2013 Indiana Code
TITLE 6. TAXATION
ARTICLE 3. OTHER STATE INCOME TAXES
CHAPTER 1. DEFINITIONS
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IC 6-3
ARTICLE 3. OTHER STATE INCOME TAXES
IC 6-3-1
Chapter 1. Definitions
IC 6-3-1-1
Short title
Sec. 1. IC 6-3-1 through IC 6-3-7 shall be known and may be cited
as the Adjusted Gross Income Tax Act of 1963.
(Formerly: Acts 1963(ss), c.32, s.101.) As amended by P.L.2-1988,
SEC.3.
IC 6-3-1-2
Construction of definitions
Sec. 2. Except where the context otherwise requires, the
definitions given in this article govern the construction of this article.
(Formerly: Acts 1963(ss), c.32, s.102.) As amended by P.L.2-1988,
SEC.4.
IC 6-3-1-2.5
"Armed forces of the United States"
Sec. 2.5. "Armed forces of the United States" has the meaning set
forth in IC 5-9-4-3.
As added by P.L.144-2007, SEC.1.
IC 6-3-1-2.7
"National Guard"
Sec. 2.7. "National Guard" has the meaning set forth in
IC 5-9-4-4.
As added by P.L.144-2007, SEC.2.
IC 6-3-1-3
Repealed
(Repealed by Acts 1980, P.L.54, SEC.9.)
IC 6-3-1-3.1
Repealed
(Repealed by Acts 1979, P.L.70, SEC.2.)
IC 6-3-1-3.5
"Adjusted gross income"
Sec. 3.5. When used in this article, the term "adjusted gross
income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 62 of the Internal
Revenue Code for taxes based on or measured by income and
levied at the state level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each
spouse one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of
the Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) one thousand five hundred dollars ($1,500) for each of
the exemptions allowed under Section 151(c)(1)(B) of the
Internal Revenue Code (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue
Code if the adjusted gross income of the taxpayer, or the
taxpayer and the taxpayer's spouse in the case of a joint
return, is less than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on
or measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible
under subdivision (1).
(10) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a
taxpayer's federal gross income by Section 86 of the Internal
Revenue Code.
(11) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed
pursuant to subdivisions (3), (4), (5), and (6) shall be reduced
to an amount which bears the same ratio to the total as the
taxpayer's income taxable in Indiana bears to the taxpayer's total
income.
(12) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or
IC 12-15-7, subtract an amount equal to that portion of the
individual's adjusted gross income with respect to which the
individual is not allowed under federal law to retain an amount
to pay state and local income taxes.
(13) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(14) Subtract an amount equal to the portion of any premiums
paid during the taxable year by the taxpayer for a qualified long
term care policy (as defined in IC 12-15-39.6-5) for the
taxpayer or the taxpayer's spouse, or both.
(15) Subtract an amount equal to the lesser of:
(A) two thousand five hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(16) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(17) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(18) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(20) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(21) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes under
Section 112 of the Internal Revenue Code.
(22) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross
income under the Internal Revenue Code.
(23) Subtract any amount of a credit (including an advance
refund of the credit) that is provided to an individual under 26
U.S.C. 6428 (federal Economic Stimulus Act of 2008) and
included in the individual's federal adjusted gross income.
(24) Add any amount of unemployment compensation excluded
from federal gross income, as defined in Section 61 of the
Internal Revenue Code, under Section 85(c) of the Internal
Revenue Code.
(25) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(26) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract the amount
necessary from the adjusted gross income of any taxpayer that
added an amount to adjusted gross income in a previous year to
offset the amount included in federal gross income as a result
of the deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(27) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(28) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(29) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(30) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(31) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received
on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(32) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business
deduction allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 170 of the Internal
Revenue Code.
(3) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 63 of the Internal
Revenue Code for taxes based on or measured by income and
levied at the state level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20)
for the taxable year that reduced the corporation's taxable
income (as defined in Section 63 of the Internal Revenue Code)
for federal income tax purposes.
