Indiana 2024 Regular Session

Indiana Senate Bill SB0098 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 98
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-1-3.5; IC 6-3-2-27.
7	7	Synopsis: Dependent child exemptions. Provides that a fetus is
8	8	considered a dependent child for purposes of the dependent child state
9	9	adjusted gross income exemptions.
10	10	Effective: January 1, 2024 (retroactive).
11	11	Zay
12	12	January 8, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
13	13	2024 IN 98—LS 6259/DI 120 Introduced
14	14	Second Regular Session of the 123rd General Assembly (2024)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2023 Regular Session of the General Assembly.
24	24	SENATE BILL No. 98
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.236-2023,
29	29	2 SECTION 63, AND AS AMENDED BY P.L.194-2023, SECTION 7,
30	30	3 AND AS AMENDED BY P.L.201-2023, SECTION 94, AND AS
31	31	4 AMENDED BY P.L.202-2023, SECTION 7, AND AS AMENDED BY
32	32	5 THE TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
33	33	6 ASSEMBLY, IS CORRECTED AND AMENDED TO READ AS
34	34	7 FOLLOWS [EFFECTIVE JANUARY 1, 2024 (RETROACTIVE)]:
35	35	8 Sec. 3.5. When used in this article, the term "adjusted gross income"
36	36	9 shall mean the following:
37	37	10 (a) In the case of all individuals, "adjusted gross income" (as
38	38	11 defined in Section 62 of the Internal Revenue Code), modified as
39	39	12 follows:
40	40	13 (1) Subtract income that is exempt from taxation under this article
41	41	14 by the Constitution and statutes of the United States.
42	42	15 (2) Except as provided in subsection (c), add an amount equal to
43	43	16 any deduction or deductions allowed or allowable pursuant to
44	44	17 Section 62 of the Internal Revenue Code for taxes based on or
45	45	2024 IN 98—LS 6259/DI 120 2
46	46	1 measured by income and levied at the state level by any state of
47	47	2 the United States.
48	48	3 (3) Subtract one thousand dollars ($1,000), or in the case of a
49	49	4 joint return filed by a husband and wife, subtract for each spouse
50	50	5 one thousand dollars ($1,000).
51	51	6 (4) Subtract one thousand dollars ($1,000) for:
52	52	7 (A) each of the exemptions provided by Section 151(c) of the
53	53	8 Internal Revenue Code (as effective January 1, 2017), except
54	54	9 that a fetus (as defined in IC 16-18-2-128.7) is considered
55	55	10 a dependent child for purposes of this exemption if the
56	56	11 taxpayer provides the information required under
57	57	12 IC 6-3-2-27;
58	58	13 (B) each additional amount allowable under Section 63(f) of
59	59	14 the Internal Revenue Code; and
60	60	15 (C) the spouse of the taxpayer if a separate return is made by
61	61	16 the taxpayer and if the spouse, for the calendar year in which
62	62	17 the taxable year of the taxpayer begins, has no gross income
63	63	18 and is not the dependent of another taxpayer.
64	64	19 (5) Subtract each of the following:
65	65	20 (A) One thousand five hundred dollars ($1,500) for each of the
66	66	21 exemptions allowed under Section 151(c)(1)(B) of the Internal
67	67	22 Revenue Code (as effective January 1, 2004), except that in
68	68	23 the first taxable year in which a particular exemption is
69	69	24 allowed under Section 151(c)(1)(B) of the Internal Revenue
70	70	25 Code (as effective January 1, 2004), subtract three thousand
71	71	26 dollars ($3,000) for that exemption, and except that a fetus
72	72	27 (as defined in IC 16-18-2-128.7) is considered a dependent
73	73	28 child for purposes of this exemption if the taxpayer
74	74	29 provides the information required under IC 6-3-2-27.
75	75	30 (B) One thousand five hundred dollars ($1,500) for each
76	76	31 exemption allowed under Section 151(c) of the Internal
77	77	32 Revenue Code (as effective January 1, 2017) for an individual:
78	78	33 (i) who is less than nineteen (19) years of age or is a
79	79	34 full-time student who is less than twenty-four (24) years of
80	80	35 age;
81	81	36 (ii) for whom the taxpayer is the legal guardian; and
82	82	37 (iii) for whom the taxpayer does not claim an exemption
83	83	38 under clause (A).
84	84	39 (C) Five hundred dollars ($500) for each additional amount
85	85	40 allowable under Section 63(f)(1) of the Internal Revenue Code
86	86	41 if the federal adjusted gross income of the taxpayer, or the
87	87	42 taxpayer and the taxpayer's spouse in the case of a joint return,
88	88	2024 IN 98—LS 6259/DI 120 3
89	89	1 is less than forty thousand dollars ($40,000). In the case of a
90	90	2 married individual filing a separate return, the qualifying
91	91	3 income amount in this clause is equal to twenty thousand
92	92	4 dollars ($20,000).
93	93	5 (D) Three thousand dollars ($3,000) for each exemption
94	94	6 allowed under Section 151(c) of the Internal Revenue Code (as
95	95	7 effective January 1, 2017) for an individual who is:
96	96	8 (i) an adopted child of the taxpayer; and
97	97	9 (ii) less than nineteen (19) years of age or is a full-time
98	98	10 student who is less than twenty-four (24) years of age.
99	99	11 This amount is in addition to any amount subtracted under
100	100	12 clause (A) or (B).
101	101	13 This amount is in addition to the amount subtracted under
102	102	14 subdivision (4).
103	103	15 (6) Subtract any amounts included in federal adjusted gross
104	104	16 income under Section 111 of the Internal Revenue Code as a
105	105	17 recovery of items previously deducted as an itemized deduction
106	106	18 from adjusted gross income.
107	107	19 (7) Subtract any amounts included in federal adjusted gross
108	108	20 income under the Internal Revenue Code which amounts were
109	109	21 received by the individual as supplemental railroad retirement
110	110	22 annuities under 45 U.S.C. 231 and which are not deductible under
111	111	23 subdivision (1).
112	112	24 (8) Subtract an amount equal to the amount of federal Social
113	113	25 Security and Railroad Retirement benefits included in a taxpayer's
114	114	26 federal gross income by Section 86 of the Internal Revenue Code.
115	115	27 (9) In the case of a nonresident taxpayer or a resident taxpayer
116	116	28 residing in Indiana for a period of less than the taxpayer's entire
117	117	29 taxable year, the total amount of the deductions allowed pursuant
118	118	30 to subdivisions (3), (4), and (5) shall be reduced to an amount
119	119	31 which bears the same ratio to the total as the taxpayer's income
120	120	32 taxable in Indiana bears to the taxpayer's total income.
121	121	33 (10) In the case of an individual who is a recipient of assistance
122	122	34 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
123	123	35 subtract an amount equal to that portion of the individual's
124	124	36 adjusted gross income with respect to which the individual is not
125	125	37 allowed under federal law to retain an amount to pay state and
126	126	38 local income taxes.
127	127	39 (11) In the case of an eligible individual, subtract the amount of
128	128	40 a Holocaust victim's settlement payment included in the
129	129	41 individual's federal adjusted gross income.
130	130	42 (12) Subtract an amount equal to the portion of any premiums
131	131	2024 IN 98—LS 6259/DI 120 4
132	132	1 paid during the taxable year by the taxpayer for a qualified long
133	133	2 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
134	134	3 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
135	135	4 file a joint income tax return or the taxpayer is otherwise entitled
136	136	5 to a deduction under this subdivision for the taxpayer's spouse, or
137	137	6 both.
138	138	7 (13) Subtract an amount equal to the lesser of:
139	139	8 (A) two thousand five hundred dollars ($2,500), or one
140	140	9 thousand two hundred fifty dollars ($1,250) in the case of a
141	141	10 married individual filing a separate return; or
142	142	11 (B) the amount of property taxes that are paid during the
143	143	12 taxable year in Indiana by the individual on the individual's
144	144	13 principal place of residence.
145	145	14 (14) Subtract an amount equal to the amount of a September 11
146	146	15 terrorist attack settlement payment included in the individual's
147	147	16 federal adjusted gross income.
148	148	17 (15) Add or subtract the amount necessary to make the adjusted
149	149	18 gross income of any taxpayer that owns property for which bonus
150	150	19 depreciation was allowed in the current taxable year or in an
151	151	20 earlier taxable year equal to the amount of adjusted gross income
152	152	21 that would have been computed had an election not been made
153	153	22 under Section 168(k) of the Internal Revenue Code to apply bonus
154	154	23 depreciation to the property in the year that it was placed in
155	155	24 service.
156	156	25 (16) Add an amount equal to any deduction allowed under
157	157	26 Section 172 of the Internal Revenue Code (concerning net
158	158	27 operating losses).
159	159	28 (17) Add or subtract the amount necessary to make the adjusted
160	160	29 gross income of any taxpayer that placed Section 179 property (as
161	161	30 defined in Section 179 of the Internal Revenue Code) in service
162	162	31 in the current taxable year or in an earlier taxable year equal to
163	163	32 the amount of adjusted gross income that would have been
164	164	33 computed had an election for federal income tax purposes not
165	165	34 been made for the year in which the property was placed in
166	166	35 service to take deductions under Section 179 of the Internal
167	167	36 Revenue Code in a total amount exceeding the sum of:
168	168	37 (A) twenty-five thousand dollars ($25,000) to the extent
169	169	38 deductions under Section 179 of the Internal Revenue Code
170	170	39 were not elected as provided in clause (B); and
171	171	40 (B) for taxable years beginning after December 31, 2017, the
172	172	41 deductions elected under Section 179 of the Internal Revenue
173	173	42 Code on property acquired in an exchange if:
174	174	2024 IN 98—LS 6259/DI 120 5
175	175	1 (i) the exchange would have been eligible for
176	176	2 nonrecognition of gain or loss under Section 1031 of the
177	177	3 Internal Revenue Code in effect on January 1, 2017;
178	178	4 (ii) the exchange is not eligible for nonrecognition of gain or
179	179	5 loss under Section 1031 of the Internal Revenue Code; and
180	180	6 (iii) the taxpayer made an election to take deductions under
181	181	7 Section 179 of the Internal Revenue Code with regard to the
182	182	8 acquired property in the year that the property was placed
183	183	9 into service.
