Indiana 2025 Regular Session

Indiana House Bill HB1550 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1550
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-1-3.5.
7	7	Synopsis: Personal exemptions. Increases the personal exemption to
8	8	$1,500 in the definition of "adjusted gross income" for a taxpayer, or,
9	9	in the case of a joint return, for each spouse. Increases the exemption
10	10	for dependents to $1,500. Increases the exemption to $1,500 for the
11	11	spouse of the taxpayer if a separate return is made by the taxpayer and
12	12	the spouse and if the spouse had no gross income for the calendar year.
13	13	Effective: January 1, 2025 (retroactive).
14	14	Jackson C, Porter
15	15	January 21, 2025, read first time and referred to Committee on Ways and Means.
16	16	2025 IN 1550—LS 6324/DI 134 Introduced
17	17	First Regular Session of the 124th General Assembly (2025)
18	18	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
19	19	Constitution) is being amended, the text of the existing provision will appear in this style type,
20	20	additions will appear in this style type, and deletions will appear in this style type.
21	21	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
22	22	provision adopted), the text of the new provision will appear in this style type. Also, the
23	23	word NEW will appear in that style type in the introductory clause of each SECTION that adds
24	24	a new provision to the Indiana Code or the Indiana Constitution.
25	25	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
26	26	between statutes enacted by the 2024 Regular Session of the General Assembly.
27	27	HOUSE BILL No. 1550
28	28	A BILL FOR AN ACT to amend the Indiana Code concerning
29	29	taxation.
30	30	Be it enacted by the General Assembly of the State of Indiana:
31	31	1 SECTION 1. IC 6-3-1-3.5, AS AMENDED BY P.L.9-2024,
32	32	2 SECTION 185, IS AMENDED TO READ AS FOLLOWS
33	33	3 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 3.5. When
34	34	4 used in this article, the term "adjusted gross income" shall mean the
35	35	5 following:
36	36	6 (a) In the case of all individuals, "adjusted gross income" (as
37	37	7 defined in Section 62 of the Internal Revenue Code), modified as
38	38	8 follows:
39	39	9 (1) Subtract income that is exempt from taxation under this article
40	40	10 by the Constitution and statutes of the United States.
41	41	11 (2) Except as provided in subsection (c), add an amount equal to
42	42	12 any deduction or deductions allowed or allowable pursuant to
43	43	13 Section 62 of the Internal Revenue Code for taxes based on or
44	44	14 measured by income and levied at the state level by any state of
45	45	15 the United States.
46	46	16 (3) Subtract one thousand dollars ($1,000), one thousand five
47	47	17 hundred dollars ($1,500), or in the case of a joint return filed by
48	48	2025 IN 1550—LS 6324/DI 134 2
49	49	1 a husband and wife, subtract for each spouse one thousand dollars
50	50	2 ($1,000). one thousand five hundred dollars ($1,500).
51	51	3 (4) Subtract: one thousand dollars ($1,000) for:
52	52	4 (A) one thousand five hundred dollars ($1,500) for each of
53	53	5 the exemptions provided by Section 151(c) of the Internal
54	54	6 Revenue Code (as effective January 1, 2017);
55	55	7 (B) one thousand dollars ($1,000) for each additional amount
56	56	8 allowable under Section 63(f) of the Internal Revenue Code;
57	57	9 and
58	58	10 (C) one thousand five hundred dollars ($1,500) for the
59	59	11 spouse of the taxpayer if a separate return is made by the
60	60	12 taxpayer and if the spouse, for the calendar year in which the
61	61	13 taxable year of the taxpayer begins, has no gross income and
62	62	14 is not the dependent of another taxpayer.
63	63	15 (5) Subtract each of the following:
64	64	16 (A) One thousand five hundred dollars ($1,500) for each of the
65	65	17 exemptions allowed under Section 151(c)(1)(B) of the Internal
66	66	18 Revenue Code (as effective January 1, 2004), except that in
67	67	19 the first taxable year in which a particular exemption is
68	68	20 allowed under Section 151(c)(1)(B) of the Internal Revenue
69	69	21 Code (as effective January 1, 2004), subtract three thousand
70	70	22 dollars ($3,000) for that exemption.
71	71	23 (B) One thousand five hundred dollars ($1,500) for each
72	72	24 exemption allowed under Section 151(c) of the Internal
73	73	25 Revenue Code (as effective January 1, 2017) for an individual:
74	74	26 (i) who is less than nineteen (19) years of age or is a
75	75	27 full-time student who is less than twenty-four (24) years of
76	76	28 age;
77	77	29 (ii) for whom the taxpayer is the legal guardian; and
78	78	30 (iii) for whom the taxpayer does not claim an exemption
79	79	31 under clause (A).
80	80	32 (C) Five hundred dollars ($500) for each additional amount
81	81	33 allowable under Section 63(f)(1) of the Internal Revenue Code
82	82	34 if the federal adjusted gross income of the taxpayer, or the
83	83	35 taxpayer and the taxpayer's spouse in the case of a joint return,
84	84	36 is less than forty thousand dollars ($40,000). In the case of a
85	85	37 married individual filing a separate return, the qualifying
86	86	38 income amount in this clause is equal to twenty thousand
87	87	39 dollars ($20,000).
88	88	40 (D) Three thousand dollars ($3,000) for each exemption
89	89	41 allowed under Section 151(c) of the Internal Revenue Code (as
90	90	42 effective January 1, 2017) for an individual who is:
91	91	2025 IN 1550—LS 6324/DI 134 3
92	92	1 (i) an adopted child of the taxpayer; and
93	93	2 (ii) less than nineteen (19) years of age or is a full-time
94	94	3 student who is less than twenty-four (24) years of age.
95	95	4 This amount is in addition to any amount subtracted under
96	96	5 clause (A) or (B).
97	97	6 This amount is in addition to the amount subtracted under
98	98	7 subdivision (4).
99	99	8 (6) Subtract any amounts included in federal adjusted gross
100	100	9 income under Section 111 of the Internal Revenue Code as a
101	101	10 recovery of items previously deducted as an itemized deduction
102	102	11 from adjusted gross income.
103	103	12 (7) Subtract any amounts included in federal adjusted gross
104	104	13 income under the Internal Revenue Code which amounts were
105	105	14 received by the individual as supplemental railroad retirement
106	106	15 annuities under 45 U.S.C. 231 and which are not deductible under
107	107	16 subdivision (1).
108	108	17 (8) Subtract an amount equal to the amount of federal Social
109	109	18 Security and Railroad Retirement benefits included in a taxpayer's
110	110	19 federal gross income by Section 86 of the Internal Revenue Code.
111	111	20 (9) In the case of a nonresident taxpayer or a resident taxpayer
112	112	21 residing in Indiana for a period of less than the taxpayer's entire
113	113	22 taxable year, the total amount of the deductions allowed pursuant
114	114	23 to subdivisions (3), (4), and (5) shall be reduced to an amount
115	115	24 which bears the same ratio to the total as the taxpayer's income
116	116	25 taxable in Indiana bears to the taxpayer's total income.
117	117	26 (10) In the case of an individual who is a recipient of assistance
118	118	27 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
119	119	28 subtract an amount equal to that portion of the individual's
120	120	29 adjusted gross income with respect to which the individual is not
121	121	30 allowed under federal law to retain an amount to pay state and
122	122	31 local income taxes.
123	123	32 (11) In the case of an eligible individual, subtract the amount of
124	124	33 a Holocaust victim's settlement payment included in the
125	125	34 individual's federal adjusted gross income.
126	126	35 (12) Subtract an amount equal to the portion of any premiums
127	127	36 paid during the taxable year by the taxpayer for a qualified long
128	128	37 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
129	129	38 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
130	130	39 file a joint income tax return or the taxpayer is otherwise entitled
131	131	40 to a deduction under this subdivision for the taxpayer's spouse, or
132	132	41 both.
133	133	42 (13) Subtract an amount equal to the lesser of:
134	134	2025 IN 1550—LS 6324/DI 134 4
135	135	1 (A) two thousand five hundred dollars ($2,500), or one
136	136	2 thousand two hundred fifty dollars ($1,250) in the case of a
137	137	3 married individual filing a separate return; or
138	138	4 (B) the amount of property taxes that are paid during the
139	139	5 taxable year in Indiana by the individual on the individual's
140	140	6 principal place of residence.
141	141	7 (14) Subtract an amount equal to the amount of a September 11
142	142	8 terrorist attack settlement payment included in the individual's
143	143	9 federal adjusted gross income.
144	144	10 (15) Add or subtract the amount necessary to make the adjusted
145	145	11 gross income of any taxpayer that owns property for which bonus
146	146	12 depreciation was allowed in the current taxable year or in an
147	147	13 earlier taxable year equal to the amount of adjusted gross income
148	148	14 that would have been computed had an election not been made
149	149	15 under Section 168(k) of the Internal Revenue Code to apply bonus
150	150	16 depreciation to the property in the year that it was placed in
151	151	17 service.
152	152	18 (16) Add an amount equal to any deduction allowed under
153	153	19 Section 172 of the Internal Revenue Code (concerning net
154	154	20 operating losses).
