 21 this section seventy-five percent (75%) of any deduction allowed
615615 22 on the taxpayer's federal income tax return for wagering taxes.
616616 23 (3) For taxable years beginning after December 31, 2020, and
617617 24 before January 1, 2022, a taxpayer is required to add back under
618618 25 this section sixty-two and five-tenths percent (62.5%) of any
619619 26 deduction allowed on the taxpayer's federal income tax return for
620620 27 wagering taxes.
621621 28 (4) For taxable years beginning after December 31, 2021, and
622622 29 before January 1, 2023, a taxpayer is required to add back under
623623 30 this section fifty percent (50%) of any deduction allowed on the
624624 31 taxpayer's federal income tax return for wagering taxes.
625625 32 (5) For taxable years beginning after December 31, 2022, and
626626 33 before January 1, 2024, a taxpayer is required to add back under
627627 34 this section thirty-seven and five-tenths percent (37.5%) of any
628628 35 deduction allowed on the taxpayer's federal income tax return for
629629 36 wagering taxes.
630630 37 (6) For taxable years beginning after December 31, 2023, and
631631 38 before January 1, 2025, a taxpayer is required to add back under
632632 39 this section twenty-five percent (25%) of any deduction allowed
633633 40 on the taxpayer's federal income tax return for wagering taxes.
634634 41 (7) For taxable years beginning after December 31, 2024, and
635635 42 before January 1, 2026, a taxpayer is required to add back under
636636 2024 IN 1388—LS 6710/DI 119 15
637637 1 this section twelve and five-tenths percent (12.5%) of any
638638 2 deduction allowed on the taxpayer's federal income tax return for
639639 3 wagering taxes.
640640 4 (8) For taxable years beginning after December 31, 2025, a
641641 5 taxpayer is not required to add back under this section any amount
642642 6 of a deduction allowed on the taxpayer's federal income tax return
643643 7 for wagering taxes.
644644 8 (d) In the case of life insurance companies (as defined in Section
645645 9 816(a) of the Internal Revenue Code) that are organized under Indiana
646646 10 law, the same as "life insurance company taxable income" (as defined
647647 11 in Section 801 of the Internal Revenue Code), adjusted as follows:
648648 12 (1) Subtract income that is exempt from taxation under this article
649649 13 by the Constitution and statutes of the United States.
650650 14 (2) Add an amount equal to any deduction allowed or allowable
651651 15 under Section 170 of the Internal Revenue Code (concerning
652652 16 charitable contributions).
653653 17 (3) Add an amount equal to a deduction allowed or allowable
654654 18 under Section 805 or Section 832(c) of the Internal Revenue Code
655655 19 for taxes based on or measured by income and levied at the state
656656 20 level by any state.
657657 21 (4) Subtract an amount equal to the amount included in the
658658 22 company's taxable income under Section 78 of the Internal
659659 23 Revenue Code (concerning foreign tax credits).
660660 24 (5) Add or subtract the amount necessary to make the adjusted
661661 25 gross income of any taxpayer that owns property for which bonus
662662 26 depreciation was allowed in the current taxable year or in an
663663 27 earlier taxable year equal to the amount of adjusted gross income
664664 28 that would have been computed had an election not been made
665665 29 under Section 168(k) of the Internal Revenue Code to apply bonus
666666 30 depreciation to the property in the year that it was placed in
667667 31 service.
668668 32 (6) Add an amount equal to any deduction allowed under Section
669669 33 172 of the Internal Revenue Code (concerning net operating
670670 34 losses).
671671 35 (7) Add or subtract the amount necessary to make the adjusted
672672 36 gross income of any taxpayer that placed Section 179 property (as
673673 37 defined in Section 179 of the Internal Revenue Code) in service
674674 38 in the current taxable year or in an earlier taxable year equal to
675675 39 the amount of adjusted gross income that would have been
676676 40 computed had an election for federal income tax purposes not
677677 41 been made for the year in which the property was placed in
678678 42 service to take deductions under Section 179 of the Internal
679679 2024 IN 1388—LS 6710/DI 119 16
680680 1 Revenue Code in a total amount exceeding the sum of:
681681 2 (A) twenty-five thousand dollars ($25,000) to the extent
682682 3 deductions under Section 179 of the Internal Revenue Code
683683 4 were not elected as provided in clause (B); and
684684 5 (B) for taxable years beginning after December 31, 2017, the
685685 6 deductions elected under Section 179 of the Internal Revenue
686686 7 Code on property acquired in an exchange if:
687687 8 (i) the exchange would have been eligible for
688688 9 nonrecognition of gain or loss under Section 1031 of the
689689 10 Internal Revenue Code in effect on January 1, 2017;
690690 11 (ii) the exchange is not eligible for nonrecognition of gain or
691691 12 loss under Section 1031 of the Internal Revenue Code; and
692692 13 (iii) the taxpayer made an election to take deductions under
693693 14 Section 179 of the Internal Revenue Code with regard to the
694694 15 acquired property in the year that the property was placed
695695 16 into service.
696696 17 The amount of deductions allowable for an item of property
697697 18 under this clause may not exceed the amount of adjusted gross
698698 19 income realized on the property that would have been deferred
699699 20 under the Internal Revenue Code in effect on January 1, 2017.
700700 21 (8) Subtract income that is:
701701 22 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
702702 23 derived from patents); and
703703 24 (B) included in the insurance company's taxable income under
704704 25 the Internal Revenue Code.
705705 26 (9) Add an amount equal to any income not included in gross
706706 27 income as a result of the deferral of income arising from business
707707 28 indebtedness discharged in connection with the reacquisition after
708708 29 December 31, 2008, and before January 1, 2011, of an applicable
709709 30 debt instrument, as provided in Section 108(i) of the Internal
710710 31 Revenue Code. Subtract from the adjusted gross income of any
711711 32 taxpayer that added an amount to adjusted gross income in a
712712 33 previous year the amount necessary to offset the amount included
713713 34 in federal gross income as a result of the deferral of income
714714 35 arising from business indebtedness discharged in connection with
715715 36 the reacquisition after December 31, 2008, and before January 1,
716716 37 2011, of an applicable debt instrument, as provided in Section
717717 38 108(i) of the Internal Revenue Code.
718718 39 (10) Add an amount equal to any exempt insurance income under
719719 40 Section 953(e) of the Internal Revenue Code that is active
720720 41 financing income under Subpart F of Subtitle A, Chapter 1,
721721 42 Subchapter N of the Internal Revenue Code.
722722 2024 IN 1388—LS 6710/DI 119 17
723723 1 (11) Add the amount excluded from federal gross income under
724724 2 Section 103 of the Internal Revenue Code for interest received on
725725 3 an obligation of a state other than Indiana, or a political
726726 4 subdivision of such a state, that is acquired by the taxpayer after
727727 5 December 31, 2011. For purposes of this subdivision:
728728 6 (A) if the taxpayer receives interest from a pass through entity,
729729 7 a regulated investment company, a hedge fund, or similar
730730 8 arrangement, the taxpayer will be considered to have
731731 9 acquired the obligation on the date the entity acquired the
732732 10 obligation;
733733 11 (B) if ownership of the obligation occurs by means other than
734734 12 a purchase, the date of acquisition of the obligation shall be
735735 13 the date ownership of the obligation was transferred, except
736736 14 to the extent provided in clause (A), and if a portion of the
737737 15 obligation is acquired on multiple dates, the date of
738738 16 acquisition shall be considered separately for each portion of
739739 17 the obligation; and
740740 18 (C) if ownership of the obligation occurred as the result of a
741741 19 refinancing of another obligation, the acquisition date shall be
742742 20 the date on which the obligation was refinanced.
743743 21 (12) For taxable years beginning after December 25, 2016, add:
744744 22 (A) an amount equal to the amount reported by the taxpayer on
745745 23 IRC 965 Transition Tax Statement, line 1; or
746746 24 (B) if the taxpayer deducted an amount under Section 965(c)
747747 25 of the Internal Revenue Code in determining the taxpayer's
748748 26 taxable income for purposes of the federal income tax, the
749749 27 amount deducted under Section 965(c) of the Internal Revenue
750750 28 Code.
751751 29 (13) Add an amount equal to the deduction that was claimed by
752752 30 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
753753 31 Internal Revenue Code (attributable to global intangible
754754 32 low-taxed income). The taxpayer shall separately specify the
755755 33 amount of the reduction under Section 250(a)(1)(B)(i) of the
756756 34 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
757757 35 Internal Revenue Code.
758758 36 (14) Subtract any interest expense paid or accrued in the current
759759 37 taxable year but not deducted as a result of the limitation imposed
760760 38 under Section 163(j)(1) of the Internal Revenue Code. Add any
761761 39 interest expense paid or accrued in a previous taxable year but
762762 40 allowed as a deduction under Section 163 of the Internal Revenue
763763 41 Code in the current taxable year. For purposes of this subdivision,
764764 42 an interest expense is considered paid or accrued only in the first
765765 2024 IN 1388—LS 6710/DI 119 18
766766 1 taxable year the deduction would have been allowable under
767767 2 Section 163 of the Internal Revenue Code if the limitation under
768768 3 Section 163(j)(1) of the Internal Revenue Code did not exist.
769769 4 (15) Subtract the amount that would have been excluded from
770770 5 gross income but for the enactment of Section 118(b)(2) of the
771771 6 Internal Revenue Code for taxable years ending after December
772772 7 22, 2017.
773773 8 (16) Add an amount equal to the remainder of:
774774 9 (A) the amount allowable as a deduction under Section 274(n)
775775 10 of the Internal Revenue Code; minus
776776 11 (B) the amount otherwise allowable as a deduction under
777777 12 Section 274(n) of the Internal Revenue Code, if Section
778778 13 274(n)(2)(D) of the Internal Revenue Code was not in effect
779779 14 for amounts paid or incurred after December 31, 2020.
780780 15 (17) For taxable years ending after March 12, 2020, subtract an
781781 16 amount equal to the deduction disallowed pursuant to:
782782 17 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
783783 18 as modified by Sections 206 and 207 of the Taxpayer Certainty
784784 19 and Disaster Relief Tax Act (Division EE of Public Law
785785 20 116-260); and
786786 21 (B) Section 3134(e) of the Internal Revenue Code.
787787 22 (18) For taxable years beginning after December 31, 2022,
788788 23 subtract an amount equal to the deduction disallowed under
789789 24 Section 280C(h) of the Internal Revenue Code.
790790 25 (19) For taxable years beginning after December 31, 2021, add
791791 26 or subtract amounts related to specified research or experimental
792792 27 procedures as required under IC 6-3-2-29.
793793 28 (20) Subtract the amount of short term or long term capital
794794 29 gain that is attributable to the sale or exchange of one (1) or
795795 30 more digital assets in a transaction and that is included in
796796 31 federal adjusted gross income, not to exceed:
797797 32 (A) for taxable years beginning after December 31, 2023,
798798 33 and before January 1, 2025, two hundred dollars ($200)
799799 34 per transaction; and
800800 35 (B) for taxable years beginning after December 31, 2024,
801801 36 an amount per transaction equal to the maximum
802802 37 deduction allowed under this subdivision in the
803803 38 immediately preceding calendar year adjusted by the
804804 39 annual percentage change in the Consumer Price Index for
805805 40 All Urban Consumers published by the federal Bureau of
806806 41 Labor Statistics for the immediately preceding calendar
807807 42 year.
808808 2024 IN 1388—LS 6710/DI 119 19
809809 1 (19) (20) (21) Add or subtract any other amounts the taxpayer is:
810810 2 (A) required to add or subtract; or
811811 3 (B) entitled to deduct;
812812 4 under IC 6-3-2.
813813 5 (e) In the case of insurance companies subject to tax under Section
814814 6 831 of the Internal Revenue Code and organized under Indiana law, the
815815 7 same as "taxable income" (as defined in Section 832 of the Internal
816816 8 Revenue Code), adjusted as follows:
817817 9 (1) Subtract income that is exempt from taxation under this article
818818 10 by the Constitution and statutes of the United States.
819819 11 (2) Add an amount equal to any deduction allowed or allowable
820820 12 under Section 170 of the Internal Revenue Code (concerning
821821 13 charitable contributions).
822822 14 (3) Add an amount equal to a deduction allowed or allowable
823823 15 under Section 805 or Section 832(c) of the Internal Revenue Code
824824 16 for taxes based on or measured by income and levied at the state
825825 17 level by any state.
826826 18 (4) Subtract an amount equal to the amount included in the
827827 19 company's taxable income under Section 78 of the Internal
828828 20 Revenue Code (concerning foreign tax credits).
829829 21 (5) Add or subtract the amount necessary to make the adjusted
830830 22 gross income of any taxpayer that owns property for which bonus
831831 23 depreciation was allowed in the current taxable year or in an
832832 24 earlier taxable year equal to the amount of adjusted gross income
833833 25 that would have been computed had an election not been made
834834 26 under Section 168(k) of the Internal Revenue Code to apply bonus
835835 27 depreciation to the property in the year that it was placed in
836836 28 service.
837837 29 (6) Add an amount equal to any deduction allowed under Section
838838 30 172 of the Internal Revenue Code (concerning net operating
839839 31 losses).
840840 32 (7) Add or subtract the amount necessary to make the adjusted
841841 33 gross income of any taxpayer that placed Section 179 property (as
842842 34 defined in Section 179 of the Internal Revenue Code) in service
843843 35 in the current taxable year or in an earlier taxable year equal to
844844 36 the amount of adjusted gross income that would have been
845845 37 computed had an election for federal income tax purposes not
846846 38 been made for the year in which the property was placed in
847847 39 service to take deductions under Section 179 of the Internal
848848 40 Revenue Code in a total amount exceeding the sum of:
849849 41 (A) twenty-five thousand dollars ($25,000) to the extent
850850 42 deductions under Section 179 of the Internal Revenue Code
851851 2024 IN 1388—LS 6710/DI 119 20
852852 1 were not elected as provided in clause (B); and
853853 2 (B) for taxable years beginning after December 31, 2017, the
854854 3 deductions elected under Section 179 of the Internal Revenue
855855 4 Code on property acquired in an exchange if:
856856 5 (i) the exchange would have been eligible for
857857 6 nonrecognition of gain or loss under Section 1031 of the
858858 7 Internal Revenue Code in effect on January 1, 2017;
859859 8 (ii) the exchange is not eligible for nonrecognition of gain or
860860 9 loss under Section 1031 of the Internal Revenue Code; and
861861 10 (iii) the taxpayer made an election to take deductions under
862862 11 Section 179 of the Internal Revenue Code with regard to the
863863 12 acquired property in the year that the property was placed
864864 13 into service.
