Indiana 2025 Regular Session

Indiana Senate Bill SB0453 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ES0453.2
2		-	Reprinted
3		-	April 8, 2025
	1	+	ES0453.1
	2	+	April 3, 2025
4	3		ENGROSSED
5	4		SENATE BILL No. 453
6	5		_____
7		-	DIGEST OF SB 453 (Updated April 7, 2025 5:11 pm - DI ~~134~~)
	6	+	DIGEST OF SB 453 (Updated April 2, 2025 4:58 pm - DI 125)
8	7		Citations Affected: IC 6-1.1; IC 6-2.5; IC 6-3; IC 6-3.1; IC 6-3.6;
9	8		IC 6-5.5; IC 6-7; IC 6-8.1; IC 8-2.1; IC 9-17; IC 9-18.1; IC 12-15;
10		-	IC 35-52; IC 36-8; noncode.
	9	+	IC 16-41; IC 35-52; IC 36-8; noncode.
11	10		Synopsis: Various tax matters. Amends estimated quarterly tax
12	11		payment provisions. Restructures tax collection requirements for
13	12		kerosene to eliminate specialized tax filing. Streamlines the filing
14	13		requirements for gasoline use tax to eliminate multiple filing
15	14		requirements. Specifies the liability and remittance requirements for
16	15		the gross retail tax, gasoline use tax, and other listed taxes in certain
17	16		circumstances. Amends provisions that apply to passenger and
18	17		household goods carriers. Amends the college savings tax credit.
19		-	Replaces the term "college choice 529 education savings plan" with
20		-	"Indiana529 plan". Expands the physician practice ownership tax credit
21		-	(tax credit) against state tax liability to practicing physicians (instead
22	18		(Continued next page)
23	19		Effective: Upon passage; January 1, 2012 (retroactive); January 1,
24	20		2019 (retroactive); July 1, 2024 (retroactive); January 1, 2025
25	21		(retroactive); July 1, 2025; January 1, 2026.
26	22		Holdman, Baldwin,
27	23		Randolph Lonnie M
28	24		(HOUSE SPONSORS — SNOW, JORDAN, THOMPSON, PORTER)
29	25		January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
30	26		February 11, 2025, amended, reported favorably — Do Pass.
31	27		February 13, 2025, read second time, ordered engrossed. Engrossed.
32	28		February 20, 2025, read third time, passed. Yeas 49, nays 0.
33	29		HOUSE ACTION
34	30		March 3, 2025, read first time and referred to Committee on Ways and Means.
35	31		April 3, 2025, amended, reported — Do Pass.
36		-	April 7, 2025, read second time, amended, ordered engrossed.
37	32		ES 453—LS 7499/DI 120 Digest Continued
	33	+	Replaces the term "college choice 529 education savings plan" with
	34	+	"Indiana529 plan". Expands the physician practice ownership tax credit
	35	+	(tax credit) against state tax liability to practicing physicians (instead
38	36		of only primary care physicians) who have an ownership interest in a
39	37		physician practice and meet other eligibility criteria. Provides that the
40	38		total amount of tax credits awarded in a state fiscal year may not
41	39		exceed $10,000,000. Makes a clarifying change to the closed system
42	40		cartridge tax. Extends the renewal period from one year to two years for
43	41		businesses licensed to collect the electronic cigarettes tax, closed
44	42		systems cartridge tax, and other tobacco products tax. Specifies that the
45	43		fiscal officer of an entity that has adopted an innkeeper's tax, a food and
46	44		beverage tax, or an admissions tax must enter into an agreement with
47	45		the department of state revenue (department) before the department
48	46		provides certain information to the fiscal officer as required under
49	47		current law. Specifies when certain tax information may be disclosed
50	48		by the department. Provides for the transfer of certain funds from the
51	49		bureau of motor vehicles commission fund to the motor carrier
52	50		regulation fund. Makes a technical correction to the pass through entity
53	51		tax. Amends provisions in the assessed value deduction for individuals
54	52		who are blind or disabled. Provides certain sourcing rules for the
55	53		adjusted gross income of an investment partnership. Defines
56	54		"investment partnership". Strikes a provision in the pass through entity
57	55		tax relating to the pass through or assignment of other tax credits to an
58	56		electing entity. Specifies that an electing entity or pass through entity
59	57		shall be permitted to claim a credit for taxes withheld or paid on the
60	58		entity's behalf. Adds provisions allowing an electing entity to make
61	59		elections to claim certain state tax liability credits and sets forth
62	60		requirements that apply to those elections. Increases the employee
63	61		threshold for purposes of eligibility for the health reimbursement
64	62		arrangement income tax credit. Provides that a qualified taxpayer may
65	63		not claim a credit for a health reimbursement arrangement established
66	64		in a taxable year beginning before January 1, 2024. Provides that a
67	65		person who commits a violation involving a consumer transaction
68	66		entailing the transportation of passengers or household goods commits
69	67		a deceptive act that is actionable by the attorney general and is subject
70	68		to certain remedies and penalties. Specifies remittance procedures for
71	69		the gasoline use tax. Specifies recapture procedures for certain reduced
72	70		estimated tax payments. Provides that if the county council of Fountain
73	71		County (county council) determines that the county jail revenue fund
74	72		(jail fund) contains excess reserves, the county council may, before
75	73		January 1, 2026, adopt a resolution to make a one time transfer from
76	74		the jail fund to the county general fund to be used only for emergency
77	75		management services within the county. Increases the amount of
78	76		federal civil service annuity benefits that an individual or the
79	77		individual's surviving spouse may deduct from adjusted gross income
80	78		tax. Requires the office of the secretary of family and social services to
81	79		apply to the United States Department of Health and Human Services
82	80		for an amendment to each home and community based services
83	81		Medicaid waiver to, when determining eligibility for an individual and
84	82		the individual's spouse who have both applied for a home and
85	83		community based services Medicaid waiver, use an asset limit
86	84		threshold that equals the asset limit for a single individual multiplied
87	85		by two. Reestablishes the deduction for aircraft entitling a taxpayer to
88	86		a deduction from the assessed value of abatement property in each year
89	87		in which the abatement property is subject to taxation for ad valorem
90	88		property taxes. Allows a taxpayer to file an amended return claiming
91	89		the deduction for taxable years during which the chapter previously
92	90		providing the deduction was repealed. Provides a sales tax exemption
93	91		for sales by agricultural commodity trade associations made at the state
94	92		fair. Allows an individual to subtract certain investment interest
95	93		payments in the calculation of the individual's Indiana adjusted gross
96	94		income. Requires local units to make semiannual fire service reports to
	95	+	(Continued next page)
	96	+	ES 453—LS 7499/DI 120ES 453—LS 7499/DI 120 Digest Continued
97	97		the state fire marshal which, in turn, is required to submit the data
98		-	reported to the legislative council. Makes corresponding changes.
99		-	ES 453—LS 7499/DI 120ES 453—LS 7499/DI 120 Reprinted
100		-	April 8, 2025
	98	+	reported to the legislative council. Provides that any advertising or
	99	+	marketing of heated tobacco products, regardless of the format of the
	100	+	advertising or marketing, must include a message stating that: (1)
	101	+	heated tobacco products contain nicotine; and (2) the ingestion of
	102	+	nicotine is harmful to humans. Makes corresponding changes.
	103	+	ES 453—LS 7499/DI 120ES 453—LS 7499/DI 120 April 3, 2025
101	104		First Regular Session of the 124th General Assembly (2025)
102	105		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
103	106		Constitution) is being amended, the text of the existing provision will appear in this style type,
104	107		additions will appear in this style type, and deletions will appear in this style type.
105	108		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
106	109		provision adopted), the text of the new provision will appear in this style type. Also, the
107	110		word NEW will appear in that style type in the introductory clause of each SECTION that adds
108	111		a new provision to the Indiana Code or the Indiana Constitution.
109	112		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
110	113		between statutes enacted by the 2024 Regular Session of the General Assembly.
111	114		ENGROSSED
112	115		SENATE BILL No. 453
113	116		A BILL FOR AN ACT to amend the Indiana Code concerning
114	117		taxation.
115	118		Be it enacted by the General Assembly of the State of Indiana:
116	119		1 SECTION 1. IC 6-1.1-12-11, AS AMENDED BY P.L.148-2015,
117	120		2 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
118	121		3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) Except as
119	122		4 provided in section 40.5 of this chapter, an individual may have the
120	123		5 sum of twelve thousand four hundred eighty dollars ($12,480) deducted
121	124		6 from the assessed value of real property, mobile home not assessed as
122	125		7 real property, or manufactured home not assessed as real property that
123	126		8 the individual owns, or that the individual is buying under a contract
124	127		9 that provides that the individual is to pay property taxes on the real
125	128		10 property, mobile home, or manufactured home, if the contract or a
126	129		11 memorandum of the contract is recorded in the county recorder's office,
127	130		12 and if:
128	131		13 (1) the individual is blind or the individual has a disability;
129	132		14 (2) the real property, mobile home, or manufactured home is
130	133		15 principally used and occupied by the individual as the individual's
131	134		ES 453—LS 7499/DI 120 2
132	135		1 residence;
133	136		2 (3) the individual's taxable adjusted gross income (as defined in
134	137		3 Section 62 of the Internal Revenue Code) for the calendar year
135	138		4 preceding the year in which the deduction is claimed did not
136	139		5 exceed seventeen thousand dollars ($17,000); and
137	140		6 (4) the individual:
138	141		7 (A) owns the real property, mobile home, or manufactured
139	142		8 home; or
140	143		9 (B) is buying the real property, mobile home, or manufactured
141	144		10 home under contract;
142	145		11 on the date the statement required by section 12 of this chapter is
143	146		12 filed.
144	147		13 (b) For purposes of this section, taxable gross income does not
145	148		14 include income which is not taxed under the federal income tax laws.
146	149		15 (c) (b) For purposes of this section, "blind" has the same meaning
147	150		16 as the definition contained in IC 12-7-2-21(1).
148	151		17 (d) (c) For purposes of this section, "individual with a disability"
149	152		18 means a person unable to engage in any substantial gainful activity by
150	153		19 reason of a medically determinable physical or mental impairment
151	154		20 which:
152	155		21 (1) can be expected to result in death; or
153	156		22 (2) has lasted or can be expected to last for a continuous period of
154	157		23 not less than twelve (12) months.
155	158		24 (e) (d) An individual with a disability filing a claim under this
156	159		25 section shall submit proof of the disability. Proof that a claimant is
157	160		26 eligible to receive disability benefits under the federal Social Security
158	161		27 Act (42 U.S.C. 301 et seq.) shall constitute proof of disability for
159	162		28 purposes of this section.
160	163		29 (f) (e) An individual with a disability not covered under the federal
161	164		30 Social Security Act shall be examined by a physician and the
162	165		31 individual's status as an individual with a disability determined by
163	166		32 using the same standards as used by the Social Security Administration.
164	167		33 The costs of this examination shall be borne by the claimant.
165	168		34 (g) (f) An individual who has sold real property, a mobile home not
166	169		35 assessed as real property, or a manufactured home not assessed as real
167	170		36 property to another person under a contract that provides that the
168	171		37 contract buyer is to pay the property taxes on the real property, mobile
169	172		38 home, or manufactured home may not claim the deduction provided
170	173		39 under this section against that real property, mobile home, or
171	174		40 manufactured home.
172	175		41 SECTION 2. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
173	176		42 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
174	177		ES 453—LS 7499/DI 120 3
175	178		1 JANUARY 1, 2019 (RETROACTIVE)]:
176	179		2 Chapter 51. Deduction for Aircraft
177	180		3 Sec. 1. This chapter applies only to the following:
178	181		4 (1) Aircraft that:
179	182		5 (A) have a seating capacity of not more than ninety (90)
180	183		6 passengers;
181	184		7 (B) are used in the air transportation of passengers or
182	185		8 passengers and property; and
183	186		9 (C) are owned or operated by a person that is:
184	187		10 (i) an air carrier certificated under Federal Air
185	188		11 Regulation Part 121; or
186	189		12 (ii) a scheduled air taxi operator certified under Federal
187	190		13 Air Regulation Part 135.
188	191		14 (2) Aircraft that:
189	192		15 (A) are used to transport only property, regardless of
190	193		16 whether the aircraft is operated as a common carrier for
191	194		17 compensation; and
192	195		18 (B) are owned or operated by a person that is:
193	196		19 (i) an air carrier certificated under Federal Air
194	197		20 Regulation Part 121; or
195	198		21 (ii) a scheduled air taxi operator certified under Federal
196	199		22 Air Regulation Part 135.
197	200		23 Sec. 2. As used in this chapter, "abatement property" refers to
198	201		24 aircraft described in section 1 of this chapter.
199	202		25 Sec. 3. As used in this chapter, "aircraft" has the meaning set
200	203		26 forth in 49 U.S.C. 40102.
201	204		27 Sec. 4. As used in this chapter, "air transportation" means
202	205		28 transportation of passengers or property by aircraft as a common
203	206		29 carrier for compensation.
204	207		30 Sec. 5. As used in this chapter, "business entity" refers to a
205	208		31 corporation (as defined in IC 6-3-1-10) or partnership (as defined
206	209		32 in IC 6-3-1-19).
207	210		33 Sec. 6. As used in this chapter, "Indiana corporate
208	211		34 headquarters" means a physical presence in Indiana of a domestic
209	212		35 business entity that results in Indiana being the regular or
210	213		36 principal place of business of its chief executive, operating, and
211	214		37 financial officers.
212	215		38 Sec. 7. As used in this chapter, "subsidiary" means a business
213	216		39 entity in which another business entity with an Indiana corporate
214	217		40 headquarters has at least an eighty percent (80%) ownership
215	218		41 interest.
216	219		42 Sec. 8. As used in this chapter, "taxpayer" means a business
217	220		ES 453—LS 7499/DI 120 4
218	221		1 entity that:
219	222		2 (1) has an Indiana corporate headquarters; or
220	223		3 (2) is a subsidiary of a business entity with an Indiana
221	224		4 corporate headquarters;
222	225		5 and that is liable under IC 6-1.1-2-4, as applied under IC 6-1.1-3
223	226		6 or IC 6-1.1-8, for ad valorem property taxes on abatement
224	227		7 property.
225	228		8 Sec. 9. A taxpayer is entitled to a deduction from the assessed
226	229		9 value of abatement property in each year in which the abatement
227	230		10 property is subject to taxation for ad valorem property taxes.
228	231		11 Sec. 10. The amount of the deduction is equal to one hundred
229	232		12 percent (100%) of the assessed value of the abatement property.
230	233		13 Sec. 11. The deduction includes ad valorem property taxes
231	234		14 calculated using aircraft ground times.
232	235		15 Sec. 12. To qualify for the deduction, the taxpayer must claim
233	236		16 the deduction, in the manner prescribed by the department of local
234	237		17 government finance, on the taxpayer's personal property tax
235	238		18 return filed under IC 6-1.1-3 or IC 6-1.1-8 (or an amended return
236	239		19 filed within the time allowed under this article) for the abated
237	240		20 property to which the deduction applies.
238	241		21 Sec. 13. (a) Notwithstanding any other law, a taxpayer may file
239	242		22 an amended return claiming the deduction under this chapter for
240	243		23 taxable years 2019 through 2024 during which the chapter
241	244		24 previously providing the deduction under this chapter was
242	245		25 repealed.
243	246		26 (b) If a taxpayer files an amended return under this section, a
244	247		27 county auditor may carry a deduction to which the taxpayer is
245	248		28 entitled forward to the immediately succeeding year or years, as
246	249		29 applicable, and use the deduction against the taxpayer's property
247	250		30 taxes on personal property.
248	251		31 (c) The deduction is reduced each time the deduction amount is
249	252		32 applied to the taxpayer's property taxes on personal property in
250	253		33 succeeding years by the amount applied.
251	254		34 SECTION 3. IC 6-2.5-1-5, AS AMENDED BY P.L.199-2021,
252	255		35 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
253	256		36 JANUARY 1, 2026]: Sec. 5. (a) Except as provided in subsection (b),
254	257		37 "gross retail income" means the total amount of consideration,
255	258		38 including cash, credit, property, and services, for which tangible
256	259		39 personal property is sold, leased, or rented, valued in money, whether
257	260		40 received in money or otherwise, without any deduction for:
258	261		41 (1) the seller's cost of the property sold;
259	262		42 (2) the cost of materials used, labor or service cost, interest,
260	263		ES 453—LS 7499/DI 120 5
261	264		1 losses, all costs of transportation to the seller, all taxes imposed
262	265		2 on the seller, and any other expense of the seller;
263	266		3 (3) charges by the seller for any services necessary to complete
264	267		4 the sale, other than delivery and installation charges;
265	268		5 (4) delivery charges; or
266	269		6 (5) consideration received by the seller from a third party if:
267	270		7 (A) the seller actually receives consideration from a party
268	271		8 other than the purchaser and the consideration is directly
269	272		9 related to a price reduction or discount on the sale;
270	273		10 (B) the seller has an obligation to pass the price reduction or
271	274		11 discount through to the purchaser;
272	275		12 (C) the amount of the consideration attributable to the sale is
273	276		13 fixed and determinable by the seller at the time of the sale of
274	277		14 the item to the purchaser; and
275	278		15 (D) the price reduction or discount is identified as a third party
276	279		16 price reduction or discount on the invoice received by the
277	280		17 purchaser or on a coupon, certificate, or other documentation
278	281		18 presented by the purchaser.
279	282		19 For purposes of subdivision (4), delivery charges are charges by the
280	283		20 seller for preparation and delivery of the property to a location
281	284		21 designated by the purchaser of property, including but not limited to
282	285		22 transportation, shipping, postage charges that are not separately stated
283	286		23 on the invoice, bill of sale, or similar document, handling, crating, and
284	287		24 packing. Delivery charges do not include postage charges that are
285	288		25 separately stated on the invoice, bill of sale, or similar document.
286	289		26 (b) "Gross retail income" does not include that part of the gross
287	290		27 receipts attributable to:
288	291		28 (1) the value of any tangible personal property received in a like
289	292		29 kind exchange in the retail transaction, if the value of the property
290	293		30 given in exchange is separately stated on the invoice, bill of sale,
291	294		31 or similar document given to the purchaser;
292	295		32 (2) the receipts received in a retail transaction which constitute
293	296		33 interest, finance charges, or insurance premiums on either a
294	297		34 promissory note or an installment sales contract;
295	298		35 (3) discounts, including cash, terms, or coupons that are not
296	299		36 reimbursed by a third party that are allowed by a seller and taken
297	300		37 by a purchaser on a sale;
298	301		38 (4) interest, financing, and carrying charges from credit extended
299	302		39 on the sale of personal property if the amount is separately stated
300	303		40 on the invoice, bill of sale, or similar document given to the
301	304		41 purchaser;
302	305		42 (5) any taxes legally imposed directly on the consumer that are
303	306		ES 453—LS 7499/DI 120 6
304	307		1 separately stated on the invoice, bill of sale, or similar document
305	308		2 given to the purchaser, including an excise tax imposed under
306	309		3 IC 6-6-15;
307	310		4 (6) installation charges that are separately stated on the invoice,
308	311		5 bill of sale, or similar document given to the purchaser;
309	312		6 (7) telecommunications nonrecurring charges;
310	313		7 (8) postage charges that are separately stated on the invoice, bill
311	314		8 of sale, or similar document; or
312	315		9 (9) charges for serving or delivering food and food ingredients
313	316		10 furnished, prepared, or served for consumption at a location, or on
314	317		11 equipment, provided by the retail merchant, to the extent that the
315	318		12 charges for the serving or delivery are stated separately from the
316	319		13 price of the food and food ingredients when the purchaser pays
317	320		14 the charges.
318	321		15 (c) Notwithstanding subsection (b)(5):
319	322		16 (1) in the case of retail sales of special fuel (as defined in
320	323		17 IC 6-6-2.5-22) or kerosene (as defined in IC 16-44-2-2), the
321	324		18 gross retail income is the total sales price of the special fuel or
322	325		19 kerosene minus the part of that price attributable to tax imposed
323	326		20 under IC 6-6-2.5 (in the case of special fuel) or Section 4041 or
324	327		21 Section 4081 of the Internal Revenue Code (in the case of either
325	328		22 special fuel or kerosene);
326	329		23 (2) in the case of retail sales of cigarettes (as defined in
327	330		24 IC 6-7-1-2), the gross retail income is the total sales price of the
328	331		25 cigarettes including the tax imposed under IC 6-7-1; and
329	332		26 (3) in the case of retail sales of consumable material (as defined
330	333		27 in IC 6-7-4-2), vapor products (as defined in IC 6-7-4-8), and
331	334		28 closed system cartridges (as defined in IC 6-7-2-0.5) under the
332	335		29 closed system cartridge tax, the gross retail income received from
333	336		30 selling at retail is the total sales price of the consumable material
334	337		31 (as defined in IC 6-7-4-2), vapor products (as defined in
335	338		32 IC 6-7-4-8), and closed system cartridges (as defined in
336	339		33 IC 6-7-2-0.5) including the tax imposed under IC 6-7-4 and
337	340		34 IC 6-7-2-7.5.
338	341		35 (d) Gross retail income is only taxable under this article to the
339	342		36 extent that the income represents:
340	343		37 (1) the price of the property transferred, without the rendition of
341	344		38 any services; and
342	345		39 (2) except as provided in subsection (b), any bona fide charges
343	346		40 which are made for preparation, fabrication, alteration,
344	347		41 modification, finishing, completion, delivery, or other service
345	348		42 performed in respect to the property transferred before its transfer
346	349		ES 453—LS 7499/DI 120 7
347	350		1 and which are separately stated on the transferor's records. For
348	351		2 purposes of this subdivision, a transfer is considered to have
349	352		3 occurred after the delivery of the property to the purchaser.
350	353		4 (e) A public utility's or a power subsidiary's gross retail income
351	354		5 includes all gross retail income received by the public utility or power
352	355		6 subsidiary, including any minimum charge, flat charge, membership
353	356		7 fee, or any other form of charge or billing.
354	357		8 SECTION 4. IC 6-2.5-3-11 IS ADDED TO THE INDIANA CODE
355	358		9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
356	359		10 1, 2025]: Sec. 11. If:
357	360		11 (1) a person purchases services or items other than tangible
358	361		12 personal property in a retail transaction subject to tax under
359	362		13 this article;
360	363		14 (2) the person does not remit the full amount of gross retail
361	364		15 tax on the transaction; and
362	365		16 (3) the transaction is not exempt from tax under this article;
363	366		17 the person is liable for the gross retail tax not collected. Any tax
364	367		18 due under this section shall be reported and remitted in the same
365	368		19 manner as prescribed by the department for the use tax under this
366	369		20 chapter.
367	370		21 SECTION 5. IC 6-2.5-3.5-20, AS ADDED BY P.L.227-2013,
368	371		22 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
369	372		23 JANUARY 1, 2026]: Sec. 20. (a) Each refiner or terminal operator and
370	373		24 each qualified distributor that is required to remit gasoline use tax
371	374		25 under this chapter shall, remit the tax due to the department
372	375		26 semimonthly, through the department's online tax filing system,
373	376		27 according to the following schedule:
374	377		28 (1) On or before the tenth day of each month for gasoline sold
375	378		29 after the fifteenth day and before the end of the preceding month.
376	379		30 (2) On or before the twenty-fifth day of each month for gasoline
377	380		31 sold after the end of the preceding month and before the sixteenth
378	381		32 day of the month in which the gasoline was sold.
379	382		33 not later than twenty (20) days after the end of each month:
380	383		34 (1) file an electronic return for that month in a form
381	384		35 prescribed by the department through the department's
382	385		36 online tax filing system; and
383	386		37 (2) remit the tax due to the department for that month.
384	387		38 The department may require the reporting of any information
385	388		39 reasonably necessary to determine the amount of gasoline use tax
386	389		40 due under this chapter.
387	390		41 (b) Before the end of each month, each refiner or terminal operator
388	391		42 and each qualified distributor shall file an electronic report covering
389	392		ES 453—LS 7499/DI 120 8
390	393		1 the taxes owed and the gallons of gasoline sold or shipped during the
391	394		2 preceding month. The report must include the following:
392	395		3 (1) The number of gallons of gasoline sold or shipped during the
393	396		4 preceding month, identifying each purchaser or receiver as
394	397		5 required by the department.
395	398		6 (2) The amount of tax paid by each purchaser or recipient.
396	399		7 (3) Any other information reasonably required by the department,
397	400		8 including statistics to meet federal requirements.
398	401		9 (c) (b) The gasoline use tax collected under this chapter shall be
399	402		10 deposited in the same manner as state gross retail and use taxes are
400	403		11 required to be deposited under IC 6-2.5-10-1.
401	404		12 SECTION 6. IC 6-2.5-3.5-27 IS ADDED TO THE INDIANA
402	405		13 CODE AS A NEW SECTION TO READ AS FOLLOWS
403	406		14 [EFFECTIVE JULY 1, 2025]: Sec. 27. (a) If a person purchases
404	407		15 gasoline that is subject to tax under this chapter and:
405	408		16 (1) claims an exemption from tax under this article; or
406	409		17 (2) otherwise causes the tax under this chapter to not be
407	410		18 remitted to the department;
408	411		19 the person purchasing the gasoline shall be liable for any unpaid
409	412		20 tax that otherwise would be due under this chapter on the gasoline
410	413		21 so purchased. For purposes of this section, gasoline for which tax
411	414		22 was paid but subsequently refunded shall be considered gasoline
412	415		23 for which tax was not remitted to the department.
413	416		24 (b) Any tax due under this section shall be reported and
414	417		25 remitted on forms and in the manner prescribed by the
415	418		26 department.
416	419		27 (c) Any tax due under this section:
417	420		28 (1) shall be imposed at the rate for which the tax under this
418	421		29 chapter otherwise would have been imposed; and
419	422		30 (2) shall be due on the twentieth day of the month
420	423		31 immediately following the month of the purchase of gasoline.
421	424		32 SECTION 7. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
422	425		33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
423	426		34 1, 2025]: Sec. 58. (a) The following definitions apply throughout
424	427		35 this section:
425	428		36 (1) "Agricultural commodity" means:
426	429		37 (A) dairy products, pork products, beef products, poultry
427	430		38 products, and products from other livestock; and
428	431		39 (B) crops;
429	432		40 that are raised and harvested to provide food and food
430	433		41 ingredients. The term includes items described in section
431	434		42 20(c)(1), 20(c)(3), 20(c)(4), 20(c)(5), and 20(c)(6) of this
432	435		ES 453—LS 7499/DI 120 9
433	436		1 chapter.
434	437		2 (2) "Agricultural commodity trade association" means:
435	438		3 (A) an agricultural or horticultural organization exempt
436	439		4 from federal income taxation under Section 501(c)(5) of
437	440		5 the Internal Revenue Code; or
438	441		6 (B) an organization exempt from federal income taxation
439	442		7 under Section 501(c)(6) of the Internal Revenue Code as a
440	443		8 business league for agricultural commodity or
441	444		9 horticultural interests.
442	445		10 (b) Sales of agricultural commodities by an agricultural
443	446		11 commodity trade association are exempt from the state gross retail
444	447		12 tax if:
445	448		13 (1) the transaction is conducted at the state fair; and
446	449		14 (2) the transaction is conducted to make money to carry on
447	450		15 the agricultural commodity trade association's nonprofit
448	451		16 purpose.
449	452		17 (c) To obtain the exemption provided by this section, an
450	453		18 agricultural commodity trade association must:
451	454		19 (1) be registered as a retail merchant under IC 6-2.5-8-1; or
452	455		20 (2) establish that the agricultural commodity trade association
453	456		21 is not required to be registered as a retail merchant under this
454	457		22 article;
455	458		23 at the time of the transaction.
456	459		24 SECTION 8. IC 6-2.5-7-1 IS REPEALED [EFFECTIVE JANUARY
457	460		25 1, 2026]. Sec. 1. (a) The definitions in this section apply throughout
458	461		26 this chapter.
459	462		27 (b) "Kerosene" has the same meaning as the definition contained in
460	463		28 IC 16-44-2-2.
461	464		29 (c) "Special fuel" has the same meaning as the definition contained
462	465		30 in IC 6-6-2.5-22.
463	466		31 (d) "Unit" means the unit of measure, such as a gallon or a liter, by
464	467		32 which special fuel is sold.
465	468		33 (e) "Metered pump" means a stationary pump which is capable of
466	469		34 metering the amount of special fuel dispensed from it and which is
467	470		35 capable of simultaneously calculating and displaying the price of the
468	471		36 special fuel dispensed.
469	472		37 (f) "Indiana special fuel tax" means the tax imposed under
470	473		38 IC 6-6-2.5.
471	474		39 (g) "Federal special fuel tax" means the excise tax imposed under
472	475		40 Section 4041 or Section 4081 of the Internal Revenue Code.
473	476		41 (h) "Price per unit before the addition of state and federal taxes"
474	477		42 means an amount which equals the remainder of:
475	478		ES 453—LS 7499/DI 120 10
476	479		1 (1) the total price per unit; minus
477	480		2 (2) the state gross retail, Indiana special fuel, and federal special
478	481		3 fuel taxes which are part of the total price per unit.
479	482		4 (i) "Total price per unit" means the price per unit at which special
480	483		5 fuel is actually sold, including the state gross retail, Indiana special
481	484		6 fuel, and federal special fuel taxes which are part of the sales price.
482	485		7 SECTION 9. IC 6-2.5-7-3 IS REPEALED [EFFECTIVE JANUARY
483	486		8 1, 2026]. Sec. 3. With respect to the sale of kerosene which is
484	487		9 dispensed from a metered pump, unless the purchaser provides an
485	488		10 exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant
486	489		11 shall collect, for each unit of kerosene sold, state gross retail tax in an
487	490		12 amount equal to the product, rounded to the nearest one-tenth of one
488	491		13 cent ($0.001), of:
489	492		14 (1) the price per unit before the addition of state and federal taxes;
490	493		15 multiplied by
491	494		16 (2) seven percent (7%).
492	495		17 Unless the exemption certificate is provided, the retail merchant shall
493	496		18 collect the state gross retail tax prescribed in this section even if the
494	497		19 transaction is exempt from taxation under IC 6-2.5-5.
495	498		20 SECTION 10. IC 6-3-1-3.5, AS AMENDED BY P.L.9-2024,
496	499		21 SECTION 185, IS AMENDED TO READ AS FOLLOWS
497	500		22 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 3.5. When
498	501		23 used in this article, the term "adjusted gross income" shall mean the
499	502		24 following:
500	503		25 (a) In the case of all individuals, "adjusted gross income" (as
501	504		26 defined in Section 62 of the Internal Revenue Code), modified as
502	505		27 follows:
503	506		28 (1) Subtract income that is exempt from taxation under this article
504	507		29 by the Constitution and statutes of the United States.
505	508		30 (2) Except as provided in subsection (c), add an amount equal to
506	509		31 any deduction or deductions allowed or allowable pursuant to
507	510		32 Section 62 of the Internal Revenue Code for taxes based on or
508	511		33 measured by income and levied at the state level by any state of
509	512		34 the United States.
510	513		35 (3) Subtract one thousand dollars ($1,000), or in the case of a
511	514		36 joint return filed by a husband and wife, subtract for each spouse
512	515		37 one thousand dollars ($1,000).
513	516		38 (4) Subtract one thousand dollars ($1,000) for:
514	517		39 (A) each of the exemptions provided by Section 151(c) of the
515	518		40 Internal Revenue Code (as effective January 1, 2017);
516	519		41 (B) each additional amount allowable under Section 63(f) of
517	520		42 the Internal Revenue Code; and
518	521		ES 453—LS 7499/DI 120 11
519	522		1 (C) the spouse of the taxpayer if a separate return is made by
520	523		2 the taxpayer and if the spouse, for the calendar year in which
521	524		3 the taxable year of the taxpayer begins, has no gross income
522	525		4 and is not the dependent of another taxpayer.
523	526		5 (5) Subtract each of the following:
524	527		6 (A) One thousand five hundred dollars ($1,500) for each of the
525	528		7 exemptions allowed under Section 151(c)(1)(B) of the Internal
526	529		8 Revenue Code (as effective January 1, 2004), except that in
527	530		9 the first taxable year in which a particular exemption is
528	531		10 allowed under Section 151(c)(1)(B) of the Internal Revenue
529	532		11 Code (as effective January 1, 2004), subtract three thousand
530	533		12 dollars ($3,000) for that exemption.
531	534		13 (B) One thousand five hundred dollars ($1,500) for each
532	535		14 exemption allowed under Section 151(c) of the Internal
533	536		15 Revenue Code (as effective January 1, 2017) for an individual:
534	537		16 (i) who is less than nineteen (19) years of age or is a
535	538		17 full-time student who is less than twenty-four (24) years of
536	539		18 age;
537	540		19 (ii) for whom the taxpayer is the legal guardian; and
538	541		20 (iii) for whom the taxpayer does not claim an exemption
539	542		21 under clause (A).
540	543		22 (C) Five hundred dollars ($500) for each additional amount
541	544		23 allowable under Section 63(f)(1) of the Internal Revenue Code
542	545		24 if the federal adjusted gross income of the taxpayer, or the
543	546		25 taxpayer and the taxpayer's spouse in the case of a joint return,
544	547		26 is less than forty thousand dollars ($40,000). In the case of a
545	548		27 married individual filing a separate return, the qualifying
546	549		28 income amount in this clause is equal to twenty thousand
547	550		29 dollars ($20,000).
548	551		30 (D) Three thousand dollars ($3,000) for each exemption
549	552		31 allowed under Section 151(c) of the Internal Revenue Code (as
550	553		32 effective January 1, 2017) for an individual who is:
551	554		33 (i) an adopted child of the taxpayer; and
552	555		34 (ii) less than nineteen (19) years of age or is a full-time
553	556		35 student who is less than twenty-four (24) years of age.
554	557		36 This amount is in addition to any amount subtracted under
555	558		37 clause (A) or (B).
556	559		38 This amount is in addition to the amount subtracted under
557	560		39 subdivision (4).
558	561		40 (6) Subtract any amounts included in federal adjusted gross
559	562		41 income under Section 111 of the Internal Revenue Code as a
560	563		42 recovery of items previously deducted as an itemized deduction
561	564		ES 453—LS 7499/DI 120 12
562	565		1 from adjusted gross income.
563	566		2 (7) Subtract any amounts included in federal adjusted gross
564	567		3 income under the Internal Revenue Code which amounts were
565	568		4 received by the individual as supplemental railroad retirement
566	569		5 annuities under 45 U.S.C. 231 and which are not deductible under
567	570		6 subdivision (1).
568	571		7 (8) Subtract an amount equal to the amount of federal Social
569	572		8 Security and Railroad Retirement benefits included in a taxpayer's
570	573		9 federal gross income by Section 86 of the Internal Revenue Code.
571	574		10 (9) In the case of a nonresident taxpayer or a resident taxpayer
572	575		11 residing in Indiana for a period of less than the taxpayer's entire
573	576		12 taxable year, the total amount of the deductions allowed pursuant
574	577		13 to subdivisions (3), (4), and (5) shall be reduced to an amount
575	578		14 which bears the same ratio to the total as the taxpayer's income
576	579		15 taxable in Indiana bears to the taxpayer's total income.
577	580		16 (10) In the case of an individual who is a recipient of assistance
578	581		17 under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
579	582		18 subtract an amount equal to that portion of the individual's
580	583		19 adjusted gross income with respect to which the individual is not
581	584		20 allowed under federal law to retain an amount to pay state and
582	585		21 local income taxes.
583	586		22 (11) In the case of an eligible individual, subtract the amount of
584	587		23 a Holocaust victim's settlement payment included in the
585	588		24 individual's federal adjusted gross income.
586	589		25 (12) Subtract an amount equal to the portion of any premiums
587	590		26 paid during the taxable year by the taxpayer for a qualified long
588	591		27 term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
589	592		28 or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
590	593		29 file a joint income tax return or the taxpayer is otherwise entitled
591	594		30 to a deduction under this subdivision for the taxpayer's spouse, or
592	595		31 both.
593	596		32 (13) Subtract an amount equal to the lesser of:
594	597		33 (A) two thousand five hundred dollars ($2,500), or one
595	598		34 thousand two hundred fifty dollars ($1,250) in the case of a
596	599		35 married individual filing a separate return; or
597	600		36 (B) the amount of property taxes that are paid during the
598	601		37 taxable year in Indiana by the individual on the individual's
599	602		38 principal place of residence.
600	603		39 (14) Subtract an amount equal to the amount of a September 11
601	604		40 terrorist attack settlement payment included in the individual's
602	605		41 federal adjusted gross income.
603	606		42 (15) Add or subtract the amount necessary to make the adjusted
604	607		ES 453—LS 7499/DI 120 13
605	608		1 gross income of any taxpayer that owns property for which bonus
606	609		2 depreciation was allowed in the current taxable year or in an
607	610		3 earlier taxable year equal to the amount of adjusted gross income
608	611		4 that would have been computed had an election not been made
609	612		5 under Section 168(k) of the Internal Revenue Code to apply bonus
610	613		6 depreciation to the property in the year that it was placed in
611	614		7 service.
612	615		8 (16) Add an amount equal to any deduction allowed under
613	616		9 Section 172 of the Internal Revenue Code (concerning net
614	617		10 operating losses).
615	618		11 (17) Add or subtract the amount necessary to make the adjusted
616	619		12 gross income of any taxpayer that placed Section 179 property (as
617	620		13 defined in Section 179 of the Internal Revenue Code) in service
618	621		14 in the current taxable year or in an earlier taxable year equal to
619	622		15 the amount of adjusted gross income that would have been
620	623		16 computed had an election for federal income tax purposes not
621	624		17 been made for the year in which the property was placed in
622	625		18 service to take deductions under Section 179 of the Internal
623	626		19 Revenue Code in a total amount exceeding the sum of:
624	627		20 (A) twenty-five thousand dollars ($25,000) to the extent
625	628		21 deductions under Section 179 of the Internal Revenue Code
626	629		22 were not elected as provided in clause (B); and
627	630		23 (B) for taxable years beginning after December 31, 2017, the
628	631		24 deductions elected under Section 179 of the Internal Revenue
629	632		25 Code on property acquired in an exchange if:
630	633		26 (i) the exchange would have been eligible for
631	634		27 nonrecognition of gain or loss under Section 1031 of the
632	635		28 Internal Revenue Code in effect on January 1, 2017;
633	636		29 (ii) the exchange is not eligible for nonrecognition of gain or
634	637		30 loss under Section 1031 of the Internal Revenue Code; and
635	638		31 (iii) the taxpayer made an election to take deductions under
636	639		32 Section 179 of the Internal Revenue Code with regard to the
637	640		33 acquired property in the year that the property was placed
638	641		34 into service.
639	642		35 The amount of deductions allowable for an item of property
640	643		36 under this clause may not exceed the amount of adjusted gross
641	644		37 income realized on the property that would have been deferred
642	645		38 under the Internal Revenue Code in effect on January 1, 2017.
643	646		39 (18) Subtract an amount equal to the amount of the taxpayer's
644	647		40 qualified military income that was not excluded from the
645	648		41 taxpayer's gross income for federal income tax purposes under
646	649		42 Section 112 of the Internal Revenue Code.
647	650		ES 453—LS 7499/DI 120 14
648	651		1 (19) Subtract income that is:
649	652		2 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
650	653		3 derived from patents); and
651	654		4 (B) included in the individual's federal adjusted gross income
652	655		5 under the Internal Revenue Code.
653	656		6 (20) Add an amount equal to any income not included in gross
654	657		7 income as a result of the deferral of income arising from business
655	658		8 indebtedness discharged in connection with the reacquisition after
656	659		9 December 31, 2008, and before January 1, 2011, of an applicable
657	660		10 debt instrument, as provided in Section 108(i) of the Internal
658	661		11 Revenue Code. Subtract the amount necessary from the adjusted
659	662		12 gross income of any taxpayer that added an amount to adjusted
660	663		13 gross income in a previous year to offset the amount included in
661	664		14 federal gross income as a result of the deferral of income arising
662	665		15 from business indebtedness discharged in connection with the
663	666		16 reacquisition after December 31, 2008, and before January 1,
664	667		17 2011, of an applicable debt instrument, as provided in Section
665	668		18 108(i) of the Internal Revenue Code.
666	669		19 (21) Add the amount excluded from federal gross income under
667	670		20 Section 103 of the Internal Revenue Code for interest received on
668	671		21 an obligation of a state other than Indiana, or a political
669	672		22 subdivision of such a state, that is acquired by the taxpayer after
670	673		23 December 31, 2011. For purposes of this subdivision:
671	674		24 (A) if the taxpayer receives interest from a pass through entity,
672	675		25 a regulated investment company, a hedge fund, or similar
673	676		26 arrangement, the taxpayer will be considered to have acquired
674	677		27 the obligation on the date the entity acquired the obligation;
675	678		28 (B) if ownership of the obligation occurs by means other than
676	679		29 a purchase, the date of acquisition of the obligation shall be
677	680		30 the date ownership of the obligation was transferred, except to
678	681		31 the extent provided in clause (A), and if a portion of the
679	682		32 obligation is acquired on multiple dates, the date of acquisition
680	683		33 shall be considered separately for each portion of the
681	684		34 obligation; and
682	685		35 (C) if ownership of the obligation occurred as the result of a
683	686		36 refinancing of another obligation, the acquisition date shall be
684	687		37 the date on which the obligation was refinanced.
685	688		38 (22) Subtract an amount as described in Section 1341(a)(2) of the
686	689		39 Internal Revenue Code to the extent, if any, that the amount was
687	690		40 previously included in the taxpayer's adjusted gross income for a
688	691		41 prior taxable year.
689	692		42 (23) For taxable years beginning after December 25, 2016, add an
690	693		ES 453—LS 7499/DI 120 15
691	694		1 amount equal to the deduction for deferred foreign income that
692	695		2 was claimed by the taxpayer for the taxable year under Section
693	696		3 965(c) of the Internal Revenue Code.
694	697		4 (24) Subtract any interest expense paid or accrued in the current
695	698		5 taxable year but not deducted as a result of the limitation imposed
696	699		6 under Section 163(j)(1) of the Internal Revenue Code. Add any
697	700		7 interest expense paid or accrued in a previous taxable year but
698	701		8 allowed as a deduction under Section 163 of the Internal Revenue
699	702		9 Code in the current taxable year. For purposes of this subdivision,
700	703		10 an interest expense is considered paid or accrued only in the first
701	704		11 taxable year the deduction would have been allowable under
702	705		12 Section 163 of the Internal Revenue Code if the limitation under
703	706		13 Section 163(j)(1) of the Internal Revenue Code did not exist.
704	707		14 (25) Subtract the amount that would have been excluded from
705	708		15 gross income but for the enactment of Section 118(b)(2) of the
706	709		16 Internal Revenue Code for taxable years ending after December
707	710		17 22, 2017.
708	711		18 (26) For taxable years beginning after December 31, 2019, and
709	712		19 before January 1, 2021, add an amount of the deduction claimed
710	713		20 under Section 62(a)(22) of the Internal Revenue Code.
711	714		21 (27) For taxable years beginning after December 31, 2019, for
712	715		22 payments made by an employer under an education assistance
713	716		23 program after March 27, 2020:
714	717		24 (A) add the amount of payments by an employer that are
715	718		25 excluded from the taxpayer's federal gross income under
716	719		26 Section 127(c)(1)(B) of the Internal Revenue Code; and
717	720		27 (B) deduct the interest allowable under Section 221 of the
718	721		28 Internal Revenue Code, if the disallowance under Section
719	722		29 221(e)(1) of the Internal Revenue Code did not apply to the
720	723		30 payments described in clause (A). For purposes of applying
721	724		31 Section 221(b) of the Internal Revenue Code to the amount
722	725		32 allowable under this clause, the amount under clause (A) shall
723	726		33 not be added to adjusted gross income.
724	727		34 (28) Add an amount equal to the remainder of:
725	728		35 (A) the amount allowable as a deduction under Section 274(n)
726	729		36 of the Internal Revenue Code; minus
727	730		37 (B) the amount otherwise allowable as a deduction under
728	731		38 Section 274(n) of the Internal Revenue Code, if Section
729	732		39 274(n)(2)(D) of the Internal Revenue Code was not in effect
730	733		40 for amounts paid or incurred after December 31, 2020.
731	734		41 (29) For taxable years beginning after December 31, 2017, and
732	735		42 before January 1, 2021, add an amount equal to the excess
733	736		ES 453—LS 7499/DI 120 16
734	737		1 business loss of the taxpayer as defined in Section 461(l)(3) of the
735	738		2 Internal Revenue Code. In addition:
736	739		3 (A) If a taxpayer has an excess business loss under this
737	740		4 subdivision and also has modifications under subdivisions (15)
738	741		5 and (17) for property placed in service during the taxable year,
739	742		6 the taxpayer shall treat a portion of the taxable year
740	743		7 modifications for that property as occurring in the taxable year
741	744		8 the property is placed in service and a portion of the
742	745		9 modifications as occurring in the immediately following
743	746		10 taxable year.
744	747		11 (B) The portion of the modifications under subdivisions (15)
745	748		12 and (17) for property placed in service during the taxable year
746	749		13 treated as occurring in the taxable year in which the property
747	750		14 is placed in service equals:
748	751		15 (i) the modification for the property otherwise determined
749	752		16 under this section; minus
750	753		17 (ii) the excess business loss disallowed under this
751	754		18 subdivision;
752	755		19 but not less than zero (0).
753	756		20 (C) The portion of the modifications under subdivisions (15)
754	757		21 and (17) for property placed in service during the taxable year
755	758		22 treated as occurring in the taxable year immediately following
756	759		23 the taxable year in which the property is placed in service
757	760		24 equals the modification for the property otherwise determined
758	761		25 under this section minus the amount in clause (B).
759	762		26 (D) Any reallocation of modifications between taxable years
760	763		27 under clauses (B) and (C) shall be first allocated to the
761	764		28 modification under subdivision (15), then to the modification
762	765		29 under subdivision (17).
763	766		30 (30) Add an amount equal to the amount excluded from federal
764	767		31 gross income under Section 108(f)(5) of the Internal Revenue
765	768		32 Code. For purposes of this subdivision:
766	769		33 (A) if an amount excluded under Section 108(f)(5) of the
767	770		34 Internal Revenue Code would be excludible under Section
768	771		35 108(a)(1)(B) of the Internal Revenue Code, the exclusion
769	772		36 under Section 108(a)(1)(B) of the Internal Revenue Code shall
770	773		37 take precedence; and
771	774		38 (B) if an amount would have been excludible under Section
772	775		39 108(f)(5) of the Internal Revenue Code as in effect on January
773	776		40 1, 2020, the amount is not required to be added back under this
774	777		41 subdivision.
775	778		42 (31) For taxable years ending after March 12, 2020, subtract an
776	779		ES 453—LS 7499/DI 120 17
777	780		1 amount equal to the deduction disallowed pursuant to:
778	781		2 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
779	782		3 as modified by Sections 206 and 207 of the Taxpayer Certainty
780	783		4 and Disaster Relief Tax Act (Division EE of Public Law
781	784		5 116-260); and
782	785		6 (B) Section 3134(e) of the Internal Revenue Code.
783	786		7 (32) Subtract the amount of an ESA annual grant amount and, as
784	787		8 applicable, a CSA annual grant amount distributed to a taxpayer's
785	788		9 Indiana education scholarship account under IC 20-51.4 that is
786	789		10 used for an ESA or CSA qualified expense (as defined in
787	790		11 IC 20-51.4-2) or to an Indiana enrichment scholarship account
788	791		12 under IC 20-52 that is used for qualified expenses (as defined in
789	792		13 IC 20-52-2-6), to the extent the distribution used for the qualified
790	793		14 expense is included in the taxpayer's federal adjusted gross
791	794		15 income under the Internal Revenue Code.
792	795		16 (33) For taxable years beginning after December 31, 2019, and
793	796		17 before January 1, 2021, add an amount equal to the amount of
794	797		18 unemployment compensation excluded from federal gross income
795	798		19 under Section 85(c) of the Internal Revenue Code.
796	799		20 (34) For taxable years beginning after December 31, 2022,
797	800		21 subtract an amount equal to the deduction disallowed under
798	801		22 Section 280C(h) of the Internal Revenue Code.
799	802		23 (35) For taxable years beginning after December 31, 2021, add or
800	803		24 subtract amounts related to specified research or experimental
801	804		25 procedures as required under IC 6-3-2-29.
802	805		26 (36) Subtract any other amounts the taxpayer is entitled to deduct
803	806		27 under IC 6-3-2.
804	807		28 (37) Subtract the amount of a CSA annual grant amount
805	808		29 distributed to a taxpayer's career scholarship account under
806	809		30 IC 20-51.4-4.5 that is used for a CSA qualified expense (as
807	810		31 defined in IC 20-51.4-2-3.8), to the extent the distribution used
808	811		32 for the CSA qualified expense is included in the taxpayer's federal
809	812		33 adjusted gross income under the Internal Revenue Code.
810	813		34 (38) For a taxable year beginning after December 31, 2026,
811	814		35 subtract the amount of Indiana investment interest payments
812	815		36 that a taxpayer:
813	816		37 (A) claimed as a deduction for the taxable year under
814	817		38 Section 163 of the Internal Revenue Code in determining
815	818		39 the taxpayer's taxable income under Section 63 of the
816	819		40 Internal Revenue Code; and
817	820		41 (B) did not claim as a deduction for the taxable year in
818	821		42 determining the taxpayer's adjusted gross income under
819	822		ES 453—LS 7499/DI 120 18
820	823		1 Section 62 of the Internal Revenue Code;
821	824		2 for federal income tax purposes. For purposes of this
822	825		3 subdivision, a taxpayer is considered to claim a deduction for
823	826		4 Indiana investment interest payments only if the taxpayer
824	827		5 elects to itemize deductions under Section 63(e) of the Internal
825	828		6 Revenue Code.
826	829		7 (b) In the case of corporations, the same as "taxable income" (as
827	830		8 defined in Section 63 of the Internal Revenue Code) adjusted as
828	831		9 follows:
829	832		10 (1) Subtract income that is exempt from taxation under this article
830	833		11 by the Constitution and statutes of the United States.
831	834		12 (2) Add an amount equal to any deduction or deductions allowed
832	835		13 or allowable pursuant to Section 170 of the Internal Revenue
833	836		14 Code (concerning charitable contributions).
834	837		15 (3) Except as provided in subsection (c), add an amount equal to
835	838		16 any deduction or deductions allowed or allowable pursuant to
836	839		17 Section 63 of the Internal Revenue Code for taxes based on or
837	840		18 measured by income and levied at the state level by any state of
838	841		19 the United States.
839	842		20 (4) Subtract an amount equal to the amount included in the
840	843		21 corporation's taxable income under Section 78 of the Internal
841	844		22 Revenue Code (concerning foreign tax credits).
842	845		23 (5) Add or subtract the amount necessary to make the adjusted
843	846		24 gross income of any taxpayer that owns property for which bonus
844	847		25 depreciation was allowed in the current taxable year or in an
845	848		26 earlier taxable year equal to the amount of adjusted gross income
846	849		27 that would have been computed had an election not been made
847	850		28 under Section 168(k) of the Internal Revenue Code to apply bonus
848	851		29 depreciation to the property in the year that it was placed in
849	852		30 service.
850	853		31 (6) Add an amount equal to any deduction allowed under Section
851	854		32 172 of the Internal Revenue Code (concerning net operating
852	855		33 losses).
853	856		34 (7) Add or subtract the amount necessary to make the adjusted
854	857		35 gross income of any taxpayer that placed Section 179 property (as
855	858		36 defined in Section 179 of the Internal Revenue Code) in service
856	859		37 in the current taxable year or in an earlier taxable year equal to
857	860		38 the amount of adjusted gross income that would have been
858	861		39 computed had an election for federal income tax purposes not
859	862		40 been made for the year in which the property was placed in
860	863		41 service to take deductions under Section 179 of the Internal
861	864		42 Revenue Code in a total amount exceeding the sum of:
862	865		ES 453—LS 7499/DI 120 19
863	866		1 (A) twenty-five thousand dollars ($25,000) to the extent
864	867		2 deductions under Section 179 of the Internal Revenue Code
865	868		3 were not elected as provided in clause (B); and
866	869		4 (B) for taxable years beginning after December 31, 2017, the
867	870		5 deductions elected under Section 179 of the Internal Revenue
868	871		6 Code on property acquired in an exchange if:
869	872		7 (i) the exchange would have been eligible for
870	873		8 nonrecognition of gain or loss under Section 1031 of the
871	874		9 Internal Revenue Code in effect on January 1, 2017;
872	875		10 (ii) the exchange is not eligible for nonrecognition of gain or
873	876		11 loss under Section 1031 of the Internal Revenue Code; and
874	877		12 (iii) the taxpayer made an election to take deductions under
875	878		13 Section 179 of the Internal Revenue Code with regard to the
876	879		14 acquired property in the year that the property was placed
877	880		15 into service.
878	881		16 The amount of deductions allowable for an item of property
879	882		17 under this clause may not exceed the amount of adjusted gross
880	883		18 income realized on the property that would have been deferred
881	884		19 under the Internal Revenue Code in effect on January 1, 2017.
882	885		20 (8) Add to the extent required by IC 6-3-2-20:
883	886		21 (A) the amount of intangible expenses (as defined in
884	887		22 IC 6-3-2-20) for the taxable year that reduced the corporation's
885	888		23 taxable income (as defined in Section 63 of the Internal
886	889		24 Revenue Code) for federal income tax purposes; and
887	890		25 (B) any directly related interest expenses (as defined in
888	891		26 IC 6-3-2-20) that reduced the corporation's adjusted gross
889	892		27 income (determined without regard to this subdivision). For
890	893		28 purposes of this clause, any directly related interest expense
891	894		29 that constitutes business interest within the meaning of Section
892	895		30 163(j) of the Internal Revenue Code shall be considered to
893	896		31 have reduced the taxpayer's federal taxable income only in the
894	897		32 first taxable year in which the deduction otherwise would have
895	898		33 been allowable under Section 163 of the Internal Revenue
896	899		34 Code if the limitation under Section 163(j)(1) of the Internal
897	900		35 Revenue Code did not exist.
898	901		36 (9) Add an amount equal to any deduction for dividends paid (as
899	902		37 defined in Section 561 of the Internal Revenue Code) to
900	903		38 shareholders of a captive real estate investment trust (as defined
901	904		39 in section 34.5 of this chapter).
902	905		40 (10) Subtract income that is:
903	906		41 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
904	907		42 derived from patents); and
905	908		ES 453—LS 7499/DI 120 20
906	909		1 (B) included in the corporation's taxable income under the
907	910		2 Internal Revenue Code.
908	911		3 (11) Add an amount equal to any income not included in gross
909	912		4 income as a result of the deferral of income arising from business
910	913		5 indebtedness discharged in connection with the reacquisition after
911	914		6 December 31, 2008, and before January 1, 2011, of an applicable
912	915		7 debt instrument, as provided in Section 108(i) of the Internal
913	916		8 Revenue Code. Subtract from the adjusted gross income of any
914	917		9 taxpayer that added an amount to adjusted gross income in a
915	918		10 previous year the amount necessary to offset the amount included
916	919		11 in federal gross income as a result of the deferral of income
917	920		12 arising from business indebtedness discharged in connection with
918	921		13 the reacquisition after December 31, 2008, and before January 1,
919	922		14 2011, of an applicable debt instrument, as provided in Section
920	923		15 108(i) of the Internal Revenue Code.
921	924		16 (12) Add the amount excluded from federal gross income under
922	925		17 Section 103 of the Internal Revenue Code for interest received on
923	926		18 an obligation of a state other than Indiana, or a political
924	927		19 subdivision of such a state, that is acquired by the taxpayer after
925	928		20 December 31, 2011. For purposes of this subdivision:
926	929		21 (A) if the taxpayer receives interest from a pass through entity,
927	930		22 a regulated investment company, a hedge fund, or similar
928	931		23 arrangement, the taxpayer will be considered to have acquired
929	932		24 the obligation on the date the entity acquired the obligation;
930	933		25 (B) if ownership of the obligation occurs by means other than
931	934		26 a purchase, the date of acquisition of the obligation shall be
932	935		27 the date ownership of the obligation was transferred, except to
933	936		28 the extent provided in clause (A), and if a portion of the
934	937		29 obligation is acquired on multiple dates, the date of acquisition
935	938		30 shall be considered separately for each portion of the
936	939		31 obligation; and
937	940		32 (C) if ownership of the obligation occurred as the result of a
938	941		33 refinancing of another obligation, the acquisition date shall be
939	942		34 the date on which the obligation was refinanced.
940	943		35 (13) For taxable years beginning after December 25, 2016:
941	944		36 (A) for a corporation other than a real estate investment trust,
942	945		37 add:
943	946		38 (i) an amount equal to the amount reported by the taxpayer
944	947		39 on IRC 965 Transition Tax Statement, line 1; or
945	948		40 (ii) if the taxpayer deducted an amount under Section 965(c)
946	949		41 of the Internal Revenue Code in determining the taxpayer's
947	950		42 taxable income for purposes of the federal income tax, the
948	951		ES 453—LS 7499/DI 120 21
949	952		1 amount deducted under Section 965(c) of the Internal
950	953		2 Revenue Code; and
951	954		3 (B) for a real estate investment trust, add an amount equal to
952	955		4 the deduction for deferred foreign income that was claimed by
953	956		5 the taxpayer for the taxable year under Section 965(c) of the
954	957		6 Internal Revenue Code, but only to the extent that the taxpayer
955	958		7 included income pursuant to Section 965 of the Internal
956	959		8 Revenue Code in its taxable income for federal income tax
957	960		9 purposes or is required to add back dividends paid under
958	961		10 subdivision (9).
959	962		11 (14) Add an amount equal to the deduction that was claimed by
960	963		12 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
961	964		13 Internal Revenue Code (attributable to global intangible
962	965		14 low-taxed income). The taxpayer shall separately specify the
963	966		15 amount of the reduction under Section 250(a)(1)(B)(i) of the
964	967		16 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
965	968		17 Internal Revenue Code.
966	969		18 (15) Subtract any interest expense paid or accrued in the current
967	970		19 taxable year but not deducted as a result of the limitation imposed
968	971		20 under Section 163(j)(1) of the Internal Revenue Code. Add any
969	972		21 interest expense paid or accrued in a previous taxable year but
970	973		22 allowed as a deduction under Section 163 of the Internal Revenue
971	974		23 Code in the current taxable year. For purposes of this subdivision,
972	975		24 an interest expense is considered paid or accrued only in the first
973	976		25 taxable year the deduction would have been allowable under
974	977		26 Section 163 of the Internal Revenue Code if the limitation under
975	978		27 Section 163(j)(1) of the Internal Revenue Code did not exist.
976	979		28 (16) Subtract the amount that would have been excluded from
977	980		29 gross income but for the enactment of Section 118(b)(2) of the
978	981		30 Internal Revenue Code for taxable years ending after December
979	982		31 22, 2017.
980	983		32 (17) Add an amount equal to the remainder of:
981	984		33 (A) the amount allowable as a deduction under Section 274(n)
982	985		34 of the Internal Revenue Code; minus
983	986		35 (B) the amount otherwise allowable as a deduction under
984	987		36 Section 274(n) of the Internal Revenue Code, if Section
985	988		37 274(n)(2)(D) of the Internal Revenue Code was not in effect
986	989		38 for amounts paid or incurred after December 31, 2020.
987	990		39 (18) For taxable years ending after March 12, 2020, subtract an
988	991		40 amount equal to the deduction disallowed pursuant to:
989	992		41 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
990	993		42 as modified by Sections 206 and 207 of the Taxpayer Certainty
991	994		ES 453—LS 7499/DI 120 22
992	995		1 and Disaster Relief Tax Act (Division EE of Public Law
993	996		2 116-260); and
994	997		3 (B) Section 3134(e) of the Internal Revenue Code.
995	998		4 (19) For taxable years beginning after December 31, 2022,
996	999		5 subtract an amount equal to the deduction disallowed under
997	1000		6 Section 280C(h) of the Internal Revenue Code.
998	1001		7 (20) For taxable years beginning after December 31, 2021,
999	1002		8 subtract the amount of any:
1000	1003		9 (A) federal, state, or local grant received by the taxpayer; and
1001	1004		10 (B) discharged federal, state, or local indebtedness incurred by
1002	1005		11 the taxpayer;
1003	1006		12 for purposes of providing or expanding access to broadband
1004	1007		13 service in this state.
1005	1008		14 (21) For taxable years beginning after December 31, 2021, add or
1006	1009		15 subtract amounts related to specified research or experimental
1007	1010		16 procedures as required under IC 6-3-2-29.
1008	1011		17 (22) Add or subtract any other amounts the taxpayer is:
1009	1012		18 (A) required to add or subtract; or
1010	1013		19 (B) entitled to deduct;
1011	1014		20 under IC 6-3-2.
1012	1015		21 (c) The following apply to taxable years beginning after December
1013	1016		22 31, 2018, for purposes of the add back of any deduction allowed on the
1014	1017		23 taxpayer's federal income tax return for wagering taxes, as provided in
1015	1018		24 subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
1016	1019		25 the taxpayer is a corporation:
1017	1020		26 (1) For taxable years beginning after December 31, 2018, and
1018	1021		27 before January 1, 2020, a taxpayer is required to add back under
1019	1022		28 this section eighty-seven and five-tenths percent (87.5%) of any
1020	1023		29 deduction allowed on the taxpayer's federal income tax return for
1021	1024		30 wagering taxes.
1022	1025		31 (2) For taxable years beginning after December 31, 2019, and
1023	1026		32 before January 1, 2021, a taxpayer is required to add back under
1024	1027		33 this section seventy-five percent (75%) of any deduction allowed
1025	1028		34 on the taxpayer's federal income tax return for wagering taxes.
1026	1029		35 (3) For taxable years beginning after December 31, 2020, and
1027	1030		36 before January 1, 2022, a taxpayer is required to add back under
1028	1031		37 this section sixty-two and five-tenths percent (62.5%) of any
1029	1032		38 deduction allowed on the taxpayer's federal income tax return for
1030	1033		39 wagering taxes.
1031	1034		40 (4) For taxable years beginning after December 31, 2021, and
1032	1035		41 before January 1, 2023, a taxpayer is required to add back under
1033	1036		42 this section fifty percent (50%) of any deduction allowed on the
1034	1037		ES 453—LS 7499/DI 120 23
1035	1038		1 taxpayer's federal income tax return for wagering taxes.
1036	1039		2 (5) For taxable years beginning after December 31, 2022, and
1037	1040		3 before January 1, 2024, a taxpayer is required to add back under
1038	1041		4 this section thirty-seven and five-tenths percent (37.5%) of any
1039	1042		5 deduction allowed on the taxpayer's federal income tax return for
1040	1043		6 wagering taxes.
1041	1044		7 (6) For taxable years beginning after December 31, 2023, and
1042	1045		8 before January 1, 2025, a taxpayer is required to add back under
1043	1046		9 this section twenty-five percent (25%) of any deduction allowed
1044	1047		10 on the taxpayer's federal income tax return for wagering taxes.
1045	1048		11 (7) For taxable years beginning after December 31, 2024, and
1046	1049		12 before January 1, 2026, a taxpayer is required to add back under
1047	1050		13 this section twelve and five-tenths percent (12.5%) of any
1048	1051		14 deduction allowed on the taxpayer's federal income tax return for
1049	1052		15 wagering taxes.
1050	1053		16 (8) For taxable years beginning after December 31, 2025, a
1051	1054		17 taxpayer is not required to add back under this section any amount
1052	1055		18 of a deduction allowed on the taxpayer's federal income tax return
1053	1056		19 for wagering taxes.
1054	1057		20 (d) In the case of life insurance companies (as defined in Section
1055	1058		21 816(a) of the Internal Revenue Code) that are organized under Indiana
1056	1059		22 law, the same as "life insurance company taxable income" (as defined
1057	1060		23 in Section 801 of the Internal Revenue Code), adjusted as follows:
1058	1061		24 (1) Subtract income that is exempt from taxation under this article
1059	1062		25 by the Constitution and statutes of the United States.
1060	1063		26 (2) Add an amount equal to any deduction allowed or allowable
1061	1064		27 under Section 170 of the Internal Revenue Code (concerning
1062	1065		28 charitable contributions).
1063	1066		29 (3) Add an amount equal to a deduction allowed or allowable
1064	1067		30 under Section 805 or Section 832(c) of the Internal Revenue Code
1065	1068		31 for taxes based on or measured by income and levied at the state
1066	1069		32 level by any state.
1067	1070		33 (4) Subtract an amount equal to the amount included in the
1068	1071		34 company's taxable income under Section 78 of the Internal
1069	1072		35 Revenue Code (concerning foreign tax credits).
1070	1073		36 (5) Add or subtract the amount necessary to make the adjusted
1071	1074		37 gross income of any taxpayer that owns property for which bonus
1072	1075		38 depreciation was allowed in the current taxable year or in an
1073	1076		39 earlier taxable year equal to the amount of adjusted gross income
1074	1077		40 that would have been computed had an election not been made
1075	1078		41 under Section 168(k) of the Internal Revenue Code to apply bonus
1076	1079		42 depreciation to the property in the year that it was placed in
1077	1080		ES 453—LS 7499/DI 120 24
1078	1081		1 service.
1079	1082		2 (6) Add an amount equal to any deduction allowed under Section
1080	1083		3 172 of the Internal Revenue Code (concerning net operating
1081	1084		4 losses).
1082	1085		5 (7) Add or subtract the amount necessary to make the adjusted
1083	1086		6 gross income of any taxpayer that placed Section 179 property (as
1084	1087		7 defined in Section 179 of the Internal Revenue Code) in service
1085	1088		8 in the current taxable year or in an earlier taxable year equal to
1086	1089		9 the amount of adjusted gross income that would have been
1087	1090		10 computed had an election for federal income tax purposes not
1088	1091		11 been made for the year in which the property was placed in
1089	1092		12 service to take deductions under Section 179 of the Internal
1090	1093		13 Revenue Code in a total amount exceeding the sum of:
1091	1094		14 (A) twenty-five thousand dollars ($25,000) to the extent
1092	1095		15 deductions under Section 179 of the Internal Revenue Code
1093	1096		16 were not elected as provided in clause (B); and
1094	1097		17 (B) for taxable years beginning after December 31, 2017, the
1095	1098		18 deductions elected under Section 179 of the Internal Revenue
1096	1099		19 Code on property acquired in an exchange if:
1097	1100		20 (i) the exchange would have been eligible for
1098	1101		21 nonrecognition of gain or loss under Section 1031 of the
1099	1102		22 Internal Revenue Code in effect on January 1, 2017;
1100	1103		23 (ii) the exchange is not eligible for nonrecognition of gain or
1101	1104		24 loss under Section 1031 of the Internal Revenue Code; and
1102	1105		25 (iii) the taxpayer made an election to take deductions under
1103	1106		26 Section 179 of the Internal Revenue Code with regard to the
1104	1107		27 acquired property in the year that the property was placed
1105	1108		28 into service.
