Ind. Code ch. 6-3-3

in effect

Ind. Code § 6-3-3-1 Amounts deducted and withheld

Sec. 1. (a) Subject to subsection (b), the amount deducted and withheld as tax under IC 6-3-4 or IC 6-5.5-2-8 during any taxable year shall be allowed as a credit to the taxpayer against the tax imposed on the taxpayer by IC 6-3-2. (b) For each taxable year, the credit provided to a taxpayer by subsection (a) is reduced to the extent that the amount deducted and withheld as tax under IC 6-3-4 or IC 6-5.5-2-8 during the taxable year is applied as a credit against the tax imposed by IC 6-5.5. Formerly: Acts 1963(ss), c.32, s.301; Acts 1965, c.233, s.15. As amended by P.L.2-1988, SEC.8; P.L.146-2020, SEC.25.

Ind. Code § 6-3-3-2 Repealed

Formerly: Acts 1963(ss), c.32, s.302. As amended by P.L.2-1988, SEC.9. Repealed by P.L.192-2002(ss), SEC.191.

Ind. Code § 6-3-3-3 Taxes paid to other states; liability for income tax to a foreign country

Sec. 3. (a) Whenever a resident person has become liable for tax to another state upon all or any part of the person's income for a taxable year derived from sources without this state and subject to taxation under IC 6-3-2, the amount of tax paid by the person to the other state shall be credited against the amount of the tax payable by the person. Such credit shall be allowed upon the production to the department of satisfactory evidence of the fact of such payment, except that such application for credit shall not operate to reduce the tax payable under IC 6-3-2 to an amount less than would have been payable were the income from the other state ignored. The credit provided for by this subsection shall not be granted to a taxpayer when the laws of the other state, under which the adjusted gross income in question is subject to taxation, provides for a credit to the taxpayer substantially similar to that granted by subsection (b). (b) Whenever a nonresident person has become liable for tax to the state where the person resides upon the person's income for the taxable year derived from sources within this state and subject to taxation under IC 6-3-2, the proportion of tax paid by the person to the state where the person resides that the person's income subject to taxation under IC 6-3-2 bears to the person's income upon which the tax so payable to the other state was imposed shall be credited against the tax payable by the person under IC 6-3-2, but only if the laws of the other state grant a substantially similar credit to residents of this state subject to income tax under the laws of such other state, or impose a tax upon the income of its residents derived from sources in this state and exempt from taxation the income of residents of this state. No credit shall be allowed against the amount of the tax on any adjusted gross income taxable under IC 6-3-2 that is exempt from taxation under the laws of the other state. (c) Notwithstanding subsection (a), if a resident person will be liable for income tax to a foreign country upon the person's income included under the Internal Revenue Code, the income is considered from sources outside the United States under the Internal Revenue Code, and the income is included in the person's Indiana adjusted gross income due solely to an acceleration of the income inclusion for federal income tax purposes, the person may claim the credit allowable under this section by providing evidence to the department of the following: (1) The foreign country in which the income is subject to tax. (2) The amount of income included in Indiana adjusted gross income that is derived from the foreign country. (3) The amount of tax that will be imposed in the foreign country upon the individual's realization of the income under the laws of the foreign country, including any withholding tax or composite tax. (4) Any other information required by the department. The department may impose limitations and conditions on the claim under this subsection, including reporting requirements on the part of the person and extensions of statutes of limitations under IC 6-8.1-5-2. (d) As used in this subsection, "pass through entity tax" means a state net income tax imposed by another state on a pass through entity enacted by the state after 2017 that is substantially similar to that imposed under IC 6-3-2.1. Solely for purposes of this section, an owner of a pass through entity shall be considered liable for tax paid to another state by the pass through entity pursuant to a pass through entity tax imposed by the state (whether elected or otherwise) in an amount equal to that portion of the pass through entity tax representing the pass through entity tax credited to or otherwise attributed to the owner by the pass through entity, and the owner shall be considered to have paid that portion of the tax paid by the pass through entity. The owner of a pass through entity shall also be considered liable for and to have paid state income taxes to another state paid by the pass through entity on behalf of an owner through withholding, a composite return, or otherwise. Formerly: Acts 1963(ss), c.32, s.303. As amended by P.L.2-1988, SEC.10; P.L.159-2021, SEC.11; P.L.1-2023, SEC.6.