155	155	21 (17) Add or subtract the amount necessary to make the adjusted
156	156	22 gross income of any taxpayer that placed Section 179 property (as
157	157	23 defined in Section 179 of the Internal Revenue Code) in service
158	158	24 in the current taxable year or in an earlier taxable year equal to
159	159	25 the amount of adjusted gross income that would have been
160	160	26 computed had an election for federal income tax purposes not
161	161	27 been made for the year in which the property was placed in
162	162	28 service to take deductions under Section 179 of the Internal
163	163	29 Revenue Code in a total amount exceeding the sum of:
164	164	30 (A) twenty-five thousand dollars ($25,000) to the extent
165	165	31 deductions under Section 179 of the Internal Revenue Code
166	166	32 were not elected as provided in clause (B); and
167	167	33 (B) for taxable years beginning after December 31, 2017, the
168	168	34 deductions elected under Section 179 of the Internal Revenue
169	169	35 Code on property acquired in an exchange if:
170	170	36 (i) the exchange would have been eligible for
171	171	37 nonrecognition of gain or loss under Section 1031 of the
172	172	38 Internal Revenue Code in effect on January 1, 2017;
173	173	39 (ii) the exchange is not eligible for nonrecognition of gain or
174	174	40 loss under Section 1031 of the Internal Revenue Code; and
175	175	41 (iii) the taxpayer made an election to take deductions under
176	176	42 Section 179 of the Internal Revenue Code with regard to the
177	177	2025 IN 1550—LS 6324/DI 134 5
178	178	1 acquired property in the year that the property was placed
179	179	2 into service.
180	180	3 The amount of deductions allowable for an item of property
181	181	4 under this clause may not exceed the amount of adjusted gross
182	182	5 income realized on the property that would have been deferred
183	183	6 under the Internal Revenue Code in effect on January 1, 2017.
184	184	7 (18) Subtract an amount equal to the amount of the taxpayer's
185	185	8 qualified military income that was not excluded from the
186	186	9 taxpayer's gross income for federal income tax purposes under
187	187	10 Section 112 of the Internal Revenue Code.
188	188	11 (19) Subtract income that is:
189	189	12 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
190	190	13 derived from patents); and
191	191	14 (B) included in the individual's federal adjusted gross income
192	192	15 under the Internal Revenue Code.
193	193	16 (20) Add an amount equal to any income not included in gross
194	194	17 income as a result of the deferral of income arising from business
195	195	18 indebtedness discharged in connection with the reacquisition after
196	196	19 December 31, 2008, and before January 1, 2011, of an applicable
197	197	20 debt instrument, as provided in Section 108(i) of the Internal
198	198	21 Revenue Code. Subtract the amount necessary from the adjusted
199	199	22 gross income of any taxpayer that added an amount to adjusted
200	200	23 gross income in a previous year to offset the amount included in
201	201	24 federal gross income as a result of the deferral of income arising
202	202	25 from business indebtedness discharged in connection with the
203	203	26 reacquisition after December 31, 2008, and before January 1,
204	204	27 2011, of an applicable debt instrument, as provided in Section
205	205	28 108(i) of the Internal Revenue Code.
206	206	29 (21) Add the amount excluded from federal gross income under
207	207	30 Section 103 of the Internal Revenue Code for interest received on
208	208	31 an obligation of a state other than Indiana, or a political
209	209	32 subdivision of such a state, that is acquired by the taxpayer after
210	210	33 December 31, 2011. For purposes of this subdivision:
211	211	34 (A) if the taxpayer receives interest from a pass through entity,
212	212	35 a regulated investment company, a hedge fund, or similar
213	213	36 arrangement, the taxpayer will be considered to have acquired
214	214	37 the obligation on the date the entity acquired the obligation;
215	215	38 (B) if ownership of the obligation occurs by means other than
216	216	39 a purchase, the date of acquisition of the obligation shall be
217	217	40 the date ownership of the obligation was transferred, except to
218	218	41 the extent provided in clause (A), and if a portion of the
219	219	42 obligation is acquired on multiple dates, the date of acquisition
220	220	2025 IN 1550—LS 6324/DI 134 6
221	221	1 shall be considered separately for each portion of the
222	222	2 obligation; and
223	223	3 (C) if ownership of the obligation occurred as the result of a
224	224	4 refinancing of another obligation, the acquisition date shall be
225	225	5 the date on which the obligation was refinanced.
226	226	6 (22) Subtract an amount as described in Section 1341(a)(2) of the
227	227	7 Internal Revenue Code to the extent, if any, that the amount was
228	228	8 previously included in the taxpayer's adjusted gross income for a
229	229	9 prior taxable year.
230	230	10 (23) For taxable years beginning after December 25, 2016, add an
231	231	11 amount equal to the deduction for deferred foreign income that
232	232	12 was claimed by the taxpayer for the taxable year under Section
233	233	13 965(c) of the Internal Revenue Code.
234	234	14 (24) Subtract any interest expense paid or accrued in the current
235	235	15 taxable year but not deducted as a result of the limitation imposed
236	236	16 under Section 163(j)(1) of the Internal Revenue Code. Add any
237	237	17 interest expense paid or accrued in a previous taxable year but
238	238	18 allowed as a deduction under Section 163 of the Internal Revenue
239	239	19 Code in the current taxable year. For purposes of this subdivision,
240	240	20 an interest expense is considered paid or accrued only in the first
241	241	21 taxable year the deduction would have been allowable under
242	242	22 Section 163 of the Internal Revenue Code if the limitation under
243	243	23 Section 163(j)(1) of the Internal Revenue Code did not exist.
244	244	24 (25) Subtract the amount that would have been excluded from
245	245	25 gross income but for the enactment of Section 118(b)(2) of the
246	246	26 Internal Revenue Code for taxable years ending after December
247	247	27 22, 2017.
248	248	28 (26) For taxable years beginning after December 31, 2019, and
249	249	29 before January 1, 2021, add an amount of the deduction claimed
250	250	30 under Section 62(a)(22) of the Internal Revenue Code.
251	251	31 (27) For taxable years beginning after December 31, 2019, for
252	252	32 payments made by an employer under an education assistance
253	253	33 program after March 27, 2020:
254	254	34 (A) add the amount of payments by an employer that are
255	255	35 excluded from the taxpayer's federal gross income under
256	256	36 Section 127(c)(1)(B) of the Internal Revenue Code; and
257	257	37 (B) deduct the interest allowable under Section 221 of the
258	258	38 Internal Revenue Code, if the disallowance under Section
259	259	39 221(e)(1) of the Internal Revenue Code did not apply to the
260	260	40 payments described in clause (A). For purposes of applying
261	261	41 Section 221(b) of the Internal Revenue Code to the amount
262	262	42 allowable under this clause, the amount under clause (A) shall
263	263	2025 IN 1550—LS 6324/DI 134 7
264	264	1 not be added to adjusted gross income.
265	265	2 (28) Add an amount equal to the remainder of:
266	266	3 (A) the amount allowable as a deduction under Section 274(n)
267	267	4 of the Internal Revenue Code; minus
268	268	5 (B) the amount otherwise allowable as a deduction under
269	269	6 Section 274(n) of the Internal Revenue Code, if Section
270	270	7 274(n)(2)(D) of the Internal Revenue Code was not in effect
271	271	8 for amounts paid or incurred after December 31, 2020.
272	272	9 (29) For taxable years beginning after December 31, 2017, and
273	273	10 before January 1, 2021, add an amount equal to the excess
274	274	11 business loss of the taxpayer as defined in Section 461(l)(3) of the
275	275	12 Internal Revenue Code. In addition:
276	276	13 (A) If a taxpayer has an excess business loss under this
277	277	14 subdivision and also has modifications under subdivisions (15)
278	278	15 and (17) for property placed in service during the taxable year,
279	279	16 the taxpayer shall treat a portion of the taxable year
280	280	17 modifications for that property as occurring in the taxable year
281	281	18 the property is placed in service and a portion of the
282	282	19 modifications as occurring in the immediately following
283	283	20 taxable year.
284	284	21 (B) The portion of the modifications under subdivisions (15)
285	285	22 and (17) for property placed in service during the taxable year
286	286	23 treated as occurring in the taxable year in which the property
287	287	24 is placed in service equals:
288	288	25 (i) the modification for the property otherwise determined
289	289	26 under this section; minus
290	290	27 (ii) the excess business loss disallowed under this
291	291	28 subdivision;
292	292	29 but not less than zero (0).
293	293	30 (C) The portion of the modifications under subdivisions (15)
294	294	31 and (17) for property placed in service during the taxable year
295	295	32 treated as occurring in the taxable year immediately following
296	296	33 the taxable year in which the property is placed in service
297	297	34 equals the modification for the property otherwise determined
298	298	35 under this section minus the amount in clause (B).
299	299	36 (D) Any reallocation of modifications between taxable years
300	300	37 under clauses (B) and (C) shall be first allocated to the
301	301	38 modification under subdivision (15), then to the modification
302	302	39 under subdivision (17).
303	303	40 (30) Add an amount equal to the amount excluded from federal
304	304	41 gross income under Section 108(f)(5) of the Internal Revenue
305	305	42 Code. For purposes of this subdivision:
306	306	2025 IN 1550—LS 6324/DI 134 8
307	307	1 (A) if an amount excluded under Section 108(f)(5) of the
308	308	2 Internal Revenue Code would be excludible under Section
309	309	3 108(a)(1)(B) of the Internal Revenue Code, the exclusion
310	310	4 under Section 108(a)(1)(B) of the Internal Revenue Code shall
311	311	5 take precedence; and
312	312	6 (B) if an amount would have been excludible under Section
313	313	7 108(f)(5) of the Internal Revenue Code as in effect on January
314	314	8 1, 2020, the amount is not required to be added back under this
315	315	9 subdivision.