1106	1109		29 The amount of deductions allowable for an item of property
1107	1110		30 under this clause may not exceed the amount of adjusted gross
1108	1111		31 income realized on the property that would have been deferred
1109	1112		32 under the Internal Revenue Code in effect on January 1, 2017.
1110	1113		33 (8) Subtract income that is:
1111	1114		34 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1112	1115		35 derived from patents); and
1113	1116		36 (B) included in the insurance company's taxable income under
1114	1117		37 the Internal Revenue Code.
1115	1118		38 (9) Add an amount equal to any income not included in gross
1116	1119		39 income as a result of the deferral of income arising from business
1117	1120		40 indebtedness discharged in connection with the reacquisition after
1118	1121		41 December 31, 2008, and before January 1, 2011, of an applicable
1119	1122		42 debt instrument, as provided in Section 108(i) of the Internal
1120	1123		ES 453—LS 7499/DI 120 25
1121	1124		1 Revenue Code. Subtract from the adjusted gross income of any
1122	1125		2 taxpayer that added an amount to adjusted gross income in a
1123	1126		3 previous year the amount necessary to offset the amount included
1124	1127		4 in federal gross income as a result of the deferral of income
1125	1128		5 arising from business indebtedness discharged in connection with
1126	1129		6 the reacquisition after December 31, 2008, and before January 1,
1127	1130		7 2011, of an applicable debt instrument, as provided in Section
1128	1131		8 108(i) of the Internal Revenue Code.
1129	1132		9 (10) Add an amount equal to any exempt insurance income under
1130	1133		10 Section 953(e) of the Internal Revenue Code that is active
1131	1134		11 financing income under Subpart F of Subtitle A, Chapter 1,
1132	1135		12 Subchapter N of the Internal Revenue Code.
1133	1136		13 (11) Add the amount excluded from federal gross income under
1134	1137		14 Section 103 of the Internal Revenue Code for interest received on
1135	1138		15 an obligation of a state other than Indiana, or a political
1136	1139		16 subdivision of such a state, that is acquired by the taxpayer after
1137	1140		17 December 31, 2011. For purposes of this subdivision:
1138	1141		18 (A) if the taxpayer receives interest from a pass through entity,
1139	1142		19 a regulated investment company, a hedge fund, or similar
1140	1143		20 arrangement, the taxpayer will be considered to have acquired
1141	1144		21 the obligation on the date the entity acquired the obligation;
1142	1145		22 (B) if ownership of the obligation occurs by means other than
1143	1146		23 a purchase, the date of acquisition of the obligation shall be
1144	1147		24 the date ownership of the obligation was transferred, except to
1145	1148		25 the extent provided in clause (A), and if a portion of the
1146	1149		26 obligation is acquired on multiple dates, the date of acquisition
1147	1150		27 shall be considered separately for each portion of the
1148	1151		28 obligation; and
1149	1152		29 (C) if ownership of the obligation occurred as the result of a
1150	1153		30 refinancing of another obligation, the acquisition date shall be
1151	1154		31 the date on which the obligation was refinanced.
1152	1155		32 (12) For taxable years beginning after December 25, 2016, add:
1153	1156		33 (A) an amount equal to the amount reported by the taxpayer on
1154	1157		34 IRC 965 Transition Tax Statement, line 1; or
1155	1158		35 (B) if the taxpayer deducted an amount under Section 965(c)
1156	1159		36 of the Internal Revenue Code in determining the taxpayer's
1157	1160		37 taxable income for purposes of the federal income tax, the
1158	1161		38 amount deducted under Section 965(c) of the Internal Revenue
1159	1162		39 Code.
1160	1163		40 (13) Add an amount equal to the deduction that was claimed by
1161	1164		41 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1162	1165		42 Internal Revenue Code (attributable to global intangible
1163	1166		ES 453—LS 7499/DI 120 26
1164	1167		1 low-taxed income). The taxpayer shall separately specify the
1165	1168		2 amount of the reduction under Section 250(a)(1)(B)(i) of the
1166	1169		3 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1167	1170		4 Internal Revenue Code.
1168	1171		5 (14) Subtract any interest expense paid or accrued in the current
1169	1172		6 taxable year but not deducted as a result of the limitation imposed
1170	1173		7 under Section 163(j)(1) of the Internal Revenue Code. Add any
1171	1174		8 interest expense paid or accrued in a previous taxable year but
1172	1175		9 allowed as a deduction under Section 163 of the Internal Revenue
1173	1176		10 Code in the current taxable year. For purposes of this subdivision,
1174	1177		11 an interest expense is considered paid or accrued only in the first
1175	1178		12 taxable year the deduction would have been allowable under
1176	1179		13 Section 163 of the Internal Revenue Code if the limitation under
1177	1180		14 Section 163(j)(1) of the Internal Revenue Code did not exist.
1178	1181		15 (15) Subtract the amount that would have been excluded from
1179	1182		16 gross income but for the enactment of Section 118(b)(2) of the
1180	1183		17 Internal Revenue Code for taxable years ending after December
1181	1184		18 22, 2017.
1182	1185		19 (16) Add an amount equal to the remainder of:
1183	1186		20 (A) the amount allowable as a deduction under Section 274(n)
1184	1187		21 of the Internal Revenue Code; minus
1185	1188		22 (B) the amount otherwise allowable as a deduction under
1186	1189		23 Section 274(n) of the Internal Revenue Code, if Section
1187	1190		24 274(n)(2)(D) of the Internal Revenue Code was not in effect
1188	1191		25 for amounts paid or incurred after December 31, 2020.
1189	1192		26 (17) For taxable years ending after March 12, 2020, subtract an
1190	1193		27 amount equal to the deduction disallowed pursuant to:
1191	1194		28 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1192	1195		29 as modified by Sections 206 and 207 of the Taxpayer Certainty
1193	1196		30 and Disaster Relief Tax Act (Division EE of Public Law
1194	1197		31 116-260); and
1195	1198		32 (B) Section 3134(e) of the Internal Revenue Code.
1196	1199		33 (18) For taxable years beginning after December 31, 2022,
1197	1200		34 subtract an amount equal to the deduction disallowed under
1198	1201		35 Section 280C(h) of the Internal Revenue Code.
1199	1202		36 (19) For taxable years beginning after December 31, 2021, add or
1200	1203		37 subtract amounts related to specified research or experimental
1201	1204		38 procedures as required under IC 6-3-2-29.
1202	1205		39 (20) Add or subtract any other amounts the taxpayer is:
1203	1206		40 (A) required to add or subtract; or
1204	1207		41 (B) entitled to deduct;
1205	1208		42 under IC 6-3-2.
1206	1209		ES 453—LS 7499/DI 120 27
1207	1210		1 (e) In the case of insurance companies subject to tax under Section
1208	1211		2 831 of the Internal Revenue Code and organized under Indiana law, the
1209	1212		3 same as "taxable income" (as defined in Section 832 of the Internal
1210	1213		4 Revenue Code), adjusted as follows:
1211	1214		5 (1) Subtract income that is exempt from taxation under this article
1212	1215		6 by the Constitution and statutes of the United States.
1213	1216		7 (2) Add an amount equal to any deduction allowed or allowable
1214	1217		8 under Section 170 of the Internal Revenue Code (concerning
1215	1218		9 charitable contributions).
1216	1219		10 (3) Add an amount equal to a deduction allowed or allowable
1217	1220		11 under Section 805 or Section 832(c) of the Internal Revenue Code
1218	1221		12 for taxes based on or measured by income and levied at the state
1219	1222		13 level by any state.
1220	1223		14 (4) Subtract an amount equal to the amount included in the
1221	1224		15 company's taxable income under Section 78 of the Internal
1222	1225		16 Revenue Code (concerning foreign tax credits).
1223	1226		17 (5) Add or subtract the amount necessary to make the adjusted
1224	1227		18 gross income of any taxpayer that owns property for which bonus
1225	1228		19 depreciation was allowed in the current taxable year or in an
1226	1229		20 earlier taxable year equal to the amount of adjusted gross income
1227	1230		21 that would have been computed had an election not been made
1228	1231		22 under Section 168(k) of the Internal Revenue Code to apply bonus
1229	1232		23 depreciation to the property in the year that it was placed in
1230	1233		24 service.
1231	1234		25 (6) Add an amount equal to any deduction allowed under Section
1232	1235		26 172 of the Internal Revenue Code (concerning net operating
1233	1236		27 losses).
1234	1237		28 (7) Add or subtract the amount necessary to make the adjusted
1235	1238		29 gross income of any taxpayer that placed Section 179 property (as
1236	1239		30 defined in Section 179 of the Internal Revenue Code) in service
1237	1240		31 in the current taxable year or in an earlier taxable year equal to
1238	1241		32 the amount of adjusted gross income that would have been
1239	1242		33 computed had an election for federal income tax purposes not
1240	1243		34 been made for the year in which the property was placed in
1241	1244		35 service to take deductions under Section 179 of the Internal
1242	1245		36 Revenue Code in a total amount exceeding the sum of:
1243	1246		37 (A) twenty-five thousand dollars ($25,000) to the extent
1244	1247		38 deductions under Section 179 of the Internal Revenue Code
1245	1248		39 were not elected as provided in clause (B); and
1246	1249		40 (B) for taxable years beginning after December 31, 2017, the
1247	1250		41 deductions elected under Section 179 of the Internal Revenue
1248	1251		42 Code on property acquired in an exchange if:
1249	1252		ES 453—LS 7499/DI 120 28
1250	1253		1 (i) the exchange would have been eligible for
1251	1254		2 nonrecognition of gain or loss under Section 1031 of the
1252	1255		3 Internal Revenue Code in effect on January 1, 2017;
1253	1256		4 (ii) the exchange is not eligible for nonrecognition of gain or
1254	1257		5 loss under Section 1031 of the Internal Revenue Code; and
1255	1258		6 (iii) the taxpayer made an election to take deductions under
1256	1259		7 Section 179 of the Internal Revenue Code with regard to the
1257	1260		8 acquired property in the year that the property was placed
1258	1261		9 into service.
1259	1262		10 The amount of deductions allowable for an item of property
1260	1263		11 under this clause may not exceed the amount of adjusted gross
1261	1264		12 income realized on the property that would have been deferred
1262	1265		13 under the Internal Revenue Code in effect on January 1, 2017.
1263	1266		14 (8) Subtract income that is:
1264	1267		15 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1265	1268		16 derived from patents); and
1266	1269		17 (B) included in the insurance company's taxable income under
1267	1270		18 the Internal Revenue Code.
1268	1271		19 (9) Add an amount equal to any income not included in gross
1269	1272		20 income as a result of the deferral of income arising from business
1270	1273		21 indebtedness discharged in connection with the reacquisition after
1271	1274		22 December 31, 2008, and before January 1, 2011, of an applicable
1272	1275		23 debt instrument, as provided in Section 108(i) of the Internal
1273	1276		24 Revenue Code. Subtract from the adjusted gross income of any
1274	1277		25 taxpayer that added an amount to adjusted gross income in a
1275	1278		26 previous year the amount necessary to offset the amount included
1276	1279		27 in federal gross income as a result of the deferral of income
1277	1280		28 arising from business indebtedness discharged in connection with
1278	1281		29 the reacquisition after December 31, 2008, and before January 1,
1279	1282		30 2011, of an applicable debt instrument, as provided in Section
1280	1283		31 108(i) of the Internal Revenue Code.
1281	1284		32 (10) Add an amount equal to any exempt insurance income under
1282	1285		33 Section 953(e) of the Internal Revenue Code that is active
1283	1286		34 financing income under Subpart F of Subtitle A, Chapter 1,
1284	1287		35 Subchapter N of the Internal Revenue Code.
1285	1288		36 (11) Add the amount excluded from federal gross income under
1286	1289		37 Section 103 of the Internal Revenue Code for interest received on
1287	1290		38 an obligation of a state other than Indiana, or a political
1288	1291		39 subdivision of such a state, that is acquired by the taxpayer after
1289	1292		40 December 31, 2011. For purposes of this subdivision:
1290	1293		41 (A) if the taxpayer receives interest from a pass through entity,
1291	1294		42 a regulated investment company, a hedge fund, or similar
1292	1295		ES 453—LS 7499/DI 120 29
1293	1296		1 arrangement, the taxpayer will be considered to have acquired
1294	1297		2 the obligation on the date the entity acquired the obligation;
1295	1298		3 (B) if ownership of the obligation occurs by means other than
1296	1299		4 a purchase, the date of acquisition of the obligation shall be
1297	1300		5 the date ownership of the obligation was transferred, except to
1298	1301		6 the extent provided in clause (A), and if a portion of the
1299	1302		7 obligation is acquired on multiple dates, the date of acquisition
1300	1303		8 shall be considered separately for each portion of the
1301	1304		9 obligation; and
1302	1305		10 (C) if ownership of the obligation occurred as the result of a
1303	1306		11 refinancing of another obligation, the acquisition date shall be
1304	1307		12 the date on which the obligation was refinanced.
1305	1308		13 (12) For taxable years beginning after December 25, 2016, add:
1306	1309		14 (A) an amount equal to the amount reported by the taxpayer on
1307	1310		15 IRC 965 Transition Tax Statement, line 1; or
1308	1311		16 (B) if the taxpayer deducted an amount under Section 965(c)
1309	1312		17 of the Internal Revenue Code in determining the taxpayer's
1310	1313		18 taxable income for purposes of the federal income tax, the
1311	1314		19 amount deducted under Section 965(c) of the Internal Revenue
1312	1315		20 Code.
1313	1316		21 (13) Add an amount equal to the deduction that was claimed by
1314	1317		22 the taxpayer for the taxable year under Section 250(a)(1)(B) of the
1315	1318		23 Internal Revenue Code (attributable to global intangible
1316	1319		24 low-taxed income). The taxpayer shall separately specify the
1317	1320		25 amount of the reduction under Section 250(a)(1)(B)(i) of the
1318	1321		26 Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
1319	1322		27 Internal Revenue Code.
1320	1323		28 (14) Subtract any interest expense paid or accrued in the current
1321	1324		29 taxable year but not deducted as a result of the limitation imposed
1322	1325		30 under Section 163(j)(1) of the Internal Revenue Code. Add any
1323	1326		31 interest expense paid or accrued in a previous taxable year but
1324	1327		32 allowed as a deduction under Section 163 of the Internal Revenue
1325	1328		33 Code in the current taxable year. For purposes of this subdivision,
1326	1329		34 an interest expense is considered paid or accrued only in the first
1327	1330		35 taxable year the deduction would have been allowable under
1328	1331		36 Section 163 of the Internal Revenue Code if the limitation under
1329	1332		37 Section 163(j)(1) of the Internal Revenue Code did not exist.
1330	1333		38 (15) Subtract the amount that would have been excluded from
1331	1334		39 gross income but for the enactment of Section 118(b)(2) of the
1332	1335		40 Internal Revenue Code for taxable years ending after December
1333	1336		41 22, 2017.
1334	1337		42 (16) Add an amount equal to the remainder of:
1335	1338		ES 453—LS 7499/DI 120 30
1336	1339		1 (A) the amount allowable as a deduction under Section 274(n)
1337	1340		2 of the Internal Revenue Code; minus
1338	1341		3 (B) the amount otherwise allowable as a deduction under
1339	1342		4 Section 274(n) of the Internal Revenue Code, if Section
1340	1343		5 274(n)(2)(D) of the Internal Revenue Code was not in effect
1341	1344		6 for amounts paid or incurred after December 31, 2020.
1342	1345		7 (17) For taxable years ending after March 12, 2020, subtract an
1343	1346		8 amount equal to the deduction disallowed pursuant to:
1344	1347		9 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1345	1348		10 as modified by Sections 206 and 207 of the Taxpayer Certainty
1346	1349		11 and Disaster Relief Tax Act (Division EE of Public Law
1347	1350		12 116-260); and
1348	1351		13 (B) Section 3134(e) of the Internal Revenue Code.
1349	1352		14 (18) For taxable years beginning after December 31, 2022,
1350	1353		15 subtract an amount equal to the deduction disallowed under
1351	1354		16 Section 280C(h) of the Internal Revenue Code.
1352	1355		17 (19) For taxable years beginning after December 31, 2021, add or
1353	1356		18 subtract amounts related to specified research or experimental
1354	1357		19 procedures as required under IC 6-3-2-29.
1355	1358		20 (20) Add or subtract any other amounts the taxpayer is:
1356	1359		21 (A) required to add or subtract; or
1357	1360		22 (B) entitled to deduct;
1358	1361		23 under IC 6-3-2.
1359	1362		24 (f) In the case of trusts and estates, "taxable income" (as defined for
1360	1363		25 trusts and estates in Section 641(b) of the Internal Revenue Code)
1361	1364		26 adjusted as follows:
1362	1365		27 (1) Subtract income that is exempt from taxation under this article
1363	1366		28 by the Constitution and statutes of the United States.
1364	1367		29 (2) Subtract an amount equal to the amount of a September 11
1365	1368		30 terrorist attack settlement payment included in the federal
1366	1369		31 adjusted gross income of the estate of a victim of the September
1367	1370		32 11 terrorist attack or a trust to the extent the trust benefits a victim
1368	1371		33 of the September 11 terrorist attack.
1369	1372		34 (3) Add or subtract the amount necessary to make the adjusted
1370	1373		35 gross income of any taxpayer that owns property for which bonus
1371	1374		36 depreciation was allowed in the current taxable year or in an
1372	1375		37 earlier taxable year equal to the amount of adjusted gross income
1373	1376		38 that would have been computed had an election not been made
1374	1377		39 under Section 168(k) of the Internal Revenue Code to apply bonus
1375	1378		40 depreciation to the property in the year that it was placed in
1376	1379		41 service.
1377	1380		42 (4) Add an amount equal to any deduction allowed under Section
1378	1381		ES 453—LS 7499/DI 120 31
1379	1382		1 172 of the Internal Revenue Code (concerning net operating
1380	1383		2 losses).
1381	1384		3 (5) Add or subtract the amount necessary to make the adjusted
1382	1385		4 gross income of any taxpayer that placed Section 179 property (as
1383	1386		5 defined in Section 179 of the Internal Revenue Code) in service
1384	1387		6 in the current taxable year or in an earlier taxable year equal to
1385	1388		7 the amount of adjusted gross income that would have been
1386	1389		8 computed had an election for federal income tax purposes not
1387	1390		9 been made for the year in which the property was placed in
1388	1391		10 service to take deductions under Section 179 of the Internal
1389	1392		11 Revenue Code in a total amount exceeding the sum of:
1390	1393		12 (A) twenty-five thousand dollars ($25,000) to the extent
1391	1394		13 deductions under Section 179 of the Internal Revenue Code
1392	1395		14 were not elected as provided in clause (B); and
1393	1396		15 (B) for taxable years beginning after December 31, 2017, the
1394	1397		16 deductions elected under Section 179 of the Internal Revenue
1395	1398		17 Code on property acquired in an exchange if:
1396	1399		18 (i) the exchange would have been eligible for
1397	1400		19 nonrecognition of gain or loss under Section 1031 of the
1398	1401		20 Internal Revenue Code in effect on January 1, 2017;
1399	1402		21 (ii) the exchange is not eligible for nonrecognition of gain or
1400	1403		22 loss under Section 1031 of the Internal Revenue Code; and
1401	1404		23 (iii) the taxpayer made an election to take deductions under
1402	1405		24 Section 179 of the Internal Revenue Code with regard to the
1403	1406		25 acquired property in the year that the property was placed
1404	1407		26 into service.
1405	1408		27 The amount of deductions allowable for an item of property
1406	1409		28 under this clause may not exceed the amount of adjusted gross
1407	1410		29 income realized on the property that would have been deferred
1408	1411		30 under the Internal Revenue Code in effect on January 1, 2017.
1409	1412		31 (6) Subtract income that is:
1410	1413		32 (A) exempt from taxation under IC 6-3-2-21.7 (certain income
1411	1414		33 derived from patents); and
1412	1415		34 (B) included in the taxpayer's taxable income under the
1413	1416		35 Internal Revenue Code.
1414	1417		36 (7) Add an amount equal to any income not included in gross
1415	1418		37 income as a result of the deferral of income arising from business
1416	1419		38 indebtedness discharged in connection with the reacquisition after
1417	1420		39 December 31, 2008, and before January 1, 2011, of an applicable
1418	1421		40 debt instrument, as provided in Section 108(i) of the Internal
1419	1422		41 Revenue Code. Subtract from the adjusted gross income of any
1420	1423		42 taxpayer that added an amount to adjusted gross income in a
1421	1424		ES 453—LS 7499/DI 120 32
1422	1425		1 previous year the amount necessary to offset the amount included
1423	1426		2 in federal gross income as a result of the deferral of income
1424	1427		3 arising from business indebtedness discharged in connection with
1425	1428		4 the reacquisition after December 31, 2008, and before January 1,
1426	1429		5 2011, of an applicable debt instrument, as provided in Section
1427	1430		6 108(i) of the Internal Revenue Code.
1428	1431		7 (8) Add the amount excluded from federal gross income under
1429	1432		8 Section 103 of the Internal Revenue Code for interest received on
1430	1433		9 an obligation of a state other than Indiana, or a political
1431	1434		10 subdivision of such a state, that is acquired by the taxpayer after
1432	1435		11 December 31, 2011. For purposes of this subdivision:
1433	1436		12 (A) if the taxpayer receives interest from a pass through entity,
1434	1437		13 a regulated investment company, a hedge fund, or similar
1435	1438		14 arrangement, the taxpayer will be considered to have acquired
1436	1439		15 the obligation on the date the entity acquired the obligation;
1437	1440		16 (B) if ownership of the obligation occurs by means other than
1438	1441		17 a purchase, the date of acquisition of the obligation shall be
1439	1442		18 the date ownership of the obligation was transferred, except to
1440	1443		19 the extent provided in clause (A), and if a portion of the
1441	1444		20 obligation is acquired on multiple dates, the date of acquisition
1442	1445		21 shall be considered separately for each portion of the
1443	1446		22 obligation; and
1444	1447		23 (C) if ownership of the obligation occurred as the result of a
1445	1448		24 refinancing of another obligation, the acquisition date shall be
1446	1449		25 the date on which the obligation was refinanced.
1447	1450		26 (9) For taxable years beginning after December 25, 2016, add an
1448	1451		27 amount equal to:
1449	1452		28 (A) the amount reported by the taxpayer on IRC 965
1450	1453		29 Transition Tax Statement, line 1;
1451	1454		30 (B) if the taxpayer deducted an amount under Section 965(c)
1452	1455		31 of the Internal Revenue Code in determining the taxpayer's
1453	1456		32 taxable income for purposes of the federal income tax, the
1454	1457		33 amount deducted under Section 965(c) of the Internal Revenue
1455	1458		34 Code; and
1456	1459		35 (C) with regard to any amounts of income under Section 965
1457	1460		36 of the Internal Revenue Code distributed by the taxpayer, the
1458	1461		37 deduction under Section 965(c) of the Internal Revenue Code
1459	1462		38 attributable to such distributed amounts and not reported to the
1460	1463		39 beneficiary.
1461	1464		40 For purposes of this article, the amount required to be added back
1462	1465		41 under clause (B) is not considered to be distributed or
1463	1466		42 distributable to a beneficiary of the estate or trust for purposes of
1464	1467		ES 453—LS 7499/DI 120 33
1465	1468		1 Sections 651 and 661 of the Internal Revenue Code.
1466	1469		2 (10) Subtract any interest expense paid or accrued in the current
1467	1470		3 taxable year but not deducted as a result of the limitation imposed
1468	1471		4 under Section 163(j)(1) of the Internal Revenue Code. Add any
1469	1472		5 interest expense paid or accrued in a previous taxable year but
1470	1473		6 allowed as a deduction under Section 163 of the Internal Revenue
1471	1474		7 Code in the current taxable year. For purposes of this subdivision,
1472	1475		8 an interest expense is considered paid or accrued only in the first
1473	1476		9 taxable year the deduction would have been allowable under
1474	1477		10 Section 163 of the Internal Revenue Code if the limitation under
1475	1478		11 Section 163(j)(1) of the Internal Revenue Code did not exist.
1476	1479		12 (11) Add an amount equal to the deduction for qualified business
1477	1480		13 income that was claimed by the taxpayer for the taxable year
1478	1481		14 under Section 199A of the Internal Revenue Code.
1479	1482		15 (12) Subtract the amount that would have been excluded from
1480	1483		16 gross income but for the enactment of Section 118(b)(2) of the
1481	1484		17 Internal Revenue Code for taxable years ending after December
1482	1485		18 22, 2017.
1483	1486		19 (13) Add an amount equal to the remainder of:
1484	1487		20 (A) the amount allowable as a deduction under Section 274(n)
1485	1488		21 of the Internal Revenue Code; minus
1486	1489		22 (B) the amount otherwise allowable as a deduction under
1487	1490		23 Section 274(n) of the Internal Revenue Code, if Section
1488	1491		24 274(n)(2)(D) of the Internal Revenue Code was not in effect
1489	1492		25 for amounts paid or incurred after December 31, 2020.
1490	1493		26 (14) For taxable years beginning after December 31, 2017, and
1491	1494		27 before January 1, 2021, add an amount equal to the excess
1492	1495		28 business loss of the taxpayer as defined in Section 461(l)(3) of the
1493	1496		29 Internal Revenue Code. In addition:
1494	1497		30 (A) If a taxpayer has an excess business loss under this
1495	1498		31 subdivision and also has modifications under subdivisions (3)
1496	1499		32 and (5) for property placed in service during the taxable year,
1497	1500		33 the taxpayer shall treat a portion of the taxable year
1498	1501		34 modifications for that property as occurring in the taxable year
1499	1502		35 the property is placed in service and a portion of the
1500	1503		36 modifications as occurring in the immediately following
1501	1504		37 taxable year.
1502	1505		38 (B) The portion of the modifications under subdivisions (3)
1503	1506		39 and (5) for property placed in service during the taxable year
1504	1507		40 treated as occurring in the taxable year in which the property
1505	1508		41 is placed in service equals:
1506	1509		42 (i) the modification for the property otherwise determined
1507	1510		ES 453—LS 7499/DI 120 34
1508	1511		1 under this section; minus
1509	1512		2 (ii) the excess business loss disallowed under this
1510	1513		3 subdivision;
1511	1514		4 but not less than zero (0).
1512	1515		5 (C) The portion of the modifications under subdivisions (3)
1513	1516		6 and (5) for property placed in service during the taxable year
1514	1517		7 treated as occurring in the taxable year immediately following
1515	1518		8 the taxable year in which the property is placed in service
1516	1519		9 equals the modification for the property otherwise determined
1517	1520		10 under this section minus the amount in clause (B).
1518	1521		11 (D) Any reallocation of modifications between taxable years
1519	1522		12 under clauses (B) and (C) shall be first allocated to the
1520	1523		13 modification under subdivision (3), then to the modification
1521	1524		14 under subdivision (5).
1522	1525		15 (15) For taxable years ending after March 12, 2020, subtract an
1523	1526		16 amount equal to the deduction disallowed pursuant to:
1524	1527		17 (A) Section 2301(e) of the CARES Act (Public Law 116-136),
1525	1528		18 as modified by Sections 206 and 207 of the Taxpayer Certainty
1526	1529		19 and Disaster Relief Tax Act (Division EE of Public Law
1527	1530		20 116-260); and
1528	1531		21 (B) Section 3134(e) of the Internal Revenue Code.
1529	1532		22 (16) For taxable years beginning after December 31, 2022,
1530	1533		23 subtract an amount equal to the deduction disallowed under
1531	1534		24 Section 280C(h) of the Internal Revenue Code.
1532	1535		25 (17) Except as provided in subsection (c), for taxable years
1533	1536		26 beginning after December 31, 2022, add an amount equal to any
1534	1537		27 deduction or deductions allowed or allowable in determining
1535	1538		28 taxable income under Section 641(b) of the Internal Revenue
1536	1539		29 Code for taxes based on or measured by income and levied at the
1537	1540		30 state level by any state of the United States.
1538	1541		31 (18) For taxable years beginning after December 31, 2021, add or
1539	1542		32 subtract amounts related to specified research or experimental
1540	1543		33 procedures as required under IC 6-3-2-29.
1541	1544		34 (19) Add or subtract any other amounts the taxpayer is:
1542	1545		35 (A) required to add or subtract; or
1543	1546		36 (B) entitled to deduct;
1544	1547		37 under IC 6-3-2.
1545	1548		38 (g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
1546	1549		39 IC 6-3-4-15 for taxable years beginning after December 31, 2022,
1547	1550		40 "adjusted gross income" of a pass through entity means the items of
1548	1551		41 ordinary income and loss in the case of a partnership or a corporation
1549	1552		42 described in IC 6-3-2-2.8(2), or distributions subject to tax for state and
1550	1553		ES 453—LS 7499/DI 120 35
1551	1554		1 federal income tax for beneficiaries in the case of a trust or estate,
1552	1555		2 whichever is applicable, for the taxable year modified as follows:
1553	1556		3 (1) Add the separately stated items of income and gains, or the
1554	1557		4 equivalent items that must be considered separately by a
1555	1558		5 beneficiary, as determined for federal purposes, attributed to the
1556	1559		6 partners, shareholders, or beneficiaries of the pass through entity,
1557	1560		7 determined without regard to whether the owner is permitted to
1558	1561		8 exclude all or part of the income or gain or deduct any amount
1559	1562		9 against the income or gain.
1560	1563		10 (2) Subtract the separately stated items of deductions or losses or
1561	1564		11 items that must be considered separately by beneficiaries, as
1562	1565		12 determined for federal purposes, attributed to partners,
1563	1566		13 shareholders, or beneficiaries of the pass through entity and that
1564	1567		14 are deductible by an individual in determining adjusted gross
1565	1568		15 income as defined under Section 62 of the Internal Revenue
1566	1569		16 Code:
1567	1570		17 (A) limited as if the partners, shareholders, and beneficiaries
1568	1571		18 deducted the maximum allowable loss or deduction allowable
1569	1572		19 for the taxable year prior to any amount deductible from the
1570	1573		20 pass through entity; but
1571	1574		21 (B) not considering any disallowance of deductions resulting
1572	1575		22 from federal basis limitations for the partner, shareholder, or
1573	1576		23 beneficiary.
1574	1577		24 (3) Add or subtract any modifications to adjusted gross income
1575	1578		25 that would be required both for individuals under subsection (a)
1576	1579		26 and corporations under subsection (b) to the extent otherwise
1577	1580		27 provided in those subsections, including amounts that are
1578	1581		28 allowable for which such modifications are necessary to account
1579	1582		29 for separately stated items in subdivision (1) or (2).
1580	1583		30 (h) Subsections (a)(36), (b)(22), (d)(20), (e)(20), or (f)(19) may not
1581	1584		31 be construed to require an add back or allow a deduction or exemption
1582	1585		32 more than once for a particular add back, deduction, or exemption.
1583	1586		33 (i) For taxable years beginning after December 25, 2016, if:
1584	1587		34 (1) a taxpayer is a shareholder, either directly or indirectly, in a
1585	1588		35 corporation that is an E&P deficit foreign corporation as defined
1586	1589		36 in Section 965(b)(3)(B) of the Internal Revenue Code, and the
1587	1590		37 earnings and profit deficit, or a portion of the earnings and profit
1588	1591		38 deficit, of the E&P deficit foreign corporation is permitted to
1589	1592		39 reduce the federal adjusted gross income or federal taxable
1590	1593		40 income of the taxpayer, the deficit, or the portion of the deficit,
1591	1594		41 shall also reduce the amount taxable under this section to the
1592	1595		42 extent permitted under the Internal Revenue Code, however, in no
1593	1596		ES 453—LS 7499/DI 120 36
1594	1597		1 case shall this permit a reduction in the amount taxable under
1595	1598		2 Section 965 of the Internal Revenue Code for purposes of this
1596	1599		3 section to be less than zero (0); and
1597	1600		4 (2) the Internal Revenue Service issues guidance that such an
1598	1601		5 income or deduction is not reported directly on a federal tax
1599	1602		6 return or is to be reported in a manner different than specified in
1600	1603		7 this section, this section shall be construed as if federal adjusted
1601	1604		8 gross income or federal taxable income included the income or
1602	1605		9 deduction.
1603	1606		10 (j) If a partner is required to include an item of income, a deduction,
1604	1607		11 or another tax attribute in the partner's adjusted gross income tax return
1605	1608		12 pursuant to IC 6-3-4.5, such item shall be considered to be includible
1606	1609		13 in the partner's federal adjusted gross income or federal taxable
1607	1610		14 income, regardless of whether such item is actually required to be
1608	1611		15 reported by the partner for federal income tax purposes. For purposes
1609	1612		16 of this subsection:
1610	1613		17 (1) items for which a valid election is made under IC 6-3-4.5-6,
1611	1614		18 IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
1612	1615		19 in the partner's adjusted gross income or taxable income; and
1613	1616		20 (2) items for which the partnership did not make an election under
1614	1617		21 IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
1615	1618		22 partnership is required to remit tax pursuant to IC 6-3-4.5-18,
1616	1619		23 shall be included in the partner's adjusted gross income or taxable
1617	1620		24 income.
1618	1621		25 (k) The following apply for purposes of this section:
1619	1622		26 (1) For purposes of subsections (b) and (f), if a taxpayer is an
1620	1623		27 organization that has more than one (1) trade or business subject
1621	1624		28 to the provisions of Section 512(a)(6) of the Internal Revenue
1622	1625		29 Code, the following rules apply for taxable years beginning after
1623	1626		30 December 31, 2017:
1624	1627		31 (A) If a trade or business has federal unrelated business
1625	1628		32 taxable income of zero (0) or greater for a taxable year, the
1626	1629		33 unrelated business taxable income and modifications required
1627	1630		34 under this section shall be combined in determining the
1628	1631		35 adjusted gross income of the taxpayer and shall not be treated
1629	1632		36 as being subject to the provisions of Section 512(a)(6) of the
1630	1633		37 Internal Revenue Code if one (1) or more trades or businesses
1631	1634		38 have negative Indiana adjusted gross income after
1632	1635		39 adjustments.
1633	1636		40 (B) If a trade or business has federal unrelated business
1634	1637		41 taxable income of less than zero (0) for a taxable year, the
1635	1638		42 taxpayer shall apply the modifications under this section for
1636	1639		ES 453—LS 7499/DI 120 37
1637	1640		1 the taxable year against the net operating loss in the manner
1638	1641		2 required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for separately
1639	1642		3 stated net operating losses. However, if the application of
1640	1643		4 modifications required under IC 6-3-2-2.5 or IC 6-3-2-2.6
1641	1644		5 results in the separately stated net operating loss for the trade
1642	1645		6 or business being zero (0), the modifications that increase
1643	1646		7 adjusted gross income under this section and remain after the
1644	1647		8 calculations to adjust the separately stated net operating loss
1645	1648		9 to zero (0) that result from the trade or business must be
1646	1649		10 treated as modifications to which clause (A) applies for the
1647	1650		11 taxable year.
1648	1651		12 (C) If a trade or business otherwise described in Section
1649	1652		13 512(a)(6) of the Internal Revenue Code incurred a net
1650	1653		14 operating loss for a taxable year beginning after December 31,
1651	1654		15 2017, and before January 1, 2021, and the net operating loss
1652	1655		16 was carried back for federal tax purposes:
1653	1656		17 (i) if the loss was carried back to a taxable year for which
1654	1657		18 the requirements under Section 512(a)(6) of the Internal
1655	1658		19 Revenue Code did not apply, the portion of the loss and
1656	1659		20 modifications attributable to the loss shall be treated as
1657	1660		21 adjusted gross income of the taxpayer for the first taxable
1658	1661		22 year of the taxpayer beginning after December 31, 2022, and
1659	1662		23 shall be treated as part of the adjusted gross income
1660	1663		24 attributable to clause (A), unless, and to the extent, the loss
1661	1664		25 and modifications were applied to adjusted gross income for
1662	1665		26 a previous taxable year, as determined under this article; and
1663	1666		27 (ii) if the loss was carried back to a taxable year for which
1664	1667		28 the requirements under Section 512(a)(6) of the Internal
1665	1668		29 Revenue Code applied, the portion of the loss and
1666	1669		30 modifications attributable to the loss shall be treated as
1667	1670		31 adjusted gross income of the taxpayer for the first taxable
1668	1671		32 year of the taxpayer beginning after December 31, 2022, and
1669	1672		33 for purposes of this clause, the inclusion of losses and
1670	1673		34 modifications shall be in the same manner as provided in
1671	1674		35 clause (B), unless, and to the extent, the loss and
1672	1675		36 modifications were applied to adjusted gross income for a
1673	1676		37 previous taxable year, as determined under this article.
1674	1677		38 (D) Notwithstanding any provision in this subdivision, if a
1675	1678		39 taxpayer computed its adjusted gross income for a taxable year
1676	1679		40 beginning before January 1, 2023, based on a reasonable
1677	1680		41 interpretation of this article, the taxpayer shall be permitted to
1678	1681		42 compute its adjusted gross income for those taxable years
1679	1682		ES 453—LS 7499/DI 120 38
1680	1683		1 based on that interpretation. However, a taxpayer must
1681	1684		2 continue to report any tax attributes for taxable years
1682	1685		3 beginning after December 31, 2022, in a manner consistent
1683	1686		4 with its previous interpretation.
1684	1687		5 (2) In the case of a corporation, other than a captive real estate
1685	1688		6 investment trust, for which the adjusted gross income under this
1686	1689		7 article is determined after a deduction for dividends paid under
1687	1690		8 the Internal Revenue Code, the modifications required under this
1688	1691		9 section shall be applied in ratio to the corporation's taxable
1689	1692		10 income (as defined in Section 63 of the Internal Revenue Code)
1690	1693		11 after deductions for dividends paid under the Internal Revenue
1691	1694		12 Code compared to the corporation's taxable income (as defined in
1692	1695		13 Section 63 of the Internal Revenue Code) before the deduction for
1693	1696		14 dividends paid under the Internal Revenue Code.
1694	1697		15 (3) In the case of a trust or estate, the trust or estate is required to
1695	1698		16 include only the portion of the modifications not passed through
1696	1699		17 to beneficiaries.
1697	1700		18 (4) In the case of a taxpayer for which modifications are required
1698	1701		19 to be applied against a separately stated net operating loss under
1699	1702		20 IC 6-3-2-2.5 or IC 6-3-2-2.6, the modifications required under this
1700	1703		21 section must be adjusted to reflect the required application of the
1701	1704		22 modifications against a separately stated net operating loss, in
1702	1705		23 order to avoid the application of a particular modification
1703	1706		24 multiple times.
1704	1707		25 SECTION 11. IC 6-3-1-41 IS ADDED TO THE INDIANA CODE
1705	1708		26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1706	1709		27 JANUARY 1, 2026]: Sec. 41. The term "investment partnership"
1707	1710		28 means a partnership for federal income tax purposes that meets
1708	1711		29 the following requirements:
1709	1712		30 (1) Not less than ninety percent (90%) of the partnership's
1710	1713		31 cost of its total assets consists of qualifying investment
1711	1714		32 securities, deposits at banks or other financial institutions,
1712	1715		33 and office space and equipment reasonably necessary to carry
1713	1716		34 on its activities as an investment partnership.
1714	1717		35 (2) Not less than ninety percent (90%) of the partnership's
1715	1718		36 gross income consists of interest, dividends, gains from the
1716	1719		37 sale or exchange of qualifying investment securities, and the
1717	1720		38 distributive share of partnership income from lower-tier
1718	1721		39 partnership interests meeting the definition of qualifying
1719	1722		40 investment security. For purposes of this subdivision, gross
1720	1723		41 income does not include income from partnerships that are
1721	1724		42 operating at a federal taxable loss. For purposes of this
1722	1725		ES 453—LS 7499/DI 120 39
1723	1726		1 subdivision, a partnership shall be treated as meeting the
1724	1727		2 percentage test set forth in this subdivision if the partnership
1725	1728		3 met the percentage test in three (3) of the five (5) most recent
1726	1729		4 taxable years, including the current taxable year.
1727	1730		5 (3) The partnership is not a dealer in qualifying investment
1728	1731		6 securities.
1729	1732		7 SECTION 12. IC 6-3-1-41.5 IS ADDED TO THE INDIANA CODE
1730	1733		8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1731	1734		9 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 41.5. "Indiana
1732	1735		10 investment interest payment" means a payment of investment
1733	1736		11 interest (as defined in Section 163(d) of the Internal Revenue Code)
1734	1737		12 made with respect to tangible property (other than electricity, gas,
1735	1738		13 steam, water, prewritten computer software, and specified digital
1736	1739		14 products) held for investment in Indiana. For purposes of
1737	1740		15 determining what constitutes an Indiana investment interest
1738	1741		16 payment:
1739	1742		17 (1) tangible property is considered to be held for investment
1740	1743		18 in Indiana if, in the case of real property, the property is
1741	1744		19 located in Indiana, and in the case of personal property, the
1742	1745		20 property is stored in Indiana;
1743	1746		21 (2) if the amounts of a taxpayer's total investment interest
1744	1747		22 payments made during a taxable year that are attributable to
1745	1748		23 both tangible property held for investment in Indiana and for
1746	1749		24 other investment property cannot be determined separately,
1747	1750		25 the amount considered an Indiana investment interest
1748	1751		26 payment for the taxable year is equal to the ratio of the
1749	1752		27 purchase price of the tangible property held for investment in
1750	1753		28 Indiana to the purchase price of all investment property; and
1751	1754		29 (3) in the case of a taxpayer who is subject to the limitations
1752	1755		30 in deducting investment interest under Section 163(d)(1) of
1753	1756		31 the Internal Revenue Code, the following apply:
1754	1757		32 (A) No amount of investment interest payments that, if not
1755	1758		33 for the limitation in Section 163(d)(1) of the Internal
1756	1759		34 Revenue Code, would have been first deductible in a
1757	1760		35 taxable year beginning before January 1, 2027, may be
1758	1761		36 considered an Indiana investment interest payment.
1759	1762		37 (B) The amount considered to be an Indiana investment
1760	1763		38 interest payment that is allowable as a deduction under
1761	1764		39 section 3.5(a)(38) of this chapter for a taxable year is the
1762	1765		40 lesser of:
1763	1766		41 (i) the amount of investment interest allowable under
1764	1767		42 Section 163(d)(1) of the Internal Revenue Code; or
1765	1768		ES 453—LS 7499/DI 120 40
1766	1769		1 (ii) the amount of the Indiana investment payment;
1767	1770		2 for the taxable year. However, if the amount described in
1768	1771		3 item (ii) is greater than the amount described in item (i) in
1769	1772		4 a taxable year, the difference shall be treated as an Indiana
1770	1773		5 investment interest payment in the following taxable year.
1771	1774		6 (C) In the case of a taxpayer who does not elect to claim
1772	1775		7 itemized deductions under Section 63(e) of the Internal
1773	1776		8 Revenue Code in a taxable year, the Indiana investment
1774	1777		9 interest payment amounts described in clause (B) must still
1775	1778		10 be determined, including any amounts that will be treated
1776	1779		11 as an Indiana investment interest payment in the following
1777	1780		12 taxable year.
1778	1781		13 SECTION 13. IC 6-3-1-42 IS ADDED TO THE INDIANA CODE
1779	1782		14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1780	1783		15 JANUARY 1, 2026]: Sec. 42. The term "qualifying investment
1781	1784		16 securities" means the following:
1782	1785		17 (1) Common stock, including preferred or debt securities
1783	1786		18 convertible into common stock, and preferred stock.
1784	1787		19 (2) Bonds, debentures, and other debt securities.
1785	1788		20 (3) Foreign and domestic currency deposits secured by
1786	1789		21 federal, state, or local governmental agencies.
1787	1790		22 (4) Mortgage or asset-backed securities secured by federal,
1788	1791		23 state, or local governmental agencies.
1789	1792		24 (5) Repurchase agreements and loan participations.
1790	1793		25 (6) Foreign currency exchange contracts and forward and
1791	1794		26 futures contracts on foreign currencies.
1792	1795		27 (7) Stock and bond index securities and futures contracts and
1793	1796		28 other similar financial securities and futures contracts on
1794	1797		29 those securities.
1795	1798		30 (8) Options for the purchase or sale of any of the securities,
1796	1799		31 currencies, contracts, or financial instruments described in
1797	1800		32 subdivisions (1) through (7).
1798	1801		33 (9) Regulated futures contracts.
1799	1802		34 (10) Commodities (not described in Section 1221(a)(1) of the
1800	1803		35 Internal Revenue Code) or futures, forwards, and options
1801	1804		36 with respect to such commodities, provided, however, that any
1802	1805		37 item of a physical commodity to which title is actually
1803	1806		38 acquired in the partnership's capacity as a dealer in such
1804	1807		39 commodity shall not be a qualifying investment security.
1805	1808		40 (11) Derivatives.
1806	1809		41 (12) A partnership interest in another partnership that is an
1807	1810		42 investment partnership.
1808	1811		ES 453—LS 7499/DI 120 41
1809	1812		1 (13) A partnership interest that, in the hands of the
1810	1813		2 partnership, qualifies as a security within the meaning of 15
1811	1814		3 U.S.C. 77b(a)(1).
1812	1815		4 SECTION 14. IC 6-3-1-43 IS ADDED TO THE INDIANA CODE
1813	1816		5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1814	1817		6 JANUARY 1, 2026]: Sec. 43. The term "qualifying investment
1815	1818		7 partnership income" means the adjusted gross income from
1816	1819		8 qualifying investment securities, excluding any income or loss from
1817	1820		9 an asset described in section 42(13) of this chapter.
1818	1821		10 SECTION 15. IC 6-3-2-3.3 IS ADDED TO THE INDIANA CODE
1819	1822		11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1820	1823		12 JANUARY 1, 2026]: Sec. 3.3. (a) As used in this section,
1821	1824		13 "nonresident partner" has the meaning set forth in IC 6-3-4-12(n).
1822	1825		14 (b) For all taxable years beginning after December 31, 2025, in
1823	1826		15 the case of an investment partnership:
1824	1827		16 (1) any qualifying investment partnership income that is
1825	1828		17 distributable to a nonresident partner shall be allocated to the
1826	1829		18 partner's state of residence (in the case of an individual,
1827	1830		19 estate, or trust) or commercial domicile (in the case of any
1828	1831		20 corporation or other entity) for purposes of section 2 of this
1829	1832		21 chapter; and
1830	1833		22 (2) any qualifying investment partnership income that is
1831	1834		23 distributable to a nonresident partner shall be treated as
1832	1835		24 business income and apportioned as if such income had been
1833	1836		25 received directly by the partner if such income is from
1834	1837		26 investment activity:
1835	1838		27 (A) that is directly or integrally related to any other
1836	1839		28 business activity conducted in this state by the nonresident
1837	1840		29 partner (or another corporation or entity that is unitary
1838	1841		30 with the partner);
1839	1842		31 (B) that serves an operational function to any other
1840	1843		32 business activity of the nonresident partner (or another
1841	1844		33 corporation or entity that is unitary with the partner); or
1842	1845		34 (C) where assets of the investment partnership were
1843	1846		35 acquired with working capital from a trade or business
1844	1847		36 activity conducted in this state in which the nonresident
1845	1848		37 partner (or another corporation or entity that is unitary
1846	1849		38 with the partner) owns an interest.
1847	1850		39 (c) For purposes of this section, the following apply:
1848	1851		40 (1) If an entity is permitted to allocate qualifying investment
1849	1852		41 partnership income under subsection (b)(1), the entity shall
1850	1853		42 exclude the receipts derived from the investment partnership
1851	1854		ES 453—LS 7499/DI 120 42
1852	1855		1 and attributable to the investment partnership income from
1853	1856		2 the denominator of the sales factor in section 2(e) of this
1854	1857		3 chapter.
1855	1858		4 (2) If an entity is required to treat qualifying investment
1856	1859		5 partnership income as apportionable income, the entity's
1857	1860		6 share of receipts from the investment partnership and
1858	1861		7 attributable to the investment partnership shall be included
1859	1862		8 in the denominator of the sales factor and attributed to the
1860	1863		9 entity's state of domicile for purposes of section 2(e) of this
1861	1864		10 chapter.
1862	1865		11 (3) For purposes of subsection (b)(2), a corporation or other
1863	1866		12 entity shall be treated as unitary with the partner if the
1864	1867		13 partner and the corporation or other entity would be required
1865	1868		14 to be included in a combined income tax return under this
1866	1869		15 article, determined as if all relevant entities are subject to tax
1867	1870		16 under this article as corporations and are not corporations
1868	1871		17 described in section 2.4 of this chapter. However, in the case
1869	1872		18 of a partner and a corporate partnership, a unitary
1870	1873		19 relationship shall be determined without regard to the
1871	1874		20 corporate partner's percentage of ownership of the
1872	1875		21 partnership.
1873	1876		22 (4) Nothing in this section shall affect the apportionment and
1874	1877		23 allocation of income and receipts derived from partnerships
1875	1878		24 other than qualified investment partnership income from
1876	1879		25 investment partnerships.
1877	1880		26 (5) If a nonresident person, corporation, or other entity
1878	1881		27 reasonably determines that it received qualified investment
1879	1882		28 partnership income from an investment partnership and the
1880	1883		29 partnership is determined to not be an investment
1881	1884		30 partnership, the person, corporation, or entity shall be
1882	1885		31 relieved of any penalty under IC 6-3-4-4.1, IC 6-5.5-7-1, or
1883	1886		32 IC 6-8.1-10-2.1(b) resulting from the underpayment.
1884	1887		33 SECTION 16. IC 6-3-2-3.7, AS AMENDED BY P.L.250-2015,
1885	1888		34 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1886	1889		35 JULY 1, 2025]: Sec. 3.7. (a) Each taxable year, an individual or the
1887	1890		36 individual's surviving spouse is entitled to an adjusted gross income tax
1888	1891		37 deduction equal to the remainder of:
1889	1892		38 (1) the:
1890	1893		39 (A) first eight thousand dollars ($8,000), for taxable years
1891	1894		40 beginning after December 31, 2014, and before January 1,
1892	1895		41 2016; and
1893	1896		42 (B) first sixteen thousand dollars ($16,000), for taxable years
1894	1897		ES 453—LS 7499/DI 120 43
1895	1898		1 beginning after December 31, 2015, and before January 1,
1896	1899		2 2028; and
1897	1900		3 (C) first twenty-two thousand dollars ($22,000), for taxable
1898	1901		4 years beginning after December 31, 2027;
1899	1902		5 which is received by the individual or the individual's surviving
1900	1903		6 spouse during the taxable year from a federal civil service
1901	1904		7 annuity, and which is included in adjusted gross income under
1902	1905		8 Section 62 of the Internal Revenue Code; minus
1903	1906		9 (2) the total amount of Social Security benefits and railroad
1904	1907		10 retirement benefits received by the individual or the individual's
1905	1908		11 surviving spouse during the taxable year.
1906	1909		12 (b) The individual is only entitled to the deduction provided by this
1907	1910		13 section if the individual is at least sixty-two (62) years of age before the
1908	1911		14 end of the taxable year. This subsection does not apply to the
1909	1912		15 individual's surviving spouse.
1910	1913		16 SECTION 17. IC 6-3-2.1-4, AS AMENDED BY P.L.118-2024,
1911	1914		17 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1912	1915		18 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) A tax shall be
1913	1916		19 imposed on the adjusted gross income of an electing entity for the
1914	1917		20 taxable year of the election. The adjusted gross income of the electing
1915	1918		21 entity shall be the aggregate of the direct owners' share of the electing
1916	1919		22 entity's adjusted gross income. For purposes of this section:
1917	1920		23 (1) the electing entity shall determine each nonresident direct
1918	1921		24 owner's share after allocation and apportionment pursuant to
1919	1922		25 IC 6-3-2-2; and
1920	1923		26 (2) the electing entity shall determine the resident direct owner's
1921	1924		27 share either:
1922	1925		28 (A) before allocation and apportionment pursuant to
1923	1926		29 IC 6-3-2-2; or
1924	1927		30 (B) after allocation and apportionment pursuant to IC 6-3-2-2.
1925	1928		31 The electing entity must use the same method for all resident
1926	1929		32 direct owners.
1927	1930		33 (b) The tax rate shall be the tax rate specified in IC 6-3-2-1(b) as of
1928	1931		34 the last day of the electing entity's taxable year, and the tax shall be due
1929	1932		35 on the same date as the entity return for the taxable year is due under
1930	1933		36 this article, without regard to extensions.
1931	1934		37 (c) On its return for the taxable year, the electing entity shall attach
1932	1935		38 a schedule showing the calculation of the tax and the credit for each
1933	1936		39 direct owner, and remit the tax with the return, taking into account
1934	1937		40 prior estimated tax payments and other tax payments by the electing
1935	1938		41 entity, along with other payments that are credited to the electing entity
1936	1939		42 as tax paid under this chapter or as tax withheld under IC 6-3-4 or
1937	1940		ES 453—LS 7499/DI 120 44
1938	1941		1 IC 6-5.5-2-8. The department may prescribe the form for providing the
1939	1942		2 information required by this section.
1940	1943		3 (d) If a pass through entity makes estimated tax payments, makes
1941	1944		4 other tax payments, or has other payments that are credited to the
1942	1945		5 electing entity as tax paid under this chapter or a tax withheld under
1943	1946		6 IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
1944	1947		7 election under section 3 of this chapter, the pass through entity:
1945	1948		8 (1) may treat pass through entity tax remitted on its behalf under
1946	1949		9 this chapter as pass through entity tax to its direct owners,
1947	1950		10 provided that:
1948	1951		11 (A) the tax is designated on a schedule similar to the schedule
1949	1952		12 required under subsection (c) and is reported to the direct
1950	1953		13 owners in the manner provided in section 5 of this chapter; and
1951	1954		14 (B) the pass through entity credits an amount to a direct owner
1952	1955		15 no greater than the tax that otherwise would be due under this
1953	1956		16 chapter on their share of the adjusted gross income from the
1954	1957		17 pass through entity or the direct owner's portion (as
1955	1958		18 determined under subsection (a)) of the pass through entity tax
1956	1959		19 passed through to the pass through entity, whichever is greater
1957	1960		20 (for purposes of this clause, a trust or estate shall compute the
1958	1961		21 tax in the same manner as an electing entity);
1959	1962		22 (2) shall treat any payment other than a payment designated under
1960	1963		23 subdivision (1) as a withholding tax payment under IC 6-3-4-12,
1961	1964		24 IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
1962	1965		25 through entity otherwise has not remitted or been credited with
1963	1966		26 such withholding; and
1964	1967		27 (3) may request a refund of any payment in excess of the amounts
1965	1968		28 credited or designated under subdivision (1) or (2).
1966	1969		29 (e) If a pass through entity elects to be subject to tax under this
1967	1970		30 chapter and the pass through entity determines that its tax is less than
1968	1971		31 the pass through entity tax that is paid on its behalf, the pass through
1969	1972		32 entity may treat the tax paid on its behalf in a manner similar to
1970	1973		33 subsection (d). However, the pass through entity may not treat an
1971	1974		34 amount less than its own liability under this chapter as pass through
1972	1975		35 entity tax under subsection (d)(1).
1973	1976		36 SECTION 18. IC 6-3-2.1-5, AS ADDED BY P.L.1-2023, SECTION
1974	1977		37 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
1975	1978		38 1, 2025 (RETROACTIVE)]: Sec. 5. (a) Each electing entity shall
1976	1979		39 compute each direct owner's share of the tax imposed by section 4 of
1977	1980		40 this chapter and reflect that amount in the form and manner prescribed
1978	1981		41 by the department.
1979	1982		42 (b) Each entity owner shall be entitled to a refundable credit in an
1980	1983		ES 453—LS 7499/DI 120 45
1981	1984		1 amount equal to the amount of tax under this chapter credited to the
1982	1985		2 entity owner.
1983	1986		3 (c) All other credits arising from the operations of the electing
1984	1987		4 entity, or which are passed through to or assigned to the electing entity,
1985	1988		5 shall pass through to the entity owners as provided in this article or
1986	1989		6 IC 6-3.1 and shall not apply to the tax imposed in section 4 of this
1987	1990		7 chapter. All such other credits shall apply before the application of the
1988	1991		8 pass through entity tax credit. This subsection also applies to pass
1989	1992		9 through entities that pass the tax under this chapter through to their
1990	1993		10 owners. However, this subsection shall not limit the ability of an
1991	1994		11 electing entity or pass through entity to claim credit for taxes withheld
1992	1995		12 or paid on the entity's behalf.
1993	1996		13 (c) An electing entity or pass through entity shall be permitted
1994	1997		14 to claim a credit for taxes withheld or paid on the entity's behalf.
1995	1998		15 (d) An electing entity that has direct owners that would be
1996	1999		16 permitted to claim a credit under IC 6-3-3-3 for taxes paid to
1997	2000		17 another state with regard to a taxable year may elect to claim a
1998	2001		18 credit under this chapter for:
1999	2002		19 (1) an amount equal to the income of a resident direct owner
2000	2003		20 attributable to a state other than Indiana multiplied by the
2001	2004		21 rate imposed by IC 6-3-2-1(a) or maximum individual income
2002	2005		22 tax rate imposed by that other state, whichever rate is less, if:
2003	2006		23 (A) the electing entity makes an election to tax resident
2004	2007		24 direct owners in the manner prescribed in section
2005	2008		25 4(a)(2)(A) of this chapter; and
2006	2009		26 (B) the other state grants a credit to the Indiana residents
2007	2010		27 substantially similar to the credit as provided under
2008	2011		28 IC 6-3-3-3; and
2009	2012		29 (2) an amount equal to the income attributable to Indiana
2010	2013		30 multiplied by the rate imposed by IC 6-3-2-1(a) or the
2011	2014		31 maximum individual income tax rate by the nonresident
2012	2015		32 direct owner's state of residence, whichever rate is less, if the
2013	2016		33 nonresident direct owner would be permitted a credit under
2014	2017		34 IC 6-3-3-3(b) for the income attributable to Indiana and
2015	2018		35 derived from the electing entity.
2016	2019		36 (e) An electing entity may elect to claim a credit for any credit
2017	2020		37 under IC 6-3-3 or IC 6-3.1, other than the credits under
2018	2021		38 subsections (b) through (d), and arising from the operations of the
2019	2022		39 electing entity, or which are passed through to or assigned to the
2020	2023		40 electing entity for the taxable year. For purposes of this subsection,
2021	2024		41 the following apply:
2022	2025		42 (1) The credit must be allowable to pass through to the direct
2023	2026		ES 453—LS 7499/DI 120 46
2024	2027		1 owners of the electing entity under the provisions of the
2025	2028		2 credit.
2026	2029		3 (2) The credit must be first allowable to the direct owners of
2027	2030		4 the pass through entity in a taxable year ending on or after
2028	2031		5 the taxable year of the electing entity.
2029	2032		6 (3) The amount of the credit that the entity may claim against
2030	2033		7 the tax attributable to any direct owner under subsection (a)
2031	2034		8 may not exceed the credit that is available to be passed
2032	2035		9 through to the direct owner.
2033	2036		10 (f) For purposes of subsections (d) and (e), the following apply:
2034	2037		11 (1) The elections under subsections (d) and (e) are separate
2035	2038		12 elections to which the following apply:
2036	2039		13 (A) An election under subsection (e) applies to all credits
2037	2040		14 other than the credits described in subsections (b) through
2038	2041		15 (d). No allowance for an election to apply to one (1) or
2039	2042		16 more credits and to not apply to one (1) or more credits is
2040	2043		17 permitted.
2041	2044		18 (B) The election to claim the credits under subsections (d)
2042	2045		19 and (e) must be made on the original return filed by the
2043	2046		20 electing entity. A failure to claim a credit shall be treated
2044	2047		21 as if the credit was not allowable to the electing entity.
2045	2048		22 (C) An election to apply a credit applies to the tax for all
2046	2049		23 direct owners of the electing entity, provided that an
2047	2050		24 election under subsection (d) applies only to direct owners
2048	2051		25 that are individuals, estates, or trusts.
2049	2052		26 (2) If an electing entity claims credits under both subsections
2050	2053		27 (d) and (e), the electing entity shall apply the credit under
2051	2054		28 subsection (d) first, then any amount allowable under
2052	2055		29 subsection (e).
2053	2056		30 (3) The sum of the credits attributable to a direct owner of an
2054	2057		31 electing entity shall not exceed the tax computed by the
2055	2058		32 electing entity for the direct owner under this chapter.
2056	2059		33 (4) A provision under IC 6-3-3 or IC 6-3.1 requiring a credit
2057	2060		34 to be passed through shall not prevent an electing entity from
2058	2061		35 applying the credit against the tax imposed under this
2059	2062		36 chapter.
2060	2063		37 (5) An entity owner shall be permitted to claim any credit
2061	2064		38 otherwise allowable to the owner to the extent otherwise
2062	2065		39 permitted by IC 6-3-3 or IC 6-3.1.
2063	2066		40 SECTION 19. IC 6-3-2.1-6, AS ADDED BY P.L.1-2023, SECTION
2064	2067		41 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
2065	2068		42 1, 2026]: Sec. 6. (a) Except as otherwise provided in this section, an
2066	2069		ES 453—LS 7499/DI 120 47
2067	2070		1 electing entity shall be subject to the obligation to make estimated tax
2068	2071		2 payments under this article for the tax imposed under section 4 of this
2069	2072		3 chapter in the same manner as applicable to corporations under
2070	2073		4 IC 6-3-4-4.1(c). IC 6-3-4-4.2(b).
2071	2074		5 (b) For taxable years ending on or before June 30, 2023, an electing
2072	2075		6 entity is not required to make estimated tax payments.
2073	2076		7 (c) For taxable years ending after June 30, 2023, and on or before
2074	2077		8 December 31, 2024, an electing entity shall make an estimated tax
2075	2078		9 payment for the taxable years on or before the end of the taxable year.
2076	2079		10 There shall be no penalty for underpayment of estimated tax, except to
2077	2080		11 the extent the underpayment fails to equal or exceed fifty percent
2078	2081		12 (50%) of the tax imposed by section 4 of this chapter for the taxable
2079	2082		13 year.
2080	2083		14 (d) For taxable years ending after December 31, 2024, there shall be
2081	2084		15 no penalty for underpayment of estimated tax, except to the extent the
2082	2085		16 payments during the taxable year fail to equal or exceed the lesser of
2083	2086		17 eighty percent (80%) of the tax imposed under this chapter for the
2084	2087		18 taxable year or one hundred percent (100%) of the tax imposed under
2085	2088		19 this chapter for the preceding taxable year.
2086	2089		20 (e) In the event of an underpayment under subsection (c) or (d), the
2087	2090		21 electing entity shall be subject to a penalty in the amount prescribed
2088	2091		22 under IC 6-8.1-10-2.1(b) on the amount of the underpayment.
2089	2092		23 SECTION 20. IC 6-3-3-12, AS AMENDED BY P.L.236-2023,
2090	2093		24 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2091	2094		25 JANUARY 1, 2026]: Sec. 12. (a) As used in this section, "account" has
2092	2095		26 the meaning set forth in IC 21-9-2-2.
2093	2096		27 (b) As used in this section, "account beneficiary" has the meaning
2094	2097		28 set forth in IC 21-9-2-3.
2095	2098		29 (c) As used in this section, "account owner" has the meaning set
2096	2099		30 forth in IC 21-9-2-4.
2097	2100		31 (d) As used in this section, "college choice 529 "Indiana529
2098	2101		32 education savings plan" refers to a college choice 529 an Indiana529
2099	2102		33 plan established under IC 21-9.
2100	2103		34 (e) As used in this section, "contribution" means the amount of
2101	2104		35 money directly provided to a college choice 529 education savings an
2102	2105		36 Indiana529 plan account by a taxpayer. A contribution does not
2103	2106		37 include any of the following:
2104	2107		38 (1) Money credited to an account as a result of bonus points or
2105	2108		39 other forms of consideration earned by the taxpayer that result in
2106	2109		40 a transfer of money to the account.
2107	2110		41 (2) Money transferred from any other qualified tuition program
2108	2111		42 under Section 529 of the Internal Revenue Code or from any other
2109	2112		ES 453—LS 7499/DI 120 48
2110	2113		1 similar plan.
2111	2114		2 (3) Money transferred from any qualified ABLE program under
2112	2115		3 Section 529A of the Internal Revenue Code or any other similar
2113	2116		4 plan.
2114	2117		5 (f) As used in this section, "nonqualified withdrawal" means a
2115	2118		6 withdrawal or distribution from a college choice 529 education savings
2116	2119		7 an Indiana529 plan that is not a qualified withdrawal.
2117	2120		8 (g) As used in this section, "qualified higher education expenses"
2118	2121		9 has the meaning set forth in IC 21-9-2-19.5, except that the term does
2119	2122		10 not include qualified education loan repayments under Section
2120	2123		11 529(c)(9) of the Internal Revenue Code.
2121	2124		12 (h) As used in this section, "qualified K-12 education expenses"
2122	2125		13 means expenses that are for tuition in connection with enrollment or
2123	2126		14 attendance at an elementary or secondary public, private, or religious
2124	2127		15 school located in Indiana and are permitted under Section 529 of the
2125	2128		16 Internal Revenue Code.