184	184	10 The amount of deductions allowable for an item of property
185	185	11 under this clause may not exceed the amount of adjusted gross
186	186	12 income realized on the property that would have been deferred
187	187	13 under the Internal Revenue Code in effect on January 1, 2017.
188	188	14 (18) Subtract an amount equal to the amount of the taxpayer's
189	189	15 qualified military income that was not excluded from the
190	190	16 taxpayer's gross income for federal income tax purposes under
191	191	17 Section 112 of the Internal Revenue Code.
192	192	18 (19) Subtract income that is:
193	193	19 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
194	194	20 derived from patents); and
195	195	21 (B) included in the individual's federal adjusted gross income
196	196	22 under the Internal Revenue Code.
197	197	23 (20) Add an amount equal to any income not included in gross
198	198	24 income as a result of the deferral of income arising from business
199	199	25 indebtedness discharged in connection with the reacquisition after
200	200	26 December 31, 2008, and before January 1, 2011, of an applicable
201	201	27 debt instrument, as provided in Section 108(i) of the Internal
202	202	28 Revenue Code. Subtract the amount necessary from the adjusted
203	203	29 gross income of any taxpayer that added an amount to adjusted
204	204	30 gross income in a previous year to offset the amount included in
205	205	31 federal gross income as a result of the deferral of income arising
206	206	32 from business indebtedness discharged in connection with the
207	207	33 reacquisition after December 31, 2008, and before January 1,
208	208	34 2011, of an applicable debt instrument, as provided in Section
209	209	35 108(i) of the Internal Revenue Code.
210	210	36 (21) Add the amount excluded from federal gross income under
211	211	37 Section 103 of the Internal Revenue Code for interest received on
212	212	38 an obligation of a state other than Indiana, or a political
213	213	39 subdivision of such a state, that is acquired by the taxpayer after
214	214	40 December 31, 2011. For purposes of this subdivision:
215	215	41 (A) if the taxpayer receives interest from a pass through entity,
216	216	42 a regulated investment company, a hedge fund, or similar
217	217	2024 IN 98—LS 6259/DI 120 6
218	218	1 arrangement, the taxpayer will be considered to have
219	219	2 acquired the obligation on the date the entity acquired the
220	220	3 obligation;
221	221	4 (B) if ownership of the obligation occurs by means other than
222	222	5 a purchase, the date of acquisition of the obligation shall be
223	223	6 the date ownership of the obligation was transferred, except
224	224	7 to the extent provided in clause (A), and if a portion of the
225	225	8 obligation is acquired on multiple dates, the date of
226	226	9 acquisition shall be considered separately for each portion of
227	227	10 the obligation; and
228	228	11 (C) if ownership of the obligation occurred as the result of a
229	229	12 refinancing of another obligation, the acquisition date shall be
230	230	13 the date on which the obligation was refinanced.
231	231	14 (22) Subtract an amount as described in Section 1341(a)(2) of the
232	232	15 Internal Revenue Code to the extent, if any, that the amount was
233	233	16 previously included in the taxpayer's adjusted gross income for a
234	234	17 prior taxable year.
235	235	18 (23) For taxable years beginning after December 25, 2016, add an
236	236	19 amount equal to the deduction for deferred foreign income that
237	237	20 was claimed by the taxpayer for the taxable year under Section
238	238	21 965(c) of the Internal Revenue Code.
239	239	22 (24) Subtract any interest expense paid or accrued in the current
240	240	23 taxable year but not deducted as a result of the limitation imposed
241	241	24 under Section 163(j)(1) of the Internal Revenue Code. Add any
242	242	25 interest expense paid or accrued in a previous taxable year but
243	243	26 allowed as a deduction under Section 163 of the Internal Revenue
244	244	27 Code in the current taxable year. For purposes of this subdivision,
245	245	28 an interest expense is considered paid or accrued only in the first
246	246	29 taxable year the deduction would have been allowable under
247	247	30 Section 163 of the Internal Revenue Code if the limitation under
248	248	31 Section 163(j)(1) of the Internal Revenue Code did not exist.
249	249	32 (25) Subtract the amount that would have been excluded from
250	250	33 gross income but for the enactment of Section 118(b)(2) of the
251	251	34 Internal Revenue Code for taxable years ending after December
252	252	35 22, 2017.
253	253	36 (26) For taxable years beginning after December 31, 2019, and
254	254	37 before January 1, 2021, add an amount of the deduction claimed
255	255	38 under Section 62(a)(22) of the Internal Revenue Code.
256	256	39 (27) For taxable years beginning after December 31, 2019, for
257	257	40 payments made by an employer under an education assistance
258	258	41 program after March 27, 2020:
259	259	42 (A) add the amount of payments by an employer that are
260	260	2024 IN 98—LS 6259/DI 120 7
261	261	1 excluded from the taxpayer's federal gross income under
262	262	2 Section 127(c)(1)(B) of the Internal Revenue Code; and
263	263	3 (B) deduct the interest allowable under Section 221 of the
264	264	4 Internal Revenue Code, if the disallowance under Section
265	265	5 221(e)(1) of the Internal Revenue Code did not apply to the
266	266	6 payments described in clause (A). For purposes of applying
267	267	7 Section 221(b) of the Internal Revenue Code to the amount
268	268	8 allowable under this clause, the amount under clause (A) shall
269	269	9 not be added to adjusted gross income.
270	270	10 (28) Add an amount equal to the remainder of:
271	271	11 (A) the amount allowable as a deduction under Section 274(n)
272	272	12 of the Internal Revenue Code; minus
273	273	13 (B) the amount otherwise allowable as a deduction under
274	274	14 Section 274(n) of the Internal Revenue Code, if Section
275	275	15 274(n)(2)(D) of the Internal Revenue Code was not in effect
276	276	16 for amounts paid or incurred after December 31, 2020.
277	277	17 (29) For taxable years beginning after December 31, 2017, and
278	278	18 before January 1, 2021, add an amount equal to the excess
279	279	19 business loss of the taxpayer as defined in Section 461(l)(3) of the
280	280	20 Internal Revenue Code. In addition:
281	281	21 (A) If a taxpayer has an excess business loss under this
282	282	22 subdivision and also has modifications under subdivisions (15)
283	283	23 and (17) for property placed in service during the taxable year,
284	284	24 the taxpayer shall treat a portion of the taxable year
285	285	25 modifications for that property as occurring in the taxable year
286	286	26 the property is placed in service and a portion of the
287	287	27 modifications as occurring in the immediately following
288	288	28 taxable year.
289	289	29 (B) The portion of the modifications under subdivisions (15)
290	290	30 and (17) for property placed in service during the taxable year
291	291	31 treated as occurring in the taxable year in which the property
292	292	32 is placed in service equals:
293	293	33 (i) the modification for the property otherwise determined
294	294	34 under this section; minus
295	295	35 (ii) the excess business loss disallowed under this
296	296	36 subdivision;
297	297	37 but not less than zero (0).
298	298	38 (C) The portion of the modifications under subdivisions (15)
299	299	39 and (17) for property placed in service during the taxable year
300	300	40 treated as occurring in the taxable year immediately following
301	301	41 the taxable year in which the property is placed in service
302	302	42 equals the modification for the property otherwise determined
303	303	2024 IN 98—LS 6259/DI 120 8
304	304	1 under this section minus the amount in clause (B).
305	305	2 (D) Any reallocation of modifications between taxable years
306	306	3 under clauses (B) and (C) shall be first allocated to the
307	307	4 modification under subdivision (15), then to the modification
308	308	5 under subdivision (17).
309	309	6 (30) Add an amount equal to the amount excluded from federal
310	310	7 gross income under Section 108(f)(5) of the Internal Revenue
311	311	8 Code. For purposes of this subdivision:
312	312	9 (A) if an amount excluded under Section 108(f)(5) of the
313	313	10 Internal Revenue Code would be excludible under Section
314	314	11 108(a)(1)(B) of the Internal Revenue Code, the exclusion
315	315	12 under Section 108(a)(1)(B) of the Internal Revenue Code shall
316	316	13 take precedence; and
317	317	14 (B) if an amount would have been excludible under Section
318	318	15 108(f)(5) of the Internal Revenue Code as in effect on January
319	319	16 1, 2020, the amount is not required to be added back under this
320	320	17 subdivision.
321	321	18 (31) For taxable years ending after March 12, 2020, subtract an
322	322	19 amount equal to the deduction disallowed pursuant to:
323	323	20 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
324	324	21 as modified by Sections 206 and 207 of the Taxpayer Certainty
325	325	22 and Disaster Relief Tax Act (Division EE of Public Law
326	326	23 116-260); and
327	327	24 (B) Section 3134(e) of the Internal Revenue Code.