865865 14 The amount of deductions allowable for an item of property
866866 15 under this clause may not exceed the amount of adjusted gross
867867 16 income realized on the property that would have been deferred
868868 17 under the Internal Revenue Code in effect on January 1, 2017.
869869 18 (8) Subtract income that is:
870870 19 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
871871 20 derived from patents); and
872872 21 (B) included in the insurance company's taxable income under
873873 22 the Internal Revenue Code.
874874 23 (9) Add an amount equal to any income not included in gross
875875 24 income as a result of the deferral of income arising from business
876876 25 indebtedness discharged in connection with the reacquisition after
877877 26 December 31, 2008, and before January 1, 2011, of an applicable
878878 27 debt instrument, as provided in Section 108(i) of the Internal
879879 28 Revenue Code. Subtract from the adjusted gross income of any
880880 29 taxpayer that added an amount to adjusted gross income in a
881881 30 previous year the amount necessary to offset the amount included
882882 31 in federal gross income as a result of the deferral of income
883883 32 arising from business indebtedness discharged in connection with
884884 33 the reacquisition after December 31, 2008, and before January 1,
885885 34 2011, of an applicable debt instrument, as provided in Section
886886 35 108(i) of the Internal Revenue Code.
887887 36 (10) Add an amount equal to any exempt insurance income under
888888 37 Section 953(e) of the Internal Revenue Code that is active
889889 38 financing income under Subpart F of Subtitle A, Chapter 1,
890890 39 Subchapter N of the Internal Revenue Code.
891891 40 (11) Add the amount excluded from federal gross income under
892892 41 Section 103 of the Internal Revenue Code for interest received on
893893 42 an obligation of a state other than Indiana, or a political
894894 2024 IN 1388—LS 6710/DI 119 21
895895 1 subdivision of such a state, that is acquired by the taxpayer after
896896 2 December 31, 2011. For purposes of this subdivision:
897897 3 (A) if the taxpayer receives interest from a pass through entity,
898898 4 a regulated investment company, a hedge fund, or similar
899899 5 arrangement, the taxpayer will be considered to have
900900 6 acquired the obligation on the date the entity acquired the
901901 7 obligation;
902902 8 (B) if ownership of the obligation occurs by means other than
903903 9 a purchase, the date of acquisition of the obligation shall be
904904 10 the date ownership of the obligation was transferred, except
905905 11 to the extent provided in clause (A), and if a portion of the
906906 12 obligation is acquired on multiple dates, the date of
907907 13 acquisition shall be considered separately for each portion of
908908 14 the obligation; and
909909 15 (C) if ownership of the obligation occurred as the result of a
910910 16 refinancing of another obligation, the acquisition date shall be
911911 17 the date on which the obligation was refinanced.
912912 18 (12) For taxable years beginning after December 25, 2016, add:
913913 19 (A) an amount equal to the amount reported by the taxpayer on
914914 20 IRC 965 Transition Tax Statement, line 1; or
915915 21 (B) if the taxpayer deducted an amount under Section 965(c)
916916 22 of the Internal Revenue Code in determining the taxpayer's
917917 23 taxable income for purposes of the federal income tax, the
918918 24 amount deducted under Section 965(c) of the Internal Revenue
919919 25 Code.
920920 26 (13) Add an amount equal to the deduction that was claimed by
921921 27 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
922922 28 Internal Revenue Code (attributable to global intangible
923923 29 low-taxed income). The taxpayer shall separately specify the
924924 30 amount of the reduction under Section 250(a)(1)(B)(i) of the
925925 31 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
926926 32 Internal Revenue Code.
927927 33 (14) Subtract any interest expense paid or accrued in the current
928928 34 taxable year but not deducted as a result of the limitation imposed
929929 35 under Section 163(j)(1) of the Internal Revenue Code. Add any
930930 36 interest expense paid or accrued in a previous taxable year but
931931 37 allowed as a deduction under Section 163 of the Internal Revenue
932932 38 Code in the current taxable year. For purposes of this subdivision,
933933 39 an interest expense is considered paid or accrued only in the first
934934 40 taxable year the deduction would have been allowable under
935935 41 Section 163 of the Internal Revenue Code if the limitation under
936936 42 Section 163(j)(1) of the Internal Revenue Code did not exist.
937937 2024 IN 1388—LS 6710/DI 119 22
938938 1 (15) Subtract the amount that would have been excluded from
939939 2 gross income but for the enactment of Section 118(b)(2) of the
940940 3 Internal Revenue Code for taxable years ending after December
941941 4 22, 2017.
942942 5 (16) Add an amount equal to the remainder of:
943943 6 (A) the amount allowable as a deduction under Section 274(n)
944944 7 of the Internal Revenue Code; minus
945945 8 (B) the amount otherwise allowable as a deduction under
946946 9 Section 274(n) of the Internal Revenue Code, if Section
947947 10 274(n)(2)(D) of the Internal Revenue Code was not in effect
948948 11 for amounts paid or incurred after December 31, 2020.
949949 12 (17) For taxable years ending after March 12, 2020, subtract an
950950 13 amount equal to the deduction disallowed pursuant to:
951951 14 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
952952 15 as modified by Sections 206 and 207 of the Taxpayer Certainty
953953 16 and Disaster Relief Tax Act (Division EE of Public Law
954954 17 116-260); and
955955 18 (B) Section 3134(e) of the Internal Revenue Code.
956956 19 (18) For taxable years beginning after December 31, 2022,
957957 20 subtract an amount equal to the deduction disallowed under
958958 21 Section 280C(h) of the Internal Revenue Code.
959959 22 (19) For taxable years beginning after December 31, 2021, add
960960 23 or subtract amounts related to specified research or experimental
961961 24 procedures as required under IC 6-3-2-29.
962962 25 (20) Subtract the amount of short term or long term capital
963963 26 gain that is attributable to the sale or exchange of one (1) or
964964 27 more digital assets in a transaction and that is included in
965965 28 federal adjusted gross income, not to exceed:
966966 29 (A) for taxable years beginning after December 31, 2023,
967967 30 and before January 1, 2025, two hundred dollars ($200)
968968 31 per transaction; and
969969 32 (B) for taxable years beginning after December 31, 2024,
970970 33 an amount per transaction equal to the maximum
971971 34 deduction allowed under this subdivision in the
972972 35 immediately preceding calendar year adjusted by the
973973 36 annual percentage change in the Consumer Price Index for
974974 37 All Urban Consumers published by the federal Bureau of
975975 38 Labor Statistics for the immediately preceding calendar
976976 39 year.
977977 40 (19) (20) (21) Add or subtract any other amounts the taxpayer is:
978978 41 (A) required to add or subtract; or
979979 42 (B) entitled to deduct;
980980 2024 IN 1388—LS 6710/DI 119 23
981981 1 under IC 6-3-2.
982982 2 (f) In the case of trusts and estates, "taxable income" (as defined for
983983 3 trusts and estates in Section 641(b) of the Internal Revenue Code)
984984 4 adjusted as follows:
985985 5 (1) Subtract income that is exempt from taxation under this article
986986 6 by the Constitution and statutes of the United States.
987987 7 (2) Subtract an amount equal to the amount of a September 11
988988 8 terrorist attack settlement payment included in the federal
989989 9 adjusted gross income of the estate of a victim of the September
990990 10 11 terrorist attack or a trust to the extent the trust benefits a victim
991991 11 of the September 11 terrorist attack.
992992 12 (3) Add or subtract the amount necessary to make the adjusted
993993 13 gross income of any taxpayer that owns property for which bonus
994994 14 depreciation was allowed in the current taxable year or in an
995995 15 earlier taxable year equal to the amount of adjusted gross income
996996 16 that would have been computed had an election not been made
997997 17 under Section 168(k) of the Internal Revenue Code to apply bonus
998998 18 depreciation to the property in the year that it was placed in
999999 19 service.
10001000 20 (4) Add an amount equal to any deduction allowed under Section
10011001 21 172 of the Internal Revenue Code (concerning net operating
10021002 22 losses).
10031003 23 (5) Add or subtract the amount necessary to make the adjusted
10041004 24 gross income of any taxpayer that placed Section 179 property (as
10051005 25 defined in Section 179 of the Internal Revenue Code) in service
10061006 26 in the current taxable year or in an earlier taxable year equal to
10071007 27 the amount of adjusted gross income that would have been
10081008 28 computed had an election for federal income tax purposes not
10091009 29 been made for the year in which the property was placed in
10101010 30 service to take deductions under Section 179 of the Internal
10111011 31 Revenue Code in a total amount exceeding the sum of:
10121012 32 (A) twenty-five thousand dollars ($25,000) to the extent
10131013 33 deductions under Section 179 of the Internal Revenue Code
10141014 34 were not elected as provided in clause (B); and
10151015 35 (B) for taxable years beginning after December 31, 2017, the
10161016 36 deductions elected under Section 179 of the Internal Revenue
10171017 37 Code on property acquired in an exchange if:
10181018 38 (i) the exchange would have been eligible for
10191019 39 nonrecognition of gain or loss under Section 1031 of the
10201020 40 Internal Revenue Code in effect on January 1, 2017;
10211021 41 (ii) the exchange is not eligible for nonrecognition of gain or
10221022 42 loss under Section 1031 of the Internal Revenue Code; and
10231023 2024 IN 1388—LS 6710/DI 119 24
10241024 1 (iii) the taxpayer made an election to take deductions under
10251025 2 Section 179 of the Internal Revenue Code with regard to the
10261026 3 acquired property in the year that the property was placed
10271027 4 into service.
10281028 5 The amount of deductions allowable for an item of property
10291029 6 under this clause may not exceed the amount of adjusted gross
10301030 7 income realized on the property that would have been deferred
10311031 8 under the Internal Revenue Code in effect on January 1, 2017.
10321032 9 (6) Subtract income that is:
10331033 10 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
10341034 11 derived from patents); and
10351035 12 (B) included in the taxpayer's taxable income under the
10361036 13 Internal Revenue Code.
10371037 14 (7) Add an amount equal to any income not included in gross
10381038 15 income as a result of the deferral of income arising from business
10391039 16 indebtedness discharged in connection with the reacquisition after
10401040 17 December 31, 2008, and before January 1, 2011, of an applicable
10411041 18 debt instrument, as provided in Section 108(i) of the Internal
10421042 19 Revenue Code. Subtract from the adjusted gross income of any
10431043 20 taxpayer that added an amount to adjusted gross income in a
10441044 21 previous year the amount necessary to offset the amount included
10451045 22 in federal gross income as a result of the deferral of income
10461046 23 arising from business indebtedness discharged in connection with
10471047 24 the reacquisition after December 31, 2008, and before January 1,
10481048 25 2011, of an applicable debt instrument, as provided in Section
10491049 26 108(i) of the Internal Revenue Code.
10501050 27 (8) Add the amount excluded from federal gross income under
10511051 28 Section 103 of the Internal Revenue Code for interest received on
10521052 29 an obligation of a state other than Indiana, or a political
10531053 30 subdivision of such a state, that is acquired by the taxpayer after
10541054 31 December 31, 2011. For purposes of this subdivision:
10551055 32 (A) if the taxpayer receives interest from a pass through entity,
10561056 33 a regulated investment company, a hedge fund, or similar
10571057 34 arrangement, the taxpayer will be considered to have
10581058 35 acquired the obligation on the date the entity acquired the
10591059 36 obligation;
10601060 37 (B) if ownership of the obligation occurs by means other than
10611061 38 a purchase, the date of acquisition of the obligation shall be
10621062 39 the date ownership of the obligation was transferred, except
10631063 40 to the extent provided in clause (A), and if a portion of the
10641064 41 obligation is acquired on multiple dates, the date of
10651065 42 acquisition shall be considered separately for each portion of
10661066 2024 IN 1388—LS 6710/DI 119 25
10671067 1 the obligation; and
10681068 2 (C) if ownership of the obligation occurred as the result of a
10691069 3 refinancing of another obligation, the acquisition date shall be
10701070 4 the date on which the obligation was refinanced.
10711071 5 (9) For taxable years beginning after December 25, 2016, add an
10721072 6 amount equal to:
10731073 7 (A) the amount reported by the taxpayer on IRC 965
10741074 8 Transition Tax Statement, line 1;
10751075 9 (B) if the taxpayer deducted an amount under Section 965(c)
10761076 10 of the Internal Revenue Code in determining the taxpayer's
10771077 11 taxable income for purposes of the federal income tax, the
10781078 12 amount deducted under Section 965(c) of the Internal Revenue
10791079 13 Code; and
10801080 14 (C) with regard to any amounts of income under Section 965
10811081 15 of the Internal Revenue Code distributed by the taxpayer, the
10821082 16 deduction under Section 965(c) of the Internal Revenue Code
10831083 17 attributable to such distributed amounts and not reported to the
10841084 18 beneficiary.
10851085 19 For purposes of this article, the amount required to be added back
10861086 20 under clause (B) is not considered to be distributed or
10871087 21 distributable to a beneficiary of the estate or trust for purposes of
10881088 22 Sections 651 and 661 of the Internal Revenue Code.
10891089 23 (10) Subtract any interest expense paid or accrued in the current
10901090 24 taxable year but not deducted as a result of the limitation imposed
10911091 25 under Section 163(j)(1) of the Internal Revenue Code. Add any
10921092 26 interest expense paid or accrued in a previous taxable year but
10931093 27 allowed as a deduction under Section 163 of the Internal Revenue
10941094 28 Code in the current taxable year. For purposes of this subdivision,
10951095 29 an interest expense is considered paid or accrued only in the first
10961096 30 taxable year the deduction would have been allowable under
10971097 31 Section 163 of the Internal Revenue Code if the limitation under
10981098 32 Section 163(j)(1) of the Internal Revenue Code did not exist.
10991099 33 (11) Add an amount equal to the deduction for qualified business
11001100 34 income that was claimed by the taxpayer for the taxable year
11011101 35 under Section 199A of the Internal Revenue Code.
11021102 36 (12) Subtract the amount that would have been excluded from
11031103 37 gross income but for the enactment of Section 118(b)(2) of the
11041104 38 Internal Revenue Code for taxable years ending after December
11051105 39 22, 2017.