2126	2129		17 (i) As used in this section, "qualified withdrawal" means a
2127	2130		18 withdrawal or distribution from a college choice 529 education savings
2128	2131		19 an Indiana529 plan that is made:
2129	2132		20 (1) to pay for qualified higher education expenses, excluding any
2130	2133		21 withdrawals or distributions used to pay for qualified higher
2131	2134		22 education expenses, if the withdrawals or distributions are made
2132	2135		23 from an account of a college choice 529 education savings an
2133	2136		24 Indiana529 plan that is terminated within twelve (12) months
2134	2137		25 after the account is opened;
2135	2138		26 (2) as a result of the death or disability of an account beneficiary;
2136	2139		27 (3) because an account beneficiary received a scholarship that
2137	2140		28 paid for all or part of the qualified higher education expenses of
2138	2141		29 the account beneficiary, to the extent that the withdrawal or
2139	2142		30 distribution does not exceed the amount of the scholarship; or
2140	2143		31 (4) by a college choice 529 education savings an Indiana529
2141	2144		32 plan as the result of a transfer of funds by a college choice 529
2142	2145		33 education savings an Indiana529 plan from one (1) third party
2143	2146		34 custodian to another.
2144	2147		35 However, a qualified withdrawal does not include a withdrawal or
2145	2148		36 distribution that will be used for expenses that are for tuition in
2146	2149		37 connection with enrollment or attendance at an elementary or
2147	2150		38 secondary public, private, or religious school unless the school is
2148	2151		39 located in Indiana. A qualified withdrawal does not include a rollover
2149	2152		40 distribution or transfer of assets from a college choice 529 education
2150	2153		41 savings an Indiana529 plan to any other qualified tuition program
2151	2154		42 under Section 529 of the Internal Revenue Code, to any qualified
2152	2155		ES 453—LS 7499/DI 120 49
2153	2156		1 ABLE program under Section 529A other than an Indiana ABLE 529A
2154	2157		2 savings plan adopted by the state under IC 12-11, or to any other
2155	2158		3 similar plan.
2156	2159		4 (j) As used in this section, "taxpayer" means:
2157	2160		5 (1) an individual filing a single return;
2158	2161		6 (2) a married couple filing a joint return; or
2159	2162		7 (3) for taxable years beginning after December 31, 2019, a
2160	2163		8 married individual filing a separate return.
2161	2164		9 (k) A taxpayer is entitled to a credit against the taxpayer's adjusted
2162	2165		10 gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
2163	2166		11 year equal to the least of the following:
2164	2167		12 (1) The following amount:
2165	2168		13 (A) For taxable years beginning before January 1, 2019, the
2166	2169		14 sum of twenty percent (20%) multiplied by the amount of the
2167	2170		15 total contributions that are made by the taxpayer to an account
2168	2171		16 or accounts of a college choice 529 education savings plan
2169	2172		17 during the taxable year and that will be used to pay for
2170	2173		18 qualified higher education expenses that are not qualified K-12
2171	2174		19 education expenses, plus the lesser of:
2172	2175		20 (i) five hundred dollars ($500); or
2173	2176		21 (ii) ten percent (10%) multiplied by the amount of the total
2174	2177		22 contributions that are made by the taxpayer to an account or
2175	2178		23 accounts of a college choice 529 education savings plan
2176	2179		24 during the taxable year and that will be used to pay for
2177	2180		25 qualified K-12 education expenses.
2178	2181		26 (B) For taxable years beginning after December 31, 2018, the
2179	2182		27 sum of:
2180	2183		28 (i) twenty percent (20%) multiplied by the amount of the
2181	2184		29 total contributions that are made by the taxpayer to an
2182	2185		30 account or accounts of a college choice 529 education
2183	2186		31 savings plan during the taxable year and that are designated
2184	2187		32 to pay for qualified higher education expenses that are not
2185	2188		33 qualified K-12 education expenses; plus
2186	2189		34 (ii) twenty percent (20%) multiplied by the amount of the
2187	2190		35 total contributions that are made by the taxpayer to an
2188	2191		36 account or accounts of a college choice 529 education
2189	2192		37 savings plan during the taxable year and that are designated
2190	2193		38 to pay for qualified K-12 education expenses.
2191	2194		39 (1) Twenty percent (20%) multiplied by the amount of the
2192	2195		40 total contributions that are made by the taxpayer to an
2193	2196		41 account or accounts of an Indiana529 plan during the taxable
2194	2197		42 year.
2195	2198		ES 453—LS 7499/DI 120 50
2196	2199		1 (2) One thousand five hundred dollars ($1,500), or seven hundred
2197	2200		2 fifty dollars ($750) in the case of a married individual filing a
2198	2201		3 separate return.
2199	2202		4 (3) The amount of the taxpayer's adjusted gross income tax
2200	2203		5 imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
2201	2204		6 reduced by the sum of all credits (as determined without regard to
2202	2205		7 this section) allowed by IC 6-3-1 through IC 6-3-7.
2203	2206		8 (l) This subsection applies after December 31, 2018. At the time a
2204	2207		9 contribution is made to or a withdrawal is made from an account or
2205	2208		10 accounts of a college choice 529 education savings plan, the person
2206	2209		11 making the contribution or withdrawal shall designate whether the
2207	2210		12 contribution is made for or the withdrawal will be used for:
2208	2211		13 (1) qualified higher education expenses that are not qualified
2209	2212		14 K-12 education expenses; or
2210	2213		15 (2) qualified K-12 education expenses.
2211	2214		16 The Indiana education savings authority (IC 21-9-3) shall use
2212	2215		17 subaccounting to track the designations.
2213	2216		18 (m) (l) A taxpayer who makes a contribution to a college choice 529
2214	2217		19 education savings an Indiana529 plan is considered to have made the
2215	2218		20 contribution on the date that:
2216	2219		21 (1) the taxpayer's contribution is postmarked or accepted by a
2217	2220		22 delivery service, for contributions that are submitted to a college
2218	2221		23 choice 529 education savings an Indiana529 plan by mail or
2219	2222		24 delivery service; or
2220	2223		25 (2) the taxpayer's electronic funds transfer is initiated, for
2221	2224		26 contributions that are submitted to a college choice 529 education
2222	2225		27 savings an Indiana529 plan by electronic funds transfer.
2223	2226		28 (n) (m) A taxpayer is not entitled to a carryback, carryover, or
2224	2227		29 refund of an unused credit.
2225	2228		30 (o) (n) A taxpayer may not sell, assign, convey, or otherwise transfer
2226	2229		31 the tax credit provided by this section.
2227	2230		32 (p) (o) To receive the credit provided by this section, a taxpayer
2228	2231		33 must claim the credit on the taxpayer's annual state tax return or returns
2229	2232		34 in the manner prescribed by the department. The taxpayer shall submit
2230	2233		35 to the department all information that the department determines is
2231	2234		36 necessary for the calculation of the credit provided by this section.
2232	2235		37 (q) (p) An account owner of an account of a college choice 529
2233	2236		38 education savings an Indiana529 plan must repay all or a part of the
2234	2237		39 credit in a taxable year in which any nonqualified withdrawal is made
2235	2238		40 from the account. The amount the taxpayer must repay is equal to the
2236	2239		41 lesser of:
2237	2240		42 (1) twenty percent (20%) of the total amount of nonqualified
2238	2241		ES 453—LS 7499/DI 120 51
2239	2242		1 withdrawals made during the taxable year from the account; or
2240	2243		2 (2) the excess of:
2241	2244		3 (A) the cumulative amount of all credits provided by this
2242	2245		4 section that are claimed by any taxpayer with respect to the
2243	2246		5 taxpayer's contributions to the account for all prior taxable
2244	2247		6 years beginning on or after January 1, 2007; over
2245	2248		7 (B) the cumulative amount of repayments paid by the account
2246	2249		8 owner under this subsection for all prior taxable years
2247	2250		9 beginning on or after January 1, 2008.
2248	2251		10 (r) (q) Any required repayment under subsection (q) (p) shall be
2249	2252		11 reported by the account owner on the account owner's annual state
2250	2253		12 income tax return for any taxable year in which a nonqualified
2251	2254		13 withdrawal is made.
2252	2255		14 (s) (r) A nonresident account owner who is not required to file an
2253	2256		15 annual income tax return for a taxable year in which a nonqualified
2254	2257		16 withdrawal is made shall make any required repayment on the form
2255	2258		17 required under IC 6-3-4-1(2). If the nonresident account owner does
2256	2259		18 not make the required repayment, the department shall issue a demand
2257	2260		19 notice in accordance with IC 6-8.1-5-1.
2258	2261		20 (t) (s) The executive director of the Indiana education savings
2259	2262		21 authority shall submit or cause to be submitted to the department a
2260	2263		22 copy of all information returns or statements issued to account owners,
2261	2264		23 account beneficiaries, and other taxpayers for each taxable year with
2262	2265		24 respect to:
2263	2266		25 (1) nonqualified withdrawals made from accounts, including
2264	2267		26 subaccounts of a college choice 529 education savings an
2265	2268		27 Indiana529 plan for the taxable year; or
2266	2269		28 (2) account closings for the taxable year.
2267	2270		29 (u) (t) The following apply to contributions made after December
2268	2271		30 31, 2023:
2269	2272		31 (1) For purposes of this section, all or part of a contribution made
2270	2273		32 after the end of a taxable year, and not later than the due date of
2271	2274		33 the taxpayer's adjusted gross income tax return for the taxable
2272	2275		34 year under this article (as determined without regard to any
2273	2276		35 allowable extensions), shall be considered as having been made
2274	2277		36 during the taxable year preceding the contribution if:
2275	2278		37 (A) the taxpayer elects to treat all or part of a contribution as
2276	2279		38 occurring in the taxable year preceding the contribution;
2277	2280		39 (B) the taxpayer designates the amounts of the contribution to
2278	2281		40 be treated as occurring in each taxable year, in the case of a
2279	2282		41 single contribution that is to be allowable under this section in
2280	2283		42 two (2) separate years; and
2281	2284		ES 453—LS 7499/DI 120 52
2282	2285		1 (C) the taxpayer irrevocably waives the right to claim the
2283	2286		2 contribution claimed in the taxable year preceding the
2284	2287		3 contribution as occurring in the taxable year of the
2285	2288		4 contribution.
2286	2289		5 (2) The Indiana education savings authority may prescribe any
2287	2290		6 forms necessary for purposes of this subsection.
2288	2291		7 SECTION 21. IC 6-3-3-12.1, AS AMENDED BY P.L.236-2023,
2289	2292		8 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2290	2293		9 JANUARY 1, 2026]: Sec. 12.1. (a) As used in this section, "ABLE
2291	2294		10 account" has the meaning set forth in IC 12-11-14-1.
2292	2295		11 (b) As used in this section, "contribution" means the amount of
2293	2296		12 money directly provided to an Indiana ABLE 529A savings plan
2294	2297		13 account by a taxpayer. A contribution does not include any of the
2295	2298		14 following:
2296	2299		15 (1) Money credited to an ABLE account as a result of bonus
2297	2300		16 points or other forms of consideration earned by the taxpayer that
2298	2301		17 result in a transfer of money to the ABLE account.
2299	2302		18 (2) Money transferred from any qualified ABLE program under
2300	2303		19 Section 529A of the Internal Revenue Code or from any other
2301	2304		20 similar plan.
2302	2305		21 (3) Money transferred from any qualified tuition program under
2303	2306		22 Section 529 of the Internal Revenue Code or from any other
2304	2307		23 similar plan.
2305	2308		24 (c) As used in this section, "designated beneficiary" has the meaning
2306	2309		25 set forth in IC 12-11-14-5.
2307	2310		26 (d) As used in this section, "Indiana ABLE 529A savings plan"
2308	2311		27 refers to the Achieving a Better Life Experience (ABLE) 529A plan
2309	2312		28 established under IC 12-11.
2310	2313		29 (e) As used in this section, "nonqualified withdrawal" means a
2311	2314		30 withdrawal or distribution from an Indiana ABLE 529A savings plan
2312	2315		31 that is not a qualified withdrawal.
2313	2316		32 (f) As used in this section, "qualified disability expense" has the
2314	2317		33 meaning set forth in IC 12-11-14-8.
2315	2318		34 (g) As used in this section, "qualified withdrawal" means a
2316	2319		35 withdrawal or distribution from an Indiana ABLE 529A savings plan
2317	2320		36 that is made:
2318	2321		37 (1) to pay for qualified disability expenses, excluding any
2319	2322		38 withdrawals or distributions used to pay for qualified disability
2320	2323		39 expenses, if the withdrawals or distributions are made from an
2321	2324		40 Indiana ABLE 529A savings plan that is terminated within twelve
2322	2325		41 (12) months after the ABLE account is opened;
2323	2326		42 (2) as a result of the death of a designated beneficiary; or
2324	2327		ES 453—LS 7499/DI 120 53
2325	2328		1 (3) by an Indiana ABLE 529A savings plan as the result of a
2326	2329		2 transfer of funds by an Indiana ABLE 529A savings plan from
2327	2330		3 one (1) third party custodian to another.
2328	2331		4 A qualified withdrawal does not include a rollover distribution or
2329	2332		5 transfer of assets from an Indiana ABLE 529A savings plan to any
2330	2333		6 other qualified ABLE program under Section 529A of the Internal
2331	2334		7 Revenue Code, or to any qualified tuition program under Section 529
2332	2335		8 of the Internal Revenue Code other than a college choice 529 education
2333	2336		9 savings plan an Indiana529 plan established under IC 21-9, or to any
2334	2337		10 other similar plan.
2335	2338		11 (h) As used in this section, "taxpayer" means:
2336	2339		12 (1) an individual filing a single return;
2337	2340		13 (2) a married couple filing a joint return; or
2338	2341		14 (3) a married individual filing a separate return.
2339	2342		15 (i) A taxpayer is entitled to a credit against the taxpayer's adjusted
2340	2343		16 gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable
2341	2344		17 year equal to the least of the following:
2342	2345		18 (1) Twenty percent (20%) of the amount of the total contributions
2343	2346		19 made by the taxpayer to an ABLE account or accounts of an
2344	2347		20 Indiana ABLE 529A savings plan during the taxable year.
2345	2348		21 (2) Five hundred dollars ($500).
2346	2349		22 (3) The amount of the taxpayer's adjusted gross income tax
2347	2350		23 imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
2348	2351		24 reduced by the sum of all credits (as determined without regard to
2349	2352		25 this section) allowed by IC 6-3-1 through IC 6-3-7.
2350	2353		26 (j) A taxpayer is not entitled to a carryback, carryover, or refund of
2351	2354		27 an unused credit.
2352	2355		28 (k) A taxpayer may not sell, assign, convey, or otherwise transfer the
2353	2356		29 tax credit provided by this section.
2354	2357		30 (l) To receive the credit provided by this section, a taxpayer must
2355	2358		31 claim the credit on the taxpayer's annual state tax return or returns in
2356	2359		32 the manner prescribed by the department. The taxpayer shall submit to
2357	2360		33 the department all information that the department determines is
2358	2361		34 necessary for the calculation of the credit provided by this section.
2359	2362		35 (m) An owner of an ABLE account of an Indiana ABLE 529A
2360	2363		36 savings plan must repay all or a part of the credit in a taxable year in
2361	2364		37 which any nonqualified withdrawal is made from the ABLE account.
2362	2365		38 The amount the taxpayer must repay is equal to the lesser of:
2363	2366		39 (1) twenty percent (20%) of the total amount of nonqualified
2364	2367		40 withdrawals made during the taxable year from the ABLE
2365	2368		41 account; or
2366	2369		42 (2) the excess of:
2367	2370		ES 453—LS 7499/DI 120 54
2368	2371		1 (A) the cumulative amount of all credits provided by this
2369	2372		2 section that are claimed by any taxpayer with respect to the
2370	2373		3 taxpayer's contributions to the ABLE account for all prior
2371	2374		4 taxable years; over
2372	2375		5 (B) the cumulative amount of repayments paid by the owner of
2373	2376		6 the ABLE account under this subsection for all prior taxable
2374	2377		7 years.
2375	2378		8 (n) Any required repayment under subsection (m) must be reported
2376	2379		9 by the owner of the ABLE account on the owner's annual state income
2377	2380		10 tax return for any taxable year in which a nonqualified withdrawal is
2378	2381		11 made.
2379	2382		12 (o) A nonresident owner of an ABLE account who is not required
2380	2383		13 to file an annual income tax return for a taxable year in which a
2381	2384		14 nonqualified withdrawal is made shall make any required repayment on
2382	2385		15 the form required under IC 6-3-4-1(2). If the nonresident owner of the
2383	2386		16 ABLE account does not make the required repayment, the department
2384	2387		17 shall issue a demand notice in accordance with IC 6-8.1-5-1.
2385	2388		18 (p) The executive director of the Indiana ABLE authority shall
2386	2389		19 submit or cause to be submitted to the department a copy of all
2387	2390		20 information returns or statements issued to ABLE account owners,
2388	2391		21 designated beneficiaries, and other taxpayers for each taxable year with
2389	2392		22 respect to:
2390	2393		23 (1) nonqualified withdrawals made from ABLE accounts for the
2391	2394		24 taxable year; or
2392	2395		25 (2) ABLE account closings for the taxable year.
2393	2396		26 (q) The following apply to contributions made after December 31,
2394	2397		27 2023:
2395	2398		28 (1) For purposes of this section, all or part of a contribution made
2396	2399		29 after the end of a taxable year, and not later than the due date of
2397	2400		30 the taxpayer's adjusted gross income tax return for the taxable
2398	2401		31 year under this article (as determined without regard to any
2399	2402		32 allowable extensions), shall be considered as having been made
2400	2403		33 during the taxable year preceding the contribution if:
2401	2404		34 (A) the taxpayer elects to treat all or part of a contribution as
2402	2405		35 occurring in the taxable year preceding the contribution;
2403	2406		36 (B) the taxpayer designates the amounts of the contribution to
2404	2407		37 be treated as occurring in each taxable year, in the case of a
2405	2408		38 single contribution that is to be allowable under this section in
2406	2409		39 two (2) separate years; and
2407	2410		40 (C) the taxpayer irrevocably waives the right to claim the
2408	2411		41 contribution claimed in the taxable year preceding the
2409	2412		42 contribution as occurring in the taxable year of the
2410	2413		ES 453—LS 7499/DI 120 55
2411	2414		1 contribution.
2412	2415		2 (2) An irrevocable election under this subsection must be made
2413	2416		3 in writing at the time the contribution is made.
2414	2417		4 (3) The Indiana ABLE authority may prescribe any forms
2415	2418		5 necessary for purposes of this subsection.
2416	2419		6 SECTION 22. IC 6-3-4-4.1, AS AMENDED BY P.L.159-2021,
2417	2420		7 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2418	2421		8 JANUARY 1, 2026]: Sec. 4.1. (a) Any individual required by the
2419	2422		9 Internal Revenue Code or this section to file estimated tax returns and
2420	2423		10 to make payments on account of such estimated tax shall file estimated
2421	2424		11 tax returns and make payments of the tax imposed by this article to the
2422	2425		12 department at the time or times and in the installments as provided by
2423	2426		13 Section 6654 of the Internal Revenue Code. However, the following
2424	2427		14 apply to estimated tax returns filed and payments made under this
2425	2428		15 subsection:
2426	2429		16 (1) In applying Section 6654 of the Internal Revenue Code for the
2427	2430		17 purposes of this article, "estimated tax" means the amount which
2428	2431		18 the individual estimates as the sum of the amount of the adjusted
2429	2432		19 gross income tax imposed by this article for the taxable year and
2430	2433		20 the sum of the amount of local income tax under IC 6-3.6,
2431	2434		21 including any amounts of credits required to be recaptured
2432	2435		22 under IC 6-3-3 and IC 6-3.1, minus the amount which the
2433	2436		23 individual estimates as the sum of any credits against the tax
2434	2437		24 provided by IC 6-3-3, IC 6-3.1, and IC 6-3.6, other than the
2435	2438		25 amounts of tax withheld under this chapter.
2436	2439		26 (2) Estimated tax for a nonresident alien (as defined in Section
2437	2440		27 7701 of the Internal Revenue Code) must be computed by
2438	2441		28 applying not more than one (1) exclusion under IC 6-3-1-3.5(a)(3)
2439	2442		29 and IC 6-3-1-3.5(a)(4), regardless of the total number of
2440	2443		30 exclusions that IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit
2441	2444		31 the taxpayer to apply on the taxpayer's final return for the taxable
2442	2445		32 year.
2443	2446		33 (3) If an individual does not file a return for the preceding
2444	2447		34 taxable year and the individual can establish that the
2445	2448		35 individual did not have a liability under IC 6-3 and IC 6-3.6,
2446	2449		36 Section 6654 of the Internal Revenue Code shall be applied as
2447	2450		37 if the tax liability for the preceding taxable year under IC 6-3
2448	2451		38 and IC 6-3.6 was zero dollars ($0).
2449	2452		39 (b) Every individual who has adjusted gross income subject to the
2450	2453		40 tax imposed by this article and from which tax is not withheld under
2451	2454		41 the requirements of this chapter or for which tax is not remitted on
2452	2455		42 behalf of the individual under IC 6-3-2.1 shall make a declaration of
2453	2456		ES 453—LS 7499/DI 120 56
2454	2457		1 estimated tax for the taxable year. However, no such declaration shall
2455	2458		2 be required if the estimated tax can reasonably be expected to be less
2456	2459		3 than one thousand dollars ($1,000). In the case of an underpayment of
2457	2460		4 the estimated tax as provided in Section 6654 of the Internal Revenue
2458	2461		5 Code, there shall be added to the tax a penalty in an amount prescribed
2459	2462		6 by IC 6-8.1-10-2.1(b).
2460	2463		7 (c) Every corporation subject to the adjusted gross income tax
2461	2464		8 liability imposed by this article shall be required to report and pay an
2462	2465		9 estimated tax equal to the lesser of:
2463	2466		10 (1) twenty-five percent (25%) of such corporation's estimated
2464	2467		11 adjusted gross income tax liability for the taxable year; or
2465	2468		12 (2) the annualized income installment calculated in the manner
2466	2469		13 provided by Section 6655(e) of the Internal Revenue Code as
2467	2470		14 applied to the corporation's liability for adjusted gross income tax.
2468	2471		15 A taxpayer who uses a taxable year that ends on December 31 shall file
2469	2472		16 the taxpayer's estimated adjusted gross income tax returns and pay the
2470	2473		17 tax to the department on or before April 20, June 20, September 20,
2471	2474		18 and December 20 of the taxable year. If a taxpayer uses a taxable year
2472	2475		19 that does not end on December 31, the due dates for filing estimated
2473	2476		20 adjusted gross income tax returns and paying the tax are on or before
2474	2477		21 the twentieth day of the fourth, sixth, ninth, and twelfth months of the
2475	2478		22 taxpayer's taxable year. The department shall prescribe the manner and
2476	2479		23 forms for such reporting and payment.
2477	2480		24 (d) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b) shall
2478	2481		25 be assessed by the department on corporations failing to make
2479	2482		26 payments as required in subsection (c) or (f). However, no penalty shall
2480	2483		27 be assessed as to any estimated payments of adjusted gross income tax
2481	2484		28 which equal or exceed:
2482	2485		29 (1) the amount calculated under subsection (c); or
2483	2486		30 (2) twenty-five percent (25%) of the final tax liability for the
2484	2487		31 taxpayer's previous taxable year.
2485	2488		32 In addition, the penalty as to any underpayment of tax on an estimated
2486	2489		33 return shall only be assessed on the difference between the actual
2487	2490		34 amount paid by the corporation on such estimated return and
2488	2491		35 twenty-five percent (25%) of the corporation's final adjusted gross
2489	2492		36 income tax liability for such taxable year. A payment required to be
2490	2493		37 made in the manner prescribed in subsection (f), but not paid in such
2491	2494		38 a prescribed manner, shall be subject to the penalty provided in
2492	2495		39 IC 6-8.1-10-2.1(b)(5).
2493	2496		40 (e) The provisions of subsection (c) requiring the reporting and
2494	2497		41 estimated payment of adjusted gross income tax shall be applicable
2495	2498		42 only to corporations having an adjusted gross income tax liability
2496	2499		ES 453—LS 7499/DI 120 57
2497	2500		1 which, after application of the credit allowed by IC 6-3-3-2 (repealed),
2498	2501		2 shall exceed two thousand five hundred dollars ($2,500) for its taxable
2499	2502		3 year.
2500	2503		4 (f) If the department determines that a corporation's:
2501	2504		5 (1) estimated quarterly adjusted gross income tax liability for the
2502	2505		6 current year; or
2503	2506		7 (2) average estimated quarterly adjusted gross income tax liability
2504	2507		8 for the preceding year;
2505	2508		9 exceeds five thousand dollars ($5,000), after the credit allowed by
2506	2509		10 IC 6-3-3-2 (repealed), the corporation shall pay the estimated adjusted
2507	2510		11 gross income taxes due by electronic funds transfer (as defined in
2508	2511		12 IC 4-8.1-2-7) or by delivering in person or overnight by courier a
2509	2512		13 payment by cashier's check, certified check, or money order to the
2510	2513		14 department. The transfer or payment shall be made on or before the
2511	2514		15 date the tax is due.
2512	2515		16 (g) If a corporation's adjusted gross income tax payment is made by
2513	2516		17 electronic funds transfer, the corporation is not required to file an
2514	2517		18 estimated adjusted gross income tax return.
2515	2518		19 (h) (c) An individual filing an estimated tax return and making an
2516	2519		20 estimated tax payment under this section must designate:
2517	2520		21 (1) the portion of the estimated tax payment that represents
2518	2521		22 estimated state adjusted gross income tax liability; and
2519	2522		23 (2) the portion of the estimated tax payment that represents
2520	2523		24 estimated local income tax liability under IC 6-3.6.
2521	2524		25 The department shall adopt guidelines and issue instructions as
2522	2525		26 necessary to assist individuals in making the designations required by
2523	2526		27 this subsection.
2524	2527		28 (i) For a corporation required to make estimated payments under
2525	2528		29 this section:
2526	2529		30 (1) if a corporation has a current taxable year or a previous
2527	2530		31 taxable year that is less than twelve (12) months, the penalty
2528	2531		32 under this section shall be computed in a manner consistent with
2529	2532		33 Section 6655 of the Internal Revenue Code, including regulations
2530	2533		34 promulgated thereunder; and
2531	2534		35 (2) the department may adopt rules or issue guidelines related to
2532	2535		36 the application of payments withheld on behalf of the corporation
2533	2536		37 under this chapter or IC 6-5.5-2-8.
2534	2537		38 SECTION 23. IC 6-3-4-4.2 IS ADDED TO THE INDIANA CODE
2535	2538		39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2536	2539		40 JANUARY 1, 2026]: Sec. 4.2. (a) The following apply for purposes
2537	2540		41 of this section:
2538	2541		42 (1) "Final tax liability" for a taxable year means the reported
2539	2542		ES 453—LS 7499/DI 120 58
2540	2543		1 tax liability of a taxpayer, except that:
2541	2544		2 (A) for purposes of determining the final tax liability for a
2542	2545		3 previous taxable year of less than twelve (12) months, the
2543	2546		4 final tax liability shall be:
2544	2547		5 (i) the reported adjusted gross income tax liability;
2545	2548		6 divided by
2546	2549		7 (ii) the number of estimated payments otherwise
2547	2550		8 required under this chapter; multiplied by
2548	2551		9 (iii) four (4);
2549	2552		10 (B) if the taxpayer does not have a reported tax liability for
2550	2553		11 the previous year and properly does not file an adjusted
2551	2554		12 gross income tax return under IC 6-3 or financial
2552	2555		13 institutions tax under IC 6-5.5, the taxpayer's final tax
2553	2556		14 liability shall be considered to be zero dollars ($0); and
2554	2557		15 (C) if the taxpayer has a reported tax liability of zero
2555	2558		16 dollars ($0) for the previous taxable year, the taxpayer
2556	2559		17 shall be treated as having a tax liability of zero dollars ($0).
2557	2560		18 (2) "Reported tax liability" means the adjusted gross income
2558	2561		19 tax under IC 6-3 or financial institutions tax under IC 6-5.5 as
2559	2562		20 reported by the taxpayer for the taxable year on the
2560	2563		21 taxpayer's return after application of any credits allowable to
2561	2564		22 the taxpayer under IC 6-3-3, IC 6-3.1, or IC 6-5.5 other than
2562	2565		23 credits for:
2563	2566		24 (A) estimated taxes paid under this section or IC 6-5.5-6-3;
2564	2567		25 (B) taxes withheld on behalf of the taxpayer under this
2565	2568		26 chapter or IC 6-5.5-2-8; or
2566	2569		27 (C) taxes paid by a pass through entity on behalf of the
2567	2570		28 taxpayer under IC 6-3-2.1.
2568	2571		29 The term reported tax liability includes the recapture of any
2569	2572		30 tax credits under IC 6-3-3 or IC 6-3.1 reported on the tax
2570	2573		31 return for the taxable year. If the taxpayer fails to file a tax
2571	2574		32 return for a taxable year under IC 6-3 or IC 6-5.5, and the
2572	2575		33 department determines that the taxpayer owes adjusted gross
2573	2576		34 income tax under IC 6-3 or financial institutions tax under
2574	2577		35 IC 6-5.5, the reported tax liability shall be the greater of the
2575	2578		36 amount for the taxable year under IC 6-3 or IC 6-5.5 as
2576	2579		37 determined by the department or the amount for the
2577	2580		38 immediately following taxable year under IC 6-3 or IC 6-5.5.
2578	2581		39 (b) Except as otherwise provided in this section, every
2579	2582		40 corporation subject to the adjusted gross income tax liability
2580	2583		41 imposed by this article shall be required to report and pay an
2581	2584		42 estimated tax equal to twenty-five percent (25%) of such
2582	2585		ES 453—LS 7499/DI 120 59
2583	2586		1 corporation's estimated adjusted gross income tax liability for the
2584	2587		2 taxable year. The following apply:
2585	2588		3 (1) A taxpayer who uses a taxable year that ends on December
2586	2589		4 31 shall file the taxpayer's estimated adjusted gross income
2587	2590		5 tax returns and pay the tax to the department on or before
2588	2591		6 April 20, June 20, September 20, and December 20 of the
2589	2592		7 taxable year.
2590	2593		8 (2) If a taxpayer uses a taxable year that does not end on
2591	2594		9 December 31, the due dates for filing estimated adjusted gross
2592	2595		10 income tax returns and paying the tax are on or before the
2593	2596		11 twentieth day of the fourth, sixth, ninth, and twelfth months
2594	2597		12 of the taxpayer's taxable year. The department shall prescribe
2595	2598		13 the manner and forms for such reporting and payment.
2596	2599		14 (3) Any taxes withheld on behalf of the corporation under this
2597	2600		15 chapter or IC 6-5.5-2-8, and any taxes remitted on behalf of
2598	2601		16 the corporation under IC 6-3-2.1, shall be treated as estimated
2599	2602		17 tax payments on behalf of the corporation for purposes of this
2600	2603		18 section. Such taxes shall be attributed to each required
2601	2604		19 payment in the manner the underlying income is attributed
2602	2605		20 under Section 6655 of the Internal Revenue Code.
2603	2606		21 (4) If the taxpayer has a taxable year that is less than twelve
2604	2607		22 (12) months, the estimated payments under this section shall
2605	2608		23 be adjusted in the manner prescribed by Section 6655 of the
2606	2609		24 Internal Revenue Code and applicable regulations.
2607	2610		25 (c) If a corporation determines that its estimated tax payment
2608	2611		26 using an annualized method under Section 6655(e) of the Internal
2609	2612		27 Revenue Code is lower than the amount required under subsection
2610	2613		28 (b), the corporation shall be permitted to use an annualized method
2611	2614		29 under Section 6655(e) of the Internal Revenue Code to determine
2612	2615		30 its estimated tax payment under subsection (b), and shall recapture
2613	2616		31 any reduction in the estimated tax payment in the manner
2614	2617		32 prescribed by Section 6655(e) of the Internal Revenue Code. The
2615	2618		33 corporation may not use an annualized method under this section
2616	2619		34 that would not be allowable to the corporation under Section 6655
2617	2620		35 of the Internal Revenue Code.
2618	2621		36 (d) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b)
2619	2622		37 shall be assessed by the department on corporations failing to
2620	2623		38 make payments as required in subsection (b). However, no penalty
2621	2624		39 shall be assessed as to any estimated payments of adjusted gross
2622	2625		40 income tax which equal or exceed:
2623	2626		41 (1) the amount calculated under subsection (b); or
2624	2627		42 (2) twenty-five percent (25%) of the final tax liability for the
2625	2628		ES 453—LS 7499/DI 120 60
2626	2629		1 taxpayer's previous taxable year.
2627	2630		2 In addition, the penalty as to any underpayment of tax on an
2628	2631		3 estimated return shall only be assessed on the difference between
2629	2632		4 the actual amount paid by the corporation on such estimated
2630	2633		5 return and the amount determined under subsection (b).
2631	2634		6 (e) The provisions of subsection (b) requiring the reporting and
2632	2635		7 estimated payment of adjusted gross income tax shall be applicable
2633	2636		8 only to corporations having an adjusted gross income tax liability
2634	2637		9 which exceeds two thousand five hundred dollars ($2,500) for its
2635	2638		10 taxable year.
2636	2639		11 (f) If the department determines that a corporation's:
2637	2640		12 (1) estimated quarterly adjusted gross income tax liability for
2638	2641		13 the current year; or
2639	2642		14 (2) average estimated quarterly adjusted gross income tax
2640	2643		15 liability for the preceding year;
2641	2644		16 exceeds five thousand dollars ($5,000), the corporation shall pay
2642	2645		17 the estimated adjusted gross income taxes due by electronic funds
2643	2646		18 transfer (as defined in IC 4-8.1-2-7) or by delivering in person or
2644	2647		19 overnight by courier a payment by cashier's check, certified check,
2645	2648		20 or money order to the department. The transfer or payment shall
2646	2649		21 be made on or before the date the tax is due. A failure to make a
2647	2650		22 payment in the manner prescribed under this subsection shall be
2648	2651		23 subject to penalty as provided in IC 6-8.1-10-2.1(b)(5).
2649	2652		24 (g) In the case of corporations that switch filing status, the final
2650	2653		25 tax liability shall be determined in the manner consistent with
2651	2654		26 Section 1502 of the Internal Revenue Code and regulations
2652	2655		27 thereunder.
2653	2656		28 SECTION 24. IC 6-3-4-17, AS AMENDED BY P.L.197-2016,
2654	2657		29 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2655	2658		30 JANUARY 1, 2026]: Sec. 17. Beginning after December 31, 2010, the
2656	2659		31 department and the office of management and budget shall:
2657	2660		32 (1) develop a quarterly report that summarizes the amount
2658	2661		33 reported to and processed by the department under section 4.1(h)
2659	2662		34 4.1(c) of this chapter, section 15.7(a)(3) of this chapter, and
2660	2663		35 IC 6-3.6-8-5 for each county; and
2661	2664		36 (2) make the quarterly report available to county auditors within
2662	2665		37 forty-five (45) days after the end of the calendar quarter.
2663	2666		38 SECTION 25. IC 6-3.1-38-4, AS ADDED BY P.L.203-2023,
2664	2667		39 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2665	2668		40 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) Subject to
2666	2669		41 subsection (c) and section 7 of this chapter, a qualified taxpayer may
2667	2670		42 claim a credit against the qualified taxpayer's state tax liability for a
2668	2671		ES 453—LS 7499/DI 120 61
2669	2672		1 qualified contribution for a qualified taxpayer with less than fifty (50)
2670	2673		2 seventy-five (75) employees, if the amount provided toward the
2671	2674		3 health reimbursement arrangement is equal to or greater than the
2672	2675		4 level of benefits provided in the previous benefit year, or if the
2673	2676		5 amount the employer contributes toward the health
2674	2677		6 reimbursement arrangement equals the same amount contributed
2675	2678		7 per covered individual toward the employer provided health
2676	2679		8 insurance plan during the previous benefit year. up to four hundred
2677	2680		9 dollars ($400) in the first year per covered employee if the amount
2678	2681		10 provided toward the health reimbursement arrangement is equal to or
2679	2682		11 greater than either the level of benefits provided in the previous benefit
2680	2683		12 year, or if the amount the employer contributes toward the health
2681	2684		13 reimbursement arrangement equals the same amount contributed per
2682	2685		14 covered individual toward the employer provided health insurance plan
2683	2686		15 during the previous benefit year. The credit under this section
2684	2687		16 decreases to two hundred dollars ($200) per covered employee in the
2685	2688		17 second year.
2686	2689		18 (b) The amount of the credit is the lesser of:
2687	2690		19 (1) the amount contributed by the employer toward the health
2688	2691		20 reimbursement arrangement during the taxable year; or
2689	2692		21 (2) the following:
2690	2693		22 (A) For the taxable year in which the employer establishes
2691	2694		23 the health reimbursement arrangement, four hundred
2692	2695		24 dollars ($400).
2693	2696		25 (B) For the taxable year that immediately follows the
2694	2697		26 taxable year in which the employer establishes the health
2695	2698		27 reimbursement arrangement, two hundred dollars ($200).
2696	2699		28 (C) For a taxable year following a taxable year described
2697	2700		29 in clause (B), zero dollars ($0).
2698	2701		30 (c) A qualified taxpayer may not claim a credit under this
2699	2702		31 chapter for a health reimbursement arrangement established in a
2700	2703		32 taxable year beginning before January 1, 2024.
2701	2704		33 SECTION 26. IC 6-3.1-38-4.5 IS ADDED TO THE INDIANA
2702	2705		34 CODE AS A NEW SECTION TO READ AS FOLLOWS
2703	2706		35 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4.5. For
2704	2707		36 a taxable year beginning after December 31, 2024, if a pass through
2705	2708		37 entity is entitled to a credit under section 4 of this chapter but does
2706	2709		38 not have state tax liability against which the tax credit may be
2707	2710		39 applied, a shareholder, partner, or member of the pass through
2708	2711		40 entity is entitled to a tax credit equal to:
2709	2712		41 (1) the tax credit determined for the pass through entity for
2710	2713		42 the taxable year; multiplied by
2711	2714		ES 453—LS 7499/DI 120 62
2712	2715		1 (2) the percentage of the pass through entity's distributive
2713	2716		2 income to which the shareholder, partner, or member is
2714	2717		3 entitled.
2715		-	4 SECTION 27. IC 6-3.1-40-3 IS ~~REPEALED [EFFECTIVE~~
2716		-	5 ~~JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 3.~~ As ~~used in this~~
2717		-	6 ~~chapter~~, ~~"primary care physician"~~ ~~refers to a physician practicing in one~~
2718		-	7 ~~(1) or more of~~ the ~~following:~~
2719		-	8 (1~~) Family medicine~~.
2720		-	9 ~~(2) General pediatric medicine~~.
2721		-	10 (3~~) General internal medicine.~~
2722		-	11 ~~(4) The general practice of medicine.~~
2723		-	12 ~~SECTION 28.~~ ~~IC 6-3.1-40-5, AS ADDED BY P.L.203-2023,~~
2724		-	13 ~~SECTION 3,~~ ~~IS AMENDED TO READ AS FOLLOWS [EFFECTIVE~~
2725		-	14 ~~JANUARY 1,~~ ~~2025 (RETROACTIVE)]: Sec~~. ~~5. As used in this~~
2726		-	15 ~~chapter, "taxpayer" means an individual who:~~
2727		-	16 (1) ~~is a physician practicing as a primary care physician; engaged~~
2728		-	17 ~~in the practice of medicine;~~
2729		-	18 ~~(2) has an ownership interest in a corporation~~, ~~limited liability~~
2730		-	19 ~~company~~, ~~partnership, or other legal entity organized to provide~~
2731		-	20 ~~primary health care services as a physician owned entity;~~
2732		-	21 (3) is ~~not employed by~~ a ~~health system (as~~ ~~defined in~~
2733		-	22 ~~IC 16-18-2-168.5)~~; ~~and~~
2734		-	23 (4) has ~~any state income tax~~ liability.
2735		-	24 ~~SECTION 29. IC 6-3.1-40-6~~, ~~AS ADDED BY P.L.203-2023,~~
2736		-	25 ~~SECTION 3,~~ ~~IS AMENDED TO READ~~ AS ~~FOLLOWS [EFFECTIVE~~
2737		-	26 ~~JANUARY 1,~~ ~~2025 (RETROACTIVE)]: Sec. 6. If~~ a ~~taxpayer:~~
2738		-	27 (1) ~~has an ownership interest in a physician owned medical~~
2739		-	28 ~~practice described in section 5~~(2) ~~of this chapter that:~~
2740		-	29 (1~~) (A) is established~~ as ~~a legal entity under Indiana law after~~
2741		-	30 ~~December 31~~, ~~2023;~~
2742		-	31 ~~(2)~~ (B) ~~opens and begins to provide primary health care~~
2743		-	32 ~~services to patients~~ in a ~~particular taxable calendar year~~
2744		-	33 ~~beginning after December 31,~~ ~~2023; and~~
2745		-	34 (3) (C) ~~has billed for health care services described in~~
2746		-	35 ~~subdivision (2) for at least six (6) months of that taxable a~~
2747		-	36 ~~calendar year;~~
2748		-	37 ~~(2) has an ownership interest~~ in ~~the income of the physician~~
2749		-	38 ~~owned medical practice that is at least:~~
2750		-	39 (A) for ~~a physician owned medical practice with not more~~
2751		-	40 ~~than ten~~ (10) ~~owners, five percent~~ (5%) of ~~the physician~~
2752		-	41 ~~owned medical practice's income~~; ~~and~~
2753		-	42 (B) ~~for a~~ physician ~~owned medical practice with more than~~
	2718	+	4 SECTION 27. IC 6-3.1-40-1.5 IS ADDED TO THE INDIANA
	2719	+	5 CODE AS A NEW SECTION TO READ AS FOLLOWS
	2720	+	6 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 1.5. As
	2721	+	7 used in this chapter, "pass through entity" has the meaning set
	2722	+	8 forth in IC 6-3-1-35.
	2723	+	9 SECTION 28. IC 6-3.1-40-3 IS REPEALED [EFFECTIVE
	2724	+	10 JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 3. As used in this
	2725	+	11 chapter, "primary care physician" refers to a physician practicing in one
	2726	+	12 (1) or more of the following:
	2727	+	13 (1) Family medicine.
	2728	+	14 (2) General pediatric medicine.
	2729	+	15 (3) General internal medicine.
	2730	+	16 (4) The general practice of medicine.
	2731	+	17 SECTION 29. IC 6-3.1-40-5, AS ADDED BY P.L.203-2023,
	2732	+	18 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2733	+	19 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5. As used in this
	2734	+	20 chapter, "taxpayer" means an individual who:
	2735	+	21 (1) is a physician practicing as a primary care physician; engaged
	2736	+	22 in the practice of medicine;
	2737	+	23 (2) has an ownership interest in a corporation, limited liability
	2738	+	24 company, partnership, or other legal entity organized to provide
	2739	+	25 primary health care services as a physician owned entity;
	2740	+	26 (3) is not employed by a health system (as defined in
	2741	+	27 IC 16-18-2-168.5); and
	2742	+	28 (4) has any state income tax liability.
	2743	+	29 SECTION 30. IC 6-3.1-40-6, AS ADDED BY P.L.203-2023,
	2744	+	30 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2745	+	31 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. If a taxpayer:
	2746	+	32 (1) has an ownership interest in a physician owned medical
	2747	+	33 practice described in section 5(2) of this chapter that:
	2748	+	34 (1) (A) is established as a legal entity under Indiana law after
	2749	+	35 December 31, 2023;
	2750	+	36 (2) (B) opens and begins to provide primary health care
	2751	+	37 services to patients in a particular taxable year beginning after
	2752	+	38 December 31, 2023; and
	2753	+	39 (3) (C) has billed for health care services described in
	2754	+	40 subdivision (2) for at least six (6) months of that a taxable
	2755	+	41 year;
	2756	+	42 (2) has an ownership interest in the income of the physician
2754	2757		ES 453—LS 7499/DI 120 63
2755		-	1 ten (10) owners, fifty percent (50%) of the physician owned
2756		-	2 medical practice's income divided by the number of
2757		-	3 physicians who own an interest in the physician owned
2758		-	4 medical practice; and
2759		-	5 (3) provided health care services in the physician owned
2760		-	6 medical practice for at least six (6) months of a calendar year;
2761		-	7 the taxpayer may, subject to section sections 7 and 9.5 of this chapter,
2762		-	8 claim a credit against the taxpayer's state income tax liability. Subject
2763		-	9 to section sections 8 and 11 of this chapter, the amount of the credit
2764		-	10 allowed under this chapter for a taxpayer in the particular taxable
2765		-	11 calendar year is twenty thousand dollars ($20,000).
2766		-	12 SECTION 30. IC 6-3.1-40-7, AS ADDED BY P.L.203-2023,
2767		-	13 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2768		-	14 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7. A taxpayer may claim
2769		-	15 a tax credit under this chapter for the a taxable year described in
2770		-	16 section 6 of this chapter and the two (2) immediately following taxable
2771		-	17 years.
2772		-	18 SECTION 31. IC 6-3.1-40-9 IS REPEALED [EFFECTIVE
2773		-	19 JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 9. To obtain a credit
2774		-	20 under this chapter, a taxpayer must claim the credit on the taxpayer's
2775		-	21 annual state income tax return in the manner prescribed by the
2776		-	22 department. The taxpayer shall submit to the department all
2777		-	23 information that the department determines is necessary to verify the
2778		-	24 taxpayer's eligibility for the credit provided by this chapter.
2779		-	25 SECTION 32. IC 6-3.1-40-9.5 IS ADDED TO THE INDIANA
	2758	+	1 owned medical practice that is at least:
	2759	+	2 (A) for a physician owned medical practice with not more
	2760	+	3 than ten (10) owners, five percent (5%) of the physician
	2761	+	4 owned medical practice's income; and
	2762	+	5 (B) for a physician owned medical practice with more than
	2763	+	6 ten (10) owners, fifty percent (50%) of the physician owned
	2764	+	7 medical practice's income; and
	2765	+	8 (3) provided health care services in the physician owned
	2766	+	9 medical practice for at least six (6) months of a taxable year;
	2767	+	10 the taxpayer may, subject to section sections 7 and 9.5 of this chapter,
	2768	+	11 claim a credit against the taxpayer's state income tax liability. Subject
	2769	+	12 to section sections 8 and 11 of this chapter, the amount of the credit
	2770	+	13 allowed under this chapter for a taxpayer in the particular taxable year
	2771	+	14 is twenty thousand dollars ($20,000).
	2772	+	15 SECTION 31. IC 6-3.1-40-7, AS ADDED BY P.L.203-2023,
	2773	+	16 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2774	+	17 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7. A taxpayer may claim
	2775	+	18 a tax credit under this chapter for the a taxable year described in
	2776	+	19 section 6 of this chapter and the two (2) immediately following taxable
	2777	+	20 years.
	2778	+	21 SECTION 32. IC 6-3.1-40-8.5 IS ADDED TO THE INDIANA
	2779	+	22 CODE AS A NEW SECTION TO READ AS FOLLOWS
	2780	+	23 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. If a
	2781	+	24 pass through entity is entitled to a credit under section 6 of this
	2782	+	25 chapter but does not have state tax liability against which the tax
	2783	+	26 credit may be applied, a shareholder, partner, or member of the
	2784	+	27 pass through entity is entitled to a tax credit equal to:
	2785	+	28 (1) the tax credit determined for the pass through entity for
	2786	+	29 the taxable year; multiplied by
	2787	+	30 (2) the percentage of the pass through entity's distributive
	2788	+	31 income to which the shareholder, partner, or member is
	2789	+	32 entitled.
	2790	+	33 SECTION 33. IC 6-3.1-40-9 IS REPEALED [EFFECTIVE
	2791	+	34 JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 9. To obtain a credit
	2792	+	35 under this chapter, a taxpayer must claim the credit on the taxpayer's
	2793	+	36 annual state income tax return in the manner prescribed by the
	2794	+	37 department. The taxpayer shall submit to the department all
	2795	+	38 information that the department determines is necessary to verify the
	2796	+	39 taxpayer's eligibility for the credit provided by this chapter.
	2797	+	40 SECTION 34. IC 6-3.1-40-9.5 IS ADDED TO THE INDIANA
	2798	+	41 CODE AS A NEW SECTION TO READ AS FOLLOWS
	2799	+	42 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9.5. (a) To
	2800	+	ES 453—LS 7499/DI 120 64
	2801	+	1 receive a credit under this chapter, a taxpayer must:
	2802	+	2 (1) subject to subsection (d), apply for the department's
	2803	+	3 approval of the tax credit in the manner prescribed by the
	2804	+	4 department after June 30 of a calendar year, but not later
	2805	+	5 than July 1 of the subsequent calendar year;
	2806	+	6 (2) submit with the application a certified list of each of the
	2807	+	7 physicians who has an ownership interest in the legal entity
	2808	+	8 described in section 6 of this chapter and any additional
	2809	+	9 information that the department determines is necessary for
	2810	+	10 the calculation of the credit under this chapter;
	2811	+	11 (3) attach proof of the department's approval of the tax credit
	2812	+	12 to the taxpayer's state tax return or returns; and
	2813	+	13 (4) claim the approved tax credit on the taxpayer's state tax
	2814	+	14 return or returns in the manner prescribed by the
	2815	+	15 department.
	2816	+	16 (b) The department shall record the time of filing of each
	2817	+	17 application for the department's approval of a tax credit and shall,
	2818	+	18 except as provided in subsection (c), approve granting the credit to
	2819	+	19 the taxpayer, if the taxpayer otherwise qualifies for a credit under
	2820	+	20 this chapter, in the chronological order in which the application for
	2821	+	21 the department's approval is filed in the year.
	2822	+	22 (c) If the total credits approved under this section equal the
	2823	+	23 maximum amount allowable in the year, the department may not
	2824	+	24 approve an application for the credit filed later in that year.
	2825	+	25 (d) A taxpayer may not file an application for a credit under this
	2826	+	26 chapter after the due date of the taxpayer's tax return for a taxable
	2827	+	27 year, or another date specified by the department.
	2828	+	28 SECTION 35. IC 6-3.1-40-11 IS ADDED TO THE INDIANA
	2829	+	29 CODE AS A NEW SECTION TO READ AS FOLLOWS
	2830	+	30 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a)
	2831	+	31 Subject to subsection (b), the total amount of tax credits awarded
	2832	+	32 under this chapter may not exceed ten million dollars ($10,000,000)
	2833	+	33 in the state fiscal year beginning July 1, 2025, and ending June 30,
	2834	+	34 2026, and in each state fiscal year thereafter. However, any
	2835	+	35 amounts carried forward under section 8(a) of this chapter shall
	2836	+	36 first be deducted from the total amount of tax credits that may be
	2837	+	37 awarded for the succeeding state fiscal year.
	2838	+	38 (b) For a taxable year beginning after December 31, 2024, and
	2839	+	39 before January 1, 2026, only that part of a taxpayer's tax credit
	2840	+	40 that is attributable to the period of time beginning after June 30,
	2841	+	41 2025, and before January 1, 2026, is subject to the maximum
	2842	+	42 amount provided in subsection (a).
	2843	+	ES 453—LS 7499/DI 120 65
	2844	+	1 SECTION 36. IC 6-3.1-40-12 IS ADDED TO THE INDIANA
	2845	+	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
	2846	+	3 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. The
	2847	+	4 department, on a website used by the department to provide
	2848	+	5 information to the public, shall provide the following information:
	2849	+	6 (1) The application for the credit provided in this chapter.
	2850	+	7 (2) A timeline for receiving the credit provided in this chapter.
	2851	+	8 (3) The total amount of credits awarded under this chapter
	2852	+	9 during the current state fiscal year.
	2853	+	10 SECTION 37. IC 6-3.6-7-8.5, AS ADDED BY P.L.255-2017,
	2854	+	11 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2855	+	12 UPON PASSAGE]: Sec. 8.5. (a) This section applies to Fountain
	2856	+	13 County.
	2857	+	14 (b) The county council may, by ordinance, determine that additional
	2858	+	15 local income tax revenue is needed in the county to do the following:
	2859	+	16 (1) Finance, construct, acquire, improve, renovate, and equip the
	2860	+	17 county jail and related buildings and parking facilities, including
	2861	+	18 costs related to the demolition of existing buildings, the
	2862	+	19 acquisition of land, and any other reasonably related costs.
	2863	+	20 (2) Repay bonds issued or leases entered into for the purposes
	2864	+	21 described in subdivision (1).
	2865	+	22 (c) If the county council makes the determination set forth in
	2866	+	23 subsection (b), the county council may adopt an ordinance to impose
	2867	+	24 a local income tax rate of not more than fifty-five hundredths percent
	2868	+	25 (0.55%). However, the tax rate may not be greater than the rate
	2869	+	26 necessary to pay for the purposes described in subsection (b).
	2870	+	27 (d) The tax rate may be imposed only until the later of the following
	2871	+	28 dates:
	2872	+	29 (1) The date on which the financing, construction, acquisition,
	2873	+	30 improvement, renovation, and equipping of the facilities as
	2874	+	31 described in subsection (b) are completed.
	2875	+	32 (2) The date on which the last of any bonds issued (including
	2876	+	33 refunding bonds) or leases entered into to finance the
	2877	+	34 construction, acquisition, improvement, renovation, and
	2878	+	35 equipping of the facilities described in subsection (b) are fully
	2879	+	36 paid.
	2880	+	37 (e) The term of a bond issued (including any refunding bond) or a
	2881	+	38 lease entered into under subsection (b) may not exceed twenty-five (25)
	2882	+	39 years.
	2883	+	40 (f) The county treasurer shall establish a county jail revenue fund to
	2884	+	41 be used only for the purposes described in this section. Local income
	2885	+	42 tax revenues derived from the tax rate imposed under this section shall
	2886	+	ES 453—LS 7499/DI 120 66
	2887	+	1 be deposited in the county jail revenue fund.
	2888	+	2 (g) Local income tax revenues derived from the tax rate imposed
	2889	+	3 under this section:
	2890	+	4 (1) may be used only for the purposes described in this section;
	2891	+	5 (2) may not be considered by the department of local government
	2892	+	6 finance in determining the county's maximum permissible
	2893	+	7 property tax levy limit under IC 6-1.1-18.5; and
	2894	+	8 (3) may be pledged to the repayment of bonds issued or leases
	2895	+	9 entered into for the purposes described in subsection (b).
	2896	+	10 (h) Subject to subsection (i), if the county council determines
	2897	+	11 that the county jail revenue fund established under subsection (f)
	2898	+	12 contains excess reserves, the county council may, before January
	2899	+	13 1, 2026, adopt a resolution to make a one (1) time transfer from the
	2900	+	14 county jail revenue fund to the county general fund to be used only
	2901	+	15 for emergency management services within the county. The
	2902	+	16 resolution must include the following:
	2903	+	17 (1) A determination that the county jail revenue fund contains
	2904	+	18 excess reserves and that a transfer from the county jail
	2905	+	19 revenue fund to the county general fund is necessary.
	2906	+	20 (2) The total amount of excess reserves contained in the
	2907	+	21 county jail revenue fund as of the date the determination is
	2908	+	22 made that the county jail revenue fund contains excess
	2909	+	23 reserves.
	2910	+	24 (3) The total amount to be transferred from the county jail
	2911	+	25 revenue fund to the county general fund.
	2912	+	26 (4) The date on which the transfer from the county jail
	2913	+	27 revenue fund to the county general fund will occur.
	2914	+	28 (i) Prior to adopting a resolution under subsection (h), the
	2915	+	29 county council must adopt a new ordinance under subsection (c)
	2916	+	30 that adjusts the local income tax rate to a rate that:
	2917	+	31 (1) complies with the limitations described in subsection (c);
	2918	+	32 and
	2919	+	33 (2) is not greater than the rate necessary to pay for the
	2920	+	34 expenditures incurred for the purposes described in
	2921	+	35 subsection (b).
	2922	+	36 (h) (j) Fountain County possesses unique governmental and
	2923	+	37 economic development challenges and opportunities related to:
	2924	+	38 (1) the current county jail; and
	2925	+	39 (2) a limited industrial and commercial assessed valuation in the
	2926	+	40 county.
	2927	+	41 The use of local income tax revenues as provided in this section is
	2928	+	42 necessary for the county to provide adequate jail capacity in the county
	2929	+	ES 453—LS 7499/DI 120 67
	2930	+	1 and to maintain low property tax rates essential to economic
	2931	+	2 development. The use of local income tax revenues as provided in this
	2932	+	3 section to pay any bonds issued or leases entered into to finance the
	2933	+	4 construction, acquisition, improvement, renovation, and equipping of
	2934	+	5 the facilities described in subsection (b), rather than the use of property
	2935	+	6 taxes, promotes those purposes.
	2936	+	7 (i) (k) Money accumulated from the local income tax rate imposed
	2937	+	8 under this section after the termination of the tax under this section
	2938	+	9 shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
	2939	+	10 SECTION 38. IC 6-5.5-6-3, AS AMENDED BY P.L.211-2007,
	2940	+	11 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2941	+	12 JANUARY 1, 2026]: Sec. 3. (a) Each taxpayer subject to taxation
	2942	+	13 under this article shall report and pay quarterly an estimated tax equal
	2943	+	14 to twenty-five percent (25%) of the taxpayer's total estimated tax
	2944	+	15 liability imposed by this article for the taxable year. A taxpayer that
	2945	+	16 uses a taxable year that ends on December 31 shall file the taxpayer's
	2946	+	17 estimated quarterly financial institutions tax return and pay the tax to
	2947	+	18 the department on or before April 20, June 20, September 20, and
	2948	+	19 December 20 of the taxable year, without assessment or notice and
	2949	+	20 demand from the department. If a taxpayer uses a taxable year that does
	2950	+	21 not end on December 31, the due dates for filing the estimated
	2951	+	22 quarterly financial institutions tax return and paying the tax are on or
	2952	+	23 before the twentieth day of the fourth, sixth, ninth, and twelfth months
	2953	+	24 of the taxpayer's taxable year. The department shall prescribe the
	2954	+	25 manner and furnish the forms for reporting and payment.
	2955	+	26 (b) Subsection (a) is applicable only to taxpayers having a tax
	2956	+	27 liability imposed under this article that exceeds two thousand five
	2957	+	28 hundred dollars ($2,500) for the taxable year.
	2958	+	29 (c) If the department determines that a taxpayer's:
	2959	+	30 (1) estimated quarterly financial institutions tax liability for the
	2960	+	31 current year; or
	2961	+	32 (2) average quarterly financial institutions tax payment for the
	2962	+	33 preceding year;
	2963	+	34 exceeds five thousand dollars ($5,000), the taxpayer shall pay the
	2964	+	35 quarterly financial institutions taxes due by electronic fund transfer (as
	2965	+	36 defined in IC 4-8.1-2-7) or by delivering in person or by overnight
	2966	+	37 courier a payment by cashier's check, certified check, or money order
	2967	+	38 to the department. The transfer or payment shall be made on or before
	2968	+	39 the date the tax is due.
	2969	+	40 (d) If a taxpayer's financial institutions tax payment is made by
	2970	+	41 electronic fund transfer, the taxpayer is not required to file a quarterly
	2971	+	42 financial institutions tax return.
	2972	+	ES 453—LS 7499/DI 120 68
	2973	+	1 (e) If the taxpayer has a taxable year that is less than twelve (12)
	2974	+	2 months, the estimated payments under this section shall be
	2975	+	3 adjusted in the manner prescribed by Section 6655 of the Internal
	2976	+	4 Revenue Code and applicable regulations.
	2977	+	5 SECTION 39. IC 6-5.5-7-1, AS AMENDED BY P.L.159-2021,
	2978	+	6 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2979	+	7 JANUARY 1, 2026]: Sec. 1. (a) For purposes of this section, "final
	2980	+	8 tax liability" has the meaning set forth in IC 6-3-4-4.2(a)(1).
	2981	+	9 (a) (b) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b)
	2982	+	10 shall be assessed by the department on a taxpayer who fails to make
	2983	+	11 payments as required in IC 6-5.5-6. However, no penalty shall be
	2984	+	12 assessed for a quarterly payment if the payment equals or exceeds:
	2985	+	13 (1) twenty percent (20%) of the final tax liability for the taxable
	2986	+	14 year; or
	2987	+	15 (2) twenty-five percent (25%) of the final tax liability for the
	2988	+	16 taxpayer's previous taxable year.
	2989	+	17 (b) (c) The penalty for an underpayment of tax on a quarterly return
	2990	+	18 shall only be assessed on the difference between the actual amount paid
	2991	+	19 by the taxpayer on the quarterly return and the lesser of:
	2992	+	20 (1) twenty percent (20%) of the taxpayer's final tax liability for
	2993	+	21 the taxable year; or
	2994	+	22 (2) twenty-five percent (25%) of the taxpayer's final tax liability
	2995	+	23 for the taxpayer's previous taxable year.
	2996	+	24 A payment required to be made in the manner prescribed in
	2997	+	25 IC 6-5.5-6-3(c), but not paid in such a prescribed manner, shall be
	2998	+	26 subject to the penalty provided in IC 6-8.1-10-2.1(b)(5).
	2999	+	27 (c) (d) For a corporation required to make estimated payments under
	3000	+	28 this section:
	3001	+	29 (1) if a corporation has a current taxable year or a previous
	3002	+	30 taxable year that is less than twelve (12) months, the penalty
	3003	+	31 under this section shall be computed in a manner consistent with
	3004	+	32 Section 6655 of the Internal Revenue Code, including regulations
	3005	+	33 promulgated thereunder; the amounts under subsections (b) and
	3006	+	34 (c) shall be adjusted in the same manner as an estimated
	3007	+	35 payment required under IC 6-3-4-4.2; and
	3008	+	36 (2) the department may adopt rules or issue guidelines related to
	3009	+	37 the application of payments withheld on behalf of the corporation
	3010	+	38 under IC 6-3-4 or IC 6-5.5-2-8. any taxes withheld on behalf of
	3011	+	39 the corporation under IC 6-3-4 or IC 6-5.5-2-8, and any taxes
	3012	+	40 remitted on behalf of the corporation under IC 6-3-2.1, shall
	3013	+	41 be treated as estimated tax payments on behalf of the
	3014	+	42 corporation for purposes of this section. Such taxes shall be
	3015	+	ES 453—LS 7499/DI 120 69
	3016	+	1 attributed to each required payment in the manner the
	3017	+	2 underlying income is attributed under Section 6655 of the
	3018	+	3 Internal Revenue Code.
	3019	+	4 SECTION 40. IC 6-7-2-7, AS AMENDED BY P.L.236-2023,
	3020	+	5 SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3021	+	6 JULY 1, 2025]: Sec. 7. (a) A tax is imposed on the distribution of
	3022	+	7 tobacco products in Indiana at the following rates:
	3023	+	8 (1) Twenty-four percent (24%) of the wholesale price of tobacco
	3024	+	9 products other than moist snuff.
	3025	+	10 (2) For moist snuff, forty cents ($0.40) per ounce, and a
	3026	+	11 proportionate tax at the same rate on all fractional parts of an
	3027	+	12 ounce. If the tax calculated for a fractional part of an ounce
	3028	+	13 carried to the third decimal place results in the numeral in the
	3029	+	14 third decimal place being greater than four (4), the amount of the
	3030	+	15 tax shall be rounded to the next additional cent.
	3031	+	16 (3) For cigars twenty-four percent (24%) of the wholesale price
	3032	+	17 of a cigar. However the tax imposed per cigar shall not exceed
	3033	+	18 one dollar ($1).
	3034	+	19 (b) A tax is imposed on the distribution of alternative nicotine
	3035	+	20 products in Indiana at a rate of forty cents ($0.40) per ounce, and a
	3036	+	21 proportionate tax at the same rate on all fractional parts of an ounce,
	3037	+	22 calculated based upon the product weight as listed by the manufacturer.
	3038	+	23 If the tax calculated for a fractional part of an ounce carried to the third
	3039	+	24 decimal place being greater than four (4), the amount of the tax shall
	3040	+	25 be rounded to the next additional cent.
	3041	+	26 (c) The distributor of the tobacco products or alternative nicotine
	3042	+	27 products is liable for the tax imposed under subsections (a) or (b). The
	3043	+	28 tax is imposed at the time the distributor:
	3044	+	29 (1) brings or causes tobacco products or alternative nicotine
	3045	+	30 products to be brought into Indiana for distribution;
	3046	+	31 (2) manufactures tobacco products or alternative nicotine
	3047	+	32 products in Indiana for distribution;
	3048	+	33 (3) transports tobacco products or alternative nicotine products to
	3049	+	34 retail dealers in Indiana for resale by those retail dealers; or
	3050	+	35 (4) first receives the tobacco products or alternative nicotine
	3051	+	36 products in Indiana in the case of a distributor or to distributor
	3052	+	37 transactions.
	3053	+	38 (d) The Indiana general assembly finds that the tax rate on
	3054	+	39 smokeless tobacco should reflect the relative risk between such
	3055	+	40 products and cigarettes.
	3056	+	41 (e) A consumer who purchases untaxed tobacco products or
	3057	+	42 alternative nicotine products from a distributor or retailer is liable for
	3058	+	ES 453—LS 7499/DI 120 70
	3059	+	1 the tax imposed under subsections (a) or (b).
	3060	+	2 SECTION 41. IC 6-7-2-7.5, AS AMENDED BY THE TECHNICAL
	3061	+	3 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
	3062	+	4 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
	3063	+	5 Sec. 7.5. (a) A tax is imposed on the distribution of closed system
	3064	+	6 cartridges in Indiana at the rate of fifteen percent (15%) of the
	3065	+	7 wholesale price of the closed system cartridge. If a closed system
	3066	+	8 cartridge is sold in the same package as a vapor product device, the tax
	3067	+	9 imposed under this subsection shall only apply to the wholesale price
	3068	+	10 of the closed system cartridge if the wholesale cost of the closed system
	3069	+	11 cartridge can be isolated from the vapor product device on the invoice.
	3070	+	12 (b) The distributor of closed system cartridges, including a person
	3071	+	13 that sells closed system cartridges through an Internet web site, a
	3072	+	14 website, is liable for the tax imposed under subsection (a). The tax is
	3073	+	15 imposed at the time the distributor:
	3074	+	16 (1) brings or causes closed system cartridges to be brought into
	3075	+	17 Indiana for distribution;
	3076	+	18 (2) manufactures closed system cartridges in Indiana for
	3077	+	19 distribution; or
	3078	+	20 (3) transports closed system cartridges to retail dealers in Indiana
	3079	+	21 for resale by those retail dealers; or
	3080	+	22 (4) first receives the closed system cartridges in Indiana in the
	3081	+	23 case of distributor to distributor transactions.
