Indiana § 6-3-7-5 - Independent contractor; worker's compensation election for exemption; notification of tax treatment

§ 6-3-7-5. Independent contractor; worker's compensation election for exemption; notification of tax treatment

Sec. 5. (a) As used in this section, "independent contractor" refers to a person described in IC 22-3-6-1(b)(7) or IC 22-3-7-9(b)(5).

(b) As used in this section, "person" means an individual, a proprietorship, a partnership, a joint venture, a firm, an association, a corporation, or other legal entity.

(c) An independent contractor who does not make an election under:

(1) IC 22-3-6-1(b)(4) or IC 22-3-6-1(b)(5) is not subject to the compensation provisions of IC 22-3-2 through IC 22-3-6; or

(2) IC 22-3-7-9(b)(2) or IC 22-3-7-9(b)(3) is not subject to the compensation provisions of IC 22-3-7;

and must file a statement with the department with supporting documentation of independent contractor status and obtain a certificate of exemption under this section.

(d) An independent contractor shall file with the department, in the form prescribed by the department, a statement providing the following information:

(1) The independent contractor's name, trade name, address, and telephone number.

(2) The independent contractor's federal identification number or Social Security number.

(3) The name and:

(A) Social Security number;

(B) federal employer identification number (FEIN); or

(C) taxpayer identification number (TIN);

of each person or entity with whom the independent contractor has contracted.

(e) Along with the statement required in subsection (d), an independent contractor shall file annually with the department documentation in support of independent contractor status before being granted a certificate of exemption. The independent contractor must obtain clearance from the department of state revenue before issuance of the certificate.

(f) An independent contractor shall pay a filing fee of five dollars ($5) with the statement required in subsection (d). The fees collected under this subsection shall be deposited into a special account in the state general fund known as the independent contractor information account. Money in the independent contractor information account is annually appropriated to the department for its use in carrying out the purposes of this section.

(g) The department shall keep each statement and supporting documentation received under this section on file and on request may verify that a certificate of exemption is on file.

(h) The certificate of exemption required by this section must be on a form prescribed and provided by the department. A certificate issued under this section is valid for one (1) year. The department shall maintain the original certificate on file.

(i) A certificate of exemption must certify the following information:

(1) That the independent contractor has worker's compensation coverage for the independent contractor's employees in accordance with IC 22-3-2 through IC 22-3-7.

(2) That the independent contractor desires to be exempt from being able to recover under the worker's compensation policy or self-insurance of a person for whom the independent contractor will perform work only as an independent contractor.

(j) The department shall provide the certificate of exemption to the person requesting it not less than seven (7) business days after verifying the accuracy of the supporting documentation. To be given effect, a certificate of exemption must be filed with the worker's compensation board of Indiana in accordance with IC 22-3-2-14.5(f) and IC 22-3-7-34.5(g).

(k) Not more than thirty (30) days after the department receives an independent contractor's statement and supporting documentation and issues a certificate of exemption, the department shall provide the independent contractor with an explanation of the department's tax treatment of independent contractors and the duty of the independent contractor to remit any taxes owed.

(l) The information received from an independent contractor's statement and supporting documentation is to be treated as confidential by the department and is to be used solely for the purposes of this section.

(m) A contractor who knowingly or intentionally causes or assists employees, including temporary employees, to file a false statement and supporting documentation of independent contractor status commits a Level 6 felony.

As added by P.L.75-1993, SEC.1. Amended by P.L.202-2001, SEC.1; P.L.158-2013, SEC.89.

IC 6-3-8Chapter 8. RepealedRepealed by P.L.192-2002(ss), SEC.191.

IC 6-3-8.1Chapter 8.1. Supplemental Net Income Tax Filings

6-3-8.1-1Application of chapter 6-3-8.1-2Provisions applying to imposition and collection of supplemental net income tax; filing of estimated tax return and final tax return 6-3-8.1-3Determination of supplemental net income tax; forms and procedures

IC 6-3-8.1-1Application of chapter Sec. 1. This chapter applies to a taxpayer that:

(1) was subject to the supplemental net income tax under IC 6-3-8 (before its repeal) before January 1, 2003; and

(2) has a taxable year that begins before January 1, 2003, and ends after December 31, 2002.

As added by P.L.220-2011, SEC.140.

IC 6-3-8.1-2Provisions applying to imposition and collection of supplemental net income tax; filing of estimated tax return and final tax return Sec. 2. Notwithstanding the repeal of IC 6-3-8-5 by P.L.192-2002(ss), the provisions of IC 6-3-8-5 (repealed) apply to the imposition, collection, payment, and administration of the supplemental net income tax imposed under this chapter, including the requirement related to filing the taxpayer's estimated supplemental net income tax return and paying the taxpayer's estimated supplemental net income tax liability to the department of state revenue. The taxpayer shall file a final supplemental net income tax return, in the manner prescribed by the department of state revenue, before the fifteenth day of the fourth month following the close of the taxpayer's regular taxable year, determined as if IC 6-3-8 had not been repealed by P.L.192-2002(ss).

As added by P.L.220-2011, SEC.140. Amended by P.L.6-2012, SEC.51.

IC 6-3-8.1-3Determination of supplemental net income tax; forms and procedures Sec. 3. (a) The supplemental net income tax imposed under IC 6-3-8 (repealed) for that taxable year is equal to the result determined under STEP TWO of the following formula:

STEP ONE: Determine the product of the taxpayer's net income for the taxpayer's regular taxable year multiplied by a tax rate equal to four and five-tenths percent (4.5%).

STEP TWO: Multiply the STEP ONE result by a fraction, the numerator of which is the number of days in the taxpayer's taxable year that occurred before January 1, 2003, and the denominator of which is the total number of days in the taxable year.

(b) The department of state revenue may prescribe forms and procedures for reconciling:

(1) the returns and tax due under P.L.192-2002(ss), SECTION 197, before the enactment of P.L.269-2003, SECTION 13; and

(2) the returns and tax due under P.L.192-2002(ss), SECTION 197, as amended by P.L.269-2003, SECTION 13.

The procedures may include procedures for granting an automatic extension for the filing of some or all returns that were due before April 16, 2003, under P.L.192-2002(ss), SECTION 197, before the enactment of P.L.269-2003, SECTION 13.

As added by P.L.220-2011, SEC.140. Amended by P.L.6-2012, SEC.52.

IC 6-3.1ARTICLE 3.1. STATE TAX LIABILITY CREDITS

Ch. 1.Definitions; Priority of Credits Ch. 2.Expired Ch. 3.Repealed Ch. 4.Research Expense Credits Ch. 5.Repealed Ch. 6.Repealed Ch. 7.Enterprise Zone Loan Interest Credit Ch. 8.Repealed Ch. 9.Neighborhood Assistance Credits Ch. 10.Enterprise Zone Investment Cost Credit Ch. 11.Industrial Recovery Tax Credit Ch. 11.5.Repealed Ch. 11.6.Repealed Ch. 12.Repealed Ch. 13.Economic Development for a Growing Economy Tax Credit Ch. 13.5.Repealed Ch. 14.Expired Ch. 15.Expired Ch. 16.Expired Ch. 16.1.Historic Rehabilitation Tax Credit Ch. 17.Repealed Ch. 17.1.Historic Rehabilitation Tax Credit Ch. 18.Individual Development Account Tax Credit Ch. 19.Community Revitalization Enhancement District Tax Credit Ch. 20.Income Tax Credit for Property Taxes Paid on Homesteads Ch. 21.Earned Income Tax Credit Ch. 22.Residential Historic Rehabilitation Credit Ch. 22.2.Repealed Ch. 23.Repealed Ch. 23.8.Repealed Ch. 24.Venture Capital Investment Tax Credit Ch. 25.2.Repealed Ch. 26.Hoosier Business Investment Tax Credit Ch. 27.Repealed Ch. 28.Repealed Ch. 29.Coal Gasification Technology Investment Tax Credit Ch. 30.Headquarters Relocation Tax Credit Ch. 30.5.School Scholarship Tax Credit Ch. 31.Expired Ch. 31.2.Expired Ch. 31.5.Repealed Ch. 31.9.Repealed Ch. 32.Expired Ch. 33.Repealed Ch. 34.Redevelopment Tax Credit Ch. 34.6.Tax Credit for Natural Gas Powered Vehicles Ch. 35.Affordable and Workforce Housing Tax Credit Ch. 35.8.Foster Care Support Tax Credit Ch. 36.Film and Media Production Tax Credit Ch. 37.2.Mine Reclamation Tax Credit Ch. 38.Health Reimbursement Arrangement Credit Ch. 38.1.Railroad Tax Credit for Qualified Infrastructure Investment Ch. 38.3.Employment of Individuals with Disability Tax Credit Ch. 39.5.Employer Child Care Expenditure Credits Ch. 40.Physician Practice Ownership Tax Credit Ch. 40.9.Attainable Homeownership Tax Credit Ch. 45.Small Modular Nuclear Reactor Manufacturing Expense Tax Credit

IC 6-3.1-1Chapter 1. Definitions; Priority of Credits

6-3.1-1-1Definitions; application 6-3.1-1-2Order of application 6-3.1-1-3Limitation on number of credits granted; election by taxpayer; election to carry forward certain tax credits 6-3.1-1-4Effect of repeal of tax credit statute on carrying over unused tax credits 6-3.1-1-5Riverboat building tax credit allowed despite repeal of tax credit statute if qualified investments certified before January 1, 2015

IC 6-3.1-1-1Definitions; application Sec. 1. Except as otherwise provided in this article, the definitions contained in IC 6-3-1 apply throughout this article.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-1-2Order of application Sec. 2. (a) The tax credits a taxpayer is entitled to shall be applied against the taxpayer's tax liabilities in the following order:

(1) First, credits which may not be refunded to a taxpayer nor carried over and applied against any tax liability for any succeeding taxable year.

(2) Second, credits which may not be refunded to a taxpayer, but which may be carried over and applied against any tax liability for any succeeding taxable year.

(3) Third, credits which will be refunded to a taxpayer to the extent the credit exceeds the tax liability it is to be applied against.

(b) Credits described in subsection (a)(2) shall be applied against a taxpayer's tax liabilities so that the credits which may be applied to the fewest succeeding taxable years are utilized first.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-1-3Limitation on number of credits granted; election by taxpayer; election to carry forward certain tax credits Sec. 3. (a) A taxpayer (as defined in the following laws), pass through entity (as defined in the following laws), or shareholder, partner, or member of a pass through entity may not be granted more than one (1) tax credit under the following laws for the same project:

(1) IC 6-3.1-10 (enterprise zone investment cost credit) (before its expiration).

(2) IC 6-3.1-11 (industrial recovery tax credit).

(3) IC 6-3.1-19 (community revitalization enhancement district tax credit).

(4) IC 6-3.1-24 (venture capital investment tax credit).

(5) IC 6-3.1-26 (Hoosier business investment tax credit).

If a taxpayer, pass through entity, or shareholder, partner, or member of a pass through entity has been granted more than one (1) tax credit for the same project, the taxpayer, pass through entity, or shareholder, partner, or member of a pass through entity must elect to apply only one (1) of the tax credits in the manner and form prescribed by the department.

(b) A taxpayer (as defined in the following laws), pass through entity (as defined in the following laws), or shareholder, partner, or member of a pass through entity that is entitled to one (1) or more tax credits under the following laws for a taxable year beginning after December 31, 2016, and ending before January 1, 2018, may elect to carry forward all or any portion of one (1) or more of those tax credits to the taxable year beginning after December 31, 2017, and ending before January 1, 2019:

(1) IC 6-3.1-10 (enterprise zone investment cost credit) (before its expiration).

(2) IC 6-3.1-11 (industrial recovery tax credit).

(3) IC 6-3.1-19 (community revitalization enhancement district tax credit).

(4) IC 6-3.1-24 (venture capital investment tax credit).

(5) IC 6-3.1-26 (Hoosier business investment tax credit).

A taxpayer, pass through entity, or shareholder, partner, or member of a pass through entity that wishes to carry forward all or any portion of a tax credit under this subsection must make an election to do so in the manner and form prescribed by the department on or before the taxpayer's due date for filing a return for the taxable year ending after December 31, 2017. This subsection does not affect the limitation set forth in subsection (a) for the taxable year beginning after December 31, 2017, and ending before January 1, 2019. This subsection expires on January 1, 2023.

As added by P.L.199-2005, SEC.17. Amended by P.L.223-2007, SEC.3; P.L.133-2012, SEC.52; P.L.288-2013, SEC.33; P.L.238-2017, SEC.19; P.L.214-2018(ss), SEC.10; P.L.214-2019, SEC.24.

IC 6-3.1-1-4Effect of repeal of tax credit statute on carrying over unused tax credits Sec. 4. Except as otherwise expressly provided, a taxpayer may carry forward any unused tax credit from a prior taxable year to a taxable year that begins after the repeal of the statute that provided the tax credit. However, any limits on:

(1) the amount carried forward; or

(2) the number of years to which an unused tax credit may be carried forward;

apply to any part of a tax credit carried forward under this section as if the statute allowing the unused tax credit to be carried forward had not been repealed.

As added by P.L.190-2014, SEC.14.

IC 6-3.1-1-5Riverboat building tax credit allowed despite repeal of tax credit statute if qualified investments certified before January 1, 2015 Sec. 5. (a) As used in this section, "qualified taxpayer" means a taxpayer whose proposed costs to build or refurbish a riverboat are certified before January 1, 2015, as qualified investments under IC 6-3.1-17 (before its repeal) by the Indiana economic development corporation.

(b) A qualified taxpayer may claim a tax credit for the taxable year in which the qualified investment described in subsection (a) is made regardless of whether the qualified investment is made in a taxable year beginning after December 31, 2014, as if IC 6-3.1-17 had not been repealed.

(c) To receive the credit allowed under this section, a qualified taxpayer must claim the credit on the qualified taxpayer's state tax return or returns in the manner prescribed by the department. The qualified taxpayer shall submit to the department the certification of credit by the Indiana economic development corporation, proof of payment of the certified qualified investment, and all information that the department determines is necessary for the calculation of the credit provided under IC 6-3.1-17 (before its repeal) and for the determination of whether an investment cost is a qualified investment cost.

(d) The amount of tax credits allowed under this section may not exceed one million dollars ($1,000,000) in a state fiscal year.

(e) The department shall record the time of filing of each application for allowance of a credit under subsection (c) and shall approve the applications, if they otherwise qualify for a tax credit under IC 6-3.1-17 (before its repeal), in the chronological order in which the applications are filed in the state fiscal year.

(f) When the total credits approved under this section equal the maximum amount allowable in a state fiscal year, no application thereafter filed for that same fiscal year shall be approved. However, if an applicant for whom a credit has been approved fails to file the statement of proof of payment required under subsection (c), an amount equal to the credit previously allowed or set aside for the applicant may be allowed to any subsequent applicant in the year. In addition, the department may, if the applicant so requests, approve a credit application, in whole or in part, with respect to the next succeeding state fiscal year.

As added by P.L.190-2014, SEC.15.

IC 6-3.1-2Chapter 2. ExpiredAs added by P.L.172-2011, SEC.61. Expired 1-1-2020 by P.L.172-2011, SEC.61.

IC 6-3.1-3Chapter 3. RepealedRepealed by P.L.28-1997, SEC.31.

IC 6-3.1-4Chapter 4. Research Expense Credits

6-3.1-4-1Definitions 6-3.1-4-2Amount of credit; computation 6-3.1-4-2.5Amount of credit; alternative computation 6-3.1-4-3Unused credits carried forward 6-3.1-4-4Application of Internal Revenue Code provisions 6-3.1-4-5Qualified research expenses; determination 6-3.1-4-6Federal credit expiration date inapplicable 6-3.1-4-7Pass through entity; shareholder, partner, or member 6-3.1-4-8Disclosure of reasons for not claiming the federal credit

IC 6-3.1-4-1Definitions Sec. 1. As used in this chapter:

"Base amount" means base amount (as defined in Section 41(c) of the Internal Revenue Code) modified by considering only Indiana qualified research expenses and gross receipts attributable to Indiana in the calculation of the taxpayer's:

(1) fixed base percentage; and

(2) average annual gross receipts.

"Indiana qualified research expense" means qualified research expense that is incurred for research conducted in Indiana.

"Qualified research expense" means qualified research expense (as defined in Section 41(b) of the Internal Revenue Code).

"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 limited liability company; or

(4) a limited liability partnership.

"Research expense tax credit" means a credit provided under this chapter against any tax otherwise due and payable under IC 6-3.

"Taxpayer" means an individual, a corporation, a limited liability company, a limited liability partnership, a trust, or a partnership that has any tax liability under IC 6-3 (adjusted gross income tax).

As added by P.L.51-1984, SEC.1. Amended by P.L.57-1990, SEC.1; P.L.8-1993, SEC.85; P.L.8-1996, SEC.7; P.L.192-2002(ss), SEC.86; P.L.193-2005, SEC.12; P.L.242-2015, SEC.21.

IC 6-3.1-4-2Amount of credit; computation Sec. 2. (a) A taxpayer who incurs Indiana qualified research expense in a particular taxable year is entitled to a research expense tax credit for the taxable year.

(b) For Indiana qualified research expense incurred before January 1, 2008, the amount of the research expense tax credit is equal to the product of ten percent (10%) multiplied by the remainder of:

(1) the taxpayer's Indiana qualified research expenses for the taxable year; minus

(2) the taxpayer's base amount.

(c) Except as provided in subsection (d), for Indiana qualified research expense incurred after December 31, 2007, the amount of the research expense tax credit is determined under STEP FOUR of the following formula:

STEP ONE: Subtract the taxpayer's base amount from the taxpayer's Indiana qualified research expense for the taxable year.

STEP TWO: Multiply the lesser of:

(A) one million dollars ($1,000,000); or

(B) the STEP ONE remainder;

by fifteen percent (15%).

STEP THREE: If the STEP ONE remainder exceeds one million dollars ($1,000,000), multiply the amount of that excess by ten percent (10%).

STEP FOUR: Add the STEP TWO and STEP THREE products.

(d) For Indiana qualified research expense incurred after December 31, 2009, a taxpayer may choose to have the amount of the research expense tax credit determined under this subsection rather than under subsection (c). At the election of the taxpayer, the amount of the taxpayer's research expense tax credit is equal to ten percent (10%) of the part of the taxpayer's Indiana qualified research expense for the taxable year that exceeds fifty percent (50%) of the taxpayer's average Indiana qualified research expense for the three (3) taxable years preceding the taxable year for which the credit is being determined. However, if the taxpayer did not have Indiana qualified research expense in any one (1) of the three (3) taxable years preceding the taxable year for which the credit is being determined, the amount of the research expense tax credit is equal to five percent (5%) of the taxpayer's Indiana qualified research expense for the taxable year.

As added by P.L.51-1984, SEC.1. Amended by P.L.53-1984, SEC.1; P.L.57-1990, SEC.2; P.L.192-2002(ss), SEC.87; P.L.193-2005, SEC.13; P.L.182-2009(ss), SEC.201.

IC 6-3.1-4-2.5Amount of credit; alternative computation Sec. 2.5. (a) The general assembly makes the following findings pertaining to this section:

(1) The aerospace industry is adversely affected by the calculation of qualified research expense credits under this chapter, based on the Internal Revenue Code's treatment of federal defense spending trends in the 1980s.

(2) This adverse impact creates a disincentive for making qualified research expenditures in Indiana.

(3) Manufacturers of aerospace and jet propulsion equipment have been a major in-state employer of science and engineering graduates from Indiana universities.

(4) The presence of a strong aerospace manufacturing base furthers the state's interest in maintaining the viability of a United States government military installation that is used for the design, construction, maintenance, and testing of electronic devices and ordnance.

(5) The creation of an alternative qualified research expense credit promotes vital state interests.

(b) This section applies only to a taxpayer that:

(1) is primarily engaged in the production of civil and military jet propulsion systems;

(2) is certified by the Indiana economic development corporation as an aerospace advanced manufacturer;

(3) is a United States Department of Defense contractor; and

(4) maintains one (1) or more manufacturing facilities in Indiana employing at least three thousand (3,000) employees in full-time employment positions that pay on average more than four hundred percent (400%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.

(c) A taxpayer that incurs Indiana qualified research expense in a particular taxable year may elect to calculate the research expense tax credit under this section instead of under section 2 of this chapter.

(d) An election under this section applies to the taxable year for which the election is made and all succeeding taxable years unless the election is revoked with the consent of the department. An election must be made in the manner and on the form prescribed by the department.

(e) A credit may be authorized by the Indiana economic development corporation and, if authorized, shall be equal to a percentage determined by the Indiana economic development corporation, not to exceed ten percent (10%), multiplied by:

(1) the taxpayer's Indiana qualified research expenses for the taxable year; minus

(2) fifty percent (50%) of the taxpayer's average Indiana qualified research expenses for the three (3) taxable years preceding the taxable year for which the credit is being determined.

(f) The credit amount determined in subsection (e) applies to the taxable year for which the determination is made and all succeeding taxable years unless the determination is changed by the Indiana economic development corporation. The duration of a determination made by the Indiana economic development corporation under subsection (e) shall be specified by the Indiana economic development corporation at the time of the determination.

As added by P.L.197-2005, SEC.1.

IC 6-3.1-4-3Unused credits carried forward Sec. 3. (a) The amount of the credit provided by this chapter that a taxpayer uses during a particular taxable year may not exceed the sum of the taxes imposed by IC 6-3 for the taxable year after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter. If the credit provided by this chapter exceeds that sum for the taxable year for which the credit is first claimed, then the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, it is to be reduced by the amount which was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for ten (10) taxable years following the unused credit year.

(b) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (a).

(c) A taxpayer is not entitled to any carryback or refund of any unused credit.

As added by P.L.51-1984, SEC.1. Amended by P.L.57-1990, SEC.3; P.L.192-2002(ss), SEC.88; P.L.193-2005, SEC.14.

IC 6-3.1-4-4Application of Internal Revenue Code provisions Sec. 4. The provisions of Section 41 of the Internal Revenue Code and the regulations promulgated in respect to those provisions are applicable to the interpretation and administration by the department of the credit provided by this chapter, including the allocation and pass through of the credit to various taxpayers and the transitional rules for determination of the base period.

As added by P.L.51-1984, SEC.1. Amended by P.L.57-1990, SEC.4; P.L.192-2002(ss), SEC.89; P.L.242-2015, SEC.22.

IC 6-3.1-4-5Qualified research expenses; determination Sec. 5. In prescribing standards for determining which qualified research expenses are considered Indiana qualified research expenses for purposes of computing the credit provided by this chapter, the department may consider:

(1) the place where the services are performed;

(2) the residence or business location of the person or persons performing the services;

(3) the place where qualified research supplies are consumed; and

(4) other factors that the department determines are relevant for the determination.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-4-6Federal credit expiration date inapplicable Sec. 6. Notwithstanding Section 41 of the Internal Revenue Code, the termination date in Section 41(h) of the Internal Revenue Code does not apply to a taxpayer who is eligible for the credit under this chapter for the taxable year in which the Indiana qualified research expense is incurred.

As added by P.L.51-1984, SEC.1. Amended by P.L.53-1984, SEC.2; P.L.57-1990, SEC.5; P.L.43-1992, SEC.10; P.L.76-1993, SEC.1; P.L.19-1994, SEC.9; P.L.8-1996, SEC.8; P.L.4-2000, SEC.13; P.L.192-2002(ss), SEC.90; P.L.224-2003, SEC.191; P.L.81-2004, SEC.12.

IC 6-3.1-4-7Pass through entity; shareholder, partner, or member Sec. 7. (a) If a pass through entity does not have state income tax liability against which the research expense tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a research expense tax credit equal to:

(1) the research expense 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a research expense tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim a credit under this chapter for the same qualified research expenses.

As added by P.L.57-1990, SEC.6. Amended by P.L.193-2005, SEC.15.

IC 6-3.1-4-8Disclosure of reasons for not claiming the federal credit Sec. 8. (a) If a taxpayer claims a credit for Indiana qualified research expenses under this chapter for a taxable year, the taxpayer must report to the department whether it has:

(1) determined a credit for those Indiana qualified research expenses under either Section 41(a)(1) of the Internal Revenue Code or Section 41(c)(4) of the Internal Revenue Code for that taxable year; and

(2) claimed the determined credit for those Indiana qualified research expenses under either Section 41(a)(1) of the Internal Revenue Code or Section 41(c)(4) of the Internal Revenue Code for that taxable year.

(b) If a taxpayer claims a credit for those qualified research expenses under this chapter for a taxable year and does not claim a credit for those qualified research expenses for federal tax purposes under Section 41(a)(1) of the Internal Revenue Code or Section 41(c)(4) of the Internal Revenue Code in that taxable year, the taxpayer must disclose to the department any reasons for not claiming the credit for those Indiana qualified research expenses for federal purposes for the taxable year. The disclosure under this subsection shall be made in the manner specified by the department.

(c) For purposes of IC 6-3-4-6 and IC 6-8.1-5-2, a change to the federal credit under Section 41(a)(1) of the Internal Revenue Code or Section 41(c)(4) of the Internal Revenue Code shall be considered a modification.

(d) The department may adopt rules under IC 4-22-2 governing this section.

As added by P.L.108-2019, SEC.121. Amended by P.L.93-2024, SEC.55.

IC 6-3.1-5Chapter 5. RepealedRepealed by P.L.254-2003, SEC.14.

IC 6-3.1-6Chapter 6. RepealedRepealed by P.L.190-2014, SEC.16.

IC 6-3.1-7Chapter 7. Enterprise Zone Loan Interest Credit

6-3.1-7-1Definitions 6-3.1-7-2Eligible taxpayers; amount of credit; pass through entities 6-3.1-7-3Credit carryover 6-3.1-7-4Credit; allocation to state tax liability 6-3.1-7-5Claiming of credit on annual state tax return 6-3.1-7-6Disallowance of credit 6-3.1-7-7Tax credit report 6-3.1-7-8Program expiration; treatment of credit carryovers

IC 6-3.1-7-1Definitions Sec. 1. As used in this chapter:

"Enterprise zone" means an enterprise zone created under IC 5-28-15.

"Pass through entity" means a:

(1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);

(2) partnership;

(3) trust;

(4) limited liability company; or

(5) limited liability partnership.

"Qualified loan" means a loan made to an entity that uses the loan proceeds for:

(1) a purpose that is directly related to a business located in an enterprise zone;

(2) an improvement that increases the assessed value of real property located in an enterprise zone; or

(3) rehabilitation, repair, or improvement of a residence.

"State tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

"Taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability. The term includes a pass through entity.

As added by P.L.51-1984, SEC.1. Amended by P.L.9-1986, SEC.7; P.L.80-1989, SEC.8; P.L.347-1989(ss), SEC.15; P.L.8-1993, SEC.87; P.L.120-1999, SEC.4; P.L.192-2002(ss), SEC.97; P.L.4-2005, SEC.51; P.L.154-2020, SEC.11.

IC 6-3.1-7-2Eligible taxpayers; amount of credit; pass through entities Sec. 2. (a) A taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year if the taxpayer:

(1) receives interest on a qualified loan in that taxable year;

(2) provides the assistance to urban enterprise associations required from zone businesses under IC 5-28-15-5.7(b); and

(3) complies with any requirements adopted by the board of the Indiana economic development corporation under IC 5-28-15 for taxpayers claiming the credit under this chapter.

However, if a taxpayer is located outside of an enterprise zone, subdivision (3) does not require the taxpayer to reinvest its incentives under this section within the enterprise zone, except as provided in subdivision (2).

(b) The amount of the credit to which a taxpayer is entitled under this section is five percent (5%) multiplied by the amount of interest received by the taxpayer during the taxable year from qualified loans.

(c) If a pass through entity is entitled to a credit under subsection (a) 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.51-1984, SEC.1. Amended by P.L.120-1999, SEC.5; P.L.73-2000, SEC.2; P.L.4-2005, SEC.52; P.L.146-2018, SEC.20.

IC 6-3.1-7-3Credit carryover Sec. 3. (a) If the amount determined under section 2(b) of this chapter for a particular taxpayer and a particular taxable year exceeds the taxpayer's state tax liability for that taxable year, then the taxpayer may carry the excess over to the immediately succeeding taxable years. Except as provided in subsection (b), the credit carryover may not be used for any taxable year that begins more than ten (10) years after the date on which the qualified loan from which the credit results is made. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(b) Notwithstanding subsection (a), if a loan is a qualified loan as the result of the use of the loan proceeds in a particular enterprise zone, and if the phase-out period of that enterprise zone terminates in a taxable year that succeeds the last taxable year in which a taxpayer is entitled to use credit carryover that results from that loan under subsection (a), then the taxpayer may use the credit carryover for any taxable year up to and including the taxable year in which the phase-out period of the enterprise zone terminates.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-7-4Credit; allocation to state tax liability Sec. 4. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:

(1) First, against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.

(2) Second, against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) or nonprofit agricultural organization health coverage tax liability (IC 6-8-15) for the taxable year.

(3) Third, against the taxpayer's financial institutions tax liability (IC 6-5.5) for the taxable year.

(b) If the tax paid by the taxpayer under a tax provision listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.

As added by P.L.51-1984, SEC.1. Amended by P.L.80-1989, SEC.9; P.L.192-2002(ss), SEC.98; P.L.154-2020, SEC.12.

IC 6-3.1-7-5Claiming of credit on annual state tax return Sec. 5. To receive the credit provided by this chapter, a taxpayer must claim the credit on his 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 chapter and for the determination of whether a loan is a qualified loan.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-7-6Disallowance of credit Sec. 6. (a) If the department determines that the proceeds from a loan are used for a purpose other than the purpose stated at the time a credit was claimed under this chapter for interest on that loan, and if that stated purpose caused the department to designate the loan as a qualified loan, then the department shall disallow the credit allowed under this chapter for interest on that loan.

(b) A taxpayer shall pay to the department the amount of any credit disallowed under this section.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-7-7Tax credit report Sec. 7. The department shall annually compile and report to the Indiana economic development corporation the following information:

(1) The number of tax credits claimed under this chapter for returns processed during the preceding state fiscal year.

(2) The total amount of the claims for tax credits described in subdivision (1).

(3) For each enterprise zone, the number and amount of the claims for tax credits described in subdivision (1) that are attributable to loans made to businesses located in the enterprise zone.

As added by P.L.214-2005, SEC.17.

IC 6-3.1-7-8Program expiration; treatment of credit carryovers Sec. 8. (a) Notwithstanding any other law, a taxpayer is not entitled to receive a credit under this chapter for interest received on a qualified loan made after December 31, 2017. However, this section may not be construed to prevent a taxpayer from carrying an unused tax credit attributable to a qualified loan made before January 1, 2018, forward to a taxable year beginning after December 31, 2017, and before January 1, 2028, in the manner provided by section 3 of this chapter.

(b) This chapter expires January 1, 2028.

As added by P.L.238-2017, SEC.20.

IC 6-3.1-8Chapter 8. RepealedRepealed by P.L.1-1993, SEC.39.

IC 6-3.1-9Chapter 9. Neighborhood Assistance Credits

6-3.1-9-1Definitions 6-3.1-9-2Eligible persons; application for allocation of tax credits; approval 6-3.1-9-3Amount of credit; application; pass through entities; shareholders or partners of firms without tax liability 6-3.1-9-4Documentation for credit; form; contents; priority notification of credit allowable 6-3.1-9-5Amount of tax credits allowed 6-3.1-9-6Allowable years of credit

IC 6-3.1-9-1Definitions Sec. 1. (a) As used in this chapter, "authority" means the Indiana housing and community development authority established by IC 5-20-1-3.

(b) As used in this chapter, "business firm" means any business entity authorized to do business in the state of Indiana that has state tax liability.

(c) As used in this chapter, "community services" means any type of:

(1) counseling and advice;

(2) emergency assistance;

(3) medical care;

(4) recreational facilities;

(5) housing facilities; or

(6) economic development assistance;

provided to individuals, economically disadvantaged households, groups, or neighborhood organizations in an economically disadvantaged area or provided to individuals who are ex-offenders who have completed the individuals' criminal sentences or are serving a term of probation or parole.

(d) As used in this chapter, "crime prevention" means any activity which aids in the reduction of crime in an economically disadvantaged area or an economically disadvantaged household.

(e) As used in this chapter, "economically disadvantaged area" means an enterprise zone, or any other federally or locally designated economically disadvantaged area in Indiana. The certification shall be made on the basis of current indices of social and economic conditions, which shall include but not be limited to the median per capita income of the area in relation to the median per capita income of the state or standard metropolitan statistical area in which the area is located.

(f) As used in this chapter, "economically disadvantaged household" means a household with an annual income that is at or below eighty percent (80%) of the area median income or any other federally designated target population.

(g) As used in this chapter, "education" means any type of scholastic instruction or scholarship assistance to an individual who:

(1) resides in an economically disadvantaged area; or

(2) is an ex-offender who has completed the individual's criminal sentence or is serving a term of probation or parole;

that enables the individual to prepare for better life opportunities.

(h) As used in this chapter, "enterprise zone" means an enterprise zone created under IC 5-28-15.

(i) As used in this chapter, "job training" means any type of instruction to an individual who:

(1) resides in:

(A) an economically disadvantaged area; or

(B) an economically disadvantaged household; or

(2) is an ex-offender who has completed the individual's criminal sentence or is serving a term of probation or parole;

that enables the individual to acquire vocational skills so that the individual can become employable or be able to seek a higher grade of employment.

(j) As used in this chapter, "neighborhood assistance" means either:

(1) furnishing financial assistance, labor, material, and technical advice to aid in the physical or economic improvement of any part or all of an economically disadvantaged area; or

(2) furnishing technical advice to promote higher employment in any neighborhood in Indiana.

(k) As used in this chapter, "neighborhood organization" means any organization, including but not limited to a nonprofit development corporation doing both of the following:

(1) Performing community services:

(A) in an economically disadvantaged area;

(B) for an economically disadvantaged household; or

(C) for individuals who are ex-offenders who have completed the individuals' criminal sentences or are serving a term of probation or parole.

(2) Holding a ruling:

(A) from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code; and

(B) from the department of state revenue that the organization is exempt from income taxation under IC 6-2.5-5-21.

(l) As used in this chapter, "person" means any individual subject to Indiana adjusted gross income tax.

(m) As used in this chapter, "state fiscal year" means a twelve (12) month period beginning on July 1 and ending on June 30.

(n) As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and

(2) IC 6-5.5 (the financial institutions 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 chapter.

(o) As used in this chapter, "tax credit" means a deduction from any tax otherwise due and payable under IC 6-3 or IC 6-5.5.

As added by P.L.51-1984, SEC.1. Amended by P.L.21-1990, SEC.12; P.L.25-1993, SEC.10; P.L.192-2002(ss), SEC.99; P.L.4-2005, SEC.53; P.L.235-2005, SEC.95; P.L.1-2006, SEC.140; P.L.181-2006, SEC.44; P.L.1-2007, SEC.54; P.L.166-2014, SEC.11; P.L.124-2024, SEC.14.

IC 6-3.1-9-2Eligible persons; application for allocation of tax credits; approval Sec. 2. (a) Each state fiscal year, a neighborhood organization that engages in the activities of providing:

(1) neighborhood assistance, job training, or education for individuals not employed by the business firm or person;

(2) community services or crime prevention in an economically disadvantaged area; or

(3) community services, education, or job training services to individuals who are ex-offenders who have completed the individuals' criminal sentences or are serving a term of probation or parole;

may apply to the authority for an allocation of state tax credits available under this chapter to be used to provide a tax credit to a business firm or person that contributes to a program involving one (1) or more of the activities described in subdivisions (1) through (3).

(b) The authority, after consultation with the commissioner of revenue, may adopt rules for the approval or disapproval of these applications.

(c) A business firm or a person that contributes to the fund of a neighborhood organization that has been approved by the authority for an allocation of tax credits as described in subsection (a) shall receive a tax credit as provided in section 3 of this chapter if the neighborhood organization has agreed to issue a portion of the tax credits allocated to the neighborhood organization by the authority to the business firm or person.

As added by P.L.51-1984, SEC.1. Amended by P.L.4-2005, SEC.54; P.L.235-2005, SEC.96; P.L.1-2006, SEC.141; P.L.181-2006, SEC.45; P.L.1-2007, SEC.55; P.L.166-2014, SEC.12; P.L.124-2024, SEC.15.

IC 6-3.1-9-3Amount of credit; application; pass through entities; shareholders or partners of firms without tax liability Sec. 3. (a) Subject to the limitations provided in subsection (b) and sections 4, 5, and 6 of this chapter, the department shall grant a tax credit against any state tax liability due equal to fifty percent (50%) of the amount contributed by a business firm or person in a program the application for which was approved under section 2 of this chapter.

(b) The credit provided by this chapter shall only be applied against any state tax liability owed by the taxpayer after the application of any credits, which under IC 6-3.1-1-2 must be applied before the credit provided by this chapter. In addition, the tax credit which a taxpayer receives under this chapter may not exceed twenty-five thousand dollars ($25,000) for any taxable year of the taxpayer.

(c) If a business firm that is:

(1) exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or

(2) a partnership;

does not have any tax liability against which the credit provided by this section may be applied, a shareholder or a partner of the business firm is entitled to a credit against the shareholder's or the partner's liability under the adjusted gross income tax.

(d) The amount of the credit provided by this section is equal to:

(1) the tax credit determined for the business firm for the taxable year under subsection (a); multiplied by

(2) the percentage of the business firm's distributive income to which the shareholder or the partner is entitled.

The credit provided by this section is in addition to any credit to which a shareholder or partner is otherwise entitled under this chapter. However, a business firm and a shareholder or partner of that business firm may not claim a credit under this chapter for the same contribution.

As added by P.L.51-1984, SEC.1. Amended by P.L.25-1993, SEC.11; P.L.1-1994, SEC.29; P.L.192-2002(ss), SEC.100; P.L.124-2024, SEC.16.

IC 6-3.1-9-4Documentation for credit; form; contents; priority notification of credit allowable Sec. 4. (a) The neighborhood organization, on behalf of any business firm or person which desires to claim a tax credit as provided in this chapter, shall file with the authority, in the form that the authority may prescribe, documentation stating the amount of the contribution that would qualify for a tax credit, and the amount allocated to the business firm or person to be claimed as a credit.

(b) The authority shall give priority in issuing tax credits to neighborhood organizations whose programs directly benefit enterprise zones.

(c) The department shall promptly notify a business firm or person whether, or the extent to which, the tax credit is allowable in the state fiscal year in which the tax return claiming the credit is filed, as provided in section 5 of this chapter.

(d) The department shall consider documentation from the authority as proof of payment, setting forth that the amount to be claimed as a credit under this chapter has been paid to an organization for an approved program or purpose, or permanently set aside in a special account to be used solely for an approved program or purpose.

As added by P.L.51-1984, SEC.1. Amended by P.L.4-2005, SEC.55; P.L.235-2005, SEC.97; P.L.1-2006, SEC.142; P.L.181-2006, SEC.46; P.L.1-2007, SEC.56; P.L.124-2024, SEC.17.

IC 6-3.1-9-5Amount of tax credits allowed Sec. 5. (a) The amount of tax credits allowed under this chapter may not exceed two million five hundred thousand dollars ($2,500,000) in the state fiscal year beginning July 1, 1997, and ending June 30, 1998, and each state fiscal year thereafter.

(b) The department shall record the time of filing of each tax return claiming the credit under section 4 of this chapter and shall approve the credit if the business firm or person otherwise qualifies for a tax credit under this chapter, in the chronological order in which the tax return claiming the credit is filed in the state fiscal year.

(c) When the total credits approved under this section equal the maximum amount allowable in any state fiscal year, no credits thereafter filed for that same fiscal year shall be approved.

As added by P.L.51-1984, SEC.1. Amended by P.L.95-1995, SEC.1; P.L.64-1997, SEC.1; P.L.124-2024, SEC.18.

IC 6-3.1-9-6Allowable years of credit Sec. 6. A tax credit shall be allowable under this chapter only for the taxable year of the taxpayer in which the contribution qualifying for the credit is paid or permanently set aside in a special account for the approved program or purpose.

As added by P.L.51-1984, SEC.1.

IC 6-3.1-10Chapter 10. Enterprise Zone Investment Cost Credit

6-3.1-10-1"Enterprise zone" defined 6-3.1-10-1.7"Pass through entity" defined 6-3.1-10-2"Qualified investment" defined 6-3.1-10-2.5"SIC Manual" defined 6-3.1-10-3"State tax liability" defined 6-3.1-10-4"Taxpayer" defined 6-3.1-10-5"Transfer ownership" defined 6-3.1-10-6Credit for qualified investment; amount 6-3.1-10-6.5Pass through entity; credit 6-3.1-10-7Carryover of excess credit 6-3.1-10-8Qualifying for credit; request for determination; findings; certification of credit percentage; application of credit on transfer of ownership 6-3.1-10-9Claiming credit 6-3.1-10-10Program expiration; treatment of credit carryovers

IC 6-3.1-10-1"Enterprise zone" defined Sec. 1. As used in this chapter, "enterprise zone" means an enterprise zone created under IC 5-28-15.

As added by P.L.9-1986, SEC.8. Amended by P.L.4-2005, SEC.56.

IC 6-3.1-10-1.7"Pass through entity" defined Sec. 1.7. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.57-1996, SEC.1.

IC 6-3.1-10-2"Qualified investment" defined Sec. 2. As used in this chapter, "qualified investment" means the purchase of an ownership interest in a business located in an enterprise zone if the purchase is approved by the Indiana economic development corporation under section 8 of this chapter.

As added by P.L.9-1986, SEC.8. Amended by P.L.379-1987(ss), SEC.8; P.L.4-2005, SEC.57.

IC 6-3.1-10-2.5"SIC Manual" defined Sec. 2.5. As used in this chapter, "SIC Manual" refers to the current edition of the Standard Industrial Classification Manual of the United States Office of Management and Budget.

As added by P.L.379-1987(ss), SEC.9. Amended by P.L.24-1995, SEC.23.

IC 6-3.1-10-3"State tax liability" defined Sec. 3. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income 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 chapter.

As added by P.L.9-1986, SEC.8.

IC 6-3.1-10-4"Taxpayer" defined Sec. 4. (a) As used in this chapter, "taxpayer" means any individual that has any state tax liability.

(b) Notwithstanding subsection (a), for a credit for a qualified investment in a business located in an enterprise zone in a county having a population of more than one hundred thousand (100,000) and less than one hundred ten thousand (110,000), "taxpayer" includes a pass through entity.

As added by P.L.9-1986, SEC.8. Amended by P.L.24-1995, SEC.24; P.L.57-1996, SEC.2; P.L.170-2002, SEC.23; P.L.104-2022, SEC.27.

IC 6-3.1-10-5"Transfer ownership" defined Sec. 5. As used in this chapter, "transfer ownership" means to purchase existing investment in a business, including real property, improvements to real property, or equipment.

As added by P.L.9-1986, SEC.8.

IC 6-3.1-10-6Credit for qualified investment; amount Sec. 6. (a) A taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year if the taxpayer makes a qualified investment in that taxable year.

(b) The amount of the credit to which a taxpayer is entitled is the percentage determined under section 8 of this chapter multiplied by the price of the qualified investment made by the taxpayer during the taxable year.

As added by P.L.9-1986, SEC.8.

IC 6-3.1-10-6.5Pass through entity; credit Sec. 6.5. (a) If a pass through entity is entitled to a credit under section 6 of this chapter but does not have state tax liability against which the tax credit may be applied, an individual who is a shareholder, partner, 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and an individual who is a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same investment.

As added by P.L.57-1996, SEC.3.

IC 6-3.1-10-7Carryover of excess credit Sec. 7. (a) If the amount determined under section 6(b) of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(b) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.9-1986, SEC.8.

IC 6-3.1-10-8Qualifying for credit; request for determination; findings; certification of credit percentage; application of credit on transfer of ownership Sec. 8. (a) To be entitled to a credit, a taxpayer must request the Indiana economic development corporation to determine:

(1) whether a purchase of an ownership interest in a business located in an enterprise zone is a qualified investment; and

(2) the percentage credit to be allowed.

The request must be made before a purchase is made.

(b) The Indiana economic development corporation shall find that a purchase is a qualified investment if:

(1) the business is viable;

(2) the business has not been disqualified from enterprise zone incentives or benefits under IC 5-28-15;

(3) the taxpayer has a legitimate purpose for purchase of the ownership interest;

(4) the purchase would not be made unless a credit is allowed under this chapter; and

(5) the purchase is critical to the commencement, enhancement, or expansion of business operations in the zone and will not merely transfer ownership, and the purchase proceeds will be used only in business operations in the enterprise zone.

The Indiana economic development corporation may delay making a finding under this subsection if, at the time the request is filed under subsection (a), an urban enterprise zone association has made a recommendation that the business be disqualified from enterprise zone incentives or benefits under IC 5-28-15 and the board of the Indiana economic development corporation has not acted on that request. The delay by the Indiana economic development corporation may not last for more than sixty (60) days.

(c) If the Indiana economic development corporation finds that a purchase is a qualified investment, the Indiana economic development corporation shall certify the percentage credit to be allowed under this chapter based upon the following:

(1) A percentage credit of ten percent (10%) may be allowed based upon the need of the business for equity financing, as demonstrated by the inability of the business to obtain debt financing.

(2) A percentage credit of two percent (2%) may be allowed for business operations in the retail, professional, or warehouse/distribution codes of the SIC Manual.

(3) A percentage credit of five percent (5%) may be allowed for business operations in the manufacturing codes of the SIC Manual.

(4) A percentage credit of five percent (5%) may be allowed for high technology business operations (as defined in IC 5-28-15-1).

(5) A percentage credit may be allowed for jobs created during the twelve (12) month period following the purchase of an ownership interest in the zone business, as determined under the following table:

JOBS CREATED

PERCENTAGE

Less than 11 jobs

11 to 25 jobs

26 to 40 jobs

41 to 75 jobs

More than 75 jobs

(6) A percentage credit of five percent (5%) may be allowed if fifty percent (50%) or more of the jobs created in the twelve (12) month period following the purchase of an ownership interest in the zone business will be reserved for zone residents.

(7) A percentage credit may be allowed for investments made in real or depreciable personal property, as determined under the following table:

AMOUNT OF INVESTMENT

PERCENTAGE

Less than $25,001

$25,001 to $50,000

$50,001 to $100,000

$100,001 to $200,000

More than $200,000

The total percentage credit may not exceed thirty percent (30%).

(d) If all or a part of a purchaser's intent is to transfer ownership, the tax credit shall be applied only to that part of the investment that relates directly to the enhancement or expansion of business operations at the zone location.

As added by P.L.9-1986, SEC.8. Amended by P.L.379-1987(ss), SEC.10; P.L.289-2001, SEC.13; P.L.4-2005, SEC.58; P.L.237-2017, SEC.42.

IC 6-3.1-10-9Claiming credit Sec. 9. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certification of the percentage credit by the Indiana economic development corporation and all information that the department of state revenue determines is necessary for the calculation of the credit provided by this chapter and for the determination of whether an investment cost is a qualified investment cost.

As added by P.L.9-1986, SEC.8. Amended by P.L.4-2005, SEC.59.

IC 6-3.1-10-10Program expiration; treatment of credit carryovers Sec. 10. (a) Notwithstanding any other law and except as provided in subsection (b), a taxpayer is entitled to receive a credit under this chapter only for a qualified investment made before January 1, 2018.

(b) A taxpayer is entitled to receive a credit for a qualified investment made after December 31, 2017, and before January 1, 2028, if the qualified investment is approved by the Indiana economic development corporation before January 1, 2018.

(c) This section may not be construed to prevent a taxpayer from carrying an unused tax credit attributable to a qualified investment made before January 1, 2018, or made as provided in subsection (b) forward to a taxable year beginning after December 31, 2017, and before January 1, 2028, in the manner provided by section 7 of this chapter.

(d) This chapter expires January 1, 2028.

As added by P.L.238-2017, SEC.21.

IC 6-3.1-11Chapter 11. Industrial Recovery Tax Credit

6-3.1-11-1"Applicable percentage" 6-3.1-11-2Repealed 6-3.1-11-2.5"Corporation" 6-3.1-11-3Repealed 6-3.1-11-4"Floor space" 6-3.1-11-5"Industrial recovery site" 6-3.1-11-6Repealed 6-3.1-11-7Repealed 6-3.1-11-8"Placed in service" 6-3.1-11-9"Plant" 6-3.1-11-10"Qualified investment" 6-3.1-11-11"Rehabilitation" 6-3.1-11-12"State tax liability" 6-3.1-11-13"Taxpayer" 6-3.1-11-14"Vacant" 6-3.1-11-15Repealed 6-3.1-11-16Credit for qualified investment; computation of amount; assignment of credit 6-3.1-11-17Carryover of excess credit; carryback or refund of unused credit barred 6-3.1-11-18Repealed 6-3.1-11-18.5Application to enter into agreement with the corporation 6-3.1-11-19Evaluation of applications; factors considered; additional requirements for certain industrial recovery sites 6-3.1-11-19.5Requirement that applicant enter into agreement with the corporation as a condition of receiving tax credit 6-3.1-11-20Repealed 6-3.1-11-21Disqualification to claim credit due to substantial reduction or cessation of operations in Indiana; determination 6-3.1-11-22Application of credit against taxes owed; order; computation 6-3.1-11-23Claiming of credit on annual tax return; certification; required information 6-3.1-11-24Pass through entities 6-3.1-11-25Expiration

IC 6-3.1-11-1"Applicable percentage" Sec. 1. As used in this chapter, "applicable percentage" means the percentage determined as follows:

(1) If a plant was placed in service at least fifteen (15) years ago but less than thirty (30) years ago, the applicable percentage is fifteen percent (15%).

(2) If a plant was placed in service at least thirty (30) years ago but less than forty (40) years ago, the applicable percentage is twenty percent (20%).

(3) If a plant was placed in service at least forty (40) years ago, the applicable percentage is twenty-five percent (25%).

The time that has expired since a plant was placed in service shall be determined as of the date that an application is filed with the corporation. However, in the case of an industrial recovery site described in section 5(2) of this chapter, the time that has expired since a plant was placed in service shall be determined as of the date on which the demolition of the vacant plant was completed.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.113-2011, SEC.1; P.L.288-2013, SEC.34; P.L.204-2016, SEC.16.

IC 6-3.1-11-2RepealedAs added by P.L.379-1987(ss), SEC.11. Amended by P.L.4-2005, SEC.60. Repealed by P.L.288-2013, SEC.35.

IC 6-3.1-11-2.5"Corporation" Sec. 2.5. As used in this chapter, "corporation" refers to the Indiana economic development corporation created under IC 5-28-3 unless the context clearly denotes otherwise.

As added by P.L.288-2013, SEC.36.

IC 6-3.1-11-3RepealedAs added by P.L.379-1987(ss), SEC.11. Repealed by P.L.204-2016, SEC.17.

IC 6-3.1-11-4"Floor space" Sec. 4. As used in this chapter, "floor space" means the usable interior floor space of a building.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-5"Industrial recovery site" Sec. 5. As used in this chapter, "industrial recovery site" means land on which a vacant plant having at least one hundred thousand (100,000) square feet of total floor space:

(1) exists as of the date an application is filed with the corporation under this chapter and was placed in service at least fifteen (15) years before the date on which an application is filed with the corporation under this chapter; or

(2) existed within five (5) years before the date an application is filed with the corporation under this chapter and was placed in service at least fifteen (15) years before the date on which the demolition of the vacant plant was completed.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.204-2016, SEC.18.

IC 6-3.1-11-6RepealedAs added by P.L.379-1987(ss), SEC.11. Repealed by P.L.204-2016, SEC.19.

IC 6-3.1-11-7RepealedAs added by P.L.379-1987(ss), SEC.11. Repealed by P.L.204-2016, SEC.20.

IC 6-3.1-11-8"Placed in service" Sec. 8. As used in this chapter, "placed in service" means that property is placed in a condition or state of readiness and availability for a specifically assigned function. In the case of a plant comprised of a complex of buildings, the entire plant shall be considered to have been placed in service as of the date that a building was placed in service if the building has floor space that, when aggregated with the floor space of all buildings in the complex placed in service on earlier dates, exceeds fifty percent (50%) of the total floor space of all buildings in the complex.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-9"Plant" Sec. 9. As used in this chapter, "plant" means a building or complex of buildings used, or designed and constructed for use, in production, manufacturing, fabrication, assembly, processing, refining, finishing, or warehousing of tangible personal property, whether the tangible personal property is or was for sale to third parties or for use by the owner in the owner's business.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-10"Qualified investment" Sec. 10. As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures for rehabilitation of property located within an industrial recovery site.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.37.

IC 6-3.1-11-11"Rehabilitation" Sec. 11. As used in this chapter, "rehabilitation" means the remodeling, repair, or betterment of real property in any manner or any enlargement or extension of real property.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-12"State tax liability" Sec. 12. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.80-1989, SEC.10; P.L.347-1989(ss), SEC.16; P.L.192-2002(ss), SEC.101; P.L.154-2020, SEC.13.

IC 6-3.1-11-13"Taxpayer" Sec. 13. As used in this chapter, "taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability and that is the owner or developer of an industrial recovery site. The term includes an assignee that is assigned some part of a credit under section 16(c) of this chapter.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.8-1993, SEC.89; P.L.8-1996, SEC.9; P.L.74-2020, SEC.7.

IC 6-3.1-11-14"Vacant" Sec. 14. As used in this chapter, "vacant" means with respect to a plant that at least seventy-five percent (75%) of the plant placed in service is not used to carry on production, manufacturing, assembly, processing, refining, finishing, or warehousing of tangible personal property.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-15RepealedAs added by P.L.379-1987(ss), SEC.11. Amended by P.L.26-2004, SEC.1; P.L.113-2011, SEC.2; P.L.288-2013, SEC.38. Repealed by P.L.204-2016, SEC.21.

IC 6-3.1-11-16Credit for qualified investment; computation of amount; assignment of credit Sec. 16. (a) Subject to entering into an agreement with the corporation under section 19.5 of this chapter and subject to section 21 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year if the taxpayer makes a qualified investment as certified by the corporation for that year.

(b) The amount of the credit to which a taxpayer is entitled is the qualified investment made by the taxpayer and certified by the corporation for a taxable year multiplied by the applicable percentage.

(c) The taxpayer may assign any part of the credit that the taxpayer may claim under this chapter. A credit that is assigned under this subsection remains subject to this chapter. If a taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another taxpayer. Nothing in this subsection shall prohibit a taxpayer from making more than one (1) assignment of any part of the credit, but a taxpayer may not assign the same part of a credit more than once.

(d) Before a credit may be assigned, the taxpayer must notify the corporation of the assignment of the credit in the manner prescribed by the corporation. An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and the assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of the part of the credit assigned.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.8-1996, SEC.10; P.L.204-2016, SEC.22; P.L.74-2020, SEC.8; P.L.154-2020, SEC.14.

IC 6-3.1-11-17Carryover of excess credit; carryback or refund of unused credit barred Sec. 17. (a) If the amount determined under section 16(b) of this chapter for a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the immediately following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(b) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.379-1987(ss), SEC.11.

IC 6-3.1-11-18RepealedAs added by P.L.379-1987(ss), SEC.11. Repealed by P.L.288-2013, SEC.39.

IC 6-3.1-11-18.5Application to enter into agreement with the corporation Sec. 18.5. (a) A taxpayer that proposes to make qualified investments on an industrial recovery site as provided under this chapter may apply to the corporation to enter into an agreement for a tax credit under this chapter.

(b) The corporation shall prescribe the form of the application.

As added by P.L.204-2016, SEC.23.

IC 6-3.1-11-19Evaluation of applications; factors considered; additional requirements for certain industrial recovery sites Sec. 19. (a) The corporation shall consider the following factors in evaluating applications filed under this chapter:

(1) The level of distress in the surrounding community caused by the loss of jobs at the industrial recovery site.

(2) Evidence of support for the designation by residents, businesses, and private organizations in the surrounding community.

(3) Evidence of a commitment by private or governmental entities to assist in the financing of improvements or redevelopment activities benefiting the industrial recovery site.

(4) Whether the industrial recovery site is within an economic revitalization area designated under IC 6-1.1-12.1.

(b) The corporation may not approve an application to receive tax credits under this chapter for qualified investments made on an industrial recovery site described in section 5(2) of this chapter unless the applicant can demonstrate that the plant was not maintained and was removed from the site in an effort to protect the health, safety, and welfare of the community.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.146-2008, SEC.324; P.L.288-2013, SEC.40; P.L.204-2016, SEC.24.

IC 6-3.1-11-19.5Requirement that applicant enter into agreement with the corporation as a condition of receiving tax credit Sec. 19.5. If the corporation approves an application under this chapter, the corporation shall require the applicant to enter into an agreement with the corporation as a condition of receiving a tax credit under this chapter.

As added by P.L.204-2016, SEC.25.

IC 6-3.1-11-20RepealedAs added by P.L.379-1987(ss), SEC.11. Repealed by P.L.288-2013, SEC.41.

IC 6-3.1-11-21Disqualification to claim credit due to substantial reduction or cessation of operations in Indiana; determination Sec. 21. A taxpayer is not entitled to claim the credit provided by this chapter if the corporation determines that the taxpayer has substantially reduced or ceased its operations in Indiana in order to relocate them within the industrial recovery site. A determination that a taxpayer is not entitled to the credit provided by this chapter as a result of a substantial reduction or cessation of operations applies to credits that would otherwise arise in the taxable year in which the substantial reduction or cessation occurs and in all subsequent years.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.42.

IC 6-3.1-11-22Application of credit against taxes owed; order; computation Sec. 22. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:

(1) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.

(2) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) or nonprofit agricultural organization health coverage tax (IC 6-8-15) for the taxable year.

(3) Against the taxpayer's financial institutions tax (IC 6-5.5) for the taxable year.

(b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.80-1989, SEC.11; P.L.347-1989(ss), SEC.17; P.L.1-1990, SEC.79; P.L.192-2002(ss), SEC.102; P.L.1-2003, SEC.37; P.L.154-2020, SEC.15.

IC 6-3.1-11-23Claiming of credit on annual tax return; certification; required information Sec. 23. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certification of the corporation stating the percentage of credit allowable under this chapter and all other information that the department determines is necessary for the calculation of the credit provided by this chapter and for the determination of whether an expenditure was for a qualified investment.

As added by P.L.379-1987(ss), SEC.11. Amended by P.L.288-2013, SEC.43.

IC 6-3.1-11-24Pass through entities Sec. 24. (a) If a pass through entity does not have state income tax liability against which the tax credit provided by this chapter may be applied, a shareholder, partner, 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter.

(c) Notwithstanding subsections (a) and (b), a pass through entity (other than an entity described in IC 6-3-1-35(1)) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. Such agreements shall be filed with the corporation not later than fifteen (15) days after execution. The pass through entity shall also provide a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department of state revenue. However, this subsection applies only to a project that is located in a redevelopment project area, an economic development area, or an urban renewal project area and that includes, as part of the project, the use and repurposing of two (2) or more buildings and structures that are:

(1) at least seventy-five (75) years old; and

(2) located at a site at which manufacturing previously occurred over a period of at least seventy-five (75) years.

As added by P.L.166-2014, SEC.13. Amended by P.L.212-2018(ss), SEC.25.

IC 6-3.1-11-25Expiration Sec. 25. (a) Notwithstanding any other law and except as provided in subsection (b), a taxpayer is entitled to receive a credit under this chapter only for a qualified investment made before January 1, 2020.

(b) A taxpayer is entitled to receive a credit for a qualified investment made after December 31, 2019, and before January 1, 2030, if the taxpayer is awarded a credit under:

(1) an application approved by the corporation before January 1, 2020; or

(2) an agreement entered into by the taxpayer and the corporation before January 1, 2021.

(c) This section may not be construed to prevent a taxpayer from carrying an unused tax credit attributable to a qualified investment made before January 1, 2020, or made as provided in subsection (b) forward to a taxable year beginning after December 31, 2019, and before January 1, 2030, in the manner provided for by section 17 of this chapter.

(d) This chapter expires January 1, 2030.

As added by P.L.158-2019, SEC.10.

IC 6-3.1-11.5Chapter 11.5. RepealedRepealed by P.L.288-2013, SEC.44.

IC 6-3.1-11.6Chapter 11.6. RepealedRepealed by P.L.288-2013, SEC.45.

IC 6-3.1-12Chapter 12. RepealedRepealed by P.L.2-1995, SEC.140.

IC 6-3.1-13Chapter 13. Economic Development for a Growing Economy Tax Credit

6-3.1-13-0.4Legalization of actions taken by Indiana economic development corporation in administration of chapter after February 8, 2005, and before May 11, 2005 6-3.1-13-1Repealed 6-3.1-13-1.5"Corporation" 6-3.1-13-2"Credit amount" 6-3.1-13-3Repealed 6-3.1-13-4"Full-time employee" 6-3.1-13-5"Incremental income tax withholdings" 6-3.1-13-5.3"NAICS" 6-3.1-13-5.5"NAICS industry sector" 6-3.1-13-6"New employee" 6-3.1-13-7"Pass through entity" 6-3.1-13-8"Related member" 6-3.1-13-9"State tax liability" 6-3.1-13-10"Taxpayer" 6-3.1-13-11Credit against state tax liability 6-3.1-13-12Repealed 6-3.1-13-13Purposes for which credit may be awarded; years for which credit claimed 6-3.1-13-14Application to enter into agreement for tax credit 6-3.1-13-15Agreement for tax credit with respect to new job creation; conditions 6-3.1-13-15.5Agreement for tax credit with respect to job retention; conditions 6-3.1-13-15.7Repealed 6-3.1-13-16Relocation of jobs from one site to another within state; credit prohibited 6-3.1-13-17Amount of credit awarded; factors; conditions for a project without a physical location in Indiana 6-3.1-13-18Duration of credit; maximum credit with respect to job creation; prohibit computation of credit 6-3.1-13-19Agreement for tax credit with respect to job creation; requirements 6-3.1-13-19.5Agreement for tax credit with respect to job retention; requirements 6-3.1-13-19.7Repealed 6-3.1-13-20Claiming credit; election to receive payment in lieu of credit; submission of required information to department of state revenue 6-3.1-13-21Pass through entity; calculation of tax credit; shareholder or partner claiming credit; refundable credits 6-3.1-13-22Noncompliance with agreement; assessments 6-3.1-13-23Repealed 6-3.1-13-24Biennial evaluation by Indiana economic development corporation 6-3.1-13-25Rules adoption; fees 6-3.1-13-26Economic development for a growing economy fund; use; investments; appropriations 6-3.1-13-27Repealed 6-3.1-13-28Repealed 6-3.1-13-29Credit subject to annual aggregate credit limit

IC 6-3.1-13-0.4Legalization of actions taken by Indiana economic development corporation in administration of chapter after February 8, 2005, and before May 11, 2005 Sec. 0.4. The actions taken by the Indiana economic development corporation to administer this chapter, as amended by P.L.4-2005, after February 8, 2005, and before May 11, 2005, are legalized and validated.

As added by P.L.220-2011, SEC.141.

IC 6-3.1-13-1RepealedAs added by P.L.41-1994, SEC.1. Repealed by P.L.4-2005, SEC.148.

IC 6-3.1-13-1.5"Corporation" Sec. 1.5. As used in this chapter, "corporation" means the Indiana economic development corporation established by IC 5-28-3-1.

As added by P.L.4-2005, SEC.66.

IC 6-3.1-13-2"Credit amount" Sec. 2. As used in this chapter, "credit amount" means the amount agreed to between the corporation and applicant under this chapter, but not to exceed, in the case of a credit awarded for a project to create new jobs in Indiana, the incremental income tax withholdings attributable to the applicant's project.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.41; P.L.4-2005, SEC.67.

IC 6-3.1-13-3RepealedAs added by P.L.41-1994, SEC.1. Amended by P.L.4-2005, SEC.68. Repealed by P.L.145-2016, SEC.23.

IC 6-3.1-13-4"Full-time employee" Sec. 4. As used in this chapter, "full-time employee" means an individual who is employed for consideration for at least thirty-five (35) hours each week or who renders any other standard of service generally accepted by custom or specified by contract as full-time employment.

As added by P.L.41-1994, SEC.1.

IC 6-3.1-13-5"Incremental income tax withholdings" Sec. 5. (a) As used in this chapter, "incremental income tax withholdings" means either:

(1) the total amount withheld under IC 6-3-4-8 by the taxpayer during the taxable year from the compensation of new employees; or

(2) the sum of:

(A) the total amount withheld under IC 6-3-4-8 by the taxpayer during the taxable year from the compensation of new employees; plus

(B) the additional amount that would have been withheld under IC 6-3-4-8 by the taxpayer during the taxable year from the compensation of new employees as if the new Indiana nonresident employees had been Indiana residents;

as determined by the corporation.

(b) The term does not include any amount withheld from an individual or an additional amount described in subsection (a)(2) for an individual for services provided in Indiana as an employee, if the:

(1) individual was, during the period of service, prohibited from being hired as an employee under 8 U.S.C. 1324a; and

(2) taxpayer was not enrolled and participating 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.

As added by P.L.41-1994, SEC.1. Amended by P.L.171-2011, SEC.5; P.L.158-2019, SEC.11.

IC 6-3.1-13-5.3"NAICS" Sec. 5.3. As used in this chapter, "NAICS" refers to the North American Industry Classification System.

As added by P.L.197-2005, SEC.2.

IC 6-3.1-13-5.5"NAICS industry sector" Sec. 5.5. As used in this chapter, "NAICS industry sector" refers to industries that share the same first two (2) digits of the six (6) digit NAICS code assigned to industries in the NAICS Manual of the United States Office of Management and Budget.

As added by P.L.197-2005, SEC.3.

IC 6-3.1-13-6"New employee" Sec. 6. (a) As used in this chapter, "new employee" means a full-time employee first employed by a taxpayer in the project that is the subject of a tax credit agreement and who is employed after the taxpayer enters into the tax credit agreement.

(b) The term "new employee" does not include:

(1) an employee of the taxpayer who performs a job that was previously performed by another employee, if that job existed for at least six (6) months before hiring the new employee;

(2) an employee of the taxpayer who was previously employed in Indiana by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the tax credit agreement; or

(3) a child, grandchild, parent, or spouse, other than a spouse who is legally separated from the individual, of any individual who is an employee of the taxpayer and who has a direct or an indirect ownership interest of at least five percent (5%) in the profits, capital, or value of the taxpayer (an ownership interest shall be determined in accordance with Section 1563 of the Internal Revenue Code and regulations prescribed under that Section).

(c) Notwithstanding subsection (b)(1), if a new employee performs a job that was previously performed by an employee who was:

(1) treated under the agreement as a new employee; and

(2) promoted by the taxpayer to another job;

the employee may be considered a new employee under the agreement.

(d) Notwithstanding subsection (a), the board may credit awards to an applicant that met the conditions of this chapter at the time of the applicant's location or expansion decision, if:

(1) the applicant is in receipt of a letter from the department of commerce stating an intent to enter into a credit agreement; and

(2) the letter described in subdivision (1) is issued by the department of commerce not later than March 15, 1994.

As added by P.L.41-1994, SEC.1.

IC 6-3.1-13-7"Pass through entity" Sec. 7. As used in this chapter, "pass through entity" means a:

(1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);

(2) partnership;

(3) trust;

(4) limited liability company; or

(5) limited liability partnership.

As added by P.L.41-1994, SEC.1. Amended by P.L.81-2004, SEC.13.

IC 6-3.1-13-8"Related member" Sec. 8. As used in this chapter, "related member" means a person that, with respect to the taxpayer during all or any portion of the taxable year, is any one (1) of the following:

(1) An individual stockholder, or a member of the stockholder's family enumerated in Section 318 of the Internal Revenue Code, if the stockholder and the member of the stockholder's family own directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock.

(2) A stockholder, or a stockholder's partnership, estate, trust, or corporation, if the stockholder and the stockholder's partnership, estate, trust, or corporation owns directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock.

(3) A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the value of the corporation's outstanding stock.

(4) A component member (as defined in Section 1563(b) of the Internal Revenue Code).

(5) A person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code except, for purposes of determining whether a person is a related member under this subdivision, twenty percent (20%) shall be substituted for five percent (5%) wherever five percent (5%) appears in Section 1563(e) of the Internal Revenue Code.

As added by P.L.41-1994, SEC.1.

IC 6-3.1-13-9"State tax liability" Sec. 9. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.41-1994, SEC.1. Amended by P.L.192-2002(ss), SEC.105; P.L.154-2020, SEC.16.

IC 6-3.1-13-10"Taxpayer" Sec. 10. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that has any state tax liability or that submits incremental income tax withholdings under IC 6-3-4-8.

As added by P.L.41-1994, SEC.1. Amended by P.L.113-2010, SEC.58.

IC 6-3.1-13-11Credit against state tax liability Sec. 11. Subject to the conditions set forth in this chapter, a taxpayer is entitled to a credit against any state tax liability that may be imposed on the taxpayer for a taxable year after December 31, 1993, if the taxpayer is awarded a credit by the board under this chapter for that taxable year.

As added by P.L.41-1994, SEC.1.

IC 6-3.1-13-12RepealedAs added by P.L.41-1994, SEC.1. Amended by P.L.224-2003, SEC.192. Repealed by P.L.4-2005, SEC.148.

IC 6-3.1-13-13Purposes for which credit may be awarded; years for which credit claimed Sec. 13. (a) The corporation may make credit awards under this chapter for any of the following:

(1) To foster job creation in Indiana.

(2) To foster job retention in Indiana.

(b) The credit shall be claimed for the taxable years specified in the taxpayer's tax credit agreement.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.42; P.L.4-2005, SEC.69; P.L.167-2014, SEC.5; P.L.74-2020, SEC.9.

IC 6-3.1-13-14Application to enter into agreement for tax credit Sec. 14. (a) A person that proposes a project to create new jobs in Indiana may apply, as provided in section 15 of this chapter, to the corporation to enter into an agreement for a tax credit under this chapter.

(b) A person that proposes to retain existing jobs in Indiana may apply, as provided in section 15.5 of this chapter, to the corporation to enter into an agreement for a tax credit under this chapter.

(c) The corporation shall prescribe the form of the application.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.43; P.L.4-2005, SEC.70; P.L.167-2014, SEC.6; P.L.145-2016, SEC.24; P.L.74-2020, SEC.10.

IC 6-3.1-13-15Agreement for tax credit with respect to new job creation; conditions Sec. 15. This section applies to an application proposing a project to create new jobs in Indiana. After receipt of an application, the corporation may enter into an agreement with the applicant for a credit under this chapter if the corporation determines that all of the following conditions exist:

(1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in Indiana.

(2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment in Indiana and strengthening the economy of Indiana.

(3) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project and not receiving the tax credit will result in the applicant not creating new jobs in Indiana.

(4) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.

(5) The credit is not prohibited by section 16 of this chapter.

(6) If the business is located in a community revitalization enhancement district established under IC 36-7-13 or a certified technology park established under IC 36-7-32, the legislative body of the political subdivision establishing the district or park has adopted an ordinance recommending the granting of a credit amount that is at least equal to the credit amount provided in the agreement.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.44; P.L.4-2005, SEC.71; P.L.197-2005, SEC.4.

IC 6-3.1-13-15.5Agreement for tax credit with respect to job retention; conditions Sec. 15.5. This section applies to an application proposing to retain existing jobs in Indiana. After receipt of an application, the corporation may enter into an agreement with the applicant for a credit under this chapter if the corporation determines that all the following conditions exist:

(1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.

(2) The applicant is engaged in research and development, manufacturing, or business services, according to the NAICS Manual of the United States Office of Management and Budget.

(3) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year exceeds the greater of the following:

(A) If there is more than one (1) business in the same NAICS industry sector as the applicant's business in the county in which the applicant's business is located, the average compensation paid during that same period to all employees working in that NAICS industry sector in that county multiplied by one hundred five percent (105%).

(B) If there is more than one (1) business in the same NAICS industry sector as the applicant's business in Indiana, the average compensation paid during that same period to all employees working in that NAICS industry sector throughout Indiana multiplied by one hundred five percent (105%).

(C) The compensation for that same period corresponding to the federal minimum wage multiplied by two hundred percent (200%).

(4) For taxable years beginning before January 1, 2010, the applicant employs at least thirty-five (35) employees in Indiana.

(5) The applicant has prepared a plan for the use of the credits under this chapter for:

(A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or

(B) other direct business related investments, including but not limited to training.

(6) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project, and not receiving the tax credit will increase the likelihood of the applicant reducing jobs in Indiana.

(7) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.

(8) The applicant's business and project are economically sound and will benefit the people of Indiana by increasing or maintaining opportunities for employment and strengthening the economy of Indiana.

(9) The communities affected by the potential reduction in jobs or relocation of jobs to another site outside Indiana have committed local incentives with respect to the retention of jobs in an amount determined by the corporation. For purposes of this subdivision, local incentives include, but are not limited to, cash grants, tax abatements, infrastructure improvements, investment in facility rehabilitation, construction, and training investments.

(10) The credit is not prohibited by section 16 of this chapter.

(11) If the business is located in a community revitalization enhancement district established under IC 36-7-13 or a certified technology park established under IC 36-7-32, the legislative body of the political subdivision establishing the district or park has adopted an ordinance recommending the granting of a credit amount that is at least equal to the credit amount provided in the agreement.

As added by P.L.178-2002, SEC.45. Amended by P.L.4-2005, SEC.72; P.L.197-2005, SEC.5; P.L.137-2006, SEC.4; P.L.110-2010, SEC.15.

IC 6-3.1-13-15.7RepealedAs added by P.L.167-2014, SEC.7. Repealed by P.L.74-2020, SEC.11.

IC 6-3.1-13-16Relocation of jobs from one site to another within state; credit prohibited Sec. 16. A person is not entitled to claim the credit provided by this chapter for any jobs that the person relocates from one (1) site in Indiana to another site in Indiana. Determinations under this section shall be made by the corporation.

As added by P.L.41-1994, SEC.1. Amended by P.L.4-2005, SEC.73.

IC 6-3.1-13-17Amount of credit awarded; factors; conditions for a project without a physical location in Indiana Sec. 17. (a) If the applicant proposes a project that will be located at a physical location in Indiana, in determining the credit amount that should be awarded to an applicant under section 15 of this chapter that proposes a project to create jobs in Indiana, the corporation may take into consideration the following factors:

(1) The economy of the county where the projected investment is to occur.

(2) The potential impact on the economy of Indiana.

(3) The incremental payroll attributable to the project.

(4) The capital investment attributable to the project.

(5) The amount the average wage paid by the applicant exceeds the average wage paid:

(A) within the county in which the project will be located, in the case of an application submitted before January 1, 2006; or

(B) in the case of an application submitted after December 31, 2005:

(i) to all employees working in the same NAICS industry sector to which the applicant's business belongs in the county in which the applicant's business is located, if there is more than one (1) business in that NAICS industry sector in the county in which the applicant's business is located;

(ii) to all employees working in the same NAICS industry sector to which the applicant's business belongs in Indiana, if the applicant's business is the only business in that NAICS industry sector in the county in which the applicant's business is located but there is more than one (1) business in that NAICS industry sector in Indiana; or

(iii) to all employees working in the same county as the county in which the applicant's business is located, if there is no other business in Indiana in the same NAICS industry sector to which the applicant's business belongs.

(6) The costs to Indiana and the affected political subdivisions with respect to the project.

(7) The financial assistance and incentives that are otherwise provided by Indiana and the affected political subdivisions.

(8) The extent to which the incremental income tax withholdings attributable to the applicant's project are needed for the purposes of an incremental tax financing fund or industrial development fund under IC 36-7-13 or a certified technology park fund under IC 36-7-32.

As appropriate, the corporation shall consider the factors in this subsection to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter.

(b) Subject to the limitations of subsection (c), if an applicant proposes a project that proposes to create new jobs in Indiana but does not propose a physical location in Indiana, the corporation may consider the following factors:

(1) The potential impact on the economy in Indiana.

(2) The incremental payroll attributable to the project.

(3) The amount of average wage paid by the applicant that exceeds the average wage paid to all employees working in the same NAICS industry sector to which the applicant's business belongs in Indiana.

(4) The cost to Indiana with respect to the project.

(5) The financial assistance and incentives that are otherwise provided by Indiana.

(6) The extent of Indiana income tax that is paid by eligible employees.

(c) An applicant proposing a project that meets the requirements of subsection (b) must propose:

(1) to create at least fifty (50) new full-time jobs; and

(2) to pay an average hourly wage of at least one hundred fifty percent (150%) of the state average wage;

in order to be eligible to receive a credit under this chapter.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.46; P.L.4-2005, SEC.74; P.L.197-2005, SEC.6; P.L.135-2022, SEC.7.

IC 6-3.1-13-18Duration of credit; maximum credit with respect to job creation; prohibit computation of credit Sec. 18. (a) The corporation shall determine the amount and duration of a tax credit awarded under this chapter. The duration of the credit may not exceed twenty (20) taxable years. The credit may be stated as a percentage of the incremental income tax withholdings attributable to the applicant's project and may include a fixed dollar limitation. In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's state tax liability for the taxable year, in which case the excess may, at the discretion of the corporation, be refunded to the taxpayer.

(b) This subsection does not apply 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. A credit under this chapter may not be computed on any amount withheld from an individual or paid to an individual for services provided in Indiana 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.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.47; P.L.4-2005, SEC.75; P.L.197-2005, SEC.7; P.L.137-2006, SEC.5; P.L.171-2011, SEC.6; P.L.213-2015, SEC.84; P.L.86-2018, SEC.73; P.L.135-2022, SEC.8.

IC 6-3.1-13-19Agreement for tax credit with respect to job creation; requirements Sec. 19. In the case of a credit awarded for a project to create new jobs in Indiana, the corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:

(1) A detailed description of the project that is the subject of the agreement.

(2) The duration of the tax credit and the first taxable year for which the credit may be claimed.

(3) The credit amount that will be allowed for each taxable year.

(4) A requirement that the taxpayer shall maintain operations at the project location for at least two (2) years following the last taxable year in which the applicant claims the tax credit or carries over an unused part of the tax credit under section 18 of this chapter. A taxpayer is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.

(5) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.

(6) A requirement that the taxpayer shall annually report to the corporation the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the corporation needs to perform the corporation's duties under this chapter.

(7) A requirement that the corporation is authorized to verify with the appropriate state agencies the amounts reported under subdivision (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.

(8) A requirement that the taxpayer shall provide written notification to the corporation not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.

(9) Any other performance conditions that the corporation determines are appropriate.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.48; P.L.4-2005, SEC.76; P.L.197-2005, SEC.8; P.L.145-2016, SEC.25.

IC 6-3.1-13-19.5Agreement for tax credit with respect to job retention; requirements Sec. 19.5. (a) In the case of a credit awarded for a project to retain existing jobs in Indiana, the corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:

(1) A detailed description of the business that is the subject of the agreement.

(2) The duration of the tax credit and the first taxable year for which the credit may be claimed.

(3) The credit amount that will be allowed for each taxable year.

(4) A requirement that the applicant shall maintain operations at the project location for at least two (2) years following the last taxable year in which the applicant claims the tax credit or carries over an unused part of the tax credit under section 18 of this chapter. An applicant is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.

(5) A requirement that the applicant shall annually report the following to the corporation:

(A) The number of employees who are employed in Indiana by the applicant.

(B) The compensation (including benefits) paid to the applicant's employees in Indiana.

(C) The amount of the:

(i) facility improvements;

(ii) equipment and machinery upgrades, repairs, or retrofits; or

(iii) other direct business related investments, including training.

(6) A requirement that the applicant shall provide written notification to the corporation not more than thirty (30) days after the applicant makes or receives a proposal that would transfer the applicant's state tax liability obligations to a successor taxpayer.

(7) Any other performance conditions that the corporation determines are appropriate.

(b) An agreement between an applicant and the corporation must be submitted to the budget committee for review and must be approved by the budget agency before an applicant is awarded a credit under this chapter for a project to retain existing jobs in Indiana.

As added by P.L.178-2002, SEC.49. Amended by P.L.4-2005, SEC.77; P.L.197-2005, SEC.9; P.L.145-2016, SEC.26.

IC 6-3.1-13-19.7RepealedAs added by P.L.167-2014, SEC.8. Amended by P.L.145-2016, SEC.27. Repealed by P.L.74-2020, SEC.12.

IC 6-3.1-13-20Claiming credit; election to receive payment in lieu of credit; submission of required information to department of state revenue Sec. 20. (a) Except as provided in subsection (b), a taxpayer claiming a credit under this chapter must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue all information that the department determines necessary for the calculation of the credit provided by this chapter and the determination of whether the credit was properly claimed.

(b) Notwithstanding subsection (a), if a taxpayer is entitled to a credit under this chapter, the taxpayer may, with the approval of the corporation, elect to forgo claiming the credit against any state tax liability and submit the credit to the department with a request to receive a payment from the corporation, to be paid from funds appropriated to the corporation for business promotion and innovation that is equal to the credit for that taxable year as provided in IC 6-3-5-5.

As added by P.L.41-1994, SEC.1. Amended by P.L.4-2005, SEC.78; P.L.135-2022, SEC.9; P.L.213-2025, SEC.74.

IC 6-3.1-13-21Pass through entity; calculation of tax credit; shareholder or partner claiming credit; refundable credits Sec. 21. (a) If a pass through entity does not have state income tax liability against which the tax credit may be applied, a shareholder or partner 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 or partner is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder or partner of a pass through entity is otherwise entitled under a separate agreement under this chapter. A pass through entity and a shareholder or partner of the pass through entity may not claim more than one (1) credit under the same agreement.

(c) Subsection (d) applies:

(1) only to a pass through entity that is a limited liability company or a limited liability partnership owned wholly or in part by an electric cooperative incorporated under IC 8-1-13; and

(2) if, at the request of the pass through entity, the corporation finds that the amount of the average wage to be paid by the pass through entity will be at least double the average wage paid:

(A) in the county in which the project will be located, in the case of an application submitted before January 1, 2006; or

(B) in the case of an application submitted after December 31, 2005:

(i) to all employees working in the same NAICS industry sector to which the applicant's business belongs in the county in which the applicant's business is located, if there is more than one (1) business in that NAICS industry sector in the county in which the applicant's business is located;

(ii) to all employees working in the same NAICS industry sector to which the applicant's business belongs in Indiana, if the applicant's business is the only business in that NAICS industry sector in the county in which the applicant's business is located but there is more than one (1) business in that NAICS industry sector in Indiana; or

(iii) to all employees working in the same county as the county in which the applicant's business is located, if there is no other business in Indiana in the same NAICS industry sector to which the applicant's business belongs.

(d) The corporation may determine that:

(1) a credit shall be claimed by the pass through entity described in subsection (c); and

(2) if the credit exceeds the pass through entity's state income tax liability for the taxable year, the excess shall be refunded to the pass through entity.

If the corporation grants a refund directly to a pass through entity under this subsection, the pass through entity shall claim the refund on forms prescribed by the department of state revenue.

As added by P.L.41-1994, SEC.1. Amended by P.L.81-2004, SEC.14; P.L.4-2005, SEC.79; P.L.197-2005, SEC.10.

IC 6-3.1-13-22Noncompliance with agreement; assessments Sec. 22. If the corporation determines that a taxpayer who has claimed a credit under this chapter is not entitled to the credit because of the taxpayer's noncompliance with the requirements of the tax credit agreement or all of the provisions of this chapter, the corporation shall, after giving the taxpayer an opportunity to explain the noncompliance:

(1) notify the department of state revenue of the noncompliance; and

(2) request the department of state revenue to impose an assessment on the taxpayer in an amount that may not exceed the sum of any previously allowed credits under this chapter together with interest and penalties required or permitted by law.

As added by P.L.41-1994, SEC.1. Amended by P.L.4-2005, SEC.80; P.L.145-2016, SEC.28.

IC 6-3.1-13-23RepealedAs added by P.L.41-1994, SEC.1. Amended by P.L.28-2004, SEC.65; P.L.4-2005, SEC.81. Repealed by P.L.222-2007, SEC.2.

IC 6-3.1-13-24Biennial evaluation by Indiana economic development corporation Sec. 24. On a biennial basis, the corporation shall provide for an evaluation of the tax credit program. The evaluation shall include an assessment of the effectiveness of the program in creating new jobs and retaining existing jobs in Indiana and of the revenue impact of the program, and may include a review of the practices and experiences of other states with similar programs. The corporation shall include a report on the evaluation in the economic incentives and compliance report submitted under IC 5-28-28 for the calendar year in which the evaluation is completed.

As added by P.L.41-1994, SEC.1. Amended by P.L.178-2002, SEC.50; P.L.4-2005, SEC.82; P.L.145-2016, SEC.29; P.L.130-2018, SEC.25.

IC 6-3.1-13-25Rules adoption; fees Sec. 25. The corporation may adopt rules under IC 4-22-2 necessary to implement this chapter. The rules may provide for recipients of tax credits under this chapter to be charged fees to cover administrative costs of the tax credit program. Fees collected shall be deposited in the economic development for a growing economy fund.

As added by P.L.41-1994, SEC.1. Amended by P.L.4-2005, SEC.83.

IC 6-3.1-13-26Economic development for a growing economy fund; use; investments; appropriations Sec. 26. (a) The economic development for a growing economy fund is established to be used exclusively for the purposes of this chapter and IC 6-3.1-26, including paying for the costs of administering this chapter and IC 6-3.1-26. The fund shall be administered by the corporation.

(b) The fund consists of collected fees, appropriations from the general assembly, and gifts and grants to the fund.

(c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund.

(d) The money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund to be used exclusively for the purposes of this chapter. Expenditures from the fund are subject to appropriation by the general assembly and approval by the budget agency.

As added by P.L.41-1994, SEC.1. Amended by P.L.224-2003, SEC.193; P.L.4-2005, SEC.84.