Ind. Code § 6-3-3-4 Repealed

Formerly: Acts 1963(ss), c.32, s.304; Acts 1965, c.279, s.1; Acts 1967, c.355, s.1. Repealed by Acts 1977, P.L.78, SEC.6.

Ind. Code § 6-3-3-4.1 Repealed

As added by Acts 1977, P.L.78, SEC.4. Amended by Acts 1979, P.L.68, SEC.2. Repealed by Acts 1981, P.L.25, SEC.9.

Ind. Code § 6-3-3-5 Credit; charitable contribution; postsecondary educational institutions; educational foundations

Sec. 5. (a) At the election of the taxpayer, there shall be allowed, as a credit against the adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the taxable year, an amount (subject to the applicable limitations provided by this section) equal to fifty percent (50%) of the aggregate amount of charitable contributions made by such taxpayer during such year to postsecondary educational institutions located within Indiana (including any of its associated colleges in Indiana) or to any corporation or foundation organized and operated solely for the benefit of any postsecondary educational institution. (b) In the case of a taxpayer other than a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed one hundred dollars ($100) in the case of a single return or two hundred dollars ($200) in the case of a joint return. (c) In the case of a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed: (1) ten percent (10%) of such corporation's total adjusted gross income tax under IC 6-3-1 through IC 6-3-7 for such year (as determined without regard to any credits against that tax); or (2) one thousand dollars ($1,000); whichever is less. (d) A charitable contribution in Indiana qualifies for a credit under this section only if the charitable contribution is made to a postsecondary educational institution or a corporation or foundation organized for the benefit of a postsecondary educational institution that: (1) normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on; (2) regularly offers education at a level above the twelfth grade; (3) regularly awards either associate, bachelors, masters, or doctoral degrees, or any combination thereof; and (4) is duly accredited by the North Central Association of Colleges and Schools, the Indiana state board of education, or the American Association of Theological Schools. (e) The credit allowed by this section shall not exceed the amount of the adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the taxable year, reduced by the sum of all credits (as determined without regard to this section) allowed by IC 6-3-1 through IC 6-3-7. Formerly: Acts 1963(ss), c.32, s.305; Acts 1967, c.201, s.1; Acts 1969, c.326, s.4; Acts 1971, P.L.64, SEC.8. As amended by Acts 1978, P.L.45, SEC.1; Acts 1981, P.L.77, SEC.10; P.L.20-1984, SEC.4; P.L.66-1988, SEC.1; P.L.5-1995, SEC.6; P.L.1-2003, SEC.33; P.L.269-2003, SEC.6; P.L.2-2007, SEC.121.

Ind. Code § 6-3-3-5.1 Repealed

As added by P.L.56-1990, SEC.1. Amended by P.L.1-2003, SEC.34; P.L.269-2003, SEC.7; P.L.2-2007, SEC.122. Repealed by P.L.181-2016, SEC.24.

Ind. Code § 6-3-3-6 Repealed

Formerly: Acts 1973, P.L.50, SEC.2. As amended by Acts 1980, P.L.54, SEC.3. Repealed by Acts 1981, P.L.25, SEC.9.

Ind. Code § 6-3-3-7 Repealed

As added by Acts 1975, P.L.352, SEC.1. Amended by Acts 1979, P.L.71, SEC.1; Acts 1980, P.L.51, SEC.3; Acts 1981, P.L.77, SEC.11; P.L.82-1983, SEC.6. Repealed by P.L.96-1989, SEC.25.

Ind. Code § 6-3-3-8 Repealed

As added by Acts 1978, P.L.43, SEC.2. Amended by Acts 1980, P.L.54, SEC.4. Repealed by Acts 1981, P.L.25, SEC.9.