316	316	10 (31) For taxable years ending after March 12, 2020, subtract an
317	317	11 amount equal to the deduction disallowed pursuant to:
318	318	12 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
319	319	13 as modified by Sections 206 and 207 of the Taxpayer Certainty
320	320	14 and Disaster Relief Tax Act (Division EE of Public Law
321	321	15 116-260); and
322	322	16 (B) Section 3134(e) of the Internal Revenue Code.
323	323	17 (32) Subtract the amount of an ESA annual grant amount and, as
324	324	18 applicable, a CSA annual grant amount distributed to a taxpayer's
325	325	19 Indiana education scholarship account under IC 20-51.4 that is
326	326	20 used for an ESA or CSA qualified expense (as defined in
327	327	21 IC 20-51.4-2) or to an Indiana enrichment scholarship account
328	328	22 under IC 20-52 that is used for qualified expenses (as defined in
329	329	23 IC 20-52-2-6), to the extent the distribution used for the qualified
330	330	24 expense is included in the taxpayer's federal adjusted gross
331	331	25 income under the Internal Revenue Code.
332	332	26 (33) For taxable years beginning after December 31, 2019, and
333	333	27 before January 1, 2021, add an amount equal to the amount of
334	334	28 unemployment compensation excluded from federal gross income
335	335	29 under Section 85(c) of the Internal Revenue Code.
336	336	30 (34) For taxable years beginning after December 31, 2022,
337	337	31 subtract an amount equal to the deduction disallowed under
338	338	32 Section 280C(h) of the Internal Revenue Code.
339	339	33 (35) For taxable years beginning after December 31, 2021, add or
340	340	34 subtract amounts related to specified research or experimental
341	341	35 procedures as required under IC 6-3-2-29.
342	342	36 (36) Subtract any other amounts the taxpayer is entitled to deduct
343	343	37 under IC 6-3-2.
344	344	38 (37) Subtract the amount of a CSA annual grant amount
345	345	39 distributed to a taxpayer's career scholarship account under
346	346	40 IC 20-51.4-4.5 that is used for a CSA qualified expense (as
347	347	41 defined in IC 20-51.4-2-3.8), to the extent the distribution used
348	348	42 for the CSA qualified expense is included in the taxpayer's federal
349	349	2025 IN 1550—LS 6324/DI 134 9
350	350	1 adjusted gross income under the Internal Revenue Code.
351	351	2 (b) In the case of corporations, the same as "taxable income" (as
352	352	3 defined in Section 63 of the Internal Revenue Code) adjusted as
353	353	4 follows:
354	354	5 (1) Subtract income that is exempt from taxation under this article
355	355	6 by the Constitution and statutes of the United States.
356	356	7 (2) Add an amount equal to any deduction or deductions allowed
357	357	8 or allowable pursuant to Section 170 of the Internal Revenue
358	358	9 Code (concerning charitable contributions).
359	359	10 (3) Except as provided in subsection (c), add an amount equal to
360	360	11 any deduction or deductions allowed or allowable pursuant to
361	361	12 Section 63 of the Internal Revenue Code for taxes based on or
362	362	13 measured by income and levied at the state level by any state of
363	363	14 the United States.
364	364	15 (4) Subtract an amount equal to the amount included in the
365	365	16 corporation's taxable income under Section 78 of the Internal
366	366	17 Revenue Code (concerning foreign tax credits).
367	367	18 (5) Add or subtract the amount necessary to make the adjusted
368	368	19 gross income of any taxpayer that owns property for which bonus
369	369	20 depreciation was allowed in the current taxable year or in an
370	370	21 earlier taxable year equal to the amount of adjusted gross income
371	371	22 that would have been computed had an election not been made
372	372	23 under Section 168(k) of the Internal Revenue Code to apply bonus
373	373	24 depreciation to the property in the year that it was placed in
374	374	25 service.
375	375	26 (6) Add an amount equal to any deduction allowed under Section
376	376	27 172 of the Internal Revenue Code (concerning net operating
377	377	28 losses).
378	378	29 (7) Add or subtract the amount necessary to make the adjusted
379	379	30 gross income of any taxpayer that placed Section 179 property (as
380	380	31 defined in Section 179 of the Internal Revenue Code) in service
381	381	32 in the current taxable year or in an earlier taxable year equal to
382	382	33 the amount of adjusted gross income that would have been
383	383	34 computed had an election for federal income tax purposes not
384	384	35 been made for the year in which the property was placed in
385	385	36 service to take deductions under Section 179 of the Internal
386	386	37 Revenue Code in a total amount exceeding the sum of:
387	387	38 (A) twenty-five thousand dollars ($25,000) to the extent
388	388	39 deductions under Section 179 of the Internal Revenue Code
389	389	40 were not elected as provided in clause (B); and
390	390	41 (B) for taxable years beginning after December 31, 2017, the
391	391	42 deductions elected under Section 179 of the Internal Revenue
392	392	2025 IN 1550—LS 6324/DI 134 10
393	393	1 Code on property acquired in an exchange if:
394	394	2 (i) the exchange would have been eligible for
395	395	3 nonrecognition of gain or loss under Section 1031 of the
396	396	4 Internal Revenue Code in effect on January 1, 2017;
397	397	5 (ii) the exchange is not eligible for nonrecognition of gain or
398	398	6 loss under Section 1031 of the Internal Revenue Code; and
399	399	7 (iii) the taxpayer made an election to take deductions under
400	400	8 Section 179 of the Internal Revenue Code with regard to the
401	401	9 acquired property in the year that the property was placed
402	402	10 into service.
403	403	11 The amount of deductions allowable for an item of property
404	404	12 under this clause may not exceed the amount of adjusted gross
405	405	13 income realized on the property that would have been deferred
406	406	14 under the Internal Revenue Code in effect on January 1, 2017.
407	407	15 (8) Add to the extent required by IC 6-3-2-20:
408	408	16 (A) the amount of intangible expenses (as defined in
409	409	17 IC 6-3-2-20) for the taxable year that reduced the corporation's
410	410	18 taxable income (as defined in Section 63 of the Internal
411	411	19 Revenue Code) for federal income tax purposes; and
412	412	20 (B) any directly related interest expenses (as defined in
413	413	21 IC 6-3-2-20) that reduced the corporation's adjusted gross
414	414	22 income (determined without regard to this subdivision). For
415	415	23 purposes of this clause, any directly related interest expense
416	416	24 that constitutes business interest within the meaning of Section
417	417	25 163(j) of the Internal Revenue Code shall be considered to
418	418	26 have reduced the taxpayer's federal taxable income only in the
419	419	27 first taxable year in which the deduction otherwise would have
420	420	28 been allowable under Section 163 of the Internal Revenue
421	421	29 Code if the limitation under Section 163(j)(1) of the Internal
422	422	30 Revenue Code did not exist.
423	423	31 (9) Add an amount equal to any deduction for dividends paid (as
424	424	32 defined in Section 561 of the Internal Revenue Code) to
425	425	33 shareholders of a captive real estate investment trust (as defined
426	426	34 in section 34.5 of this chapter).
427	427	35 (10) Subtract income that is:
428	428	36 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
429	429	37 derived from patents); and
430	430	38 (B) included in the corporation's taxable income under the
431	431	39 Internal Revenue Code.
432	432	40 (11) Add an amount equal to any income not included in gross
433	433	41 income as a result of the deferral of income arising from business
434	434	42 indebtedness discharged in connection with the reacquisition after
435	435	2025 IN 1550—LS 6324/DI 134 11
436	436	1 December 31, 2008, and before January 1, 2011, of an applicable
437	437	2 debt instrument, as provided in Section 108(i) of the Internal
438	438	3 Revenue Code. Subtract from the adjusted gross income of any
439	439	4 taxpayer that added an amount to adjusted gross income in a
440	440	5 previous year the amount necessary to offset the amount included
441	441	6 in federal gross income as a result of the deferral of income
442	442	7 arising from business indebtedness discharged in connection with
443	443	8 the reacquisition after December 31, 2008, and before January 1,
444	444	9 2011, of an applicable debt instrument, as provided in Section
445	445	10 108(i) of the Internal Revenue Code.
446	446	11 (12) Add the amount excluded from federal gross income under
447	447	12 Section 103 of the Internal Revenue Code for interest received on
448	448	13 an obligation of a state other than Indiana, or a political
449	449	14 subdivision of such a state, that is acquired by the taxpayer after
450	450	15 December 31, 2011. For purposes of this subdivision:
451	451	16 (A) if the taxpayer receives interest from a pass through entity,
452	452	17 a regulated investment company, a hedge fund, or similar
453	453	18 arrangement, the taxpayer will be considered to have acquired
454	454	19 the obligation on the date the entity acquired the obligation;
455	455	20 (B) if ownership of the obligation occurs by means other than
456	456	21 a purchase, the date of acquisition of the obligation shall be
457	457	22 the date ownership of the obligation was transferred, except to
458	458	23 the extent provided in clause (A), and if a portion of the
459	459	24 obligation is acquired on multiple dates, the date of acquisition
460	460	25 shall be considered separately for each portion of the
461	461	26 obligation; and
462	462	27 (C) if ownership of the obligation occurred as the result of a
463	463	28 refinancing of another obligation, the acquisition date shall be
464	464	29 the date on which the obligation was refinanced.