IC 6-3.1-13-27RepealedAs added by P.L.114-2000, SEC.1. Amended by P.L.170-2002, SEC.24; P.L.4-2005, SEC.85; P.L.162-2007, SEC.28. Repealed by P.L.113-2010, SEC.168.

IC 6-3.1-13-28RepealedAs added by P.L.205-2013, SEC.83. Repealed by P.L.130-2018, SEC.26.

IC 6-3.1-13-29Credit subject to annual aggregate credit limit Sec. 29. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.213-2025, SEC.75.

IC 6-3.1-13.5Chapter 13.5. RepealedRepealed by P.L.288-2013, SEC.46.

IC 6-3.1-14Chapter 14. ExpiredAs added by P.L.172-2011, SEC.63. Expired 1-1-2020 by P.L.172-2011, SEC.63.

IC 6-3.1-15Chapter 15. ExpiredAs added by P.L.43-1992, SEC.11. Expired 1-1-2018 by P.L.250-2015, SEC.26.

IC 6-3.1-16Chapter 16. ExpiredExpired 1-1-2019 by P.L.250-2015, SEC.27.

IC 6-3.1-16.1Chapter 16.1. Historic Rehabilitation Tax Credit

6-3.1-16.1-1Authorization to claim credit

IC 6-3.1-16.1-1Authorization to claim credit Sec. 1. (a) For purposes of this section, "department" refers to:

(1) the department of natural resources; or

(2) the office of community and rural affairs.

(b) This section applies notwithstanding:

(1) the cap of zero dollars ($0) on the amount of historic rehabilitation tax credits allowed in a state fiscal year beginning after June 30, 2016, as set forth in IC 6-3.1-16-14 (before its expiration); and

(2) the expiration of the historic rehabilitation tax credit chapter (IC 6-3.1-16) on January 1, 2019.

(c) If a taxpayer was granted a historic rehabilitation tax credit by the department before January 1, 2016, for a qualified expenditure made before June 30, 2016, under IC 6-3.1-16 (before its expiration) for use in a taxable year other than the year in which the preservation or rehabilitation of the historic property was performed and the certification of the credit was provided by the department, the credit described in this subsection may nevertheless be claimed in the subsequent year for which the credit was granted by the department and may be carried forward as set forth in this section.

(d) If the credit provided by this section exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for fifteen (15) taxable years following the taxable year in which the taxpayer is first entitled to claim the credit under this chapter.

(e) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (d).

(f) A taxpayer is not entitled to any carryback or refund of any unused credit.

(g) All of the provisions under IC 6-3.1-16 (before its expiration) shall be considered to be in effect for credits claimed under this chapter, except to the extent expressly inconsistent with this chapter.

As added by P.L.146-2020, SEC.28.

IC 6-3.1-17Chapter 17. RepealedRepealed by P.L.190-2014, SEC.17.

IC 6-3.1-17.1Chapter 17.1. Historic Rehabilitation Tax Credit

6-3.1-17.1-1Applicability of chapter 6-3.1-17.1-2"Pass through entity" 6-3.1-17.1-3"Qualified historic structure" 6-3.1-17.1-4"Qualified rehabilitation expenditure" 6-3.1-17.1-5"Qualified taxpayer" 6-3.1-17.1-6"State tax liability" 6-3.1-17.1-7Amount of credit; computation 6-3.1-17.1-8Pass through entity; shareholder; partner; or member 6-3.1-17.1-9Claiming of credit on annual state tax return 6-3.1-17.1-10Carryover of unused credit amount 6-3.1-17.1-11Credit assignment 6-3.1-17.1-12Annual aggregate credit limit 6-3.1-17.1-13Credit included in calculation of aggregate tax credits that may be certified by the Indiana economic development corporation 6-3.1-17.1-14Adoption of rules 6-3.1-17.1-15Expiration of chapter

IC 6-3.1-17.1-1Applicability of chapter Sec. 1. This chapter applies to taxable years beginning after December 31, 2023.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-2"Pass through entity" Sec. 2. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-3"Qualified historic structure" Sec. 3. As used in this chapter, "qualified historic structure" means any building that is:

(1) a certified historic structure (as defined in Section 47(c)(3) of the Internal Revenue Code);

(2) individually listed on the register of Indiana historic sites and historic structures; or

(3) located in, and contributes to, a district listed in the register of Indiana historic sites and historic structures.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-4"Qualified rehabilitation expenditure" Sec. 4. As used in this chapter, "qualified rehabilitation expenditure" means the costs and expenses incurred by a qualified taxpayer in the restoration and preservation of a qualified historic structure that are defined as a qualified rehabilitation expenditure in Section 47(c)(2) of the Internal Revenue Code.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-5"Qualified taxpayer" Sec. 5. As used in this chapter, "qualified taxpayer" means the owner of a qualified historic structure or any other person who may qualify for the federal rehabilitation tax credit allowable under Section 47 of the Internal Revenue Code.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-6"State tax liability" Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-7Amount of credit; computation Sec. 7. (a) Subject to IC 5-28-6-9, the Indiana economic development corporation may award a credit to a qualified taxpayer against the qualified taxpayer's state tax liability in the taxable year in which the qualified taxpayer completes restoration and preservation of a qualified historic structure if the total amount of qualified rehabilitation expenditures incurred by the qualified taxpayer equals five thousand dollars ($5,000) or more.

(b) The amount of the credit is equal to:

(1) twenty-five percent (25%) of the qualified rehabilitation expenditures that the qualified taxpayer makes for the restoration and preservation of a qualified historic structure; or

(2) thirty percent (30%) of the qualified rehabilitation expenditures that the qualified taxpayer makes for the restoration and preservation of a qualified historic structure that is:

(A) owned by a taxpayer that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; or

(B) not income producing.

(c) If the Indiana economic development corporation awards credits under this chapter, the department of state revenue and the office of community and rural affairs shall administer the allowance of the credits.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-8Pass through entity; shareholder; partner; or member Sec. 8. (a) If a pass through entity is awarded a credit under section 7 of this chapter but does not have state tax liability against which the credit may be applied, a shareholder, partner, or member of the pass through entity may receive a credit equal to:

(1) the 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a credit a shareholder, partner, or member of a pass through entity is otherwise awarded under this chapter. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified expenditure.

(c) A pass through entity (other than a pass through entity described in section 2(1) of this chapter) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. The pass through entity shall provide to the department a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-9Claiming of credit on annual state tax return Sec. 9. To obtain a credit under this chapter, a qualified taxpayer must claim the credit on the qualified taxpayer's annual state tax return or returns in the manner prescribed by the department. The qualified taxpayer shall submit to the department all information that the department determines is necessary for the allowance and calculation of the credit provided by this chapter.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-10Carryover of unused credit amount Sec. 10. (a) If the credit provided by this chapter exceeds a qualified taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the qualified taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for ten (10) taxable years following the unused credit year.

(b) A qualified taxpayer is not entitled to any carryback or refund of any unused credit.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-11Credit assignment Sec. 11. (a) A qualified taxpayer may assign any part of the credit that the qualified taxpayer may claim under this chapter. A credit that is assigned under this section remains subject to this chapter. If a qualified taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another qualified taxpayer. A qualified taxpayer may make only one (1) assignment of a credit.

(b) An assignment of a credit must be in writing, and both the qualified taxpayer and assignee shall report the assignment on the qualified taxpayer's and the assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A qualified taxpayer may not receive value in connection with an assignment under this section that exceeds the value of the part of the credit assigned.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-12Annual aggregate credit limit Sec. 12. For each state fiscal year beginning after June 30, 2023, and ending before July 1, 2030, the aggregate amount of state tax credits allowed under this chapter may not exceed ten million dollars ($10,000,000).

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-13Credit included in calculation of aggregate tax credits that may be certified by the Indiana economic development corporation Sec. 13. Any credit awarded under this chapter must be included in the calculation of the aggregate amount of applicable tax credits that the Indiana economic development corporation may certify for a state fiscal year under IC 5-28-6-9.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-14Adoption of rules Sec. 14. The department or the office of community and rural affairs may adopt rules under IC 4-22-2 governing this chapter.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-17.1-15Expiration of chapter Sec. 15. This chapter expires January 1, 2030.

As added by P.L.236-2023, SEC.67.

IC 6-3.1-18Chapter 18. Individual Development Account Tax Credit

6-3.1-18-0.3"Authority" 6-3.1-18-0.5"Business firm" 6-3.1-18-0.7"Community based organization" 6-3.1-18-1"Community development corporation" 6-3.1-18-2"Fund" 6-3.1-18-3"Individual development account" 6-3.1-18-4"Pass through entity" 6-3.1-18-4.3"Person" 6-3.1-18-4.5"Qualified contribution" 6-3.1-18-5"State tax liability" 6-3.1-18-6Credit; amount; calculation; application 6-3.1-18-7Application of tax credit to pass through entities; calculation 6-3.1-18-8Credit supplement; other credits 6-3.1-18-9Documentation for credit; form; contents; notification of credit allowable 6-3.1-18-10Amount of tax credits allowed 6-3.1-18-11Tax credit available only in year paid

IC 6-3.1-18-0.3"Authority" Sec. 0.3. As used in this chapter, "authority" means the Indiana housing and community development authority established by IC 5-20-1-3.

As added by P.L.124-2024, SEC.19.

IC 6-3.1-18-0.5"Business firm" Sec. 0.5. As used in this chapter, "business firm" means any business entity authorized to do business in the state of Indiana that has state tax liability.

As added by P.L.124-2024, SEC.20.

IC 6-3.1-18-0.7"Community based organization" Sec. 0.7. As used in this chapter, "community based organization" has the meaning set forth in IC 4-4-28-1.7.

As added by P.L.124-2024, SEC.21.

IC 6-3.1-18-1"Community development corporation" Sec. 1. As used in this chapter, "community development corporation" has the meaning set forth in IC 4-4-28-2.

As added by P.L.15-1997, SEC.2.

IC 6-3.1-18-2"Fund" Sec. 2. As used in this chapter, "fund" refers to an individual development account fund established by a community development corporation or community based organization under IC 4-4-28-13.

As added by P.L.15-1997, SEC.2. Amended by P.L.124-2024, SEC.22.

IC 6-3.1-18-3"Individual development account" Sec. 3. As used in this chapter, "individual development account" has the meaning set forth in IC 4-4-28-5.

As added by P.L.15-1997, SEC.2.

IC 6-3.1-18-4"Pass through entity" Sec. 4. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.15-1997, SEC.2.

IC 6-3.1-18-4.3"Person" Sec. 4.3. As used in this chapter, "person" means any individual subject to Indiana adjusted gross income tax.

As added by P.L.124-2024, SEC.23.

IC 6-3.1-18-4.5"Qualified contribution" Sec. 4.5. As used in this chapter, "qualified contribution" means a contribution to a fund for which a community development corporation or community based organization has received an allocation of tax credits under IC 4-4-28-13.

As added by P.L.50-2016, SEC.10. Amended by P.L.124-2024, SEC.24.

IC 6-3.1-18-5"State tax liability" Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and

(2) IC 6-5.5 (the financial institutions tax);

as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

As added by P.L.15-1997, SEC.2. Amended by P.L.192-2002(ss), SEC.111.

IC 6-3.1-18-6Credit; amount; calculation; application Sec. 6. (a) Subject to the limitations provided in subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the department shall grant a tax credit against any state tax liability due equal to fifty percent (50%) of the amount of a qualified contribution made in a taxable year by a business firm or person if the qualified contribution is not less than one hundred dollars ($100) and not more than fifty thousand dollars ($50,000).

(b) The credit provided by this chapter shall only be applied against any state tax liability owed by the taxpayer after the application of any credits that under IC 6-3.1-1-2 must be applied before the credit provided by this chapter.

As added by P.L.15-1997, SEC.2. Amended by P.L.4-1999, SEC.4; P.L.192-2002(ss), SEC.112; P.L.50-2016, SEC.11; P.L.124-2024, SEC.25.

IC 6-3.1-18-7Application of tax credit to pass through entities; calculation Sec. 7. If a pass through entity is entitled to a credit under section 6 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

As added by P.L.15-1997, SEC.2.

IC 6-3.1-18-8Credit supplement; other credits Sec. 8. The credit provided under section 7 of this chapter is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under IC 6-3, this article, or IC 6-5.5. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified expenditure.

As added by P.L.15-1997, SEC.2. Amended by P.L.1-2003, SEC.38; P.L.269-2003, SEC.10.

IC 6-3.1-18-9Documentation for credit; form; contents; notification of credit allowable Sec. 9. (a) The community development corporation or community based organization, on behalf of a business firm or person that desires to claim a tax credit as provided in this chapter, shall file with the authority, in the form approved by the authority, documentation stating the amount of the qualified contribution that would qualify for a tax credit, and the amount allocated to the business firm or person to be claimed as a credit.

(b) The department shall promptly notify a business firm or person whether, or the extent to which, the tax credit is allowable in the state fiscal year in which the tax return claiming the credit is filed, as provided in section 6 of this chapter.

(c) The department shall consider documentation from the authority as proof of payment, setting forth that the amount to be claimed as a credit under this chapter has been paid to a community development corporation or a community based organization as a qualified contribution to the fund of the community development corporation or the community based organization fund for the current state fiscal year, or permanently set aside in a special account to be used solely for this fund.

As added by P.L.15-1997, SEC.2. Amended by P.L.50-2016, SEC.12; P.L.124-2024, SEC.26.

IC 6-3.1-18-10Amount of tax credits allowed Sec. 10. (a) The amount of tax credits allowed under this chapter may not exceed two hundred thousand dollars ($200,000) in any state fiscal year.

(b) The department shall:

(1) record the time of filing of each tax return claiming the credit under section 9 of this chapter; and

(2) approve the credit, if the business firm or person claiming the credit otherwise qualifies for a tax credit under this chapter, in the chronological order in which the tax return claiming the credit is filed in the state fiscal year.

(c) When the total credits approved under this section equal the maximum amount allowable in any state fiscal year, no credits thereafter filed for that same fiscal year shall be approved.

As added by P.L.15-1997, SEC.2. Amended by P.L.289-2001, SEC.14; P.L.124-2024, SEC.27.

IC 6-3.1-18-11Tax credit available only in year paid Sec. 11. A tax credit shall be allowable under this chapter only for the taxable year of the taxpayer in which the contribution qualifying for the credit is paid.

As added by P.L.15-1997, SEC.2.

IC 6-3.1-19Chapter 19. Community Revitalization Enhancement District Tax Credit

6-3.1-19-1"State and local tax liability" 6-3.1-19-1.5"Pass through entity" 6-3.1-19-2"Qualified investment" 6-3.1-19-2.5"Taxpayer" 6-3.1-19-3Entitlement to credit; amount; assignment 6-3.1-19-4Credit carryover; carryback or refund unavailable 6-3.1-19-5Ineligibility for credit to extent of reduction or cessation of operations in Indiana; eligibility determinations; criteria; appeals 6-3.1-19-5.5Repealed 6-3.1-19-6Method of claiming credit; submission of information 6-3.1-19-7Credit subject to annual aggregate credit limit

IC 6-3.1-19-1"State and local tax liability" Sec. 1. As used in this chapter, "state and local tax liability" means a taxpayer's total tax liability incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-3.6 (local income tax);

(3) IC 6-5.5 (the financial institutions tax); and

(4) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax);

as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

As added by P.L.125-1998, SEC.3. Amended by P.L.192-2002(ss), SEC.113; P.L.197-2016, SEC.30; P.L.154-2020, SEC.17.

IC 6-3.1-19-1.5"Pass through entity" Sec. 1.5. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.224-2003, SEC.194.

IC 6-3.1-19-2"Qualified investment" Sec. 2. (a) As used in this chapter, "qualified investment" means the amount of a taxpayer's expenditures that is:

(1) for redevelopment or rehabilitation of property located within a community revitalization enhancement district designated under IC 36-7-13;

(2) made under a plan adopted by an advisory commission on industrial development under IC 36-7-13; and

(3) approved by the Indiana economic development corporation before the expenditure is made.

Beginning after December 31, 2015, the term does not include a taxpayer's expenditures made on property that is classified as residential for property tax purposes, except for expenditures that were approved by the Indiana economic development corporation before January 1, 2016.

(b) Notwithstanding subsection (a)(1), expenditures for the redevelopment or rehabilitation of property that are made after the expiration of the community revitalization district designated under IC 36-7-13 may still be considered a qualified investment if:

(1) subsection (a)(2) and (a)(3) are satisfied;

(2) the Indiana economic development corporation approves the taxpayer's application for a credit before the expiration of the community revitalization enhancement district; and

(3) the taxpayer enters into an agreement with the Indiana economic development corporation not later than one (1) year after the expiration of the community revitalization enhancement district.

As added by P.L.125-1998, SEC.3. Amended by P.L.4-2005, SEC.94; P.L.250-2015, SEC.28; P.L.158-2019, SEC.12.

IC 6-3.1-19-2.5"Taxpayer" Sec. 2.5. As used in this chapter, "taxpayer" means an individual or entity that has any state and local tax liability.

As added by P.L.224-2003, SEC.195.

IC 6-3.1-19-3Entitlement to credit; amount; assignment Sec. 3. (a) Except as provided in section 5 of this chapter and subject to IC 5-28-6-9, a taxpayer is entitled to a credit against the taxpayer's state and local tax liability for a taxable year if the taxpayer makes a qualified investment in that year.

(b) The amount of the credit to which a taxpayer is entitled is the qualified investment made by the taxpayer during the taxable year multiplied by twenty-five percent (25%).

(c) A taxpayer may assign any part of the credit to which the taxpayer is entitled under this chapter to a lessee of property redeveloped or rehabilitated under section 2 of this chapter. A credit that is assigned under this subsection remains subject to this chapter.

(d) An assignment under subsection (c) must be in writing and both the taxpayer and the lessee must report the assignment on their state tax return for the year in which the assignment is made, in the manner prescribed by the department. The taxpayer may not receive value in connection with the assignment under subsection (c) that exceeds the value of the part of the credit assigned.

(e) If a pass through entity is entitled to a credit under this chapter but does not have state and local tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

The credit provided under this subsection is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and an individual who is a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same investment.

(f) A taxpayer that is otherwise entitled to a credit under this chapter for a taxable year may claim the credit regardless of whether any income tax incremental amount or gross retail incremental amount has been:

(1) deposited in the incremental tax financing fund established for the community revitalization enhancement district; or

(2) allocated to the district.

As added by P.L.125-1998, SEC.3. Amended by P.L.224-2003, SEC.196; P.L.81-2004, SEC.29 and P.L.90-2004, SEC.1; P.L.113-2010, SEC.59; P.L.172-2011, SEC.64; P.L.213-2025, SEC.76.

IC 6-3.1-19-4Credit carryover; carryback or refund unavailable Sec. 4. If the amount of the credit determined under section 3 of this chapter for a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the immediately following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.125-1998, SEC.3.

IC 6-3.1-19-5Ineligibility for credit to extent of reduction or cessation of operations in Indiana; eligibility determinations; criteria; appeals Sec. 5. (a) A taxpayer is not entitled to claim the credit provided by this chapter to the extent that the taxpayer substantially reduces or ceases its operations in Indiana in order to relocate them within the district. Determinations under this section shall be made by the department. The department shall adopt a proposed order concerning a taxpayer's eligibility for the credit based on subsection (b) and the following criteria:

(1) A site-specific economic activity, including sales, leasing, service, manufacturing, production, storage of inventory, or any activity involving permanent full-time or part-time employees, shall be considered a business operation.

(2) With respect to an operation located outside the district (referred to in this section as a "nondistrict operation"), any of the following that occurs during the twelve (12) months before the completion of the physical relocation of all or part of the activity described in subdivision (1) from the nondistrict operation to the district as compared with the twelve (12) months before that twelve (12) months shall be considered a substantial reduction:

(A) A reduction in the average number of full-time or part-time employees of the lesser of one hundred (100) employees or twenty-five percent (25%) of all employees.

(B) A twenty-five percent (25%) reduction in the average number of goods manufactured or produced.

(C) A twenty-five percent (25%) reduction in the average value of services provided.

(D) A ten percent (10%) reduction in the average value of stored inventory.

(E) A twenty-five percent (25%) reduction in the average amount of gross income.

(b) Notwithstanding subsection (a), a taxpayer that would otherwise be disqualified under subsection (a) is eligible for the credit provided by this chapter if the taxpayer meets at least one (1) of the following conditions:

(1) The taxpayer relocates all or part of its nondistrict operation for any of the following reasons:

(A) The lease on property necessary for the nondistrict operation has been involuntarily lost through no fault of the taxpayer.

(B) The space available at the location of the nondistrict operation cannot accommodate planned expansion needed by the taxpayer.

(C) The building for the nondistrict operation has been certified as uninhabitable by a state or local building authority.

(D) The building for the nondistrict operation has been totally destroyed through no fault of the taxpayer.

(E) The renovation and construction costs at the location of the nondistrict operation are more than one and one-half (1 1/2) times the costs of purchase, renovation, and construction of a facility in the district, as certified by three (3) independent estimates.

(F) The taxpayer had existing operations in the district and the nondistrict operations relocated to the district are an expansion of the taxpayer's operations in the district.

A taxpayer is eligible for benefits and incentives under clause (C) or (D) only if renovation and construction costs at the location of the nondistrict operation are more than one and one-half (1 1/2) times the cost of purchase, renovation, and construction of a facility in the district. These costs must be certified by three (3) independent estimates.

(2) The taxpayer has not terminated or reduced the pension or health insurance obligations payable to employees or former employees of the nondistrict operation without the consent of the employees.

(c) The department shall cause to be delivered to the taxpayer and to any person who testified before the department in favor of disqualification of the taxpayer a copy of the department's proposed order. The taxpayer and these persons shall be considered parties for purposes of this section.

(d) A party who wishes to appeal the proposed order of the department shall, within ten (10) days after the party's receipt of the proposed order, file written objections with the department. The department shall immediately forward copies of the objections to the director of the budget agency and the board of the Indiana economic development corporation. A hearing panel composed of the commissioner of the department or the commissioner's designee, the director of the budget agency or the director's designee, and the president of the Indiana economic development corporation or the president's designee shall set the objections for oral argument and give notice to the parties. A party at its own expense may cause to be filed with the hearing panel a transcript of the oral testimony or any other part of the record of the proceedings. The oral argument shall be on the record filed with the hearing panel. The hearing panel may hear additional evidence or remand the action to the department with instructions appropriate to the expeditious and proper disposition of the action. The hearing panel may adopt the proposed order of the department, may amend or modify the proposed order, or may make such order or determination as is proper on the record. The affirmative votes of at least two (2) members of the hearing panel are required for the hearing panel to take action on any measure. The taxpayer may appeal the decision of the hearing panel to the tax court in the same manner that a final determination of the department may be appealed under IC 33-26.

(e) If no objections are filed, the department may adopt the proposed order without oral argument.

(f) A determination that a taxpayer is not entitled to the credit provided by this chapter as a result of a substantial reduction or cessation of operations applies to credits that would otherwise arise in the taxable year in which the substantial reduction or cessation occurs and in all subsequent years.

As added by P.L.125-1998, SEC.3. Amended by P.L.81-2004, SEC.30 and P.L.90-2004, SEC.2; P.L.4-2005, SEC.95.

IC 6-3.1-19-5.5RepealedAs added by P.L.113-2010, SEC.60. Repealed by P.L.172-2011, SEC.162.

IC 6-3.1-19-6Method of claiming credit; submission of information Sec. 6. 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 of state revenue. The taxpayer shall submit to the department of state revenue all information that the department determines is necessary for the calculation of the credit provided by this chapter and for the determination of whether an expenditure was for a qualified investment.

As added by P.L.125-1998, SEC.3.

IC 6-3.1-19-7Credit subject to annual aggregate credit limit Sec. 7. A tax credit provided under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.213-2025, SEC.77.

IC 6-3.1-20Chapter 20. Income Tax Credit for Property Taxes Paid on Homesteads

6-3.1-20-1"Indiana income" 6-3.1-20-2"Homestead" 6-3.1-20-3"State income tax liability" 6-3.1-20-4Entitlement to credit 6-3.1-20-5Amount of credit 6-3.1-20-6Filing with department required 6-3.1-20-7Amount of credits determined by department and deposited in state general fund; transfers to northwest Indiana regional development authority

IC 6-3.1-20-1"Indiana income" Sec. 1. As used in this chapter, "Indiana income" means the adjusted gross income of an individual taxpayer, and the individual's spouse, if the individual files a joint adjusted gross income tax return.

As added by P.L.151-2001, SEC.5. Amended by P.L.166-2014, SEC.22.

IC 6-3.1-20-2"Homestead" Sec. 2. As used in this chapter, "homestead" has the meaning set forth in IC 6-1.1-12-37.

As added by P.L.151-2001, SEC.5. Amended by P.L.1-2009, SEC.51.

IC 6-3.1-20-3"State income tax liability" Sec. 3. As used in this chapter, "state income tax liability" means an individual's adjusted gross income tax liability under IC 6-3.

As added by P.L.151-2001, SEC.5.

IC 6-3.1-20-4Entitlement to credit Sec. 4. (a) Except as provided in subsections (b) and (c), an individual is entitled to a credit under this chapter if:

(1) the individual's Indiana income for the taxable year is less than eighteen thousand six hundred dollars ($18,600); and

(2) the individual pays property taxes in the taxable year on a homestead that:

(A) the individual:

(i) owns; or

(ii) is buying under a contract that requires the individual to pay property taxes on the homestead, if the contract or a memorandum of the contract is recorded in the county recorder's office; and

(B) is located in a county having a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).

(b) An individual is not entitled to a credit under this chapter for a taxable year for property taxes paid on the individual's homestead if the individual claims the deduction under IC 6-3-1-3.5(a)(13) for the homestead for that same taxable year.

(c) In the case of a married individual filing a separate return, the income amount in subsection (a) shall be fifty percent (50%) of the amount listed in that subsection.

As added by P.L.151-2001, SEC.5. Amended by P.L.6-2012, SEC.53; P.L.13-2013, SEC.22; P.L.166-2014, SEC.23; P.L.250-2015, SEC.29; P.L.146-2020, SEC.29; P.L.11-2023, SEC.26.

IC 6-3.1-20-5Amount of credit Sec. 5. (a) Each year, an individual described in section 4 of this chapter is entitled to a refundable credit against the individual's state income tax liability in the amount determined under this section.

(b) In the case of an individual with Indiana income of less than eighteen thousand dollars ($18,000) for the taxable year, the amount of the credit is equal to the lesser of:

(1) three hundred dollars ($300); or

(2) the amount of property taxes described in section 4(a)(2) of this chapter paid by the individual in the taxable year.

(c) In the case of an individual with Indiana income that is at least eighteen thousand dollars ($18,000) but less than eighteen thousand six hundred dollars ($18,600) for the taxable year, the amount of the credit is equal to the lesser of the following:

(1) An amount determined under the following STEPS:

STEP ONE: Determine the result of:

(i) eighteen thousand six hundred dollars ($18,600); minus

(ii) the individual's Indiana income for the taxable year.

STEP TWO: Determine the result of:

(i) the STEP ONE amount; multiplied by

(ii) five-tenths (0.5).

(2) The amount of property taxes described in section 4(a)(2) of this chapter paid by the individual in the taxable year.

(d) If the amount of the credit under this chapter exceeds the individual's state tax liability for the taxable year, the excess shall be refunded to the taxpayer.

(e) In the case of a married individual filing a separate return, the income and dollar amounts in subsections (b) and (c) shall be fifty percent (50%) of the amounts listed in those subsections.

As added by P.L.151-2001, SEC.5. Amended by P.L.1-2002, SEC.31; P.L.166-2014, SEC.24; P.L.146-2020, SEC.30.

IC 6-3.1-20-6Filing with department required Sec. 6. To obtain the credit provided by this chapter, an individual must file with the department information concerning the property taxes paid on the individual's homestead and any other information required by the department.

As added by P.L.151-2001, SEC.5.

IC 6-3.1-20-7Amount of credits determined by department and deposited in state general fund; transfers to northwest Indiana regional development authority Sec. 7. (a) The department shall before July 1 of each year determine the following:

(1) The greater of:

(A) eight million five hundred thousand dollars ($8,500,000); or

(B) the amount of credits allowed under this chapter for taxable years ending before January 1 of the year.

(2) The quotient of:

(A) the amount determined under subdivision (1); divided by

(B) four (4).

(b) Except as provided in subsection (d), one-half (1/2) of the amount determined by the department under subsection (a)(2) shall be:

(1) deducted each quarter from the riverboat supplemental wagering tax revenue otherwise payable to the county under IC 4-33-12-8 and the supplemental distribution otherwise payable to the county under IC 4-33-13-5(f); and

(2) paid instead to the state general fund.

(c) Except as provided in subsection (d), one-sixth (1/6) of the amount determined by the department under subsection (a)(2) shall be:

(1) deducted each quarter from the riverboat supplemental wagering tax revenue otherwise payable under IC 4-33-12-8 and the supplemental distribution otherwise payable under IC 4-33-13-5(f) to each of the following:

(A) The largest city by population located in the county.

(B) The second largest city by population located in the county.

(C) The third largest city by population located in the county; and

(2) paid instead to the state general fund.

(d) If the amount determined by the department under subsection (a)(1)(B) is less than eight million five hundred thousand dollars ($8,500,000), the difference of:

(1) eight million five hundred thousand dollars ($8,500,000); minus

(2) the amount determined by the department under subsection (a)(1)(B);

shall be paid in four (4) equal quarterly payments to the northwest Indiana regional development authority established by IC 36-7.5-2-1 instead of the state general fund. Any amounts paid under this subsection shall be used by the northwest Indiana regional development authority only to establish or improve public mass rail transportation systems in Lake County.

As added by P.L.151-2001, SEC.5. Amended by P.L.178-2002, SEC.51; P.L.166-2014, SEC.25; P.L.192-2015, SEC.4; P.L.255-2015, SEC.59; P.L.204-2016, SEC.26; P.L.108-2019, SEC.122; P.L.293-2019, SEC.44; P.L.156-2020, SEC.24.

IC 6-3.1-21Chapter 21. Earned Income Tax Credit

6-3.1-21-1Creation of credit 6-3.1-21-2Repealed 6-3.1-21-3Repealed 6-3.1-21-4Repealed 6-3.1-21-5Repealed 6-3.1-21-6Credit; amount; calculation; eligible persons; determination of taxpayer's earned income; cost of living adjustments under the Internal Revenue Code 6-3.1-21-7Repealed 6-3.1-21-8Claim for credit on return; submission of information 6-3.1-21-9Application of credit to TANF 6-3.1-21-10Repealed

IC 6-3.1-21-1Creation of credit Sec. 1. This chapter creates the Indiana earned income tax credit.

As added by P.L.273-1999, SEC.227.

IC 6-3.1-21-2RepealedAs added by P.L.273-1999, SEC.227. Repealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-21-3RepealedAs added by P.L.273-1999, SEC.227. Repealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-21-4RepealedAs added by P.L.273-1999, SEC.227. Repealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-21-5RepealedAs added by P.L.273-1999, SEC.227. Repealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-21-6Credit; amount; calculation; eligible persons; determination of taxpayer's earned income; cost of living adjustments under the Internal Revenue Code Sec. 6. (a) Except as provided by subsections (b), (d), and (e), an individual who is eligible for an earned income tax credit under Section 32 of the Internal Revenue Code as in effect on January 1, 2023, is eligible for a credit under this chapter equal to ten percent (10%) of the amount of the federal earned income tax credit that the individual:

(1) is eligible to receive in the taxable year; and

(2) claimed for the taxable year;

under Section 32 of the Internal Revenue Code as in effect on January 1, 2023.

(b) 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 amount of the credit is equal to the product of:

(1) the amount determined under subsection (a); multiplied by

(2) the quotient of the taxpayer's income taxable in Indiana divided by the taxpayer's total income.

(c) If the credit amount exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the excess shall be refunded to the taxpayer.

(d) If a taxpayer properly elects to determine the taxpayer's earned income in accordance with the federal Bipartisan Budget Act of 2018 for purposes of the credit under Section 32 of the Internal Revenue Code for a taxable year beginning after December 31, 2016, the election shall be treated as being made for purposes of the credit under this chapter.

(e) The minimum earned income amounts and phaseout threshold amounts for the credit under this section are subject to the same cost of living adjustments provided in the Internal Revenue Code.

As added by P.L.273-1999, SEC.227. Amended by P.L.192-2002(ss), SEC.114; P.L.131-2008, SEC.17; P.L.146-2008, SEC.325; P.L.1-2009, SEC.52; P.L.229-2011, SEC.87; P.L.242-2015, SEC.23; P.L.214-2018(ss), SEC.11; P.L.168-2021, SEC.1; P.L.201-2023, SEC.100.

IC 6-3.1-21-7RepealedAs added by P.L.273-1999, SEC.227. Repealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-21-8Claim for credit on return; submission of information Sec. 8. To obtain a credit under this chapter, a taxpayer must claim the credit in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue all information that the department of state revenue determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.273-1999, SEC.227. Amended by P.L.192-2002(ss), SEC.115; P.L.172-2011, SEC.65; P.L.242-2015, SEC.24.

IC 6-3.1-21-9Application of credit to TANF Sec. 9. (a) The division of family resources shall apply the refundable portion of the credits provided under this chapter as expenditures toward Indiana's maintenance of effort under the federal Temporary Assistance for Needy Families (TANF) program (45 CFR 265).

(b) The department of state revenue shall collect and provide the data requested by the division of family resources that is necessary to comply with this section.

As added by P.L.273-1999, SEC.227. Amended by P.L.145-2006, SEC.17; P.L.1-2009, SEC.53.

IC 6-3.1-21-10RepealedAs added by P.L.273-1999, SEC.227. Amended by P.L.291-2001, SEC.152; P.L.192-2002(ss), SEC.116; P.L.246-2005, SEC.74. Repealed by P.L.146-2008, SEC.817.

IC 6-3.1-22Chapter 22. Residential Historic Rehabilitation Credit

6-3.1-22-1Repealed 6-3.1-22-2"Office" 6-3.1-22-3"Preservation" 6-3.1-22-4"Qualified expenditures" 6-3.1-22-5"Rehabilitation" 6-3.1-22-6"State tax liability" 6-3.1-22-7"Taxpayer" 6-3.1-22-8Entitlement to credit 6-3.1-22-9Qualifying conditions; assistance to office by department of natural resources 6-3.1-22-10Certifications for rehabilitation work 6-3.1-22-11Credit claimed on tax return 6-3.1-22-12Reduction of adjusted basis 6-3.1-22-13Recaptured credit 6-3.1-22-14Credit exceeding tax liability 6-3.1-22-15Maximum credit; restrictions 6-3.1-22-15.5Residential historic rehabilitation credit; eligibility 6-3.1-22-16Adoption of rules

IC 6-3.1-22-1RepealedAs added by P.L.129-2001, SEC.7. Repealed by P.L.166-2014, SEC.26.

IC 6-3.1-22-2"Office" Sec. 2. As used in this chapter, "office" means the office of community and rural affairs established by IC 4-4-9.7-4.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.27.

IC 6-3.1-22-3"Preservation" Sec. 3. (a) As used in this chapter, "preservation" means the application of measures to sustain the form, integrity, and material of:

(1) a building or structure; or

(2) the form and vegetative cover of property.

(b) The term includes stabilization work and the maintenance of historic building materials.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-4"Qualified expenditures" Sec. 4. (a) As used in this chapter, "qualified expenditures" means expenditures for preservation or rehabilitation of a structure that enables the structure to be principally used and occupied by the taxpayer as the taxpayer's residence.

(b) The term does not include costs that are incurred to do the following:

(1) Acquire a property or an interest in a property.

(2) Pay taxes due on a property.

(3) Enlarge an existing structure.

(4) Pay realtors' fees associated with a structure or property.

(5) Pay paving and landscaping costs.

(6) Pay sales and marketing costs.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-5"Rehabilitation" Sec. 5. As used in this chapter, "rehabilitation" means the process of returning a property to a state of utility through repair or alteration that makes possible an efficient contemporary residential use while preserving the parts or features of the property that are significant to the historical, architectural, or archeological values of the property.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-6"State tax liability" Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax) as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-7"Taxpayer" Sec. 7. As used in this chapter, "taxpayer" means:

(1) an individual filing a single return; or

(2) a married couple filing a joint return.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-8Entitlement to credit Sec. 8. (a) Subject to section 14 of this chapter, and except as provided in section 15.5 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer completes the preservation or rehabilitation of historic property and obtains the certifications required under section 9 of this chapter.

(b) The amount of the credit is equal to the lesser of ten thousand dollars ($10,000) or twenty percent (20%) of the qualified expenditures that:

(1) the taxpayer makes for the preservation or rehabilitation of historic property; and

(2) are approved by the office.

(c) In the case of a husband and wife who:

(1) own and rehabilitate a historic property jointly; and

(2) file separate tax returns;

the husband and wife may take the credit in equal shares or one (1) spouse may take the whole credit.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.28; P.L.125-2025, SEC.2.

IC 6-3.1-22-9Qualifying conditions; assistance to office by department of natural resources Sec. 9. (a) A taxpayer qualifies for a credit under section 8 of this chapter if all of the following conditions are met:

(1) The historic property is:

(A) located in Indiana;

(B) at least fifty (50) years old; and

(C) except as provided in section 8(c) of this chapter, owned by the taxpayer.

(2) The office certifies that the historic property is listed in the register of Indiana historic sites and historic structures.

(3) The office certifies that the taxpayer submitted a proposed preservation or rehabilitation plan to the office that complies with the standards of the office.

(4) The office certifies that the preservation or rehabilitation work that is the subject of the credit substantially complies with the proposed plan referred to in subdivision (3).

(5) The preservation or rehabilitation work is completed in not more than:

(A) two (2) years; or

(B) five (5) years if the preservation or rehabilitation plan indicates that the preservation or rehabilitation is initially planned for completion in phases.

The time in which work must be completed begins when the physical work of construction or destruction in preparation for construction begins.

(6) The historic property is principally used and occupied by the taxpayer as the taxpayer's residence.

(7) The qualified expenditures for preservation or rehabilitation of the historic property exceed ten thousand dollars ($10,000).

(b) The division of historic preservation and archaeology of the department of natural resources shall assist the office, as requested and at no expense to the office, in making the certifications under this section.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.29.

IC 6-3.1-22-10Certifications for rehabilitation work Sec. 10. (a) The office shall provide the certifications referred to in section 9(3) and 9(4) of this chapter if a taxpayer's proposed preservation or rehabilitation plan complies with the standards of the office and the taxpayer's preservation or rehabilitation work complies with the plan.

(b) The taxpayer may appeal a final determination by the office under this chapter to the tax court.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.30.

IC 6-3.1-22-11Credit claimed on tax return Sec. 11. To obtain a credit under this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certifications by the office required under section 9 of this chapter and all information that the department of state revenue determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.31.

IC 6-3.1-22-12Reduction of adjusted basis Sec. 12. For purposes of IC 6-3, the adjusted basis of the structure shall be reduced by the amount of a credit granted under this chapter.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-13Recaptured credit Sec. 13. (a) A credit claimed under this chapter shall be recaptured from the taxpayer if:

(1) the property is transferred less than five (5) years after completion of the certified preservation or rehabilitation work; or

(2) less than five (5) years after completion of the certified preservation or rehabilitation, additional modifications to the property are undertaken that do not meet the standards of the office.

(b) If the recapture of a credit is required under this section, an amount equal to the credit recaptured shall be added to the tax liability of the taxpayer for the taxable year during which the credit is recaptured.

As added by P.L.129-2001, SEC.7. Amended by P.L.166-2014, SEC.32.

IC 6-3.1-22-14Credit exceeding tax liability Sec. 14. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for fifteen (15) taxable years following the unused credit year.

(b) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (a).

(c) A taxpayer is not entitled to any carryback or refund of any unused credit.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22-15Maximum credit; restrictions Sec. 15. (a) The amount of tax credits allowed under this chapter may not exceed two hundred fifty thousand dollars ($250,000) in a state fiscal year beginning July 1, 2001, or thereafter.

(b) If the total credits approved by the office in a state fiscal year under this chapter equal the maximum amount allowable in the state fiscal year under subsection (a), the office shall not approve an additional application for the credits in that state fiscal year.

(c) If a credit allowable under section 8 of this chapter results in credits being granted in excess of the maximum amount allowable in a state fiscal year under this section, the office shall approve a credit of the maximum amount allowable under this section for that state fiscal year minus the previously approved credits for that state fiscal year.

(d) For purposes of this section, a credit allowed for qualified expenditures incurred before July 1, 2024, and approved by the office before March 10, 2025, shall be treated as being allowed for a state fiscal year beginning before July 1, 2024.

As added by P.L.129-2001, SEC.7. Amended by P.L.125-2025, SEC.3.

IC 6-3.1-22-15.5Residential historic rehabilitation credit; eligibility Sec. 15.5. If:

(1) a taxpayer was granted a credit under this chapter by the office before March 10, 2025, for a qualified expenditure; and

(2) the expenditure was claimed in a taxable year other than the year in which the preservation or rehabilitation of the historic property was performed;

the credit described in this section may be claimed in the first taxable year beginning after December 31, 2024, and may be carried forward as set forth in section 14 of this chapter.

As added by P.L.125-2025, SEC.4.

IC 6-3.1-22-16Adoption of rules Sec. 16. The following may adopt rules under IC 4-22-2 to carry out this chapter:

(1) The department of state revenue.

(2) The division.

As added by P.L.129-2001, SEC.7.

IC 6-3.1-22.2Chapter 22.2. RepealedRepealed by P.L.1-2007, SEC.248.

IC 6-3.1-23Chapter 23. RepealedRepealed by P.L.190-2014, SEC.18.

IC 6-3.1-23.8Chapter 23.8. RepealedRepealed by P.L.192-2002(ss), SEC.191.

IC 6-3.1-24Chapter 24. Venture Capital Investment Tax Credit

6-3.1-24-1"Pass through entity" defined 6-3.1-24-2"Qualified Indiana business" defined 6-3.1-24-2.5"Qualified Indiana investment fund" 6-3.1-24-3"Qualified investment capital" defined 6-3.1-24-4"State tax liability" defined 6-3.1-24-4.5"Substantial presence" 6-3.1-24-5"Taxpayer" defined 6-3.1-24-6Credit; eligibility 6-3.1-24-7Certification of qualified Indiana business; forms; fee 6-3.1-24-7.5Certification of qualified Indiana investment fund; forms 6-3.1-24-8Maximum allowable credit; notice to investors 6-3.1-24-8.5Maximum allowable credit; qualified investment fund; notice to investors 6-3.1-24-9Repealed 6-3.1-24-10Repealed 6-3.1-24-11Pass through entity; eligibility of owners, shareholders, or members for credit 6-3.1-24-12Carryover of unused tax credit; assignment of all or part of the credit 6-3.1-24-12.5Certification of investment plan; application; proof of investment within two years 6-3.1-24-13Returns; submission of certificates from Indiana economic development corporation 6-3.1-24-14Tax credit not considered a security; issuance or assignment not subject to the Indiana securities law 6-3.1-24-15Maximum annual statewide allowance for credits

IC 6-3.1-24-1"Pass through entity" defined Sec. 1. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.192-2002(ss), SEC.119.

IC 6-3.1-24-2"Qualified Indiana business" defined Sec. 2. As used in this chapter, "qualified Indiana business" means an independently owned and operated business that is certified as a qualified Indiana business by the Indiana economic development corporation under section 7 of this chapter.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.4-2005, SEC.96.

IC 6-3.1-24-2.5"Qualified Indiana investment fund" Sec. 2.5. As used in this chapter, "qualified Indiana investment fund" means any private fund that meets the definition of a venture capital fund in 17 CFR 275.203(l)-1 and that is certified by the Indiana economic development corporation as provided in section 7.5 of this chapter.

As added by P.L.165-2021, SEC.76.

IC 6-3.1-24-3"Qualified investment capital" defined Sec. 3. As used in this chapter, "qualified investment capital" means debt or equity capital that is provided to a qualified Indiana business or a qualified Indiana investment fund after December 31, 2003. However, the term does not include debt that:

(1) is provided by a financial institution (as defined in IC 5-13-4-10) after May 15, 2005; and

(2) is secured by a valid mortgage, security agreement, or other agreement or document that establishes a collateral or security position for the financial institution that is senior to all collateral or security interests of other taxpayers that provide debt or equity capital to the qualified Indiana business.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.193-2005, SEC.16; P.L.165-2021, SEC.77.

IC 6-3.1-24-4"State tax liability" defined Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-2.5 (state gross retail and use tax);

(2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(3) IC 6-5.5 (the financial institutions tax); and

(4) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the 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 chapter.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.154-2020, SEC.18.

IC 6-3.1-24-4.5"Substantial presence" Sec. 4.5. (a) As used in this chapter, "substantial presence" means:

(1) maintaining a company headquarters in Indiana; or

(2) maintaining at least seventy-five percent (75%) of a company's total payroll in Indiana.

(b) Notwithstanding subsection (a), a company receiving qualified investment capital from a qualified Indiana investment fund shall be considered to have substantial presence in Indiana if the company commits to relocate:

(1) its headquarters; or

(2) seventy-five percent (75%) of its total payroll;

to Indiana within one (1) year of receiving qualified investment capital from a qualified Indiana investment fund.

As added by P.L.165-2021, SEC.78.

IC 6-3.1-24-5"Taxpayer" defined Sec. 5. As used in this chapter, "taxpayer" means an individual or entity, including a pass through entity, that has any state tax liability.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.1.

IC 6-3.1-24-6Credit; eligibility Sec. 6. A taxpayer that:

(1) provides qualified investment capital to a qualified Indiana business or a qualified Indiana investment fund; and

(2) fulfills the requirements of the Indiana economic development corporation under section 12.5 of this chapter;

is entitled to a credit against the taxpayer's state tax liability in a taxable year equal to the amount specified in section 8 or 8.5 of this chapter, whichever is applicable.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.2; P.L.4-2005, SEC.97; P.L.165-2021, SEC.79.

IC 6-3.1-24-7Certification of qualified Indiana business; forms; fee Sec. 7. (a) The Indiana economic development corporation shall certify that a business is a qualified Indiana business if the corporation determines that the business:

(1) has its headquarters in Indiana;

(2) is primarily focused on professional motor vehicle racing, commercialization of research and development, technology transfers, or the application of new technology, or is determined by the Indiana economic development corporation to have significant potential to:

(A) bring substantial capital into Indiana;

(B) create jobs;

(C) diversify the business base of Indiana; or

(D) significantly promote the purposes of this chapter in any other way;

(3) has had average annual revenues of less than ten million dollars ($10,000,000) in the two (2) years preceding the year in which the business received qualified investment capital from a taxpayer claiming a credit under this chapter;

(4) has:

(A) at least fifty percent (50%) of its employees residing in Indiana; or

(B) at least seventy-five percent (75%) of its assets located in Indiana; and

(5) is not engaged in a business involving:

(A) real estate;

(B) real estate development;

(C) insurance;

(D) professional services provided by an accountant, a lawyer, or a physician;

(E) retail sales, except when:

(i) the primary purpose of the business is the development or support of electronic commerce using the Internet; or

(ii) the business is engaged in retail sales as a method to sell a unique product that the business developed, for which the business holds patents, or of which the business otherwise has ownership; or

(F) oil and gas exploration.

(b) A business shall apply to be certified as a qualified Indiana business on a form prescribed by the Indiana economic development corporation.

(c) If a business is certified as a qualified Indiana business under this section, the Indiana economic development corporation shall provide a copy of the certification to the investors in the qualified Indiana business for inclusion in tax filings.

(d) Except as provided in subsection (e), the Indiana economic development corporation may impose an application fee of not more than two hundred dollars ($200).

(e) The Indiana economic development corporation may not impose the application fee authorized by subsection (d) for applications submitted during the period beginning July 1, 2011, and ending June 30, 2013.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.3; P.L.4-2005, SEC.98; P.L.193-2005, SEC.17; P.L.172-2011, SEC.66; P.L.162-2026, SEC.9.

IC 6-3.1-24-7.5Certification of qualified Indiana investment fund; forms Sec. 7.5. (a) The Indiana economic development corporation may certify that an investment fund is a qualified Indiana investment fund if the corporation determines that the fund meets the definition in section 2.5 of this chapter and the requirements in subsection (b).

(b) The Indiana economic development corporation may only certify a fund as a qualified Indiana investment fund if the fund makes investments according to a policy that:

(1) requires eligible companies to be primarily focused on the commercialization of research and development, technology transfer, or application of new technology; and

(2) prioritizes investments in companies that:

(A) have received a grant, loan, or other investment funds provided by the Indiana twenty-first century research and technology fund established by IC 5-28-16-2; or

(B) maintain a substantial presence in Indiana.

The policy referred to in this subsection shall apply only to investable capital in the fund, excluding management fees, legal fees, and other expenses incurred in the operation of the fund.

(c) An investment fund must apply to be certified as a qualified Indiana investment fund on a form prescribed by the Indiana economic development corporation.

(d) If an investment fund is certified as a qualified Indiana investment fund under this section, the Indiana economic development corporation shall provide a copy of the certification to the investors in the qualified Indiana investment fund for inclusion in tax filings.

As added by P.L.165-2021, SEC.80. Amended by P.L.162-2026, SEC.10.

IC 6-3.1-24-8Maximum allowable credit; notice to investors Sec. 8. (a) A certification provided under section 7 of this chapter must include notice to the investors of the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to the qualified Indiana business.

(b) For a calendar year ending before January 1, 2011, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of:

(1) the total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%); or

(2) five hundred thousand dollars ($500,000).

(c) For a calendar year beginning after December 31, 2010, and ending before January 1, 2022, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following:

(1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty percent (20%).

(2) One million dollars ($1,000,000).

(d) For a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business equals the lesser of the following:

(1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by twenty-five percent (25%).

(2) One million dollars ($1,000,000).

(e) Notwithstanding subsection (d), for a calendar year beginning after December 31, 2021, the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a particular qualified Indiana business, if the qualified Indiana business is a minority business enterprise, a women's business enterprise, or a veteran owned business equals the lesser of the following:

(1) The total amount of qualified investment capital provided to the qualified Indiana business in the calendar year, multiplied by thirty percent (30%).

(2) One million five hundred thousand dollars ($1,500,000).

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.172-2011, SEC.67; P.L.165-2021, SEC.81; P.L.135-2022, SEC.10.

IC 6-3.1-24-8.5Maximum allowable credit; qualified investment fund; notice to investors Sec. 8.5. (a) A certification provided under section 7.5 of this chapter must include notice to investors of the maximum amount of tax credits available under this chapter for the provision of qualified investment capital to the qualified Indiana investment fund.

(b) The maximum amount of tax credits available under this chapter for the provision of qualified investment capital to a qualified Indiana investment fund equals the lesser of the following:

(1) The total amount of qualified investment capital provided to the qualified Indiana investment fund in the calendar year, multiplied by twenty percent (20%).

(2) Five million dollars ($5,000,000).

As added by P.L.165-2021, SEC.82.

IC 6-3.1-24-9RepealedAs added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.4; P.L.4-2005, SEC.99; P.L.193-2005, SEC.18; P.L.211-2007, SEC.28; P.L.172-2011, SEC.68; P.L.137-2012, SEC.60; P.L.288-2013, SEC.47; P.L.250-2015, SEC.30; P.L.237-2017, SEC.43. Repealed by P.L.165-2021, SEC.83.

IC 6-3.1-24-10RepealedAs added by P.L.192-2002(ss), SEC.119. Repealed by P.L.165-2021, SEC.84.

IC 6-3.1-24-11Pass through entity; eligibility of owners, shareholders, or members for credit Sec. 11. If a pass through entity is entitled to a credit under section 6 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

If any or all of the tax credit is passed through to a shareholder, partner, or member of a pass through entity, the amount of the tax credit that is passed through to a shareholder, partner, or member of a pass through entity may not be applied against the pass through entity's state tax liability, nor may the pass through entity assign any unused credit under section 12(b) of this chapter as effective July 1, 2020.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.158-2019, SEC.13.

IC 6-3.1-24-12Carryover of unused tax credit; assignment of all or part of the credit Sec. 12. (a) If the amount of the credit determined under section 8 or 8.5 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following five (5) taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or a refund of any unused credit amount.

(b) If the corporation certifies a credit for an investment that is made after June 30, 2020, and before July 1, 2029, the taxpayer may assign all or part of the credit to which the taxpayer is entitled under this chapter, subject to the limitations set forth in subsection (c).

(c) The following apply to the assignment of a credit under this chapter:

(1) A taxpayer may not assign all or part of a credit or credits to a particular person in amounts that are less than ten thousand dollars ($10,000).

(2) Before a credit may be assigned, the taxpayer must notify the corporation of the assignment of the credit in the manner prescribed by the corporation.

(3) An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department.

(4) Once a particular credit or credits are assigned, the assignee may not assign all or part of the credit or credits to another person.

(5) A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of that part of the credit assigned.

Nothing in this subsection shall prevent a taxpayer from combining individual credits of less than ten thousand dollars ($10,000) for assignment.

(d) The corporation shall collect and compile data on the assignments of tax credits under this chapter and determine the effectiveness of each assignment in getting projects completed. The corporation shall report its findings under this subsection to the legislative council in an electronic format under IC 5-14-6 before November 1, 2022. This subsection expires January 1, 2023.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.5; P.L.193-2005, SEC.19; P.L.158-2019, SEC.14; P.L.165-2021, SEC.85; P.L.162-2026, SEC.11.

IC 6-3.1-24-12.5Certification of investment plan; application; proof of investment within two years Sec. 12.5. (a) A taxpayer wishing to obtain a credit under this chapter must apply to the Indiana economic development corporation for a certification that the taxpayer's proposed investment plan would qualify for a credit under this chapter.

(b) The application required under subsection (a) must include:

(1) the name and address of the taxpayer;

(2) the name and address of each proposed recipient of the taxpayer's proposed investment;

(3) the amount of the proposed investment;

(4) a copy of the certification issued under section 7 or 7.5 of this chapter that the proposed recipient is a qualified Indiana business or qualified Indiana investment fund, whichever is applicable; and

(5) any other information required by the Indiana economic development corporation.

(c) If the Indiana economic development corporation determines that the proposed investment would qualify the taxpayer for a credit under this chapter, the corporation may certify the taxpayer's proposed investment plan.

(d) To receive a credit under this chapter, the taxpayer must provide qualified investment capital to a qualified Indiana business or qualified Indiana investment fund, whichever is applicable, according to the taxpayer's certified investment plan within two (2) years after the date on which the Indiana economic development corporation certifies the investment plan.

(e) Upon making the investment required under subsection (d), the taxpayer shall provide proof of the investment to the Indiana economic development corporation.

(f) Upon receiving proof of a taxpayer's investment under subsection (e), the Indiana economic development corporation shall issue the taxpayer a certificate indicating that the taxpayer has fulfilled the requirements of the corporation and that the taxpayer is entitled to a credit under this chapter.

(g) Notwithstanding subsection (f), if a taxpayer is issued a certificate by the Indiana economic development corporation for an investment made in a qualified Indiana investment fund, a taxpayer may not claim the credit as provided in section 13 of this chapter before July 1, 2023.

(h) A taxpayer forfeits the right to a tax credit attributable to an investment certified under subsection (c) if the taxpayer fails to make the proposed investment within the period required under subsection (d).

As added by P.L.214-2003, SEC.6. Amended by P.L.4-2005, SEC.100; P.L.193-2005, SEC.20; P.L.165-2021, SEC.86.

IC 6-3.1-24-13Returns; submission of certificates from Indiana economic development corporation Sec. 13. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department, along with the taxpayer's state tax return or returns, a copy of the certificate issued by the Indiana economic development corporation to the taxpayer under section 12.5(f) of this chapter and all information that the department determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.192-2002(ss), SEC.119. Amended by P.L.214-2003, SEC.7; P.L.4-2005, SEC.101.

IC 6-3.1-24-14Tax credit not considered a security; issuance or assignment not subject to the Indiana securities law Sec. 14. A certificate or tax credit issued under this chapter or assigned under section 12(b) of this chapter may not be considered to be a security for purposes of IC 23. The issuance or assignment of a certificate or tax credit under this chapter is not subject to the Indiana securities law under IC 23.

As added by P.L.106-2014, SEC.1. Amended by P.L.158-2019, SEC.15.

IC 6-3.1-24-15Maximum annual statewide allowance for credits Sec. 15. (a) Before January 1, 2022, the total amount of credits that may be awarded by the Indiana economic development corporation under this chapter for investment plans certified as provided in section 12.5 of this chapter that propose investing qualified investment capital in a particular qualified Indiana business during a particular calendar year is twelve million five hundred thousand dollars ($12,500,000).

(b) After December 31, 2021, the total amount of credits that may be awarded by the Indiana economic development corporation under this chapter for investment plans certified as provided in section 12.5 of this chapter that propose investing qualified investment capital in a particular qualified Indiana business or qualified Indiana investment fund during a particular calendar year is twenty million dollars ($20,000,000), provided that not more than seven million five hundred thousand dollars ($7,500,000) may be awarded for proposed investments of qualified investment capital in a qualified Indiana investment fund.

As added by P.L.165-2021, SEC.87.

IC 6-3.1-25.2Chapter 25.2. RepealedRepealed by P.L.288-2013, SEC.48.

IC 6-3.1-26Chapter 26. Hoosier Business Investment Tax Credit

6-3.1-26-0.3Legalization of actions taken by Indiana economic development corporation in administration of chapter after February 8, 2005, and before May 11, 2005 6-3.1-26-1Repealed 6-3.1-26-2Repealed 6-3.1-26-2.5"Corporation" 6-3.1-26-3Repealed 6-3.1-26-3.1"Digital manufacturing equipment" 6-3.1-26-4Repealed 6-3.1-26-5"Highly compensated employee" 6-3.1-26-5.5"Motion picture or audio production" 6-3.1-26-6"New employee" 6-3.1-26-7"Pass through entity" 6-3.1-26-8"Qualified investment" 6-3.1-26-8.5"Logistics investment" 6-3.1-26-9"State tax liability" 6-3.1-26-10Repealed 6-3.1-26-11"Taxpayer" 6-3.1-26-12Purpose of credit 6-3.1-26-13Entitlement to credit 6-3.1-26-14Amount of credit 6-3.1-26-15Carry forward of credit; acceleration of certain credits 6-3.1-26-16Shareholder or partner entitled to credit; acceleration of certain credits 6-3.1-26-17Application 6-3.1-26-18Agreement for credit; conditions 6-3.1-26-19Credit disallowed for relocated jobs 6-3.1-26-20Certification of qualified investments 6-3.1-26-21Agreement for credit; contents 6-3.1-26-22Certificate of verification 6-3.1-26-23Noncompliance with agreement; assessments 6-3.1-26-24Repealed 6-3.1-26-25Biennial evaluation; reporting requirements 6-3.1-26-26Repealed 6-3.1-26-27Credit subject to annual aggregate credit limit

IC 6-3.1-26-0.3Legalization of actions taken by Indiana economic development corporation in administration of chapter after February 8, 2005, and before May 11, 2005 Sec. 0.3. The actions taken by the Indiana economic development corporation to administer this chapter, as amended by P.L.4-2005, after February 8, 2005, and before May 11, 2005, are legalized and validated.

As added by P.L.220-2011, SEC.142.

IC 6-3.1-26-1RepealedAs added by P.L.224-2003, SEC.197. Repealed by P.L.288-2013, SEC.49.

IC 6-3.1-26-2RepealedAs added by P.L.224-2003, SEC.197. Repealed by P.L.4-2005, SEC.148.

IC 6-3.1-26-2.5"Corporation" Sec. 2.5. As used in this chapter, "corporation" means the Indiana economic development corporation established by IC 5-28-3-1.

As added by P.L.4-2005, SEC.102.

IC 6-3.1-26-3RepealedAs added by P.L.224-2003, SEC.197. Repealed by P.L.145-2016, SEC.30.

IC 6-3.1-26-3.1"Digital manufacturing equipment" Sec. 3.1. As used in this chapter, "digital manufacturing equipment" means any production equipment utilized within an integrated computer network system that provides for the onsite manufacturing of a three-dimensional part or product using material that is joined or solidified using multiple layers under computer control pursuant to a computer aided design for rapid or on demand production.

As added by P.L.158-2019, SEC.16.

IC 6-3.1-26-4RepealedAs added by P.L.224-2003, SEC.197. Repealed by P.L.288-2013, SEC.50.

IC 6-3.1-26-5"Highly compensated employee" Sec. 5. As used in this chapter, "highly compensated employee" has the meaning set forth in Section 414(q) of the Internal Revenue Code.

As added by P.L.224-2003, SEC.197.

IC 6-3.1-26-5.5"Motion picture or audio production" Sec. 5.5. As used in this chapter, "motion picture or audio production" means a:

(1) feature length film;

(2) video;

(3) television series;

(4) commercial;

(5) music video or an audio recording; or

(6) corporate production;

for any combination of theatrical, television, or other media viewing or as a television pilot. The term does not include a motion picture that is obscene (as described in IC 35-49-2-1) or television coverage of news or athletic events.

As added by P.L.199-2005, SEC.18.

IC 6-3.1-26-6"New employee" Sec. 6. As used in this chapter, "new employee" has the meaning set forth in IC 6-3.1-13-6.

As added by P.L.224-2003, SEC.197.

IC 6-3.1-26-7"Pass through entity" Sec. 7. As used in this chapter, "pass through entity" means a:

(1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);

(2) partnership;

(3) trust;

(4) limited liability company; or

(5) limited liability partnership.

As added by P.L.224-2003, SEC.197.

IC 6-3.1-26-8"Qualified investment" Sec. 8. (a) As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures in Indiana for:

(1) the purchase of new telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, finishing, distribution, transportation, or logistical distribution equipment;

(2) the purchase of new computers and related equipment;

(3) costs associated with the modernization of existing telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, finishing, distribution, transportation, or logistical distribution facilities;

(4) onsite infrastructure improvements;

(5) the construction of new telecommunications, production, manufacturing, fabrication, assembly, extraction, mining, processing, refining, finishing, distribution, transportation, or logistical distribution facilities;

(6) the purchase of retooled or refurbished machinery, and costs associated with retooling existing machinery and equipment;

(7) costs associated with the construction of special purpose buildings and foundations for use in the computer, software, biological sciences, or telecommunications industry;

(8) costs associated with the purchase of machinery, equipment, or special purpose buildings used to make motion pictures or audio productions;

(9) a logistics investment, as described in section 8.5 of this chapter;

(10) the purchase of new:

(A) pollution control and abatement;

(B) energy conservation; or

(C) renewable energy generation;

equipment; and

(11) the purchase of new onsite digital manufacturing equipment;

that are certified by the corporation under this chapter as being eligible for the credit under this chapter.

(b) The term does not include property that can be readily moved outside Indiana.

(c) Notwithstanding subsection (b), the term does include programmable logic controller property.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.103; P.L.199-2005, SEC.19; P.L.137-2006, SEC.6; P.L.288-2013, SEC.51; P.L.158-2019, SEC.17.

IC 6-3.1-26-8.5"Logistics investment" Sec. 8.5. For purposes of this chapter, a "logistics investment" means an expenditure for one (1) or more of the following purposes:

(1) Making an improvement to real property located in Indiana that is related to constructing a new, or modernizing an existing, transportation or logistical distribution facility.

(2) Improving the transportation of goods on Indiana highways, limited to the following:

(A) Upgrading terminal facilities that serve tractors (as defined in IC 9-13-2-180) and semitrailers (as defined in IC 9-13-2-164).

(B) Improving paved access to terminal facilities.

(C) Adding new maintenance areas.

(D) Purchasing new shop equipment having a useful life of at least five (5) years, such as diagnostic equipment, oil delivery systems, air compressors, and truck lifts.

(3) Improving the transportation of goods by rail, limited to the following:

(A) Upgrading or building mainline, secondary, yard, and spur trackage.

(B) Upgrading or replacing bridges to obtain higher load bearing capability.

(C) Upgrading or replacing grade crossings to increase visibility for motorists, including improvements to roadway surfaces, signage and traffic signals, and signal system upgrades and replacements to meet Federal Railroad Administration Positive Train Control regulations.

(D) Upgrading fueling facilities, including upgrading fueling and sanding locomotives or tanks, pumps, piping, containment areas, track pans, lighting, and security.

(E) Upgrading team track facilities, including railroad owned warehouses, loading docks, and transfer stations for loading and unloading freight.

(F) Upgrading shop facilities, including upgrading structures, inspection pits, drop pits, cranes, employee fall protection, lighting, climate control, and break rooms.

(G) Upgrading or building passing lines or automated switches on a rail line.

(4) Improving the transportation of goods by water, limited to the following:

(A) Upgrading or replacing a permanent waterside dock.

(B) Upgrading or building a new terminal facility that serves waterborne transportation.

(C) Improving paved access to a waterborne terminal facility.

(D) Purchasing new equipment having a useful life of at least five (5) years, including diagnostic equipment, an oil delivery system, an air compressor, or a barge lift.

(5) Improving the transportation of goods by air, limited to the following:

(A) Upgrading or building a new cargo building, apron, hangar, warehouse facility, freight forwarding facility, cross-dock distribution facility, or aircraft maintenance facility.

(B) Improving paved access to a terminal or cargo facility.

(C) Upgrading a fueling facility.

(6) Improving warehousing and logistical capabilities, limited to the following:

(A) Upgrading warehousing facilities, including upgrading loading dock doors and loading dock plates, fueling equipment, fueling installations, or dolly drop pads for trailers.

(B) Improving logistical distribution by purchasing new equipment, limited to the following:

(i) Picking modules (systems of racks, conveyors, and controllers).

(ii) Racking equipment.

(iii) Warehouse management systems, including scanning or coding equipment.

(iv) Security equipment.

(v) Temperature control and monitoring equipment.

(vi) Dock levelers and pallet levelers and inverters.

(vii) Conveyors and related controllers, scales, and like equipment.

(viii) Packaging equipment.

(ix) Moving, separating, sorting, and picking equipment.

A logistics investment does not include an expenditure for maintenance expenses.

As added by P.L.288-2013, SEC.52. Amended by P.L.250-2015, SEC.31.

IC 6-3.1-26-9"State tax liability" Sec. 9. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax); and

(3) IC 6-5.5 (the financial institutions tax) or IC 6-8-15 (the 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 chapter.

As added by P.L.224-2003, SEC.197. Amended by P.L.154-2020, SEC.19.

IC 6-3.1-26-10RepealedAs added by P.L.224-2003, SEC.197. Repealed by P.L.199-2005, SEC.40.

IC 6-3.1-26-11"Taxpayer" Sec. 11. As used in this chapter, "taxpayer" means an individual, a corporation, a partnership, or other entity that has state tax liability.

As added by P.L.224-2003, SEC.197.

IC 6-3.1-26-12Purpose of credit Sec. 12. The corporation may make credit awards under this chapter to foster job creation and higher wages in Indiana.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.104.

IC 6-3.1-26-13Entitlement to credit Sec. 13. A taxpayer that:

(1) is awarded a tax credit under this chapter by the corporation; and

(2) complies with the conditions set forth in this chapter and the agreement entered into by the corporation and the taxpayer under this chapter;

is entitled to a credit against the taxpayer's state tax liability in a taxable year.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.105.

IC 6-3.1-26-14Amount of credit Sec. 14. Subject to IC 5-28-6-9, the total amount of a tax credit claimed for a taxable year under this chapter is a percentage determined by the corporation, not to exceed:

(1) ten percent (10%), of the amount of a qualified investment made by the taxpayer in Indiana during that taxable year, if the qualified investment is not a logistics investment;

(2) twenty-five percent (25%) of the amount of a qualified investment made by the taxpayer in Indiana during that taxable year, if the qualified investment is a logistics investment. For purposes of this subdivision, the amount of a qualified investment that is used to determine the credit is limited to the difference of:

(A) the qualified investments made by the taxpayer during the taxable year; minus

(B) one hundred five percent (105%) of the average annual qualified investments made by the taxpayer during the two (2) taxable years immediately preceding the taxable year for which the credit is being claimed. However, if the total of the qualified investments for the earlier year of the two (2) year average is zero (0) and the taxpayer has not claimed the credit for a year that precedes that year, the taxpayer shall subtract only one hundred five percent (105%) of the amount of the qualified investments made during the taxable year immediately preceding the taxable year for which the credit is being claimed; and

(3) for taxable years beginning after December 31, 2018, and before January 1, 2030, fifteen percent (15%) of the amount of a qualified investment made by a taxpayer in Indiana during that taxable year, if the qualified investment made is described under section 8(a)(11) of this chapter.

The taxpayer may carry forward any unused credit as provided in section 15 of this chapter.

As added by P.L.224-2003, SEC.197. Amended by P.L.199-2005, SEC.20; P.L.288-2013, SEC.53; P.L.158-2019, SEC.18; P.L.213-2025, SEC.78.

IC 6-3.1-26-15Carry forward of credit; acceleration of certain credits Sec. 15. (a) Subject to subsection (d) and (g), a taxpayer may carry forward an unused credit for the number of years determined by the corporation, not to exceed nine (9) consecutive taxable years, beginning with the taxable year after the taxable year in which the taxpayer makes the qualified investment.

(b) The amount that a taxpayer may carry forward to a particular taxable year under this section equals the unused part of a tax credit allowed under this chapter.

(c) A taxpayer may:

(1) claim a tax credit under this chapter for a qualified investment; and

(2) carry forward a remainder for one (1) or more different qualified investments;

in the same taxable year.

(d) This subsection applies only to a taxpayer that:

(1) is not a pass through entity;

(2) proposes at least five hundred million dollars ($500,000,000) in total investment over a five (5) year period; and

(3) enters into a written agreement with the corporation under this subsection before January 1, 2017, and agrees to claim tax credits under this chapter for not more than one hundred seventy million dollars ($170,000,000) of qualified investment that is made as part of the investment proposed as described in subdivision (2).

If a tax credit awarded under this chapter exceeds a taxpayer's state income tax liability for the taxable year, notwithstanding subsection (a), the corporation may accelerate to that taxable year the excess amount of the tax credit that could otherwise be carried forward under subsection (a). The excess amount of the tax credit accelerated under this subsection shall be discounted as determined under a written agreement entered into by the taxpayer and the corporation. The discounted amount of the excess tax credit accelerated under this subsection as determined by the corporation may be remitted to the taxpayer as provided in the written agreement between the corporation and the taxpayer. Subject to subsection (f), the total amount of qualified investments for which tax credits may be accelerated under this subsection may not exceed one hundred seventy million dollars ($170,000,000). The requirement for an agreement under section 21(11) of this chapter does not apply to this subsection. This subsection expires December 31, 2025.

(e) A written agreement under subsection (d) may contain a provision for payment of liquidated damages:

(1) to the corporation for failure to comply with the conditions set forth in this chapter and the agreement entered into by the corporation and taxpayer under this chapter; and

(2) that are in addition to an assessment made by the department for noncompliance under section 23 of this chapter.

This subsection expires December 31, 2025.

(f) The total aggregated amount of tax credits that the corporation may discount under subsection (d) and section 16(d) of this chapter in a state fiscal year may not exceed seventeen million dollars ($17,000,000), as determined before the discount is applied. This subsection expires December 31, 2025.

(g) This subsection applies only to a taxpayer that:

(1) is not a pass through entity;

(2) proposes at least two hundred fifty million dollars ($250,000,000) in total investment over a five (5) year period; and

(3) enters into a written agreement with the corporation under this subsection before July 1, 2022, and agrees to claim tax credits under this chapter for not more than one hundred seventy million dollars ($170,000,000) of qualified investment that is made as part of the investment proposed as described in subdivision (2).

If a tax credit awarded under this chapter exceeds a taxpayer's state income tax liability for the taxable year, notwithstanding subsection (a), the corporation may accelerate to that taxable year the excess amount of the tax credit that could otherwise be carried forward under subsection (a). The excess amount of the tax credit accelerated under this subsection shall be discounted as determined under a written agreement entered into by the taxpayer and the corporation. The discounted amount of the excess tax credit accelerated under this subsection as determined by the corporation may be remitted to the taxpayer as provided in the written agreement between the corporation and the taxpayer. Subject to subsection (i), the total amount of qualified investments for which tax credits may be accelerated under this subsection may not exceed one hundred seventy million dollars ($170,000,000). The requirement for an agreement under section 21(11) of this chapter does not apply to this subsection. This subsection expires December 31, 2031.

(h) A written agreement under subsection (g) may contain a provision for payment of liquidated damages:

(1) to the corporation for failure to comply with the conditions set forth in this chapter and the agreement entered into by the corporation and taxpayer under this chapter; and

(2) that are in addition to an assessment made by the department for noncompliance under section 23 of this chapter.

This subsection expires December 31, 2031.

(i) The total aggregated amount of tax credits that the corporation may discount under subsection (g) and section 16(g) of this chapter in a state fiscal year may not exceed seventeen million dollars ($17,000,000), as determined before the discount is applied. This subsection expires December 31, 2031.

As added by P.L.224-2003, SEC.197. Amended by P.L.199-2005, SEC.21; P.L.288-2013, SEC.54; P.L.250-2015, SEC.32; P.L.122-2016, SEC.6; P.L.165-2021, SEC.88.

IC 6-3.1-26-16Shareholder or partner entitled to credit; acceleration of certain credits Sec. 16. (a) If a pass through entity does not have state tax liability against which the tax credit may be applied, a shareholder, member, or partner 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, member, or partner is entitled.

(b) Subject to subsection (d) and (g), a shareholder, member, or partner of a pass through entity that is entitled to a tax credit under this section may carry forward an unused credit for the number of years determined by the corporation, not to exceed nine (9) consecutive taxable years, beginning with the taxable year after the taxable year in which the pass through entity makes the qualified investment.

(c) The amount that a shareholder, member, or partner may carry forward to a particular taxable year under this section equals the unused part of a tax credit allowed under this chapter to which the shareholder, member, or partner is entitled.

(d) This subsection applies only to a pass through entity that:

(1) proposes at least five hundred million dollars ($500,000,000) in total investment over a five (5) year period; and

(2) enters into a written agreement with the corporation under this subsection before January 1, 2017, and the shareholders, members, or partners of the pass through entity agree to claim tax credits under this chapter for not more than one hundred seventy million dollars ($170,000,000) of qualified investment that is made as part of the investment proposed as described in subdivision (1).

Notwithstanding subsection (b), the corporation may accelerate to the current taxable year the excess tax credit amount that could otherwise be carried forward by all shareholders, members, or partners of a pass through entity under subsection (b). The excess amount of the tax credit accelerated under this subsection shall be discounted as determined under a written agreement entered into by the pass through entity and the corporation. Subject to subsection (f), the total amount of qualified investments for which tax credits may be accelerated under this subsection may not exceed one hundred seventy million dollars ($170,000,000). The discounted amount of the excess tax credit accelerated under this subsection as determined by the corporation may be remitted to the shareholders, members, or partners of the pass through entity as provided in the written agreement between the corporation and the pass through entity. The requirement for an agreement under section 21(11) of this chapter does not apply to this subsection. This subsection expires December 31, 2025.

(e) A written agreement under subsection (d) may contain a provision for payment of liquidated damages:

(1) to the corporation for failure to comply with the conditions set forth in this chapter and the agreement entered into by the corporation and pass through entity under this chapter;

(2) that are personally guaranteed by the shareholders, members, or partners of the pass through entity; and

(3) that are in addition to an assessment made by the department for noncompliance under section 23 of this chapter.

This subsection expires December 31, 2025.

(f) The total aggregated amount of tax credits that the corporation may discount under subsection (d) and section 15(d) of this chapter in a state fiscal year may not exceed seventeen million dollars ($17,000,000), as determined before the discount is applied. This subsection expires December 31, 2025.

(g) This subsection applies only to a pass through entity that:

(1) proposes at least two hundred fifty million dollars ($250,000,000) in total investment over a five (5) year period; and

(2) enters into a written agreement with the corporation under this subsection before July 1, 2022, and the shareholders, members, or partners of the pass through entity agree to claim tax credits under this chapter for not more than one hundred seventy million dollars ($170,000,000) of qualified investment that is made as part of the investment proposed as described in subdivision (1).

Notwithstanding subsection (b), the corporation may accelerate to the current taxable year the excess tax credit amount that could otherwise be carried forward by all shareholders, members, or partners of a pass through entity under subsection (b). The excess amount of the tax credit accelerated under this subsection shall be discounted as determined under a written agreement entered into by the pass through entity and the corporation. Subject to subsection (i), the total amount of qualified investments for which tax credits may be accelerated under this subsection may not exceed one hundred seventy million dollars ($170,000,000). The discounted amount of the excess tax credit accelerated under this subsection as determined by the corporation may be remitted to the shareholders, members, or partners of the pass through entity as provided in the written agreement between the corporation and the pass through entity. The requirement for an agreement under section 21(11) of this chapter does not apply to this subsection. This subsection expires December 31, 2031.

(h) A written agreement under subsection (g) may contain a provision for payment of liquidated damages:

(1) to the corporation for failure to comply with the conditions set forth in this chapter and the agreement entered into by the corporation and pass through entity under this chapter;

(2) that are personally guaranteed by the shareholders, members, or partners of the pass through entity; and

(3) that are in addition to an assessment made by the department for noncompliance under section 23 of this chapter.

This subsection expires December 31, 2031.

(i) The total aggregated amount of tax credits that the corporation may discount under subsection (g) and section 15(g) of this chapter in a state fiscal year may not exceed seventeen million dollars ($17,000,000), as determined before the discount is applied. This subsection expires December 31, 2031.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.107; P.L.199-2005, SEC.22; P.L.250-2015, SEC.33; P.L.122-2016, SEC.7; P.L.165-2021, SEC.89.

IC 6-3.1-26-17Application Sec. 17. A person that proposes a project to:

(1) create new jobs or increase wage levels in Indiana; or

(2) substantially enhance the logistics industry by creating new jobs, preserving existing jobs that otherwise would be lost, increasing wages in Indiana, or improving the overall Indiana economy, in the case of a logistics investment being claimed by the applicant;

may apply to the corporation before the taxpayer makes the qualified investment to enter into an agreement for a tax credit under this chapter. The corporation shall prescribe the form of the application.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.106; P.L.288-2013, SEC.55; P.L.145-2016, SEC.31.

IC 6-3.1-26-18Agreement for credit; conditions Sec. 18. After receipt of an application, the corporation may enter into an agreement with the applicant for a credit under this chapter if the corporation determines that all the following conditions exist:

(1) The applicant's project will:

(A) raise the total earnings of employees of the applicant in Indiana; or

(B) substantially enhance the logistics industry by creating new jobs, preserving existing jobs that otherwise would be lost, increasing wages in Indiana, or improving the overall Indiana economy, in the case of a logistics investment being claimed by the applicant.

(2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana.

(3) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project and not receiving the tax credit will result in the applicant not raising the total earnings of the applicant's employees in Indiana, or other employees in Indiana in the case of a logistics investment being claimed by the applicant.

(4) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.

(5) The credit is not prohibited by section 19 of this chapter.

(6) In the case of a qualified investment that is not being claimed as a logistics investment by the applicant, the average wage that will be paid by the taxpayer to its employees (excluding highly compensated employees) at the location after the credit is given will be at least equal to one hundred fifty percent (150%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.107; P.L.199-2005, SEC.23; P.L.1-2006, SEC.143; P.L.288-2013, SEC.56.

IC 6-3.1-26-19Credit disallowed for relocated jobs Sec. 19. A person is not entitled to claim the credit provided by this chapter for any jobs that the person relocates from one (1) site in Indiana to another site in Indiana. Determinations under this section shall be made by the corporation.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.108.

IC 6-3.1-26-20Certification of qualified investments Sec. 20. (a) The corporation shall certify the amount of the qualified investment that is eligible for a credit under this chapter. In determining the credit amount that should be awarded, the corporation shall grant a credit only for the amount of the qualified investment that is directly related to:

(1) expanding the workforce in Indiana; or

(2) substantially enhancing the logistics industry or improving the overall Indiana economy.

(b) A person that desires to claim a tax credit for a qualified investment shall file with the department, in the form that the department may prescribe, an application:

(1) stating separately the amount of the credit awards for qualified investments that have been granted to the taxpayer by the corporation that will be claimed as a credit;

(2) stating separately the amount sought to be claimed as a credit; and

(3) identifying whether the credit will be claimed during the state fiscal year in which the application is filed or the immediately succeeding state fiscal year.

(c) The department shall separately record the time of filing of each application for a credit award for a qualified investment and shall, except as provided in subsection (d), approve the credit to the taxpayer in the chronological order in which the application is filed in the state fiscal year. The department shall promptly notify an applicant whether, or the extent to which, the tax credit is allowable in the state fiscal year proposed by the taxpayer.

(d) If the total credit awards for qualified investments, including carryover credit awards covered by each subsection for a previous state fiscal year, equal the maximum amount allowable in the state fiscal year, an application for such a credit award that is filed later for that same state fiscal year may not be granted by the department. However, if an applicant for which a credit has been awarded and applied for with the department fails to claim the credit, an amount equal to the credit previously applied for but not claimed may be allowed to the next eligible applicant or applicants until the total amount has been allowed.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.109; P.L.288-2013, SEC.57; P.L.250-2015, SEC.34; P.L.158-2019, SEC.19; P.L.135-2022, SEC.11.

IC 6-3.1-26-21Agreement for credit; contents Sec. 21. The corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all the following:

(1) A detailed description of the project that is the subject of the agreement.

(2) The first taxable year for which the credit may be claimed.

(3) The amount of the taxpayer's state tax liability for each tax in the taxable year of the taxpayer that immediately preceded the first taxable year in which the credit may be claimed.

(4) The maximum tax credit amount that will be allowed for each taxable year.

(5) A requirement that the taxpayer shall maintain operations at the project location for at least ten (10) years during the term that the tax credit is available.

(6) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.

(7) A requirement that the taxpayer shall annually report to the corporation the number of new employees who are performing jobs not previously performed by an employee, the average wage of the new employees, the average wage of all employees at the location where the qualified investment is made, if the qualified investment is not being claimed as a logistics investment by the applicant, and any other information the corporation needs to perform the corporation's duties under this chapter.

(8) A requirement that the corporation is authorized to verify with the appropriate state agencies the amounts reported under subdivision (7), and that after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.

(9) This subdivision applies only to a qualified investment that is not being claimed as a logistics investment by the applicant. A requirement that the taxpayer shall pay an average wage to all its employees other than highly compensated employees in each taxable year that a tax credit is available that equals at least one hundred fifty percent (150%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.

(10) A requirement that the taxpayer will keep the qualified investment property that is the basis for the tax credit in Indiana for at least the lesser of its useful life for federal income tax purposes or ten (10) years.

(11) This subdivision applies only to a qualified investment that is not being claimed as a logistics investment by the applicant. A requirement that the taxpayer will maintain at the location where the qualified investment is made during the term of the tax credit a total payroll that is at least equal to the payroll level that existed before the qualified investment was made.

(12) A requirement that the taxpayer shall provide written notification to the corporation not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.

(13) Any other performance conditions that the corporation determines are appropriate.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.110; P.L.288-2013, SEC.58; P.L.145-2016, SEC.32.

IC 6-3.1-26-22Certificate of verification Sec. 22. A taxpayer claiming a credit under this chapter shall submit to the department of state revenue a copy of the corporation's certificate of verification under this chapter for the taxable year. However, failure to submit a copy of the certificate does not invalidate a claim for a credit.

As added by P.L.224-2003, SEC.197. Amended by P.L.145-2016, SEC.33.

IC 6-3.1-26-23Noncompliance with agreement; assessments Sec. 23. If the corporation determines that a taxpayer who has claimed a credit under this chapter is not entitled to the credit because of the taxpayer's noncompliance with the requirements of the tax credit agreement or all the provisions of this chapter, the corporation shall, after giving the taxpayer an opportunity to explain the noncompliance:

(1) notify the department of state revenue of the noncompliance; and

(2) request the department of state revenue to impose an assessment on the taxpayer in an amount that may not exceed the sum of any previously allowed credits under this chapter together with interest and penalties required or permitted by law.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.111; P.L.145-2016, SEC.34.

IC 6-3.1-26-24RepealedAs added by P.L.224-2003, SEC.197. Amended by P.L.28-2004, SEC.66; P.L.4-2005, SEC.112. Repealed by P.L.222-2007, SEC.2.

IC 6-3.1-26-25Biennial evaluation; reporting requirements Sec. 25. (a) On a biennial basis, the corporation shall provide for an evaluation of the tax credit program. The evaluation must include an assessment of the effectiveness of the program in creating new jobs and increasing wages in Indiana and of the revenue impact of the program and may include a review of the practices and experiences of other states with similar programs.

(b) The department shall submit information to the corporation concerning the use of the credit for logistics investments under this chapter. The information submitted by the department must include the following with regard to the previous calendar year for logistics investments:

(1) Summary information regarding the taxpayers and the use of the credit, including the amount of credits approved, the number of taxpayers applying for the credit and claiming the credit, the number of employees who are employed in Indiana by the taxpayers claiming the credit, the amount and type of new qualified expenditures for which the credit was granted, the total dollar amount of new credits claimed and the average amount of the credit claimed per taxpayer, the amount of credits to be carried forward to a subsequent taxable year, and the percentage of the total credits claimed as compared to the total adjusted gross income of all the taxpayers claiming the credit.

(2) The name and address of each taxpayer claiming the credit and the amount of the credit applied for by and granted to each taxpayer.

(c) The corporation shall include information received or compiled under this section in the economic incentives and compliance report submitted under IC 5-28-28 for the calendar year in which the evaluation is completed.

As added by P.L.224-2003, SEC.197. Amended by P.L.4-2005, SEC.113; P.L.288-2013, SEC.59; P.L.145-2016, SEC.35; P.L.130-2018, SEC.27.