Ind. Code § 6-3-3-9 Unified tax credit for the elderly

Sec. 9. (a) The credit provided by this section shall be known as the unified tax credit for the elderly. (b) As used in this section, unless the context clearly indicates otherwise: (1) "Household federal adjusted gross income" means the total adjusted gross income, as defined in Section 62 of the Internal Revenue Code, of an individual, or of an individual and his spouse if they reside together for the taxable year for which the credit provided by this section is claimed. (2) "Household" means a claimant or, if applicable, a claimant and his or her spouse if the spouse resides with the claimant and "household income" means the income of the claimant or, if applicable, the combined income of the claimant and his or her spouse if the spouse resides with the claimant. (3) "Claimant" means an individual, other than an individual described in subsection (c) of this section, who: (A) has filed a claim under this section; (B) was a resident of this state for at least six (6) months during the taxable year for which he or she has filed a claim under this section; and (C) was sixty-five (65) years of age during some portion of the taxable year for which he has filed a claim under this section or whose spouse was either sixty-five (65) years of age or over during the taxable year. (c) The credit provided under this section shall not apply to an individual who, for a period of at least one hundred eighty (180) days during the taxable year for which he has filed a claim under this section, was incarcerated in a local, state, or federal correctional institution. (d) The right to file a claim under this section shall be personal to the claimant and shall not survive his death, except that a surviving spouse of a claimant is entitled to claim the credit provided by this section. For purposes of determining the amount of the credit a surviving spouse is entitled to claim under this section, the deceased spouse shall be treated as having been alive on the last day of the taxable year in which the deceased spouse died. When a claimant dies after having filed a timely claim, the amount thereof shall be disbursed to another member of the household as determined by the commissioner. If the claimant was the only member of his household, the claim may be paid to his executor or administrator, but if neither is appointed and qualified within two (2) years of the filing of the claim, the amount of the claim shall escheat to the state. (e) For each taxable year, subject to the limitations provided in this section, one (1) claimant per household may claim, as a credit against Indiana adjusted gross income taxes otherwise due, the credit provided by this section. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's household income or if there are no Indiana income taxes due on such income, the amount of the claim not used as an offset against income taxes after audit by the department, at the taxpayer's option, shall be refunded to the claimant or taken as a credit against such taxpayer's income tax liability subsequently due. (f) The amount of any claim otherwise payable under this section may be applied by the department against any liability outstanding on the books of the department against the claimant, or against any other individual who was a member of his household in the taxable year to which the claim relates. (g) The amount of a claim filed pursuant to this section by a claimant that either (i) does not reside with his spouse during the taxable year, or (ii) resides with his spouse during the taxable year and only one (1) of them is sixty-five (65) years of age or older at the end of the taxable year, shall be determined in accordance with the following schedule: HOUSEHOLD FEDERAL ADJUSTED GROSS INCOME FOR TAXABLE YEAR CREDIT less than $1,000 $100 at least $1,000, but less than $3,000 $ 50 at least $3,000, but less than $10,000 $ 40 (h) The amount of a claim filed pursuant to this section by a claimant that resides with his spouse during his taxable year shall be determined in accordance with the following schedule if both the claimant and spouse are sixty-five (65) years of age or older at the end of the taxable year: HOUSEHOLD FEDERAL ADJUSTED GROSS INCOME FOR TAXABLE YEAR CREDIT less than $1,000 $140 at least $1,000, but less than $3,000 $ 90 at least $3,000, but less than $10,000 $ 80 (i) The department may promulgate reasonable rules under IC 4-22-2 for the administration of this section. (j) Every claimant under this section shall supply to the department on forms provided under IC 6-8.1-3-4, in support of his claim, reasonable proof of household income and age. (k) Whenever on the audit of any claim filed under this section the department finds that the amount of the claim has been incorrectly determined, the department shall redetermine the claim and notify the claimant of the redetermination and the reasons therefor. The redetermination shall be final. (l) In any case in which it is determined that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and, if the claim has been paid or a credit has been allowed against income taxes otherwise payable, the credit shall be canceled and the amount paid shall be recovered by assessment as income taxes are assessed and such assessment shall bear interest from the date of payment or credit of the claim, until refunded or paid at the rate determined under IC 6-8.1-10-1. The claimant in such a case commits a Class A misdemeanor. In any case in which it is determined that a claim is or was excessive and was negligently prepared, ten percent (10%) of the corrected claim shall be disallowed and, if the claim has been paid or credited against income taxes otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed, and such assessment shall bear interest at the rate determined under IC 6-8.1-10-1 from the date of payment until refunded or paid. As added by Acts 1982, P.L.6, SEC.5. Amended by P.L.83-1983, SEC.1; P.L.73-1985, SEC.2; P.L.234-2019, SEC.13.