11061106 40 (13) Add an amount equal to the remainder of:
11071107 41 (A) the amount allowable as a deduction under Section 274(n)
11081108 42 of the Internal Revenue Code; minus
11091109 2024 IN 1388—LS 6710/DI 119 26
11101110 1 (B) the amount otherwise allowable as a deduction under
11111111 2 Section 274(n) of the Internal Revenue Code, if Section
11121112 3 274(n)(2)(D) of the Internal Revenue Code was not in effect
11131113 4 for amounts paid or incurred after December 31, 2020.
11141114 5 (14) For taxable years beginning after December 31, 2017, and
11151115 6 before January 1, 2021, add an amount equal to the excess
11161116 7 business loss of the taxpayer as defined in Section 461(l)(3) of the
11171117 8 Internal Revenue Code. In addition:
11181118 9 (A) If a taxpayer has an excess business loss under this
11191119 10 subdivision and also has modifications under subdivisions (3)
11201120 11 and (5) for property placed in service during the taxable year,
11211121 12 the taxpayer shall treat a portion of the taxable year
11221122 13 modifications for that property as occurring in the taxable year
11231123 14 the property is placed in service and a portion of the
11241124 15 modifications as occurring in the immediately following
11251125 16 taxable year.
11261126 17 (B) The portion of the modifications under subdivisions (3)
11271127 18 and (5) for property placed in service during the taxable year
11281128 19 treated as occurring in the taxable year in which the property
11291129 20 is placed in service equals:
11301130 21 (i) the modification for the property otherwise determined
11311131 22 under this section; minus
11321132 23 (ii) the excess business loss disallowed under this
11331133 24 subdivision;
11341134 25 but not less than zero (0).
11351135 26 (C) The portion of the modifications under subdivisions (3)
11361136 27 and (5) for property placed in service during the taxable year
11371137 28 treated as occurring in the taxable year immediately following
11381138 29 the taxable year in which the property is placed in service
11391139 30 equals the modification for the property otherwise determined
11401140 31 under this section minus the amount in clause (B).
11411141 32 (D) Any reallocation of modifications between taxable years
11421142 33 under clauses (B) and (C) shall be first allocated to the
11431143 34 modification under subdivision (3), then to the modification
11441144 35 under subdivision (5).
11451145 36 (15) For taxable years ending after March 12, 2020, subtract an
11461146 37 amount equal to the deduction disallowed pursuant to:
11471147 38 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
11481148 39 as modified by Sections 206 and 207 of the Taxpayer Certainty
11491149 40 and Disaster Relief Tax Act (Division EE of Public Law
11501150 41 116-260); and
11511151 42 (B) Section 3134(e) of the Internal Revenue Code.
11521152 2024 IN 1388—LS 6710/DI 119 27
11531153 1 (16) For taxable years beginning after December 31, 2022,
11541154 2 subtract an amount equal to the deduction disallowed under
11551155 3 Section 280C(h) of the Internal Revenue Code.
11561156 4 (17) Except as provided in subsection (c), for taxable years
11571157 5 beginning after December 31, 2022, add an amount equal to any
11581158 6 deduction or deductions allowed or allowable in determining
11591159 7 taxable income under Section 641(b) of the Internal Revenue
11601160 8 Code for taxes based on or measured by income and levied at the
11611161 9 state level by any state of the United States.
11621162 10 (18) For taxable years beginning after December 31, 2021, add
11631163 11 or subtract amounts related to specified research or experimental
11641164 12 procedures as required under IC 6-3-2-29.
11651165 13 (19) Subtract the amount of short term or long term capital
11661166 14 gain that is attributable to the sale or exchange of one (1) or
11671167 15 more digital assets in a transaction and that is included in
11681168 16 federal adjusted gross income, not to exceed:
11691169 17 (A) for taxable years beginning after December 31, 2023,
11701170 18 and before January 1, 2025, two hundred dollars ($200)
11711171 19 per transaction; and
11721172 20 (B) for taxable years beginning after December 31, 2024,
11731173 21 an amount per transaction equal to the maximum
11741174 22 deduction allowed under this subdivision in the
11751175 23 immediately preceding calendar year adjusted by the
11761176 24 annual percentage change in the Consumer Price Index for
11771177 25 All Urban Consumers published by the federal Bureau of
11781178 26 Labor Statistics for the immediately preceding calendar
11791179 27 year.
11801180 28 (18) (19) (20) Add or subtract any other amounts the taxpayer is:
11811181 29 (A) required to add or subtract; or
11821182 30 (B) entitled to deduct;
11831183 31 under IC 6-3-2.
11841184 32 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
11851185 33 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
11861186 34 "adjusted gross income" of a pass through entity means the aggregate
11871187 35 of items of ordinary income and loss in the case of a partnership or a
11881188 36 corporation described in IC 6-3-2-2.8(2), or aggregate distributable net
11891189 37 income of a trust or estate as defined in Section 643 of the Internal
11901190 38 Revenue Code, distributions subject to tax for state and federal income
11911191 39 tax for beneficiaries in the case of a trust or estate, whichever is
11921192 40 applicable, for the taxable year modified as follows:
11931193 41 (1) Add the separately stated items of income and gains, or the
11941194 42 equivalent items that must be considered separately by a
11951195 2024 IN 1388—LS 6710/DI 119 28
11961196 1 beneficiary, as determined for federal purposes, attributed to the
11971197 2 partners, shareholders, or beneficiaries of the pass through entity,
11981198 3 determined without regard to whether the owner is permitted to
11991199 4 exclude all or part of the income or gain or deduct any amount
12001200 5 against the income or gain.
12011201 6 (2) Subtract the separately stated items of deductions or losses or
12021202 7 items that must be considered separately by beneficiaries, as
12031203 8 determined for federal purposes, attributed to partners,
12041204 9 shareholders, or beneficiaries of the pass through entity and that
12051205 10 are deductible by an individual in determining adjusted gross
12061206 11 income as defined under Section 62 of the Internal Revenue
12071207 12 Code:
12081208 13 (A) limited as if the partners, shareholders, and beneficiaries
12091209 14 deducted the maximum allowable loss or deduction allowable
12101210 15 for the taxable year prior to any amount deductible from the
12111211 16 pass through entity; but
12121212 17 (B) not considering any disallowance of deductions resulting
12131213 18 from federal basis limitations for the partner, shareholder, or
12141214 19 beneficiary.
12151215 20 (3) Add or subtract any modifications to adjusted gross income
12161216 21 that would be required both for individuals under subsection (a)
12171217 22 and corporations under subsection (b) to the extent otherwise
12181218 23 provided in those subsections, including amounts that are
12191219 24 allowable for which such modifications are necessary to account
12201220 25 for separately stated items in subdivision (1) or (2).
12211221 26 (h) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(18) (a)(36),
12221222 27 (b)(22), (d)(20), (e)(20), or (f)(19) (a)(37), (b)(23), (d)(21), (e)(21), or
12231223 28 (f)(20) may not be construed to require an add back or allow a
12241224 29 deduction or exemption more than once for a particular add back,
12251225 30 deduction, or exemption.
12261226 31 (i) For taxable years beginning after December 25, 2016, if:
12271227 32 (1) a taxpayer is a shareholder, either directly or indirectly, in a
12281228 33 corporation that is an E&P deficit foreign corporation as defined
12291229 34 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
12301230 35 earnings and profit deficit, or a portion of the earnings and profit
12311231 36 deficit, of the E&P deficit foreign corporation is permitted to
12321232 37 reduce the federal adjusted gross income or federal taxable
12331233 38 income of the taxpayer, the deficit, or the portion of the deficit,
12341234 39 shall also reduce the amount taxable under this section to the
12351235 40 extent permitted under the Internal Revenue Code, however, in no
12361236 41 case shall this permit a reduction in the amount taxable under
12371237 42 Section 965 of the Internal Revenue Code for purposes of this
12381238 2024 IN 1388—LS 6710/DI 119 29
12391239 1 section to be less than zero (0); and
12401240 2 (2) the Internal Revenue Service issues guidance that such an
12411241 3 income or deduction is not reported directly on a federal tax
12421242 4 return or is to be reported in a manner different than specified in
12431243 5 this section, this section shall be construed as if federal adjusted
12441244 6 gross income or federal taxable income included the income or
12451245 7 deduction.
12461246 8 (j) If a partner is required to include an item of income, a deduction,
12471247 9 or another tax attribute in the partner's adjusted gross income tax return
12481248 10 pursuant to IC 6-3-4.5, such item shall be considered to be includible
12491249 11 in the partner's federal adjusted gross income or federal taxable
12501250 12 income, regardless of whether such item is actually required to be
12511251 13 reported by the partner for federal income tax purposes. For purposes
12521252 14 of this subsection:
12531253 15 (1) items for which a valid election is made under IC 6-3-4.5-6,
12541254 16 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
12551255 17 in the partner's adjusted gross income or taxable income; and
12561256 18 (2) items for which the partnership did not make an election under
12571257 19 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
12581258 20 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
12591259 21 shall be included in the partner's adjusted gross income or taxable
12601260 22 income.
12611261 23 (k) The following apply for purposes of this section:
12621262 24 (1) For purposes of subsections (b) and (f), if a taxpayer is an
12631263 25 organization that has more than one (1) trade or business subject
12641264 26 to the provisions of Section 512(a)(6) of the Internal Revenue
12651265 27 Code, the following rules apply for taxable years beginning after
12661266 28 December 31, 2017:
12671267 29 (A) If a trade or business has federal unrelated business
12681268 30 taxable income of zero (0) or greater for a taxable year, the
12691269 31 unrelated business taxable income and modifications required
12701270 32 under this section shall be combined in determining the
12711271 33 adjusted gross income of the taxpayer and shall not be treated
12721272 34 as being subject to the provisions of Section 512(a)(6) of the
12731273 35 Internal Revenue Code if one (1) or more trades or businesses
12741274 36 have negative Indiana adjusted gross income after
12751275 37 adjustments.
12761276 38 (B) If a trade or business has federal unrelated business
12771277 39 taxable income of less than zero (0) for a taxable year, the
12781278 40 taxpayer shall apply the modifications under this section for
12791279 41 the taxable year against the net operating loss in the manner
12801280 42 required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for separately
12811281 2024 IN 1388—LS 6710/DI 119 30
12821282 1 stated net operating losses. However, if the application of
12831283 2 modifications required under IC 6-3-2-2.5 or IC 6-3-2-2.6
12841284 3 results in the separately stated net operating loss for the trade
12851285 4 or business being zero (0), the modifications that increase
12861286 5 adjusted gross income under this section and remain after the
12871287 6 calculations to adjust the separately stated net operating loss
12881288 7 to zero (0) that result from the trade or business must be
12891289 8 treated as modifications to which clause (A) applies for the
12901290 9 taxable year.
12911291 10 (C) If a trade or business otherwise described in Section
12921292 11 512(a)(6) of the Internal Revenue Code incurred a net
12931293 12 operating loss for a taxable year beginning after December
12941294 13 31, 2017, and before January 1, 2021, and the net operating
12951295 14 loss was carried back for federal tax purposes:
12961296 15 (i) if the loss was carried back to a taxable year for which
12971297 16 the requirements under Section 512(a)(6) of the Internal
12981298 17 Revenue Code did not apply, the portion of the loss and
12991299 18 modifications attributable to the loss shall be treated as
13001300 19 adjusted gross income of the taxpayer for the first taxable
13011301 20 year of the taxpayer beginning after December 31, 2022,
13021302 21 and shall be treated as part of the adjusted gross income
13031303 22 attributable to clause (A), unless, and to the extent, the loss
13041304 23 and modifications were applied to adjusted gross income for
13051305 24 a previous taxable year, as determined under this article;
13061306 25 and
13071307 26 (ii) if the loss was carried back to a taxable year for which
13081308 27 the requirements under Section 512(a)(6) of the Internal
13091309 28 Revenue Code applied, the portion of the loss and
13101310 29 modifications attributable to the loss shall be treated as
13111311 30 adjusted gross income of the taxpayer for the first taxable
13121312 31 year of the taxpayer beginning after December 31, 2022,
13131313 32 and for purposes of this clause, the inclusion of losses and
13141314 33 modifications shall be in the same manner as provided in
13151315 34 clause (B), unless, and to the extent, the loss and
13161316 35 modifications were applied to adjusted gross income for a
13171317 36 previous taxable year, as determined under this article.
13181318 37 (D) Notwithstanding any provision in this subdivision, if a
13191319 38 taxpayer computed its adjusted gross income for a taxable
13201320 39 year beginning before January 1, 2023, based on a reasonable
13211321 40 interpretation of this article, the taxpayer shall be permitted
13221322 41 to compute its adjusted gross income for those taxable years
13231323 42 based on that interpretation. However, a taxpayer must
13241324 2024 IN 1388—LS 6710/DI 119 31
13251325 1 continue to report any tax attributes for taxable years
13261326 2 beginning after December 31, 2022, in a manner consistent
13271327 3 with its previous interpretation.
13281328 4 (2) In the case of a corporation, other than a captive real estate
13291329 5 investment trust, for which the adjusted gross income under this
13301330 6 article is determined after a deduction for dividends paid under
13311331 7 the Internal Revenue Code, the modifications required under this
13321332 8 section shall be applied in ratio to the corporation's taxable
13331333 9 income (as defined in Section 63 of the Internal Revenue Code)
13341334 10 after deductions for dividends paid under the Internal Revenue
13351335 11 Code compared to the corporation's taxable income (as defined
13361336 12 in Section 63 of the Internal Revenue Code) before the deduction
13371337 13 for dividends paid under the Internal Revenue Code.
13381338 14 (3) In the case of a trust or estate, the trust or estate is required
13391339 15 to include only the portion of the modifications not passed
13401340 16 through to beneficiaries.
13411341 17 (4) In the case of a taxpayer for which modifications are required
13421342 18 to be applied against a separately stated net operating loss under
13431343 19 IC 6-3-2-2.5 or IC 6-3-2-2.6, the modifications required under
13441344 20 this section must be adjusted to reflect the required application
13451345 21 of the modifications against a separately stated net operating
13461346 22 loss, in order to avoid the application of a particular
13471347 23 modification multiple times.
13481348 24 SECTION 2. IC 6-3-1-4.2 IS ADDED TO THE INDIANA CODE
13491349 25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
13501350 26 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 4.2. "Digital asset"
13511351 27 means:
13521352 28 (1) virtual currency;
13531353 29 (2) cryptocurrencies;
13541354 30 (3) natively electronic assets, including stablecoins and
13551355 31 nonfungible tokens; and
13561356 32 (4) other digital only assets that confer economic, proprietary,
13571357 33 or access rights or powers.