IC 6-3.1-26-26RepealedAs added by P.L.224-2003, SEC.197. Amended by P.L.81-2004, SEC.16; P.L.137-2006, SEC.7; P.L.182-2009(ss), SEC.202; P.L.137-2012, SEC.61; P.L.250-2015, SEC.35. Repealed by P.L.237-2017, SEC.44.

IC 6-3.1-26-27Credit subject to annual aggregate credit limit Sec. 27. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.213-2025, SEC.79.

IC 6-3.1-27Chapter 27. RepealedRepealed by P.L.190-2014, SEC.19.

IC 6-3.1-28Chapter 28. RepealedRepealed by P.L.190-2014, SEC.20.

IC 6-3.1-29Chapter 29. Coal Gasification Technology Investment Tax Credit

6-3.1-29-0.1Application of chapter; severability 6-3.1-29-1Legislative intent; use of women and minority businesses as vendors 6-3.1-29-2"Commission" 6-3.1-29-3"Corporation" 6-3.1-29-4"Department" 6-3.1-29-4.5"Fluidized bed combustion technology" 6-3.1-29-5"Indiana coal" 6-3.1-29-6"Integrated coal gasification powerplant" 6-3.1-29-7"Minority" 6-3.1-29-8"Minority business enterprise" 6-3.1-29-9"Pass through entity" 6-3.1-29-10"Qualified investment" 6-3.1-29-11"State tax liability" 6-3.1-29-12"Taxpayer" 6-3.1-29-13"Women's business enterprise" 6-3.1-29-14Credit 6-3.1-29-15Computation of credit amount 6-3.1-29-16Limitations on use of credit 6-3.1-29-17Preconstruction application for credit 6-3.1-29-18Conditions for granting credit application 6-3.1-29-19Terms of required agreement; certificate of compliance 6-3.1-29-20Allocation of credit among shareholders, partners, and members 6-3.1-29-20.5Assignability of credit by contract 6-3.1-29-20.7Findings; election to receive refundable credit 6-3.1-29-21Claiming tax credit

IC 6-3.1-29-0.1Application of chapter; severability Sec. 0.1. (a) The addition of this chapter by P.L.191-2005 applies to taxable years beginning after December 31, 2005.

(b) Each individual provision of P.L.191-2005 is fully severable. If a provision requiring an agreement executed under section 19 of this chapter, as added by P.L.191-2005, to include a particular term is declared invalid, the invalidity of the provision does not affect the validity of:

(1) the other provisions of this chapter, as added by P.L.191-2005;

(2) the other terms of the agreement executed under section 19 of this chapter, as added by P.L.191-2005; or

(3) a tax credit awarded under this chapter, as added by P.L.191-2005.

As added by P.L.220-2011, SEC.143.

IC 6-3.1-29-1Legislative intent; use of women and minority businesses as vendors Sec. 1. The general assembly declares that the opportunity for the participation of underutilized small businesses, especially women and minority business enterprises, in the coal gasification industry is essential if social and economic parity is to be obtained by women and minority business persons and if the economy of Indiana is to be stimulated as contemplated by this chapter. A recipient of a credit under this chapter is encouraged to purchase goods and services from underutilized small businesses, especially women and minority business enterprises.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-2"Commission" Sec. 2. As used in this chapter, "commission" refers to the Indiana utility regulatory commission.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-3"Corporation" Sec. 3. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-4"Department" Sec. 4. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-4.5"Fluidized bed combustion technology" Sec. 4.5. As used in this chapter, "fluidized bed combustion technology" means a technology that involves the combustion of fuel in connection with a bed of inert material, such as limestone or dolomite, which is held in a fluid like state by the means of air or other gasses being passed through the materials.

As added by P.L.122-2006, SEC.10.

IC 6-3.1-29-5"Indiana coal" Sec. 5. As used in this chapter, "Indiana coal" has the meaning set forth in IC 21-47-1-4.

As added by P.L.191-2005, SEC.15. Amended by P.L.2-2007, SEC.125.

IC 6-3.1-29-6"Integrated coal gasification powerplant" Sec. 6. As used in this chapter, "integrated coal gasification powerplant" means a facility that satisfies all the following requirements:

(1) The facility is located in Indiana and is a newly constructed energy generating plant.

(2) The facility converts coal into synthesis gas that can be used as a fuel to generate energy or as a substitute for natural gas.

(3) The facility uses the synthesis gas as a fuel to generate electric energy or produces synthesis gas that can be used as a substitute for natural gas.

(4) The facility is dedicated primarily to production of electricity or gas for use by energy utilities serving Indiana retail electric or gas utility consumers.

As added by P.L.191-2005, SEC.15. Amended by P.L.175-2007, SEC.4.

IC 6-3.1-29-7"Minority" Sec. 7. As used in this chapter, "minority" means a member of a minority group (as defined in IC 4-13-16.5-1.)

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-8"Minority business enterprise" Sec. 8. As used in this chapter, "minority business enterprise" has the meaning set forth in IC 4-13-16.5-1.

As added by P.L.191-2005, SEC.15. Amended by P.L.1-2006, SEC.144.

IC 6-3.1-29-9"Pass through entity" Sec. 9. As used in this chapter, "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 limited liability company;

(4) a limited liability partnership;

(5) a corporation organized under IC 8-1-13; or

(6) a corporation organized under IC 23-17-1 that is an electric cooperative and that has at least one (1) member that is a corporation organized under IC 8-1-13.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-10"Qualified investment" Sec. 10. As used in this chapter, "qualified investment" means a taxpayer's expenditures for:

(1) all real and tangible personal property incorporated in and used as part of an integrated coal gasification powerplant or a fluidized bed combustion technology; and

(2) transmission equipment and other real and personal property located at the site of an integrated coal gasification powerplant or a fluidized bed combustion technology that is employed specifically to serve the integrated coal gasification powerplant or fluidized bed combustion technology.

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.11.

IC 6-3.1-29-11"State tax liability" Sec. 11. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax);

(3) IC 27-1-18-2 (the insurance premiums tax); and

(4) IC 6-2.3 (the utility receipts tax) (before its repeal);

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 chapter.

As added by P.L.191-2005, SEC.15. Amended by P.L.138-2022, SEC.9.

IC 6-3.1-29-12"Taxpayer" Sec. 12. As used in this chapter, "taxpayer" means a person, a corporation, a partnership, or other entity that makes a qualified investment.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-13"Women's business enterprise" Sec. 13. As used in this chapter, "women's business enterprise" has the meaning set forth in IC 4-13-16.5-1.

As added by P.L.191-2005, SEC.15. Amended by P.L.15-2020, SEC.20; P.L.32-2021, SEC.11.

IC 6-3.1-29-14Credit Sec. 14. (a) A taxpayer that:

(1) is awarded a tax credit under this chapter by the corporation; and

(2) complies with the conditions set forth in this chapter and the agreement entered into by the corporation and the taxpayer under this chapter;

is entitled to a credit against the taxpayer's state tax liability for a taxable year in which the taxpayer places into service an integrated coal gasification powerplant or a fluidized bed combustion technology and for the taxable years provided in section 16 of this chapter.

(b) A tax credit awarded under this chapter must be applied against the taxpayer's state tax liability in the following order:

(1) Against the taxpayer's liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).

(2) Against the taxpayer's liability incurred under IC 6-5.5 (the financial institutions tax).

(3) Against the taxpayer's liability incurred under IC 27-1-18-2 (the insurance premiums tax).

(4) Against the taxpayer's liability incurred under IC 6-2.3 (the utility receipts tax) (before its repeal).

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.12; P.L.138-2022, SEC.10.

IC 6-3.1-29-15Computation of credit amount Sec. 15. (a) Subject to section 16 of this chapter, the amount of the credit to which a taxpayer is entitled for a qualified investment in an integrated coal gasification powerplant is equal to the sum of the following:

(1) Ten percent (10%) of the taxpayer's qualified investment for the first five hundred million dollars ($500,000,000) invested.

(2) Five percent (5%) of the amount of the taxpayer's qualified investment that exceeds five hundred million dollars ($500,000,000) only if the facility is dedicated primarily to serving Indiana retail electric or gas utility consumers.

(b) Subject to section 16 of this chapter, the amount of the credit to which a taxpayer is entitled for a qualified investment in a fluidized bed combustion technology is equal to the sum of the following:

(1) Seven percent (7%) of the taxpayer's qualified investment for the first five hundred million dollars ($500,000,000) invested.

(2) Three percent (3%) of the amount of the taxpayer's qualified investment that exceeds five hundred million dollars ($500,000,000).

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.13; P.L.175-2007, SEC.5.

IC 6-3.1-29-16Limitations on use of credit Sec. 16. (a) A credit awarded under section 15 of this chapter must be taken in ten (10) annual installments, beginning with the year in which the taxpayer places into service an integrated coal gasification powerplant or a fluidized bed combustion technology.

(b) Subject to section 20 of this chapter, the amount of an annual installment of the credit awarded under section 15 of this chapter is equal to the amount determined in the last of the following STEPS:

STEP ONE: Determine the lesser of:

(A) the credit amount determined under section 15 of this chapter, divided by ten (10); or

(B) the greater of:

(i) the taxpayer's total state tax liability for the taxable year, multiplied by twenty-five percent (25%); or

(ii) the taxpayer's liability for the utility receipts tax imposed under IC 6-2.3 (before its repeal) for the taxable year.

STEP TWO: Multiply the STEP ONE amount by the percentage of Indiana coal used in the taxpayer's integrated coal gasification powerplant or fluidized bed combustion technology in the taxable year for which the annual installment of the credit is allowed.

(c) If the credit allowed by this chapter is available to a member of an affiliated group of corporations filing a consolidated return under IC 6-2.3-6-5 (before its repeal) or IC 6-3-4-14, the credit shall be applied against the state tax liability of the affiliated group.

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.14; P.L.138-2022, SEC.11.

IC 6-3.1-29-17Preconstruction application for credit Sec. 17. A person that proposes to place a new integrated coal gasification powerplant or fluidized bed combustion technology into service may apply to the corporation before the taxpayer makes the qualified investment to enter into an agreement for a tax credit under this chapter. The corporation shall prescribe the form of the application.

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.15.

IC 6-3.1-29-18Conditions for granting credit application Sec. 18. After receipt of an application, the corporation may enter into an agreement with the applicant for a credit under this chapter if the corporation determines that the taxpayer's proposed investment satisfies the requirements of this chapter.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-29-19Terms of required agreement; certificate of compliance Sec. 19. (a) The corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all the following:

(1) A detailed description of the project that is the subject of the agreement.

(2) The first taxable year for which the credit may be claimed.

(3) The maximum tax credit amount that will be allowed for each taxable year.

(4) A requirement that the taxpayer shall maintain operations at the project location for at least ten (10) years during the term that the tax credit is available.

(5) If the facility is an integrated coal gasification powerplant, a requirement that the taxpayer shall pay an average wage to its employees at the integrated coal gasification powerplant, other than highly compensated employees, in each taxable year that a tax credit is available, that equals at least one hundred twenty-five percent (125%) of the average county wage in the county in which the integrated coal gasification powerplant is located.

(6) For a project involving a qualified investment in an integrated coal gasification powerplant, a requirement that the taxpayer will maintain at the location where the qualified investment is made, during the term of the tax credit, a total payroll that is at least equal to the payroll that existed on the date that the taxpayer placed the integrated coal gasification powerplant into service.

(7) A requirement that:

(A) one hundred percent (100%) of the coal used:

(i) at the integrated coal gasification powerplant, for a project involving a qualified investment in an integrated coal gasification powerplant; or

(ii) as fuel in a fluidized bed combustion unit, in a project involving a qualified investment in a fluidized bed combustion technology, if the unit is dedicated primarily to serving Indiana retail electric utility consumers;

must be Indiana coal, unless the applicant wishes to assign the tax credit as allowed under section 20.5(c) of this chapter or elects to receive a refundable tax credit under section 20.7 of this chapter and the applicant certifies to the corporation that partial use of other coal is necessary to result in lower rates for Indiana retail utility customers; or

(B) seventy-five percent (75%) of the coal used as fuel in a fluidized bed combustion unit must be Indiana coal, in a project involving a qualified investment in a fluidized bed combustion technology, if the unit is not dedicated primarily to serving Indiana retail electric utility consumers.

(8) A requirement that the taxpayer obtain from the commission a determination under IC 8-1-8.5-2 that public convenience and necessity require, or will require:

(A) the construction of the taxpayer's integrated coal gasification powerplant, in the case of a project involving a qualified investment in an integrated coal gasification powerplant; or

(B) the installation of the taxpayer's fluidized bed combustion unit, in the case of a project involving a qualified investment in a fluidized bed combustion technology.

(b) A taxpayer must comply with the terms of the agreement described in subsection (a) to receive an annual installment of the tax credit awarded under this chapter. The corporation shall annually determine whether the taxpayer is in compliance with the agreement. If the corporation determines that the taxpayer is in compliance, the corporation shall issue a certificate of compliance to the taxpayer.

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.16; P.L.175-2007, SEC.6; P.L.52-2008, SEC.1; P.L.182-2009(ss), SEC.203.

IC 6-3.1-29-20Allocation of credit among shareholders, partners, and members Sec. 20. (a) This section applies if a qualified investment is made by a pass through entity or by taxpayers who are co-owners of an integrated coal gasification powerplant or a fluidized bed combustion technology.

(b) If the credit allowed by this chapter for a taxable year is greater than the state tax liability of the pass through entity against which the tax credit may be applied, a shareholder, partner, 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 in excess of the pass through entity's state tax liability for the taxable year; multiplied by

(2) in the case of a pass through entity described in:

(i) section 9(1), 9(2), 9(3), or 9(4) of this chapter, the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled; and

(ii) section 9(5) or 9(6) of this chapter, the relative percentage of the corporation's patronage dividends allocable to the member for the taxable year.

(c) If an integrated coal gasification powerplant or a fluidized bed combustion technology is co-owned by two (2) or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to:

(1) the tax credit determined under sections 15 and 16 of this chapter with respect to the total qualified investment in the integrated coal gasification powerplant or fluidized bed combustion technology; multiplied by

(2) the co-owner's percentage of ownership in the integrated coal gasification powerplant or fluidized bed combustion technology.

(d) The amount of an annual installment of the credit allowed to a shareholder, partner, or member of a pass through entity or a co-owner shall be determined under section 16 of this chapter modified as follows:

(1) Section 16(b) STEP ONE (A) of this chapter shall be based on the percentage of the credit allowed to the shareholder, partner, member, or co-owner under this section.

(2) Section 16(b) STEP ONE (B) of this chapter shall be based on the:

(A) state tax liability; or

(B) utilities receipts tax liability;

of the shareholder, partner, member, or co-owner.

As added by P.L.191-2005, SEC.15. Amended by P.L.122-2006, SEC.17.

IC 6-3.1-29-20.5Assignability of credit by contract Sec. 20.5. (a) Subject to subsection (c), part or all of the credit to which a taxpayer is entitled under section 15 of this chapter may be assigned by the taxpayer to one (1) or more utilities that have entered into a contract that:

(1) is approved by the Indiana utility regulatory commission;

(2) provides for the purchase of electricity or substitute natural gas (as defined in IC 8-1-2-42.1) by the utility from the taxpayer; and

(3) expressly allows the assignment of tax credits under this section.

A tax credit assigned to a utility under this section must be applied against the utility's state tax liability in the order set forth in section 14(b) of this chapter.

(b) Notwithstanding section 16 of this chapter, any part of a taxpayer's credit under section 15 of this chapter that is assigned by the taxpayer under this section must be taken in twenty (20) annual installments, beginning with the year in which the taxpayer places into service an integrated coal gasification powerplant or a fluidized bed combustion technology.

(c) The part of a taxpayer's credit under section 15 of this chapter that may be assigned by the taxpayer with respect to any one (1) taxable year is subject to the following:

(1) The total amount of the taxpayer's credit under section 15 of this chapter that may be assigned by the taxpayer with respect to the taxable year may not exceed the product of:

(A) the total credit amount to which the taxpayer is entitled under section 15 of this chapter, divided by twenty (20); multiplied by

(B) the percentage of Indiana coal used in the taxpayer's integrated coal gasification powerplant or fluidized bed combustion technology in the taxable year for which the annual installment of the credit is allowed.

(2) The part of the amount determined under subdivision (1) that may be assigned to any one (1) utility with respect to the taxable year may not exceed the greater of:

(A) the utility's total state tax liability for the taxable year, multiplied by twenty-five percent (25%); or

(B) the utility's total utility receipts tax liability for the taxable year.

(d) Any part of the taxpayer's credit under section 15 of this chapter that is assigned to one (1) or more utilities by a taxpayer under this section with respect to a taxable year may not be claimed by the taxpayer or the taxpayer's shareholders, partners, or members. However, any part of the credit to which the taxpayer is entitled under section 15 of this chapter and that is not assigned by the taxpayer with respect to the taxable year may be taken and applied by the taxpayer, or the taxpayer's shareholders, partners, or members, in accordance with sections 16 and 20 of this chapter.

As added by P.L.175-2007, SEC.7.

IC 6-3.1-29-20.7Findings; election to receive refundable credit Sec. 20.7. (a) The findings in IC 4-4-11.6-12 (before its repeal) are incorporated by reference into this section. The general assembly further finds that the refundable credit provided by this section is also necessary to achieve the purposes set forth in IC 4-4-11.6-12 (before its repeal).

(b) This section applies to a taxpayer that:

(1) makes a qualified investment in an integrated coal gasification powerplant; and

(2) entered into a contract to sell substitute natural gas (as defined in IC 4-4-11.6-11) (before its repeal) to the Indiana finance authority under IC 4-4-11.6 (before its repeal).

(c) Notwithstanding anything in this chapter to the contrary, a taxpayer may elect in the manner prescribed by the department to take and receive all credits to which the taxpayer is entitled under section 15 of this chapter (without regard to section 16 of this chapter) as a refundable credit against the taxpayer's state tax liability, if any, over a period of twenty (20) taxable years, beginning not later than the taxable year in which the taxpayer places into service its integrated coal gasification powerplant. If, in a taxable year, a taxpayer that makes an election under this subsection has no state tax liability, the department shall pay to the taxpayer the full amount of the refundable credit for that taxable year.

(d) The amount of a credit to which a taxpayer that makes an election under subsection (c) is entitled for a particular taxable year equals the result determined under STEP FOUR:

STEP ONE: Determine the total credit amount to which the taxpayer is entitled under section 15 of this chapter (without regard to section 16 of this chapter).

STEP TWO: Divide the STEP ONE amount by twenty (20).

STEP THREE: Determine the ratio of Indiana coal to total coal used in the taxpayer's integrated coal gasification powerplant in the taxable year.

STEP FOUR: Multiply the STEP TWO and STEP THREE amounts.

(e) A taxpayer shall claim a refund under this section in the manner provided by the department. The department shall pay the refunded amount to the taxpayer not more than ninety (90) days after the date on which the refund is claimed.

(f) The shareholders, members, or partners of a pass through entity that makes an election under subsection (c) are not entitled to a credit allowed under section 20(b) of this chapter.

(g) A credit allowed under this section is not assignable under section 20.5 of this chapter.

As added by P.L.182-2009(ss), SEC.204. Amended by P.L.189-2018, SEC.59.

IC 6-3.1-29-21Claiming tax credit Sec. 21. To receive the credit awarded by this chapter, 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 a copy of the commission's determination required under section 19 of this chapter, a copy of the taxpayer's certificate of compliance issued under section 19 of this chapter, and all information that the department determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.191-2005, SEC.15.

IC 6-3.1-30Chapter 30. Headquarters Relocation Tax Credit

6-3.1-30-1"Corporate headquarters" 6-3.1-30-1.5"Corporation" 6-3.1-30-2"Eligible business" 6-3.1-30-3"Pass through entity" 6-3.1-30-4"Qualifying project" 6-3.1-30-5"Relocation costs" 6-3.1-30-6"State tax liability" 6-3.1-30-7"Taxpayer" 6-3.1-30-7.1"Venture capital" 6-3.1-30-7.5Duties of the corporation 6-3.1-30-8Tax credit 6-3.1-30-9Determination of tax credit amount 6-3.1-30-10Pass through entity; shareholder, partner, or member 6-3.1-30-11Carryover; unused tax credit; refundable at the discretion of the corporation 6-3.1-30-12Claiming tax credit; returns; information required by department of state revenue 6-3.1-30-13Determination of expenses resulting from relocation 6-3.1-30-14Application; requirement to enter into an agreement with the corporation 6-3.1-30-15Provisions required in an agreement 6-3.1-30-16Noncompliance with agreement; assessments 6-3.1-30-17Credit subject to annual aggregate credit limit

IC 6-3.1-30-1"Corporate headquarters" Sec. 1. As used in this chapter, "corporate headquarters" means the building or buildings where one (1) or more of the following are located:

(1) The principal offices of the principal executive officers of an eligible business.

(2) The principal offices of a division or similar subdivision of an eligible business.

(3) A research and development center of an eligible business.

As added by P.L.193-2005, SEC.21. Amended by P.L.288-2013, SEC.60.

IC 6-3.1-30-1.5"Corporation" Sec. 1.5. As used in this chapter, "corporation" refers to the Indiana economic development corporation created under IC 5-28-3 unless the context clearly denotes otherwise.

As added by P.L.288-2013, SEC.61.

IC 6-3.1-30-2"Eligible business" Sec. 2. As used in this chapter, "eligible business" means either of the following:

(1) A business that:

(A) is engaged in either interstate or intrastate commerce;

(B) maintains a corporate headquarters at a location outside Indiana;

(C) has not previously maintained a corporate headquarters at a location in Indiana;

(D) had annual worldwide revenues of at least fifty million dollars ($50,000,000) for the taxable year immediately preceding the business's application for a tax credit under section 12 of this chapter; and

(E) commits contractually to relocating its corporate headquarters to Indiana.

(2) A business that:

(A) is engaged in either interstate or intrastate commerce;

(B) maintains a corporate headquarters at a location outside Indiana;

(C) has not previously maintained a corporate headquarters at a location in Indiana;

(D) either:

(i) received at least four million dollars ($4,000,000) in venture capital in the six (6) months immediately preceding the business's application for a tax credit under section 12 of this chapter; or

(ii) closes on at least four million dollars ($4,000,000) in venture capital not later than six (6) months after submitting the business's application for a tax credit under section 12 of this chapter; and

(E) commits contractually to relocating:

(i) its corporate headquarters to Indiana; or

(ii) the number of jobs that equals eighty percent (80%) of the business's total payroll during the immediately preceding quarter to a location in Indiana.

As added by P.L.193-2005, SEC.21. Amended by P.L.137-2006, SEC.8; P.L.288-2013, SEC.62; P.L.158-2019, SEC.20.

IC 6-3.1-30-3"Pass through entity" Sec. 3. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-4"Qualifying project" Sec. 4. As used in this chapter, "qualifying project" means the relocation of the corporate headquarters of an eligible business from a location outside Indiana to a location in Indiana.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-5"Relocation costs" Sec. 5. As used in this chapter, "relocation costs" means the reasonable and necessary expenses incurred by an eligible business for a qualifying project. The term includes:

(1) moving costs and related expenses;

(2) the purchase of new or replacement equipment;

(3) capital investment costs; and

(4) property assembly and development costs, including:

(A) the purchase, lease, or construction of buildings and land;

(B) infrastructure improvements; and

(C) site development costs.

The term does not include any costs that do not directly result from the relocation of the business to a location in Indiana.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-6"State tax liability" Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax); and

(3) IC 27-1-18-2 (the insurance premiums 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 chapter.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-7"Taxpayer" Sec. 7. As used in this chapter, "taxpayer" means an individual or entity:

(1) that has any state tax liability; or

(2) in the case of an eligible business under section 2(2) of this chapter, that has any state tax liability or that submits incremental income tax withholdings under IC 6-3-4-8.

As added by P.L.193-2005, SEC.21. Amended by P.L.158-2019, SEC.21.

IC 6-3.1-30-7.1"Venture capital" Sec. 7.1. As used in this chapter, "venture capital" means financing provided by investors that may include equity, convertible debt, or other forms of equity-like investment instruments.

As added by P.L.158-2019, SEC.22.

IC 6-3.1-30-7.5Duties of the corporation Sec. 7.5. The corporation shall do the following:

(1) Evaluate a taxpayer's relocation project for the taxpayer's eligibility for a tax credit under this chapter.

(2) Certify the eligibility of taxpayers that meet the requirements for a tax credit under this chapter.

(3) Determine the percentage used to calculate the amount of a tax credit under section 9 of this chapter.

(4) Certify the information required under section 12 of this chapter.

As added by P.L.288-2013, SEC.63.

IC 6-3.1-30-8Tax credit Sec. 8. Subject to entering into an agreement with the corporation under sections 14 and 15 of this chapter if the corporation certifies that a taxpayer:

(1) is an eligible business;

(2) completes a qualifying project; and

(3) incurs relocation costs;

the taxpayer is entitled to a credit against the taxpayer's state tax liability for the taxable year in which the relocation costs are incurred. Subject to IC 5-28-6-9, the credit allowed under this section is equal to the amount determined under section 9 of this chapter.

As added by P.L.193-2005, SEC.21. Amended by P.L.137-2006, SEC.9; P.L.1-2007, SEC.58; P.L.288-2013, SEC.64; P.L.158-2019, SEC.23; P.L.135-2022, SEC.12; P.L.213-2025, SEC.80.

IC 6-3.1-30-9Determination of tax credit amount Sec. 9. (a) Subject to subsection (b), the amount of the credit to which a taxpayer is entitled under section 8 of this chapter equals the product of:

(1) a percentage determined by the corporation that may not exceed fifty percent (50%); multiplied by

(2) the amount of the taxpayer's relocation costs in the taxable year.

(b) The credit to which a taxpayer is entitled under section 8 of this chapter may not reduce the taxpayer's state tax liability below the amount of the taxpayer's state tax liability in the taxable year immediately preceding the taxable year in which the taxpayer first incurred relocation costs. However, this subsection does not apply to a taxpayer that qualifies as an eligible business under section 2(2) of this chapter.

As added by P.L.193-2005, SEC.21. Amended by P.L.288-2013, SEC.65; P.L.158-2019, SEC.24.

IC 6-3.1-30-10Pass through entity; shareholder, partner, or member Sec. 10. If a pass through entity is entitled to a credit under section 8 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-11Carryover; unused tax credit; refundable at the discretion of the corporation Sec. 11. (a) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time that the credit is carried forward to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for nine (9) taxable years following the unused credit year.

(b) A taxpayer that qualifies as an eligible business under section 2(1) of this chapter is not entitled to any carryback or refund of any unused credit.

(c) In the case of a taxpayer that qualifies as an eligible business under section 2(2) of this chapter, if the credit provided by this chapter exceeds the taxpayer's state tax liability, the excess may, at the discretion of the corporation, be refunded to the taxpayer. An eligible business under section 2(2) of this chapter is not entitled to carryback any unused credit.

As added by P.L.193-2005, SEC.21. Amended by P.L.158-2019, SEC.25.

IC 6-3.1-30-12Claiming tax credit; returns; information required by department of state revenue Sec. 12. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department the corporation's certification of the following information:

(1) Proof of the taxpayer's relocation costs.

(2) All other information that the department determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.193-2005, SEC.21. Amended by P.L.137-2006, SEC.10; P.L.288-2013, SEC.66; P.L.118-2024, SEC.12.

IC 6-3.1-30-13Determination of expenses resulting from relocation Sec. 13. In determining whether an expense of the eligible business directly resulted from the relocation of the business, the department shall consider whether the expense would likely have been incurred by the eligible business if the business had not relocated from its original location.

As added by P.L.193-2005, SEC.21.

IC 6-3.1-30-14Application; requirement to enter into an agreement with the corporation Sec. 14. (a) To be awarded a credit under this chapter, a taxpayer must submit an application to the corporation and enter into an agreement with the corporation.

(b) The corporation shall prescribe the form of the application.

(c) A taxpayer may claim a credit awarded after June 30, 2019, against the taxpayer's state tax liability for a taxable year only if the corporation awards a credit to the taxpayer and enters into an agreement with the taxpayer under section 15 of this chapter. The corporation may deny an application for a credit under this chapter in its sole discretion. A taxpayer may not seek judicial review of a decision by the corporation to deny a taxpayer's application for a credit.

As added by P.L.158-2019, SEC.26.

IC 6-3.1-30-15Provisions required in an agreement Sec. 15. (a) The corporation shall require the taxpayer to enter into an agreement with the corporation as a condition of receiving a credit under this chapter.

(b) The agreement with the corporation must:

(1) prescribe the method of certifying the taxpayer's qualified investment;

(2) include provisions that authorize the corporation to work with the department and the taxpayer, if the corporation determines that the taxpayer is noncompliant with the terms of the agreement or the provisions of this chapter, to bring the taxpayer into compliance or to protect the interests of the state; and

(3) require the taxpayer to:

(A) maintain its corporate headquarters at a location in Indiana if the business qualifies as an eligible business under section 2(1) of this chapter; or

(B) maintain either:

(i) its corporate headquarters at a location in Indiana if the business qualifies as an eligible business under section 2(2) of this chapter; or

(ii) the number of jobs that equals eighty percent (80%) of the business's total payroll at a location in Indiana if the business qualifies as an eligible business under section 2(2) of this chapter;

for not less than five (5) consecutively succeeding calendar years following the calendar year in which the taxpayer first incurs qualifying relocation expenses.

As added by P.L.158-2019, SEC.27.

IC 6-3.1-30-16Noncompliance with agreement; assessments Sec. 16. (a) If the corporation determines that a taxpayer who has claimed a credit under this chapter is not entitled to the credit because of the taxpayer's noncompliance with the requirements of the tax credit agreement or any of the provisions of this chapter, the corporation shall, after giving the taxpayer an opportunity to explain the noncompliance:

(1) notify the department of the noncompliance; and

(2) request the department to impose an assessment on the taxpayer in an amount that may not exceed the sum of any previously allowed credits under this chapter together with interest and penalties required or permitted by law.

(b) The department shall impose an assessment on a taxpayer if requested by the corporation under subsection (a), unless the assessment is unsupported by law.

(c) Notwithstanding the provisions of IC 6-8.1-5-2, an assessment is considered timely if the department issues a proposed assessment:

(1) not later than one hundred eighty (180) days from the date the department is notified of the noncompliance; or

(2) the date on which the proposed assessment could otherwise be issued in a timely manner under IC 6-8.1-5-2;

whichever is later.

As added by P.L.158-2019, SEC.28.

IC 6-3.1-30-17Credit subject to annual aggregate credit limit Sec. 17. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.213-2025, SEC.81.

IC 6-3.1-30.5Chapter 30.5. School Scholarship Tax Credit

6-3.1-30.5-0.5Severability 6-3.1-30.5-1"Credit" 6-3.1-30.5-2"Pass through entity" 6-3.1-30.5-3"Scholarship granting organization" 6-3.1-30.5-3"Scholarship granting organization" 6-3.1-30.5-4"School scholarship program" 6-3.1-30.5-5"State tax liability" 6-3.1-30.5-6"Taxpayer" 6-3.1-30.5-7Credit 6-3.1-30.5-8Amount of credit 6-3.1-30.5-9Expired 6-3.1-30.5-9.5Unused credit carried forward; taxable years beginning after December 31, 2012 6-3.1-30.5-10Pass through entities 6-3.1-30.5-11Claim of credit; submission of information 6-3.1-30.5-12Use of contribution 6-3.1-30.5-13Maximum amount of credit 6-3.1-30.5-14Information posted by the department 6-3.1-30.5-15Adoption of rules

IC 6-3.1-30.5-0.5Severability Sec. 0.5. Each provision of P.L.92-2011 is presumed to be and is severable from the remainder to the fullest extent and under IC 1-1-1-8. If any phrase, clause, sentence, or provision of IC 6-3.1-30.5 or IC 20-51, as added and amended, is held invalid for any reason, the invalidity does not affect the other provisions that are to be given effect without the invalid provision or application. The general assembly intends each provision to be passed into law individually and as a whole, without any provisions later found to be invalid or otherwise counter to constitutional or other legal requirements.

As added by P.L.63-2012, SEC.6.

IC 6-3.1-30.5-1"Credit" Sec. 1. As used in this chapter, "credit" refers to a credit granted under this chapter.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-2"Pass through entity" Sec. 2. As used in this chapter, "pass through entity" has the meaning set forth in IC 6-3-1-35.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-3"Scholarship granting organization" Note: This version of section effective until 1-1-2027. See also following version of this section, effective 1-1-2027.

Sec. 3. As used in this chapter, "scholarship granting organization" refers to an organization that:

(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and

(2) conducts a school scholarship program without limiting the availability of scholarships to students of only one (1) participating school (as defined in IC 20-51-1-6).

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.2.

IC 6-3.1-30.5-3"Scholarship granting organization" Note: This version of section effective 1-1-2027. See also preceding version of this section, effective until 1-1-2027.

Sec. 3. As used in this chapter, "scholarship granting organization" refers to:

(1) an organization that:

(A) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and

(B) conducts a school scholarship program without limiting the availability of scholarships to students of only one (1) participating school (as defined in IC 20-51-1-6); or

(2) an organization that:

(A) meets the requirements described in subdivision (1); and

(B) is included on the list submitted to the Secretary of the Treasury of the United States for the taxable year under IC 20-53-1.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.2; P.L.159-2026, SEC.1.

IC 6-3.1-30.5-4"School scholarship program" Sec. 4. As used in this chapter, "school scholarship program" refers to a scholarship program certified by the department of education under IC 20-51.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-5"State tax liability" Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax); and

(3) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the 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 chapter.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.154-2020, SEC.20.

IC 6-3.1-30.5-6"Taxpayer" Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-7Credit Sec. 7. (a) A taxpayer that makes a contribution to a scholarship granting organization for use by the scholarship granting organization in a school scholarship program is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer makes the contribution.

(b) A taxpayer is not entitled to a credit under this chapter for a contribution to a scholarship granting organization that is used to provide a scholarship or other assistance to a child participating in the early education grant pilot program under IC 12-17.2-7.2.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.202-2014, SEC.1.

IC 6-3.1-30.5-8Amount of credit Sec. 8. The amount of a taxpayer's credit is equal to fifty percent (50%) of the amount of the contribution made to the scholarship granting organization for a school scholarship program.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-9ExpiredAs added by P.L.182-2009(ss), SEC.205. Amended by P.L.211-2013, SEC.1. Expired 1-1-2017 by P.L.211-2013, SEC.1.

IC 6-3.1-30.5-9.5Unused credit carried forward; taxable years beginning after December 31, 2012 Sec. 9.5. (a) This section applies to a taxpayer that is entitled to a tax credit under this chapter for a taxable year beginning after December 31, 2012.

(b) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time the credit is carried forward to a succeeding taxable year, the credit is reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for nine (9) taxable years following the unused credit year.

(c) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.211-2013, SEC.2.

IC 6-3.1-30.5-10Pass through entities Sec. 10. If a pass through entity is entitled to a credit under section 7 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-11Claim of credit; submission of information Sec. 11. To apply a credit against the taxpayer's state tax liability, 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 the information that the department determines is necessary for the department to determine whether the taxpayer is eligible for the credit.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-30.5-12Use of contribution Sec. 12. A contribution to a scholarship granting organization shall be treated as having been made for use in a school scholarship program if:

(1) the contribution is made directly to a scholarship granting organization; and

(2) either:

(A) not later than the date of the contribution, the taxpayer designates in writing to the scholarship granting organization that the contribution is to be used only for a school scholarship program; or

(B) the scholarship granting organization provides the taxpayer with written confirmation that the contribution will be dedicated solely for use in a school scholarship program.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.3.

IC 6-3.1-30.5-13Maximum amount of credit Sec. 13. (a) The total amount of tax credits awarded under this chapter may not exceed nine million five hundred thousand dollars ($9,500,000) in the state fiscal year beginning July 1, 2016, and ending June 30, 2017.

(b) The total amount of tax credits awarded under this chapter in a state fiscal year may not exceed the following:

(1) Twelve million five hundred thousand dollars ($12,500,000) for the state fiscal year beginning July 1, 2017, and ending June 30, 2018.

(2) Fourteen million dollars ($14,000,000) for the state fiscal year beginning July 1, 2018, and ending June 30, 2019.

(3) Fifteen million dollars ($15,000,000) for the state fiscal year beginning July 1, 2019, and ending June 30, 2020.

(4) Sixteen million five hundred thousand dollars ($16,500,000) for the state fiscal year beginning July 1, 2020, and ending June 30, 2021.

(5) Seventeen million five hundred thousand dollars ($17,500,000) for the state fiscal year beginning July 1, 2021, and ending June 30, 2022.

(6) Eighteen million five hundred thousand dollars ($18,500,000) for the state fiscal year beginning July 1, 2022, and ending June 30, 2023, and for each state fiscal year thereafter.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.92-2011, SEC.4; P.L.205-2013, SEC.84; P.L.213-2015, SEC.86; P.L.217-2017, SEC.66; P.L.108-2019, SEC.123; P.L.165-2021, SEC.90; P.L.201-2023, SEC.101.

IC 6-3.1-30.5-14Information posted by the department Sec. 14. The department, on a website used by the department to provide information to the public, shall provide the following information:

(1) The application for the credit provided in this chapter.

(2) A timeline for receiving the credit provided in this chapter.

(3) The total amount of credits awarded under this chapter during the current state fiscal year.

As added by P.L.182-2009(ss), SEC.205. Amended by P.L.1-2025, SEC.98.

IC 6-3.1-30.5-15Adoption of rules Sec. 15. The department shall adopt rules under IC 4-22-2 to implement this chapter.

As added by P.L.182-2009(ss), SEC.205.

IC 6-3.1-31Chapter 31. ExpiredAs added by P.L.172-2011, SEC.70. Expired 1-1-2020 by P.L.172-2011, SEC.70.

IC 6-3.1-31.2Chapter 31.2. ExpiredAs added by P.L.172-2011, SEC.72. Expired 1-1-2020 by P.L.172-2011, SEC.72.

IC 6-3.1-31.5Chapter 31.5. RepealedRepealed by P.L.190-2014, SEC.21.

IC 6-3.1-31.9Chapter 31.9. RepealedRepealed by P.L.214-2019, SEC.25.

IC 6-3.1-32Chapter 32. ExpiredExpired 1-1-2012 by P.L.235-2007, SEC.2.

IC 6-3.1-33Chapter 33. RepealedRepealed by P.L.190-2014, SEC.22.

IC 6-3.1-34Chapter 34. Redevelopment Tax Credit

6-3.1-34-0.5Requirement to award of tax credits; development authority plan for qualified redevelopment site 6-3.1-34-1"Board" 6-3.1-34-2"Corporation" 6-3.1-34-2.1"Development authority" 6-3.1-34-2.2"Development plan" 6-3.1-34-3"Floor space" 6-3.1-34-3.5"Mine reclamation site" 6-3.1-34-4"Pass through entity" 6-3.1-34-5"Placed in service" 6-3.1-34-6"Qualified redevelopment site" 6-3.1-34-7"Qualified investment" 6-3.1-34-8"Rehabilitation" 6-3.1-34-9"State tax liability" 6-3.1-34-10"Taxpayer" 6-3.1-34-11Application; amount of credit; pass through entity 6-3.1-34-12Allocation of credit against taxes owed; order; computation 6-3.1-34-13Credit carryover 6-3.1-34-14Credit assignment 6-3.1-34-15Requirements to be awarded a credit 6-3.1-34-16Factors considered in determining whether to award a credit 6-3.1-34-17Requirement that taxpayer enter into agreement with the corporation; applicable credit percentage 6-3.1-34-18Repayment provisions 6-3.1-34-19Procedure to claim a credit 6-3.1-34-20Notice of noncompliance; assessment 6-3.1-34-21Evaluation of the performance of the tax credit program; report 6-3.1-34-22Repealed 6-3.1-34-23Credit subject to annual aggregate credit limit 6-3.1-34-24Small town opportunity initiative; qualified project; credit amount

IC 6-3.1-34-0.5Requirement to award of tax credits; development authority plan for qualified redevelopment site Sec. 0.5. (a) In order to facilitate the redevelopment and rehabilitation of property in Indiana that promotes regional collaboration and long term strategic planning, the corporation may commit a tax credit to a development authority pursuant to a development plan approved by the corporation, which may subsequently be awarded by the corporation at the request of a development authority to a taxpayer proposing a qualified investment in a qualified redevelopment site that is included in the development authority's development plan.

(b) The corporation shall award thirty-five million dollars ($35,000,000) to development authorities each fiscal year that may be granted to taxpayers proposing qualified investment in a qualified redevelopment site pursuant to a development plan approved by the corporation.

As added by P.L.162-2026, SEC.12.

IC 6-3.1-34-1"Board" Sec. 1. As used in this chapter, "board" means the board of the Indiana economic development corporation.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-2"Corporation" Sec. 2. As used in this chapter, "corporation" refers to the Indiana economic development corporation established under IC 5-28-3, unless the context clearly denotes otherwise.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-2.1"Development authority" Sec. 2.1. (a) As used in this chapter, "development authority" refers to a regional development authority established under IC 36-7.5-2-1, IC 36-7.6-2-3, or IC 36-7.7-3-1.

(b) For the period beginning July 1, 2026, and ending June 30, 2028, the term "development authority" includes a qualified nonprofit organization formed to support economic development across the region and which does not represent a single interest group or local unit or units within a single county. This subsection expires July 1, 2028.

As added by P.L.162-2026, SEC.13.

IC 6-3.1-34-2.2"Development plan" Sec. 2.2. (a) As used in this chapter, "development plan" refers to a comprehensive strategic development plan approved by the development authority for its jurisdiction and which outlines its economic development strategy, the anticipated local resource commitments, the proposed regionally significant projects, the return on investment analysis reflecting a positive state return for such projects, the requirement that an equal or greater level of local public financial participation in the aggregate across all projects, the requirement that projects are reasonably expected to spur a total investment across all projects that is four (4) times greater than the level of the state resources provided on a present value basis, and that each project supported would not occur but for the provision of the requested state resources.

(b) The development plan shall also include specific, measurable five (5) and ten (10) year objectives, and plans for achieving the objectives, for the region, including targets for:

(1) per capita income;

(2) population;

(3) employment; and

(4) credential attainment among residents;

in the region.

As added by P.L.162-2026, SEC.14.

IC 6-3.1-34-3"Floor space" Sec. 3. As used in this chapter, "floor space" means the usable interior floor space of a building.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-3.5"Mine reclamation site" Sec. 3.5. As used in this chapter, "mine reclamation site" means:

(1) land that has been mined using surface mining methods or underground mining methods, specifically and primarily for the removal of coal; and

(2) land that is contiguous to land described in subdivision (1).

As added by P.L.154-2020, SEC.21.

IC 6-3.1-34-4"Pass through entity" Sec. 4. As used in this chapter, "pass through entity" means a:

(1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);

(2) partnership;

(3) trust;

(4) limited liability company; or

(5) limited liability partnership.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-5"Placed in service" Sec. 5. As used in this chapter, "placed in service" means that property is placed in a condition or state of readiness and available to be occupied. In the case of a qualified redevelopment site comprised of a complex of buildings, the entire qualified redevelopment site shall be considered to have been placed in service on the date that a building was placed in service if the building has floor space that, when aggregated with the floor space of all buildings in the complex placed in service on earlier dates, exceeds fifty percent (50%) of the total floor space of all buildings in the complex.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-6"Qualified redevelopment site" Sec. 6. As used in this chapter, "qualified redevelopment site" means a vacant or underutilized property in Indiana as determined by the corporation.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.22; P.L.135-2022, SEC.13.

IC 6-3.1-34-7"Qualified investment" Sec. 7. As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures that are:

(1) for the redevelopment or rehabilitation of real property located within a qualified redevelopment site; and

(2) approved by the corporation before the expenditure is made.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-8"Rehabilitation" Sec. 8. As used in this chapter, "rehabilitation" means the betterment of real property in any way.

As added by P.L.158-2019, SEC.29. Amended by P.L.135-2022, SEC.14.

IC 6-3.1-34-9"State tax liability" Sec. 9. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax); and

(3) IC 6-5.5 (the financial institutions tax) or IC 6-8-15 (the 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 chapter.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.23.

IC 6-3.1-34-10"Taxpayer" Sec. 10. As used in this chapter, "taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability. The term includes the owner or the developer of the qualified development site property, a pass through entity, and an assignee that is assigned part or all of a credit under section 14 of this chapter.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.24.

IC 6-3.1-34-11Application; amount of credit; pass through entity Sec. 11. (a) Subject to IC 5-28-6-9, a taxpayer may claim a credit against the taxpayer's state tax liability for a taxable year only if the corporation awards a credit to the taxpayer and enters into an agreement with the taxpayer as set forth under this chapter. The corporation may establish an application period for applying for awards. If an application period is established, the corporation shall establish policies and procedures necessary to administer the application period. The corporation may deny an application for a credit under this chapter in its sole discretion. A taxpayer may not seek judicial review of a decision by the corporation to deny a taxpayer's application for a credit.

(b) The amount of the credit that a taxpayer may claim is equal to:

(1) the qualified investment made by the taxpayer and certified and approved by the corporation in accordance with an agreement entered into under section 17 of this chapter for a taxable year; multiplied by

(2) the applicable credit percentage determined by the corporation under section 17(b) and 17(c) of this chapter.

(c) If a pass through entity may claim a credit under this section but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, beneficiary, or member of the pass through entity may claim a credit equal to:

(1) the credit determined for the pass through entity for the taxable year; multiplied by

(2) the percentage of the pass through entity's distributive income that the shareholder, partner, beneficiary, or member may claim.

The credit provided under this subsection is in addition to a credit that a shareholder, partner, beneficiary, or member of a pass through entity may claim. However, a pass through entity and a shareholder, partner, beneficiary, or member of a pass through entity may not claim more than one (1) credit for the qualified investment.

(d) Notwithstanding subsections (a), (b), and (c), a pass through entity (other than an entity described in IC 6-3-1-35(1)) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. Such agreements shall be filed with the corporation not later than fifteen (15) days after execution. The pass through entity shall also provide a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department of state revenue.

As added by P.L.158-2019, SEC.29. Amended by P.L.159-2021, SEC.19; P.L.213-2025, SEC.82.

IC 6-3.1-34-12Allocation of credit against taxes owed; order; computation Sec. 12. (a) A tax credit that a taxpayer may claim under this chapter shall be applied against taxes owed by the taxpayer in the following order:

(1) First, against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.

(2) Second, against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) or nonprofit agricultural organization health coverage tax liability (IC 6-8-15) for the taxable year.

(3) Third, against the taxpayer's financial institutions tax liability (IC 6-5.5) for the taxable year.

(b) If the tax paid by the taxpayer under a tax provision listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer may claim under this chapter.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.25.

IC 6-3.1-34-13Credit carryover Sec. 13. (a) If the amount of the credit determined under section 11 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following nine (9) taxable years, beginning with the taxable year after the year in which the corporation certifies the taxpayer's expenditures as a qualified investment. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(b) A taxpayer is not entitled to a carryback or a refund of any unused credit amount.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-14Credit assignment Sec. 14.(a) If a taxpayer is awarded a credit under this chapter before July 1, 2029, the taxpayer may assign any part of the credit that the taxpayer may claim under this chapter. A credit that is assigned under this subsection remains subject to this chapter.

(b) If a taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another taxpayer. A taxpayer may make only one (1) assignment of a credit. Before a credit may be assigned, the taxpayer must notify the corporation of the assignment of the credit in the manner prescribed by the corporation. An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of that part of the credit assigned.

(c) The corporation shall collect and compile data on the assignments of tax credits under this chapter and determine the effectiveness of each assignment in getting projects completed. The corporation shall report its findings under this subsection to the legislative council in an electronic format under IC 5-14-6 before November 1, 2022.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.26.

IC 6-3.1-34-15Requirements to be awarded a credit Sec. 15. To be awarded a credit under this chapter, a taxpayer must file an application with the corporation and enter into an agreement with the corporation as set forth under this chapter.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-16Factors considered in determining whether to award a credit Sec. 16. The corporation shall consider the following factors in deciding whether to award a credit under this chapter for a proposed qualified investment:

(1) Evidence that the project aligns with the community's development plans.

(2) The economic development potential for the project for which the taxpayer proposes to make the qualified investment.

(3) Evidence of barriers preventing the development or redevelopment of the qualified redevelopment site in which the qualified investment is made, such as significant environmental contamination requiring remediation.

(4) The level of commitment by the public sector and local government to assist in the financing of improvements or redevelopment activities benefiting the qualified redevelopment site in which the qualified investment is made.

(5) Evidence of support by residents, businesses, and private organizations in the surrounding community for the project for which the taxpayer proposes to make the qualified investment.

(6) The level of economic distress in the surrounding community and the extent to which the project for which the taxpayer proposes to make the qualified investment mitigates the economic distress.

(7) The extent to which the project is estimated to enhance the economic opportunity, health, safety, aesthetics, or amenities of the community in a manner that:

(A) improves quality of life factors for residents of the region; and

(B) increases the ability of the region to attract and retain a talented workforce.

(8) Any other factors as determined by the corporation.

As added by P.L.158-2019, SEC.29. Amended by P.L.135-2022, SEC.15.

IC 6-3.1-34-17Requirement that taxpayer enter into agreement with the corporation; applicable credit percentage Sec. 17. (a) The following apply if the corporation determines that a credit should be awarded under this chapter:

(1) The corporation shall require the taxpayer to enter into an agreement with the corporation as a condition of receiving a credit under this chapter.

(2) The agreement with the corporation must:

(A) prescribe the method of certifying the taxpayer's qualified investment; and

(B) include provisions that authorize the corporation to work with the department and the taxpayer, if the corporation determines that the taxpayer is noncompliant with the terms of the agreement or the provisions of this chapter, to bring the taxpayer into compliance or to protect the interests of the state.

(3) The corporation shall specify the taxpayer's expenditures that will be considered a qualified investment.

(4) The corporation shall determine the applicable credit percentage under subsections (b) and (c).

(b) If the corporation determines that a credit should be awarded under this chapter, the corporation shall determine the applicable credit percentage for a qualified investment certified by the corporation. However, and except as provided in subsection (c), the applicable credit percentage may not exceed thirty percent (30%).

(c) The corporation may increase the credit amount by not more than an additional five percent (5%) if:

(1) the qualified redevelopment site is located in a federally designated qualified opportunity zone (Section 1400Z-1 and 1400Z-2 of the Internal Revenue Code); or

(2) the project qualifies for federal new markets tax credits under Section 45D of the Internal Revenue Code.

(d) To be eligible for the credit for a qualified investment, a taxpayer's expenditures that are considered a qualified investment must be certified by the corporation not later than two (2) taxable years after the end of the calendar year in which the taxpayer's expenditures are made.

As added by P.L.158-2019, SEC.29. Amended by P.L.154-2020, SEC.27; P.L.135-2022, SEC.16.

IC 6-3.1-34-18Repayment provisions Sec. 18. (a) Except as provided in subsection (b), if the corporation awards a tax credit to a taxpayer under this chapter that exceeds twenty million dollars ($20,000,000), the corporation shall include in an agreement entered into under section 17 of this chapter a provision that requires the taxpayer to repay to the corporation the portion of the credit that exceeds twenty million dollars ($20,000,000) with interest. Notwithstanding the date on which a tax credit is awarded under this chapter, any repayment of any part of a credit awarded under this chapter shall be deposited in the state general fund.

(b) Notwithstanding subsection (a), the corporation may exclude from its agreement entered into under section 17 of this chapter a repayment provision for any portion of the credit if the award is for a qualified redevelopment site subject to a proposal that will result in a qualified investment of at least one hundred million dollars ($100,000,000).

(c) If the corporation enters into an agreement with a taxpayer under section 17 of this chapter that includes a repayment provision under subsection (a), the corporation shall include in the repayment provision a provision establishing the interest rate that will be applied. The interest rate shall be determined by the board and approved by the budget agency.

(d) This subsection applies to an active multi-phased project occurring on a defined footprint for which the taxpayer has received approval for at least the first phase of the active multi-phased project from the corporation's board before July 1, 2018, for a tax credit under IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The following apply to a project described in this subsection:

(1) Only qualified investments that are made after June 30, 2021, are eligible for a credit award under this chapter.

(2) The annual amount of credits awarded under this chapter for the project may not exceed five million dollars ($5,000,000).

(3) The corporation may not include a repayment provision as part of an agreement entered into under section 17 of this chapter for the credits awarded for the project.

(e) The part of any credit that is subject to a repayment provision under this section must be included in the calculation of the aggregate amount of applicable tax credits that the corporation may certify for a state fiscal year under IC 5-28-6-9.

(f) This subsection applies retroactively and only to an agreement entered into under section 17 of this chapter that was executed on or before December 31, 2020, and that:

(1) awards a credit under this chapter and an industrial recovery tax credit under IC 6-3.1-11 under the same agreement;

(2) awards a credit under this chapter with a maximum amount of ten million dollars ($10,000,000);

(3) states an estimated capital investment of at least two hundred fifty millions dollars ($250,000,000); and

(4) is for a project in a county having a population of more than three hundred fifty thousand (350,000) and less than four hundred thousand (400,000).

Notwithstanding subsection (a), for an agreement to which this subsection applies, the corporation shall not enforce any repayment provision relating to the credit awarded under this chapter and shall amend the agreement to remove the repayment provision not later than June 30, 2026.

As added by P.L.158-2019, SEC.29. Amended by P.L.135-2022, SEC.17; P.L.201-2023, SEC.102; P.L.157-2026, SEC.101.

IC 6-3.1-34-19Procedure to claim a credit Sec. 19. To receive a credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit the following to the department:

(1) The certification of the corporation stating the applicable credit percentage approved by the corporation under section 17(b) of this chapter.

(2) All other information that the department determines is necessary for:

(A) the calculation for the credit provided by this chapter; and

(B) the determination of whether an expenditure was a qualified investment.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-20Notice of noncompliance; assessment Sec. 20. (a) If the corporation determines that a taxpayer that has claimed a credit under this chapter is not entitled to the credit because of the taxpayer's noncompliance with the requirements of the tax credit agreement or any of the provisions of this chapter, the corporation shall, after giving the taxpayer an opportunity to explain the noncompliance:

(1) notify the department of the noncompliance; and

(2) request the department to impose an assessment on the taxpayer in an amount that may not exceed the sum of any previously allowed credits under this chapter together with interest and penalties required or permitted by law.

(b) If a credit was assigned under section 14 of this chapter, the assessment under this section shall be issued against the taxpayer that could have claimed the credit had no assignment occurred. If an assessment is issued to a taxpayer, other than an assignee of a credit that was assigned, the assessment shall not be offset by any nonrefundable credit. An assessment may not be made against an assignee of a credit except in the case of fraud by the assignee in the assignment of the credit. Notwithstanding the provisions of IC 6-8.1-5-2, an assessment is considered timely if the department issues a proposed assessment:

(1) not later than one hundred eighty (180) days from the date the department is notified of the noncompliance; or

(2) the date on which the proposed assessment could otherwise be issued in a timely manner under IC 6-8.1-5-2;

whichever is later.

As added by P.L.158-2019, SEC.29. Amended by P.L.156-2020, SEC.25.

IC 6-3.1-34-21Evaluation of the performance of the tax credit program; report Sec. 21. (a) The board shall establish measurements for evaluating the performance of the tax credit program under this chapter.

(b) Beginning in 2023, and each odd-numbered year thereafter, the corporation shall provide for an evaluation of the tax credit program. The evaluation shall include an assessment of the effectiveness of the program, and the evaluation shall specifically report on the extent to which the tax credit program met the measurements established by the board under subsection (a). The corporation shall include information received or compiled under this section in the economic incentives and compliance report submitted under IC 5-28-28 for the calendar year in which the evaluation is completed.

As added by P.L.158-2019, SEC.29.

IC 6-3.1-34-22RepealedAs added by P.L.158-2019, SEC.29. Repealed by P.L.135-2022, SEC.18.

IC 6-3.1-34-23Credit subject to annual aggregate credit limit Sec. 23. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.213-2025, SEC.83.

IC 6-3.1-34-24Small town opportunity initiative; qualified project; credit amount Sec. 24. (a) As used in this section, "downtown area" means:

(1) the central business district of a city or town; or

(2) any commercial or mixed use area within a neighborhood of a city or town that has traditionally served, since the founding of the community, as the retail service and communal focal point within the community.

(b) As used in this section, "initiative" means the small town opportunity initiative established by subsection (f).

(c) As used in this section, "nonprofit taxpayer" means a taxpayer:

(1) that is tax exempt under Section 501 of the Internal Revenue Code;

(2) for which some or all of its mission is to revitalize the community it serves; and

(3) whose leadership includes primarily members of the community it serves.

(d) As used in this section, "qualified community project" means a project that:

(1) is located in the:

(A) downtown area of a city or a town with a population of less than thirty thousand (30,000);

(B) downtown area of a city or a town that is located in a county with a population of less than seventy-five thousand (75,000); or

(C) unincorporated territory of a county with a population of less than seventy-five thousand (75,000) if the site of the project is an area of the unincorporated territory that serves as the retail service and communal focal point within the unincorporated territory;

(2) involves the:

(A) historic preservation;

(B) redevelopment; or

(C) rehabilitation;

of real property; and

(3) has a total project budget of at least fifteen million dollars ($15,000,000).

(e) As used in this section, "qualified investment" means the amount of the taxpayer's expenditures that are:

(1) for the redevelopment or rehabilitation of real property as part of a qualified community project; and

(2) approved by the corporation before the expenditure is made.

(f) The small town opportunity initiative is established.

(g) The corporation shall administer the initiative.

(h) The purpose of the initiative is to undertake qualified community projects within local government units to do the following:

(1) Advance historic preservation.

(2) Redevelop or rehabilitate distressed buildings or underutilized property.

(3) Redevelop or rehabilitate sites where distressed buildings once stood.

(i) A for-profit taxpayer undertaking a qualified community project under the initiative is entitled to a redevelopment tax credit under this chapter equal to twenty percent (20%) of the taxpayer's cost of the project.

(j) A nonprofit taxpayer undertaking a qualified community project under the initiative is entitled to a redevelopment tax credit under this chapter equal to thirty percent (30%) of the taxpayer's cost of the project.

(k) Qualified community projects undertaken under this section are not subject to any statutory or administrative repayment obligation.

(l) Notwithstanding any other provision of this section, for a nonprofit taxpayer undertaking a qualified community project under this section, expenditures incurred to acquire, hold, or prepare real property for redevelopment or rehabilitation before the date the taxpayer's initial application or application for certification is approved by the corporation shall be included in the taxpayer's qualified investment if:

(1) the expenditures were incurred for the primary purpose of future redevelopment consistent with subsection (h);

(2) the nonprofit taxpayer obtained site control in furtherance of a locally supported redevelopment effort; and

(3) the corporation determines, as part of the application or certification process, that inclusion of such expenditures is in the public interest and supportive of early stage community redevelopment efforts.

(m) For purposes of determining whether an expenditure is included as part of a qualified investment under subsection (l), an expenditure shall be treated as if it were approved by the corporation as of the date the expenditure was originally incurred.

As added by P.L.162-2026, SEC.15.

IC 6-3.1-34.6Chapter 34.6. Tax Credit for Natural Gas Powered Vehicles

6-3.1-34.6-1Applicability 6-3.1-34.6-2"Department" 6-3.1-34.6-3"Natural gas" 6-3.1-34.6-4"Pass through entity" 6-3.1-34.6-5"Person" 6-3.1-34.6-6"Qualified vehicle" 6-3.1-34.6-7"State tax liability" 6-3.1-34.6-8Credit claims; credit amounts; claims for vehicles placed into service in 2013 6-3.1-34.6-9Maximum credit amount for vehicles placed into service in taxable years beginning after December 31, 2013 6-3.1-34.6-10Maximum annual credit; maximum overall credit 6-3.1-34.6-11Claiming credit; pass through entity 6-3.1-34.6-12Procedure to claim credit 6-3.1-34.6-13Credit carryover; no carryback or refund 6-3.1-34.6-14Credit sale, assignment, or transfer prohibited

IC 6-3.1-34.6-1Applicability Sec. 1. (a) Subject to subsection (b), this chapter applies to taxable years beginning after December 31, 2012.

(b) A person is not entitled to a tax credit for placing a qualified vehicle into service after December 31, 2016. However, this subsection may not be construed to prevent a person from carrying an unused tax credit attributable to a qualified vehicle placed into service before January 1, 2017, forward to a taxable year beginning after December 31, 2016, in the manner provided by section 13 of this chapter.

As added by P.L.277-2013, SEC.6. Amended by P.L.213-2015, SEC.87.

IC 6-3.1-34.6-2"Department" Sec. 2. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-3"Natural gas" Sec. 3. As used in this chapter, "natural gas" means compressed or liquid natural gas.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-4"Pass through entity" Sec. 4. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-5"Person" Sec. 5. As used in this chapter, "person" means an individual, a corporation, a limited liability company, a partnership, or another legal entity.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-6"Qualified vehicle" Sec. 6. As used in this chapter, "qualified vehicle" means a natural gas powered vehicle that:

(1) has a gross vehicle weight rating of more than thirty-three thousand (33,000) pounds; and

(2) is purchased or leased from a dealer located in Indiana.

As added by P.L.277-2013, SEC.6. Amended by P.L.212-2014, SEC.1.

IC 6-3.1-34.6-7"State tax liability" Sec. 7. As used in this chapter, "state tax liability" means a person's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax); and

(3) IC 27-1-18-2 (the insurance premiums 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 chapter.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-8Credit claims; credit amounts; claims for vehicles placed into service in 2013 Sec. 8. (a) Subject to subsection (c), a person that places a qualified vehicle into service in a particular taxable year may claim a credit against the person's state tax liability for that taxable year.

(b) Subject to sections 9 and 10 of this chapter, the amount of the credit that may be claimed for placing a qualified vehicle into service is the amount determined in STEP THREE of the following formula:

STEP ONE: Determine the difference between:

(A) the price of the qualified vehicle; and

(B) the price of a similarly equipped vehicle of the same make and model that is powered by a gasoline or diesel engine.

STEP TWO: Multiply the STEP ONE result by fifty percent (50%).

STEP THREE: Determine the lesser of:

(A) the STEP TWO result; or

(B) fifteen thousand dollars ($15,000).

(c) To the extent that a person claims a credit under this chapter for placing a qualified vehicle into service in 2013, the person may claim such a credit only against any state gross retail tax and use tax liability incurred by the person on transactions occurring after June 30, 2015, that involve a natural gas product (as defined by IC 6-6-2.5-16.5) and that are subject to taxation under IC 6-2.5 because the provisions of IC 6-2.5-5-27(b) exclude those transactions involving a natural gas product from the exemption provided in IC 6-2.5-5-27.

As added by P.L.277-2013, SEC.6. Amended by P.L.213-2015, SEC.88.

IC 6-3.1-34.6-9Maximum credit amount for vehicles placed into service in taxable years beginning after December 31, 2013 Sec. 9. This section does not apply to a taxable year beginning after December 31, 2012, and before January 1, 2014. The total amount of the tax credits granted to a person under this chapter for a particular taxable year may not exceed one hundred fifty thousand dollars ($150,000).

As added by P.L.277-2013, SEC.6. Amended by P.L.213-2015, SEC.89.

IC 6-3.1-34.6-10Maximum annual credit; maximum overall credit Sec. 10. The total amount of the tax credits granted in a particular year to all persons under this chapter may not exceed the lesser of:

(1) three million dollars ($3,000,000) per year; or

(2) the revenue, as estimated by the budget agency, that is attributable to the imposition of the gross retail and use tax on transactions involving the purchase of a natural gas product (as defined by IC 6-6-2.5-16.5) to fuel a motor vehicle for the year the credit is claimed.

In addition, the tax credits granted for all years to all persons under this chapter may not exceed three (3) times the per year amount under subdivision (1) or (2), whichever applies for a particular year.

As added by P.L.277-2013, SEC.6. Amended by P.L.212-2014, SEC.2.

IC 6-3.1-34.6-11Claiming credit; pass through entity Sec. 11. (a) If a pass through entity places a qualified vehicle into service but does not have state tax liability against which a tax credit may be applied, a shareholder, partner, or member of the pass through entity may claim a tax credit under this chapter equal to:

(1) the tax credit determined for the pass through entity under this chapter for the taxable year; multiplied by

(2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified vehicle placed into service.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-12Procedure to claim credit Sec. 12. (a) To receive a credit under this chapter, a person placing a qualified vehicle into service must:

(1) apply for the department's approval of the tax credit and notify the department of the person's purchase or lease of a qualified vehicle in the manner prescribed by the department;

(2) submit proof of the purchase or lease to the department and file with the department information that the department determines is necessary for the calculation of the credit under this chapter;

(3) attach proof of the department's approval of the tax credit to the person's state tax return or returns; and

(4) claim the approved tax credit on the person's state tax return or returns in the manner prescribed by the department.

(b) The department shall record the time of filing of each application for the department's approval of a tax credit and shall, except as provided in subsection (c), approve granting the credit to the person, if the person otherwise qualifies for a credit under this chapter, in the chronological order in which the application for the department's approval is filed in the year.

(c) If the total credits approved under this section equal the maximum amount allowable in the year, the department may not approve an application for the credit filed later in that year.

As added by P.L.277-2013, SEC.6. Amended by P.L.212-2014, SEC.3.

IC 6-3.1-34.6-13Credit carryover; no carryback or refund Sec. 13. (a) If the amount of the credit determined under this chapter for a person in a taxable year exceeds the person's state tax liability for that taxable year, the person may carry over the excess to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the person to obtain a credit under this chapter for any subsequent taxable year. A credit may not be carried forward for more than six (6) taxable years following the taxable year in which the person is first entitled to claim the credit.

(b) A person is not entitled to a carryback or refund of any unused credit.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-34.6-14Credit sale, assignment, or transfer prohibited Sec. 14. A person may not sell, assign, convey, or otherwise transfer the tax credit provided by this chapter.

As added by P.L.277-2013, SEC.6.

IC 6-3.1-35Chapter 35. Affordable and Workforce Housing Tax Credit

6-3.1-35-1Applicability; applications 6-3.1-35-2Definitions 6-3.1-35-3Amount of credit; computation 6-3.1-35-4Credit carryover 6-3.1-35-5Allocation of the credit by pass through entities that do not have state tax liability 6-3.1-35-6Credit assignment 6-3.1-35-7Requirements to be awarded a credit; maximum amount of credits 6-3.1-35-8Annual aggregate credit limit 6-3.1-35-9Procedures to claim a credit 6-3.1-35-10Rules 6-3.1-35-11Evaluation of the effectiveness of the credit 6-3.1-35-12Expiration of chapter

IC 6-3.1-35-1Applicability; applications Sec. 1. The state tax credit provided by this chapter applies only to taxable years beginning on or after January 1, 2024. However, beginning July 1, 2023:

(1) eligible applicants may submit applications to the authority for state tax credits for qualified projects; and

(2) the authority may evaluate applications and issue eligibility statements;

under section 7 of this chapter.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-2Definitions Sec. 2. The following definitions apply throughout this chapter:

(1) "Authority" refers to the Indiana housing and community development authority created by IC 5-20-1-3.

(2) "Eligibility statement" refers to the statement issued by the authority to an eligible applicant under section 7 of this chapter.

(3) "Eligible applicant" means a taxpayer who is:

(A) an owner of a qualified project; or

(B) a shareholder, member, or partner of an owner of a qualified project that is designated by the owner in the manner prescribed by the authority.

(4) "Federal tax credit" means a federal low income housing credit under Section 42 of the Internal Revenue Code that is a thirty percent (30%) present value credit. The term does not include a seventy percent (70%) present value credit under Section 42 of the Internal Revenue Code for certain new buildings.

(5) "Holder of a state tax credit" for a taxable year in a qualified project's state tax credit period means:

(A) the eligible applicant for the qualified project;

(B) a shareholder, member, or partner of the owner of the qualified project; or

(C) a successor, assignee, or transferee of the eligible applicant under section 6 of this chapter;

that has a right to claim all or part of the tax credit for the taxable year.

(6) "Qualified basis" of a qualified project has the meaning set forth in Section 42 of the Internal Revenue Code.

(7) "Qualified project" means a qualified low income building (as defined in Section 42(c) of the Internal Revenue Code):

(A) that is located in Indiana;

(B) for which a federal affordable housing tax credit was awarded using a thirty percent (30%) present value of the qualified basis of the building; and

(C) that is financed by tax exempt bonds that are subject to the private activity bond volume cap (under Section 42(h)(4) of the Internal Revenue Code).

(8) "State tax credit" means the tax credit provided by this chapter.

(9) "State tax credit period" for a qualified project means the period of five (5) taxable years beginning with the taxable year a building in the project is placed into service.

(10) "State tax liability" means a taxpayer's total tax liability incurred under:

(A) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(B) IC 6-5.5 (the financial institutions tax);

(C) IC 27-1-18-2 (the insurance premiums tax); and

(D) IC 27-1-20-12 (the insurance premiums retaliatory 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 chapter.

(11) "Tax credit application" means an application submitted by an eligible applicant to the authority under section 7 of this chapter.

(12) "Taxpayer" means an individual, a corporation, an S corporation, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a joint venture.

As added by P.L.137-2022, SEC.52. Amended by P.L.194-2023, SEC.22.

IC 6-3.1-35-3Amount of credit; computation Sec. 3. (a) Except as otherwise provided in this chapter, for each taxable year in the state tax credit period of a qualified project, the holder of a state tax credit awarded under this chapter for the qualified project is entitled to a credit against the holder's state tax liability for the taxable year in an amount equal to:

(1) the percentage of the state tax credit for the taxable year that the holder retains at the end of the last day of the taxable year, as determined under subsection (c); multiplied by

(2) the amount of the state tax credit for the qualified project for the taxable year, as determined under subsections (d) and (e).

(b) At the time an eligibility statement is issued to an eligible applicant, the eligible applicant is considered to have acquired one hundred percent (100%) of the state tax credit for each taxable year in the state tax credit period of the qualified project.

(c) The percentage of a state tax credit for a taxable year that a holder retains at the end of the last day of a taxable year under subsection (a)(1) is equal to:

(1) the sum of the percentages of the state tax credit for the taxable year that the holder acquires before the end of the last day of the taxable year; minus

(2) the sum of the percentages of the state tax credit for the taxable year that the holder transfers before the end of the last day of the taxable year.

(d) The amount of a state tax credit for a taxable year in the state tax credit period of a qualified project under subsection (a)(2) is equal to:

(1) a factor equal to:

(A) one (1); divided by

(B) the number of taxable years in the state tax credit period for the qualified project; multiplied by

(2) the lesser of:

(A) the amount of the total federal credit allowed for the qualified project over the credit period as defined by Section 42(f) of the Internal Revenue Code (based on Internal Revenue Service Form 8609, Line 1(b) (annual amount multiplied by ten (10) years)), if available, for the qualified project; or

(B) the maximum aggregate amount of state tax credits awarded for the qualified project, as stated in the eligibility statement issued under section 7 of this chapter.

(e) The department shall determine the amounts of the state tax credits specified under subsection (d) for each taxable year in the state tax credit period of each qualified project as those amounts are able to be computed and promptly publish the amounts on the department's website to assist holders in claiming the state tax credit provided by this chapter.

As added by P.L.137-2022, SEC.52. Amended by P.L.194-2023, SEC.23.

IC 6-3.1-35-4Credit carryover Sec. 4. (a) If a holder's state tax credit exceeds the holder's state tax liability for the taxable year, the excess may be carried forward for up to nine (9) consecutive taxable years immediately following the first taxable year of the holder's state tax credit period and may be used to reduce the holder's state tax liability during those taxable years. Only the unused part of a state tax credit may be carried forward and used in a subsequent taxable year.

(b) The holder of a state tax credit is not entitled to a carryback or refund of any unused credit.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-5Allocation of the credit by pass through entities that do not have state tax liability Sec. 5. (a) If a pass through entity is entitled to a state tax credit but does not have state tax liability against which the state tax credit may be applied, the pass through entity may allocate or otherwise transfer the state tax credit among the shareholders, members, or partners of the pass through entity in any manner agreed to by the shareholders, members, or partners, regardless of how the federal tax credit for the qualified project is allocated or transferred or whether the allocation or transfer of the state tax credit under the agreement has substantial economic effect under Section 704(b) of the Internal Revenue Code. A pass through entity or its designee shall certify to the department the amount of the state tax credit that is allocated or transferred to each shareholder, member, or partner of the pass through entity for the taxable year, if any, in the manner prescribed by the department.

(b) The credit provided under subsection (a) is in addition to a state tax credit to which a shareholder, member, or partner of a pass through entity is otherwise entitled under this chapter.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-6Credit assignment Sec. 6. (a) A holder of a state tax credit may transfer, sell, or assign all or part of a state tax credit for a taxable year in the state tax credit period of the associated qualified project if the holder of the state tax credit complies with this section.

(b) A holder shall furnish the following to the transferee, purchaser, or assignee:

(1) A copy of the eligibility statement for the qualified project.

(2) A declaration, on a form prescribed by the department, that states:

(A) the percentage of the state tax credit for the taxable year that was held by the transferor before the transfer;

(B) the percentage of the state tax credit for the taxable year that will be held by the transferor after the transfer;

(C) the percentage of the state tax credit for the taxable year that will be held by the transferee after the transfer; and

(D) any other information required by the department.

The percentage specified in clause (A) must equal the sum of the percentages specified in clauses (B) and (C).

(3) Copies of other documents in the possession of the transferor that relate to the transferor's right to claim the state tax credit provided by this chapter, if any.

(c) A transferor of all or part of a state tax credit for a taxable year under this section shall report the transaction to the department in the manner prescribed by the department.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-7Requirements to be awarded a credit; maximum amount of credits Sec. 7. (a) An eligible applicant who wishes to obtain the state tax credit provided by this chapter for a qualified project must submit an application to the authority after June 30, 2023, and before January 1, 2033, in the manner prescribed by the authority.

(b) An application submitted under subsection (a) must include:

(1) the name and address of the qualified project;

(2) the name and address of the owner of the qualified project; and

(3) any other information required by the authority.

(c) Subject to section 8 of this chapter, the authority may approve a tax credit application if:

(1) the applicant is an eligible applicant;

(2) the project identified in the application is a qualified project; and

(3) the tax credit application meets any other requirements for receipt of state tax credits established by the authority.

(d) If the authority approves a tax credit application for a qualified project, for each taxable year in the tax credit period the authority may approve a maximum amount of state tax credits. The maximum aggregate amount of state tax credits awarded by the authority for the state tax credit period of a qualified project is an amount that is the product of:

(1) a percentage determined by the authority, which must be less than or equal to one hundred percent (100%); multiplied by

(2) the anticipated aggregate federal tax credits over the credit period as defined by Section 42(f) of the Internal Revenue Code and specified in a letter issued by the authority for the qualified project under Section 42(m) of the Internal Revenue Code (annual amount multiplied by ten (10) years).

(e) If the authority approves a tax credit application for a qualified project, the authority shall issue an eligibility statement to the eligible applicant. The eligibility statement must specify at least the following:

(1) A unique identification code for the eligibility statement, determined by the authority.

(2) The name of the qualified project.

(3) For each taxable year in the state tax credit period of the qualified project, the maximum amount of state tax credit that the authority is awarding to the eligible applicant for the qualified project.

(f) The authority shall transmit a copy of each eligibility statement issued under subsection (e) to the department.

As added by P.L.137-2022, SEC.52. Amended by P.L.194-2023, SEC.24; P.L.114-2026, SEC.5.

IC 6-3.1-35-8Annual aggregate credit limit Sec. 8. (a) For each state fiscal year beginning after June 30, 2023, and before July 1, 2033, the aggregate amount of state tax credits awarded by the authority under this chapter may not exceed thirty million dollars ($30,000,000). For purposes of calculating the aggregate state tax credit limit for a state fiscal year, the amounts awarded by the authority are considered to be awarded in the year the award is made to the state tax credit recipient by the authority, notwithstanding the fact that the awarded state tax credit is to be claimed over the state tax credit period.

(b) To the extent that the tax credit applications requesting state tax credits exceed the amount of available state tax credits in a year, or the authority reasonably anticipates that the requests will exceed the state fiscal year limitation established in subsection (a), the authority may allocate the state tax credits in a manner that furthers the mission and purpose of the authority and otherwise promotes the establishment of qualified projects.

As added by P.L.137-2022, SEC.52. Amended by P.L.114-2026, SEC.6.

IC 6-3.1-35-9Procedures to claim a credit Sec. 9. To receive the state tax credit provided by this chapter, a holder of a state tax credit must claim the credit on the holder's annual state tax return in the manner prescribed by the department. The holder of the state tax credit shall submit to the department all information that the department determines is necessary for the calculation of the state tax credit.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-10Rules Sec. 10. The department or the authority, or both, may adopt rules to implement this chapter.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-11Evaluation of the effectiveness of the credit Sec. 11. This chapter is subject to review under IC 2-5-3.2-1 to evaluate the effectiveness of the state tax credit one (1) year prior to its expiration under section 12 of this chapter.

As added by P.L.137-2022, SEC.52.

IC 6-3.1-35-12Expiration of chapter Sec. 12. This chapter expires July 1, 2033.

As added by P.L.137-2022, SEC.52. Amended by P.L.114-2026, SEC.7.

IC 6-3.1-35.8Chapter 35.8. Foster Care Support Tax Credit

6-3.1-35.8-1Definitions 6-3.1-35.8-2Eligible persons 6-3.1-35.8-3Amount of credit; pass through entities 6-3.1-35.8-4Application process; proof of payment; approval of a qualified foster care organization 6-3.1-35.8-5Annual aggregate credit limit 6-3.1-35.8-6Unused credits 6-3.1-35.8-6.1Information posted by the department 6-3.1-35.8-7Applicable tax years 6-3.1-35.8-8Expiration

IC 6-3.1-35.8-1Definitions Sec. 1. (a) As used in this chapter, "foster care" means living in a place licensed under IC 31-27.

(b) As used in this chapter, "person" means an individual, a corporation, a limited liability company, a partnership, or another legal entity.

(c) As used in this chapter, "qualifying contribution" means a monetary payment made by a person to the insuring foster youth trust fund established by IC 31-26-4.5-4.

(d) As used in this chapter, "qualifying foster care organization" means an organization that meets the following qualifications:

(1) The organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code.

(2) The organization provides:

(A) foster care prevention services and programs as required by 42 U.S.C. 671; or

(B) direct assistance to individuals in the foster care system.

(3) The organization spends at least fifty percent (50%) of its available revenue on qualified services to Indiana residents.

(4) The organization affirms that it will continue spending at least fifty percent (50%) of its available revenue on qualified services to Indiana residents.

(5) The organization provides ongoing qualified services to at least two hundred (200) Indiana residents.

(e) As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and

(2) IC 6-5.5 (the financial institutions 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 chapter.

(f) As used in this chapter, "tax credit" means a deduction from any tax otherwise due under IC 6-3 or IC 6-5.5.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.1.

IC 6-3.1-35.8-2Eligible persons Sec. 2. A person who makes a qualifying contribution or makes a monetary contribution to a qualifying foster care organization shall receive a tax credit as provided in section 3 of this chapter.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.2.

IC 6-3.1-35.8-3Amount of credit; pass through entities Sec. 3. (a) Subject to the limitations provided in subsection (b) and sections 5 and 6 of this chapter, the department shall grant a tax credit against any state tax liability due equal to fifty percent (50%) of a qualifying contribution or of the amount of the monetary contribution by a person to a qualifying foster care organization that is approved by the department of child services under section 4(c) of this chapter.

(b) The tax credit which a taxpayer receives under this chapter may not exceed ten thousand dollars ($10,000) for any taxable year of the taxpayer.

(c) If a person that is:

(1) exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or

(2) a partnership;

does not have any tax liability against which the credit provided by this section may be applied, a shareholder or a partner of the business firm is entitled to a credit against the shareholder's or partner's liability under the adjusted gross income tax.

(d) The amount of the tax credit provided by this section under subsection (c) is equal to:

(1) the tax credit determined for the business firm for the taxable year under subsection (a); multiplied by

(2) the percentage of the business firm's distributive income to which the shareholder or the partner is entitled.

The tax credit provided by this section is in addition to any credit to which a shareholder or partner is otherwise entitled under this chapter. However, a business firm and a shareholder or partner of that business firm may not claim a credit under this chapter for the same qualifying contribution or monetary contribution to a qualifying foster care organization.

(e) To apply a credit against the state tax liability of a business firm or person, the business firm or person must claim the credit on the annual state tax return of the business firm or person in the manner prescribed by the department.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.3.

IC 6-3.1-35.8-4Application process; proof of payment; approval of a qualified foster care organization Sec. 4. (a) Any business firm or person that desires to claim a tax credit as provided in this chapter shall file with the department, in the form that the department may prescribe, an application stating the amount of the contribution or investment that it made that would qualify for a tax credit, proof of payment of the contribution, the amount sought to be claimed as a credit, and any other information that the department determines is necessary to determine whether the business firm or person is eligible for the credit.

(b) The department shall notify the applicant not later than forty-five (45) days after the department receives an application for a tax credit under subsection (a) that the applicant has been:

(1) approved for the tax credit; or

(2) denied the tax credit.

(c) An organization must apply to the department of child services for approval as a qualifying foster care organization for purposes of this chapter. The department of child services shall approve each organization applicant that is a qualifying foster care organization as defined in section 1(d) of this chapter and provide a list of each approved organization annually to the department before January 1 of each year.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.4.

IC 6-3.1-35.8-5Annual aggregate credit limit Sec. 5. (a) The amount of tax credits allowed under this chapter may not exceed two million dollars ($2,000,000) for the period beginning July 1, 2021, through December 31, 2023.

(b) The amount of tax credits allowed under this chapter may not exceed two million dollars ($2,000,000) in each calendar year beginning after December 31, 2023, and ending before January 1, 2028.

(c) The department shall record the time of filing of each application for allowance of a tax credit required under section 4 of this chapter and shall approve the applications, if they otherwise qualify for a tax credit under this chapter, in the chronological order in which the applications are filed in the calendar year.

(d) When the total tax credits approved under this section equal the maximum amount allowable, no application thereafter filed for that calendar year shall be approved.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.5.

IC 6-3.1-35.8-6Unused credits Sec. 6. A tax credit shall be allowable under this chapter only for the taxable year of the taxpayer in which the contribution qualifying for the credit is paid. A taxpayer is not entitled to a refund of any unused credit.

As added by P.L.165-2021, SEC.91.

IC 6-3.1-35.8-6.1Information posted by the department Sec. 6.1. The department shall provide the following information on the department's website:

(1) The application for the tax credit provided in this chapter.

(2) A timeline for receiving the credit provided in this chapter.

(3) The total amount of credits awarded under this chapter during the current calendar year.

As added by P.L.97-2023, SEC.6.

IC 6-3.1-35.8-7Applicable tax years Sec. 7. This chapter applies to taxable years beginning after December 31, 2021.

As added by P.L.165-2021, SEC.91.

IC 6-3.1-35.8-8Expiration Sec. 8. This chapter expires January 1, 2028.

As added by P.L.165-2021, SEC.91. Amended by P.L.97-2023, SEC.7.

IC 6-3.1-36Chapter 36. Film and Media Production Tax Credit

6-3.1-36-1"Corporation" 6-3.1-36-2"Qualified applicant" 6-3.1-36-3"Qualified media production" 6-3.1-36-4"Qualified production expenses" 6-3.1-36-5"State tax liability" 6-3.1-36-6"Taxpayer" 6-3.1-36-7Application for tax credit; certification of eligibility 6-3.1-36-8Determination of tax credit amount 6-3.1-36-9Pass through entity; shareholder, partner, or member 6-3.1-36-10Claiming of credit on state tax return 6-3.1-36-11Credit carryover 6-3.1-36-11.5Credit assignability 6-3.1-36-11.7Credit limitation 6-3.1-36-12Credit subject to annual aggregate credit limit 6-3.1-36-13Expiration

IC 6-3.1-36-1"Corporation" Sec. 1. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3-1.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-2"Qualified applicant" Sec. 2. As used in this chapter, "qualified applicant" means a person, corporation, limited liability partnership, limited liability company, or other entity that is engaged in the business of making a qualified media production in Indiana.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-3"Qualified media production" Sec. 3. As used in this chapter, "qualified media production" means:

(1) a feature length film, including an independent or studio production, or a documentary;

(2) a television episodic series, program, or feature;

(3) a music production;

(4) a digital media production that is intended for reasonable commercial exploitation; or

(5) any other similar production as determined by the corporation;

that is produced in Indiana.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-4"Qualified production expenses" Sec. 4. As used in this chapter, "qualified production expenses" means expenses incurred by a qualified applicant for a qualified media production.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-5"State tax liability" Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and

(2) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-6"Taxpayer" Sec. 6. As used in this chapter, "taxpayer" means a qualified applicant that has any state tax liability.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-7Application for tax credit; certification of eligibility Sec. 7. (a) A qualified applicant may apply to the corporation for a tax credit under this chapter. The corporation shall prescribe the form and contents of the application.

(b) The corporation shall evaluate an applicant's eligibility for a tax credit under this chapter.

(c) The corporation may certify the eligibility of a taxpayer that meets the requirements for a tax credit under this chapter.

(d) If the corporation certifies a taxpayer under subsection (c), the corporation shall determine the percentage used to calculate the amount of a tax credit under section 8(2) of this chapter.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-8Determination of tax credit amount Sec. 8. If the corporation certifies a taxpayer under section 7(c) of this chapter, the taxpayer is entitled to a tax credit under this chapter equal to:

(1) the amount of the taxpayer's qualified production expenses; multiplied by

(2) a percentage determined by the corporation, not to exceed thirty percent (30%).