(10) Add an amount equal to any deduction for dividends paid
(as defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as defined
in section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(12) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(17) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business
deduction allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(18) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received
on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under
Indiana law, the same as "life insurance company taxable income"
(as defined in Section 801 of the Internal Revenue Code), adjusted
as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue
Code for taxes based on or measured by income and levied at
the state level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income
under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(15) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(16) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business
deduction allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(17) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received
on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(d) In the case of insurance companies subject to tax under
Section 831 of the Internal Revenue Code and organized under
Indiana law, the same as "taxable income" (as defined in Section 832
of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue
Code for taxes based on or measured by income and levied at
the state level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income
under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(15) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(16) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business
deduction allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(17) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received
on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(e) In the case of trusts and estates, "taxable income" (as defined
for trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a
victim of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(4) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(7) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the taxpayer's taxable income under the
Internal Revenue Code.
(8) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(9) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(10) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(13) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(14) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business
deduction allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(15) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received
on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(Formerly: Acts 1971, P.L.64, SEC.1; Acts 1973, P.L.49, SEC.1.) As
amended by Acts 1977, P.L.77, SEC.1; Acts 1977(ss), P.L.4, SEC.8;
Acts 1978, P.L.42, SEC.1; Acts 1978, P.L.43, SEC.1; Acts 1980,
P.L.54, SEC.1; Acts 1981, P.L.82, SEC.1; Acts 1982, P.L.52, SEC.1;
P.L.82-1983, SEC.1; P.L.49-1984, SEC.1; P.L.73-1985, SEC.1;
P.L.2-1987, SEC.15; P.L.91-1987, SEC.2; P.L.383-1987(ss), SEC.3;
P.L.88-1989, SEC.1; P.L.1-1990, SEC.75; P.L.2-1992, SEC.68;
P.L.57-1997, SEC.2; P.L.119-1998, SEC.3; P.L.128-1999, SEC.1;
P.L.238-1999, SEC.1; P.L.249-1999, SEC.1; P.L.257-1999, SEC.1;
P.L.273-1999, SEC.51; P.L.14-2000, SEC.16; P.L.8-2002, SEC.3;
P.L.192-2002(ss), SEC.67; P.L.105-2003, SEC.1; P.L.1-2004,
SEC.49; P.L.81-2004, SEC.9; P.L.246-2005, SEC.69; P.L.184-2006,
SEC.3; P.L.162-2006, SEC.24; P.L.1-2007, SEC.53; P.L.144-2007,
SEC.3; P.L.211-2007, SEC.19; P.L.223-2007, SEC.1; P.L.131-2008,
SEC.11; P.L.3-2008, SEC.60; P.L.1-2009, SEC.49;
P.L.182-2009(ss), SEC.186; P.L.229-2011, SEC.83; P.L.171-2011,
SEC.4; P.L.172-2011, SEC.53; P.L.6-2012, SEC.47; P.L.137-2012,
SEC.52; P.L.205-2013, SEC.80.
IC 6-3-1-3.7
Deduction for certain property taxes paid in 2009
Sec. 3.7. (a) This section applies only to an individual who in
2009 paid property taxes that:
(1) were imposed on the individual's principal place of
residence for the March 1, 2007, assessment date or the January
15, 2008, assessment date;
(2) are due after December 31, 2008; and
(3) are paid on or before the due date for the property taxes.
(b) An individual described in subsection (a) is entitled to a
deduction from adjusted gross income for a taxable year beginning
after December 31, 2008, and before January 1, 2010, in an amount
equal to the amount determined in the following STEPS:
STEP ONE: Determine the lesser of:
(A) two thousand five hundred dollars ($2,500); or
(B) the total amount of property taxes imposed on the
individual's principal place of residence for the March 1,
2007, assessment date or the January 15, 2008, assessment
date and paid in 2008 or 2009.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the STEP ONE result; minus
(B) the total amount of property taxes that:
(i) were imposed on the individual's principal place of
residence for the March 1, 2007, assessment date or the
January 15, 2008, assessment date;
(ii) were paid in 2008; and
(iii) were deducted from adjusted gross income under
section 3.5(a)(15) of this chapter by the individual on the
individual's state income tax return for a taxable year
beginning before January 1, 2009.
(c) The deduction under this section is in addition to any
deduction that an individual is otherwise entitled to claim under
section 3.5(a)(15) of this chapter. However, an individual may not
deduct under section 3.5(a)(15) of this chapter any property taxes
deducted under this section.
(d) This section expires January 1, 2014.