Ind. Code § 6-3-3-10 Enterprise zone employers; credit; employment expenditures

Sec. 10. (a) As used in this section: "Base period wages" means the following: (1) In the case of a taxpayer other than a pass through entity, wages paid or payable by a taxpayer to its employees during the year that ends on the last day of the month that immediately precedes the month in which an enterprise zone is established, to the extent that the wages would have been qualified wages if the enterprise zone had been in effect for that year. If the taxpayer did not engage in an active trade or business during that year in the area that is later designated as an enterprise zone, then the base period wages equal zero (0). If the taxpayer engaged in an active trade or business during only part of that year in an area that is later designated as an enterprise zone, then the department shall determine the amount of base period wages. (2) In the case of a taxpayer that is a pass through entity, base period wages equal zero (0). "Enterprise zone" means an enterprise zone created under IC 5-28-15. "Enterprise zone adjusted gross income" means adjusted gross income of a taxpayer that is derived from sources within an enterprise zone. Sources of adjusted gross income shall be determined with respect to an enterprise zone, to the extent possible, in the same manner that sources of adjusted gross income are determined with respect to the state of Indiana under IC 6-3-2-2. "Enterprise zone gross income" means gross income of a taxpayer that is derived from sources within an enterprise zone. "Enterprise zone insurance premiums" means insurance premiums derived from sources within an enterprise zone. "Monthly base period wages" means base period wages divided by twelve (12). "Qualified employee" means an individual who is employed by a taxpayer and who: (1) has the individual's principal place of residence in the enterprise zone in which the individual is employed; (2) performs services for the taxpayer, ninety percent (90%) of which are directly related to the conduct of the taxpayer's trade or business that is located in an enterprise zone; (3) performs at least fifty percent (50%) of the individual's services for the taxpayer during the taxable year in the enterprise zone; and (4) in the case of an individual who is employed by a taxpayer that is a pass through entity, was first employed by the taxpayer after December 31, 1998. "Qualified increased employment expenditures" means the following: (1) For a taxpayer's taxable year other than the taxpayer's taxable year in which the enterprise zone is established, the amount by which qualified wages paid or payable by the taxpayer during the taxable year to qualified employees exceeds the taxpayer's base period wages. (2) For the taxpayer's taxable year in which the enterprise zone is established, the amount by which qualified wages paid or payable by the taxpayer during all of the full calendar months in the taxpayer's taxable year that succeed the date on which the enterprise zone was established exceed the taxpayer's monthly base period wages multiplied by that same number of full calendar months. "Qualified state tax liability" means a taxpayer's total income tax liability incurred under: (1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax) with respect to enterprise zone adjusted gross income; (2) IC 27-1-18-2 (insurance premiums tax) with respect to enterprise zone insurance premiums; (3) IC 6-5.5 (the financial institutions tax); and (4) IC 6-8-15 (nonprofit agricultural organization health coverage tax); as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this section. "Qualified wages" means the wages paid or payable to qualified employees during a taxable year. "Taxpayer" includes a pass through entity. (b) A taxpayer is entitled to a credit against the taxpayer's qualified state tax liability for a taxable year in the amount of the lesser of: (1) the product of ten percent (10%) multiplied by the qualified increased employment expenditures of the taxpayer for the taxable year; or (2) one thousand five hundred dollars ($1,500) multiplied by the number of qualified employees employed by the taxpayer during the taxable year. (c) The amount of the credit provided by this section that a taxpayer uses during a particular taxable year may not exceed the taxpayer's qualified state tax liability for the taxable year. If the credit provided by this section exceeds the amount of that tax liability for the taxable year it is first claimed, then the excess may be carried back to preceding taxable years or carried over to succeeding taxable years and used as a credit against the taxpayer's qualified state tax liability for those taxable years. Each time that the credit is carried back to a preceding taxable year or carried over to a succeeding taxable year, the amount of the carryover is reduced by the amount used as a credit for that taxable year. Except as provided in subsection (e), the credit provided by this section may be carried forward and applied in the ten (10) taxable years that succeed the taxable year in which the credit accrues. The credit provided by this section may be carried back and applied in the three (3) taxable years that precede the taxable year in which the credit accrues. (d) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's qualified state tax liability for that taxable year before any credit carryover or carryback is applied against that liability under subsection (c). (e) Notwithstanding subsection (c), if a credit under this section results from wages paid in a particular enterprise zone, and if that enterprise zone terminates in a taxable year that succeeds the last taxable year in which a taxpayer is entitled to use the credit carryover that results from those wages under subsection (c), then the taxpayer may use the credit carryover for any taxable year up to and including the taxable year in which the enterprise zone terminates. (f) A taxpayer is not entitled to a refund of any unused credit. (g) A taxpayer that: (1) does not own, rent, or lease real property outside of an enterprise zone that is an integral part of its trade or business; and (2) is not owned or controlled directly or indirectly by a taxpayer that owns, rents, or leases real property outside of an enterprise zone; is exempt from the allocation and apportionment provisions of this section. (h) If a pass through entity is entitled to a credit under subsection (b) but does not have state tax liability against which the tax credit may be applied, an individual who is a shareholder, partner, beneficiary, or member of the pass through entity is entitled to a tax credit equal to: (1) the tax credit determined for the pass through entity for the taxable year; multiplied by (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, beneficiary, or member is entitled. The credit provided under this subsection is in addition to a tax credit to which a shareholder, partner, beneficiary, or member of a pass through entity is entitled. However, a pass through entity and an individual who is a shareholder, partner, beneficiary, or member of a pass through entity may not claim more than one (1) credit for the qualified expenditure. As added by P.L.23-1983, SEC.12. Amended by P.L.9-1986, SEC.6; P.L.347-1989(ss), SEC.9; P.L.120-1999, SEC.3; P.L.14-2000, SEC.17; P.L.1-2003, SEC.35; P.L.269-2003, SEC.8; P.L.4-2005, SEC.50; P.L.182-2009(ss), SEC.197; P.L.154-2020, SEC.9.