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-9Pass through entity; shareholder, partner, or member Sec. 9. If a pass through entity is entitled to a credit under section 8 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, member, or beneficiary 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, member, or beneficiary is entitled.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-10Claiming of credit on state tax return Sec. 10. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-11Credit carryover Sec. 11. (a) The amount of the credit provided by this chapter that a taxpayer uses during a particular taxable year may not exceed the state tax liability of the taxpayer.

(b) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the first taxable year containing the taxable year for which the corporation awards the credit, then the excess may be carried over to succeeding taxable years and used as a credit against the state tax liability of the taxpayer during those taxable years.

(c) Each time that the credit is carried over to a succeeding taxable year, it is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for nine (9) taxable years following the first taxable year containing the taxable year for which the corporation awards the credit.

(d) If a taxpayer fails to claim a credit under this chapter for a year in which the taxpayer is otherwise permitted to claim the credit, the credit will be considered to be used for purposes of subsection (c).

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-11.5Credit assignability Sec. 11.5. (a) A taxpayer may assign any part of the credit that the taxpayer may claim under this chapter. A credit that is assigned under this section remains subject to this chapter. If a taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another taxpayer. A taxpayer may make only one (1) assignment of a credit.

(b) Before a credit may be assigned, the taxpayer must notify the corporation of the assignment of the credit in the manner prescribed by the corporation.

(c) An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and the assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of the part of the credit assigned.

As added by P.L.78-2025, SEC.1.

IC 6-3.1-36-11.7Credit limitation Sec. 11.7. (a) Any single credit provided by this chapter may not exceed two hundred fifty thousand dollars ($250,000).

(b) The aggregate amount of credits provided by this chapter before its expiration may not exceed two million dollars ($2,000,000).

As added by P.L.78-2025, SEC.2.

IC 6-3.1-36-12Credit subject to annual aggregate credit limit Sec. 12. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.135-2022, SEC.19.

IC 6-3.1-36-13Expiration Sec. 13. This chapter expires July 1, 2031.

As added by P.L.135-2022, SEC.19. Amended by P.L.78-2025, SEC.3.

IC 6-3.1-37.2Chapter 37.2. Mine Reclamation Tax Credit

6-3.1-37.2-1"Corporation" 6-3.1-37.2-2"Mine reclamation site" 6-3.1-37.2-3"Qualified investment" 6-3.1-37.2-4"State tax liability" 6-3.1-37.2-5"Taxpayer" 6-3.1-37.2-6Credit; amount; assignment 6-3.1-37.2-7Credit carryover and carryback 6-3.1-37.2-8Application to corporation 6-3.1-37.2-9Application evaluation 6-3.1-37.2-10Agreement 6-3.1-37.2-11Disqualification for substantial reduction in, or ceasing operations; relocation 6-3.1-37.2-12Application of credit against taxpayer's taxes 6-3.1-37.2-13Claiming of credit and submission of certification 6-3.1-37.2-14Pass through entities 6-3.1-37.2-15Maximum aggregate amount allowed 6-3.1-37.2-16Limitations 6-3.1-37.2-17Expiration; carryforward after expiration

IC 6-3.1-37.2-1"Corporation" Sec. 1. As used in this chapter, "corporation" refers to the Indiana economic development corporation established by IC 5-28-3 unless the context clearly denotes otherwise.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-2"Mine reclamation site" Sec. 2. As used in this chapter, "mine reclamation site" means land that has been mined using surface mining methods or underground mining methods, specifically and primarily for the removal of coal, and land contiguous to such previously mined land.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-3"Qualified investment" Sec. 3. As used in this chapter, "qualified investment" means the amount of the taxpayer's expenditures for development of property located within a mine reclamation site.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-4"State tax liability" Sec. 4. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-5"Taxpayer" Sec. 5. As used in this chapter, "taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability and that is the owner or developer of a mine reclamation site. The term includes a lessee that is assigned some part of a credit under section 6(c) of this chapter.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-6Credit; amount; assignment Sec. 6. (a) Subject to entering into an agreement with the corporation under section 8 of this chapter and subject to section 11 of this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year if the taxpayer makes a qualified investment in that year.

(b) Subject to section 15 of this chapter, the amount of the credit to which a taxpayer is entitled may not exceed the lesser of:

(1) the qualified investment made by the taxpayer during the taxable year multiplied by thirty percent (30%); or

(2) five million dollars ($5,000,000).

(c) A taxpayer may assign any part of the credit to which the taxpayer is entitled under this chapter to a lessee of the mine reclamation site. A credit that is assigned under this subsection remains subject to this chapter.

(d) An assignment under subsection (c) must be in writing and both the taxpayer and the lessee must report the assignment on their state tax returns for the year in which the assignment is made in the manner prescribed by the department of state revenue. The taxpayer may not receive value in connection with the assignment under subsection (c) that exceeds the value of the part of the credit assigned.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-7Credit carryover and carryback Sec. 7. (a) If the amount determined under section 6(b) of this chapter for a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the immediately following taxable years. The amount of the credit carryover from a taxable year is reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A credit may not be carried forward for more than ten (10) taxable years following the taxable year in which the taxpayer is first entitled to claim the credit.

(b) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-8Application to corporation Sec. 8. (a) A taxpayer that proposes to make qualified investments on a mine reclamation site as provided under this chapter may apply to the corporation to enter into an agreement for a tax credit under this chapter.

(b) The corporation shall prescribe the form of the application.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-9Application evaluation Sec. 9. The corporation shall consider the following factors in evaluating applications filed under this chapter:

(1) The impact in the surrounding community caused by the lack of development at the mine reclamation site.

(2) Evidence of support for the designation by residents, businesses, and private organizations in the surrounding community.

(3) Evidence of a commitment by private or governmental entities to assist in the financing of improvements or redevelopment activities benefiting the mine reclamation site.

(4) Whether the mine reclamation site is within an economic revitalization area designated under IC 6-1.1-12.1.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-10Agreement Sec. 10. If the corporation approves an application under this chapter, the corporation shall require the applicant to enter into an agreement with the corporation as a condition of receiving a tax credit under this chapter.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-11Disqualification for substantial reduction in, or ceasing operations; relocation Sec. 11. A taxpayer is not entitled to claim the credit provided by this chapter if the corporation determines that the taxpayer has substantially reduced or ceased its operations in Indiana in order to relocate them within the mine reclamation site. A determination that a taxpayer is not entitled to the credit provided by this chapter as a result of a substantial reduction or cessation of operations applies to credits that would otherwise arise in the taxable year in which the substantial reduction or cessation occurs and in all subsequent years.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-12Application of credit against taxpayer's taxes Sec. 12. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:

(1) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.

(2) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.

(3) Against the taxpayer's financial institutions tax (IC 6-5.5) for the taxable year.

(b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-13Claiming of credit and submission of certification Sec. 13. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certification of the corporation stating the percentage of credit allowable under this chapter and all other information that the department determines is necessary for the calculation of the credit provided by this chapter and for the determination of whether an expenditure is for a qualified investment.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-14Pass through entities Sec. 14. (a) If a pass through entity does not have state income tax liability against which the tax credit provided by this chapter may be applied, a shareholder, partner, 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter.

(c) Notwithstanding subsections (a) and (b), a pass through entity (other than an entity described in IC 6-3-1-35(1)) and its partners, beneficiaries, or members may allocate the credit among its partners, beneficiaries, or members of the pass through entity as provided by written agreement without regard to their sharing of other tax or economic attributes. Such agreements shall be filed with the corporation not later than fifteen (15) days after execution. The pass through entity shall also provide a copy of such agreements, a list of partners, beneficiaries, or members of the pass through entity, and their respective shares of the credit resulting from such agreements in the manner prescribed by the department of state revenue.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-15Maximum aggregate amount allowed Sec. 15. The aggregate amount of tax credits allowed under this chapter may not exceed twenty-five million dollars ($25,000,000) during the period beginning January 1, 2023, and ending December 31, 2027.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-16Limitations Sec. 16. A tax credit awarded under this chapter is subject to the limitations set forth in IC 5-28-6-9.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-37.2-17Expiration; carryforward after expiration Sec. 17. This chapter expires December 31, 2027. The expiration of this chapter on December 31, 2027, does not affect a taxpayer's ability to carry forward the amount of any unused credit awarded before the expiration of this chapter.

As added by P.L.214-2023, SEC.2.

IC 6-3.1-38Chapter 38. Health Reimbursement Arrangement Credit

6-3.1-38-1Applicability 6-3.1-38-2"Qualified taxpayer" 6-3.1-38-3"State tax liability" 6-3.1-38-4Credit for qualified taxpayer; credit amounts 6-3.1-38-4.5Pass through entity; shareholder, partner, or member 6-3.1-38-5Reporting requirements 6-3.1-38-6Claiming credit on tax return 6-3.1-38-7Maximum amount of credit; approval of claims 6-3.1-38-8Credit carryover; carryback or refund of unused credit 6-3.1-38-9Rules

IC 6-3.1-38-1Applicability Sec. 1. This chapter applies only to taxable years beginning after December 31, 2023.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-2"Qualified taxpayer" Sec. 2. As used in this chapter, "qualified taxpayer" means an employer that is a corporation, a limited liability company, a partnership, or another entity that:

(1) has any state tax liability; and

(2) has adopted a health reimbursement arrangement (as described in Section 9831(d) of the Internal Revenue Code) in lieu of a traditional employer provided health insurance plan.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-3"State tax liability" Sec. 3. As used in this chapter, "state tax liability" means a qualified taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax); and

(3) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the 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 chapter.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-4Credit for qualified taxpayer; credit amounts Sec. 4. (a) Subject to subsection (c) and section 7 of this chapter, a qualified taxpayer may claim a credit against the qualified taxpayer's state tax liability for a qualified contribution for a qualified taxpayer with less than fifty (50) employees, if the amount provided toward the health reimbursement arrangement is equal to or greater than the level of benefits provided in the previous benefit year, or if the amount the employer contributes toward the health reimbursement arrangement equals the same amount contributed per covered individual toward the employer provided health insurance plan during the previous benefit year.

(b) The amount of the credit is the lesser of:

(1) the amount contributed by the employer toward the health reimbursement arrangement during the taxable year; or

(2) the following:

(A) For the taxable year in which the employer establishes the health reimbursement arrangement, four hundred dollars ($400).

(B) For the taxable year that immediately follows the taxable year in which the employer establishes the health reimbursement arrangement, two hundred dollars ($200).

(C) For a taxable year following a taxable year described in clause (B), zero dollars ($0).

(c) A qualified taxpayer may not claim a credit under this chapter for a health reimbursement arrangement established in a taxable year beginning before January 1, 2024.

As added by P.L.203-2023, SEC.2. Amended by P.L.157-2026, SEC.102.

IC 6-3.1-38-4.5Pass through entity; shareholder, partner, or member Sec. 4.5. For a taxable year beginning after December 31, 2025, if a pass through entity is entitled to a credit under section 4 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

As added by P.L.157-2026, SEC.103.

IC 6-3.1-38-5Reporting requirements Sec. 5. Qualified taxpayers that claim the credit under this chapter are required to report to the department of insurance every three (3) years following the allowance of a credit under this chapter in a manner prescribed by the department of insurance. The report must state whether or not the qualified taxpayer continued to offer the health reimbursement arrangement or reverted to a traditional employer sponsored plan. If the qualified taxpayer continued to offer the health reimbursement arrangement, the report must include information regarding the amount of the benefit.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-6Claiming credit on tax return Sec. 6. To receive the credit provided by this chapter, a qualified taxpayer must claim the credit on the qualified taxpayer's state tax return or returns in the manner prescribed by the department.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-7Maximum amount of credit; approval of claims Sec. 7. (a) The amount of tax credits granted under this chapter may not exceed ten million dollars ($10,000,000) in any calendar year.

(b) The department shall record the time of filing of each return claiming a credit under section 6 of this chapter and shall approve the claims if they otherwise qualify for a tax credit under this chapter, in the chronological order in which the claims are filed in the calendar year. The claim of a credit resulting from a pass through entity shall be considered to be filed when the pass through entity files a return for the taxable year.

(c) For purposes of calculating the amount of tax credits granted under this chapter in a calendar year, in the case of a taxpayer for whom some amount of the credit claimed must be carried over under section 8 of this chapter, the taxpayer is considered to have filed a claim for the full amount allowable to the taxpayer.

(d) The department may not approve a claim for a tax credit after the date on which the total credits approved under this section equal the maximum amount allowable in a particular calendar year.

As added by P.L.203-2023, SEC.2. Amended by P.L.157-2026, SEC.104.

IC 6-3.1-38-8Credit carryover; carryback or refund of unused credit Sec. 8. (a) The amount of the credit provided by this chapter that a qualified taxpayer uses during a particular taxable year may not exceed the state tax liability of the qualified taxpayer.

(b) If the amount of a credit determined under this chapter for a particular qualified taxpayer and a particular taxable year exceeds the qualified taxpayer's state tax liability for that taxable year, then the qualified taxpayer may carry the excess over to the immediately succeeding taxable years. The credit carryover may not be used for any taxable year that begins more than ten (10) years after the date on which the donation from which the credit results is made. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the qualified taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(c) A qualified taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38-9Rules Sec. 9. The department shall adopt rules under IC 4-22-2 to implement this chapter.

As added by P.L.203-2023, SEC.2.

IC 6-3.1-38.1Chapter 38.1. Railroad Tax Credit for Qualified Infrastructure Investment

6-3.1-38.1-1"Pass through entity" 6-3.1-38.1-2"Qualified applicant" 6-3.1-38.1-3"Qualified new rail infrastructure expenditures" 6-3.1-38.1-4"Qualified railroad expenditures" 6-3.1-38.1-5"Qualified rural county" 6-3.1-38.1-6"State tax liability" 6-3.1-38.1-7"Taxpayer" 6-3.1-38.1-8Applying for tax credit; eligibility 6-3.1-38.1-9Amount of tax credit 6-3.1-38.1-10Amount of tax credit; pass through entities 6-3.1-38.1-11Claiming tax credit 6-3.1-38.1-12Carry over of excess tax credit 6-3.1-38.1-13Assignment of tax credit 6-3.1-38.1-14Aggregate amount of tax credits permitted 6-3.1-38.1-15Expiration

IC 6-3.1-38.1-1"Pass through entity" Sec. 1. As used in this chapter, "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 limited liability company; or

(4) a limited liability partnership.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-2"Qualified applicant" Sec. 2. As used in this chapter, "qualified applicant" means:

(1) a short line rail company located in whole or in part in Indiana that is classified by the United States Surface Transportation Board as a Class II or Class III railroad that makes qualified railroad expenditures; or

(2) an owner or lessee of a rail siding, industrial spur, or industry track located:

(A) on or adjacent to a Class II or Class III railroad in Indiana; or

(B) in a qualified rural county;

that makes qualified new rail infrastructure expenditures.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-3"Qualified new rail infrastructure expenditures" Sec. 3. As used in this chapter, "qualified new rail infrastructure expenditures" means gross expenditures for new rail infrastructure, including:

(1) construction of new track infrastructure such as industrial leads, switches, spurs, sidings, rail loading docks, and transloading structures, and engineering and site preparation involved with servicing new customer locations;

(2) the expansion by a Class II or Class III railroad; or

(3) construction of new track infrastructure involved with servicing new customer locations located in a qualified rural county.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-4"Qualified railroad expenditures" Sec. 4. As used in this chapter, "qualified railroad expenditures" means gross expenditures for maintenance, reconstruction, or replacement of railroad infrastructure, including track, roadbed, bridges, crossings, signals, industrial leads and sidings, and track related structures, owned or leased by a Class II or Class III railroad located in Indiana. The term does not include expenditures used to generate a federal tax credit or expenditures funded by a state or federal grant.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-5"Qualified rural county" Sec. 5. As used in this chapter, "qualified rural county" means a county in Indiana with a population of not more than three hundred thousand (300,000).

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-6"State tax liability" Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax), as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-7"Taxpayer" Sec. 7. As used in this chapter, "taxpayer" means a qualified applicant that has any state tax liability, or a qualified applicant that is considered a tax exempt entity (owned by a port or governmental entity).

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-8Applying for tax credit; eligibility Sec. 8. (a) A taxpayer wishing to claim a tax credit under this chapter must apply to the department after completion of the project for which qualified railroad expenditures or qualified new rail infrastructure expenditures were incurred. The department shall prescribe the form and manner of the application, which must include:

(1) the number of miles of railroad track owned or leased in Indiana; and

(2) a description and certification of the amount of the taxpayer's qualified railroad expenditures or qualified new rail infrastructure expenditures.

(b) The department shall evaluate a taxpayer's eligibility for a tax credit under this chapter.

(c) The department shall certify the eligibility of a taxpayer that meets the requirements for a tax credit under this chapter.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-9Amount of tax credit Sec. 9. (a) Subject to subsection (b), if the department certifies a taxpayer under section 8 of this chapter, the taxpayer is entitled to a tax credit against the taxpayer's state tax liability equal to:

(1) the taxpayer's:

(A) qualified railroad expenditures; or

(B) qualified new rail infrastructure expenditures; multiplied by

(2) fifty percent (50%).

(b) The amount of a tax credit allowed under subsection (a) shall not exceed the following:

(1) For qualified railroad expenditures, the product of:

(A) the number of miles of Class II or Class III railroad track owned or leased by the taxpayer in Indiana at the close of the taxable year; multiplied by

(B) three thousand five hundred dollars ($3,500).

(2) For qualified new rail infrastructure expenditures, the lesser of:

(A) fifty percent (50%) of the qualified new rail expenditures for each new rail served customer project completed by the taxpayer in the taxable year; or

(B) five hundred thousand dollars ($500,000) per rail served customer project.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-10Amount of tax credit; pass through entities Sec. 10. (a) If a pass through entity is entitled to a credit under section 9 of this chapter but does not have state tax liability against which the credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a credit equal to:

(1) the 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified railroad expenditure or qualified new rail infrastructure expenditure.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-11Claiming tax credit Sec. 11. To obtain a credit under this chapter, 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 allowance of the credit provided by this chapter.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-12Carry over of excess tax credit Sec. 12. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for five (5) taxable years following the unused credit year.

(b) A taxpayer is not entitled to any carryback or refund of any unused credit.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-13Assignment of tax credit Sec. 13. (a) A taxpayer may assign any part of the credit that the taxpayer may claim under this chapter. A credit that is assigned under this section remains subject to this chapter. If a taxpayer assigns a part of a credit during a taxable year, the assignee may not subsequently assign all or part of the credit to another taxpayer. A taxpayer may make only one (1) assignment of a credit.

(b) An assignment of a credit must be in writing, and both the taxpayer and assignee shall report the assignment on the taxpayer's and assignee's state tax returns for the year in which the assignment is made, in the manner prescribed by the department. A taxpayer may not receive value in connection with an assignment under this section that exceeds the value of the part of the credit assigned.

(c) If the transferor is a tax exempt entity, the transfer must be completed on or before the date that is one (1) year after the close of the tax year for which the credit was certified. As used in this subsection, "tax exempt entity" means a government agency or an organization that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-14Aggregate amount of tax credits permitted Sec. 14. (a) For each state fiscal year beginning after June 30, 2025, the aggregate amount of state tax credits permitted:

(1) for qualified railroad expenditures allowed under this chapter may not exceed nine million five hundred thousand dollars ($9,500,000); and

(2) for qualified new rail infrastructure expenditures allowed under this chapter may not exceed five million dollars ($5,000,000).

(b) Not later than June 15, 2026, and not later than June 15 each year thereafter, the department shall report to the Indiana department of transportation and the state comptroller the total amount of state tax credits certified for the immediately preceding taxable year under section 8(c) of this chapter.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.1-15Expiration Sec. 15. This chapter expires December 31, 2027.

As added by P.L.173-2025, SEC.2.

IC 6-3.1-38.3Chapter 38.3. Employment of Individuals with Disability Tax Credit

6-3.1-38.3-1"Pass through entity" 6-3.1-38.3-2"State tax liability" 6-3.1-38.3-3Credit 6-3.1-38.3-4Eligibility requirements 6-3.1-38.3-5Computation of credit amount; certain taxpayers 6-3.1-38.3-6Computation of credit amount; certain taxpayers 6-3.1-38.3-7Pass through entity; shareholder, partner, or member 6-3.1-38.3-8Claiming of credit on state tax return 6-3.1-38.3-9Credit carryover 6-3.1-38.3-10Report 6-3.1-38.3-11Expiration of chapter

IC 6-3.1-38.3-1"Pass through entity" Sec. 1. As used in this chapter, "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) an estate;

(5) a limited liability company; or

(6) a limited liability partnership.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-2"State tax liability" Sec. 2. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-3Credit Sec. 3. (a) Except as provided in subsections (b) and (c), and subject to section 4 of this chapter, a taxpayer that employs an individual who:

(1) is referred to the employer for employment through a vocational rehabilitation services program for individuals with a disability; and

(2) was initially hired by the taxpayer after December 31, 2023;

during a taxable year is entitled to a credit in the amount determined under section 5 or 6 of this chapter, as applicable, against the taxpayer's state tax liability for the taxable year based on the wages paid to the particular employee during the taxable year.

(b) A taxpayer that has received an authorization certificate from the United States Department of Labor, Wage and Hour Division, under Section 14(c) of the federal Fair Labor Standards Act of 1938, as amended (29 U.S.C. 201 et seq.), is not eligible for a credit under this chapter.

(c) A taxpayer is not eligible for a credit under this chapter for employment of a particular employee described in subsection (a) if the employee was hired within the previous twelve (12) months to replace a former employee who was terminated, unless the employee who is being replaced:

(1) was terminated for misconduct in connection with that employee's employment; or

(2) voluntarily left that employee's position.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-4Eligibility requirements Sec. 4. To be eligible for the credit under this chapter, a taxpayer must employ an individual described in section 3(a) of this chapter who works at least an average of twenty (20) hours per week for the employer in a similar setting and at a rate that is comparable to other employees of the taxpayer who perform the same or similar tasks.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-5Computation of credit amount; certain taxpayers Sec. 5. (a) This section applies to a taxpayer that satisfies the following requirements:

(1) The taxpayer is a benefit corporation (as defined in IC 23-1.3-2-3).

(2) The taxpayer employs not more than fifty (50) individuals.

(3) The majority of the taxpayer's employees are individuals described in section 3(a) of this chapter.

(b) The amount of the tax credit is determined according to the following:

(1) In the first taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to thirty percent (30%) of the wages paid to the employee during the taxable year.

(2) In the second taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to forty percent (40%) of the wages paid to the employee during the taxable year.

(3) In the third and each subsequent taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to fifty percent (50%) of the wages paid to the employee during the taxable year.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-6Computation of credit amount; certain taxpayers Sec. 6. (a) This section applies to a taxpayer that does not meet the requirements under section 5(a) of this chapter and employs five hundred (500) or less total employees.

(b) The amount of the tax credit is determined according to the following:

(1) In the first taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to twenty percent (20%) of the wages paid to the employee during the taxable year.

(2) In the second taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to thirty percent (30%) of the wages paid to the employee during the taxable year.

(3) In the third and each subsequent taxable year for which the credit is claimed with respect to wages paid to a particular employee, an amount equal to forty percent (40%) of the wages paid to the employee during the taxable year.

As added by P.L.236-2023, SEC.68. Amended by P.L.9-2024, SEC.189.

IC 6-3.1-38.3-7Pass through entity; shareholder, partner, or member Sec. 7. If a pass through entity is entitled to a credit under this chapter 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 section 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.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-8Claiming of credit on state tax return Sec. 8. In order to receive the credit provided under this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return in the manner prescribed by the department. The taxpayer shall submit to the department any information that the department determines is necessary for the calculation of the credit.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-9Credit carryover Sec. 9. (a) If the amount of the credit determined under section 5 or 6 of this chapter, as applicable, for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following five (5) taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or a refund of any unused credit amount.

(b) A taxpayer may not assign any part of a credit to which the taxpayer is entitled under this chapter.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-38.3-10Report Sec. 10. The tax credit under this chapter shall be included in the legislative services agency's tax expenditure report in 2026.

As added by P.L.236-2023, SEC.68. Amended by P.L.9-2024, SEC.190.

IC 6-3.1-38.3-11Expiration of chapter Sec. 11. This chapter expires December 31, 2028.

As added by P.L.236-2023, SEC.68.

IC 6-3.1-39.5Chapter 39.5. Employer Child Care Expenditure Credits

6-3.1-39.5-1"Indiana qualified child care facility" 6-3.1-39.5-2"Pass through entity" 6-3.1-39.5-3"Qualified child care expenditure" 6-3.1-39.5-4"Qualified expenditure" 6-3.1-39.5-5Repealed 6-3.1-39.5-6"State tax liability" 6-3.1-39.5-7"Taxpayer" 6-3.1-39.5-8Entitlement to credit; amount of credit 6-3.1-39.5-9Shareholder, partner, beneficiary, or member entitled to credit 6-3.1-39.5-10Carry forward of credit 6-3.1-39.5-11Claiming a credit 6-3.1-39.5-12Repealed 6-3.1-39.5-13Liability 6-3.1-39.5-14Maximum aggregate amount of credits 6-3.1-39.5-15Expiration

IC 6-3.1-39.5-1"Indiana qualified child care facility" Sec. 1. As used in this chapter, "Indiana qualified child care facility" means a facility that is:

(1) a qualified child care facility (as defined in Section 45F of the Internal Revenue Code);

(2) located in Indiana; and

(3) licensed by the division of family resources under IC 12-17.2.

As added by P.L.201-2023, SEC.103. Amended by P.L.58-2026, SEC.1.

IC 6-3.1-39.5-2"Pass through entity" Sec. 2. As used in this chapter, "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) an estate;

(5) a limited liability company; or

(6) a limited liability partnership.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-3"Qualified child care expenditure" Sec. 3. As used in this chapter, "qualified child care expenditure" means an expenditure:

(1) for the acquisition, construction, rehabilitation, or expansion of property used as part of an Indiana qualified child care facility of a taxpayer that is operated for the taxpayer's employees;

(2) incurred under a contract between a taxpayer and an Indiana qualified child care facility to provide for the operating costs, acquisition, construction, rehabilitation, or expansion of property used as part of the Indiana qualified child care facility;

(3) for purposes of complying with the qualified child care facility licensure requirements under IC 12-17.2, as part of the taxpayer acquiring or constructing an Indiana qualified child care facility;

(4) incurred for the operating costs of an Indiana qualified child care facility of a taxpayer that is operated for the taxpayer's employees, including costs related to training of employees, to scholarship programs, and to provide increased compensation to employees with higher levels of child care training;

(5) under a contract with an Indiana qualified child care facility to provide child care services to employees of the taxpayer, or under a contract with an intermediate entity that contracts with one (1) or more Indiana qualified child care facilities for child care services; or

(6) under a contract to provide child care resources and referral services to an employee of the taxpayer.

As added by P.L.201-2023, SEC.103. Amended by P.L.58-2026, SEC.2.

IC 6-3.1-39.5-4"Qualified expenditure" Sec. 4. As used in this chapter, "qualified expenditure" means a qualified child care expenditure.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-5RepealedAs added by P.L.201-2023, SEC.103. Repealed by P.L.58-2026, SEC.3.

IC 6-3.1-39.5-6"State tax liability" Sec. 6. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 27-1-18-2 (the insurance premiums tax) or IC 6-8-15 (the nonprofit agricultural organization health coverage tax); and

(3) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-7"Taxpayer" Sec. 7. As used in this chapter, "taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has any state tax liability and employs five hundred (500) individuals or less. The term includes a pass through entity. However, the term does not include a taxpayer who is in the business of operating a child care facility prior to making qualified expenditures.

As added by P.L.201-2023, SEC.103. Amended by P.L.58-2026, SEC.4.

IC 6-3.1-39.5-8Entitlement to credit; amount of credit Sec. 8. (a) A taxpayer that makes a qualified expenditure in a taxable year is entitled to a credit against the taxpayer's state tax liability for the taxable year.

(b) Subject to section 9 of this chapter, the maximum amount of the credit to which a taxpayer is entitled in a particular taxable year is equal to the lesser of:

(1) fifty percent (50%) of the employer's qualified expenditures in the taxable year; or

(2) one hundred thousand dollars ($100,000).

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-9Shareholder, partner, beneficiary, or member entitled to credit Sec. 9. If a pass through entity is entitled to a credit under this chapter 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 section 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.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-10Carry forward of credit Sec. 10. (a) If the amount of the credit determined under section 8(b) of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the eligible taxpayer's following three (3) taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or a refund of any unused credit amount.

(b) A taxpayer may not assign any part of a credit to which the taxpayer is entitled under this chapter.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-11Claiming a credit Sec. 11. To obtain a credit under this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary to calculate the credit provided by this chapter.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-12RepealedAs added by P.L.201-2023, SEC.103. Repealed by P.L.58-2026, SEC.5.

IC 6-3.1-39.5-13Liability Sec. 13. A taxpayer that claims a credit under this chapter is not liable for any act or omission occurring at an Indiana qualified child care facility that contracts with the taxpayer to provide child care services to employees of the taxpayer if the Indiana qualified child care facility is not owned or operated by the taxpayer.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-14Maximum aggregate amount of credits Sec. 14. (a) The maximum aggregate amount of tax credits allowed under this chapter may not exceed two million five hundred thousand dollars ($2,500,000) in each state fiscal year.

(b) The department shall record the time of filing of each return claiming a tax credit under this chapter and shall approve the tax credits, if they otherwise qualify for a tax credit under this chapter, in the chronological order in which the returns are filed in the state fiscal year.

As added by P.L.201-2023, SEC.103.

IC 6-3.1-39.5-15Expiration Sec. 15. This chapter expires July 1, 2027.

As added by P.L.201-2023, SEC.103. Amended by P.L.140-2025, SEC.1.

IC 6-3.1-40Chapter 40. Physician Practice Ownership Tax Credit

6-3.1-40-1Applicability 6-3.1-40-2"Physician" 6-3.1-40-3Repealed 6-3.1-40-4"State income tax liability" 6-3.1-40-5"Taxpayer" 6-3.1-40-6Credit; eligibility; amount 6-3.1-40-7Allowable years of credit 6-3.1-40-8Credit carryover; carryback or refund of unused credit; assignment prohibited 6-3.1-40-9Repealed 6-3.1-40-9.5Claiming credit on tax return; certified list of physicians; proof of department's approval; limitation 6-3.1-40-10Assessments 6-3.1-40-11Maximum amount of credits allowed; exception 6-3.1-40-12Department website; information required to be provided to public

IC 6-3.1-40-1Applicability Sec. 1. This chapter applies to taxable years beginning after December 31, 2023.

As added by P.L.203-2023, SEC.3.

IC 6-3.1-40-2"Physician" Sec. 2. As used in this chapter, "physician" means an individual who is licensed to practice medicine in Indiana under IC 25-22.5.

As added by P.L.203-2023, SEC.3.

IC 6-3.1-40-3RepealedAs added by P.L.203-2023, SEC.3. Repealed by P.L.230-2025, SEC.72.

IC 6-3.1-40-4"State income tax liability" Sec. 4. As used in this chapter, "state income tax liability" means the taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7 (the adjusted gross income 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 chapter.

As added by P.L.203-2023, SEC.3.

IC 6-3.1-40-5"Taxpayer" Sec. 5. As used in this chapter, "taxpayer" means an individual who:

(1) is a physician engaged in the practice of medicine;

(2) has an ownership interest in a corporation, limited liability company, partnership, or other legal entity organized to provide health care services as a physician owned entity;

(3) is not employed by a health system (as defined in IC 16-18-2-168.5); and

(4) has any state income tax liability.

As added by P.L.203-2023, SEC.3. Amended by P.L.230-2025, SEC.73.

IC 6-3.1-40-6Credit; eligibility; amount Sec. 6. If a taxpayer:

(1) has an ownership interest in a physician owned medical practice described in section 5(2) of this chapter that:

(A) is established as a legal entity under Indiana law after December 31, 2023;

(B) opens and begins to provide health care services to patients in a particular calendar year beginning after December 31, 2023; and

(C) has billed for health care services for at least six (6) months of a calendar year;

(2) has an ownership interest in the income of the physician owned medical practice that is at least:

(A) for a physician owned medical practice with not more than ten (10) owners, five percent (5%) of the physician owned medical practice's income; and

(B) for a physician owned medical practice with more than ten (10) owners, fifty percent (50%) of the physician owned medical practice's income divided by the number of physicians who own an interest in the physician owned medical practice; and

(3) provided health care services in the physician owned medical practice for at least six (6) months of a calendar year;

the taxpayer may, subject to sections 7 and 9.5 of this chapter, claim a credit against the taxpayer's state income tax liability. Subject to sections 8 and 11 of this chapter, the amount of the credit allowed under this chapter for a taxpayer in the particular calendar year is twenty thousand dollars ($20,000).

As added by P.L.203-2023, SEC.3. Amended by P.L.230-2025, SEC.74.

IC 6-3.1-40-7Allowable years of credit Sec. 7. A taxpayer may claim a tax credit under this chapter for a taxable year described in section 6 of this chapter and the two (2) immediately following taxable years.

As added by P.L.203-2023, SEC.3. Amended by P.L.230-2025, SEC.75.

IC 6-3.1-40-8Credit carryover; carryback or refund of unused credit; assignment prohibited Sec. 8. (a) If the amount of the credit allowed under section 6 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state income tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following ten (10) taxable years. The amount of the credit carryover from a taxable year must be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or a refund of any unused credit amount.

(b) A taxpayer may not assign any part of a credit to which the taxpayer is entitled under this chapter.

As added by P.L.203-2023, SEC.3.

IC 6-3.1-40-9RepealedAs added by P.L.203-2023, SEC.3. Repealed by P.L.230-2025, SEC.76.

IC 6-3.1-40-9.5Claiming credit on tax return; certified list of physicians; proof of department's approval; limitation Sec. 9.5. (a) To receive a credit under this chapter:

(1) the physician owned medical practice must apply for the department's approval of the tax credit for its owners for a calendar year in the manner prescribed by the department after June 30 of that calendar year, but not later than June 30 of the subsequent calendar year;

(2) the physician owned medical practice must submit with the application a certified list of each of the physicians who has an ownership interest in the legal entity described in section 6 of this chapter and any additional information that the department determines is necessary for the calculation of the credit under this chapter;

(3) the taxpayer must attach proof of the department's approval of the tax credit to the taxpayer's state tax return or returns; and

(4) the taxpayer must claim the approved tax credit on the taxpayer's state tax return or returns in the manner prescribed by the department.

(b) The department shall record the time of filing of each application for the department's approval of a tax credit and shall, except as provided in subsection (c), approve granting the credit to the taxpayer, if the taxpayer otherwise qualifies for a credit under this chapter, in the chronological order in which the application for the department's approval is filed in the year.

(c) If the total credits approved under this section equal the maximum amount allowable in the year, the department may not approve an application for the credit filed later in that year.

As added by P.L.230-2025, SEC.77.

IC 6-3.1-40-10Assessments Sec. 10. (a) If the department determines within five (5) years of a taxpayer's receipt of a tax credit under this chapter that the taxpayer:

(1) has sold, transferred, granted, or otherwise relinquished the taxpayer's ownership interest in an entity described in section 5(2) of this chapter; and

(2) is employed by a health system or another non-physician owned medical practice;

the department shall impose an assessment upon the taxpayer equal to the amount of tax credits provided to the taxpayer under this chapter.

(b) The department shall deposit assessments collected under this section in the state general fund.

As added by P.L.203-2023, SEC.3.

IC 6-3.1-40-11Maximum amount of credits allowed; exception Sec. 11. (a) Subject to subsection (b), the total amount of tax credits awarded under this chapter may not exceed ten million dollars ($10,000,000) in the state fiscal year beginning July 1, 2025, and ending June 30, 2026, and in each state fiscal year thereafter.

(b) For a taxable year beginning after December 31, 2024, and before January 1, 2026, only that part of a taxpayer's tax credit that is attributable to the period of time beginning after June 30, 2025, and before January 1, 2026, is subject to the maximum amount provided in subsection (a).

As added by P.L.230-2025, SEC.78.

IC 6-3.1-40-12Department website; information required to be provided to public Sec. 12. The department, on a website used by the department to provide information to the public, shall provide the following information:

(1) The application for the credit provided in this chapter.

(2) A timeline for receiving the credit provided in this chapter.

(3) The total amount of credits awarded under this chapter during the current state fiscal year.

As added by P.L.230-2025, SEC.79.

IC 6-3.1-40.9Chapter 40.9. Attainable Homeownership Tax Credit

6-3.1-40.9-1"Affordable housing organization" 6-3.1-40.9-2"Corporation" 6-3.1-40.9-3"Credit" 6-3.1-40.9-4"Pass through entity" 6-3.1-40.9-5"State tax liability" 6-3.1-40.9-6"Taxpayer" 6-3.1-40.9-7Entitlement to credit 6-3.1-40.9-8Amount of credit 6-3.1-40.9-9Carry forward of credit 6-3.1-40.9-10Shareholder, partner, or member entitled to credit 6-3.1-40.9-11Application for approval as an affordable housing organization 6-3.1-40.9-12Claiming the credit 6-3.1-40.9-13Maximum amount of credits 6-3.1-40.9-14Information concerning the credit on the department website 6-3.1-40.9-15Adoption of rules 6-3.1-40.9-16Expiration

IC 6-3.1-40.9-1"Affordable housing organization" Sec. 1. As used in this chapter, "affordable housing organization" refers to an organization that:

(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and

(2) uses volunteers to build, renovate, and develop homeownership units for individuals whose income is at least thirty percent (30%) and not more than eighty percent (80%) of the area median income.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-2"Corporation" Sec. 2. As used in this chapter, "corporation" means the Indiana economic development corporation established by IC 5-28-3-1.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-3"Credit" Sec. 3. As used in this chapter, "credit" refers to a credit granted under this chapter.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-4"Pass through entity" Sec. 4. As used in this chapter, "pass through entity" has the meaning set forth in IC 6-3-1-35.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-5"State tax liability" Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and

(2) IC 6-5.5 (the financial institutions 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 chapter.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-6"Taxpayer" Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-7Entitlement to credit Sec. 7. A taxpayer that makes a contribution to an affordable housing organization that is approved under section 11 of this chapter is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer makes the contribution.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-8Amount of credit Sec. 8. The amount of a taxpayer's credit is equal to fifty percent (50%) of the amount of the contribution that is not more than twenty thousand dollars ($20,000) made to the affordable housing organization.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-9Carry forward of credit Sec. 9. (a) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time the credit is carried forward to a succeeding taxable year, the credit is reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for five (5) taxable years following the unused credit year.

(b) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-10Shareholder, partner, or member entitled to credit Sec. 10. If a pass through entity is entitled to a credit under section 7 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, 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, or member is entitled.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-11Application for approval as an affordable housing organization Sec. 11. An affordable housing organization must apply to the corporation for approval as an affordable housing organization for purposes of this chapter. The corporation shall approve each applicant that is an affordable housing organization and provide a list of each approved affordable housing organization annually to the department before July 1 of each year.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-12Claiming the credit Sec. 12. To apply a credit against the taxpayer's state tax liability, 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 the information that the department determines is necessary for the department to determine whether the taxpayer is eligible for the credit.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-13Maximum amount of credits Sec. 13. (a) The total amount of tax credits awarded under this chapter may not exceed four million dollars ($4,000,000) in each state fiscal year. However, any amounts carried forward under section 9(a) of this chapter shall first be deducted from the total amount of tax credits that may be awarded for the succeeding state fiscal year.

(b) The department shall record the time of filing of each claim for a credit under this chapter and shall approve the credits, if they otherwise qualify, in the chronological order in which the claims for the credit are filed in the state fiscal year.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-14Information concerning the credit on the department website Sec. 14. The department, on a website used by the department to provide information to the public, shall provide the following information:

(1) The application for the credit provided in this chapter.

(2) A timeline for receiving the credit provided in this chapter.

(3) The total amount of credits awarded under this chapter during the current state fiscal year.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-15Adoption of rules Sec. 15. The department may adopt rules under IC 4-22-2 to implement this chapter.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-40.9-16Expiration Sec. 16. This chapter expires January 1, 2030.

As added by P.L.201-2023, SEC.104.

IC 6-3.1-45Chapter 45. Small Modular Nuclear Reactor Manufacturing Expense Tax Credit

6-3.1-45-1Applicability 6-3.1-45-2"Department" 6-3.1-45-3"Qualified investment" 6-3.1-45-4"Small modular nuclear reactor" 6-3.1-45-5"State tax liability" 6-3.1-45-6"Taxpayer" 6-3.1-45-7Credit for qualified investment; amount of credit 6-3.1-45-8Carryover of excess credit; taxpayer not entitled to carryback or refund 6-3.1-45-9Pass through entity without state tax liability; tax credit for shareholder, partner, or member 6-3.1-45-10Claiming credit; annual state tax return; required information

IC 6-3.1-45-1Applicability Sec. 1. This chapter applies to a taxable year beginning after December 31, 2024.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-2"Department" Sec. 2. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-3"Qualified investment" Sec. 3. As used in this chapter, "qualified investment" means a taxpayer's expenditures incurred in the manufacture of a small modular nuclear reactor in Indiana.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-4"Small modular nuclear reactor" Sec. 4. As used in this chapter, "small modular nuclear reactor" means a nuclear reactor that:

(1) has a rated electric generating capacity of not more than four hundred seventy (470) megawatts;

(2) is capable of being constructed and operated, either:

(A) alone; or

(B) in combination with one (1) or more similar reactors if additional reactors are, or become, necessary;

at a single site; and

(3) is required to be licensed by the United States Nuclear Regulatory Commission.

The term includes a nuclear reactor that is described in this section and that uses a process to produce hydrogen that can be used for energy storage, as a fuel, or for other uses.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-5"State tax liability" Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:

(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

(2) IC 6-5.5 (the financial institutions tax); and

(3) IC 27-1-18-2 (the insurance premiums 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 chapter.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-6"Taxpayer" Sec. 6. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that makes a qualified investment.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-7Credit for qualified investment; amount of credit Sec. 7. A taxpayer is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer makes a qualified investment. The amount of the credit provided by this section is equal to twenty percent (20%) of the amount of the taxpayer's qualified investment.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-8Carryover of excess credit; taxpayer not entitled to carryback or refund Sec. 8. (a) If the amount determined under section 7 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the taxpayer may carry the excess over to the following taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year.

(b) A taxpayer is not entitled to a carryback or refund of any unused credit.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-9Pass through entity without state tax liability; tax credit for shareholder, partner, or member Sec. 9. (a) If a pass through entity is entitled to a credit under section 7 of this chapter but does not have state tax liability against which the tax credit may be applied, an individual who is a shareholder, partner, 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, or member is entitled.

(b) The credit provided under subsection (a) is in addition to a tax credit to which a shareholder, partner, or member of a pass through entity is otherwise entitled under this chapter. However, a pass through entity and an individual who is a shareholder, partner, or member of the pass through entity may not claim more than one (1) credit for the same qualified investment.

As added by P.L.217-2025, SEC.1.

IC 6-3.1-45-10Claiming credit; annual state tax return; required information Sec. 10. To receive the credit provided by this chapter, 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:

(1) information verifying that the taxpayer's qualified investment was made with respect to a small modular nuclear reactor that will be manufactured in Indiana; and

(2) all information that the department determines is necessary for the calculation of the credit provided by this chapter.

As added by P.L.217-2025, SEC.1.

IC 6-3.5ARTICLE 3.5. LOCAL TAXATION

Ch. 0.7.Repealed Ch. 0.8.Repealed Ch. 1.Repealed Ch. 1.1.Repealed Ch. 1.5.Repealed Ch. 2.Repealed Ch. 3.Repealed Ch. 4.County Vehicle Excise Tax Ch. 5.County Wheel Tax Ch. 6.Repealed Ch. 7.Repealed Ch. 8.Repealed Ch. 8.5.Repealed Ch. 9.Repealed Ch. 10.Municipal Vehicle Excise Tax Ch. 11.Municipal Wheel Tax

IC 6-3.5-0.7Chapter 0.7. RepealedRepealed by P.L.197-2016, SEC.31.

IC 6-3.5-0.8Chapter 0.8. RepealedRepealed by P.L.197-2016, SEC.32.

IC 6-3.5-1Chapter 1. RepealedRepealed by P.L.73-1983, SEC.3.

IC 6-3.5-1.1Chapter 1.1. RepealedRepealed by P.L.243-2015, SEC.1.

IC 6-3.5-1.5Chapter 1.5. RepealedRepealed by P.L.243-2015, SEC.6.

IC 6-3.5-2Chapter 2. RepealedRepealed by P.L.197-2016, SEC.33.

IC 6-3.5-3Chapter 3. RepealedRepealed by P.L.28-1997, SEC.31.

IC 6-3.5-4Chapter 4. County Vehicle Excise Tax

6-3.5-4-0.1Application of certain amendments to chapter 6-3.5-4-0.5Ordinance amendments; application; liability 6-3.5-4-1Definitions 6-3.5-4-1Definitions 6-3.5-4-1.1Local income tax council 6-3.5-4-1.1Adopting entity 6-3.5-4-2Imposition and rate of surtax; eligibility for distribution 6-3.5-4-3Vehicles subject to tax 6-3.5-4-4Rescission of surtax and wheel tax; notice to bureau of motor vehicles 6-3.5-4-5Increase or decrease of surtax 6-3.5-4-6Adopted ordinance; letter approving transportation asset management plan; transmittal of copies 6-3.5-4-7Registration of vehicle; surtax; amount; collection 6-3.5-4-7.3Surtax; amount; schedule 6-3.5-4-7.4Surtax reduction; credit; adjustment; refund 6-3.5-4-7.5Expired 6-3.5-4-8Repealed 6-3.5-4-9Collections; remittance; report 6-3.5-4-10Repealed 6-3.5-4-11Repealed 6-3.5-4-12Appropriation of money derived from surtax 6-3.5-4-13Surtax fund; allocation; distribution; use 6-3.5-4-14Estimate of revenues; distribution 6-3.5-4-15Repealed 6-3.5-4-15.5Service charge 6-3.5-4-16Violations; offense

IC 6-3.5-4-0.1Application of certain amendments to chapter Sec. 0.1. The following amendments to this chapter apply as follows:

(1) The amendments made to section 7 of this chapter by P.L.33-1990 apply to vehicles registered after December 31, 1990.

(2) The addition of section 7.3 of this chapter by P.L.33-1990 applies to vehicles registered after December 31, 1990.

As added by P.L.220-2011, SEC.146.

IC 6-3.5-4-0.5Ordinance amendments; application; liability Sec. 0.5. (a) This section applies to an ordinance adopted under this chapter and in effect on January 1, 2020.

(b) An adopting entity is not required to amend an ordinance subject to this section as a result of amendments to this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the surtax.

(c) The bureau of motor vehicles shall apply an ordinance subject to this section as if the ordinance is in compliance with this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the surtax.

(d) The bureau of motor vehicles is not liable to an adopting entity or any taxpayer for actions taken under this section.

As added by P.L.178-2019, SEC.1.

IC 6-3.5-4-1Definitions Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting entity" means either the county council or the local income tax council established by IC 6-3.6-3-1 for the county, whichever adopts an ordinance to impose a surtax first.

(2) "County council" includes the city-county council of a county that contains a consolidated city of the first class.

(3) "Vehicle" has the meaning set forth in IC 6-6-5-1(b).

(4) "Net vehicle excise tax" means the tax due under IC 6-6-5 after the application of the adjustments and credits provided by that chapter.

(5) "Surtax" means the county vehicle excise tax imposed by an adopting entity under this chapter.

(6) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.205-2013, SEC.85; P.L.146-2016, SEC.5; P.L.198-2016, SEC.22; P.L.197-2016, SEC.34; P.L.257-2017, SEC.4; P.L.256-2017, SEC.3.

IC 6-3.5-4-1Definitions Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting entity" means the adopting body specified in IC 6-3.6-3-1(a).

(2) "County council" includes the city-county council of a county that contains a consolidated city of the first class.

(3) "Vehicle" has the meaning set forth in IC 6-6-5-1(b).

(4) "Net vehicle excise tax" means the tax due under IC 6-6-5 after the application of the adjustments and credits provided by that chapter.

(5) "Surtax" means the county vehicle excise tax imposed by an adopting entity under this chapter.

(6) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.205-2013, SEC.85; P.L.146-2016, SEC.5; P.L.198-2016, SEC.22; P.L.197-2016, SEC.34; P.L.257-2017, SEC.4; P.L.256-2017, SEC.3; P.L.68-2025, SEC.87.

IC 6-3.5-4-1.1Local income tax council Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1.1. For purposes of acting as the adopting entity under this chapter, a local income tax council is comprised of the same members as the local income tax council that is established by IC 6-3.6-3-1 for the county. The local income tax council shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter.

As added by P.L.205-2013, SEC.86. Amended by P.L.197-2016, SEC.35.

IC 6-3.5-4-1.1Adopting entity Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1.1. The adopting entity shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter.

As added by P.L.205-2013, SEC.86. Amended by P.L.197-2016, SEC.35; P.L.68-2025, SEC.88.

IC 6-3.5-4-2Imposition and rate of surtax; eligibility for distribution Sec. 2. (a) An adopting entity of any county may, subject to the limitation imposed by subsection (e), adopt an ordinance to impose a county vehicle excise tax in accordance with this chapter on each vehicle that is subject to the vehicle excise tax under IC 6-6-5 and that is:

(1) registered in the county; and

(2) not registered in an adopting municipality of the county where a municipal vehicle excise tax went into effect after December 31, 2026, in the adopting municipality.

(b) If a county does not use a transportation asset management plan approved by the Indiana department of transportation, the adopting entity of the county may impose the surtax either:

(1) at a rate of not less than two percent (2%) nor more than ten percent (10%); or

(2) at a specific amount of at least seven dollars and fifty cents ($7.50) and not more than twenty-five dollars ($25).

However, the surtax on a vehicle may not be less than seven dollars and fifty cents ($7.50). The adopting entity shall state the surtax rate or amount in the ordinance which imposes the tax.

(c) Except as provided in subsection (i), if a county uses a transportation asset management plan approved by the Indiana department of transportation, the adopting entity of the county may impose the surtax either:

(1) at a rate of at least two percent (2%) and not more than twenty percent (20%); or

(2) at a specific amount of at least seven dollars and fifty cents ($7.50) and not more than fifty dollars ($50).

However, the surtax on a vehicle may not be less than seven dollars and fifty cents ($7.50). The adopting entity shall state the surtax rate or amount in the ordinance that imposes the tax.

(d) Subject to the limits and requirements of this section and except as provided in IC 6-6-5-0.5(2), the adopting entity may do any of the following:

(1) Impose the county vehicle excise tax at the same rate or amount on each vehicle that is subject to the tax.

(2) Impose the county vehicle excise tax on vehicles subject to the tax at one (1) or more different rates based on the class of vehicle listed in IC 6-6-5-2(a).

(e) The adopting entity may not adopt an ordinance to impose the surtax unless it concurrently adopts an ordinance under IC 6-3.5-5 to impose the wheel tax.

(f) Notwithstanding any other provision of this chapter or IC 6-3.5-5, ordinances adopted by a county council before June 1, 2013, to impose or change the county vehicle excise tax and the annual wheel tax in the county remain in effect until the ordinances are amended or repealed under this chapter or IC 6-3.5-5.

(g) Except as provided under section 7.5 of this chapter (before its expiration on December 31, 2023) and subject to subsection (h), a county vehicle excise tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered.

(h) If the county vehicle excise tax imposed by this chapter was not paid for one (1) or more preceding years, the bureau may collect only the county vehicle excise tax imposed by this chapter for the:

(1) registration year immediately preceding the current registration year;

(2) current registration year; and

(3) registration year immediately following the current registration year.

(i) Beginning July 1, 2025, if a county containing a consolidated city uses a transportation asset management plan approved by the Indiana department of transportation, the adopting entity of the county may impose the surtax either:

(1) at a rate of at least two percent (2%) and not more than twenty percent (20%); or

(2) at a specific amount of at least seven dollars and fifty cents ($7.50) and not more than one hundred fifty dollars ($150).

However, the surtax on a vehicle may not be less than seven dollars and fifty cents ($7.50). The adopting entity shall state the surtax rate or amount in the ordinance that imposes the tax.

(j) To be eligible for a distribution under IC 8-23-30-2(k), a county must adopt a county vehicle excise tax and a county wheel tax, as provided in IC 6-3.5-5-2, not later than:

(1) for the distribution made in 2026, May 1, 2026; and

(2) for a distribution made in a subsequent year, September 1 of the prior calendar year.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.85-1983, SEC.1; P.L.255-1996, SEC.1; P.L.205-2013, SEC.87; P.L.221-2014, SEC.4; P.L.249-2015, SEC.22; P.L.146-2016, SEC.6; P.L.256-2017, SEC.4; P.L.178-2019, SEC.2; P.L.114-2021, SEC.1; P.L.236-2023, SEC.69; P.L.173-2025, SEC.3; P.L.147-2026, SEC.1.

IC 6-3.5-4-3Vehicles subject to tax Sec. 3. If an adopting entity adopts an ordinance imposing the surtax after December 31 but before September 1 of the following year, a vehicle is subject to the tax if it is registered in the county after December 31 of the year in which the ordinance is adopted. If an adopting entity adopts an ordinance imposing the surtax after August 31 but before the following January 1, a vehicle is subject to the tax if it is registered in the county after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the surtax is effective, the surtax does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax is first effective.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.85-1983, SEC.2; P.L.43-1994, SEC.1; P.L.205-2013, SEC.88; P.L.218-2017, SEC.12; P.L.178-2019, SEC.3.

IC 6-3.5-4-4Rescission of surtax and wheel tax; notice to bureau of motor vehicles Sec. 4. (a) After January 1 but before September 1 of any year, the adopting entity may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the surtax. If the adopting entity adopts such an ordinance, the surtax does not apply to a vehicle registered after December 31 of the year the ordinance is adopted.

(b) The adopting entity may not adopt an ordinance to rescind the surtax unless it concurrently adopts an ordinance under IC 6-3.5-5 to rescind the wheel tax. In addition, the adopting entity may not adopt an ordinance to rescind the surtax if:

(1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or

(2) any bonds issued by the county under IC 8-14-9 are outstanding.

(c) An adopting entity must provide the bureau of motor vehicles with an ordinance adopted under this section not later than:

(1) for an ordinance adopted before May 1, 2026, not later than May 1, 2026; and

(2) for an ordinance adopted after April 30, 2026, not later than September 1 of the year the ordinance is adopted.

As added by Acts 1980, P.L.10, SEC.4. Amended by Acts 1981, P.L.88, SEC.1; P.L.205-2013, SEC.89; P.L.218-2017, SEC.13; P.L.178-2019, SEC.4; P.L.147-2026, SEC.2.

IC 6-3.5-4-5Increase or decrease of surtax Sec. 5. (a) The adopting entity may, subject to the limitations imposed by subsection (b), adopt an ordinance to increase or decrease the surtax rate or amount. The new surtax rate or amount must be within the range of rates or amounts prescribed by section 2 of this chapter. A new rate or amount that is established by an ordinance that is adopted after December 31 but on or before September 1 of the following year applies to vehicles registered after December 31 of the year in which the ordinance to change the rate or amount is adopted. A new rate or amount that is established by an ordinance that is adopted after September 1 but before January 1 of the following year applies to vehicles registered after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the surtax rate or amount is effective, the surtax rate or amount does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax rate or amount is first effective.

(b) The adopting entity may not adopt an ordinance to decrease the surtax rate or amount under this section if:

(1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or

(2) any bonds issued by the county under IC 8-14-9 are outstanding.

As added by Acts 1980, P.L.10, SEC.4. Amended by Acts 1981, P.L.88, SEC.2; P.L.85-1983, SEC.3; P.L.255-1996, SEC.2; P.L.205-2013, SEC.90; P.L.218-2017, SEC.14; P.L.178-2019, SEC.5; P.L.111-2021, SEC.1.

IC 6-3.5-4-6Adopted ordinance; letter approving transportation asset management plan; transmittal of copies Sec. 6. (a) If an adopting entity adopts an ordinance to impose, rescind, or change the rate or amount of the surtax, the adopting entity shall send a copy of the ordinance, and, if applicable, a copy of the letter from the Indiana department of transportation approving the adopting entity's transportation asset management plan, to the bureau of motor vehicles on or before September 1, to be effective January 1 of the following calendar year.

(b) An adopting entity shall submit all copies under subsection (a) in a manner prescribed by the bureau of motor vehicles.

(c) To be eligible for a distribution under IC 8-23-30-2(k), an adopting entity must provide the bureau of motor vehicles with a copy of the adopting entity's approved transportation asset management plan not later than:

(1) for the distribution made in 2026, May 1, 2026; and

(2) for a distribution made in a subsequent year, September 1 of the prior calendar year.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.255-1996, SEC.3; P.L.205-2013, SEC.91; P.L.218-2017, SEC.15; P.L.178-2019, SEC.6; P.L.147-2026, SEC.3.

IC 6-3.5-4-7Registration of vehicle; surtax; amount; collection Sec. 7. Except for a person described under section 7.5 of this chapter (before its expiration on December 31, 2023), a person may not register a vehicle in a county that has adopted the surtax unless the person pays the surtax due, if any, to the bureau of motor vehicles. The amount of the surtax due equals the greater of seven dollars and fifty cents ($7.50), the amount established under section 2 of this chapter, or the product of:

(1) the amount determined under section 7.3 of this chapter for the vehicle, as adjusted under section 7.4 of this chapter; multiplied by

(2) the surtax rate in effect at the time of registration.

The bureau of motor vehicles shall collect the surtax due, if any, at the time a vehicle is registered.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.85-1983, SEC.4; P.L.33-1990, SEC.11; P.L.255-1996, SEC.4; P.L.11-1999, SEC.1; P.L.149-2015, SEC.1; P.L.256-2017, SEC.5; P.L.114-2021, SEC.2; P.L.236-2023, SEC.70.

IC 6-3.5-4-7.3Surtax; amount; schedule Sec. 7.3. (a) The amount of surtax imposed by rate under this chapter shall be based upon the classification and age of a vehicle as determined by the bureau of motor vehicles under IC 6-6-5, in accordance with subsection (b) or the schedule set out in subsection (c).

(b) The amount to be used in section 7 of this chapter, for a vehicle described in IC 6-6-5-3.5, is the amount assessed under IC 6-6-5-3.5.

(c) The schedule to be used in determining the amount to be used in section 7 of this chapter for a vehicle that is not described in IC 6-6-5-3.5 is as follows:

Age

III

$12

$36

$60

$96

$132

114

and thereafter

Age

VII

VIII

$168

$206

$246

$300

$344

147

184

220

268

298

126

154

186

230

260

104

127

156

196

224

101

128

164

191

130

157

104

129

106

and thereafter

Age

XII

XIII

XIV

$413

$500

$600

$700

$812

358

434

520

607

705

312

378

450

529

614

269

326

367

456

513

229

278

300

389

420

188

228

242

319

338

155

188

192

263

268

127

129

129

181

181

and thereafter

Age

XVI

XVII

$938

$1,063

814

922

709

795

611

693

521

591

428

483

353

383

258

258

125

125

and thereafter

As added by P.L.33-1990, SEC.12. Amended by P.L.255-1996, SEC.5; P.L.147-2018, SEC.1; P.L.178-2019, SEC.7.

IC 6-3.5-4-7.4Surtax reduction; credit; adjustment; refund Sec. 7.4. (a) If a vehicle has been acquired or brought into Indiana, or for any other reason becomes subject to registration after the regular annual registration date in the year on or before which the owner of the vehicle is required under the motor vehicle registration laws of Indiana to register vehicles, the amount of surtax computed under section 7.3 of this chapter shall be reduced in the same manner as the excise tax is reduced under IC 6-6-5-7.2.

(b) The owner of a vehicle who sells or otherwise disposes of the vehicle in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a credit that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.2.

(c) If the name of the owner of a vehicle is legally changed and the change has caused a change in the owner's annual registration date, the surtax liability of the owner shall be adjusted in the same manner as excise taxes are adjusted under IC 6-6-5-7.2.

(d) The owner of a vehicle who moves out of state in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a refund that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.4.

As added by P.L.11-1999, SEC.2. Amended by P.L.3-2008, SEC.61; P.L.178-2019, SEC.8.

IC 6-3.5-4-7.5ExpiredAs added by P.L.114-2021, SEC.3. Amended by P.L.236-2023, SEC.71. Expired 12-31-2023 by P.L.236-2023, SEC.71.

IC 6-3.5-4-8RepealedAs added by Acts 1980, P.L.10, SEC.4. Repealed by P.L.149-2015, SEC.2.

IC 6-3.5-4-9Collections; remittance; report Sec. 9. Not more than twenty-one (21) days after collecting the surtax, the bureau shall remit the surtax to the county treasurer of the county that imposed the surtax. Concurrently with the remittance, the bureau shall file a surtax collections report prepared on forms prescribed by the state board of accounts with the county treasurer and the county auditor.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.149-2015, SEC.3; P.L.111-2021, SEC.2.

IC 6-3.5-4-10RepealedAs added by Acts 1980, P.L.10, SEC.4. Repealed by P.L.149-2015, SEC.4.

IC 6-3.5-4-11RepealedAs added by Acts 1980, P.L.10, SEC.4. Repealed by P.L.149-2015, SEC.5.

IC 6-3.5-4-12Appropriation of money derived from surtax Sec. 12. (a) Except as provided in subsection (b), in the case of a county that contains a consolidated city, the city-county council may appropriate money derived from the surtax to the department of transportation established by IC 36-3-5-4 for use by the department under law. The city-county council may not appropriate money derived from the surtax for any other purpose.

(b) Beginning July 1, 2025, the city-county council must appropriate money derived from the surtax for the purposes allowed under IC 8-14-1-4(c).

As added by Acts 1980, P.L.10, SEC.4. Amended by Acts 1982, P.L.33, SEC.7; P.L.173-2025, SEC.4.

IC 6-3.5-4-13Surtax fund; allocation; distribution; use Sec. 13. (a) In the case of a county that does not contain a consolidated city of the first class, the county treasurer shall deposit the surtax revenues in a fund to be known as the "_________ County Surtax Fund".

(b) Before the twentieth day of each month, the county auditor shall allocate the money deposited in the county surtax fund during that month among the county and the cities and the towns in the county that are not adopting municipalities (as defined in IC 6-3.5-10-1) in which a municipal vehicle excise tax went into effect after December 31, 2026. The county auditor shall allocate the money to counties, cities, and towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3), except that for purposes of making the allocations:

(1) the population of a city or town that is an adopting municipality in which a municipal vehicle excise tax went into effect after December 31, 2026, is considered to be zero (0);

(2) the street mileage of a city or town that is an adopting municipality in which a municipal vehicle excise tax went into effect after December 31, 2026, is considered to be zero (0) miles; and

(3) the allocation to a city or town that is an adopting municipality in which a municipal vehicle excise tax went into effect after December 31, 2026, is zero dollars ($0).

(c) Before the twenty-fifth day of each month, the county treasurer shall distribute to the county and the cities and towns in the county the money deposited in the county surtax fund during that month. The county treasurer shall base the distribution on allocations made by the county auditor for that month under subsection (b).

(d) A county, city, or town may only use the surtax revenues it receives under this section:

(1) to construct, reconstruct, repair, or maintain streets and roads under its jurisdiction; or

(2) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.85-1983, SEC.5; P.L.146-2016, SEC.7; P.L.147-2026, SEC.4.

IC 6-3.5-4-14Estimate of revenues; distribution Sec. 14. (a) On or before October 1 of each year, the auditor of a county that contains a consolidated city of the first class and that has adopted the surtax shall provide the county council with an estimate of the surtax revenues to be received by the county during the next calendar year. The county shall show the estimated surtax revenues in its budget estimate for the calendar year.

(b) On or before October 1 of each year, the auditor of a county that does not contain a consolidated city of the first class and that has adopted the surtax shall provide the county and each city and town in the county with an estimate of the surtax revenues to be distributed to that unit during the next calendar year. The county, city, or town shall show the estimated surtax revenues in its budget estimate for the calendar year.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.218-2017, SEC.16.

IC 6-3.5-4-15RepealedAs added by Acts 1980, P.L.10, SEC.4. Amended by P.L.42-1986, SEC.3; P.L.2-1991, SEC.37. Repealed by P.L.149-2015, SEC.6.

IC 6-3.5-4-15.5Service charge Sec. 15.5. (a) The department of state revenue or the bureau of motor vehicles, as applicable, may impose a service charge of fifteen cents ($0.15) for each surtax collected under this chapter.

(b) A service charge imposed under this section by the bureau shall be deposited in the bureau of motor vehicles commission fund.

(c) A service charge imposed under this section by the department of state revenue shall be deposited in the motor carrier regulation fund established by IC 8-2.1-23-1.

[Pre-2016 Title 9 Revision Citations: subsection (a) formerly 9-29-1-10(b); 9-29-1-10(c); subsection (b) formerly 9-29-1-10(d); subsection (c) formerly 9-29-1-10(a).]

As added by P.L.149-2015, SEC.7. Amended by P.L.198-2016, SEC.23.

IC 6-3.5-4-16Violations; offense Sec. 16. (a) The owner of a vehicle who knowingly registers the vehicle without paying surtax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

(b) An employee of the bureau of motor vehicles who recklessly issues a registration on any vehicle without collecting surtax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

As added by Acts 1980, P.L.10, SEC.4. Amended by P.L.149-2015, SEC.8; P.L.256-2017, SEC.6.

IC 6-3.5-5Chapter 5. County Wheel Tax

6-3.5-5-0.5Ordinance amendments; application; liability 6-3.5-5-1Definitions 6-3.5-5-1Definitions 6-3.5-5-1.1Local income tax council 6-3.5-5-1.1Adopting body 6-3.5-5-2Imposition and rate of wheel tax 6-3.5-5-3Vehicles subject to tax 6-3.5-5-4Exempt vehicles 6-3.5-5-5Vehicles subject to wheel tax 6-3.5-5-6Rescission of wheel tax and vehicle excise tax 6-3.5-5-7Increase or decrease of tax; rates 6-3.5-5-8Adopted ordinance; letter approving transportation asset management plan; transmittal of copies 6-3.5-5-8.5Credit upon sale of vehicle 6-3.5-5-9Collection of wheel tax; service charge 6-3.5-5-9.5Apportioned wheel tax for certain vehicles 6-3.5-5-10Repealed 6-3.5-5-11Collections; remittance; report 6-3.5-5-12Repealed 6-3.5-5-13Remittance and reporting of wheel tax by department 6-3.5-5-14Appropriation of money derived from wheel tax 6-3.5-5-15Wheel tax fund; allocation; distribution; use 6-3.5-5-16Estimate of revenues; distribution 6-3.5-5-17Repealed 6-3.5-5-18Violations; offense

IC 6-3.5-5-0.5Ordinance amendments; application; liability Sec. 0.5. (a) This section applies to an ordinance adopted under this chapter and in effect on January 1, 2020.

(b) An adopting entity is not required to amend an ordinance subject to this section as a result of amendments to this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax.

(c) The bureau of motor vehicles shall apply an ordinance subject to this section as if the ordinance is in compliance with this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax.

(d) The bureau of motor vehicles is not liable to an adopting entity or any taxpayer for actions taken under this section.

As added by P.L.178-2019, SEC.9.

IC 6-3.5-5-1Definitions Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting entity" means either the county council or the local income tax council established by IC 6-3.6-3-1 for the county, whichever adopts an ordinance to impose a wheel tax first.

(2) "Bus" has the meaning set forth in IC 9-13-2-17.

(3) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b).

(4) "County council" includes the city-county council of a county that contains a consolidated city of the first class.

(5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b).

(6) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155.

(7) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150.

(8) "School bus" has the meaning set forth in IC 9-13-2-161(a).

(9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).

(10) "State agency" has the meaning set forth in IC 34-6-2.1-194.

(11) "Tractor" has the meaning set forth in IC 9-13-2-180.

(12) "Trailer" has the meaning set forth in IC 9-13-2-184(a).

(13) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

(14) "Truck" has the meaning set forth in IC 9-13-2-188(a).

(15) "Wheel tax" means the tax imposed under this chapter.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.3-1989, SEC.40; P.L.2-1991, SEC.38; P.L.1-1998, SEC.79; P.L.1-2007, SEC.62; P.L.211-2007, SEC.30; P.L.205-2013, SEC.92; P.L.146-2016, SEC.8; P.L.198-2016, SEC.24; P.L.197-2016, SEC.36; P.L.257-2017, SEC.5; P.L.256-2017, SEC.7; P.L.186-2025, SEC.68.

IC 6-3.5-5-1Definitions Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting entity" means the adopting body specified in IC 6-3.6-3-1(a).

(2) "Bus" has the meaning set forth in IC 9-13-2-17.

(3) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b).

(4) "County council" includes the city-county council of a county that contains a consolidated city of the first class.

(5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b).

(6) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155.

(7) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150.

(8) "School bus" has the meaning set forth in IC 9-13-2-161(a).

(9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).

(10) "State agency" has the meaning set forth in IC 34-6-2.1-194.

(11) "Tractor" has the meaning set forth in IC 9-13-2-180.

(12) "Trailer" has the meaning set forth in IC 9-13-2-184(a).

(13) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

(14) "Truck" has the meaning set forth in IC 9-13-2-188(a).

(15) "Wheel tax" means the tax imposed under this chapter.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.3-1989, SEC.40; P.L.2-1991, SEC.38; P.L.1-1998, SEC.79; P.L.1-2007, SEC.62; P.L.211-2007, SEC.30; P.L.205-2013, SEC.92; P.L.146-2016, SEC.8; P.L.198-2016, SEC.24; P.L.197-2016, SEC.36; P.L.257-2017, SEC.5; P.L.256-2017, SEC.7; P.L.186-2025, SEC.68; P.L.68-2025, SEC.89; P.L.186-2025, SEC.269.

IC 6-3.5-5-1.1Local income tax council Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1.1. For purposes of acting as the adopting entity under this chapter, a local income tax council is comprised of the same members as the local income tax council that is established by IC 6-3.6-3-1 for the county. The local income tax council shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter.

As added by P.L.205-2013, SEC.93. Amended by P.L.197-2016, SEC.37.

IC 6-3.5-5-1.1Adopting body Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1.1. The adopting entity shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter.

As added by P.L.205-2013, SEC.93. Amended by P.L.197-2016, SEC.37; P.L.68-2025, SEC.90.

IC 6-3.5-5-2Imposition and rate of wheel tax Sec. 2. (a) The adopting entity of any county may, subject to the limitation imposed by subsection (b), adopt an ordinance to impose a county wheel tax in accordance with this chapter on each vehicle that:

(1) is included in one (1) of the classes of vehicles listed in section 3 of this chapter;

(2) is not exempt from the wheel tax under section 4 of this chapter;

(3) is registered in the county; and

(4) is not registered in an adopting municipality of the county where a municipal wheel tax went into effect after December 31, 2026, in the adopting municipality.

(b) The adopting entity of a county may not adopt an ordinance to impose the wheel tax unless it concurrently adopts an ordinance under IC 6-3.5-4 to impose the county vehicle excise tax.

(c) The adopting entity may impose the wheel tax at a different rate for each of the classes of vehicles listed in section 3 of this chapter. In addition, the adopting entity may establish different rates within the classes of buses, semitrailers, trailers, tractors, and trucks based on weight classifications of those vehicles that are established by the bureau of motor vehicles for use throughout Indiana. Except as otherwise provided in subsection (f), the wheel tax rate for a particular class or weight classification of vehicles:

(1) may not be less than five dollars ($5) and may not exceed forty dollars ($40), if the county does not use a transportation asset management plan approved by the Indiana department of transportation; or

(2) may not be less than five dollars ($5) and may not exceed eighty dollars ($80), if the county uses a transportation asset management plan approved by the Indiana department of transportation.

The adopting entity shall state the initial wheel tax rates in the ordinance that imposes the tax.

(d) Subject to subsection (e), a wheel tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered.

(e) If the county wheel tax imposed by this chapter was not paid for one (1) or more preceding years, the bureau may collect only the county wheel tax imposed by this chapter for the:

(1) registration year immediately preceding the current registration year;

(2) current registration year; and

(3) registration year immediately following the current registration year.

(f) Beginning July 1, 2025, if a county containing a consolidated city uses a transportation asset management plan approved by the Indiana department of transportation, the wheel tax rate for a particular class or weight classification of vehicles may not be less than five dollars ($5) and may not exceed two hundred forty dollars ($240).

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.6; P.L.205-2013, SEC.94; P.L.146-2016, SEC.9; P.L.256-2017, SEC.8; P.L.178-2019, SEC.10; P.L.173-2025, SEC.5; P.L.147-2026, SEC.5.

IC 6-3.5-5-3Vehicles subject to tax Sec. 3. The wheel tax applies to the following classes of vehicles:

(1) buses;

(2) recreational vehicles;

(3) semitrailers;

(4) trailers with a declared gross weight of more than nine thousand (9,000) pounds; and

(5) trucks and tractors with a declared gross weight of more than eleven thousand (11,000) pounds.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.178-2019, SEC.11.

IC 6-3.5-5-4Exempt vehicles Sec. 4. A vehicle is exempt from the wheel tax imposed under this chapter if the vehicle is:

(1) owned by this state;

(2) owned by a state agency of this state;

(3) owned by a political subdivision of this state;

(4) subject to the annual license excise surtax imposed under IC 6-3.5-4;

(5) a bus owned and operated by a religious or nonprofit youth organization and used to haul persons to religious services or for the benefit of their members;

(6) a school bus; or

(7) a motor vehicle that is funeral equipment and that is used in the operation of funeral services (as defined in IC 25-15-2-17).

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.257-2017, SEC.6.

IC 6-3.5-5-5Vehicles subject to wheel tax Sec. 5. If an adopting entity adopts an ordinance imposing the wheel tax after December 31 but before September 1 of the following year, the wheel tax applies after December 31 of the year in which the ordinance is adopted. If an adopting entity adopts an ordinance imposing the wheel tax after August 31 but before the following January 1, the wheel tax applies after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the tax is effective, the tax does not apply to the registration of a motor vehicle for the registration year that commenced in the calendar year preceding the year the tax is first effective.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.7; P.L.43-1994, SEC.2; P.L.205-2013, SEC.95; P.L.218-2017, SEC.17; P.L.147-2026, SEC.6.

IC 6-3.5-5-6Rescission of wheel tax and vehicle excise tax Sec. 6. (a) After January 1 but on or before September 1 of any year, the adopting entity may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the wheel tax. If the adopting entity adopts such an ordinance, the wheel tax does not apply to a vehicle registered after December 31 of the year the ordinance is adopted.

(b) The adopting entity may not adopt an ordinance to rescind the wheel tax unless it concurrently adopts an ordinance under IC 6-3.5-4 to rescind the annual license excise surtax. In addition, the adopting entity may not adopt an ordinance to rescind the wheel tax if:

(1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or

(2) any bonds issued by the county under IC 8-14-9 are outstanding.

As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1981, P.L.88, SEC.3; P.L.205-2013, SEC.96; P.L.218-2017, SEC.18.

IC 6-3.5-5-7Increase or decrease of tax; rates Sec. 7. (a) The adopting entity may, subject to the limitations imposed by subsection (b), adopt an ordinance to increase or decrease the wheel tax rates. The new wheel tax rates must be within the range of rates prescribed by section 2 of this chapter. New rates that are established by an ordinance that is adopted after December 31 but on or before September 1 of the following year apply to vehicles registered after December 31 of the year in which the ordinance to change the rates is adopted. New rates that are established by an ordinance that is adopted after September 1 but before January 1 of the following year apply to motor vehicles registered after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the wheel tax rates are effective, the wheel tax rates do not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the wheel tax rates are first effective.

(b) The adopting entity may not adopt an ordinance to decrease the wheel tax rates under this section if:

(1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or

(2) any bonds issued by the county under IC 8-14-9 are outstanding.

As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1981, P.L.88, SEC.4; P.L.85-1983, SEC.8; P.L.205-2013, SEC.97; P.L.218-2017, SEC.19; P.L.111-2021, SEC.3.

IC 6-3.5-5-8Adopted ordinance; letter approving transportation asset management plan; transmittal of copies Sec. 8. (a) If an adopting entity adopts an ordinance to impose, rescind, or change the rates of the wheel tax, the adopting entity shall send a copy of the ordinance and, if applicable, a copy of a letter from the Indiana department of transportation approving the adopting entity's transportation asset management plan, to:

(1) the bureau of motor vehicles; and

(2) the department of state revenue;

on or before September 1 to be effective January 1 of the following calendar year.

(b) For copies required to be sent to the bureau of motor vehicles under subsection (a), an adopting entity shall submit all copies in a manner prescribed by the bureau of motor vehicles.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.205-2013, SEC.98; P.L.218-2017, SEC.20; P.L.178-2019, SEC.12.

IC 6-3.5-5-8.5Credit upon sale of vehicle Sec. 8.5. (a) Every owner of a vehicle for which the wheel tax has been paid for the owner's registration year is entitled to a credit if during that registration year the owner sells the vehicle. The amount of the credit equals the wheel tax owed for and paid during the current registration year by the owner for the vehicle that was sold. The credit may only be applied by the owner against the wheel tax owed for a vehicle that is purchased during the same registration year.

(b) An owner of a vehicle is not entitled to a refund of any part of a credit that is not used under this section.

As added by P.L.86-1983, SEC.1. Amended by P.L.256-2017, SEC.9.

IC 6-3.5-5-9Collection of wheel tax; service charge Sec. 9. (a) A person may not register a vehicle in a county which has adopted the wheel tax unless the person pays the wheel tax due, if any, to the bureau of motor vehicles. The amount of the wheel tax due is based on the wheel tax rate, for that class of vehicle, in effect at the time of registration.

(b) The bureau of motor vehicles shall collect the wheel tax due, if any, at the time a motor vehicle is registered.

(c) The department of state revenue or the bureau of motor vehicles, as applicable, may impose a service charge of fifteen cents ($0.15) for each wheel tax collection made under this chapter.

(d) A service charge imposed under this section by the bureau shall be deposited in the bureau of motor vehicles commission fund.

(e) A service charge imposed under this section by the department of state revenue shall be deposited in the motor carrier regulation fund established by IC 8-2.1-23-1.

[Pre-2016 Title 9 Revision Citations: subsection (c) formerly 9-29-1-10(b); 9-29-1-10(c); subsection (d) formerly 9-29-1-10(d); subsection (e) formerly 9-29-1-10(e).]

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.9; P.L.198-2016, SEC.25.

IC 6-3.5-5-9.5Apportioned wheel tax for certain vehicles Sec. 9.5. (a) This section applies to a wheel tax that is:

(1) adopted after June 30, 2007; or

(2) collected after June 30, 2017.

(b) An owner of one (1) or more commercial vehicles paying an apportioned registration to the state under the International Registration Plan that is required to pay a wheel tax shall pay an apportioned wheel tax calculated by dividing in-state actual miles by total fleet miles generated during the preceding year. If in-state miles are estimated for purposes of proportional registration, these miles are divided by total actual and estimated fleet miles. The apportioned wheel tax under this section shall be paid at the same time and in the same manner as the commercial vehicle excise tax under IC 6-6-5.5.

(c) A voucher from the department of state revenue showing payment of the wheel tax may be accepted by the bureau of motor vehicles in lieu of the payment required under section 9 of this chapter.

As added by P.L.211-2007, SEC.31. Amended by P.L.85-2017, SEC.23; P.L.218-2017, SEC.21.

IC 6-3.5-5-10RepealedAs added by Acts 1980, P.L.10, SEC.5. Repealed by P.L.149-2015, SEC.10.

IC 6-3.5-5-11Collections; remittance; report Sec. 11. Not more than twenty-one (21) days after collecting the wheel tax, the bureau of motor vehicles shall remit the wheel tax to the county treasurer of the county that imposed the wheel tax. Concurrently with the remittance, the bureau shall file a wheel tax collections report prepared on forms prescribed by the state board of accounts with the county treasurer and the county auditor.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.11; P.L.111-2021, SEC.4.

IC 6-3.5-5-12RepealedAs added by Acts 1980, P.L.10, SEC.5. Repealed by P.L.149-2015, SEC.12.

IC 6-3.5-5-13Remittance and reporting of wheel tax by department Sec. 13. If the wheel tax for a commercial vehicle is collected directly by the department of state revenue, the commissioner of the department of state revenue shall:

(1) remit the wheel tax to, and file a wheel tax collections report with, the appropriate county treasurer; and

(2) file a wheel tax collections report with the county auditor;

in the same manner and at the same time that the bureau of motor vehicles is required to remit and report under section 11 of this chapter.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.211-2007, SEC.32; P.L.198-2016, SEC.26.

IC 6-3.5-5-14Appropriation of money derived from wheel tax Sec. 14. (a) Except as provided in subsection (b), in the case of a county that contains a consolidated city, the city-county council may appropriate money derived from the wheel tax to:

(1) the department of transportation established by IC 36-3-5-4 for use by the department under law; or

(2) an authority established under IC 36-7-23.

(b) Beginning July 1, 2025, the city-county council must appropriate money derived from the wheel tax for the purposes allowed under IC 8-14-1-4(c).

(c) The city-county council may not appropriate money derived from the wheel tax for any other purpose.

As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1982, P.L.33, SEC.8; P.L.346-1989(ss), SEC.1; P.L.173-2025, SEC.6.

IC 6-3.5-5-15Wheel tax fund; allocation; distribution; use Sec. 15. (a) In the case of a county that does not contain a consolidated city, the county treasurer shall deposit the wheel tax revenues in a fund to be known as the "County Wheel Tax Fund".

(b) Before the twentieth day of each month, the county auditor shall allocate the money deposited in the county wheel tax fund during that month among the county and the cities and the towns in the county that are not adopting municipalities (as defined in IC 6-3.5-11-1) in which a municipal wheel tax went into effect after December 31, 2026. The county auditor shall allocate the money to counties, cities, and towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3), except that for purposes of making the allocations:

(1) the population of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0);

(2) the street mileage of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0) miles; and

(3) the allocation to a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is zero dollars ($0).

(c) Before the twenty-fifth day of each month, the county treasurer shall distribute to the county and the cities and towns in the county the money deposited in the county wheel tax fund during that month. The county treasurer shall base the distribution on allocations made by the county auditor for that month under subsection (b).

(d) A county, city, or town may only use the wheel tax revenues it receives under this section:

(1) to construct, reconstruct, repair, or maintain streets and roads under its jurisdiction;

(2) as a contribution to an authority established under IC 36-7-23; or

(3) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.9; P.L.346-1989(ss), SEC.2; P.L.146-2016, SEC.10; P.L.147-2026, SEC.7.

IC 6-3.5-5-16Estimate of revenues; distribution Sec. 16. (a) On or before October 1 of each year, the auditor of a county that contains a consolidated city of the first class and that has adopted the wheel tax shall provide the county council with an estimate of the wheel tax revenues to be received by the county during the next calendar year. The county shall show the estimated wheel tax revenues in its budget estimate for the calendar year.

(b) On or before October 1 of each year, the auditor of a county that does not contain a consolidated city of the first class and that has adopted the wheel tax shall provide the county and each city and town in the county with an estimate of the wheel tax revenues to be distributed to that unit during the next calendar year. The county, city, or town shall show the estimated wheel tax revenues in its budget estimate for the calendar year.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.218-2017, SEC.22.

IC 6-3.5-5-17RepealedAs added by Acts 1980, P.L.10, SEC.5. Amended by P.L.42-1986, SEC.4; P.L.2-1991, SEC.39. Repealed by P.L.149-2015, SEC.13.

IC 6-3.5-5-18Violations; offense Sec. 18. (a) The owner of a vehicle who knowingly registers the vehicle without paying wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

(b) An employee of the bureau of motor vehicles who recklessly issues a registration on any vehicle without collecting wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.14.

IC 6-3.5-6Chapter 6. RepealedRepealed by P.L.243-2015, SEC.7.

IC 6-3.5-7Chapter 7. RepealedRepealed by P.L.243-2015, SEC.8.

IC 6-3.5-8Chapter 8. RepealedRepealed by P.L.146-2008, SEC.804.

IC 6-3.5-8.5Chapter 8.5. RepealedRepealed by P.L.156-1995, SEC.9.

IC 6-3.5-9Chapter 9. RepealedRepealed by P.L.214-2019, SEC.26.

IC 6-3.5-10Chapter 10. Municipal Vehicle Excise Tax

6-3.5-10-0.5Ordinance amendments; application; liability 6-3.5-10-1Definitions 6-3.5-10-2Imposition and rate of surtax; restrictions; unpaid tax 6-3.5-10-3Vehicles subject to tax 6-3.5-10-4Rescission of surtax and wheel tax 6-3.5-10-5Increase or decrease of surtax 6-3.5-10-6Adopted ordinance; letter approving transportation asset management plan; transmittal of copies 6-3.5-10-7Registration of vehicle; collection of surtax 6-3.5-10-8Surtax reduction; credit; adjustment; refund 6-3.5-10-8.5Expired 6-3.5-10-9Collections; remittance; report 6-3.5-10-10Surtax fund; use 6-3.5-10-11Estimate of revenues 6-3.5-10-12Service charge 6-3.5-10-13Violations; offense

IC 6-3.5-10-0.5Ordinance amendments; application; liability Sec. 0.5. (a) This section applies to an ordinance adopted under this chapter and in effect on January 1, 2020.

(b) An adopting municipality is not required to amend an ordinance subject to this section as a result of amendments to this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the surtax.

(c) The bureau of motor vehicles shall apply an ordinance subject to this section as if the ordinance is in compliance with this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the surtax.

(d) The bureau of motor vehicles is not liable to an adopting municipality or any taxpayer for actions taken under this section.