As added by P.L.182-2009(ss), SEC.187. Amended by P.L.6-2012,
SEC.48.
IC 6-3-1-4
"Department"
Sec. 4. The term "department" means the Indiana department of
state revenue.
(Formerly: Acts 1963(ss), c.32, s.104.)
IC 6-3-1-5
"Employer"
Sec. 5. The term "employer" means "employer" as defined in
section 3401(d) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.105.)
IC 6-3-1-6
"Employee"
Sec. 6. The term "employee" means "employee" as defined in
section 3401(c) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.106.)
IC 6-3-1-7
"Fiduciary"
Sec. 7. "Fiduciary" means any guardian, trustee, executor,
administrator, receiver, conservator, or any person, whether
individual or corporate, acting in any fiduciary capacity for any
individual, trust, guardian, or estate.
(Formerly: Acts 1963(ss), c.32, s.107.) As amended by P.L.33-1989,
SEC.4.
IC 6-3-1-8
"Gross income"
Sec. 8. The term "gross income" shall mean gross income as
defined by section 61(a) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.108.)
IC 6-3-1-9
"Individual"
Sec. 9. The term "individual" means a natural person, whether
married or unmarried, adult or minor.
(Formerly: Acts 1963(ss), c.32, s.109.)
IC 6-3-1-10
"Corporation"
Sec. 10. As used in this article, "corporation" includes all
corporations, associations, real estate investment trusts (as defined
in the Internal Revenue Code), joint stock companies, whether
organized for profit or not-for-profit, any receiver, trustee or
conservator thereof, business trusts, Massachusetts trusts, any
proprietorship or partnership taxable under Section 1361 of the
Internal Revenue Code, and any publicly traded partnership that is
treated as a corporation for federal income tax purposes under
Section 7704 of the Internal Revenue Code. The term includes life
insurance companies (as defined in Section 816(a) of the Internal
Revenue Code) and insurance companies subject to tax under Section
831 of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.110; Acts 1965, c.233, s.2; Acts
1973, P.L.49, SEC.2.) As amended by P.L.2-1987, SEC.16;
P.L.63-1988, SEC.4; P.L.192-2002(ss), SEC.68.
IC 6-3-1-11
"Internal Revenue Code"
Sec. 11. (a) The term "Internal Revenue Code" means the Internal
Revenue Code of 1986 of the United States as amended and in effect
on January 1, 2013.
(b) Whenever the Internal Revenue Code is mentioned in this
article, the particular provisions that are referred to, together with all
the other provisions of the Internal Revenue Code in effect on
January 1, 2011, that pertain to the provisions specifically
mentioned, shall be regarded as incorporated in this article by
reference and have the same force and effect as though fully set forth
in this article. To the extent the provisions apply to this article,
regulations adopted under Section 7805(a) of the Internal Revenue
Code and in effect on January 1, 2011, shall be regarded as rules
adopted by the department under this article, unless the department
adopts specific rules that supersede the regulation.
(c) An amendment to the Internal Revenue Code made by an act
passed by Congress before January 1, 2013, that is effective for any
taxable year that began before January 1, 2013, and that affects:
(1) individual adjusted gross income (as defined in Section 62
of the Internal Revenue Code);
(2) corporate taxable income (as defined in Section 63 of the
Internal Revenue Code);
(3) trust and estate taxable income (as defined in Section 641(b)
of the Internal Revenue Code);
(4) life insurance company taxable income (as defined in
Section 801(b) of the Internal Revenue Code);
(5) mutual insurance company taxable income (as defined in
Section 821(b) of the Internal Revenue Code); or
(6) taxable income (as defined in Section 832 of the Internal
Revenue Code);
is also effective for that same taxable year for purposes of
determining adjusted gross income under section 3.5 of this chapter.
(d) This subsection applies to a taxable year ending before
January 1, 2013. The following provisions of the Internal Revenue
Code that were amended by the Tax Relief Act, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 (P.L.
111-312) are treated as though they were not amended by the Tax
Relief Act, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (P.L. 111-312):
(1) Section 1367(a)(2) of the Internal Revenue Code pertaining
to an adjustment of basis of the stock of shareholders.
