2019 Indiana Code
Title 6. Taxation
Article 3. State Income Taxes
Chapter 2. Imposition of Tax and Deductions
6-3-2-13. Export income; maritime opportunity districts; limit on deduction after December 31, 2015; expiration
Sec. 13. (a) As used in this section, "export income" means the gross receipts from the sale, transfer, or exchange of tangible personal property destined for international markets that is:
(1) manufactured at a plant located within a maritime opportunity district established under IC 6-1.1-40 (before its expiration); and
(2) shipped through a port operated by the state.
(b) As used in this section, "export sales ratio" means the quotient of:
(1) the taxpayer's export income; divided by
(2) the taxpayer's gross receipts from the sale, transfer, or exchange of tangible personal property, regardless of its destination.
(c) As used in this section, "taxpayer" means a person or corporation that has export income.
(d) The ports of Indiana established by IC 8-10-1-3 shall notify the department when a maritime opportunity district is established under IC 6-1.1-40 (before its expiration). The notice must include:
(1) the resolution passed by the commission to establish the district; and
(2) a list of all taxpayers located in the district.
(e) The ports of Indiana shall also notify the department of any subsequent changes in the list of taxpayers located in the district.
(f) A taxpayer is entitled to a deduction from the taxpayer's adjusted gross income in an amount equal to the lesser of:
(1) the taxpayer's adjusted gross income; or
(2) the product of the export sales ratio multiplied by the percentage set forth in subsection (g).
(g) The percentage to be used in determining the amount a taxpayer is entitled to deduct under this section depends upon the number of years that the taxpayer could have taken a deduction under this section. The percentage to be used in subsection (f) is as follows:
YEAR OF DEDUCTION | PERCENTAGE | |||
1st through 4th | 100% | |||
5th | 80% | |||
6th | 60% | |||
7th | 40% | |||
8th | 20% | |||
9th and thereafter | 0% | |||
(h) The department shall determine, for each taxpayer claiming a deduction under this section, the taxpayer's export sales ratio for purposes of IC 6-1.1-40 (before its expiration). The department shall certify the amount of the ratio to the department of local government finance.
(i) A taxpayer is not entitled to a deduction under this section based on export income received by the taxpayer after December 31, 2015.
(j) This section expires January 1, 2025.
As added by P.L.62-1988, SEC.2. Amended by P.L.90-2002, SEC.288; P.L.98-2008, SEC.8; P.L.250-2015, SEC.19; P.L.212-2018(ss), SEC.22.