328	328	25 (32) Subtract the amount of an ESA annual grant amount and, as
329	329	26 applicable, a CSA annual grant amount distributed to a taxpayer's
330	330	27 Indiana education scholarship account under IC 20-51.4-4-2
331	331	28 IC 20-51.4 that is used for a an ESA or CSA qualified expense (as
332	332	29 defined in IC 20-51.4-2-9) IC 20-51.4-2) or to an Indiana
333	333	30 enrichment scholarship account under IC 20-52 that is used for
334	334	31 qualified expenses (as defined in IC 20-52-2-6), to the extent the
335	335	32 distribution used for the qualified expense is included in the
336	336	33 taxpayer's federal adjusted gross income under the Internal
337	337	34 Revenue Code.
338	338	35 (33) For taxable years beginning after December 31, 2019, and
339	339	36 before January 1, 2021, add an amount equal to the amount of
340	340	37 unemployment compensation excluded from federal gross income
341	341	38 under Section 85(c) of the Internal Revenue Code.
342	342	39 (34) For taxable years beginning after December 31, 2022,
343	343	40 subtract an amount equal to the deduction disallowed under
344	344	41 Section 280C(h) of the Internal Revenue Code.
345	345	42 (35) For taxable years beginning after December 31, 2021, add
346	346	2024 IN 98—LS 6259/DI 120 9
347	347	1 or subtract amounts related to specified research or experimental
348	348	2 procedures as required under IC 6-3-2-29.
349	349	3 (35) (36) Subtract any other amounts the taxpayer is entitled to
350	350	4 deduct under IC 6-3-2.
351	351	5 (36) (37) Subtract the amount of a CSA annual grant amount
352	352	6 distributed to a taxpayer's career scholarship account under
353	353	7 IC 20-51.4-4.5 that is used for a CSA qualified expense (as
354	354	8 defined in IC 20-51.4-2-3.8), to the extent the distribution used
355	355	9 for the CSA qualified expense is included in the taxpayer's federal
356	356	10 adjusted gross income under the Internal Revenue Code.
357	357	11 (b) In the case of corporations, the same as "taxable income" (as
358	358	12 defined in Section 63 of the Internal Revenue Code) adjusted as
359	359	13 follows:
360	360	14 (1) Subtract income that is exempt from taxation under this article
361	361	15 by the Constitution and statutes of the United States.
362	362	16 (2) Add an amount equal to any deduction or deductions allowed
363	363	17 or allowable pursuant to Section 170 of the Internal Revenue
364	364	18 Code (concerning charitable contributions).
365	365	19 (3) Except as provided in subsection (c), add an amount equal to
366	366	20 any deduction or deductions allowed or allowable pursuant to
367	367	21 Section 63 of the Internal Revenue Code for taxes based on or
368	368	22 measured by income and levied at the state level by any state of
369	369	23 the United States.
370	370	24 (4) Subtract an amount equal to the amount included in the
371	371	25 corporation's taxable income under Section 78 of the Internal
372	372	26 Revenue Code (concerning foreign tax credits).
373	373	27 (5) Add or subtract the amount necessary to make the adjusted
374	374	28 gross income of any taxpayer that owns property for which bonus
375	375	29 depreciation was allowed in the current taxable year or in an
376	376	30 earlier taxable year equal to the amount of adjusted gross income
377	377	31 that would have been computed had an election not been made
378	378	32 under Section 168(k) of the Internal Revenue Code to apply bonus
379	379	33 depreciation to the property in the year that it was placed in
380	380	34 service.
381	381	35 (6) Add an amount equal to any deduction allowed under Section
382	382	36 172 of the Internal Revenue Code (concerning net operating
383	383	37 losses).
384	384	38 (7) Add or subtract the amount necessary to make the adjusted
385	385	39 gross income of any taxpayer that placed Section 179 property (as
386	386	40 defined in Section 179 of the Internal Revenue Code) in service
387	387	41 in the current taxable year or in an earlier taxable year equal to
388	388	42 the amount of adjusted gross income that would have been
389	389	2024 IN 98—LS 6259/DI 120 10
390	390	1 computed had an election for federal income tax purposes not
391	391	2 been made for the year in which the property was placed in
392	392	3 service to take deductions under Section 179 of the Internal
393	393	4 Revenue Code in a total amount exceeding the sum of:
394	394	5 (A) twenty-five thousand dollars ($25,000) to the extent
395	395	6 deductions under Section 179 of the Internal Revenue Code
396	396	7 were not elected as provided in clause (B); and
397	397	8 (B) for taxable years beginning after December 31, 2017, the
398	398	9 deductions elected under Section 179 of the Internal Revenue
399	399	10 Code on property acquired in an exchange if:
400	400	11 (i) the exchange would have been eligible for
401	401	12 nonrecognition of gain or loss under Section 1031 of the
402	402	13 Internal Revenue Code in effect on January 1, 2017;
403	403	14 (ii) the exchange is not eligible for nonrecognition of gain or
404	404	15 loss under Section 1031 of the Internal Revenue Code; and
405	405	16 (iii) the taxpayer made an election to take deductions under
406	406	17 Section 179 of the Internal Revenue Code with regard to the
407	407	18 acquired property in the year that the property was placed
408	408	19 into service.
409	409	20 The amount of deductions allowable for an item of property
410	410	21 under this clause may not exceed the amount of adjusted gross
411	411	22 income realized on the property that would have been deferred
412	412	23 under the Internal Revenue Code in effect on January 1, 2017.
413	413	24 (8) Add to the extent required by IC 6-3-2-20:
414	414	25 (A) the amount of intangible expenses (as defined in
415	415	26 IC 6-3-2-20) for the taxable year that reduced the corporation's
416	416	27 taxable income (as defined in Section 63 of the Internal
417	417	28 Revenue Code) for federal income tax purposes; and
418	418	29 (B) any directly related interest expenses (as defined in
419	419	30 IC 6-3-2-20) that reduced the corporation's adjusted gross
420	420	31 income (determined without regard to this subdivision). For
421	421	32 purposes of this clause, any directly related interest expense
422	422	33 that constitutes business interest within the meaning of Section
423	423	34 163(j) of the Internal Revenue Code shall be considered to
424	424	35 have reduced the taxpayer's federal taxable income only in the
425	425	36 first taxable year in which the deduction otherwise would have
426	426	37 been allowable under Section 163 of the Internal Revenue
427	427	38 Code if the limitation under Section 163(j)(1) of the Internal
428	428	39 Revenue Code did not exist.
429	429	40 (9) Add an amount equal to any deduction for dividends paid (as
430	430	41 defined in Section 561 of the Internal Revenue Code) to
431	431	42 shareholders of a captive real estate investment trust (as defined
432	432	2024 IN 98—LS 6259/DI 120 11
433	433	1 in section 34.5 of this chapter).
434	434	2 (10) Subtract income that is:
435	435	3 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
436	436	4 derived from patents); and
437	437	5 (B) included in the corporation's taxable income under the
438	438	6 Internal Revenue Code.
439	439	7 (11) Add an amount equal to any income not included in gross
440	440	8 income as a result of the deferral of income arising from business
441	441	9 indebtedness discharged in connection with the reacquisition after
442	442	10 December 31, 2008, and before January 1, 2011, of an applicable
443	443	11 debt instrument, as provided in Section 108(i) of the Internal
444	444	12 Revenue Code. Subtract from the adjusted gross income of any
445	445	13 taxpayer that added an amount to adjusted gross income in a
446	446	14 previous year the amount necessary to offset the amount included
447	447	15 in federal gross income as a result of the deferral of income
448	448	16 arising from business indebtedness discharged in connection with
449	449	17 the reacquisition after December 31, 2008, and before January 1,
450	450	18 2011, of an applicable debt instrument, as provided in Section
451	451	19 108(i) of the Internal Revenue Code.
452	452	20 (12) Add the amount excluded from federal gross income under
453	453	21 Section 103 of the Internal Revenue Code for interest received on
454	454	22 an obligation of a state other than Indiana, or a political
455	455	23 subdivision of such a state, that is acquired by the taxpayer after
456	456	24 December 31, 2011. For purposes of this subdivision:
457	457	25 (A) if the taxpayer receives interest from a pass through entity,
458	458	26 a regulated investment company, a hedge fund, or similar
459	459	27 arrangement, the taxpayer will be considered to have
460	460	28 acquired the obligation on the date the entity acquired the
461	461	29 obligation;
462	462	30 (B) if ownership of the obligation occurs by means other than
463	463	31 a purchase, the date of acquisition of the obligation shall be
464	464	32 the date ownership of the obligation was transferred, except
465	465	33 to the extent provided in clause (A), and if a portion of the
466	466	34 obligation is acquired on multiple dates, the date of
467	467	35 acquisition shall be considered separately for each portion of
468	468	36 the obligation; and
469	469	37 (C) if ownership of the obligation occurred as the result of a
470	470	38 refinancing of another obligation, the acquisition date shall be
471	471	39 the date on which the obligation was refinanced.
472	472	40 (13) For taxable years beginning after December 25, 2016:
473	473	41 (A) for a corporation other than a real estate investment trust,
474	474	42 add:
475	475	2024 IN 98—LS 6259/DI 120 12
476	476	1 (i) an amount equal to the amount reported by the taxpayer
477	477	2 on IRC 965 Transition Tax Statement, line 1; or
478	478	3 (ii) if the taxpayer deducted an amount under Section 965(c)
479	479	4 of the Internal Revenue Code in determining the taxpayer's
480	480	5 taxable income for purposes of the federal income tax, the
481	481	6 amount deducted under Section 965(c) of the Internal
482	482	7 Revenue Code; and
483	483	8 (B) for a real estate investment trust, add an amount equal to
484	484	9 the deduction for deferred foreign income that was claimed by
485	485	10 the taxpayer for the taxable year under Section 965(c) of the
486	486	11 Internal Revenue Code, but only to the extent that the taxpayer
487	487	12 included income pursuant to Section 965 of the Internal
488	488	13 Revenue Code in its taxable income for federal income tax
489	489	14 purposes or is required to add back dividends paid under
490	490	15 subdivision (9).