(2) Section 871(k)(1)(C) and 871(k)(2)(C) of the Internal
Revenue Code pertaining the treatment of certain dividends of
regulated investment companies.
(3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code
pertaining to regulated investment companies qualified entity
treatment.
(4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code
pertaining to the modification of tax treatment of certain
payments to controlling exempt organizations.
(5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code
pertaining to the limitations on percentage depletion in the case
of oil and gas wells.
(6) Section 451(i)(3) of the Internal Revenue Code pertaining
to special rule for sales or dispositions to implement Federal
Energy Regulatory Commission or state electric restructuring
policy for qualified electric utilities.
(7) Section 954(c)(6) of the Internal Revenue Code pertaining
to the look-through treatment of payments between related
controlled foreign corporation under foreign personal holding
company rules.
The department shall develop forms and adopt any necessary rules
under IC 4-22-2 to implement this subsection.
(Formerly: Acts 1963(ss), c.32, s.111; Acts 1965, c.233, s.3; Acts
1967, c.345, s.2; Acts 1969, c.326, s.2; Acts 1971, P.L.64, SEC.2;
Acts 1973, P.L.49, SEC.3; Acts 1975, P.L.60, SEC.1.) As amended by
Acts 1977, P.L.78, SEC.1; Acts 1978, P.L.44, SEC.1; Acts 1979,
P.L.67, SEC.1; Acts 1980, P.L.55, SEC.1; Acts 1981, P.L.82, SEC.2;
Acts 1982, P.L.52, SEC.2; P.L.82-1983, SEC.2; P.L.49-1984, SEC.2;
P.L.74-1985, SEC.1; P.L.71-1986, SEC.1; P.L.2-1987, SEC.17;
P.L.63-1988, SEC.5; P.L.89-1989, SEC.1; P.L.35-1990, SEC.11;
P.L.64-1991, SEC.1; P.L.43-1992, SEC.9; P.L.74-1993, SEC.1;
P.L.19-1994, SEC.7; P.L.85-1995, SEC.9; P.L.60-1997, SEC.2;
P.L.119-1998, SEC.4; P.L.2-2000, SEC.1; P.L.9-2001, SEC.1;
P.L.177-2002, SEC.11; P.L.192-2002(ss), SEC.69; P.L.105-2003,
SEC.2; P.L.246-2005, SEC.70; P.L.184-2006, SEC.4; P.L.234-2007,
SEC.41; P.L.131-2008, SEC.12; P.L.182-2009(ss), SEC.188;
P.L.113-2010, SEC.54; P.L.229-2011, SEC.84; P.L.137-2012,
SEC.53; P.L.205-2013, SEC.81.
IC 6-3-1-12
"Resident"
Sec. 12. The term "resident" includes (a) any individual who was
domiciled in this state during the taxable year, or (b) any individual
who maintains a permanent place of residence in this state and
spends more than one hundred eighty-three (183) days of the taxable
year within this state, or (c) any estate of a deceased person defined
in (a) or (b), or (d) any trust which has a situs within this state.
(Formerly: Acts 1963(ss), c.32, s.112.)
IC 6-3-1-13
"Nonresident"
Sec. 13. The term "nonresident" means any person who is not a
resident of Indiana.
(Formerly: Acts 1963(ss), c.32, s.113.)
IC 6-3-1-14
"Person"
Sec. 14. The term "person" means an individual, trust or estate:
Provided, That no corporation shall be considered to be a person.
(Formerly: Acts 1963(ss), c.32, s.114.)
IC 6-3-1-15
"Taxpayer"
Sec. 15. The term "taxpayer" means any person or any corporation
subject to taxation under this article.
(Formerly: Acts 1963(ss), c.32, s.115.) As amended by P.L.2-1988,
SEC.5.
IC 6-3-1-16
"Taxable year"
Sec. 16. The term "taxable year" with respect to any taxpayer
means the taxable year of such taxpayer as shown on his return
required to be filed or filed pursuant to the Internal Revenue Code.
Where a taxpayer does not file a return pursuant to the Internal
Revenue Code, his taxable year shall be the calendar year.
(Formerly: Acts 1963(ss), c.32, s.116.)
IC 6-3-1-17
Repealed
(Repealed by P.L.35-1990, SEC.80.)
IC 6-3-1-18
Repealed
(Repealed by P.L.1-1991, SEC.51.)