13581358 34 SECTION 3. IC 6-3-2-2.5, AS AMENDED BY P.L.194-2023,
13591359 35 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13601360 36 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 2.5. (a) This section
13611361 37 applies to a resident person.
13621362 38 (b) Resident persons are entitled to a net operating loss deduction.
13631363 39 The amount of the deduction taken in a taxable year may not exceed
13641364 40 the taxpayer's unused Indiana net operating losses carried over to that
13651365 41 year. A taxpayer is not entitled to carryback any net operating losses
13661366 42 after December 31, 2011.
13671367 2024 IN 1388—LS 6710/DI 119 32
13681368 1 (c) An Indiana net operating loss equals the sum of the following:
13691369 2 (1) Subject to subsection (j), any separately stated net operating
13701370 3 loss, plus each of the following, as applicable:
13711371 4 (A) In the case of an individual, any deductions allowable in
13721372 5 determining the separately stated net operating loss for the
13731373 6 taxable year, but not allowable in determining federal adjusted
13741374 7 gross income.
13751375 8 (B) In the case of a separately stated net operating loss that
13761376 9 results from an excess business loss (as defined in Section
13771377 10 461(l) of the Internal Revenue Code) for a taxable year
13781378 11 beginning after December 31, 2022, the modifications
13791379 12 required by IC 6-3-1-3.5, as set forth in subsection (d), that
13801380 13 result in an increase of the taxpayer's Indiana adjusted gross
13811381 14 income and that arise from federal deductions that resulted in
13821382 15 the excess business loss.
13831383 16 (C) In the case of a separately stated net operating loss not
13841384 17 described in clause (B), the modifications required by
13851385 18 IC 6-3-1-3.5, as set forth in subsection (d). For purposes of this
13861386 19 clause, a modification that results in an increase to a taxpayer's
13871387 20 adjusted gross income is considered an addition, and a
13881388 21 modification that results in a decrease to a taxpayer's adjusted
13891389 22 gross income is considered a subtraction.
13901390 23 If the amount determined under this subdivision is less than zero
13911391 24 (0), the amount is an Indiana net operating loss.
13921392 25 (2) Subject to subsection (j), the taxpayer's preliminary federal net
13931393 26 operating loss for a taxable year plus the sum of the following:
13941394 27 (A) The application of certain modifications required by
13951395 28 IC 6-3-1-3.5 as set forth in subsection (d). For purposes of this
13961396 29 clause, a modification that results in an increase to a taxpayer's
13971397 30 adjusted gross income is considered an addition, and a
13981398 31 modification that results in a decrease to a taxpayer's adjusted
13991399 32 gross income is considered a subtraction.
14001400 33 (B) In the case of an individual, any deductions allowable in
14011401 34 determining the preliminary federal net operating loss for the
14021402 35 taxable year, but not allowable in determining federal adjusted
14031403 36 gross income.
14041404 37 If the amount determined under this subdivision is less than zero
14051405 38 (0), the amount is an Indiana net operating loss. If the amount
14061406 39 determined under this subdivision is equal to or greater than zero
14071407 40 (0), the Indiana net operating loss under this subdivision is zero
14081408 41 (0).
14091409 42 (3) The excess business loss deduction disallowed under
14101410 2024 IN 1388—LS 6710/DI 119 33
14111411 1 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14).
14121412 2 (d) For purposes of subsection (c), the modifications that are to be
14131413 3 applied are those modifications required under IC 6-3-1-3.5 for the
14141414 4 same taxable year in which each net operating loss was incurred,
14151415 5 except that the modifications do not include the modifications required
14161416 6 under:
14171417 7 (1) IC 6-3-1-3.5(a)(3);
14181418 8 (2) IC 6-3-1-3.5(a)(4);
14191419 9 (3) IC 6-3-1-3.5(a)(5);
14201420 10 (4) IC 6-3-1-3.5(a)(36); IC 6-3-1-3.5(a)(37);
14211421 11 (5) IC 6-3-1-3.5(f)(19); IC 6-3-1-3.5(f)(20); and
14221422 12 (6) any modification required under Section 172(d) or Section
14231423 13 512(b) of the Internal Revenue Code that is also required under
14241424 14 IC 6-3-1-3.5 in determining Indiana adjusted gross income.
14251425 15 (e) Subject to the limitations contained in subsections (g), (h), and
14261426 16 (i), an Indiana net operating loss carryover shall be available as a
14271427 17 deduction from the taxpayer's adjusted gross income (as defined in
14281428 18 IC 6-3-1-3.5) in the carryover year provided in subsection (f), but not
14291429 19 in excess of the taxpayer's adjusted gross income (as defined in
14301430 20 IC 6-3-1-3.5) in the carryover year determined without regard to this
14311431 21 section.
14321432 22 (f) Carryovers shall be determined under this subsection as follows:
14331433 23 (1) An Indiana net operating loss shall be an Indiana net operating
14341434 24 loss carryover to each of the carryover years following the taxable
14351435 25 year of the loss.
14361436 26 (2) An Indiana net operating loss may not be carried over for
14371437 27 more than twenty (20) taxable years after the taxable year of the
14381438 28 loss.
14391439 29 (g) Except as provided in subsection (h), the entire amount of the
14401440 30 Indiana net operating loss for any taxable year shall be carried to the
14411441 31 earliest of the taxable years to which (as determined under subsection
14421442 32 (f)) the loss may be carried. The amount of the Indiana net operating
14431443 33 loss remaining after the deduction is taken under this section in a
14441444 34 taxable year may be carried over as provided in subsection (f). The
14451445 35 amount of the Indiana net operating loss carried over from year to year
14461446 36 shall be reduced to the extent that the Indiana net operating loss
14471447 37 carryover is used by the taxpayer to obtain a deduction in a taxable
14481448 38 year, or as required by subsection (i), until the occurrence of the earlier
14491449 39 of the following:
14501450 40 (1) The entire amount of the Indiana net operating loss has been
14511451 41 used as a deduction or reduced as required by subsection (i).
14521452 42 (2) The Indiana net operating loss has been carried over to each
14531453 2024 IN 1388—LS 6710/DI 119 34
14541454 1 of the carryover years provided by subsection (f).
14551455 2 (h) An Indiana net operating loss that arises after the application of
14561456 3 Section 512(a)(6) of the Internal Revenue Code shall be allowable
14571457 4 only:
14581458 5 (1) in a taxable year in which the trade or business that generated
14591459 6 the federal net operating loss has an adjusted gross income greater
14601460 7 than zero (0) as determined under IC 6-3-1-3.5; and
14611461 8 (2) against the trade's or business's adjusted gross income;
14621462 9 until the federal net operating loss from the trade or business has been
14631463 10 exhausted. When the federal net operating loss from the trade or
14641464 11 business has been exhausted, and subject to the limitations of this
14651465 12 section, any remaining Indiana net operating loss shall be allowable
14661466 13 against any trade or business of the taxpayer.
14671467 14 (i) The following rules apply to an Indiana net operating loss:
14681468 15 (1) If the taxpayer had a discharge of indebtedness that is
14691469 16 excluded from gross income under Section 108(a)(1)(A), Section
14701470 17 108(a)(1)(B), or Section 108(a)(1)(C) of the Internal Revenue
14711471 18 Code, the Indiana net operating loss shall be reduced by the
14721472 19 remainder of:
14731473 20 (A) the amount of discharge of indebtedness excluded from
14741474 21 federal gross income; minus
14751475 22 (B) the amount of discharge of indebtedness that reduced the
14761476 23 tax attributes under Section 108(b)(2)(D), Section
14771477 24 108(b)(2)(E), or Section 108(b)(2)(F) of the Internal Revenue
14781478 25 Code or was applied for federal tax purposes under Section
14791479 26 108(b)(5) of the Internal Revenue Code.
14801480 27 (2) Any reduction in an Indiana net operating loss shall be first
14811481 28 applied to the Indiana net operating loss for the taxable year of the
14821482 29 discharge, and then to any Indiana net operating loss carryovers.
14831483 30 (3) The provisions of Section 108(d)(6) and Section 108(d)(7) of
14841484 31 the Internal Revenue Code shall apply to any discharge of
14851485 32 indebtedness for purposes of determining the reduction of net
14861486 33 operating losses under this section.
14871487 34 (j) The following apply for purposes of calculating an Indiana net
14881488 35 operating loss under subsection (c):
14891489 36 (1) An itemized deduction shall be applied first under subsection
14901490 37 (c)(1), and any amount not applied under subsection (c)(1) to
14911491 38 make the net operating loss equal to zero (0) shall be applied
14921492 39 under subsection (c)(2).
14931493 40 (2) In the case of a modification under IC 6-3-1-3.5 required to
14941494 41 modify a separately stated net operating loss or a preliminary
14951495 42 federal net operating loss, the amount of the modification may not
14961496 2024 IN 1388—LS 6710/DI 119 35
14971497 1 exceed the amount prescribed under IC 6-3-1-3.5 and must be
14981498 2 applied in the following order:
14991499 3 (A) Against a separately stated net operating loss under
15001500 4 subsection (c)(1)(B), but only to the extent necessary to
15011501 5 increase the separately stated net operating loss, after
15021502 6 application of subsection (c)(1)(A) and (c)(1)(B), to an amount
15031503 7 not greater than zero (0).
15041504 8 (B) Against a separately stated net operating loss under
15051505 9 subsection (c)(1)(C), but only to the extent necessary to
15061506 10 increase the separately stated net operating loss to an amount
15071507 11 not greater than zero (0).
15081508 12 (C) To compute a modification to a preliminary federal net
15091509 13 operating loss under subsection (c)(2).
15101510 14 SECTION 4. IC 6-3-2-2.6, AS AMENDED BY P.L.194-2023,
15111511 15 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15121512 16 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 2.6. (a) This section
15131513 17 applies to a corporation or a nonresident person.
15141514 18 (b) Corporations and nonresident persons are entitled to a net
15151515 19 operating loss deduction. The amount of the deduction taken in a
15161516 20 taxable year may not exceed the taxpayer's unused Indiana net
15171517 21 operating losses carried over to that year. A taxpayer is not entitled to
15181518 22 carryback any net operating losses after December 31, 2011.
15191519 23 (c) An Indiana net operating loss equals the sum of the following:
15201520 24 (1) Subject to subsection (m), any separately stated net operating
15211521 25 loss derived from sources within Indiana, plus each of the
15221522 26 following, as applicable:
15231523 27 (A) In the case of an individual, any deductions allowable in
15241524 28 determining the separately stated net operating loss for the
15251525 29 taxable year that are derived from sources within Indiana but
15261526 30 not allowable in determining federal adjusted gross income.
15271527 31 (B) In the case of a separately stated net operating loss that
15281528 32 results from an excess business loss (as defined in Section
15291529 33 461(l) of the Internal Revenue Code) for a taxable year
15301530 34 beginning after December 31, 2022, the modifications
15311531 35 required by IC 6-3-1-3.5, as set forth in subsection (d)(1), that
15321532 36 result in an increase of the taxpayer's Indiana adjusted gross
15331533 37 income and that arise from federal deductions that resulted in
15341534 38 the excess business loss.
15351535 39 (C) In the case of a separately stated net operating loss not
15361536 40 described in clause (B), the modifications required by
15371537 41 IC 6-3-1-3.5, as set forth in subsection (d)(1). For purposes of
15381538 42 this clause, a modification that results in an increase to a
15391539 2024 IN 1388—LS 6710/DI 119 36
15401540 1 taxpayer's adjusted gross income is considered an addition,
15411541 2 and a modification that results in a decrease to a taxpayer's
15421542 3 adjusted gross income is considered a subtraction.
15431543 4 If the amount determined under this subdivision is less than zero
15441544 5 (0), the amount is an Indiana net operating loss.
15451545 6 (2) Subject to subsection (m), the taxpayer's preliminary federal
15461546 7 net operating loss for a taxable year derived from sources within
15471547 8 Indiana plus the sum of the following:
15481548 9 (A) The application of certain modifications required by
15491549 10 IC 6-3-1-3.5 as set forth in subsection (d)(1). For purposes of
15501550 11 this clause, a modification that results in an increase to a
15511551 12 taxpayer's adjusted gross income is considered an addition,
15521552 13 and a modification that results in a decrease to a taxpayer's
15531553 14 adjusted gross income is considered a subtraction.
15541554 15 (B) In the case of an individual, any deductions derived from
15551555 16 sources within Indiana and allowable in determining the
15561556 17 preliminary federal net operating loss for the taxable year but
15571557 18 not allowable in determining federal adjusted gross income.
15581558 19 If the amount determined under this subdivision is less than zero
15591559 20 (0), the amount is an Indiana net operating loss. If the amount
15601560 21 determined under this subdivision is equal to or greater than zero
15611561 22 (0), the Indiana net operating loss under this subdivision is zero
15621562 23 (0).
15631563 24 (3) The excess business loss deduction disallowed under
15641564 25 IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14) and incurred from
15651565 26 Indiana sources.
15661566 27 (d) The following provisions apply for purposes of subsection (c):
15671567 28 (1) The modifications that are to be applied are those
15681568 29 modifications required under IC 6-3-1-3.5 for the same taxable
15691569 30 year in which each net operating loss was incurred, except that the
15701570 31 modifications do not include the modifications required under:
15711571 32 (A) IC 6-3-1-3.5(a)(3);
15721572 33 (B) IC 6-3-1-3.5(a)(4);
15731573 34 (C) IC 6-3-1-3.5(a)(5);
15741574 35 (D) IC 6-3-1-3.5(a)(36); IC 6-3-1-3.5(a)(37);
15751575 36 (E) IC 6-3-1-3.5(b)(22); IC 6-3-1-3.5(b)(23);
15761576 37 (F) IC 6-3-1-3.5(d)(20); IC 6-3-1-3.5(d)(21);
15771577 38 (G) IC 6-3-1-3.5(e)(20); IC 6-3-1-3.5(e)(21);
15781578 39 (H) IC 6-3-1-3.5(f)(19); IC 6-3-1-3.5(f)(20); and
15791579 40 (I) any modification required under Section 172(d) or Section
15801580 41 512(b) of the Internal Revenue Code that is also required
15811581 42 under IC 6-3-1-3.5 in determining Indiana adjusted gross
15821582 2024 IN 1388—LS 6710/DI 119 37
15831583 1 income.