491	491	16 (14) Add an amount equal to the deduction that was claimed by
492	492	17 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
493	493	18 Internal Revenue Code (attributable to global intangible
494	494	19 low-taxed income). The taxpayer shall separately specify the
495	495	20 amount of the reduction under Section 250(a)(1)(B)(i) of the
496	496	21 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
497	497	22 Internal Revenue Code.
498	498	23 (15) Subtract any interest expense paid or accrued in the current
499	499	24 taxable year but not deducted as a result of the limitation imposed
500	500	25 under Section 163(j)(1) of the Internal Revenue Code. Add any
501	501	26 interest expense paid or accrued in a previous taxable year but
502	502	27 allowed as a deduction under Section 163 of the Internal Revenue
503	503	28 Code in the current taxable year. For purposes of this subdivision,
504	504	29 an interest expense is considered paid or accrued only in the first
505	505	30 taxable year the deduction would have been allowable under
506	506	31 Section 163 of the Internal Revenue Code if the limitation under
507	507	32 Section 163(j)(1) of the Internal Revenue Code did not exist.
508	508	33 (16) Subtract the amount that would have been excluded from
509	509	34 gross income but for the enactment of Section 118(b)(2) of the
510	510	35 Internal Revenue Code for taxable years ending after December
511	511	36 22, 2017.
512	512	37 (17) Add an amount equal to the remainder of:
513	513	38 (A) the amount allowable as a deduction under Section 274(n)
514	514	39 of the Internal Revenue Code; minus
515	515	40 (B) the amount otherwise allowable as a deduction under
516	516	41 Section 274(n) of the Internal Revenue Code, if Section
517	517	42 274(n)(2)(D) of the Internal Revenue Code was not in effect
518	518	2024 IN 98—LS 6259/DI 120 13
519	519	1 for amounts paid or incurred after December 31, 2020.
520	520	2 (18) For taxable years ending after March 12, 2020, subtract an
521	521	3 amount equal to the deduction disallowed pursuant to:
522	522	4 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
523	523	5 as modified by Sections 206 and 207 of the Taxpayer Certainty
524	524	6 and Disaster Relief Tax Act (Division EE of Public Law
525	525	7 116-260); and
526	526	8 (B) Section 3134(e) of the Internal Revenue Code.
527	527	9 (19) For taxable years beginning after December 31, 2022,
528	528	10 subtract an amount equal to the deduction disallowed under
529	529	11 Section 280C(h) of the Internal Revenue Code.
530	530	12 (20) For taxable years beginning after December 31, 2021,
531	531	13 subtract the amount of any:
532	532	14 (A) federal, state, or local grant received by the taxpayer; and
533	533	15 (B) discharged federal, state, or local indebtedness incurred
534	534	16 by the taxpayer;
535	535	17 for purposes of providing or expanding access to broadband
536	536	18 service in this state.
537	537	19 (21) For taxable years beginning after December 31, 2021, add
538	538	20 or subtract amounts related to specified research or experimental
539	539	21 procedures as required under IC 6-3-2-29.
540	540	22 (20) (22) Add or subtract any other amounts the taxpayer is:
541	541	23 (A) required to add or subtract; or
542	542	24 (B) entitled to deduct;
543	543	25 under IC 6-3-2.
544	544	26 (c) The following apply to taxable years beginning after December
545	545	27 31, 2018, for purposes of the add back of any deduction allowed on the
546	546	28 taxpayer's federal income tax return for wagering taxes, as provided in
547	547	29 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
548	548	30 the taxpayer is a corporation:
549	549	31 (1) For taxable years beginning after December 31, 2018, and
550	550	32 before January 1, 2020, a taxpayer is required to add back under
551	551	33 this section eighty-seven and five-tenths percent (87.5%) of any
552	552	34 deduction allowed on the taxpayer's federal income tax return for
553	553	35 wagering taxes.
554	554	36 (2) For taxable years beginning after December 31, 2019, and
555	555	37 before January 1, 2021, a taxpayer is required to add back under
556	556	38 this section seventy-five percent (75%) of any deduction allowed
557	557	39 on the taxpayer's federal income tax return for wagering taxes.
558	558	40 (3) For taxable years beginning after December 31, 2020, and
559	559	41 before January 1, 2022, a taxpayer is required to add back under
560	560	42 this section sixty-two and five-tenths percent (62.5%) of any
561	561	2024 IN 98—LS 6259/DI 120 14
562	562	1 deduction allowed on the taxpayer's federal income tax return for
563	563	2 wagering taxes.
564	564	3 (4) For taxable years beginning after December 31, 2021, and
565	565	4 before January 1, 2023, a taxpayer is required to add back under
566	566	5 this section fifty percent (50%) of any deduction allowed on the
567	567	6 taxpayer's federal income tax return for wagering taxes.
568	568	7 (5) For taxable years beginning after December 31, 2022, and
569	569	8 before January 1, 2024, a taxpayer is required to add back under
570	570	9 this section thirty-seven and five-tenths percent (37.5%) of any
571	571	10 deduction allowed on the taxpayer's federal income tax return for
572	572	11 wagering taxes.
573	573	12 (6) For taxable years beginning after December 31, 2023, and
574	574	13 before January 1, 2025, a taxpayer is required to add back under
575	575	14 this section twenty-five percent (25%) of any deduction allowed
576	576	15 on the taxpayer's federal income tax return for wagering taxes.
577	577	16 (7) For taxable years beginning after December 31, 2024, and
578	578	17 before January 1, 2026, a taxpayer is required to add back under
579	579	18 this section twelve and five-tenths percent (12.5%) of any
580	580	19 deduction allowed on the taxpayer's federal income tax return for
581	581	20 wagering taxes.
582	582	21 (8) For taxable years beginning after December 31, 2025, a
583	583	22 taxpayer is not required to add back under this section any amount
584	584	23 of a deduction allowed on the taxpayer's federal income tax return
585	585	24 for wagering taxes.
586	586	25 (d) In the case of life insurance companies (as defined in Section
587	587	26 816(a) of the Internal Revenue Code) that are organized under Indiana
588	588	27 law, the same as "life insurance company taxable income" (as defined
589	589	28 in Section 801 of the Internal Revenue Code), adjusted as follows:
590	590	29 (1) Subtract income that is exempt from taxation under this article
591	591	30 by the Constitution and statutes of the United States.
592	592	31 (2) Add an amount equal to any deduction allowed or allowable
593	593	32 under Section 170 of the Internal Revenue Code (concerning
594	594	33 charitable contributions).
595	595	34 (3) Add an amount equal to a deduction allowed or allowable
596	596	35 under Section 805 or Section 832(c) of the Internal Revenue Code
597	597	36 for taxes based on or measured by income and levied at the state
598	598	37 level by any state.
599	599	38 (4) Subtract an amount equal to the amount included in the
600	600	39 company's taxable income under Section 78 of the Internal
601	601	40 Revenue Code (concerning foreign tax credits).
602	602	41 (5) Add or subtract the amount necessary to make the adjusted
603	603	42 gross income of any taxpayer that owns property for which bonus
604	604	2024 IN 98—LS 6259/DI 120 15
605	605	1 depreciation was allowed in the current taxable year or in an
606	606	2 earlier taxable year equal to the amount of adjusted gross income
607	607	3 that would have been computed had an election not been made
608	608	4 under Section 168(k) of the Internal Revenue Code to apply bonus
609	609	5 depreciation to the property in the year that it was placed in
610	610	6 service.
611	611	7 (6) Add an amount equal to any deduction allowed under Section
612	612	8 172 of the Internal Revenue Code (concerning net operating
613	613	9 losses).
614	614	10 (7) Add or subtract the amount necessary to make the adjusted
615	615	11 gross income of any taxpayer that placed Section 179 property (as
616	616	12 defined in Section 179 of the Internal Revenue Code) in service
617	617	13 in the current taxable year or in an earlier taxable year equal to
618	618	14 the amount of adjusted gross income that would have been
619	619	15 computed had an election for federal income tax purposes not
620	620	16 been made for the year in which the property was placed in
621	621	17 service to take deductions under Section 179 of the Internal
622	622	18 Revenue Code in a total amount exceeding the sum of:
623	623	19 (A) twenty-five thousand dollars ($25,000) to the extent
624	624	20 deductions under Section 179 of the Internal Revenue Code
625	625	21 were not elected as provided in clause (B); and
626	626	22 (B) for taxable years beginning after December 31, 2017, the
627	627	23 deductions elected under Section 179 of the Internal Revenue
628	628	24 Code on property acquired in an exchange if:
629	629	25 (i) the exchange would have been eligible for
630	630	26 nonrecognition of gain or loss under Section 1031 of the
631	631	27 Internal Revenue Code in effect on January 1, 2017;
632	632	28 (ii) the exchange is not eligible for nonrecognition of gain or
633	633	29 loss under Section 1031 of the Internal Revenue Code; and
634	634	30 (iii) the taxpayer made an election to take deductions under
635	635	31 Section 179 of the Internal Revenue Code with regard to the
636	636	32 acquired property in the year that the property was placed
637	637	33 into service.
638	638	34 The amount of deductions allowable for an item of property
639	639	35 under this clause may not exceed the amount of adjusted gross
640	640	36 income realized on the property that would have been deferred
641	641	37 under the Internal Revenue Code in effect on January 1, 2017.
642	642	38 (8) Subtract income that is:
643	643	39 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
644	644	40 derived from patents); and
645	645	41 (B) included in the insurance company's taxable income under
646	646	42 the Internal Revenue Code.