IC 6-3-1-19
"Partnership" and "partner"
Sec. 19. (a) The term "partnership" includes a syndicate, group,
pool, joint venture, or other unincorporated organization through or
by means of which any business, financial operation, or venture is
carried on, and which is not, within the meaning of this chapter, a
corporation or a trust or an estate. The term also includes a limited
liability company that is treated as a partnership for federal income
tax purposes.
(b) The term "partner" means a member of a partnership.
(Formerly: Acts 1963(ss), c.32, s.119; Acts 1965, c.233, s.6.) As
amended by P.L.2-1988, SEC.6; P.L.8-1993, SEC.83; P.L.1-1994,
SEC.27.
IC 6-3-1-19.5
Repealed
(Repealed by P.L.47-1984, SEC.7(a).)
IC 6-3-1-20
"Business income"
Sec. 20. The term "business income" means income arising from
transactions and activity in the regular course of the taxpayer's trade
or business and includes income from tangible and intangible
property if the acquisition, management, and disposition of the
property constitutes integral parts of the taxpayer's regular trade or
business operations.
(Formerly: Acts 1963(ss), c.32, s.120; Acts 1965, c.233, s.7.)
IC 6-3-1-21
"Nonbusiness income"
Sec. 21. The term "nonbusiness income" means all income other
than business income.
(Formerly: Acts 1963(ss), c.32, s.121; Acts 1965, c.233, s.8.)
IC 6-3-1-22
"Commercial domicile"
Sec. 22. The term "commercial domicile" means the principal
place from which the trade or business of the taxpayer is directed or
managed.
(Formerly: Acts 1963(ss), c.32, s.122; Acts 1965, c.233, s.9.)
IC 6-3-1-23
"Compensation"
Sec. 23. The term "compensation" means wages, salaries,
commissions and any other form of remuneration paid to employees
for personal services.
(Formerly: Acts 1963(ss), c.32, s.123; Acts 1965, c.233, s.10.)
IC 6-3-1-24
"Sales"
Sec. 24. The term "sales" means all gross receipts of the taxpayer
not allocated under IC 6-3-2-2(g) through IC 6-3-2-2(k), other than
compensation (as defined in section 23 of this chapter).
(Formerly: Acts 1963(ss), c.32, s.124; Acts 1965, c.233, s.11.) As
amended by P.L.2-1988, SEC.7.
IC 6-3-1-25
"State"
Sec. 25. The term "state" means any state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, and any foreign country
or political subdivision thereof.
(Formerly: Acts 1963(ss), c.32, s.125; Acts 1965, c.233, s.12.)
IC 6-3-1-26
"Foreign corporation"
Sec. 26. "Foreign corporation" means a foreign corporation as
defined in Section 7701 of the Internal Revenue Code.
As added by P.L.75-1985, SEC.1.
IC 6-3-1-27
"United States"
Sec. 27. "United States", when used in a geographical sense,
means the United States as defined in Section 7701 of the Internal
Revenue Code.
As added by P.L.75-1985, SEC.2.
IC 6-3-1-28
"Combined income tax return"
Sec. 28. "Combined income tax return" means any income tax
return on which one (1) or more taxpayers report income, deductions,
and credits on a combined basis with one (1) or more other entities.
As added by P.L.75-1985, SEC.3.
IC 6-3-1-29
"Eligible individual"
Sec. 29. As used in this chapter, "eligible individual" means:
(1) a person who was systematically persecuted for racial or
religious reasons by Nazi Germany or any other Axis regime;
or
(2) an heir of a person described in subdivision (1).
As added by P.L.128-1999, SEC.2.
IC 6-3-1-30
"Holocaust victim's settlement payment"
Sec. 30. As used in this chapter, "Holocaust victim's settlement
payment" means a payment received:
(1) as a result of the settlement of the action entitled "In re
Holocaust Victims' Asset Litigation", (E.D. NY) C.A. No.
96-4849;
(2) under the German Act Regulating Unresolved Property
Claims;
(3) under any other foreign law providing payments for
Holocaust claims; or
(4) as a result of the settlement of any other Holocaust claim,
including:
(A) insurance claims;
(B) claims relating to looted art;
(C) claims relating to looted financial assets; or
(D) claims relating to slave labor wages.