15841584 2 (2) The amount of the taxpayer's net operating loss that is derived
15851585 3 from sources within Indiana shall be determined in the same
15861586 4 manner that the amount of the taxpayer's adjusted gross income
15871587 5 derived from sources within Indiana is determined under section
15881588 6 2 of this chapter for the same taxable year during which each loss
15891589 7 was incurred.
15901590 8 (e) Subject to the limitations contained in subsections (g) through
15911591 9 (l), an Indiana net operating loss carryover shall be available as a
15921592 10 deduction from the taxpayer's adjusted gross income derived from
15931593 11 sources within Indiana (as defined in section 2 of this chapter) in the
15941594 12 carryover year provided in subsection (f), but not in excess of the
15951595 13 taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the
15961596 14 carryover year determined without regard to the deduction allowable
15971597 15 under this section.
15981598 16 (f) Carryovers shall be determined under this subsection as follows:
15991599 17 (1) An Indiana net operating loss shall be an Indiana net operating
16001600 18 loss carryover to each of the carryover years following the taxable
16011601 19 year of the loss.
16021602 20 (2) An Indiana net operating loss may not be carried over for
16031603 21 more than twenty (20) taxable years after the taxable year of the
16041604 22 loss.
16051605 23 (g) The entire amount of the Indiana net operating loss for any
16061606 24 taxable year shall be carried to the earliest of the taxable years to which
16071607 25 (as determined under subsection (f)) the loss may be carried. The
16081608 26 amount of the Indiana net operating loss remaining after the deduction
16091609 27 is taken under this section in a taxable year may be carried over as
16101610 28 provided in subsection (f). The amount of the Indiana net operating loss
16111611 29 carried over from year to year shall be reduced to the extent that the
16121612 30 Indiana net operating loss carryover is used by the taxpayer to obtain
16131613 31 a deduction in a taxable year, or as required by subsection (i), until the
16141614 32 occurrence of the earlier of the following:
16151615 33 (1) The entire amount of the Indiana net operating loss has been
16161616 34 used as a deduction or reduced as required by subsection (i).
16171617 35 (2) The Indiana net operating loss has been carried over to each
16181618 36 of the carryover years provided by subsection (f).
16191619 37 (h) An Indiana net operating loss deduction determined under this
16201620 38 section shall be allowed notwithstanding the fact that in the year the
16211621 39 taxpayer incurred the net operating loss the taxpayer was not subject to
16221622 40 the tax imposed under section 1 of this chapter because the taxpayer
16231623 41 was:
16241624 42 (1) a life insurance company (as defined in Section 816(a) of the
16251625 2024 IN 1388—LS 6710/DI 119 38
16261626 1 Internal Revenue Code); or
16271627 2 (2) an insurance company subject to tax under Section 831 of the
16281628 3 Internal Revenue Code.
16291629 4 (i) Notwithstanding subsection (g), the following apply to an Indiana
16301630 5 net operating loss:
16311631 6 (1) An Indiana net operating loss that arises after the application
16321632 7 of Section 512(a)(6) of the Internal Revenue Code shall be
16331633 8 allowable only:
16341634 9 (A) in a taxable year in which the trade or business that
16351635 10 generated the federal net operating loss has an adjusted gross
16361636 11 income derived from sources within Indiana greater than zero
16371637 12 (0) as determined under IC 6-3-1-3.5; and
16381638 13 (B) against the trade's or business's adjusted gross income;
16391639 14 until the federal net operating loss from the trade or business has
16401640 15 been exhausted. When the federal net operating loss from the
16411641 16 trade or business has been exhausted, and subject to the
16421642 17 limitations of this section, any remaining Indiana net operating
16431643 18 loss shall be allowable against any trade or business of the
16441644 19 taxpayer.
16451645 20 (2) In the case of a corporation described in section 2.8(2) of this
16461646 21 chapter, an Indiana net operating loss deduction that is
16471647 22 attributable to a preconversion year may not be greater than any
16481648 23 net recognized built-in gain of the corporation as defined in
16491649 24 Section 1374(d)(2) of the Internal Revenue Code derived from
16501650 25 sources within Indiana.
16511651 26 (j) The following rules apply to an Indiana net operating loss:
16521652 27 (1) If the taxpayer had a discharge of indebtedness derived from
16531653 28 Indiana sources that is excluded from gross income under Section
16541654 29 108(a)(1)(A), Section 108(a)(1)(B), or Section 108(a)(1)(C) of the
16551655 30 Internal Revenue Code, the Indiana net operating loss shall be
16561656 31 reduced by the remainder of:
16571657 32 (A) the amount of discharge of indebtedness excluded from
16581658 33 federal gross income derived from Indiana sources; minus
16591659 34 (B) the amount of discharge of indebtedness derived from
16601660 35 Indiana sources that reduced the tax attributes under Section
16611661 36 108(b)(2)(D), Section 108(b)(2)(E), or Section 108(b)(2)(F) of
16621662 37 the Internal Revenue Code or was applied for federal tax
16631663 38 purposes under Section 108(b)(5) of the Internal Revenue
16641664 39 Code.
16651665 40 (2) Any reduction in an Indiana net operating loss shall be first
16661666 41 applied to the Indiana net operating loss for the taxable year of the
16671667 42 discharge, and then to any Indiana net operating loss carryovers.
16681668 2024 IN 1388—LS 6710/DI 119 39
16691669 1 (3) The provisions of Section 108(d)(6) and Section 108(d)(7) of
16701670 2 the Internal Revenue Code shall apply to any discharge of
16711671 3 indebtedness for purposes of determining the reduction of net
16721672 4 operating losses under this section.
16731673 5 (k) If a taxpayer has an ownership change for which the limitations
16741674 6 of net operating losses under Section 382 of the Internal Revenue Code
16751675 7 apply, the following shall apply:
16761676 8 (1) The amount a taxpayer may claim as an Indiana net operating
16771677 9 loss deduction for a taxable year beginning after December 31,
16781678 10 2022, shall not exceed the limitation imposed by Section
16791679 11 382(b)(1) of the Internal Revenue Code multiplied by the
16801680 12 apportionment percentage determined under section 2 of this
16811681 13 chapter for the year in which the net operating loss is being
16821682 14 claimed, unless otherwise provided by this subsection. The
16831683 15 following apply:
16841684 16 (A) The limitation under this subdivision does not apply to
16851685 17 adjusted gross income accrued in the portion of the taxable
16861686 18 year on or before the change date (as defined in Section 382(j)
16871687 19 of the Internal Revenue Code). For purposes of this
16881688 20 subdivision, the adjusted gross income of the taxpayer shall be
16891689 21 multiplied by the number of days in the taxable year on or
16901690 22 before the change date to the number of days in the taxable
16911691 23 year.
16921692 24 (B) For the portion of the taxable year after the change date (as
16931693 25 defined in Section 382(j) of the Internal Revenue Code), the
16941694 26 limitation under this subdivision shall be the limitation
16951695 27 otherwise computed in this subdivision multiplied by the
16961696 28 number of days in the taxable year after the change date to the
16971697 29 number of days in the taxable year.
16981698 30 (2) If a taxpayer's Indiana net operating loss determined under this
16991699 31 subsection is not fully deductible as a result of subsection (e) for
17001700 32 a taxable year, the limitation under this subsection for the
17011701 33 following taxable year shall be increased by the net operating loss
17021702 34 determined but not allowable as a deduction for the taxable year.
17031703 35 (3) If the continuity of business requirements under Section
17041704 36 382(c) of the Internal Revenue Code are not met, the Indiana net
17051705 37 operating loss available for carryforward shall be zero (0) except
17061706 38 to the extent of recognized built in gains derived from Indiana
17071707 39 sources and amounts allowable under subdivision (2).
17081708 40 (4) If the limitation under Section 382(b) of the Internal Revenue
17091709 41 Code is increased for a taxable year under Section 382(h) of the
17101710 42 Internal Revenue Code, the limitation under subdivision (1) for
17111711 2024 IN 1388—LS 6710/DI 119 40
17121712 1 that taxable year shall be increased by the federal increase in the
17131713 2 net operating loss limitation for the taxable year multiplied by the
17141714 3 Indiana apportionment percentage for that taxable year.
17151715 4 (5) For purposes of any other matters not provided for in
17161716 5 subdivisions (1) through (4), the taxpayer and the department are
17171717 6 required to apply the limitations and rules under Section 382 of
17181718 7 the Internal Revenue Code in a manner consistent with this
17191719 8 subsection.
17201720 9 (6) This subsection applies to a taxpayer regardless of whether the
17211721 10 taxpayer actually has a federal net operating loss subject to
17221722 11 Section 382 of the Internal Revenue Code or whether any federal
17231723 12 net operating losses have been exhausted.
17241724 13 (l) If two (2) or more corporations file a consolidated return under
17251725 14 IC 6-3-4-14 or a combined return under this chapter and have an
17261726 15 Indiana net operating loss on a consolidated or combined basis for a
17271727 16 taxable year:
17281728 17 (1) the Indiana net operating loss attributable to each corporation
17291729 18 included in the consolidated or combined return shall be
17301730 19 determined in a manner consistent with the attribution of federal
17311731 20 net operating losses for consolidated groups as provided under the
17321732 21 Internal Revenue Code and regulations promulgated thereunder;
17331733 22 (2) the application of Indiana net operating losses and reduction
17341734 23 of losses attributable to each member shall be in a manner
17351735 24 consistent with the application and reduction of federal net
17361736 25 operating losses for consolidated groups as provided under the
17371737 26 Internal Revenue Code and regulations promulgated thereunder;
17381738 27 and
17391739 28 (3) the availability of net operating losses to each corporation
17401740 29 upon an ownership change or change in filing status shall be in a
17411741 30 manner consistent with the availability and use of federal net
17421742 31 operating losses for consolidated groups as provided under the
17431743 32 Internal Revenue Code and regulations promulgated thereunder.
17441744 33 (m) The following apply for purposes of calculating an Indiana net
17451745 34 operating loss under subsection (c):
17461746 35 (1) An itemized deduction shall be applied first under subsection
17471747 36 (c)(1), and any amount not applied under subsection (c)(1) to
17481748 37 make the net operating loss equal to zero (0) shall be applied
17491749 38 under subsection (c)(2).
17501750 39 (2) In the case of a modification under IC 6-3-1-3.5 required to
17511751 40 modify a separately stated net operating loss or a preliminary
17521752 41 federal net operating loss, the amount of the modification may not
17531753 42 exceed the amount prescribed under IC 6-3-1-3.5 and must be
17541754 2024 IN 1388—LS 6710/DI 119 41
17551755 1 applied in the following order:
17561756 2 (A) Against a separately stated net operating loss under
17571757 3 subsection (c)(1)(B), but only to the extent necessary to
17581758 4 increase the separately stated net operating loss, after
17591759 5 application of subsection (c)(1)(A) and (c)(1)(B), to an amount
17601760 6 not greater than zero (0).
17611761 7 (B) Against a separately stated net operating loss under
17621762 8 subsection (c)(1)(C), but only to the extent necessary to
17631763 9 increase the separately stated net operating loss to an amount
17641764 10 not greater than zero (0).
17651765 11 (C) To compute a modification to a preliminary federal net
17661766 12 operating loss under subsection (c)(2).
17671767 13 SECTION 5. IC 6-3.5-12 IS ADDED TO THE INDIANA CODE
17681768 14 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
17691769 15 JULY 1, 2024]:
17701770 16 Chapter 12. Transactions Involving Digital Assets
17711771 17 Sec. 1. As used in this chapter, "digital asset" has the meaning
17721772 18 set forth in IC 6-3-1-4.2.
17731773 19 Sec. 2. (a) A county or municipality may not impose a tax that
17741774 20 is assessed based on use of a digital asset as payment in a
17751775 21 transaction.
17761776 22 (b) A county or municipality that imposes a tax on any form of
17771777 23 transaction may not impose the tax at a different rate based on the
17781778 24 use of a digital asset for payment in the transaction.
17791779 25 SECTION 6. IC 8-1-2-4.4 IS ADDED TO THE INDIANA CODE
17801780 26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17811781 27 1, 2024]: Sec. 4.4. (a) The following definitions apply throughout
17821782 28 this section:
17831783 29 (1) "Blockchain protocol" has the meaning set forth in
17841784 30 IC 34-30-34.5-2.
17851785 31 (2) "Digital asset mining business" means a person that uses
17861786 32 one (1) or more computers that consume a total amount of
17871787 33 electricity of more than one (1) megawatt for the purpose of
17881788 34 securing a blockchain protocol.
17891789 35 (3) "Electricity supplier" has the meaning set forth in
17901790 36 IC 8-1-2.3-2.
17911791 37 (b) The commission may not approve a rate schedule for
17921792 38 electricity supplied by an electricity supplier to digital asset mining
17931793 39 businesses that is unreasonable or unjustly discriminatory as
17941794 40 compared to the rate schedule approved by the commission for
17951795 41 electricity supplied by the electricity supplier to industrial
17961796 42 customers.
17971797 2024 IN 1388—LS 6710/DI 119 42
17981798 1 SECTION 7. IC 23-19-1-2, AS AMENDED BY P.L.158-2022,
17991799 2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18001800 3 JULY 1, 2024]: Sec. 2. In this article, unless the context otherwise
18011801 4 requires:
18021802 5 (1) "Agent" means an individual, other than a broker-dealer, who
18031803 6 represents a broker-dealer in effecting or attempting to effect
18041804 7 purchases or sales of securities or represents an issuer in effecting
18051805 8 or attempting to effect purchases or sales of the issuer's securities.
18061806 9 However, a partner, officer, or director of a broker-dealer or
18071807 10 issuer, or an individual having a similar status or performing
18081808 11 similar functions is an agent only if the individual otherwise
18091809 12 comes within the term. The term does not include an individual
18101810 13 excluded by rule adopted or order issued under this article.
18111811 14 (2) "Bank" means:
18121812 15 (A) a banking institution organized under the laws of the
18131813 16 United States;
18141814 17 (B) a member bank of the Federal Reserve System;
18151815 18 (C) any other banking institution, whether incorporated or not,
18161816 19 doing business under the laws of a state or of the United
18171817 20 States, a substantial portion of the business of which consists
18181818 21 of receiving deposits or exercising fiduciary powers similar to
18191819 22 those permitted to be exercised by national banks under the
18201820 23 authority of the Comptroller of the Currency under Section 1
18211821 24 of Public Law 87-722 (12 U.S.C. 92a), and which is
18221822 25 supervised and examined by a state or federal agency having
18231823 26 supervision over banks, and which is not operated for the
18241824 27 purpose of evading this article; and
18251825 28 (D) a receiver, conservator, or other liquidating agent of any
18261826 29 institution or firm included in clause (A), (B), or (C).