As added by P.L.178-2019, SEC.13.

IC 6-3.5-10-1Definitions Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting municipality" means an eligible municipality that has adopted the surtax.

(2) "Eligible municipality" means a municipality having a population of at least five thousand (5,000).

(3) "Fiscal body" has the meaning set forth in IC 36-1-2-6.

(4) "Fiscal officer" has the meaning set forth in IC 36-1-2-7.

(5) "Vehicle" has the meaning set forth in IC 6-6-5-1(b).

(6) "Municipality" has the meaning set forth in IC 36-1-2-11.

(7) "Surtax" means the municipal vehicle excise tax imposed by the fiscal body of an eligible municipality under this chapter.

(8) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.23; P.L.256-2017, SEC.10; P.L.86-2018, SEC.74.

IC 6-3.5-10-2Imposition and rate of surtax; restrictions; unpaid tax Sec. 2. (a) The fiscal body of an eligible municipality may, subject to subsections (c) and (d), adopt an ordinance to impose a municipal vehicle excise tax on each vehicle that is subject to the vehicle excise tax under IC 6-6-5 and that is registered in the eligible municipality. The eligible municipality may impose the surtax at a specific amount of:

(1) at least seven dollars and fifty cents ($7.50); and

(2) not more than twenty-five dollars ($25).

The eligible municipality shall state the surtax rate or amount in the ordinance that imposes the tax.

(b) Subject to the limits and requirements of this section and except as provided in IC 6-6-5-0.5(2), the fiscal body of an eligible municipality may do any of the following:

(1) Impose the municipal vehicle excise tax at the same amount on each vehicle that is subject to the tax.

(2) Impose the municipal vehicle excise tax on vehicles subject to the tax at one (1) or more different amounts based on the class of vehicle listed in IC 6-6-5-2(a).

(c) The fiscal body of an eligible municipality may not adopt an ordinance to impose the surtax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-11 to impose the municipal wheel tax.

(d) The fiscal body of an eligible municipality may not adopt an ordinance to impose the surtax unless the eligible municipality uses a transportation asset management plan approved by the Indiana department of transportation.

(e) Except as provided under section 8.5 of this chapter (before its expiration on December 31, 2023) and subject to subsection (f), a municipal vehicle excise tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered.

(f) If the municipal vehicle excise tax imposed by this chapter was not paid for one (1) or more preceding registration years, the bureau may collect only the municipal vehicle excise tax imposed by this chapter for the:

(1) registration year immediately preceding the current registration year;

(2) current registration year; and

(3) registration year immediately following the current registration year.

As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.11; P.L.178-2019, SEC.14; P.L.114-2021, SEC.4; P.L.236-2023, SEC.72.

IC 6-3.5-10-3Vehicles subject to tax Sec. 3. If the fiscal body of an eligible municipality adopts an ordinance imposing the surtax after December 31 but on or before September 1 of the following year, a vehicle is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year in which the ordinance is adopted. If the fiscal body of an eligible municipality adopts an ordinance imposing the surtax after September 1 but before the following January 1, a vehicle is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the surtax is effective, the surtax does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax is first effective.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.24; P.L.178-2019, SEC.15.

IC 6-3.5-10-4Rescission of surtax and wheel tax Sec. 4. (a) After January 1 but before September 1 of any year, the fiscal body of an adopting municipality may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the surtax. If a fiscal body adopts an ordinance to rescind the surtax, the surtax does not apply to a vehicle registered after December 31 of the year in which the ordinance is adopted.

(b) A fiscal body may not adopt an ordinance to rescind the surtax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-11 to rescind the municipal wheel tax.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.25; P.L.178-2019, SEC.16.

IC 6-3.5-10-5Increase or decrease of surtax Sec. 5. The fiscal body of an adopting municipality may adopt an ordinance to increase or decrease the surtax amount. The new surtax amount must be within the range of amounts prescribed by section 2 of this chapter. A new amount that is established by an ordinance that is adopted after December 31 but on or before September 1 of the following year applies to motor vehicles registered after December 31 of the year in which the ordinance to change the amount is adopted. A new amount that is established by an ordinance that is adopted after September 1 but before January 1 of the following year applies to motor vehicles registered after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the surtax amount is effective, the surtax amount does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax amount is first effective.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.26; P.L.111-2021, SEC.5.

IC 6-3.5-10-6Adopted ordinance; letter approving transportation asset management plan; transmittal of copies Sec. 6. (a) If the fiscal body of an eligible municipality adopts an ordinance to impose, rescind, or change the amount of the surtax, the fiscal body shall send a copy of the ordinance and a copy of a letter from the Indiana department of transportation approving the eligible municipality's transportation asset management plan to the bureau of motor vehicles on or before September 1 to be effective January 1 of the following calendar year.

(b) The fiscal body shall submit all copies under subsection (a) in a manner prescribed by the bureau of motor vehicles.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.27; P.L.178-2019, SEC.17.

IC 6-3.5-10-7Registration of vehicle; collection of surtax Sec. 7. Except for a person described under section 8.5 of this chapter (before its expiration on December 31, 2023), a person may not register a vehicle in an adopting municipality unless the person pays the surtax due, if any, to the bureau of motor vehicles. The amount of the surtax due equals the amount established under section 2 of this chapter. The bureau of motor vehicles shall collect the surtax due, if any, at the time a vehicle is registered.

As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.12; P.L.114-2021, SEC.5; P.L.236-2023, SEC.73.

IC 6-3.5-10-8Surtax reduction; credit; adjustment; refund Sec. 8. (a) If a vehicle has been acquired or brought into Indiana, or for any other reason becomes subject to registration after the regular annual registration date in the year on or before which the owner of the vehicle is required under the motor vehicle registration laws of Indiana to register vehicles, the amount of the surtax shall be reduced in the same manner as the excise tax is reduced under IC 6-6-5-7.2.

(b) The owner of a vehicle who sells or otherwise disposes of the vehicle in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a credit that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.2.

(c) If the name of the owner of a vehicle is legally changed and the change has caused a change in the owner's annual registration date, the surtax liability of the owner shall be adjusted in the same manner as excise taxes are adjusted under IC 6-6-5-7.2.

(d) The owner of a vehicle who moves out of state in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a refund that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.4.

As added by P.L.146-2016, SEC.11. Amended by P.L.178-2019, SEC.18.

IC 6-3.5-10-8.5ExpiredAs added by P.L.114-2021, SEC.6. Amended by P.L.236-2023, SEC.74. Expired 12-31-2023 by P.L.236-2023, SEC.74.

IC 6-3.5-10-9Collections; remittance; report Sec. 9. Not more than twenty-one (21) days after collecting the surtax, the bureau of motor vehicles shall remit the surtax to the fiscal officer of the adopting municipality that imposed the surtax. Concurrently with the remittance, the bureau of motor vehicles shall file a surtax collections report prepared on forms prescribed by the state board of accounts with the fiscal officer of the adopting municipality.

As added by P.L.146-2016, SEC.11. Amended by P.L.111-2021, SEC.6.

IC 6-3.5-10-10Surtax fund; use Sec. 10. (a) The fiscal officer of an adopting municipality shall deposit the surtax revenues in a fund to be known as the "municipal surtax fund".

(b) An adopting municipality may use the surtax revenues that the adopting municipality receives under this section:

(1) to construct, reconstruct, repair, or maintain streets and roads under the adopting municipality's jurisdiction; or

(2) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30.

As added by P.L.146-2016, SEC.11.

IC 6-3.5-10-11Estimate of revenues Sec. 11. On or before October 1 of each year, the fiscal officer of an adopting municipality shall provide the fiscal body of the adopting municipality with an estimate of the surtax revenues to be received by the adopting municipality during the next calendar year. The adopting municipality shall include the estimated surtax revenues in the adopting municipality's budget estimate for the calendar year.

As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.28.

IC 6-3.5-10-12Service charge Sec. 12. The following, as applicable, may impose a service charge of fifteen cents ($0.15) for each surtax collected under this chapter:

(1) The department.

(2) The bureau of motor vehicles under IC 9-14-8-3.

As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.13.

IC 6-3.5-10-13Violations; offense Sec. 13. (a) The owner of a vehicle who knowingly registers the vehicle without paying the surtax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

(b) An employee of the bureau of motor vehicles who recklessly issues a registration on any vehicle without collecting the surtax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.14.

IC 6-3.5-11Chapter 11. Municipal Wheel Tax

6-3.5-11-0.5Ordinance amendments; application; liability 6-3.5-11-1Definitions 6-3.5-11-2Imposition of tax; municipal wheel tax; rate; unpaid tax 6-3.5-11-3Vehicles subject to tax 6-3.5-11-4Exempt vehicles 6-3.5-11-5Registration of vehicles 6-3.5-11-6Rescission of wheel tax and vehicle excise tax 6-3.5-11-7Increase or decrease of tax; rates 6-3.5-11-8Adopted ordinance; letter approving transportation asset management plan; transmittal of copies 6-3.5-11-9Credit upon sale of vehicle 6-3.5-11-10Registration of vehicle; wheel tax; amount; collection 6-3.5-11-11Apportioned wheel tax for certain vehicles 6-3.5-11-12Collections; remittance; report 6-3.5-11-13Collection by bureau of motor vehicles or department of state revenue; remittance; report 6-3.5-11-14Wheel tax fund; use 6-3.5-11-15Estimate of revenues 6-3.5-11-16Violations; offense

IC 6-3.5-11-0.5Ordinance amendments; application; liability Sec. 0.5. (a) This section applies to an ordinance adopted under this chapter and in effect on January 1, 2020.

(b) An adopting municipality is not required to amend an ordinance subject to this section as a result of amendments to this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax.

(c) The bureau of motor vehicles shall apply an ordinance subject to this section as if the ordinance is in compliance with this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax.

(d) The bureau of motor vehicles is not liable to an adopting municipality or any taxpayer for actions taken under this section.

As added by P.L.178-2019, SEC.19.

IC 6-3.5-11-1Definitions Sec. 1. The following definitions apply throughout this chapter:

(1) "Adopting municipality" means an eligible municipality that has adopted the wheel tax.

(2) "Branch office" means a branch office of the bureau of motor vehicles.

(3) "Bus" has the meaning set forth in IC 9-13-2-17.

(4) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b).

(5) "Department" refers to the department of state revenue.

(6) "Eligible municipality" means a municipality having a population of at least five thousand (5,000).

(7) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b).

(8) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155.

(9) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150.

(10) "School bus" has the meaning set forth in IC 9-13-2-161(a).

(11) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).

(12) "State agency" has the meaning set forth in IC 34-6-2.1-194.

(13) "Tractor" has the meaning set forth in IC 9-13-2-180.

(14) "Trailer" has the meaning set forth in IC 9-13-2-184(a).

(15) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets.

(16) "Truck" has the meaning set forth in IC 9-13-2-188(a).

(17) "Wheel tax" means the tax imposed under this chapter.

As added by P.L.146-2016, SEC.12. Amended by P.L.257-2017, SEC.7; P.L.218-2017, SEC.29; P.L.256-2017, SEC.15; P.L.86-2018, SEC.75; P.L.186-2025, SEC.69.

IC 6-3.5-11-2Imposition of tax; municipal wheel tax; rate; unpaid tax Sec. 2. (a) The fiscal body of an eligible municipality may, subject to subsections (b) and (c), adopt an ordinance to impose a municipal wheel tax in accordance with this chapter on each vehicle that:

(1) is included in one (1) of the classes of vehicles listed in section 3 of this chapter;

(2) is not exempt from the wheel tax under section 4 of this chapter; and

(3) is registered in the eligible municipality.

(b) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-10 to impose the municipal vehicle excise tax.

(c) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the eligible municipality uses a transportation asset management plan approved by the Indiana department of transportation.

(d) The fiscal body of an eligible municipality may impose the wheel tax at a different rate for each of the classes of vehicles listed in section 3 of this chapter. In addition, the fiscal body may establish different rates within the classes of buses, recreational vehicles, semitrailers, trailers, tractors, and trucks based on weight classifications of those vehicles that are established by the bureau of motor vehicles for use throughout Indiana. However, the wheel tax rate for a particular class or weight classification of vehicles may not be less than five dollars ($5) and may not exceed forty dollars ($40). The fiscal body shall state the initial wheel tax rates in the ordinance that imposes the tax.

(e) Subject to subsection (f), a wheel tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered.

(f) If the municipal wheel tax imposed by this chapter was not paid for one (1) or more preceding registration years, the bureau may collect only the municipal wheel tax imposed by this chapter for the:

(1) registration year immediately preceding the current registration year;

(2) current registration year; and

(3) registration year immediately following the current registration year.

As added by P.L.146-2016, SEC.12. Amended by P.L.256-2017, SEC.16; P.L.178-2019, SEC.20.

IC 6-3.5-11-3Vehicles subject to tax Sec. 3. The wheel tax applies to the following classes of vehicles:

(1) Buses.

(2) Recreational vehicles.

(3) Semitrailers.

(4) Trailers with a declared gross weight of more than nine thousand (9,000) pounds.

(5) Trucks and tractors with a declared gross weight of more than eleven thousand (11,000) pounds.

As added by P.L.146-2016, SEC.12. Amended by P.L.178-2019, SEC.21.

IC 6-3.5-11-4Exempt vehicles Sec. 4. A vehicle is exempt from the wheel tax imposed under this chapter if the vehicle is:

(1) owned by the state;

(2) owned by a state agency of the state;

(3) owned by a political subdivision of the state;

(4) subject to the municipal vehicle excise tax imposed under IC 6-3.5-10;

(5) a bus owned and operated by a religious or nonprofit youth organization and used to transport persons to religious services or for the benefit of its members;

(6) a school bus; or

(7) a motor vehicle that is funeral equipment and that is used in the operation of funeral services (as defined in IC 25-15-2-17).

As added by P.L.146-2016, SEC.12. Amended by P.L.257-2017, SEC.8; P.L.256-2017, SEC.17; P.L.86-2018, SEC.76.

IC 6-3.5-11-5Registration of vehicles Sec. 5. If the fiscal body of an eligible municipality adopts an ordinance imposing the wheel tax after December 31 but on or before September 1 of the following year, a vehicle described in section 2(a) of this chapter is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year in which the ordinance is adopted. If a fiscal body adopts an ordinance imposing the wheel tax after September 1 but before the following January 1, a vehicle described in section 2(a) of this chapter is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the tax is effective, the tax does not apply to the registration of a motor vehicle for the registration year that commenced in the calendar year preceding the year the tax is first effective.

As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.30.

IC 6-3.5-11-6Rescission of wheel tax and vehicle excise tax Sec. 6. (a) After January 1 but on or before September 1 of any year, the fiscal body of an adopting municipality may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the wheel tax. If a fiscal body adopts an ordinance to rescind the wheel tax, the wheel tax does not apply to a vehicle registered after December 31 of the year the ordinance is adopted.

(b) The fiscal body of an adopting municipality may not adopt an ordinance to rescind the wheel tax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-10 to rescind the annual license excise surtax.

As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.31.

IC 6-3.5-11-7Increase or decrease of tax; rates Sec. 7. The fiscal body of an adopting municipality may adopt an ordinance to increase or decrease the wheel tax rates. The new wheel tax rates must be within the range of rates prescribed by section 2 of this chapter. New rates that are established by an ordinance that is adopted after December 31 but on or before September 1 of the following year apply to vehicles registered after December 31 of the year in which the ordinance to change the rates is adopted. New rates that are established by an ordinance that is adopted after September 1 but before January 1 of the following year apply to motor vehicles registered after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the wheel tax rates are effective, the wheel tax rates do not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the wheel tax rates are first effective.

As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.32; P.L.111-2021, SEC.7.

IC 6-3.5-11-8Adopted ordinance; letter approving transportation asset management plan; transmittal of copies Sec. 8. (a) If the fiscal body of an eligible municipality adopts an ordinance to impose, rescind, or change the rates of the wheel tax, the fiscal body shall send a copy of the ordinance and a copy of a letter from the department of transportation approving the eligible municipality's transportation asset management plan to:

(1) the bureau of motor vehicles; and

(2) the department of state revenue;

on or before September 1 to be effective January 1 of the following calendar year.

(b) For copies required to be sent to the bureau of motor vehicles under subsection (a), the fiscal body shall submit all copies in a manner prescribed by the bureau of motor vehicles.

As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.33; P.L.178-2019, SEC.22.

IC 6-3.5-11-9Credit upon sale of vehicle Sec. 9. (a) Every owner of a vehicle for which the wheel tax has been paid for the owner's registration year is entitled to a credit if during that registration year the owner sells the vehicle. The amount of the credit equals the wheel tax paid by the owner for the vehicle that was sold. The credit may be applied by the owner only against the wheel tax owed for a vehicle that is purchased during the same registration year.

(b) An owner of a vehicle is not entitled to a refund of any part of a credit that is not used under this section.

As added by P.L.146-2016, SEC.12.

IC 6-3.5-11-10Registration of vehicle; wheel tax; amount; collection Sec. 10. A person may not register a vehicle in an adopting municipality unless the person pays the wheel tax due, if any, to the bureau of motor vehicles. The amount of the wheel tax due is based on the wheel tax rate, for that class of vehicle, in effect at the time of registration. The bureau of motor vehicles shall collect the wheel tax due, if any, at the time a motor vehicle is registered. The following, as applicable, may impose a service charge of fifteen cents ($0.15) for each wheel tax collection made under this chapter:

(1) The department.

(2) The bureau under IC 9-14-8-3.

As added by P.L.146-2016, SEC.12. Amended by P.L.256-2017, SEC.18.

IC 6-3.5-11-11Apportioned wheel tax for certain vehicles Sec. 11. (a) An owner of one (1) or more commercial vehicles paying an apportioned registration to the state under the International Registration Plan that is required to pay a wheel tax shall pay an apportioned wheel tax calculated by dividing in-state actual miles by total fleet miles generated during the preceding year. If in-state miles are estimated for purposes of proportional registration, these miles are divided by total actual and estimated fleet miles. The apportioned wheel tax under this section shall be paid at the same time and in the same manner as the commercial vehicle excise tax under IC 6-6-5.5.

(b) A voucher from the department showing payment of the wheel tax may be accepted by the bureau of motor vehicles instead of the payment required under section 10 of this chapter.

As added by P.L.146-2016, SEC.12.

IC 6-3.5-11-12Collections; remittance; report Sec. 12. Not more than twenty-one (21) days after collecting the wheel tax, the bureau of motor vehicles shall remit the wheel tax to the fiscal officer of the adopting municipality that imposed the wheel tax. Concurrently with the remittance, the bureau shall file a wheel tax collections report prepared on forms prescribed by the state board of accounts with the fiscal officer of the adopting municipality.

As added by P.L.146-2016, SEC.12. Amended by P.L.111-2021, SEC.8.

IC 6-3.5-11-13Collection by bureau of motor vehicles or department of state revenue; remittance; report Sec. 13. (a) If the wheel tax is collected directly by the bureau of motor vehicles instead of at a branch office, the commissioner of the bureau shall:

(1) remit the wheel tax to, and file a wheel tax collections report with, the fiscal officer of the appropriate municipality; and

(2) file a wheel tax collections report with the fiscal officer of the appropriate municipality;

in the same manner and at the same time that a branch office manager is required to remit and report under section 12 of this chapter.

(b) If the wheel tax for a commercial vehicle is collected directly by the department, the commissioner of the department shall:

(1) remit the wheel tax to, and file a wheel tax collections report with, the fiscal officer of the appropriate municipality; and

(2) file a wheel tax collections report with the fiscal officer of the appropriate municipality;

in the same manner and at the same time that a branch office manager is required to remit and report under section 12 of this chapter.

As added by P.L.146-2016, SEC.12.

IC 6-3.5-11-14Wheel tax fund; use Sec. 14. (a) The fiscal officer of an adopting municipality shall deposit the wheel tax revenues in a fund to be known as the "municipal wheel tax fund".

(b) An adopting municipality may use the wheel tax revenues that the municipality receives under this section only:

(1) to construct, reconstruct, repair, or maintain streets and roads under its jurisdiction;

(2) as a contribution to an authority established under IC 36-7-23; or

(3) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30.

As added by P.L.146-2016, SEC.12.

IC 6-3.5-11-15Estimate of revenues Sec. 15. On or before October 1 of each year, the fiscal officer of an adopting municipality shall provide the fiscal body of the adopting municipality with an estimate of the wheel tax revenues to be received by the adopting municipality during the next calendar year. The adopting municipality shall include the estimated wheel tax revenues in the adopting municipality's budget estimate for the calendar year.

As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.34.

IC 6-3.5-11-16Violations; offense Sec. 16. (a) The owner of a vehicle who knowingly registers the vehicle without paying the wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

(b) An employee of the bureau of motor vehicles who recklessly issues a registration on any vehicle without collecting the wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor.

As added by P.L.146-2016, SEC.12.

IC 6-3.6ARTICLE 3.6. LOCAL INCOME TAXES

Ch. 1.Purpose; Application; Transitional Provisions Ch. 2.Definitions Ch. 3.Adopting Body; Adoption Procedures; Effective Date of Ordinances Ch. 4.Imposition of Tax Ch. 5.Property Tax Relief Rates Ch. 6.Expenditure Rate Ch. 7.Special Purpose Rates Ch. 8.Administration of Tax Ch. 9.Distribution of Revenue Ch. 10.Permitted Expenditures Ch. 11.Supplemental Allocation and Distribution Requirements

IC 6-3.6-1Chapter 1. Purpose; Application; Transitional Provisions

6-3.6-1-1Purpose; effective date of article; procedures for transition 6-3.6-1-1Purpose; effective date of article; procedures for transition 6-3.6-1-1.1Repealed 6-3.6-1-1.5Transition of certain homestead credits to the property tax relief rate 6-3.6-1-1.5Transition of certain homestead credits to the property tax relief rate 6-3.6-1-2Applicability of article 6-3.6-1-3Continuation of former tax rates 6-3.6-1-3Continuation of former tax rates 6-3.6-1-4Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue 6-3.6-1-4Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue 6-3.6-1-5References to repealed and replaced statutes 6-3.6-1-6Continuation of rights; duties; obligations; proceedings; liabilities; bonds and leases 6-3.6-1-7Continuation of time periods; time limits; former tax 6-3.6-1-8Continuation of time periods; time limits; bonds or leases payable from tax 6-3.6-1-9Certification to each county of tax rates by tax category 6-3.6-1-10Transition assistance; department of local government finance

IC 6-3.6-1-1Purpose; effective date of article; procedures for transition Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1. (a) The purpose of this article is to consolidate and simplify the various local income tax laws (referred to as a "former tax" in this article) that are in effect on May 1, 2016, into a uniform law that transitions each county from the former taxes to the tax governed by this article.

(b) Notwithstanding the effective date of the repeal of the former tax laws on January 1, 2017, an adopting body may not adopt any ordinances under a former tax after June 30, 2016. In addition, notwithstanding the effective date of this article being July 1, 2015, an adopting body may not take any action under this article before July 1, 2016.

(c) To carry out the transition, the office of management and budget, along with the appropriate state agencies and in cooperation with each county, shall do the following:

(1) Document all terms, conditions, limitations, and obligations that exist under the former taxes.

(2) Categorize the tax rate under the former taxes into the appropriate tax rate or rates under this article to provide revenue for all the same purposes for which revenue under a former tax was used in 2016, except to the extent required under this article and to the extent that an adopting body takes action under this article after June 30, 2016, to change the purposes and allocation of the revenue as permitted under this article. Matching the purposes of a former tax to the purposes under this article, including the apportionment, allocation, and distribution of revenue under this article shall be accomplished by using the best information available. These purposes include, but are not limited to, one (1) or more of the following:

(A) Property tax credits using the options set forth in IC 6-3.6-5. This categorization is limited to former tax rates that were dedicated to providing credits against property taxes under IC 6-3.5-1.1-26 (repealed), IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed).

(B) School corporation distributions and additional revenue. All former tax rates not used for a specified project or categorized under clause (A) shall be categorized under IC 6-3.6-6 using the former tax rates or dollar amounts that were dedicated for school corporation distributions, public safety, economic development, and certified shares.

(C) A special purpose project (IC 6-3.6-7) using the former tax rate that was dedicated to the project.

(d) The transition under this article shall be completed by August 1, 2016, for purposes of local government budgets for 2017 and for purposes of the distribution and allocation of revenue under this article after December 31, 2016.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.39; P.L.130-2018, SEC.28.

IC 6-3.6-1-1Purpose; effective date of article; procedures for transition Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1. (a) The purpose of this article is to consolidate and simplify the various local income tax laws (referred to as a "former tax" in this article) that are in effect on May 1, 2016, into a uniform law that transitions each county from the former taxes to the tax governed by this article.

(b) Notwithstanding the effective date of the repeal of the former tax laws on January 1, 2017, an adopting body may not adopt any ordinances under a former tax after June 30, 2016. In addition, notwithstanding the effective date of this article being July 1, 2015, an adopting body may not take any action under this article before July 1, 2016.

(c) To carry out the transition, the office of management and budget, along with the appropriate state agencies and in cooperation with each county, shall do the following:

(1) Document all terms, conditions, limitations, and obligations that exist under the former taxes.

(2) Categorize the tax rate under the former taxes into the appropriate tax rate or rates under this article to provide revenue for all the same purposes for which revenue under a former tax was used in 2016, except to the extent required under this article and to the extent that an adopting body takes action under this article after June 30, 2016, to change the purposes and allocation of the revenue as permitted under this article. Matching the purposes of a former tax to the purposes under this article, including the apportionment, allocation, and distribution of revenue under this article shall be accomplished by using the best information available. These purposes include, but are not limited to, one (1) or more of the following:

(A) Property tax credits using the options set forth in IC 6-3.6-5 (before its expiration). This categorization is limited to former tax rates that were dedicated to providing credits against property taxes under IC 6-3.5-1.1-26 (repealed), IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed).

(B) School corporation distributions and additional revenue. All former tax rates not used for a specified project or categorized under clause (A) shall be categorized under IC 6-3.6-6 using the former tax rates or dollar amounts that were dedicated for school corporation distributions, public safety, economic development, and certified shares.

(C) A special purpose project (IC 6-3.6-7) using the former tax rate that was dedicated to the project.

(d) The transition under this article shall be completed by August 1, 2016, for purposes of local government budgets for 2017 and for purposes of the distribution and allocation of revenue under this article after December 31, 2016.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.39; P.L.130-2018, SEC.28; P.L.68-2025, SEC.91.

IC 6-3.6-1-1.1RepealedAs added by P.L.197-2016, SEC.40. Repealed by P.L.130-2018, SEC.29.

IC 6-3.6-1-1.5Transition of certain homestead credits to the property tax relief rate Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1.5. (a) In counties that adopted a homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the transition from the former taxes to the taxes governed under this article shall include the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate under IC 6-3.6-5.

(b) To accomplish the transition under this section, the department of local government finance shall determine the portion of the income tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is attributable to the homestead credit approved under IC 6-3.5-6-13 (before its repeal January 1, 2017) and shall allocate that portion of the income tax rate that is attributable to the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax relief rate under IC 6-3.6-5.

(c) The department of local government finance shall notify each affected county of the rate that will be allocated to the property tax relief rate not later than July 1, 2016. In addition, the department of local government finance shall notify the state budget agency of the transition under this section.

(d) The approval of the local income tax council is not required for the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate as set forth in this section.

As added by P.L.197-2016, SEC.41.

IC 6-3.6-1-1.5Transition of certain homestead credits to the property tax relief rate Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1.5. (a) In counties that adopted a homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the transition from the former taxes to the taxes governed under this article shall include the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate under IC 6-3.6-5 (before its expiration).

(b) To accomplish the transition under this section, the department of local government finance shall determine the portion of the income tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is attributable to the homestead credit approved under IC 6-3.5-6-13 (before its repeal January 1, 2017) and shall allocate that portion of the income tax rate that is attributable to the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax relief rate under IC 6-3.6-5 (before its expiration).

(c) The department of local government finance shall notify each affected county of the rate that will be allocated to the property tax relief rate not later than July 1, 2016. In addition, the department of local government finance shall notify the state budget agency of the transition under this section.

(d) This section expires July 1, 2029.

As added by P.L.197-2016, SEC.41. Amended by P.L.68-2025, SEC.92; P.L.157-2026, SEC.105.

IC 6-3.6-1-2Applicability of article Sec. 2. This article applies to:

(1) taxes and tax liability in effect after December 31, 2016;

(2) homestead and property tax credits against property tax liability imposed for an assessment date after December 31, 2015; and

(3) subject to subdivisions (1) and (2), administration of taxes described in section 3 of this chapter, after December 31, 2016.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-3Continuation of former tax rates Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 3. Except to the extent that taxes imposed in a county under or determined under:

(1) IC 6-3.5-1.1 (repealed);

(2) IC 6-3.5-1.5 (repealed);

(3) IC 6-3.5-6 (repealed); or

(4) IC 6-3.5-7 (repealed);

are increased, decreased, or rescinded under this article, the total tax rate in effect in a county under the provisions described in subdivisions (1) through (4) on May 1, 2016, continue in effect after May 1, 2016, and shall be treated as taxes imposed under this article.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.42.

IC 6-3.6-1-3Continuation of former tax rates Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 3. (a) Except to the extent that taxes imposed in a county under or determined under:

(1) IC 6-3.5-1.1 (repealed);

(2) IC 6-3.5-1.5 (repealed);

(3) IC 6-3.5-6 (repealed); or

(4) IC 6-3.5-7 (repealed);

are increased, decreased, or rescinded under this article, the total tax rate in effect in a county under the provisions described in subdivisions (1) through (4) on May 1, 2016, continue in effect after May 1, 2016, and shall be treated as taxes imposed under this article.

(b) Notwithstanding subsection (a) or any other provision of this article, a property tax relief rate imposed in a county under IC 6-3.6-5 (before its expiration) expires December 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.42; P.L.68-2025, SEC.93; P.L.157-2026, SEC.106.

IC 6-3.6-1-4Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4. Notwithstanding:

(1) IC 6-3.5-1.1 (repealed);

(2) IC 6-3.5-1.5 (repealed);

(3) IC 6-3.5-6 (repealed); or

(4) IC 6-3.5-7 (repealed);

a change in a tax imposed under a provision described in subdivisions (1) through (4), credits related to property taxes, allocations of tax revenue, and pledges for payment from tax revenue after December 31, 2016, must be made under this article and not under the provisions described in subdivisions (1) through (4).

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.43.

IC 6-3.6-1-4Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4. Notwithstanding:

(1) IC 6-3.5-1.1 (repealed);

(2) IC 6-3.5-1.5 (repealed);

(3) IC 6-3.5-6 (repealed); or

(4) IC 6-3.5-7 (repealed);

a change in a tax imposed under a provision described in subdivisions (1) through (4), credits related to property taxes provided under IC 6-3.6-5 (before its expiration), allocations of tax revenue, and pledges for payment from tax revenue after December 31, 2016, must be made under this article and not under the provisions described in subdivisions (1) through (4).

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.43; P.L.68-2025, SEC.94.

IC 6-3.6-1-5References to repealed and replaced statutes Sec. 5. A reference in a statute or rule to a statute that is repealed and replaced in the same or a different form in this article shall be treated after December 31, 2016, as a reference to the new provision.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-6Continuation of rights; duties; obligations; proceedings; liabilities; bonds and leases Sec. 6. A pledge of a tax described in section 3 of this chapter for the payment of bonds, leases, or other expenditures shall be treated as a pledge of the related tax under this article for the same purpose. Notwithstanding the repeal of IC 6-3.5-1.1, IC 6-3.5-1.5, IC 6-3.5-6, and IC 6-3.5-7 and the enactment of this article, any pledge of revenues received from a tax imposed under any of the provisions of IC 6-3.5-1.1, IC 6-3.5-1.5, IC 6-3.5-6, and IC 6-3.5-7 (prior to their repeal) to the payment, in whole or in part, of:

(1) the principal of and interest on bonds;

(2) lease rentals due under a lease; and

(3) the payment of any other obligation;

is binding and enforceable and remains in full force and effect as long as the principal of and interest on any bonds, the lease rentals due under any lease, or the payment of any obligation remains unpaid. The enactment of this article does not affect any rights, duties, obligations, proceedings, or liabilities accrued before January 1, 2017. Those rights, duties, obligations, proceedings, or liabilities continue and shall be imposed and enforced under prior law as if this article had not been enacted and the prior law had not been repealed.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-7Continuation of time periods; time limits; former tax Sec. 7. A period that began with respect to a tax described in section 3 of this chapter and limits the period in which the tax may be imposed continues under this article from the starting date and time of the original action under the laws described in section 3 of this chapter and limits the period in which the related tax under this article may be imposed as if the period were initiated under this article.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-8Continuation of time periods; time limits; bonds or leases payable from tax Sec. 8. A period that began with respect to the issuance of bonds or leases payable from a tax described in section 3 of this chapter and limits the period in which the bonds or leases may be in effect continues under this article from the starting date and time of the original action under the laws described in section 3 of this chapter and limits the period in which the bonds or leases may be in effect as if the period were initiated under this article.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-9Certification to each county of tax rates by tax category Sec. 9. Before August 2, 2016, the budget agency, with the assistance of the department of local government finance, shall certify to each county the income tax rates under this article, by tax rate category, as categorized by the office of management and budget under this chapter.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-1-10Transition assistance; department of local government finance Sec. 10. The department of local government finance shall assist adopting bodies and other local governmental entities as necessary to provide for a transition to the administration of taxes under this article.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2Chapter 2. Definitions

6-3.6-2-1Applicability 6-3.6-2-2"Adjusted gross income" 6-3.6-2-2"Adjusted gross income" 6-3.6-2-3"Allocation amount" 6-3.6-2-4"Attributed allocation amount" 6-3.6-2-4Repealed 6-3.6-2-5"Certified distribution" 6-3.6-2-5"Certified distribution" 6-3.6-2-6"Certified shares" 6-3.6-2-7"Civil taxing unit" 6-3.6-2-7.4"County with a single voting bloc" 6-3.6-2-8"Economic development project" 6-3.6-2-9"Executive" 6-3.6-2-10"Fiscal body" 6-3.6-2-11"Impose" 6-3.6-2-12"Local income tax council" 6-3.6-2-12Repealed 6-3.6-2-13"Local taxpayer" 6-3.6-2-13"Local taxpayer" 6-3.6-2-13.5"PSAP" 6-3.6-2-14"Public safety" 6-3.6-2-14.5"Regional jail" 6-3.6-2-15"Resident local taxpayer" 6-3.6-2-15"Resident local taxpayer" 6-3.6-2-16"School corporation" 6-3.6-2-16.5"State GIS officer" 6-3.6-2-17"Tax" 6-3.6-2-18"Welfare allocation amount"

IC 6-3.6-2-1Applicability Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-2"Adjusted gross income" Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 2. "Adjusted gross income" has the meaning set forth in IC 6-3-1-3.5. However:

(1) except as provided in subdivision (3), in the case of a local taxpayer who is not treated as a resident local taxpayer of a county, the term includes only adjusted gross income derived from the taxpayer's principal place of business or employment;

(2) in the case of a resident local taxpayer of Perry County, the term does not include adjusted gross income described in IC 6-3.6-8-7; and

(3) in the case of a local taxpayer described in section 13(3) of this chapter, the term includes only that part of the individual's total income that:

(A) is apportioned to Indiana under IC 6-3-2-2.7 or IC 6-3-2-3.2; and

(B) is paid to the individual as compensation for services rendered in the county as a team member or race team member.

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2017, SEC.14.

IC 6-3.6-2-2"Adjusted gross income" Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 2. "Adjusted gross income" has the meaning set forth in IC 6-3-1-3.5. However:

(1) in the case of a resident local taxpayer of Perry County, or a resident of a municipality located in Perry County in the case of a local income tax imposed under IC 6-3.6-6-22, the term does not include adjusted gross income described in IC 6-3.6-8-7; and

(2) in the case of a local taxpayer described in section 13(3) of this chapter, the term includes only that part of the individual's total income that:

(A) is apportioned to Indiana under IC 6-3-2-2.7 or IC 6-3-2-3.2; and

(B) is paid to the individual as compensation for services rendered in the county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22) as a team member or race team member.

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2017, SEC.14; P.L.68-2025, SEC.95; P.L.157-2026, SEC.107.

IC 6-3.6-2-3"Allocation amount" Sec. 3. "Allocation amount" refers to an amount that qualifies as an allocation amount under IC 6-3.6-6.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-4"Attributed allocation amount" Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 4. "Attributed allocation amount" equals the sum of the following:

(1) The allocation amount of the civil taxing unit for that calendar year.

(2) In the case of a county taxing unit, the welfare allocation amount.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.6.

IC 6-3.6-2-4Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.6. Repealed by P.L.68-2025, SEC.96.

IC 6-3.6-2-5"Certified distribution" Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 5. "Certified distribution" refers to the amount certified under IC 6-3.6-9-5(b), as adjusted under IC 6-3.6-9.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-5"Certified distribution" Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 5. "Certified distribution" refers to the amount certified under IC 6-3.6-9-5(a), as adjusted under IC 6-3.6-9.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.97.

IC 6-3.6-2-6"Certified shares" Sec. 6. "Certified shares" refers to the amount allocated for distribution as certified shares under IC 6-3.6-6.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-7"Civil taxing unit" Sec. 7. "Civil taxing unit" means any entity having the power to impose ad valorem property taxes except a school corporation. The term does not include a solid waste management district that is not entitled to a distribution under IC 6-3.6-6. However, in the case of a consolidated city, the term "civil taxing unit" includes the consolidated city and all special taxing districts, all special service districts, and all entities whose budgets and property tax levies are subject to review under IC 36-3-6-9.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-7.4"County with a single voting bloc" Sec. 7.4. "County with a single voting bloc" means a county that has a local income tax council in which one (1) city that is a member of the local income tax council or one (1) town that is a member of the local income tax council is allocated more than fifty percent (50%) of the total one hundred (100) votes allocated under IC 6-3.6-3-6(d). This section expires May 31, 2028.

As added by P.L.154-2020, SEC.28. Amended by P.L.159-2021, SEC.20; P.L.137-2024, SEC.1; P.L.68-2025, SEC.98; P.L.223-2025, SEC.4; P.L.157-2026, SEC.108.

IC 6-3.6-2-8"Economic development project" Sec. 8. "Economic development project" means any project that:

(1) the county, city, or town determines will:

(A) promote significant opportunities for the gainful employment of its citizens;

(B) attract a major new business enterprise to the county, city, or town; or

(C) retain or expand a significant business enterprise within the county, city, or town; and

(2) involves an expenditure for:

(A) the acquisition of land;

(B) interests in land;

(C) site improvements;

(D) infrastructure improvements;

(E) buildings;

(F) structures;

(G) rehabilitation, renovation, and enlargement of buildings and structures;

(H) machinery;

(I) equipment;

(J) furnishings;

(K) facilities;

(L) administrative expenses associated with a project described in this section, including contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects;

(M) operating expenses of a governmental entity that plans or implements economic development projects; or

(N) substance removal or remedial action in a designated county, city, or town;

or any combination of these.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-9"Executive" Sec. 9. "Executive" has the meaning set forth in IC 36-1-2-5.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-10"Fiscal body" Sec. 10. "Fiscal body" has the meaning set forth in IC 36-1-2-6.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-11"Impose" Sec. 11. "Impose" includes adopt, amend, increase, decrease, and rescind.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-12"Local income tax council" Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 12. "Local income tax council" means a council established by IC 6-3.6-3-1.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-12Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.99.

IC 6-3.6-2-13"Local taxpayer" Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 13. "Local taxpayer", as it relates to a particular county, means any of the following:

(1) An individual who resides in that county on the date specified in IC 6-3.6-8-3.

(2) An individual who maintains the taxpayer's principal place of business or employment in that county on the date specified in IC 6-3.6-8-3 and who does not reside on that same date in another county in Indiana in which a tax under this article is in effect.

(3) An individual who:

(A) has income apportioned to Indiana as:

(i) a team member under IC 6-3-2-2.7; or

(ii) a race team member under IC 6-3-2-3.2;

for services rendered in the county; and

(B) is not described in subdivision (1) or (2).

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2017, SEC.15.

IC 6-3.6-2-13"Local taxpayer" Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 13. "Local taxpayer" means any of the following:

(1) As it relates to a particular county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22), an individual who resides in that county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22) on the date specified in IC 6-3.6-8-3.

(2) As it relates to a particular county, and except for an individual described in subdivision (3), an individual who maintains the taxpayer's principal place of business or employment in that county on the date specified in IC 6-3.6-8-3 and who does not reside on that same date in another county in Indiana in which a tax under this article is in effect. However, for purposes of a local income tax imposed by a county under IC 6-3.6-6-2(b)(4) or imposed by a municipality under IC 6-3.6-6-22, the term does not include an individual described in this subdivision.

(3) As it relates to a particular county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22), the term includes an individual who:

(A) has income apportioned to Indiana as:

(i) a team member under IC 6-3-2-2.7; or

(ii) a race team member under IC 6-3-2-3.2;

for services rendered in the county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22); and

(B) is not described in subdivision (1).

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2017, SEC.15; P.L.68-2025, SEC.100; P.L.157-2026, SEC.109.

IC 6-3.6-2-13.5"PSAP" Sec. 13.5. "PSAP" means a PSAP (as defined in IC 36-8-16.7-20) that is part of the statewide 911 system (as defined in IC 36-8-16.7-22).

As added by P.L.180-2016, SEC.14.

IC 6-3.6-2-14"Public safety" Sec. 14. "Public safety" refers to the following:

(1) A police and law enforcement system to preserve public peace and order.

(2) A firefighting and fire prevention system.

(3) Emergency ambulance services (as defined in IC 16-18-2-107).

(4) Emergency medical services (as defined in IC 16-18-2-110).

(5) Emergency action (as defined in IC 13-11-2-65).

(6) A probation department of a court.

(7) Confinement, supervision, services under a community corrections program (as defined in IC 35-38-2.6-2), or other correctional services for a person who has been:

(A) diverted before a final hearing or trial under an agreement that is between the prosecuting attorney of the appropriate judicial circuit and the person or the person's custodian, guardian, or parent and that provides for confinement, supervision, community corrections services, or other correctional services instead of a final action described in clause (B) or (C);

(B) convicted of a crime; or

(C) adjudicated as a delinquent child or a child in need of services.

(8) A juvenile detention facility under IC 31-31-8.

(9) A juvenile detention center under IC 31-31-9.

(10) A county jail.

(11) A communications system (as defined in IC 36-8-15-3), an enhanced emergency telephone system (as defined in IC 36-8-16-2, before its repeal on July 1, 2012), a PSAP (as defined in IC 36-8-16.7-20) that is part of the statewide 911 system (as defined in IC 36-8-16.7-22) and located within the county, or the statewide 911 system (as defined in IC 36-8-16.7-22).

(12) Medical and health expenses for jailed inmates and other confined persons.

(13) Pension payments for any of the following:

(A) A member of a fire department (as defined in IC 36-8-1-8) or any other employee of the fire department.

(B) A member of a police department (as defined in IC 36-8-1-9), a police chief hired under a waiver under IC 36-8-4-6.5, or any other employee hired by the police department.

(C) A county sheriff or any other member of the office of the county sheriff.

(D) Other personnel employed to provide a service described in this section.

(14) Law enforcement training.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.44; P.L.247-2017, SEC.7; P.L.148-2024, SEC.5.

IC 6-3.6-2-14.5"Regional jail" Sec. 14.5. "Regional jail" has the meaning set forth in IC 11-12-5.5-1.

As added by P.L.239-2019, SEC.5.

IC 6-3.6-2-15"Resident local taxpayer" Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 15. "Resident local taxpayer", as it relates to a particular county, means any local taxpayer who resides in that county on the date specified in IC 6-3.6-8-3.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-15"Resident local taxpayer" Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 15. "Resident local taxpayer", as it relates to a particular county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22), means any local taxpayer who resides in that county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22) on the date specified in IC 6-3.6-8-3. For purposes of a local income tax rate imposed by a county under IC 6-3.6-6-2(b)(4), the term means an individual who resides in the part of the county for which the county may impose a rate under IC 6-3.6-6-2(b)(4) on the date specified in IC 6-3.6-8-3.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.101; P.L.157-2026, SEC.110.

IC 6-3.6-2-16"School corporation" Sec. 16. "School corporation" has the meaning set forth in IC 6-1.1-1-16.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-16.5"State GIS officer" Sec. 16.5. "State GIS officer" has the meaning set forth in IC 4-23-7.3-10.

As added by P.L.157-2026, SEC.111.

IC 6-3.6-2-17"Tax" Sec. 17. "Tax" refers to the following:

(1) A tax imposed under this article.

(2) A tax that was originally imposed under:

(A) IC 6-3.5-1 (repealed);

(B) IC 6-3.5-1.1 (repealed);

(C) IC 6-3.5-6 (repealed); or

(D) IC 6-3.5-7 (repealed);

and that is continued in effect under this article by IC 6-3.6-1-3.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-2-18"Welfare allocation amount" Sec. 18. "Welfare allocation amount" means an amount equal to the sum of the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and, if the county received a certified distribution under a former tax in 2008, the property taxes imposed by the county in 2008 for the county's county medical assistance to wards fund, family and children's fund, children's psychiatric residential treatment services fund, county hospital care for the indigent fund, and children with special health care needs county fund, plus, in the case of Marion County, thirty-five million dollars ($35,000,000).

As added by P.L.243-2015, SEC.10.

IC 6-3.6-3Chapter 3. Adopting Body; Adoption Procedures; Effective Date of Ordinances

6-3.6-3-1Adopting body; local income tax council; county fiscal body 6-3.6-3-1Adopting body; county fiscal body 6-3.6-3-2Actions by ordinance or resolution; uniform documents; hearing requirements and procedures; certification 6-3.6-3-2.5Annual submission of a county's, city's, or town's debt service obligations payable from local income tax revenue 6-3.6-3-3Effective date of ordinance 6-3.6-3-3Effective date of ordinance 6-3.6-3-3.3Effective date of ordinance; municipal local income tax 6-3.6-3-4Tax rate remains in effect until effective date of ordinance; expiration date 6-3.6-3-4Tax rate expiration date; continuation of tax rate by ordinance after December 31, 2028 6-3.6-3-5Voting on ordinances; votes recorded and certified by auditor of the county; county with a single voting bloc 6-3.6-3-5Voting on ordinances; votes recorded and certified by auditor of the county 6-3.6-3-6Local income tax council; allocation of votes; county with a single voting bloc 6-3.6-3-6Repealed 6-3.6-3-7Local income tax council; procedures for proposal of an ordinance; notice and public hearing; notice to affected local taxing units 6-3.6-3-7Repealed 6-3.6-3-7.5County council hearing requirements for ordinances; notice to affected local taxing units 6-3.6-3-8Local income tax council; resolution to propose an ordinance; distribution of copy of ordinance; vote; county with a single voting bloc 6-3.6-3-8Repealed 6-3.6-3-9Local income tax council; voting by resolution 6-3.6-3-9Repealed 6-3.6-3-9.5Local income tax council that is a county with a single voting bloc proposing to increase tax rate; vote; resolution 6-3.6-3-10Local income tax council; may not adopt more than one ordinance in a year 6-3.6-3-10Repealed 6-3.6-3-11Expired 6-3.6-3-12Ordinance containing tax rate that exceeds a maximum allowable tax rate 6-3.6-3-13Municipal unit strategic taskforce; local income tax distribution agreement

IC 6-3.6-3-1Adopting body; local income tax council; county fiscal body Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1. (a) The following is the adopting body for a county:

(1) The local income tax council in a county in which the county income tax council adopted either:

(A) a county option income tax under IC 6-3.5-6 (repealed) that was in effect on January 1, 2015; or

(B) a county economic development income tax for the county under IC 6-3.5-7 (repealed) that was in effect on January 1, 2015.

(2) The county fiscal body in any other county.

(3) The county fiscal body for purposes of adopting a rate dedicated to paying for a PSAP in the county as permitted by IC 6-3.6-6-2.5.

(4) The county fiscal body for purposes of adopting a rate dedicated to paying for acute care hospitals in the county as permitted by IC 6-3.6-6-2.6.

(5) The county fiscal body for purposes of adopting a rate dedicated to paying for correctional facilities and rehabilitation facilities in the county as permitted by IC 6-3.6-6-2.7.

(b) A local income tax council is established for each county. The membership of each county's local income tax council consists of the fiscal body of the county and the fiscal body of each city or town that lies either partially or entirely within that county.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.15; P.L.184-2018, SEC.1; P.L.137-2024, SEC.2.

IC 6-3.6-3-1Adopting body; county fiscal body Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1. (a) The fiscal body of the county is the adopting body for a county.

(b) The fiscal body of the city or town is the adopting body for a city or town for purposes of adopting a municipal rate under IC 6-3.6-6-22.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.15; P.L.184-2018, SEC.1; P.L.137-2024, SEC.2; P.L.68-2025, SEC.102.

IC 6-3.6-3-2Actions by ordinance or resolution; uniform documents; hearing requirements and procedures; certification Sec. 2. (a) An adopting body or, if authorized by this article, another governmental entity that is not an adopting body, may take an action under this article only by ordinance, unless this article permits the action to be taken by resolution.

(b) The department of local government finance, in consultation with the department of state revenue, may make electronically available uniform notices, ordinances, and resolutions that an adopting body or other governmental entity may use to take an action under this article.

(c) An ordinance or resolution adopted under this article must comply with the notice and hearing requirements set forth in IC 5-3-1.

(d) The department of local government finance shall prescribe the procedures to be used by the adopting body or governmental entity for submitting to the department the notice, the adopting ordinance or resolution, and the vote results on an ordinance or resolution. The department of local government finance shall notify the submitting entity within thirty (30) days after submission whether the department has received the necessary information required by the department. A final action taken by an adopting body or governmental entity under this article to impose a new tax or amend an existing tax is not effective until the department of local government finance notifies the adopting body or governmental entity that it has received the required information from the submitting entity.

(e) Not later than July 1 of each calendar year, the county auditor shall certify to the department of local government finance and to the state GIS officer which taxing units comprise each taxing district in the county.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.8; P.L.257-2019, SEC.69; P.L.159-2020, SEC.54; P.L.157-2026, SEC.112.

IC 6-3.6-3-2.5Annual submission of a county's, city's, or town's debt service obligations payable from local income tax revenueEffective 7-1-2027.

Sec. 2.5. (a) As used in this section, "debt service obligations" refers to:

(1) the principal and interest payable during a calendar year on bonds;

(2) lease rental payments payable during a calendar year on leases; and

(3) any amount required under an agreement for bonds or leases to be deposited in a sinking fund or other reserve during a calendar year;

of a county, city, or town payable from local income taxes.

(b) Before August 1 of each calendar year, the fiscal officer of each county, city, and town shall provide the department of local government finance with the total amount of the county's, city's, or town's debt service obligations payable from local income tax revenues that will be due in the ensuing calendar year and, upon request by the department of local government finance, any additional ensuing calendar years.

(c) The department of local government finance shall annually determine whether each county, city, or town with debt service obligations due in the ensuing year has timely submitted to the department of local government finance the information required under this section.

As added by P.L.157-2026, SEC.113.

IC 6-3.6-3-3Effective date of ordinance Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 3. (a) Except as provided in subsection (f), an ordinance adopted under this article takes effect as provided in this section.

(b) An ordinance that adopts, increases, decreases, or rescinds a tax or a tax rate takes effect as follows:

(1) An ordinance adopted after December 31 of the immediately preceding year and before September 1 of the current year takes effect on October 1 of the current year.

(2) An ordinance adopted after August 31 and before November 1 of the current year takes effect on January 1 of the following year.

(3) An ordinance adopted after October 31 of the current year and before January 1 of the following year takes effect on October 1 of the following year.

(c) An ordinance that grants, increases, decreases, rescinds, or changes a credit against the property tax liability of a taxpayer takes effect as follows:

(1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect on January 1 of, and applies to property taxes first due and payable in, the year immediately following the year in which the ordinance is adopted.

(2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect on January 1 of, and applies to property taxes first due and payable in, the year that follows the current year by two (2) years.

(d) An ordinance that grants, increases, decreases, rescinds, or changes a distribution or allocation of taxes takes effect as follows:

(1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect January 1 of the year immediately following the year in which the ordinance is adopted.

(2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect January 1 of the year that follows the current year by two (2) years.

(e) An ordinance not described in subsections (b) through (d) takes effect as provided under IC 36 for other ordinances of the governmental entity adopting the ordinance.

(f) An ordinance described in section 7(e) or 7.5(e) of this chapter that changes a tax rate or changes the allocation of revenue received from a tax rate does not take effect as provided under this section if the county adopting body fails to meet the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter. If an ordinance does not take effect, the tax rate or allocation, as applicable, that is subject to the proposed change in the ordinance shall be the lesser of the:

(1) applicable distribution schedule for the certified distribution for the upcoming calendar year; or

(2) applicable distribution schedule for the certified distribution for the current calendar year;

unless, or until, a subsequent ordinance is adopted and the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter are met. This subsection expires January 1, 2025.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.9; P.L.236-2023, SEC.75.

IC 6-3.6-3-3Effective date of ordinance Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 3. (a) Except as provided in subsection (f), an ordinance adopted by a county under this article takes effect as provided in this section.

(b) An ordinance that adopts, increases, decreases, or rescinds a tax or a tax rate takes effect as follows:

(1) An ordinance adopted on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted.

(2) An ordinance adopted after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted.

However, an ordinance adopted to impose a tax rate under IC 6-3.6-6-2(b)(3) or IC 6-3.6-6-2(b)(4) must be adopted on or before October 1 of a calendar year.

(c) An ordinance that grants, increases, decreases, rescinds, or changes a credit against the property tax liability of a taxpayer under IC 6-3.6-5 (before its expiration) takes effect as follows:

(1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect on January 1 of, and applies to property taxes first due and payable in, the year immediately following the year in which the ordinance is adopted.

(2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect on January 1 of, and applies to property taxes first due and payable in, the year that follows the current year by two (2) years.

This subsection expires December 31, 2028.

(d) An ordinance that grants, increases, decreases, rescinds, or changes a distribution or allocation of taxes takes effect as follows:

(1) An ordinance adopted on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted.

(2) An ordinance adopted after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted.

(e) An ordinance not described in subsections (b) through (d) takes effect as provided under IC 36 for other ordinances of the governmental entity adopting the ordinance.

(f) An ordinance described in section 7(e) or 7.5(e) of this chapter that changes a tax rate or changes the allocation of revenue received from a tax rate does not take effect as provided under this section if the county adopting body fails to meet the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter. If an ordinance does not take effect, the tax rate or allocation, as applicable, that is subject to the proposed change in the ordinance shall be the lesser of the:

(1) applicable distribution schedule for the certified distribution for the upcoming calendar year; or

(2) applicable distribution schedule for the certified distribution for the current calendar year;

unless, or until, a subsequent ordinance is adopted and the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter are met. This subsection expires January 1, 2025.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.9; P.L.236-2023, SEC.75; P.L.68-2025, SEC.103; P.L.157-2026, SEC.114.

IC 6-3.6-3-3.3Effective date of ordinance; municipal local income tax Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 3.3. (a) This section applies to an ordinance adopted by a city or town that adopts, increases, decreases, or rescinds a tax or a tax rate under IC 6-3.6-6-22.

(b) An ordinance adopted by a city or town on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted.

(c) An ordinance adopted by a city or town after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted.

As added by P.L.68-2025, SEC.104.

IC 6-3.6-3-4Tax rate remains in effect until effective date of ordinance; expiration date Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4. (a) Except for a tax rate that has an expiration date, and except as provided in section 3(f) of this chapter (before its expiration), a tax rate remains in effect until the effective date of an ordinance that increases, decreases, or rescinds that tax rate.

(b) A tax rate may not be changed more than once each year under this article.

As added by P.L.243-2015, SEC.10. Amended by P.L.236-2023, SEC.76.

IC 6-3.6-3-4Tax rate expiration date; continuation of tax rate by ordinance after December 31, 2028 Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4. (a) Except for a tax rate that has an expiration date, and except as provided in section 3(f) of this chapter (before its expiration), a tax rate remains in effect until the effective date of an ordinance that increases, decreases, or rescinds that tax rate.

(b) A tax rate may not be changed more than once each year under this article.

(c) A local income tax expenditure tax rate that is imposed in a county under IC 6-3.6-6 continues in effect after December 31, 2028, only if the adopting body adopts an ordinance to renew the expenditure tax rate beginning January 1, 2029. However, if there are bonds or leases outstanding that are payable from a tax imposed under IC 6-3.6-6, the expenditure tax rate for the county beginning January 1, 2029, under IC 6-3.6-6-2(b)(1) shall be at least the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of the:

(1) highest annual outstanding debt service;

(2) highest annual lease payments; and

(3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve;

but only until the maturity date of those debt obligations. An ordinance under this subsection must be adopted by the adopting body on or before October 1, 2028, as set forth in section 3(b)(1) of this chapter. However, this subsection shall not be construed to prohibit an adopting body that fails to adopt an ordinance to continue an expenditure tax rate after December 31, 2028, from adopting an ordinance under this article to impose, renew, or modify an expenditure tax rate under IC 6-3.6-6 beginning January 1, 2030, or any year thereafter.

As added by P.L.243-2015, SEC.10. Amended by P.L.236-2023, SEC.76; P.L.68-2025, SEC.105; P.L.157-2026, SEC.115.

IC 6-3.6-3-5Voting on ordinances; votes recorded and certified by auditor of the county; county with a single voting bloc Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.

Sec. 5. (a) The auditor of a county shall record all votes taken on ordinances presented for a vote under this article and not more than ten (10) days after the vote, send a certified copy of the results to:

(1) the commissioner of the department of state revenue; and

(2) the commissioner of the department of local government finance;

in an electronic format approved by the commissioner of the department of local government finance.

(b) Except as provided in subsection (c), this subsection applies only to a county that has a local income tax council. The county auditor may cease sending certified copies after the county auditor sends a certified copy of results showing that members of the local income tax council have cast a majority of the votes on the local income tax council for or against the proposed ordinance.

(c) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The county auditor may cease sending certified copies of the votes on the local income tax council voting as a whole under section 9.5 of this chapter after the county auditor sends a certified copy of results showing that the individuals who sit on the fiscal bodies of the county, cities, and towns that are members of the local income tax council have cast a majority of the votes on the local income tax council voting as a whole under section 9.5 of this chapter for or against the proposed ordinance. This subsection expires May 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.29; P.L.159-2021, SEC.21; P.L.137-2024, SEC.3; P.L.223-2025, SEC.5; P.L.157-2026, SEC.116.

IC 6-3.6-3-5Voting on ordinances; votes recorded and certified by auditor of the county Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.

Sec. 5. The auditor of a county (or the fiscal officer of a municipality in the case of a local income tax imposed under IC 6-3.6-6-22) shall record all votes taken on ordinances presented for a vote under this article and not more than ten (10) days after the vote, send a certified copy of the results to:

(1) the commissioner of the department of state revenue; and

(2) the commissioner of the department of local government finance;

in an electronic format approved by the commissioner of the department of local government finance.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.29; P.L.159-2021, SEC.21; P.L.137-2024, SEC.3; P.L.223-2025, SEC.5; P.L.68-2025, SEC.106; P.L.157-2026, SEC.116; P.L.23-2026, SEC.39; P.L.157-2026, SEC.117.

IC 6-3.6-3-6Local income tax council; allocation of votes; county with a single voting bloc Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 6. (a) This section applies to a county in which the county adopting body is a local income tax council.

(b) In the case of a city or town that lies within more than one (1) county, the county auditor of each county shall base the allocations required by subsections (d) and (e) on the population of that part of the city or town that lies within the county for which the allocations are being made.

(c) Each local income tax council has a total of one hundred (100) votes.

(d) Each county, city, or town that is a member of a local income tax council is allocated a percentage of the total one hundred (100) votes that may be cast. The percentage that a city or town is allocated for a year equals the same percentage that the population of the city or town bears to the population of the county. The percentage that the county is allocated for a year equals the same percentage that the population of all areas in the county not located in a city or town bears to the population of the county.

(e) This subsection applies only to a county with a single voting bloc. Each individual who sits on the fiscal body of a county, city, or town that is a member of the local income tax council is allocated for a year the number of votes equal to the total number of votes allocated to the particular county, city, or town under subsection (d) divided by the number of members on the fiscal body of the county, city, or town. This subsection expires May 31, 2028.

(f) On or before January 1 of each year, the county auditor shall certify to each member of the local income tax council the number of votes, rounded to the nearest one hundredth (0.01), each member has for that year.

(g) This subsection applies only to a county with a single voting bloc. On or before January 1 of each year, in addition to the certification to each member of the local income tax council under subsection (f), the county auditor shall certify to each individual who sits on the fiscal body of each county, city, or town that is a member of the local income tax council the number of votes, rounded to the nearest one hundredth (0.01), each individual has under subsection (e) for that year. This subsection expires May 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.30; P.L.159-2021, SEC.22; P.L.32-2021, SEC.12; P.L.137-2024, SEC.4; P.L.223-2025, SEC.6; P.L.157-2026, SEC.118.

IC 6-3.6-3-6Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.30; P.L.159-2021, SEC.22; P.L.32-2021, SEC.12; P.L.137-2024, SEC.4; P.L.223-2025, SEC.6; P.L.157-2026, SEC.118. Repealed by P.L.68-2025, SEC.107 and P.L.145-2026, SEC.26.

IC 6-3.6-3-7Local income tax council; procedures for proposal of an ordinance; notice and public hearing; notice to affected local taxing units Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 7. (a) This section applies to a county in which the county adopting body is a local income tax council.

(b) Before a member of the local income tax council may propose an ordinance under section 8 of this chapter, or vote on a proposed ordinance (including a proposed ordinance under section 8(e) of this chapter that is being considered by the local income tax council as a whole as required under section 9.5 of this chapter (before its expiration)), the member must hold a public hearing on the proposed ordinance and provide the public with notice of the time and place where the public hearing will be held.

(c) The notice required by subsection (b) must be given in accordance with IC 5-3-1 and include the proposed ordinance or resolution to propose an ordinance.

(d) In addition to the notice required by subsection (b), the adopting body shall also provide a copy of the notice to all taxing units in the county at least ten (10) days before the public hearing.

(e) If a county adopting body makes any fiscal decision that has a financial impact to an underlying local taxing unit, the decision must be made, and notice must be given to the affected local taxing unit, by August 1 of a year. If a county adopting body passes an ordinance changing the allocation of local income tax revenue to a local taxing unit, the county adopting body must provide direct notice, in addition to the public notice described in subsection (b), to the affected local taxing unit within fifteen (15) days of the passage of the ordinance. The county adopting body must provide confirmation to the department of state revenue and the department of local government finance that direct notice was provided to the affected local taxing units within fifteen (15) days of the passage of the ordinance.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.10; P.L.154-2020, SEC.31; P.L.236-2023, SEC.77.

IC 6-3.6-3-7Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.10; P.L.154-2020, SEC.31; P.L.236-2023, SEC.77. Repealed by P.L.68-2025, SEC.108.

IC 6-3.6-3-7.5County council hearing requirements for ordinances; notice to affected local taxing units Sec. 7.5. (a) This section applies to a county in which the county adopting body is the county council.

(b) Before the county council may vote on a proposed ordinance under this article, the county council must hold a public hearing on the proposed ordinance and provide the public with notice of the date, time, and place of the public hearing.

(c) The notice required by subsection (b) must be given in accordance with IC 5-3-1 and include the proposed ordinance.

(d) In addition to the notice required by subsection (b), the adopting body shall also provide a copy of the notice to all taxing units in the county at least ten (10) days before the public hearing.

(e) If a county adopting body makes any fiscal decision that has a financial impact to an underlying local taxing unit, the decision must be made, and notice must be given to the affected local taxing unit, by August 1 of a year. If a county adopting body passes an ordinance changing the allocation of local income tax revenue to a local taxing unit, the county adopting body must provide direct notice, in addition to the public notice described in subsection (b), to the affected local taxing unit within fifteen (15) days of the passage of the ordinance. The county adopting body must provide confirmation to the department of state revenue and the department of local government finance that direct notice was provided to the affected local taxing units within fifteen (15) days of the passage of the ordinance.

As added by P.L.197-2016, SEC.45. Amended by P.L.247-2017, SEC.11; P.L.236-2023, SEC.78.

IC 6-3.6-3-8Local income tax council; resolution to propose an ordinance; distribution of copy of ordinance; vote; county with a single voting bloc Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 8. (a) This section applies to a county in which the county adopting body is a local income tax council.

(b) Except as provided in subsection (e), any member of a local income tax council may present an ordinance for passage. To do so, the member must adopt a resolution to propose the ordinance to the local income tax council and distribute a copy of the proposed ordinance to the county auditor. The county auditor shall treat any proposed ordinance distributed to the auditor under this section as a casting of all that member's votes in favor of the proposed ordinance.

(c) Except as provided in subsection (f), the county auditor shall deliver copies of a proposed ordinance the auditor receives to all members of the local income tax council within ten (10) days after receipt. Subject to subsection (d), once a member receives a proposed ordinance from the county auditor, the member shall vote on it within thirty (30) days after receipt.

(d) Except as provided in subsection (h), if, before the elapse of thirty (30) days after receipt of a proposed ordinance, the county auditor notifies the member that the members of the local income tax council have cast a majority of the votes on the local income tax council for or against the proposed ordinance the member need not vote on the proposed ordinance.

(e) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The fiscal body of any county, city, or town that is a member of a local income tax council may adopt a resolution to propose an ordinance to increase a tax rate in the county to be voted on by the local income tax council as a whole as required under section 9.5 of this chapter and distribute a copy of the proposed ordinance to the county auditor. The county auditor shall treat the vote tally on the resolution adopted under this subsection for each individual who is a member of the fiscal body of the county, city, or town as the voting record for that individual either for or against the ordinance being proposed for consideration by the local income tax council as a whole under section 9.5 of this chapter. This subsection expires May 31, 2028.

(f) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The county auditor shall deliver copies of a proposed ordinance the auditor receives under subsection (e) to the fiscal officers of all members of the local income tax council (other than the member proposing the ordinance under subsection (e)) within ten (10) days after receipt. Subject to subsection (h), once a member receives a proposed ordinance from the county auditor, the member shall vote on it within thirty (30) days after receipt. This subsection expires May 31, 2028.

(g) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The fiscal body of each county, city, or town voting on a resolution to propose an ordinance under subsection (e), or voting on a proposed ordinance being considered by the local income tax council as a whole under section 9.5 of this chapter, must take a roll call vote on the resolution or the proposed ordinance. If an individual who sits on the fiscal body is absent from the meeting in which a vote is taken or abstains from voting on the resolution or proposed ordinance, the fiscal officer of the county, city, or town shall nevertheless consider that individual's vote as a "no" vote against the resolution or the proposed ordinance being considered, whichever is applicable, for purposes of the vote tally under this section and shall note on the vote tally that the individual's "no" vote is due to absence or abstention. The fiscal body of each county, city, or town shall certify the roll call vote on a resolution or a proposed ordinance, either for or against, to the county auditor as set forth under this chapter. This subsection expires May 31, 2028.

(h) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. If, before the elapse of thirty (30) days after receipt of a proposed ordinance under subsection (e), the county auditor notifies the member that the individuals who sit on the fiscal bodies of the county, cities, and towns that are members of the local income tax council have cast a majority of the votes on the local income tax council for or against a proposed ordinance voting as a whole under section 9.5 of this chapter, the member need not vote on the proposed ordinance under subsection (e). This subsection expires May 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.32; P.L.159-2021, SEC.23; P.L.137-2024, SEC.5; P.L.223-2025, SEC.7; P.L.157-2026, SEC.119.

IC 6-3.6-3-8Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.32; P.L.159-2021, SEC.23; P.L.137-2024, SEC.5; P.L.223-2025, SEC.7; P.L.157-2026, SEC.119. Repealed by P.L.68-2025, SEC.109 and P.L.145-2026, SEC.27.

IC 6-3.6-3-9Local income tax council; voting by resolution Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 9. (a) Except as provided in subsection (d), this section applies to a county in which the county adopting body is a local income tax council.

(b) A member of the local income tax council may exercise its votes by passing a resolution and transmitting the resolution to the county auditor.

(c) A resolution passed by a member of the local income tax council exercises all votes of the member on the proposed ordinance, and those votes may not be changed during the year.

(d) This section does not apply to a county in which the county adopting body is a local income tax council to which section 9.5 of this chapter applies. This subsection expires May 31, 2024.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.33; P.L.159-2021, SEC.24.

IC 6-3.6-3-9Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.33; P.L.159-2021, SEC.24. Repealed by P.L.68-2025, SEC.110.

IC 6-3.6-3-9.5Local income tax council that is a county with a single voting bloc proposing to increase tax rate; vote; resolution Sec. 9.5. (a) This section applies to a county:

(1) in which the county adopting body is a local income tax council;

(2) that is a county with a single voting bloc; and

(3) that proposes to increase a tax rate in the county.

However, the provisions under section 9 of this chapter shall apply to a county described in subdivisions (1) and (2) that proposes to decrease a tax rate in the county.

(b) A local income tax council described in subsection (a) must vote as a whole to exercise its authority to increase a tax rate under this article.

(c) A resolution passed by the fiscal body of a county, city, or town that is a member of the local income tax council exercises the vote of each individual who sits on the fiscal body of the county, city, or town on the proposed ordinance, and the individual's vote may not be changed during the year.

(d) This section expires May 31, 2028.

As added by P.L.154-2020, SEC.34. Amended by P.L.159-2021, SEC.25; P.L.137-2024, SEC.6; P.L.68-2025, SEC.111; P.L.223-2025, SEC.8; P.L.157-2026, SEC.120.

IC 6-3.6-3-10Local income tax council; may not adopt more than one ordinance in a year Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 10. (a) This section applies to a county in which the county adopting body is a local income tax council.

(b) A local income tax council may pass only one (1) ordinance adopting, increasing, decreasing, or rescinding a tax in one (1) year. Once the ordinance has been passed, the county auditor shall:

(1) cease distributing those types of proposed ordinances for the rest of the year; and

(2) withdraw from the membership any other of those types of proposed ordinances.

Any votes subsequently received by the county auditor on those types of proposed ordinances during that same year are void.

(c) The local income tax council may not vote on, nor may the county auditor distribute to the members of the local income tax council, any proposed ordinance during a year, if previously during that same year the county auditor received and distributed to the members of the local income tax council a proposed ordinance whose passage would have substantially the same effect.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-3-10Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.112.

IC 6-3.6-3-11ExpiredAs added by P.L.154-2020, SEC.35. Expired 5-31-2021 by P.L.154-2020, SEC.35.

IC 6-3.6-3-12Ordinance containing tax rate that exceeds a maximum allowable tax rateEffective 7-1-2028.

Sec. 12. (a) This section applies to an ordinance adopted under this article after June 30, 2028.

(b) This subsection applies only to an ordinance adopted between January 1 and August 2 of a calendar year or October 2 and December 31 of a calendar year. If an adopting body adopts an ordinance to impose a local income tax under:

(1) IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4);

(2) IC 6-3.6-6-22; or

(3) IC 6-3.6-7;

that exceeds the applicable maximum tax rate or applicable maximum aggregate tax rate allowable pursuant to IC 6-3.6-6-2, IC 6-3.6-6-22, or IC 6-3.6-7, the department of local government finance shall notify the adopting body and county fiscal officer or municipal fiscal officer, as applicable, not later than thirty (30) days after the adopting body submits the ordinance and information required under IC 6-3.6-6-2 that one (1) or more tax rates exceed the maximum allowable tax rate.

(c) This subsection applies only to an ordinance adopted between January 1 and August 2 of a calendar year or October 2 and December 31 of a calendar year. Not later than thirty (30) days after receiving a notification under subsection (b) from the department of local government finance, the adopting body may adopt an ordinance correcting the applicable tax rate or tax rates. The following apply to an ordinance adopted under this subsection:

(1) Any statutory requirements for an ordinance that otherwise apply to an ordinance adopted under this article to impose a local income tax rate also apply to an ordinance adopted under this subsection.

(2) If the tax rate or tax rates adopted in an ordinance adopted under this subsection still exceed a maximum allowable tax rate or maximum allowable aggregate tax rate, the ordinance adopted under this subsection shall be considered void and treated as if the adopting body did not adopt any additional ordinance under this subsection.

(3) An ordinance adopted under this subsection has the same effective date as the initial ordinance described in subsection (b).

(d) If an adopting body adopts an ordinance between August 3 and October 1 of a calendar year to impose a local income tax that exceeds a maximum allowable tax rate or rates, fails to adopt an ordinance correcting the applicable tax rate or tax rates under subsection (c), or, the ordinance is described in subsection (c)(2), the tax rate or rates will be reduced according to the following:

(1) If a tax rate or tax rates imposed pursuant to IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or IC 6-3.6-7 exceed the maximum allowable rate specified in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or IC 6-3.6-7, the tax rate or tax rates that exceed the maximum allowable rate shall be reduced to the maximum allowable rate without further action by the adopting body.

(2) If the aggregate tax rates imposed pursuant to IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) exceed the maximum allowable aggregate rate in IC 6-3.6-6-2(c), the tax rates shall be reduced without any further action by the adopting body according to the following:

(A) Any portion of the aggregate tax rate that exceeds the maximum allowable rate shall first be applied by reducing the tax rate imposed under IC 6-3.6-6-2(b)(1), but may not reduce the rate below the tax rate otherwise required under this article.

(B) Any remaining portion of the aggregate tax rate that exceeds the maximum allowable rate after the reduction in clause (A) shall be applied to reduce the tax rates imposed under IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3) in proportion to the total rates imposed under IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3).

(3) If the tax rate or rates exceed both the maximum allowable rate specified in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) and the maximum allowable aggregate tax rate in IC 6-3.6-6-2(c), the tax rates shall first be reduced in the manner set forth in subdivision (1) before application of the reduction manner set forth in subdivision (2).

(4) Any tax rate reduction under this subsection has the same effective date as the initial ordinance described in subsection (b).

As added by P.L.157-2026, SEC.121.

IC 6-3.6-3-13Municipal unit strategic taskforce; local income tax distribution agreement Sec. 13. The following apply beginning March 1, 2026:

(1) Each county may, prior to October 1, 2026, convene a Municipal Unit Strategic Taskforce (MUST) with one (1) representative from the county council and each city and town fiscal officer in the county to negotiate and establish through unanimous support a local income tax distribution agreement as it pertains to the county's maximum local income tax rates under IC 6-3.6-6-2(b)(1) and IC 6-3.6-6-2(b)(4). The committee may not include representatives from the fire protection and emergency medical services as defined in IC 6-3.6-6-4.3 and nonmunicipal civil taxing units as defined in IC 6-3.6-6-0.5.

(2) If the Municipal Unit Strategic Taskforce (MUST) establishes a local income tax distribution agreement under subdivision (1), the county shall send the local income tax distribution agreement to the department of local government finance. The department of local government finance shall compile a report of all local income tax distribution agreements and submit the report to the legislative council in an electronic format under IC 5-14-6 prior to December 1, 2026.

As added by P.L.157-2026, SEC.122.

IC 6-3.6-4Chapter 4. Imposition of Tax

6-3.6-4-1Imposition of tax; rate of tax 6-3.6-4-1Imposition of tax; rate of tax 6-3.6-4-2Tax rates; adoption; increasing; decreasing; rescinding 6-3.6-4-2Tax rates; adoption; increasing; decreasing; rescinding 6-3.6-4-3Tax rates; limitations; bonds or leases payable from former tax; pledge of tax revenue 6-3.6-4-3Tax rates; limitations; bonds or leases payable from former tax; pledge of tax revenue

IC 6-3.6-4-1Imposition of tax; rate of tax Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 1. (a) A tax is imposed on the adjusted gross income of local taxpayers at a tax rate that is a sum of the tax rates imposed by the county's adopting body and in effect in the county.

(b) The combined tax rates imposed under IC 6-3.6-5, IC 6-3.6-6, and IC 6-3.6-7 constitute the tax imposed on the adjusted gross income of local taxpayers in the county.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-4-1Imposition of tax; rate of tax Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 1. (a) Except as otherwise provided in IC 6-3.6-6-22, a tax is imposed on the adjusted gross income of local taxpayers at a tax rate that is a sum of the tax rates imposed by the county's adopting body and in effect in the county.

(b) Except as otherwise provided in IC 6-3.6-6-22, the combined tax rates imposed under IC 6-3.6-5 (before its expiration), IC 6-3.6-6, and IC 6-3.6-7 constitute the tax imposed on the adjusted gross income of local taxpayers in the county.

(c) In addition to the tax imposed in the county under subsection (a), a tax is imposed on the adjusted gross income of local taxpayers in a municipality at a tax rate that is imposed by the municipality under IC 6-3.6-6-22 and in effect in the municipality.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.113.

IC 6-3.6-4-2Tax rates; adoption; increasing; decreasing; rescinding Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 2. Subject to section 3 of this chapter, a tax rate authorized under IC 6-3.6-5, IC 6-3.6-6, or IC 6-3.6-7 may be adopted, increased, decreased, or rescinded without adopting, increasing, decreasing, or rescinding a tax rate authorized by either of the two (2) other chapters. However, an adopting body may:

(1) adopt, increase, decrease, or rescind a tax authorized under a particular chapter of this article; and

(2) adopt, increase, decrease, or rescind a tax authorized under another chapter of this article;

in the same ordinance.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-4-2Tax rates; adoption; increasing; decreasing; rescinding Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 2. Subject to section 3 of this chapter, a tax rate authorized under IC 6-3.6-6 or IC 6-3.6-7 may be adopted, increased, decreased, or rescinded without adopting, increasing, decreasing, or rescinding a tax rate authorized by the other chapter. However, an adopting body may:

(1) adopt, increase, decrease, or rescind a tax authorized under a particular chapter of this article; and

(2) adopt, increase, decrease, or rescind a tax authorized under another chapter of this article;

in the same ordinance.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.114.

IC 6-3.6-4-3Tax rates; limitations; bonds or leases payable from former tax; pledge of tax revenue Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 3. If there are bonds or leases outstanding that are payable from a tax imposed under IC 6-3.5-1.1 (before its repeal January 1, 2017), IC 6-3.5-6 (before its repeal January 1, 2017), IC 6-3.5-7 (before its repeal January 1, 2017), IC 6-3.6-6, or IC 6-3.6-7 (but not IC 6-3.6-5), the adopting body may not reduce the tax rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual outstanding debt service plus the highest annual lease payments plus any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve, unless:

(1) the adopting body; or

(2) any city, town, or county;

pledges all or a part of its share of revenues from the tax imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5) for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest annual outstanding debt service plus the highest annual lease payments plus the amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-4-3Tax rates; limitations; bonds or leases payable from former tax; pledge of tax revenue Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 3. If there are bonds or leases outstanding that are payable from a tax imposed under IC 6-3.5-1.1 (before its repeal January 1, 2017), IC 6-3.5-6 (before its repeal January 1, 2017), IC 6-3.5-7 (before its repeal January 1, 2017), IC 6-3.6-6, or IC 6-3.6-7, the adopting body may not reduce the tax rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual outstanding debt service plus the highest annual lease payments plus any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve, unless:

(1) the adopting body; or

(2) any city, town, or county;

pledges all or a part of its share of revenues from the tax imposed under IC 6-3.6-6 or IC 6-3.6-7 for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest annual outstanding debt service plus the highest annual lease payments plus the amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.115.

IC 6-3.6-5Chapter 5. Property Tax Relief Rates

6-3.6-5-1Imposition of tax 6-3.6-5-2Treatment of tax as property taxes; credit may not reduce levy limit or approved rate 6-3.6-5-3Adoption of ordinance; imposition of tax; findings and determination of need for the tax revenue 6-3.6-5-4Credit; reduction in property taxes 6-3.6-5-5Assistance in calculating credit percentage; department of local government finance 6-3.6-5-6Rate of tax; property tax credit; allocation categories; uniform percentage; allocation of revenue to taxing units 6-3.6-5-7Chapter expiration

IC 6-3.6-5-1Imposition of tax Sec. 1. An adopting body may impose a tax under section 6 of this chapter on the adjusted gross income of local taxpayers in the county served by the adopting body.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-5-2Treatment of tax as property taxes; credit may not reduce levy limit or approved rate Sec. 2. A tax imposed under this chapter shall be treated as property taxes for all purposes. However, the department of local government finance may not reduce:

(1) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or

(2) the approved property tax levy or rate for any fund;

by the amount of any credits granted under this chapter.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-5-3Adoption of ordinance; imposition of tax; findings and determination of need for the tax revenue Sec. 3. To impose a tax under this chapter, the adopting body must adopt an ordinance finding and determining that revenues from the tax are needed for the purposes described in section 6 of this chapter.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-5-4Credit; reduction in property taxes Sec. 4. A credit granted under this chapter shall be applied to reduce the property tax liability of a taxpayer before the application of a credit granted under IC 6-1.1-20.4 or IC 6-1.1-20.6.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.12.

IC 6-3.6-5-5Assistance in calculating credit percentage; department of local government finance Sec. 5. The department of local government finance shall assist adopting bodies and county auditors in calculating credit percentages and amounts under this article.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.46; P.L.201-2023, SEC.105.

IC 6-3.6-5-6Rate of tax; property tax credit; allocation categories; uniform percentage; allocation of revenue to taxing units Sec. 6. (a) This section applies to all counties.

(b) The adopting body may impose a tax rate under this chapter that does not exceed one and twenty-five hundredths percent (1.25%) on the adjusted gross income of local taxpayers in the county served by the adopting body.

(c) Revenues from a tax under this section may be used only for the purpose of funding a property tax credit applied on a percentage basis to reduce the property tax liability of taxpayers with tangible property located in the county as authorized under this section. Property taxes imposed due to a referendum in which a majority of the voters in the taxing unit imposing the property taxes approved the property taxes are not eligible for a credit under this section.

(d) The adopting body shall specify by ordinance how the revenue from the tax shall be applied under subdivisions (1) through (4) to provide property tax credits in subsequent years. The allocation must be specified as a percentage of property tax relief revenue for taxpayers within each property category. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies to property taxes as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified. The property tax credits may be allocated to all property categories or among any combination of the following categories:

(1) For homesteads eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to one percent (1%).

(2) For residential property, long term care property, agricultural land, and other tangible property (if any) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to two percent (2%).

(3) For residential property, as defined in IC 6-1.1-20.6-4.

(4) For nonresidential real property, personal property, and other tangible property (if any) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to three percent (3%).

(e) Within a category described in subsection (d) for which an ordinance grants property tax credits, the property tax credit rate must be a uniform percentage for all qualifying taxpayers with property in that category in the county. The credit percentage may be, but does not have to be, uniform for all categories of property listed in subsection (d).

(f) The county auditor shall allocate the amount of revenue applied as tax credits under this section to the taxing units that imposed the eligible property taxes against which the credits are applied.

(g) If the adopting body adopts an ordinance to reduce or eliminate the property tax relief credits that are in effect in the county under this chapter, the county auditor shall give notice of the adoption of the ordinance in accordance with IC 5-3-1 not later than thirty (30) days after the date on which the ordinance is adopted.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.13; P.L.255-2017, SEC.23; P.L.86-2018, SEC.77; P.L.174-2022, SEC.47.

IC 6-3.6-5-7Chapter expiration Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 7. This chapter expires December 31, 2028.

As added by P.L.68-2025, SEC.116. Amended by P.L.157-2026, SEC.123.