465	465	30 (13) For taxable years beginning after December 25, 2016:
466	466	31 (A) for a corporation other than a real estate investment trust,
467	467	32 add:
468	468	33 (i) an amount equal to the amount reported by the taxpayer
469	469	34 on IRC 965 Transition Tax Statement, line 1; or
470	470	35 (ii) if the taxpayer deducted an amount under Section 965(c)
471	471	36 of the Internal Revenue Code in determining the taxpayer's
472	472	37 taxable income for purposes of the federal income tax, the
473	473	38 amount deducted under Section 965(c) of the Internal
474	474	39 Revenue Code; and
475	475	40 (B) for a real estate investment trust, add an amount equal to
476	476	41 the deduction for deferred foreign income that was claimed by
477	477	42 the taxpayer for the taxable year under Section 965(c) of the
478	478	2025 IN 1550—LS 6324/DI 134 12
479	479	1 Internal Revenue Code, but only to the extent that the taxpayer
480	480	2 included income pursuant to Section 965 of the Internal
481	481	3 Revenue Code in its taxable income for federal income tax
482	482	4 purposes or is required to add back dividends paid under
483	483	5 subdivision (9).
484	484	6 (14) Add an amount equal to the deduction that was claimed by
485	485	7 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
486	486	8 Internal Revenue Code (attributable to global intangible
487	487	9 low-taxed income). The taxpayer shall separately specify the
488	488	10 amount of the reduction under Section 250(a)(1)(B)(i) of the
489	489	11 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
490	490	12 Internal Revenue Code.
491	491	13 (15) Subtract any interest expense paid or accrued in the current
492	492	14 taxable year but not deducted as a result of the limitation imposed
493	493	15 under Section 163(j)(1) of the Internal Revenue Code. Add any
494	494	16 interest expense paid or accrued in a previous taxable year but
495	495	17 allowed as a deduction under Section 163 of the Internal Revenue
496	496	18 Code in the current taxable year. For purposes of this subdivision,
497	497	19 an interest expense is considered paid or accrued only in the first
498	498	20 taxable year the deduction would have been allowable under
499	499	21 Section 163 of the Internal Revenue Code if the limitation under
500	500	22 Section 163(j)(1) of the Internal Revenue Code did not exist.
501	501	23 (16) Subtract the amount that would have been excluded from
502	502	24 gross income but for the enactment of Section 118(b)(2) of the
503	503	25 Internal Revenue Code for taxable years ending after December
504	504	26 22, 2017.
505	505	27 (17) Add an amount equal to the remainder of:
506	506	28 (A) the amount allowable as a deduction under Section 274(n)
507	507	29 of the Internal Revenue Code; minus
508	508	30 (B) the amount otherwise allowable as a deduction under
509	509	31 Section 274(n) of the Internal Revenue Code, if Section
510	510	32 274(n)(2)(D) of the Internal Revenue Code was not in effect
511	511	33 for amounts paid or incurred after December 31, 2020.
512	512	34 (18) For taxable years ending after March 12, 2020, subtract an
513	513	35 amount equal to the deduction disallowed pursuant to:
514	514	36 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
515	515	37 as modified by Sections 206 and 207 of the Taxpayer Certainty
516	516	38 and Disaster Relief Tax Act (Division EE of Public Law
517	517	39 116-260); and
518	518	40 (B) Section 3134(e) of the Internal Revenue Code.
519	519	41 (19) For taxable years beginning after December 31, 2022,
520	520	42 subtract an amount equal to the deduction disallowed under
521	521	2025 IN 1550—LS 6324/DI 134 13
522	522	1 Section 280C(h) of the Internal Revenue Code.
523	523	2 (20) For taxable years beginning after December 31, 2021,
524	524	3 subtract the amount of any:
525	525	4 (A) federal, state, or local grant received by the taxpayer; and
526	526	5 (B) discharged federal, state, or local indebtedness incurred by
527	527	6 the taxpayer;
528	528	7 for purposes of providing or expanding access to broadband
529	529	8 service in this state.
530	530	9 (21) For taxable years beginning after December 31, 2021, add or
531	531	10 subtract amounts related to specified research or experimental
532	532	11 procedures as required under IC 6-3-2-29.
533	533	12 (22) Add or subtract any other amounts the taxpayer is:
534	534	13 (A) required to add or subtract; or
535	535	14 (B) entitled to deduct;
536	536	15 under IC 6-3-2.
537	537	16 (c) The following apply to taxable years beginning after December
538	538	17 31, 2018, for purposes of the add back of any deduction allowed on the
539	539	18 taxpayer's federal income tax return for wagering taxes, as provided in
540	540	19 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
541	541	20 the taxpayer is a corporation:
542	542	21 (1) For taxable years beginning after December 31, 2018, and
543	543	22 before January 1, 2020, a taxpayer is required to add back under
544	544	23 this section eighty-seven and five-tenths percent (87.5%) of any
545	545	24 deduction allowed on the taxpayer's federal income tax return for
546	546	25 wagering taxes.
547	547	26 (2) For taxable years beginning after December 31, 2019, and
548	548	27 before January 1, 2021, a taxpayer is required to add back under
549	549	28 this section seventy-five percent (75%) of any deduction allowed
550	550	29 on the taxpayer's federal income tax return for wagering taxes.
551	551	30 (3) For taxable years beginning after December 31, 2020, and
552	552	31 before January 1, 2022, a taxpayer is required to add back under
553	553	32 this section sixty-two and five-tenths percent (62.5%) of any
554	554	33 deduction allowed on the taxpayer's federal income tax return for
555	555	34 wagering taxes.
556	556	35 (4) For taxable years beginning after December 31, 2021, and
557	557	36 before January 1, 2023, a taxpayer is required to add back under
558	558	37 this section fifty percent (50%) of any deduction allowed on the
559	559	38 taxpayer's federal income tax return for wagering taxes.
560	560	39 (5) For taxable years beginning after December 31, 2022, and
561	561	40 before January 1, 2024, a taxpayer is required to add back under
562	562	41 this section thirty-seven and five-tenths percent (37.5%) of any
563	563	42 deduction allowed on the taxpayer's federal income tax return for
564	564	2025 IN 1550—LS 6324/DI 134 14
565	565	1 wagering taxes.
566	566	2 (6) For taxable years beginning after December 31, 2023, and
567	567	3 before January 1, 2025, a taxpayer is required to add back under
568	568	4 this section twenty-five percent (25%) of any deduction allowed
569	569	5 on the taxpayer's federal income tax return for wagering taxes.
570	570	6 (7) For taxable years beginning after December 31, 2024, and
571	571	7 before January 1, 2026, a taxpayer is required to add back under
572	572	8 this section twelve and five-tenths percent (12.5%) of any
573	573	9 deduction allowed on the taxpayer's federal income tax return for
574	574	10 wagering taxes.
575	575	11 (8) For taxable years beginning after December 31, 2025, a
576	576	12 taxpayer is not required to add back under this section any amount
577	577	13 of a deduction allowed on the taxpayer's federal income tax return
578	578	14 for wagering taxes.
579	579	15 (d) In the case of life insurance companies (as defined in Section
580	580	16 816(a) of the Internal Revenue Code) that are organized under Indiana
581	581	17 law, the same as "life insurance company taxable income" (as defined
582	582	18 in Section 801 of the Internal Revenue Code), adjusted as follows:
583	583	19 (1) Subtract income that is exempt from taxation under this article
584	584	20 by the Constitution and statutes of the United States.
585	585	21 (2) Add an amount equal to any deduction allowed or allowable
586	586	22 under Section 170 of the Internal Revenue Code (concerning
587	587	23 charitable contributions).
588	588	24 (3) Add an amount equal to a deduction allowed or allowable
589	589	25 under Section 805 or Section 832(c) of the Internal Revenue Code
590	590	26 for taxes based on or measured by income and levied at the state
591	591	27 level by any state.
592	592	28 (4) Subtract an amount equal to the amount included in the
593	593	29 company's taxable income under Section 78 of the Internal
594	594	30 Revenue Code (concerning foreign tax credits).
595	595	31 (5) Add or subtract the amount necessary to make the adjusted
596	596	32 gross income of any taxpayer that owns property for which bonus
597	597	33 depreciation was allowed in the current taxable year or in an
598	598	34 earlier taxable year equal to the amount of adjusted gross income
599	599	35 that would have been computed had an election not been made
600	600	36 under Section 168(k) of the Internal Revenue Code to apply bonus
601	601	37 depreciation to the property in the year that it was placed in
602	602	38 service.
603	603	39 (6) Add an amount equal to any deduction allowed under Section
604	604	40 172 of the Internal Revenue Code (concerning net operating
605	605	41 losses).
606	606	42 (7) Add or subtract the amount necessary to make the adjusted
607	607	2025 IN 1550—LS 6324/DI 134 15
608	608	1 gross income of any taxpayer that placed Section 179 property (as
609	609	2 defined in Section 179 of the Internal Revenue Code) in service
610	610	3 in the current taxable year or in an earlier taxable year equal to
611	611	4 the amount of adjusted gross income that would have been
612	612	5 computed had an election for federal income tax purposes not
613	613	6 been made for the year in which the property was placed in
614	614	7 service to take deductions under Section 179 of the Internal
615	615	8 Revenue Code in a total amount exceeding the sum of:
616	616	9 (A) twenty-five thousand dollars ($25,000) to the extent
617	617	10 deductions under Section 179 of the Internal Revenue Code
618	618	11 were not elected as provided in clause (B); and
619	619	12 (B) for taxable years beginning after December 31, 2017, the
620	620	13 deductions elected under Section 179 of the Internal Revenue
621	621	14 Code on property acquired in an exchange if:
622	622	15 (i) the exchange would have been eligible for
623	623	16 nonrecognition of gain or loss under Section 1031 of the
624	624	17 Internal Revenue Code in effect on January 1, 2017;
625	625	18 (ii) the exchange is not eligible for nonrecognition of gain or
626	626	19 loss under Section 1031 of the Internal Revenue Code; and
627	627	20 (iii) the taxpayer made an election to take deductions under
628	628	21 Section 179 of the Internal Revenue Code with regard to the
629	629	22 acquired property in the year that the property was placed
630	630	23 into service.