Ind. Code § 6-3-3-12 Credit for contributions to Indiana529 plan; date of contribution; repayment of credit after nonqualified withdrawals

Sec. 12. (a) As used in this section, "account" has the meaning set forth in IC 21-9-2-2. (b) As used in this section, "account beneficiary" has the meaning set forth in IC 21-9-2-3. (c) As used in this section, "account owner" has the meaning set forth in IC 21-9-2-4. (d) As used in this section, "Indiana529 plan" refers to an Indiana529 plan established under IC 21-9. (e) As used in this section, "contribution" means the amount of money directly provided to an Indiana529 plan account by a taxpayer. A contribution does not include any of the following: (1) Money credited to an account as a result of bonus points or other forms of consideration earned by the taxpayer that result in a transfer of money to the account. (2) Money transferred from any other qualified tuition program under Section 529 of the Internal Revenue Code or from any other similar plan. (3) Money transferred from any qualified ABLE program under Section 529A of the Internal Revenue Code or any other similar plan. (f) As used in this section, "nonqualified withdrawal" means a withdrawal or distribution from an Indiana529 plan that is not a qualified withdrawal. (g) As used in this section, "qualified higher education expenses" has the meaning set forth in IC 21-9-2-19.5, except that the term does not include qualified education loan repayments under Section 529(c)(9) of the Internal Revenue Code. (h) As used in this section, "qualified K-12 education expenses" means expenses that are for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school located in Indiana and are permitted under Section 529 of the Internal Revenue Code. (i) As used in this section, "qualified withdrawal" means a withdrawal or distribution from an Indiana529 plan that is made: (1) to pay for qualified higher education expenses, excluding any withdrawals or distributions used to pay for qualified higher education expenses, if the withdrawals or distributions are made from an account of an Indiana529 plan that is terminated within twelve (12) months after the account is opened; (2) as a result of the death or disability of an account beneficiary; (3) because an account beneficiary received a scholarship that paid for all or part of the qualified higher education expenses of the account beneficiary, to the extent that the withdrawal or distribution does not exceed the amount of the scholarship; or (4) by an Indiana529 plan as the result of a transfer of funds by an Indiana529 plan from one (1) third party custodian to another. However, a qualified withdrawal does not include a withdrawal or distribution that will be used for expenses that are for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school unless the school is located in Indiana. A qualified withdrawal does not include a rollover distribution or transfer of assets from an Indiana529 plan to any other qualified tuition program under Section 529 of the Internal Revenue Code, to any qualified ABLE program under Section 529A other than an Indiana ABLE 529A savings plan adopted by the state under IC 12-11, or to any other similar plan. (j) As used in this section, "taxpayer" means: (1) an individual filing a single return; (2) a married couple filing a joint return; or (3) for taxable years beginning after December 31, 2019, a married individual filing a separate return. (k) A taxpayer is entitled to a credit against the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable year equal to the least of the following: (1) Twenty percent (20%) multiplied by the amount of the total contributions that are made by the taxpayer to an account or accounts of an Indiana529 plan during the taxable year. (2) One thousand five hundred dollars ($1,500), or seven hundred fifty dollars ($750) in the case of a married individual filing a separate return. (3) The amount of the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the taxable year, reduced