IC 6-3.6-6Chapter 6. Expenditure Rate

6-3.6-6-0.5"Nonmunicipal civil taxing unit" 6-3.6-6-1Imposition of tax 6-3.6-6-2Rate of tax 6-3.6-6-2Rate of tax; expiration 6-3.6-6-2.5Tax rate for a PSAP in certain counties; adoption of ordinance by county fiscal body; distribution of revenue 6-3.6-6-2.5Repealed 6-3.6-6-2.6Tax rate for acute care hospital; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue 6-3.6-6-2.6Repealed 6-3.6-6-2.7Tax rate for correctional and rehabilitation facilities; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue for operating expenses 6-3.6-6-2.7Repealed 6-3.6-6-2.8Tax rate for emergency medical services; adoption of ordinance by county fiscal body; tax rate; distribution of revenue 6-3.6-6-2.8Repealed 6-3.6-6-2.9Tax rate for county staff expenses and courtroom costs of the state judicial system in the county 6-3.6-6-2.9Repealed 6-3.6-6-3Treatment of tax revenue; distributions to school corporations and civil taxing units; additional revenue; additional revenue may not reduce levy limit or property tax rate; revenue pledged for bonds 6-3.6-6-3Revenue pledged for bonds; criteria for obligations to the northwest Indiana regional development authority 6-3.6-6-3.1Tax rate for funding property tax homestead credits; expiration 6-3.6-6-4Additional revenue; allocation; public safety; economic development; certified shares 6-3.6-6-4General purpose revenue; uses and allocation 6-3.6-6-4.3Revenue for fire protection or emergency medical services; allocation 6-3.6-6-4.5Revenue for nonmunicipal civil taxing units; adoption of rates for specific unit types, request for distribution; allocation 6-3.6-6-5Allocations; pledge for payment of bonds or leases 6-3.6-6-6Repealed 6-3.6-6-6.1Revenue for certain cities and towns; allocation; request for distribution 6-3.6-6-7Repealed 6-3.6-6-8Allocation of certified distribution; allocation of revenue for public safety; dedication for PSAP; application for distribution by a fire department or emergency medical services provider 6-3.6-6-8Application for distribution by a fire department or emergency medical services provider 6-3.6-6-8.5Marion County; allocation of additional revenue to fund operation of a public library, a public transportation corporation; or a public communications systems and computer facilities district 6-3.6-6-8.5Marion County; allocation of general purpose revenue; public library; public transportation corporation; public communications systems and computer facilities district 6-3.6-6-9Allocation of revenue for economic development; amount of certified distribution 6-3.6-6-9Repealed 6-3.6-6-9.5Capital improvement plan; revenue allocated for economic development; effect of not adopting a capital improvement plan; components of a plan 6-3.6-6-9.5Allocation of general purpose revenue for economic development 6-3.6-6-10Allocation of additional revenue allocated for certified shares 6-3.6-6-10Repealed 6-3.6-6-11Eligibility for allocation of certified shares; civil taxing units; school corporations excluded 6-3.6-6-11Repealed 6-3.6-6-12Allocation amount of certified shares; civil taxing units 6-3.6-6-12Repealed 6-3.6-6-12Repealed 6-3.6-6-13Repealed 6-3.6-6-14Calculation of allocation of certified shares among civil taxing units 6-3.6-6-14Repealed 6-3.6-6-15Adjustment of allocation or distribution of certified shares; fire protection territory 6-3.6-6-15Repealed 6-3.6-6-16Marion County; certified shares; supplemental allocation and distribution requirements 6-3.6-6-16Repealed 6-3.6-6-17Certified shares; uses 6-3.6-6-17General purpose revenue; uses 6-3.6-6-18Pledge of certified shares; payment of bonds; lease payments; approval by fiscal body 6-3.6-6-18Pledge of general purpose revenue; payment of bonds; lease payments; approval by fiscal body 6-3.6-6-19Authorization for a civil taxing unit to distribute its certified shares to another governmental entity; procedures 6-3.6-6-19Authorization to distribute general purpose revenue to another governmental entity; procedures 6-3.6-6-20Allocation or distribution of revenue made on the basis of property tax levies or budgets in certain counties 6-3.6-6-20Repealed 6-3.6-6-21Ability to contribute certified shares to regional development authority infrastructure fund 6-3.6-6-21Ability to contribute general purpose revenue to regional development authority infrastructure fund 6-3.6-6-21.2School corporation allocation of local income tax revenue to any fund 6-3.6-6-21.2Repealed 6-3.6-6-21.3Allocation and distribution of certain revenue; merger of school corporations or civil taxing units 6-3.6-6-21.3Allocation and distribution of certain revenue; merger of school corporations or civil taxing units 6-3.6-6-22Municipal tax rate; applicability 6-3.6-6-23Determination of population for cities and towns

IC 6-3.6-6-0.5"Nonmunicipal civil taxing unit" Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 0.5. As used in this chapter, "nonmunicipal civil taxing unit" means townships, libraries, and all other civil taxing units that imposed an ad valorem property tax levy in the county for the calendar year preceding the distribution year, except that the term does not include counties, cities, towns, or school corporations. The term does include those civil taxing units whose budgets require binding review by another local unit.

As added by P.L.68-2025, SEC.117.

IC 6-3.6-6-1Imposition of tax Sec. 1. An adopting body may impose a tax under section 2 of this chapter on the adjusted gross income of local taxpayers in the county served by the adopting body.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-2Rate of tax Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 2. (a) This section applies to all counties.

(b) The adopting body may impose a tax rate under this chapter that does not exceed:

(1) two and five-tenths percent (2.5%) in all counties other than Marion County; and

(2) two and seventy-five hundredths percent (2.75%) in Marion County;

on the adjusted gross income of local taxpayers in the county served by the adopting body.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-2Rate of tax; expiration Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 2. (a) This section applies to all counties.

(b) The adopting body may by ordinance and subject to subsections (c) through (e) impose one (1) or more of the following component rates not to exceed a total expenditure tax rate under this chapter of two and nine-tenths percent (2.9%) on the adjusted gross income of taxpayers who reside in the county, or, in the case of a team member or race team member described in IC 6-3.6-2-13(3), on the adjusted gross income earned as a team member or race team member in the county:

(1) A tax rate not to exceed one and two-tenths percent (1.2%) for general purpose revenue for county services (as provided in section 4 of this chapter), subject to subsection (c).

(2) A tax rate not to exceed four-tenths of one percent (0.4%) for providers of fire protection or emergency medical services located within the county (as provided in section 4.3 of this chapter), subject to subsection (c).

(3) A tax rate not to exceed two-tenths of one percent (0.2%) for general purpose revenue for distribution to nonmunicipal civil taxing units (excluding fire protection districts) located within the county (as provided in section 4.5 of this chapter), subject to subsection (c).

(4) A tax rate not to exceed one and two-tenths percent (1.2%) for general purpose revenue for municipal services for distribution to municipalities located within the county that are not eligible to adopt a municipal tax rate under section 22 of this chapter or that have made an election under section 23(b)(3) of this chapter to be treated as such. The adopting body shall identify in the ordinance each taxing district in which the tax rate under this subdivision is imposed.

(c) The combined component rates imposed by an adopting body under subsection (b)(1) through (b)(3) shall not exceed one and seven-tenths percent (1.7%).

(d) A tax rate adopted under subsection (b)(4) may only be imposed on taxpayers who do not reside in a municipality that is eligible to adopt a municipal tax rate under section 22 of this chapter and has not made an election under section 23(b)(3) of this chapter. In the case of a team member or race team member described in IC 6-3.6-2-13(3), a tax rate adopted under subsection (b)(4) may only be imposed on services performed as a team member or race team member at a location if the county could impose the tax rate on an individual residing at that location.

(e) A tax rate imposed under subsection (b) expires on December 31, 2031, and on December 31 of each calendar year thereafter. An adopting body wishing to continue, increase, or decrease a tax rate for the succeeding year must pass an ordinance to readopt a tax rate in accordance with IC 6-3.6-3-3. This subsection applies regardless of whether there is a modification in the tax rate or the component rates or the rates are unchanged from the previous year.

(f) Notwithstanding subsection (e) or any other provision of this article, if there are bonds, leases, or other obligations payable from a tax imposed under subsection (b)(1) or (b)(4), the expenditure tax rate for the county under subsection (b)(1) or (b)(4) for a calendar year shall be the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of the:

(1) highest annual outstanding debt service;

(2) highest annual lease payments; and

(3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve;

for the calendar year payable from the applicable component rate.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.118; P.L.157-2026, SEC.124.

IC 6-3.6-6-2.5Tax rate for a PSAP in certain counties; adoption of ordinance by county fiscal body; distribution of revenue Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 2.5. (a) This section applies to a county in which the adopting body:

(1) is the local income tax council; and

(2) did not allocate the revenue under this chapter from an expenditure rate of at least one-tenth of one percent (0.1%) to pay for a PSAP in the county for a year.

(b) A county fiscal body may adopt an ordinance to impose a tax rate for a PSAP in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed one-tenth of one percent (0.1%).

(c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used only for paying for a PSAP in the county.

As added by P.L.180-2016, SEC.16.

IC 6-3.6-6-2.5Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.180-2016, SEC.16. Repealed by P.L.68-2025, SEC.119.

IC 6-3.6-6-2.6Tax rate for acute care hospital; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 2.6. (a) As used in this section, "acute care hospital" means an acute care hospital that is:

(1) established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23; and

(2) licensed under IC 16-21.

(b) A county fiscal body may adopt an ordinance to impose a tax rate for acute care hospitals located in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed one-tenth of one percent (0.1%).

(c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used only for the operating expenses of the acute care hospital located in the county.

As added by P.L.137-2024, SEC.7.

IC 6-3.6-6-2.6Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.137-2024, SEC.7. Repealed by P.L.68-2025, SEC.120.

IC 6-3.6-6-2.7Tax rate for correctional and rehabilitation facilities; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue for operating expenses Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 2.7. (a) A county fiscal body may adopt an ordinance to impose a tax rate for correctional facilities and rehabilitation facilities in the county. The tax rate must be in increments of:

(1) in the case of a county with bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed three-tenths of one percent (0.3%); and

(2) in the case of a county with no bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%).

(b) The tax rate imposed under this section may not be in effect for more than:

(1) twenty-two (22) years, in the case of a tax rate imposed in an ordinance adopted before January 1, 2019; or

(2) twenty-five (25) years, in the case of a tax rate imposed in an ordinance adopted on or after January 1, 2019.

(c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used by the county only for paying for correctional facilities and rehabilitation facilities in the county.

(d) If a county fiscal body imposes a tax rate:

(1) under subsection (a)(1) or (a)(2) in an increment that does not exceed two-tenths of one percent (0.2%), one hundred percent (100%) of the revenue collected from the total tax rate; or

(2) under subsection (a)(1) in an increment that exceeds two-tenths of one percent (0.2%):

(A) one hundred percent (100%) of the revenue collected from that portion of the total tax rate that does not exceed an increment of two-tenths of one percent (0.2%); and

(B) no revenue collected from that portion of the total tax rate that exceeds an increment of two-tenths of one percent (0.2%);

may be used for operating expenses for correctional facilities and rehabilitation facilities in the county.

As added by P.L.184-2018, SEC.2. Amended by P.L.257-2019, SEC.70; P.L.137-2022, SEC.53; P.L.236-2023, SEC.79; P.L.137-2024, SEC.8.

IC 6-3.6-6-2.7Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.184-2018, SEC.2. Amended by P.L.257-2019, SEC.70; P.L.137-2022, SEC.53; P.L.236-2023, SEC.79; P.L.137-2024, SEC.8. Repealed by P.L.68-2025, SEC.121.

IC 6-3.6-6-2.8Tax rate for emergency medical services; adoption of ordinance by county fiscal body; tax rate; distribution of revenue Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 2.8. (a) As used in this section, "emergency medical services" has the meaning set forth in IC 16-18-2-110.

(b) The fiscal body of a county may adopt an ordinance to impose a tax rate for emergency medical services in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%). The tax rate may not be in effect for more than twenty-five (25) years.

(c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used by the county only for paying for operating costs incurred by the county for emergency medical services that are provided throughout the county.

As added by P.L.95-2022, SEC.4. Amended by P.L.236-2023, SEC.80.

IC 6-3.6-6-2.8Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.95-2022, SEC.4. Amended by P.L.236-2023, SEC.80. Repealed by P.L.68-2025, SEC.122.

IC 6-3.6-6-2.9Tax rate for county staff expenses and courtroom costs of the state judicial system in the county Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 2.9. (a) For purposes of this section, "courtroom costs" includes staffing costs only for the court reporter, court bailiff, or court administrator.

(b) A county fiscal body may adopt an ordinance to impose a tax rate for:

(1) in the case of a tax rate adopted under this section before January 1, 2024, county staff expenses of the state judicial system in the county; or

(2) in the case of a tax rate adopted under this section after December 31, 2023, courtroom costs of the state judicial system in the county.

The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%). The tax rate may not be in effect for more than twenty-five (25) years.

(c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund. The revenue shall be used by the county:

(1) in the case of a tax rate adopted under this section before January 1, 2024, only for paying for county staff expenses of the state judicial system in the county; and

(2) in the case of a tax rate adopted under this section after December 31, 2023, only for paying the courtroom costs of the state judicial system in the county.

(d) This subsection applies to a tax rate adopted under subsection (b)(1). The local income tax revenue budgeted and spent under this section by each county may not comprise more than fifty percent (50%) of the county's total budgeted operational staffing expenses related to the state judicial system in any given year.

(e) This subsection applies to a tax rate adopted under subsection (b)(2). The local income tax revenue spent under this section by each county may not comprise more than fifty percent (50%) of the county's total operational staffing expenses related to the courtroom costs of the state judicial system in any given year.

(f) Counties that enact an ordinance to impose a tax rate under this section shall annually report the following information for the prior calendar year by May 1 to the justice reinvestment advisory council established by IC 33-38-9.5-2:

(1) The types of court positions paid with local income tax revenue generated by this section.

(2) The number of court positions by type paid for with local income tax revenue generated by this section.

(3) The average salary by type of court position paid for with local income tax revenue generated by this section.

(4) The county's total budgeted and actual staffing expenses or courtroom costs, whichever is applicable, related to the state judicial system.

(5) The county's portion of local income tax revenue that was actually spent on staffing expenses or courtroom costs, whichever is applicable, related to the state judicial system.

(g) The justice reinvestment advisory council shall annually compile and report to the legislative council prior to July 1 of each year the information required in subsection (f) for each county. The report must be in an electronic format under IC 5-14-6.

As added by P.L.193-2023, SEC.2. Amended by P.L.101-2024, SEC.1; P.L.156-2024, SEC.24.

IC 6-3.6-6-2.9Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.193-2023, SEC.2. Amended by P.L.101-2024, SEC.1; P.L.156-2024, SEC.24. Repealed by P.L.68-2025, SEC.123.

IC 6-3.6-6-3Treatment of tax revenue; distributions to school corporations and civil taxing units; additional revenue; additional revenue may not reduce levy limit or property tax rate; revenue pledged for bonds Revisor's Note: P.L.157-2026, SEC.286 provided the effective dates for publication of the versions of IC 6-3.6-6-3.

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 3. (a) Revenue raised from a tax imposed under this chapter shall be treated as follows:

(1) To make the following distributions:

(A) If an ordinance described in section 2.5 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.5 of this chapter.

(B) If an ordinance described in section 2.6 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.6 of this chapter.

(C) If an ordinance described in section 2.7 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.7 of this chapter.

(D) If an ordinance described in section 2.8 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.8 of this chapter.

(E) If an ordinance described in section 2.9 of this chapter (before its repeal) is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.9 of this chapter.

(F) If an ordinance described in section 3.1 of this chapter (before its expiration) is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 3.1 of this chapter.

(2) After making the distributions described in subdivision (1), if any, to make distributions to school corporations and civil taxing units in counties that formerly imposed a tax under IC 6-3.5-1.1 (repealed). The revenue categorized from the next twenty-five hundredths percent (0.25%) of the rate for a former tax adopted under IC 6-3.5-1.1 (repealed) shall be allocated to school corporations and civil taxing units. The amount of the allocation to a school corporation or civil taxing unit shall be determined using the allocation amounts for civil taxing units and school corporations in the county.

(3) After making the distributions described in subdivisions (1) and (2), the remaining revenue shall be treated as additional revenue (referred to as "additional revenue" in this chapter). Additional revenue may not be considered by the department of local government finance in determining:

(A) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or

(B) the approved property tax rate for any fund.

(b) In the case of a civil taxing unit that has pledged the tax from additional revenue for the payment of bonds, leases, or other obligations as reported by the civil taxing unit under IC 5-1-18, the adopting body may not, under section 4 of this chapter, reduce the proportional allocation of the additional revenue that was allocated in the preceding year if the reduction for that year would result in an amount less than the amount necessary for the payment of bonds, leases, or other obligations payable or required to be deposited in a sinking fund or other reserve in that year for the bonds, leases, or other obligations for which the tax from additional revenue has been pledged. To inform an adopting body with regard to allocations that affect the payment of bonds, leases, or other obligations, a taxing unit may provide the adopting body with information regarding any outstanding bonds, leases, or other obligations that are secured by additional revenue. The information must be provided before the date of the public hearing at which the adopting body may change the allocation of additional revenue under section 4 of this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.17; P.L.197-2016, SEC.47; P.L.85-2017, SEC.24; P.L.247-2017, SEC.14; P.L.184-2018, SEC.3; P.L.95-2022, SEC.5; P.L.137-2024, SEC.9; P.L.157-2026, SEC.125.

IC 6-3.6-6-3Revenue pledged for bonds; criteria for obligations to the northwest Indiana regional development authority Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 3. (a) In the case of a civil taxing unit that has pledged the tax from general purpose revenue for the payment of bonds, leases, or other obligations as reported by the civil taxing unit under IC 5-1-18, the adopting body may not reduce the proportional allocation of the general purpose revenue that was allocated in the preceding year if the reduction for that year would result in an amount less than the amount necessary for the payment of bonds, leases, or other obligations payable or required to be deposited in a sinking fund or other reserve in that year for the bonds, leases, or other obligations for which the tax from general purpose revenue has been pledged. To inform an adopting body with regard to allocations that affect the payment of bonds, leases, or other obligations, a taxing unit may provide the adopting body with information regarding any outstanding bonds, leases, or other obligations that are secured by general purpose revenue. The information must be provided before the date of the public hearing at which the adopting body may change the allocation of general purpose revenue under section 4 of this chapter.

(b) In the case of a civil taxing unit that is obligated to make payments to the northwest Indiana regional development authority from general purpose revenue for the payment of bonds, leases, or other obligations related to northwest Indiana rail projects (as defined in IC 5-1.3-2-14) and projects described in IC 36-7.5-4-2.5, the adopting body may not reduce the proportional allocation amounts of the general purpose revenue as allocated in the immediately preceding year if the reduction would result in an allocation that is less than the amount necessary for the civil taxing unit to make the payments to the northwest Indiana regional development authority for the payment of the bonds, leases, or other obligations.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.17; P.L.197-2016, SEC.47; P.L.85-2017, SEC.24; P.L.247-2017, SEC.14; P.L.184-2018, SEC.3; P.L.95-2022, SEC.5; P.L.137-2024, SEC.9; P.L.157-2026, SEC.125; P.L.68-2025, SEC.124.

IC 6-3.6-6-3.1Tax rate for funding property tax homestead credits; expiration Sec. 3.1. (a) As used in this section, "homestead" has the meaning set forth in IC 6-1.1-12-37.

(b) A county fiscal body may adopt an ordinance to impose a tax rate for the purpose of funding property tax homestead credits to reduce the property tax liability of taxpayers who own homesteads that are:

(1) located in the county; and

(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to one percent (1%).

Revenue collected from a tax rate imposed under this section may only be used to fund replacement of the county's property tax levy. Property taxes imposed due to a referendum in which a majority of the voters in the taxing unit imposing the property taxes approved the property taxes are not eligible for a credit under this section.

(c) The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed three-tenths of one percent (0.3%).

(d) A tax imposed under this section shall be treated as property taxes for all purposes. However, the department of local government finance may not reduce:

(1) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or

(2) the approved property tax levy or rate for any fund;

by the amount of any credits granted under this chapter.

(e) The homestead credits shall be applied to the net property taxes due on the homestead after the application of any credit granted under IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and IC 6-1.1-20.6.

(f) The property tax credits must be applied uniformly to provide a homestead credit for homesteads in the county.

(g) The county auditor shall allocate the amount of revenue applied as tax credits under this section to the taxing units that imposed the eligible property taxes against which the credits are applied.

(h) The department of local government finance shall assist county fiscal bodies and county auditors in calculating credit percentages and amounts.

(i) Notwithstanding any provision to the contrary in this chapter, a tax imposed under this section:

(1) may be imposed on the adjusted gross income of taxpayers before January 1, 2029; and

(2) terminates and may not be imposed on the adjusted gross income of taxpayers after December 31, 2028.

(j) This section expires January 1, 2029.

As added by P.L.68-2025, SEC.125. Amended by P.L.157-2026, SEC.126.

IC 6-3.6-6-4Additional revenue; allocation; public safety; economic development; certified shares Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4. The adopting body shall, by ordinance, determine how the additional revenue from a tax under this chapter must be allocated in subsequent years. The allocations are subject to IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified. The revenue must be allocated among one (1) or more of the following uses as provided in this chapter:

(1) Public safety.

(2) Economic development projects.

(3) Certified shares.

The ordinance must describe the allocation of additional revenue by use of percentages.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.48; P.L.247-2017, SEC.15.

IC 6-3.6-6-4General purpose revenue; uses and allocation Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4. (a) General purpose revenue raised from a tax rate under section 2(b)(1) of this chapter must be distributed directly to the county. The money may be used by the county fiscal body for any of the purposes of the county, including for:

(1) public safety, including funding for a PSAP;

(2) economic development purposes described in IC 6-3.6-10;

(3) acute care hospitals;

(4) correctional facilities and rehabilitation facilities; and

(5) county staff expenses of the state judicial system.

(b) Subject to sections 3 and 5 of this chapter, the adopting body shall, by ordinance, determine how general purpose revenue from a tax under this chapter must be allocated in subsequent years. The allocations are subject to IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.48; P.L.247-2017, SEC.15; P.L.68-2025, SEC.126; P.L.157-2026, SEC.127.

IC 6-3.6-6-4.3Revenue for fire protection or emergency medical services; allocation Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 4.3. (a) Revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter shall be distributed by the county among the county and each fire protection district, fire protection territory, and municipal fire department located within the county that provides fire protection, emergency medical services, or both in the county. Except as provided in subsection (b), at the discretion of the county council, the county may distribute revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter to township fire departments and volunteer fire departments that provide fire protection, emergency medical services, or both in the county.

(b) Subject to subsection (d), the county may determine the allocation method for revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter. However, in determining the allocation method, the county shall, for each provider of fire protection, emergency medical services, or both in the county, consider the service boundaries of the provider and the population living within the service boundaries of the provider using the most recent federal decennial census.

(c) If at least fifty percent (50%) of fire runs made by a township fire department during the calendar year preceding by two (2) years the calendar year in which distribution amounts are being determined are carried out by full-time firefighters who receive a salary of at least thirty thousand dollars ($30,000), the county shall distribute an allocation of revenue to the township fire department under this section.

(d) In the case of a county that provides fire protection, emergency medical services, or both in part of the county, but not the entire county, only the part of the county in which the county provides the fire protection, emergency medical services, or both are considered within the service boundaries for the county.

(e) For purposes of a distribution under this section, a distribution to a:

(1) fire protection territory shall be made to the provider unit of the fire protection territory; and

(2) volunteer fire department shall be made to the taxing unit that is served by the volunteer fire department.

(f) If the population living within the service boundaries of a provider cannot be determined using data from the United States Census Bureau, the county may determine an estimated population based on income tax returns that report a residence located within the service boundaries of the provider. The county auditor shall provide the estimated population to the department of local government finance not later than July 15 of the calendar year that precedes the calendar year before the year in which the distribution is made. If the county auditor does not provide an estimated population under this subsection, the department of local government finance may use the most recent estimated population provided by the county auditor or the department of state revenue.

As added by P.L.68-2025, SEC.127. Amended by P.L.157-2026, SEC.128.

IC 6-3.6-6-4.5Revenue for nonmunicipal civil taxing units; adoption of rates for specific unit types, request for distribution; allocation Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 4.5. (a) Revenue raised from a tax rate for nonmunicipal civil taxing units under section 2(b)(3) of this chapter may be distributed by the county to nonmunicipal civil taxing units subject to the provisions of this section.

(b) Subject to the maximum aggregate tax rate of not more than two-tenths of one percent (0.2%) under section 2(b)(3) of this chapter, the adopting body may adopt a tax rate for each type of nonmunicipal civil taxing unit, which may not exceed more than five-hundredths of one percent (0.05%) for any given unit type. The revenue raised from a tax rate for a specific type of nonmunicipal civil taxing unit shall be allocated to all nonmunicipal civil taxing units of that same type located within the county on a pro rata per capita basis, subject to subsections (e) and (h).

(c) A county solid waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113) is not an eligible nonmunicipal civil taxing unit for the purpose of receiving an allocation of general purpose revenue under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution.

(d) A resolution passed by a county fiscal body under subsection (c) may:

(1) expire on a date specified in the resolution; or

(2) remain in effect until the county fiscal body revokes or rescinds the resolution.

(e) A nonmunicipal civil taxing unit wishing to receive a share of revenue under this section in a year must adopt a resolution requesting the distribution from the county and must provide a certified copy of the resolution to the adopting body and the state board of accounts not later than July 1 of the year immediately preceding the distribution year. Not later than August 1 of the year immediately preceding the distribution year, the adopting body shall hold a public hearing on the resolution requesting the distribution and provide the public with notice of the time and place where the public hearing will be held. The notice must be given in accordance with IC 5-3-1 and include a description of the resolution requesting the distribution from the county.

(f) If a nonmunicipal civil taxing unit adopts a resolution under subsection (e) and provides the resolution to the adopting body as set forth in that subsection, the county shall distribute to the nonmunicipal civil taxing unit an amount of revenue raised from the tax rate under section 2(b)(3) of this chapter for the distribution year as set forth in subsection (g).

(g) If one (1) or more, but not all, nonmunicipal civil taxing units adopt a resolution under subsection (e) requesting a distribution in a given year, the county may either distribute the total amount of revenue raised from the tax rate under section 2(b)(3) of this chapter to only those nonmunicipal civil taxing units that have provided a resolution request, or the county may distribute the total amount of revenue raised from a tax rate under section 2(b)(3) of this chapter to all nonmunicipal civil taxing units as set forth in this section. If no nonmunicipal civil taxing units adopt a resolution to request a distribution in a given year, the county may retain the revenue raised from a tax rate for nonmunicipal civil taxing units for that year and use the revenue as general purpose revenue for the county under section 4 of this chapter.

(h) If the population living within one (1) or more nonmunicipal civil taxing units cannot be determined using data from the United States Census Bureau, the county may determine an estimated population based on income tax returns that report a residence located within the boundaries of the nonmunicipal civil taxing units. The county auditor shall provide the estimated population to the department of local government finance no later than July 15 of the calendar year that precedes the calendar year before the year in which the distribution is made. If the county auditor does not provide an estimated population under this subsection, the department of local government finance may use the most recent estimated population provided by the county auditor or the department of state revenue.

As added by P.L.68-2025, SEC.128. Amended by P.L.23-2026, SEC.40; P.L.157-2026, SEC.129.

IC 6-3.6-6-5Allocations; pledge for payment of bonds or leases Sec. 5. The adopting body may not reduce the proportional allocation among the uses described in section 4 of this chapter in a year if the reduction would allocate less to the payment of bonds or leases for which the tax under this chapter has been pledged in accordance with law than the amount pledged and payable in that year or required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve in that year.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.49.

IC 6-3.6-6-6RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.197-2016, SEC.50.

IC 6-3.6-6-6.1Revenue for certain cities and towns; allocation; request for distribution Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 6.1. (a) Revenue raised from a tax rate for certain cities and towns under section 2(b)(4) of this chapter shall be distributed by the county subject to the provisions of this section and according to the following formula:

STEP ONE: Determine the population of each city and town located in the county, excluding the population of any municipality that:

(A) is eligible to impose a local income tax under section 22 of this chapter; and

(B) did not make an election under section 23(b)(3) of this chapter.

STEP TWO: Determine the aggregate sum of the STEP ONE results.

STEP THREE: Determine the sum of:

(A) the STEP TWO result; plus

(B) the population of the unincorporated area of the county.

STEP FOUR: Divide the STEP TWO result by the STEP THREE result.

STEP FIVE: Multiply the STEP FOUR result by one and five-tenths (1.5), expressed as a percentage. However, the result may not exceed one hundred percent (100%).

STEP SIX: Multiple the STEP FIVE result by the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter.

STEP SEVEN: For each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, divide:

(A) the STEP ONE result for the city or town; by

(B) the STEP TWO result.

STEP EIGHT: To determine the amount to be allocated to each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, multiply:

(A) the STEP SEVEN result for the city or town; by

(B) the STEP SIX result.

STEP NINE: Determine the aggregate sum of the STEP EIGHT results for each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter.

STEP TEN: Determine the result of:

(A) the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter; minus

(B) the STEP SIX result.

STEP ELEVEN: Determine the result of:

(A) the STEP SIX result; minus

(B) the STEP NINE result.

STEP TWELVE: To determine the amount to be allocated to the county, determine the sum of:

(A) the STEP TEN result; plus

(B) the STEP ELEVEN result.

(b) For purposes of this section, if the boundaries of a city or town are located in more than one (1) county, only the portion of the population of the city or town that is located within the county imposing the tax rate under section 2(b)(4) of this chapter shall be considered.

(c) The money may be used by the city or town fiscal body for any of the purposes of the city or town, including public safety (as defined in IC 6-3.6-2-14) and economic development purposes described in IC 6-3.6-10. The city or town fiscal body may pledge its general purpose revenue to the payment of bonds or to lease payments as set forth in this chapter.

(d) An eligible city or town wishing to receive a share of revenue under this section in a year must adopt a resolution requesting the distribution from the county and must provide a certified copy of the resolution to the adopting body and the state board of accounts not later than July 1 of the year immediately preceding the distribution year. Not later than August 1 of the year immediately preceding the distribution year, the adopting body shall hold a public hearing on the resolution requesting the distribution and provide the public with notice of the time and place where the public hearing will be held. The notice must be given in accordance with IC 5-3-1 and include a description of the resolution requesting the distribution from the county.

(e) If an eligible city or town adopts a resolution under subsection (d) and provides the resolution to the adopting body as set forth in subsection (d), the county shall distribute to the eligible city or town unit an amount of revenue raised from the tax rate under section 2(b)(4) of this chapter for the distribution year as set forth in subsection (a). If no eligible city or town adopts a resolution to request a distribution in a given year, the county may retain all of the revenue raised from a tax rate for that year.

(f) The county may use any money received under this section for the purposes described in section 4 of this chapter.

As added by P.L.68-2025, SEC.129. Amended by P.L.23-2026, SEC.41; P.L.157-2026, SEC.130.

IC 6-3.6-6-7RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.197-2016, SEC.51.

IC 6-3.6-6-8Allocation of certified distribution; allocation of revenue for public safety; dedication for PSAP; application for distribution by a fire department or emergency medical services provider Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 8. (a) This section applies to the allocation of additional revenue from a tax under this chapter to public safety purposes. Funding dedicated for a PSAP under a former tax continues to apply under this chapter until it is rescinded or modified. If funding was not dedicated for a PSAP under a former tax, the adopting body may adopt a resolution providing that all or part of the additional revenue allocated to public safety is to be dedicated for a PSAP. The resolution first applies in the following year and then thereafter until it is rescinded or modified. Funding dedicated for a PSAP shall be allocated and distributed as provided in IC 6-3.6-11-4.

(b) Except as provided in subsections (c) and (d), the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, shall be allocated to the county and to each municipality in the county that is carrying out or providing at least one (1) public safety purpose. For purposes of this subsection, in the case of a consolidated city, the total property taxes imposed by the consolidated city include the property taxes imposed by the consolidated city and all special taxing districts (except for a public library district, a public transportation corporation, and a health and hospital corporation), and all special service districts. The amount allocated under this subsection to a county or municipality is equal to the result of:

(1) the amount of the remaining certified distribution that is allocated to public safety purposes; multiplied by

(2) a fraction equal to:

(A) in the case of a county that initially imposed a rate for public safety under IC 6-3.5-6 (repealed), the result of the total property taxes imposed in the county by the county or municipality for the calendar year preceding the distribution year, divided by the sum of the total property taxes imposed in the county by the county and each municipality in the county that is entitled to a distribution under this section for that calendar year; or

(B) in the case of a county that initially imposed a rate for public safety under IC 6-3.5-1.1 (repealed) or a county that did not impose a rate for public safety under either IC 6-3.5-1.1 (repealed) or IC 6-3.5-6 (repealed), the result of the attributed allocation amount of the county or municipality for the calendar year preceding the distribution year, divided by the sum of the attributed allocation amounts of the county and each municipality in the county that is entitled to a distribution under this section for that calendar year.

(c) A fire department, volunteer fire department, or emergency medical services provider that:

(1) provides fire protection or emergency medical services within the county; and

(2) is operated by or serves a political subdivision that is not otherwise entitled to receive a distribution of tax revenue under this section;

may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under this section during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application by a township that provided fire protection or emergency medical services in the most recent calendar year and imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. Not later than ten (10) days after the public hearing, if applicable, but before September 1 of a year, the adopting body may adopt a resolution requiring that one (1) or more of the applicants shall receive a specified amount of the tax revenue to be distributed under this section during the following calendar year. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. Any amount of tax revenue distributed under this subsection to a fire department, volunteer fire department, or emergency medical services provider shall be distributed before the remainder of the tax revenue is allocated under subsection (b).

(d) A township fire department, volunteer fire department, fire protection territory, or fire protection district that:

(1) provides fire protection or emergency medical services within a county; and

(2) is operated by or serves a political subdivision;

may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under this section during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application submitted by a township that provided fire protection or emergency medical services in the most recent calendar year and that imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. From the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or more township fire departments, volunteer fire departments, fire protection territories, or fire protection districts shall receive an amount of the tax revenue to be distributed under this section during the following calendar year up to one hundred percent (100%) of the revenue collected from that portion of the tax rate imposed for allocations for public safety purposes that does not exceed a rate of five one-hundredths of one percent (0.05%). A resolution adopted under this subsection must include information on the service area for each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. Any distribution under this subsection must be based on the assessed value of real property, not including land, that is served by each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. Any amount of tax revenue distributed under this subsection to a township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable, shall be distributed before the remainder of the tax revenue is allocated under subsection (b). In the case of a volunteer fire department, the application under this subsection must be made to the adopting body by the fiscal officer of the unit served by the volunteer fire department.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.52; P.L.247-2017, SEC.16; P.L.236-2023, SEC.81; P.L.101-2024, SEC.2; P.L.230-2025, SEC.80.

IC 6-3.6-6-8Application for distribution by a fire department or emergency medical services provider Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 8. (a) A fire department, volunteer fire department, or emergency medical services provider that:

(1) provides fire protection or emergency medical services within the county; and

(2) is operated by or serves a political subdivision that is not otherwise entitled to receive a distribution of tax revenue under this section;

may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under section 4.3 of this chapter during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application by a township that provided fire protection or emergency medical services in the most recent calendar year and imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. Not later than ten (10) days after the public hearing, if applicable, but before September 1 of a year, the adopting body may adopt a resolution requiring that one (1) or more of the applicants shall receive a specified amount of the tax revenue to be distributed under section 4.3 of this chapter during the following calendar year. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year.

(b) A township fire department, volunteer fire department, fire protection territory, or fire protection district that:

(1) provides fire protection or emergency medical services within a county; and

(2) is operated by or serves a political subdivision;

may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under section 4.3 of this chapter during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application submitted by a township that provided fire protection or emergency medical services in the most recent calendar year and that imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. From the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or more township fire departments, volunteer fire departments, fire protection territories, or fire protection districts shall receive an amount of the tax revenue to be distributed under section 4.3 of this chapter during the following calendar year up to one hundred percent (100%) of the revenue collected from that portion of the tax rate imposed for allocations for public safety purposes that does not exceed a rate of five one-hundredths of one percent (0.05%). A resolution adopted under this subsection must include information on the service area for each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. Any distribution under this subsection must be based on the assessed value of real property, not including land, that is served by each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. In the case of a volunteer fire department, the application under this subsection must be made to the adopting body by the fiscal officer of the unit served by the volunteer fire department.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.52; P.L.247-2017, SEC.16; P.L.236-2023, SEC.81; P.L.101-2024, SEC.2; P.L.230-2025, SEC.80; P.L.68-2025, SEC.130; P.L.230-2025, SEC.81.

IC 6-3.6-6-8.5Marion County; allocation of additional revenue to fund operation of a public library, a public transportation corporation; or a public communications systems and computer facilities district Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 8.5. (a) This section applies only to Marion County.

(b) The adopting body may allocate additional revenue to fund the operation of a public library in Marion County as provided in an election, if any, made by the county fiscal body under IC 36-3-7-6. An allocation under this section shall be made from the part of the additional revenue that would otherwise be allocated as certified shares.

(c) The adopting body may allocate additional revenue to fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42. An allocation under this section shall be made from the part of the additional revenue that would otherwise be allocated as certified shares.

(d) The adopting body may allocate additional revenue to fund the operation of a public communications systems and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19(b). The additional revenue shall be allocated and distributed before the allocation and distribution of the remaining tax revenue under this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.17; P.L.104-2022, SEC.28.

IC 6-3.6-6-8.5Marion County; allocation of general purpose revenue; public library; public transportation corporation; public communications systems and computer facilities district Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 8.5. (a) This section applies only to Marion County.

(b) The adopting body may allocate general purpose revenue to fund the operation of a public library in Marion County as provided in an election, if any, made by the county fiscal body under IC 36-3-7-6.

(c) The adopting body may allocate general purpose revenue to fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42.

(d) The adopting body may allocate general purpose revenue to fund the operation of a public communications systems and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19(b).

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.17; P.L.104-2022, SEC.28; P.L.68-2025, SEC.131.

IC 6-3.6-6-9Allocation of revenue for economic development; amount of certified distribution Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 9. (a) This section applies to the allocation of additional revenue from a tax under this chapter for economic development purposes.

(b) Money designated for economic development purposes shall be allocated to the county, cities, and towns for use by the taxing unit's fiscal body for any of the purposes described in IC 6-3.6-10. Except as provided in subsections (c) and (d) and IC 6-3.6-11, and subject to adjustment as provided in IC 36-8-19-7.5, the amount of the certified distribution allocated to economic development purposes that the county and each city or town in a county is entitled to receive each month of each year equals the amount determined using the following formula:

STEP ONE: Determine the sum of:

(A) the total property taxes being imposed by the county, city, or town during the calendar year preceding the distribution year; plus

(B) for a county, the welfare allocation amount.

STEP TWO: Determine the quotient of:

(A) The STEP ONE amount; divided by

(B) the sum of the total property taxes that are first due and payable to the county and all cities and towns of the county during the calendar year preceding the distribution year plus the welfare allocation amount.

STEP THREE: Determine the product of:

(A) the amount of the certified distribution allocated to economic development purposes for that month; multiplied by

(B) the STEP TWO amount.

(c) The body imposing the tax may adopt an ordinance before August 2 of a year to provide for a distribution of the amount allocated to economic development purposes based on population instead of a distribution under subsection (b). The following apply if an ordinance is adopted under this subsection:

(1) The ordinance is effective January 1 of the following year.

(2) The amount of the certified distribution allocated to economic development purposes that the county and each city and town in the county are entitled to receive during each month of each year equals the product of:

(A) the amount of the certified distribution that is allocated to economic development purposes for the month; multiplied by

(B) the quotient of:

(i) for a city or town, the population of the city or the town that is located in the county and for a county, the population of the part of the county that is not located in a city or town; divided by

(ii) the population of the entire county.

(3) The ordinance may be made irrevocable for the duration of specified lease rental or debt service payments.

(d) In a county having a consolidated city, only the consolidated city is entitled to the amount of the certified distribution that is allocated to economic development purposes.

As added by P.L.243-2015, SEC.10. Amended by P.L.149-2016, SEC.29; P.L.197-2016, SEC.53; P.L.247-2017, SEC.18.

IC 6-3.6-6-9Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.149-2016, SEC.29; P.L.197-2016, SEC.53; P.L.247-2017, SEC.18. Repealed by P.L.68-2025, SEC.132.

IC 6-3.6-6-9.5Capital improvement plan; revenue allocated for economic development; effect of not adopting a capital improvement plan; components of a plan Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 9.5. (a) The executive of a county, city, or town may:

(1) adopt a capital improvement plan specifying the uses of the additional revenue to be allocated for economic development purposes; or

(2) designate the county or a city or town in the county as the recipient of all or a part of its share of the additional revenue that is distributed to it for economic development purposes.

(b) If a designation is made under subsection (a)(2), the county treasurer shall transfer the share or part of the share to the designated unit unless that unit does not have a capital improvement plan.

(c) A county, city, or town that fails to adopt a capital improvement plan may not receive:

(1) its fractional amount of the additional revenue to be allocated for economic development purposes; or

(2) any amount designated under subsection (a)(2);

for the year or years in which the unit does not have a plan. The county treasurer shall retain the amounts not distributed for such a unit in a separate account until the unit adopts a plan. Interest on the separate account becomes part of the account. If a unit fails to adopt a plan for a period of three (3) years, the balance in the separate account shall be distributed to the other units in the county in the same manner that other additional revenue allocated for economic development purposes is distributed.

(d) A capital improvement plan must include the following components:

(1) Identification and general description of each project that would be funded by other additional revenue allocated for economic development purposes.

(2) The estimated total cost of the project.

(3) Identification of all sources of funds expected to be used for each project.

(4) The planning, development, and construction schedule of each project.

(e) A capital improvement plan:

(1) must encompass a period of not less than two (2) years; and

(2) must incorporate projects the cost of which is at least seventy-five percent (75%) of the fractional amount of additional revenue allocated for economic development purposes that is expected to be received by the county, city, or town in that period.

(f) In making a designation under subsection (a)(2), the executive must specify the purpose and duration of the designation. If the designation is made to provide for the payment of lease rentals or bond payments, the executive may specify that the designation and its duration are irrevocable.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-9.5Allocation of general purpose revenue for economic development Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 9.5. (a) The executive of a county, city, or town may:

(1) adopt a capital improvement plan specifying the uses of general purpose revenue to be allocated for economic development purposes; or

(2) designate the county or a city or town in the county as the recipient of all or a part of its general purpose revenue that is distributed to it for economic development purposes.

(b) If a designation is made under subsection (a)(2), the county treasurer shall transfer the share or part of the share to the designated unit unless that unit does not have a capital improvement plan.

(c) A county, city, or town that fails to adopt a capital improvement plan may not receive any amount designated under subsection (a)(2) for the year or years in which the unit does not have a plan. The county treasurer shall retain the amounts not distributed for such a unit in a separate account until the unit adopts a plan. Interest on the separate account becomes part of the account. If a unit fails to adopt a plan for a period of three (3) years, the balance in the separate account shall be distributed to the other units in the county in the same manner that other general purpose revenue allocated for economic development purposes is distributed.

(d) A capital improvement plan must include the following components:

(1) Identification and general description of each project that would be funded by other general purpose revenue allocated for economic development purposes.

(2) The estimated total cost of the project.

(3) Identification of all sources of funds expected to be used for each project.

(4) The planning, development, and construction schedule of each project.

(e) A capital improvement plan:

(1) must encompass a period of not less than two (2) years; and

(2) must incorporate projects the cost of which is at least seventy-five percent (75%) of the fractional amount of general purpose revenue allocated for economic development purposes that is expected to be received by the county, city, or town in that period.

(f) In making a designation under subsection (a)(2), the executive must specify the purpose and duration of the designation. If the designation is made to provide for the payment of lease rentals or bond payments, the executive may specify that the designation and its duration are irrevocable.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.133.

IC 6-3.6-6-10Allocation of additional revenue allocated for certified shares Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 10. (a) This section applies to additional revenue from a tax under this chapter that is allocated for certified shares.

(b) Additional revenue remaining from a tax imposed under this chapter, after deducting the amounts allocated to public safety purposes and economic development purposes, shall be allocated among the civil taxing units as certified shares.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-10Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.134.

IC 6-3.6-6-11Eligibility for allocation of certified shares; civil taxing units; school corporations excluded Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 11. (a) Except as provided in this chapter and IC 6-3.6-11, this section applies to an allocation of certified shares in all counties.

(b) Any civil taxing unit that imposed an ad valorem property tax levy in the county for the calendar year preceding the distribution year is eligible for an allocation for the distribution year under this chapter.

(c) A school corporation is not a civil taxing unit for the purpose of receiving an allocation of certified shares under this chapter. The distributions to school corporations and civil taxing units in counties that formerly imposed a tax under IC 6-3.5-1.1 (repealed) as provided in section 3(a)(2) of this chapter is not considered an allocation of certified shares. A school corporation's allocation amount for purposes of section 3(a)(2) of this chapter shall be determined under section 12 of this chapter.

(d) A county solid waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113) is not a civil taxing unit for the purpose of receiving an allocation of certified shares under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution.

(e) A resolution passed by a county fiscal body under subsection (d) may:

(1) expire on a date specified in the resolution; or

(2) remain in effect until the county fiscal body revokes or rescinds the resolution.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.18; P.L.197-2016, SEC.54; P.L.85-2017, SEC.25; P.L.247-2017, SEC.19.

IC 6-3.6-6-11Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.18; P.L.197-2016, SEC.54; P.L.85-2017, SEC.25; P.L.247-2017, SEC.19. Repealed by P.L.68-2025, SEC.135.

IC 6-3.6-6-12Allocation amount of certified shares; civil taxing units Note: This version of section amended by P.L.230-2025, SEC.82. See also following repeal of this section by P.L.145-2026, SEC.28, effective 7-1-2027, and following repeal of this section by P.L.68-2025, SEC.136, effective 7-1-2028.

Sec. 12. (a) Except as provided in this chapter and IC 6-3.6-11, this section applies to an allocation of certified shares in all counties.

(b) The allocation amount of a civil taxing unit during a calendar year must be based on the amounts for the calendar year preceding the distribution year and is equal to the amount determined using the following formula:

STEP ONE: Determine the sum of the total property taxes being imposed by the civil taxing unit.

STEP TWO: Determine the sum of the following:

(A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (c).

(B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (d).

STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount.

STEP FOUR: In the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares in 2027 and 2028, STEP THREE multiplied by seventy percent (70%).

STEP FIVE: Determine the sum of:

(A) the:

(i) STEP THREE amount; or

(ii) STEP FOUR amount in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a);

(B) the civil taxing unit's certified shares plus the amount distributed under section 3(a)(2) of this chapter for the previous calendar year; plus

(C) in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares in 2026, the amount of the levy for the municipality's debt service and lease rental funds that was certified in 2025 multiplied by fifty-four and five-tenths percent (54.5%). This clause expires January 1, 2027.

The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5.

(c) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit if:

(1) the debt obligation was issued; and

(2) the proceeds were appropriated from property taxes;

to refund or otherwise refinance a debt obligation or a lease issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.

(d) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to make payments on a lease is not deducted from the allocation amount for a civil taxing unit if:

(1) the lease was issued; and

(2) the proceeds were appropriated from property taxes;

to refinance a debt obligation or lease issued before July 1, 2005. However, an appropriation from property taxes related to a lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82.

IC 6-3.6-6-12Repealed Note: This repeal of section by P.L.145-2026, SEC.28, effective 7-1-2027. See also preceding version of this section amended by P.L.230-2025, SEC.82, and following repeal of this section by P.L.68-2025, SEC.136, effective 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82. Repealed by P.L.145-2026, SEC.28.

IC 6-3.6-6-12Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section by P.L.68-2025, SEC.136, effective 7-1-2028. See also preceding version of this section amended by P.L.230-2025, SEC.82, and preceding repeal of this section by P.L.145-2026, SEC.28, effective 7-1-2027.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82. Repealed by P.L.68-2025, SEC.136.

IC 6-3.6-6-13RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.247-2017, SEC.21.

IC 6-3.6-6-14Calculation of allocation of certified shares among civil taxing units Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 14. (a) This section applies to an allocation of certified shares in a county other than Marion County.

(b) Subject to this chapter, certified shares must be allocated among civil taxing units based on the attributed allocation amount.

(c) The amount of certified shares to be allocated to each civil taxing unit is equal to:

(1) the total amount of the certified distribution that is allocated to certified shares for the county for the month; multiplied by

(2) the quotient of:

(A) the attributed allocation amount for the civil taxing unit in the county during the calendar year; divided by

(B) the sum of the attributed allocation amounts for all civil taxing units in the county during the calendar year.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-14Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.137.

IC 6-3.6-6-15Adjustment of allocation or distribution of certified shares; fire protection territory Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 15. (a) This section applies to an allocation or distribution, or both, of certified shares that is required to be made to a civil taxing unit in a county other than Marion County.

(b) IC 36-8-19-7.5 applies to the adjustment of the amounts distributed to a civil taxing unit that participates in a fire protection territory.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-15Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.138.

IC 6-3.6-6-16Marion County; certified shares; supplemental allocation and distribution requirements Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 16. IC 6-3.6-11 applies to the allocation of certified shares in Marion County.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-16Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.139.

IC 6-3.6-6-17Certified shares; uses Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 17. A civil taxing unit may use its certified shares for any of the purposes of the civil taxing unit.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-17General purpose revenue; uses Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 17. A county, city, town, or nonmunicipal civil taxing unit may use its general purpose revenue for any of the purposes of the unit.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.140.

IC 6-3.6-6-18Pledge of certified shares; payment of bonds; lease payments; approval by fiscal body Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 18. A civil taxing unit may pledge its certified shares to the payment of bonds or to lease payments for:

(1) any purpose of the civil taxing unit;

(2) any purpose of another governmental entity located in any part in the county, including a governmental entity organized on a regional basis; or

(3) any purpose for which certified shares may be used under IC 6-3.6-10.

The pledge must be approved in an ordinance adopted by the fiscal body of the political subdivision.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-18Pledge of general purpose revenue; payment of bonds; lease payments; approval by fiscal body Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 18. (a) A county, city, town, or nonmunicipal civil taxing unit may pledge its general purpose revenue to the payment of bonds or to lease payments for:

(1) any purpose of the unit;

(2) any purpose of another governmental entity located in any part in the county, including a governmental entity organized on a regional basis; or

(3) any purpose for which general purpose revenue may be used by the unit under this chapter.

(b) The pledge must be approved in an ordinance adopted by the fiscal body of the political subdivision.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.141.

IC 6-3.6-6-19Authorization for a civil taxing unit to distribute its certified shares to another governmental entity; procedures Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 19. (a) A civil taxing unit may distribute any part of its certified shares to any governmental entity located in any part of its county to:

(1) carry out a joint purpose; or

(2) fund the purposes of the other governmental entity;

including a governmental entity organized on a regional basis to serve an area in more than one (1) county.

(b) The distribution must be authorized by ordinance of the fiscal body of the civil taxing unit to which the revenue is allocated by this chapter. An ordinance must specify the purpose of the designation and its duration.

(c) The fiscal body of the civil taxing unit may direct the county auditor in the ordinance to withhold from the civil taxing unit's allocation the amount that is the subject of the ordinance and distribute the amount directly to the other governmental entity authorized to receive the money.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-6-19Authorization to distribute general purpose revenue to another governmental entity; procedures Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 19. (a) A county, city, town, or nonmunicipal civil taxing unit may distribute any part of its general purpose revenue to any governmental entity located in any part of its county to:

(1) carry out a joint purpose; or

(2) fund the purposes of the other governmental entity;

including a governmental entity organized on a regional basis to serve an area in more than one (1) county.

(b) The distribution must be authorized by ordinance of the fiscal body of the unit to which the revenue is allocated by this chapter. An ordinance must specify the purpose of the designation and its duration.

(c) The fiscal officer of the unit may direct the county auditor in accordance with the ordinance to withhold from the unit's allocation the amount that is the subject of the ordinance and distribute the amount directly to the other governmental entity authorized to receive the money.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.142.

IC 6-3.6-6-20Allocation or distribution of revenue made on the basis of property tax levies or budgets in certain counties Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 20. (a) This section does not apply to distributions of revenue under section 9 of this chapter.

(b) This section applies only to the following:

(1) Any allocation or distribution of revenue under section 3(a)(2) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal January 1, 2017).

(2) Any allocation or distribution of revenue under section 3(a)(3) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal January 1, 2017).

(c) Subject to subsection (b), if a school corporation or civil taxing unit of an adopting county does not impose a property tax levy that is first due and payable in the calendar year preceding the year in which revenue under section 3(a)(2) or 3(a)(3) of this chapter is being allocated or distributed, that school corporation or civil taxing unit is entitled to receive a part of the revenue under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) to be distributed within the county. The fractional amount that such a school corporation or civil taxing unit is entitled to receive each month during that calendar year equals the product of:

(1) the amount of revenue under section 3(a)(2) or 3(a)(3) of this chapter to be distributed on the basis of property tax levies during that month; multiplied by

(2) a fraction. The numerator of the fraction equals the budget of that school corporation or civil taxing unit for the distribution year. The denominator of the fraction equals the aggregate budgets of all school corporations or civil taxing units of that county for the distribution year.

(d) Subject to subsection (b), if for a calendar year a school corporation or civil taxing unit is allocated a part of a county's revenue under section 3(a)(2) or 3(a)(3) of this chapter by subsection (c), the calculations used to determine the shares of revenue of all other school corporations and civil taxing units under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) shall be changed each month for that same year by reducing the amount of revenue to be distributed by the amount of revenue under section 3(a)(2) or 3(a)(3) of this chapter allocated under subsection (c) for that same month. The department of local government finance shall make any adjustments required by this subsection and provide them to the appropriate county auditors.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.20; P.L.197-2016, SEC.55; P.L.85-2017, SEC.26; P.L.247-2017, SEC.22; P.L.9-2024, SEC.191.

IC 6-3.6-6-20Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.20; P.L.197-2016, SEC.55; P.L.85-2017, SEC.26; P.L.247-2017, SEC.22; P.L.9-2024, SEC.191. Repealed by P.L.68-2025, SEC.143.

IC 6-3.6-6-21Ability to contribute certified shares to regional development authority infrastructure fund Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 21. A civil taxing unit may contribute any part of its certified shares to the regional development infrastructure fund established by IC 36-9-43-9. The contribution must be approved in an ordinance adopted by the fiscal body of the political subdivision.

As added by P.L.229-2017, SEC.31.

IC 6-3.6-6-21Ability to contribute general purpose revenue to regional development authority infrastructure fund Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 21. A county, city, town, or nonmunicipal civil taxing unit may contribute any part of its general purpose revenue to the regional development infrastructure fund established by IC 36-9-43-9. The contribution must be approved in an ordinance adopted by the fiscal body of the political subdivision.

As added by P.L.229-2017, SEC.31. Amended by P.L.68-2025, SEC.144.

IC 6-3.6-6-21.2School corporation allocation of local income tax revenue to any fund Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 21.2. A school corporation that receives a distribution of revenue under section 3 of this chapter may allocate the revenue among any of its funds.

As added by P.L.244-2017, SEC.14.

IC 6-3.6-6-21.2Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.244-2017, SEC.14. Repealed by P.L.68-2025, SEC.145.

IC 6-3.6-6-21.3Allocation and distribution of certain revenue; merger of school corporations or civil taxing units Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 21.3. (a) This section:

(1) does not apply to:

(A) distributions made under this chapter to a civil taxing unit for fire protection services within a fire protection territory established under IC 36-8-19; or

(B) distributions of revenue under section 9 of this chapter; and

(2) applies only to the following:

(A) Any allocation or distribution of revenue under section 3(a)(2) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on January 1, 2017).

(B) Any allocation or distribution of revenue under section 3(a)(3) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal on January 1, 2017).

(b) Subject to subsection (a), if two (2) or more:

(1) school corporations; or

(2) civil taxing units;

of an adopting county merge or consolidate to form a single school corporation or civil taxing unit, the school corporation or civil taxing unit that is in existence on January 1 of the current year is entitled to the combined pro rata distribution of the revenue under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) allocated to each applicable school corporation or civil taxing unit in existence on January 1 of the immediately preceding calendar year prior to the merger or consolidation.

(c) The department of local government finance shall make adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.

As added by P.L.137-2024, SEC.10.

IC 6-3.6-6-21.3Allocation and distribution of certain revenue; merger of school corporations or civil taxing units Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 21.3. (a) This section applies to distributions of revenue before January 1, 2029. This section:

(1) does not apply to:

(A) distributions made under this chapter to a civil taxing unit for fire protection services within a fire protection territory established under IC 36-8-19; or

(B) distributions of revenue under section 9 of this chapter (before its repeal); and

(2) applies only to the following:

(A) Any allocation or distribution of revenue under section 3(a)(2) of this chapter (as in effect before July 1, 2028) that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on January 1, 2017).

(B) Any allocation or distribution of revenue under section 3(a)(3) of this chapter (as in effect before July 1, 2028) that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal on January 1, 2017).

(b) Subject to subsection (a), if two (2) or more:

(1) school corporations; or

(2) civil taxing units;

of an adopting county merge or consolidate to form a single school corporation or civil taxing unit, the school corporation or civil taxing unit that is in existence on January 1 of the current year is entitled to the combined pro rata distribution of the revenue under section 3(a)(2) or 3(a)(3) (as in effect before July 1, 2028) of this chapter (as appropriate) allocated to each applicable school corporation or civil taxing unit in existence on January 1 of the immediately preceding calendar year prior to the merger or consolidation.

(c) The department of local government finance shall make adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.

As added by P.L.137-2024, SEC.10. Amended by P.L.68-2025, SEC.146; P.L.157-2026, SEC.131.

IC 6-3.6-6-22Municipal tax rate; applicability Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 22. (a) As used in this section, "municipality" means only a city or town that:

(1) has a population of three thousand five hundred (3,500) or more; and

(2) in the case of a city or town whose population decreased in the most recent federal decennial census from three thousand five hundred (3,500) or more to less than three thousand five hundred (3,500), has elected by ordinance to continue to use its previous population of three thousand five hundred (3,500) or more as set forth in section 23(b)(2) of this chapter for purposes of the allocation determination under section 6.1 of this chapter.

The term does not include a city or town that has made an election under section 23(b)(3) of this chapter.

(b) Beginning after December 31, 2028, the fiscal body of a municipality may by ordinance and subject to subsection (e), impose a local income tax rate on the adjusted gross income of local taxpayers in the municipality that does not exceed one and two-tenths percent (1.2%).

(c) The following apply if a municipality imposes a local income tax rate under this section:

(1) A local income tax rate imposed by a municipality under this section applies only to local taxpayers within the territory of the municipality.

(2) The local income tax is imposed in addition to a tax imposed by the county in which the municipality is located in accordance with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c).

(3) The following provisions of this article apply to a local income tax rate imposed by a municipality under subsection (b):

(A) IC 6-3.6-3 (adoption of the tax), including the effective date of an ordinance under IC 6-3.6-3-3.3.

(B) IC 6-3.6-4 (imposition of the tax), except that IC 6-3.6-4-2 and IC 6-3.6-4-3 do not apply.

(C) IC 6-3.6-8 (administration of the tax).

(4) A local income tax rate imposed by a municipality shall apply to team members and race team members described in IC 6-3.6-2-13(3) on the income derived from services performed as a team member or race team member in the municipality.

(d) The amount of the tax revenue that is from the local income tax rate imposed under this section and that is collected for a calendar year shall be treated as general purpose revenue and must be distributed to the fiscal officer of the municipality that imposed the tax before July 1 of the next calendar year.

(e) A tax rate imposed under subsection (b) expires on December 31, 2031, and on December 31 of each calendar year thereafter. A municipality wishing to continue, increase, or decrease a tax rate for the succeeding year must pass an ordinance to readopt a tax rate in accordance with IC 6-3.6-3-3.3. However, if there are bonds, leases, or other obligations payable from a tax imposed under subsection (b) that remain outstanding and the municipality fails to adopt an ordinance to continue the expenditure tax rate under this subsection, the expenditure tax rate for the municipality for the succeeding year, or until the maturity date of those debt obligations, whichever is sooner, shall be the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of:

(1) the highest annual outstanding debt service;

(2) the highest annual lease payments; and

(3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve;

for the year. This subsection applies regardless of whether there is a modification in the tax rate or the rate is unchanged from the previous year.

(f) A municipality that imposes a local income tax rate under this section shall work with the county to provide the geographic information prescribed by the state GIS officer to the state GIS officer. The required information must be submitted to the state GIS officer in the manner prescribed by the state GIS officer not later than August 1 each year.

As added by P.L.68-2025, SEC.147. Amended by P.L.157-2026, SEC.132.

IC 6-3.6-6-23Determination of population for cities and towns Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 23. (a) This section applies in determining the population of a city or town for the purposes of this chapter.

(b) The following apply:

(1) Except as provided in subdivisions (2) and (3), the population of a city or town is the population of the city or town that is reported by the 2020 federal decennial census.

(2) Beginning after 2032, if the population of a city or town decreases from a population of three thousand five hundred (3,500) or more, as reported by the immediately preceding federal decennial census, to a population of less than three thousand five hundred (3,500), as reported by the most recent federal decennial census, or, if applicable, any corrected population count (as defined in IC 1-1-3.5-1.5) issued for the city or town in the year succeeding the most recent federal decennial census, the fiscal body of the city or town may adopt an ordinance on or before September 1 of the calendar year two (2) years after the most recent federal decennial census to continue to use the population of the city or town as reported by the immediately preceding federal decennial census and the resulting determination for the city or town under section 22 of this chapter, notwithstanding the increase or decrease in its population as reported by the most recent federal decennial census as described in this subdivision. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance.

(3) This subdivision applies only to cities and towns with a population of three thousand five hundred (3,500) or more. Notwithstanding any other provision, a fiscal body of a city or town may adopt an ordinance to elect to be treated as if the city's or town's population is less than three thousand five hundred (3,500) for purposes of a county local income tax rate and distribution under this chapter. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance. An ordinance adopted by a city or town under this subdivision is not revocable and shall expire December 31, 2032.

As added by P.L.68-2025, SEC.148. Amended by P.L.157-2026, SEC.133.

IC 6-3.6-7Chapter 7. Special Purpose Rates

6-3.6-7-0.5Limitation on imposition of tax rate 6-3.6-7-1Legislative findings; policy 6-3.6-7-2Authorization; adoption of special purpose tax rate; limitations 6-3.6-7-3Permitted purposes for special purpose rates; repayment of bonds or leases; balance transfer to county highway fund 6-3.6-7-4Procedures for imposition of special purpose rate; findings and determination of need for the tax; ordinances under former tax recognized 6-3.6-7-5Revenue from special purpose rate treated as additional revenue; may not reduce levy limit or approved rate 6-3.6-7-6Separate accounting of revenue; record keeping 6-3.6-7-7Daviess County; additional rate for county jail facilities; use of additional revenue; balance transfer to county highway fund 6-3.6-7-7.5Decatur County; additional rate for county jail facilities 6-3.6-7-8Elkhart County; additional rate for jail and other criminal justice facilities; use of additional revenue; balance transfer to county highway fund 6-3.6-7-8.5Fountain County; additional rate for county jail facilities 6-3.6-7-8.7Fulton County; additional rate for jail and related buildings and parking facilities; use of additional revenue; county jail revenue fund 6-3.6-7-9Hancock County; library property taxes; allocation of property tax relief rates; replacement credits 6-3.6-7-9Hancock County; library property taxes; allocation of property tax relief rates; replacement credits; transfer 6-3.6-7-10Howard County; additional rate to fund the operation and maintenance of a jail or juvenile detention center 6-3.6-7-11Jackson County; additional rate for jail and juvenile detention center 6-3.6-7-12Jasper County; additional rate for criminal justice facilities; uses; balance transfer to county highway fund 6-3.6-7-12.5Jennings County; additional rate for county jail and related buildings and parking facilities; use of additional revenue; county jail revenue fund 6-3.6-7-13Knox County; additional rate for county jail facilities 6-3.6-7-14Marshall County; additional rate for criminal justice facilities; uses; balance transfer to the county jail fund 6-3.6-7-15Miami County; additional rate for county jail; uses 6-3.6-7-16Monroe County; additional rate to fund the operation and maintenance of a juvenile detention center or facilities providing juvenile services 6-3.6-7-17Perry County; additional rate for county jail and related buildings; uses; balance transfer to the county capital project fund 6-3.6-7-18Pulaski County; additional rate for jail, courthouse, and justice center 6-3.6-7-19Randolph County; additional rate for courthouse, county jail, public safety improvements, and other county facilities; renovation of former county hospital; volunteer fire department 6-3.6-7-19.5Additional rate for Rush County jail and related facilities construction, operation, and maintenance; pledge for bonds; balance transfer to county rainy day fund 6-3.6-7-20Scott County; additional rate for jail facilities 6-3.6-7-21Starke County; additional rate for county jail; uses 6-3.6-7-21.5Additional rate for Tipton County jail and related facilities; pledge for bonds; county facilities revenue fund; balance transfer to county rainy day fund 6-3.6-7-22Union County; additional rate for county courthouse, county jail, and other criminal justice facilities; uses; balance transfer to county rainy day fund 6-3.6-7-23Wayne County; additional rate for county jail; uses; balance transfer to county highway fund 6-3.6-7-24Additional rate in a county that is a member of a regional development authority; uses 6-3.6-7-25Additional rate for jail facilities in a county subject to a federal court order; uses; balance transfer to the county general fund 6-3.6-7-26Additional rate for courthouse in a county that is subject to a federal court order and required to comply with the Americans with Disabilities Act; uses 6-3.6-7-27Delaware County; Hamilton County; Hancock County; Johnson County; Madison County; Marion County; additional rate for public transportation projects 6-3.6-7-27Delaware County; Hamilton County; Hancock County; Johnson County; Madison County; Marion County; additional rate for public transportation projects 6-3.6-7-28Grant County; additional rate for county jail; balance transfer to the county rainy day fund 6-3.6-7-28Grant County; additional rate for county jail; balance transfer to the county rainy day fund

IC 6-3.6-7-0.5Limitation on imposition of tax rateEffective 1-1-2029.

Sec. 0.5. For taxable years beginning after December 31, 2028, a tax rate imposed by a county under this chapter may be imposed on a local taxpayer only if the county could impose the tax rates in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) on the local taxpayer.

As added by P.L.157-2026, SEC.134.

IC 6-3.6-7-1Legislative findings; policy Sec. 1. Maintaining low property tax rates is essential to economic development. The use of a tax imposed for the purposes of this chapter, rather than the use of property taxes, promotes this policy.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-2Authorization; adoption of special purpose tax rate; limitations Sec. 2. An adopting body may impose a tax on the adjusted gross income of local taxpayers in the county served by the adopting body that is a combination of one (1) or more of the tax rates permitted in this chapter in the county served by the adopting body. The total of all tax rates under this chapter in a county may not be greater than the sum of the tax rates specified in this chapter for special purpose projects in the county and may be imposed only for the length of time that rate is permitted under this chapter, including any periods that occurred before the repeal of the former tax law.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.56.

IC 6-3.6-7-3Permitted purposes for special purpose rates; repayment of bonds or leases; balance transfer to county highway fund Sec. 3. (a) A separate tax rate is permitted under this chapter for each of the special purposes set forth in this chapter.

(b) The rate permitted under the section in this chapter authorizing the special purpose tax rate may include a rate to repay bonds issued or leases entered into for the special purpose. However, for a bond or lease entered into after December 31, 2015, the term of the bonds issued (including any refunding bonds) or a lease entered into under this section may not exceed twenty (20) years, unless the section in this chapter authorizing the special purpose tax rate specifies a different term. The adopting body shall provide a notice to the budget agency, the department of local government finance, and the department of state revenue specifying that the date for the termination of the tax rate has occurred.

(c) If the section in this chapter authorizing the special purpose tax rate does not specify what to do with money accumulated from the tax after:

(1) the redemption of bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

the money accumulated shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.57.

IC 6-3.6-7-4Procedures for imposition of special purpose rate; findings and determination of need for the tax; ordinances under former tax recognized Sec. 4. In order to impose a tax under this chapter, an adopting body must adopt an ordinance finding and determining that revenues from the tax are needed for the purposes described in the section under which the tax is imposed. The adoption of an ordinance under the former tax law for a special purpose described in this chapter is considered an ordinance adopted under this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.58.

IC 6-3.6-7-5Revenue from special purpose rate treated as additional revenue; may not reduce levy limit or approved rate Sec. 5. Revenue raised from a tax imposed under this chapter shall be treated as additional revenue and may not be considered by the department of local government finance in determining:

(1) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or

(2) the approved property tax rate for any fund.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-6Separate accounting of revenue; record keeping Sec. 6. A governmental entity to which revenue raised from a tax under this chapter is distributed must segregate the amount raised from the tax in a separate account or fund and maintain sufficient records, as required by the state board of accounts, to demonstrate that the revenue is used only for the purposes for which the tax was imposed.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-7Daviess County; additional rate for county jail facilities; use of additional revenue; balance transfer to county highway fund Sec. 7. (a) This section applies to Daviess County.

(b) Daviess County possesses unique governmental and economic development challenges due to:

(1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business;

(2) an increase in property taxes for taxable years after December 31, 2000, for the construction of a new elementary school; and

(3) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county.

The use of a tax under this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of a tax under this section for the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenue from the tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, remodel, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) To repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(e) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (d)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (d)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (d)(2) may not exceed twenty-five (25) years.

(f) Money accumulated from the tax under this section after:

(1) the redemption of bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-7.5Decatur County; additional rate for county jail facilities Sec. 7.5. (a) This section applies to Decatur County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

(3) Operate and maintain the facilities described in subdivision (1).

(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of:

(1) fifteen-hundredths percent (0.15%);

(2) two-tenths percent (0.2%);

(3) twenty-five hundredths percent (0.25%);

(4) three-tenths percent (0.3%);

(5) thirty-five hundredths percent (0.35%);

(6) four-tenths percent (0.4%);

(7) forty-five hundredths percent (0.45%);

(8) five-tenths percent (0.5%);

(9) fifty-five hundredths percent (0.55%);

(10) six-tenths percent (0.6%); or

(11) sixty-five hundredths percent (0.65%).

The tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate used to pay for the purposes described in subsection (b)(1) and (b)(2) may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(e) The tax rate under this section may be imposed beginning in the year following the year the ordinance is adopted and until the date on which the ordinance adopted under this section is rescinded.

(f) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(g) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(h) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(i) Decatur County possesses unique governmental and economic development challenges and opportunities due to the following:

(1) Deficiencies in the current county jail, including the following:

(A) Lack of facilities to adequately provide mental health services and substance abuse treatment.

(B) Lack of facilities space to allow for some inmates to participate in work release and other community based rehabilitation programs.

(C) Lack of facilities to adequately house and supervise violent offenders.

(D) Lack of adequate facilities to accommodate an increased volume of inmates involved in domestic violence and crimes against children.

(E) Lack of adequate facilities to accommodate an increased number of out-of-state offenders.

(F) Increasing maintenance demands and costs resulting from having aging facilities.

(2) An agricultural based economy, with limited industrial and commercial assessed valuation in the county.

The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(j) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.255-2017, SEC.24.

IC 6-3.6-7-8Elkhart County; additional rate for jail and other criminal justice facilities; use of additional revenue; balance transfer to county highway fund Sec. 8. (a) This section applies to Elkhart County.

(b) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in subsection (c).

(c) Revenue raised from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip:

(A) jail facilities;

(B) juvenile court, detention, and probation facilities;

(C) other criminal justice facilities; and

(D) related buildings and parking facilities;

located in the county, including costs related to the demolition of existing buildings and the acquisition of land.

(2) To repay bonds issued or leases entered into for the purposes described in subdivision (1).

(3) To operate and maintain jail facilities described in subdivision (1)(A) after the purposes described in subdivision (1) are completed and any bonds issued or leases entered into under subdivision (2) are fully paid.

(d) The term of the bonds issued (including any refunding bonds) or a lease entered into under this section may not exceed twenty (20) years.

(e) Money accumulated from a tax under this section that remains after the tax imposed by this section is terminated shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.59.

IC 6-3.6-7-8.5Fountain County; additional rate for county jail facilities Sec. 8.5. (a) This section applies to Fountain County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of not more than fifty-five hundredths percent (0.55%). However, the tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate may be imposed only until the later of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(e) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(f) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(g) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(h) Subject to subsection (i), if the county council determines that the county jail revenue fund established under subsection (f) contains excess reserves, the county council may, before January 1, 2026, adopt a resolution to make a one (1) time transfer from the county jail revenue fund to the county general fund to be used only for emergency management services within the county. The resolution must include the following:

(1) A determination that the county jail revenue fund contains excess reserves and that a transfer from the county jail revenue fund to the county general fund is necessary.

(2) The total amount of excess reserves contained in the county jail revenue fund as of the date the determination is made that the county jail revenue fund contains excess reserves.

(3) The total amount to be transferred from the county jail revenue fund to the county general fund.

(4) The date on which the transfer from the county jail revenue fund to the county general fund will occur.

(i) Prior to adopting a resolution under subsection (h), the county council must adopt a new ordinance under subsection (c) that adjusts the local income tax rate to a rate that:

(1) complies with the limitations described in subsection (c); and

(2) is not greater than the rate necessary to pay for the expenditures incurred for the purposes described in subsection (b).

(j) Fountain County possesses unique governmental and economic development challenges and opportunities related to:

(1) the current county jail; and

(2) a limited industrial and commercial assessed valuation in the county.

The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(k) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.255-2017, SEC.25. Amended by P.L.230-2025, SEC.83.

IC 6-3.6-7-8.7Fulton County; additional rate for jail and related buildings and parking facilities; use of additional revenue; county jail revenue fund Sec. 8.7. (a) This section applies to Fulton County.

(b) Maintaining low property tax rates is essential to economic development, and the use of a tax under this section, as needed in the county, to carry out the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Pay bonds issued or leases entered into for the purposes described in subdivision (1).

(3) Operate and maintain the facilities described in subdivision (1).

(d) If the county council makes the determination set forth in subsection (c), the county council may adopt an ordinance to impose a local income tax rate on the adjusted gross income of local taxpayers that is the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to pay for the purposes described in subsection (c).

(e) The tax rate used to pay for the purposes described in subsection (c)(1) and (c)(2) may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping of the facilities as described in subsection (c) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (c) are fully paid.

(3) The date on which an ordinance adopted under subsection (d) is rescinded.

(f) The tax rate under this section may be imposed beginning in the year following the year the ordinance is adopted and until the date on which the ordinance adopted under this section is rescinded.

(g) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (c) may not exceed twenty-five (25) years.

(h) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(i) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (c).

As added by P.L.184-2018, SEC.4.

IC 6-3.6-7-9Hancock County; library property taxes; allocation of property tax relief rates; replacement credits Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 9. (a) This section applies only to Hancock County.

(b) The county fiscal body may, by ordinance, allocate part of the tax rate imposed under IC 6-3.6-5, not to exceed a tax rate of fifteen hundredths percent (0.15%), to a property tax credit against the property tax liability imposed for public libraries in the county, if all territory in the county is included in a library district. The county treasurer shall establish a library property tax replacement fund to be used only for the purposes described in this section. Tax revenues derived from the part of the tax rate imposed under IC 6-3-5 that is designated for property tax replacement credits under this section shall be deposited in the library property tax replacement fund. Any interest earned on money in the library property tax replacement fund shall be credited to the library property tax replacement fund.

(c) The amount of property tax replacement credits that each public library in the county is entitled to receive during a calendar year under this section equals the lesser of:

(1) the product of:

(A) the amount of revenue deposited by the county auditor in the library property tax replacement fund; multiplied by

(B) a fraction described as follows:

(i) The numerator of the fraction equals the sum of the total property taxes that would have been collected by the public library during the previous calendar year from taxpayers located within the library district if the property tax replacement under this section had not been in effect.

(ii) The denominator of the fraction equals the sum of the total property taxes that would have been collected during the previous year from taxpayers located within the county by all public libraries that are eligible to receive property tax replacement credits under this section if the property tax replacement under this section had not been in effect; or

(2) the total property taxes that would otherwise be collected by the public library for the calendar year if the property tax replacement credit under this section were not in effect.

The department of local government finance shall make any adjustments necessary to account for the expansion of a library district. However, a public library is eligible to receive property tax replacement credits under this section only if it has entered into reciprocal borrowing agreements with all other public libraries in the county. If the total amount of tax revenue deposited by the county auditor in the library property tax replacement fund for a calendar year exceeds the total property tax liability that would otherwise be imposed for public libraries in the county for the year, the excess must remain in the library property tax replacement fund and may be used for library property tax replacement purposes in the following calendar year.

(d) A public library receiving property tax replacement credits under this section shall allocate the credits among each fund for which a distinct property tax levy is imposed in proportion to the property taxes levied for each fund. However, if a public library did not impose a property tax levy during the previous calendar year or did not impose a property tax levy for a particular fund during the previous calendar year, but the public library is imposing a property tax levy in the current calendar year or is imposing a property tax levy for the particular fund in the current calendar year, the department of local government finance shall adjust the amount of property tax replacement credits allocated among the various funds of the public library and shall provide the adjustment to the county auditor. If a public library receiving property tax replacement credits under this section does not impose a property tax levy for a particular fund that is first due and payable in a calendar year in which the property tax replacement credits are being distributed, the public library is not required to allocate to that fund a part of the property tax replacement credits to be distributed to the public library. Notwithstanding IC 6-1.1-20-1.1(a)(1), a public library that receives property tax replacement credits under this section is subject to the procedures for the issuance of bonds set forth in IC 6-1.1-20.

(e) A public library shall treat property tax replacement credits received during a particular calendar year under this section as a part of the public library's property tax levy for each fund for that same calendar year for purposes of fixing the public library's budget and for purposes of the property tax levy limits imposed by IC 6-1.1-18.5.

(f) For the purpose of allocating tax revenue under IC 6-3.6-6 and computing and distributing tax revenue under IC 6-5.5 or IC 6-6-5, the property tax replacement credits that are received under this section shall be treated as though they were property taxes that were due and payable during that same calendar year.

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2023, SEC.14.

IC 6-3.6-7-9Hancock County; library property taxes; allocation of property tax relief rates; replacement credits; transfer Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 9. (a) This section applies only to Hancock County.

(b) The county fiscal body may, by ordinance, allocate part of the tax rate imposed under IC 6-3.6-5 (before its expiration), not to exceed a tax rate of fifteen hundredths percent (0.15%), to a property tax credit against the property tax liability imposed for public libraries in the county, if all territory in the county is included in a library district. The county treasurer shall establish a library property tax replacement fund to be used only for the purposes described in this section. Tax revenues derived from the part of the tax rate imposed under IC 6-3.6-5 (before its expiration) that is designated for property tax replacement credits under this section shall be deposited in the library property tax replacement fund. Any interest earned on money in the library property tax replacement fund shall be credited to the library property tax replacement fund.

(c) The amount of property tax replacement credits that each public library in the county is entitled to receive during a calendar year under this section (before the expiration of IC 6-3.6-5) equals the lesser of:

(1) the product of:

(A) the amount of revenue deposited by the county auditor in the library property tax replacement fund; multiplied by

(B) a fraction described as follows:

(i) The numerator of the fraction equals the sum of the total property taxes that would have been collected by the public library during the previous calendar year from taxpayers located within the library district if the property tax replacement under this section had not been in effect.

(ii) The denominator of the fraction equals the sum of the total property taxes that would have been collected during the previous year from taxpayers located within the county by all public libraries that are eligible to receive property tax replacement credits under this section if the property tax replacement under this section had not been in effect; or

(2) the total property taxes that would otherwise be collected by the public library for the calendar year if the property tax replacement credit under this section were not in effect.

The department of local government finance shall make any adjustments necessary to account for the expansion of a library district. However, a public library is eligible to receive property tax replacement credits under this section only if it has entered into reciprocal borrowing agreements with all other public libraries in the county. If the total amount of tax revenue deposited by the county auditor in the library property tax replacement fund for a calendar year exceeds the total property tax liability that would otherwise be imposed for public libraries in the county for the year, the excess must remain in the library property tax replacement fund and may be used for library property tax replacement purposes in the following calendar year.

(d) A public library receiving property tax replacement credits under this section shall allocate the credits among each fund for which a distinct property tax levy is imposed in proportion to the property taxes levied for each fund. However, if a public library did not impose a property tax levy during the previous calendar year or did not impose a property tax levy for a particular fund during the previous calendar year, but the public library is imposing a property tax levy in the current calendar year or is imposing a property tax levy for the particular fund in the current calendar year, the department of local government finance shall adjust the amount of property tax replacement credits allocated among the various funds of the public library and shall provide the adjustment to the county auditor. If a public library receiving property tax replacement credits under this section does not impose a property tax levy for a particular fund that is first due and payable in a calendar year in which the property tax replacement credits are being distributed, the public library is not required to allocate to that fund a part of the property tax replacement credits to be distributed to the public library. Notwithstanding IC 6-1.1-20-1.1(a)(1), a public library that receives property tax replacement credits under this section is subject to the procedures for the issuance of bonds set forth in IC 6-1.1-20.

(e) A public library shall treat property tax replacement credits received during a particular calendar year under this section as a part of the public library's property tax levy for each fund for that same calendar year for purposes of fixing the public library's budget and for purposes of the property tax levy limits imposed by IC 6-1.1-18.5.

(f) For the purpose of allocating tax revenue under IC 6-3.6-6 and computing and distributing tax revenue under IC 6-5.5 or IC 6-6-5, the property tax replacement credits that are received under this section shall be treated as though they were property taxes that were due and payable during that same calendar year.

(g) The county fiscal body shall adopt a resolution to allow a one (1) time transfer to be made after December 31, 2028, but not later than July 1, 2029, of money from the library property tax replacement fund in an amount equal to the balance of the fund as of December 31, 2028, to be allocated between the:

(1) Hancock County Public Library for deposit in the general fund; and

(2) Fortville Public Library for deposit in the general fund.

The amount shall be allocated between the Hancock County Public Library and Fortville Public Library based on each library's proportional share of the population in each library district compared to the total population in both library districts, based on the most recent federal decennial census. After the county fiscal body adopts a resolution under this subsection, before the transfer may be made, and not later than July 1, 2029, the Hancock County Public Library and Fortville Public Library shall each adopt a substantially similar resolution requesting that the transfer be made and provide certified copies to the county fiscal body. Upon receiving the certified copies, the county fiscal body shall make the transfer under this subsection.

As added by P.L.243-2015, SEC.10. Amended by P.L.239-2023, SEC.14; P.L.68-2025, SEC.149; P.L.157-2026, SEC.135.

IC 6-3.6-7-10Howard County; additional rate to fund the operation and maintenance of a jail or juvenile detention center Sec. 10. (a) This section applies only to Howard County.

(b) Maintaining low property tax rates is essential to economic development, and the use of a tax under this section, as needed in the county, to carry out the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) The county fiscal body may impose a tax rate on the adjusted gross income of local taxpayers that does not exceed twenty-five hundredths percent (0.25%).

(d) Revenues raised from a tax imposed under this section may be used only to fund the county's operation and maintenance of a jail or a juvenile detention center, or both.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.36.

IC 6-3.6-7-11Jackson County; additional rate for jail and juvenile detention center Sec. 11. (a) This section applies only to Jackson County.

(b) For calendar years ending before January 1, 2024, the county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed one-tenth percent (0.1%).

(c) Revenue raised from a tax under this section may be used only for the purposes of funding the operation and maintenance of a jail and juvenile detention center opened after July 1, 1998.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-12Jasper County; additional rate for criminal justice facilities; uses; balance transfer to county highway fund Sec. 12. (a) This section applies only to Jasper County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to:

(1) finance, construct, acquire, improve, renovate, or equip:

(A) jail facilities;

(B) juvenile court, detention, and probation facilities;

(C) other criminal justice facilities; and

(D) related buildings and parking facilities;

located in the county, including costs related to the demolition of existing buildings and the acquisition of land; and

(2) repay bonds issued or leases entered into for the purposes described in subdivision (1).

(c) The county council may, by ordinance, determine that additional local income tax revenue is also needed in the county to operate or maintain any of the facilities described in subsection (b)(1)(A) through (b)(1)(D) that are located in the county. The county council may make a determination under both this subsection and subsection (b).

(d) The county council may impose a tax rate of:

(1) fifteen-hundredths percent (0.15%);

(2) two-tenths percent (0.2%); or

(3) twenty-five hundredths percent (0.25%);

on the adjusted gross income of local taxpayers if the adopting body makes a finding and determination set forth in subsection (b) or (c).

(e) If the county council imposes the tax under this section to pay for the purposes described in both subsections (b) and (c), when:

(1) the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed; and

(2) all bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;

the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities described in subsection (b)(1)(A). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.

(f) The tax imposed under this section may be imposed only until the latest of the following:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.

(2) The date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(g) The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty (20) years.

(h) The county treasurer shall establish a criminal justice facilities revenue fund to be used only for purposes described in this section. Revenue derived from the tax imposed under this section shall be deposited in the criminal justice facilities revenue fund.

(i) Revenue derived from the tax imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for any or all the purposes described in subsection (b).

(j) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (h) after the tax imposed by this section is terminated under subsection (f) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.60.

IC 6-3.6-7-12.5Jennings County; additional rate for county jail and related buildings and parking facilities; use of additional revenue; county jail revenue fund Sec. 12.5. (a) This section applies to Jennings County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

Before the county council may adopt an ordinance and make a determination under this subsection, the county council must first study the feasibility of, the need for, and the desire of contiguous counties to establish a regional single gender jail.

(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of:

(1) fifteen-hundredths percent (0.15%);

(2) two-tenths percent (0.2%);

(3) twenty-five hundredths percent (0.25%);

(4) three-tenths percent (0.3%);

(5) thirty-five hundredths percent (0.35%);

(6) four-tenths percent (0.4%);

(7) forty-five hundredths percent (0.45%);

(8) five-tenths percent (0.5%);

(9) fifty-five hundredths percent (0.55%);

(10) six-tenths percent (0.6%); or

(11) sixty-five hundredths percent (0.65%).

The tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate under this section may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(e) The tax rate under this section may be imposed beginning on the effective date of the ordinance as provided in IC 6-3.6-3-3 and until the date specified in subsection (d).

(f) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(g) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(h) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(i) The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(j) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.184-2018, SEC.5.

IC 6-3.6-7-13Knox County; additional rate for county jail facilities Sec. 13. (a) This section applies only to Knox County.

(b) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(c) Revenue from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, and equip the county jail.

(2) To repay bonds issued or leases entered into for constructing, acquiring, and equipping the county jail.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-14Marshall County; additional rate for criminal justice facilities; uses; balance transfer to the county jail fund Sec. 14. (a) This section applies only to Marshall County.

(b) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in subsection (c).

(c) Revenue raised from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip:

(A) jail facilities;

(B) juvenile court, detention, and probation facilities;

(C) other criminal justice facilities; and

(D) related buildings and parking facilities;

located in the county, including costs related to the demolition of existing buildings and the acquisition of land.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

(d) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (c)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (c)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (c)(2) may not exceed twenty (20) years.

(e) Money accumulated from the tax under this section after the tax imposed by this section is terminated shall be transferred to the county jail fund to be established under subsection (f).

(f) The county auditor shall establish a county jail fund that shall only be used for:

(1) maintenance of a jail facility; and

(2) costs otherwise incurred for the operation of the county jail.

Money in the county jail fund shall not be used to issue new debt or enter into leases, notwithstanding any other sections of this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.38-2021, SEC.45; P.L.157-2026, SEC.136.

IC 6-3.6-7-15Miami County; additional rate for county jail; uses Sec. 15. (a) This section applies only to Miami County.

(b) Miami County possesses unique economic development challenges due to:

(1) underemployment in relation to similarly situated counties; and

(2) the presence of a United States government military base or other military installation that is completely or partially inactive or closed.

Maintaining low property tax rates is essential to economic development, and the use of a tax under this section to carry out the purposes of this section rather than use of property taxes promotes these purposes.