	3082	+	24 (c) A consumer who purchases untaxed closed system cartridges
	3083	+	25 from a distributor or retailer is liable for the tax imposed under
	3084	+	26 subsection (a).
	3085	+	27 SECTION 42. IC 6-7-2-8, AS AMENDED BY THE TECHNICAL
	3086	+	28 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
	3087	+	29 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
	3088	+	30 Sec. 8. (a) A distributor, including a person that sells taxable products
	3089	+	31 through an Internet web site, a website, must obtain a license under
	3090	+	32 this section before it distributes taxable products in Indiana. The
	3091	+	33 department shall issue licenses to applicants that qualify under this
	3092	+	34 section. A license issued under this section is valid for one (1) year two
	3093	+	35 (2) years unless revoked or suspended by the department and is not
	3094	+	36 transferable.
	3095	+	37 (b) An applicant for a license under this section must submit proof
	3096	+	38 to the department of the appointment of an agent for service of process
	3097	+	39 in Indiana if the applicant is:
	3098	+	40 (1) an individual whose principal place of residence is outside
	3099	+	41 Indiana; or
	3100	+	42 (2) a person, other than an individual, that has its principal place
	3101	+	ES 453—LS 7499/DI 120 71
	3102	+	1 of business outside Indiana.
	3103	+	2 (c) To obtain or renew a license under this section, a person must:
	3104	+	3 (1) submit, for each location where it intends to distribute taxable
	3105	+	4 products, an application that includes all information required by
	3106	+	5 the department;
	3107	+	6 (2) pay a fee of twenty-five dollars ($25) at the time of
	3108	+	7 application; and
	3109	+	8 (3) at the time of application, post a bond, issued by a surety
	3110	+	9 company approved by the department, in an amount not less than
	3111	+	10 one thousand dollars ($1,000) and conditioned on the applicant's
	3112	+	11 compliance with this chapter.
	3113	+	12 (d) If business is transacted at two (2) or more places by one (1)
	3114	+	13 distributor, a separate license must be obtained for each place of
	3115	+	14 business.
	3116	+	15 (e) Each license must be numbered, show the name and address of
	3117	+	16 the distributor, and be posted in a conspicuous place at the place of
	3118	+	17 business for which it is issued.
	3119	+	18 (f) If the department determines that a bond provided by a licensee
	3120	+	19 is inadequate, the department may require a new bond in the amount
	3121	+	20 necessary to fully protect the state.
	3122	+	21 SECTION 43. IC 6-7-2-8.5, AS AMENDED BY P.L.118-2024,
	3123	+	22 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3124	+	23 JULY 1, 2025]: Sec. 8.5. (a) A remote seller, including a person that
	3125	+	24 sells taxable products through a website, must obtain a license under
	3126	+	25 this section before a remote seller can sell taxable products in Indiana.
	3127	+	26 The department shall issue licenses to applicants that qualify under this
	3128	+	27 section. A license issued under this section is valid for one (1) year two
	3129	+	28 (2) years unless revoked or suspended by the department and is not
	3130	+	29 transferable.
	3131	+	30 (b) An applicant for a license under this section must submit proof
	3132	+	31 to the department of the appointment of an agent for service of process
	3133	+	32 in Indiana if the applicant is:
	3134	+	33 (1) an individual whose principal place of residence is outside
	3135	+	34 Indiana; or
	3136	+	35 (2) a person, other than an individual, that has its principal place
	3137	+	36 of business outside Indiana.
	3138	+	37 (c) To obtain or renew a license under this section, a person must:
	3139	+	38 (1) submit an application that includes all information required by
	3140	+	39 the department;
	3141	+	40 (2) meet the economic threshold under IC 6-2.5-2-1(d) and obtain
	3142	+	41 a registered retail merchant certificate;
	3143	+	42 (3) attest that the person uses third party age verification
	3144	+	ES 453—LS 7499/DI 120 72
	3145	+	1 technology as described in subsection (d);
	3146	+	2 (4) pay a fee of twenty-five dollars ($25) at the time of
	3147	+	3 application; and
	3148	+	4 (5) at the time of application, post a bond, issued by a surety
	3149	+	5 company approved by the department, in an amount not less than
	3150	+	6 one thousand dollars ($1,000) and conditioned on the applicant's
	3151	+	7 compliance with this chapter.
	3152	+	8 (d) A remote seller must use age verification through an
	3153	+	9 independent, third party age verification service that compares:
	3154	+	10 (1) information available from a commercially available data base
	3155	+	11 (or aggregate of data bases) that are regularly used by government
	3156	+	12 agencies and businesses for the purpose of age and identity
	3157	+	13 verification; and
	3158	+	14 (2) personal information entered by the individual during the
	3159	+	15 ordering process;
	3160	+	16 that establishes that the individual is of the required minimum age.
	3161	+	17 (e) A remote seller that collects the tax imposed under section 7.7
	3162	+	18 of this chapter using the actual cost list method to calculate the tax
	3163	+	19 must provide to the department a certified actual cost list for each
	3164	+	20 individual product offered for sale in the subsequent calendar year. The
	3165	+	21 actual cost list shall be updated annually as new products are added to
	3166	+	22 a remote seller's inventory. New products must be added to the actual
	3167	+	23 cost list using the actual cost first paid for each individual product.
	3168	+	24 (f) If a business owns multiple entities that qualify as a remote
	3169	+	25 seller, a separate license must be obtained for each remote seller.
	3170	+	26 (g) Each license must be numbered, show the name and address of
	3171	+	27 the remote seller, and be kept at the place of business for which it is
	3172	+	28 issued.
	3173	+	29 (h) If the department determines that a bond provided by a licensee
	3174	+	30 is inadequate, the department may require a new bond in the amount
	3175	+	31 necessary to fully protect the state.
	3176	+	32 (i) A license issued under this section does not permit the remote
	3177	+	33 seller to sell cigarettes, vapor products, or other products subject to tax
	3178	+	34 under IC 6-7-1 or IC 6-7-4.
	3179	+	35 SECTION 44. IC 6-7-2-10, AS AMENDED BY P.L.137-2022,
	3180	+	36 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3181	+	37 JULY 1, 2025]: Sec. 10. A license issued under this chapter may be
	3182	+	38 surrendered to the department at any time before its expiration, and the
	3183	+	39 department shall refund an amount of money that bears the same
	3184	+	40 proportion to the fee originally paid as the unexpired period of the
	3185	+	41 permit bears to one (1) year. two (2) years. No refund may be allowed
	3186	+	42 if a license is suspended or revoked.
	3187	+	ES 453—LS 7499/DI 120 73
	3188	+	1 SECTION 45. IC 6-7-4-10, AS AMENDED BY P.L.194-2023,
	3189	+	2 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3190	+	3 JULY 1, 2025]: Sec. 10. (a) It is unlawful for any retail dealer to sell
	3191	+	4 consumable material or vapor products in Indiana unless the retail
	3192	+	5 dealer has a valid open system electronic cigarette retail dealer's
	3193	+	6 certificate issued by the department.
	3194	+	7 (b) The department shall issue certificates to applicants that qualify
	3195	+	8 under this section. A certificate issued under this section is valid for
	3196	+	9 one (1) year two (2) years unless revoked or suspended by the
	3197	+	10 department and is not transferable. An open system electronic cigarette
	3198	+	11 retail dealer's certificate may be revoked or suspended by the
	3199	+	12 department in the same manner, for the same reasons, and is subject to
	3200	+	13 the same procedures as for the revocation or suspension of a retail
	3201	+	14 merchant's certificate under IC 6-2.5-8-7. If a retail dealer's retail
	3202	+	15 merchant's certificate under IC 6-2.5-8 expires or is revoked by the
	3203	+	16 department, an open system electronic cigarette retail dealer's
	3204	+	17 certificate issued to the retail dealer under this subsection shall
	3205	+	18 automatically be revoked without notice otherwise required under
	3206	+	19 IC 6-2.5-8.
	3207	+	20 (c) An applicant for a certificate under this section must submit
	3208	+	21 proof to the department of the appointment of an agent for service of
	3209	+	22 process in Indiana if the applicant is:
	3210	+	23 (1) an individual whose principal place of residence is outside
	3211	+	24 Indiana; or
	3212	+	25 (2) a person, other than an individual, that has its principal place
	3213	+	26 of business outside Indiana.
	3214	+	27 (d) To obtain or renew a certificate under this section, a person
	3215	+	28 must:
	3216	+	29 (1) submit, for each location where it intends to distribute
	3217	+	30 consumable material or vapor products, an application that
	3218	+	31 includes all information required by the department;
	3219	+	32 (2) pay a fee of twenty-five dollars ($25) at the time of
	3220	+	33 application; and
	3221	+	34 (3) at the time of application, post a bond, issued by a surety
	3222	+	35 company approved by the department, in an amount not less than
	3223	+	36 one thousand dollars ($1,000) and conditioned on the applicant's
	3224	+	37 compliance with this chapter.
	3225	+	38 (e) If business is transacted at two (2) or more places by one (1)
	3226	+	39 retail dealer, a separate certificate must be obtained for each place of
	3227	+	40 business.
	3228	+	41 (f) Each certificate must be numbered, show the name and address
	3229	+	42 of the retail dealer, and be posted in a conspicuous place at the place
	3230	+	ES 453—LS 7499/DI 120 74
	3231	+	1 of business for which it is issued.
	3232	+	2 (g) If the department determines that a bond provided by a
	3233	+	3 certificate is inadequate, the department may require a new bond in the
	3234	+	4 amount necessary to fully protect the state.
	3235	+	5 SECTION 46. IC 6-8.1-1-4.5, AS ADDED BY P.L.118-2024,
	3236	+	6 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3237	+	7 JULY 1, 2025]: Sec. 4.5. "Periodic tax" means a listed tax for which a
	3238	+	8 return or report is required to be filed and the tax is required to be
	3239	+	9 remitted four (4) times or more in a calendar year. The term does not
	3240	+	10 include:
	3241	+	11 (1) an estimated tax payment under IC 6-3-2.1-6, IC 6-3-4-4.1,
	3242	+	12 IC 6-3-4-4.2, or IC 6-5.5-6-3; or
	3243	+	13 (2) a withholding payment required to be remitted quarterly under
	3244	+	14 IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15.
	3245	+	15 For purposes of this section, if a provision of the law relating to a listed
	3246	+	16 tax permits a taxpayer to file returns or reports or remit the tax less
	3247	+	17 frequently than four (4) times per calendar year, the listed tax is
	3248	+	18 considered a periodic tax for a taxpayer who files or remits less
	3249	+	19 frequently. The term includes a tax imposed on a purchaser if the
	3250	+	20 purchaser fails to remit a periodic tax to a retail merchant.
	3251	+	21 SECTION 47. IC 6-8.1-3-7.1, AS AMENDED BY P.L.146-2020,
	3252	+	22 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3253	+	23 UPON PASSAGE]: Sec. 7.1. (a) As used in this section, "fiscal officer"
	3254	+	24 means:
	3255	+	25 (1) a fiscal officer (as defined in IC 36-1-2-7); and
	3256	+	26 (2) in the case of a county, the county treasurer.
	3257	+	27 (b) The department and the fiscal officer of an entity that has
	3258	+	28 adopted an innkeeper's tax, a food and beverage tax, or an
	3259	+	29 admissions tax under IC 6-9 shall enter into an agreement with the
	3260	+	30 fiscal officer of an entity that has adopted an innkeeper's tax, a food and
	3261	+	31 beverage tax, or an admissions tax under IC 6-9 to furnish the fiscal
	3262	+	32 officer annually with:
	3263	+	33 (1) the name of each business collecting the taxes listed in this
	3264	+	34 subsection; and
	3265	+	35 (2) the amount of money collected from each business.
	3266	+	36 For an innkeeper's tax or food and beverage tax remitted through a
	3267	+	37 marketplace facilitator, the information must include the name of each
	3268	+	38 business and the amount of money collected from each business by a
	3269	+	39 marketplace facilitator acting on behalf of the business.
	3270	+	40 (c) The agreement must provide that the department must provide
	3271	+	41 the information in an electronic format that the fiscal officer can use.
	3272	+	42 (d) The agreement must include a provision that, unless in
	3273	+	ES 453—LS 7499/DI 120 75
	3274	+	1 accordance with a judicial order, the fiscal officer, employees of the
	3275	+	2 fiscal officer, former employees of the fiscal officer, counsel of the
	3276	+	3 fiscal officer, agents of the fiscal officer, or any other person may not
	3277	+	4 divulge the names of the businesses, the amount of taxes paid by the
	3278	+	5 businesses, or any other information disclosed to the fiscal officer by
	3279	+	6 the department.
	3280	+	7 (e) The department and the fiscal officer of a capital
	3281	+	8 improvement board of managers: shall also enter into an agreement
	3282	+	9 with the fiscal officer of a capital improvement board of managers:
	3283	+	10 (1) created under IC 36-10-8 or IC 36-10-9; and
	3284	+	11 (2) that is responsible for expenditure of funds from:
	3285	+	12 (A) an innkeeper's tax, a food and beverage tax, or an
	3286	+	13 admissions tax under IC 6-9;
	3287	+	14 (B) the supplemental auto rental excise tax under IC 6-6-9.7;
	3288	+	15 or
	3289	+	16 (C) the state gross retail taxes allocated to a professional sports
	3290	+	17 development area fund, a sports and convention facilities
	3291	+	18 operating fund, or other fund under IC 36-7-31 or
	3292	+	19 IC 36-7-31.3;
	3293	+	20 shall enter into an agreement to furnish the fiscal officer annually
	3294	+	21 with the name of each business collecting the taxes listed in this
	3295	+	22 subsection, and the amount of money collected from each business. An
	3296	+	23 agreement with a fiscal officer under this subsection must include a
	3297	+	24 nondisclosure provision the same as is required for a fiscal officer
	3298	+	25 under subsection (d).
	3299	+	26 SECTION 48. IC 6-8.1-7-1.5 IS ADDED TO THE INDIANA
	3300	+	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
	3301	+	28 [EFFECTIVE UPON PASSAGE]: Sec. 1.5. (a) The following
	3302	+	29 definitions apply to this section:
	3303	+	30 (1) "Direct owner" means a person, corporation, or other
	3304	+	31 entity that owns an interest in a pass through entity without
	3305	+	32 owning the interest through another entity.
	3306	+	33 (2) "Owner" means:
	3307	+	34 (A) a partner in a partnership, including a member of a
	3308	+	35 limited liability company;
	3309	+	36 (B) a shareholder in a corporation described in
	3310	+	37 IC 6-3-2-2.8(2); or
	3311	+	38 (C) a beneficiary of an estate or trust.
	3312	+	39 (3) "Pass through entity" has the meaning set forth in
	3313	+	40 IC 6-3-1-35.
	3314	+	41 (b) The department may disclose return information or
	3315	+	42 liabilities related to a return by a pass through entity filed under
	3316	+	ES 453—LS 7499/DI 120 76
	3317	+	1 IC 6-3 or IC 6-5.5 to a direct owner of the pass through entity, but
	3318	+	2 only to the extent necessary for the direct owner to determine the
	3319	+	3 direct owner's tax due or filing requirements under IC 6-3 or
	3320	+	4 IC 6-5.5. For purposes of this subsection, a withholding tax return
	3321	+	5 other than a return filed under IC 6-3-4-12, IC 6-3-4-13, or
	3322	+	6 IC 6-3-4-15 is not a return of a pass through entity permitted to be
	3323	+	7 disclosed.
	3324	+	8 (c) The department may disclose the information from another
	3325	+	9 taxpayer's return to a taxpayer, but only to the extent necessary to
	3326	+	10 determine the requesting taxpayer's income, deductions, credits, or
	3327	+	11 other attributes affecting the requesting taxpayer's liability for a
	3328	+	12 listed tax.
	3329	+	13 (d) If the department determines that a taxpayer is personally
	3330	+	14 liable for a listed tax of another taxpayer or is liable for a listed tax
	3331	+	15 as a transferee of another taxpayer, the department may disclose:
	3332	+	16 (1) any information related to the other taxpayer, but only to
	3333	+	17 the extent the taxpayer is personally liable for the liabilities of
	3334	+	18 the other taxpayer; and
	3335	+	19 (2) any information related to amounts collected or relieved
	3336	+	20 from collection with regard to the liability that the
	3337	+	21 department determines is owed by the taxpayer.
	3338	+	22 SECTION 49. IC 6-8.1-9.5-10, AS AMENDED BY P.L.236-2023,
	3339	+	23 SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3340	+	24 JULY 1, 2025]: Sec. 10. (a) The department of state revenue may
	3341	+	25 charge a debtor a fee of ten percent (10%) of any debts collected under
	3342	+	26 this chapter as a collection fee for the department's services, not
	3343	+	27 including any local collection assistance fees charged under subsection
	3344	+	28 (b).
	3345	+	29 (b) This subsection applies to a debt collected for a claimant agency
	3346	+	30 that is a political subdivision described in section 1(1)(B) of this
	3347	+	31 chapter. A local collection assistance fee not to exceed twenty dollars
	3348	+	32 ($20) twenty-five dollars ($25) shall be imposed on each debt
	3349	+	33 submitted by the claimant agency and collected through a set off under
	3350	+	34 this chapter. The board of the nonprofit organization that operates the
	3351	+	35 clearinghouse registered under section 3.5 of this chapter shall
	3352	+	36 determine the amount of the fee by resolution. Notwithstanding any law
	3353	+	37 concerning delinquent accounts, charges, fees, loans, taxes, or other
	3354	+	38 indebtedness, the local collection assistance fee shall be added to the
	3355	+	39 amount due the claimant agency when the collection is made, not
	3356	+	40 including any fee charged by the department of state revenue under
	3357	+	41 subsection (a). A fee collected under this subsection shall be
	3358	+	42 distributed by the department to:
	3359	+	ES 453—LS 7499/DI 120 77
	3360	+	1 (1) the nonprofit entity with which the department has entered
	3361	+	2 into a contract under section 3.5(b) of this chapter; or
	3362	+	3 (2) at the direction of the nonprofit entity, the nonprofit entity's
	3363	+	4 account held by the investment pool.
	3364	+	5 SECTION 50. IC 6-8.1-19 IS ADDED TO THE INDIANA CODE
	3365	+	6 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
	3366	+	7 JANUARY 1, 2026]:
	3367	+	8 Chapter 19. Tax Remittance and Liability for Payment
	3368	+	9 Sec. 1. If a taxpayer:
	3369	+	10 (1) purchases property or services in a transaction subject to
	3370	+	11 a listed tax;
	3371	+	12 (2) is required to remit the tax as an added amount to the
	3372	+	13 consideration paid to the seller;
	3373	+	14 (3) does not remit the tax due under the provisions of the tax;
	3374	+	15 and
	3375	+	16 (4) is not exempt from tax under the provisions of the tax;
	3376	+	17 the person shall be liable for the tax not remitted.
	3377	+	18 Sec. 2. The taxpayer shall be considered to have not remitted the
	3378	+	19 tax to the department for purposes of this chapter if either the
	3379	+	20 taxpayer or seller has obtained a refund of the tax.
	3380	+	21 Sec. 3. Any unpaid tax under this chapter shall be considered to
	3381	+	22 have been due on the twentieth day of the month following the
	3382	+	23 transaction.
	3383	+	24 Sec. 4. For purposes of this chapter:
	3384	+	25 (1) if a taxpayer is subject to tax in a jurisdiction in Indiana
	3385	+	26 but erroneously pays the tax to another jurisdiction in
	3386	+	27 Indiana, the amount not remitted shall be the difference
	3387	+	28 between the tax imposed by the jurisdictions but not less than
	3388	+	29 zero dollars ($0); and
	3389	+	30 (2) if a taxpayer does not remit the full amount of tax due
	3390	+	31 because:
	3391	+	32 (A) the seller is a marketplace facilitator;
	3392	+	33 (B) the tax is an innkeeper's tax or food and beverage tax
	3393	+	34 under IC 6-9 that is directly remitted to the locality except
	3394	+	35 for marketplace facilitators; and
	3395	+	36 (C) the rate posted by the department on its website for the
	3396	+	37 date of the transaction differs from the rate otherwise
	3397	+	38 imposed by the locality;
	3398	+	39 the taxpayer shall determine the rate of tax due based on the
	3399	+	40 rate posted on the department's website on the date of the
	3400	+	41 transaction.
	3401	+	42 Sec. 5. Any tax due under this chapter shall be reported and
	3402	+	ES 453—LS 7499/DI 120 78
	3403	+	1 remitted on forms and in the manner prescribed by the
	3404	+	2 department.
	3405	+	3 Sec. 6. Any tax collected under this chapter shall be distributed
	3406	+	4 in the manner otherwise provided for the previously uncollected
	3407	+	5 tax.
	3408	+	6 SECTION 51. IC 8-2.1-17-6.5, AS AMENDED BY P.L.215-2023,
	3409	+	7 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3410	+	8 JULY 1, 2025]: Sec. 6.5. (a) "Digital network", for purposes of
	3411	+	9 IC 8-2.1-19.1, means an online enabled application, software, website,
	3412	+	10 or system offered or used by a TNC to enable the prearrangement of
	3413	+	11 rides with TNC drivers.
	3414	+	12 (b) "Digital network", for purposes of this chapter and IC 8-2.1-19.3,
	3415	+	13 means an online enabled application, software, website, or system
	3416	+	14 offered or used by a DNC to enable deliveries with DNC drivers. A
	3417	+	15 digital network is not a product under law.
	3418	+	16 (c) A digital network is not a product under law.
	3419	+	17 SECTION 52. IC 8-2.1-22-2.1 IS AMENDED TO READ AS
	3420	+	18 FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]:
	3421	+	19 Sec. 2.1. (a) This chapter does not apply to the following:
	3422	+	20 (1) Motor vehicles used as school buses while engaged in the
	3423	+	21 transportation of students, under the supervision, control, and
	3424	+	22 direction of school authorities.
	3425	+	23 (2) Motor vehicles used exclusively as taxicabs.
	3426	+	24 (3) Motor vehicles while being used or operated under the
	3427	+	25 control, direction, and supervision of:
	3428	+	26 (A) the United States government, the state, or a political
	3429	+	27 subdivision; or
	3430	+	28 (B) the board of trustees of any state institution.
	3431	+	29 (4) Motor vehicles that are used to provide limited transportation
	3432	+	30 services in conjunction with the operation of a hotel, campground,
	3433	+	31 or food service facility but are not used as a common carrier. For
	3434	+	32 the purpose of this subdivision, compensation for housing,
	3435	+	33 camping, or food combined with transportation is not
	3436	+	34 transportation by motor vehicle for compensation. However,
	3437	+	35 transportation may not be performed for any person if, at the point
	3438	+	36 of origin or within twenty-five (25) miles of that point, there is an
	3439	+	37 equipment point as shown by a proper tariff of a carrier of
	3440	+	38 passengers in Indiana that operates special or charter bus service
	3441	+	39 under the jurisdiction of the department. Exemption from this
	3442	+	40 chapter is not available under this subdivision unless the motor
	3443	+	41 vehicles in question are provided with proof of financial
	3444	+	42 responsibility of the type and in amounts as required of common
	3445	+	ES 453—LS 7499/DI 120 79
	3446	+	1 carriers under IC 8-2.1-22-46.
	3447	+	2 (5) Motor vehicles that are used to provide regular route intercity
	3448	+	3 passenger service.
	3449	+	4 (6) Motor vehicles that are used primarily for van pooling or other
	3450	+	5 ride-sharing programs on a nonprofit basis.
	3451	+	6 (7) Motor vehicles that are used to provide transportation of
	3452	+	7 passengers by a nonprofit corporation if that corporation receives
	3453	+	8 revenue for the transportation service from federal, state, or local
	3454	+	9 governments.
	3455	+	10 (8) A motor vehicle that:
	3456	+	11 (A) has a capacity of not less than seven (7) or more than forty
	3457	+	12 (40) persons;
	3458	+	13 (B) is used to transport employees, including the driver,
	3459	+	14 exclusively between their homes and their employer's place of
	3460	+	15 business, or termini near those places, in a single daily round
	3461	+	16 trip; and
	3462	+	17 (C) is owned or leased by an employer providing commuter
	3463	+	18 van service, which means any person who provides or operates
	3464	+	19 at least one (1) of those vehicles on a nonprofit basis, and
	3465	+	20 whose service does not infringe upon or compete with any
	3466	+	21 service that is provided by any common carrier regulated by
	3467	+	22 the department.
	3468	+	23 (9) Motor vehicles certified as ambulances by the Indiana
	3469	+	24 emergency medical services commission under IC 16-31.
	3470	+	25 (10) The casual, occasional, or reciprocal transportation of
	3471	+	26 household effects or furniture for compensation, not including the
	3472	+	27 transportation for hire of new household effects or furniture to or
	3473	+	28 from a factory, warehouse, or store, by a person who:
	3474	+	29 (A) does not otherwise engage in the described transportation
	3475	+	30 for compensation;
	3476	+	31 (B) is not required under this chapter to hold a certificate or
	3477	+	32 permit to engage in transportation or operation for hire; or
	3478	+	33 (C) does not profess to engage in the business of transporting
	3479	+	34 household effects or furniture for hire.
	3480	+	35 (b) This chapter does not apply to a limousine while the limousine
	3481	+	36 is being used to transport at least one (1) person:
	3482	+	37 (1) from a place of departure; and
	3483	+	38 (2) to a destination;
	3484	+	39 within the corporate boundaries of a city or town if the legislative body
	3485	+	40 of the city or town has adopted an ordinance under IC 36-9-2-4 that
	3486	+	41 takes effect after July 1, 1991, and that regulates limousines within the
	3487	+	42 corporate boundaries of the city or town.
	3488	+	ES 453—LS 7499/DI 120 80
	3489	+	1 SECTION 53. IC 8-2.1-22-4 IS AMENDED TO READ AS
	3490	+	2 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) The department,
	3491	+	3 any member of the department or any authorized representative of the
	3492	+	4 department, may:
	3493	+	5 (1) upon demand, inspect the books, accounts, papers, records,
	3494	+	6 memoranda, equipment, and premises of any common carrier or
	3495	+	7 contract carrier;
	3496	+	8 (2) examine, under oath, any officer, agent, or employee of the
	3497	+	9 common carrier or contract carrier in relation to its business
	3498	+	10 affairs; and
	3499	+	11 (3) adopt rules for inspection of motor vehicles used by common
	3500	+	12 carriers or contract carriers or brokers.
	3501	+	13 (b) Upon complaint in writing filed with the department or upon the
	3502	+	14 department's own initiative without complaint, the department may
	3503	+	15 investigate whether or not any person subject to this chapter has failed
	3504	+	16 to comply with this chapter or with any requirement established under
	3505	+	17 this chapter. If the department after notice and hearing, finds, upon the
	3506	+	18 investigation, that the person has failed to comply with any provision
	3507	+	19 or requirement, the department shall issue an appropriate order to
	3508	+	20 compel compliance. notify the common or contract carrier, in a
	3509	+	21 manner prescribed by the department, to compel compliance.
	3510	+	22 SECTION 54. IC 8-2.1-22-10 IS AMENDED TO READ AS
	3511	+	23 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. If a county, city, or
	3512	+	24 town wants to establish a transportation system that would compete
	3513	+	25 with a motor carrier that is:
	3514	+	26 (1) operating under the jurisdiction of the department; and
	3515	+	27 (2) providing transportation service in the territorial jurisdiction
	3516	+	28 of the county, city, or town;
	3517	+	29 the county, city, or town must first apply for and obtain a certificate
	3518	+	30 under sections 11 and 13 section 12.5 of this chapter.
	3519	+	31 SECTION 55. IC 8-2.1-22-11 IS REPEALED [EFFECTIVE JULY
	3520	+	32 1, 2025]. Sec. 11. A person may not, except as provided in this chapter,
	3521	+	33 transport passengers for compensation:
	3522	+	34 (1) on regular routes within the territorial jurisdiction of a
	3523	+	35 political subdivision; or
	3524	+	36 (2) as a special and charter carrier;
	3525	+	37 until after obtaining from the department a certificate. A certificate may
	3526	+	38 not be issued until after a public hearing and a consideration of the
	3527	+	39 service, if any, rendered in the territory of the proposed motor vehicle
	3528	+	40 operations by other common carriers, whether by motor vehicle,
	3529	+	41 railroad, or otherwise.
	3530	+	42 SECTION 56. IC 8-2.1-22-12.5 IS AMENDED TO READ AS
	3531	+	ES 453—LS 7499/DI 120 81
	3532	+	1 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 12.5. (a) Except as
	3533	+	2 provided in this chapter, a person may not operate a motor vehicle as
	3534	+	3 an intrastate carrier upon an Indiana public highway to transport
	3535	+	4 household goods or passengers for compensation until the person has
	3536	+	5 obtained a certificate from the department.
	3537	+	6 (b) The department may issue a certificate under this section only
	3538	+	7 after conducting a public hearing and considering transportation
	3539	+	8 services provided by other carriers of household goods by motor
	3540	+	9 vehicle, railroad, or other means, that operate in the proposed territory
	3541	+	10 of the person that is applying for a certificate.
	3542	+	11 (b) In order to apply for a certificate to operate as an intrastate
	3543	+	12 carrier of household goods or passengers, a person must submit the
	3544	+	13 following to the department:
	3545	+	14 (1) Completed application forms prescribed by the
	3546	+	15 department.
	3547	+	16 (2) A certificate of existence from the secretary of state.
	3548	+	17 (3) Proof of insurance in a format prescribed by the
	3549	+	18 department.
	3550	+	19 (4) The tariff amount that the carrier intends to charge
	3551	+	20 pursuant to section 23 of this chapter.
	3552	+	21 (5) In the case of a contract carrier, the contracts under which
	3553	+	22 the carrier will be operating pursuant to section 26 of this
	3554	+	23 chapter.
	3555	+	24 (c) The department shall charge an application fee as required
	3556	+	25 under section 40 of this chapter.
	3557	+	26 (d) In determining whether a certificate shall be granted, the
	3558	+	27 department may, among other things, consider the following:
	3559	+	28 (1) Whether the applicant has any tax liabilities and has filed
	3560	+	29 all appropriate tax returns with the department.
	3561	+	30 (2) Whether the applicant is up to date on all unified carrier
	3562	+	31 registration payments.
	3563	+	32 (3) Whether the applicant has any current out of service
	3564	+	33 orders issued by Federal Motor Carrier Safety
	3565	+	34 Administration.
	3566	+	35 (4) Whether the applicant is properly insured.
	3567	+	36 (5) Whether the operations will threaten the safety of the
	3568	+	37 public or be detrimental to the public welfare.
	3569	+	38 (e) Once the department approves an application, the
	3570	+	39 department will issue a receipt of registration to the carrier in
	3571	+	40 addition to issuing a certificate. The carrier must keep a copy of
	3572	+	41 the receipt in each of its vehicles at all times.
	3573	+	42 SECTION 57. IC 8-2.1-22-12.8 IS ADDED TO THE INDIANA
	3574	+	ES 453—LS 7499/DI 120 82
	3575	+	1 CODE AS A NEW SECTION TO READ AS FOLLOWS
	3576	+	2 [EFFECTIVE JULY 1, 2025]: Sec. 12.8. A carrier that has been
	3577	+	3 issued a certificate to transport household goods or passengers for
	3578	+	4 compensation will be subject to the annual registration receipt
	3579	+	5 requirements under IC 8-2.1-24-20. A carrier that fails to meet the
	3580	+	6 requirements under that provision may have their certificate
	3581	+	7 denied by the department.
	3582	+	8 SECTION 58. IC 8-2.1-22-13 IS REPEALED [EFFECTIVE JULY
	3583	+	9 1, 2025]. Sec. 13. (a) Upon the filing of an application for a certificate,
	3584	+	10 the department shall, within a reasonable time, fix a time and place for
	3585	+	11 public hearing in the city of Indianapolis, unless otherwise ordered by
	3586	+	12 the department. A copy of the notice of hearing shall be mailed to the
	3587	+	13 applicant at the address set out in the application at least ten (10) days
	3588	+	14 before the hearing. Any person interested in the proceedings may
	3589	+	15 appear in person or by attorney and offer evidence in support of or in
	3590	+	16 opposition to the application and with or without the filing of formal
	3591	+	17 pleadings.
	3592	+	18 (b) The applicant has, at all times, the burden of proving, by a
	3593	+	19 preponderance of the evidence, that public convenience and necessity
	3594	+	20 requires the proposed operation, and that the proposed operation will
	3595	+	21 not unreasonably impair the public service of any authorized common
	3596	+	22 carrier, or common carriers by motor vehicle or by railroad, then
	3597	+	23 adequately serving the same territory.
	3598	+	24 (c) If the department finds from the evidence and from any
	3599	+	25 additional investigation that the department causes to be made that
	3600	+	26 public convenience and necessity exist for the service proposed, or any
	3601	+	27 part of the service, the application shall be granted, subject to terms,
	3602	+	28 restrictions, and limitations as the department may determine,
	3603	+	29 otherwise, the application shall be denied.
	3604	+	30 (d) In determining whether a certificate shall be granted, the
	3605	+	31 department may, among other things, consider the following:
	3606	+	32 (1) The financial ability of the applicant to furnish adequate
	3607	+	33 service.
	3608	+	34 (2) Whether other transportation service then in existence is
	3609	+	35 adequate.
	3610	+	36 (3) The effect upon other transportation service, and, particularly,
	3611	+	37 whether the granting of the application will or may seriously
	3612	+	38 impair that service.
	3613	+	39 (4) The volume of other traffic over the route proposed by the
	3614	+	40 applicant.
	3615	+	41 (5) The effect and burden upon the highways and the bridges on
	3616	+	42 the highways, and the use of the highways and bridges by the
	3617	+	ES 453—LS 7499/DI 120 83
	3618	+	1 public.
	3619	+	2 (6) Whether the operations will threaten the safety of the public
	3620	+	3 or be detrimental to the public welfare.
	3621	+	4 SECTION 59. IC 8-2.1-22-15 IS AMENDED TO READ AS
	3622	+	5 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. Any certificate or
	3623	+	6 permit or part owned, held, or obtained by the carrier may be sold,
	3624	+	7 assigned, leased, bequeathed, or transferred as other property upon
	3625	+	8 approval by the department. The department may inquire into the
	3626	+	9 responsibility of the person obtaining or seeking to obtain ownership
	3627	+	10 or control of any certificate or permit or part, the person's readiness,
	3628	+	11 ability, and willingness to perform the service proposed, and whether
	3629	+	12 the proposed service, to the extent authorized by the certificate, or
	3630	+	13 permit, is or will be consistent with the public interest and the state
	3631	+	14 transportation policy declared in this title. If the department finds the
	3632	+	15 person to be irresponsible or unable to render satisfactory and adequate
	3633	+	16 service under the certificate or permit or part, or if it finds that the
	3634	+	17 transfer will not be consistent with the public interest, the department
	3635	+	18 may enter an order denying the transfer, in whole or in part. However,
	3636	+	19 a certificate or permit, or part may not be sold, assigned, leased,
	3637	+	20 bequeathed, or transferred. except after a public hearing before the
	3638	+	21 department and after notice as required for other hearings before the
	3639	+	22 department.
	3640	+	23 SECTION 60. IC 8-2.1-22-16 IS REPEALED [EFFECTIVE JULY
	3641	+	24 1, 2025]. Sec. 16. A person may not operate motor vehicles as a
	3642	+	25 contract carrier over the public highways for the transportation of
	3643	+	26 persons or household goods for compensation without first having
	3644	+	27 obtained from the department a contract carrier permit.
	3645	+	28 SECTION 61. IC 8-2.1-22-17 IS REPEALED [EFFECTIVE JULY
	3646	+	29 1, 2025]. Sec. 17. (a) Upon the filing of an application under this
	3647	+	30 chapter for contract carrier authority to operate motor vehicles in
	3648	+	31 intrastate commerce, the department shall, within a reasonable time, fix
	3649	+	32 a time and place for a public hearing in the city of Indianapolis, unless
	3650	+	33 otherwise ordered by the department. A copy of the notice of hearing
	3651	+	34 shall be mailed to the applicant, at the address set out in the
	3652	+	35 application, at least ten (10) days before the date set for hearing. Any
	3653	+	36 person interested in the proceedings may appear in person, or by
	3654	+	37 counsel, and offer any evidence either in support of, or in opposition to,
	3655	+	38 the granting of the authority requested in the application.
	3656	+	39 (b) In determining whether requested contract authority should be
	3657	+	40 granted, the department shall, among other things, consider the
	3658	+	41 following factors:
	3659	+	42 (1) The financial ability of the applicant to furnish adequate
	3660	+	ES 453—LS 7499/DI 120 84
	3661	+	1 contract carrier service.
	3662	+	2 (2) The effect of granting the requested authority on other
	3663	+	3 transportation service then in existence, and particularly whether
	3664	+	4 the granting of authority will seriously impair that other service
	3665	+	5 and will unreasonably impair the efficient public service of any
	3666	+	6 certificated common carrier by motor vehicle, or by railroad, then
	3667	+	7 adequately serving the same territory.
	3668	+	8 (3) Whether or not any certificated common carrier by motor
	3669	+	9 vehicle, or by railroad, then serving the same territory, will
	3670	+	10 furnish transportation services designed to meet the distinct need
	3671	+	11 of the supporting contract shipper or shippers.
	3672	+	12 (c) If the department, after hearing, determines that the proposed
	3673	+	13 operation, as requested in the application, meets all of the requirements
	3674	+	14 of contract carriage, as defined in this chapter, and that the applicant
	3675	+	15 is qualified in all respects to perform the proposed operation, the
	3676	+	16 department shall approve the application and issue the requested
	3677	+	17 authority, subject to terms, restrictions, and limitations as determined
	3678	+	18 by the department.
	3679	+	19 (d) The department shall specify and name in the permit the name
	3680	+	20 of the contracting person. The scope of the permit shall be attached at
	3681	+	21 the time of issuance, along with any reasonable terms, conditions, and
	3682	+	22 limitations consistent with the character of the holder as a contract
	3683	+	23 carrier.
	3684	+	24 SECTION 62. IC 8-2.1-22-22 IS AMENDED TO READ AS
	3685	+	25 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 22. (a) All civil actions
	3686	+	26 by carriers for recovery of their charges or any part must be brought
	3687	+	27 within two (2) years after the time the cause of action accrues.
	3688	+	28 (b) For recovery of overcharges, civil actions must be brought or
	3689	+	29 complaints filed with the department office of the attorney general
	3690	+	30 against carriers subject to this chapter within two (2) years after the
	3691	+	31 time the cause of action accrues, subject to subsection (c). However, if
	3692	+	32 claim for the overcharge has been presented in writing to the carrier
	3693	+	33 within the two (2) year period of limitation, the period shall be
	3694	+	34 extended to include six (6) months after the time notice in writing is
	3695	+	35 given by the carrier to the claimant of disallowance of the claim or any
	3696	+	36 part specified in the notice.
	3697	+	37 (c) If on or before the expiration of the two (2) year period of
	3698	+	38 limitation in subsection (a) or (b), a carrier subject to this chapter
	3699	+	39 begins an action under subsection (a) for recovery of charges in respect
	3700	+	40 of the same transportation service or without beginning action collects
	3701	+	41 charges in respect of that service, the period of limitation shall be
	3702	+	42 extended to include ninety (90) days after the time the action is begun
	3703	+	ES 453—LS 7499/DI 120 85
	3704	+	1 or charges are collected by the carrier.
	3705	+	2 (d) As used in this section, "overcharges" means charges for the
	3706	+	3 transportation services in excess of those applicable to the services
	3707	+	4 under the tariffs lawfully on file with the department.
	3708	+	5 SECTION 63. IC 8-2.1-22-22.5 IS ADDED TO THE INDIANA
	3709	+	6 CODE AS A NEW SECTION TO READ AS FOLLOWS
	3710	+	7 [EFFECTIVE JULY 1, 2025]: Sec. 22.5. A person who violates a
	3711	+	8 provision of this chapter involving a consumer transaction (as
	3712	+	9 defined in IC 24-5-0.5-2(a)(1)) entailing the transportation of
	3713	+	10 passengers or household goods commits a deceptive act that is
	3714	+	11 actionable by the attorney general under IC 24-5-0.5 and is subject
	3715	+	12 to the remedies and penalties under IC 24-5-0.5, in addition to all
	3716	+	13 other remedies and penalties under this chapter.
	3717	+	14 SECTION 64. IC 8-2.1-22-23 IS AMENDED TO READ AS
	3718	+	15 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 23. (a) Every intrastate
	3719	+	16 common carrier by motor vehicle shall file with the department, and
	3720	+	17 print and keep open to public inspection, tariffs showing all rates, fares,
	3721	+	18 charges for transportation, and all service in connection therewith, of
	3722	+	19 passengers or household goods in intrastate commerce between points:
	3723	+	20 (1) on its own route; or
	3724	+	21 (2) on the route of any other common carrier; or
	3725	+	22 (3) on the route of any common carrier by railroad;
	3726	+	23 when and as through routes and joint rates are established.
	3727	+	24 (b) The department may prescribe the form and manner in which the
	3728	+	25 tariffs shall be published and may reject any tariff filed with it that is
	3729	+	26 not in compliance with this section. When so rejected, the tariff is void,
	3730	+	27 and its use shall be unlawful.
	3731	+	28 (c) A common carrier by motor vehicle shall not charge, demand,
	3732	+	29 collect, or receive a greater or less or different compensation for
	3733	+	30 transportation or for any service in connection therewith between
	3734	+	31 points enumerated in the tariff than the rates, fares, and charges
	3735	+	32 specified in the tariffs in effect at the time. A carrier shall not refund or
	3736	+	33 remit in any manner or by any device, directly or indirectly, personally
	3737	+	34 or by agent, any portion of rates, fares, or charges so specified, and
	3738	+	35 shall not extend to any person any facilities for transportation except as
	3739	+	36 are specified in its tariffs.
	3740	+	37 (d) A change may not be made in any fare, charge, rule or practice
	3741	+	38 for or in connection with the transportation of passengers or household
	3742	+	39 goods except after thirty (30) days notice of the proposed change. The
	3743	+	40 notice must plainly state the change proposed to be made and the
	3744	+	41 effective date of the change. The department, upon complaint or upon
	3745	+	42 the department's own motion, may suspend any tariff making any
	3746	+	ES 453—LS 7499/DI 120 86
	3747	+	1 changes provided in this chapter within twenty (20) days after the filing
	3748	+	2 of the tariff and not thereafter.
	3749	+	3 (e) The department may, for good cause shown, allow changes upon
	3750	+	4 notice in less time than specified and permit tariffs to be filed and
	3751	+	5 become effective in particular instances on shorter notice than stated
	3752	+	6 in subsection (d).
	3753	+	7 (f) Whenever the carrier operating a local transportation system
	3754	+	8 wholly within one (1) county files a tariff or schedule of increased rates
	3755	+	9 or fares affecting its patrons in any municipality in which the carrier
	3756	+	10 renders service, the carrier shall give notice by registered mail, on the
	3757	+	11 date the tariff is filed with the department, to the executive and
	3758	+	12 legislative body of the municipality and shall enclose a copy of the
	3759	+	13 tariff filed with the department.
	3760	+	14 (g) A common carrier by motor vehicle shall not engage in the
	3761	+	15 transportation of passengers or household goods unless the tariffs have
	3762	+	16 been filed and published in accordance with this chapter.
	3763	+	17 SECTION 65. IC 8-2.1-22-24 IS AMENDED TO READ AS
	3764	+	18 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 24. (a) Every contract
	3765	+	19 carrier by motor vehicle shall:
	3766	+	20 (1) establish and observe reasonable minimum rates, fares, and
	3767	+	21 charges for any service rendered or to be rendered in the
	3768	+	22 transportation of passengers or household goods or in connection
	3769	+	23 with the transportation of passengers or household goods;
	3770	+	24 (2) establish and observe reasonable regulations and practices to
	3771	+	25 be applied in connection with those reasonable minimum rates,
	3772	+	26 fares, and charges; and
	3773	+	27 (3) file with the department, publish, and keep open for public
	3774	+	28 inspection, in the form and manner prescribed by the department,
	3775	+	29 schedules, or, by consent of contracting parties in lieu of
	3776	+	30 schedules, copies of contracts, containing the minimum rates,
	3777	+	31 fares, or charges of the carrier for the transportation of passengers
	3778	+	32 or household goods in intrastate commerce, and any rule or
	3779	+	33 practice affecting the rates, fares, or charges and the value of the
	3780	+	34 service under the rates, fares, or charges.
	3781	+	35 (b) A contract carrier may not, unless otherwise provided by this
	3782	+	36 chapter, engage in the transportation of passengers or household goods
	3783	+	37 in intrastate commerce unless the minimum charges for the
	3784	+	38 transportation by the carrier have been published, filed, and posted in
	3785	+	39 accordance with this chapter. A reduction may not be made in the
	3786	+	40 charge either directly or by means of any change in any rule or practice
	3787	+	41 affecting the charge or the value of service under the charge, except
	3788	+	42 after thirty (30) days notice of the proposed change filed in the required
	3789	+	ES 453—LS 7499/DI 120 87
	3790	+	1 form and manner the department may, for good cause shown, allow a
	3791	+	2 change upon less notice. However, the notice must plainly state the
	3792	+	3 change proposed to be made and the time when the change will take
	3793	+	4 effect.
	3794	+	5 (c) A carrier shall not demand, charge, or collect less compensation
	3795	+	6 for the transportation than the charges filed in accordance with this
	3796	+	7 section, as affected by any rule or practice so filed, or as may be
	3797	+	8 prescribed by the department. It is unlawful for the carrier, by the
	3798	+	9 furnishing of special service, facilities, or privileges, or by any other
	3799	+	10 device, to charge, accept, or receive less than the minimum charges so
	3800	+	11 filed or prescribed. The carrier, or any class or group, of the carrier may
	3801	+	12 apply to the department for relief from this subsection, and the
	3802	+	13 department may, after hearing, grant relief to the extent, for the time,
	3803	+	14 and in the manner as in its judgment is consistent with the public
	3804	+	15 interest.
	3805	+	16 (d) Whenever, after hearing, upon complaint or upon its own
	3806	+	17 initiative, the department finds that any minimum rate, fare, or charge
	3807	+	18 of any contract carrier by motor vehicle, or any rule, regulation, or
	3808	+	19 practice of the carrier affecting the minimum rate, fare, or charge, or
	3809	+	20 the value of the service, for the transportation of passengers or
	3810	+	21 household goods or in connection under the rate, fare or charge, is in
	3811	+	22 violation of any provision of this chapter, the department may prescribe
	3812	+	23 that transportation, just and reasonable minimum rates, fare, or charge,
	3813	+	24 or a rule, regulation, or practice as judgment is necessary in the public
	3814	+	25 interest and will not be in violation of any provision of this chapter.
	3815	+	26 The minimum rate, fare, or charge, or rule or practice, prescribed by
	3816	+	27 the department, may not give an advantage or preference to the carrier
	3817	+	28 in competition with any common carrier by motor vehicle subject to
	3818	+	29 this chapter, which the department may find to be undue or inconsistent
	3819	+	30 with the public interest, and the department shall give due
	3820	+	31 consideration to the cost of the services rendered by those carriers, and
	3821	+	32 to the effect of the minimum rate, fare, or charge, or rule, regulation, or
	3822	+	33 practice, upon the movement of traffic by such carriers. All complaints
	3823	+	34 must state fully the facts complained of and the reasons for the
	3824	+	35 complaint and shall be made under oath.
	3825	+	36 SECTION 66. IC 8-2.1-22-27 IS REPEALED [EFFECTIVE JULY
	3826	+	37 1, 2025]. Sec. 27. (a) A person shall not for compensation sell or offer
	3827	+	38 for sale transportation subject to this chapter, make any contract,
	3828	+	39 agreement, or arrangement to provide, procure, furnish, or arrange for
	3829	+	40 the transportation of passengers, or profess by advertisement,
	3830	+	41 solicitation, or otherwise as one who sells, provides, procures,
	3831	+	42 contracts, or arranges for the transportation of passengers, unless the
	3832	+	ES 453—LS 7499/DI 120 88
	3833	+	1 person holds a broker's license issued by the department to engage in
	3834	+	2 the transactions. A person may not engage in transportation subject to
	3835	+	3 this chapter unless the person holds a certificate or a permit as provided
	3836	+	4 in this chapter. In the execution of any contract, agreement, or
	3837	+	5 arrangement to sell, provide, procure, furnish, or arrange for the
	3838	+	6 transportation of passengers, a person may not employ any common or
	3839	+	7 contract carrier who is not the lawful holder of an effective certificate
	3840	+	8 or permit issued as provided in this chapter.
	3841	+	9 (b) This section does not apply to any carrier holding a certificate or
	3842	+	10 a permit under this chapter or to any employee or agent of the motor
	3843	+	11 carrier, so far as concerns transportation to be furnished wholly by the
	3844	+	12 carrier or jointly with other motor carriers holding like certificates or
	3845	+	13 permits, or with a common carrier by railroad, express, or water.
	3846	+	14 (c) A brokerage license shall be issued to any qualified applicant for
	3847	+	15 a brokerage license, authorizing any part of the operations covered by
	3848	+	16 the application, if it is found that the applicant is fit, willing, and able
	3849	+	17 to properly perform the service proposed and to conform to this chapter
	3850	+	18 and the requirements, and rules of the department under this chapter,
	3851	+	19 and that the proposed service, to the extent to be authorized by the
	3852	+	20 license, is or will be consistent with the public interest, otherwise the
	3853	+	21 application shall be denied.
	3854	+	22 (d) The department shall prescribe reasonable rules for the
	3855	+	23 protection of travelers by motor vehicle to be observed by any person
	3856	+	24 holding a brokerage license, and no such license may be issued or
	3857	+	25 remain in effect unless the person furnishes a bond or other security
	3858	+	26 approved by the department, in a form and amount as will insure
	3859	+	27 financial responsibility and the supplying of authorized transportation
	3860	+	28 in accordance with contracts, agreements, or arrangements for the
	3861	+	29 transportation.
	3862	+	30 (e) The department and its special agents and examiners have the
	3863	+	31 same authority as to accounts, reports, and records, including
	3864	+	32 inspection and preservation of the accounts, reports, and records, of any
	3865	+	33 person holding a brokerage license issued under this section that the
	3866	+	34 department and the department's special agents and examiners have
	3867	+	35 under this chapter with respect to motor carriers subject to this chapter.
	3868	+	36 (f) A person who violates this section commits a Class C infraction.
	3869	+	37 SECTION 67. IC 8-2.1-22-27.5 IS ADDED TO THE INDIANA
	3870	+	38 CODE AS A NEW SECTION TO READ AS FOLLOWS
	3871	+	39 [EFFECTIVE JULY 1, 2025]: Sec. 27.5. (a) A person may not engage
	3872	+	40 in any of the following activities unless the person has obtained a
	3873	+	41 brokerage license from the department:
	3874	+	42 (1) sell or offer for sale transportation subject to this chapter
	3875	+	ES 453—LS 7499/DI 120 89
	3876	+	1 for compensation;
	3877	+	2 (2) make any contract, agreement, or arrangement to provide,
	3878	+	3 procure, furnish, or arrange for the transportation of
	3879	+	4 passengers; or
	3880	+	5 (3) profess by advertisement, solicitation, or otherwise as one
	3881	+	6 who sells, provides, procures, contracts, or arranges for the
	3882	+	7 transportation of passengers.
	3883	+	8 In the execution of any contract, agreement, or arrangement to
	3884	+	9 sell, provide, procure, furnish, or arrange for the transportation of
	3885	+	10 passengers, a person may not employ any common or contract
	3886	+	11 carrier who is not the lawful holder of an effective certificate issued
	3887	+	12 as provided in this chapter.
	3888	+	13 (b) A person is not required to obtain a brokerage license from
	3889	+	14 the department if the person holds a certificate under this chapter,
	3890	+	15 or if the person is an employee or agent of the motor carrier, when
	3891	+	16 that person furnishes transportation wholly by the carrier or
	3892	+	17 jointly with other motor carriers holding like certificates.
	3893	+	18 (c) To apply for a brokerage license, a person must submit the
	3894	+	19 following to the department:
	3895	+	20 (1) a completed application form prescribed by the
	3896	+	21 department;
	3897	+	22 (2) a certificate of existence from the secretary of state; and
	3898	+	23 (3) a surety bond.
	3899	+	24 (d) In determining whether a brokerage license shall be issued,
	3900	+	25 the department may, among other things, consider the following:
	3901	+	26 (1) Whether the person has any tax liabilities and has filed all
	3902	+	27 appropriate tax returns with the department.
	3903	+	28 (2) Whether the person is up to date on all unified carrier
	3904	+	29 registration payments.
	3905	+	30 (3) Whether the person is properly insured.
	3906	+	31 (e) The department and its special agents and examiners have
	3907	+	32 the same authority as to accounts, reports, and records, including
	3908	+	33 inspection and preservation of the accounts, reports, and records
	3909	+	34 of any person holding a brokerage license issued under this section,
	3910	+	35 that the department and the department's special agents and
	3911	+	36 examiners have under this chapter with respect to motor carriers
	3912	+	37 subject to this chapter.
	3913	+	38 (f) The department shall charge an application fee under section
	3914	+	39 40 of this chapter.
	3915	+	40 (g) A person who violates this section commits a Class C
	3916	+	41 infraction.
	3917	+	42 (h) A person that has been issued a brokerage license must
	3918	+	ES 453—LS 7499/DI 120 90
	3919	+	1 renew the license with the department on a annual basis. The
	3920	+	2 department shall charge an annual renewal fee.
	3921	+	3 SECTION 68. IC 8-2.1-22-28 IS REPEALED [EFFECTIVE JULY
	3922	+	4 1, 2025]. Sec. 28. A person may not transport passengers for
	3923	+	5 compensation as a special and charter carrier until after obtaining a
	3924	+	6 certificate from the department, unless on December 31, 1982, the
	3925	+	7 person:
	3926	+	8 (1) held a certificate for a special and charter carrier; or
	3927	+	9 (2) was exempt from the requirement for a certificate for a special
	3928	+	10 and charter carrier under IC 8-2-7-29.
	3929	+	11 SECTION 69. IC 8-2.1-22-30 IS AMENDED TO READ AS
	3930	+	12 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 30. (a) Any certificate,
	3931	+	13 or permit, upon application of the holder of the certificate, or permit,
	3932	+	14 in the discretion of the department, may be amended or revoked in
	3933	+	15 whole or in part. or may, upon complaint or on In addition, the
	3934	+	16 department's own initiative, department may, after notice is provided,
	3935	+	17 and hearing, be suspended, changed or revoked suspend, change, or
	3936	+	18 revoke a certificate in whole or in part for the holder's willful failure
	3937	+	19 to comply with any provision of this chapter, or with any lawful order
	3938	+	20 or rule prescribed by the department, or with any term, condition, or
	3939	+	21 limitation of the certificate. or permit.
	3940	+	22 (b) In any cause instituted by the department on its own initiative,
	3941	+	23 the burden is on the carrier to show cause why the certificate or permit
	3942	+	24 should not be suspended, changed, or revoked in whole or in part and
	3943	+	25 the department, by its authorized representative, may introduce
	3944	+	26 evidence in the hearing.
	3945	+	27 SECTION 70. IC 8-2.1-22-36, AS AMENDED BY P.L.45-2011,
	3946	+	28 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3947	+	29 JULY 1, 2025]: Sec. 36. (a) As used in this section, "eligible event" has
	3948	+	30 the meaning set forth in IC 6-8-12-2.
	3949	+	31 (b) In addition to all other powers granted to the department under
	3950	+	32 this chapter, the department may issue, in accordance with its rules,
	3951	+	33 temporary authority or emergency temporary authority to the following:
	3952	+	34 (1) Persons to whom permanent permits or certificates have been
	3953	+	35 issued.
	3954	+	36 (2) Persons who have filed new applications for permanent
	3955	+	37 permits or certificates.
	3956	+	38 (3) Persons when there appears a necessity to make one (1) trip or
	3957	+	39 occasional trips, including during an eligible event.
	3958	+	40 The department may grant temporary authority or emergency
	3959	+	41 temporary authority under subdivision (3) during an eligible event for
	3960	+	42 a period not greater than fifteen (15) consecutive days.
	3961	+	ES 453—LS 7499/DI 120 91
	3962	+	1 (c) An application for temporary authority or emergency temporary
	3963	+	2 authority during an eligible event is not subject to section 11 or 13 12.5
	3964	+	3 of this chapter.
	3965	+	4 SECTION 71. IC 8-2.1-22-37 IS AMENDED TO READ AS
	3966	+	5 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 37. In addition to all
	3967	+	6 other powers granted to the department under this chapter, the
	3968	+	7 department may suspend, in whole or in part, any certificate or permit,
	3969	+	8 upon the application of the holder thereof, without notice, for the
	3970	+	9 duration of a declared war or a declared national emergency and for a
	3971	+	10 period of six (6) months thereafter, or for any lesser period of time.
	3972	+	11 SECTION 72. IC 8-2.1-22-40, AS AMENDED BY P.L.176-2006,
	3973	+	12 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3974	+	13 JULY 1, 2025]: Sec. 40. (a) All applications under this chapter for a
	3975	+	14 common carrier certificate or a contract carrier permit to operate motor
	3976	+	15 vehicles, intrastate or interstate, shall be made on forms prescribed by
	3977	+	16 the department.
	3978	+	17 (b) All applications for a common carrier certificate of public
	3979	+	18 convenience and necessity, or a contract carrier permit, to operate
	3980	+	19 motor vehicles intrastate on the public highways which applications
	3981	+	20 require a public hearing thereon, shall be accompanied by a filing fee
	3982	+	21 of one hundred dollars ($100). Each petition for reinstatement of a
	3983	+	22 common carrier certificate of public convenience and necessity, or a
	3984	+	23 contract carrier permit, to operate motor vehicles intrastate, on the
	3985	+	24 highways of this state, shall be accompanied by a filing fee of fifty
	3986	+	25 dollars ($50). A common carrier reinstatement shall only occur
	3987	+	26 within two (2) years of the voluntarily ceased operations date
	3988	+	27 provided to the department by the carrier.
	3989	+	28 (c) All applications for a an emergency temporary certificate of
	3990	+	29 public convenience and necessity, or for a contract carrier permit to
	3991	+	30 operate motor vehicles on the highways of this state in intrastate
	3992	+	31 commerce, shall be accompanied by a filing fee of one hundred dollars
	3993	+	32 ($100).
	3994	+	33 (d) All applications for a change in the name of the holder of a
	3995	+	34 common carrier certificate, of public convenience and necessity, of a
	3996	+	35 common carrier certificate of authority or certificate of registration, or
	3997	+	36 of a contract carrier permit, which change of name does not involve a
	3998	+	37 change in the ownership of the operating rights of the certificate or
	3999	+	38 permit holder, shall be made by verified petition to the department, and
	4000	+	39 the applications shall be accompanied by a filing fee of twenty-five
	4001	+	40 dollars ($25).
	4002	+	41 (e) In addition to the filing fees prescribed in subsection (b), all
	4003	+	42 applications for a common carrier certificate of public convenience and
	4004	+	ES 453—LS 7499/DI 120 92
	4005	+	1 necessity, or for a contract carrier permit, to operate motor vehicles
	4006	+	2 intrastate, on the public highways, which applications require a public
	4007	+	3 hearing thereon, shall be accompanied by a publication fee of eighty
	4008	+	4 dollars ($80). Whenever any republication is required through no fault
	4009	+	5 of the department, the party responsible therefor shall be required to
	4010	+	6 pay an additional publication fee of eighty dollars ($80) for each
	4011	+	7 republication.
	4012	+	8 (f) Each petition for rehearing of an application for a common
	4013	+	9 carrier certificate of public convenience and necessity, or for a contract
	4014	+	10 carrier permit, to operate motor vehicles intrastate, on the public
	4015	+	11 highways, shall be accompanied by a filing fee of twenty-five dollars
	4016	+	12 ($25).
	4017	+	13 (g) (e) Each application or petition for alteration or change of a
	4018	+	14 common carrier certificate of public convenience and necessity, or a
	4019	+	15 contract carrier permit, to operate motor vehicles intrastate, on the
	4020	+	16 public highways, shall be accompanied by a filing fee of fifty dollars
	4021	+	17 ($50).
	4022	+	18 (h) Each application requesting permission to deviate from the
	4023	+	19 department's tariff publishing regulations shall be accompanied by a
	4024	+	20 filing fee of fifteen dollars ($15).
	4025	+	21 SECTION 73. IC 8-2.1-22-42 IS AMENDED TO READ AS
	4026	+	22 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 42. (a) An intrastate
	4027	+	23 motor carrier regulated under this chapter shall display identification,
	4028	+	24 in the method prescribed by rules of the department, on each motor
	4029	+	25 vehicle it operates.
	4030	+	26 (b) A person who violates this section commits a Class C infraction.
	4031	+	27 misdemeanor.
	4032	+	28 SECTION 74. IC 8-2.1-22-44 IS AMENDED TO READ AS
	4033	+	29 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 44. All fees prescribed
	4034	+	30 in this chapter shall be paid to the treasurer of state through the
	4035	+	31 department and deposited in the motor carrier regulation fund
	4036	+	32 established by IC 8-2.1-23-1.
	4037	+	33 SECTION 75. IC 8-2.1-22-45 IS AMENDED TO READ AS
	4038	+	34 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 45. (a) A motor carrier
	4039	+	35 regulated under this chapter that augments equipment, interchanges
	4040	+	36 equipment, or leases equipment, with or without drivers, shall comply
	4041	+	37 with the rules of the department governing lease and interchange of
	4042	+	38 vehicles.
	4043	+	39 (b) A person who violates this section commits a Class C infraction.
	4044	+	40 misdemeanor.
	4045	+	41 SECTION 76. IC 8-2.1-22-46, AS AMENDED BY P.L.208-2018,
	4046	+	42 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	4047	+	ES 453—LS 7499/DI 120 93
	4048	+	1 JULY 1, 2025]: Sec. 46. (a) Notwithstanding any other provision of this
	4049	+	2 chapter, common and contract carriers and other carriers engaged in
	4050	+	3 the transportation of passengers or household goods for hire, over
	4051	+	4 regular or irregular routes, whether operating pursuant to a certificate
	4052	+	5 or permit or as an exempt carrier under section 2.1(5) of this chapter,
	4053	+	6 shall file with the department proof of financial responsibility in the
	4054	+	7 form of surety bonds or policies of insurance or shall qualify as a
	4055	+	8 self-insured. The minimum level of financial responsibility required
	4056	+	9 shall be as follows:
	4057	+	10 (1) Except as provided in subdivision (2), the minimum level
	4058	+	11 established under 49 U.S.C. 13906(a)(1).
	4059	+	12 (2) For contract carriers that transport railroad employees, at least
	4060	+	13 five million dollars ($5,000,000).
	4061	+	14 (b) A person who violates this section commits a Class C infraction.
	4062	+	15 However, the offense is a Class A misdemeanor if the person has a
	4063	+	16 prior unrelated judgment for violating this section.
	4064	+	17 (c) In addition to any other penalty imposed upon a person for a
	4065	+	18 conviction of a Class A misdemeanor under subsection (b), the law
	4066	+	19 enforcement agency may impound the vehicles owned by the person.
	4067	+	20 Unless the vehicle is impounded or forfeited under a law other than this
	4068	+	21 section, the vehicle shall be released to the carrier when the carrier
	4069	+	22 complies with this section.
	4070	+	23 SECTION 77. IC 8-2.1-23-2, AS AMENDED BY P.L.198-2016,
	4071	+	24 SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	4072	+	25 JULY 1, 2024 (RETROACTIVE)]: Sec. 2. The treasurer of state shall
	4073	+	26 deposit fees collected by the department under this article,
	4074	+	27 IC 6-6-4.1-13, IC 9-17-2, IC 9-17-3, IC 9-18.1-5, IC 9-18.1-6-4,
	4075	+	28 IC 9-18.1-11, IC 9-18.1-13, IC 9-20-5-7(b), IC 9-20-5-7(c), and
	4076	+	29 IC 9-20-18-14.5 in the motor carrier regulation fund to the extent
	4077	+	30 designated in the aforementioned statutes.
	4078	+	31 SECTION 78. IC 9-17-2-20 IS ADDED TO THE INDIANA CODE
	4079	+	32 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	4080	+	33 1, 2024 (RETROACTIVE)]: Sec. 20. (a) This section applies after
	4081	+	34 June 30, 2024.
	4082	+	35 (b) This section applies only to fees, penalties, and fines
	4083	+	36 described in this chapter that are collected by the department of
	4084	+	37 state revenue pursuant to IC 9-18.1-13-2.
	4085	+	38 (c) For any portion of fees, penalties, or fines collected by the
	4086	+	39 department that require deposit into the commission fund, the
	4087	+	40 department shall instead deposit a certain amount of that portion
	4088	+	41 into the motor carrier regulation fund established by IC 8-2.1-23-1
	4089	+	42 as follows:
	4090	+	ES 453—LS 7499/DI 120 94
	4091	+	1 (1) For the speed title fee imposed pursuant to section 13.5 of
	4092	+	2 this chapter, twenty-five dollars ($25) shall be deposited in the
	4093	+	3 motor carrier regulation fund.
	4094	+	4 (2) For the title fee imposed pursuant to section 14.5 of this
	4095	+	5 chapter, two dollars and fifty cents ($2.50) shall be deposited
	4096	+	6 in the motor carrier regulation fund, and two dollars and fifty
	4097	+	7 cents ($2.50) shall be deposited in the commission fund.
	4098	+	8 (d) Except as provided in subsection (c), all other distributions
	4099	+	9 shall be deposited as required by the provisions of this chapter.
	4100	+	10 SECTION 79. IC 9-17-3-2, AS AMENDED BY P.L.27-2018,
	4101	+	11 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	4102	+	12 JULY 1, 2024 (RETROACTIVE)]: Sec. 2. (a) If a certificate of title:
	4103	+	13 (1) is lost or stolen;
	4104	+	14 (2) is mutilated;
	4105	+	15 (3) is destroyed; or
	4106	+	16 (4) becomes illegible;
	4107	+	17 the person that owns the vehicle or the legal representative or legal
	4108	+	18 successor in interest of the person that owns the vehicle for which the
	4109	+	19 certificate of title was issued, as shown by the records of the bureau,
	4110	+	20 shall apply for and may obtain a duplicate certificate of title.