18271827 30 (3) "Broker-dealer" means a person engaged in the business of
18281828 31 effecting transactions in securities for the account of others or for
18291829 32 the person's own account. The term does not include:
18301830 33 (A) an agent;
18311831 34 (B) an issuer;
18321832 35 (C) a bank, a savings institution, or a trust company that is a
18331833 36 wholly owned subsidiary of a bank or savings institution if its
18341834 37 activities as a broker-dealer are limited to those specified in
18351835 38 subsections 3(a)(4)(B)(i) through (vi), (viii) through (x), and
18361836 39 (xi) if limited to unsolicited transactions; 3(a)(5)(B); and
18371837 40 3(a)(5)(C) of the Securities Exchange Act of 1934 (15 U.S.C.
18381838 41 78c(a)(4) and 15 U.S.C. 78c(a)(5)) or a bank that satisfies the
18391839 42 conditions described in subsection 3(a)(4)(E) of the Securities
18401840 2024 IN 1388—LS 6710/DI 119 43
18411841 1 Exchange Act of 1934 (15 U.S.C. 78c(a)(4));
18421842 2 (D) an international banking institution; or
18431843 3 (E) a person excluded by rule adopted or order issued under
18441844 4 this article.
18451845 5 For the purposes of this subdivision, "effecting transactions
18461846 6 in securities" does not include providing, or offering to
18471847 7 provide, digital asset mining or staking as a service.
18481848 8 (4) "Commissioner" means the securities commissioner appointed
18491849 9 under IC 23-19-6-1(a).
18501850 10 (5) "Depository institution" means:
18511851 11 (A) a bank; or
18521852 12 (B) a savings institution, trust company, credit union, or
18531853 13 similar institution that is organized or chartered under the laws
18541854 14 of a state or of the United States, authorized to receive
18551855 15 deposits, and supervised and examined by an official or
18561856 16 agency of a state or the United States if its deposits or share
18571857 17 accounts are insured to the maximum amount authorized by
18581858 18 statute by the Federal Deposit Insurance Corporation, the
18591859 19 National Credit Union Share Insurance Fund, or a successor
18601860 20 authorized by federal law. The term does not include:
18611861 21 (i) an insurance company or other organization primarily
18621862 22 engaged in the business of insurance;
18631863 23 (ii) a Morris Plan bank; or
18641864 24 (iii) an industrial loan company that is not an insured
18651865 25 depository institution as defined in Section 3(c)(2) of the
18661866 26 Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)) or any
18671867 27 successor federal statute.
18681868 28 (6) "Digital asset mining" has the meaning set forth in
18691869 29 IC 34-30-34.5-3.
18701870 30 (6) (7) "Federal covered investment adviser" means a person
18711871 31 registered under the Investment Advisers Act of 1940.
18721872 32 (7) (8) "Federal covered security" means a security that is, or
18731873 33 upon completion of a transaction will be, a covered security under
18741874 34 Section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)) or
18751875 35 rules or regulations adopted under that provision.
18761876 36 (8) (9) "Filing" means the receipt under this article of a record by
18771877 37 the commissioner or a designee of the commissioner.
18781878 38 (9) (10) "Fraud", "fraudulent", "deceit", and "defraud" mean a
18791879 39 misrepresentation of a material fact, a promise, representation, or
18801880 40 prediction not made honestly or in good faith, or the failure to
18811881 41 disclose a material fact necessary in order to make the statements
18821882 42 made, in light of the circumstances under which they were made,
18831883 2024 IN 1388—LS 6710/DI 119 44
18841884 1 not misleading. This definition does not limit or diminish the full
18851885 2 meaning of the terms as applied by or defined in courts of law or
18861886 3 equity. The terms are not limited to common law deceit.
18871887 4 (10) (11) "Guaranteed" means guaranteed as to payment of all
18881888 5 principal, dividends, and interest.
18891889 6 (11) (12) "Institutional investor" means any of the following,
18901890 7 whether acting for itself or for others in a fiduciary capacity:
18911891 8 (A) a depository institution or international banking
18921892 9 institution;
18931893 10 (B) an insurance company;
18941894 11 (C) a separate account of an insurance company;
18951895 12 (D) an investment company as defined in the Investment
18961896 13 Company Act of 1940;
18971897 14 (E) a broker-dealer registered under the Securities Exchange
18981898 15 Act of 1934;
18991899 16 (F) an employee pension, profit-sharing, or benefit plan if the
19001900 17 plan has total assets in excess of ten million dollars
19011901 18 ($10,000,000) or its investment decisions are made by a
19021902 19 named fiduciary, as defined in the Employee Retirement
19031903 20 Income Security Act of 1974, that is a broker-dealer registered
19041904 21 under the Securities Exchange Act of 1934, an investment
19051905 22 adviser registered or exempt from registration under the
19061906 23 Investment Advisers Act of 1940, an investment adviser
19071907 24 registered under this article, a depository institution, or an
19081908 25 insurance company;
19091909 26 (G) a plan established and maintained by a state, a political
19101910 27 subdivision of a state, or an agency or instrumentality of a state
19111911 28 or a political subdivision of a state for the benefit of its
19121912 29 employees, if the plan has total assets in excess of ten million
19131913 30 dollars ($10,000,000) or its investment decisions are made by
19141914 31 a duly designated public official or by a named fiduciary, as
19151915 32 defined in the Employee Retirement Income Security Act of
19161916 33 1974, that is a broker-dealer registered under the Securities
19171917 34 Exchange Act of 1934, an investment adviser registered or
19181918 35 exempt from registration under the Investment Advisers Act
19191919 36 of 1940, an investment adviser registered under this article, a
19201920 37 depository institution, or an insurance company;
19211921 38 (H) a trust, if it has total assets in excess of ten million dollars
19221922 39 ($10,000,000), its trustee is a depository institution, and its
19231923 40 participants are exclusively plans of the types identified in
19241924 41 clause (F) or (G), regardless of the size of their assets, except
19251925 42 a trust that includes as participants self-directed individual
19261926 2024 IN 1388—LS 6710/DI 119 45
19271927 1 retirement accounts or similar self-directed plans;
19281928 2 (I) an organization described in Section 501(c)(3) of the
19291929 3 Internal Revenue Code (26 U.S.C. 501(c)(3)), corporation,
19301930 4 Massachusetts trust or similar business trust, limited liability
19311931 5 company, or partnership, not formed for the specific purpose
19321932 6 of acquiring the securities offered, with total assets in excess
19331933 7 of ten million dollars ($10,000,000);
19341934 8 (J) a small business investment company licensed by the Small
19351935 9 Business Administration under Section 301(c) of the Small
19361936 10 Business Investment Act of 1958 (15 U.S.C. 681(c)) with total
19371937 11 assets in excess of ten million dollars ($10,000,000);
19381938 12 (K) a private business development company, as defined in
19391939 13 Section 202(a)(22) of the Investment Advisers Act of 1940 (15
19401940 14 U.S.C. 80b-2(a)(22)) with total assets in excess of ten million
19411941 15 dollars ($10,000,000);
19421942 16 (L) a federal covered investment adviser acting for its own
19431943 17 account;
19441944 18 (M) a "qualified institutional buyer", as defined in Rule
19451945 19 144A(a)(1), other than Rule 144A(a)(1)(i)(H), adopted under
19461946 20 the Securities Act of 1933 (17 CFR 230.144A);
19471947 21 (N) a "major U.S. institutional investor", as defined in Rule
19481948 22 15a-6(b)(4)(i) adopted under the Securities Exchange Act of
19491949 23 1934 (17 CFR 240.15a-6);
19501950 24 (O) any other person, other than an individual, of institutional
19511951 25 character with total assets in excess of ten million dollars
19521952 26 ($10,000,000) not organized for the specific purpose of
19531953 27 evading this article; or
19541954 28 (P) any other person specified by rule adopted or order issued
19551955 29 under this article.
19561956 30 (12) (13) "Insurance company" means a company organized as an
19571957 31 insurance company whose primary business is writing insurance
19581958 32 or reinsuring risks underwritten by insurance companies and
19591959 33 which is subject to supervision by the insurance commissioner or
19601960 34 a similar official or agency of a state.
19611961 35 (13) (14) "Insured" means insured as to payment of all principal
19621962 36 and all interest.
19631963 37 (14) (15) "International banking institution" means an
19641964 38 international financial institution of which the United States is a
19651965 39 member and whose securities are exempt from registration under
19661966 40 the Securities Act of 1933.
19671967 41 (15) (16) "Investment adviser" means a person that, for
19681968 42 compensation, engages in the business of advising others, either
19691969 2024 IN 1388—LS 6710/DI 119 46
19701970 1 directly or through publications or writings, as to the value of
19711971 2 securities or the advisability of investing in, purchasing, or selling
19721972 3 securities or that, for compensation and as a part of a regular
19731973 4 business, issues or promulgates analyses or reports concerning
19741974 5 securities. The term includes a financial planner or other person
19751975 6 that, as an integral component of other financially related
19761976 7 services, provides investment advice to others for compensation
19771977 8 as part of a business or that holds itself out as providing
19781978 9 investment advice to others for compensation. The term does not
19791979 10 include:
19801980 11 (A) an investment adviser representative;
19811981 12 (B) a lawyer, accountant, engineer, or teacher whose
19821982 13 performance of investment advice is solely incidental to the
19831983 14 practice of the person's profession;
19841984 15 (C) a broker-dealer or its agents whose performance of
19851985 16 investment advice is solely incidental to the conduct of
19861986 17 business as a broker-dealer and that does not receive special
19871987 18 compensation for the investment advice;
19881988 19 (D) a publisher of a bona fide newspaper, news magazine, or
19891989 20 business or financial publication of general and regular
19901990 21 circulation;
19911991 22 (E) a federal covered investment adviser;
19921992 23 (F) a bank, a savings institution, or a trust company that is a
19931993 24 wholly owned subsidiary of a bank or savings institution;
19941994 25 (G) any other person that is excluded by the Investment
19951995 26 Advisers Act of 1940 from the definition of investment
19961996 27 adviser; or
19971997 28 (H) any other person excluded by rule adopted or order issued
19981998 29 under this article.
19991999 30 (16) (17) "Investment adviser representative" means an individual
20002000 31 employed by or associated with an investment adviser or federal
20012001 32 covered investment adviser and who makes any recommendations
20022002 33 or otherwise gives investment advice regarding securities,
20032003 34 manages accounts or portfolios of clients, determines which
20042004 35 recommendation or advice regarding securities should be given,
20052005 36 provides investment advice or holds herself or himself out as
20062006 37 providing investment advice, or supervises employees who
20072007 38 perform any of the foregoing. The term does not include an
20082008 39 individual who:
20092009 40 (A) performs only clerical or ministerial acts;
20102010 41 (B) is an agent whose performance of investment advice is
20112011 42 solely incidental to the individual acting as an agent and who
20122012 2024 IN 1388—LS 6710/DI 119 47
20132013 1 does not receive special compensation for investment advisory
20142014 2 services;
20152015 3 (C) is employed by or associated with a federal covered
20162016 4 investment adviser, unless the individual has a "place of
20172017 5 business" in this state, as that term is defined by rule adopted
20182018 6 under Section 203A of the Investment Advisers Act of 1940
20192019 7 (15 U.S.C. 80b-3a), and is:
20202020 8 (i) an "investment adviser representative", as that term is
20212021 9 defined by rule adopted under Section 203A of the
20222022 10 Investment Advisers Act of 1940 (15 U.S.C. 80b-3a); or
20232023 11 (ii) not a "supervised person", as that term is defined in
20242024 12 Section 202(a)(25) of the Investment Advisers Act of 1940
20252025 13 (15 U.S.C. 80b-2(a)(25)); or
20262026 14 (D) is excluded by rule adopted or order issued under this
20272027 15 article.
20282028 16 (17) (18) "Issuer" means a person that issues or proposes to issue
20292029 17 a security, subject to the following:
20302030 18 (A) The issuer of a voting trust certificate, collateral trust
20312031 19 certificate, certificate of deposit for a security, or share in an
20322032 20 investment company without a board of directors or
20332033 21 individuals performing similar functions is the person
20342034 22 performing the acts and assuming the duties of depositor or
20352035 23 manager under the trust or other agreement or instrument
20362036 24 under which the security is issued.
20372037 25 (B) The issuer of an equipment trust certificate or similar
20382038 26 security serving the same purpose is the person by which the
20392039 27 property is or will be used or to which the property or
20402040 28 equipment is or will be leased or conditionally sold or that is
20412041 29 otherwise contractually responsible for assuring payment of
20422042 30 the certificate.
20432043 31 (C) The issuer of a fractional undivided interest in an oil, gas,
20442044 32 or other mineral lease or in payments out of production under
20452045 33 a lease, right, or royalty is the owner of an interest in the lease
20462046 34 or in payments out of production under a lease, right, or
20472047 35 royalty, whether whole or fractional, that creates fractional
20482048 36 interests for the purpose of sale.
20492049 37 (18) (19) "Nonissuer transaction" or "nonissuer distribution"
20502050 38 means a transaction or distribution not directly or indirectly for
20512051 39 the benefit of the issuer.
20522052 40 (19) (20) "Offer to purchase" includes an attempt or offer to
20532053 41 obtain, or solicitation of an offer to sell, a security or interest in a
20542054 42 security for value. The term does not include a tender offer that is
20552055 2024 IN 1388—LS 6710/DI 119 48
20562056 1 subject to Section 14(d) of the Securities Exchange Act of 1934
20572057 2 (15 U.S.C. 78n(d)).
20582058 3 (20) (21) "Person" means an individual; corporation; business
20592059 4 trust; estate; trust; partnership; limited liability company;
20602060 5 association; joint venture; government; governmental subdivision,
20612061 6 agency, or instrumentality; public corporation; or any other legal
20622062 7 or commercial entity.