631	631	24 The amount of deductions allowable for an item of property
632	632	25 under this clause may not exceed the amount of adjusted gross
633	633	26 income realized on the property that would have been deferred
634	634	27 under the Internal Revenue Code in effect on January 1, 2017.
635	635	28 (8) Subtract income that is:
636	636	29 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
637	637	30 derived from patents); and
638	638	31 (B) included in the insurance company's taxable income under
639	639	32 the Internal Revenue Code.
640	640	33 (9) Add an amount equal to any income not included in gross
641	641	34 income as a result of the deferral of income arising from business
642	642	35 indebtedness discharged in connection with the reacquisition after
643	643	36 December 31, 2008, and before January 1, 2011, of an applicable
644	644	37 debt instrument, as provided in Section 108(i) of the Internal
645	645	38 Revenue Code. Subtract from the adjusted gross income of any
646	646	39 taxpayer that added an amount to adjusted gross income in a
647	647	40 previous year the amount necessary to offset the amount included
648	648	41 in federal gross income as a result of the deferral of income
649	649	42 arising from business indebtedness discharged in connection with
650	650	2025 IN 1550—LS 6324/DI 134 16
651	651	1 the reacquisition after December 31, 2008, and before January 1,
652	652	2 2011, of an applicable debt instrument, as provided in Section
653	653	3 108(i) of the Internal Revenue Code.
654	654	4 (10) Add an amount equal to any exempt insurance income under
655	655	5 Section 953(e) of the Internal Revenue Code that is active
656	656	6 financing income under Subpart F of Subtitle A, Chapter 1,
657	657	7 Subchapter N of the Internal Revenue Code.
658	658	8 (11) Add the amount excluded from federal gross income under
659	659	9 Section 103 of the Internal Revenue Code for interest received on
660	660	10 an obligation of a state other than Indiana, or a political
661	661	11 subdivision of such a state, that is acquired by the taxpayer after
662	662	12 December 31, 2011. For purposes of this subdivision:
663	663	13 (A) if the taxpayer receives interest from a pass through entity,
664	664	14 a regulated investment company, a hedge fund, or similar
665	665	15 arrangement, the taxpayer will be considered to have acquired
666	666	16 the obligation on the date the entity acquired the obligation;
667	667	17 (B) if ownership of the obligation occurs by means other than
668	668	18 a purchase, the date of acquisition of the obligation shall be
669	669	19 the date ownership of the obligation was transferred, except to
670	670	20 the extent provided in clause (A), and if a portion of the
671	671	21 obligation is acquired on multiple dates, the date of acquisition
672	672	22 shall be considered separately for each portion of the
673	673	23 obligation; and
674	674	24 (C) if ownership of the obligation occurred as the result of a
675	675	25 refinancing of another obligation, the acquisition date shall be
676	676	26 the date on which the obligation was refinanced.
677	677	27 (12) For taxable years beginning after December 25, 2016, add:
678	678	28 (A) an amount equal to the amount reported by the taxpayer on
679	679	29 IRC 965 Transition Tax Statement, line 1; or
680	680	30 (B) if the taxpayer deducted an amount under Section 965(c)
681	681	31 of the Internal Revenue Code in determining the taxpayer's
682	682	32 taxable income for purposes of the federal income tax, the
683	683	33 amount deducted under Section 965(c) of the Internal Revenue
684	684	34 Code.
685	685	35 (13) Add an amount equal to the deduction that was claimed by
686	686	36 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
687	687	37 Internal Revenue Code (attributable to global intangible
688	688	38 low-taxed income). The taxpayer shall separately specify the
689	689	39 amount of the reduction under Section 250(a)(1)(B)(i) of the
690	690	40 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
691	691	41 Internal Revenue Code.
692	692	42 (14) Subtract any interest expense paid or accrued in the current
693	693	2025 IN 1550—LS 6324/DI 134 17
694	694	1 taxable year but not deducted as a result of the limitation imposed
695	695	2 under Section 163(j)(1) of the Internal Revenue Code. Add any
696	696	3 interest expense paid or accrued in a previous taxable year but
697	697	4 allowed as a deduction under Section 163 of the Internal Revenue
698	698	5 Code in the current taxable year. For purposes of this subdivision,
699	699	6 an interest expense is considered paid or accrued only in the first
700	700	7 taxable year the deduction would have been allowable under
701	701	8 Section 163 of the Internal Revenue Code if the limitation under
702	702	9 Section 163(j)(1) of the Internal Revenue Code did not exist.
703	703	10 (15) Subtract the amount that would have been excluded from
704	704	11 gross income but for the enactment of Section 118(b)(2) of the
705	705	12 Internal Revenue Code for taxable years ending after December
706	706	13 22, 2017.
707	707	14 (16) Add an amount equal to the remainder of:
708	708	15 (A) the amount allowable as a deduction under Section 274(n)
709	709	16 of the Internal Revenue Code; minus
710	710	17 (B) the amount otherwise allowable as a deduction under
711	711	18 Section 274(n) of the Internal Revenue Code, if Section
712	712	19 274(n)(2)(D) of the Internal Revenue Code was not in effect
713	713	20 for amounts paid or incurred after December 31, 2020.
714	714	21 (17) For taxable years ending after March 12, 2020, subtract an
715	715	22 amount equal to the deduction disallowed pursuant to:
716	716	23 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
717	717	24 as modified by Sections 206 and 207 of the Taxpayer Certainty
718	718	25 and Disaster Relief Tax Act (Division EE of Public Law
719	719	26 116-260); and
720	720	27 (B) Section 3134(e) of the Internal Revenue Code.
721	721	28 (18) For taxable years beginning after December 31, 2022,
722	722	29 subtract an amount equal to the deduction disallowed under
723	723	30 Section 280C(h) of the Internal Revenue Code.
724	724	31 (19) For taxable years beginning after December 31, 2021, add or
725	725	32 subtract amounts related to specified research or experimental
726	726	33 procedures as required under IC 6-3-2-29.
727	727	34 (20) Add or subtract any other amounts the taxpayer is:
728	728	35 (A) required to add or subtract; or
729	729	36 (B) entitled to deduct;
730	730	37 under IC 6-3-2.
731	731	38 (e) In the case of insurance companies subject to tax under Section
732	732	39 831 of the Internal Revenue Code and organized under Indiana law, the
733	733	40 same as "taxable income" (as defined in Section 832 of the Internal
734	734	41 Revenue Code), adjusted as follows:
735	735	42 (1) Subtract income that is exempt from taxation under this article
736	736	2025 IN 1550—LS 6324/DI 134 18
737	737	1 by the Constitution and statutes of the United States.
738	738	2 (2) Add an amount equal to any deduction allowed or allowable
739	739	3 under Section 170 of the Internal Revenue Code (concerning
740	740	4 charitable contributions).
741	741	5 (3) Add an amount equal to a deduction allowed or allowable
742	742	6 under Section 805 or Section 832(c) of the Internal Revenue Code
743	743	7 for taxes based on or measured by income and levied at the state
744	744	8 level by any state.
745	745	9 (4) Subtract an amount equal to the amount included in the
746	746	10 company's taxable income under Section 78 of the Internal
747	747	11 Revenue Code (concerning foreign tax credits).
748	748	12 (5) Add or subtract the amount necessary to make the adjusted
749	749	13 gross income of any taxpayer that owns property for which bonus
750	750	14 depreciation was allowed in the current taxable year or in an
751	751	15 earlier taxable year equal to the amount of adjusted gross income
752	752	16 that would have been computed had an election not been made
753	753	17 under Section 168(k) of the Internal Revenue Code to apply bonus
754	754	18 depreciation to the property in the year that it was placed in
755	755	19 service.
756	756	20 (6) Add an amount equal to any deduction allowed under Section
757	757	21 172 of the Internal Revenue Code (concerning net operating
758	758	22 losses).
759	759	23 (7) Add or subtract the amount necessary to make the adjusted
760	760	24 gross income of any taxpayer that placed Section 179 property (as
761	761	25 defined in Section 179 of the Internal Revenue Code) in service
762	762	26 in the current taxable year or in an earlier taxable year equal to
763	763	27 the amount of adjusted gross income that would have been
764	764	28 computed had an election for federal income tax purposes not
765	765	29 been made for the year in which the property was placed in
766	766	30 service to take deductions under Section 179 of the Internal
767	767	31 Revenue Code in a total amount exceeding the sum of:
768	768	32 (A) twenty-five thousand dollars ($25,000) to the extent
769	769	33 deductions under Section 179 of the Internal Revenue Code
770	770	34 were not elected as provided in clause (B); and
771	771	35 (B) for taxable years beginning after December 31, 2017, the
772	772	36 deductions elected under Section 179 of the Internal Revenue
773	773	37 Code on property acquired in an exchange if:
774	774	38 (i) the exchange would have been eligible for
775	775	39 nonrecognition of gain or loss under Section 1031 of the
776	776	40 Internal Revenue Code in effect on January 1, 2017;
777	777	41 (ii) the exchange is not eligible for nonrecognition of gain or
778	778	42 loss under Section 1031 of the Internal Revenue Code; and
779	779	2025 IN 1550—LS 6324/DI 134 19
780	780	1 (iii) the taxpayer made an election to take deductions under
781	781	2 Section 179 of the Internal Revenue Code with regard to the
782	782	3 acquired property in the year that the property was placed
783	783	4 into service.