(c) The county fiscal body may impose a tax rate on the adjusted gross income of local taxpayers that is the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to pay the costs of financing, constructing, acquiring, renovating, equipping, operating, and maintaining a county jail.

(d) Revenue raised from a tax imposed under this section may be used only for the purposes of paying the costs of financing, constructing, acquiring, renovating, equipping, operating, and maintaining a county jail, including the repayment of bonds issued, or leases entered into, for financing, constructing, acquiring, renovating, and equipping a county jail.

As added by P.L.243-2015, SEC.10. Amended by P.L.255-2017, SEC.26.

IC 6-3.6-7-16Monroe County; additional rate to fund the operation and maintenance of a juvenile detention center or facilities providing juvenile services Sec. 16. (a) This section applies only to Monroe County.

(b) Maintaining low property tax rates is essential to economic development, and the use of a tax under this section, as needed in the county, to carry out the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) The county fiscal body may impose a tax rate on the adjusted gross income of local taxpayers that does not exceed twenty-five hundredths percent (0.25%).

(d) Revenues raised from a tax imposed under this section may be used only to fund the operation and maintenance of a juvenile detention center and other facilities to provide juvenile services.

As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.37.

IC 6-3.6-7-17Perry County; additional rate for county jail and related buildings; uses; balance transfer to the county capital project fund Sec. 17. (a) This section applies only to Perry County.

(b) Perry County possesses unique governmental and economic development challenges due to:

(1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business; and

(2) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county.

The use of a tax under this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of a tax under this section for the purposes described in this section promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Five-tenths percent (0.5%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenue from a tax imposed under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, remodel, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) To repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(e) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (d)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (d)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (d)(2) may not exceed twenty-five (25) years.

(f) Funds accumulated from a tax under this section after:

(1) the redemption of the bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

shall be transferred to a county capital project fund to be used to finance capital projects within Perry County.

As added by P.L.243-2015, SEC.10. Amended by P.L.38-2021, SEC.46; P.L.137-2024, SEC.11.

IC 6-3.6-7-18Pulaski County; additional rate for jail, courthouse, and justice center Sec. 18. (a) This section applies only to Pulaski County.

(b) For calendar years beginning before January 1, 2021, the county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed three-tenths percent (0.3%). A tax imposed under this subsection expires December 31, 2020.

(c) For calendar years beginning after December 31, 2020, and before January 1, 2036, the county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed three-tenths percent (0.3%). A tax imposed under this subsection expires December 31, 2035.

(d) This subsection applies in the 2020 calendar year. Revenue from a tax imposed under this section may be used only for the purposes of paying the costs of operating and maintaining a jail and justice center.

(e) For calendar years beginning after December 31, 2020, revenue from a calendar year under this section may be used only for the purposes of paying costs of renovating a courthouse or a justice center.

As added by P.L.243-2015, SEC.10. Amended by P.L.153-2020, SEC.1.

IC 6-3.6-7-19Randolph County; additional rate for courthouse, county jail, public safety improvements, and other county facilities; renovation of former county hospital; volunteer fire department Sec. 19. (a) This section applies only to Randolph County.

(b) Randolph County possesses:

(1) unique fiscal challenges to finance the operations of county government due to the county's ongoing obligation to repay amounts received by the county due to an overpayment of the county's certified distribution under IC 6-3.5-1.1-9 (before its repeal) for a prior year; and

(2) unique capital financing needs related to the purposes described in this section.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenues from a tax under this section may be used only for the following purposes:

(1) Financing, constructing, acquiring, renovating, and equipping the county courthouse, and financing and renovating the former county hospital for additional office space, educational facilities, nonsecure juvenile facilities, and other county functions, including the repayment of bonds issued, or leases entered into, for constructing, acquiring, renovating, and equipping the county courthouse and for renovating the former county hospital for additional office space, educational facilities, nonsecure juvenile facilities, and other county functions.

(2) Financing, constructing, acquiring, renovating, and equipping buildings for a volunteer fire department (as defined in IC 36-8-12-2) that provides services in any part of the county.

(3) Financing, constructing, acquiring, and renovating firefighting apparatus or other related equipment for a volunteer fire department (as defined in IC 36-8-12-2) that provides services in any part of the county.

(4) Subject to subsection (e), the following purposes:

(A) Operating the county courthouse.

(B) Financing, constructing, acquiring, renovating, equipping, and operating the county jail, public safety improvements, and other county facilities, including the repayment of bonds issued, or leases entered into, for constructing, acquiring, renovating, and equipping the county jail, public safety improvements, and other county facilities.

(e) Before revenues from a tax under this section may be used for the purposes described in subsection (d)(4), the county fiscal body must adopt an ordinance that:

(1) specifically authorizes the revenue to be used for those purposes; and

(2) recognizes that if the revenues are used for those purposes, the tax rate will continue after the purposes described in subsection (d)(1) through (d)(3) are completed.

As added by P.L.243-2015, SEC.10. Amended by P.L.184-2018, SEC.6.

IC 6-3.6-7-19.5Additional rate for Rush County jail and related facilities construction, operation, and maintenance; pledge for bonds; balance transfer to county rainy day fund Sec. 19.5. (a) This section applies to Rush County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

(3) Operate and maintain the facilities described in subdivision (1).

(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of:

(1) fifteen-hundredths percent (0.15%);

(2) two-tenths percent (0.2%);

(3) twenty-five hundredths percent (0.25%);

(4) three-tenths percent (0.3%);

(5) thirty-five hundredths percent (0.35%);

(6) four-tenths percent (0.4%);

(7) forty-five hundredths percent (0.45%);

(8) five-tenths percent (0.5%);

(9) fifty-five hundredths percent (0.55%); or

(10) six-tenths percent (0.6%).

The tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate used to pay for the purposes described in subsection (b)(1) and (b)(2) may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(e) If the county council imposes a tax under this section to pay for the purposes described in subsection (b)(1) and (b)(2), in the year before the facilities are ready for occupancy, the county council shall by ordinance establish a tax rate at a rate permitted under subsection (c) so that the revenue from the tax rate established under this subsection does not exceed the costs of operating and maintaining the facilities described in subsection (b). The tax rate under this subsection may be imposed beginning in the year following the year the ordinance is adopted and until the date on which the ordinance adopted under this subsection is rescinded.

(f) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(g) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(h) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(i) Rush County possesses unique governmental and economic development challenges and opportunities due to the following:

(1) Deficiencies in the current county jail, including the following:

(A) Aging facilities that have not been significantly improved or renovated since the original construction.

(B) Lack of recreation and medical facilities.

(C) Inadequate line of sight supervision of inmates due to the configuration of the aging jail.

(D) Lack of adequate housing for an increasing female inmate population and for inmates with special needs.

(E) Lack of adequate administrative space.

(F) Increasing maintenance demands and costs resulting from having aging facilities.

(2) A limited industrial and commercial assessed valuation in the county.

The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(j) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.197-2016, SEC.61.

IC 6-3.6-7-20Scott County; additional rate for jail facilities Sec. 20. (a) This section applies only to Scott County.

(b) Scott County is a county in which:

(1) maintaining low property tax rates is essential to economic development; and

(2) the use of additional tax revenues as provided in this section, rather than the use of property taxes, to fund:

(A) the financing, construction, acquisition, improvement, renovation, equipping, operation, or maintenance of jail facilities; and

(B) the repayment of bonds issued or leases entered into for the purposes described in clause (A), except operation or maintenance;

promotes the purpose of maintaining low property tax rates.

(c) The county fiscal body may impose a tax rate on the adjusted gross income of local taxpayers that is the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping the facilities described in subsection (d).

(d) Revenues raised under this section may be used only for the following purposes:

(1) The financing, construction, acquisition, improvement, renovation, equipping, operation, or maintenance of jail facilities.

(2) The repayment of bonds issued or leases entered into for the purposes described in subdivision (1), except operation or maintenance.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-21Starke County; additional rate for county jail; uses Sec. 21. (a) This section applies only to Starke County.

(b) Starke County possesses unique governmental and economic development challenges due to:

(1) the county's predominantly rural geography, demography, and economy;

(2) the county's relatively low tax base and relatively high property tax rates;

(3) the current maximum capacity of the county jail, which was constructed in 1976; and

(4) pending federal class action litigation seeking a mandate to address capacity and living conditions in the county jail.

The use of a tax under this section is necessary for the county to address jail capacity and appropriate inmate living conditions and to maintain low property tax rates essential to economic development. The use of a tax under this section for the purposes described in this section promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Sixty-five hundredths percent (0.65%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenue from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) To repay bonds issued or leases entered into for constructing, acquiring, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(3) To operate and maintain the facilities described in subdivision (1).

(e) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (d)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (d)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (d)(2) may not exceed twenty-five (25) years.

As added by P.L.243-2015, SEC.10. Amended by P.L.230-2025, SEC.84.

IC 6-3.6-7-21.5Additional rate for Tipton County jail and related facilities; pledge for bonds; county facilities revenue fund; balance transfer to county rainy day fund Sec. 21.5. (a) This section applies only to Tipton County.

(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to:

(1) finance the:

(A) construction, acquisition, and equipping of the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs; and

(B) improvement, renovation, remodeling, repair, and equipping of the courthouse to address security concerns and mitigate excess moisture in the courthouse;

(2) repay bonds issued or leases entered into for the purposes described in subdivision (1); and

(3) subject to subsection (i), operate and maintain facilities described in subdivision (1).

(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of:

(1) fifteen-hundredths percent (0.15%);

(2) two-tenths percent (0.2%);

(3) twenty-five hundredths percent (0.25%);

(4) three-tenths percent (0.3%);

(5) thirty-five hundredths percent (0.35%); or

(6) four-tenths percent (0.4%).

The tax rate may not be imposed at a rate greater than is necessary to pay for the purposes described in subsection (b).

(d) The tax imposed under this section may be imposed only until the latest of the following dates:

(1) The date on which the financing for constructing, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) is completed.

(2) The last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded. However, this subdivision applies only if an ordinance has been adopted and is in effect under subsection (i).

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty (20) years.

(e) The county treasurer shall establish a county facilities revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county facilities revenue fund.

(f) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible ad valorem property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(g) Tipton County possesses unique governmental and economic development challenges and opportunities due to:

(1) the county's heavy agricultural base;

(2) deficiencies in the current county jail, including:

(A) overcrowding;

(B) lack of program and support space for efficient jail operations;

(C) inadequate line of sight supervision of inmates, due to current jail configuration;

(D) lack of adequate housing for an increasing female inmate population and inmates with special needs;

(E) lack of adequate administrative space; and

(F) increasing maintenance demands and costs resulting from having aging facilities;

(3) the presence of a large industrial employer that offers the opportunity to expand the income tax base; and

(4) the presence of the historic Tipton County jail and sheriff's home, listed on the National Register of Historic Places.

The use of local income tax revenue as provided in this section is necessary for the county to provide adequate jail facilities in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.

(h) Money accumulated from the local income tax rate imposed under this section after:

(1) the redemption of bonds issued;

(2) the final payment of lease rentals due under a lease entered into under this section; and

(3) the termination of the tax under this section;

shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

(i) Before revenues from a tax under this section may be used for the purposes described in subsection (b)(3), the county council must adopt an ordinance that:

(1) specifically authorizes the revenue to be used for those purposes; and

(2) recognizes that if the revenues are used for those purposes, the tax rate will continue after the purposes described in subsection (b)(1) through (b)(2) are completed.

As added by P.L.197-2016, SEC.62. Amended by P.L.184-2018, SEC.7.

IC 6-3.6-7-22Union County; additional rate for county courthouse, county jail, and other criminal justice facilities; uses; balance transfer to county rainy day fund Sec. 22. (a) This section applies only to Union County.

(b) Union County possesses unique economic development challenges due to:

(1) the county's heavy agricultural base;

(2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and

(3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.

Maintaining low property tax rates is essential to economic development. The use of a tax under this section for the purposes described in this section, rather than the use of property taxes, promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenue raised from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip the county courthouse.

(2) To repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.

(3) Subject to subsection (g), for the following purposes:

(A) To operate the county courthouse.

(B) To finance, construct, acquire, improve, renovate, equip, or operate:

(i) the county jail; or

(ii) other county criminal justice facilities.

(C) To repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping:

(i) the county jail; or

(ii) other county criminal justice facilities.

(e) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the following conditions are satisfied:

(A) The purposes described in subsection (d)(1) are completed.

(B) If an ordinance has been adopted and is in effect under subsection (g), the county fiscal body adopts an ordinance to repeal the tax imposed on the adjusted gross income of local taxpayers under subsection (c).

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (d)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (d)(2) may not exceed twenty-two (22) years.

(f) Funds accumulated from a tax under this section after:

(1) the redemption of the bonds issued;

(2) the final payment of lease rentals due under a lease entered into under this section; or

(3) the adoption of an ordinance to repeal the tax imposed under this section;

shall be transferred to the county rainy day fund established under IC 36-1-8-5.1.

(g) Before revenues from a tax under this section may be used for the purposes described in subsection (d)(3), the county fiscal body must adopt an ordinance that:

(1) specifically authorizes the revenue to be used for those purposes; and

(2) recognizes that if the revenues are used for those purposes, the tax rate will continue after the purposes described in subsection (d)(1) through (d)(2) are completed.

As added by P.L.243-2015, SEC.10. Amended by P.L.184-2018, SEC.8; P.L.10-2019, SEC.39.

IC 6-3.6-7-23Wayne County; additional rate for county jail; uses; balance transfer to county highway fund Sec. 23. (a) This section applies only to Wayne County.

(b) Wayne County possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development, and the use of a tax under this section to pay any bonds issued or leases entered into to carry out the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed twenty-five hundredths percent (0.25%).

(d) Revenue raised from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

(2) To repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

(e) The tax imposed under this section may be imposed only until the later of the date on which the financing, acquisition, improvement, renovation, and equipping described in this section are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in this section are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under this section may not exceed twenty (20) years.

(f) Notwithstanding any other law, funds accumulated from the tax imposed under this section after:

(1) the redemption of bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-24Additional rate in a county that is a member of a regional development authority; uses Sec. 24. (a) This section applies only to a county that is a member of a regional development authority under IC 36-7.6.

(b) The adopting body for the county may impose a tax rate on the adjusted gross income tax of local taxpayers that is not greater than:

(1) in the case of a county described in IC 36-7.6-4-2(c)(2), twenty-five thousandths of one percent (0.025%); or

(2) in the case of any other county to which this section applies, five-tenths of one percent (0.50%). The tax rate under this subdivision plus the tax rate imposed under IC 6-3.6-6 may not exceed the tax rate specified in IC 6-3.6-6-2.

(c) The revenue from a tax under this section may be used only for the purpose of transferring the revenue in the regional development authority under IC 36-7.6.

As added by P.L.243-2015, SEC.10. Amended by P.L.10-2019, SEC.40; P.L.165-2021, SEC.92.

IC 6-3.6-7-25Additional rate for jail facilities in a county subject to a federal court order; uses; balance transfer to the county general fund Sec. 25. (a) This section applies only to a county that:

(1) operates a county jail that is subject to an order that:

(A) was issued by a federal district court before January 1, 2003; and

(B) has not been terminated;

(2) operates a county jail that fails to meet:

(A) American Correctional Association Jail Construction Standards; and

(B) Indiana jail operation standards adopted by the department of correction; and

(3) has insufficient revenue to finance the construction, acquisition, improvement, renovation, and equipping of a county jail and related buildings and parking facilities.

(b) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development. The use of a tax under this section for the purposes of this section, rather than the use of property taxes, promotes these purposes.

(c) For purposes of this section, "county jail" includes any other penal facility that is:

(1) located in; and

(2) operated by;

the county.

(d) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(e) Revenue from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

(2) To repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

(f) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (e)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (e)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (e)(2) may not exceed thirty (30) years.

(g) Funds accumulated from the tax under this section after:

(1) the redemption of bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

shall be transferred to the county general fund.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-26Additional rate for courthouse in a county that is subject to a federal court order and required to comply with the Americans with Disabilities Act; uses Sec. 26. (a) This section applies to a county that:

(1) operates a courthouse that is subject to an order that:

(A) is issued by a federal district court;

(B) applies to an action commenced before January 1, 2003; and

(C) requires the county to comply with the federal Americans with Disabilities Act; and

(2) has insufficient revenues to finance the construction, acquisition, improvement, renovation, equipping, and operation of the courthouse facilities and related facilities.

(b) A county described in this section possesses unique fiscal challenges in financing, renovating, equipping, and operating the county courthouse facilities and related facilities because the county consistently has one (1) of the highest unemployment rates in Indiana. Maintaining low property tax rates is essential to economic development in the county. The use of a tax under this section for the purposes of this section promotes these purposes.

(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

(d) Revenue from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, equip, or operate the county courthouse or related facilities.

(2) To repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, equipping, or operating the county courthouse or related facilities.

(3) To pay for economic development projects described in the county's capital improvement plan.

(e) Funds accumulated from a tax under this section or any other revenues of the county may be deposited into a nonreverting fund of the county to be used for operating costs of the courthouse facilities, juvenile detention facilities, or related facilities.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-7-27Delaware County; Hamilton County; Hancock County; Johnson County; Madison County; Marion County; additional rate for public transportation projects Note: This version of section effective until 1-1-2028. See also following version of this section, effective 1-1-2028.

Sec. 27. (a) This section applies only to an eligible county, as defined in IC 8-25-1-4.

(b) If the voters of the county approve a local public question under IC 8-25-2, the fiscal body of the county may adopt an ordinance to provide for the use of local income tax revenues attributable to an additional tax rate imposed under IC 6-3.6-6 to fund a public transportation project under IC 8-25. However, a county fiscal body shall adopt an ordinance under this subsection if required by IC 8-25-6-10 to impose an additional tax rate on the county taxpayers (as defined in IC 8-24-1-10) who reside in a township in which the voters approve a public transportation project in a local public question held under IC 8-25-6. An ordinance adopted under this subsection must specify an additional tax rate to be imposed in the county (or township in the case of an additional rate required by IC 8-25-6-10) of at least one-tenth percent (0.1%), but not more than twenty-five hundredths percent (0.25%). If an ordinance is adopted under this subsection, the amount of the certified distribution attributable to the additional tax rate imposed under this subsection must be:

(1) retained by the county auditor;

(2) deposited in the county public transportation project fund established under IC 8-25-3-7; and

(3) used for the purpose provided in this subsection instead of as a property tax replacement distribution.

(c) The tax rate under this section plus the tax rate under IC 6-3.6-6 may not exceed the tax rate specified in IC 6-3.6-6-2.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.63.

IC 6-3.6-7-27Delaware County; Hamilton County; Hancock County; Johnson County; Madison County; Marion County; additional rate for public transportation projects Note: This version of section effective 1-1-2028. See also preceding version of this section, effective until 1-1-2028.

Sec. 27. (a) This section applies only to an eligible county, as defined in IC 8-25-1-4.

(b) If the voters of the county approve a local public question under IC 8-25-2, the fiscal body of the county may adopt an ordinance to provide for the use of local income tax revenues to fund a public transportation project under IC 8-25. However, a county fiscal body shall adopt an ordinance under this subsection if required by IC 8-25-6-10 to impose an additional tax rate on the county taxpayers (as defined in IC 8-24-1-10) who reside in a township in which the voters approve a public transportation project in a local public question held under IC 8-25-6. An ordinance adopted under this subsection must specify an additional tax rate to be imposed in the county (or township in the case of an additional rate required by IC 8-25-6-10) of at least one-tenth percent (0.1%), but not more than twenty-five hundredths percent (0.25%). If an ordinance is adopted under this subsection, the amount of the certified distribution attributable to the additional tax rate imposed under this subsection must be:

(1) retained by the county auditor;

(2) deposited in the county public transportation project fund established under IC 8-25-3-7; and

(3) used for the purpose provided in this subsection instead of as a property tax replacement distribution.

(c) The tax rate under this section may not be considered for purposes of determining the maximum allowable tax rate specified in IC 6-3.6-6-2.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.63; P.L.157-2026, SEC.137.

IC 6-3.6-7-28Grant County; additional rate for county jail; balance transfer to the county rainy day fund Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 28. (a) This section applies to Grant County and only if the local income tax council repeals provisions of its local income tax ordinance providing that under IC 6-3.6-10-2(7) one-hundredth of one percent (0.01%) of the county's special purpose rate revenue is used to fund the Grant County Economic Growth Council, Inc.

(b) The local income tax council may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1)

(c) If the local income tax council makes the determination set forth in subsection (b), the local income tax council may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Five-tenths percent (0.5%).

(2) The rate necessary to carry out the purposes described in this section.

The tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate used to pay for the purposes described in subsection (b)(1) and (b)(2) may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(e) The tax rate under this section may be imposed beginning in the year following the year the ordinance is adopted and until the date on which the ordinance adopted under this section is rescinded.

(f) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(g) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(h) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(i) Grant County possesses unique governmental challenges and opportunities due to deficiencies in the current county jail. The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(j) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.137-2024, SEC.12. Amended by P.L.136-2024, SEC.30.

IC 6-3.6-7-28Grant County; additional rate for county jail; balance transfer to the county rainy day fund Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 28. (a) This section applies to Grant County and only if the county adopting body repeals provisions of its local income tax ordinance providing that under IC 6-3.6-10-2(7) one-hundredth of one percent (0.01%) of the county's special purpose rate revenue is used to fund the Grant County Economic Growth Council, Inc.

(b) The county adopting body may, by ordinance, determine that additional local income tax revenue is needed in the county to do the following:

(1) Finance, construct, acquire, improve, renovate, and equip the county jail, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

(2) Repay bonds issued or leases entered into for the purposes described in subdivision (1).

(c) If the county adopting body makes the determination set forth in subsection (b), the county adopting body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Five-tenths percent (0.5%).

(2) The rate necessary to carry out the purposes described in this section.

The tax rate may not be greater than the rate necessary to pay for the purposes described in subsection (b).

(d) The tax rate used to pay for the purposes described in subsection (b)(1) and (b)(2) may be imposed only until the latest of the following dates:

(1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping of the facilities as described in subsection (b) are completed.

(2) The date on which the last of any bonds issued (including refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b) are fully paid.

(3) The date on which an ordinance adopted under subsection (c) is rescinded.

(e) The tax rate under this section may be imposed beginning in the year following the year the ordinance is adopted and until the date on which the ordinance adopted under this section is rescinded.

(f) The term of a bond issued (including any refunding bond) or a lease entered into under subsection (b) may not exceed twenty-five (25) years.

(g) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. Local income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund.

(h) Local income tax revenues derived from the tax rate imposed under this section:

(1) may be used only for the purposes described in this section;

(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and

(3) may be pledged to the repayment of bonds issued or leases entered into for the purposes described in subsection (b).

(i) Grant County possesses unique governmental challenges and opportunities due to deficiencies in the current county jail. The use of local income tax revenues as provided in this section is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of local income tax revenues as provided in this section to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping of the facilities described in subsection (b), rather than the use of property taxes, promotes those purposes.

(j) Money accumulated from the local income tax rate imposed under this section after the termination of the tax under this section shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

As added by P.L.137-2024, SEC.12. Amended by P.L.136-2024, SEC.30; P.L.68-2025, SEC.150.

IC 6-3.6-8Chapter 8. Administration of Tax

6-3.6-8-1Determination of tax rates; different tax rates in a taxable year 6-3.6-8-2Tax liability; determination when tax is not in effect during entire taxable year 6-3.6-8-3County residency and place of business or employment; determination 6-3.6-8-3County or municipality residency; determination 6-3.6-8-4Reciprocity agreements for exemption from tax; local governmental entities 6-3.6-8-4Reciprocity agreements for exemption from tax; local governmental entities 6-3.6-8-5Adjusted gross income tax provisions; applicability; employer's withholding report 6-3.6-8-5Adjusted gross income tax provisions; applicability; employer's withholding report 6-3.6-8-6Credit; taxes imposed by a governmental entity outside Indiana 6-3.6-8-7Perry County; adjusted gross income earned in an adjacent county located in another state 6-3.6-8-7Perry County; adjusted gross income earned in an adjacent county located in another state 6-3.6-8-8Repealed

IC 6-3.6-8-1Determination of tax rates; different tax rates in a taxable year Sec. 1. If for any taxable year a local taxpayer is subject to different tax rates for the tax imposed by a particular county, the taxpayer's tax rate for that county and that taxable year is the rate determined in the last STEP of the following STEPS:

STEP ONE: For each tax rate in effect in a year, multiply:

(A) the number of months in the taxpayer's taxable year in which the rate is in effect; by

(B) the rate.

STEP TWO: Divide:

(A) the sum of the amounts determined under STEP ONE; by

(B) twelve (12).

As added by P.L.243-2015, SEC.10.

IC 6-3.6-8-2Tax liability; determination when tax is not in effect during entire taxable year Sec. 2. If the tax is not in effect during a local taxpayer's entire taxable year, the amount of tax that the local taxpayer owes for that taxable year equals the product of:

(1) the amount of tax the local taxpayer would owe if the tax had been imposed during the local taxpayer's entire taxable year; multiplied by

(2) a fraction equal to:

(A) the number of days in the local taxpayer's taxable year during which the tax was in effect; divided by

(B) the total number of days in the local taxpayer's taxable year.

However, if the taxpayer files state income tax returns on a calendar year basis, the fraction to be applied under this section is one-half (1/2).

As added by P.L.243-2015, SEC.10.

IC 6-3.6-8-3County residency and place of business or employment; determination Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 3. (a) For purposes of this article, an individual shall be treated as a resident of the county in which the individual:

(1) maintains a home, if the individual maintains only one (1) home in Indiana;

(2) if subdivision (1) does not apply, is registered to vote;

(3) if subdivision (1) or (2) does not apply, registers the individual's personal automobile; or

(4) spent more of the individual's time in Indiana during the taxable year in question compared to any other county, if subdivision (1), (2), or (3) does not apply.

(b) The residence or principal place of business or employment of an individual is to be determined on January 1 of the calendar year in which the individual's taxable year commences. If an individual changes the location of the individual's residence or principal place of employment or business to another county in Indiana during a calendar year, the individual's liability for tax is not affected.

(c) Notwithstanding subsection (b), if an individual becomes a local taxpayer for purposes of IC 36-7-27 during a calendar year because the individual:

(1) changes the location of the individual's residence to a county in which the individual begins employment or business at a qualified economic development tax project (as defined in IC 36-7-27-9); or

(2) changes the location of the individual's principal place of employment or business to a qualified economic development tax project and does not reside in another county in which a tax is in effect;

the individual's adjusted gross income attributable to employment or business at the qualified economic development tax project is taxable only by the county containing the qualified economic development tax project.

As added by P.L.243-2015, SEC.10. Amended by P.L.157-2026, SEC.138.

IC 6-3.6-8-3County or municipality residency; determination Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 3. (a) For purposes of this article, an individual shall be treated as a resident of the county (or the municipality in the case of a local income tax imposed under IC 6-3.6-6-22) in which the individual:

(1) maintains a home, if the individual maintains only one (1) home in Indiana;

(2) if subdivision (1) does not apply, is registered to vote;

(3) if subdivision (1) or (2) does not apply, registers the individual's personal automobile; or

(4) spent more of the individual's time in Indiana during the taxable year in question compared to any other county, if subdivision (1), (2), or (3) does not apply.

(b) The residence of an individual is to be determined on January 1 of the calendar year in which the individual's taxable year commences. If an individual changes the location of the individual's residence to another county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22) in Indiana during a calendar year, the individual's liability for tax is not affected.

(c) Notwithstanding subsection (b), if an individual becomes a local taxpayer for purposes of IC 36-7-27 during a calendar year because the individual changes the location of the individual's residence to a county or municipality in which the individual begins employment or business at a qualified economic development tax project (as defined in IC 36-7-27-9), the individual's adjusted gross income attributable to employment or business at the qualified economic development tax project is taxable only by the county or municipality containing the qualified economic development tax project.

(d) In determining residency for purposes of a local income tax imposed under IC 6-3.6-6-2(b)(4) or IC 6-3.6-6-22, the following apply:

(1) The criteria in subsection (a)(1) through (a)(4) must be applied to municipalities and the parts of a county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4).

(2) If an individual meets the criteria in subsection (a)(1) through (a)(3) for an area in the county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4), the individual is considered a resident of that area of the county and is subject to a tax rate imposed under IC 6-3.6-6-2(b)(4).

(3) If an individual is a resident of the county pursuant to subsection (a)(4), the:

(A) time spent in all areas within the county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4) shall be aggregated; and

(B) determination of the individual's residence within the county shall be determined solely by the time spent in the municipality (or part of the county) and the parts of a county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4).

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.151; P.L.157-2026, SEC.138; P.L.157-2026, SEC.139.

IC 6-3.6-8-4Reciprocity agreements for exemption from tax; local governmental entities Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4. (a) Using procedures provided under this chapter, the adopting body of any adopting county may pass an ordinance to enter into reciprocity agreements with the taxing authority of any city, town, municipality, county, or other similar local governmental entity of any other state. The reciprocity agreements must provide that the income of resident local taxpayers is exempt from income taxation by the other local governmental entity to the extent income of the residents of the other local governmental entity is exempt from the tax in the adopting county.

(b) A reciprocity agreement adopted under this section may not become effective until it is also made effective in the other local governmental entity that is a party to the agreement.

(c) The form and effective date of any reciprocity agreement described in this section must be approved by the department.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-8-4Reciprocity agreements for exemption from tax; local governmental entities Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4. (a) Using procedures provided under this chapter, the adopting body of any adopting county or municipality may pass an ordinance to enter into reciprocity agreements with the taxing authority of any city, town, municipality, county, or other similar local governmental entity of any other state. The reciprocity agreements must provide that the income of resident local taxpayers is exempt from income taxation by the other local governmental entity to the extent income of the residents of the other local governmental entity is exempt from the tax in the adopting county or municipality.

(b) A reciprocity agreement adopted under this section may not become effective until it is also made effective in the other local governmental entity that is a party to the agreement.

(c) The form and effective date of any reciprocity agreement described in this section must be approved by the department.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.152.

IC 6-3.6-8-5Adjusted gross income tax provisions; applicability; employer's withholding report Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 5. (a) Except as otherwise provided in subsection (b) and the other provisions of this article, all provisions of the adjusted gross income tax law (IC 6-3) concerning:

(1) definitions;

(2) declarations of estimated tax;

(3) filing of returns;

(4) deductions or exemptions from adjusted gross income;

(5) remittances;

(6) incorporation of the provisions of the Internal Revenue Code;

(7) penalties and interest; and

(8) exclusion of military pay credits for withholding;

apply to the imposition, collection, and administration of the tax imposed by this article.

(b) IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do not apply to the tax imposed by this article.

(c) Notwithstanding subsections (a) and (b), each employer shall report to the department of state revenue the amount of withholdings attributable to each county. This report shall be submitted to the department of state revenue:

(1) each time the employer remits to the department the tax that is withheld; and

(2) annually along with the employer's annual withholding report.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.64.

IC 6-3.6-8-5Adjusted gross income tax provisions; applicability; employer's withholding report Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 5. (a) Except as otherwise provided in subsection (b) and the other provisions of this article, all provisions of the adjusted gross income tax law (IC 6-3) concerning:

(1) definitions;

(2) declarations of estimated tax;

(3) filing of returns;

(4) deductions or exemptions from adjusted gross income;

(5) remittances;

(6) incorporation of the provisions of the Internal Revenue Code;

(7) penalties and interest; and

(8) exclusion of military pay credits for withholding;

apply to the imposition, collection, and administration of the tax imposed by this article.

(b) IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do not apply to the tax imposed by this article.

(c) Notwithstanding subsections (a) and (b), each employer shall report to the department of state revenue the amount of withholdings attributable to each county (or each municipality in the case of a local income tax imposed under IC 6-3.6-6-22). This report shall be submitted to the department of state revenue:

(1) each time the employer remits to the department the tax that is withheld; and

(2) annually along with the employer's annual withholding report.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.64; P.L.68-2025, SEC.153.

IC 6-3.6-8-6Credit; taxes imposed by a governmental entity outside Indiana Sec. 6. (a) Except as provided in subsection (b), if for a particular taxable year a local taxpayer is liable for an income tax imposed by a county, city, town, or other local governmental entity located outside Indiana, that local taxpayer is entitled to a credit against the tax liability imposed under this article for that same taxable year. The amount of the credit equals the amount of tax imposed by the other governmental entity on income derived from sources outside Indiana and subject to the tax imposed under this article. However, the credit provided by this section may not reduce a local taxpayer's tax liability to an amount less than would have been owed if the income subject to taxation by the other governmental entity had been ignored.

(b) The credit provided by this section does not apply to a local taxpayer to the extent that the other governmental entity provides for a credit to the taxpayer for the amount of taxes owed under this article.

(c) To claim the credit provided by this section, a local taxpayer must provide the department with satisfactory evidence that the taxpayer is entitled to the credit.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-8-7Perry County; adjusted gross income earned in an adjacent county located in another state Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 7. In the case of a local taxpayer who is a resident of Perry County, the term "adjusted gross income" does not include adjusted gross income that is:

(1) earned in a county that is:

(A) located in another state; and

(B) adjacent to the county in which the taxpayer resides; and

(2) subject to an income tax imposed by a county, city, town, or other local governmental entity in the other state.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-8-7Perry County; adjusted gross income earned in an adjacent county located in another state Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 7. In the case of a local taxpayer who is a resident of Perry County, or a resident of a municipality located in Perry County in the case of a local income tax imposed under IC 6-3.6-6-22, the term "adjusted gross income" does not include adjusted gross income that is:

(1) earned in a county that is:

(A) located in another state; and

(B) adjacent to the county in which the taxpayer resides; and

(2) subject to an income tax imposed by a county, city, town, or other local governmental entity in the other state.

As added by P.L.243-2015, SEC.10. Amended by P.L.157-2026, SEC.140.

IC 6-3.6-8-8RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.197-2016, SEC.65.

IC 6-3.6-9Chapter 9. Distribution of Revenue

6-3.6-9-1Budget agency accounting for each county; undistributed amounts 6-3.6-9-1Budget agency accounting for each county; undistributed amounts 6-3.6-9-1.1"State and local income tax holding account" 6-3.6-9-2Repealed 6-3.6-9-3Repealed 6-3.6-9-4Distribution of revenue to a county; amount 6-3.6-9-4Distribution of revenue to a county; amount 6-3.6-9-4.1Adjustments 6-3.6-9-4.1Adjustments 6-3.6-9-5Certified distribution; estimate of certified amount; property tax credits; school distributions; public safety revenue; economic development revenue; certified shares; special purpose revenue 6-3.6-9-5Certified distribution; estimate of certified amount; property tax credits; school distributions; public safety revenue; economic development revenue; certified shares; special purpose revenue 6-3.6-9-6Reduction of certified amount to offset overpayment 6-3.6-9-6Reduction of certified amount to offset overpayment 6-3.6-9-7Adjustment of certified distribution; clerical or mathematical errors 6-3.6-9-7Adjustment of certified distribution; clerical or mathematical errors 6-3.6-9-8Adjustment of certified distribution; tax; tax rate 6-3.6-9-8Repealed 6-3.6-9-8.5Transfer to state for department of state revenue's information technology modernization project 6-3.6-9-8.5Repealed 6-3.6-9-9Summary of calculations used to determine certified distributions; contents 6-3.6-9-9Summary of calculations used to determine certified distributions; contents 6-3.6-9-10Certification of additional information; part of the certified distribution attributable to each tax rate 6-3.6-9-10Certification of additional information; part of the certified distribution attributable to each tax rate 6-3.6-9-11Deadline for summary of calculations; certification of additional information 6-3.6-9-11Deadline for summary of calculations; certification of additional information 6-3.6-9-12Trust account; monthly distributions 6-3.6-9-12Trust account; monthly distributions 6-3.6-9-13Trust account; manner of distributions; warrants 6-3.6-9-13Trust account; manner of distributions; warrants 6-3.6-9-14Trust account; report of account balance 6-3.6-9-14Repealed 6-3.6-9-15Trust account; excess balance; supplemental distribution; amount; allocation 6-3.6-9-15Repealed 6-3.6-9-15Repealed 6-3.6-9-16Allocation and distribution of a county's monthly payment to the appropriate entities 6-3.6-9-16Allocation and distribution of a county's monthly payment to the appropriate entities 6-3.6-9-17Special distribution; permitted expenditures 6-3.6-9-17.5Certified distribution; accounting and transfer requirements 6-3.6-9-17.6General fund funds restrictions; reserve account; certified distribution 6-3.6-9-18Expired 6-3.6-9-19Annual report to each county 6-3.6-9-20State and local income tax holding account 6-3.6-9-21Budget agency accounting for each county based on annual tax returns; undistributed amounts held in state and local income tax holding account; transfer and distribution of amounts

IC 6-3.6-9-1Budget agency accounting for each county; undistributed amounts Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 1. (a) The budget agency shall maintain an accounting for each county imposing a tax based on annual returns filed by or for county taxpayers. Any undistributed amounts so accounted for shall be held in reserve for the respective counties separate from the state general fund.

(b) Undistributed amounts shall be invested by the treasurer of state and the income earned shall be credited to the counties based on each county's undistributed amount.

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.1; P.L.165-2021, SEC.93.

IC 6-3.6-9-1Budget agency accounting for each county; undistributed amounts Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 1. (a) The budget agency shall maintain an accounting for each county imposing a tax based on annual returns filed by or for county taxpayers. Any undistributed amounts so accounted for shall be held in reserve for the respective counties separate from the state general fund.

(b) Undistributed amounts shall be invested by the treasurer of state and the income earned shall be credited to the counties based on each county's undistributed amount.

(c) This section expires December 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.1; P.L.165-2021, SEC.93; P.L.68-2025, SEC.154; P.L.157-2026, SEC.141.

IC 6-3.6-9-1.1"State and local income tax holding account" Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 1.1. As used in this chapter, "state and local income tax holding account" refers to the state and local income tax holding account established by section 20 of this chapter.

As added by P.L.68-2025, SEC.155.

IC 6-3.6-9-2RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.255-2017, SEC.27.

IC 6-3.6-9-3RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.255-2017, SEC.28.

IC 6-3.6-9-4Distribution of revenue to a county; amount Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4. Revenue derived from the imposition of the tax shall, in the manner prescribed by this chapter, be distributed to the county that imposed it. The amount that is to be distributed to a county during an ensuing calendar year equals the amount of tax revenue that the budget agency determines has been:

(1) attributed to that county for a taxable year ending in a calendar year preceding the calendar year in which the determination is made; and

(2) reported on an annual return or amended return filed by or for a county taxpayer and processed by the department in the state fiscal year ending before July 1, or for a federal income tax deadline set after July 1, a date set by the department for a period of not more than sixty (60) days beyond the federal deadline, of the calendar year in which the determination is made.

As added by P.L.243-2015, SEC.10. Amended by P.L.165-2021, SEC.94; P.L.137-2022, SEC.54.

IC 6-3.6-9-4Distribution of revenue to a county; amount Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4. Revenue derived from the imposition of the tax shall, in the manner prescribed by this chapter, be distributed to the county that imposed it. The amount that is to be distributed to a county during an ensuing calendar year equals the amount of tax revenue that the budget agency determines has been:

(1) attributed to that county for a taxable year ending in a calendar year preceding the calendar year in which the determination is made; and

(2) reported on an annual return or amended return filed by or for a county taxpayer and processed by the department in the state fiscal year ending before July 1, or for a federal income tax deadline set after July 1, a date set by the department for a period of not more than sixty (60) days beyond the federal deadline, of the calendar year in which the determination is made;

without adjustment based on the enactment of a tax rate change under IC 6-3.6-6-2 or IC 6-3.6-6-22 in the first preceding calendar year it becomes effective.

As added by P.L.243-2015, SEC.10. Amended by P.L.165-2021, SEC.94; P.L.137-2022, SEC.54; P.L.68-2025, SEC.156.

IC 6-3.6-9-4.1Adjustments Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 4.1. The budget agency shall adjust the amounts determined under section 4 of this chapter for the credits claimed against local income taxes under IC 6-3.6-8-6 and IC 6-3.1-19. The adjustments made by the budget agency may be phased-in over several fiscal years until the credits are fully accounted for.

As added by P.L.165-2021, SEC.95.

IC 6-3.6-9-4.1Adjustments Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 4.1. The budget agency shall adjust the amounts determined under section 4 of this chapter for the credits claimed against local income taxes under IC 6-3.6-8-6 and IC 6-3.1-19. The adjustments made by the budget agency may be phased-in over several calendar years until the credits are fully accounted for.

As added by P.L.165-2021, SEC.95. Amended by P.L.68-2025, SEC.157.

IC 6-3.6-9-5Certified distribution; estimate of certified amount; property tax credits; school distributions; public safety revenue; economic development revenue; certified shares; special purpose revenue Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 5. (a) Before August 2 of each calendar year, the budget agency shall provide to the department of local government finance and the county auditor of each adopting county an estimate of the amount determined under section 4 of this chapter that will be distributed to the county, based on known tax rates. Subject to subsection (c), not later than fifteen (15) days after receiving the estimate of the certified distribution, the department of local government finance shall determine for each taxing unit and notify the county auditor of the estimated amount of property tax credits, school distributions, public safety revenue, economic development revenue, certified shares, and special purpose revenue that will be distributed to the taxing unit under this chapter during the ensuing calendar year. Not later than thirty (30) days after receiving the department's estimate, the county auditor shall notify each taxing unit of the amounts estimated for the taxing unit.

(b) Before October 1 of each calendar year, the budget agency shall certify to the department of local government finance and the county auditor of each adopting county:

(1) the amount determined under section 4 of this chapter; and

(2) the amount of interest in the county's account that has accrued and has not been included in a certification made in a preceding year.

The amount certified is the county's certified distribution for the immediately succeeding calendar year. The amount certified shall be adjusted, as necessary, under sections 6, 7, and 8 of this chapter. Subject to subsection (d), not later than fifteen (15) days after receiving the amount of the certified distribution, the department of local government finance shall determine for each taxing unit and notify the county auditor of the certified amount of property tax credits, school distributions, public safety revenue, economic development revenue, certified shares, and special purpose revenue that will be distributed to the taxing unit under this chapter during the ensuing calendar year. Not later than thirty (30) days after receiving the department's estimate, the county auditor shall notify each taxing unit of the certified amounts for the taxing unit.

(c) This subsection applies to Lake County. When the department of local government finance notifies the county auditor of the estimated amount of property tax credits, school distributions, public safety revenue, economic development revenue, certified shares, and special purpose revenue that will be distributed to the taxing unit under this chapter during the ensuing calendar year, the department of local government finance shall also determine the amount of additional revenue allocated for economic development purposes that will be distributed to each civil taxing unit, reduced by an amount that is equal to the following percentages of the tax revenue that would otherwise be allocated for economic development purposes and distributed to the civil taxing unit:

(1) For Lake County, an amount equal to twenty-five percent (25%).

(2) For Crown Point, an amount equal to ten percent (10%).

(3) For Dyer, an amount equal to fifteen percent (15%).

(4) For Gary, an amount equal to seven and five-tenths percent (7.5%).

(5) For Hammond, an amount equal to fifteen percent (15%).

(6) For Highland, an amount equal to twelve percent (12%).

(7) For Hobart, an amount equal to eighteen percent (18%).

(8) For Lake Station, an amount equal to twenty percent (20%).

(9) For Lowell, an amount equal to fifteen percent (15%).

(10) For Merrillville, an amount equal to twenty-two percent (22%).

(11) For Munster, an amount equal to thirty-four percent (34%).

(12) For New Chicago, an amount equal to one percent (1%).

(13) For Schererville, an amount equal to ten percent (10%).

(14) For Schneider, an amount equal to twenty percent (20%).

(15) For Whiting, an amount equal to twenty-five percent (25%).

(16) For Winfield, an amount equal to fifteen percent (15%).

The department of local government finance shall notify the county auditor of the amounts of the reductions and the remaining amounts to be distributed.

(d) This subsection applies to Lake County. When the department of local government finance notifies the county auditor of the certified amount of property tax credits, school distributions, public safety revenue, economic development revenue, certified shares, and special purpose revenue that will be distributed to the taxing unit under this chapter during the ensuing calendar year, the department of local government finance shall also determine the amount of additional revenue allocated for economic development purposes that will be distributed to each civil taxing unit, reduced by an amount that is equal to the following percentages of the tax revenue that would otherwise be allocated for economic development purposes and distributed to the civil taxing unit:

(1) For Lake County, an amount equal to twenty-five percent (25%).

(2) For Crown Point, an amount equal to ten percent (10%).

(3) For Dyer, an amount equal to fifteen percent (15%).

(4) For Gary, an amount equal to seven and five-tenths percent (7.5%).

(5) For Hammond, an amount equal to fifteen percent (15%).

(6) For Highland, an amount equal to twelve percent (12%).

(7) For Hobart, an amount equal to eighteen percent (18%).

(8) For Lake Station, an amount equal to twenty percent (20%).

(9) For Lowell, an amount equal to fifteen percent (15%).

(10) For Merrillville, an amount equal to twenty-two percent (22%).

(11) For Munster, an amount equal to thirty-four percent (34%).

(12) For New Chicago, an amount equal to one percent (1%).

(13) For Schererville, an amount equal to ten percent (10%).

(14) For Schneider, an amount equal to twenty percent (20%).

(15) For Whiting, an amount equal to twenty-five percent (25%).

(16) For Winfield, an amount equal to fifteen percent (15%).

The department of local government finance shall notify the county auditor of the remaining amounts to be distributed and the amounts of the reductions that will be withheld under IC 6-3.6-11-5.5.

As added by P.L.243-2015, SEC.10. Amended by P.L.184-2016, SEC.22; P.L.257-2019, SEC.71; P.L.259-2019, SEC.8; P.L.32-2021, SEC.13.

IC 6-3.6-9-5Certified distribution; estimate of certified amount; property tax credits; school distributions; public safety revenue; economic development revenue; certified shares; special purpose revenue Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 5. (a) Before October 1 of each calendar year, the budget agency shall certify to the department of local government finance and the county auditor of each adopting county the amount determined under sections 4 and 4.1 of this chapter. The amount certified is the county's certified distribution for the immediately succeeding calendar year. The amount certified shall be adjusted, as necessary, under sections 6 and 7 of this chapter. Subject to subsection (b), not later than thirty (30) days after receiving the amount of the certified distribution, the department of local government finance shall determine for each taxing unit and notify the county auditor of the certified amount that will be distributed to the taxing unit under this chapter during the ensuing calendar year. Not later than thirty (30) days after receiving the department's estimate, the county auditor shall notify each taxing unit of the certified amounts for the taxing unit.

(b) This subsection applies to Lake County. When the department of local government finance notifies the county auditor of the certified amount that will be distributed to the taxing unit under this chapter during the ensuing calendar year, the department of local government finance shall also determine the amount of general purpose revenue allocated for economic development purposes that will be distributed to each civil taxing unit, reduced by an amount that is equal to the following percentages of the tax revenue that would otherwise be allocated for economic development purposes and distributed to the civil taxing unit:

(1) For Lake County, an amount equal to twenty-five percent (25%).

(2) For Crown Point, an amount equal to ten percent (10%).

(3) For Dyer, an amount equal to fifteen percent (15%).

(4) For Gary, an amount equal to seven and five-tenths percent (7.5%).

(5) For Hammond, an amount equal to fifteen percent (15%).

(6) For Highland, an amount equal to twelve percent (12%).

(7) For Hobart, an amount equal to eighteen percent (18%).

(8) For Lake Station, an amount equal to twenty percent (20%).

(9) For Lowell, an amount equal to fifteen percent (15%).

(10) For Merrillville, an amount equal to twenty-two percent (22%).

(11) For Munster, an amount equal to thirty-four percent (34%).

(12) For New Chicago, an amount equal to one percent (1%).

(13) For Schererville, an amount equal to ten percent (10%).

(14) For Schneider, an amount equal to twenty percent (20%).

(15) For Whiting, an amount equal to twenty-five percent (25%).

(16) For Winfield, an amount equal to fifteen percent (15%).

The department of local government finance shall notify the county auditor of the remaining amounts to be distributed and the amounts of the reductions that will be withheld under IC 6-3.6-11-5.5.

(c) This subsection applies to a distribution under IC 6-3.6-6-4.3 of tax revenue raised from a local income tax rate for fire protection and emergency medical services. Before the department of local government finance may certify a distribution, each provider of fire protection and emergency medical services located within a county shall certify to the department of local government finance the boundaries of the service area within the county served by the provider. If a provider does not certify the provider's service area to the department of local government finance, the department of local government finance shall use the most recent certified net assessed valuation submitted by the county auditor pursuant to IC 6-1.1-17-1 for the taxing unit served by the provider to determine the service boundaries for the provider. For purposes of this subsection, the service boundaries of a provider may not include any area served under a mutual aid agreement.

As added by P.L.243-2015, SEC.10. Amended by P.L.184-2016, SEC.22; P.L.257-2019, SEC.71; P.L.259-2019, SEC.8; P.L.32-2021, SEC.13; P.L.68-2025, SEC.158; P.L.157-2026, SEC.142.

IC 6-3.6-9-6Reduction of certified amount to offset overpayment Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 6. The budget agency shall certify an amount less than the amount determined under section 5(b) of this chapter if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-6Reduction of certified amount to offset overpayment Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 6. The budget agency shall certify an amount less than the amount determined under section 5(a) of this chapter if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.159.

IC 6-3.6-9-7Adjustment of certified distribution; clerical or mathematical errors Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 7. The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-7Adjustment of certified distribution; clerical or mathematical errors Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 7. (a) The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.

(b) The budget agency may not reduce, adjust, or modify a certified distribution of a county after it has been presented as part of the report to the budget committee for the immediately succeeding calendar year under section 21 of this chapter, except in the case of clerical and mathematical errors.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.160.

IC 6-3.6-9-8Adjustment of certified distribution; tax; tax rate Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 8. This section applies to a county that imposes, increases, decreases, or rescinds a tax or tax rate under this article before November 1 in the same calendar year in which the budget agency makes a certification under this section. The budget agency shall adjust the certified distribution of a county to provide for a distribution in the immediately following calendar year and in each calendar year thereafter. The budget agency shall provide for a full transition to certification of distributions as provided in section 4(1) through 4(2) of this chapter in the manner provided in section 6 of this chapter. If the county imposes, increases, decreases, or rescinds a tax or tax rate under this article after the date for which a certification under section 5(b) of this chapter is based, the budget agency shall adjust the certified distribution of the county after October 1 and before December 1 of the calendar year. The adjustment must reflect any other adjustment required under sections 6 and 7 of this chapter. The adjusted certification shall be treated as the county's certified distribution for the immediately succeeding calendar year. The budget agency shall certify the adjusted certified distribution to the county auditor for the county and provide the county council with an informative summary of the calculations that revises the informative summary provided in section 9 of this chapter and reflects the changes made in the adjustment.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-8Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.161.

IC 6-3.6-9-8.5Transfer to state for department of state revenue's information technology modernization project Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 8.5. (a) The budget agency shall before February 1, 2018, transfer to the state general fund from each county's trust account established under IC 6-3.6 an amount equal to:

(1) the amount of the county's certified distribution under IC 6-3.6 that is allocated to certified shares under IC 6-3.6-6 for calendar year 2017; multiplied by

(2) five-tenths of one percent (0.5%);

to reimburse the state general fund for expenditures related to the department's information technology modernization project.

(b) To the extent that the balance in a county's trust account is insufficient for the budget agency to make the entire amount of the transfer required under subsection (a) before February 1, 2018, the budget agency shall make any remaining part of the required transfer from the county's trust account in subsequent years on a schedule determined by the budget agency until the entire amount of the required transfer has been made.

As added by P.L.217-2017, SEC.67.

IC 6-3.6-9-8.5Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.217-2017, SEC.67. Repealed by P.L.68-2025, SEC.162.

IC 6-3.6-9-9Summary of calculations used to determine certified distributions; contents Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 9. The budget agency shall provide the adopting body with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:

(1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;

(2) adjustments for over distributions in prior years;

(3) adjustments for clerical or mathematical errors in prior years; and

(4) adjustments for tax rate changes.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.66; P.L.257-2019, SEC.72.

IC 6-3.6-9-9Summary of calculations used to determine certified distributions; contents Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 9. The budget agency shall provide the adopting body with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:

(1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;

(2) adjustments for over distributions in prior years; and

(3) adjustments for clerical or mathematical errors in prior years.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.66; P.L.257-2019, SEC.72; P.L.68-2025, SEC.163.

IC 6-3.6-9-10Certification of additional information; part of the certified distribution attributable to each tax rate Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 10. The budget agency shall also certify information concerning the part of the certified distribution that is attributable to each of the following:

(1) The tax rate imposed under IC 6-3.6-5.

(2) The tax rate imposed under IC 6-3.6-6, separately stating:

(A) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.5;

(B) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.6; and

(C) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.7.

(3) Each tax rate imposed under IC 6-3.6-7.

(4) In the case of Marion County, the local income taxes paid by local taxpayers described in IC 6-3.6-2-13(3).

The amount certified shall be adjusted to reflect any adjustment in the certified distribution under this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.21; P.L.239-2017, SEC.16; P.L.184-2018, SEC.9; P.L.137-2024, SEC.13.

IC 6-3.6-9-10Certification of additional information; part of the certified distribution attributable to each tax rate Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 10. The budget agency shall also certify information concerning the part of the certified distribution that is attributable to each of the following:

(1) The tax rate imposed under IC 6-3.6-5 (before its expiration). This subdivision expires July 1, 2029.

(2) The tax rate imposed under IC 6-3.6-6, separately stating:

(A) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.5 (before its repeal);

(B) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.6 (before its repeal);

(C) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.7 (before its repeal);

(D) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.8 (before its repeal); and

(E) the part of the distribution attributable to a tax rate imposed under IC 6-3.6-6-2.9 (before its repeal).

(3) Each tax rate imposed under IC 6-3.6-7.

(4) In the case of Marion County, the local income taxes paid by local taxpayers described in IC 6-3.6-2-13(3).

The amount certified shall be adjusted to reflect any adjustment in the certified distribution under this chapter.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.21; P.L.239-2017, SEC.16; P.L.184-2018, SEC.9; P.L.137-2024, SEC.13; P.L.68-2025, SEC.164; P.L.157-2026, SEC.143.

IC 6-3.6-9-11Deadline for summary of calculations; certification of additional information Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 11. The information described in sections 9 and 10 of this chapter must be certified to the county auditor, to the fiscal officer of each taxing unit in the county, and to the department of local government finance not later than the later of the following:

(1) October 1 of each calendar year.

(2) Thirty (30) days after the adopting body certifies a new rate to the budget agency.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.67.

IC 6-3.6-9-11Deadline for summary of calculations; certification of additional information Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 11. The information described in sections 9 and 10 of this chapter must be certified to the county auditor, to the fiscal officer of each taxing unit in the county, and to the department of local government finance not later than October 1 of each calendar year.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.67; P.L.68-2025, SEC.165.

IC 6-3.6-9-12Trust account; monthly distributions Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 12. One-twelfth (1/12) of each adopting county's certified distribution for a calendar year shall be distributed from its trust account established under this chapter to the appropriate county treasurer on the first regular business day of each month of that calendar year.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-12Trust account; monthly distributions Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 12. One-twelfth (1/12) of each adopting county's certified distribution for a calendar year shall be distributed:

(1) before January 1, 2029, from its trust account established under this chapter; and

(2) after December 31, 2028, from the state and local income tax holding account established under this chapter;

to the appropriate county treasurer on the first regular business day of each month of that calendar year.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.166; P.L.157-2026, SEC.144.

IC 6-3.6-9-13Trust account; manner of distributions; warrants Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 13. All distributions from a trust account established under this chapter shall be made by warrants issued by the state comptroller to the treasurer of state ordering the appropriate payments.

As added by P.L.243-2015, SEC.10. Amended by P.L.9-2024, SEC.192.

IC 6-3.6-9-13Trust account; manner of distributions; warrants Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 13. (a) All distributions from a trust account established under this chapter shall be made by warrants issued by the state comptroller to the treasurer of state ordering the appropriate payments.

(b) This section expires December 31, 2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.9-2024, SEC.192; P.L.68-2025, SEC.167; P.L.157-2026, SEC.145.

IC 6-3.6-9-14Trust account; report of account balance Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028.

Sec. 14. Before November 2 of each year, the budget agency shall submit a report to each county auditor indicating the balance in the county's trust account as of the cutoff date set by the budget agency.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-14Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.168.

IC 6-3.6-9-15Trust account; excess balance; supplemental distribution; amount; allocation Note: This version of section amended by P.L.230-2025, SEC.85. See also following repeal of this section by P.L.145-2026, SEC.29, effective 1-1-2028, and following repeal of this section by P.L.68-2025, SEC.169, effective 1-1-2029.

Sec. 15. (a) If the budget agency determines that the balance in a county trust account exceeds fifteen percent (15%) (or the percentage set forth in subsection (g), if applicable) of the certified distributions to be made to the county in the determination year, the budget agency shall make a supplemental distribution to the county from the county's trust account. The budget agency shall use the trust account balance as of December 31 of the year that precedes the determination year by two (2) years (referred to as the "trust account balance year" in this section).

(b) A supplemental distribution described in subsection (a) must be:

(1) made at the same time as the determinations are provided to the county auditor under subsection (d)(3); and

(2) allocated in the same manner as certified distributions for the purposes described in this article.

(c) The amount of a supplemental distribution described in subsection (a) is equal to the amount by which:

(1) the balance in the county trust account; minus

(2) the amount of any supplemental or special distribution that has not yet been accounted for in the last known balance of the county's trust account;

exceeds fifteen percent (15%) (or the percentage set forth in subsection (g), if applicable) of the certified distributions to be made to the county in the determination year.

(d) For a county that qualifies for a supplemental distribution under this section in a year, the following apply:

(1) Before February 15, the budget agency shall update the information described in section 9 of this chapter to include the excess account balances to be distributed under this section.

(2) Before May 2, the budget agency shall provide the amount of the supplemental distribution for the county to the department of local government finance and to the county auditor.

(3) The department of local government finance shall determine for the county and each taxing unit within the county:

(A) the amount and allocation of the supplemental distribution attributable to the taxes that were imposed as of December 31 of the trust account balance year, including any specific distributions for that year; and

(B) the amount of the allocation for each of the purposes set forth in this article, using the allocation percentages in effect in the trust account balance year.

The department of local government finance shall provide these determinations to the county auditor before May 16 of the determination year.

(4) Before June 1, the county auditor shall distribute to each taxing unit the amount of the supplemental distribution that is allocated to the taxing unit under subdivision (3). However, for a county with a former tax to provide for a levy freeze under IC 6-3.6-11-1, the supplemental distribution shall first be distributed as determined in any resolution adopted under IC 6-3.6-11-1(d).

For determinations before 2019, the tax rates in effect under and the allocation methods specified in the former income tax laws shall be used for the determinations under subdivision (3).

(e) For any part of a supplemental distribution attributable to property tax credits under a former income tax or IC 6-3.6-5, the adopting body for the county may allocate the supplemental distribution to property tax credits for not more than the three (3) years after the year the supplemental distribution is received.

(f) Any income earned on money held in a trust account established for a county under this chapter shall be deposited in that trust account.

(g) This subsection applies only to counties that contain at least four (4) municipalities (cities or towns) each with a population greater than forty thousand (40,000), as determined by the most recent federal decennial census, in which at least one (1) of those municipalities meets the definition of a qualifying municipality under IC 6-1.1-18.5-31(d). The following percentages apply for purposes of the determinations under subsections (a) and (c):

(1) For the determination year beginning after December 31, 2025, and ending before January 1, 2027, twelve and five-tenths percent (12.5%).

(2) For the determination year beginning after December 31, 2026, and ending before January 1, 2028, ten percent (10%).

(3) For a determination year beginning after December 31, 2027, and ending before January 1, 2029, seven and five-tenths percent (7.5%).

(4) For the determination year beginning after December 31, 2028, and ending before January 1, 2030, five percent (5%).

(5) For the determination year beginning after December 31, 2029, and ending before January 1, 2031, two and one-half percent (2.5%).

(6) For the determination year beginning after December 31, 2030, one percent (1%).

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.2; P.L.257-2019, SEC.73; P.L.239-2023, SEC.15; P.L.230-2025, SEC.85.

IC 6-3.6-9-15Repealed Note: This repeal of section by P.L.145-2026, SEC.29, effective 1-1-2028. See also preceding version of this section amended by P.L.230-2025, SEC.85, and following repeal of this section by P.L.65-2025, SEC.169, effective 1-1-2029.

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.2; P.L.257-2019, SEC.73; P.L.239-2023, SEC.15; P.L.230-2025, SEC.85. Repealed by P.L.145-2026, SEC.29.

IC 6-3.6-9-15Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section by P.L.68-2025, SEC.169, effective 1-1-2029. See also preceding version of this section amended by P.L.230-2025, SEC.85, and preceding repeal of this section by P.L.145-2026, SEC.29, effective 1-1-2028.

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.2; P.L.257-2019, SEC.73; P.L.239-2023, SEC.15; P.L.230-2025, SEC.85. Repealed by P.L.68-2025, SEC.169.

IC 6-3.6-9-16Allocation and distribution of a county's monthly payment to the appropriate entities Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 16. Upon receipt, each monthly payment of a county's certified distribution or supplemental distribution shall be allocated and distributed to the appropriate entities in accordance with this article and the allocation ordinances adopted under this article.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-9-16Allocation and distribution of a county's monthly payment to the appropriate entities Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 16. Upon receipt, each monthly payment of a county's certified distribution shall be allocated and distributed to the appropriate entities in accordance with this article and the allocation ordinances adopted under this article.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.170.

IC 6-3.6-9-17Special distribution; permitted expenditures Sec. 17. (a) As used in this section, "fiscal body" has the meaning set forth in IC 36-1-2-6.

(b) This section refers to a county's trust account maintained under the former local income tax laws set forth in IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 (all as repealed January 1, 2017).

(c) Before May 1, 2016, the budget agency shall make a one (1) time special distribution to each county having a positive balance in the county's trust account as of December 31, 2014.

(d) The amount of the special distribution from a county's trust account is one hundred percent (100%) of the balance in the county's trust account as of December 31, 2014, as determined by the budget agency.

(e) Before May 1, 2016, the budget agency and the department of local government finance shall do the following:

(1) For any county having a positive balance in the county's trust account as of December 31, 2014, determine the amount of the trust account balance as of December 31, 2014 (referred to as the county's trust balance amount).

(2) Determine each taxing unit's share of the county's trust balance amount (referred to as the taxing unit's allocation amount), using the following allocation method for each former tax:

(A) For county adjusted gross income taxes (IC 6-3.5-1.1) (repealed) as follows:

(i) First, the taxing units that would have received property tax replacement credits shall be allocated that part of the county's allocation amount that would have been considered property tax replacements under IC 6-3.5-1.1 (repealed).

(ii) The remaining amount of the county's allocation amount shall be allocated in the same manner as certified shares under IC 6-3.5-1.1 (repealed).

(B) For county option income taxes (IC 6-3.5-6) (repealed), the county's allocation amount shall be allocated in the same manner as certified shares under IC 6-3.5-6 (repealed).

(C) For county economic development income taxes, the county's allocation amount shall be allocated in the same manner as a certified distribution under IC 6-3.5-7-12(b) (repealed) or IC 6-3.5-7-12(c) (repealed), whichever applies.

(f) Before May 1, 2016, the budget agency and the department of local government finance shall jointly determine and provide to the county auditor the following:

(1) The county's trust balance amount.

(2) Each taxing unit's allocation amount.

(g) Before June 1, 2016, the county auditor shall distribute to each taxing unit an amount equal to the taxing unit's allocation amount.

(h) Money distributed to a county, city, or town may be expended only upon an appropriation by the county's, city's, or town's fiscal body as follows:

(1) At least seventy-five percent (75%) of the special distribution must be:

(A) used exclusively by the county, city, or town for:

(i) engineering, land acquisition, construction, resurfacing, maintenance, restoration, or rehabilitation of both local and arterial road and street systems;

(ii) the payment of principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects;

(iii) any local costs required to undertake a recreational or reservoir road project under IC 8-23-5;

(iv) the purchase, rental, or repair of highway equipment;

(v) providing a match for a grant from the local road and bridge matching grant fund under IC 8-23-30; or

(vi) capital projects for aviation related property or facilities, including capital projects of a board of aviation commissioners established under IC 8-22-2 or an airport authority established under IC 8-22-3-1; or

(B) deposited in the county's, city's, or town's rainy day fund established under IC 36-1-8-5.1. The money deposited in a rainy day fund under this clause may not be appropriated from the rainy day fund or transferred to another fund under IC 36-1-8-5.1(g), unless the money will be used exclusively for purposes set forth in clause (A).

(2) The remaining part of the special distribution may be used by the county, city, or town for any of the purposes of the county, city, or town.

The amount received by a taxing unit that is not a county, city, or town shall be deposited in the taxing unit's rainy day fund established under IC 36-1-8-5.1. However, in the case of a school corporation, the school corporation may deposit the amount received in any of its funds.

As added by P.L.126-2016, SEC.3. Amended by P.L.85-2017, SEC.27; P.L.244-2017, SEC.15.

IC 6-3.6-9-17.5Certified distribution; accounting and transfer requirements Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 17.5. After December 31, 2028, the county's certified distribution amount for 2029 shall be maintained in the accounting for the county under section 21 of this chapter and transferred as set forth in section 21 of this chapter.

As added by P.L.68-2025, SEC.171. Amended by P.L.157-2026, SEC.146.

IC 6-3.6-9-17.6General fund funds restrictions; reserve account; certified distribution Sec. 17.6. (a) Notwithstanding any other provision, funds from the state general fund shall not be used to make up a shortfall in the:

(1) reserve account; or

(2) certified distribution.

(b) If a county reserve account runs out of funds for making a certified distribution, funds may not be transferred from the state general fund to the reserve account.

As added by P.L.230-2025, SEC.86.

IC 6-3.6-9-18ExpiredAs added by P.L.199-2017, SEC.2. Amended by P.L.257-2019, SEC.74. Expired 6-30-2022 by P.L.199-2017, SEC.2.

IC 6-3.6-9-19Annual report to each county Sec. 19. Before October 1, 2023, and October 1 of each year thereafter, the state department of revenue shall provide to each county a report for the fiscal year ending in the calendar year of the report. The report shall contain at least the following information:

(1) The number of returns filed by single, joint, and married filing separate status.

(2) The number of returns filed by full-year residents and filers who are not full-year residents.

(3) The amounts billed to county taxpayers for underpayment of tax during the fiscal year.

(4) The amounts collected from county taxpayers for amounts billed prior to the end of the state fiscal year ending in the calendar year of the report.

(5) The amounts reported on the individual lines of the annual returns filed by or for county taxpayers during the fiscal year ending in the calendar year of the report.

If the amounts reported on one (1) or more individual returns can reasonably identify the return information of one (1) or more county taxpayers or can reasonably result in a disclosure not permitted under Section 6103 of the Internal Revenue Code, the department may redact those amounts and such other amounts necessary to prevent the disclosure of the return information of such county taxpayers.

As added by P.L.165-2021, SEC.96. Amended by P.L.9-2022, SEC.9.

IC 6-3.6-9-20State and local income tax holding account Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 20. (a) The state and local income tax holding account is established within the state general fund for the purposes of this chapter. The budget agency shall administer the account. The account consists of the following:

(1) Money transferred to the account under section 21 of this chapter.

(2) Money transferred to the account from any other source.

(3) Interest that accrues from money in the account.

(b) The treasurer of state shall invest the money in the account not currently needed for the purposes of the account in the same manner as other public funds may be invested.

(c) Money in the account is continuously appropriated for the purposes of this chapter.

(d) Money in the account at the end of a state fiscal year does not revert to the state general fund.

(e) Money transferred to the account shall be distributed and allocated as set forth in this chapter.

(f) The budget director shall have the discretion to manage transfers of money into and out of the account based on the current process used for continuous assessment of revenue flows and reconciliation based on the latest data.

As added by P.L.68-2025, SEC.172.

IC 6-3.6-9-21Budget agency accounting for each county based on annual tax returns; undistributed amounts held in state and local income tax holding account; transfer and distribution of amounts Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Effective 7-1-2028.

Sec. 21. (a) The budget agency shall maintain an accounting for each county imposing a tax based on annual returns filed by or for county taxpayers. Beginning after December 31, 2028, any undistributed amounts so accounted shall be held for purposes of the state and local income tax holding account.

(b) After December 1 but before December 31 of each year, the budget agency shall present to the budget committee a report of the following:

(1) An estimate of the monthly certified distribution amounts for the immediately succeeding calendar year.

(2) A description of the method used to determine the monthly estimates under subdivision (1).

(c) Beginning in 2029, and in each calendar year thereafter, the budget agency shall each month transfer to the state and local income tax holding account the amount determined for the month under subsection (b)(1) for distribution under this chapter.

(d) In the case of a county that imposes a tax rate under IC 6-3.6-6-2 or a municipality that imposes a tax rate under IC 6-3.6-6-22 beginning after December 31, 2028, the budget agency shall withhold, from each of the first three (3) annual certified distributions resulting from the tax rate, an amount equal to five percent (5%) of the county's or municipality's, as applicable, annual certified distribution resulting from the tax rate. The amounts withheld under this subsection shall be credited to the respective county's or municipality's trust account.

As added by P.L.68-2025, SEC.173. Amended by P.L.157-2026, SEC.147.

IC 6-3.6-10Chapter 10. Permitted Expenditures

6-3.6-10-1Scope of chapter 6-3.6-10-2Economic development purposes; use of revenue 6-3.6-10-2Economic development purposes; use of revenue 6-3.6-10-3Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly 6-3.6-10-3Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly 6-3.6-10-4Lease of property for economic development projects; procedures; public hearing; findings; sale of leased facility under option to buy 6-3.6-10-5Issuance and sale of obligations of civil taxing unit or lessor 6-3.6-10-5Issuance and sale of obligations of civil taxing unit or lessor 6-3.6-10-6Pledge of revenues; enforceability; covenant by the general assembly 6-3.6-10-6Pledge of revenues; enforceability; covenant by the general assembly 6-3.6-10-7Regional venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; interlocal agreement; administration of the fund 6-3.6-10-8Local venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; administration of the fund 6-3.6-10-9Limitations on bonds, leases, or other obligations incurred after May 9, 2025

IC 6-3.6-10-1Scope of chapter Sec. 1. This chapter is not an exhaustive list of the purposes for which revenue raised under IC 6-3.6-6 may be expended.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-10-2Economic development purposes; use of revenue Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 2. A county, city, or town may use revenue allocated for economic development purposes under IC 6-3.6-6-9 for any combination of the following purposes:

(1) To pay all or a part of the interest owed by a private developer or user on a loan extended by a financial institution or other lender to the developer or user if the proceeds of the loan are or are to be used to finance an economic development project.

(2) For the retirement of bonds for economic development projects.

(3) For leases or for leases or bonds entered into or issued before the date the county economic development income tax (IC 6-3.5-7 repealed) was imposed if the purpose of the lease or bonds would have qualified as a purpose under this article at the time the lease was entered into or the bonds were issued.

(4) The construction or acquisition of, or remedial action with respect to, a capital project for which the unit is empowered to issue general obligation bonds or establish a fund under any statute listed in IC 6-1.1-18.5-9.8.

(5) The retirement of bonds issued under any provision of Indiana law for a capital project.

(6) The payment of lease rentals under any statute for a capital project.

(7) Contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects.

(8) Operating expenses of a governmental entity that plans or implements economic development projects.

(9) Funding of a revolving fund established under IC 5-1-14-14.

(10) For a regional venture capital fund or a local venture capital fund.

(11) For any lawful purpose for which money in any of its other funds may be used.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.23.

IC 6-3.6-10-2Economic development purposes; use of revenue Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 2. A county, city, or town may use revenue allocated for economic development purposes under IC 6-3.6-6 for any combination of the following purposes:

(1) To pay all or a part of the interest owed by a private developer or user on a loan extended by a financial institution or other lender to the developer or user if the proceeds of the loan are or are to be used to finance an economic development project.

(2) For the retirement of bonds for economic development projects.

(3) For leases or for leases or bonds entered into or issued before the date the county economic development income tax (IC 6-3.5-7 repealed) was imposed if the purpose of the lease or bonds would have qualified as a purpose under this article at the time the lease was entered into or the bonds were issued.

(4) The construction or acquisition of, or remedial action with respect to, a capital project for which the unit is empowered to issue general obligation bonds or establish a fund under any statute listed in IC 6-1.1-18.5-9.8.

(5) The retirement of bonds issued under any provision of Indiana law for a capital project.

(6) The payment of lease rentals under any statute for a capital project.

(7) Contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects.

(8) Operating expenses of a governmental entity that plans or implements economic development projects.

(9) Funding of a revolving fund established under IC 5-1-14-14.

(10) For a regional venture capital fund or a local venture capital fund.

(11) For any lawful purpose for which money in any of its other funds may be used.

As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.23; P.L.68-2025, SEC.174.

IC 6-3.6-10-3Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 3. (a) The fiscal body of a county, city, or town may issue bonds payable from revenue under IC 6-3.6-6. The bonds must be for economic development projects.

(b) The fiscal body of a county, city, or town may issue bonds payable from revenue described in section 2 of this chapter for any capital project for which the fiscal body is authorized to issue general obligation bonds. The bonds issued under this section may be payable from the tax if the county option income tax (IC 6-3.5-6 repealed), the county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax under IC 6-3.6-6 is also in effect in the county at the time the bonds are issued.

(c) If there are bonds outstanding that have been issued under this section, or leases in effect under section 4 of this chapter, the adopting body may not reduce the tax imposed under IC 6-3.6-6, or an allocation under IC 6-3.6-6-9, or certified shares pledged to repay bonds, as appropriate, below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service on the bonds to their final maturity, plus the highest annual lease payments, unless:

(1) the body that imposed a tax under IC 6-3.6-6; or

(2) any city, town, or county;

pledges all or a part of its certified shares for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments.

(d) For purposes of subsection (c), the determination of a tax rate sufficient to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments must be based on an average of the immediately preceding three (3) years tax collections, if the tax has been imposed for the last preceding three (3) years. If the tax has not been imposed for the last preceding three (3) years, the body that imposed the tax may not reduce the rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service, plus the highest annual lease payments, based upon a study by a qualified public accountant or financial advisor.

(e) IC 6-1.1-20 does not apply to the issuance of bonds under this section.

(f) Bonds issued under this section may be sold at a public sale in accordance with IC 5-1-11 or may be sold at a negotiated sale.

(g) After a sale of bonds under this section, the county auditor shall prepare a debt service schedule for the bonds.

(h) The general assembly covenants that it will not repeal or amend this article in a manner that would adversely affect owners of outstanding bonds issued, or payment of any lease rentals due, under this section.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-10-3Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 3. (a) The fiscal body of a county, city, or town may issue bonds payable from revenue under IC 6-3.6-6. The bonds must be for economic development projects.

(b) The fiscal body of a county, city, or town may issue bonds payable from revenue described in section 2 of this chapter for any capital project for which the fiscal body is authorized to issue general obligation bonds. The bonds issued under this section may be payable from the tax if the county option income tax (IC 6-3.5-6 repealed), the county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax under IC 6-3.6-6 is also in effect in the county at the time the bonds are issued.

(c) If there are bonds outstanding that have been issued under this section, or leases in effect under section 4 of this chapter, the adopting body may not reduce the tax imposed under IC 6-3.6-6, or an allocation under IC 6-3.6-6, or general purpose revenue pledged to repay bonds, as appropriate, below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service on the bonds to their final maturity, plus the highest annual lease payments, unless:

(1) the body that imposed a tax under IC 6-3.6-6; or

(2) any city, town, or county;

pledges all or a part of its general purpose revenue for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments.

(d) For purposes of subsection (c), the determination of a tax rate sufficient to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments must be based on an average of the immediately preceding three (3) years tax collections, if the tax has been imposed for the last preceding three (3) years. If the tax has not been imposed for the last preceding three (3) years, the body that imposed the tax may not reduce the rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service, plus the highest annual lease payments, based upon a study by a qualified public accountant or financial advisor.

(e) IC 6-1.1-20 does not apply to the issuance of bonds under this section.

(f) Bonds issued under this section may be sold at a public sale in accordance with IC 5-1-11 or may be sold at a negotiated sale.

(g) After a sale of bonds under this section, the county auditor shall prepare a debt service schedule for the bonds.

(h) The general assembly covenants that it will not repeal or amend this article in a manner that would adversely affect owners of outstanding bonds issued, or payment of any lease rentals due, under this section.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.175.

IC 6-3.6-10-4Lease of property for economic development projects; procedures; public hearing; findings; sale of leased facility under option to buy Sec. 4. (a) A county, city, or town may enter into a lease with a leasing body (as defined in IC 5-1-1-1) of any property that could be financed with the proceeds of bonds issued under this chapter with a lessor for a term not to exceed fifty (50) years, and the lease may provide for payments from revenues described in section 2 of this chapter, any other revenue available to the unit, or any combination of these sources.

(b) A lease may provide that payments by the unit to the lessor are required only to the extent and only for the period that the lessor is able to provide the leased facilities in accordance with the lease. The terms of each lease must be based upon the value of the facilities leased and may not create a debt of the unit for purposes of the Constitution of the State of Indiana.

(c) A lease may be entered into by the executive of the unit only after a public hearing at which all interested parties are provided the opportunity to be heard. After the public hearing, the executive may approve the execution of the lease on behalf of the unit if the executive finds that the service to be provided throughout the term of the lease will serve the public purpose of the unit and is in the best interests of its residents. Any lease approved by the executive must also be approved by an ordinance of the fiscal body of the unit.

(d) Upon execution of a lease providing for payments by the unit in whole or in part from revenues described in section 2 of this chapter and upon approval of the lease by the unit's fiscal body, the executive of the unit shall publish notice of the execution of the lease and its approval in accordance with IC 5-3-1.

(e) Except as provided in this section, no approvals of any governmental body or agency are required before the unit enters into a lease under this section.

(f) An action to contest the validity of the lease under this section or to enjoin the performance of any of its terms and conditions must be brought within thirty (30) days after the publication of the notice of the execution and approval of the lease.

(g) If a unit exercises an option to buy a leased facility from a lessor, the unit may subsequently sell the leased facility, without regard to any other statute, to the lessor at the end of the lease term at a price set forth in the lease or at fair market value established at the time of the sale by the executive of the unit through auction, appraisal, or arms length negotiation. If the facility is sold at auction, after appraisal, or through negotiation, the unit shall conduct a hearing after public notice in accordance with IC 5-3-1 before the sale. Any action to contest the sale must be brought within fifteen (15) days of the hearing.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-10-5Issuance and sale of obligations of civil taxing unit or lessor Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 5. Notwithstanding any other law, if a civil taxing unit desires to issue obligations, or enter into leases, payable wholly or in part by the taxes imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5), the obligations of the civil taxing unit or any lessor may be sold at public sale in accordance with IC 5-1-11 or at negotiated sale.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-10-5Issuance and sale of obligations of civil taxing unit or lessor Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 5. Notwithstanding any other law and subject to IC 6-3.6-6-18(b), if a civil taxing unit desires to issue obligations, or enter into leases, payable wholly or in part by the taxes imposed under IC 6-3.6-6 or IC 6-3.6-7, the obligations of the civil taxing unit or any lessor may be sold at public sale in accordance with IC 5-1-11 or at negotiated sale.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.176.

IC 6-3.6-10-6Pledge of revenues; enforceability; covenant by the general assembly Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 6. (a) A pledge of revenues from a tax imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5) is enforceable in accordance with IC 5-1-14.

(b) With respect to obligations for which a pledge has been made under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5), the general assembly covenants with the county and the purchasers or owners of those obligations that this article will not be repealed or amended in any manner that will adversely affect the tax collected under this article as long as the principal of or interest on those obligations is unpaid.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-10-6Pledge of revenues; enforceability; covenant by the general assembly Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 6. (a) A pledge of revenues from a tax imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its expiration) is enforceable in accordance with IC 5-1-14.

(b) With respect to obligations for which a pledge has been made under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its expiration), the general assembly covenants with the county and the purchasers or owners of those obligations that this article will not be repealed or amended in any manner that will adversely affect the tax collected under this article as long as the principal of or interest on those obligations is unpaid.

As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.177.

IC 6-3.6-10-7Regional venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; interlocal agreement; administration of the fund Sec. 7. (a) The general assembly finds that counties and municipalities in Indiana have a need to foster economic development, the development of new technology, and industrial and commercial growth. The general assembly finds that it is necessary and proper to provide an alternative method for counties and municipalities to foster the following:

(1) Economic development.

(2) The development of new technology.

(3) Industrial and commercial growth.

(4) Employment opportunities.

(5) The diversification of industry and commerce.

The fostering of economic development and the development of new technology under this section or section 8 of this chapter for the benefit of the general public, including industrial and commercial enterprises, is a public purpose.

(b) The fiscal bodies of two (2) or more counties or municipalities may, by resolution, do the following:

(1) Determine that part or all of the revenue described in section 2 of this chapter should be combined to foster:

(A) economic development;

(B) the development of new technology; and

(C) industrial and commercial growth.

(2) Establish a regional venture capital fund.

(c) Each unit participating in a regional venture capital fund established under subsection (b) may deposit the following in the fund:

(1) Revenues described in section 2 of this chapter.

(2) The proceeds of public or private grants.

(d) A regional venture capital fund shall be administered by a governing board. The expenses of administering the fund shall be paid from money in the fund. The governing board shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited into the fund. The fund is subject to audit by the state board of accounts under IC 5-11-1. The fund must bear the full costs of the audit.

(e) The fiscal body of each participating unit shall approve an interlocal agreement created under IC 36-1-7 establishing the terms for the administration of the regional venture capital fund. The terms must include the following:

(1) The membership of the governing board.

(2) The amount of each unit's contribution to the fund.

(3) The procedures and criteria under which the governing board may loan or grant money from the fund.

(4) The procedures for the dissolution of the fund and for the distribution of money remaining in the fund at the time of the dissolution.

(f) An interlocal agreement made by the participating units under subsection (e) must provide that:

(1) each of the participating units is represented by at least one (1) member of the governing board; and

(2) the membership of the governing board is established on a bipartisan basis so that the number of the members of the governing board who are members of one (1) political party may not exceed the number of members of the governing board required to establish a quorum.

(g) A majority of the governing board constitutes a quorum, and the concurrence of a majority of the governing board is necessary to authorize any action.

(h) An interlocal agreement made by the participating units under subsection (e) must be submitted to the Indiana economic development corporation for approval before the participating units may contribute to the fund.

(i) A majority of members of a governing board of a regional venture capital fund established under this section must have at least five (5) years of experience in business, finance, or venture capital.

(j) The governing board of the fund may loan or grant money from the fund to a private or public entity if the governing board finds that the loan or grant will be used by the borrower or grantee for at least one (1) of the following economic development purposes:

(1) To promote significant employment opportunities for the residents of the units participating in the regional venture capital fund.

(2) To attract a major new business enterprise to a participating unit.

(3) To develop, retain, or expand a significant business enterprise in a participating unit.

(k) The expenditures of a borrower or grantee of money from a regional venture capital fund that are considered to be for an economic development purpose include expenditures for any of the following:

(1) Research and development of technology.

(2) Job training and education.

(3) Acquisition of property interests.

(4) Infrastructure improvements.

(5) New buildings or structures.

(6) Rehabilitation, renovation, or enlargement of buildings or structures.

(7) Machinery, equipment, and furnishings.

(8) Funding small business development with respect to:

(A) prototype products or processes;

(B) marketing studies to determine the feasibility of new products or processes; or

(C) business plans for the development and production of new products or processes.

As added by P.L.243-2015, SEC.10. Amended by P.L.188-2016, SEC.7; P.L.197-2016, SEC.68; P.L.85-2017, SEC.28.

IC 6-3.6-10-8Local venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; administration of the fund Sec. 8. (a) The fiscal body of a county or municipality may, by resolution, establish a local venture capital fund.

(b) A unit establishing a local venture capital fund under subsection (a) may deposit the following in the fund:

(1) Revenues described in section 2 of this chapter.

(2) The proceeds of public or private grants.

(c) A local venture capital fund shall be administered by a governing board. The expenses of administering the fund shall be paid from money in the fund. The governing board shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited into the fund. The fund is subject to audit by the state board of accounts under IC 5-11-1. The fund must bear the full costs of the audit.

(d) The fiscal body of a unit establishing a local venture capital fund under subsection (a) shall establish the terms for the administration of the local venture capital fund. The terms must include the following:

(1) The membership of the governing board.

(2) The amount of the unit's contribution to the fund.

(3) The procedures and criteria under which the governing board may loan or grant money from the fund.

(4) The procedures for the dissolution of the fund and for the distribution of money remaining in the fund at the time of the dissolution.

(e) A unit establishing a local venture capital fund under subsection (a) must be represented by at least one (1) member of the governing board.

(f) The membership of the governing board must be established on a bipartisan basis so that the number of the members of the governing board who are members of one (1) political party may not exceed the number of members of the governing board required to establish a quorum.

(g) A majority of the governing board constitutes a quorum, and the concurrence of a majority of the governing board is necessary to authorize any action.

(h) The terms established under subsection (d) for the administration of the local venture capital fund must be submitted to the Indiana economic development corporation for approval before a unit may contribute to the fund.

(i) A majority of members of a governing board of a local venture capital fund established under this section must have at least five (5) years of experience in business, finance, or venture capital.

(j) The governing board of the fund may loan or grant money from the fund to a private or public entity if the governing board finds that the loan or grant will be used by the borrower or grantee for at least one (1) of the following economic development purposes:

(1) To promote significant employment opportunities for the residents of the unit establishing the local venture capital fund.

(2) To attract a major new business enterprise to the unit.

(3) To develop, retain, or expand a significant business enterprise in the unit.