	4111	+	21 (b) To obtain a duplicate certificate of title under subsection (a), a
	4112	+	22 person must:
	4113	+	23 (1) furnish information satisfactory to the bureau concerning the
	4114	+	24 loss, theft, mutilation, destruction, or illegibility of the certificate
	4115	+	25 of title; and
	4116	+	26 (2) pay the applicable fee under subsection (e) or (f).
	4117	+	27 (c) The word "duplicate" shall be notated on the certificate of title
	4118	+	28 issued under this section.
	4119	+	29 (d) When a duplicate certificate of title is issued, the previous
	4120	+	30 certificate of title becomes void.
	4121	+	31 (e) The fee for a duplicate certificate of title issued before January
	4122	+	32 1, 2017, for a vehicle other than a watercraft is eight dollars ($8). The
	4123	+	33 fee shall be distributed as follows:
	4124	+	34 (1) One dollar ($1) to the motor vehicle highway account.
	4125	+	35 (2) One dollar ($1) to the highway, road and street fund.
	4126	+	36 (3) Six dollars ($6) to the commission fund.
	4127	+	37 (f) The fee for a duplicate certificate of title issued before January
	4128	+	38 1, 2017, for a watercraft is fifteen dollars and fifty cents ($15.50). The
	4129	+	39 fee shall be distributed as follows:
	4130	+	40 (1) Fifty cents ($0.50) to the state motor vehicle technology fund.
	4131	+	41 (2) Two dollars ($2) to the crossroads 2000 fund.
	4132	+	42 (3) One dollar and twenty-five cents ($1.25) to the integrated
	4133	+	ES 453—LS 7499/DI 120 95
	4134	+	1 public safety communications fund.
	4135	+	2 (4) Four dollars and seventy-five cents ($4.75) to the commission
	4136	+	3 fund.
	4137	+	4 (5) Seven dollars ($7) to the department of natural resources.
	4138	+	5 (g) The fee for a duplicate certificate of title issued after December
	4139	+	6 31, 2016, is fifteen dollars ($15). The Except as provided in
	4140	+	7 subsection (h), the fee shall be distributed as follows:
	4141	+	8 (1) Fifty cents ($0.50) to the state motor vehicle technology fund.
	4142	+	9 (2) One dollar and twenty-five cents ($1.25) to the department of
	4143	+	10 natural resources.
	4144	+	11 (3) Three dollars and twenty-five cents ($3.25) to the motor
	4145	+	12 vehicle highway account.
	4146	+	13 (4) Five dollars ($5) to the crossroads 2000 fund.
	4147	+	14 (5) One dollar and twenty-five cents ($1.25) to the integrated
	4148	+	15 public safety communications fund.
	4149	+	16 (6) Three dollars and seventy-five cents ($3.75) to the
	4150	+	17 commission fund.
	4151	+	18 (h) After June 30, 2024, when a fee imposed under subsection (g)
	4152	+	19 is collected by the department, instead of depositing three dollars
	4153	+	20 and seventy-five cents ($3.75) into the commission fund as required
	4154	+	21 by subsection (g)(6), the department shall instead deposit one
	4155	+	22 dollar and eighty-eight cents ($1.88) of that amount into the motor
	4156	+	23 carrier regulation fund established by IC 8-2.1-23-1, and the
	4157	+	24 remainder shall be deposited in the commission fund.
	4158	+	25 SECTION 80. IC 9-18.1-5-10.7 IS ADDED TO THE INDIANA
2780	4159		26 CODE AS A NEW SECTION TO READ AS FOLLOWS
2781		-	27 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9.5. (a) To
2782		-	28 receive a credit under this chapter:
2783		-	29 (1) the physician owned medical practice must apply for the
2784		-	30 department's approval of the tax credit for its owners for a
2785		-	31 calendar year in the manner prescribed by the department
2786		-	32 after June 30 of that calendar year, but not later than June 30
2787		-	33 of the subsequent calendar year;
2788		-	34 (2) the physician owned medical practice must submit with
2789		-	35 the application a certified list of each of the physicians who
2790		-	36 has an ownership interest in the legal entity described in
2791		-	37 section 6 of this chapter and any additional information that
2792		-	38 the department determines is necessary for the calculation of
2793		-	39 the credit under this chapter;
2794		-	40 (3) the taxpayer must attach proof of the department's
2795		-	41 approval of the tax credit to the taxpayer's state tax return or
2796		-	42 returns; and
2797		-	ES 453—LS 7499/DI 120 64
2798		-	1 (4) the taxpayer must claim the approved tax credit on the
2799		-	2 taxpayer's state tax return or returns in the manner
2800		-	3 prescribed by the department.
2801		-	4 (b) The department shall record the time of filing of each
2802		-	5 application for the department's approval of a tax credit and shall,
2803		-	6 except as provided in subsection (c), approve granting the credit to
2804		-	7 the taxpayer, if the taxpayer otherwise qualifies for a credit under
2805		-	8 this chapter, in the chronological order in which the application for
2806		-	9 the department's approval is filed in the year.
2807		-	10 (c) If the total credits approved under this section equal the
2808		-	11 maximum amount allowable in the year, the department may not
2809		-	12 approve an application for the credit filed later in that year.
2810		-	13 SECTION 33. IC 6-3.1-40-11 IS ADDED TO THE INDIANA
2811		-	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
2812		-	15 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a)
2813		-	16 Subject to subsection (b), the total amount of tax credits awarded
2814		-	17 under this chapter may not exceed ten million dollars ($10,000,000)
2815		-	18 in the state fiscal year beginning July 1, 2025, and ending June 30,
2816		-	19 2026, and in each state fiscal year thereafter.
2817		-	20 (b) For a taxable year beginning after December 31, 2024, and
2818		-	21 before January 1, 2026, only that part of a taxpayer's tax credit
2819		-	22 that is attributable to the period of time beginning after June 30,
2820		-	23 2025, and before January 1, 2026, is subject to the maximum
2821		-	24 amount provided in subsection (a).
2822		-	25 SECTION 34. IC 6-3.1-40-12 IS ADDED TO THE INDIANA
2823		-	26 CODE AS A NEW SECTION TO READ AS FOLLOWS
2824		-	27 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. The
2825		-	28 department, on a website used by the department to provide
2826		-	29 information to the public, shall provide the following information:
2827		-	30 (1) The application for the credit provided in this chapter.
2828		-	31 (2) A timeline for receiving the credit provided in this chapter.
2829		-	32 (3) The total amount of credits awarded under this chapter
2830		-	33 during the current state fiscal year.
2831		-	34 SECTION 35. IC 6-3.6-7-8.5, AS ADDED BY P.L.255-2017,
2832		-	35 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2833		-	36 UPON PASSAGE]: Sec. 8.5. (a) This section applies to Fountain
2834		-	37 County.
2835		-	38 (b) The county council may, by ordinance, determine that additional
2836		-	39 local income tax revenue is needed in the county to do the following:
2837		-	40 (1) Finance, construct, acquire, improve, renovate, and equip the
2838		-	41 county jail and related buildings and parking facilities, including
2839		-	42 costs related to the demolition of existing buildings, the
2840		-	ES 453—LS 7499/DI 120 65
2841		-	1 acquisition of land, and any other reasonably related costs.
2842		-	2 (2) Repay bonds issued or leases entered into for the purposes
2843		-	3 described in subdivision (1).
2844		-	4 (c) If the county council makes the determination set forth in
2845		-	5 subsection (b), the county council may adopt an ordinance to impose
2846		-	6 a local income tax rate of not more than fifty-five hundredths percent
2847		-	7 (0.55%). However, the tax rate may not be greater than the rate
2848		-	8 necessary to pay for the purposes described in subsection (b).
2849		-	9 (d) The tax rate may be imposed only until the later of the following
2850		-	10 dates:
2851		-	11 (1) The date on which the financing, construction, acquisition,
2852		-	12 improvement, renovation, and equipping of the facilities as
2853		-	13 described in subsection (b) are completed.
2854		-	14 (2) The date on which the last of any bonds issued (including
2855		-	15 refunding bonds) or leases entered into to finance the
2856		-	16 construction, acquisition, improvement, renovation, and
2857		-	17 equipping of the facilities described in subsection (b) are fully
2858		-	18 paid.
2859		-	19 (e) The term of a bond issued (including any refunding bond) or a
2860		-	20 lease entered into under subsection (b) may not exceed twenty-five (25)
2861		-	21 years.
2862		-	22 (f) The county treasurer shall establish a county jail revenue fund to
2863		-	23 be used only for the purposes described in this section. Local income
2864		-	24 tax revenues derived from the tax rate imposed under this section shall
2865		-	25 be deposited in the county jail revenue fund.
2866		-	26 (g) Local income tax revenues derived from the tax rate imposed
2867		-	27 under this section:
2868		-	28 (1) may be used only for the purposes described in this section;
2869		-	29 (2) may not be considered by the department of local government
2870		-	30 finance in determining the county's maximum permissible
2871		-	31 property tax levy limit under IC 6-1.1-18.5; and
2872		-	32 (3) may be pledged to the repayment of bonds issued or leases
2873		-	33 entered into for the purposes described in subsection (b).
2874		-	34 (h) Subject to subsection (i), if the county council determines
2875		-	35 that the county jail revenue fund established under subsection (f)
2876		-	36 contains excess reserves, the county council may, before January
2877		-	37 1, 2026, adopt a resolution to make a one (1) time transfer from the
2878		-	38 county jail revenue fund to the county general fund to be used only
2879		-	39 for emergency management services within the county. The
2880		-	40 resolution must include the following:
2881		-	41 (1) A determination that the county jail revenue fund contains
2882		-	42 excess reserves and that a transfer from the county jail
2883		-	ES 453—LS 7499/DI 120 66
2884		-	1 revenue fund to the county general fund is necessary.
2885		-	2 (2) The total amount of excess reserves contained in the
2886		-	3 county jail revenue fund as of the date the determination is
2887		-	4 made that the county jail revenue fund contains excess
2888		-	5 reserves.
2889		-	6 (3) The total amount to be transferred from the county jail
2890		-	7 revenue fund to the county general fund.
2891		-	8 (4) The date on which the transfer from the county jail
2892		-	9 revenue fund to the county general fund will occur.
2893		-	10 (i) Prior to adopting a resolution under subsection (h), the
2894		-	11 county council must adopt a new ordinance under subsection (c)
2895		-	12 that adjusts the local income tax rate to a rate that:
2896		-	13 (1) complies with the limitations described in subsection (c);
2897		-	14 and
2898		-	15 (2) is not greater than the rate necessary to pay for the
2899		-	16 expenditures incurred for the purposes described in
2900		-	17 subsection (b).
2901		-	18 (h) (j) Fountain County possesses unique governmental and
2902		-	19 economic development challenges and opportunities related to:
2903		-	20 (1) the current county jail; and
2904		-	21 (2) a limited industrial and commercial assessed valuation in the
2905		-	22 county.
2906		-	23 The use of local income tax revenues as provided in this section is
2907		-	24 necessary for the county to provide adequate jail capacity in the county
2908		-	25 and to maintain low property tax rates essential to economic
2909		-	26 development. The use of local income tax revenues as provided in this
2910		-	27 section to pay any bonds issued or leases entered into to finance the
2911		-	28 construction, acquisition, improvement, renovation, and equipping of
2912		-	29 the facilities described in subsection (b), rather than the use of property
2913		-	30 taxes, promotes those purposes.
2914		-	31 (i) (k) Money accumulated from the local income tax rate imposed
2915		-	32 under this section after the termination of the tax under this section
2916		-	33 shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
2917		-	34 SECTION 36. IC 6-5.5-6-3, AS AMENDED BY P.L.211-2007,
2918		-	35 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2919		-	36 JANUARY 1, 2026]: Sec. 3. (a) Each taxpayer subject to taxation
2920		-	37 under this article shall report and pay quarterly an estimated tax equal
2921		-	38 to twenty-five percent (25%) of the taxpayer's total estimated tax
2922		-	39 liability imposed by this article for the taxable year. A taxpayer that
2923		-	40 uses a taxable year that ends on December 31 shall file the taxpayer's
2924		-	41 estimated quarterly financial institutions tax return and pay the tax to
2925		-	42 the department on or before April 20, June 20, September 20, and
2926		-	ES 453—LS 7499/DI 120 67
2927		-	1 December 20 of the taxable year, without assessment or notice and
2928		-	2 demand from the department. If a taxpayer uses a taxable year that does
2929		-	3 not end on December 31, the due dates for filing the estimated
2930		-	4 quarterly financial institutions tax return and paying the tax are on or
2931		-	5 before the twentieth day of the fourth, sixth, ninth, and twelfth months
2932		-	6 of the taxpayer's taxable year. The department shall prescribe the
2933		-	7 manner and furnish the forms for reporting and payment.
2934		-	8 (b) Subsection (a) is applicable only to taxpayers having a tax
2935		-	9 liability imposed under this article that exceeds two thousand five
2936		-	10 hundred dollars ($2,500) for the taxable year.
2937		-	11 (c) If the department determines that a taxpayer's:
2938		-	12 (1) estimated quarterly financial institutions tax liability for the
2939		-	13 current year; or
2940		-	14 (2) average quarterly financial institutions tax payment for the
2941		-	15 preceding year;
2942		-	16 exceeds five thousand dollars ($5,000), the taxpayer shall pay the
2943		-	17 quarterly financial institutions taxes due by electronic fund transfer (as
2944		-	18 defined in IC 4-8.1-2-7) or by delivering in person or by overnight
2945		-	19 courier a payment by cashier's check, certified check, or money order
2946		-	20 to the department. The transfer or payment shall be made on or before
2947		-	21 the date the tax is due.
2948		-	22 (d) If a taxpayer's financial institutions tax payment is made by
2949		-	23 electronic fund transfer, the taxpayer is not required to file a quarterly
2950		-	24 financial institutions tax return.
2951		-	25 (e) If the taxpayer has a taxable year that is less than twelve (12)
2952		-	26 months, the estimated payments under this section shall be
2953		-	27 adjusted in the manner prescribed by Section 6655 of the Internal
2954		-	28 Revenue Code and applicable regulations.
2955		-	29 SECTION 37. IC 6-5.5-7-1, AS AMENDED BY P.L.159-2021,
2956		-	30 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2957		-	31 JANUARY 1, 2026]: Sec. 1. (a) For purposes of this section, "final
2958		-	32 tax liability" has the meaning set forth in IC 6-3-4-4.2(a)(1).
2959		-	33 (a) (b) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b)
2960		-	34 shall be assessed by the department on a taxpayer who fails to make
2961		-	35 payments as required in IC 6-5.5-6. However, no penalty shall be
2962		-	36 assessed for a quarterly payment if the payment equals or exceeds:
2963		-	37 (1) twenty percent (20%) of the final tax liability for the taxable
2964		-	38 year; or
2965		-	39 (2) twenty-five percent (25%) of the final tax liability for the
2966		-	40 taxpayer's previous taxable year.
2967		-	41 (b) (c) The penalty for an underpayment of tax on a quarterly return
2968		-	42 shall only be assessed on the difference between the actual amount paid
2969		-	ES 453—LS 7499/DI 120 68
2970		-	1 by the taxpayer on the quarterly return and the lesser of:
2971		-	2 (1) twenty percent (20%) of the taxpayer's final tax liability for
2972		-	3 the taxable year; or
2973		-	4 (2) twenty-five percent (25%) of the taxpayer's final tax liability
2974		-	5 for the taxpayer's previous taxable year.
2975		-	6 A payment required to be made in the manner prescribed in
2976		-	7 IC 6-5.5-6-3(c), but not paid in such a prescribed manner, shall be
2977		-	8 subject to the penalty provided in IC 6-8.1-10-2.1(b)(5).
2978		-	9 (c) (d) For a corporation required to make estimated payments under
2979		-	10 this section:
2980		-	11 (1) if a corporation has a current taxable year or a previous
2981		-	12 taxable year that is less than twelve (12) months, the penalty
2982		-	13 under this section shall be computed in a manner consistent with
2983		-	14 Section 6655 of the Internal Revenue Code, including regulations
2984		-	15 promulgated thereunder; the amounts under subsections (b) and
2985		-	16 (c) shall be adjusted in the same manner as an estimated
2986		-	17 payment required under IC 6-3-4-4.2; and
2987		-	18 (2) the department may adopt rules or issue guidelines related to
2988		-	19 the application of payments withheld on behalf of the corporation
2989		-	20 under IC 6-3-4 or IC 6-5.5-2-8. any taxes withheld on behalf of
2990		-	21 the corporation under IC 6-3-4 or IC 6-5.5-2-8, and any taxes
2991		-	22 remitted on behalf of the corporation under IC 6-3-2.1, shall
2992		-	23 be treated as estimated tax payments on behalf of the
2993		-	24 corporation for purposes of this section. Such taxes shall be
2994		-	25 attributed to each required payment in the manner the
2995		-	26 underlying income is attributed under Section 6655 of the
2996		-	27 Internal Revenue Code.
2997		-	28 SECTION 38. IC 6-7-2-7, AS AMENDED BY P.L.236-2023,
2998		-	29 SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2999		-	30 JULY 1, 2025]: Sec. 7. (a) A tax is imposed on the distribution of
3000		-	31 tobacco products in Indiana at the following rates:
3001		-	32 (1) Twenty-four percent (24%) of the wholesale price of tobacco
3002		-	33 products other than moist snuff.
3003		-	34 (2) For moist snuff, forty cents ($0.40) per ounce, and a
3004		-	35 proportionate tax at the same rate on all fractional parts of an
3005		-	36 ounce. If the tax calculated for a fractional part of an ounce
3006		-	37 carried to the third decimal place results in the numeral in the
3007		-	38 third decimal place being greater than four (4), the amount of the
3008		-	39 tax shall be rounded to the next additional cent.
3009		-	40 (3) For cigars twenty-four percent (24%) of the wholesale price
3010		-	41 of a cigar. However the tax imposed per cigar shall not exceed
3011		-	42 one dollar ($1).
3012		-	ES 453—LS 7499/DI 120 69
3013		-	1 (b) A tax is imposed on the distribution of alternative nicotine
3014		-	2 products in Indiana at a rate of forty cents ($0.40) per ounce, and a
3015		-	3 proportionate tax at the same rate on all fractional parts of an ounce,
3016		-	4 calculated based upon the product weight as listed by the manufacturer.
3017		-	5 If the tax calculated for a fractional part of an ounce carried to the third
3018		-	6 decimal place being greater than four (4), the amount of the tax shall
3019		-	7 be rounded to the next additional cent.
3020		-	8 (c) The distributor of the tobacco products or alternative nicotine
3021		-	9 products is liable for the tax imposed under subsections (a) or (b). The
3022		-	10 tax is imposed at the time the distributor:
3023		-	11 (1) brings or causes tobacco products or alternative nicotine
3024		-	12 products to be brought into Indiana for distribution;
3025		-	13 (2) manufactures tobacco products or alternative nicotine
3026		-	14 products in Indiana for distribution;
3027		-	15 (3) transports tobacco products or alternative nicotine products to
3028		-	16 retail dealers in Indiana for resale by those retail dealers; or
3029		-	17 (4) first receives the tobacco products or alternative nicotine
3030		-	18 products in Indiana in the case of a distributor or to distributor
3031		-	19 transactions.
3032		-	20 (d) The Indiana general assembly finds that the tax rate on
3033		-	21 smokeless tobacco should reflect the relative risk between such
3034		-	22 products and cigarettes.
3035		-	23 (e) A consumer who purchases untaxed tobacco products or
3036		-	24 alternative nicotine products from a distributor or retailer is liable for
3037		-	25 the tax imposed under subsections (a) or (b).
3038		-	26 SECTION 39. IC 6-7-2-7.5, AS AMENDED BY THE TECHNICAL
3039		-	27 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
3040		-	28 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
3041		-	29 Sec. 7.5. (a) A tax is imposed on the distribution of closed system
3042		-	30 cartridges in Indiana at the rate of fifteen percent (15%) of the
3043		-	31 wholesale price of the closed system cartridge. If a closed system
3044		-	32 cartridge is sold in the same package as a vapor product device, the tax
3045		-	33 imposed under this subsection shall only apply to the wholesale price
3046		-	34 of the closed system cartridge if the wholesale cost of the closed system
3047		-	35 cartridge can be isolated from the vapor product device on the invoice.
3048		-	36 (b) The distributor of closed system cartridges, including a person
3049		-	37 that sells closed system cartridges through an Internet web site, a
3050		-	38 website, is liable for the tax imposed under subsection (a). The tax is
3051		-	39 imposed at the time the distributor:
3052		-	40 (1) brings or causes closed system cartridges to be brought into
3053		-	41 Indiana for distribution;
3054		-	42 (2) manufactures closed system cartridges in Indiana for
3055		-	ES 453—LS 7499/DI 120 70
3056		-	1 distribution; or
3057		-	2 (3) transports closed system cartridges to retail dealers in Indiana
3058		-	3 for resale by those retail dealers; or
3059		-	4 (4) first receives the closed system cartridges in Indiana in the
3060		-	5 case of distributor to distributor transactions.
3061		-	6 (c) A consumer who purchases untaxed closed system cartridges
3062		-	7 from a distributor or retailer is liable for the tax imposed under
3063		-	8 subsection (a).
3064		-	9 SECTION 40. IC 6-7-2-8, AS AMENDED BY THE TECHNICAL
3065		-	10 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
3066		-	11 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
3067		-	12 Sec. 8. (a) A distributor, including a person that sells taxable products
3068		-	13 through an Internet web site, a website, must obtain a license under
3069		-	14 this section before it distributes taxable products in Indiana. The
3070		-	15 department shall issue licenses to applicants that qualify under this
3071		-	16 section. A license issued under this section is valid for one (1) year two
3072		-	17 (2) years unless revoked or suspended by the department and is not
3073		-	18 transferable.
3074		-	19 (b) An applicant for a license under this section must submit proof
3075		-	20 to the department of the appointment of an agent for service of process
3076		-	21 in Indiana if the applicant is:
3077		-	22 (1) an individual whose principal place of residence is outside
3078		-	23 Indiana; or
3079		-	24 (2) a person, other than an individual, that has its principal place
3080		-	25 of business outside Indiana.
3081		-	26 (c) To obtain or renew a license under this section, a person must:
3082		-	27 (1) submit, for each location where it intends to distribute taxable
3083		-	28 products, an application that includes all information required by
3084		-	29 the department;
3085		-	30 (2) pay a fee of twenty-five dollars ($25) at the time of
3086		-	31 application; and
3087		-	32 (3) at the time of application, post a bond, issued by a surety
3088		-	33 company approved by the department, in an amount not less than
3089		-	34 one thousand dollars ($1,000) and conditioned on the applicant's
3090		-	35 compliance with this chapter.
3091		-	36 (d) If business is transacted at two (2) or more places by one (1)
3092		-	37 distributor, a separate license must be obtained for each place of
3093		-	38 business.
3094		-	39 (e) Each license must be numbered, show the name and address of
3095		-	40 the distributor, and be posted in a conspicuous place at the place of
3096		-	41 business for which it is issued.
3097		-	42 (f) If the department determines that a bond provided by a licensee
3098		-	ES 453—LS 7499/DI 120 71
3099		-	1 is inadequate, the department may require a new bond in the amount
3100		-	2 necessary to fully protect the state.
3101		-	3 SECTION 41. IC 6-7-2-8.5, AS AMENDED BY P.L.118-2024,
3102		-	4 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3103		-	5 JULY 1, 2025]: Sec. 8.5. (a) A remote seller, including a person that
3104		-	6 sells taxable products through a website, must obtain a license under
3105		-	7 this section before a remote seller can sell taxable products in Indiana.
3106		-	8 The department shall issue licenses to applicants that qualify under this
3107		-	9 section. A license issued under this section is valid for one (1) year two
3108		-	10 (2) years unless revoked or suspended by the department and is not
3109		-	11 transferable.
3110		-	12 (b) An applicant for a license under this section must submit proof
3111		-	13 to the department of the appointment of an agent for service of process
3112		-	14 in Indiana if the applicant is:
3113		-	15 (1) an individual whose principal place of residence is outside
3114		-	16 Indiana; or
3115		-	17 (2) a person, other than an individual, that has its principal place
3116		-	18 of business outside Indiana.
3117		-	19 (c) To obtain or renew a license under this section, a person must:
3118		-	20 (1) submit an application that includes all information required by
3119		-	21 the department;
3120		-	22 (2) meet the economic threshold under IC 6-2.5-2-1(d) and obtain
3121		-	23 a registered retail merchant certificate;
3122		-	24 (3) attest that the person uses third party age verification
3123		-	25 technology as described in subsection (d);
3124		-	26 (4) pay a fee of twenty-five dollars ($25) at the time of
3125		-	27 application; and
3126		-	28 (5) at the time of application, post a bond, issued by a surety
3127		-	29 company approved by the department, in an amount not less than
3128		-	30 one thousand dollars ($1,000) and conditioned on the applicant's
3129		-	31 compliance with this chapter.
3130		-	32 (d) A remote seller must use age verification through an
3131		-	33 independent, third party age verification service that compares:
3132		-	34 (1) information available from a commercially available data base
3133		-	35 (or aggregate of data bases) that are regularly used by government
3134		-	36 agencies and businesses for the purpose of age and identity
3135		-	37 verification; and
3136		-	38 (2) personal information entered by the individual during the
3137		-	39 ordering process;
3138		-	40 that establishes that the individual is of the required minimum age.
3139		-	41 (e) A remote seller that collects the tax imposed under section 7.7
3140		-	42 of this chapter using the actual cost list method to calculate the tax
3141		-	ES 453—LS 7499/DI 120 72
3142		-	1 must provide to the department a certified actual cost list for each
3143		-	2 individual product offered for sale in the subsequent calendar year. The
3144		-	3 actual cost list shall be updated annually as new products are added to
3145		-	4 a remote seller's inventory. New products must be added to the actual
3146		-	5 cost list using the actual cost first paid for each individual product.
3147		-	6 (f) If a business owns multiple entities that qualify as a remote
3148		-	7 seller, a separate license must be obtained for each remote seller.
3149		-	8 (g) Each license must be numbered, show the name and address of
3150		-	9 the remote seller, and be kept at the place of business for which it is
3151		-	10 issued.
3152		-	11 (h) If the department determines that a bond provided by a licensee
3153		-	12 is inadequate, the department may require a new bond in the amount
3154		-	13 necessary to fully protect the state.
3155		-	14 (i) A license issued under this section does not permit the remote
3156		-	15 seller to sell cigarettes, vapor products, or other products subject to tax
3157		-	16 under IC 6-7-1 or IC 6-7-4.
3158		-	17 SECTION 42. IC 6-7-2-10, AS AMENDED BY P.L.137-2022,
3159		-	18 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3160		-	19 JULY 1, 2025]: Sec. 10. A license issued under this chapter may be
3161		-	20 surrendered to the department at any time before its expiration, and the
3162		-	21 department shall refund an amount of money that bears the same
3163		-	22 proportion to the fee originally paid as the unexpired period of the
3164		-	23 permit bears to one (1) year. two (2) years. No refund may be allowed
3165		-	24 if a license is suspended or revoked.
3166		-	25 SECTION 43. IC 6-7-4-10, AS AMENDED BY P.L.194-2023,
3167		-	26 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3168		-	27 JULY 1, 2025]: Sec. 10. (a) It is unlawful for any retail dealer to sell
3169		-	28 consumable material or vapor products in Indiana unless the retail
3170		-	29 dealer has a valid open system electronic cigarette retail dealer's
3171		-	30 certificate issued by the department.
3172		-	31 (b) The department shall issue certificates to applicants that qualify
3173		-	32 under this section. A certificate issued under this section is valid for
3174		-	33 one (1) year two (2) years unless revoked or suspended by the
3175		-	34 department and is not transferable. An open system electronic cigarette
3176		-	35 retail dealer's certificate may be revoked or suspended by the
3177		-	36 department in the same manner, for the same reasons, and is subject to
3178		-	37 the same procedures as for the revocation or suspension of a retail
3179		-	38 merchant's certificate under IC 6-2.5-8-7. If a retail dealer's retail
3180		-	39 merchant's certificate under IC 6-2.5-8 expires or is revoked by the
3181		-	40 department, an open system electronic cigarette retail dealer's
3182		-	41 certificate issued to the retail dealer under this subsection shall
3183		-	42 automatically be revoked without notice otherwise required under
3184		-	ES 453—LS 7499/DI 120 73
3185		-	1 IC 6-2.5-8.
3186		-	2 (c) An applicant for a certificate under this section must submit
3187		-	3 proof to the department of the appointment of an agent for service of
3188		-	4 process in Indiana if the applicant is:
3189		-	5 (1) an individual whose principal place of residence is outside
3190		-	6 Indiana; or
3191		-	7 (2) a person, other than an individual, that has its principal place
3192		-	8 of business outside Indiana.
3193		-	9 (d) To obtain or renew a certificate under this section, a person
3194		-	10 must:
3195		-	11 (1) submit, for each location where it intends to distribute
3196		-	12 consumable material or vapor products, an application that
3197		-	13 includes all information required by the department;
3198		-	14 (2) pay a fee of twenty-five dollars ($25) at the time of
3199		-	15 application; and
3200		-	16 (3) at the time of application, post a bond, issued by a surety
3201		-	17 company approved by the department, in an amount not less than
3202		-	18 one thousand dollars ($1,000) and conditioned on the applicant's
3203		-	19 compliance with this chapter.
3204		-	20 (e) If business is transacted at two (2) or more places by one (1)
3205		-	21 retail dealer, a separate certificate must be obtained for each place of
3206		-	22 business.
3207		-	23 (f) Each certificate must be numbered, show the name and address
3208		-	24 of the retail dealer, and be posted in a conspicuous place at the place
3209		-	25 of business for which it is issued.
3210		-	26 (g) If the department determines that a bond provided by a
3211		-	27 certificate is inadequate, the department may require a new bond in the
3212		-	28 amount necessary to fully protect the state.
3213		-	29 SECTION 44. IC 6-8.1-1-4.5, AS ADDED BY P.L.118-2024,
3214		-	30 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3215		-	31 JULY 1, 2025]: Sec. 4.5. "Periodic tax" means a listed tax for which a
3216		-	32 return or report is required to be filed and the tax is required to be
3217		-	33 remitted four (4) times or more in a calendar year. The term does not
3218		-	34 include:
3219		-	35 (1) an estimated tax payment under IC 6-3-2.1-6, IC 6-3-4-4.1,
3220		-	36 IC 6-3-4-4.2, or IC 6-5.5-6-3; or
3221		-	37 (2) a withholding payment required to be remitted quarterly under
3222		-	38 IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15.
3223		-	39 For purposes of this section, if a provision of the law relating to a listed
3224		-	40 tax permits a taxpayer to file returns or reports or remit the tax less
3225		-	41 frequently than four (4) times per calendar year, the listed tax is
3226		-	42 considered a periodic tax for a taxpayer who files or remits less
3227		-	ES 453—LS 7499/DI 120 74
3228		-	1 frequently. The term includes a tax imposed on a purchaser if the
3229		-	2 purchaser fails to remit a periodic tax to a retail merchant.
3230		-	3 SECTION 45. IC 6-8.1-3-7.1, AS AMENDED BY P.L.146-2020,
3231		-	4 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3232		-	5 UPON PASSAGE]: Sec. 7.1. (a) As used in this section, "fiscal officer"
3233		-	6 means:
3234		-	7 (1) a fiscal officer (as defined in IC 36-1-2-7); and
3235		-	8 (2) in the case of a county, the county treasurer.
3236		-	9 (b) The department and the fiscal officer of an entity that has
3237		-	10 adopted an innkeeper's tax, a food and beverage tax, or an
3238		-	11 admissions tax under IC 6-9 shall enter into an agreement with the
3239		-	12 fiscal officer of an entity that has adopted an innkeeper's tax, a food and
3240		-	13 beverage tax, or an admissions tax under IC 6-9 to furnish the fiscal
3241		-	14 officer annually with:
3242		-	15 (1) the name of each business collecting the taxes listed in this
3243		-	16 subsection; and
3244		-	17 (2) the amount of money collected from each business.
3245		-	18 For an innkeeper's tax or food and beverage tax remitted through a
3246		-	19 marketplace facilitator, the information must include the name of each
3247		-	20 business and the amount of money collected from each business by a
3248		-	21 marketplace facilitator acting on behalf of the business.
3249		-	22 (c) The agreement must provide that the department must provide
3250		-	23 the information in an electronic format that the fiscal officer can use.
3251		-	24 (d) The agreement must include a provision that, unless in
3252		-	25 accordance with a judicial order, the fiscal officer, employees of the
3253		-	26 fiscal officer, former employees of the fiscal officer, counsel of the
3254		-	27 fiscal officer, agents of the fiscal officer, or any other person may not
3255		-	28 divulge the names of the businesses, the amount of taxes paid by the
3256		-	29 businesses, or any other information disclosed to the fiscal officer by
3257		-	30 the department.
3258		-	31 (e) The department and the fiscal officer of a capital
3259		-	32 improvement board of managers: shall also enter into an agreement
3260		-	33 with the fiscal officer of a capital improvement board of managers:
3261		-	34 (1) created under IC 36-10-8 or IC 36-10-9; and
3262		-	35 (2) that is responsible for expenditure of funds from:
3263		-	36 (A) an innkeeper's tax, a food and beverage tax, or an
3264		-	37 admissions tax under IC 6-9;
3265		-	38 (B) the supplemental auto rental excise tax under IC 6-6-9.7;
3266		-	39 or
3267		-	40 (C) the state gross retail taxes allocated to a professional sports
3268		-	41 development area fund, a sports and convention facilities
3269		-	42 operating fund, or other fund under IC 36-7-31 or
3270		-	ES 453—LS 7499/DI 120 75
3271		-	1 IC 36-7-31.3;
3272		-	2 shall enter into an agreement to furnish the fiscal officer annually
3273		-	3 with the name of each business collecting the taxes listed in this
3274		-	4 subsection, and the amount of money collected from each business. An
3275		-	5 agreement with a fiscal officer under this subsection must include a
3276		-	6 nondisclosure provision the same as is required for a fiscal officer
3277		-	7 under subsection (d).
3278		-	8 SECTION 46. IC 6-8.1-7-1.5 IS ADDED TO THE INDIANA
3279		-	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
3280		-	10 [EFFECTIVE UPON PASSAGE]: Sec. 1.5. (a) The following
3281		-	11 definitions apply to this section:
3282		-	12 (1) "Direct owner" means a person, corporation, or other
3283		-	13 entity that owns an interest in a pass through entity without
3284		-	14 owning the interest through another entity.
3285		-	15 (2) "Owner" means:
3286		-	16 (A) a partner in a partnership, including a member of a
3287		-	17 limited liability company;
3288		-	18 (B) a shareholder in a corporation described in
3289		-	19 IC 6-3-2-2.8(2); or
3290		-	20 (C) a beneficiary of an estate or trust.
3291		-	21 (3) "Pass through entity" has the meaning set forth in
3292		-	22 IC 6-3-1-35.
3293		-	23 (b) The department may disclose return information or
3294		-	24 liabilities related to a return by a pass through entity filed under
3295		-	25 IC 6-3 or IC 6-5.5 to a direct owner of the pass through entity, but
3296		-	26 only to the extent necessary for the direct owner to determine the
3297		-	27 direct owner's tax due or filing requirements under IC 6-3 or
3298		-	28 IC 6-5.5. For purposes of this subsection, a withholding tax return
3299		-	29 other than a return filed under IC 6-3-4-12, IC 6-3-4-13, or
3300		-	30 IC 6-3-4-15 is not a return of a pass through entity permitted to be
3301		-	31 disclosed.
3302		-	32 (c) The department may disclose the information from another
3303		-	33 taxpayer's return to a taxpayer, but only to the extent necessary to
3304		-	34 determine the requesting taxpayer's income, deductions, credits, or
3305		-	35 other attributes affecting the requesting taxpayer's liability for a
3306		-	36 listed tax.
3307		-	37 (d) If the department determines that a taxpayer is personally
3308		-	38 liable for a listed tax of another taxpayer or is liable for a listed tax
3309		-	39 as a transferee of another taxpayer, the department may disclose:
3310		-	40 (1) any information related to the other taxpayer, but only to
3311		-	41 the extent the taxpayer is personally liable for the liabilities of
3312		-	42 the other taxpayer; and
3313		-	ES 453—LS 7499/DI 120 76
3314		-	1 (2) any information related to amounts collected or relieved
3315		-	2 from collection with regard to the liability that the
3316		-	3 department determines is owed by the taxpayer.
3317		-	4 SECTION 47. IC 6-8.1-9.5-10, AS AMENDED BY P.L.236-2023,
3318		-	5 SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3319		-	6 JULY 1, 2025]: Sec. 10. (a) The department of state revenue may
3320		-	7 charge a debtor a fee of ten percent (10%) of any debts collected under
3321		-	8 this chapter as a collection fee for the department's services, not
3322		-	9 including any local collection assistance fees charged under subsection
3323		-	10 (b).
3324		-	11 (b) This subsection applies to a debt collected for a claimant agency
3325		-	12 that is a political subdivision described in section 1(1)(B) of this
3326		-	13 chapter. A local collection assistance fee not to exceed twenty dollars
3327		-	14 ($20) twenty-five dollars ($25) shall be imposed on each debt
3328		-	15 submitted by the claimant agency and collected through a set off under
3329		-	16 this chapter. The board of the nonprofit organization that operates the
3330		-	17 clearinghouse registered under section 3.5 of this chapter shall
3331		-	18 determine the amount of the fee by resolution. Notwithstanding any law
3332		-	19 concerning delinquent accounts, charges, fees, loans, taxes, or other
3333		-	20 indebtedness, the local collection assistance fee shall be added to the
3334		-	21 amount due the claimant agency when the collection is made, not
3335		-	22 including any fee charged by the department of state revenue under
3336		-	23 subsection (a). A fee collected under this subsection shall be
3337		-	24 distributed by the department to:
3338		-	25 (1) the nonprofit entity with which the department has entered
3339		-	26 into a contract under section 3.5(b) of this chapter; or
3340		-	27 (2) at the direction of the nonprofit entity, the nonprofit entity's
3341		-	28 account held by the investment pool.
3342		-	29 SECTION 48. IC 6-8.1-19 IS ADDED TO THE INDIANA CODE
3343		-	30 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3344		-	31 JANUARY 1, 2026]:
3345		-	32 Chapter 19. Tax Remittance and Liability for Payment
3346		-	33 Sec. 1. If a taxpayer:
3347		-	34 (1) purchases property or services in a transaction subject to
3348		-	35 a listed tax;
3349		-	36 (2) is required to remit the tax as an added amount to the
3350		-	37 consideration paid to the seller;
3351		-	38 (3) does not remit the tax due under the provisions of the tax;
3352		-	39 and
3353		-	40 (4) is not exempt from tax under the provisions of the tax;
3354		-	41 the person shall be liable for the tax not remitted.
3355		-	42 Sec. 2. The taxpayer shall be considered to have not remitted the
3356		-	ES 453—LS 7499/DI 120 77
3357		-	1 tax to the department for purposes of this chapter if either the
3358		-	2 taxpayer or seller has obtained a refund of the tax.
3359		-	3 Sec. 3. Any unpaid tax under this chapter shall be considered to
3360		-	4 have been due on the twentieth day of the month following the
3361		-	5 transaction.
3362		-	6 Sec. 4. For purposes of this chapter:
3363		-	7 (1) if a taxpayer is subject to tax in a jurisdiction in Indiana
3364		-	8 but erroneously pays the tax to another jurisdiction in
3365		-	9 Indiana, the amount not remitted shall be the difference
3366		-	10 between the tax imposed by the jurisdictions but not less than
3367		-	11 zero dollars ($0); and
3368		-	12 (2) if a taxpayer does not remit the full amount of tax due
3369		-	13 because:
3370		-	14 (A) the seller is a marketplace facilitator;
3371		-	15 (B) the tax is an innkeeper's tax or food and beverage tax
3372		-	16 under IC 6-9 that is directly remitted to the locality except
3373		-	17 for marketplace facilitators; and
3374		-	18 (C) the rate posted by the department on its website for the
3375		-	19 date of the transaction differs from the rate otherwise
3376		-	20 imposed by the locality;
3377		-	21 the taxpayer shall determine the rate of tax due based on the
3378		-	22 rate posted on the department's website on the date of the
3379		-	23 transaction.
3380		-	24 Sec. 5. Any tax due under this chapter shall be reported and
3381		-	25 remitted on forms and in the manner prescribed by the
3382		-	26 department.
3383		-	27 Sec. 6. Any tax collected under this chapter shall be distributed
3384		-	28 in the manner otherwise provided for the previously uncollected
3385		-	29 tax.
3386		-	30 SECTION 49. IC 8-2.1-17-6.5, AS AMENDED BY P.L.215-2023,
3387		-	31 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3388		-	32 JULY 1, 2025]: Sec. 6.5. (a) "Digital network", for purposes of
3389		-	33 IC 8-2.1-19.1, means an online enabled application, software, website,
3390		-	34 or system offered or used by a TNC to enable the prearrangement of
3391		-	35 rides with TNC drivers.
3392		-	36 (b) "Digital network", for purposes of this chapter and IC 8-2.1-19.3,
3393		-	37 means an online enabled application, software, website, or system
3394		-	38 offered or used by a DNC to enable deliveries with DNC drivers. A
3395		-	39 digital network is not a product under law.
3396		-	40 (c) A digital network is not a product under law.
3397		-	41 SECTION 50. IC 8-2.1-22-2.1 IS AMENDED TO READ AS
3398		-	42 FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]:
3399		-	ES 453—LS 7499/DI 120 78
3400		-	1 Sec. 2.1. (a) This chapter does not apply to the following:
3401		-	2 (1) Motor vehicles used as school buses while engaged in the
3402		-	3 transportation of students, under the supervision, control, and
3403		-	4 direction of school authorities.
3404		-	5 (2) Motor vehicles used exclusively as taxicabs.
3405		-	6 (3) Motor vehicles while being used or operated under the
3406		-	7 control, direction, and supervision of:
3407		-	8 (A) the United States government, the state, or a political
3408		-	9 subdivision; or
3409		-	10 (B) the board of trustees of any state institution.
3410		-	11 (4) Motor vehicles that are used to provide limited transportation
3411		-	12 services in conjunction with the operation of a hotel, campground,
3412		-	13 or food service facility but are not used as a common carrier. For
3413		-	14 the purpose of this subdivision, compensation for housing,
3414		-	15 camping, or food combined with transportation is not
3415		-	16 transportation by motor vehicle for compensation. However,
3416		-	17 transportation may not be performed for any person if, at the point
3417		-	18 of origin or within twenty-five (25) miles of that point, there is an
3418		-	19 equipment point as shown by a proper tariff of a carrier of
3419		-	20 passengers in Indiana that operates special or charter bus service
3420		-	21 under the jurisdiction of the department. Exemption from this
3421		-	22 chapter is not available under this subdivision unless the motor
3422		-	23 vehicles in question are provided with proof of financial
3423		-	24 responsibility of the type and in amounts as required of common
3424		-	25 carriers under IC 8-2.1-22-46.
3425		-	26 (5) Motor vehicles that are used to provide regular route intercity
3426		-	27 passenger service.
3427		-	28 (6) Motor vehicles that are used primarily for van pooling or other
3428		-	29 ride-sharing programs on a nonprofit basis.
3429		-	30 (7) Motor vehicles that are used to provide transportation of
3430		-	31 passengers by a nonprofit corporation if that corporation receives
3431		-	32 revenue for the transportation service from federal, state, or local
3432		-	33 governments.
3433		-	34 (8) A motor vehicle that:
3434		-	35 (A) has a capacity of not less than seven (7) or more than forty
3435		-	36 (40) persons;
3436		-	37 (B) is used to transport employees, including the driver,
3437		-	38 exclusively between their homes and their employer's place of
3438		-	39 business, or termini near those places, in a single daily round
3439		-	40 trip; and
3440		-	41 (C) is owned or leased by an employer providing commuter
3441		-	42 van service, which means any person who provides or operates
3442		-	ES 453—LS 7499/DI 120 79
3443		-	1 at least one (1) of those vehicles on a nonprofit basis, and
3444		-	2 whose service does not infringe upon or compete with any
3445		-	3 service that is provided by any common carrier regulated by
3446		-	4 the department.
3447		-	5 (9) Motor vehicles certified as ambulances by the Indiana
3448		-	6 emergency medical services commission under IC 16-31.
3449		-	7 (10) The casual, occasional, or reciprocal transportation of
3450		-	8 household effects or furniture for compensation, not including the
3451		-	9 transportation for hire of new household effects or furniture to or
3452		-	10 from a factory, warehouse, or store, by a person who:
3453		-	11 (A) does not otherwise engage in the described transportation
3454		-	12 for compensation;
3455		-	13 (B) is not required under this chapter to hold a certificate or
3456		-	14 permit to engage in transportation or operation for hire; or
3457		-	15 (C) does not profess to engage in the business of transporting
3458		-	16 household effects or furniture for hire.
3459		-	17 (b) This chapter does not apply to a limousine while the limousine
3460		-	18 is being used to transport at least one (1) person:
3461		-	19 (1) from a place of departure; and
3462		-	20 (2) to a destination;
3463		-	21 within the corporate boundaries of a city or town if the legislative body
3464		-	22 of the city or town has adopted an ordinance under IC 36-9-2-4 that
3465		-	23 takes effect after July 1, 1991, and that regulates limousines within the
3466		-	24 corporate boundaries of the city or town.
3467		-	25 SECTION 51. IC 8-2.1-22-4 IS AMENDED TO READ AS
3468		-	26 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) The department,
3469		-	27 any member of the department or any authorized representative of the
3470		-	28 department, may:
3471		-	29 (1) upon demand, inspect the books, accounts, papers, records,
3472		-	30 memoranda, equipment, and premises of any common carrier or
3473		-	31 contract carrier;
3474		-	32 (2) examine, under oath, any officer, agent, or employee of the
3475		-	33 common carrier or contract carrier in relation to its business
3476		-	34 affairs; and
3477		-	35 (3) adopt rules for inspection of motor vehicles used by common
3478		-	36 carriers or contract carriers or brokers.
3479		-	37 (b) Upon complaint in writing filed with the department or upon the
3480		-	38 department's own initiative without complaint, the department may
3481		-	39 investigate whether or not any person subject to this chapter has failed
3482		-	40 to comply with this chapter or with any requirement established under
3483		-	41 this chapter. If the department after notice and hearing, finds, upon the
3484		-	42 investigation, that the person has failed to comply with any provision
3485		-	ES 453—LS 7499/DI 120 80
3486		-	1 or requirement, the department shall issue an appropriate order to
3487		-	2 compel compliance. notify the common or contract carrier, in a
3488		-	3 manner prescribed by the department, to compel compliance.
3489		-	4 SECTION 52. IC 8-2.1-22-10 IS AMENDED TO READ AS
3490		-	5 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. If a county, city, or
3491		-	6 town wants to establish a transportation system that would compete
3492		-	7 with a motor carrier that is:
3493		-	8 (1) operating under the jurisdiction of the department; and
3494		-	9 (2) providing transportation service in the territorial jurisdiction
3495		-	10 of the county, city, or town;
3496		-	11 the county, city, or town must first apply for and obtain a certificate
3497		-	12 under sections 11 and 13 section 12.5 of this chapter.
3498		-	13 SECTION 53. IC 8-2.1-22-11 IS REPEALED [EFFECTIVE JULY
3499		-	14 1, 2025]. Sec. 11. A person may not, except as provided in this chapter,
3500		-	15 transport passengers for compensation:
3501		-	16 (1) on regular routes within the territorial jurisdiction of a
3502		-	17 political subdivision; or
3503		-	18 (2) as a special and charter carrier;
3504		-	19 until after obtaining from the department a certificate. A certificate may
3505		-	20 not be issued until after a public hearing and a consideration of the
3506		-	21 service, if any, rendered in the territory of the proposed motor vehicle
3507		-	22 operations by other common carriers, whether by motor vehicle,
3508		-	23 railroad, or otherwise.
3509		-	24 SECTION 54. IC 8-2.1-22-12.5 IS AMENDED TO READ AS
3510		-	25 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 12.5. (a) Except as
3511		-	26 provided in this chapter, a person may not operate a motor vehicle as
3512		-	27 an intrastate carrier upon an Indiana public highway to transport
3513		-	28 household goods or passengers for compensation until the person has
3514		-	29 obtained a certificate from the department.
3515		-	30 (b) The department may issue a certificate under this section only
3516		-	31 after conducting a public hearing and considering transportation
3517		-	32 services provided by other carriers of household goods by motor
3518		-	33 vehicle, railroad, or other means, that operate in the proposed territory
3519		-	34 of the person that is applying for a certificate.
3520		-	35 (b) In order to apply for a certificate to operate as an intrastate
3521		-	36 carrier of household goods or passengers, a person must submit the
3522		-	37 following to the department:
3523		-	38 (1) Completed application forms prescribed by the
3524		-	39 department.
3525		-	40 (2) A certificate of existence from the secretary of state.
3526		-	41 (3) Proof of insurance in a format prescribed by the
3527		-	42 department.
3528		-	ES 453—LS 7499/DI 120 81
3529		-	1 (4) The tariff amount that the carrier intends to charge
3530		-	2 pursuant to section 23 of this chapter.
3531		-	3 (5) In the case of a contract carrier, the contracts under which
3532		-	4 the carrier will be operating pursuant to section 26 of this
3533		-	5 chapter.
3534		-	6 (c) The department shall charge an application fee as required
3535		-	7 under section 40 of this chapter.
3536		-	8 (d) In determining whether a certificate shall be granted, the
3537		-	9 department may, among other things, consider the following:
3538		-	10 (1) Whether the applicant has any tax liabilities and has filed
3539		-	11 all appropriate tax returns with the department.
3540		-	12 (2) Whether the applicant is up to date on all unified carrier
3541		-	13 registration payments.
3542		-	14 (3) Whether the applicant has any current out of service
3543		-	15 orders issued by Federal Motor Carrier Safety
3544		-	16 Administration.
3545		-	17 (4) Whether the applicant is properly insured.
3546		-	18 (5) Whether the operations will threaten the safety of the
3547		-	19 public or be detrimental to the public welfare.
3548		-	20 (e) Once the department approves an application, the
3549		-	21 department will issue a receipt of registration to the carrier in
3550		-	22 addition to issuing a certificate. The carrier must keep a copy of
3551		-	23 the receipt in each of its vehicles at all times.
3552		-	24 SECTION 55. IC 8-2.1-22-12.8 IS ADDED TO THE INDIANA
3553		-	25 CODE AS A NEW SECTION TO READ AS FOLLOWS
3554		-	26 [EFFECTIVE JULY 1, 2025]: Sec. 12.8. A carrier that has been
3555		-	27 issued a certificate to transport household goods or passengers for
3556		-	28 compensation will be subject to the annual registration receipt
3557		-	29 requirements under IC 8-2.1-24-20. A carrier that fails to meet the
3558		-	30 requirements under that provision may have their certificate
3559		-	31 denied by the department.
3560		-	32 SECTION 56. IC 8-2.1-22-13 IS REPEALED [EFFECTIVE JULY
3561		-	33 1, 2025]. Sec. 13. (a) Upon the filing of an application for a certificate,
3562		-	34 the department shall, within a reasonable time, fix a time and place for
3563		-	35 public hearing in the city of Indianapolis, unless otherwise ordered by
3564		-	36 the department. A copy of the notice of hearing shall be mailed to the
3565		-	37 applicant at the address set out in the application at least ten (10) days
3566		-	38 before the hearing. Any person interested in the proceedings may
3567		-	39 appear in person or by attorney and offer evidence in support of or in
3568		-	40 opposition to the application and with or without the filing of formal
3569		-	41 pleadings.
3570		-	42 (b) The applicant has, at all times, the burden of proving, by a
3571		-	ES 453—LS 7499/DI 120 82
3572		-	1 preponderance of the evidence, that public convenience and necessity
3573		-	2 requires the proposed operation, and that the proposed operation will
3574		-	3 not unreasonably impair the public service of any authorized common
3575		-	4 carrier, or common carriers by motor vehicle or by railroad, then
3576		-	5 adequately serving the same territory.
3577		-	6 (c) If the department finds from the evidence and from any
3578		-	7 additional investigation that the department causes to be made that
3579		-	8 public convenience and necessity exist for the service proposed, or any
3580		-	9 part of the service, the application shall be granted, subject to terms,
3581		-	10 restrictions, and limitations as the department may determine,
3582		-	11 otherwise, the application shall be denied.
3583		-	12 (d) In determining whether a certificate shall be granted, the
3584		-	13 department may, among other things, consider the following:
3585		-	14 (1) The financial ability of the applicant to furnish adequate
3586		-	15 service.
3587		-	16 (2) Whether other transportation service then in existence is
3588		-	17 adequate.
3589		-	18 (3) The effect upon other transportation service, and, particularly,
3590		-	19 whether the granting of the application will or may seriously
3591		-	20 impair that service.
3592		-	21 (4) The volume of other traffic over the route proposed by the
3593		-	22 applicant.
3594		-	23 (5) The effect and burden upon the highways and the bridges on
3595		-	24 the highways, and the use of the highways and bridges by the
3596		-	25 public.
3597		-	26 (6) Whether the operations will threaten the safety of the public
3598		-	27 or be detrimental to the public welfare.
3599		-	28 SECTION 57. IC 8-2.1-22-15 IS AMENDED TO READ AS
3600		-	29 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. Any certificate or
3601		-	30 permit or part owned, held, or obtained by the carrier may be sold,
3602		-	31 assigned, leased, bequeathed, or transferred as other property upon
3603		-	32 approval by the department. The department may inquire into the
3604		-	33 responsibility of the person obtaining or seeking to obtain ownership
3605		-	34 or control of any certificate or permit or part, the person's readiness,
3606		-	35 ability, and willingness to perform the service proposed, and whether
3607		-	36 the proposed service, to the extent authorized by the certificate, or
3608		-	37 permit, is or will be consistent with the public interest and the state
3609		-	38 transportation policy declared in this title. If the department finds the
3610		-	39 person to be irresponsible or unable to render satisfactory and adequate
3611		-	40 service under the certificate or permit or part, or if it finds that the
3612		-	41 transfer will not be consistent with the public interest, the department
3613		-	42 may enter an order denying the transfer, in whole or in part. However,
3614		-	ES 453—LS 7499/DI 120 83
3615		-	1 a certificate or permit, or part may not be sold, assigned, leased,
3616		-	2 bequeathed, or transferred. except after a public hearing before the
3617		-	3 department and after notice as required for other hearings before the
3618		-	4 department.
3619		-	5 SECTION 58. IC 8-2.1-22-16 IS REPEALED [EFFECTIVE JULY
3620		-	6 1, 2025]. Sec. 16. A person may not operate motor vehicles as a
3621		-	7 contract carrier over the public highways for the transportation of
3622		-	8 persons or household goods for compensation without first having
3623		-	9 obtained from the department a contract carrier permit.
3624		-	10 SECTION 59. IC 8-2.1-22-17 IS REPEALED [EFFECTIVE JULY
3625		-	11 1, 2025]. Sec. 17. (a) Upon the filing of an application under this
3626		-	12 chapter for contract carrier authority to operate motor vehicles in
3627		-	13 intrastate commerce, the department shall, within a reasonable time, fix
3628		-	14 a time and place for a public hearing in the city of Indianapolis, unless
3629		-	15 otherwise ordered by the department. A copy of the notice of hearing
3630		-	16 shall be mailed to the applicant, at the address set out in the
3631		-	17 application, at least ten (10) days before the date set for hearing. Any
3632		-	18 person interested in the proceedings may appear in person, or by
3633		-	19 counsel, and offer any evidence either in support of, or in opposition to,
3634		-	20 the granting of the authority requested in the application.
3635		-	21 (b) In determining whether requested contract authority should be
3636		-	22 granted, the department shall, among other things, consider the
3637		-	23 following factors:
3638		-	24 (1) The financial ability of the applicant to furnish adequate
3639		-	25 contract carrier service.
3640		-	26 (2) The effect of granting the requested authority on other
3641		-	27 transportation service then in existence, and particularly whether
3642		-	28 the granting of authority will seriously impair that other service
3643		-	29 and will unreasonably impair the efficient public service of any
3644		-	30 certificated common carrier by motor vehicle, or by railroad, then
3645		-	31 adequately serving the same territory.
3646		-	32 (3) Whether or not any certificated common carrier by motor
3647		-	33 vehicle, or by railroad, then serving the same territory, will
3648		-	34 furnish transportation services designed to meet the distinct need
3649		-	35 of the supporting contract shipper or shippers.
3650		-	36 (c) If the department, after hearing, determines that the proposed
3651		-	37 operation, as requested in the application, meets all of the requirements
3652		-	38 of contract carriage, as defined in this chapter, and that the applicant
3653		-	39 is qualified in all respects to perform the proposed operation, the
3654		-	40 department shall approve the application and issue the requested
3655		-	41 authority, subject to terms, restrictions, and limitations as determined
3656		-	42 by the department.
3657		-	ES 453—LS 7499/DI 120 84
3658		-	1 (d) The department shall specify and name in the permit the name
3659		-	2 of the contracting person. The scope of the permit shall be attached at
3660		-	3 the time of issuance, along with any reasonable terms, conditions, and
3661		-	4 limitations consistent with the character of the holder as a contract
3662		-	5 carrier.
3663		-	6 SECTION 60. IC 8-2.1-22-22 IS AMENDED TO READ AS
3664		-	7 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 22. (a) All civil actions
3665		-	8 by carriers for recovery of their charges or any part must be brought
3666		-	9 within two (2) years after the time the cause of action accrues.
3667		-	10 (b) For recovery of overcharges, civil actions must be brought or
3668		-	11 complaints filed with the department office of the attorney general
3669		-	12 against carriers subject to this chapter within two (2) years after the
3670		-	13 time the cause of action accrues, subject to subsection (c). However, if
3671		-	14 claim for the overcharge has been presented in writing to the carrier
3672		-	15 within the two (2) year period of limitation, the period shall be
3673		-	16 extended to include six (6) months after the time notice in writing is
3674		-	17 given by the carrier to the claimant of disallowance of the claim or any
3675		-	18 part specified in the notice.
3676		-	19 (c) If on or before the expiration of the two (2) year period of
3677		-	20 limitation in subsection (a) or (b), a carrier subject to this chapter
3678		-	21 begins an action under subsection (a) for recovery of charges in respect
3679		-	22 of the same transportation service or without beginning action collects
3680		-	23 charges in respect of that service, the period of limitation shall be
3681		-	24 extended to include ninety (90) days after the time the action is begun
3682		-	25 or charges are collected by the carrier.
3683		-	26 (d) As used in this section, "overcharges" means charges for the
3684		-	27 transportation services in excess of those applicable to the services
3685		-	28 under the tariffs lawfully on file with the department.
3686		-	29 SECTION 61. IC 8-2.1-22-22.5 IS ADDED TO THE INDIANA
3687		-	30 CODE AS A NEW SECTION TO READ AS FOLLOWS
3688		-	31 [EFFECTIVE JULY 1, 2025]: Sec. 22.5. A person who violates a
3689		-	32 provision of this chapter involving a consumer transaction (as
3690		-	33 defined in IC 24-5-0.5-2(a)(1)) entailing the transportation of
3691		-	34 passengers or household goods commits a deceptive act that is
3692		-	35 actionable by the attorney general under IC 24-5-0.5 and is subject
3693		-	36 to the remedies and penalties under IC 24-5-0.5, in addition to all
3694		-	37 other remedies and penalties under this chapter.
3695		-	38 SECTION 62. IC 8-2.1-22-23 IS AMENDED TO READ AS
3696		-	39 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 23. (a) Every intrastate
3697		-	40 common carrier by motor vehicle shall file with the department, and
3698		-	41 print and keep open to public inspection, tariffs showing all rates, fares,
3699		-	42 charges for transportation, and all service in connection therewith, of
3700		-	ES 453—LS 7499/DI 120 85
3701		-	1 passengers or household goods in intrastate commerce between points:
3702		-	2 (1) on its own route; or
3703		-	3 (2) on the route of any other common carrier; or
3704		-	4 (3) on the route of any common carrier by railroad;
3705		-	5 when and as through routes and joint rates are established.
3706		-	6 (b) The department may prescribe the form and manner in which the
3707		-	7 tariffs shall be published and may reject any tariff filed with it that is
3708		-	8 not in compliance with this section. When so rejected, the tariff is void,
3709		-	9 and its use shall be unlawful.
3710		-	10 (c) A common carrier by motor vehicle shall not charge, demand,
3711		-	11 collect, or receive a greater or less or different compensation for
3712		-	12 transportation or for any service in connection therewith between
3713		-	13 points enumerated in the tariff than the rates, fares, and charges
3714		-	14 specified in the tariffs in effect at the time. A carrier shall not refund or
3715		-	15 remit in any manner or by any device, directly or indirectly, personally
3716		-	16 or by agent, any portion of rates, fares, or charges so specified, and
3717		-	17 shall not extend to any person any facilities for transportation except as
3718		-	18 are specified in its tariffs.
3719		-	19 (d) A change may not be made in any fare, charge, rule or practice
3720		-	20 for or in connection with the transportation of passengers or household
3721		-	21 goods except after thirty (30) days notice of the proposed change. The
3722		-	22 notice must plainly state the change proposed to be made and the
3723		-	23 effective date of the change. The department, upon complaint or upon
3724		-	24 the department's own motion, may suspend any tariff making any
3725		-	25 changes provided in this chapter within twenty (20) days after the filing
3726		-	26 of the tariff and not thereafter.
3727		-	27 (e) The department may, for good cause shown, allow changes upon
3728		-	28 notice in less time than specified and permit tariffs to be filed and
3729		-	29 become effective in particular instances on shorter notice than stated
3730		-	30 in subsection (d).
3731		-	31 (f) Whenever the carrier operating a local transportation system
3732		-	32 wholly within one (1) county files a tariff or schedule of increased rates
3733		-	33 or fares affecting its patrons in any municipality in which the carrier
3734		-	34 renders service, the carrier shall give notice by registered mail, on the
3735		-	35 date the tariff is filed with the department, to the executive and
3736		-	36 legislative body of the municipality and shall enclose a copy of the
3737		-	37 tariff filed with the department.
3738		-	38 (g) A common carrier by motor vehicle shall not engage in the
3739		-	39 transportation of passengers or household goods unless the tariffs have
3740		-	40 been filed and published in accordance with this chapter.
3741		-	41 SECTION 63. IC 8-2.1-22-24 IS AMENDED TO READ AS
3742		-	42 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 24. (a) Every contract
3743		-	ES 453—LS 7499/DI 120 86
3744		-	1 carrier by motor vehicle shall:
3745		-	2 (1) establish and observe reasonable minimum rates, fares, and
3746		-	3 charges for any service rendered or to be rendered in the
3747		-	4 transportation of passengers or household goods or in connection
3748		-	5 with the transportation of passengers or household goods;
3749		-	6 (2) establish and observe reasonable regulations and practices to
3750		-	7 be applied in connection with those reasonable minimum rates,
3751		-	8 fares, and charges; and
3752		-	9 (3) file with the department, publish, and keep open for public
3753		-	10 inspection, in the form and manner prescribed by the department,
3754		-	11 schedules, or, by consent of contracting parties in lieu of
3755		-	12 schedules, copies of contracts, containing the minimum rates,
3756		-	13 fares, or charges of the carrier for the transportation of passengers
3757		-	14 or household goods in intrastate commerce, and any rule or
3758		-	15 practice affecting the rates, fares, or charges and the value of the
3759		-	16 service under the rates, fares, or charges.
3760		-	17 (b) A contract carrier may not, unless otherwise provided by this
3761		-	18 chapter, engage in the transportation of passengers or household goods
3762		-	19 in intrastate commerce unless the minimum charges for the
3763		-	20 transportation by the carrier have been published, filed, and posted in
3764		-	21 accordance with this chapter. A reduction may not be made in the
3765		-	22 charge either directly or by means of any change in any rule or practice
3766		-	23 affecting the charge or the value of service under the charge, except
3767		-	24 after thirty (30) days notice of the proposed change filed in the required
3768		-	25 form and manner the department may, for good cause shown, allow a
3769		-	26 change upon less notice. However, the notice must plainly state the
3770		-	27 change proposed to be made and the time when the change will take
3771		-	28 effect.
3772		-	29 (c) A carrier shall not demand, charge, or collect less compensation
3773		-	30 for the transportation than the charges filed in accordance with this
3774		-	31 section, as affected by any rule or practice so filed, or as may be
3775		-	32 prescribed by the department. It is unlawful for the carrier, by the
3776		-	33 furnishing of special service, facilities, or privileges, or by any other
3777		-	34 device, to charge, accept, or receive less than the minimum charges so
3778		-	35 filed or prescribed. The carrier, or any class or group, of the carrier may
3779		-	36 apply to the department for relief from this subsection, and the
3780		-	37 department may, after hearing, grant relief to the extent, for the time,
3781		-	38 and in the manner as in its judgment is consistent with the public
3782		-	39 interest.
3783		-	40 (d) Whenever, after hearing, upon complaint or upon its own
3784		-	41 initiative, the department finds that any minimum rate, fare, or charge
3785		-	42 of any contract carrier by motor vehicle, or any rule, regulation, or
3786		-	ES 453—LS 7499/DI 120 87
3787		-	1 practice of the carrier affecting the minimum rate, fare, or charge, or
3788		-	2 the value of the service, for the transportation of passengers or
3789		-	3 household goods or in connection under the rate, fare or charge, is in
3790		-	4 violation of any provision of this chapter, the department may prescribe
3791		-	5 that transportation, just and reasonable minimum rates, fare, or charge,
3792		-	6 or a rule, regulation, or practice as judgment is necessary in the public
3793		-	7 interest and will not be in violation of any provision of this chapter.
3794		-	8 The minimum rate, fare, or charge, or rule or practice, prescribed by
3795		-	9 the department, may not give an advantage or preference to the carrier
3796		-	10 in competition with any common carrier by motor vehicle subject to
3797		-	11 this chapter, which the department may find to be undue or inconsistent
3798		-	12 with the public interest, and the department shall give due
3799		-	13 consideration to the cost of the services rendered by those carriers, and
3800		-	14 to the effect of the minimum rate, fare, or charge, or rule, regulation, or
3801		-	15 practice, upon the movement of traffic by such carriers. All complaints
3802		-	16 must state fully the facts complained of and the reasons for the
3803		-	17 complaint and shall be made under oath.