784	784	5 The amount of deductions allowable for an item of property
785	785	6 under this clause may not exceed the amount of adjusted gross
786	786	7 income realized on the property that would have been deferred
787	787	8 under the Internal Revenue Code in effect on January 1, 2017.
788	788	9 (8) Subtract income that is:
789	789	10 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
790	790	11 derived from patents); and
791	791	12 (B) included in the insurance company's taxable income under
792	792	13 the Internal Revenue Code.
793	793	14 (9) Add an amount equal to any income not included in gross
794	794	15 income as a result of the deferral of income arising from business
795	795	16 indebtedness discharged in connection with the reacquisition after
796	796	17 December 31, 2008, and before January 1, 2011, of an applicable
797	797	18 debt instrument, as provided in Section 108(i) of the Internal
798	798	19 Revenue Code. Subtract from the adjusted gross income of any
799	799	20 taxpayer that added an amount to adjusted gross income in a
800	800	21 previous year the amount necessary to offset the amount included
801	801	22 in federal gross income as a result of the deferral of income
802	802	23 arising from business indebtedness discharged in connection with
803	803	24 the reacquisition after December 31, 2008, and before January 1,
804	804	25 2011, of an applicable debt instrument, as provided in Section
805	805	26 108(i) of the Internal Revenue Code.
806	806	27 (10) Add an amount equal to any exempt insurance income under
807	807	28 Section 953(e) of the Internal Revenue Code that is active
808	808	29 financing income under Subpart F of Subtitle A, Chapter 1,
809	809	30 Subchapter N of the Internal Revenue Code.
810	810	31 (11) Add the amount excluded from federal gross income under
811	811	32 Section 103 of the Internal Revenue Code for interest received on
812	812	33 an obligation of a state other than Indiana, or a political
813	813	34 subdivision of such a state, that is acquired by the taxpayer after
814	814	35 December 31, 2011. For purposes of this subdivision:
815	815	36 (A) if the taxpayer receives interest from a pass through entity,
816	816	37 a regulated investment company, a hedge fund, or similar
817	817	38 arrangement, the taxpayer will be considered to have acquired
818	818	39 the obligation on the date the entity acquired the obligation;
819	819	40 (B) if ownership of the obligation occurs by means other than
820	820	41 a purchase, the date of acquisition of the obligation shall be
821	821	42 the date ownership of the obligation was transferred, except to
822	822	2025 IN 1550—LS 6324/DI 134 20
823	823	1 the extent provided in clause (A), and if a portion of the
824	824	2 obligation is acquired on multiple dates, the date of acquisition
825	825	3 shall be considered separately for each portion of the
826	826	4 obligation; and
827	827	5 (C) if ownership of the obligation occurred as the result of a
828	828	6 refinancing of another obligation, the acquisition date shall be
829	829	7 the date on which the obligation was refinanced.
830	830	8 (12) For taxable years beginning after December 25, 2016, add:
831	831	9 (A) an amount equal to the amount reported by the taxpayer on
832	832	10 IRC 965 Transition Tax Statement, line 1; or
833	833	11 (B) if the taxpayer deducted an amount under Section 965(c)
834	834	12 of the Internal Revenue Code in determining the taxpayer's
835	835	13 taxable income for purposes of the federal income tax, the
836	836	14 amount deducted under Section 965(c) of the Internal Revenue
837	837	15 Code.
838	838	16 (13) Add an amount equal to the deduction that was claimed by
839	839	17 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
840	840	18 Internal Revenue Code (attributable to global intangible
841	841	19 low-taxed income). The taxpayer shall separately specify the
842	842	20 amount of the reduction under Section 250(a)(1)(B)(i) of the
843	843	21 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
844	844	22 Internal Revenue Code.
845	845	23 (14) Subtract any interest expense paid or accrued in the current
846	846	24 taxable year but not deducted as a result of the limitation imposed
847	847	25 under Section 163(j)(1) of the Internal Revenue Code. Add any
848	848	26 interest expense paid or accrued in a previous taxable year but
849	849	27 allowed as a deduction under Section 163 of the Internal Revenue
850	850	28 Code in the current taxable year. For purposes of this subdivision,
851	851	29 an interest expense is considered paid or accrued only in the first
852	852	30 taxable year the deduction would have been allowable under
853	853	31 Section 163 of the Internal Revenue Code if the limitation under
854	854	32 Section 163(j)(1) of the Internal Revenue Code did not exist.
855	855	33 (15) Subtract the amount that would have been excluded from
856	856	34 gross income but for the enactment of Section 118(b)(2) of the
857	857	35 Internal Revenue Code for taxable years ending after December
858	858	36 22, 2017.
859	859	37 (16) Add an amount equal to the remainder of:
860	860	38 (A) the amount allowable as a deduction under Section 274(n)
861	861	39 of the Internal Revenue Code; minus
862	862	40 (B) the amount otherwise allowable as a deduction under
863	863	41 Section 274(n) of the Internal Revenue Code, if Section
864	864	42 274(n)(2)(D) of the Internal Revenue Code was not in effect
865	865	2025 IN 1550—LS 6324/DI 134 21
866	866	1 for amounts paid or incurred after December 31, 2020.
867	867	2 (17) For taxable years ending after March 12, 2020, subtract an
868	868	3 amount equal to the deduction disallowed pursuant to:
869	869	4 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
870	870	5 as modified by Sections 206 and 207 of the Taxpayer Certainty
871	871	6 and Disaster Relief Tax Act (Division EE of Public Law
872	872	7 116-260); and
873	873	8 (B) Section 3134(e) of the Internal Revenue Code.
874	874	9 (18) For taxable years beginning after December 31, 2022,
875	875	10 subtract an amount equal to the deduction disallowed under
876	876	11 Section 280C(h) of the Internal Revenue Code.
877	877	12 (19) For taxable years beginning after December 31, 2021, add or
878	878	13 subtract amounts related to specified research or experimental
879	879	14 procedures as required under IC 6-3-2-29.
880	880	15 (20) Add or subtract any other amounts the taxpayer is:
881	881	16 (A) required to add or subtract; or
882	882	17 (B) entitled to deduct;
883	883	18 under IC 6-3-2.
884	884	19 (f) In the case of trusts and estates, "taxable income" (as defined for
885	885	20 trusts and estates in Section 641(b) of the Internal Revenue Code)
886	886	21 adjusted as follows:
887	887	22 (1) Subtract income that is exempt from taxation under this article
888	888	23 by the Constitution and statutes of the United States.
889	889	24 (2) Subtract an amount equal to the amount of a September 11
890	890	25 terrorist attack settlement payment included in the federal
891	891	26 adjusted gross income of the estate of a victim of the September
892	892	27 11 terrorist attack or a trust to the extent the trust benefits a victim
893	893	28 of the September 11 terrorist attack.
894	894	29 (3) Add or subtract the amount necessary to make the adjusted
895	895	30 gross income of any taxpayer that owns property for which bonus
896	896	31 depreciation was allowed in the current taxable year or in an
897	897	32 earlier taxable year equal to the amount of adjusted gross income
898	898	33 that would have been computed had an election not been made
899	899	34 under Section 168(k) of the Internal Revenue Code to apply bonus
900	900	35 depreciation to the property in the year that it was placed in
901	901	36 service.
902	902	37 (4) Add an amount equal to any deduction allowed under Section
903	903	38 172 of the Internal Revenue Code (concerning net operating
904	904	39 losses).
905	905	40 (5) Add or subtract the amount necessary to make the adjusted
906	906	41 gross income of any taxpayer that placed Section 179 property (as
907	907	42 defined in Section 179 of the Internal Revenue Code) in service
908	908	2025 IN 1550—LS 6324/DI 134 22
909	909	1 in the current taxable year or in an earlier taxable year equal to
910	910	2 the amount of adjusted gross income that would have been
911	911	3 computed had an election for federal income tax purposes not
912	912	4 been made for the year in which the property was placed in
913	913	5 service to take deductions under Section 179 of the Internal
914	914	6 Revenue Code in a total amount exceeding the sum of:
915	915	7 (A) twenty-five thousand dollars ($25,000) to the extent
916	916	8 deductions under Section 179 of the Internal Revenue Code
917	917	9 were not elected as provided in clause (B); and
918	918	10 (B) for taxable years beginning after December 31, 2017, the
919	919	11 deductions elected under Section 179 of the Internal Revenue
920	920	12 Code on property acquired in an exchange if:
921	921	13 (i) the exchange would have been eligible for
922	922	14 nonrecognition of gain or loss under Section 1031 of the
923	923	15 Internal Revenue Code in effect on January 1, 2017;
924	924	16 (ii) the exchange is not eligible for nonrecognition of gain or
925	925	17 loss under Section 1031 of the Internal Revenue Code; and
926	926	18 (iii) the taxpayer made an election to take deductions under
927	927	19 Section 179 of the Internal Revenue Code with regard to the
928	928	20 acquired property in the year that the property was placed
929	929	21 into service.
930	930	22 The amount of deductions allowable for an item of property
931	931	23 under this clause may not exceed the amount of adjusted gross
932	932	24 income realized on the property that would have been deferred
933	933	25 under the Internal Revenue Code in effect on January 1, 2017.