by the sum of all credits (as determined without regard to this section) allowed by IC 6-3-1 through IC 6-3-7. (l) A taxpayer who makes a contribution to an Indiana529 plan is considered to have made the contribution on the date that: (1) the taxpayer's contribution is postmarked or accepted by a delivery service, for contributions that are submitted to an Indiana529 plan by mail or delivery service; or (2) the taxpayer's electronic funds transfer is initiated, for contributions that are submitted to an Indiana529 plan by electronic funds transfer. (m) A taxpayer is not entitled to a carryback, carryover, or refund of an unused credit. (n) A taxpayer may not sell, assign, convey, or otherwise transfer the tax credit provided by this section. (o) To receive the credit provided by this section, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this section. (p) An account owner of an account of an Indiana529 plan must repay all or a part of the credit in a taxable year in which any nonqualified withdrawal is made from the account. The amount the taxpayer must repay is equal to the lesser of: (1) twenty percent (20%) of the total amount of nonqualified withdrawals made during the taxable year from the account; or (2) the excess of: (A) the cumulative amount of all credits provided by this section that are claimed by any taxpayer with respect to the taxpayer's contributions to the account for all prior taxable years beginning on or after January 1, 2007; over (B) the cumulative amount of repayments paid by the account owner under this subsection for all prior taxable years beginning on or after January 1, 2008. (q) Any required repayment under subsection (p) shall be reported by the account owner on the account owner's annual state income tax return for any taxable year in which a nonqualified withdrawal is made. (r) A nonresident account owner who is not required to file an annual income tax return for a taxable year in which a nonqualified withdrawal is made shall make any required repayment on the form required under IC 6-3-4-1(2). If the nonresident account owner does not make the required repayment, the department shall issue a demand notice in accordance with IC 6-8.1-5-1. (s) The executive director of the Indiana education savings authority shall submit or cause to be submitted to the department a copy of all information returns or statements issued to account owners, account beneficiaries, and other taxpayers for each taxable year with respect to: (1) nonqualified withdrawals made from accounts, including subaccounts of an Indiana529 plan for the taxable year; or (2) account closings for the taxable year. (t) The following apply to contributions made after December 31, 2023: (1) For purposes of this section, all or part of a contribution made after the end of a taxable year, and not later than the due date of the taxpayer's adjusted gross income tax return for the taxable year under this article (as determined without regard to any allowable extensions), shall be considered as having been made during the taxable year preceding the contribution if: (A) the taxpayer elects to treat all or part of a contribution as occurring in the taxable year preceding the contribution; (B) the taxpayer designates the amounts of the contribution to be treated as occurring in each taxable year, in the case of a single contribution that is to be allowable under this section in two (2) separate years; and (C) the taxpayer irrevocably waives the right to claim the contribution claimed in the taxable year preceding the contribution as occurring in the taxable year of the contribution. (2) The Indiana education savings authority may prescribe any forms necessary for purposes of this subsection. As added by P.L.192-2006, SEC.4. Amended by P.L.211-2007, SEC.22; P.L.131-2008, SEC.13; P.L.182-2009(ss), SEC.198; P.L.181-2016, SEC.25; P.L.214-2018(ss), SEC.9; P.L.154-2020, SEC.10; P.L.47-2022, SEC.1; P.L.105-2022, SEC.41; P.L.122-2022, SEC.1; P.L.236-2023, SEC.65; P.L.205-2025, SEC.8.