20632063 8 (21) (22) "Place of business" of a broker-dealer, an investment
20642064 9 adviser, or a federal covered investment adviser means:
20652065 10 (A) an office at which the broker-dealer, investment adviser,
20662066 11 or federal covered investment adviser regularly provides
20672067 12 brokerage or investment advice or solicits, meets with, or
20682068 13 otherwise communicates with customers or clients; or
20692069 14 (B) any other location that is held out to the general public as
20702070 15 a location at which the broker-dealer, investment adviser, or
20712071 16 federal covered investment adviser provides brokerage or
20722072 17 investment advice or solicits, meets with, or otherwise
20732073 18 communicates with customers or clients.
20742074 19 (22) (23) "Predecessor act" means IC 23-2-1 (before its repeal).
20752075 20 (23) (24) "Price amendment" means the amendment to a
20762076 21 registration statement filed under the Securities Act of 1933 or, if
20772077 22 an amendment is not filed, the prospectus or prospectus
20782078 23 supplement filed under the Securities Act of 1933 that includes a
20792079 24 statement of the offering price, underwriting and selling discounts
20802080 25 or commissions, amount of proceeds, conversion rates, call prices,
20812081 26 and other matters dependent upon the offering price.
20822082 27 (24) (25) "Principal place of business" of a broker-dealer or an
20832083 28 investment adviser means the executive office of the
20842084 29 broker-dealer or investment adviser from which the officers,
20852085 30 partners, or managers of the broker-dealer or investment adviser
20862086 31 direct, control, and coordinate the activities of the broker-dealer
20872087 32 or investment adviser.
20882088 33 (25) (26) "Record", except in the phrases "of record", "official
20892089 34 record", and "public record", means information that is inscribed
20902090 35 on a tangible medium or that is stored in an electronic or other
20912091 36 medium and is retrievable in perceivable form.
20922092 37 (26) (27) "Sale" includes every contract of sale, contract to sell,
20932093 38 or disposition of a security or interest in a security for value, and
20942094 39 "offer to sell" includes every attempt or offer to dispose of, or
20952095 40 solicitation of an offer to purchase, a security or interest in a
20962096 41 security for value. Both terms include:
20972097 42 (A) a security given or delivered with, or as a bonus on
20982098 2024 IN 1388—LS 6710/DI 119 49
20992099 1 account of, a purchase of securities or any other thing
21002100 2 constituting part of the subject of the purchase and having
21012101 3 been offered and sold for value;
21022102 4 (B) a gift of assessable stock involving an offer and sale; and
21032103 5 (C) a sale or offer of a warrant or right to purchase or
21042104 6 subscribe to another security of the same or another issuer and
21052105 7 a sale or offer of a security that gives the holder a present or
21062106 8 future right or privilege to convert the security into another
21072107 9 security of the same or another issuer, including an offer of the
21082108 10 other security.
21092109 11 (27) (28) "Securities and Exchange Commission" means the
21102110 12 United States Securities and Exchange Commission.
21112111 13 (28) (29) "Security" means a note; stock; treasury stock; security
21122112 14 future; bond; debenture; evidence of indebtedness; certificate of
21132113 15 interest or participation in a profit-sharing agreement; collateral
21142114 16 trust certificate; preorganization certificate or subscription;
21152115 17 transferable share; investment contract; voting trust certificate;
21162116 18 certificate of deposit for a security; fractional undivided interest
21172117 19 in oil, gas, or other mineral rights; put, call, straddle, option, or
21182118 20 privilege on a security, certificate of deposit, or group or index of
21192119 21 securities, including an interest therein or based on the value
21202120 22 thereof; put, call, straddle, option, or privilege entered into on a
21212121 23 national securities exchange relating to foreign currency; or, in
21222122 24 general, an interest or instrument commonly known as a
21232123 25 "security"; or a certificate of interest or participation in, temporary
21242124 26 or interim certificate for, receipt for, guarantee of, or warrant or
21252125 27 right to subscribe to or purchase, any of the foregoing. The term:
21262126 28 (A) includes both a certificated and an uncertificated security;
21272127 29 (B) does not include an insurance or endowment policy or
21282128 30 annuity contract under which an insurance company promises
21292129 31 to pay a fixed or variable sum of money either in a lump sum
21302130 32 or periodically for life or another specified period;
21312131 33 (C) does not include an interest in a contributory or
21322132 34 noncontributory pension or welfare plan subject to the
21332133 35 Employee Retirement Income Security Act of 1974;
21342134 36 (D) includes as an "investment contract" an investment in a
21352135 37 common enterprise with the expectation of profits to be
21362136 38 derived primarily from the efforts of a person other than the
21372137 39 investor and a "common enterprise" means an enterprise in
21382138 40 which the fortunes of the investor are interwoven with those of
21392139 41 either the person offering the investment, a third party, or other
21402140 42 investors; and
21412141 2024 IN 1388—LS 6710/DI 119 50
21422142 1 (E) includes as an "investment contract", among other
21432143 2 contracts, an interest in a limited partnership and a limited
21442144 3 liability company and an investment in a viatical settlement or
21452145 4 similar agreement.
21462146 5 (29) (30) "Self-regulatory organization" means a national
21472147 6 securities exchange registered under the Securities Exchange Act
21482148 7 of 1934, a national securities association of broker-dealers
21492149 8 registered under the Securities Exchange Act of 1934, a clearing
21502150 9 agency registered under the Securities Exchange Act of 1934, or
21512151 10 the Municipal Securities Rulemaking Board established under the
21522152 11 Securities Exchange Act of 1934.
21532153 12 (30) (31) "Sign" means, with present intent to authenticate or
21542154 13 adopt a record:
21552155 14 (A) to execute or adopt a tangible symbol; or
21562156 15 (B) to attach or logically associate with the record an
21572157 16 electronic symbol, sound, or process.
21582158 17 (32) "Staking as a service" has the meaning set forth in
21592159 18 IC 34-30-34.5-6.
21602160 19 (31) (33) "Third party solicitor" means a person that, for
21612161 20 compensation, directly or indirectly, solicits a client for or refers
21622162 21 a client to an investment adviser, a federal covered investment
21632163 22 adviser, or an investment adviser representative. The term does
21642164 23 not include the following:
21652165 24 (A) An employee subject to the supervision and control of an
21662166 25 investment adviser registered under IC 23-19-4-3.
21672167 26 (B) A "supervised person", as defined in Section 202(a)(25) of
21682168 27 the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(25)).
21692169 28 (C) A partner, officer, director, or employee of a person that
21702170 29 controls, is controlled by, or is under common control with an
21712171 30 investment adviser or a federal covered investment adviser.
21722172 31 (D) An individual excluded by a rule adopted or order issued
21732173 32 under this article.
21742174 33 (32) (34) "State" means a state of the United States, the District
21752175 34 of Columbia, Puerto Rico, the United States Virgin Islands, or any
21762176 35 territory or insular possession subject to the jurisdiction of the
21772177 36 United States.
21782178 37 (33) (35) "Accredited investor" has the meaning set forth in 17
21792179 38 CFR 230.501(a).
21802180 39 SECTION 8. IC 27-1-12.7-6, AS AMENDED BY P.L.27-2007,
21812181 40 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21822182 41 JULY 1, 2024]: Sec. 6. The issuance of a funding agreement:
21832183 42 (1) constitutes an activity necessary, convenient, or expedient to
21842184 2024 IN 1388—LS 6710/DI 119 51
21852185 1 the business of a life insurance company under IC 27-1-7-2;
21862186 2 (2) is not insurance under IC 27-1-5-1;
21872187 3 (3) is not a security (as defined in IC 23-19-1-2(28));
21882188 4 IC 23-19-1-2(29)); and
21892189 5 (4) does not constitute gross premium for taxation purposes under
21902190 6 IC 27-1-18-2.
21912191 7 SECTION 9. IC 28-8-4.1-201, AS ADDED BY P.L.198-2023,
21922192 8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21932193 9 JULY 1, 2024]: Sec. 201. The following definitions apply throughout
21942194 10 this chapter:
21952195 11 (1) "Acting in concert" means persons knowingly acting together
21962196 12 with a common goal of jointly acquiring control of a licensee
21972197 13 whether or not pursuant to an express agreement.
21982198 14 (2) "Authorized delegate" means a person a licensee designates to
21992199 15 engage in money transmission on behalf of the licensee.
22002200 16 (3) "Average daily money transmission liability", with respect to
22012201 17 a calendar quarter, means:
22022202 18 (A) the sum of the amounts of a licensee's outstanding money
22032203 19 transmission obligations in Indiana at the end of each day in
22042204 20 the calendar quarter; divided by
22052205 21 (B) the total number of days in that calendar quarter.
22062206 22 For purposes of this subdivision, a "calendar quarter" is a quarter
22072207 23 ending on March 31, June 30, September 30, or December 31.
22082208 24 (4) "Bank Secrecy Act" means:
22092209 25 (A) the Bank Secrecy Act (31 U.S.C. 5311 et seq.); and
22102210 26 (B) regulations adopted under the Bank Secrecy Act (31
22112211 27 U.S.C. 5311 et seq.).
22122212 28 (5) "Blockchain protocol" has the meaning set forth in
22132213 29 IC 34-30-34.5-2.
22142214 30 (5) (6) "Closed loop stored value" means stored value that is
22152215 31 redeemable by the issuer only for goods or services provided by
22162216 32 the issuer or the issuer's affiliate or by franchisees of the issuer or
22172217 33 the issuer's affiliate, except to the extent required by applicable
22182218 34 law to be redeemable in cash for its cash value.
22192219 35 (6) (7) "Control" means any of the following:
22202220 36 (A) The power to vote, directly or indirectly, at least
22212221 37 twenty-five percent (25%) of the outstanding voting shares or
22222222 38 voting interests of a licensee or of a person in control of a
22232223 39 licensee.
22242224 40 (B) The power to elect or appoint a majority of key individuals
22252225 41 or executive officers, managers, directors, trustees, or other
22262226 42 persons exercising managerial authority of a person in control
22272227 2024 IN 1388—LS 6710/DI 119 52
22282228 1 of a licensee.
22292229 2 (C) The power to exercise, directly or indirectly, a controlling
22302230 3 influence over the management or policies of a licensee or of
22312231 4 a person in control of a licensee. For purposes of this clause,
22322232 5 a person is presumed to exercise a controlling influence if the
22332233 6 person holds the power to vote, directly or indirectly, at least
22342234 7 ten percent (10%) of the outstanding voting shares or voting
22352235 8 interests of a licensee or of a person in control of a licensee.
22362236 9 However, a person presumed to exercise a controlling
22372237 10 influence under this clause may rebut the presumption of
22382238 11 control if the person is a passive investor.
22392239 12 For purposes of this subdivision, the percentage of a person
22402240 13 controlled by any other person is determined by aggregating the
22412241 14 other person's interest with the interest of any other immediate
22422242 15 family member of that person, including the person's spouse,
22432243 16 parents, children, siblings, mothers-in-law and fathers-in-law,
22442244 17 sons-in-law and daughters-in-law, and any other person who
22452245 18 shares the person's home.
22462246 19 (7) (8) "Department" refers to the members of the department of
22472247 20 financial institutions.
22482248 21 (9) "Digital asset mining" has the meaning set forth in
22492249 22 IC 34-30-34.5-3.
22502250 23 (10) "Digital asset mining business" has the meaning set forth
22512251 24 in IC 8-1-2-4.4.
22522252 25 (8) (11) "Director" refers to the director of the department
22532253 26 appointed under IC 28-11-2-1.
22542254 27 (9) (12) "Eligible rating" means a credit rating of any of the three
22552255 28 (3) highest rating categories provided by an eligible rating
22562256 29 service, including any rating category modifiers, such as "plus" or
22572257 30 "minus" for S&P Global, or an equivalent modifier for any other
22582258 31 eligible rating service. The term includes the following:
22592259 32 (A) A long term credit rating equal to at least A- by S&P
22602260 33 Global, or an equivalent long term credit rating for any other
22612261 34 eligible rating service.
22622262 35 (B) A short term credit rating equal to at least A-2 by S&P
22632263 36 Global, or an equivalent short term credit rating for any other
22642264 37 eligible rating service.
22652265 38 In any case in which the credit ratings differ among eligible rating
22662266 39 services, the highest rating applies in determining whether the
22672267 40 credit rating is an "eligible rating" as defined in this subdivision.
22682268 41 (10) (13) "Eligible rating service" means:
22692269 42 (A) a nationally recognized statistical rating organization, as
22702270 2024 IN 1388—LS 6710/DI 119 53
22712271 1 defined by the United States Securities and Exchange
22722272 2 Commission; or
22732273 3 (B) any other organization designated as such by the director.
22742274 4 (11) (14) "Federally insured depository financial institution"
22752275 5 means:
22762276 6 (A) a bank;
22772277 7 (B) a credit union;
22782278 8 (C) a savings and loan association;
22792279 9 (D) a trust company;
22802280 10 (E) a corporate fiduciary;
22812281 11 (F) a savings association;
22822282 12 (G) a savings bank;
22832283 13 (H) an industrial bank; or
22842284 14 (I) an industrial loan company;
22852285 15 that is organized under the law of the United States or any state of
22862286 16 the United States and that has federally or privately insured
22872287 17 deposits as permitted by state or federal law.
22882288 18 (12) (15) "In Indiana", with respect to the location of a
22892289 19 transaction, means the following:
22902290 20 (A) At a physical location in Indiana, for a transaction
22912291 21 requested in person.
22922292 22 (B) For a transaction requested electronically or by telephone,
22932293 23 a determination made by the provider of money transmission,
22942294 24 by relying on the following, that the person requesting the
22952295 25 transaction is in Indiana:
22962296 26 (i) Information, provided by the person, regarding the
22972297 27 location of the individual's residential address or the
22982298 28 business entity's principal place of business or other physical
22992299 29 address location, as applicable.
23002300 30 (ii) Any records associated with the person that the provider
23012301 31 of money transmission may have that indicate the person's
23022302 32 location, including an address associated with an account.
23032303 33 (13) (16) "Individual" means a natural person.
23042304 34 (14) (17) "Key individual" means an individual ultimately
23052305 35 responsible for establishing or directing policies and procedures
23062306 36 of a licensee, such as an executive officer, manager, director, or
23072307 37 trustee.
23082308 38 (15) (18) "Licensee" means a person licensed under this chapter.
23092309 39 (16) (19) "Material litigation" means litigation that, according to
23102310 40 United States generally accepted accounting principles, is
23112311 41 significant to a person's financial health and would be required to
23122312 42 be disclosed in the person's annual audited financial statements,
23132313 2024 IN 1388—LS 6710/DI 119 54
23142314 1 report to shareholders, or similar records.