As added by P.L.128-1999, SEC.3.
IC 6-3-1-31
"Victim of the September 11 terrorist attack"
Sec. 31. As used in this article, "victim of the September 11
terrorist attack" means an individual who:
(1) died from the crash (including those on the airplane and
those on the ground) of any of the four (4) commercial jet
airplanes that were hijacked in the United States on September
11, 2001; or
(2) is a child or spouse of an individual described in subdivision
(1).
As added by P.L.8-2002, SEC.1.
IC 6-3-1-32
"September 11 terrorist attack settlement payment"
Sec. 32. As used in this article, "September 11 terrorist attack
settlement payment" means any compensation paid to a victim of the
September 11 terrorist attack:
(1) in recognition of; or
(2) to compensate for;
losses incurred by the victim as a result of the crash of any of the
four (4) commercial jet airplanes that were hijacked in the United
States on September 11, 2001.
As added by P.L.8-2002, SEC.2.
IC 6-3-1-33
"Bonus depreciation"
Sec. 33. As used in this article, "bonus depreciation" means an
amount equal to that part of any depreciation allowance allowed in
computing the taxpayer's federal adjusted gross income or federal
taxable income that is attributable to the additional first-year special
depreciation allowance (bonus depreciation) for qualified property
allowed under Section 168(k) of the Internal Revenue Code,
including the special depreciation allowance for 50-percent bonus
depreciation property.
As added by P.L.105-2003, SEC.3. Amended by P.L.246-2005,
SEC.71.
IC 6-3-1-34
"Qualified military income"
Sec. 34. "Qualified military income" means wages that are paid:
(1) to a member of:
(A) a reserve component of the armed forces of the United
States; or
(B) the National Guard; and
(2) for any of the following applicable periods, or any
combination of the following applicable periods, in a calendar
year:
(A) The member's full-time service on involuntary orders in:
(i) a reserve component of the armed forces of the United
States; or
(ii) the National Guard.
(B) The period during which the member is mobilized and
deployed for full-time service in:
(i) a reserve component of the armed forces of the United
States; or
(ii) the National Guard.
(C) The period during which the member's National Guard
unit is federalized.
As added by P.L.144-2007, SEC.4.
IC 6-3-1-34.5
"Captive real estate investment trust"
Sec. 34.5. (a) Except as provided in subsection (b), "captive real
estate investment trust" means a corporation, a trust, or an
association:
(1) that is considered a real estate investment trust for the
taxable year under Section 856 of the Internal Revenue Code;
(2) that is not regularly traded on an established securities
market; and
(3) in which more than fifty percent (50%) of the:
(A) voting power;
(B) beneficial interests; or
(C) shares;
are owned or controlled, directly or constructively, by a single
entity that is subject to Subchapter C of Chapter 1 of the
Internal Revenue Code.
(b) The term does not include a corporation, a trust, or an
association in which more than fifty percent (50%) of the entity's
voting power, beneficial interests, or shares are owned by a single
entity described in subsection (a)(3) that is owned or controlled,
directly or constructively, by:
(1) a corporation, a trust, or an association that is considered a
real estate investment trust under Section 856 of the Internal
Revenue Code;
(2) a person exempt from taxation under Section 501 of the
Internal Revenue Code;
(3) a listed property trust or other foreign real estate investment
trust that is organized in a country that has a tax treaty with the
United States Treasury Department governing the tax treatment
of these trusts; or
(4) a real estate investment trust that:
(A) is intended to become regularly traded on an established
securities market; and
(B) satisfies the requirements of Section 856(a)(5) and
Section 856(a)(6) of the Internal Revenue Code under
Section 856(h) of the Internal Revenue Code.
(c) For purposes of this section, the constructive ownership rules
of Section 318 of the Internal Revenue Code, as modified by Section
856(d)(5) of the Internal Revenue Code, apply to the determination
of the ownership of stock, assets, or net profits of any person.
As added by P.L.211-2007, SEC.20. Amended by P.L.182-2009(ss),
SEC.189.
IC 6-3-1-35
"Pass through entity"
Sec. 35. As used in this article, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a trust;
(4) a limited liability company; or
(5) a limited liability partnership.
As added by P.L.182-2009(ss), SEC.190.
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