Ind. Code § 6-3-3-12.1 Credit for contributions to ABLE account; date of contribution; repayment of credit after nonqualified withdrawals

Sec. 12.1. (a) As used in this section, "ABLE account" has the meaning set forth in IC 12-11-14-1. (b) As used in this section, "contribution" means the amount of money directly provided to an Indiana ABLE 529A savings plan account by a taxpayer. A contribution does not include any of the following: (1) Money credited to an ABLE account as a result of bonus points or other forms of consideration earned by the taxpayer that result in a transfer of money to the ABLE account. (2) Money transferred from any qualified ABLE program under Section 529A of the Internal Revenue Code or from any other similar plan. (3) Money transferred from any qualified tuition program under Section 529 of the Internal Revenue Code or from any other similar plan. (4) Money transferred in a qualified ABLE rollover contribution described in Section 530A(d)(4)(B) of the Internal Revenue Code. (c) As used in this section, "designated beneficiary" has the meaning set forth in IC 12-11-14-5. (d) As used in this section, "Indiana ABLE 529A savings plan" refers to the Achieving a Better Life Experience (ABLE) 529A plan established under IC 12-11. (e) As used in this section, "nonqualified withdrawal" means a withdrawal or distribution from an Indiana ABLE 529A savings plan that is not a qualified withdrawal. (f) As used in this section, "qualified disability expense" has the meaning set forth in IC 12-11-14-8. (g) As used in this section, "qualified withdrawal" means a withdrawal or distribution from an Indiana ABLE 529A savings plan that is made: (1) to pay for qualified disability expenses, excluding any withdrawals or distributions used to pay for qualified disability expenses, if the withdrawals or distributions are made from an Indiana ABLE 529A savings plan that is terminated within twelve (12) months after the ABLE account is opened; (2) as a result of the death of a designated beneficiary; or (3) by an Indiana ABLE 529A savings plan as the result of a transfer of funds by an Indiana ABLE 529A savings plan from one (1) third party custodian to another. A qualified withdrawal does not include a rollover distribution or transfer of assets from an Indiana ABLE 529A savings plan to any other qualified ABLE program under Section 529A of the Internal Revenue Code, or to any qualified tuition program under Section 529 of the Internal Revenue Code other than an Indiana529 plan established under IC 21-9, or to any other similar plan. (h) As used in this section, "taxpayer" means: (1) an individual filing a single return; (2) a married couple filing a joint return; or (3) a married individual filing a separate return. (i) A taxpayer is entitled to a credit against the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a taxable year equal to the least of the following: (1) Twenty percent (20%) of the amount of the total contributions made by the taxpayer to an ABLE account or accounts of an Indiana ABLE 529A savings plan during the taxable year. (2) Five hundred dollars ($500). (3) The amount of the taxpayer's adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for the taxable year, reduced by the sum of all credits (as determined without regard to this section) allowed by IC 6-3-1 through IC 6-3-7. (j) A taxpayer is not entitled to a carryback, carryover, or refund of an unused credit. (k) A taxpayer may not sell, assign, convey, or otherwise transfer the tax credit provided by this section. (l) To receive the credit provided by this section, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this section. (m) An owner of an ABLE account of an Indiana ABLE 529A savings plan must repay all or a part of the credit in a taxable year in which any nonqualified withdrawal is made from the ABLE account. The amount the taxpayer must repay is equal to the lesser of: (1) twenty percent (20%) of the total amount of nonqualified withdrawals made during the taxable year from the ABLE account; or (2) the excess of: (A) the cumulative amount of all credits provided by this section that are claimed by any taxpayer with respect to the taxpayer's contributions to the ABLE account for all prior taxable years; over (B) the cumulative amount of repayments paid by the owner of the ABLE account under this subsection for all prior taxable years. (n) Any required repayment under subsection (m) must be reported by the owner of the ABLE account on the owner's annual state income tax return for any taxable year in which a nonqualified withdrawal is made. (o) A nonresident owner of an ABLE account who is not required to file an annual income tax return for a taxable year in which a nonqualified withdrawal is made shall make any required repayment on the form required under IC 6-3-4-1(2). If the nonresident owner of the ABLE account does not make the required repayment, the department shall issue a demand notice in accordance with IC 6-8.1-5-1. (p) The executive director of the Indiana ABLE authority shall submit or cause to be submitted to the department a copy of all information returns or statements issued to ABLE account owners, designated beneficiaries, and other taxpayers for each taxable year with respect to: (1) nonqualified withdrawals made from ABLE accounts for the taxable year; or (2) ABLE account closings for the taxable year. (q) The following apply to contributions made after December 31, 2023: (1) For purposes of this section, all or part of a contribution made after the end of a taxable year, and not later than the due date of the taxpayer's adjusted gross income tax return for the taxable year under this article (as determined without regard to any allowable extensions), shall be considered as having been made during the taxable year preceding the contribution if: (A) the taxpayer elects to treat all or part of a contribution as occurring in the taxable year preceding the contribution; (B) the taxpayer designates the amounts of the contribution to be treated as occurring in each taxable year, in the case of a single contribution that is to be allowable under this section in two (2) separate years; and (C) the taxpayer irrevocably waives the right to claim the contribution claimed in the taxable year preceding the contribution as occurring in the taxable year of the contribution. (2) An irrevocable election under this subsection must be made in writing at the time the contribution is made. (3) The Indiana ABLE authority may prescribe any forms necessary for purposes of this subsection. As added by P.L.122-2022, SEC.2. Amended by P.L.11-2023, SEC.25; P.L.236-2023, SEC.66; P.L.205-2025, SEC.9; P.L.128-2026, SEC.15.