647	647	2024 IN 98—LS 6259/DI 120 16
648	648	1 (9) Add an amount equal to any income not included in gross
649	649	2 income as a result of the deferral of income arising from business
650	650	3 indebtedness discharged in connection with the reacquisition after
651	651	4 December 31, 2008, and before January 1, 2011, of an applicable
652	652	5 debt instrument, as provided in Section 108(i) of the Internal
653	653	6 Revenue Code. Subtract from the adjusted gross income of any
654	654	7 taxpayer that added an amount to adjusted gross income in a
655	655	8 previous year the amount necessary to offset the amount included
656	656	9 in federal gross income as a result of the deferral of income
657	657	10 arising from business indebtedness discharged in connection with
658	658	11 the reacquisition after December 31, 2008, and before January 1,
659	659	12 2011, of an applicable debt instrument, as provided in Section
660	660	13 108(i) of the Internal Revenue Code.
661	661	14 (10) Add an amount equal to any exempt insurance income under
662	662	15 Section 953(e) of the Internal Revenue Code that is active
663	663	16 financing income under Subpart F of Subtitle A, Chapter 1,
664	664	17 Subchapter N of the Internal Revenue Code.
665	665	18 (11) Add the amount excluded from federal gross income under
666	666	19 Section 103 of the Internal Revenue Code for interest received on
667	667	20 an obligation of a state other than Indiana, or a political
668	668	21 subdivision of such a state, that is acquired by the taxpayer after
669	669	22 December 31, 2011. For purposes of this subdivision:
670	670	23 (A) if the taxpayer receives interest from a pass through entity,
671	671	24 a regulated investment company, a hedge fund, or similar
672	672	25 arrangement, the taxpayer will be considered to have
673	673	26 acquired the obligation on the date the entity acquired the
674	674	27 obligation;
675	675	28 (B) if ownership of the obligation occurs by means other than
676	676	29 a purchase, the date of acquisition of the obligation shall be
677	677	30 the date ownership of the obligation was transferred, except
678	678	31 to the extent provided in clause (A), and if a portion of the
679	679	32 obligation is acquired on multiple dates, the date of
680	680	33 acquisition shall be considered separately for each portion of
681	681	34 the obligation; and
682	682	35 (C) if ownership of the obligation occurred as the result of a
683	683	36 refinancing of another obligation, the acquisition date shall be
684	684	37 the date on which the obligation was refinanced.
685	685	38 (12) For taxable years beginning after December 25, 2016, add:
686	686	39 (A) an amount equal to the amount reported by the taxpayer on
687	687	40 IRC 965 Transition Tax Statement, line 1; or
688	688	41 (B) if the taxpayer deducted an amount under Section 965(c)
689	689	42 of the Internal Revenue Code in determining the taxpayer's
690	690	2024 IN 98—LS 6259/DI 120 17
691	691	1 taxable income for purposes of the federal income tax, the
692	692	2 amount deducted under Section 965(c) of the Internal Revenue
693	693	3 Code.
694	694	4 (13) Add an amount equal to the deduction that was claimed by
695	695	5 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
696	696	6 Internal Revenue Code (attributable to global intangible
697	697	7 low-taxed income). The taxpayer shall separately specify the
698	698	8 amount of the reduction under Section 250(a)(1)(B)(i) of the
699	699	9 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
700	700	10 Internal Revenue Code.
701	701	11 (14) Subtract any interest expense paid or accrued in the current
702	702	12 taxable year but not deducted as a result of the limitation imposed
703	703	13 under Section 163(j)(1) of the Internal Revenue Code. Add any
704	704	14 interest expense paid or accrued in a previous taxable year but
705	705	15 allowed as a deduction under Section 163 of the Internal Revenue
706	706	16 Code in the current taxable year. For purposes of this subdivision,
707	707	17 an interest expense is considered paid or accrued only in the first
708	708	18 taxable year the deduction would have been allowable under
709	709	19 Section 163 of the Internal Revenue Code if the limitation under
710	710	20 Section 163(j)(1) of the Internal Revenue Code did not exist.
711	711	21 (15) Subtract the amount that would have been excluded from
712	712	22 gross income but for the enactment of Section 118(b)(2) of the
713	713	23 Internal Revenue Code for taxable years ending after December
714	714	24 22, 2017.
715	715	25 (16) Add an amount equal to the remainder of:
716	716	26 (A) the amount allowable as a deduction under Section 274(n)
717	717	27 of the Internal Revenue Code; minus
718	718	28 (B) the amount otherwise allowable as a deduction under
719	719	29 Section 274(n) of the Internal Revenue Code, if Section
720	720	30 274(n)(2)(D) of the Internal Revenue Code was not in effect
721	721	31 for amounts paid or incurred after December 31, 2020.
722	722	32 (17) For taxable years ending after March 12, 2020, subtract an
723	723	33 amount equal to the deduction disallowed pursuant to:
724	724	34 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
725	725	35 as modified by Sections 206 and 207 of the Taxpayer Certainty
726	726	36 and Disaster Relief Tax Act (Division EE of Public Law
727	727	37 116-260); and
728	728	38 (B) Section 3134(e) of the Internal Revenue Code.
729	729	39 (18) For taxable years beginning after December 31, 2022,
730	730	40 subtract an amount equal to the deduction disallowed under
731	731	41 Section 280C(h) of the Internal Revenue Code.
732	732	42 (19) For taxable years beginning after December 31, 2021, add
733	733	2024 IN 98—LS 6259/DI 120 18
734	734	1 or subtract amounts related to specified research or experimental
735	735	2 procedures as required under IC 6-3-2-29.
736	736	3 (19) (20) Add or subtract any other amounts the taxpayer is:
737	737	4 (A) required to add or subtract; or
738	738	5 (B) entitled to deduct;
739	739	6 under IC 6-3-2.
740	740	7 (e) In the case of insurance companies subject to tax under Section
741	741	8 831 of the Internal Revenue Code and organized under Indiana law, the
742	742	9 same as "taxable income" (as defined in Section 832 of the Internal
743	743	10 Revenue Code), adjusted as follows:
744	744	11 (1) Subtract income that is exempt from taxation under this article
745	745	12 by the Constitution and statutes of the United States.
746	746	13 (2) Add an amount equal to any deduction allowed or allowable
747	747	14 under Section 170 of the Internal Revenue Code (concerning
748	748	15 charitable contributions).
749	749	16 (3) Add an amount equal to a deduction allowed or allowable
750	750	17 under Section 805 or Section 832(c) of the Internal Revenue Code
751	751	18 for taxes based on or measured by income and levied at the state
752	752	19 level by any state.
753	753	20 (4) Subtract an amount equal to the amount included in the
754	754	21 company's taxable income under Section 78 of the Internal
755	755	22 Revenue Code (concerning foreign tax credits).
756	756	23 (5) Add or subtract the amount necessary to make the adjusted
757	757	24 gross income of any taxpayer that owns property for which bonus
758	758	25 depreciation was allowed in the current taxable year or in an
759	759	26 earlier taxable year equal to the amount of adjusted gross income
760	760	27 that would have been computed had an election not been made
761	761	28 under Section 168(k) of the Internal Revenue Code to apply bonus
762	762	29 depreciation to the property in the year that it was placed in
763	763	30 service.
764	764	31 (6) Add an amount equal to any deduction allowed under Section
765	765	32 172 of the Internal Revenue Code (concerning net operating
766	766	33 losses).
767	767	34 (7) Add or subtract the amount necessary to make the adjusted
768	768	35 gross income of any taxpayer that placed Section 179 property (as
769	769	36 defined in Section 179 of the Internal Revenue Code) in service
770	770	37 in the current taxable year or in an earlier taxable year equal to
771	771	38 the amount of adjusted gross income that would have been
772	772	39 computed had an election for federal income tax purposes not
773	773	40 been made for the year in which the property was placed in
774	774	41 service to take deductions under Section 179 of the Internal
775	775	42 Revenue Code in a total amount exceeding the sum of:
776	776	2024 IN 98—LS 6259/DI 120 19
777	777	1 (A) twenty-five thousand dollars ($25,000) to the extent
778	778	2 deductions under Section 179 of the Internal Revenue Code
779	779	3 were not elected as provided in clause (B); and
780	780	4 (B) for taxable years beginning after December 31, 2017, the
781	781	5 deductions elected under Section 179 of the Internal Revenue
782	782	6 Code on property acquired in an exchange if:
783	783	7 (i) the exchange would have been eligible for
784	784	8 nonrecognition of gain or loss under Section 1031 of the
785	785	9 Internal Revenue Code in effect on January 1, 2017;
786	786	10 (ii) the exchange is not eligible for nonrecognition of gain or
787	787	11 loss under Section 1031 of the Internal Revenue Code; and
788	788	12 (iii) the taxpayer made an election to take deductions under
789	789	13 Section 179 of the Internal Revenue Code with regard to the
790	790	14 acquired property in the year that the property was placed
791	791	15 into service.
792	792	16 The amount of deductions allowable for an item of property
793	793	17 under this clause may not exceed the amount of adjusted gross
794	794	18 income realized on the property that would have been deferred
795	795	19 under the Internal Revenue Code in effect on January 1, 2017.
796	796	20 (8) Subtract income that is:
797	797	21 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
798	798	22 derived from patents); and
799	799	23 (B) included in the insurance company's taxable income under
800	800	24 the Internal Revenue Code.