934	934	26 (6) Subtract income that is:
935	935	27 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
936	936	28 derived from patents); and
937	937	29 (B) included in the taxpayer's taxable income under the
938	938	30 Internal Revenue Code.
939	939	31 (7) Add an amount equal to any income not included in gross
940	940	32 income as a result of the deferral of income arising from business
941	941	33 indebtedness discharged in connection with the reacquisition after
942	942	34 December 31, 2008, and before January 1, 2011, of an applicable
943	943	35 debt instrument, as provided in Section 108(i) of the Internal
944	944	36 Revenue Code. Subtract from the adjusted gross income of any
945	945	37 taxpayer that added an amount to adjusted gross income in a
946	946	38 previous year the amount necessary to offset the amount included
947	947	39 in federal gross income as a result of the deferral of income
948	948	40 arising from business indebtedness discharged in connection with
949	949	41 the reacquisition after December 31, 2008, and before January 1,
950	950	42 2011, of an applicable debt instrument, as provided in Section
951	951	2025 IN 1550—LS 6324/DI 134 23
952	952	1 108(i) of the Internal Revenue Code.
953	953	2 (8) Add the amount excluded from federal gross income under
954	954	3 Section 103 of the Internal Revenue Code for interest received on
955	955	4 an obligation of a state other than Indiana, or a political
956	956	5 subdivision of such a state, that is acquired by the taxpayer after
957	957	6 December 31, 2011. For purposes of this subdivision:
958	958	7 (A) if the taxpayer receives interest from a pass through entity,
959	959	8 a regulated investment company, a hedge fund, or similar
960	960	9 arrangement, the taxpayer will be considered to have acquired
961	961	10 the obligation on the date the entity acquired the obligation;
962	962	11 (B) if ownership of the obligation occurs by means other than
963	963	12 a purchase, the date of acquisition of the obligation shall be
964	964	13 the date ownership of the obligation was transferred, except to
965	965	14 the extent provided in clause (A), and if a portion of the
966	966	15 obligation is acquired on multiple dates, the date of acquisition
967	967	16 shall be considered separately for each portion of the
968	968	17 obligation; and
969	969	18 (C) if ownership of the obligation occurred as the result of a
970	970	19 refinancing of another obligation, the acquisition date shall be
971	971	20 the date on which the obligation was refinanced.
972	972	21 (9) For taxable years beginning after December 25, 2016, add an
973	973	22 amount equal to:
974	974	23 (A) the amount reported by the taxpayer on IRC 965
975	975	24 Transition Tax Statement, line 1;
976	976	25 (B) if the taxpayer deducted an amount under Section 965(c)
977	977	26 of the Internal Revenue Code in determining the taxpayer's
978	978	27 taxable income for purposes of the federal income tax, the
979	979	28 amount deducted under Section 965(c) of the Internal Revenue
980	980	29 Code; and
981	981	30 (C) with regard to any amounts of income under Section 965
982	982	31 of the Internal Revenue Code distributed by the taxpayer, the
983	983	32 deduction under Section 965(c) of the Internal Revenue Code
984	984	33 attributable to such distributed amounts and not reported to the
985	985	34 beneficiary.
986	986	35 For purposes of this article, the amount required to be added back
987	987	36 under clause (B) is not considered to be distributed or
988	988	37 distributable to a beneficiary of the estate or trust for purposes of
989	989	38 Sections 651 and 661 of the Internal Revenue Code.
990	990	39 (10) Subtract any interest expense paid or accrued in the current
991	991	40 taxable year but not deducted as a result of the limitation imposed
992	992	41 under Section 163(j)(1) of the Internal Revenue Code. Add any
993	993	42 interest expense paid or accrued in a previous taxable year but
994	994	2025 IN 1550—LS 6324/DI 134 24
995	995	1 allowed as a deduction under Section 163 of the Internal Revenue
996	996	2 Code in the current taxable year. For purposes of this subdivision,
997	997	3 an interest expense is considered paid or accrued only in the first
998	998	4 taxable year the deduction would have been allowable under
999	999	5 Section 163 of the Internal Revenue Code if the limitation under
1000	1000	6 Section 163(j)(1) of the Internal Revenue Code did not exist.
1001	1001	7 (11) Add an amount equal to the deduction for qualified business
1002	1002	8 income that was claimed by the taxpayer for the taxable year
1003	1003	9 under Section 199A of the Internal Revenue Code.
1004	1004	10 (12) Subtract the amount that would have been excluded from
1005	1005	11 gross income but for the enactment of Section 118(b)(2) of the
1006	1006	12 Internal Revenue Code for taxable years ending after December
1007	1007	13 22, 2017.
1008	1008	14 (13) Add an amount equal to the remainder of:
1009	1009	15 (A) the amount allowable as a deduction under Section 274(n)
1010	1010	16 of the Internal Revenue Code; minus
1011	1011	17 (B) the amount otherwise allowable as a deduction under
1012	1012	18 Section 274(n) of the Internal Revenue Code, if Section
1013	1013	19 274(n)(2)(D) of the Internal Revenue Code was not in effect
1014	1014	20 for amounts paid or incurred after December 31, 2020.
1015	1015	21 (14) For taxable years beginning after December 31, 2017, and
1016	1016	22 before January 1, 2021, add an amount equal to the excess
1017	1017	23 business loss of the taxpayer as defined in Section 461(l)(3) of the
1018	1018	24 Internal Revenue Code. In addition:
1019	1019	25 (A) If a taxpayer has an excess business loss under this
1020	1020	26 subdivision and also has modifications under subdivisions (3)
1021	1021	27 and (5) for property placed in service during the taxable year,
1022	1022	28 the taxpayer shall treat a portion of the taxable year
1023	1023	29 modifications for that property as occurring in the taxable year
1024	1024	30 the property is placed in service and a portion of the
1025	1025	31 modifications as occurring in the immediately following
1026	1026	32 taxable year.
1027	1027	33 (B) The portion of the modifications under subdivisions (3)
1028	1028	34 and (5) for property placed in service during the taxable year
1029	1029	35 treated as occurring in the taxable year in which the property
1030	1030	36 is placed in service equals:
1031	1031	37 (i) the modification for the property otherwise determined
1032	1032	38 under this section; minus
1033	1033	39 (ii) the excess business loss disallowed under this
1034	1034	40 subdivision;
1035	1035	41 but not less than zero (0).
1036	1036	42 (C) The portion of the modifications under subdivisions (3)
1037	1037	2025 IN 1550—LS 6324/DI 134 25
1038	1038	1 and (5) for property placed in service during the taxable year
1039	1039	2 treated as occurring in the taxable year immediately following
1040	1040	3 the taxable year in which the property is placed in service
1041	1041	4 equals the modification for the property otherwise determined
1042	1042	5 under this section minus the amount in clause (B).
1043	1043	6 (D) Any reallocation of modifications between taxable years
1044	1044	7 under clauses (B) and (C) shall be first allocated to the
1045	1045	8 modification under subdivision (3), then to the modification
1046	1046	9 under subdivision (5).
1047	1047	10 (15) For taxable years ending after March 12, 2020, subtract an
1048	1048	11 amount equal to the deduction disallowed pursuant to:
1049	1049	12 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1050	1050	13 as modified by Sections 206 and 207 of the Taxpayer Certainty
1051	1051	14 and Disaster Relief Tax Act (Division EE of Public Law
1052	1052	15 116-260); and
1053	1053	16 (B) Section 3134(e) of the Internal Revenue Code.
1054	1054	17 (16) For taxable years beginning after December 31, 2022,
1055	1055	18 subtract an amount equal to the deduction disallowed under
1056	1056	19 Section 280C(h) of the Internal Revenue Code.
1057	1057	20 (17) Except as provided in subsection (c), for taxable years
1058	1058	21 beginning after December 31, 2022, add an amount equal to any
1059	1059	22 deduction or deductions allowed or allowable in determining
1060	1060	23 taxable income under Section 641(b) of the Internal Revenue
1061	1061	24 Code for taxes based on or measured by income and levied at the
1062	1062	25 state level by any state of the United States.
1063	1063	26 (18) For taxable years beginning after December 31, 2021, add or
1064	1064	27 subtract amounts related to specified research or experimental
1065	1065	28 procedures as required under IC 6-3-2-29.
1066	1066	29 (19) Add or subtract any other amounts the taxpayer is:
1067	1067	30 (A) required to add or subtract; or
1068	1068	31 (B) entitled to deduct;
1069	1069	32 under IC 6-3-2.
1070	1070	33 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
1071	1071	34 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
1072	1072	35 "adjusted gross income" of a pass through entity means the items of
1073	1073	36 ordinary income and loss in the case of a partnership or a corporation
1074	1074	37 described in IC 6-3-2-2.8(2), or distributions subject to tax for state and
1075	1075	38 federal income tax for beneficiaries in the case of a trust or estate,
1076	1076	39 whichever is applicable, for the taxable year modified as follows:
1077	1077	40 (1) Add the separately stated items of income and gains, or the
1078	1078	41 equivalent items that must be considered separately by a
1079	1079	42 beneficiary, as determined for federal purposes, attributed to the
1080	1080	2025 IN 1550—LS 6324/DI 134 26
1081	1081	1 partners, shareholders, or beneficiaries of the pass through entity,
1082	1082	2 determined without regard to whether the owner is permitted to
1083	1083	3 exclude all or part of the income or gain or deduct any amount
1084	1084	4 against the income or gain.