23152315 2 (17) (20) "Money" means a medium of exchange that is issued by
23162316 3 the United States government or by a foreign government. The
23172317 4 term includes a monetary unit of account established by an
23182318 5 intergovernmental organization or by agreement between two (2)
23192319 6 or more governments.
23202320 7 (18) (21) "Monetary value" means a medium of exchange,
23212321 8 whether or not redeemable in money.
23222322 9 (19) (22) "Money transmission" means any of the following:
23232323 10 (A) Selling or issuing payment instruments to a person located
23242324 11 in Indiana.
23252325 12 (B) Selling or issuing stored value to a person located in
23262326 13 Indiana.
23272327 14 (C) Receiving money for transmission from a person located
23282328 15 in Indiana.
23292329 16 The term does not include the provision of solely online or
23302330 17 telecommunications services or network access. The term does
23312331 18 not include digital asset mining, operating a digital asset
23322332 19 mining business, transferring digital assets exclusively on a
23332333 20 blockchain protocol, staking, staking as a service, or operating
23342334 21 a node or series of nodes on a blockchain protocol.
23352335 22 (20) (23) "MSB accredited state" means a state agency that is
23362336 23 accredited by the Conference of State Bank Supervisors and
23372337 24 Money Transmitter Regulators Association for money
23382338 25 transmission licensing and supervision.
23392339 26 (21) (24) "Multistate licensing process" means an agreement
23402340 27 entered into by and among state regulators related to:
23412341 28 (A) coordinated processing of applications for money
23422342 29 transmission licenses;
23432343 30 (B) applications for the acquisition and control of a licensee;
23442344 31 (C) control determinations; or
23452345 32 (D) notice and information requirements for a change of key
23462346 33 individuals.
23472347 34 (22) (25) "NMLS" means the Nationwide Multistate Licensing
23482348 35 System and Registry:
23492349 36 (A) developed by the Conference of State Bank Supervisors
23502350 37 and the American Association of Residential Mortgage
23512351 38 Regulators; and
23522352 39 (B) owned and operated by the State Regulatory Registry,
23532353 40 LLC, or by any successor or affiliated entity;
23542354 41 for the licensing and registry of persons in financial services
23552355 42 industries.
23562356 2024 IN 1388—LS 6710/DI 119 55
23572357 1 (26) "Node" has the meaning set forth in IC 34-30-34.5-4.
23582358 2 (23) (27) "Outstanding money transmission obligation", as
23592359 3 established and extinguished in accordance with applicable state
23602360 4 law, means:
23612361 5 (A) any payment instrument or stored value that:
23622362 6 (i) is issued or sold by a licensee to a person located in the
23632363 7 United States, or reported as sold by an authorized delegate
23642364 8 of the licensee to a person located in the United States; and
23652365 9 (ii) has not yet been paid or refunded by or for the licensee,
23662366 10 or escheated in accordance with applicable abandoned
23672367 11 property laws; or
23682368 12 (B) any money that:
23692369 13 (i) is received for transmission by a licensee, or by an
23702370 14 authorized delegate of the licensee, from a person located in
23712371 15 the United States; and
23722372 16 (ii) has not been received by the payee or refunded to the
23732373 17 seller, or escheated in accordance with applicable
23742374 18 abandoned property laws.
23752375 19 For purposes of this subdivision, a person is located "in the
23762376 20 United States" if the person is located in any state, territory, or
23772377 21 possession of the United States or in the District of Columbia, the
23782378 22 Commonwealth of Puerto Rico, or a United States military
23792379 23 installation located in a foreign country.
23802380 24 (24) (28) "Passive investor" means a person that:
23812381 25 (A) does not have the power to elect a majority of key
23822382 26 individuals or executive officers, managers, directors, trustees,
23832383 27 or other persons exercising managerial authority over a person
23842384 28 in control of a licensee;
23852385 29 (B) is not employed by and does not have any managerial
23862386 30 duties with respect to the licensee or a person in control of the
23872387 31 licensee;
23882388 32 (C) does not have the power to exercise, directly or indirectly,
23892389 33 a controlling influence over the management or policies of the
23902390 34 licensee or a person in control of the licensee; and
23912391 35 (D) either:
23922392 36 (i) attests to as facts the characteristics of passivity set forth
23932393 37 in clauses (A) through (C), in a form and by a medium
23942394 38 prescribed by the director; or
23952395 39 (ii) commits to the characteristics of passivity set forth in
23962396 40 clauses (A) through (C) in a written document.
23972397 41 (25) (29) "Payment instrument" means a written or electronic
23982398 42 check, draft, money order, traveler's check, or other written or
23992399 2024 IN 1388—LS 6710/DI 119 56
24002400 1 electronic instrument for the transmission or payment of money
24012401 2 or monetary value, whether or not negotiable. The term does not
24022402 3 include:
24032403 4 (A) stored value; or
24042404 5 (B) any instrument that:
24052405 6 (i) is redeemable by the issuer only for goods or services
24062406 7 provided by the issuer or its affiliate, or franchisees of the
24072407 8 issuer or its affiliate, except to the extent required by
24082408 9 applicable law to be redeemable in cash for its cash value;
24092409 10 or
24102410 11 (ii) is not sold to the public but is issued and distributed as
24112411 12 part of a loyalty, rewards, or promotional program.
24122412 13 (26) (30) "Person" means any individual, general partnership,
24132413 14 limited partnership, limited liability company, corporation, trust,
24142414 15 association, joint stock corporation, or other corporate entity, as
24152415 16 so identified by the director.
24162416 17 (27) (31) "Receiving money for transmission" means receiving
24172417 18 money or monetary value in the United States for transmission
24182418 19 within or outside the United States by electronic or other means.
24192419 20 The term "money received for transmission" has a corresponding
24202420 21 meaning.
24212421 22 (32) "Staking" has the meaning set forth in IC 34-30-34.5-5.
24222422 23 (33) "Staking as a service" has the meaning set forth in
24232423 24 IC 34-30-34.5-6.
24242424 25 (28) (34) "Stored value" means monetary value representing a
24252425 26 claim, against the issuer, that is evidenced by an electronic or
24262426 27 digital record and that is intended and accepted for use as a means
24272427 28 of redemption for money or monetary value, or payment for goods
24282428 29 or services. The term includes "prepaid access" as defined in 31
24292429 30 CFR 1010.100. The term does not include:
24302430 31 (A) a payment instrument;
24312431 32 (B) closed loop stored value; or
24322432 33 (C) stored value not sold to the public but issued and
24332433 34 distributed as part of a loyalty, rewards, or promotional
24342434 35 program.
24352435 36 (29) (35) "Tangible net worth" means the aggregate assets of a
24362436 37 licensee, excluding all intangible assets, less liabilities, as
24372437 38 determined in accordance with United States generally accepted
24382438 39 accounting principles.
24392439 40 SECTION 10. IC 34-30-34.5 IS ADDED TO THE INDIANA
24402440 41 CODE AS A NEW CHAPTER TO READ AS FOLLOWS
24412441 42 [EFFECTIVE JULY 1, 2024]:
24422442 2024 IN 1388—LS 6710/DI 119 57
24432443 1 Chapter 34.5. Immunity for Digital Asset Mining
24442444 2 Sec. 1. As used in this chapter, "blockchain" means data that is:
24452445 3 (1) shared across a network to create a ledger of verified
24462446 4 transactions or information among network participants
24472447 5 linked using cryptography to maintain the integrity of the
24482448 6 ledger and to execute other functions; and
24492449 7 (2) distributed among network participants in an automated
24502450 8 fashion to concurrently update network participants on the
24512451 9 state of the ledger and any other functions.
24522452 10 Sec. 2. As used in this chapter, "blockchain protocol" means any
24532453 11 executable software deployed to a blockchain composed of source
24542454 12 code that is publicly available and accessible, including a smart
24552455 13 contract or network of smart contracts.
24562456 14 Sec. 3. As used in this chapter, "digital asset mining" means the
24572457 15 use of one (1) or more nodes for the purpose of securing a
24582458 16 blockchain protocol.
24592459 17 Sec. 4. As used in this chapter, "node" means a computational
24602460 18 device that does one (1) or more of the following:
24612461 19 (1) Communicates with other devices or participants on a
24622462 20 blockchain to maintain consensus and integrity of the
24632463 21 blockchain.
24642464 22 (2) Contains and validates transaction blocks.
24652465 23 (3) Contains and updates a copy of the blockchain.
24662466 24 Sec. 5. "Staking" means the act of committing digital assets for
24672467 25 a period of time to validate and secure a specific blockchain
24682468 26 protocol using a node to lock digital assets in order to operate the
24692469 27 consensus mechanism of a blockchain protocol.
24702470 28 Sec. 6. "Staking as a service" means the provision of technical
24712471 29 staking services, including the operation of nodes and associated
24722472 30 infrastructure, necessary to facilitate participation in the consensus
24732473 31 mechanisms of blockchain protocols.
24742474 32 Sec. 7. Notwithstanding any other provision of law, a person
24752475 33 that engages in any of the following with respect to a transaction
24762476 34 on a blockchain network is not subject to civil liability solely for
24772477 35 the person's validation of the transaction:
24782478 36 (1) Digital asset mining.
24792479 37 (2) Operating a node or series of nodes on a blockchain
24802480 38 network.
24812481 39 (3) Staking or providing staking as a service.
24822482 40 SECTION 11. IC 35-46-7-2, AS AMENDED BY P.L.27-2007,
24832483 41 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24842484 42 JULY 1, 2024]: Sec. 2. This chapter does not apply to the following:
24852485 2024 IN 1388—LS 6710/DI 119 58
24862486 1 (1) A gift or donation of money or other asset given to:
24872487 2 (A) a health care provider in the corporate name of the health
24882488 3 care provider; or
24892489 4 (B) a health care provider that is organized under Section
24902490 5 501(c)(3) of the Internal Revenue Code.
24912491 6 (2) A gift or loan of money or other asset given by a person who
24922492 7 receives services from a health care provider to a member of the
24932493 8 person's family who:
24942494 9 (A) is employed by a health care provider; or
24952495 10 (B) owns, wholly or jointly, a health care provider.
24962496 11 (3) A bequest of personal property or devise of real property made
24972497 12 in an executable will as described in IC 29-1-5-5 to a health care
24982498 13 provider or an owner, employee, or agent of a health care
24992499 14 provider.
25002500 15 (4) The purchase of a security (as defined in IC 23-19-1-2(28))
25012501 16 IC 23-19-1-2(29)) that is traded on a national or regional
25022502 17 exchange.
25032503 18 (5) A gift or gratuity, not exceeding five hundred dollars ($500)
25042504 19 in the aggregate per year per person receiving services from the
25052505 20 health care provider, to an employee of a health care provider.
25062506 21 (6) A gift or donation of money or other asset given to purchase
25072507 22 or otherwise acquire a product, service, or amenity for the use,
25082508 23 entertainment, or enjoyment of persons receiving services from a
25092509 24 health care provider.
25102510 25 SECTION 12. IC 36-1-3-14 IS ADDED TO THE INDIANA CODE
25112511 26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
25122512 27 1, 2024]: Sec. 14. (a) The following definitions apply throughout
25132513 28 this section:
25142514 29 (1) "Digital asset" has the meaning set forth in IC 6-3-1-4.2.
25152515 30 (2) "Hardware wallet" means a physical device that is not
25162516 31 continuously connected to the Internet and allows an
25172517 32 individual to secure and transfer digital assets and under
25182518 33 which the owner of the digital assets retains independent
25192519 34 control over the digital assets.
25202520 35 (3) "Self hosted wallet" means a digital interface used to
25212521 36 secure and transfer digital assets and under which the owner
25222522 37 of the digital assets retains independent control over the
25232523 38 digital assets that is secured by the digital interface.
25242524 39 (b) A unit may not adopt or enforce an ordinance that would
25252525 40 have the effect of prohibiting, restricting, or impairing an
25262526 41 individual's ability to:
25272527 42 (1) use digital assets to purchase legal goods and services; or
25282528 2024 IN 1388—LS 6710/DI 119 59
25292529 1 (2) use a hardware wallet or self-hosted wallet to store the
25302530 2 individual's digital assets.
25312531 3 SECTION 13. IC 36-1-30.5 IS ADDED TO THE INDIANA CODE
25322532 4 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
25332533 5 JULY 1, 2024]:
25342534 6 Chapter 30.5. Regulation of Digital Asset Mining
25352535 7 Sec. 1. As used in this chapter, "blockchain" has the meaning set
25362536 8 forth in IC 34-30-34.5-1.
25372537 9 Sec. 2. As used in this chapter, "digital asset mining business"
25382538 10 has the meaning set forth in IC 8-1-2-4.4.
25392539 11 Sec. 3. As used in this chapter, "node" has the meaning set forth
25402540 12 in IC 34-30-34.5-4.
25412541 13 Sec. 4. Use of a property for a digital asset mining business is a
25422542 14 permitted industrial use under any applicable zoning ordinance of
25432543 15 a unit and may not be disallowed by a zoning ordinance (as defined
25442544 16 in IC 36-7-1-22) in a zoning district or classification of a unit that
25452545 17 permits industrial use.
25462546 18 Sec. 5. A unit may enact or enforce a law or plan that regulates,
25472547 19 prohibits, or limits use of property for digital asset mining in an
25482548 20 industrial zoning district or classification of a unit only:
25492549 21 (1) for the purpose of zoning regulations related to noise; and
25502550 22 (2) if enforcement is performed in the same manner as
25512551 23 enforcement that applies to similar properties that are not
25522552 24 used for digital asset mining businesses.
25532553 25 Sec. 6. A unit may not:
25542554 26 (1) require a special exception, special use, or zoning variance
25552555 27 for the use of a property for a digital asset mining business in
25562556 28 an industrial zoning district or classification of a unit;
25572557 29 (2) interpret and enforce the unit's zoning regulations in a
25582558 30 manner that is intended for or has the effect of prohibiting or
25592559 31 unreasonably restricting the use of industrial property for a
25602560 32 digital asset mining business; or
25612561 33 (3) require a permit for the use of a property for a digital
25622562 34 asset mining business in an area that is zoned for industrial
25632563 35 use.
25642564 36 Sec. 7. A unit may change the zoning classification of a property
25652565 37 used for a digital asset mining business only as provided under
25662566 38 IC 36-7-4.
25672567 39 SECTION 14. An emergency is declared for this act.
25682568 2024 IN 1388—LS 6710/DI 119