3804		-	18 SECTION 64. IC 8-2.1-22-27 IS REPEALED [EFFECTIVE JULY
3805		-	19 1, 2025]. Sec. 27. (a) A person shall not for compensation sell or offer
3806		-	20 for sale transportation subject to this chapter, make any contract,
3807		-	21 agreement, or arrangement to provide, procure, furnish, or arrange for
3808		-	22 the transportation of passengers, or profess by advertisement,
3809		-	23 solicitation, or otherwise as one who sells, provides, procures,
3810		-	24 contracts, or arranges for the transportation of passengers, unless the
3811		-	25 person holds a broker's license issued by the department to engage in
3812		-	26 the transactions. A person may not engage in transportation subject to
3813		-	27 this chapter unless the person holds a certificate or a permit as provided
3814		-	28 in this chapter. In the execution of any contract, agreement, or
3815		-	29 arrangement to sell, provide, procure, furnish, or arrange for the
3816		-	30 transportation of passengers, a person may not employ any common or
3817		-	31 contract carrier who is not the lawful holder of an effective certificate
3818		-	32 or permit issued as provided in this chapter.
3819		-	33 (b) This section does not apply to any carrier holding a certificate or
3820		-	34 a permit under this chapter or to any employee or agent of the motor
3821		-	35 carrier, so far as concerns transportation to be furnished wholly by the
3822		-	36 carrier or jointly with other motor carriers holding like certificates or
3823		-	37 permits, or with a common carrier by railroad, express, or water.
3824		-	38 (c) A brokerage license shall be issued to any qualified applicant for
3825		-	39 a brokerage license, authorizing any part of the operations covered by
3826		-	40 the application, if it is found that the applicant is fit, willing, and able
3827		-	41 to properly perform the service proposed and to conform to this chapter
3828		-	42 and the requirements, and rules of the department under this chapter,
3829		-	ES 453—LS 7499/DI 120 88
3830		-	1 and that the proposed service, to the extent to be authorized by the
3831		-	2 license, is or will be consistent with the public interest, otherwise the
3832		-	3 application shall be denied.
3833		-	4 (d) The department shall prescribe reasonable rules for the
3834		-	5 protection of travelers by motor vehicle to be observed by any person
3835		-	6 holding a brokerage license, and no such license may be issued or
3836		-	7 remain in effect unless the person furnishes a bond or other security
3837		-	8 approved by the department, in a form and amount as will insure
3838		-	9 financial responsibility and the supplying of authorized transportation
3839		-	10 in accordance with contracts, agreements, or arrangements for the
3840		-	11 transportation.
3841		-	12 (e) The department and its special agents and examiners have the
3842		-	13 same authority as to accounts, reports, and records, including
3843		-	14 inspection and preservation of the accounts, reports, and records, of any
3844		-	15 person holding a brokerage license issued under this section that the
3845		-	16 department and the department's special agents and examiners have
3846		-	17 under this chapter with respect to motor carriers subject to this chapter.
3847		-	18 (f) A person who violates this section commits a Class C infraction.
3848		-	19 SECTION 65. IC 8-2.1-22-27.5 IS ADDED TO THE INDIANA
3849		-	20 CODE AS A NEW SECTION TO READ AS FOLLOWS
3850		-	21 [EFFECTIVE JULY 1, 2025]: Sec. 27.5. (a) A person may not engage
3851		-	22 in any of the following activities unless the person has obtained a
3852		-	23 brokerage license from the department:
3853		-	24 (1) sell or offer for sale transportation subject to this chapter
3854		-	25 for compensation;
3855		-	26 (2) make any contract, agreement, or arrangement to provide,
3856		-	27 procure, furnish, or arrange for the transportation of
3857		-	28 passengers; or
3858		-	29 (3) profess by advertisement, solicitation, or otherwise as one
3859		-	30 who sells, provides, procures, contracts, or arranges for the
3860		-	31 transportation of passengers.
3861		-	32 In the execution of any contract, agreement, or arrangement to
3862		-	33 sell, provide, procure, furnish, or arrange for the transportation of
3863		-	34 passengers, a person may not employ any common or contract
3864		-	35 carrier who is not the lawful holder of an effective certificate issued
3865		-	36 as provided in this chapter.
3866		-	37 (b) A person is not required to obtain a brokerage license from
3867		-	38 the department if the person holds a certificate under this chapter,
3868		-	39 or if the person is an employee or agent of the motor carrier, when
3869		-	40 that person furnishes transportation wholly by the carrier or
3870		-	41 jointly with other motor carriers holding like certificates.
3871		-	42 (c) To apply for a brokerage license, a person must submit the
3872		-	ES 453—LS 7499/DI 120 89
3873		-	1 following to the department:
3874		-	2 (1) a completed application form prescribed by the
3875		-	3 department;
3876		-	4 (2) a certificate of existence from the secretary of state; and
3877		-	5 (3) a surety bond.
3878		-	6 (d) In determining whether a brokerage license shall be issued,
3879		-	7 the department may, among other things, consider the following:
3880		-	8 (1) Whether the person has any tax liabilities and has filed all
3881		-	9 appropriate tax returns with the department.
3882		-	10 (2) Whether the person is up to date on all unified carrier
3883		-	11 registration payments.
3884		-	12 (3) Whether the person is properly insured.
3885		-	13 (e) The department and its special agents and examiners have
3886		-	14 the same authority as to accounts, reports, and records, including
3887		-	15 inspection and preservation of the accounts, reports, and records
3888		-	16 of any person holding a brokerage license issued under this section,
3889		-	17 that the department and the department's special agents and
3890		-	18 examiners have under this chapter with respect to motor carriers
3891		-	19 subject to this chapter.
3892		-	20 (f) The department shall charge an application fee under section
3893		-	21 40 of this chapter.
3894		-	22 (g) A person who violates this section commits a Class C
3895		-	23 infraction.
3896		-	24 (h) A person that has been issued a brokerage license must
3897		-	25 renew the license with the department on a annual basis. The
3898		-	26 department shall charge an annual renewal fee.
3899		-	27 SECTION 66. IC 8-2.1-22-28 IS REPEALED [EFFECTIVE JULY
3900		-	28 1, 2025]. Sec. 28. A person may not transport passengers for
3901		-	29 compensation as a special and charter carrier until after obtaining a
3902		-	30 certificate from the department, unless on December 31, 1982, the
3903		-	31 person:
3904		-	32 (1) held a certificate for a special and charter carrier; or
3905		-	33 (2) was exempt from the requirement for a certificate for a special
3906		-	34 and charter carrier under IC 8-2-7-29.
3907		-	35 SECTION 67. IC 8-2.1-22-30 IS AMENDED TO READ AS
3908		-	36 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 30. (a) Any certificate,
3909		-	37 or permit, upon application of the holder of the certificate, or permit,
3910		-	38 in the discretion of the department, may be amended or revoked in
3911		-	39 whole or in part. or may, upon complaint or on In addition, the
3912		-	40 department's own initiative, department may, after notice is provided,
3913		-	41 and hearing, be suspended, changed or revoked suspend, change, or
3914		-	42 revoke a certificate in whole or in part for the holder's willful failure
3915		-	ES 453—LS 7499/DI 120 90
3916		-	1 to comply with any provision of this chapter, or with any lawful order
3917		-	2 or rule prescribed by the department, or with any term, condition, or
3918		-	3 limitation of the certificate. or permit.
3919		-	4 (b) In any cause instituted by the department on its own initiative,
3920		-	5 the burden is on the carrier to show cause why the certificate or permit
3921		-	6 should not be suspended, changed, or revoked in whole or in part and
3922		-	7 the department, by its authorized representative, may introduce
3923		-	8 evidence in the hearing.
3924		-	9 SECTION 68. IC 8-2.1-22-36, AS AMENDED BY P.L.45-2011,
3925		-	10 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3926		-	11 JULY 1, 2025]: Sec. 36. (a) As used in this section, "eligible event" has
3927		-	12 the meaning set forth in IC 6-8-12-2.
3928		-	13 (b) In addition to all other powers granted to the department under
3929		-	14 this chapter, the department may issue, in accordance with its rules,
3930		-	15 temporary authority or emergency temporary authority to the following:
3931		-	16 (1) Persons to whom permanent permits or certificates have been
3932		-	17 issued.
3933		-	18 (2) Persons who have filed new applications for permanent
3934		-	19 permits or certificates.
3935		-	20 (3) Persons when there appears a necessity to make one (1) trip or
3936		-	21 occasional trips, including during an eligible event.
3937		-	22 The department may grant temporary authority or emergency
3938		-	23 temporary authority under subdivision (3) during an eligible event for
3939		-	24 a period not greater than fifteen (15) consecutive days.
3940		-	25 (c) An application for temporary authority or emergency temporary
3941		-	26 authority during an eligible event is not subject to section 11 or 13 12.5
3942		-	27 of this chapter.
3943		-	28 SECTION 69. IC 8-2.1-22-37 IS AMENDED TO READ AS
3944		-	29 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 37. In addition to all
3945		-	30 other powers granted to the department under this chapter, the
3946		-	31 department may suspend, in whole or in part, any certificate or permit,
3947		-	32 upon the application of the holder thereof, without notice, for the
3948		-	33 duration of a declared war or a declared national emergency and for a
3949		-	34 period of six (6) months thereafter, or for any lesser period of time.
3950		-	35 SECTION 70. IC 8-2.1-22-40, AS AMENDED BY P.L.176-2006,
3951		-	36 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3952		-	37 JULY 1, 2025]: Sec. 40. (a) All applications under this chapter for a
3953		-	38 common carrier certificate or a contract carrier permit to operate motor
3954		-	39 vehicles, intrastate or interstate, shall be made on forms prescribed by
3955		-	40 the department.
3956		-	41 (b) All applications for a common carrier certificate of public
3957		-	42 convenience and necessity, or a contract carrier permit, to operate
3958		-	ES 453—LS 7499/DI 120 91
3959		-	1 motor vehicles intrastate on the public highways which applications
3960		-	2 require a public hearing thereon, shall be accompanied by a filing fee
3961		-	3 of one hundred dollars ($100). Each petition for reinstatement of a
3962		-	4 common carrier certificate of public convenience and necessity, or a
3963		-	5 contract carrier permit, to operate motor vehicles intrastate, on the
3964		-	6 highways of this state, shall be accompanied by a filing fee of fifty
3965		-	7 dollars ($50). A common carrier reinstatement shall only occur
3966		-	8 within two (2) years of the voluntarily ceased operations date
3967		-	9 provided to the department by the carrier.
3968		-	10 (c) All applications for a an emergency temporary certificate of
3969		-	11 public convenience and necessity, or for a contract carrier permit to
3970		-	12 operate motor vehicles on the highways of this state in intrastate
3971		-	13 commerce, shall be accompanied by a filing fee of one hundred dollars
3972		-	14 ($100).
3973		-	15 (d) All applications for a change in the name of the holder of a
3974		-	16 common carrier certificate, of public convenience and necessity, of a
3975		-	17 common carrier certificate of authority or certificate of registration, or
3976		-	18 of a contract carrier permit, which change of name does not involve a
3977		-	19 change in the ownership of the operating rights of the certificate or
3978		-	20 permit holder, shall be made by verified petition to the department, and
3979		-	21 the applications shall be accompanied by a filing fee of twenty-five
3980		-	22 dollars ($25).
3981		-	23 (e) In addition to the filing fees prescribed in subsection (b), all
3982		-	24 applications for a common carrier certificate of public convenience and
3983		-	25 necessity, or for a contract carrier permit, to operate motor vehicles
3984		-	26 intrastate, on the public highways, which applications require a public
3985		-	27 hearing thereon, shall be accompanied by a publication fee of eighty
3986		-	28 dollars ($80). Whenever any republication is required through no fault
3987		-	29 of the department, the party responsible therefor shall be required to
3988		-	30 pay an additional publication fee of eighty dollars ($80) for each
3989		-	31 republication.
3990		-	32 (f) Each petition for rehearing of an application for a common
3991		-	33 carrier certificate of public convenience and necessity, or for a contract
3992		-	34 carrier permit, to operate motor vehicles intrastate, on the public
3993		-	35 highways, shall be accompanied by a filing fee of twenty-five dollars
3994		-	36 ($25).
3995		-	37 (g) (e) Each application or petition for alteration or change of a
3996		-	38 common carrier certificate of public convenience and necessity, or a
3997		-	39 contract carrier permit, to operate motor vehicles intrastate, on the
3998		-	40 public highways, shall be accompanied by a filing fee of fifty dollars
3999		-	41 ($50).
4000		-	42 (h) Each application requesting permission to deviate from the
4001		-	ES 453—LS 7499/DI 120 92
4002		-	1 department's tariff publishing regulations shall be accompanied by a
4003		-	2 filing fee of fifteen dollars ($15).
4004		-	3 SECTION 71. IC 8-2.1-22-42 IS AMENDED TO READ AS
4005		-	4 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 42. (a) An intrastate
4006		-	5 motor carrier regulated under this chapter shall display identification,
4007		-	6 in the method prescribed by rules of the department, on each motor
4008		-	7 vehicle it operates.
4009		-	8 (b) A person who violates this section commits a Class C infraction.
4010		-	9 misdemeanor.
4011		-	10 SECTION 72. IC 8-2.1-22-44 IS AMENDED TO READ AS
4012		-	11 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 44. All fees prescribed
4013		-	12 in this chapter shall be paid to the treasurer of state through the
4014		-	13 department and deposited in the motor carrier regulation fund
4015		-	14 established by IC 8-2.1-23-1.
4016		-	15 SECTION 73. IC 8-2.1-22-45 IS AMENDED TO READ AS
4017		-	16 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 45. (a) A motor carrier
4018		-	17 regulated under this chapter that augments equipment, interchanges
4019		-	18 equipment, or leases equipment, with or without drivers, shall comply
4020		-	19 with the rules of the department governing lease and interchange of
4021		-	20 vehicles.
4022		-	21 (b) A person who violates this section commits a Class C infraction.
4023		-	22 misdemeanor.
4024		-	23 SECTION 74. IC 8-2.1-22-46, AS AMENDED BY P.L.208-2018,
4025		-	24 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4026		-	25 JULY 1, 2025]: Sec. 46. (a) Notwithstanding any other provision of this
4027		-	26 chapter, common and contract carriers and other carriers engaged in
4028		-	27 the transportation of passengers or household goods for hire, over
4029		-	28 regular or irregular routes, whether operating pursuant to a certificate
4030		-	29 or permit or as an exempt carrier under section 2.1(5) of this chapter,
4031		-	30 shall file with the department proof of financial responsibility in the
4032		-	31 form of surety bonds or policies of insurance or shall qualify as a
4033		-	32 self-insured. The minimum level of financial responsibility required
4034		-	33 shall be as follows:
4035		-	34 (1) Except as provided in subdivision (2), the minimum level
4036		-	35 established under 49 U.S.C. 13906(a)(1).
4037		-	36 (2) For contract carriers that transport railroad employees, at least
4038		-	37 five million dollars ($5,000,000).
4039		-	38 (b) A person who violates this section commits a Class C infraction.
4040		-	39 However, the offense is a Class A misdemeanor if the person has a
4041		-	40 prior unrelated judgment for violating this section.
4042		-	41 (c) In addition to any other penalty imposed upon a person for a
4043		-	42 conviction of a Class A misdemeanor under subsection (b), the law
4044		-	ES 453—LS 7499/DI 120 93
4045		-	1 enforcement agency may impound the vehicles owned by the person.
4046		-	2 Unless the vehicle is impounded or forfeited under a law other than this
4047		-	3 section, the vehicle shall be released to the carrier when the carrier
4048		-	4 complies with this section.
4049		-	5 SECTION 75. IC 8-2.1-23-2, AS AMENDED BY P.L.198-2016,
4050		-	6 SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4051		-	7 JULY 1, 2024 (RETROACTIVE)]: Sec. 2. The treasurer of state shall
4052		-	8 deposit fees collected by the department under this article,
4053		-	9 IC 6-6-4.1-13, IC 9-17-2, IC 9-17-3, IC 9-18.1-5, IC 9-18.1-6-4,
4054		-	10 IC 9-18.1-11, IC 9-18.1-13, IC 9-20-5-7(b), IC 9-20-5-7(c), and
4055		-	11 IC 9-20-18-14.5 in the motor carrier regulation fund to the extent
4056		-	12 designated in the aforementioned statutes.
4057		-	13 SECTION 76. IC 9-17-2-20 IS ADDED TO THE INDIANA CODE
4058		-	14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4059		-	15 1, 2024 (RETROACTIVE)]: Sec. 20. (a) This section applies after
4060		-	16 June 30, 2024.
4061		-	17 (b) This section applies only to fees, penalties, and fines
4062		-	18 described in this chapter that are collected by the department of
4063		-	19 state revenue pursuant to IC 9-18.1-13-2.
4064		-	20 (c) For any portion of fees, penalties, or fines collected by the
4065		-	21 department that require deposit into the commission fund, the
4066		-	22 department shall instead deposit a certain amount of that portion
4067		-	23 into the motor carrier regulation fund established by IC 8-2.1-23-1
4068		-	24 as follows:
4069		-	25 (1) For the speed title fee imposed pursuant to section 13.5 of
4070		-	26 this chapter, twenty-five dollars ($25) shall be deposited in the
4071		-	27 motor carrier regulation fund.
4072		-	28 (2) For the title fee imposed pursuant to section 14.5 of this
4073		-	29 chapter, two dollars and fifty cents ($2.50) shall be deposited
4074		-	30 in the motor carrier regulation fund, and two dollars and fifty
4075		-	31 cents ($2.50) shall be deposited in the commission fund.
4076		-	32 (d) Except as provided in subsection (c), all other distributions
4077		-	33 shall be deposited as required by the provisions of this chapter.
4078		-	34 SECTION 77. IC 9-17-3-2, AS AMENDED BY P.L.27-2018,
4079		-	35 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4080		-	36 JULY 1, 2024 (RETROACTIVE)]: Sec. 2. (a) If a certificate of title:
4081		-	37 (1) is lost or stolen;
4082		-	38 (2) is mutilated;
4083		-	39 (3) is destroyed; or
4084		-	40 (4) becomes illegible;
4085		-	41 the person that owns the vehicle or the legal representative or legal
4086		-	42 successor in interest of the person that owns the vehicle for which the
4087		-	ES 453—LS 7499/DI 120 94
4088		-	1 certificate of title was issued, as shown by the records of the bureau,
4089		-	2 shall apply for and may obtain a duplicate certificate of title.
4090		-	3 (b) To obtain a duplicate certificate of title under subsection (a), a
4091		-	4 person must:
4092		-	5 (1) furnish information satisfactory to the bureau concerning the
4093		-	6 loss, theft, mutilation, destruction, or illegibility of the certificate
4094		-	7 of title; and
4095		-	8 (2) pay the applicable fee under subsection (e) or (f).
4096		-	9 (c) The word "duplicate" shall be notated on the certificate of title
4097		-	10 issued under this section.
4098		-	11 (d) When a duplicate certificate of title is issued, the previous
4099		-	12 certificate of title becomes void.
4100		-	13 (e) The fee for a duplicate certificate of title issued before January
4101		-	14 1, 2017, for a vehicle other than a watercraft is eight dollars ($8). The
4102		-	15 fee shall be distributed as follows:
4103		-	16 (1) One dollar ($1) to the motor vehicle highway account.
4104		-	17 (2) One dollar ($1) to the highway, road and street fund.
4105		-	18 (3) Six dollars ($6) to the commission fund.
4106		-	19 (f) The fee for a duplicate certificate of title issued before January
4107		-	20 1, 2017, for a watercraft is fifteen dollars and fifty cents ($15.50). The
4108		-	21 fee shall be distributed as follows:
4109		-	22 (1) Fifty cents ($0.50) to the state motor vehicle technology fund.
4110		-	23 (2) Two dollars ($2) to the crossroads 2000 fund.
4111		-	24 (3) One dollar and twenty-five cents ($1.25) to the integrated
4112		-	25 public safety communications fund.
4113		-	26 (4) Four dollars and seventy-five cents ($4.75) to the commission
4114		-	27 fund.
4115		-	28 (5) Seven dollars ($7) to the department of natural resources.
4116		-	29 (g) The fee for a duplicate certificate of title issued after December
4117		-	30 31, 2016, is fifteen dollars ($15). The Except as provided in
4118		-	31 subsection (h), the fee shall be distributed as follows:
4119		-	32 (1) Fifty cents ($0.50) to the state motor vehicle technology fund.
4120		-	33 (2) One dollar and twenty-five cents ($1.25) to the department of
4121		-	34 natural resources.
4122		-	35 (3) Three dollars and twenty-five cents ($3.25) to the motor
4123		-	36 vehicle highway account.
4124		-	37 (4) Five dollars ($5) to the crossroads 2000 fund.
4125		-	38 (5) One dollar and twenty-five cents ($1.25) to the integrated
4126		-	39 public safety communications fund.
4127		-	40 (6) Three dollars and seventy-five cents ($3.75) to the
4128		-	41 commission fund.
4129		-	42 (h) After June 30, 2024, when a fee imposed under subsection (g)
4130		-	ES 453—LS 7499/DI 120 95
4131		-	1 is collected by the department, instead of depositing three dollars
4132		-	2 and seventy-five cents ($3.75) into the commission fund as required
4133		-	3 by subsection (g)(6), the department shall instead deposit one
4134		-	4 dollar and eighty-eight cents ($1.88) of that amount into the motor
4135		-	5 carrier regulation fund established by IC 8-2.1-23-1, and the
4136		-	6 remainder shall be deposited in the commission fund.
4137		-	7 SECTION 78. IC 9-18.1-5-10.7 IS ADDED TO THE INDIANA
4138		-	8 CODE AS A NEW SECTION TO READ AS FOLLOWS
4139		-	9 [EFFECTIVE JULY 1, 2024 (RETROACTIVE)]: Sec. 10.7. (a) This
4140		-	10 section applies after June 30, 2024.
4141		-	11 (b) This section applies only to fees described in this chapter
4142		-	12 that are collected by the department of state revenue pursuant to
4143		-	13 IC 9-18.1-13-3.
4144		-	14 (c) For any portion of fees collected by the department that
4145		-	15 require deposit into the commission fund, the department shall
4146		-	16 instead deposit ninety percent (90%) of that portion into the motor
4147		-	17 carrier regulation fund established by IC 8-2.1-23-1, and the
4148		-	18 remainder shall be deposited in the commission fund.
4149		-	19 (d) Except as provided in subsection (c), all other distributions
4150		-	20 shall be deposited as required by the provisions of this chapter.
4151		-	21 SECTION 79. IC 9-18.1-6-4, AS AMENDED BY P.L.108-2019,
4152		-	22 SECTION 171, IS AMENDED TO READ AS FOLLOWS
4153		-	23 [EFFECTIVE JULY 1, 2024 (RETROACTIVE)]: Sec. 4. (a) Except as
4154		-	24 provided in subsection (e), the fee to register a recovery vehicle with
4155		-	25 a gross vehicle weight rating greater than sixteen thousand (16,000)
4156		-	26 pounds is five hundred four dollars ($504).
4157		-	27 (b) Except as provided in subsection (e), the fee to register a
4158		-	28 recovery vehicle with a gross vehicle weight rating equal to or less than
4159		-	29 sixteen thousand (16,000) pounds is seventy-two dollars ($72).
4160		-	30 (c) Except as provided in subsection (d), a fee imposed and
4161		-	31 collected under subsection (a) or (b) shall be distributed as follows:
4162		-	32 (1) Twenty-five cents ($0.25) to the state construction fund.
4163		-	33 (2) Fifty cents ($0.50) to the state motor vehicle technology fund.
4164		-	34 (3) Two dollars and ninety cents ($2.90) to the highway, road and
4165		-	35 street fund.
4166		-	36 (4) Four dollars ($4) to the crossroads 2000 fund.
4167		-	37 (5) One dollar and twenty-five cents ($1.25) to the integrated
4168		-	38 public safety communications fund.
4169		-	39 (6) Three dollars and ten cents ($3.10) to the commission fund
4170		-	40 (except as provided in subsection (f)).
4171		-	41 (7) Any remaining amount to the motor vehicle highway account.
4172		-	42 (d) A fee described in subsection (a) that is collected under the
	4160	+	27 [EFFECTIVE JULY 1, 2024 (RETROACTIVE)]: Sec. 10.7. (a) This
	4161	+	28 section applies after June 30, 2024.
	4162	+	29 (b) This section applies only to fees described in this chapter
	4163	+	30 that are collected by the department of state revenue pursuant to
	4164	+	31 IC 9-18.1-13-3.
	4165	+	32 (c) For any portion of fees collected by the department that
	4166	+	33 require deposit into the commission fund, the department shall
	4167	+	34 instead deposit ninety percent (90%) of that portion into the motor
	4168	+	35 carrier regulation fund established by IC 8-2.1-23-1, and the
	4169	+	36 remainder shall be deposited in the commission fund.
	4170	+	37 (d) Except as provided in subsection (c), all other distributions
	4171	+	38 shall be deposited as required by the provisions of this chapter.
	4172	+	39 SECTION 81. IC 9-18.1-6-4, AS AMENDED BY P.L.108-2019,
	4173	+	40 SECTION 171, IS AMENDED TO READ AS FOLLOWS
	4174	+	41 [EFFECTIVE JULY 1, 2024 (RETROACTIVE)]: Sec. 4. (a) Except as
	4175	+	42 provided in subsection (e), the fee to register a recovery vehicle with
4173	4176		ES 453—LS 7499/DI 120 96
4174		-	1 ~~International Registration Plan shall be distributed as set forth in~~
4175		-	2 ~~IC 9-18~~.~~1-5-10.5.~~
4176		-	3 (e) The fee to register a ~~recovery vehicle for a period other than~~
4177		-	4 ~~twelve (12) months is the amount determined under the following~~
4178		-	5 ~~formula:~~
4179		-	6 ~~STEP ONE:~~ ~~Determine the number of months remaining until the~~
4180		-	7 ~~vehicle's next registration date~~ under ~~IC 9-18.1-11. A partial~~
4181		-	8 ~~month shall be rounded to one~~ (1) ~~month~~.
4182		-	9 ~~STEP TWO:~~ ~~Multiply~~ the ~~STEP ONE result by one-twelfth~~
4183		-	10 (~~1/12~~).
4184		-	11 ~~STEP THREE: Multiply the STEP TWO product by the~~
4185		-	12 ~~applicable registration fee under subsection~~ (a) ~~or (b) for~~ the
4186		-	13 ~~vehicle~~.
4187		-	14 ~~A fee imposed and collected under this subsection that is not collected~~
4188		-	15 ~~under~~ the ~~International Registration Plan shall be distributed under~~
4189		-	16 subsection (c). ~~A fee imposed and collected under this subsection that~~
4190		-	17 ~~is collected under~~ the ~~International Registration Plan shall be~~
4191		-	18 ~~distributed under~~ subsection (d).
4192		-	19 ~~(f) Beginning after June 30,~~ ~~2024, when a fee imposed under~~
4193		-	20 ~~subsection (a) or (b) is collected by the department of state~~
4194		-	21 ~~revenue, instead of depositing three dollars and ten cents ($3.10)~~
4195		-	22 ~~into~~ the ~~commission fund as required by subsection (c)(6),~~ the
4196		-	23 ~~department shall instead deposit ninety percent (90%) of that~~
4197		-	24 ~~amount into~~ the ~~motor carrier regulation fund established by~~
4198		-	25 IC ~~8-2~~.1-~~23-1, and the remainder shall be deposited in the~~
4199		-	26 ~~commission fund~~.
4200		-	27 ~~SECTION 80.~~ ~~IC 9-18.1-11-11 IS ADDED TO~~ THE ~~INDIANA~~
4201		-	28 ~~CODE AS A NEW SECTION TO READ AS FOLLOWS~~
4202		-	29 ~~[EFFECTIVE JULY 1, 2024 (RETROACTIVE)]~~: ~~Sec. 11.~~ ~~(a) This~~
4203		-	30 ~~section applies after June 30,~~ ~~2024.~~
4204		-	31 ~~(b) This section applies only to fees described in this chapter~~
4205		-	32 that ~~are~~ collected ~~by the department of state revenue.~~
4206		-	33 ~~(c) For any portion of fees collected by~~ the ~~department that~~
4207		-	34 ~~require deposit into the commission fund,~~ ~~the department shall~~
4208		-	35 ~~instead deposit ninety percent (90%) of that portion into~~ the ~~motor~~
4209		-	36 ~~carrier regulation fund established by IC 8-2~~.~~1-23-1, and the~~
4210		-	37 ~~remainder shall be deposited in the commission fund.~~
4211		-	38 ~~(d) Except as provided in~~ subsection (c)~~, all other distributions~~
4212		-	39 ~~shall be deposited as required by the provisions~~ of ~~this chapter~~.
4213		-	40 ~~SECTION 81.~~ ~~IC 9-18.1-13-7,~~ AS ~~AMENDED~~ BY ~~P.L.257-2017~~,
4214		-	41 ~~SECTION 29,~~ ~~IS AMENDED TO READ AS FOLLOWS [EFFECTIVE~~
4215		-	42 ~~JULY 1,~~ ~~2024 (RETROACTIVE)]: Sec.~~ ~~7. (a) Except as provided in~~
	4177	+	1 a gross vehicle weight rating greater than sixteen thousand (16,000)
	4178	+	2 pounds is five hundred four dollars ($504).
	4179	+	3 (b) Except as provided in subsection (e), the fee to register a
	4180	+	4 recovery vehicle with a gross vehicle weight rating equal to or less than
	4181	+	5 sixteen thousand (16,000) pounds is seventy-two dollars ($72).
	4182	+	6 (c) Except as provided in subsection (d), a fee imposed and
	4183	+	7 collected under subsection (a) or (b) shall be distributed as follows:
	4184	+	8 (1) Twenty-five cents ($0.25) to the state construction fund.
	4185	+	9 (2) Fifty cents ($0.50) to the state motor vehicle technology fund.
	4186	+	10 (3) Two dollars and ninety cents ($2.90) to the highway, road and
	4187	+	11 street fund.
	4188	+	12 (4) Four dollars ($4) to the crossroads 2000 fund.
	4189	+	13 (5) One dollar and twenty-five cents ($1.25) to the integrated
	4190	+	14 public safety communications fund.
	4191	+	15 (6) Three dollars and ten cents ($3.10) to the commission fund
	4192	+	16 (except as provided in subsection (f)).
	4193	+	17 (7) Any remaining amount to the motor vehicle highway account.
	4194	+	18 (d) A fee described in subsection (a) that is collected under the
	4195	+	19 International Registration Plan shall be distributed as set forth in
	4196	+	20 IC 9-18.1-5-10.5.
	4197	+	21 (e) The fee to register a recovery vehicle for a period other than
	4198	+	22 twelve (12) months is the amount determined under the following
	4199	+	23 formula:
	4200	+	24 STEP ONE: Determine the number of months remaining until the
	4201	+	25 vehicle's next registration date under IC 9-18.1-11. A partial
	4202	+	26 month shall be rounded to one (1) month.
	4203	+	27 STEP TWO: Multiply the STEP ONE result by one-twelfth
	4204	+	28 (1/12).
	4205	+	29 STEP THREE: Multiply the STEP TWO product by the
	4206	+	30 applicable registration fee under subsection (a) or (b) for the
	4207	+	31 vehicle.
	4208	+	32 A fee imposed and collected under this subsection that is not collected
	4209	+	33 under the International Registration Plan shall be distributed under
	4210	+	34 subsection (c). A fee imposed and collected under this subsection that
	4211	+	35 is collected under the International Registration Plan shall be
	4212	+	36 distributed under subsection (d).
	4213	+	37 (f) Beginning after June 30, 2024, when a fee imposed under
	4214	+	38 subsection (a) or (b) is collected by the department of state
	4215	+	39 revenue, instead of depositing three dollars and ten cents ($3.10)
	4216	+	40 into the commission fund as required by subsection (c)(6), the
	4217	+	41 department shall instead deposit ninety percent (90%) of that
	4218	+	42 amount into the motor carrier regulation fund established by
4216	4219		ES 453—LS 7499/DI 120 97
4217		-	1 ~~subsection (b)~~, ~~a person that fails to:~~
4218		-	2 ~~(1) apply for the registration of, or transfer a registration to, a~~
4219		-	3 ~~vehicle;~~
4220		-	4 ~~(2) provide full payment for the registration of~~ a ~~vehicle; or~~
4221		-	5 (3) ~~both:~~
4222		-	6 ~~(A) apply for the registration of~~, ~~or transfer a registration to, a~~
4223		-	7 ~~vehicle; and~~
4224		-	8 ~~(B) provide full payment for~~ the ~~registration~~ of ~~a vehicle;~~
4225		-	9 ~~as required under this chapter is subject to~~ the ~~penalties and interest~~
4226		-	10 ~~imposed under IC 6-8.1-10.~~
4227		-	11 (b) ~~A person~~ that ~~fails to:~~
4228		-	12 (1~~) apply for~~ the ~~registration of, or transfer a registration to, a~~
4229		-	13 ~~vehicle;~~
4230		-	14 (2) ~~provide full payment for the registration of a vehicle; or~~
4231		-	15 ~~(3) both:~~
4232		-	16 ~~(A) apply for the registration of~~, ~~or transfer a registration to~~, a
4233		-	17 ~~vehicle; and~~
4234		-	18 (B) ~~provide full payment for the registration of a vehicle;~~
4235		-	19 ~~as required under IC 9-18-2-4.6~~ (~~before its expiration)~~ or
4236		-	20 ~~IC 9-18.1-13-3 is subject to~~ the ~~administrative penalty imposed under~~
4237		-	21 ~~IC 9-18.1-11-5.~~
4238		-	22 (c) ~~An administrative penalty collected under subsection (b) shall~~
4239		-	23 ~~be deposited as follows~~:
4240		-	24 (1) ~~Before July 1, 2024, in~~ the ~~commission fund.~~
4241		-	25 ~~(2) After June 30, 2024:~~
4242		-	26 (A) ~~Ten percent (10%) in~~ the ~~commission fund.~~
4243		-	27 ~~(B) Ninety percent (90%) in~~ the ~~motor carrier regulation~~
4244		-	28 ~~fund~~.
4245		-	29 ~~SECTION 82.~~ ~~IC 12-15-1.3-18.7 IS ADDED~~ TO ~~THE INDIANA~~
4246		-	30 ~~CODE AS~~ A ~~NEW SECTION~~ TO ~~READ AS FOLLOWS~~
4247		-	31 ~~[EFFECTIVE JULY 1, 2025]: Sec. 18.7. (a) Before September 1,~~
4248		-	32 ~~2025,~~ the ~~office~~ of ~~the secretary shall apply to the United States~~
4249		-	33 ~~Department of Health and Human Services for an amendment to~~
4250		-	34 ~~each home and community based services Medicaid waiver~~ to,
4251		-	35 ~~when determining eligibility for an individual~~ and ~~the individual's~~
4252		-	36 ~~spouse who have both applied~~ for a ~~home and community based~~
4253		-	37 ~~services Medicaid waiver,~~ ~~use an asset limit threshold that equals~~
4254		-	38 the ~~asset limit for a single individual multiplied by two (2).~~
4255		-	39 ~~(b) The office of the secretary shall implement the changes in~~
4256		-	40 ~~determining eligibility for a home and community based services~~
4257		-	41 ~~Medicaid waiver specified in subsection (a) beginning on the date~~
4258		-	42 ~~on which~~ the ~~United States Department of Health and Human~~
	4220	+	1 IC 8-2.1-23-1, and the remainder shall be deposited in the
	4221	+	2 commission fund.
	4222	+	3 SECTION 82. IC 9-18.1-11-11 IS ADDED TO THE INDIANA
	4223	+	4 CODE AS A NEW SECTION TO READ AS FOLLOWS
	4224	+	5 [EFFECTIVE JULY 1, 2024 (RETROACTIVE)]: Sec. 11. (a) This
	4225	+	6 section applies after June 30, 2024.
	4226	+	7 (b) This section applies only to fees described in this chapter
	4227	+	8 that are collected by the department of state revenue.
	4228	+	9 (c) For any portion of fees collected by the department that
	4229	+	10 require deposit into the commission fund, the department shall
	4230	+	11 instead deposit ninety percent (90%) of that portion into the motor
	4231	+	12 carrier regulation fund established by IC 8-2.1-23-1, and the
	4232	+	13 remainder shall be deposited in the commission fund.
	4233	+	14 (d) Except as provided in subsection (c), all other distributions
	4234	+	15 shall be deposited as required by the provisions of this chapter.
	4235	+	16 SECTION 83. IC 9-18.1-13-7, AS AMENDED BY P.L.257-2017,
	4236	+	17 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	4237	+	18 JULY 1, 2024 (RETROACTIVE)]: Sec. 7. (a) Except as provided in
	4238	+	19 subsection (b), a person that fails to:
	4239	+	20 (1) apply for the registration of, or transfer a registration to, a
	4240	+	21 vehicle;
	4241	+	22 (2) provide full payment for the registration of a vehicle; or
	4242	+	23 (3) both:
	4243	+	24 (A) apply for the registration of, or transfer a registration to, a
	4244	+	25 vehicle; and
	4245	+	26 (B) provide full payment for the registration of a vehicle;
	4246	+	27 as required under this chapter is subject to the penalties and interest
	4247	+	28 imposed under IC 6-8.1-10.
	4248	+	29 (b) A person that fails to:
	4249	+	30 (1) apply for the registration of, or transfer a registration to, a
	4250	+	31 vehicle;
	4251	+	32 (2) provide full payment for the registration of a vehicle; or
	4252	+	33 (3) both:
	4253	+	34 (A) apply for the registration of, or transfer a registration to, a
	4254	+	35 vehicle; and
	4255	+	36 (B) provide full payment for the registration of a vehicle;
	4256	+	37 as required under IC 9-18-2-4.6 (before its expiration) or
	4257	+	38 IC 9-18.1-13-3 is subject to the administrative penalty imposed under
	4258	+	39 IC 9-18.1-11-5.
	4259	+	40 (c) An administrative penalty collected under subsection (b) shall
	4260	+	41 be deposited as follows:
	4261	+	42 (1) Before July 1, 2024, in the commission fund.
4259	4262		ES 453—LS 7499/DI 120 98
4260		-	1 ~~Services approves the request for changes by the office of the~~
4261		-	2 ~~secretary under this section~~.
4262		-	3 ~~SECTION 83.~~ ~~IC 36-8-28 IS ADDED TO~~ THE ~~INDIANA CODE~~
4263		-	4 ~~AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE~~
4264		-	5 ~~JULY~~ 1~~, 2025]:~~
4265		-	6 ~~Chapter 28.~~ ~~Fire Service Reports~~
4266		-	7 Sec. 1. ~~As used in this chapter~~, ~~"local unit" means any:~~
4267		-	8 ~~(1) unit as defined in IC 36-1-2-23;~~
4268		-	9 ~~(2) fire protection district established under IC 36-8-11; or~~
4269		-	10 ~~(3) fire protection territory established under IC 36-8-19.~~
4270		-	11 ~~Sec. 2.~~ ~~As used in this chapter, "state fire marshal" means~~ the
4271		-	12 ~~state fire marshal appointed under IC 22-14-2-2.~~
4272		-	13 ~~Sec. 3.~~ ~~Any local unit~~ that ~~provides fire service shall make~~
4273		-	14 ~~semiannual fire service reports to~~ the ~~state fire marshal as follows:~~
4274		-	15 (1) ~~For~~ the ~~six (6) month period from July 1 through~~
4275		-	16 ~~December 31 of~~ a ~~year, by January 31 of the following year.~~
4276		-	17 (2) ~~For~~ the ~~six (6) month period from January 1 through June~~
4277		-	18 30 of ~~a year,~~ ~~by July 31 of the year.~~
4278		-	19 ~~Sec. 4. (a)~~ The ~~state fire marshal shall subsequently report:~~
4279		-	20 ~~(1) the data reported by January 31~~ under section ~~3(1) of this~~
4280		-	21 ~~chapter~~ to the ~~legislative council by the following March 1;~~
4281		-	22 ~~and~~
4282		-	23 ~~(2) the data reported by July 31 under section 3(2) of this~~
4283		-	24 ~~chapter to~~ the ~~legislative council by the following September~~
4284		-	25 1.
4285		-	26 (b) ~~The reports under this section shall be in an electronic~~
4286		-	27 ~~format under IC 5-14-6~~.
4287		-	28 ~~Sec~~. ~~5. A fire service report under this chapter shall include data~~
4288		-	29 ~~on the following:~~
4289		-	30 (1~~) The number of separate fire runs made during the~~
4290		-	31 ~~reporting period~~. ~~A single~~ fire ~~run requiring multiple vehicles~~
4291		-	32 ~~shall be considered one (1) fire run for purposes of a report.~~
4292		-	33 (2) ~~The number of vehicles that participated~~ in ~~each fire run.~~
4293		-	34 (3) ~~Information on whether a~~ fire ~~run consisted of:~~
4294		-	35 (A) ~~a fire;~~
4295		-	36 ~~(B) a vehicle accident;~~
4296		-	37 ~~(C) the provision of emergency medical services; or~~
4297		-	38 ~~(D)~~ any ~~other type of~~ fire ~~run.~~
4298		-	39 ~~(4) Information on whether or not a~~ fire ~~was extinguished~~ as
4299		-	40 ~~part of~~ the ~~fire run,~~ ~~regardless of whether or not the report~~
4300		-	41 ~~indicates that the fire run consisted~~ of a ~~fire under subdivision~~
4301		-	42 (3).
	4263	+	1 (2) After June 30, 2024:
	4264	+	2 (A) Ten percent (10%) in the commission fund.
	4265	+	3 (B) Ninety percent (90%) in the motor carrier regulation
	4266	+	4 fund.
	4267	+	5 SECTION 84. IC 12-15-1.3-18.7 IS ADDED TO THE INDIANA
	4268	+	6 CODE AS A NEW SECTION TO READ AS FOLLOWS
	4269	+	7 [EFFECTIVE JULY 1, 2025]: Sec. 18.7. (a) Before September 1,
	4270	+	8 2025, the office of the secretary shall apply to the United States
	4271	+	9 Department of Health and Human Services for an amendment to
	4272	+	10 each home and community based services Medicaid waiver to,
	4273	+	11 when determining eligibility for an individual and the individual's
	4274	+	12 spouse who have both applied for a home and community based
	4275	+	13 services Medicaid waiver, use an asset limit threshold that equals
	4276	+	14 the asset limit for a single individual multiplied by two (2).
	4277	+	15 (b) The office of the secretary shall implement the changes in
	4278	+	16 determining eligibility for a home and community based services
	4279	+	17 Medicaid waiver specified in subsection (a) beginning on the date
	4280	+	18 on which the United States Department of Health and Human
	4281	+	19 Services approves the request for changes by the office of the
	4282	+	20 secretary under this section.
	4283	+	21 SECTION 85. IC 16-41-39-4 IS ADDED TO THE INDIANA
	4284	+	22 CODE AS A NEW SECTION TO READ AS FOLLOWS
	4285	+	23 [EFFECTIVE UPON PASSAGE]: Sec. 4. Any advertising or
	4286	+	24 marketing of heated tobacco products, regardless of the format of
	4287	+	25 the advertising, must include a message stating the following:
	4288	+	26 (1) Heated tobacco products contain nicotine.
	4289	+	27 (2) The ingestion of nicotine is harmful to humans.
	4290	+	28 SECTION 86. IC 36-8-28 IS ADDED TO THE INDIANA CODE
	4291	+	29 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
	4292	+	30 JULY 1, 2025]:
	4293	+	31 Chapter 28. Fire Service Reports
	4294	+	32 Sec. 1. As used in this chapter, "local unit" means any:
	4295	+	33 (1) unit as defined in IC 36-1-2-23;
	4296	+	34 (2) fire protection district established under IC 36-8-11; or
	4297	+	35 (3) fire protection territory established under IC 36-8-19.
	4298	+	36 Sec. 2. As used in this chapter, "state fire marshal" means the
	4299	+	37 state fire marshal appointed under IC 22-14-2-2.
	4300	+	38 Sec. 3. Any local unit that provides fire service shall make
	4301	+	39 semiannual fire service reports to the state fire marshal as follows:
	4302	+	40 (1) For the six (6) month period from July 1 through
	4303	+	41 December 31 of a year, by January 31 of the following year.
	4304	+	42 (2) For the six (6) month period from January 1 through June
4302	4305		ES 453—LS 7499/DI 120 99
4303		-	1 SECTION 84. [EFFECTIVE JANUARY 1, 2025
4304		-	2 (RETROACTIVE)] (a) IC 6-3-2.1-4 and IC 6-3-2.1-5, both as
	4306	+	1 30 of a year, by July 31 of the year.
	4307	+	2 Sec. 4. (a) The state fire marshal shall subsequently report:
	4308	+	3 (1) the data reported by January 31 under section 3(1) of this
	4309	+	4 chapter to the legislative council by the following March 1;
	4310	+	5 and
	4311	+	6 (2) the data reported by July 31 under section 3(2) of this
	4312	+	7 chapter to the legislative council by the following September
	4313	+	8 1.
	4314	+	9 (b) The reports under this section shall be in an electronic
	4315	+	10 format under IC 5-14-6.
	4316	+	11 Sec. 5. A fire service report under this chapter shall include data
	4317	+	12 on the following:
	4318	+	13 (1) The number of separate fire runs made during the
	4319	+	14 reporting period. A single fire run requiring multiple vehicles
	4320	+	15 shall be considered one (1) fire run for purposes of a report.
	4321	+	16 (2) The number of vehicles that participated in each fire run.
	4322	+	17 (3) Information on whether a fire run consisted of:
	4323	+	18 (A) a fire;
	4324	+	19 (B) a vehicle accident;
	4325	+	20 (C) the provision of emergency medical services; or
	4326	+	21 (D) any other type of fire run.
	4327	+	22 (4) Information on whether or not a fire was extinguished as
	4328	+	23 part of the fire run, regardless of whether or not the report
	4329	+	24 indicates that the fire run consisted of a fire under subdivision
	4330	+	25 (3).
	4331	+	26 SECTION 87. [EFFECTIVE JANUARY 1, 2025
	4332	+	27 (RETROACTIVE)] (a) IC 6-3-2.1-4 and IC 6-3-2.1-5, both as
	4333	+	28 amended by this act, apply to taxable years beginning after
	4334	+	29 December 31, 2024.
	4335	+	30 (b) This SECTION expires January 1, 2027.
	4336	+	31 SECTION 88. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-5-58, as
	4337	+	32 added by this act, applies only to retail transactions occurring after
	4338	+	33 June 30, 2025.
	4339	+	34 (b) Except as provided in subsection (c), a retail transaction is
	4340	+	35 considered to have occurred after June 30, 2025, if the property
	4341	+	36 whose transfer constitutes selling at retail is delivered to the
	4342	+	37 purchaser or to the place of delivery designated by the purchaser
	4343	+	38 after June 30, 2025.
	4344	+	39 (c) Notwithstanding the delivery of the property constituting
	4345	+	40 selling at retail after June 30, 2025, a transaction is considered to
	4346	+	41 have occurred before July 1, 2025, to the extent that:
	4347	+	42 (1) the agreement of the parties to the transaction is entered
	4348	+	ES 453—LS 7499/DI 120 100
	4349	+	1 into before July 1, 2025; and
	4350	+	2 (2) payment for the property furnished in the transaction is
	4351	+	3 made before July 1, 2025.
	4352	+	4 (d) This SECTION expires January 1, 2028.
	4353	+	5 SECTION 89. IC 35-52-8-4.6 IS ADDED TO THE INDIANA
	4354	+	6 CODE AS A NEW SECTION TO READ AS FOLLOWS
	4355	+	7 [EFFECTIVE JULY 1, 2025]: Sec. 4.6. IC 8-2.1-22-42 defines a
	4356	+	8 crime concerning intrastate motor carriers.
	4357	+	9 SECTION 90. IC 35-52-8-4.8 IS ADDED TO THE INDIANA
	4358	+	10 CODE AS A NEW SECTION TO READ AS FOLLOWS
	4359	+	11 [EFFECTIVE JULY 1, 2025]: Sec. 4.8. IC 8-2.1-22-45 defines a
	4360	+	12 crime concerning motor carriers.
	4361	+	13 SECTION 91. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-3-11, as
	4362	+	14 added by this act, shall be effective for transactions occurring after
	4363	+	15 June 30, 2025.
	4364	+	16 (b) For purposes of IC 6-2.5-3-11, as added by this act, all
	4365	+	17 transactions, except the furnishing of telephone or related services,
	4366	+	18 cable television or similar video and related services, cable radio,
	4367	+	19 satellite television, or satellite radio services and related
	4368	+	20 commodities by retail merchants described in IC 6-2.5-4-5,
	4369	+	21 IC 6-2.5-4-6, and IC 6-2.5-4-11, and computer software
	4370	+	22 maintenance contracts described in IC 6-2.5-4-17, shall be
	4371	+	23 considered as having occurred after June 30, 2025, to the extent
	4372	+	24 that delivery of the services or items constituting selling at retail is
	4373	+	25 made after that date to the purchaser or to the place of delivery
	4374	+	26 designated by the purchaser. However, a transaction shall be
	4375	+	27 considered as having occurred before July 1, 2025, to the extent
	4376	+	28 that the agreement of the parties to the transaction was entered
	4377	+	29 into before July 1, 2025, and payment for the services or items
	4378	+	30 furnished in the transaction is made before July 1, 2025,
	4379	+	31 notwithstanding the delivery of the services or items after June 30,
	4380	+	32 2025.
	4381	+	33 (c) With respect to a transaction constituting the furnishing of
	4382	+	34 telephone or related services, cable television or similar video and
	4383	+	35 related services, cable radio, satellite television, or satellite radio
	4384	+	36 services and related commodities, only transactions for which the
	4385	+	37 charges are collected upon original statements and billings dated
	4386	+	38 after July 31, 2025, shall be considered as having occurred after
	4387	+	39 June 30, 2025.
	4388	+	40 (d) With respect to a transaction constituting the entering into
	4389	+	41 or renewal of a computer software maintenance contract, only
	4390	+	42 contracts entered into by both parties after June 30, 2025, shall be
	4391	+	ES 453—LS 7499/DI 120 101
	4392	+	1 considered as having occurred after June 30, 2025. For purposes
	4393	+	2 of this subsection, the automatic or permissive renewal of a
	4394	+	3 previously existing contract shall be treated as occurring on the
	4395	+	4 date the renewal is effective.
	4396	+	5 SECTION 92. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-3.5-27, as
	4397	+	6 added by this act, shall be effective for transactions occurring after
	4398	+	7 June 30, 2025.
	4399	+	8 (b) For purposes of IC 6-2.5-3.5-27, as added by this act, all
	4400	+	9 transactions, shall be considered as having occurred after June 30,
	4401	+	10 2025, to the extent that delivery of the gasoline is made after that
	4402	+	11 date to the purchaser or to the place of delivery designated by the
	4403	+	12 purchaser. However, a transaction shall be considered as having
	4404	+	13 occurred before July 1, 2025, to the extent that the agreement of
	4405	+	14 the parties to the transaction was entered into before July 1, 2025,
	4406	+	15 and payment for the gasoline furnished in the transaction is made
	4407	+	16 before July 1, 2025, notwithstanding the delivery of the gasoline
	4408	+	17 after June 30, 2025.
	4409	+	18 SECTION 93. [EFFECTIVE JULY 1, 2025] (a) IC 6-3-4-4.1, as
	4410	+	19 amended by this act, is effective for taxable years beginning after
	4411	+	20 December 31, 2025.
	4412	+	21 (b) IC 6-3-4-4.2, as added by this act, is effective for taxable
	4413	+	22 years beginning after December 31, 2025.
	4414	+	23 (c) IC 6-5.5-6-3, as amended by this act, is effective for taxable
	4415	+	24 years beginning after December 31, 2025.
	4416	+	25 (d) IC 6-5.5-7-1, as amended by this act, is effective for taxable
	4417	+	26 years beginning after December 31, 2025.
	4418	+	27 SECTION 94. [EFFECTIVE JULY 1, 2025] (a) IC 6-8.1-19, as
	4419	+	28 added by this act, is effective for transactions occurring after
	4420	+	29 December 31, 2025.
	4421	+	30 (b) All transactions shall be considered as having occurred after
	4422	+	31 December 31, 2025, to the extent that delivery of the property or
	4423	+	32 services constituting selling at retail is made after that date to the
	4424	+	33 purchaser or to the place of delivery designated by the purchaser.
	4425	+	34 However, a transaction shall be considered as having occurred
	4426	+	35 before January 1, 2026, to the extent that the agreement of the
	4427	+	36 parties to the transaction was entered into before January 1, 2026,
	4428	+	37 and payment for the property or services furnished in the
	4429	+	38 transaction is made before January 1, 2026, notwithstanding the
	4430	+	39 delivery of the property or services after December 31, 2025.
	4431	+	40 SECTION 95. [EFFECTIVE JANUARY 1, 2025
	4432	+	41 (RETROACTIVE)] (a) IC 6-3.1-40-1.5, IC 6-3.1-40-8.5,
	4433	+	42 IC 6-3.1-40-9.5, IC 6-3.1-40-11, and IC 6-3.1-40-12, all as added by
	4434	+	ES 453—LS 7499/DI 120 102
	4435	+	1 this act, apply to taxable years beginning after December 31, 2024.
	4436	+	2 (b) IC 6-3.1-40-5, IC 6-3.1-40-6, and IC 6-3.1-40-7, all as
4305	4437		3 amended by this act, apply to taxable years beginning after
4306	4438		4 December 31, 2024.
4307		-	5 (b) This SECTION expires January 1, 2027.
4308		-	6 SECTION 85. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-5-58, as
4309		-	7 added by this act, applies only to retail transactions occurring after
4310		-	8 June 30, 2025.
4311		-	9 (b) Except as provided in subsection (c), a retail transaction is
4312		-	10 considered to have occurred after June 30, 2025, if the property
4313		-	11 whose transfer constitutes selling at retail is delivered to the
4314		-	12 purchaser or to the place of delivery designated by the purchaser
4315		-	13 after June 30, 2025.
4316		-	14 (c) Notwithstanding the delivery of the property constituting
4317		-	15 selling at retail after June 30, 2025, a transaction is considered to
4318		-	16 have occurred before July 1, 2025, to the extent that:
4319		-	17 (1) the agreement of the parties to the transaction is entered
4320		-	18 into before July 1, 2025; and
4321		-	19 (2) payment for the property furnished in the transaction is
4322		-	20 made before July 1, 2025.
4323		-	21 (d) This SECTION expires January 1, 2028.
4324		-	22 SECTION 86. IC 35-52-8-4.6 IS ADDED TO THE INDIANA
4325		-	23 CODE AS A NEW SECTION TO READ AS FOLLOWS
4326		-	24 [EFFECTIVE JULY 1, 2025]: Sec. 4.6. IC 8-2.1-22-42 defines a
4327		-	25 crime concerning intrastate motor carriers.
4328		-	26 SECTION 87. IC 35-52-8-4.8 IS ADDED TO THE INDIANA
4329		-	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
4330		-	28 [EFFECTIVE JULY 1, 2025]: Sec. 4.8. IC 8-2.1-22-45 defines a
4331		-	29 crime concerning motor carriers.
4332		-	30 SECTION 88. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-3-11, as
4333		-	31 added by this act, shall be effective for transactions occurring after
4334		-	32 June 30, 2025.
4335		-	33 (b) For purposes of IC 6-2.5-3-11, as added by this act, all
4336		-	34 transactions, except the furnishing of telephone or related services,
4337		-	35 cable television or similar video and related services, cable radio,
4338		-	36 satellite television, or satellite radio services and related
4339		-	37 commodities by retail merchants described in IC 6-2.5-4-5,
4340		-	38 IC 6-2.5-4-6, and IC 6-2.5-4-11, and computer software
4341		-	39 maintenance contracts described in IC 6-2.5-4-17, shall be
4342		-	40 considered as having occurred after June 30, 2025, to the extent
4343		-	41 that delivery of the services or items constituting selling at retail is
4344		-	42 made after that date to the purchaser or to the place of delivery
4345		-	ES 453—LS 7499/DI 120 100
4346		-	1 designated by the purchaser. However, a transaction shall be
4347		-	2 considered as having occurred before July 1, 2025, to the extent
4348		-	3 that the agreement of the parties to the transaction was entered
4349		-	4 into before July 1, 2025, and payment for the services or items
4350		-	5 furnished in the transaction is made before July 1, 2025,
4351		-	6 notwithstanding the delivery of the services or items after June 30,
4352		-	7 2025.
4353		-	8 (c) With respect to a transaction constituting the furnishing of
4354		-	9 telephone or related services, cable television or similar video and
4355		-	10 related services, cable radio, satellite television, or satellite radio
4356		-	11 services and related commodities, only transactions for which the
4357		-	12 charges are collected upon original statements and billings dated
4358		-	13 after July 31, 2025, shall be considered as having occurred after
4359		-	14 June 30, 2025.
4360		-	15 (d) With respect to a transaction constituting the entering into
4361		-	16 or renewal of a computer software maintenance contract, only
4362		-	17 contracts entered into by both parties after June 30, 2025, shall be
4363		-	18 considered as having occurred after June 30, 2025. For purposes
4364		-	19 of this subsection, the automatic or permissive renewal of a
4365		-	20 previously existing contract shall be treated as occurring on the
4366		-	21 date the renewal is effective.
4367		-	22 SECTION 89. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-3.5-27, as
4368		-	23 added by this act, shall be effective for transactions occurring after
4369		-	24 June 30, 2025.
4370		-	25 (b) For purposes of IC 6-2.5-3.5-27, as added by this act, all
4371		-	26 transactions, shall be considered as having occurred after June 30,
4372		-	27 2025, to the extent that delivery of the gasoline is made after that
4373		-	28 date to the purchaser or to the place of delivery designated by the
4374		-	29 purchaser. However, a transaction shall be considered as having
4375		-	30 occurred before July 1, 2025, to the extent that the agreement of
4376		-	31 the parties to the transaction was entered into before July 1, 2025,
4377		-	32 and payment for the gasoline furnished in the transaction is made
4378		-	33 before July 1, 2025, notwithstanding the delivery of the gasoline
4379		-	34 after June 30, 2025.
4380		-	35 SECTION 90. [EFFECTIVE JULY 1, 2025] (a) IC 6-3-4-4.1, as
4381		-	36 amended by this act, is effective for taxable years beginning after
4382		-	37 December 31, 2025.
4383		-	38 (b) IC 6-3-4-4.2, as added by this act, is effective for taxable
4384		-	39 years beginning after December 31, 2025.
4385		-	40 (c) IC 6-5.5-6-3, as amended by this act, is effective for taxable
4386		-	41 years beginning after December 31, 2025.
4387		-	42 (d) IC 6-5.5-7-1, as amended by this act, is effective for taxable
4388		-	ES 453—LS 7499/DI 120 101
4389		-	1 years beginning after December 31, 2025.
4390		-	2 SECTION 91. [EFFECTIVE JULY 1, 2025] (a) IC 6-8.1-19, as
4391		-	3 added by this act, is effective for transactions occurring after
4392		-	4 December 31, 2025.
4393		-	5 (b) All transactions shall be considered as having occurred after
4394		-	6 December 31, 2025, to the extent that delivery of the property or
4395		-	7 services constituting selling at retail is made after that date to the
4396		-	8 purchaser or to the place of delivery designated by the purchaser.
4397		-	9 However, a transaction shall be considered as having occurred
4398		-	10 before January 1, 2026, to the extent that the agreement of the
4399		-	11 parties to the transaction was entered into before January 1, 2026,
4400		-	12 and payment for the property or services furnished in the
4401		-	13 transaction is made before January 1, 2026, notwithstanding the
4402		-	14 delivery of the property or services after December 31, 2025.
4403		-	15 SECTION 92. [EFFECTIVE JANUARY 1, 2025
4404		-	16 (RETROACTIVE)] (a) IC 6-3.1-40-9.5, IC 6-3.1-40-11, and
4405		-	17 IC 6-3.1-40-12, all as added by this act, apply to taxable years
4406		-	18 beginning after December 31, 2024.
4407		-	19 (b) IC 6-3.1-40-5, IC 6-3.1-40-6, and IC 6-3.1-40-7, all as
4408		-	20 amended by this act, apply to taxable years beginning after
4409		-	21 December 31, 2024.
4410		-	22 (c) IC 6-3.1-40-3 and IC 6-3.1-40-9, both as repealed by this act,
4411		-	23 apply to taxable years beginning after December 31, 2024.
4412		-	24 (d) This SECTION expires July 1, 2028.
4413		-	25 SECTION 93. An emergency is declared for this act.
4414		-	ES 453—LS 7499/DI 120 102
	4439	+	5 (c) IC 6-3.1-40-3 and IC 6-3.1-40-9, both as repealed by this act,
	4440	+	6 apply to taxable years beginning after December 31, 2024.
	4441	+	7 (d) This SECTION expires July 1, 2028.
	4442	+	8 SECTION 96. An emergency is declared for this act.
	4443	+	ES 453—LS 7499/DI 120 103
4415	4444		COMMITTEE REPORT
4416	4445		Mr. President: The Senate Committee on Tax and Fiscal Policy, to
4417	4446		which was referred Senate Bill No. 453, has had the same under
4418	4447		consideration and begs leave to report the same back to the Senate with
4419	4448		the recommendation that said bill be AMENDED as follows:
4420	4449		Replace the effective dates in SECTIONS 57 through 63 with
4421	4450		"[EFFECTIVE JULY 1, 2024 (RETROACTIVE)]".
4422	4451		Page 51, line 29, after "collected" insert "by the department".
4423	4452		Page 51, line 32, after "fund" delete "." and insert "to the extent
4424	4453		designated in the aforementioned statutes.".
4425	4454		Page 51, line 36, delete "December 31, 2023." and insert "June 30,
4426	4455		2024.".
4427	4456		Page 52, delete lines 10 through 14.
4428	4457		Page 53, line 26, delete "December 31, 2023," and insert "June 30,
4429	4458		2024,".
4430	4459		Page 53, line 30, delete "fifty percent (50%)" and insert "one dollar
4431	4460		and eighty-eight cents ($1.88)".
4432	4461		Page 53, line 36, delete "December 31, 2023." and insert "June 30,
4433	4462		2024.".
4434	4463		Page 55, line 3, delete "December 31, 2023," and insert "June 30,
4435	4464		2024,".
4436	4465		Page 55, line 14, delete "December 31, 2023." and insert "June 30,
4437	4466		2024.".
4438	4467		Page 56, line 8, delete "January 1, 2024," and insert "July 1, 2024,".
4439	4468		Page 56, line 9, delete "December 31, 2023:" and insert "June 30,
4440	4469		2024:".
4441	4470		and when so amended that said bill do pass.
4442	4471		(Reference is to SB 453 as introduced.)
4443	4472		HOLDMAN, Chairperson
4444	4473		Committee Vote: Yeas 11, Nays 1.
4445	4474		_____
4446	4475		COMMITTEE REPORT
4447	4476		Mr. Speaker: Your Committee on Ways and Means, to which was
4448	4477		referred Senate Bill 453, has had the same under consideration and
4449	4478		begs leave to report the same back to the House with the
4450	4479		recommendation that said bill be amended as follows:
4451		-	ES 453—LS 7499/DI 120 ~~103~~
	4480	+	ES 453—LS 7499/DI 120 104
4452	4481		Page 2, between lines 40 and 41, begin a new paragraph and insert:
4453	4482		"SECTION 2. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
4454	4483		AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4455	4484		JANUARY 1, 2019 (RETROACTIVE)]:
4456	4485		Chapter 51. Deduction for Aircraft
4457	4486		Sec. 1. This chapter applies only to the following:
4458	4487		(1) Aircraft that:
4459	4488		(A) have a seating capacity of not more than ninety (90)
4460	4489		passengers;
4461	4490		(B) are used in the air transportation of passengers or
4462	4491		passengers and property; and
4463	4492		(C) are owned or operated by a person that is:
4464	4493		(i) an air carrier certificated under Federal Air
4465	4494		Regulation Part 121; or
4466	4495		(ii) a scheduled air taxi operator certified under Federal
4467	4496		Air Regulation Part 135.
4468	4497		(2) Aircraft that:
4469	4498		(A) are used to transport only property, regardless of
4470	4499		whether the aircraft is operated as a common carrier for
4471	4500		compensation; and
4472	4501		(B) are owned or operated by a person that is:
4473	4502		(i) an air carrier certificated under Federal Air
4474	4503		Regulation Part 121; or
4475	4504		(ii) a scheduled air taxi operator certified under Federal
4476	4505		Air Regulation Part 135.
4477	4506		Sec. 2. As used in this chapter, "abatement property" refers to
4478	4507		aircraft described in section 1 of this chapter.
4479	4508		Sec. 3. As used in this chapter, "aircraft" has the meaning set
4480	4509		forth in 49 U.S.C. 40102.
4481	4510		Sec. 4. As used in this chapter, "air transportation" means
4482	4511		transportation of passengers or property by aircraft as a common
4483	4512		carrier for compensation.
4484	4513		Sec. 5. As used in this chapter, "business entity" refers to a
4485	4514		corporation (as defined in IC 6-3-1-10) or partnership (as defined
4486	4515		in IC 6-3-1-19).
4487	4516		Sec. 6. As used in this chapter, "Indiana corporate
4488	4517		headquarters" means a physical presence in Indiana of a domestic
4489	4518		business entity that results in Indiana being the regular or
4490	4519		principal place of business of its chief executive, operating, and
4491	4520		financial officers.
4492	4521		Sec. 7. As used in this chapter, "subsidiary" means a business
4493	4522		entity in which another business entity with an Indiana corporate
4494		-	ES 453—LS 7499/DI 120 ~~104~~
	4523	+	ES 453—LS 7499/DI 120 105
4495	4524		headquarters has at least an eighty percent (80%) ownership
4496	4525		interest.
4497	4526		Sec. 8. As used in this chapter, "taxpayer" means a business
4498	4527		entity that:
4499	4528		(1) has an Indiana corporate headquarters; or
4500	4529		(2) is a subsidiary of a business entity with an Indiana
4501	4530		corporate headquarters;
4502	4531		and that is liable under IC 6-1.1-2-4, as applied under IC 6-1.1-3
4503	4532		or IC 6-1.1-8, for ad valorem property taxes on abatement
4504	4533		property.