801	801	25 (9) Add an amount equal to any income not included in gross
802	802	26 income as a result of the deferral of income arising from business
803	803	27 indebtedness discharged in connection with the reacquisition after
804	804	28 December 31, 2008, and before January 1, 2011, of an applicable
805	805	29 debt instrument, as provided in Section 108(i) of the Internal
806	806	30 Revenue Code. Subtract from the adjusted gross income of any
807	807	31 taxpayer that added an amount to adjusted gross income in a
808	808	32 previous year the amount necessary to offset the amount included
809	809	33 in federal gross income as a result of the deferral of income
810	810	34 arising from business indebtedness discharged in connection with
811	811	35 the reacquisition after December 31, 2008, and before January 1,
812	812	36 2011, of an applicable debt instrument, as provided in Section
813	813	37 108(i) of the Internal Revenue Code.
814	814	38 (10) Add an amount equal to any exempt insurance income under
815	815	39 Section 953(e) of the Internal Revenue Code that is active
816	816	40 financing income under Subpart F of Subtitle A, Chapter 1,
817	817	41 Subchapter N of the Internal Revenue Code.
818	818	42 (11) Add the amount excluded from federal gross income under
819	819	2024 IN 98—LS 6259/DI 120 20
820	820	1 Section 103 of the Internal Revenue Code for interest received on
821	821	2 an obligation of a state other than Indiana, or a political
822	822	3 subdivision of such a state, that is acquired by the taxpayer after
823	823	4 December 31, 2011. For purposes of this subdivision:
824	824	5 (A) if the taxpayer receives interest from a pass through entity,
825	825	6 a regulated investment company, a hedge fund, or similar
826	826	7 arrangement, the taxpayer will be considered to have
827	827	8 acquired the obligation on the date the entity acquired the
828	828	9 obligation;
829	829	10 (B) if ownership of the obligation occurs by means other than
830	830	11 a purchase, the date of acquisition of the obligation shall be
831	831	12 the date ownership of the obligation was transferred, except
832	832	13 to the extent provided in clause (A), and if a portion of the
833	833	14 obligation is acquired on multiple dates, the date of
834	834	15 acquisition shall be considered separately for each portion of
835	835	16 the obligation; and
836	836	17 (C) if ownership of the obligation occurred as the result of a
837	837	18 refinancing of another obligation, the acquisition date shall be
838	838	19 the date on which the obligation was refinanced.
839	839	20 (12) For taxable years beginning after December 25, 2016, add:
840	840	21 (A) an amount equal to the amount reported by the taxpayer on
841	841	22 IRC 965 Transition Tax Statement, line 1; or
842	842	23 (B) if the taxpayer deducted an amount under Section 965(c)
843	843	24 of the Internal Revenue Code in determining the taxpayer's
844	844	25 taxable income for purposes of the federal income tax, the
845	845	26 amount deducted under Section 965(c) of the Internal Revenue
846	846	27 Code.
847	847	28 (13) Add an amount equal to the deduction that was claimed by
848	848	29 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
849	849	30 Internal Revenue Code (attributable to global intangible
850	850	31 low-taxed income). The taxpayer shall separately specify the
851	851	32 amount of the reduction under Section 250(a)(1)(B)(i) of the
852	852	33 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
853	853	34 Internal Revenue Code.
854	854	35 (14) Subtract any interest expense paid or accrued in the current
855	855	36 taxable year but not deducted as a result of the limitation imposed
856	856	37 under Section 163(j)(1) of the Internal Revenue Code. Add any
857	857	38 interest expense paid or accrued in a previous taxable year but
858	858	39 allowed as a deduction under Section 163 of the Internal Revenue
859	859	40 Code in the current taxable year. For purposes of this subdivision,
860	860	41 an interest expense is considered paid or accrued only in the first
861	861	42 taxable year the deduction would have been allowable under
862	862	2024 IN 98—LS 6259/DI 120 21
863	863	1 Section 163 of the Internal Revenue Code if the limitation under
864	864	2 Section 163(j)(1) of the Internal Revenue Code did not exist.
865	865	3 (15) Subtract the amount that would have been excluded from
866	866	4 gross income but for the enactment of Section 118(b)(2) of the
867	867	5 Internal Revenue Code for taxable years ending after December
868	868	6 22, 2017.
869	869	7 (16) Add an amount equal to the remainder of:
870	870	8 (A) the amount allowable as a deduction under Section 274(n)
871	871	9 of the Internal Revenue Code; minus
872	872	10 (B) the amount otherwise allowable as a deduction under
873	873	11 Section 274(n) of the Internal Revenue Code, if Section
874	874	12 274(n)(2)(D) of the Internal Revenue Code was not in effect
875	875	13 for amounts paid or incurred after December 31, 2020.
876	876	14 (17) For taxable years ending after March 12, 2020, subtract an
877	877	15 amount equal to the deduction disallowed pursuant to:
878	878	16 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
879	879	17 as modified by Sections 206 and 207 of the Taxpayer Certainty
880	880	18 and Disaster Relief Tax Act (Division EE of Public Law
881	881	19 116-260); and
882	882	20 (B) Section 3134(e) of the Internal Revenue Code.
883	883	21 (18) For taxable years beginning after December 31, 2022,
884	884	22 subtract an amount equal to the deduction disallowed under
885	885	23 Section 280C(h) of the Internal Revenue Code.
886	886	24 (19) For taxable years beginning after December 31, 2021, add
887	887	25 or subtract amounts related to specified research or experimental
888	888	26 procedures as required under IC 6-3-2-29.
889	889	27 (19) (20) Add or subtract any other amounts the taxpayer is:
890	890	28 (A) required to add or subtract; or
891	891	29 (B) entitled to deduct;
892	892	30 under IC 6-3-2.
893	893	31 (f) In the case of trusts and estates, "taxable income" (as defined for
894	894	32 trusts and estates in Section 641(b) of the Internal Revenue Code)
895	895	33 adjusted as follows:
896	896	34 (1) Subtract income that is exempt from taxation under this article
897	897	35 by the Constitution and statutes of the United States.
898	898	36 (2) Subtract an amount equal to the amount of a September 11
899	899	37 terrorist attack settlement payment included in the federal
900	900	38 adjusted gross income of the estate of a victim of the September
901	901	39 11 terrorist attack or a trust to the extent the trust benefits a victim
902	902	40 of the September 11 terrorist attack.
903	903	41 (3) Add or subtract the amount necessary to make the adjusted
904	904	42 gross income of any taxpayer that owns property for which bonus
905	905	2024 IN 98—LS 6259/DI 120 22
906	906	1 depreciation was allowed in the current taxable year or in an
907	907	2 earlier taxable year equal to the amount of adjusted gross income
908	908	3 that would have been computed had an election not been made
909	909	4 under Section 168(k) of the Internal Revenue Code to apply bonus
910	910	5 depreciation to the property in the year that it was placed in
911	911	6 service.
912	912	7 (4) Add an amount equal to any deduction allowed under Section
913	913	8 172 of the Internal Revenue Code (concerning net operating
914	914	9 losses).
915	915	10 (5) Add or subtract the amount necessary to make the adjusted
916	916	11 gross income of any taxpayer that placed Section 179 property (as
917	917	12 defined in Section 179 of the Internal Revenue Code) in service
918	918	13 in the current taxable year or in an earlier taxable year equal to
919	919	14 the amount of adjusted gross income that would have been
920	920	15 computed had an election for federal income tax purposes not
921	921	16 been made for the year in which the property was placed in
922	922	17 service to take deductions under Section 179 of the Internal
923	923	18 Revenue Code in a total amount exceeding the sum of:
924	924	19 (A) twenty-five thousand dollars ($25,000) to the extent
925	925	20 deductions under Section 179 of the Internal Revenue Code
926	926	21 were not elected as provided in clause (B); and
927	927	22 (B) for taxable years beginning after December 31, 2017, the
928	928	23 deductions elected under Section 179 of the Internal Revenue
929	929	24 Code on property acquired in an exchange if:
930	930	25 (i) the exchange would have been eligible for
931	931	26 nonrecognition of gain or loss under Section 1031 of the
932	932	27 Internal Revenue Code in effect on January 1, 2017;
933	933	28 (ii) the exchange is not eligible for nonrecognition of gain or
934	934	29 loss under Section 1031 of the Internal Revenue Code; and
935	935	30 (iii) the taxpayer made an election to take deductions under
936	936	31 Section 179 of the Internal Revenue Code with regard to the
937	937	32 acquired property in the year that the property was placed
938	938	33 into service.
939	939	34 The amount of deductions allowable for an item of property
940	940	35 under this clause may not exceed the amount of adjusted gross
941	941	36 income realized on the property that would have been deferred
942	942	37 under the Internal Revenue Code in effect on January 1, 2017.
943	943	38 (6) Subtract income that is:
944	944	39 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
945	945	40 derived from patents); and
946	946	41 (B) included in the taxpayer's taxable income under the
947	947	42 Internal Revenue Code.
948	948	2024 IN 98—LS 6259/DI 120 23
949	949	1 (7) Add an amount equal to any income not included in gross
950	950	2 income as a result of the deferral of income arising from business
951	951	3 indebtedness discharged in connection with the reacquisition after
952	952	4 December 31, 2008, and before January 1, 2011, of an applicable
953	953	5 debt instrument, as provided in Section 108(i) of the Internal
954	954	6 Revenue Code. Subtract from the adjusted gross income of any
955	955	7 taxpayer that added an amount to adjusted gross income in a
956	956	8 previous year the amount necessary to offset the amount included
957	957	9 in federal gross income as a result of the deferral of income
958	958	10 arising from business indebtedness discharged in connection with
959	959	11 the reacquisition after December 31, 2008, and before January 1,
960	960	12 2011, of an applicable debt instrument, as provided in Section
961	961	13 108(i) of the Internal Revenue Code.