1085	1085	5 (2) Subtract the separately stated items of deductions or losses or
1086	1086	6 items that must be considered separately by beneficiaries, as
1087	1087	7 determined for federal purposes, attributed to partners,
1088	1088	8 shareholders, or beneficiaries of the pass through entity and that
1089	1089	9 are deductible by an individual in determining adjusted gross
1090	1090	10 income as defined under Section 62 of the Internal Revenue
1091	1091	11 Code:
1092	1092	12 (A) limited as if the partners, shareholders, and beneficiaries
1093	1093	13 deducted the maximum allowable loss or deduction allowable
1094	1094	14 for the taxable year prior to any amount deductible from the
1095	1095	15 pass through entity; but
1096	1096	16 (B) not considering any disallowance of deductions resulting
1097	1097	17 from federal basis limitations for the partner, shareholder, or
1098	1098	18 beneficiary.
1099	1099	19 (3) Add or subtract any modifications to adjusted gross income
1100	1100	20 that would be required both for individuals under subsection (a)
1101	1101	21 and corporations under subsection (b) to the extent otherwise
1102	1102	22 provided in those subsections, including amounts that are
1103	1103	23 allowable for which such modifications are necessary to account
1104	1104	24 for separately stated items in subdivision (1) or (2).
1105	1105	25 (h) Subsections (a)(36), (b)(22), (d)(20), (e)(20), or (f)(19) may not
1106	1106	26 be construed to require an add back or allow a deduction or exemption
1107	1107	27 more than once for a particular add back, deduction, or exemption.
1108	1108	28 (i) For taxable years beginning after December 25, 2016, if:
1109	1109	29 (1) a taxpayer is a shareholder, either directly or indirectly, in a
1110	1110	30 corporation that is an E&P deficit foreign corporation as defined
1111	1111	31 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
1112	1112	32 earnings and profit deficit, or a portion of the earnings and profit
1113	1113	33 deficit, of the E&P deficit foreign corporation is permitted to
1114	1114	34 reduce the federal adjusted gross income or federal taxable
1115	1115	35 income of the taxpayer, the deficit, or the portion of the deficit,
1116	1116	36 shall also reduce the amount taxable under this section to the
1117	1117	37 extent permitted under the Internal Revenue Code, however, in no
1118	1118	38 case shall this permit a reduction in the amount taxable under
1119	1119	39 Section 965 of the Internal Revenue Code for purposes of this
1120	1120	40 section to be less than zero (0); and
1121	1121	41 (2) the Internal Revenue Service issues guidance that such an
1122	1122	42 income or deduction is not reported directly on a federal tax
1123	1123	2025 IN 1550—LS 6324/DI 134 27
1124	1124	1 return or is to be reported in a manner different than specified in
1125	1125	2 this section, this section shall be construed as if federal adjusted
1126	1126	3 gross income or federal taxable income included the income or
1127	1127	4 deduction.
1128	1128	5 (j) If a partner is required to include an item of income, a deduction,
1129	1129	6 or another tax attribute in the partner's adjusted gross income tax return
1130	1130	7 pursuant to IC 6-3-4.5, such item shall be considered to be includible
1131	1131	8 in the partner's federal adjusted gross income or federal taxable
1132	1132	9 income, regardless of whether such item is actually required to be
1133	1133	10 reported by the partner for federal income tax purposes. For purposes
1134	1134	11 of this subsection:
1135	1135	12 (1) items for which a valid election is made under IC 6-3-4.5-6,
1136	1136	13 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
1137	1137	14 in the partner's adjusted gross income or taxable income; and
1138	1138	15 (2) items for which the partnership did not make an election under
1139	1139	16 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
1140	1140	17 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
1141	1141	18 shall be included in the partner's adjusted gross income or taxable
1142	1142	19 income.
1143	1143	20 (k) The following apply for purposes of this section:
1144	1144	21 (1) For purposes of subsections (b) and (f), if a taxpayer is an
1145	1145	22 organization that has more than one (1) trade or business subject
1146	1146	23 to the provisions of Section 512(a)(6) of the Internal Revenue
1147	1147	24 Code, the following rules apply for taxable years beginning after
1148	1148	25 December 31, 2017:
1149	1149	26 (A) If a trade or business has federal unrelated business
1150	1150	27 taxable income of zero (0) or greater for a taxable year, the
1151	1151	28 unrelated business taxable income and modifications required
1152	1152	29 under this section shall be combined in determining the
1153	1153	30 adjusted gross income of the taxpayer and shall not be treated
1154	1154	31 as being subject to the provisions of Section 512(a)(6) of the
1155	1155	32 Internal Revenue Code if one (1) or more trades or businesses
1156	1156	33 have negative Indiana adjusted gross income after
1157	1157	34 adjustments.
1158	1158	35 (B) If a trade or business has federal unrelated business
1159	1159	36 taxable income of less than zero (0) for a taxable year, the
1160	1160	37 taxpayer shall apply the modifications under this section for
1161	1161	38 the taxable year against the net operating loss in the manner
1162	1162	39 required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for separately
1163	1163	40 stated net operating losses. However, if the application of
1164	1164	41 modifications required under IC 6-3-2-2.5 or IC 6-3-2-2.6
1165	1165	42 results in the separately stated net operating loss for the trade
1166	1166	2025 IN 1550—LS 6324/DI 134 28
1167	1167	1 or business being zero (0), the modifications that increase
1168	1168	2 adjusted gross income under this section and remain after the
1169	1169	3 calculations to adjust the separately stated net operating loss
1170	1170	4 to zero (0) that result from the trade or business must be
1171	1171	5 treated as modifications to which clause (A) applies for the
1172	1172	6 taxable year.
1173	1173	7 (C) If a trade or business otherwise described in Section
1174	1174	8 512(a)(6) of the Internal Revenue Code incurred a net
1175	1175	9 operating loss for a taxable year beginning after December 31,
1176	1176	10 2017, and before January 1, 2021, and the net operating loss
1177	1177	11 was carried back for federal tax purposes:
1178	1178	12 (i) if the loss was carried back to a taxable year for which
1179	1179	13 the requirements under Section 512(a)(6) of the Internal
1180	1180	14 Revenue Code did not apply, the portion of the loss and
1181	1181	15 modifications attributable to the loss shall be treated as
1182	1182	16 adjusted gross income of the taxpayer for the first taxable
1183	1183	17 year of the taxpayer beginning after December 31, 2022, and
1184	1184	18 shall be treated as part of the adjusted gross income
1185	1185	19 attributable to clause (A), unless, and to the extent, the loss
1186	1186	20 and modifications were applied to adjusted gross income for
1187	1187	21 a previous taxable year, as determined under this article; and
1188	1188	22 (ii) if the loss was carried back to a taxable year for which
1189	1189	23 the requirements under Section 512(a)(6) of the Internal
1190	1190	24 Revenue Code applied, the portion of the loss and
1191	1191	25 modifications attributable to the loss shall be treated as
1192	1192	26 adjusted gross income of the taxpayer for the first taxable
1193	1193	27 year of the taxpayer beginning after December 31, 2022, and
1194	1194	28 for purposes of this clause, the inclusion of losses and
1195	1195	29 modifications shall be in the same manner as provided in
1196	1196	30 clause (B), unless, and to the extent, the loss and
1197	1197	31 modifications were applied to adjusted gross income for a
1198	1198	32 previous taxable year, as determined under this article.
1199	1199	33 (D) Notwithstanding any provision in this subdivision, if a
1200	1200	34 taxpayer computed its adjusted gross income for a taxable year
1201	1201	35 beginning before January 1, 2023, based on a reasonable
1202	1202	36 interpretation of this article, the taxpayer shall be permitted to
1203	1203	37 compute its adjusted gross income for those taxable years
1204	1204	38 based on that interpretation. However, a taxpayer must
1205	1205	39 continue to report any tax attributes for taxable years
1206	1206	40 beginning after December 31, 2022, in a manner consistent
1207	1207	41 with its previous interpretation.
1208	1208	42 (2) In the case of a corporation, other than a captive real estate
1209	1209	2025 IN 1550—LS 6324/DI 134 29
1210	1210	1 investment trust, for which the adjusted gross income under this
1211	1211	2 article is determined after a deduction for dividends paid under
1212	1212	3 the Internal Revenue Code, the modifications required under this
1213	1213	4 section shall be applied in ratio to the corporation's taxable
1214	1214	5 income (as defined in Section 63 of the Internal Revenue Code)
1215	1215	6 after deductions for dividends paid under the Internal Revenue
1216	1216	7 Code compared to the corporation's taxable income (as defined in
1217	1217	8 Section 63 of the Internal Revenue Code) before the deduction for
1218	1218	9 dividends paid under the Internal Revenue Code.
1219	1219	10 (3) In the case of a trust or estate, the trust or estate is required to
1220	1220	11 include only the portion of the modifications not passed through
1221	1221	12 to beneficiaries.
1222	1222	13 (4) In the case of a taxpayer for which modifications are required
1223	1223	14 to be applied against a separately stated net operating loss under
1224	1224	15 IC 6-3-2-2.5 or IC 6-3-2-2.6, the modifications required under this
1225	1225	16 section must be adjusted to reflect the required application of the
1226	1226	17 modifications against a separately stated net operating loss, in
1227	1227	18 order to avoid the application of a particular modification
1228	1228	19 multiple times.
1229	1229	20 SECTION 2. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
1230	1230	21 (a) IC 6-3-1-3.5, as amended by this act, applies to taxable years
1231	1231	22 beginning after December 31, 2024.
1232	1232	23 (b) This SECTION expires January 1, 2028.
1233	1233	24 SECTION 3. An emergency is declared for this act.
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