Accelerated depreciation.
If enacted, SB0357 would bring significant changes to the Indiana tax landscape by introducing revised parameters for how individuals and corporations calculate their adjusted gross income. The bill details deductions for wagering taxes, specifying a decreasing percentage of permissible deductions over several taxable years, and ultimately phasing out the add-back requirement by 2025. This shift could result in increased tax revenue for the state, altering financial planning both for individuals and businesses significantly affected by wagering activities.
Senate Bill 0357 aims to amend the Indiana Tax Code regarding regulations on accelerated depreciation and the handling of wagering taxes. Specifically, the bill introduces a series of adjustments to the computation of adjusted gross income for various taxable years, impacting how taxpayers handle deductions related to wagering taxes. This legislation seeks to align Indiana's tax protocols with modifications from the Internal Revenue Code, focusing primarily on ensuring that taxable income calculations reflect these changes appropriately.
Notably, there are points of contention surrounding the bill regarding its potential impact on specific economic sectors. Critics may argue that tightening the treatment of wagering deductions might disincentivize businesses that engage in wagering activities or that the increased complexity in tax calculations could disproportionately affect smaller businesses compared to larger corporations with more robust financial resources. Proponents, however, advocate that these changes will lead to a more equitable tax system, enhancing compliance while reducing opportunities for tax avoidance.