962	962	14 (8) Add the amount excluded from federal gross income under
963	963	15 Section 103 of the Internal Revenue Code for interest received on
964	964	16 an obligation of a state other than Indiana, or a political
965	965	17 subdivision of such a state, that is acquired by the taxpayer after
966	966	18 December 31, 2011. For purposes of this subdivision:
967	967	19 (A) if the taxpayer receives interest from a pass through entity,
968	968	20 a regulated investment company, a hedge fund, or similar
969	969	21 arrangement, the taxpayer will be considered to have
970	970	22 acquired the obligation on the date the entity acquired the
971	971	23 obligation;
972	972	24 (B) if ownership of the obligation occurs by means other than
973	973	25 a purchase, the date of acquisition of the obligation shall be
974	974	26 the date ownership of the obligation was transferred, except
975	975	27 to the extent provided in clause (A), and if a portion of the
976	976	28 obligation is acquired on multiple dates, the date of
977	977	29 acquisition shall be considered separately for each portion of
978	978	30 the obligation; and
979	979	31 (C) if ownership of the obligation occurred as the result of a
980	980	32 refinancing of another obligation, the acquisition date shall be
981	981	33 the date on which the obligation was refinanced.
982	982	34 (9) For taxable years beginning after December 25, 2016, add an
983	983	35 amount equal to:
984	984	36 (A) the amount reported by the taxpayer on IRC 965
985	985	37 Transition Tax Statement, line 1;
986	986	38 (B) if the taxpayer deducted an amount under Section 965(c)
987	987	39 of the Internal Revenue Code in determining the taxpayer's
988	988	40 taxable income for purposes of the federal income tax, the
989	989	41 amount deducted under Section 965(c) of the Internal Revenue
990	990	42 Code; and
991	991	2024 IN 98—LS 6259/DI 120 24
992	992	1 (C) with regard to any amounts of income under Section 965
993	993	2 of the Internal Revenue Code distributed by the taxpayer, the
994	994	3 deduction under Section 965(c) of the Internal Revenue Code
995	995	4 attributable to such distributed amounts and not reported to the
996	996	5 beneficiary.
997	997	6 For purposes of this article, the amount required to be added back
998	998	7 under clause (B) is not considered to be distributed or
999	999	8 distributable to a beneficiary of the estate or trust for purposes of
1000	1000	9 Sections 651 and 661 of the Internal Revenue Code.
1001	1001	10 (10) Subtract any interest expense paid or accrued in the current
1002	1002	11 taxable year but not deducted as a result of the limitation imposed
1003	1003	12 under Section 163(j)(1) of the Internal Revenue Code. Add any
1004	1004	13 interest expense paid or accrued in a previous taxable year but
1005	1005	14 allowed as a deduction under Section 163 of the Internal Revenue
1006	1006	15 Code in the current taxable year. For purposes of this subdivision,
1007	1007	16 an interest expense is considered paid or accrued only in the first
1008	1008	17 taxable year the deduction would have been allowable under
1009	1009	18 Section 163 of the Internal Revenue Code if the limitation under
1010	1010	19 Section 163(j)(1) of the Internal Revenue Code did not exist.
1011	1011	20 (11) Add an amount equal to the deduction for qualified business
1012	1012	21 income that was claimed by the taxpayer for the taxable year
1013	1013	22 under Section 199A of the Internal Revenue Code.
1014	1014	23 (12) Subtract the amount that would have been excluded from
1015	1015	24 gross income but for the enactment of Section 118(b)(2) of the
1016	1016	25 Internal Revenue Code for taxable years ending after December
1017	1017	26 22, 2017.
1018	1018	27 (13) Add an amount equal to the remainder of:
1019	1019	28 (A) the amount allowable as a deduction under Section 274(n)
1020	1020	29 of the Internal Revenue Code; minus
1021	1021	30 (B) the amount otherwise allowable as a deduction under
1022	1022	31 Section 274(n) of the Internal Revenue Code, if Section
1023	1023	32 274(n)(2)(D) of the Internal Revenue Code was not in effect
1024	1024	33 for amounts paid or incurred after December 31, 2020.
1025	1025	34 (14) For taxable years beginning after December 31, 2017, and
1026	1026	35 before January 1, 2021, add an amount equal to the excess
1027	1027	36 business loss of the taxpayer as defined in Section 461(l)(3) of the
1028	1028	37 Internal Revenue Code. In addition:
1029	1029	38 (A) If a taxpayer has an excess business loss under this
1030	1030	39 subdivision and also has modifications under subdivisions (3)
1031	1031	40 and (5) for property placed in service during the taxable year,
1032	1032	41 the taxpayer shall treat a portion of the taxable year
1033	1033	42 modifications for that property as occurring in the taxable year
1034	1034	2024 IN 98—LS 6259/DI 120 25
1035	1035	1 the property is placed in service and a portion of the
1036	1036	2 modifications as occurring in the immediately following
1037	1037	3 taxable year.
1038	1038	4 (B) The portion of the modifications under subdivisions (3)
1039	1039	5 and (5) for property placed in service during the taxable year
1040	1040	6 treated as occurring in the taxable year in which the property
1041	1041	7 is placed in service equals:
1042	1042	8 (i) the modification for the property otherwise determined
1043	1043	9 under this section; minus
1044	1044	10 (ii) the excess business loss disallowed under this
1045	1045	11 subdivision;
1046	1046	12 but not less than zero (0).
1047	1047	13 (C) The portion of the modifications under subdivisions (3)
1048	1048	14 and (5) for property placed in service during the taxable year
1049	1049	15 treated as occurring in the taxable year immediately following
1050	1050	16 the taxable year in which the property is placed in service
1051	1051	17 equals the modification for the property otherwise determined
1052	1052	18 under this section minus the amount in clause (B).
1053	1053	19 (D) Any reallocation of modifications between taxable years
1054	1054	20 under clauses (B) and (C) shall be first allocated to the
1055	1055	21 modification under subdivision (3), then to the modification
1056	1056	22 under subdivision (5).
1057	1057	23 (15) For taxable years ending after March 12, 2020, subtract an
1058	1058	24 amount equal to the deduction disallowed pursuant to:
1059	1059	25 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1060	1060	26 as modified by Sections 206 and 207 of the Taxpayer Certainty
1061	1061	27 and Disaster Relief Tax Act (Division EE of Public Law
1062	1062	28 116-260); and
1063	1063	29 (B) Section 3134(e) of the Internal Revenue Code.
1064	1064	30 (16) For taxable years beginning after December 31, 2022,
1065	1065	31 subtract an amount equal to the deduction disallowed under
1066	1066	32 Section 280C(h) of the Internal Revenue Code.
1067	1067	33 (17) Except as provided in subsection (c), for taxable years
1068	1068	34 beginning after December 31, 2022, add an amount equal to any
1069	1069	35 deduction or deductions allowed or allowable in determining
1070	1070	36 taxable income under Section 641(b) of the Internal Revenue
1071	1071	37 Code for taxes based on or measured by income and levied at the
1072	1072	38 state level by any state of the United States.
1073	1073	39 (18) For taxable years beginning after December 31, 2021, add
1074	1074	40 or subtract amounts related to specified research or experimental
1075	1075	41 procedures as required under IC 6-3-2-29.
1076	1076	42 (18) (19) Add or subtract any other amounts the taxpayer is:
1077	1077	2024 IN 98—LS 6259/DI 120 26
1078	1078	1 (A) required to add or subtract; or
1079	1079	2 (B) entitled to deduct;
1080	1080	3 under IC 6-3-2.
1081	1081	4 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
1082	1082	5 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
1083	1083	6 "adjusted gross income" of a pass through entity means the aggregate
1084	1084	7 of items of ordinary income and loss in the case of a partnership or a
1085	1085	8 corporation described in IC 6-3-2-2.8(2), or aggregate distributable net
1086	1086	9 income of a trust or estate as defined in Section 643 of the Internal
1087	1087	10 Revenue Code, distributions subject to tax for state and federal income
1088	1088	11 tax for beneficiaries in the case of a trust or estate, whichever is
1089	1089	12 applicable, for the taxable year modified as follows:
1090	1090	13 (1) Add the separately stated items of income and gains, or the
1091	1091	14 equivalent items that must be considered separately by a
1092	1092	15 beneficiary, as determined for federal purposes, attributed to the
1093	1093	16 partners, shareholders, or beneficiaries of the pass through entity,
1094	1094	17 determined without regard to whether the owner is permitted to
1095	1095	18 exclude all or part of the income or gain or deduct any amount
1096	1096	19 against the income or gain.
1097	1097	20 (2) Subtract the separately stated items of deductions or losses or
1098	1098	21 items that must be considered separately by beneficiaries, as
1099	1099	22 determined for federal purposes, attributed to partners,
1100	1100	23 shareholders, or beneficiaries of the pass through entity and that
1101	1101	24 are deductible by an individual in determining adjusted gross
1102	1102	25 income as defined under Section 62 of the Internal Revenue
1103	1103	26 Code:
1104	1104	27 (A) limited as if the partners, shareholders, and beneficiaries
1105	1105	28 deducted the maximum allowable loss or deduction allowable
1106	1106	29 for the taxable year prior to any amount deductible from the
1107	1107	30 pass through entity; but
1108	1108	31 (B) not considering any disallowance of deductions resulting
1109	1109	32 from federal basis limitations for the partner, shareholder, or
1110	1110	33 beneficiary.