Ind. Code § 6-3-3-13 Adoption credit

Sec. 13. (a) This section applies only to taxable years beginning after December 31, 2014. (b) Each taxable year, an individual who is a resident of Indiana during the taxable year and who is eligible to claim the credit provided by Section 23 of the Internal Revenue Code on the individual's federal return for the taxable year is entitled to a credit against the individual's adjusted gross income tax liability for the taxable year equal to the lesser of: (1) the amount of the credit allowable under Section 23 of the Internal Revenue Code for each eligible child on the individual's federal return for the taxable year multiplied by twenty percent (20%); or (2) two thousand five hundred dollars ($2,500) for each eligible child. (c) If the amount of the credit under this section exceeds the taxpayer's state income tax liability for the taxable year, the excess shall be refunded to the taxpayer. (d) If all or part of the credit allowed under Section 23 of the Internal Revenue Code for a taxable year beginning after December 31, 2014, is required to be claimed in, or carried forward to, a taxable year after the taxable year in which the credit is first allowed, the part carried forward and allowed to be claimed as a credit shall be treated as allowable under subsection (b), however, to the extent that a portion of a taxpayer's federal credit under Section 23 of the Internal Revenue Code is carried forward to a subsequent taxable year, the aggregate sum of credits claimed by the taxpayer under this section over the applicable taxable years may not exceed two thousand five hundred dollars ($2,500). A credit first allowed under Section 23 of the Internal Revenue Code for a taxable year beginning before January 1, 2015, and required to be claimed in, or carried forward to, a taxable year after the taxable year in which the credit is first allowed shall not be treated as allowable under subsection (b). (e) If an individual is a resident of Indiana for part of the taxable year and a nonresident of Indiana for part of the taxable year, the credit allowable under Section 23 of the Internal Revenue Code for purposes of subsection (b) shall be: (1) the credit allowable under Section 23 of the Internal Revenue Code; (2) multiplied by the number of days the individual was a resident of Indiana; and (3) divided by the number of days the individual was a resident of all states. (f) If an individual and the individual's spouse file a joint return under this article for a taxable year, the calculation under subsection (e) for the taxable year shall be made based on the combined resident and nonresident days of the individual and the individual's spouse. As added by P.L.132-2014, SEC.1. Amended by P.L.180-2022(ss), SEC.9; P.L.128-2026, SEC.16.

Ind. Code § 6-3-3-14.5 Credit for amounts expended by teacher for classroom supplies

Sec. 14.5. (a) As used in this section, "classroom supplies" means any items that qualify for the educator expense deduction under Section 62(a)(2)(D) of the Internal Revenue Code (as effective December 31, 2013). (b) Each taxable year, an individual employed as a teacher (as defined in IC 20-18-2-22(a)) is entitled to a credit against the individual's adjusted gross income tax liability for amounts expended during the taxable year for classroom supplies. The amount of the credit is the lesser of: (1) one hundred dollars ($100); or (2) the total amount expended for classroom supplies during a taxable year. (c) The credit provided by this section may not exceed the amount of the individual's adjusted gross income tax liability for the taxable year, reduced by the sum of all credits for the taxable year that are applied before the application of the credit provided by this section. The amount of any unused credit under this section for a taxable year may not be carried forward to a succeeding taxable year, carried back to a preceding taxable year, or refunded. As added by P.L.213-2015, SEC.82.

Ind. Code § 6-3-3-14.6 Repealed

As added by P.L.213-2015, SEC.83. Amended by P.L.181-2016, SEC.26; P.L.217-2017, SEC.65. Repealed by P.L.108-2019, SEC.120.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026