4505	4534		Sec. 9. A taxpayer is entitled to a deduction from the assessed
4506	4535		value of abatement property in each year in which the abatement
4507	4536		property is subject to taxation for ad valorem property taxes.
4508	4537		Sec. 10. The amount of the deduction is equal to one hundred
4509	4538		percent (100%) of the assessed value of the abatement property.
4510	4539		Sec. 11. The deduction includes ad valorem property taxes
4511	4540		calculated using aircraft ground times.
4512	4541		Sec. 12. To qualify for the deduction, the taxpayer must claim
4513	4542		the deduction, in the manner prescribed by the department of local
4514	4543		government finance, on the taxpayer's personal property tax
4515	4544		return filed under IC 6-1.1-3 or IC 6-1.1-8 (or an amended return
4516	4545		filed within the time allowed under this article) for the abated
4517	4546		property to which the deduction applies.
4518	4547		Sec. 13. (a) Notwithstanding any other law, a taxpayer may file
4519	4548		an amended return claiming the deduction under this chapter for
4520	4549		taxable years 2019 through 2024 during which the chapter
4521	4550		previously providing the deduction under this chapter was
4522	4551		repealed.
4523	4552		(b) If a taxpayer files an amended return under this section, a
4524	4553		county auditor may carry a deduction to which the taxpayer is
4525	4554		entitled forward to the immediately succeeding year or years, as
4526	4555		applicable, and use the deduction against the taxpayer's property
4527	4556		taxes on personal property.
4528	4557		(c) The deduction is reduced each time the deduction amount is
4529	4558		applied to the taxpayer's property taxes on personal property in
4530	4559		succeeding years by the amount applied.".
4531	4560		Page 5, delete lines 28 through 42, begin a new paragraph and
4532	4561		insert:
4533	4562		"SECTION 5. IC 6-2.5-3.5-20, AS ADDED BY P.L.227-2013,
4534	4563		SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4535	4564		JANUARY 1, 2026]: Sec. 20. (a) Each refiner or terminal operator and
4536	4565		each qualified distributor that is required to remit gasoline use tax
4537		-	ES 453—LS 7499/DI 120 ~~105~~
	4566	+	ES 453—LS 7499/DI 120 106
4538	4567		under this chapter shall, remit the tax due to the department
4539	4568		semimonthly, through the department's online tax filing system,
4540	4569		according to the following schedule:
4541	4570		(1) On or before the tenth day of each month for gasoline sold
4542	4571		after the fifteenth day and before the end of the preceding month.
4543	4572		(2) On or before the twenty-fifth day of each month for gasoline
4544	4573		sold after the end of the preceding month and before the sixteenth
4545	4574		day of the month in which the gasoline was sold.
4546	4575		not later than twenty (20) days after the end of each month:
4547	4576		(1) file an electronic return for that month in a form
4548	4577		prescribed by the department through the department's
4549	4578		online tax filing system; and
4550	4579		(2) remit the tax due to the department for that month.
4551	4580		The department may require the reporting of any information
4552	4581		reasonably necessary to determine the amount of gasoline use tax
4553	4582		due under this chapter.
4554	4583		(b) Before the end of each month, each refiner or terminal operator
4555	4584		and each qualified distributor shall file an electronic report covering
4556	4585		the taxes owed and the gallons of gasoline sold or shipped during the
4557	4586		preceding month. The report must include the following:
4558	4587		(1) The number of gallons of gasoline sold or shipped during the
4559	4588		preceding month, identifying each purchaser or receiver as
4560	4589		required by the department.
4561	4590		(2) The amount of tax paid by each purchaser or recipient.
4562	4591		(3) Any other information reasonably required by the department,
4563	4592		including statistics to meet federal requirements.
4564	4593		(c) (b) The gasoline use tax collected under this chapter shall be
4565	4594		deposited in the same manner as state gross retail and use taxes are
4566	4595		required to be deposited under IC 6-2.5-10-1.".
4567	4596		Page 6, delete lines 1 through 17.
4568	4597		Page 6, between lines 37 and 38, begin a new paragraph and insert:
4569	4598		"SECTION 7. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
4570	4599		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4571	4600		1, 2025]: Sec. 58. (a) The following definitions apply throughout
4572	4601		this section:
4573	4602		(1) "Agricultural commodity" means:
4574	4603		(A) dairy products, pork products, beef products, poultry
4575	4604		products, and products from other livestock; and
4576	4605		(B) crops;
4577	4606		that are raised and harvested to provide food and food
4578	4607		ingredients. The term includes items described in section
4579	4608		20(c)(1), 20(c)(3), 20(c)(4), 20(c)(5), and 20(c)(6) of this
4580		-	ES 453—LS 7499/DI 120 ~~106~~
	4609	+	ES 453—LS 7499/DI 120 107
4581	4610		chapter.
4582	4611		(2) "Agricultural commodity trade association" means:
4583	4612		(A) an agricultural or horticultural organization exempt
4584	4613		from federal income taxation under Section 501(c)(5) of
4585	4614		the Internal Revenue Code; or
4586	4615		(B) an organization exempt from federal income taxation
4587	4616		under Section 501(c)(6) of the Internal Revenue Code as a
4588	4617		business league for agricultural commodity or
4589	4618		horticultural interests.
4590	4619		(b) Sales of agricultural commodities by an agricultural
4591	4620		commodity trade association are exempt from the state gross retail
4592	4621		tax if:
4593	4622		(1) the transaction is conducted at the state fair; and
4594	4623		(2) the transaction is conducted to make money to carry on
4595	4624		the agricultural commodity trade association's nonprofit
4596	4625		purpose.
4597	4626		(c) To obtain the exemption provided by this section, an
4598	4627		agricultural commodity trade association must:
4599	4628		(1) be registered as a retail merchant under IC 6-2.5-8-1; or
4600	4629		(2) establish that the agricultural commodity trade association
4601	4630		is not required to be registered as a retail merchant under this
4602	4631		article;
4603	4632		at the time of the transaction.".
4604	4633		Page 7, delete lines 34 through 42, begin a new paragraph and
4605	4634		insert:
4606	4635		"SECTION 10. IC 6-3-1-3.5, AS AMENDED BY P.L.9-2024,
4607	4636		SECTION 185, IS AMENDED TO READ AS FOLLOWS
4608	4637		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 3.5. When
4609	4638		used in this article, the term "adjusted gross income" shall mean the
4610	4639		following:
4611	4640		(a) In the case of all individuals, "adjusted gross income" (as
4612	4641		defined in Section 62 of the Internal Revenue Code), modified as
4613	4642		follows:
4614	4643		(1) Subtract income that is exempt from taxation under this article
4615	4644		by the Constitution and statutes of the United States.
4616	4645		(2) Except as provided in subsection (c), add an amount equal to
4617	4646		any deduction or deductions allowed or allowable pursuant to
4618	4647		Section 62 of the Internal Revenue Code for taxes based on or
4619	4648		measured by income and levied at the state level by any state of
4620	4649		the United States.
4621	4650		(3) Subtract one thousand dollars ($1,000), or in the case of a
4622	4651		joint return filed by a husband and wife, subtract for each spouse
4623		-	ES 453—LS 7499/DI 120 ~~107~~
	4652	+	ES 453—LS 7499/DI 120 108
4624	4653		one thousand dollars ($1,000).
4625	4654		(4) Subtract one thousand dollars ($1,000) for:
4626	4655		(A) each of the exemptions provided by Section 151(c) of the
4627	4656		Internal Revenue Code (as effective January 1, 2017);
4628	4657		(B) each additional amount allowable under Section 63(f) of
4629	4658		the Internal Revenue Code; and
4630	4659		(C) the spouse of the taxpayer if a separate return is made by
4631	4660		the taxpayer and if the spouse, for the calendar year in which
4632	4661		the taxable year of the taxpayer begins, has no gross income
4633	4662		and is not the dependent of another taxpayer.
4634	4663		(5) Subtract each of the following:
4635	4664		(A) One thousand five hundred dollars ($1,500) for each of the
4636	4665		exemptions allowed under Section 151(c)(1)(B) of the Internal
4637	4666		Revenue Code (as effective January 1, 2004), except that in
4638	4667		the first taxable year in which a particular exemption is
4639	4668		allowed under Section 151(c)(1)(B) of the Internal Revenue
4640	4669		Code (as effective January 1, 2004), subtract three thousand
4641	4670		dollars ($3,000) for that exemption.
4642	4671		(B) One thousand five hundred dollars ($1,500) for each
4643	4672		exemption allowed under Section 151(c) of the Internal
4644	4673		Revenue Code (as effective January 1, 2017) for an individual:
4645	4674		(i) who is less than nineteen (19) years of age or is a
4646	4675		full-time student who is less than twenty-four (24) years of
4647	4676		age;
4648	4677		(ii) for whom the taxpayer is the legal guardian; and
4649	4678		(iii) for whom the taxpayer does not claim an exemption
4650	4679		under clause (A).
4651	4680		(C) Five hundred dollars ($500) for each additional amount
4652	4681		allowable under Section 63(f)(1) of the Internal Revenue Code
4653	4682		if the federal adjusted gross income of the taxpayer, or the
4654	4683		taxpayer and the taxpayer's spouse in the case of a joint return,
4655	4684		is less than forty thousand dollars ($40,000). In the case of a
4656	4685		married individual filing a separate return, the qualifying
4657	4686		income amount in this clause is equal to twenty thousand
4658	4687		dollars ($20,000).
4659	4688		(D) Three thousand dollars ($3,000) for each exemption
4660	4689		allowed under Section 151(c) of the Internal Revenue Code (as
4661	4690		effective January 1, 2017) for an individual who is:
4662	4691		(i) an adopted child of the taxpayer; and
4663	4692		(ii) less than nineteen (19) years of age or is a full-time
4664	4693		student who is less than twenty-four (24) years of age.
4665	4694		This amount is in addition to any amount subtracted under
4666		-	ES 453—LS 7499/DI 120 ~~108~~
	4695	+	ES 453—LS 7499/DI 120 109
4667	4696		clause (A) or (B).
4668	4697		This amount is in addition to the amount subtracted under
4669	4698		subdivision (4).
4670	4699		(6) Subtract any amounts included in federal adjusted gross
4671	4700		income under Section 111 of the Internal Revenue Code as a
4672	4701		recovery of items previously deducted as an itemized deduction
4673	4702		from adjusted gross income.
4674	4703		(7) Subtract any amounts included in federal adjusted gross
4675	4704		income under the Internal Revenue Code which amounts were
4676	4705		received by the individual as supplemental railroad retirement
4677	4706		annuities under 45 U.S.C. 231 and which are not deductible under
4678	4707		subdivision (1).
4679	4708		(8) Subtract an amount equal to the amount of federal Social
4680	4709		Security and Railroad Retirement benefits included in a taxpayer's
4681	4710		federal gross income by Section 86 of the Internal Revenue Code.
4682	4711		(9) In the case of a nonresident taxpayer or a resident taxpayer
4683	4712		residing in Indiana for a period of less than the taxpayer's entire
4684	4713		taxable year, the total amount of the deductions allowed pursuant
4685	4714		to subdivisions (3), (4), and (5) shall be reduced to an amount
4686	4715		which bears the same ratio to the total as the taxpayer's income
4687	4716		taxable in Indiana bears to the taxpayer's total income.
4688	4717		(10) In the case of an individual who is a recipient of assistance
4689	4718		under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
4690	4719		subtract an amount equal to that portion of the individual's
4691	4720		adjusted gross income with respect to which the individual is not
4692	4721		allowed under federal law to retain an amount to pay state and
4693	4722		local income taxes.
4694	4723		(11) In the case of an eligible individual, subtract the amount of
4695	4724		a Holocaust victim's settlement payment included in the
4696	4725		individual's federal adjusted gross income.
4697	4726		(12) Subtract an amount equal to the portion of any premiums
4698	4727		paid during the taxable year by the taxpayer for a qualified long
4699	4728		term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
4700	4729		or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
4701	4730		file a joint income tax return or the taxpayer is otherwise entitled
4702	4731		to a deduction under this subdivision for the taxpayer's spouse, or
4703	4732		both.
4704	4733		(13) Subtract an amount equal to the lesser of:
4705	4734		(A) two thousand five hundred dollars ($2,500), or one
4706	4735		thousand two hundred fifty dollars ($1,250) in the case of a
4707	4736		married individual filing a separate return; or
4708	4737		(B) the amount of property taxes that are paid during the
4709		-	ES 453—LS 7499/DI 120 ~~109~~
	4738	+	ES 453—LS 7499/DI 120 110
4710	4739		taxable year in Indiana by the individual on the individual's
4711	4740		principal place of residence.
4712	4741		(14) Subtract an amount equal to the amount of a September 11
4713	4742		terrorist attack settlement payment included in the individual's
4714	4743		federal adjusted gross income.
4715	4744		(15) Add or subtract the amount necessary to make the adjusted
4716	4745		gross income of any taxpayer that owns property for which bonus
4717	4746		depreciation was allowed in the current taxable year or in an
4718	4747		earlier taxable year equal to the amount of adjusted gross income
4719	4748		that would have been computed had an election not been made
4720	4749		under Section 168(k) of the Internal Revenue Code to apply bonus
4721	4750		depreciation to the property in the year that it was placed in
4722	4751		service.
4723	4752		(16) Add an amount equal to any deduction allowed under
4724	4753		Section 172 of the Internal Revenue Code (concerning net
4725	4754		operating losses).
4726	4755		(17) Add or subtract the amount necessary to make the adjusted
4727	4756		gross income of any taxpayer that placed Section 179 property (as
4728	4757		defined in Section 179 of the Internal Revenue Code) in service
4729	4758		in the current taxable year or in an earlier taxable year equal to
4730	4759		the amount of adjusted gross income that would have been
4731	4760		computed had an election for federal income tax purposes not
4732	4761		been made for the year in which the property was placed in
4733	4762		service to take deductions under Section 179 of the Internal
4734	4763		Revenue Code in a total amount exceeding the sum of:
4735	4764		(A) twenty-five thousand dollars ($25,000) to the extent
4736	4765		deductions under Section 179 of the Internal Revenue Code
4737	4766		were not elected as provided in clause (B); and
4738	4767		(B) for taxable years beginning after December 31, 2017, the
4739	4768		deductions elected under Section 179 of the Internal Revenue
4740	4769		Code on property acquired in an exchange if:
4741	4770		(i) the exchange would have been eligible for
4742	4771		nonrecognition of gain or loss under Section 1031 of the
4743	4772		Internal Revenue Code in effect on January 1, 2017;
4744	4773		(ii) the exchange is not eligible for nonrecognition of gain or
4745	4774		loss under Section 1031 of the Internal Revenue Code; and
4746	4775		(iii) the taxpayer made an election to take deductions under
4747	4776		Section 179 of the Internal Revenue Code with regard to the
4748	4777		acquired property in the year that the property was placed
4749	4778		into service.
4750	4779		The amount of deductions allowable for an item of property
4751	4780		under this clause may not exceed the amount of adjusted gross
4752		-	ES 453—LS 7499/DI 120 ~~110~~
	4781	+	ES 453—LS 7499/DI 120 111
4753	4782		income realized on the property that would have been deferred
4754	4783		under the Internal Revenue Code in effect on January 1, 2017.
4755	4784		(18) Subtract an amount equal to the amount of the taxpayer's
4756	4785		qualified military income that was not excluded from the
4757	4786		taxpayer's gross income for federal income tax purposes under
4758	4787		Section 112 of the Internal Revenue Code.
4759	4788		(19) Subtract income that is:
4760	4789		(A) exempt from taxation under IC 6-3-2-21.7 (certain income
4761	4790		derived from patents); and
4762	4791		(B) included in the individual's federal adjusted gross income
4763	4792		under the Internal Revenue Code.
4764	4793		(20) Add an amount equal to any income not included in gross
4765	4794		income as a result of the deferral of income arising from business
4766	4795		indebtedness discharged in connection with the reacquisition after
4767	4796		December 31, 2008, and before January 1, 2011, of an applicable
4768	4797		debt instrument, as provided in Section 108(i) of the Internal
4769	4798		Revenue Code. Subtract the amount necessary from the adjusted
4770	4799		gross income of any taxpayer that added an amount to adjusted
4771	4800		gross income in a previous year to offset the amount included in
4772	4801		federal gross income as a result of the deferral of income arising
4773	4802		from business indebtedness discharged in connection with the
4774	4803		reacquisition after December 31, 2008, and before January 1,
4775	4804		2011, of an applicable debt instrument, as provided in Section
4776	4805		108(i) of the Internal Revenue Code.
4777	4806		(21) Add the amount excluded from federal gross income under
4778	4807		Section 103 of the Internal Revenue Code for interest received on
4779	4808		an obligation of a state other than Indiana, or a political
4780	4809		subdivision of such a state, that is acquired by the taxpayer after
4781	4810		December 31, 2011. For purposes of this subdivision:
4782	4811		(A) if the taxpayer receives interest from a pass through entity,
4783	4812		a regulated investment company, a hedge fund, or similar
4784	4813		arrangement, the taxpayer will be considered to have acquired
4785	4814		the obligation on the date the entity acquired the obligation;
4786	4815		(B) if ownership of the obligation occurs by means other than
4787	4816		a purchase, the date of acquisition of the obligation shall be
4788	4817		the date ownership of the obligation was transferred, except to
4789	4818		the extent provided in clause (A), and if a portion of the
4790	4819		obligation is acquired on multiple dates, the date of acquisition
4791	4820		shall be considered separately for each portion of the
4792	4821		obligation; and
4793	4822		(C) if ownership of the obligation occurred as the result of a
4794	4823		refinancing of another obligation, the acquisition date shall be
4795		-	ES 453—LS 7499/DI 120 ~~111~~
	4824	+	ES 453—LS 7499/DI 120 112
4796	4825		the date on which the obligation was refinanced.
4797	4826		(22) Subtract an amount as described in Section 1341(a)(2) of the
4798	4827		Internal Revenue Code to the extent, if any, that the amount was
4799	4828		previously included in the taxpayer's adjusted gross income for a
4800	4829		prior taxable year.
4801	4830		(23) For taxable years beginning after December 25, 2016, add an
4802	4831		amount equal to the deduction for deferred foreign income that
4803	4832		was claimed by the taxpayer for the taxable year under Section
4804	4833		965(c) of the Internal Revenue Code.
4805	4834		(24) Subtract any interest expense paid or accrued in the current
4806	4835		taxable year but not deducted as a result of the limitation imposed
4807	4836		under Section 163(j)(1) of the Internal Revenue Code. Add any
4808	4837		interest expense paid or accrued in a previous taxable year but
4809	4838		allowed as a deduction under Section 163 of the Internal Revenue
4810	4839		Code in the current taxable year. For purposes of this subdivision,
4811	4840		an interest expense is considered paid or accrued only in the first
4812	4841		taxable year the deduction would have been allowable under
4813	4842		Section 163 of the Internal Revenue Code if the limitation under
4814	4843		Section 163(j)(1) of the Internal Revenue Code did not exist.
4815	4844		(25) Subtract the amount that would have been excluded from
4816	4845		gross income but for the enactment of Section 118(b)(2) of the
4817	4846		Internal Revenue Code for taxable years ending after December
4818	4847		22, 2017.
4819	4848		(26) For taxable years beginning after December 31, 2019, and
4820	4849		before January 1, 2021, add an amount of the deduction claimed
4821	4850		under Section 62(a)(22) of the Internal Revenue Code.
4822	4851		(27) For taxable years beginning after December 31, 2019, for
4823	4852		payments made by an employer under an education assistance
4824	4853		program after March 27, 2020:
4825	4854		(A) add the amount of payments by an employer that are
4826	4855		excluded from the taxpayer's federal gross income under
4827	4856		Section 127(c)(1)(B) of the Internal Revenue Code; and
4828	4857		(B) deduct the interest allowable under Section 221 of the
4829	4858		Internal Revenue Code, if the disallowance under Section
4830	4859		221(e)(1) of the Internal Revenue Code did not apply to the
4831	4860		payments described in clause (A). For purposes of applying
4832	4861		Section 221(b) of the Internal Revenue Code to the amount
4833	4862		allowable under this clause, the amount under clause (A) shall
4834	4863		not be added to adjusted gross income.
4835	4864		(28) Add an amount equal to the remainder of:
4836	4865		(A) the amount allowable as a deduction under Section 274(n)
4837	4866		of the Internal Revenue Code; minus
4838		-	ES 453—LS 7499/DI 120 ~~112~~
	4867	+	ES 453—LS 7499/DI 120 113
4839	4868		(B) the amount otherwise allowable as a deduction under
4840	4869		Section 274(n) of the Internal Revenue Code, if Section
4841	4870		274(n)(2)(D) of the Internal Revenue Code was not in effect
4842	4871		for amounts paid or incurred after December 31, 2020.
4843	4872		(29) For taxable years beginning after December 31, 2017, and
4844	4873		before January 1, 2021, add an amount equal to the excess
4845	4874		business loss of the taxpayer as defined in Section 461(l)(3) of the
4846	4875		Internal Revenue Code. In addition:
4847	4876		(A) If a taxpayer has an excess business loss under this
4848	4877		subdivision and also has modifications under subdivisions (15)
4849	4878		and (17) for property placed in service during the taxable year,
4850	4879		the taxpayer shall treat a portion of the taxable year
4851	4880		modifications for that property as occurring in the taxable year
4852	4881		the property is placed in service and a portion of the
4853	4882		modifications as occurring in the immediately following
4854	4883		taxable year.
4855	4884		(B) The portion of the modifications under subdivisions (15)
4856	4885		and (17) for property placed in service during the taxable year
4857	4886		treated as occurring in the taxable year in which the property
4858	4887		is placed in service equals:
4859	4888		(i) the modification for the property otherwise determined
4860	4889		under this section; minus
4861	4890		(ii) the excess business loss disallowed under this
4862	4891		subdivision;
4863	4892		but not less than zero (0).
4864	4893		(C) The portion of the modifications under subdivisions (15)
4865	4894		and (17) for property placed in service during the taxable year
4866	4895		treated as occurring in the taxable year immediately following
4867	4896		the taxable year in which the property is placed in service
4868	4897		equals the modification for the property otherwise determined
4869	4898		under this section minus the amount in clause (B).
4870	4899		(D) Any reallocation of modifications between taxable years
4871	4900		under clauses (B) and (C) shall be first allocated to the
4872	4901		modification under subdivision (15), then to the modification
4873	4902		under subdivision (17).
4874	4903		(30) Add an amount equal to the amount excluded from federal
4875	4904		gross income under Section 108(f)(5) of the Internal Revenue
4876	4905		Code. For purposes of this subdivision:
4877	4906		(A) if an amount excluded under Section 108(f)(5) of the
4878	4907		Internal Revenue Code would be excludible under Section
4879	4908		108(a)(1)(B) of the Internal Revenue Code, the exclusion
4880	4909		under Section 108(a)(1)(B) of the Internal Revenue Code shall
4881		-	ES 453—LS 7499/DI 120 ~~113~~
	4910	+	ES 453—LS 7499/DI 120 114
4882	4911		take precedence; and
4883	4912		(B) if an amount would have been excludible under Section
4884	4913		108(f)(5) of the Internal Revenue Code as in effect on January
4885	4914		1, 2020, the amount is not required to be added back under this
4886	4915		subdivision.
4887	4916		(31) For taxable years ending after March 12, 2020, subtract an
4888	4917		amount equal to the deduction disallowed pursuant to:
4889	4918		(A) Section 2301(e) of the CARES Act (Public Law 116-136),
4890	4919		as modified by Sections 206 and 207 of the Taxpayer Certainty
4891	4920		and Disaster Relief Tax Act (Division EE of Public Law
4892	4921		116-260); and
4893	4922		(B) Section 3134(e) of the Internal Revenue Code.
4894	4923		(32) Subtract the amount of an ESA annual grant amount and, as
4895	4924		applicable, a CSA annual grant amount distributed to a taxpayer's
4896	4925		Indiana education scholarship account under IC 20-51.4 that is
4897	4926		used for an ESA or CSA qualified expense (as defined in
4898	4927		IC 20-51.4-2) or to an Indiana enrichment scholarship account
4899	4928		under IC 20-52 that is used for qualified expenses (as defined in
4900	4929		IC 20-52-2-6), to the extent the distribution used for the qualified
4901	4930		expense is included in the taxpayer's federal adjusted gross
4902	4931		income under the Internal Revenue Code.
4903	4932		(33) For taxable years beginning after December 31, 2019, and
4904	4933		before January 1, 2021, add an amount equal to the amount of
4905	4934		unemployment compensation excluded from federal gross income
4906	4935		under Section 85(c) of the Internal Revenue Code.
4907	4936		(34) For taxable years beginning after December 31, 2022,
4908	4937		subtract an amount equal to the deduction disallowed under
4909	4938		Section 280C(h) of the Internal Revenue Code.
4910	4939		(35) For taxable years beginning after December 31, 2021, add or
4911	4940		subtract amounts related to specified research or experimental
4912	4941		procedures as required under IC 6-3-2-29.
4913	4942		(36) Subtract any other amounts the taxpayer is entitled to deduct
4914	4943		under IC 6-3-2.
4915	4944		(37) Subtract the amount of a CSA annual grant amount
4916	4945		distributed to a taxpayer's career scholarship account under
4917	4946		IC 20-51.4-4.5 that is used for a CSA qualified expense (as
4918	4947		defined in IC 20-51.4-2-3.8), to the extent the distribution used
4919	4948		for the CSA qualified expense is included in the taxpayer's federal
4920	4949		adjusted gross income under the Internal Revenue Code.
4921	4950		(38) For a taxable year beginning after December 31, 2026,
4922	4951		subtract the amount of Indiana investment interest payments
4923	4952		that a taxpayer:
4924		-	ES 453—LS 7499/DI 120 ~~114~~
	4953	+	ES 453—LS 7499/DI 120 115
4925	4954		(A) claimed as a deduction for the taxable year under
4926	4955		Section 163 of the Internal Revenue Code in determining
4927	4956		the taxpayer's taxable income under Section 63 of the
4928	4957		Internal Revenue Code; and
4929	4958		(B) did not claim as a deduction for the taxable year in
4930	4959		determining the taxpayer's adjusted gross income under
4931	4960		Section 62 of the Internal Revenue Code;
4932	4961		for federal income tax purposes. For purposes of this
4933	4962		subdivision, a taxpayer is considered to claim a deduction for
4934	4963		Indiana investment interest payments only if the taxpayer
4935	4964		elects to itemize deductions under Section 63(e) of the Internal
4936	4965		Revenue Code.
4937	4966		(b) In the case of corporations, the same as "taxable income" (as
4938	4967		defined in Section 63 of the Internal Revenue Code) adjusted as
4939	4968		follows:
4940	4969		(1) Subtract income that is exempt from taxation under this article
4941	4970		by the Constitution and statutes of the United States.
4942	4971		(2) Add an amount equal to any deduction or deductions allowed
4943	4972		or allowable pursuant to Section 170 of the Internal Revenue
4944	4973		Code (concerning charitable contributions).
4945	4974		(3) Except as provided in subsection (c), add an amount equal to
4946	4975		any deduction or deductions allowed or allowable pursuant to
4947	4976		Section 63 of the Internal Revenue Code for taxes based on or
4948	4977		measured by income and levied at the state level by any state of
4949	4978		the United States.
4950	4979		(4) Subtract an amount equal to the amount included in the
4951	4980		corporation's taxable income under Section 78 of the Internal
4952	4981		Revenue Code (concerning foreign tax credits).
4953	4982		(5) Add or subtract the amount necessary to make the adjusted
4954	4983		gross income of any taxpayer that owns property for which bonus
4955	4984		depreciation was allowed in the current taxable year or in an
4956	4985		earlier taxable year equal to the amount of adjusted gross income
4957	4986		that would have been computed had an election not been made
4958	4987		under Section 168(k) of the Internal Revenue Code to apply bonus
4959	4988		depreciation to the property in the year that it was placed in
4960	4989		service.
4961	4990		(6) Add an amount equal to any deduction allowed under Section
4962	4991		172 of the Internal Revenue Code (concerning net operating
4963	4992		losses).
4964	4993		(7) Add or subtract the amount necessary to make the adjusted
4965	4994		gross income of any taxpayer that placed Section 179 property (as
4966	4995		defined in Section 179 of the Internal Revenue Code) in service
4967		-	ES 453—LS 7499/DI 120 ~~115~~
	4996	+	ES 453—LS 7499/DI 120 116
4968	4997		in the current taxable year or in an earlier taxable year equal to
4969	4998		the amount of adjusted gross income that would have been
4970	4999		computed had an election for federal income tax purposes not
4971	5000		been made for the year in which the property was placed in
4972	5001		service to take deductions under Section 179 of the Internal
4973	5002		Revenue Code in a total amount exceeding the sum of:
4974	5003		(A) twenty-five thousand dollars ($25,000) to the extent
4975	5004		deductions under Section 179 of the Internal Revenue Code
4976	5005		were not elected as provided in clause (B); and
4977	5006		(B) for taxable years beginning after December 31, 2017, the
4978	5007		deductions elected under Section 179 of the Internal Revenue
4979	5008		Code on property acquired in an exchange if:
4980	5009		(i) the exchange would have been eligible for
4981	5010		nonrecognition of gain or loss under Section 1031 of the
4982	5011		Internal Revenue Code in effect on January 1, 2017;
4983	5012		(ii) the exchange is not eligible for nonrecognition of gain or
4984	5013		loss under Section 1031 of the Internal Revenue Code; and
4985	5014		(iii) the taxpayer made an election to take deductions under
4986	5015		Section 179 of the Internal Revenue Code with regard to the
4987	5016		acquired property in the year that the property was placed
4988	5017		into service.
4989	5018		The amount of deductions allowable for an item of property
4990	5019		under this clause may not exceed the amount of adjusted gross
4991	5020		income realized on the property that would have been deferred
4992	5021		under the Internal Revenue Code in effect on January 1, 2017.
4993	5022		(8) Add to the extent required by IC 6-3-2-20:
4994	5023		(A) the amount of intangible expenses (as defined in
4995	5024		IC 6-3-2-20) for the taxable year that reduced the corporation's
4996	5025		taxable income (as defined in Section 63 of the Internal
4997	5026		Revenue Code) for federal income tax purposes; and
4998	5027		(B) any directly related interest expenses (as defined in
4999	5028		IC 6-3-2-20) that reduced the corporation's adjusted gross
5000	5029		income (determined without regard to this subdivision). For
5001	5030		purposes of this clause, any directly related interest expense
5002	5031		that constitutes business interest within the meaning of Section
5003	5032		163(j) of the Internal Revenue Code shall be considered to
5004	5033		have reduced the taxpayer's federal taxable income only in the
5005	5034		first taxable year in which the deduction otherwise would have
5006	5035		been allowable under Section 163 of the Internal Revenue
5007	5036		Code if the limitation under Section 163(j)(1) of the Internal
5008	5037		Revenue Code did not exist.
5009	5038		(9) Add an amount equal to any deduction for dividends paid (as
5010		-	ES 453—LS 7499/DI 120 ~~116~~
	5039	+	ES 453—LS 7499/DI 120 117
5011	5040		defined in Section 561 of the Internal Revenue Code) to
5012	5041		shareholders of a captive real estate investment trust (as defined
5013	5042		in section 34.5 of this chapter).
5014	5043		(10) Subtract income that is:
5015	5044		(A) exempt from taxation under IC 6-3-2-21.7 (certain income
5016	5045		derived from patents); and
5017	5046		(B) included in the corporation's taxable income under the
5018	5047		Internal Revenue Code.
5019	5048		(11) Add an amount equal to any income not included in gross
5020	5049		income as a result of the deferral of income arising from business
5021	5050		indebtedness discharged in connection with the reacquisition after
5022	5051		December 31, 2008, and before January 1, 2011, of an applicable
5023	5052		debt instrument, as provided in Section 108(i) of the Internal
5024	5053		Revenue Code. Subtract from the adjusted gross income of any
5025	5054		taxpayer that added an amount to adjusted gross income in a
5026	5055		previous year the amount necessary to offset the amount included
5027	5056		in federal gross income as a result of the deferral of income
5028	5057		arising from business indebtedness discharged in connection with
5029	5058		the reacquisition after December 31, 2008, and before January 1,
5030	5059		2011, of an applicable debt instrument, as provided in Section
5031	5060		108(i) of the Internal Revenue Code.
5032	5061		(12) Add the amount excluded from federal gross income under
5033	5062		Section 103 of the Internal Revenue Code for interest received on
5034	5063		an obligation of a state other than Indiana, or a political
5035	5064		subdivision of such a state, that is acquired by the taxpayer after
5036	5065		December 31, 2011. For purposes of this subdivision:
5037	5066		(A) if the taxpayer receives interest from a pass through entity,
5038	5067		a regulated investment company, a hedge fund, or similar
5039	5068		arrangement, the taxpayer will be considered to have acquired
5040	5069		the obligation on the date the entity acquired the obligation;
5041	5070		(B) if ownership of the obligation occurs by means other than
5042	5071		a purchase, the date of acquisition of the obligation shall be
5043	5072		the date ownership of the obligation was transferred, except to
5044	5073		the extent provided in clause (A), and if a portion of the
5045	5074		obligation is acquired on multiple dates, the date of acquisition
5046	5075		shall be considered separately for each portion of the
5047	5076		obligation; and
5048	5077		(C) if ownership of the obligation occurred as the result of a
5049	5078		refinancing of another obligation, the acquisition date shall be
5050	5079		the date on which the obligation was refinanced.
5051	5080		(13) For taxable years beginning after December 25, 2016:
5052	5081		(A) for a corporation other than a real estate investment trust,
5053		-	ES 453—LS 7499/DI 120 ~~117~~
	5082	+	ES 453—LS 7499/DI 120 118
5054	5083		add:
5055	5084		(i) an amount equal to the amount reported by the taxpayer
5056	5085		on IRC 965 Transition Tax Statement, line 1; or
5057	5086		(ii) if the taxpayer deducted an amount under Section 965(c)
5058	5087		of the Internal Revenue Code in determining the taxpayer's
5059	5088		taxable income for purposes of the federal income tax, the
5060	5089		amount deducted under Section 965(c) of the Internal
5061	5090		Revenue Code; and
5062	5091		(B) for a real estate investment trust, add an amount equal to
5063	5092		the deduction for deferred foreign income that was claimed by
5064	5093		the taxpayer for the taxable year under Section 965(c) of the
5065	5094		Internal Revenue Code, but only to the extent that the taxpayer
5066	5095		included income pursuant to Section 965 of the Internal
5067	5096		Revenue Code in its taxable income for federal income tax
5068	5097		purposes or is required to add back dividends paid under
5069	5098		subdivision (9).
5070	5099		(14) Add an amount equal to the deduction that was claimed by
5071	5100		the taxpayer for the taxable year under Section 250(a)(1)(B) of the
5072	5101		Internal Revenue Code (attributable to global intangible
5073	5102		low-taxed income). The taxpayer shall separately specify the
5074	5103		amount of the reduction under Section 250(a)(1)(B)(i) of the
5075	5104		Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
5076	5105		Internal Revenue Code.
5077	5106		(15) Subtract any interest expense paid or accrued in the current
5078	5107		taxable year but not deducted as a result of the limitation imposed
5079	5108		under Section 163(j)(1) of the Internal Revenue Code. Add any
5080	5109		interest expense paid or accrued in a previous taxable year but
5081	5110		allowed as a deduction under Section 163 of the Internal Revenue
5082	5111		Code in the current taxable year. For purposes of this subdivision,
5083	5112		an interest expense is considered paid or accrued only in the first
5084	5113		taxable year the deduction would have been allowable under
5085	5114		Section 163 of the Internal Revenue Code if the limitation under
5086	5115		Section 163(j)(1) of the Internal Revenue Code did not exist.
5087	5116		(16) Subtract the amount that would have been excluded from
5088	5117		gross income but for the enactment of Section 118(b)(2) of the
5089	5118		Internal Revenue Code for taxable years ending after December
5090	5119		22, 2017.
5091	5120		(17) Add an amount equal to the remainder of:
5092	5121		(A) the amount allowable as a deduction under Section 274(n)
5093	5122		of the Internal Revenue Code; minus
5094	5123		(B) the amount otherwise allowable as a deduction under
5095	5124		Section 274(n) of the Internal Revenue Code, if Section
5096		-	ES 453—LS 7499/DI 120 ~~118~~
	5125	+	ES 453—LS 7499/DI 120 119
5097	5126		274(n)(2)(D) of the Internal Revenue Code was not in effect
5098	5127		for amounts paid or incurred after December 31, 2020.
5099	5128		(18) For taxable years ending after March 12, 2020, subtract an
5100	5129		amount equal to the deduction disallowed pursuant to:
5101	5130		(A) Section 2301(e) of the CARES Act (Public Law 116-136),
5102	5131		as modified by Sections 206 and 207 of the Taxpayer Certainty
5103	5132		and Disaster Relief Tax Act (Division EE of Public Law
5104	5133		116-260); and
5105	5134		(B) Section 3134(e) of the Internal Revenue Code.
5106	5135		(19) For taxable years beginning after December 31, 2022,
5107	5136		subtract an amount equal to the deduction disallowed under
5108	5137		Section 280C(h) of the Internal Revenue Code.
5109	5138		(20) For taxable years beginning after December 31, 2021,
5110	5139		subtract the amount of any:
5111	5140		(A) federal, state, or local grant received by the taxpayer; and
5112	5141		(B) discharged federal, state, or local indebtedness incurred by
5113	5142		the taxpayer;
5114	5143		for purposes of providing or expanding access to broadband
5115	5144		service in this state.
5116	5145		(21) For taxable years beginning after December 31, 2021, add or
5117	5146		subtract amounts related to specified research or experimental
5118	5147		procedures as required under IC 6-3-2-29.
5119	5148		(22) Add or subtract any other amounts the taxpayer is:
5120	5149		(A) required to add or subtract; or
5121	5150		(B) entitled to deduct;
5122	5151		under IC 6-3-2.
5123	5152		(c) The following apply to taxable years beginning after December
5124	5153		31, 2018, for purposes of the add back of any deduction allowed on the
5125	5154		taxpayer's federal income tax return for wagering taxes, as provided in
5126	5155		subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
5127	5156		the taxpayer is a corporation:
5128	5157		(1) For taxable years beginning after December 31, 2018, and
5129	5158		before January 1, 2020, a taxpayer is required to add back under
5130	5159		this section eighty-seven and five-tenths percent (87.5%) of any
5131	5160		deduction allowed on the taxpayer's federal income tax return for
5132	5161		wagering taxes.
5133	5162		(2) For taxable years beginning after December 31, 2019, and
5134	5163		before January 1, 2021, a taxpayer is required to add back under
5135	5164		this section seventy-five percent (75%) of any deduction allowed
5136	5165		on the taxpayer's federal income tax return for wagering taxes.
5137	5166		(3) For taxable years beginning after December 31, 2020, and
5138	5167		before January 1, 2022, a taxpayer is required to add back under
5139		-	ES 453—LS 7499/DI 120 ~~119~~
	5168	+	ES 453—LS 7499/DI 120 120
5140	5169		this section sixty-two and five-tenths percent (62.5%) of any
5141	5170		deduction allowed on the taxpayer's federal income tax return for
5142	5171		wagering taxes.
5143	5172		(4) For taxable years beginning after December 31, 2021, and
5144	5173		before January 1, 2023, a taxpayer is required to add back under
5145	5174		this section fifty percent (50%) of any deduction allowed on the
5146	5175		taxpayer's federal income tax return for wagering taxes.
5147	5176		(5) For taxable years beginning after December 31, 2022, and
5148	5177		before January 1, 2024, a taxpayer is required to add back under
5149	5178		this section thirty-seven and five-tenths percent (37.5%) of any
5150	5179		deduction allowed on the taxpayer's federal income tax return for
5151	5180		wagering taxes.
5152	5181		(6) For taxable years beginning after December 31, 2023, and
5153	5182		before January 1, 2025, a taxpayer is required to add back under
5154	5183		this section twenty-five percent (25%) of any deduction allowed
5155	5184		on the taxpayer's federal income tax return for wagering taxes.
5156	5185		(7) For taxable years beginning after December 31, 2024, and
5157	5186		before January 1, 2026, a taxpayer is required to add back under
5158	5187		this section twelve and five-tenths percent (12.5%) of any
5159	5188		deduction allowed on the taxpayer's federal income tax return for
5160	5189		wagering taxes.
5161	5190		(8) For taxable years beginning after December 31, 2025, a
5162	5191		taxpayer is not required to add back under this section any amount
5163	5192		of a deduction allowed on the taxpayer's federal income tax return
5164	5193		for wagering taxes.
5165	5194		(d) In the case of life insurance companies (as defined in Section
5166	5195		816(a) of the Internal Revenue Code) that are organized under Indiana
5167	5196		law, the same as "life insurance company taxable income" (as defined
5168	5197		in Section 801 of the Internal Revenue Code), adjusted as follows:
5169	5198		(1) Subtract income that is exempt from taxation under this article
5170	5199		by the Constitution and statutes of the United States.
5171	5200		(2) Add an amount equal to any deduction allowed or allowable
5172	5201		under Section 170 of the Internal Revenue Code (concerning
5173	5202		charitable contributions).
5174	5203		(3) Add an amount equal to a deduction allowed or allowable
5175	5204		under Section 805 or Section 832(c) of the Internal Revenue Code
5176	5205		for taxes based on or measured by income and levied at the state
5177	5206		level by any state.
5178	5207		(4) Subtract an amount equal to the amount included in the
5179	5208		company's taxable income under Section 78 of the Internal
5180	5209		Revenue Code (concerning foreign tax credits).
5181	5210		(5) Add or subtract the amount necessary to make the adjusted
5182		-	ES 453—LS 7499/DI 120 ~~120~~
	5211	+	ES 453—LS 7499/DI 120 121
5183	5212		gross income of any taxpayer that owns property for which bonus
5184	5213		depreciation was allowed in the current taxable year or in an
5185	5214		earlier taxable year equal to the amount of adjusted gross income
5186	5215		that would have been computed had an election not been made
5187	5216		under Section 168(k) of the Internal Revenue Code to apply bonus
5188	5217		depreciation to the property in the year that it was placed in
5189	5218		service.
5190	5219		(6) Add an amount equal to any deduction allowed under Section
5191	5220		172 of the Internal Revenue Code (concerning net operating
5192	5221		losses).
5193	5222		(7) Add or subtract the amount necessary to make the adjusted
5194	5223		gross income of any taxpayer that placed Section 179 property (as
5195	5224		defined in Section 179 of the Internal Revenue Code) in service
5196	5225		in the current taxable year or in an earlier taxable year equal to
5197	5226		the amount of adjusted gross income that would have been
5198	5227		computed had an election for federal income tax purposes not
5199	5228		been made for the year in which the property was placed in
5200	5229		service to take deductions under Section 179 of the Internal
5201	5230		Revenue Code in a total amount exceeding the sum of:
5202	5231		(A) twenty-five thousand dollars ($25,000) to the extent
5203	5232		deductions under Section 179 of the Internal Revenue Code
5204	5233		were not elected as provided in clause (B); and
5205	5234		(B) for taxable years beginning after December 31, 2017, the
5206	5235		deductions elected under Section 179 of the Internal Revenue
5207	5236		Code on property acquired in an exchange if:
5208	5237		(i) the exchange would have been eligible for
5209	5238		nonrecognition of gain or loss under Section 1031 of the
5210	5239		Internal Revenue Code in effect on January 1, 2017;
5211	5240		(ii) the exchange is not eligible for nonrecognition of gain or
5212	5241		loss under Section 1031 of the Internal Revenue Code; and
5213	5242		(iii) the taxpayer made an election to take deductions under
5214	5243		Section 179 of the Internal Revenue Code with regard to the
5215	5244		acquired property in the year that the property was placed
5216	5245		into service.
5217	5246		The amount of deductions allowable for an item of property
5218	5247		under this clause may not exceed the amount of adjusted gross
5219	5248		income realized on the property that would have been deferred
5220	5249		under the Internal Revenue Code in effect on January 1, 2017.
5221	5250		(8) Subtract income that is:
5222	5251		(A) exempt from taxation under IC 6-3-2-21.7 (certain income
5223	5252		derived from patents); and
5224	5253		(B) included in the insurance company's taxable income under
5225		-	ES 453—LS 7499/DI 120 ~~121~~
	5254	+	ES 453—LS 7499/DI 120 122
5226	5255		the Internal Revenue Code.
5227	5256		(9) Add an amount equal to any income not included in gross
5228	5257		income as a result of the deferral of income arising from business
5229	5258		indebtedness discharged in connection with the reacquisition after
5230	5259		December 31, 2008, and before January 1, 2011, of an applicable
5231	5260		debt instrument, as provided in Section 108(i) of the Internal
5232	5261		Revenue Code. Subtract from the adjusted gross income of any
5233	5262		taxpayer that added an amount to adjusted gross income in a
5234	5263		previous year the amount necessary to offset the amount included
5235	5264		in federal gross income as a result of the deferral of income
5236	5265		arising from business indebtedness discharged in connection with
5237	5266		the reacquisition after December 31, 2008, and before January 1,
5238	5267		2011, of an applicable debt instrument, as provided in Section
5239	5268		108(i) of the Internal Revenue Code.
5240	5269		(10) Add an amount equal to any exempt insurance income under
5241	5270		Section 953(e) of the Internal Revenue Code that is active
5242	5271		financing income under Subpart F of Subtitle A, Chapter 1,
5243	5272		Subchapter N of the Internal Revenue Code.
5244	5273		(11) Add the amount excluded from federal gross income under
5245	5274		Section 103 of the Internal Revenue Code for interest received on
5246	5275		an obligation of a state other than Indiana, or a political
5247	5276		subdivision of such a state, that is acquired by the taxpayer after
5248	5277		December 31, 2011. For purposes of this subdivision:
5249	5278		(A) if the taxpayer receives interest from a pass through entity,
5250	5279		a regulated investment company, a hedge fund, or similar
5251	5280		arrangement, the taxpayer will be considered to have acquired
5252	5281		the obligation on the date the entity acquired the obligation;
5253	5282		(B) if ownership of the obligation occurs by means other than
5254	5283		a purchase, the date of acquisition of the obligation shall be
5255	5284		the date ownership of the obligation was transferred, except to
5256	5285		the extent provided in clause (A), and if a portion of the
5257	5286		obligation is acquired on multiple dates, the date of acquisition
5258	5287		shall be considered separately for each portion of the
5259	5288		obligation; and
5260	5289		(C) if ownership of the obligation occurred as the result of a
5261	5290		refinancing of another obligation, the acquisition date shall be
5262	5291		the date on which the obligation was refinanced.
5263	5292		(12) For taxable years beginning after December 25, 2016, add:
5264	5293		(A) an amount equal to the amount reported by the taxpayer on
5265	5294		IRC 965 Transition Tax Statement, line 1; or
5266	5295		(B) if the taxpayer deducted an amount under Section 965(c)
5267	5296		of the Internal Revenue Code in determining the taxpayer's
5268		-	ES 453—LS 7499/DI 120 ~~122~~
	5297	+	ES 453—LS 7499/DI 120 123
5269	5298		taxable income for purposes of the federal income tax, the
5270	5299		amount deducted under Section 965(c) of the Internal Revenue
5271	5300		Code.
5272	5301		(13) Add an amount equal to the deduction that was claimed by
5273	5302		the taxpayer for the taxable year under Section 250(a)(1)(B) of the
5274	5303		Internal Revenue Code (attributable to global intangible
5275	5304		low-taxed income). The taxpayer shall separately specify the
5276	5305		amount of the reduction under Section 250(a)(1)(B)(i) of the
5277	5306		Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
5278	5307		Internal Revenue Code.
5279	5308		(14) Subtract any interest expense paid or accrued in the current
5280	5309		taxable year but not deducted as a result of the limitation imposed
5281	5310		under Section 163(j)(1) of the Internal Revenue Code. Add any
5282	5311		interest expense paid or accrued in a previous taxable year but
5283	5312		allowed as a deduction under Section 163 of the Internal Revenue
5284	5313		Code in the current taxable year. For purposes of this subdivision,
5285	5314		an interest expense is considered paid or accrued only in the first
5286	5315		taxable year the deduction would have been allowable under
5287	5316		Section 163 of the Internal Revenue Code if the limitation under
5288	5317		Section 163(j)(1) of the Internal Revenue Code did not exist.
5289	5318		(15) Subtract the amount that would have been excluded from
5290	5319		gross income but for the enactment of Section 118(b)(2) of the
5291	5320		Internal Revenue Code for taxable years ending after December
5292	5321		22, 2017.
5293	5322		(16) Add an amount equal to the remainder of:
5294	5323		(A) the amount allowable as a deduction under Section 274(n)
5295	5324		of the Internal Revenue Code; minus
5296	5325		(B) the amount otherwise allowable as a deduction under
5297	5326		Section 274(n) of the Internal Revenue Code, if Section
5298	5327		274(n)(2)(D) of the Internal Revenue Code was not in effect
5299	5328		for amounts paid or incurred after December 31, 2020.
5300	5329		(17) For taxable years ending after March 12, 2020, subtract an
5301	5330		amount equal to the deduction disallowed pursuant to:
5302	5331		(A) Section 2301(e) of the CARES Act (Public Law 116-136),
5303	5332		as modified by Sections 206 and 207 of the Taxpayer Certainty
5304	5333		and Disaster Relief Tax Act (Division EE of Public Law
5305	5334		116-260); and
5306	5335		(B) Section 3134(e) of the Internal Revenue Code.
5307	5336		(18) For taxable years beginning after December 31, 2022,
5308	5337		subtract an amount equal to the deduction disallowed under
5309	5338		Section 280C(h) of the Internal Revenue Code.
5310	5339		(19) For taxable years beginning after December 31, 2021, add or
5311		-	ES 453—LS 7499/DI 120 ~~123~~
	5340	+	ES 453—LS 7499/DI 120 124
5312	5341		subtract amounts related to specified research or experimental
5313	5342		procedures as required under IC 6-3-2-29.
5314	5343		(20) Add or subtract any other amounts the taxpayer is:
5315	5344		(A) required to add or subtract; or
5316	5345		(B) entitled to deduct;
5317	5346		under IC 6-3-2.
5318	5347		(e) In the case of insurance companies subject to tax under Section
5319	5348		831 of the Internal Revenue Code and organized under Indiana law, the
5320	5349		same as "taxable income" (as defined in Section 832 of the Internal
5321	5350		Revenue Code), adjusted as follows:
5322	5351		(1) Subtract income that is exempt from taxation under this article
5323	5352		by the Constitution and statutes of the United States.
5324	5353		(2) Add an amount equal to any deduction allowed or allowable
5325	5354		under Section 170 of the Internal Revenue Code (concerning
5326	5355		charitable contributions).
5327	5356		(3) Add an amount equal to a deduction allowed or allowable
5328	5357		under Section 805 or Section 832(c) of the Internal Revenue Code
5329	5358		for taxes based on or measured by income and levied at the state
5330	5359		level by any state.
5331	5360		(4) Subtract an amount equal to the amount included in the
5332	5361		company's taxable income under Section 78 of the Internal
5333	5362		Revenue Code (concerning foreign tax credits).
5334	5363		(5) Add or subtract the amount necessary to make the adjusted
5335	5364		gross income of any taxpayer that owns property for which bonus
5336	5365		depreciation was allowed in the current taxable year or in an
5337	5366		earlier taxable year equal to the amount of adjusted gross income
5338	5367		that would have been computed had an election not been made
5339	5368		under Section 168(k) of the Internal Revenue Code to apply bonus
5340	5369		depreciation to the property in the year that it was placed in
5341	5370		service.
5342	5371		(6) Add an amount equal to any deduction allowed under Section
5343	5372		172 of the Internal Revenue Code (concerning net operating
5344	5373		losses).
5345	5374		(7) Add or subtract the amount necessary to make the adjusted
5346	5375		gross income of any taxpayer that placed Section 179 property (as
5347	5376		defined in Section 179 of the Internal Revenue Code) in service
5348	5377		in the current taxable year or in an earlier taxable year equal to
5349	5378		the amount of adjusted gross income that would have been
5350	5379		computed had an election for federal income tax purposes not
5351	5380		been made for the year in which the property was placed in
5352	5381		service to take deductions under Section 179 of the Internal
5353	5382		Revenue Code in a total amount exceeding the sum of:
5354		-	ES 453—LS 7499/DI 120 ~~124~~
	5383	+	ES 453—LS 7499/DI 120 125
5355	5384		(A) twenty-five thousand dollars ($25,000) to the extent
5356	5385		deductions under Section 179 of the Internal Revenue Code
5357	5386		were not elected as provided in clause (B); and
5358	5387		(B) for taxable years beginning after December 31, 2017, the
5359	5388		deductions elected under Section 179 of the Internal Revenue
5360	5389		Code on property acquired in an exchange if:
5361	5390		(i) the exchange would have been eligible for
5362	5391		nonrecognition of gain or loss under Section 1031 of the
5363	5392		Internal Revenue Code in effect on January 1, 2017;
5364	5393		(ii) the exchange is not eligible for nonrecognition of gain or
5365	5394		loss under Section 1031 of the Internal Revenue Code; and
5366	5395		(iii) the taxpayer made an election to take deductions under
5367	5396		Section 179 of the Internal Revenue Code with regard to the
5368	5397		acquired property in the year that the property was placed
5369	5398		into service.
5370	5399		The amount of deductions allowable for an item of property
5371	5400		under this clause may not exceed the amount of adjusted gross
5372	5401		income realized on the property that would have been deferred
5373	5402		under the Internal Revenue Code in effect on January 1, 2017.
5374	5403		(8) Subtract income that is:
5375	5404		(A) exempt from taxation under IC 6-3-2-21.7 (certain income
5376	5405		derived from patents); and
5377	5406		(B) included in the insurance company's taxable income under
5378	5407		the Internal Revenue Code.
5379	5408		(9) Add an amount equal to any income not included in gross
5380	5409		income as a result of the deferral of income arising from business
5381	5410		indebtedness discharged in connection with the reacquisition after
5382	5411		December 31, 2008, and before January 1, 2011, of an applicable
5383	5412		debt instrument, as provided in Section 108(i) of the Internal
5384	5413		Revenue Code. Subtract from the adjusted gross income of any
5385	5414		taxpayer that added an amount to adjusted gross income in a
5386	5415		previous year the amount necessary to offset the amount included
5387	5416		in federal gross income as a result of the deferral of income
5388	5417		arising from business indebtedness discharged in connection with
5389	5418		the reacquisition after December 31, 2008, and before January 1,
5390	5419		2011, of an applicable debt instrument, as provided in Section
5391	5420		108(i) of the Internal Revenue Code.
5392	5421		(10) Add an amount equal to any exempt insurance income under
5393	5422		Section 953(e) of the Internal Revenue Code that is active
5394	5423		financing income under Subpart F of Subtitle A, Chapter 1,
5395	5424		Subchapter N of the Internal Revenue Code.
5396	5425		(11) Add the amount excluded from federal gross income under
5397		-	ES 453—LS 7499/DI 120 ~~125~~
	5426	+	ES 453—LS 7499/DI 120 126
5398	5427		Section 103 of the Internal Revenue Code for interest received on
5399	5428		an obligation of a state other than Indiana, or a political
5400	5429		subdivision of such a state, that is acquired by the taxpayer after
5401	5430		December 31, 2011. For purposes of this subdivision:
5402	5431		(A) if the taxpayer receives interest from a pass through entity,
5403	5432		a regulated investment company, a hedge fund, or similar
5404	5433		arrangement, the taxpayer will be considered to have acquired
5405	5434		the obligation on the date the entity acquired the obligation;
5406	5435		(B) if ownership of the obligation occurs by means other than
5407	5436		a purchase, the date of acquisition of the obligation shall be
5408	5437		the date ownership of the obligation was transferred, except to
5409	5438		the extent provided in clause (A), and if a portion of the
5410	5439		obligation is acquired on multiple dates, the date of acquisition
5411	5440		shall be considered separately for each portion of the
5412	5441		obligation; and
5413	5442		(C) if ownership of the obligation occurred as the result of a
5414	5443		refinancing of another obligation, the acquisition date shall be
5415	5444		the date on which the obligation was refinanced.
5416	5445		(12) For taxable years beginning after December 25, 2016, add:
5417	5446		(A) an amount equal to the amount reported by the taxpayer on
5418	5447		IRC 965 Transition Tax Statement, line 1; or
5419	5448		(B) if the taxpayer deducted an amount under Section 965(c)
5420	5449		of the Internal Revenue Code in determining the taxpayer's
5421	5450		taxable income for purposes of the federal income tax, the
5422	5451		amount deducted under Section 965(c) of the Internal Revenue
5423	5452		Code.
5424	5453		(13) Add an amount equal to the deduction that was claimed by
5425	5454		the taxpayer for the taxable year under Section 250(a)(1)(B) of the
5426	5455		Internal Revenue Code (attributable to global intangible
5427	5456		low-taxed income). The taxpayer shall separately specify the
5428	5457		amount of the reduction under Section 250(a)(1)(B)(i) of the
5429	5458		Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
5430	5459		Internal Revenue Code.
5431	5460		(14) Subtract any interest expense paid or accrued in the current
5432	5461		taxable year but not deducted as a result of the limitation imposed
5433	5462		under Section 163(j)(1) of the Internal Revenue Code. Add any
5434	5463		interest expense paid or accrued in a previous taxable year but
5435	5464		allowed as a deduction under Section 163 of the Internal Revenue
5436	5465		Code in the current taxable year. For purposes of this subdivision,
5437	5466		an interest expense is considered paid or accrued only in the first
5438	5467		taxable year the deduction would have been allowable under
5439	5468		Section 163 of the Internal Revenue Code if the limitation under
5440		-	ES 453—LS 7499/DI 120 ~~126~~
	5469	+	ES 453—LS 7499/DI 120 127
5441	5470		Section 163(j)(1) of the Internal Revenue Code did not exist.
5442	5471		(15) Subtract the amount that would have been excluded from
5443	5472		gross income but for the enactment of Section 118(b)(2) of the
5444	5473		Internal Revenue Code for taxable years ending after December
5445	5474		22, 2017.
5446	5475		(16) Add an amount equal to the remainder of:
5447	5476		(A) the amount allowable as a deduction under Section 274(n)
5448	5477		of the Internal Revenue Code; minus
5449	5478		(B) the amount otherwise allowable as a deduction under
5450	5479		Section 274(n) of the Internal Revenue Code, if Section
5451	5480		274(n)(2)(D) of the Internal Revenue Code was not in effect
5452	5481		for amounts paid or incurred after December 31, 2020.
5453	5482		(17) For taxable years ending after March 12, 2020, subtract an
5454	5483		amount equal to the deduction disallowed pursuant to:
5455	5484		(A) Section 2301(e) of the CARES Act (Public Law 116-136),
5456	5485		as modified by Sections 206 and 207 of the Taxpayer Certainty
5457	5486		and Disaster Relief Tax Act (Division EE of Public Law
5458	5487		116-260); and
5459	5488		(B) Section 3134(e) of the Internal Revenue Code.
5460	5489		(18) For taxable years beginning after December 31, 2022,
5461	5490		subtract an amount equal to the deduction disallowed under
5462	5491		Section 280C(h) of the Internal Revenue Code.
5463	5492		(19) For taxable years beginning after December 31, 2021, add or
5464	5493		subtract amounts related to specified research or experimental
5465	5494		procedures as required under IC 6-3-2-29.
5466	5495		(20) Add or subtract any other amounts the taxpayer is:
5467	5496		(A) required to add or subtract; or
5468	5497		(B) entitled to deduct;
5469	5498		under IC 6-3-2.
5470	5499		(f) In the case of trusts and estates, "taxable income" (as defined for
5471	5500		trusts and estates in Section 641(b) of the Internal Revenue Code)
5472	5501		adjusted as follows:
5473	5502		(1) Subtract income that is exempt from taxation under this article
5474	5503		by the Constitution and statutes of the United States.
5475	5504		(2) Subtract an amount equal to the amount of a September 11
5476	5505		terrorist attack settlement payment included in the federal
5477	5506		adjusted gross income of the estate of a victim of the September
5478	5507		11 terrorist attack or a trust to the extent the trust benefits a victim
5479	5508		of the September 11 terrorist attack.
5480	5509		(3) Add or subtract the amount necessary to make the adjusted
5481	5510		gross income of any taxpayer that owns property for which bonus
5482	5511		depreciation was allowed in the current taxable year or in an
5483		-	ES 453—LS 7499/DI 120 ~~127~~
	5512	+	ES 453—LS 7499/DI 120 128
5484	5513		earlier taxable year equal to the amount of adjusted gross income
5485	5514		that would have been computed had an election not been made
5486	5515		under Section 168(k) of the Internal Revenue Code to apply bonus
5487	5516		depreciation to the property in the year that it was placed in
5488	5517		service.
5489	5518		(4) Add an amount equal to any deduction allowed under Section
5490	5519		172 of the Internal Revenue Code (concerning net operating
5491	5520		losses).
5492	5521		(5) Add or subtract the amount necessary to make the adjusted
5493	5522		gross income of any taxpayer that placed Section 179 property (as
5494	5523		defined in Section 179 of the Internal Revenue Code) in service
5495	5524		in the current taxable year or in an earlier taxable year equal to
5496	5525		the amount of adjusted gross income that would have been
5497	5526		computed had an election for federal income tax purposes not
5498	5527		been made for the year in which the property was placed in
5499	5528		service to take deductions under Section 179 of the Internal
5500	5529		Revenue Code in a total amount exceeding the sum of:
5501	5530		(A) twenty-five thousand dollars ($25,000) to the extent
5502	5531		deductions under Section 179 of the Internal Revenue Code
5503	5532		were not elected as provided in clause (B); and
5504	5533		(B) for taxable years beginning after December 31, 2017, the
5505	5534		deductions elected under Section 179 of the Internal Revenue
5506	5535		Code on property acquired in an exchange if:
5507	5536		(i) the exchange would have been eligible for
5508	5537		nonrecognition of gain or loss under Section 1031 of the
5509	5538		Internal Revenue Code in effect on January 1, 2017;
5510	5539		(ii) the exchange is not eligible for nonrecognition of gain or
5511	5540		loss under Section 1031 of the Internal Revenue Code; and
5512	5541		(iii) the taxpayer made an election to take deductions under
5513	5542		Section 179 of the Internal Revenue Code with regard to the
5514	5543		acquired property in the year that the property was placed
5515	5544		into service.
5516	5545		The amount of deductions allowable for an item of property
5517	5546		under this clause may not exceed the amount of adjusted gross
5518	5547		income realized on the property that would have been deferred
5519	5548		under the Internal Revenue Code in effect on January 1, 2017.
5520	5549		(6) Subtract income that is:
5521	5550		(A) exempt from taxation under IC 6-3-2-21.7 (certain income
5522	5551		derived from patents); and
5523	5552		(B) included in the taxpayer's taxable income under the
5524	5553		Internal Revenue Code.
5525	5554		(7) Add an amount equal to any income not included in gross
5526		-	ES 453—LS 7499/DI 120 ~~128~~
	5555	+	ES 453—LS 7499/DI 120 129
5527	5556		income as a result of the deferral of income arising from business
5528	5557		indebtedness discharged in connection with the reacquisition after
5529	5558		December 31, 2008, and before January 1, 2011, of an applicable
5530	5559		debt instrument, as provided in Section 108(i) of the Internal
5531	5560		Revenue Code. Subtract from the adjusted gross income of any
5532	5561		taxpayer that added an amount to adjusted gross income in a
5533	5562		previous year the amount necessary to offset the amount included
5534	5563		in federal gross income as a result of the deferral of income
5535	5564		arising from business indebtedness discharged in connection with
5536	5565		the reacquisition after December 31, 2008, and before January 1,
5537	5566		2011, of an applicable debt instrument, as provided in Section
5538	5567		108(i) of the Internal Revenue Code.
5539	5568		(8) Add the amount excluded from federal gross income under
5540	5569		Section 103 of the Internal Revenue Code for interest received on
5541	5570		an obligation of a state other than Indiana, or a political
5542	5571		subdivision of such a state, that is acquired by the taxpayer after
5543	5572		December 31, 2011. For purposes of this subdivision:
5544	5573		(A) if the taxpayer receives interest from a pass through entity,
5545	5574		a regulated investment company, a hedge fund, or similar
5546	5575		arrangement, the taxpayer will be considered to have acquired
5547	5576		the obligation on the date the entity acquired the obligation;
5548	5577		(B) if ownership of the obligation occurs by means other than
5549	5578		a purchase, the date of acquisition of the obligation shall be
5550	5579		the date ownership of the obligation was transferred, except to
5551	5580		the extent provided in clause (A), and if a portion of the
5552	5581		obligation is acquired on multiple dates, the date of acquisition
5553	5582		shall be considered separately for each portion of the
5554	5583		obligation; and
5555	5584		(C) if ownership of the obligation occurred as the result of a
5556	5585		refinancing of another obligation, the acquisition date shall be
5557	5586		the date on which the obligation was refinanced.
5558	5587		(9) For taxable years beginning after December 25, 2016, add an
5559	5588		amount equal to:
5560	5589		(A) the amount reported by the taxpayer on IRC 965
5561	5590		Transition Tax Statement, line 1;
5562	5591		(B) if the taxpayer deducted an amount under Section 965(c)
5563	5592		of the Internal Revenue Code in determining the taxpayer's
5564	5593		taxable income for purposes of the federal income tax, the
5565	5594		amount deducted under Section 965(c) of the Internal Revenue
5566	5595		Code; and
5567	5596		(C) with regard to any amounts of income under Section 965
5568	5597		of the Internal Revenue Code distributed by the taxpayer, the
5569		-	ES 453—LS 7499/DI 120 ~~129~~
	5598	+	ES 453—LS 7499/DI 120 130
5570	5599		deduction under Section 965(c) of the Internal Revenue Code
5571	5600		attributable to such distributed amounts and not reported to the
5572	5601		beneficiary.
5573	5602		For purposes of this article, the amount required to be added back
5574	5603		under clause (B) is not considered to be distributed or
5575	5604		distributable to a beneficiary of the estate or trust for purposes of
5576	5605		Sections 651 and 661 of the Internal Revenue Code.