1111	1111	34 (3) Add or subtract any modifications to adjusted gross income
1112	1112	35 that would be required both for individuals under subsection (a)
1113	1113	36 and corporations under subsection (b) to the extent otherwise
1114	1114	37 provided in those subsections, including amounts that are
1115	1115	38 allowable for which such modifications are necessary to account
1116	1116	39 for separately stated items in subdivision (1) or (2).
1117	1117	40 (h) Subsections (a)(35), (b)(20), (d)(19), (e)(19), or (f)(18) (a)(36),
1118	1118	41 (b)(22), (d)(20), (e)(20), or (f)(19) may not be construed to require an
1119	1119	42 add back or allow a deduction or exemption more than once for a
1120	1120	2024 IN 98—LS 6259/DI 120 27
1121	1121	1 particular add back, deduction, or exemption.
1122	1122	2 (i) For taxable years beginning after December 25, 2016, if:
1123	1123	3 (1) a taxpayer is a shareholder, either directly or indirectly, in a
1124	1124	4 corporation that is an E&P deficit foreign corporation as defined
1125	1125	5 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
1126	1126	6 earnings and profit deficit, or a portion of the earnings and profit
1127	1127	7 deficit, of the E&P deficit foreign corporation is permitted to
1128	1128	8 reduce the federal adjusted gross income or federal taxable
1129	1129	9 income of the taxpayer, the deficit, or the portion of the deficit,
1130	1130	10 shall also reduce the amount taxable under this section to the
1131	1131	11 extent permitted under the Internal Revenue Code, however, in no
1132	1132	12 case shall this permit a reduction in the amount taxable under
1133	1133	13 Section 965 of the Internal Revenue Code for purposes of this
1134	1134	14 section to be less than zero (0); and
1135	1135	15 (2) the Internal Revenue Service issues guidance that such an
1136	1136	16 income or deduction is not reported directly on a federal tax
1137	1137	17 return or is to be reported in a manner different than specified in
1138	1138	18 this section, this section shall be construed as if federal adjusted
1139	1139	19 gross income or federal taxable income included the income or
1140	1140	20 deduction.
1141	1141	21 (j) If a partner is required to include an item of income, a deduction,
1142	1142	22 or another tax attribute in the partner's adjusted gross income tax return
1143	1143	23 pursuant to IC 6-3-4.5, such item shall be considered to be includible
1144	1144	24 in the partner's federal adjusted gross income or federal taxable
1145	1145	25 income, regardless of whether such item is actually required to be
1146	1146	26 reported by the partner for federal income tax purposes. For purposes
1147	1147	27 of this subsection:
1148	1148	28 (1) items for which a valid election is made under IC 6-3-4.5-6,
1149	1149	29 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
1150	1150	30 in the partner's adjusted gross income or taxable income; and
1151	1151	31 (2) items for which the partnership did not make an election under
1152	1152	32 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
1153	1153	33 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
1154	1154	34 shall be included in the partner's adjusted gross income or taxable
1155	1155	35 income.
1156	1156	36 (k) The following apply for purposes of this section:
1157	1157	37 (1) For purposes of subsections (b) and (f), if a taxpayer is an
1158	1158	38 organization that has more than one (1) trade or business subject
1159	1159	39 to the provisions of Section 512(a)(6) of the Internal Revenue
1160	1160	40 Code, the following rules apply for taxable years beginning after
1161	1161	41 December 31, 2017:
1162	1162	42 (A) If a trade or business has federal unrelated business
1163	1163	2024 IN 98—LS 6259/DI 120 28
1164	1164	1 taxable income of zero (0) or greater for a taxable year, the
1165	1165	2 unrelated business taxable income and modifications required
1166	1166	3 under this section shall be combined in determining the
1167	1167	4 adjusted gross income of the taxpayer and shall not be treated
1168	1168	5 as being subject to the provisions of Section 512(a)(6) of the
1169	1169	6 Internal Revenue Code if one (1) or more trades or businesses
1170	1170	7 have negative Indiana adjusted gross income after
1171	1171	8 adjustments.
1172	1172	9 (B) If a trade or business has federal unrelated business
1173	1173	10 taxable income of less than zero (0) for a taxable year, the
1174	1174	11 taxpayer shall apply the modifications under this section for
1175	1175	12 the taxable year against the net operating loss in the manner
1176	1176	13 required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for separately
1177	1177	14 stated net operating losses. However, if the application of
1178	1178	15 modifications required under IC 6-3-2-2.5 or IC 6-3-2-2.6
1179	1179	16 results in the separately stated net operating loss for the trade
1180	1180	17 or business being zero (0), the modifications that increase
1181	1181	18 adjusted gross income under this section and remain after the
1182	1182	19 calculations to adjust the separately stated net operating loss
1183	1183	20 to zero (0) that result from the trade or business must be
1184	1184	21 treated as modifications to which clause (A) applies for the
1185	1185	22 taxable year.
1186	1186	23 (C) If a trade or business otherwise described in Section
1187	1187	24 512(a)(6) of the Internal Revenue Code incurred a net
1188	1188	25 operating loss for a taxable year beginning after December
1189	1189	26 31, 2017, and before January 1, 2021, and the net operating
1190	1190	27 loss was carried back for federal tax purposes:
1191	1191	28 (i) if the loss was carried back to a taxable year for which
1192	1192	29 the requirements under Section 512(a)(6) of the Internal
1193	1193	30 Revenue Code did not apply, the portion of the loss and
1194	1194	31 modifications attributable to the loss shall be treated as
1195	1195	32 adjusted gross income of the taxpayer for the first taxable
1196	1196	33 year of the taxpayer beginning after December 31, 2022,
1197	1197	34 and shall be treated as part of the adjusted gross income
1198	1198	35 attributable to clause (A), unless, and to the extent, the loss
1199	1199	36 and modifications were applied to adjusted gross income for
1200	1200	37 a previous taxable year, as determined under this article;
1201	1201	38 and
1202	1202	39 (ii) if the loss was carried back to a taxable year for which
1203	1203	40 the requirements under Section 512(a)(6) of the Internal
1204	1204	41 Revenue Code applied, the portion of the loss and
1205	1205	42 modifications attributable to the loss shall be treated as
1206	1206	2024 IN 98—LS 6259/DI 120 29
1207	1207	1 adjusted gross income of the taxpayer for the first taxable
1208	1208	2 year of the taxpayer beginning after December 31, 2022,
1209	1209	3 and for purposes of this clause, the inclusion of losses and
1210	1210	4 modifications shall be in the same manner as provided in
1211	1211	5 clause (B), unless, and to the extent, the loss and
1212	1212	6 modifications were applied to adjusted gross income for a
1213	1213	7 previous taxable year, as determined under this article.
1214	1214	8 (D) Notwithstanding any provision in this subdivision, if a
1215	1215	9 taxpayer computed its adjusted gross income for a taxable
1216	1216	10 year beginning before January 1, 2023, based on a reasonable
1217	1217	11 interpretation of this article, the taxpayer shall be permitted
1218	1218	12 to compute its adjusted gross income for those taxable years
1219	1219	13 based on that interpretation. However, a taxpayer must
1220	1220	14 continue to report any tax attributes for taxable years
1221	1221	15 beginning after December 31, 2022, in a manner consistent
1222	1222	16 with its previous interpretation.
1223	1223	17 (2) In the case of a corporation, other than a captive real estate
1224	1224	18 investment trust, for which the adjusted gross income under this
1225	1225	19 article is determined after a deduction for dividends paid under
1226	1226	20 the Internal Revenue Code, the modifications required under this
1227	1227	21 section shall be applied in ratio to the corporation's taxable
1228	1228	22 income (as defined in Section 63 of the Internal Revenue Code)
1229	1229	23 after deductions for dividends paid under the Internal Revenue
1230	1230	24 Code compared to the corporation's taxable income (as defined
1231	1231	25 in Section 63 of the Internal Revenue Code) before the deduction
1232	1232	26 for dividends paid under the Internal Revenue Code.
1233	1233	27 (3) In the case of a trust or estate, the trust or estate is required
1234	1234	28 to include only the portion of the modifications not passed
1235	1235	29 through to beneficiaries.
1236	1236	30 (4) In the case of a taxpayer for which modifications are required
1237	1237	31 to be applied against a separately stated net operating loss under
1238	1238	32 IC 6-3-2-2.5 or IC 6-3-2-2.6, the modifications required under
1239	1239	33 this section must be adjusted to reflect the required application
1240	1240	34 of the modifications against a separately stated net operating
1241	1241	35 loss, in order to avoid the application of a particular
1242	1242	36 modification multiple times.
1243	1243	37 SECTION 2. IC 6-3-2-27 IS ADDED TO THE INDIANA CODE
1244	1244	38 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1245	1245	39 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 27. For a fetus to be
1246	1246	40 considered a dependent child for purposes of the exemptions in
1247	1247	41 IC 6-3-1-3.5(a)(4)(A) and IC 6-3-1-3.5(a)(5)(A), a taxpayer must
1248	1248	42 submit a report from a radiologic imaging study reflecting the
1249	1249	2024 IN 98—LS 6259/DI 120 30
1250	1250	1 taxpayer's pregnancy during the taxable year with the taxpayer's
1251	1251	2 annual state tax return or returns in the manner prescribed by the
1252	1252	3 department.
1253	1253	4 SECTION 3. [EFFECTIVE JANUARY 1, 2024 (RETROACTIVE)]
1254	1254	5 (a) IC 6-3-1-3.5, as amended by this act, and IC 6-3-2-27, as added
1255	1255	6 by this act, apply to taxable years beginning after December 31,
1256	1256	7 2023.
1257	1257	8 (b) This SECTION expires July 1, 2027.
1258	1258	9 SECTION 4. An emergency is declared for this act.
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