5577	5606		(10) Subtract any interest expense paid or accrued in the current
5578	5607		taxable year but not deducted as a result of the limitation imposed
5579	5608		under Section 163(j)(1) of the Internal Revenue Code. Add any
5580	5609		interest expense paid or accrued in a previous taxable year but
5581	5610		allowed as a deduction under Section 163 of the Internal Revenue
5582	5611		Code in the current taxable year. For purposes of this subdivision,
5583	5612		an interest expense is considered paid or accrued only in the first
5584	5613		taxable year the deduction would have been allowable under
5585	5614		Section 163 of the Internal Revenue Code if the limitation under
5586	5615		Section 163(j)(1) of the Internal Revenue Code did not exist.
5587	5616		(11) Add an amount equal to the deduction for qualified business
5588	5617		income that was claimed by the taxpayer for the taxable year
5589	5618		under Section 199A of the Internal Revenue Code.
5590	5619		(12) Subtract the amount that would have been excluded from
5591	5620		gross income but for the enactment of Section 118(b)(2) of the
5592	5621		Internal Revenue Code for taxable years ending after December
5593	5622		22, 2017.
5594	5623		(13) Add an amount equal to the remainder of:
5595	5624		(A) the amount allowable as a deduction under Section 274(n)
5596	5625		of the Internal Revenue Code; minus
5597	5626		(B) the amount otherwise allowable as a deduction under
5598	5627		Section 274(n) of the Internal Revenue Code, if Section
5599	5628		274(n)(2)(D) of the Internal Revenue Code was not in effect
5600	5629		for amounts paid or incurred after December 31, 2020.
5601	5630		(14) For taxable years beginning after December 31, 2017, and
5602	5631		before January 1, 2021, add an amount equal to the excess
5603	5632		business loss of the taxpayer as defined in Section 461(l)(3) of the
5604	5633		Internal Revenue Code. In addition:
5605	5634		(A) If a taxpayer has an excess business loss under this
5606	5635		subdivision and also has modifications under subdivisions (3)
5607	5636		and (5) for property placed in service during the taxable year,
5608	5637		the taxpayer shall treat a portion of the taxable year
5609	5638		modifications for that property as occurring in the taxable year
5610	5639		the property is placed in service and a portion of the
5611	5640		modifications as occurring in the immediately following
5612		-	ES 453—LS 7499/DI 120 ~~130~~
	5641	+	ES 453—LS 7499/DI 120 131
5613	5642		taxable year.
5614	5643		(B) The portion of the modifications under subdivisions (3)
5615	5644		and (5) for property placed in service during the taxable year
5616	5645		treated as occurring in the taxable year in which the property
5617	5646		is placed in service equals:
5618	5647		(i) the modification for the property otherwise determined
5619	5648		under this section; minus
5620	5649		(ii) the excess business loss disallowed under this
5621	5650		subdivision;
5622	5651		but not less than zero (0).
5623	5652		(C) The portion of the modifications under subdivisions (3)
5624	5653		and (5) for property placed in service during the taxable year
5625	5654		treated as occurring in the taxable year immediately following
5626	5655		the taxable year in which the property is placed in service
5627	5656		equals the modification for the property otherwise determined
5628	5657		under this section minus the amount in clause (B).
5629	5658		(D) Any reallocation of modifications between taxable years
5630	5659		under clauses (B) and (C) shall be first allocated to the
5631	5660		modification under subdivision (3), then to the modification
5632	5661		under subdivision (5).
5633	5662		(15) For taxable years ending after March 12, 2020, subtract an
5634	5663		amount equal to the deduction disallowed pursuant to:
5635	5664		(A) Section 2301(e) of the CARES Act (Public Law 116-136),
5636	5665		as modified by Sections 206 and 207 of the Taxpayer Certainty
5637	5666		and Disaster Relief Tax Act (Division EE of Public Law
5638	5667		116-260); and
5639	5668		(B) Section 3134(e) of the Internal Revenue Code.
5640	5669		(16) For taxable years beginning after December 31, 2022,
5641	5670		subtract an amount equal to the deduction disallowed under
5642	5671		Section 280C(h) of the Internal Revenue Code.
5643	5672		(17) Except as provided in subsection (c), for taxable years
5644	5673		beginning after December 31, 2022, add an amount equal to any
5645	5674		deduction or deductions allowed or allowable in determining
5646	5675		taxable income under Section 641(b) of the Internal Revenue
5647	5676		Code for taxes based on or measured by income and levied at the
5648	5677		state level by any state of the United States.
5649	5678		(18) For taxable years beginning after December 31, 2021, add or
5650	5679		subtract amounts related to specified research or experimental
5651	5680		procedures as required under IC 6-3-2-29.
5652	5681		(19) Add or subtract any other amounts the taxpayer is:
5653	5682		(A) required to add or subtract; or
5654	5683		(B) entitled to deduct;
5655		-	ES 453—LS 7499/DI 120 ~~131~~
	5684	+	ES 453—LS 7499/DI 120 132
5656	5685		under IC 6-3-2.
5657	5686		(g) For purposes of IC 6-3-2.1, IC 6-3-4-12, IC 6-3-4-13, and
5658	5687		IC 6-3-4-15 for taxable years beginning after December 31, 2022,
5659	5688		"adjusted gross income" of a pass through entity means the items of
5660	5689		ordinary income and loss in the case of a partnership or a corporation
5661	5690		described in IC 6-3-2-2.8(2), or distributions subject to tax for state and
5662	5691		federal income tax for beneficiaries in the case of a trust or estate,
5663	5692		whichever is applicable, for the taxable year modified as follows:
5664	5693		(1) Add the separately stated items of income and gains, or the
5665	5694		equivalent items that must be considered separately by a
5666	5695		beneficiary, as determined for federal purposes, attributed to the
5667	5696		partners, shareholders, or beneficiaries of the pass through entity,
5668	5697		determined without regard to whether the owner is permitted to
5669	5698		exclude all or part of the income or gain or deduct any amount
5670	5699		against the income or gain.
5671	5700		(2) Subtract the separately stated items of deductions or losses or
5672	5701		items that must be considered separately by beneficiaries, as
5673	5702		determined for federal purposes, attributed to partners,
5674	5703		shareholders, or beneficiaries of the pass through entity and that
5675	5704		are deductible by an individual in determining adjusted gross
5676	5705		income as defined under Section 62 of the Internal Revenue
5677	5706		Code:
5678	5707		(A) limited as if the partners, shareholders, and beneficiaries
5679	5708		deducted the maximum allowable loss or deduction allowable
5680	5709		for the taxable year prior to any amount deductible from the
5681	5710		pass through entity; but
5682	5711		(B) not considering any disallowance of deductions resulting
5683	5712		from federal basis limitations for the partner, shareholder, or
5684	5713		beneficiary.
5685	5714		(3) Add or subtract any modifications to adjusted gross income
5686	5715		that would be required both for individuals under subsection (a)
5687	5716		and corporations under subsection (b) to the extent otherwise
5688	5717		provided in those subsections, including amounts that are
5689	5718		allowable for which such modifications are necessary to account
5690	5719		for separately stated items in subdivision (1) or (2).
5691	5720		(h) Subsections (a)(36), (b)(22), (d)(20), (e)(20), or (f)(19) may not
5692	5721		be construed to require an add back or allow a deduction or exemption
5693	5722		more than once for a particular add back, deduction, or exemption.
5694	5723		(i) For taxable years beginning after December 25, 2016, if:
5695	5724		(1) a taxpayer is a shareholder, either directly or indirectly, in a
5696	5725		corporation that is an E&P deficit foreign corporation as defined
5697	5726		in Section 965(b)(3)(B) of the Internal Revenue Code, and the
5698		-	ES 453—LS 7499/DI 120 ~~132~~
	5727	+	ES 453—LS 7499/DI 120 133
5699	5728		earnings and profit deficit, or a portion of the earnings and profit
5700	5729		deficit, of the E&P deficit foreign corporation is permitted to
5701	5730		reduce the federal adjusted gross income or federal taxable
5702	5731		income of the taxpayer, the deficit, or the portion of the deficit,
5703	5732		shall also reduce the amount taxable under this section to the
5704	5733		extent permitted under the Internal Revenue Code, however, in no
5705	5734		case shall this permit a reduction in the amount taxable under
5706	5735		Section 965 of the Internal Revenue Code for purposes of this
5707	5736		section to be less than zero (0); and
5708	5737		(2) the Internal Revenue Service issues guidance that such an
5709	5738		income or deduction is not reported directly on a federal tax
5710	5739		return or is to be reported in a manner different than specified in
5711	5740		this section, this section shall be construed as if federal adjusted
5712	5741		gross income or federal taxable income included the income or
5713	5742		deduction.
5714	5743		(j) If a partner is required to include an item of income, a deduction,
5715	5744		or another tax attribute in the partner's adjusted gross income tax return
5716	5745		pursuant to IC 6-3-4.5, such item shall be considered to be includible
5717	5746		in the partner's federal adjusted gross income or federal taxable
5718	5747		income, regardless of whether such item is actually required to be
5719	5748		reported by the partner for federal income tax purposes. For purposes
5720	5749		of this subsection:
5721	5750		(1) items for which a valid election is made under IC 6-3-4.5-6,
5722	5751		IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
5723	5752		in the partner's adjusted gross income or taxable income; and
5724	5753		(2) items for which the partnership did not make an election under
5725	5754		IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
5726	5755		partnership is required to remit tax pursuant to IC 6-3-4.5-18,
5727	5756		shall be included in the partner's adjusted gross income or taxable
5728	5757		income.
5729	5758		(k) The following apply for purposes of this section:
5730	5759		(1) For purposes of subsections (b) and (f), if a taxpayer is an
5731	5760		organization that has more than one (1) trade or business subject
5732	5761		to the provisions of Section 512(a)(6) of the Internal Revenue
5733	5762		Code, the following rules apply for taxable years beginning after
5734	5763		December 31, 2017:
5735	5764		(A) If a trade or business has federal unrelated business
5736	5765		taxable income of zero (0) or greater for a taxable year, the
5737	5766		unrelated business taxable income and modifications required
5738	5767		under this section shall be combined in determining the
5739	5768		adjusted gross income of the taxpayer and shall not be treated
5740	5769		as being subject to the provisions of Section 512(a)(6) of the
5741		-	ES 453—LS 7499/DI 120 ~~133~~
	5770	+	ES 453—LS 7499/DI 120 134
5742	5771		Internal Revenue Code if one (1) or more trades or businesses
5743	5772		have negative Indiana adjusted gross income after
5744	5773		adjustments.
5745	5774		(B) If a trade or business has federal unrelated business
5746	5775		taxable income of less than zero (0) for a taxable year, the
5747	5776		taxpayer shall apply the modifications under this section for
5748	5777		the taxable year against the net operating loss in the manner
5749	5778		required under IC 6-3-2-2.5 and IC 6-3-2-2.6 for separately
5750	5779		stated net operating losses. However, if the application of
5751	5780		modifications required under IC 6-3-2-2.5 or IC 6-3-2-2.6
5752	5781		results in the separately stated net operating loss for the trade
5753	5782		or business being zero (0), the modifications that increase
5754	5783		adjusted gross income under this section and remain after the
5755	5784		calculations to adjust the separately stated net operating loss
5756	5785		to zero (0) that result from the trade or business must be
5757	5786		treated as modifications to which clause (A) applies for the
5758	5787		taxable year.
5759	5788		(C) If a trade or business otherwise described in Section
5760	5789		512(a)(6) of the Internal Revenue Code incurred a net
5761	5790		operating loss for a taxable year beginning after December 31,
5762	5791		2017, and before January 1, 2021, and the net operating loss
5763	5792		was carried back for federal tax purposes:
5764	5793		(i) if the loss was carried back to a taxable year for which
5765	5794		the requirements under Section 512(a)(6) of the Internal
5766	5795		Revenue Code did not apply, the portion of the loss and
5767	5796		modifications attributable to the loss shall be treated as
5768	5797		adjusted gross income of the taxpayer for the first taxable
5769	5798		year of the taxpayer beginning after December 31, 2022, and
5770	5799		shall be treated as part of the adjusted gross income
5771	5800		attributable to clause (A), unless, and to the extent, the loss
5772	5801		and modifications were applied to adjusted gross income for
5773	5802		a previous taxable year, as determined under this article; and
5774	5803		(ii) if the loss was carried back to a taxable year for which
5775	5804		the requirements under Section 512(a)(6) of the Internal
5776	5805		Revenue Code applied, the portion of the loss and
5777	5806		modifications attributable to the loss shall be treated as
5778	5807		adjusted gross income of the taxpayer for the first taxable
5779	5808		year of the taxpayer beginning after December 31, 2022, and
5780	5809		for purposes of this clause, the inclusion of losses and
5781	5810		modifications shall be in the same manner as provided in
5782	5811		clause (B), unless, and to the extent, the loss and
5783	5812		modifications were applied to adjusted gross income for a
5784		-	ES 453—LS 7499/DI 120 ~~134~~
	5813	+	ES 453—LS 7499/DI 120 135
5785	5814		previous taxable year, as determined under this article.
5786	5815		(D) Notwithstanding any provision in this subdivision, if a
5787	5816		taxpayer computed its adjusted gross income for a taxable year
5788	5817		beginning before January 1, 2023, based on a reasonable
5789	5818		interpretation of this article, the taxpayer shall be permitted to
5790	5819		compute its adjusted gross income for those taxable years
5791	5820		based on that interpretation. However, a taxpayer must
5792	5821		continue to report any tax attributes for taxable years
5793	5822		beginning after December 31, 2022, in a manner consistent
5794	5823		with its previous interpretation.
5795	5824		(2) In the case of a corporation, other than a captive real estate
5796	5825		investment trust, for which the adjusted gross income under this
5797	5826		article is determined after a deduction for dividends paid under
5798	5827		the Internal Revenue Code, the modifications required under this
5799	5828		section shall be applied in ratio to the corporation's taxable
5800	5829		income (as defined in Section 63 of the Internal Revenue Code)
5801	5830		after deductions for dividends paid under the Internal Revenue
5802	5831		Code compared to the corporation's taxable income (as defined in
5803	5832		Section 63 of the Internal Revenue Code) before the deduction for
5804	5833		dividends paid under the Internal Revenue Code.
5805	5834		(3) In the case of a trust or estate, the trust or estate is required to
5806	5835		include only the portion of the modifications not passed through
5807	5836		to beneficiaries.
5808	5837		(4) In the case of a taxpayer for which modifications are required
5809	5838		to be applied against a separately stated net operating loss under
5810	5839		IC 6-3-2-2.5 or IC 6-3-2-2.6, the modifications required under this
5811	5840		section must be adjusted to reflect the required application of the
5812	5841		modifications against a separately stated net operating loss, in
5813	5842		order to avoid the application of a particular modification
5814	5843		multiple times.
5815	5844		SECTION 11. IC 6-3-1-41 IS ADDED TO THE INDIANA CODE
5816	5845		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5817	5846		JANUARY 1, 2026]: Sec. 41. The term "investment partnership"
5818	5847		means a partnership for federal income tax purposes that meets
5819	5848		the following requirements:
5820	5849		(1) Not less than ninety percent (90%) of the partnership's
5821	5850		cost of its total assets consists of qualifying investment
5822	5851		securities, deposits at banks or other financial institutions,
5823	5852		and office space and equipment reasonably necessary to carry
5824	5853		on its activities as an investment partnership.
5825	5854		(2) Not less than ninety percent (90%) of the partnership's
5826	5855		gross income consists of interest, dividends, gains from the
5827		-	ES 453—LS 7499/DI 120 ~~135~~
	5856	+	ES 453—LS 7499/DI 120 136
5828	5857		sale or exchange of qualifying investment securities, and the
5829	5858		distributive share of partnership income from lower-tier
5830	5859		partnership interests meeting the definition of qualifying
5831	5860		investment security. For purposes of this subdivision, gross
5832	5861		income does not include income from partnerships that are
5833	5862		operating at a federal taxable loss. For purposes of this
5834	5863		subdivision, a partnership shall be treated as meeting the
5835	5864		percentage test set forth in this subdivision if the partnership
5836	5865		met the percentage test in three (3) of the five (5) most recent
5837	5866		taxable years, including the current taxable year.
5838	5867		(3) The partnership is not a dealer in qualifying investment
5839	5868		securities.
5840	5869		SECTION 12. IC 6-3-1-41.5 IS ADDED TO THE INDIANA CODE
5841	5870		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5842	5871		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 41.5. "Indiana
5843	5872		investment interest payment" means a payment of investment
5844	5873		interest (as defined in Section 163(d) of the Internal Revenue Code)
5845	5874		made with respect to tangible property (other than electricity, gas,
5846	5875		steam, water, prewritten computer software, and specified digital
5847	5876		products) held for investment in Indiana. For purposes of
5848	5877		determining what constitutes an Indiana investment interest
5849	5878		payment:
5850	5879		(1) tangible property is considered to be held for investment
5851	5880		in Indiana if, in the case of real property, the property is
5852	5881		located in Indiana, and in the case of personal property, the
5853	5882		property is stored in Indiana;
5854	5883		(2) if the amounts of a taxpayer's total investment interest
5855	5884		payments made during a taxable year that are attributable to
5856	5885		both tangible property held for investment in Indiana and for
5857	5886		other investment property cannot be determined separately,
5858	5887		the amount considered an Indiana investment interest
5859	5888		payment for the taxable year is equal to the ratio of the
5860	5889		purchase price of the tangible property held for investment in
5861	5890		Indiana to the purchase price of all investment property; and
5862	5891		(3) in the case of a taxpayer who is subject to the limitations
5863	5892		in deducting investment interest under Section 163(d)(1) of
5864	5893		the Internal Revenue Code, the following apply:
5865	5894		(A) No amount of investment interest payments that, if not
5866	5895		for the limitation in Section 163(d)(1) of the Internal
5867	5896		Revenue Code, would have been first deductible in a
5868	5897		taxable year beginning before January 1, 2027, may be
5869	5898		considered an Indiana investment interest payment.
5870		-	ES 453—LS 7499/DI 120 ~~136~~
	5899	+	ES 453—LS 7499/DI 120 137
5871	5900		(B) The amount considered to be an Indiana investment
5872	5901		interest payment that is allowable as a deduction under
5873	5902		section 3.5(a)(38) of this chapter for a taxable year is the
5874	5903		lesser of:
5875	5904		(i) the amount of investment interest allowable under
5876	5905		Section 163(d)(1) of the Internal Revenue Code; or
5877	5906		(ii) the amount of the Indiana investment payment;
5878	5907		for the taxable year. However, if the amount described in
5879	5908		item (ii) is greater than the amount described in item (i) in
5880	5909		a taxable year, the difference shall be treated as an Indiana
5881	5910		investment interest payment in the following taxable year.
5882	5911		(C) In the case of a taxpayer who does not elect to claim
5883	5912		itemized deductions under Section 63(e) of the Internal
5884	5913		Revenue Code in a taxable year, the Indiana investment
5885	5914		interest payment amounts described in clause (B) must still
5886	5915		be determined, including any amounts that will be treated
5887	5916		as an Indiana investment interest payment in the following
5888	5917		taxable year.
5889	5918		SECTION 13. IC 6-3-1-42 IS ADDED TO THE INDIANA CODE
5890	5919		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5891	5920		JANUARY 1, 2026]: Sec. 42. The term "qualifying investment
5892	5921		securities" means the following:
5893	5922		(1) Common stock, including preferred or debt securities
5894	5923		convertible into common stock, and preferred stock.
5895	5924		(2) Bonds, debentures, and other debt securities.
5896	5925		(3) Foreign and domestic currency deposits secured by
5897	5926		federal, state, or local governmental agencies.
5898	5927		(4) Mortgage or asset-backed securities secured by federal,
5899	5928		state, or local governmental agencies.
5900	5929		(5) Repurchase agreements and loan participations.
5901	5930		(6) Foreign currency exchange contracts and forward and
5902	5931		futures contracts on foreign currencies.
5903	5932		(7) Stock and bond index securities and futures contracts and
5904	5933		other similar financial securities and futures contracts on
5905	5934		those securities.
5906	5935		(8) Options for the purchase or sale of any of the securities,
5907	5936		currencies, contracts, or financial instruments described in
5908	5937		subdivisions (1) through (7).
5909	5938		(9) Regulated futures contracts.
5910	5939		(10) Commodities (not described in Section 1221(a)(1) of the
5911	5940		Internal Revenue Code) or futures, forwards, and options
5912	5941		with respect to such commodities, provided, however, that any
5913		-	ES 453—LS 7499/DI 120 ~~137~~
	5942	+	ES 453—LS 7499/DI 120 138
5914	5943		item of a physical commodity to which title is actually
5915	5944		acquired in the partnership's capacity as a dealer in such
5916	5945		commodity shall not be a qualifying investment security.
5917	5946		(11) Derivatives.
5918	5947		(12) A partnership interest in another partnership that is an
5919	5948		investment partnership.
5920	5949		(13) A partnership interest that, in the hands of the
5921	5950		partnership, qualifies as a security within the meaning of 15
5922	5951		U.S.C. 77b(a)(1).
5923	5952		SECTION 14. IC 6-3-1-43 IS ADDED TO THE INDIANA CODE
5924	5953		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5925	5954		JANUARY 1, 2026]: Sec. 43. The term "qualifying investment
5926	5955		partnership income" means the adjusted gross income from
5927	5956		qualifying investment securities, excluding any income or loss from
5928	5957		an asset described in section 42(13) of this chapter.
5929	5958		SECTION 15. IC 6-3-2-3.3 IS ADDED TO THE INDIANA CODE
5930	5959		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5931	5960		JANUARY 1, 2026]: Sec. 3.3. (a) As used in this section,
5932	5961		"nonresident partner" has the meaning set forth in IC 6-3-4-12(n).
5933	5962		(b) For all taxable years beginning after December 31, 2025, in
5934	5963		the case of an investment partnership:
5935	5964		(1) any qualifying investment partnership income that is
5936	5965		distributable to a nonresident partner shall be allocated to the
5937	5966		partner's state of residence (in the case of an individual,
5938	5967		estate, or trust) or commercial domicile (in the case of any
5939	5968		corporation or other entity) for purposes of section 2 of this
5940	5969		chapter; and
5941	5970		(2) any qualifying investment partnership income that is
5942	5971		distributable to a nonresident partner shall be treated as
5943	5972		business income and apportioned as if such income had been
5944	5973		received directly by the partner if such income is from
5945	5974		investment activity:
5946	5975		(A) that is directly or integrally related to any other
5947	5976		business activity conducted in this state by the nonresident
5948	5977		partner (or another corporation or entity that is unitary
5949	5978		with the partner);
5950	5979		(B) that serves an operational function to any other
5951	5980		business activity of the nonresident partner (or another
5952	5981		corporation or entity that is unitary with the partner); or
5953	5982		(C) where assets of the investment partnership were
5954	5983		acquired with working capital from a trade or business
5955	5984		activity conducted in this state in which the nonresident
5956		-	ES 453—LS 7499/DI 120 ~~138~~
	5985	+	ES 453—LS 7499/DI 120 139
5957	5986		partner (or another corporation or entity that is unitary
5958	5987		with the partner) owns an interest.
5959	5988		(c) For purposes of this section, the following apply:
5960	5989		(1) If an entity is permitted to allocate qualifying investment
5961	5990		partnership income under subsection (b)(1), the entity shall
5962	5991		exclude the receipts derived from the investment partnership
5963	5992		and attributable to the investment partnership income from
5964	5993		the denominator of the sales factor in section 2(e) of this
5965	5994		chapter.
5966	5995		(2) If an entity is required to treat qualifying investment
5967	5996		partnership income as apportionable income, the entity's
5968	5997		share of receipts from the investment partnership and
5969	5998		attributable to the investment partnership shall be included
5970	5999		in the denominator of the sales factor and attributed to the
5971	6000		entity's state of domicile for purposes of section 2(e) of this
5972	6001		chapter.
5973	6002		(3) For purposes of subsection (b)(2), a corporation or other
5974	6003		entity shall be treated as unitary with the partner if the
5975	6004		partner and the corporation or other entity would be required
5976	6005		to be included in a combined income tax return under this
5977	6006		article, determined as if all relevant entities are subject to tax
5978	6007		under this article as corporations and are not corporations
5979	6008		described in section 2.4 of this chapter. However, in the case
5980	6009		of a partner and a corporate partnership, a unitary
5981	6010		relationship shall be determined without regard to the
5982	6011		corporate partner's percentage of ownership of the
5983	6012		partnership.
5984	6013		(4) Nothing in this section shall affect the apportionment and
5985	6014		allocation of income and receipts derived from partnerships
5986	6015		other than qualified investment partnership income from
5987	6016		investment partnerships.
5988	6017		(5) If a nonresident person, corporation, or other entity
5989	6018		reasonably determines that it received qualified investment
5990	6019		partnership income from an investment partnership and the
5991	6020		partnership is determined to not be an investment
5992	6021		partnership, the person, corporation, or entity shall be
5993	6022		relieved of any penalty under IC 6-3-4-4.1, IC 6-5.5-7-1, or
5994	6023		IC 6-8.1-10-2.1(b) resulting from the underpayment.
5995	6024		SECTION 16. IC 6-3-2-3.7, AS AMENDED BY P.L.250-2015,
5996	6025		SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5997	6026		JULY 1, 2025]: Sec. 3.7. (a) Each taxable year, an individual or the
5998	6027		individual's surviving spouse is entitled to an adjusted gross income tax
5999		-	ES 453—LS 7499/DI 120 ~~139~~
	6028	+	ES 453—LS 7499/DI 120 140
6000	6029		deduction equal to the remainder of:
6001	6030		(1) the:
6002	6031		(A) first eight thousand dollars ($8,000), for taxable years
6003	6032		beginning after December 31, 2014, and before January 1,
6004	6033		2016; and
6005	6034		(B) first sixteen thousand dollars ($16,000), for taxable years
6006	6035		beginning after December 31, 2015, and before January 1,
6007	6036		2028; and
6008	6037		(C) first twenty-two thousand dollars ($22,000), for taxable
6009	6038		years beginning after December 31, 2027;
6010	6039		which is received by the individual or the individual's surviving
6011	6040		spouse during the taxable year from a federal civil service
6012	6041		annuity, and which is included in adjusted gross income under
6013	6042		Section 62 of the Internal Revenue Code; minus
6014	6043		(2) the total amount of Social Security benefits and railroad
6015	6044		retirement benefits received by the individual or the individual's
6016	6045		surviving spouse during the taxable year.
6017	6046		(b) The individual is only entitled to the deduction provided by this
6018	6047		section if the individual is at least sixty-two (62) years of age before the
6019	6048		end of the taxable year. This subsection does not apply to the
6020	6049		individual's surviving spouse.
6021	6050		SECTION 17. IC 6-3-2.1-4, AS AMENDED BY P.L.118-2024,
6022	6051		SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6023	6052		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) A tax shall be
6024	6053		imposed on the adjusted gross income of an electing entity for the
6025	6054		taxable year of the election. The adjusted gross income of the electing
6026	6055		entity shall be the aggregate of the direct owners' share of the electing
6027	6056		entity's adjusted gross income. For purposes of this section:
6028	6057		(1) the electing entity shall determine each nonresident direct
6029	6058		owner's share after allocation and apportionment pursuant to
6030	6059		IC 6-3-2-2; and
6031	6060		(2) the electing entity shall determine the resident direct owner's
6032	6061		share either:
6033	6062		(A) before allocation and apportionment pursuant to
6034	6063		IC 6-3-2-2; or
6035	6064		(B) after allocation and apportionment pursuant to IC 6-3-2-2.
6036	6065		The electing entity must use the same method for all resident
6037	6066		direct owners.
6038	6067		(b) The tax rate shall be the tax rate specified in IC 6-3-2-1(b) as of
6039	6068		the last day of the electing entity's taxable year, and the tax shall be due
6040	6069		on the same date as the entity return for the taxable year is due under
6041	6070		this article, without regard to extensions.
6042		-	ES 453—LS 7499/DI 120 ~~140~~
	6071	+	ES 453—LS 7499/DI 120 141
6043	6072		(c) On its return for the taxable year, the electing entity shall attach
6044	6073		a schedule showing the calculation of the tax and the credit for each
6045	6074		direct owner, and remit the tax with the return, taking into account
6046	6075		prior estimated tax payments and other tax payments by the electing
6047	6076		entity, along with other payments that are credited to the electing entity
6048	6077		as tax paid under this chapter or as tax withheld under IC 6-3-4 or
6049	6078		IC 6-5.5-2-8. The department may prescribe the form for providing the
6050	6079		information required by this section.
6051	6080		(d) If a pass through entity makes estimated tax payments, makes
6052	6081		other tax payments, or has other payments that are credited to the
6053	6082		electing entity as tax paid under this chapter or a tax withheld under
6054	6083		IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
6055	6084		election under section 3 of this chapter, the pass through entity:
6056	6085		(1) may treat pass through entity tax remitted on its behalf under
6057	6086		this chapter as pass through entity tax to its direct owners,
6058	6087		provided that:
6059	6088		(A) the tax is designated on a schedule similar to the schedule
6060	6089		required under subsection (c) and is reported to the direct
6061	6090		owners in the manner provided in section 5 of this chapter; and
6062	6091		(B) the pass through entity credits an amount to a direct owner
6063	6092		no greater than the tax that otherwise would be due under this
6064	6093		chapter on their share of the adjusted gross income from the
6065	6094		pass through entity or the direct owner's portion (as
6066	6095		determined under subsection (a)) of the pass through entity tax
6067	6096		passed through to the pass through entity, whichever is greater
6068	6097		(for purposes of this clause, a trust or estate shall compute the
6069	6098		tax in the same manner as an electing entity);
6070	6099		(2) shall treat any payment other than a payment designated under
6071	6100		subdivision (1) as a withholding tax payment under IC 6-3-4-12,
6072	6101		IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
6073	6102		through entity otherwise has not remitted or been credited with
6074	6103		such withholding; and
6075	6104		(3) may request a refund of any payment in excess of the amounts
6076	6105		credited or designated under subdivision (1) or (2).
6077	6106		(e) If a pass through entity elects to be subject to tax under this
6078	6107		chapter and the pass through entity determines that its tax is less than
6079	6108		the pass through entity tax that is paid on its behalf, the pass through
6080	6109		entity may treat the tax paid on its behalf in a manner similar to
6081	6110		subsection (d). However, the pass through entity may not treat an
6082	6111		amount less than its own liability under this chapter as pass through
6083	6112		entity tax under subsection (d)(1).
6084	6113		SECTION 18. IC 6-3-2.1-5, AS ADDED BY P.L.1-2023, SECTION
6085		-	ES 453—LS 7499/DI 120 ~~141~~
	6114	+	ES 453—LS 7499/DI 120 142
6086	6115		5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
6087	6116		1, 2025 (RETROACTIVE)]: Sec. 5. (a) Each electing entity shall
6088	6117		compute each direct owner's share of the tax imposed by section 4 of
6089	6118		this chapter and reflect that amount in the form and manner prescribed
6090	6119		by the department.
6091	6120		(b) Each entity owner shall be entitled to a refundable credit in an
6092	6121		amount equal to the amount of tax under this chapter credited to the
6093	6122		entity owner.
6094	6123		(c) All other credits arising from the operations of the electing
6095	6124		entity, or which are passed through to or assigned to the electing entity,
6096	6125		shall pass through to the entity owners as provided in this article or
6097	6126		IC 6-3.1 and shall not apply to the tax imposed in section 4 of this
6098	6127		chapter. All such other credits shall apply before the application of the
6099	6128		pass through entity tax credit. This subsection also applies to pass
6100	6129		through entities that pass the tax under this chapter through to their
6101	6130		owners. However, this subsection shall not limit the ability of an
6102	6131		electing entity or pass through entity to claim credit for taxes withheld
6103	6132		or paid on the entity's behalf.
6104	6133		(c) An electing entity or pass through entity shall be permitted
6105	6134		to claim a credit for taxes withheld or paid on the entity's behalf.
6106	6135		(d) An electing entity that has direct owners that would be
6107	6136		permitted to claim a credit under IC 6-3-3-3 for taxes paid to
6108	6137		another state with regard to a taxable year may elect to claim a
6109	6138		credit under this chapter for:
6110	6139		(1) an amount equal to the income of a resident direct owner
6111	6140		attributable to a state other than Indiana multiplied by the
6112	6141		rate imposed by IC 6-3-2-1(a) or maximum individual income
6113	6142		tax rate imposed by that other state, whichever rate is less, if:
6114	6143		(A) the electing entity makes an election to tax resident
6115	6144		direct owners in the manner prescribed in section
6116	6145		4(a)(2)(A) of this chapter; and
6117	6146		(B) the other state grants a credit to the Indiana residents
6118	6147		substantially similar to the credit as provided under
6119	6148		IC 6-3-3-3; and
6120	6149		(2) an amount equal to the income attributable to Indiana
6121	6150		multiplied by the rate imposed by IC 6-3-2-1(a) or the
6122	6151		maximum individual income tax rate by the nonresident
6123	6152		direct owner's state of residence, whichever rate is less, if the
6124	6153		nonresident direct owner would be permitted a credit under
6125	6154		IC 6-3-3-3(b) for the income attributable to Indiana and
6126	6155		derived from the electing entity.
6127	6156		(e) An electing entity may elect to claim a credit for any credit
6128		-	ES 453—LS 7499/DI 120 ~~142~~
	6157	+	ES 453—LS 7499/DI 120 143
6129	6158		under IC 6-3-3 or IC 6-3.1, other than the credits under
6130	6159		subsections (b) through (d), and arising from the operations of the
6131	6160		electing entity, or which are passed through to or assigned to the
6132	6161		electing entity for the taxable year. For purposes of this subsection,
6133	6162		the following apply:
6134	6163		(1) The credit must be allowable to pass through to the direct
6135	6164		owners of the electing entity under the provisions of the
6136	6165		credit.
6137	6166		(2) The credit must be first allowable to the direct owners of
6138	6167		the pass through entity in a taxable year ending on or after
6139	6168		the taxable year of the electing entity.
6140	6169		(3) The amount of the credit that the entity may claim against
6141	6170		the tax attributable to any direct owner under subsection (a)
6142	6171		may not exceed the credit that is available to be passed
6143	6172		through to the direct owner.
6144	6173		(f) For purposes of subsections (d) and (e), the following apply:
6145	6174		(1) The elections under subsections (d) and (e) are separate
6146	6175		elections to which the following apply:
6147	6176		(A) An election under subsection (e) applies to all credits
6148	6177		other than the credits described in subsections (b) through
6149	6178		(d). No allowance for an election to apply to one (1) or
6150	6179		more credits and to not apply to one (1) or more credits is
6151	6180		permitted.
6152	6181		(B) The election to claim the credits under subsections (d)
6153	6182		and (e) must be made on the original return filed by the
6154	6183		electing entity. A failure to claim a credit shall be treated
6155	6184		as if the credit was not allowable to the electing entity.
6156	6185		(C) An election to apply a credit applies to the tax for all
6157	6186		direct owners of the electing entity, provided that an
6158	6187		election under subsection (d) applies only to direct owners
6159	6188		that are individuals, estates, or trusts.
6160	6189		(2) If an electing entity claims credits under both subsections
6161	6190		(d) and (e), the electing entity shall apply the credit under
6162	6191		subsection (d) first, then any amount allowable under
6163	6192		subsection (e).
6164	6193		(3) The sum of the credits attributable to a direct owner of an
6165	6194		electing entity shall not exceed the tax computed by the
6166	6195		electing entity for the direct owner under this chapter.
6167	6196		(4) A provision under IC 6-3-3 or IC 6-3.1 requiring a credit
6168	6197		to be passed through shall not prevent an electing entity from
6169	6198		applying the credit against the tax imposed under this
6170	6199		chapter.
6171		-	ES 453—LS 7499/DI 120 ~~143~~
	6200	+	ES 453—LS 7499/DI 120 144
6172	6201		(5) An entity owner shall be permitted to claim any credit
6173	6202		otherwise allowable to the owner to the extent otherwise
6174	6203		permitted by IC 6-3-3 or IC 6-3.1.".
6175	6204		Delete page 8.
6176	6205		Page 9, delete lines 1 through 9.
6177	6206		Page 18, delete lines 9 through 14.
6178	6207		Page 20, line 22, after "shall be" insert ":
6179	6208		(i)".
6180	6209		Page 20, line 23, delete "liability divided by" and insert "liability;
6181	6210		divided by
6182	6211		(ii)".
6183	6212		Page 20, line 24, delete "section multiplied" and insert "chapter;
6184	6213		multiplied by
6185	6214		(iii) four (4);".
6186	6215		Page 20, delete line 25.
6187	6216		Page 22, line 4, delete "(b)." and insert "(b), and shall recapture
6188	6217		any reduction in the estimated tax payment in the manner
6189	6218		prescribed by Section 6655(e) of the Internal Revenue Code.".
6190	6219		Page 22, line 19, delete "If a".
6191	6220		Page 22, delete lines 20 through 24.
6192	6221		Page 23, between lines 14 and 15, begin a new paragraph and insert:
6193	6222		"SECTION 25. IC 6-3.1-38-4, AS ADDED BY P.L.203-2023,
6194	6223		SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6195	6224		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) Subject to
6196	6225		subsection (c) and section 7 of this chapter, a qualified taxpayer may
6197	6226		claim a credit against the qualified taxpayer's state tax liability for a
6198	6227		qualified contribution for a qualified taxpayer with less than fifty (50)
6199	6228		seventy-five (75) employees, if the amount provided toward the
6200	6229		health reimbursement arrangement is equal to or greater than the
6201	6230		level of benefits provided in the previous benefit year, or if the
6202	6231		amount the employer contributes toward the health
6203	6232		reimbursement arrangement equals the same amount contributed
6204	6233		per covered individual toward the employer provided health
6205	6234		insurance plan during the previous benefit year. up to four hundred
6206	6235		dollars ($400) in the first year per covered employee if the amount
6207	6236		provided toward the health reimbursement arrangement is equal to or
6208	6237		greater than either the level of benefits provided in the previous benefit
6209	6238		year, or if the amount the employer contributes toward the health
6210	6239		reimbursement arrangement equals the same amount contributed per
6211	6240		covered individual toward the employer provided health insurance plan
6212	6241		during the previous benefit year. The credit under this section
6213	6242		decreases to two hundred dollars ($200) per covered employee in the
6214		-	ES 453—LS 7499/DI 120 ~~144~~
	6243	+	ES 453—LS 7499/DI 120 145
6215	6244		second year.
6216	6245		(b) The amount of the credit is the lesser of:
6217	6246		(1) the amount contributed by the employer toward the health
6218	6247		reimbursement arrangement during the taxable year; or
6219	6248		(2) the following:
6220	6249		(A) For the taxable year in which the employer establishes
6221	6250		the health reimbursement arrangement, four hundred
6222	6251		dollars ($400).
6223	6252		(B) For the taxable year that immediately follows the
6224	6253		taxable year in which the employer establishes the health
6225	6254		reimbursement arrangement, two hundred dollars ($200).
6226	6255		(C) For a taxable year following a taxable year described
6227	6256		in clause (B), zero dollars ($0).
6228	6257		(c) A qualified taxpayer may not claim a credit under this
6229	6258		chapter for a health reimbursement arrangement established in a
6230	6259		taxable year beginning before January 1, 2024.
6231	6260		SECTION 26. IC 6-3.1-38-4.5 IS ADDED TO THE INDIANA
6232	6261		CODE AS A NEW SECTION TO READ AS FOLLOWS
6233	6262		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4.5. For
6234	6263		a taxable year beginning after December 31, 2024, if a pass through
6235	6264		entity is entitled to a credit under section 4 of this chapter but does
6236	6265		not have state tax liability against which the tax credit may be
6237	6266		applied, a shareholder, partner, or member of the pass through
6238	6267		entity is entitled to a tax credit equal to:
6239	6268		(1) the tax credit determined for the pass through entity for
6240	6269		the taxable year; multiplied by
6241	6270		(2) the percentage of the pass through entity's distributive
6242	6271		income to which the shareholder, partner, or member is
6243	6272		entitled.
6244	6273		SECTION 27. IC 6-3.1-40-1.5 IS ADDED TO THE INDIANA
6245	6274		CODE AS A NEW SECTION TO READ AS FOLLOWS
6246	6275		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 1.5. As
6247	6276		used in this chapter, "pass through entity" has the meaning set
6248	6277		forth in IC 6-3-1-35.
6249	6278		SECTION 28. IC 6-3.1-40-3 IS REPEALED [EFFECTIVE
6250	6279		JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 3. As used in this
6251	6280		chapter, "primary care physician" refers to a physician practicing in one
6252	6281		(1) or more of the following:
6253	6282		(1) Family medicine.
6254	6283		(2) General pediatric medicine.
6255	6284		(3) General internal medicine.
6256	6285		(4) The general practice of medicine.
6257		-	ES 453—LS 7499/DI 120 ~~145~~
	6286	+	ES 453—LS 7499/DI 120 146
6258	6287		SECTION 29. IC 6-3.1-40-5, AS ADDED BY P.L.203-2023,
6259	6288		SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6260	6289		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5. As used in this
6261	6290		chapter, "taxpayer" means an individual who:
6262	6291		(1) is a physician practicing as a primary care physician; engaged
6263	6292		in the practice of medicine;
6264	6293		(2) has an ownership interest in a corporation, limited liability
6265	6294		company, partnership, or other legal entity organized to provide
6266	6295		primary health care services as a physician owned entity;
6267	6296		(3) is not employed by a health system (as defined in
6268	6297		IC 16-18-2-168.5); and
6269	6298		(4) has any state income tax liability.
6270	6299		SECTION 30. IC 6-3.1-40-6, AS ADDED BY P.L.203-2023,
6271	6300		SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6272	6301		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. If a taxpayer:
6273	6302		(1) has an ownership interest in a physician owned medical
6274	6303		practice described in section 5(2) of this chapter that:
6275	6304		(1) (A) is established as a legal entity under Indiana law after
6276	6305		December 31, 2023;
6277	6306		(2) (B) opens and begins to provide primary health care
6278	6307		services to patients in a particular taxable year beginning after
6279	6308		December 31, 2023; and
6280	6309		(3) (C) has billed for health care services described in
6281	6310		subdivision (2) for at least six (6) months of that a taxable
6282	6311		year;
6283	6312		(2) has an ownership interest in the income of the physician
6284	6313		owned medical practice that is at least:
6285	6314		(A) for a physician owned medical practice with not more
6286	6315		than ten (10) owners, five percent (5%) of the physician
6287	6316		owned medical practice's income; and
6288	6317		(B) for a physician owned medical practice with more than
6289	6318		ten (10) owners, fifty percent (50%) of the physician owned
6290	6319		medical practice's income; and
6291	6320		(3) provided health care services in the physician owned
6292	6321		medical practice for at least six (6) months of a taxable year;
6293	6322		the taxpayer may, subject to section sections 7 and 9.5 of this chapter,
6294	6323		claim a credit against the taxpayer's state income tax liability. Subject
6295	6324		to section sections 8 and 11 of this chapter, the amount of the credit
6296	6325		allowed under this chapter for a taxpayer in the particular taxable year
6297	6326		is twenty thousand dollars ($20,000).
6298	6327		SECTION 31. IC 6-3.1-40-7, AS ADDED BY P.L.203-2023,
6299	6328		SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6300		-	ES 453—LS 7499/DI 120 ~~146~~
	6329	+	ES 453—LS 7499/DI 120 147
6301	6330		JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7. A taxpayer may claim
6302	6331		a tax credit under this chapter for the a taxable year described in
6303	6332		section 6 of this chapter and the two (2) immediately following taxable
6304	6333		years.
6305	6334		SECTION 32. IC 6-3.1-40-8.5 IS ADDED TO THE INDIANA
6306	6335		CODE AS A NEW SECTION TO READ AS FOLLOWS
6307	6336		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. If a
6308	6337		pass through entity is entitled to a credit under section 6 of this
6309	6338		chapter but does not have state tax liability against which the tax
6310	6339		credit may be applied, a shareholder, partner, or member of the
6311	6340		pass through entity is entitled to a tax credit equal to:
6312	6341		(1) the tax credit determined for the pass through entity for
6313	6342		the taxable year; multiplied by
6314	6343		(2) the percentage of the pass through entity's distributive
6315	6344		income to which the shareholder, partner, or member is
6316	6345		entitled.
6317	6346		SECTION 33. IC 6-3.1-40-9 IS REPEALED [EFFECTIVE
6318	6347		JANUARY 1, 2025 (RETROACTIVE)]:. Sec. 9. To obtain a credit
6319	6348		under this chapter, a taxpayer must claim the credit on the taxpayer's
6320	6349		annual state income tax return in the manner prescribed by the
6321	6350		department. The taxpayer shall submit to the department all
6322	6351		information that the department determines is necessary to verify the
6323	6352		taxpayer's eligibility for the credit provided by this chapter.
6324	6353		SECTION 34. IC 6-3.1-40-9.5 IS ADDED TO THE INDIANA
6325	6354		CODE AS A NEW SECTION TO READ AS FOLLOWS
6326	6355		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9.5. (a) To
6327	6356		receive a credit under this chapter, a taxpayer must:
6328	6357		(1) subject to subsection (d), apply for the department's
6329	6358		approval of the tax credit in the manner prescribed by the
6330	6359		department after June 30 of a calendar year, but not later
6331	6360		than July 1 of the subsequent calendar year;
6332	6361		(2) submit with the application a certified list of each of the
6333	6362		physicians who has an ownership interest in the legal entity
6334	6363		described in section 6 of this chapter and any additional
6335	6364		information that the department determines is necessary for
6336	6365		the calculation of the credit under this chapter;
6337	6366		(3) attach proof of the department's approval of the tax credit
6338	6367		to the taxpayer's state tax return or returns; and
6339	6368		(4) claim the approved tax credit on the taxpayer's state tax
6340	6369		return or returns in the manner prescribed by the
6341	6370		department.
6342	6371		(b) The department shall record the time of filing of each
6343		-	ES 453—LS 7499/DI 120 ~~147~~
	6372	+	ES 453—LS 7499/DI 120 148
6344	6373		application for the department's approval of a tax credit and shall,
6345	6374		except as provided in subsection (c), approve granting the credit to
6346	6375		the taxpayer, if the taxpayer otherwise qualifies for a credit under
6347	6376		this chapter, in the chronological order in which the application for
6348	6377		the department's approval is filed in the year.
6349	6378		(c) If the total credits approved under this section equal the
6350	6379		maximum amount allowable in the year, the department may not
6351	6380		approve an application for the credit filed later in that year.
6352	6381		(d) A taxpayer may not file an application for a credit under this
6353	6382		chapter after the due date of the taxpayer's tax return for a taxable
6354	6383		year, or another date specified by the department.
6355	6384		SECTION 35. IC 6-3.1-40-11 IS ADDED TO THE INDIANA
6356	6385		CODE AS A NEW SECTION TO READ AS FOLLOWS
6357	6386		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a)
6358	6387		Subject to subsection (b), the total amount of tax credits awarded
6359	6388		under this chapter may not exceed ten million dollars ($10,000,000)
6360	6389		in the state fiscal year beginning July 1, 2025, and ending June 30,
6361	6390		2026, and in each state fiscal year thereafter. However, any
6362	6391		amounts carried forward under section 8(a) of this chapter shall
6363	6392		first be deducted from the total amount of tax credits that may be
6364	6393		awarded for the succeeding state fiscal year.
6365	6394		(b) For a taxable year beginning after December 31, 2024, and
6366	6395		before January 1, 2026, only that part of a taxpayer's tax credit
6367	6396		that is attributable to the period of time beginning after June 30,
6368	6397		2025, and before January 1, 2026, is subject to the maximum
6369	6398		amount provided in subsection (a).
6370	6399		SECTION 36. IC 6-3.1-40-12 IS ADDED TO THE INDIANA
6371	6400		CODE AS A NEW SECTION TO READ AS FOLLOWS
6372	6401		[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. The
6373	6402		department, on a website used by the department to provide
6374	6403		information to the public, shall provide the following information:
6375	6404		(1) The application for the credit provided in this chapter.
6376	6405		(2) A timeline for receiving the credit provided in this chapter.
6377	6406		(3) The total amount of credits awarded under this chapter
6378	6407		during the current state fiscal year.
6379	6408		SECTION 37. IC 6-3.6-7-8.5, AS ADDED BY P.L.255-2017,
6380	6409		SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6381	6410		UPON PASSAGE]: Sec. 8.5. (a) This section applies to Fountain
6382	6411		County.
6383	6412		(b) The county council may, by ordinance, determine that additional
6384	6413		local income tax revenue is needed in the county to do the following:
6385	6414		(1) Finance, construct, acquire, improve, renovate, and equip the
6386		-	ES 453—LS 7499/DI 120 ~~148~~
	6415	+	ES 453—LS 7499/DI 120 149
6387	6416		county jail and related buildings and parking facilities, including
6388	6417		costs related to the demolition of existing buildings, the
6389	6418		acquisition of land, and any other reasonably related costs.
6390	6419		(2) Repay bonds issued or leases entered into for the purposes
6391	6420		described in subdivision (1).
6392	6421		(c) If the county council makes the determination set forth in
6393	6422		subsection (b), the county council may adopt an ordinance to impose
6394	6423		a local income tax rate of not more than fifty-five hundredths percent
6395	6424		(0.55%). However, the tax rate may not be greater than the rate
6396	6425		necessary to pay for the purposes described in subsection (b).
6397	6426		(d) The tax rate may be imposed only until the later of the following
6398	6427		dates:
6399	6428		(1) The date on which the financing, construction, acquisition,
6400	6429		improvement, renovation, and equipping of the facilities as
6401	6430		described in subsection (b) are completed.
6402	6431		(2) The date on which the last of any bonds issued (including
6403	6432		refunding bonds) or leases entered into to finance the
6404	6433		construction, acquisition, improvement, renovation, and
6405	6434		equipping of the facilities described in subsection (b) are fully
6406	6435		paid.
6407	6436		(e) The term of a bond issued (including any refunding bond) or a
6408	6437		lease entered into under subsection (b) may not exceed twenty-five (25)
6409	6438		years.
6410	6439		(f) The county treasurer shall establish a county jail revenue fund to
6411	6440		be used only for the purposes described in this section. Local income
6412	6441		tax revenues derived from the tax rate imposed under this section shall
6413	6442		be deposited in the county jail revenue fund.
6414	6443		(g) Local income tax revenues derived from the tax rate imposed
6415	6444		under this section:
6416	6445		(1) may be used only for the purposes described in this section;
6417	6446		(2) may not be considered by the department of local government
6418	6447		finance in determining the county's maximum permissible
6419	6448		property tax levy limit under IC 6-1.1-18.5; and
6420	6449		(3) may be pledged to the repayment of bonds issued or leases
6421	6450		entered into for the purposes described in subsection (b).
6422	6451		(h) Subject to subsection (i), if the county council determines
6423	6452		that the county jail revenue fund established under subsection (f)
6424	6453		contains excess reserves, the county council may, before January
6425	6454		1, 2026, adopt a resolution to make a one (1) time transfer from the
6426	6455		county jail revenue fund to the county general fund to be used only
6427	6456		for emergency management services within the county. The
6428	6457		resolution must include the following:
6429		-	ES 453—LS 7499/DI 120 ~~149~~
	6458	+	ES 453—LS 7499/DI 120 150
6430	6459		(1) A determination that the county jail revenue fund contains
6431	6460		excess reserves and that a transfer from the county jail
6432	6461		revenue fund to the county general fund is necessary.
6433	6462		(2) The total amount of excess reserves contained in the
6434	6463		county jail revenue fund as of the date the determination is
6435	6464		made that the county jail revenue fund contains excess
6436	6465		reserves.
6437	6466		(3) The total amount to be transferred from the county jail
6438	6467		revenue fund to the county general fund.
6439	6468		(4) The date on which the transfer from the county jail
6440	6469		revenue fund to the county general fund will occur.
6441	6470		(i) Prior to adopting a resolution under subsection (h), the
6442	6471		county council must adopt a new ordinance under subsection (c)
6443	6472		that adjusts the local income tax rate to a rate that:
6444	6473		(1) complies with the limitations described in subsection (c);
6445	6474		and
6446	6475		(2) is not greater than the rate necessary to pay for the
6447	6476		expenditures incurred for the purposes described in
6448	6477		subsection (b).
6449	6478		(h) (j) Fountain County possesses unique governmental and
6450	6479		economic development challenges and opportunities related to:
6451	6480		(1) the current county jail; and
6452	6481		(2) a limited industrial and commercial assessed valuation in the
6453	6482		county.
6454	6483		The use of local income tax revenues as provided in this section is
6455	6484		necessary for the county to provide adequate jail capacity in the county
6456	6485		and to maintain low property tax rates essential to economic
6457	6486		development. The use of local income tax revenues as provided in this
6458	6487		section to pay any bonds issued or leases entered into to finance the
6459	6488		construction, acquisition, improvement, renovation, and equipping of
6460	6489		the facilities described in subsection (b), rather than the use of property
6461	6490		taxes, promotes those purposes.
6462	6491		(i) (k) Money accumulated from the local income tax rate imposed
6463	6492		under this section after the termination of the tax under this section
6464	6493		shall be transferred to the county rainy day fund under IC 36-1-8-5.1.".
6465	6494		Page 25, delete lines 9 through 42.
6466	6495		Page 26, delete lines 1 through 7.
6467	6496		Page 30, delete lines 5 through 21.
6468	6497		Page 31, delete lines 26 through 42.
6469	6498		Delete page 32.
6470	6499		Page 33, delete lines 1 through 8.
6471	6500		Page 35, between lines 25 and 26, begin a new paragraph and insert:
6472		-	ES 453—LS 7499/DI 120 ~~150~~
	6501	+	ES 453—LS 7499/DI 120 151
6473	6502		"SECTION 49. IC 6-8.1-9.5-10, AS AMENDED BY P.L.236-2023,
6474	6503		SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6475	6504		JULY 1, 2025]: Sec. 10. (a) The department of state revenue may
6476	6505		charge a debtor a fee of ten percent (10%) of any debts collected under
6477	6506		this chapter as a collection fee for the department's services, not
6478	6507		including any local collection assistance fees charged under subsection
6479	6508		(b).
6480	6509		(b) This subsection applies to a debt collected for a claimant agency
6481	6510		that is a political subdivision described in section 1(1)(B) of this
6482	6511		chapter. A local collection assistance fee not to exceed twenty dollars
6483	6512		($20) twenty-five dollars ($25) shall be imposed on each debt
6484	6513		submitted by the claimant agency and collected through a set off under
6485	6514		this chapter. The board of the nonprofit organization that operates the
6486	6515		clearinghouse registered under section 3.5 of this chapter shall
6487	6516		determine the amount of the fee by resolution. Notwithstanding any law
6488	6517		concerning delinquent accounts, charges, fees, loans, taxes, or other
6489	6518		indebtedness, the local collection assistance fee shall be added to the
6490	6519		amount due the claimant agency when the collection is made, not
6491	6520		including any fee charged by the department of state revenue under
6492	6521		subsection (a). A fee collected under this subsection shall be
6493	6522		distributed by the department to:
6494	6523		(1) the nonprofit entity with which the department has entered
6495	6524		into a contract under section 3.5(b) of this chapter; or
6496	6525		(2) at the direction of the nonprofit entity, the nonprofit entity's
6497	6526		account held by the investment pool.".
6498	6527		Page 36, line 4, after "jurisdiction" insert "in Indiana".
6499	6528		Page 36, line 5, after "jurisdiction" insert "in Indiana".
6500	6529		Page 36, between lines 25 and 26, begin a new paragraph and insert:
6501	6530		"SECTION 51. IC 8-2.1-17-6.5, AS AMENDED BY P.L.215-2023,
6502	6531		SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6503	6532		JULY 1, 2025]: Sec. 6.5. (a) "Digital network", for purposes of
6504	6533		IC 8-2.1-19.1, means an online enabled application, software, website,
6505	6534		or system offered or used by a TNC to enable the prearrangement of
6506	6535		rides with TNC drivers.
6507	6536		(b) "Digital network", for purposes of this chapter and IC 8-2.1-19.3,
6508	6537		means an online enabled application, software, website, or system
6509	6538		offered or used by a DNC to enable deliveries with DNC drivers. A
6510	6539		digital network is not a product under law.
6511	6540		(c) A digital network is not a product under law.".
6512	6541		Page 43, between lines 13 and 14, begin a new paragraph and insert:
6513	6542		"SECTION 63. IC 8-2.1-22-22.5 IS ADDED TO THE INDIANA
6514	6543		CODE AS A NEW SECTION TO READ AS FOLLOWS
6515		-	ES 453—LS 7499/DI 120 ~~151~~
	6544	+	ES 453—LS 7499/DI 120 152
6516	6545		[EFFECTIVE JULY 1, 2025]: Sec. 22.5. A person who violates a
6517	6546		provision of this chapter involving a consumer transaction (as
6518	6547		defined in IC 24-5-0.5-2(a)(1)) entailing the transportation of
6519	6548		passengers or household goods commits a deceptive act that is
6520	6549		actionable by the attorney general under IC 24-5-0.5 and is subject
6521	6550		to the remedies and penalties under IC 24-5-0.5, in addition to all
6522	6551		other remedies and penalties under this chapter.".
6523	6552		Page 50, delete lines 13 through 15.
6524	6553		Page 50, line 16, delete "(f)" and insert "(e)".
6525	6554		Page 56, between lines 7 and 8, begin a new paragraph and insert:
6526	6555		"SECTION 84. IC 12-15-1.3-18.7 IS ADDED TO THE INDIANA
6527	6556		CODE AS A NEW SECTION TO READ AS FOLLOWS
6528	6557		[EFFECTIVE JULY 1, 2025]: Sec. 18.7. (a) Before September 1,
6529	6558		2025, the office of the secretary shall apply to the United States
6530	6559		Department of Health and Human Services for an amendment to
6531	6560		each home and community based services Medicaid waiver to,
6532	6561		when determining eligibility for an individual and the individual's
6533	6562		spouse who have both applied for a home and community based
6534	6563		services Medicaid waiver, use an asset limit threshold that equals
6535	6564		the asset limit for a single individual multiplied by two (2).
6536	6565		(b) The office of the secretary shall implement the changes in
6537	6566		determining eligibility for a home and community based services
6538	6567		Medicaid waiver specified in subsection (a) beginning on the date
6539	6568		on which the United States Department of Health and Human
6540	6569		Services approves the request for changes by the office of the
6541	6570		secretary under this section.
6542	6571		SECTION 85. IC 16-41-39-4 IS ADDED TO THE INDIANA
6543	6572		CODE AS A NEW SECTION TO READ AS FOLLOWS
6544	6573		[EFFECTIVE UPON PASSAGE]: Sec. 4. Any advertising or
6545	6574		marketing of heated tobacco products, regardless of the format of
6546	6575		the advertising, must include a message stating the following:
6547	6576		(1) Heated tobacco products contain nicotine.
6548	6577		(2) The ingestion of nicotine is harmful to humans.
6549	6578		SECTION 86. IC 36-8-28 IS ADDED TO THE INDIANA CODE
6550	6579		AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
6551	6580		JULY 1, 2025]:
6552	6581		Chapter 28. Fire Service Reports
6553	6582		Sec. 1. As used in this chapter, "local unit" means any:
6554	6583		(1) unit as defined in IC 36-1-2-23;
6555	6584		(2) fire protection district established under IC 36-8-11; or
6556	6585		(3) fire protection territory established under IC 36-8-19.
6557	6586		Sec. 2. As used in this chapter, "state fire marshal" means the
6558		-	ES 453—LS 7499/DI 120 ~~152~~
	6587	+	ES 453—LS 7499/DI 120 153
6559	6588		state fire marshal appointed under IC 22-14-2-2.
6560	6589		Sec. 3. Any local unit that provides fire service shall make
6561	6590		semiannual fire service reports to the state fire marshal as follows:
6562	6591		(1) For the six (6) month period from July 1 through
6563	6592		December 31 of a year, by January 31 of the following year.
6564	6593		(2) For the six (6) month period from January 1 through June
6565	6594		30 of a year, by July 31 of the year.
6566	6595		Sec. 4. (a) The state fire marshal shall subsequently report:
6567	6596		(1) the data reported by January 31 under section 3(1) of this
6568	6597		chapter to the legislative council by the following March 1;
6569	6598		and
6570	6599		(2) the data reported by July 31 under section 3(2) of this
6571	6600		chapter to the legislative council by the following September
6572	6601		1.
6573	6602		(b) The reports under this section shall be in an electronic
6574	6603		format under IC 5-14-6.
6575	6604		Sec. 5. A fire service report under this chapter shall include data
6576	6605		on the following:
6577	6606		(1) The number of separate fire runs made during the
6578	6607		reporting period. A single fire run requiring multiple vehicles
6579	6608		shall be considered one (1) fire run for purposes of a report.
6580	6609		(2) The number of vehicles that participated in each fire run.
6581	6610		(3) Information on whether a fire run consisted of:
6582	6611		(A) a fire;
6583	6612		(B) a vehicle accident;
6584	6613		(C) the provision of emergency medical services; or
6585	6614		(D) any other type of fire run.
6586	6615		(4) Information on whether or not a fire was extinguished as
6587	6616		part of the fire run, regardless of whether or not the report
6588	6617		indicates that the fire run consisted of a fire under subdivision
6589	6618		(3).
6590	6619		SECTION 87. [EFFECTIVE JANUARY 1, 2025
6591	6620		(RETROACTIVE)] (a) IC 6-3-2.1-4 and IC 6-3-2.1-5, both as
6592	6621		amended by this act, apply to taxable years beginning after
6593	6622		December 31, 2024.
6594	6623		(b) This SECTION expires January 1, 2027.
6595	6624		SECTION 88. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-5-58, as
6596	6625		added by this act, applies only to retail transactions occurring after
6597	6626		June 30, 2025.
6598	6627		(b) Except as provided in subsection (c), a retail transaction is
6599	6628		considered to have occurred after June 30, 2025, if the property
6600	6629		whose transfer constitutes selling at retail is delivered to the
6601		-	ES 453—LS 7499/DI 120 ~~153~~
	6630	+	ES 453—LS 7499/DI 120 154
6602	6631		purchaser or to the place of delivery designated by the purchaser
6603	6632		after June 30, 2025.
6604	6633		(c) Notwithstanding the delivery of the property constituting
6605	6634		selling at retail after June 30, 2025, a transaction is considered to
6606	6635		have occurred before July 1, 2025, to the extent that:
6607	6636		(1) the agreement of the parties to the transaction is entered
6608	6637		into before July 1, 2025; and
6609	6638		(2) payment for the property furnished in the transaction is
6610	6639		made before July 1, 2025.
6611	6640		(d) This SECTION expires January 1, 2028.".
6612	6641		Page 57, after line 42, begin a new paragraph and insert:
6613	6642		"SECTION 90. [EFFECTIVE JANUARY 1, 2025
6614	6643		(RETROACTIVE)] (a) IC 6-3.1-40-1.5, IC 6-3.1-40-8.5,
6615	6644		IC 6-3.1-40-9.5, IC 6-3.1-40-11, and IC 6-3.1-40-12, all as added by
6616	6645		this act, apply to taxable years beginning after December 31, 2024.
6617	6646		(b) IC 6-3.1-40-5, IC 6-3.1-40-6, and IC 6-3.1-40-7, all as
6618	6647		amended by this act, apply to taxable years beginning after
6619	6648		December 31, 2024.
6620	6649		(c) IC 6-3.1-40-3 and IC 6-3.1-40-9, both as repealed by this act,
6621	6650		apply to taxable years beginning after December 31, 2024.
6622	6651		(d) This SECTION expires July 1, 2028.".
6623	6652		Renumber all SECTIONS consecutively.
6624	6653		and when so amended that said bill do pass.
6625	6654		(Reference is to SB 453 as printed February 12, 2025.)
6626	6655		THOMPSON
6627	6656		Committee Vote: yeas 23, nays 0.
6628		-	_____
6629		-	HOUSE MOTION
6630		-	Mr. Speaker: I move that Engrossed Senate Bill 453 be amended to
6631		-	read as follows:
6632		-	Page 98, delete lines 21 through 27.
6633		-	Renumber all SECTIONS consecutively.
6634		-	(Reference is to ESB 453 as printed April 3, 2025.)
6635		-	SNOW
6636		-	ES 453—LS 7499/DI 120 154
6637		-	HOUSE MOTION
6638		-	Mr. Speaker: I move that Engrossed Senate Bill 453 be amended to
6639		-	read as follows:
6640		-	Page 62, delete lines 4 through 8.
6641		-	Page 62, line 37, strike "taxable" and insert "calendar".
6642		-	Page 62, line 40, delete "a".
6643		-	Page 62, line 40, strike "taxable" and insert "a calendar".
6644		-	Page 63, line 7, delete "income;" and insert "income divided by the
6645		-	number of physicians who own an interest in the physician owned
6646		-	medical practice;".
6647		-	Page 63, line 9, delete "taxable" and insert "calendar".
6648		-	Page 63, line 13, strike "taxable" and insert "calendar".
6649		-	Page 63, delete lines 21 through 32.
6650		-	Page 64, line 1, delete "chapter, a taxpayer must:" and insert
6651		-	"chapter:".
6652		-	Page 64, line 2, delete "subject to subsection (d)," and insert "the
6653		-	physician owned medical practice must".
6654		-	Page 64, line 3, after "credit" insert "for its owners for a calendar
6655		-	year".
6656		-	Page 64, line 4, delete "a" and insert "that".
6657		-	Page 64, line 5, delete "July 1" and insert "June 30".
6658		-	Page 64, line 6, after "(2)" insert "the physician owned medical
6659		-	practice must".
6660		-	Page 64, line 11, after "(3)" insert "the taxpayer must".
6661		-	Page 64, line 13, after "(4)" insert "the taxpayer must".
6662		-	Page 64, delete lines 25 through 27.
6663		-	Page 64, line 34, delete "However, any".
6664		-	Page 64, delete lines 35 through 37.
6665		-	Page 101, line 41, delete "IC 6-3.1-40-1.5, IC 6-3.1-40-8.5,".
6666		-	Renumber all SECTIONS consecutively.
6667		-	(Reference is to ESB 453 as printed April 3, 2025.)
6668		-	SNOW
6669	6657		ES 453—LS 7499/DI 120