(k) The expenditures of a borrower or grantee of money from a local venture capital fund that are considered to be for an economic development purpose include expenditures for any of the following:

(1) Research and development of technology.

(2) Job training and education.

(3) Acquisition of property interests.

(4) Infrastructure improvements.

(5) New buildings or structures.

(6) Rehabilitation, renovation, or enlargement of buildings or structures.

(7) Machinery, equipment, and furnishings.

(8) Funding small business development with respect to:

(A) prototype products or processes;

(B) marketing studies to determine the feasibility of new products or processes; or

(C) business plans for the development and production of new products or processes.

As added by P.L.243-2015, SEC.10. Amended by P.L.188-2016, SEC.8.

IC 6-3.6-10-9Limitations on bonds, leases, or other obligations incurred after May 9, 2025 Sec. 9. (a) Notwithstanding any other law, for bonds, leases, or any other obligations incurred after May 9, 2025, a county, city, town, and any other taxing unit may not pledge for payment from tax revenue received under this article an amount that exceeds an amount equal to twenty-five percent (25%) of the taxing unit's certified distribution under this article.

(b) This section expires July 1, 2028.

As added by P.L.68-2025, SEC.178. Amended by P.L.157-2026, SEC.148.

IC 6-3.6-11Chapter 11. Supplemental Allocation and Distribution Requirements

6-3.6-11-1Applicability; use of former tax to provide levy freeze; levy amounts; county resolution; income tax distributions 6-3.6-11-1Repealed 6-3.6-11-1.5Marion County; transfers to bid fund of capital improvement board 6-3.6-11-2Repealed 6-3.6-11-3Lake County; former tax categorized under property tax relief rates; uses of revenue from the tax rate; revenue not considered in computing maximum levy 6-3.6-11-3Lake County; former tax categorized under property tax relief rates; uses of revenue from the tax rate; revenue not considered in computing maximum levy 6-3.6-11-4Revenue dedicated to public safety; used for funding of operation of public communications system and computer facilities district; allocations and distributions to civil taxing units 6-3.6-11-4Revenue dedicated to public safety; used for funding of operation of public communications system and computer facilities district; allocations and distributions to civil taxing units 6-3.6-11-5Marion County's allocation of tax revenue 6-3.6-11-5.5Lake County; rail project; additional revenue allocated for economic development 6-3.6-11-5.5Lake County; rail project; general purpose revenue allocated for economic development 6-3.6-11-5.7Lake County municipalities; authorization to support and finance a rail project 6-3.6-11-6Member counties and municipalities of the northwest Indiana regional development authority; special allocations; pledges of revenue 6-3.6-11-6Member counties and municipalities of the northwest Indiana regional development authority; special allocations; pledges of revenue 6-3.6-11-7Pledges of revenue for rail projects 6-3.6-11-7Pledges of revenue for rail projects 6-3.6-11-7.5Actions challenging the withholding or transferring of revenue to the northwest Indiana regional development authority 6-3.6-11-7.5Actions challenging the withholding or transferring of revenue to the northwest Indiana regional development authority 6-3.6-11-9Calculation and allocation of certified shares among civil taxing units in Hamilton County after 2020 and before 2026

IC 6-3.6-11-1Applicability; use of former tax to provide levy freeze; levy amounts; county resolution; income tax distributions Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029.

Sec. 1. (a) This section applies to any county that imposed a former tax to provide for a levy freeze.

(b) The tax rate used to provide for a levy freeze shall be part of the tax rate under IC 6-3.6-6. The maximum tax rate that may be applied for a levy freeze is one percent (1%). The levy freeze tax rate may be increased but not decreased or rescinded unless an adopting body adopts a resolution to request approval from the department of local government finance to lower the levy freeze tax rate.

(c) The department of local government finance shall approve a lower levy freeze tax rate if it finds that the lower rate, in addition to:

(1) the supplemental distribution as determined in a resolution adopted under subsection (d); and

(2) the amount in the stabilization fund established under IC 6-3.5-1.1-24 (repealed) or IC 6-3.5-6-30 (repealed), as applicable;

would fund the levy freeze dollar amount (the total amount of foregone maximum levy increases for all taxing units for all years). If the department approves a lower levy freeze tax rate, the adopting body must adopt an ordinance to lower the levy freeze tax rate before the lower rate may take effect. The county shall provide the department with a determination of the amount in the stabilization funds for purposes of this subsection.

(d) A county may adopt a resolution to require that a supplemental distribution amount to be distributed under IC 6-3.6-9-15(d)(4) shall first be used to lower the levy freeze tax rate in subsection (c). If a resolution is adopted, the supplemental distribution under IC 6-3.6-9-15(d)(4) shall first be used to lower a county's levy freeze tax rate and any additional supplemental distribution calculated that is above the amount needed to lower the levy freeze tax rate shall be distributed to each taxing unit as provided under IC 6-3.6-9-15(d)(4).

(e) The revenue from the tax rate shall continue to be applied under this article as it was applied under the former tax, including the use of a stabilization fund.

(f) The distributions of income tax revenue attributable to a levy freeze tax rate shall be made before allocating or distributing the remaining revenue under IC 6-3.6-6 or applying the property tax credits funded by a tax rate under IC 6-3.6-5.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.69; P.L.247-2017, SEC.24; P.L.239-2023, SEC.16; P.L.156-2024, SEC.25.

IC 6-3.6-11-1Repealed Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.69; P.L.247-2017, SEC.24; P.L.239-2023, SEC.16; P.L.156-2024, SEC.25. Repealed by P.L.68-2025, SEC.179.

IC 6-3.6-11-1.5Marion County; transfers to bid fund of capital improvement board Sec. 1.5. (a) This section applies only to Marion County.

(b) If the capital improvement board established under IC 36-10-9 has established a bid fund described in IC 5-13-10.5-18(g), the county auditor shall transfer to the bid fund an amount equal to the part of the county's certified distribution that is certified under IC 6-3.6-9-10(4).

As added by P.L.239-2017, SEC.17.

IC 6-3.6-11-2RepealedAs added by P.L.243-2015, SEC.10. Repealed by P.L.174-2022, SEC.48.

IC 6-3.6-11-3Lake County; former tax categorized under property tax relief rates; uses of revenue from the tax rate; revenue not considered in computing maximum levy Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 3. (a) This section applies to Lake County's categorizations, allocations, and distributions under IC 6-3.6-5.

(b) The rate under the former tax in Lake County that was used for any of the following shall be categorized under IC 6-3.6-5, and the Lake County council may adopt an ordinance providing that the revenue from the tax rate under this section may be used for any of the following:

(1) To reduce all property tax levies imposed by the county by the granting of property tax replacement credits against those property tax levies.

(2) To provide local property tax replacement credits in Lake County in the following manner:

(A) The tax revenue under this section that is collected from taxpayers within a particular municipality in Lake County (as determined by the department of state revenue based on the department's best estimate) shall be used only to provide a local property tax credit against property taxes imposed by that municipality.

(B) The tax revenue under this section that is collected from taxpayers within the unincorporated area of Lake County (as determined by the department of state revenue) shall be used only to provide a local property tax credit against property taxes imposed by the county. The local property tax credit for the unincorporated area of Lake County shall be available only to those taxpayers within the unincorporated area of the county.

(3) To provide property tax credits in the following manner:

(A) Sixty percent (60%) of the tax revenue shall be used as provided in subdivision (2).

(B) Forty percent (40%) of the tax revenue shall be used to provide property tax replacement credits against property tax levies of the county and each township and municipality in the county. The percentage of the tax revenue distributed under this item that shall be used as credits against the county's levies or against a particular township's or municipality's levies is equal to the percentage determined by dividing the population of the county, township, or municipality by the sum of the total population of the county, each township in the county, and each municipality in the county.

The Lake County council shall determine whether the credits under subdivision (1), (2), or (3) shall be provided to homesteads, to all qualified residential property, or to all taxpayers. The department of local government finance, with the assistance of the budget agency, shall certify to the county auditor and the fiscal body of the county and each township and municipality in the county the amount of property tax credits under this section. The tax revenue under this section that is used to provide credits under this section shall be treated for all purposes as property tax levies but shall not be considered for purposes of computing the maximum permissible property tax levy under IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.70.

IC 6-3.6-11-3Lake County; former tax categorized under property tax relief rates; uses of revenue from the tax rate; revenue not considered in computing maximum levy Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 3. (a) This section applies to Lake County's categorizations, allocations, and distributions under IC 6-3.6-5 (before its expiration).

(b) The rate under the former tax in Lake County that was used for any of the following shall be categorized under IC 6-3.6-5 (before its expiration), and the Lake County council may adopt an ordinance providing that the revenue from the tax rate under this section may be used for any of the following:

(1) To reduce all property tax levies imposed by the county by the granting of property tax replacement credits against those property tax levies.

(2) To provide local property tax replacement credits in Lake County in the following manner:

(A) The tax revenue under this section that is collected from taxpayers within a particular municipality in Lake County (as determined by the department of state revenue based on the department's best estimate) shall be used only to provide a local property tax credit against property taxes imposed by that municipality.

(B) The tax revenue under this section that is collected from taxpayers within the unincorporated area of Lake County (as determined by the department of state revenue) shall be used only to provide a local property tax credit against property taxes imposed by the county. The local property tax credit for the unincorporated area of Lake County shall be available only to those taxpayers within the unincorporated area of the county.

(3) To provide property tax credits in the following manner:

(A) Sixty percent (60%) of the tax revenue shall be used as provided in subdivision (2).

(B) Forty percent (40%) of the tax revenue shall be used to provide property tax replacement credits against property tax levies of the county and each township and municipality in the county. The percentage of the tax revenue distributed under this item that shall be used as credits against the county's levies or against a particular township's or municipality's levies is equal to the percentage determined by dividing the population of the county, township, or municipality by the sum of the total population of the county, each township in the county, and each municipality in the county.

The Lake County council shall determine whether the credits under subdivision (1), (2), or (3) shall be provided to homesteads, to all qualified residential property, or to all taxpayers. The department of local government finance, with the assistance of the budget agency, shall certify to the county auditor and the fiscal body of the county and each township and municipality in the county the amount of property tax credits under this section. The tax revenue under this section that is used to provide credits under this section shall be treated for all purposes as property tax levies but shall not be considered for purposes of computing the maximum permissible property tax levy under IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.

(c) Any ordinance adopted under subsection (b) expires December 31, 2028.

(d) This section expires July 1, 2031.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.70; P.L.68-2025, SEC.180; P.L.157-2026, SEC.149.

IC 6-3.6-11-4Revenue dedicated to public safety; used for funding of operation of public communications system and computer facilities district; allocations and distributions to civil taxing units Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 4. This section applies to the allocation of the tax revenue under IC 6-3.6-6 that is dedicated to public safety and funding for a PSAP (as defined in IC 36-8-16.7-20) that is part of the statewide 911 system (as defined in IC 36-8-16.7-22) and located within the county as provided in IC 6-3.6-6-8. This tax revenue shall be allocated and distributed to the PSAP before the allocation and distribution to any taxing units of the remaining tax revenue allocated to public safety as provided in IC 6-3.6-6.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.71; P.L.247-2017, SEC.25.

IC 6-3.6-11-4Revenue dedicated to public safety; used for funding of operation of public communications system and computer facilities district; allocations and distributions to civil taxing units Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 4. This section applies to the allocation of the tax revenue under IC 6-3.6-6 that is dedicated to public safety and funding for a PSAP (as defined in IC 36-8-16.7-20) that is part of the statewide 911 system (as defined in IC 36-8-16.7-22) and located within the county. This tax revenue shall be allocated and distributed to the PSAP before the allocation and distribution to any taxing units of the remaining tax revenue allocated to public safety as provided in IC 6-3.6-6.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.71; P.L.247-2017, SEC.25; P.L.68-2025, SEC.181.

IC 6-3.6-11-5Marion County's allocation of tax revenue Sec. 5. (a) This section applies to Marion County's allocation of the tax revenue under IC 6-3.6-6 that is dedicated to certified shares.

(b) The consolidated city, the county, all special taxing districts, special service districts, included towns (as defined in IC 36-3-1-7), and all other political subdivisions except:

(1) townships;

(2) excluded cities (as defined in IC 36-3-1-7); and

(3) school corporations;

are considered to comprise one (1) civil taxing unit whose fiscal body is the fiscal body of the consolidated city.

(c) For purposes of subsection (d), the following amounts are referred to as the subsection (c) ratio:

Center Township

.0251

Decatur Township

.00217

Franklin Township

.0023

Lawrence Township

.01177

Perry Township

.01130

Pike Township

.01865

Warren Township

.01359

Washington Township

.01346

Wayne Township

.01307

Lawrence-City

.00858

Beech Grove

.00845

Southport

.00025

Speedway

.00722

Indianapolis/Marion County

.86409

(d) The distributive shares that each civil taxing unit in the county is entitled to receive during a month equals the total amount of revenues that are to be distributed as distributive shares during that month calculated as follows:

STEP ONE: Determine the total amount of revenues that were distributed as distributive shares during that month in calendar year 1995.

STEP TWO: Determine the total amount of revenue that the department has certified as distributive shares for that month under IC 6-3.6-6 for the calendar year.

STEP THREE: Subtract the STEP ONE result from the STEP TWO result.

STEP FOUR: If the STEP THREE result is less than or equal to zero (0), multiply the STEP TWO result by the applicable subsection (c) ratio for the civil taxing unit.

STEP FIVE: Determine the ratio of:

(A) the maximum permissible property tax levy under IC 6-1.1-18.5 for each civil taxing unit for the calendar year in which the month falls, plus, for a county, the welfare allocation amount; divided by

(B) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 for all civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the welfare allocation amount.

STEP SIX: If the STEP THREE result is greater than zero (0), the STEP ONE amount shall be distributed by multiplying the STEP ONE amount by the subsection (c) ratio.

STEP SEVEN: For each taxing unit determine the STEP FIVE ratio multiplied by the STEP TWO amount.

STEP EIGHT: For each civil taxing unit determine the difference between the STEP SEVEN amount minus the product of the STEP ONE amount multiplied by the subsection (c) ratio. The STEP THREE excess shall be distributed as provided in STEP NINE only to the civil taxing units that have a STEP EIGHT difference greater than or equal to zero (0).

STEP NINE: For the civil taxing units qualifying for a distribution under STEP EIGHT, each civil taxing unit's share equals the STEP THREE excess multiplied by the ratio of:

(A) the maximum permissible property tax levy under IC 6-1.1-18.5 for the qualifying civil taxing unit during the calendar year in which the month falls, plus, for a county, an amount equal to the welfare allocation amount; divided by

(B) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 for all qualifying civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the welfare allocation amount.

As added by P.L.243-2015, SEC.10.

IC 6-3.6-11-5.5Lake County; rail project; additional revenue allocated for economic development Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 5.5. (a) This section applies to Lake County for purposes of categorizations, allocations, and distributions of additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9 and of certified shares under IC 6-3.6-6. Additional revenue that is allocated each year for economic development purposes by a civil taxing unit listed in IC 6-3.6-9-5(d) must first be used to provide funding for a rail project (as defined in IC 36-7.5-1-13.5).

(b) Before the state comptroller may make a certified distribution of additional revenue allocated for economic development purposes under IC 6-3.6-6-9, the state comptroller shall withhold the total amount determined by the department of local government finance under IC 6-3.6-9-5(d) from the certified distribution allocated to economic development. The amount withheld by the state comptroller under this section shall be paid to the secretary-treasurer of the northwest Indiana regional development authority (IC 36-7.5) before a certified distribution allocated to economic development is made to the county and before the county auditor may otherwise allocate or distribute tax revenue under this article.

As added by P.L.259-2019, SEC.9. Amended by P.L.9-2024, SEC.193.

IC 6-3.6-11-5.5Lake County; rail project; general purpose revenue allocated for economic development Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 5.5. (a) This section applies to Lake County for purposes of categorizations, allocations, and distributions of general purpose revenue that is allocated each year for economic development purposes. General purpose revenue that is allocated each year for economic development purposes by a civil taxing unit listed in IC 6-3.6-9-5(b) must first be used to provide funding for a rail project (as defined in IC 36-7.5-1-13.5).

(b) Before the state comptroller may make a certified distribution of general purpose revenue allocated for economic development purposes, the state comptroller shall withhold the total amount determined by the department of local government finance under IC 6-3.6-9-5(b) from the certified distribution allocated to economic development. The amount withheld by the state comptroller under this section shall be paid to the secretary-treasurer of the northwest Indiana regional development authority (IC 36-7.5) before a certified distribution allocated to economic development is made to the county and before the county auditor may otherwise allocate or distribute tax revenue under this article.

As added by P.L.259-2019, SEC.9. Amended by P.L.9-2024, SEC.193; P.L.68-2025, SEC.182.

IC 6-3.6-11-5.7Lake County municipalities; authorization to support and finance a rail project Sec. 5.7. (a) Before July 1, 2019, one (1) or more of the municipalities of Cedar Lake, East Chicago, Griffith, and St. John may:

(1) enter into an interlocal cooperation agreement or other agreement;

(2) adopt an ordinance or adopt a resolution; or

(3) take any other action;

to agree to support and finance a rail project (as defined in IC 36-7.5-1-13.5) or rail projects. If one (1) or more of the municipalities agrees to support and finance a rail project (as defined in IC 36-7.5-1-13.5) or rail projects as described in this subsection, tax revenue that would otherwise be allocated to the municipality under this chapter shall be withheld and paid as described in section 5.5 of this chapter.

(b) Neither the action nor inaction of Cedar Lake, East Chicago, Griffith, or St. John under this section affects the enforceability of any of the provisions of section 5.5 of this chapter.

As added by P.L.259-2019, SEC.10.

IC 6-3.6-11-6Member counties and municipalities of the northwest Indiana regional development authority; special allocations; pledges of revenue Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 6. (a) This section applies to Lake County, LaPorte County, Porter County, and any municipality in those counties that is a member of the northwest Indiana regional development authority (IC 36-7.5) for purposes of categorizations, allocations, and distributions of additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9.

(b) This subsection applies only to Lake County. The county or a city described in IC 36-7.5-2-3(b) may use additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9 for making transfers required by IC 36-7.5-4-2 or to provide rail project funding under IC 36-7.5-4.5. The additional revenue allocated for economic development and used to make the transfers required by IC 36-7.5-4-2 or to provide rail project funding shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority before certified distributions are made to the county or any cities or towns in the county. The county or a city or town in the county may use additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9 to provide homestead credits in the county, city, or town. The following apply to homestead credits provided under this subsection:

(1) The county, city, or town fiscal body must adopt an ordinance authorizing the homestead credits. The ordinance must specify the amount of additional revenue that will be used to provide homestead credits in the following year.

(2) The county, city, or town fiscal body that adopts an ordinance under this subsection must forward a copy of the ordinance to the county auditor and the department of local government finance not more than thirty (30) days after the ordinance is adopted.

(3) The homestead credits must be applied uniformly to provide a homestead credit for homesteads in the county, city, or town.

(4) The homestead credits shall be treated for all purposes as property tax levies.

(5) The homestead credits shall be applied to the net property taxes due on the homestead after the application of all other assessed value deductions or property tax deductions and credits that apply to the amount owed under IC 6-1.1.

(6) The state comptroller shall determine the homestead credit percentage for a particular year based on the amount of additional revenue that will be used under this subsection to provide homestead credits in that year.

(c) This subsection applies only to LaPorte County as follows:

(1) This subsection applies if:

(A) the county fiscal body has adopted an ordinance under IC 36-7.5-2-3(d) providing that the county is joining the northwest Indiana regional development authority; and

(B) the fiscal body of the city described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the city is joining the development authority.

(2) Additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9 may be used by a county or a city described in IC 36-7.5-2-3(d) for making transfers required by IC 36-7.5-4-2. In addition, if the allocation of additional revenue for economic development purposes under IC 6-3.6-6-9 is increased in the county, the first three million five hundred thousand dollars ($3,500,000) of the tax revenue that results each year from the allocation increase shall be used by the county only to make the county's transfer required by IC 36-7.5-4-2 and shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under IC 36-7.5-4-2 before certified distributions are made to the county or any cities or towns in the county.

(3) All of the additional revenue allocated for economic development purposes under IC 6-3.6-6-9 that results each year from an allocation increase described in subdivision (2) and that is in excess of the first three million five hundred thousand dollars ($3,500,000) must be used by the county and cities and towns in the county for homestead credits under this subsection. The following apply to homestead credits provided under this subsection:

(A) The homestead credits must be applied uniformly to provide a homestead credit for homesteads in the county, city, or town.

(B) The homestead credits shall be treated for all purposes as property tax levies.

(C) The homestead credits shall be applied to the net property taxes due on the homestead after the application of all other assessed value deductions or property tax deductions and credits that apply to the amount owed under IC 6-1.1.

(D) The state comptroller shall determine the homestead credit percentage for a particular year based on the amount of additional revenue that will be used under this subdivision to provide homestead credits in that year.

(d) This subsection applies only to Porter County. The additional revenue designated each year for economic development purposes under IC 6-3.6-6 shall be allocated and used as follows:

(1) First, the revenue attributable to an income tax rate of twenty-five hundredths percent (0.25%) shall be allocated to the county and cities and towns as provided in IC 6-3.6-6-9.

(2) Second, the next three million five hundred thousand dollars ($3,500,000) of the revenue shall be used for the county or for eligible municipalities (as defined in IC 36-7.5-1-11.3) in the county, to make transfers as provided in and required under IC 36-7.5-4-2. The additional revenue used to make the transfers as provided in IC 36-7.5-4-2 shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority before certified distributions are made to the county or any taxing unit in the county. If Porter County ceases to be a member of the northwest Indiana regional development authority under IC 36-7.5 but two (2) or more municipalities in the county have become members of the northwest Indiana regional development authority as authorized by IC 36-7.5-2-3(h), the treasurer of state shall continue to transfer this amount to the treasurer of the northwest Indiana regional development authority under IC 36-7.5-4-2.

(3) Third, except as provided in IC 36-7.5-3-5, all of the revenue each year that is in excess of the amounts described in subdivisions (1) and (2) must be used by the county and cities and towns in the county for homestead credits. The following apply to homestead credits provided under this subdivision:

(A) The homestead credits must be applied uniformly to provide a homestead credit for homesteads in the county, city, or town.

(B) The homestead credits shall be treated for all purposes as property tax levies.

(C) The homestead credits shall be applied to the net property taxes due on the homestead after the application of all other assessed value deductions or property tax deductions and credits that apply to the amount owed under IC 6-1.1.

(D) The state comptroller shall determine the homestead credit percentage for a particular year based on the amount of additional revenue that will be used under this subdivision to provide homestead credits in that year.

(e) A transfer made on behalf of a city, town, or county under this section after December 31, 2018, is to be considered a payment for services provided to residents by a rail project as those services are rendered.

(f) A pledge by the northwest Indiana regional development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a county or municipality described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(g) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects (as defined in IC 36-7.5-1-13.5).

(h) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those pledges or actions and are hereby legalized and declared valid if taken before March 15, 2018.

As added by P.L.197-2016, SEC.72. Amended by P.L.248-2017, SEC.1; P.L.189-2018, SEC.60; P.L.165-2021, SEC.97; P.L.9-2024, SEC.194.

IC 6-3.6-11-6Member counties and municipalities of the northwest Indiana regional development authority; special allocations; pledges of revenue Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 6. (a) This section applies to Lake County, LaPorte County, Porter County, and any municipality in those counties that is a member of the northwest Indiana regional development authority (IC 36-7.5) for purposes of categorizations, allocations, and distributions of general purpose revenue that is allocated each year for economic development purposes under IC 6-3.6-6.

(b) This subsection applies only to Lake County. The county or a city described in IC 36-7.5-2-3(b) may use general purpose revenue that is allocated each year for economic development purposes under IC 6-3.6-6 for making transfers required by IC 36-7.5-4-2 or to provide rail project funding under IC 36-7.5-4.5. The general purpose revenue allocated for economic development and used to make the transfers required by IC 36-7.5-4-2 or to provide rail project funding shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority before certified distributions are made to the county or any cities or towns in the county.

(c) This subsection applies only to Porter County. From the general purpose revenue received each year from the rate imposed under IC 6-3.6-6, the first three million five hundred thousand dollars ($3,500,000) shall be used by the county to make transfers as required under IC 36-7.5-4-2 to the northwest Indiana regional development authority before any certified distributions are made to the county unit or any other taxing unit in the county. The adopting body for Porter County may not reduce the proportional allocation of the general purpose revenue allocated to Porter County if the reduction would result in an amount less than the amount necessary for Porter County to fulfill its obligation to the northwest Indiana regional development authority to pay to support northwest Indiana rail projects (as defined in IC 5-1.3-2-14) and projects described in IC 36-7.5-4-2.5.

(d) A transfer made on behalf of a city, town, or county under this section after December 31, 2018, is to be considered a payment for services provided to residents by a rail project as those services are rendered.

(e) A pledge by the northwest Indiana regional development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a county or municipality described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(f) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects (as defined in IC 36-7.5-1-13.5).

(g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those pledges or actions and are hereby legalized and declared valid if taken before March 15, 2018.

As added by P.L.197-2016, SEC.72. Amended by P.L.248-2017, SEC.1; P.L.189-2018, SEC.60; P.L.165-2021, SEC.97; P.L.9-2024, SEC.194; P.L.68-2025, SEC.183.

IC 6-3.6-11-7Pledges of revenue for rail projects Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 7. (a) This section applies to a civil taxing unit that has previously:

(1) entered into an interlocal cooperation or similar agreement;

(2) adopted an ordinance or resolution; or

(3) taken any other action;

offering to provide revenue to support and finance a rail project or rail projects (as defined under IC 36-7.5-1-13.5).

(b) The additional revenue that would otherwise be allocated to a civil taxing unit described in subsection (a) shall be withheld under section 5.5 of this chapter by the state comptroller and shall be paid by the state comptroller to the secretary-treasurer of the northwest Indiana regional development authority under IC 36-7.5-4-2 before certified distributions are made to the county and before the county auditor may allocate or distribute tax revenue under this article to any civil taxing unit in the county or counties in which the unit is located.

(c) Amounts:

(1) withheld under section 5.5 of this chapter; and

(2) transferred on behalf of a civil taxing unit under this section;

after December 31, 2018, are considered to be a payment for services provided to residents by a rail project as such services are rendered.

(d) A pledge by the northwest Indiana regional development authority of withheld or transferred revenue received under this chapter to the payment of bonds, leases, or obligations under IC 36-7.5 or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a unit described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(e) Neither the withholding or transfer of revenue nor the pledge of revenue withheld or transferred under this chapter is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local income taxes, including the withheld or transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects (as defined in IC 36-7.5-1-13.5).

(f) All:

(1) agreements;

(2) ordinances or resolutions; and

(3) proceedings had and actions described in this chapter;

are valid pledges under IC 5-1-14-4 as of the date of those pledges or actions and are hereby legalized and declared valid if taken before April 30, 2019.

As added by P.L.189-2018, SEC.61. Amended by P.L.259-2019, SEC.11; P.L.9-2024, SEC.195.

IC 6-3.6-11-7Pledges of revenue for rail projects Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 7. (a) This section applies to a civil taxing unit that has previously:

(1) entered into an interlocal cooperation or similar agreement;

(2) adopted an ordinance or resolution; or

(3) taken any other action;

offering to provide revenue to support and finance a rail project or rail projects (as defined under IC 36-7.5-1-13.5).

(b) The general purpose revenue that would otherwise be allocated to a civil taxing unit described in subsection (a) shall be withheld under section 5.5 of this chapter by the state comptroller and shall be paid by the state comptroller to the secretary-treasurer of the northwest Indiana regional development authority under IC 36-7.5-4-2 before certified distributions are made to the county and before the county auditor may allocate or distribute tax revenue under this article to any civil taxing unit in the county or counties in which the unit is located.

(c) Amounts:

(1) withheld under section 5.5 of this chapter; and

(2) transferred on behalf of a civil taxing unit under this section;

after December 31, 2018, are considered to be a payment for services provided to residents by a rail project as such services are rendered.

(d) A pledge by the northwest Indiana regional development authority of withheld or transferred revenue received under this chapter to the payment of bonds, leases, or obligations under IC 36-7.5 or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a unit described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(e) Neither the withholding or transfer of revenue nor the pledge of revenue withheld or transferred under this chapter is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local income taxes, including the withheld or transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects (as defined in IC 36-7.5-1-13.5).

(f) All:

(1) agreements;

(2) ordinances or resolutions; and

(3) proceedings had and actions described in this chapter;

are valid pledges under IC 5-1-14-4 as of the date of those pledges or actions and are hereby legalized and declared valid if taken before April 30, 2019.

As added by P.L.189-2018, SEC.61. Amended by P.L.259-2019, SEC.11; P.L.9-2024, SEC.195; P.L.68-2025, SEC.184.

IC 6-3.6-11-7.5Actions challenging the withholding or transferring of revenue to the northwest Indiana regional development authority Note: This version of section effective until 1-1-2029. See also following version of this section, effective 1-1-2029.

Sec. 7.5. (a) An action challenging any action taken under section 5.5, 5.7, 6, or 7 of this chapter to withhold or transfer revenue to the secretary-treasurer of the northwest Indiana regional developmental authority (IC 36-7.5) from a county's certified distribution must be brought within ten (10) days after the date on which the county auditor notifies the secretary-treasurer of the northwest Indiana regional development authority (IC 36-7.5) of the amount of certified tax revenue that will be distributed under IC 6-3.6-9-5(d).

(b) A court shall require a plaintiff to provide a bond with surety in an amount equal to the total amounts of tax revenue estimated to be withheld or transferred by the state comptroller from the date of the filing until December 31, 2049.

(c) The burden of proof in an action under this section is on the plaintiff.

(d) If the defendant prevails in an action under this section, the court shall award attorney's fees to the defendant.

As added by P.L.259-2019, SEC.12. Amended by P.L.9-2024, SEC.196.

IC 6-3.6-11-7.5Actions challenging the withholding or transferring of revenue to the northwest Indiana regional development authority Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029.

Note: This version of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029.

Sec. 7.5. (a) An action challenging any action taken under section 5.5, 5.7, 6, or 7 of this chapter to withhold or transfer revenue to the secretary-treasurer of the northwest Indiana regional developmental authority (IC 36-7.5) from a county's certified distribution must be brought within ten (10) days after the date on which the county auditor notifies the secretary-treasurer of the northwest Indiana regional development authority (IC 36-7.5) of the amount of certified tax revenue that will be distributed under IC 6-3.6-9-5(b).

(b) A court shall require a plaintiff to provide a bond with surety in an amount equal to the total amounts of tax revenue estimated to be withheld or transferred by the state comptroller from the date of the filing until December 31, 2049.

(c) The burden of proof in an action under this section is on the plaintiff.

(d) If the defendant prevails in an action under this section, the court shall award attorney's fees to the defendant.

As added by P.L.259-2019, SEC.12. Amended by P.L.9-2024, SEC.196; P.L.68-2025, SEC.185.

IC 6-3.6-11-9Calculation and allocation of certified shares among civil taxing units in Hamilton County after 2020 and before 2026 Sec. 9. (a) This section applies to the calculation and allocation of certified shares among civil taxing units in Hamilton County after 2020 and before 2026.

(b) For each calendar year to which this section applies, the amount of a civil taxing unit's certified shares is equal to:

(1) the amount of the civil taxing unit's certified shares determined under IC 6-3.6-6, for a civil taxing unit other than the city of Carmel or the city of Fishers;

(2) the adjusted amount determined under subsection (c), for the city of Carmel; or

(3) the adjusted amount determined under subsection (d), for the city of Fishers.

(c) For each calendar year to which this section applies, the adjusted amount of the city of Carmel's certified shares is equal to the lesser of:

(1) the amount of the city of Carmel's certified shares determined under IC 6-3.6-6, without regard to this section; or

(2) the product of:

(A) the amount of the city of Carmel's certified shares determined for the immediately preceding calendar year under IC 6-3.6-6, for 2021, or this section, after 2021; and

(B) one and three hundredths (1.03).

(d) For each calendar year to which this section applies, the adjusted amount of the city of Fishers' certified shares is equal to:

(1) the sum of:

(A) the amount of the city of Carmel's certified shares determined under IC 6-3.6-6, without regard to this section; and

(B) the amount of the city of Fishers' certified shares determined under IC 6-3.6-6, without regard to this section; minus

(2) the adjusted amount of the city of Carmel's certified shares determined under subsection (c).

As added by P.L.159-2020, SEC.55. Amended by P.L.236-2023, SEC.82.

IC 6-4ARTICLE 4. REPEALEDRepealed by P.L.1-1993, SEC.41.

IC 6-4.1ARTICLE 4.1. DEATH TAXES

Ch. 1.Definitions and Rules of Construction Ch. 2.Repealed Ch. 3.Repealed Ch. 4.Filing Requirements Ch. 5.Determination of Inheritance Tax Ch. 6.Special Procedures for Appraising and Taxing Certain Property Interests Ch. 7.Review of Inheritance Tax Appraisals and Tax Determinations Ch. 8.Inheritance Tax Lien and Limitations on the Transfer of Decedent's Property Ch. 9.General Inheritance Tax Collection Provisions Ch. 10.Refund of Inheritance Tax Erroneously or Illegally Collected Ch. 11.Repealed Ch. 11.5.Repealed Ch. 12.General Administrative Provisions

IC 6-4.1-1Chapter 1. Definitions and Rules of Construction

6-4.1-1-0.5Applicability of chapter 6-4.1-1-0.7Rule concerning property interests transferred by a decedent dying before January 1, 2013 6-4.1-1-1Application to article 6-4.1-1-2"Appropriate probate court" 6-4.1-1-3Classes of transferees; adopted child as natural child 6-4.1-1-3.5"Entity" 6-4.1-1-4Repealed 6-4.1-1-5"Intangible personal property" 6-4.1-1-6"Intestate succession" 6-4.1-1-7"Non-resident decedent" 6-4.1-1-8"Person" 6-4.1-1-9"Personal representative" 6-4.1-1-10"Probate court" 6-4.1-1-11"Resident decedent" 6-4.1-1-12Repealed 6-4.1-1-13"Tangible personal property" 6-4.1-1-14"Taxable transfer" 6-4.1-1-15Gender; singular as plural

IC 6-4.1-1-0.5Applicability of chapter Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.1. Amended by P.L.205-2013, SEC.99.

IC 6-4.1-1-0.7Rule concerning property interests transferred by a decedent dying before January 1, 2013 Sec. 0.7. The repeal of:

(1) IC 6-4.1-2;

(2) IC 6-4.1-3;

(3) IC 6-4.1-4-0.1;

(4) IC 6-4.1-5-2, IC 6-4.1-5-3, IC 6-4.1-5-4, IC 6-4.1-5-5, IC 6-4.1-5-6, and IC 6-4.1-5-9;

(5) IC 6-4.1-7-0.1;

(6) IC 6-4.1-8-0.1;

(7) IC 6-4.1-9-0.1, IC 6-4.1-9-2, IC 6-4.1-9-7, IC 6-4.1-9-8, and IC 6-4.1-9-9;

(8) IC 6-4.1-10-1.5;

(9) IC 6-4.1-11; and

(10) IC 6-4.1-12-4;

do not affect any taxes or duties imposed under this article or any exemptions or deductions allowed under this article with respect to a property interest transferred by a decedent whose death occurred before January 1, 2013.

As added by P.L.79-2017, SEC.11.

IC 6-4.1-1-1Application to article Sec. 1. The definitions and rules of construction contained in this chapter apply throughout this article unless the context clearly requires otherwise.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-2"Appropriate probate court" Sec. 2. "Appropriate probate court" means the probate court which has jurisdiction over the determination of the inheritance tax imposed as a result of a resident decedent's death.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-3Classes of transferees; adopted child as natural child Sec. 3. (a) "Class A transferee" means a transferee who is any of the following:

(1) A lineal ancestor of the transferor.

(2) A lineal descendant of the transferor.

(3) A stepchild of the transferor, whether or not the stepchild is adopted by the transferor. This subdivision applies to the estate of an individual who dies after June 30, 2004.

(4) A lineal descendant of a stepchild of the transferor, whether or not the stepchild is adopted by the transferor.

(5) A spouse, widow, or widower of a child of the transferor. This subdivision applies to the estate of an individual who dies after December 31, 2011.

(6) A spouse, widow, or widower of a stepchild of the transferor, whether or not the stepchild is adopted by the transferor. This subdivision applies to the estate of an individual who dies after December 31, 2011.

(b) "Class B transferee" means a transferee who is a:

(1) brother or sister of the transferor;

(2) descendant of a brother or sister of the transferor; or

(3) spouse, widow, or widower of a child of the transferor. This subdivision applies to the estate of an individual who dies before January 1, 2012.

(c) "Class C transferee" means a transferee, except a surviving spouse, who is neither a Class A nor a Class B transferee.

(d) For purposes of this section, a legally adopted child is to be treated as if the child were the natural child of the child's adopting parent if the adoption occurred before the individual was totally emancipated. However, an individual adopted after being totally emancipated shall be treated as the natural child of the adopting parent if the adoption was finalized before July 1, 2004.

(e) For purposes of this section, if a relationship of loco parentis has existed for at least ten (10) years and if the relationship began before the child's fifteenth birthday, the child is to be considered the natural child of the loco parentis parent.

(f) As used in this section, "stepchild" means a child of the transferor's surviving, deceased, or former spouse who is not a child of the transferor.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979, P.L.75, SEC.1; P.L.68-2004, SEC.1; P.L.81-2004, SEC.18; P.L.238-2005, SEC.1; P.L.220-2011, SEC.149; P.L.157-2012, SEC.2.

IC 6-4.1-1-3.5"Entity" Sec. 3.5. "Entity" refers to a partnership, limited partnership, limited liability partnership, association, corporation, limited liability company, trust, or similar entity.

As added by P.L.149-2012, SEC.1.

IC 6-4.1-1-4RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.1; P.L.87-1983, SEC.1; P.L.2-1987, SEC.23. Repealed by P.L.205-2013, SEC.100.

IC 6-4.1-1-5"Intangible personal property" Sec. 5. "Intangible personal property" means incorporeal property, such as money, deposits, credits, shares of stock, bonds, notes, other evidences of indebtedness, and other evidences of property interests.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-6"Intestate succession" Sec. 6. "Intestate succession" means a property interest transfer which is effected by the statute of descent and distribution or by operation of law, as the result of the death of an individual who fails to make a complete disposition of the property under a valid will.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-7"Non-resident decedent" Sec. 7. "Non-resident decedent" means an individual who was not domiciled in Indiana at the time of his death.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-8"Person" Sec. 8. "Person" includes a sole proprietorship, partnership, association, corporation, limited liability company, fiduciary, individual, and the department of state revenue.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.8-1993, SEC.92.

IC 6-4.1-1-9"Personal representative" Sec. 9. "Personal representative" means a person who is appointed to administer a decedent's estate by a court which has jurisdiction over the estate.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-10"Probate court" Sec. 10. "Probate court" means a court of this state which has jurisdiction over probate matters.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-11"Resident decedent" Sec. 11. "Resident decedent" means an individual who was domiciled in Indiana at the time of his death.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-12RepealedAs added by Acts 1976, P.L.18, SEC.1. Repealed by P.L.58-1990, SEC.6.

IC 6-4.1-1-13"Tangible personal property" Sec. 13. "Tangible personal property" means corporeal personal property, such as goods, wares, and merchandise.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-1-14"Taxable transfer" Sec. 14. "Taxable transfer" means a property interest transfer which is described in IC 6-4.1-2-1(a)(1) and IC 6-4.1-2-1(a)(2) (before the section's repeal) and which is not exempt from the inheritance tax under IC 6-4.1-3-1 through IC 6-4.1-3-7 (before the chapter's repeal).

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.79-2017, SEC.12.

IC 6-4.1-1-15Gender; singular as plural Sec. 15. (a) Whenever a masculine gender pronoun is used in this article, it refers to the masculine, feminine, or neuter, whichever is appropriate.

(b) The singular form of any noun as used in this article includes the plural, and the plural includes the singular, where appropriate.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-2Chapter 2. RepealedRepealed by P.L.79-2017, SEC.13.

IC 6-4.1-3Chapter 3. RepealedRepealed by P.L.79-2017, SEC.14.

IC 6-4.1-4Chapter 4. Filing Requirements

6-4.1-4-0.1Repealed 6-4.1-4-0.2Applicability 6-4.1-4-0.5Inheritance tax return not required; affidavits; liens 6-4.1-4-1Inheritance tax return; contents 6-4.1-4-2Extension of filing time; subsequent extensions 6-4.1-4-3Failure to file; court ordered appearance upon request of interested parties 6-4.1-4-4Court order; appearance upon request of interested parties 6-4.1-4-5Removal of personal representative; grounds 6-4.1-4-6Penalties for failure to file return; waiver 6-4.1-4-7Nonresident decedent; inheritance tax return 6-4.1-4-8Federal estate tax return; filing with state 6-4.1-4-9Filing fee prohibited

IC 6-4.1-4-0.1RepealedAs added by P.L.220-2011, SEC.152. Repealed by P.L.79-2017, SEC.15.

IC 6-4.1-4-0.2Applicability Sec. 0.2. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.7. Amended by P.L.205-2013, SEC.103.

IC 6-4.1-4-0.5Inheritance tax return not required; affidavits; liens Sec. 0.5. (a) No inheritance tax return is required under this chapter unless the total fair market value of the property interests transferred by the decedent to a transferee under a taxable transfer or transfers exceeds the exemption provided to the transferee under IC 6-4.1-3-10 through IC 6-4.1-3-12 (before the repeal of IC 6-4.1-3). For purposes of this section, the fair market value of a property interest is its fair market value as of the appraisal date prescribed by IC 6-4.1-5-1.5.

(b) An affidavit may be used to state that no inheritance tax is due after applying the exemptions under IC 6-4.1-3 (before its repeal). The affidavit must contain the following information:

(1) The decedent's name and date of death.

(2) The name of each known transferee and the transferee's relationship to the decedent.

(3) The total value of property transferred to each known transferee as a result of the decedent's death.

(4) A statement that the total value of property transferred to each known transferee as a result of the decedent's death is less than the amount of the exemption provided to the transferee under IC 6-4.1-3 (before its repeal).

(c) An affidavit described in subsection (b) may be:

(1) recorded in the office of the county recorder if the affidavit concerns real property and includes the legal description of the real property in the decedent's estate; or

(2) submitted as required by IC 6-4.1-8-4 if the affidavit concerns personal property.

If consent by the department of state revenue or the appropriate county assessor is required under IC 6-4.1-8-4 for the transfer of personal property, the affidavit must be submitted with a request for a consent to transfer under IC 6-4.1-8-4.

(d) If consent by the department of state revenue or the appropriate county assessor is required under IC 6-4.1-8-4 before personal property may be transferred and the department of state revenue or the appropriate county assessor consents to a transfer of personal property under IC 6-4.1-8-4 after considering an affidavit described in subsection (b), the full value of the personal property may be transferred.

(e) The department of state revenue or the appropriate county assessor may rely upon an affidavit described in subsection (b) to determine that a transfer will not jeopardize the collection of inheritance tax for purposes of IC 6-4.1-8-4(e).

(f) It is presumed that no inheritance tax is due and that no inheritance tax return is required if an affidavit described in subsection (b) was:

(1) properly executed; and

(2) recorded in the decedent's county of residence or submitted under IC 6-4.1-8-4.

(g) Except as provided in subsection (i), a lien attached under IC 6-4.1-8-1 to the real property owned by a decedent terminates when an affidavit described in subsection (b) is:

(1) properly executed; and

(2) recorded in the county in which the real property is located.

(h) Except as provided in subsection (i), a lien attached under IC 6-4.1-8-1 to personal property that is owned by the decedent terminates when:

(1) an affidavit described in subsection (b) is properly executed;

(2) the affidavit described in subsection (b) is submitted to the department of state revenue or the appropriate county assessor in conformity with IC 6-4.1-8-4; and

(3) the department of state revenue or the appropriate county assessor consents to the transfer.

However, subdivision (3) does not apply if consent of the department of state revenue or the appropriate county assessor is not required under IC 6-4.1-8-4 before the property may be transferred.

(i) A lien terminated under subsection (g) or (h) is reattached to the property under IC 6-4.1-8-1 if the department of state revenue obtains an order that an inheritance tax is owed.

As added by Acts 1977(ss), P.L.6, SEC.4. Amended by Acts 1979, P.L.75, SEC.9; Acts 1980, P.L.57, SEC.8; P.L.87-1983, SEC.4; P.L.252-2001, SEC.1; P.L.6-2010, SEC.1; P.L.79-2017, SEC.16.

IC 6-4.1-4-1Inheritance tax return; contents Sec. 1. (a) Except as otherwise provided in section 0.5 of this chapter or in IC 6-4.1-5-8, the personal representative of a resident decedent's estate or the trustee or transferee of property transferred by the decedent shall file an inheritance tax return with the department of state revenue.

(b) The person filing the return shall file it under oath on the forms prescribed by the department of state revenue. The return shall:

(1) contain a statement of all property interests transferred by the decedent under taxable transfers known to the person filing the return;

(2) indicate the fair market value, as of the appraisal date prescribed by IC 6-4.1-5-1.5, of each property interest included in the statement;

(3) contain an itemized list of all inheritance tax deductions claimed with respect to property interests included in the statement;

(4) contain a list which indicates the name and address of each transferee of the property interests included in the statement and which indicates the total value of the property interests transferred to each transferee; and

(5) contain the name and address of the attorney for the personal representative or for the person filing the return.

(c) If the decedent died testate, the person filing the return shall attach a copy of the decedent's will to the return.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.5; Acts 1980, P.L.57, SEC.9; P.L.67-1988, SEC.1; P.L.252-2001, SEC.2; P.L.6-2010, SEC.2; P.L.190-2016, SEC.2; P.L.79-2017, SEC.17.

IC 6-4.1-4-2Extension of filing time; subsequent extensions Sec. 2. (a) If the Internal Revenue Service allows an extension on a federal estate tax return, the corresponding due date for the Indiana inheritance tax return is automatically extended for the same period as the federal extension.

(b) If the department of state revenue finds that because of an unavoidable delay an inheritance tax return cannot be filed before the deadline established by the appropriate probate court or the department of state revenue, the department of state revenue may extend the period for filing the return. After the expiration of the first extension period, the department of state revenue may grant a subsequent extension if the person seeking the extension files a written petition that states the reason for the delay in filing the return.

(c) For purposes of sections 3 and 6 of this chapter, an inheritance tax return is not due until the last day of any extension period or periods granted under this section.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001, SEC.3; P.L.238-2005, SEC.2; P.L.190-2016, SEC.3; P.L.79-2017, SEC.18.

IC 6-4.1-4-3Failure to file; court ordered appearance upon request of interested parties Sec. 3. The appropriate probate court shall order a person who fails to file an inheritance tax return on or before the date the return is due to appear before the court to state why the return has not been filed if an interested party files a motion asking the court to take that action. In addition, the court may on its own motion order the person to enter such an appearance.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-4-4Court order; appearance upon request of interested parties Sec. 4. The appropriate probate court may order a personal representative of a resident decedent's estate to file an inheritance tax return on or before a date fixed by the court if the personal representative appears before the court in response to an order issued by the court under section 3 of this chapter.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-4-5Removal of personal representative; grounds Sec. 5. The appropriate probate court may order the removal of the personal representative of a resident decedent's estate and appoint a successor to take the removed personal representative's place if:

(1) the personal representative fails to appear before the court in response to an order issued by it under section 3 of this chapter; or

(2) the personal representative fails to file an inheritance tax return on or before the date fixed by the court under section 4 of this chapter.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-4-6Penalties for failure to file return; waiver Sec. 6. (a) Except as provided in subsection (b), the department of state revenue shall charge a person who fails to file an inheritance tax return on or before the due date a penalty in an amount that equals:

(1) fifty cents ($0.50) per day for each day that the return is delinquent; or

(2) fifty dollars ($50);

whichever is less. The department of state revenue shall include the penalty in the inheritance tax order that it issues with respect to the decedent's estate. The person to whom the penalty is charged shall pay the penalty to the department of state revenue.

(b) The department of state revenue may waive the penalty otherwise required under subsection (a) if the department of state revenue finds that the person had a justifiable excuse for not filing the return on or before the due date.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.86-1995, SEC.6; P.L.190-2016, SEC.4; P.L.79-2017, SEC.19.

IC 6-4.1-4-7Nonresident decedent; inheritance tax return Sec. 7. (a) Except as otherwise provided in section 0.5 of this chapter, the personal representative of a nonresident decedent's estate or the trustee or transferee of property transferred by the decedent shall file an inheritance tax return with the department of state revenue within nine (9) months after the date of the decedent's death. The person filing the return shall file it under oath on the forms prescribed by the department of state revenue. The return shall:

(1) contain a statement of all property interests transferred by the decedent under taxable transfers known to the person filing the return;

(2) indicate the fair market value, as of the appraisal date prescribed by IC 6-4.1-5-1.5, of each property interest included in the statement;

(3) contain an itemized list of all inheritance tax deductions claimed with respect to property interests included in the statement;

(4) contain a list which indicates the name and address of each transferee of the property interests included in the statement and which indicates the total value of the property interests transferred to each transferee; and

(5) contain the name and address of the attorney for the personal representative or for the person filing the return.

(b) If the decedent died testate, the person filing the return shall attach a copy of the decedent's will to the return.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.6; Acts 1980, P.L.57, SEC.10; P.L.67-1988, SEC.2; P.L.252-2001, SEC.4; P.L.6-2010, SEC.3.

IC 6-4.1-4-8Federal estate tax return; filing with state Sec. 8. If a federal estate tax return is filed for a decedent's estate and if a tax is imposed under this article as a result of the decedent's death, the personal representative of the decedent's estate or the trustee or transferee of property transferred by the decedent shall:

(1) concurrently with the filing of the federal estate tax return file a signed copy of that return with the department of state revenue; and

(2) file a copy of the final determination of federal estate tax, whether issued by the internal revenue service or a federal court, with the department of state revenue within thirty (30) days after it is received.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-4-9Filing fee prohibited Sec. 9. A person may not be required to pay a fee to file an inheritance tax return.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.11.

IC 6-4.1-5Chapter 5. Determination of Inheritance Tax

6-4.1-5-0.5Applicability 6-4.1-5-1Tax rates; transfers to Classes A, B, and C transferees 6-4.1-5-1.1Repealed 6-4.1-5-1.5Fair market value; appraisal date 6-4.1-5-2Repealed 6-4.1-5-3Repealed 6-4.1-5-4Repealed 6-4.1-5-5Repealed 6-4.1-5-6Repealed 6-4.1-5-7Petition for order of no inheritance tax due 6-4.1-5-8Hearing upon petition for order of no inheritance tax due; rehearing 6-4.1-5-9Repealed 6-4.1-5-10Orders of inheritance tax and witness fees due; form 6-4.1-5-11Determination of inheritance tax due; mailing of copies to interested persons 6-4.1-5-12Repealed 6-4.1-5-13Appointment of temporary guardian 6-4.1-5-14Appraisal and determination of tax due on nonresident decedent's estate; determination without court intervention 6-4.1-5-15Orders with respect to nonresident decedent's estate; filing fees 6-4.1-5-16Notice of taxes due upon nonresident decedent's estate 6-4.1-5-17Transfers by will; property not specifically bequeathed or devised

IC 6-4.1-5-0.5Applicability Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.8. Amended by P.L.205-2013, SEC.104.

IC 6-4.1-5-1Tax rates; transfers to Classes A, B, and C transferees Sec. 1. (a) For purposes of this section, the net taxable value of property interests transferred by a decedent to a particular transferee equals the remainder of:

(1) the total fair market value of the property interests transferred by the decedent to the transferee under a taxable transfer or transfers; minus

(2) the total amount of exemptions and deductions provided under sections 9.1 through 15 of IC 6-4.1-3 (before its repeal) with respect to the property interests so transferred.

(b) The inheritance tax imposed on a decedent's transfer of property interests to a particular Class A transferee is prescribed in the following table:

NET TAXABLE VALUE OF PROPERTY INTERESTS TRANSFERRED

INHERITANCE TAX

$25,000 or less

1% of net taxable value

over $25,000 but not

over $50,000

$250, plus 2% of net

taxable value over $25,000

over $50,000 but not

over $200,000

$750, plus 3% of net

taxable value over $50,000

over $200,000 but not

over $300,000

$5,250, plus 4% of net

taxable value over $200,000

over $300,000 but not

over $500,000

$9,250, plus 5% of net

taxable value over $300,000

over $500,000 but not

over $700,000

$19,250, plus 6% of net taxable value over $500,000

over $700,000 but not

over $1,000,000

$31,250, plus 7% of net taxable value over $700,000

over $1,000,000 but not

over $1,500,000

$52,250, plus 8% of net taxable value over $1,000,000

over $1,500,000

$92,250, plus 10% of net taxable value over $1,500,000

(c) The inheritance tax imposed on a decedent's transfer of property interests to a particular Class B transferee is prescribed in the following table:

NET TAXABLE VALUE OF PROPERTY INTERESTS TRANSFERRED

INHERITANCE TAX

$100,000 or less

7% of net taxable value

over $100,000 but not

over $500,000

$7,000, plus 10% of net

taxable value over $100,000

over $500,000 but not

over $1,000,000

$47,000, plus 12% of net taxable value over $500,000

over $1,000,000

$107,000, plus 15% of net taxable value over $1,000,000

(d) The inheritance tax imposed on a decedent's transfer of property interests to a particular Class C transferee is prescribed in the following table:

NET TAXABLE VALUE OF PROPERTY INTERESTS TRANSFERRED

INHERITANCE TAX

$100,000 or less

10% of net taxable value

over $100,000 but not

over $1,000,000

$10,000, plus 15% of net taxable value over $100,000

over $1,000,000

$145,000, plus 20% of net taxable value over $1,000,000

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.7; Acts 1979, P.L.75, SEC.10; Acts 1980, P.L.57, SEC.12; P.L.87-1983, SEC.5; P.L.86-2018, SEC.78.

IC 6-4.1-5-1.1RepealedAs added by P.L.157-2012, SEC.9. Repealed by P.L.205-2013, SEC.105.

IC 6-4.1-5-1.5Fair market value; appraisal date Sec. 1.5. (a) For purposes of determining the fair market value of each property interest transferred by a decedent, the appraisal date for the property interest is the date used to value the property interest for federal estate tax purposes. However, if no federal estate tax return is filed for the decedent's estate, the appraisal date for each property interest transferred by the decedent is the date of the decedent's death.

(b) The finally determined federal estate tax value of a property interest is presumed to be the fair market value of the property interest for Indiana inheritance tax purposes, unless the federal estate tax value is determined under Section 2032A of the Internal Revenue Code. However, the presumption is rebuttable. A property interest that is valued for federal estate tax purposes under Section 2032A of the Internal Revenue Code shall be valued for Indiana inheritance tax purposes at its fair market value on the appraisal date prescribed by subsection (a).

As added by Acts 1980, P.L.57, SEC.13.

IC 6-4.1-5-2RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.14; P.L.190-2016, SEC.5. Repealed by P.L.79-2017, SEC.20.

IC 6-4.1-5-3RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002, SEC.1; P.L.190-2016, SEC.6. Repealed by P.L.79-2017, SEC.21.

IC 6-4.1-5-4RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.7. Repealed by P.L.79-2017, SEC.22.

IC 6-4.1-5-5RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.8. Repealed by P.L.79-2017, SEC.23.

IC 6-4.1-5-6RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.15; P.L.190-2016, SEC.9. Repealed by P.L.79-2017, SEC.24.

IC 6-4.1-5-7Petition for order of no inheritance tax due Sec. 7. If the personal representative of a resident decedent's estate or the trustee or transferee of property transferred by the decedent believes that no inheritance tax is imposed under this article as a result of the decedent's death, the personal representative may file a verified petition with the department of state revenue requesting that the department of state revenue enter an order stating that no inheritance tax is due. The petitioner must include in the petition a statement of the value of the property interests transferred by the decedent.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.10; P.L.79-2017, SEC.25.

IC 6-4.1-5-8Hearing upon petition for order of no inheritance tax due; rehearing Sec. 8. (a) If a petition is filed under section 7 of this chapter, the department of state revenue may hold a hearing on the petition. If the department of state revenue elects to hold a hearing, it shall give twenty (20) days notice by mail of the date, time, and place to each interested person who filed a request for notice and provided a mailing address to the department of state revenue.

(b) After the department of state revenue completes its examination of the petition, the department of state revenue may enter an order stating that no inheritance tax is due as a result of the decedent's death.

(c) If the department of state revenue enters an order under subsection (b), the petitioner is not required to file an inheritance tax return.

(d) However, a person may petition the:

(1) appropriate probate court; or

(2) department of state revenue;

under IC 6-4.1-7 for a rehearing on the order entered under subsection (b) or for a reappraisal of the property interests transferred by the decedent.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.11; P.L.79-2017, SEC.26.

IC 6-4.1-5-9RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002, SEC.2; P.L.190-2016, SEC.12. Repealed by P.L.79-2017, SEC.27.

IC 6-4.1-5-10Orders of inheritance tax and witness fees due; form Sec. 10. (a) The department of state revenue shall determine the fair market value of the property interests transferred by the resident decedent and the amount of inheritance tax due as a result of the decedent's death. The department of state revenue shall then enter an order stating the amount of inheritance tax due and the fees due witnesses payable in the same amount paid to a witness subpoenaed to appear before a court of record. If the department of state revenue finds that no inheritance tax is due, the department shall include a statement to that effect in the order. The department of state revenue shall prepare the order required by this subsection on a form prescribed by the department. The department shall include in the order a description of all Indiana real property owned by the resident decedent at the time of the decedent's death. The department shall spread the order of record in the office of the clerk of the appropriate circuit court. The clerk shall maintain the orders in a looseleaf ledger.

(b) An order issued by the department of state revenue under this section is confidential.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.16; P.L.176-2003, SEC.1; P.L.190-2016, SEC.13; P.L.79-2017, SEC.28.

IC 6-4.1-5-11Determination of inheritance tax due; mailing of copies to interested persons Sec. 11. The department of state revenue shall immediately mail a copy of its determination of the fair market value of the property interests transferred by a resident decedent and the inheritance tax due as a result of the person's death to each interested person who filed a request for notice and provided a mailing address to the department.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002, SEC.3; P.L.190-2016, SEC.14; P.L.79-2017, SEC.29.

IC 6-4.1-5-12RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.171-1984, SEC.4; P.L.192-1986, SEC.4. Repealed by P.L.305-1987, SEC.38.

IC 6-4.1-5-13Appointment of temporary guardian Sec. 13. A probate court shall appoint a temporary guardian to represent an individual if, at any time during the proceedings to determine the inheritance tax imposed as a result of a resident decedent's death, the court finds that the individual:

(1) is under eighteen (18) years of age or incapacitated (as defined in IC 29-3-1-7.5); and

(2) has an interest in the resident decedent's estate which is adverse to an interest which another person has in the estate.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.33-1989, SEC.5.

IC 6-4.1-5-14Appraisal and determination of tax due on nonresident decedent's estate; determination without court intervention Sec. 14. The department of state revenue shall determine the inheritance tax imposed as a result of a non-resident decedent's death. The department may appraise the property transferred by the decedent and determine the inheritance tax due without the intervention of a court.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-5-15Orders with respect to nonresident decedent's estate; filing fees Sec. 15. (a) The department of state revenue shall, with respect to a nonresident decedent's estate, enter an order which:

(1) states the fair market value of all property interests transferred by the decedent under taxable transfers;

(2) describes all Indiana real property so transferred by the decedent; and

(3) states the inheritance tax imposed as a result of the decedent's death.

(b) The clerk of the circuit court of each county in which real property described in the order is located shall spread a copy of the order of record.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.17; P.L.171-1984, SEC.5; P.L.192-1986, SEC.5; P.L.305-1987, SEC.8.

IC 6-4.1-5-16Notice of taxes due upon nonresident decedent's estate Sec. 16. The department of state revenue shall, by mail, give notice of the inheritance tax due as a result of a nonresident decedent's death to the personal representative of the decedent's estate or the trustee of property transferred by the decedent. However, if there is no personal representative or trustee, the department shall give the notice to each person liable for payment of the tax. Unless an appeal is initiated under IC 6-4.1-7-5 within ninety (90) days after the notice is given, the inheritance tax stated by the department in the notice is final.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-5-17Transfers by will; property not specifically bequeathed or devised Sec. 17. When property is transferred by will and is not specifically bequeathed or devised, the property is, for purposes of this article, to be treated as if it were transferred proportionately to and divided pro rata among all the general legatees and devisees named in the transferor's will, including all transfers under a residuary clause of the will.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6Chapter 6. Special Procedures for Appraising and Taxing Certain Property Interests

6-4.1-6-0.5Applicability 6-4.1-6-1Mortality standards and actuarial tables; valuation of future interests 6-4.1-6-2Property interests that may be divested 6-4.1-6-3Agreements with department for computing taxes 6-4.1-6-4Determinations of the manner in which property probably will be distributed 6-4.1-6-5Appraisal of limited, contingent, dependent, or determinable interests 6-4.1-6-6Contingent or defeasible future interests; appraisal

IC 6-4.1-6-0.5Applicability Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.10. Amended by P.L.205-2013, SEC.106.

IC 6-4.1-6-1Mortality standards and actuarial tables; valuation of future interests Sec. 1. (a) For purposes of this article, the department of state revenue shall, if possible, appraise each future, contingent, defeasible, or life interest in property and each annuity by using the rules, methods, standards of mortality, and actuarial tables used by the Internal Revenue Service on October 1, 1988, for federal estate tax purposes.

(b) Except as otherwise provided in this chapter, the value of a future interest in specific property equals the remainder of:

(1) the total value of the property; minus

(2) the value of all other interests in the property.

(c) Unless otherwise provided by the transferor, the inheritance tax imposed on the transfer of each of the interests is payable from the property in which the interests exist.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.95-1989, SEC.1; P.L.190-2016, SEC.15.

IC 6-4.1-6-2Property interests that may be divested Sec. 2. The department of state revenue shall appraise a property interest which may be divested because of an act or omission of the transferee as if there were no possibility of divestment.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.16.

IC 6-4.1-6-3Agreements with department for computing taxes Sec. 3. (a) The department of state revenue and a taxpayer may enter into an agreement under which the department will compute the inheritance tax due with respect to a taxable transfer if:

(1) it is impossible to compute the present value of the property interest transferred; or

(2) the tax imposed on the transfer cannot be computed because a contingency makes it impossible to determine who will take the property.

The personal representative of an estate or the trustee of a trust may, without court authorization, enter into such an agreement with the department on behalf of the estate or trust.

(b) When the department of state revenue enters into an agreement with a taxpayer under this section, the tax computed by the department is payable from the property interest transferred.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-4Determinations of the manner in which property probably will be distributed Sec. 4. For purposes of determining the inheritance tax imposed on a decedent's transfer of specific property, the department of state revenue shall, so far as possible, determine the manner in which the property will probably be distributed if:

(1) a contingency makes it impossible to determine each transferee's exact interest in the property; and

(2) the department of state revenue and the taxpayer fail, within a reasonable time, to enter into an agreement under section 3 of this chapter.

A person may petition the department of state revenue for a redetermination of the amount of inheritance tax imposed under this subsection in the time and manner provided under IC 6-4.1-7-1 or IC 6-4.1-7-5, whichever is applicable.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.17; P.L.79-2017, SEC.30.

IC 6-4.1-6-5Appraisal of limited, contingent, dependent, or determinable interests Sec. 5. If a probate court files an application with the department of state revenue asking the department to appraise a property interest which is limited, contingent, dependent, or determinable upon a life in being, including but not limited to a life or remainder interest, the department shall, if possible, appraise the property interest. The department shall base its appraisal on the facts stated by the court in the application, and the department shall certify its appraisal in duplicate to the court. The department's certification is competent evidence that the appraisal is correct.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-6Contingent or defeasible future interests; appraisal Sec. 6. (a) If proceedings have not been instituted under this chapter to determine the inheritance tax imposed on the decedent's transfer of a contingent or defeasible future interest in property or if the tax imposed on such a transfer is postponed under subsection (b), the department of state revenue shall, notwithstanding the provisions of IC 6-4.1-5, appraise the property interest at its fair market value when the transferee of the interest obtains the beneficial enjoyment or possession of the property.

(b) The inheritance tax imposed on the decedent's transfer of a contingent or defeasible interest in property accrues and is due when the transferee of the interest obtains the beneficial enjoyment or possession of the property if the fair market value of the property interest as of the appraisal date prescribed by IC 6-4.1-5-1.5 cannot otherwise be ascertained under this chapter.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.18; P.L.190-2016, SEC.18.

IC 6-4.1-7Chapter 7. Review of Inheritance Tax Appraisals and Tax Determinations

6-4.1-7-0.1Repealed 6-4.1-7-0.5Applicability 6-4.1-7-1Rehearing 6-4.1-7-2Reappraisal; petition; time of filing 6-4.1-7-3Appointment of reappraiser; powers; compensation 6-4.1-7-4Report or reappraisal; redetermination of taxes; filing of redetermination 6-4.1-7-5Non-resident decedent's property; appeal of department determination; procedures 6-4.1-7-6Probate court determination of tax due as provisional estimate; redetermination resulting from federal estate tax valuation 6-4.1-7-6.5Probate court review of an inheritance tax determination or appraisal made by the department of state revenue 6-4.1-7-7Redetermination of inheritance tax; appeal

IC 6-4.1-7-0.1RepealedAs added by P.L.220-2011, SEC.153. Repealed by P.L.79-2017, SEC.31.

IC 6-4.1-7-0.5Applicability Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.11. Amended by P.L.205-2013, SEC.107.

IC 6-4.1-7-1Rehearing Sec. 1. A person who is dissatisfied with an inheritance tax determination made by the department of state revenue with respect to a resident decedent's estate may obtain a hearing on the determination. To obtain the hearing, the person must file a petition for a hearing with the appropriate probate court within one hundred twenty (120) days after the determination is made. In the petition, the person must state the grounds for the hearing. The probate court shall base the hearing on evidence presented to the department of state revenue plus any additional evidence which the court elects to hear.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.48-1992, SEC.1; P.L.190-2016, SEC.19; P.L.79-2017, SEC.32.

IC 6-4.1-7-2Reappraisal; petition; time of filing Sec. 2. A person who is dissatisfied with an appraisal made by the department of state revenue with respect to a resident decedent's estate may obtain a reappraisal of the property interest involved. To obtain the reappraisal, the person must file a petition for reappraisal with the probate court within one (1) year after the department of state revenue enters an order determining the inheritance tax due as a result of the decedent's death. However, if the original appraisal is fraudulently or erroneously made, the person may file the reappraisal petition within two (2) years after the department of state revenue enters the order.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.20; P.L.79-2017, SEC.33.

IC 6-4.1-7-3Appointment of reappraiser; powers; compensation Sec. 3. When a reappraisal petition is filed under section 2 of this chapter, the probate court may appoint a competent person to reappraise the property interests transferred by the resident decedent under taxable transfers. An appraiser appointed by the court under this section has the same powers and duties, including the duty to give notice of the appraisal and the duty to make an appraisal report to the court, as the county inheritance tax appraiser had under this article as of January 1, 2016. The appointed appraiser is entitled to receive an amount fixed by the court and approved by the department of revenue as compensation for the appointed appraiser's services. After the probate court certifies to the county treasurer the amount of compensation due the appointed appraiser, the county treasurer shall pay the appraiser from county funds not otherwise appropriated.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.21.

IC 6-4.1-7-4Report or reappraisal; redetermination of taxes; filing of redetermination Sec. 4. (a) After the appraiser, if any, appointed under section 3 of this chapter files an appraisal report, the probate court shall redetermine the inheritance tax due with respect to the property interests transferred by the resident decedent. In making the redetermination, the court shall follow the same procedures the department of state revenue is required to follow under IC 6-4.1-5-8, IC 6-4.1-5-10, and IC 6-4.1-5-11 when making an original inheritance tax determination.

(b) The probate court's redetermination of the inheritance tax due supersedes:

(1) the court's original determination; or

(2) an original determination by the department of state revenue;

whichever is applicable. The court shall file a copy of the redetermination with the clerk of the court.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.1-1991, SEC.54; P.L.190-2016, SEC.22; P.L.85-2017, SEC.29; P.L.79-2017, SEC.34.

IC 6-4.1-7-5Non-resident decedent's property; appeal of department determination; procedures Sec. 5. (a) A person who is dissatisfied with an inheritance tax determination or an appraisal made by the department of state revenue with respect to property interests transferred by a non-resident decedent may appeal the department's decision to:

(1) the probate court of the county, if any, in which administration of the decedent's estate is pending; or

(2) the probate court of any county in which any of the decedent's property was located at the time of his death, if no administration of the decedent's estate is pending in Indiana.

(b) To initiate the appeal, the person must:

(1) file a complaint within ninety (90) days after the date that the department mails the notice required by IC 6-4.1-5-16; and

(2) pay, or give security to pay, the court cost resulting from the appeal and the inheritance tax to be fixed by the court.

(c) When an appeal is initiated under this section, the court may decide all questions concerning the fair market value of property interests transferred by the decedent or concerning the inheritance tax due as a result of the decedent's death.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.19.

IC 6-4.1-7-6Probate court determination of tax due as provisional estimate; redetermination resulting from federal estate tax valuation Sec. 6. (a) The department of state revenue may accept a probate court's determination of the inheritance tax due as a result of a decedent's death as a provisional estimate of the inheritance tax imposed.

(b) If the final determination of federal estate tax shows a change in the fair market value of the assets of a decedent's estate or a change in deductions, the department of state revenue may petition or cause other persons to petition the probate court which has jurisdiction for a redetermination of the inheritance tax imposed as a result of the decedent's death. The petition must be filed within sixty (60) days after a copy of the final determination of federal estate tax is filed with the department as required by IC 6-4.1-4-8. An inheritance tax redetermination which is made under this section is limited to modifications based on either a change in the fair market value of the assets of the decedent's estate or a change in deductions.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979, P.L.75, SEC.11; P.L.48-1992, SEC.2.

IC 6-4.1-7-6.5Probate court review of an inheritance tax determination or appraisal made by the department of state revenue Sec. 6.5. An inheritance tax determination or an appraisal made by the department of state revenue may not be directly appealed to the tax court. A person dissatisfied with an inheritance tax determination or an appraisal made by the department of state revenue must have the inheritance tax determination or appraisal reviewed by the appropriate probate court under section 1, 2, or 5 of this chapter, whichever is applicable. The probate court's action on the inheritance tax determination or an appraisal made by the department of state revenue may be appealed to the tax court under section 7 of this chapter.

As added by P.L.190-2016, SEC.23.

IC 6-4.1-7-7Redetermination of inheritance tax; appeal Sec. 7. A probate court's redetermination of inheritance tax under this chapter may be appealed to the tax court in accordance with the rules of appellate procedure.

As added by P.L.59-1990, SEC.1.

IC 6-4.1-8Chapter 8. Inheritance Tax Lien and Limitations on the Transfer of Decedent's Property

6-4.1-8-0.1Repealed 6-4.1-8-0.5Applicability 6-4.1-8-1Attachment and termination of lien; persons liable for inheritance tax 6-4.1-8-2Transfers prohibited until tax paid; limited transfers 6-4.1-8-3Sale of property to pay decedent's debts 6-4.1-8-4Personal property; consent to transfer 6-4.1-8-4.5Repealed 6-4.1-8-4.6Checking account; notice of transfer of funds to person other than surviving spouse 6-4.1-8-5Life insurance proceeds; damages payable in a cause of action maintained by a personal representative 6-4.1-8-6Repealed 6-4.1-8-7Violations of IC 6-4.1-8-4 or IC 6-4.1-8-5; penalties 6-4.1-8-8Repealed

IC 6-4.1-8-0.1RepealedAs added by P.L.220-2011, SEC.154. Repealed by P.L.79-2017, SEC.35.

IC 6-4.1-8-0.5Applicability Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.12. Amended by P.L.205-2013, SEC.108.

IC 6-4.1-8-1Attachment and termination of lien; persons liable for inheritance tax Sec. 1. The inheritance tax imposed as a result of a decedent's death is a lien on the property transferred by the decedent. Except as otherwise provided in IC 6-4.1-6-6(b), the inheritance tax accrues and the lien attaches at the time of the decedent's death. The lien terminates when the inheritance tax is paid, when IC 6-4.1-4-0.5 provides for the termination of the lien, or ten (10) years after the date of the decedent's death, whichever occurs first. In addition to the lien, the transferee of the property and any personal representative or trustee who has possession of or control over the property are personally liable for the inheritance tax.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001, SEC.5; P.L.182-2009(ss), SEC.231.

IC 6-4.1-8-2Transfers prohibited until tax paid; limited transfers Sec. 2. (a) The personal representative of a decedent's estate or the trustee of property transferred by the decedent may not transfer or deliver property to a transferee unless the inheritance tax imposed with respect to the transfer has been paid.

(b) If money is transferred by the decedent to a transferee for a limited period of time, the personal representative or trustee shall retain the total inheritance tax imposed on all the interests in the money.

(c) If property other than money is transferred by the decedent to a transferee for a limited period of time, the transferees of the interests in the property shall pay to the personal representative or trustee the inheritance tax imposed on the interests. The personal representative or trustee shall apply to the department of state revenue for a determination of the amount which each transferee is required to pay under this subsection.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.79-2017, SEC.36.

IC 6-4.1-8-3Sale of property to pay decedent's debts Sec. 3. In order to pay the inheritance tax imposed as a result of a decedent's death, the personal representative of the decedent's estate or the trustee of property transferred by the decedent may sell property transferred by the decedent. The personal representative or trustee may sell the property in the same manner that he is authorized to sell property to pay the decedent's debts.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-8-4Personal property; consent to transfer Sec. 4. (a) A person who has possession of or control over personal property held jointly by a resident decedent and another person may not transfer the property to the surviving joint tenant, unless:

(1) the surviving joint tenant is the decedent's surviving spouse; or

(2) the property is money held in a joint checking account;

without the written consent of the department of state revenue or the county assessor of the county in which the resident decedent was domiciled at the time of the decedent's death.

(b) Except as provided in subsection (c), a person who has possession of or control over personal property held in a trust that is subject to the Indiana inheritance tax or estate tax (before its repeal) at the time of a resident decedent's death may not transfer the property to a beneficiary or any other person, unless the beneficiary or other person is the decedent's surviving spouse, without the written consent of the department of state revenue or the county assessor of the county in which the resident decedent was domiciled at the time of the decedent's death.

(c) A person who has possession of or control over personal property held in trust may transfer the property without the written consent of the department of state revenue or the county assessor of the county in which the resident decedent was domiciled at the time of the decedent's death under the following conditions:

(1) The transferee is domiciled in Indiana.

(2) The transferee completes a sworn affidavit on a form prescribed by the department of state revenue that states:

(A) the transfer of the personal property is not subject to Indiana inheritance tax or estate tax (before its repeal); and

(B) the reasons the transfer is not subject to tax.

(3) A copy of the affidavit required under subdivision (2) is immediately filed with the department of state revenue.

(d) A person who has possession of or control over a resident decedent's personal property (except proceeds payable under a life insurance policy) may not transfer the property to any other person, unless:

(1) the other person is the decedent's surviving spouse; or

(2) the property is money held in a checking account;

without the written consent of the department of state revenue or the county assessor of the county in which the resident decedent was domiciled at the time of the decedent's death.

(e) The department of state revenue or the appropriate county assessor may consent to a transfer if the department or the county assessor believes that the transfer will not jeopardize the collection of inheritance tax.

(f) The department of state revenue shall send a copy of any consent to transfer that it issues under this section to the county assessor of the county in which the resident decedent was domiciled at the time of the decedent's death.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.8; Acts 1980, P.L.57, SEC.20; Acts 1981, P.L.91, SEC.1; P.L.59-1996, SEC.1; P.L.205-2013, SEC.109.

IC 6-4.1-8-4.5RepealedAs added by Acts 1980, P.L.57, SEC.21. Amended by Acts 1981, P.L.91, SEC.2. Repealed by Acts 1982, P.L.57, SEC.1.

IC 6-4.1-8-4.6Checking account; notice of transfer of funds to person other than surviving spouse Sec. 4.6. A person who has possession of or control over money held in a checking account in which a resident decedent had a legal interest shall notify the department when money is transferred from the account to a person, other than the resident decedent's surviving spouse.

As added by P.L.26-1985, SEC.11. Amended by P.L.79-2017, SEC.37.

IC 6-4.1-8-5Life insurance proceeds; damages payable in a cause of action maintained by a personal representative Sec. 5. (a) Within ten (10) days after life insurance proceeds are paid to a resident decedent's estate, the life insurance company shall give notice of the payment to the department of state revenue.

(b) Not later than ten (10) days after damages payable under a cause of action maintained by a personal representative under IC 34-9-3-4 are paid to a resident decedent's estate, the person making the payment shall give notice of the payment to the department of state revenue.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.9; P.L.157-1992, SEC.1; P.L.6-1999, SEC.1; P.L.143-2009, SEC.2; P.L.79-2017, SEC.38.

IC 6-4.1-8-6RepealedAs added by Acts 1976, P.L.18, SEC.1. Repealed by P.L.6-1999, SEC.2.

IC 6-4.1-8-7Violations of IC 6-4.1-8-4 or IC 6-4.1-8-5; penalties Sec. 7. If a person violates a provision of section 4 or 5 of this chapter, he is liable for the taxes imposed under this article as a result of the resident decedent's death and is subject to an additional penalty not to exceed one thousand dollars ($1,000). The department of state revenue shall initiate an action in the name of this state to collect the taxes and the penalty which the person is liable for under this section.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.22; P.L.87-1983, SEC.6.

IC 6-4.1-8-8RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1978, P.L.2, SEC.624. Repealed by P.L.6-1999, SEC.2.

IC 6-4.1-9Chapter 9. General Inheritance Tax Collection Provisions

6-4.1-9-0.1Repealed 6-4.1-9-0.5Applicability 6-4.1-9-1Due date for taxes; interest on delinquent portion; unavoidable delays 6-4.1-9-1.5Due date for taxes when petition for redetermination of inheritance taxes filed 6-4.1-9-2Repealed 6-4.1-9-3Inheritance tax due as result of non-resident decedent's death; book showing tax due 6-4.1-9-4Tax payments resulting from non-resident decedent's death; monthly reports 6-4.1-9-5Collection and payment of taxes 6-4.1-9-6State and county tax allocation amounts; deposit of interest or penalties in state general fund 6-4.1-9-7Repealed 6-4.1-9-8Repealed 6-4.1-9-9Repealed 6-4.1-9-10Repealed 6-4.1-9-11Action for failure to pay inheritance tax; payment of tax after prosecution 6-4.1-9-12Appointment of resident or special administrator for non-resident decedent's estate 6-4.1-9-13Repealed

IC 6-4.1-9-0.1RepealedAs added by P.L.220-2011, SEC.155. Repealed by P.L.79-2017, SEC.39.

IC 6-4.1-9-0.5Applicability Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.13. Amended by P.L.205-2013, SEC.110.

IC 6-4.1-9-1Due date for taxes; interest on delinquent portion; unavoidable delays Sec. 1. (a) Except as otherwise provided in IC 6-4.1-6-6(b), the inheritance tax imposed as a result of a decedent's death is due twelve (12) months after the person's date of death. If a person liable for payment of inheritance tax does not pay the tax on or before the due date, the person shall, except as provided in subsection (b), pay interest on the delinquent portion of the tax at the rate of ten percent (10%) per year from the date of the decedent's death to the date payment is made.

(b) If an unavoidable delay, such as necessary litigation, prevents a determination of the amount of inheritance tax due, the department of state revenue may reduce the rate of interest imposed under this section, for the time period beginning on the date of the decedent's death and ending when the cause of delay is removed, to six percent (6%) per year.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001, SEC.6; P.L.190-2016, SEC.24; P.L.79-2017, SEC.40.

IC 6-4.1-9-1.5Due date for taxes when petition for redetermination of inheritance taxes filed Sec. 1.5. If inheritance tax is imposed because a petition is filed under IC 6-4.1-7-6, the inheritance tax so imposed is, notwithstanding section 1 of this chapter, not due until thirty (30) days after notice of the final determination of federal estate tax is received by a person liable for paying the inheritance tax. If any inheritance tax so imposed is not paid on or before the due date, the person liable for paying the tax shall pay interest on the delinquent tax at the rate of six percent (6%) per year from the due date until the tax is paid.

As added by Acts 1976, P.L.19, SEC.2.

IC 6-4.1-9-2RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001, SEC.7. Repealed by P.L.79-2017, SEC.41.

IC 6-4.1-9-3Inheritance tax due as result of non-resident decedent's death; book showing tax due Sec. 3. The department of state revenue shall maintain a book which indicates the amount of inheritance tax due as a result of a non-resident decedent's death. When the department gives an inheritance tax notice required by IC 6-4.1-5-16, the department shall concurrently enter in the book the amount of inheritance tax stated in the notice. The book required by this section is a public record.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-9-4Tax payments resulting from non-resident decedent's death; monthly reports Sec. 4. A person who is liable for inheritance tax imposed as a result of a non-resident decedent's death shall pay the tax to the department of state revenue. The department shall collect the tax and shall issue a receipt to the person who pays it. On the first Monday of each month, the department shall report and remit to the state treasurer the inheritance tax collected by it during the preceding month under this section. The report must indicate the estates for which the inheritance taxes were paid.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-9-5Collection and payment of taxes Sec. 5. (a) A person who is liable for inheritance tax imposed as a result of a resident decedent's death shall pay the tax to the department of state revenue.

(b) If a person described in subsection (a) believes that more inheritance tax is due as a result of the resident decedent's death than the amount of tax determined by the department of state revenue under IC 6-4.1-5-10, the person may, without obtaining another determination from the department of state revenue, pay the additional tax and any interest due on the additional tax to the department of state revenue.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979, P.L.75, SEC.12; Acts 1980, P.L.57, SEC.23; P.L.86-1995, SEC.7; P.L.190-2016, SEC.25; P.L.79-2017, SEC.42.

IC 6-4.1-9-6State and county tax allocation amounts; deposit of interest or penalties in state general fund Sec. 6. (a) The department of state revenue shall distribute inheritance taxes collected as the result of the death of a resident decedent as follows:

(1) The department shall retain ninety-two percent (92%) of the taxes collected for deposit in the state general fund.

(2) The department shall retain any interest or penalties collected by the department for deposit in the state general fund.

(3) Subject to subsection (b), the department shall distribute eight percent (8%) of the taxes collected to the county treasurer of the county in which the resident decedent lived at the time of the resident decedent's death for deposit in the county general fund.

(b) In a county having a consolidated city, the amount due the county under this section shall be transferred to the general fund of the consolidated city.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.24; Acts 1981, P.L.11, SEC.33; P.L.86-1995, SEC.8; P.L.190-2016, SEC.26; P.L.79-2017, SEC.43.

IC 6-4.1-9-7RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.30-1994, SEC.7; P.L.190-2016, SEC.27. Repealed by P.L.79-2017, SEC.44.

IC 6-4.1-9-8RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.28. Repealed by P.L.79-2017, SEC.45.

IC 6-4.1-9-9RepealedAs added by Acts 1976, P.L.18, SEC.1. Repealed by P.L.79-2017, SEC.46.

IC 6-4.1-9-10RepealedAs added by Acts 1976, P.L.18, SEC.1. Repealed by P.L.30-1994, SEC.8.

IC 6-4.1-9-11Action for failure to pay inheritance tax; payment of tax after prosecution Sec. 11. (a) If the department of state revenue believes that a person has failed to pay inheritance tax for which the person is liable under a court order, the department may file in the appropriate probate court an action in the name of the state to enforce payment of the tax. This action must be commenced within ten (10) years after the date of the order imposing the tax unless the court or the department of state revenue, whichever is applicable, has not complied with IC 6-4.1-5-11. Every person who is liable for the inheritance tax is liable to the department of state revenue for payment of the tax. The amounts collected under this section shall be distributed under section 6 of this chapter.

(b) When an action has been successfully prosecuted under this section, the person who is liable for the inheritance tax due from any property which is subject to the inheritance tax shall then pay the amount due from the person to the department of state revenue.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.26-1985, SEC.12; P.L.60-1996, SEC.1; P.L.79-2017, SEC.47.

IC 6-4.1-9-12Appointment of resident or special administrator for non-resident decedent's estate Sec. 12. The Probate Court of Marion County may appoint a resident or special administrator for a non-resident decedent's estate if the department of state revenue shows:

(1) that the department has reason to believe that a property interest transferred by the decedent under a taxable transfer has not been appraised for inheritance tax purposes in the manner required by this article and that the property involved is located in this state; or

(2) that the inheritance tax imposed as a result of the decedent's death, as determined by the department, has not been paid and it has been at least two (2) years since the decedent died.

A resident or special administrator appointed by the court under this section has the same powers and duties as a general administrator.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-9-13RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.10. Repealed by Acts 1979, P.L.75, SEC.15.

IC 6-4.1-10Chapter 10. Refund of Inheritance Tax Erroneously or Illegally Collected

6-4.1-10-1Refund for illegally or erroneously collected tax; time for filing 6-4.1-10-1.5Repealed 6-4.1-10-2Time limits for filing for property interests under IC 6-4.1-6 6-4.1-10-3Orders for refund; funds from which payable; credit 6-4.1-10-4Appeal of refund order; complaint; jurisdiction 6-4.1-10-5Probate court determination; appeal 6-4.1-10-6Annual appropriation to pay refund

IC 6-4.1-10-1Refund for illegally or erroneously collected tax; time for filing Sec. 1. (a) A person may file with the department of state revenue a claim for the refund of inheritance tax or Indiana estate tax (paid before its repeal) which has been erroneously or illegally collected. Except as provided in section 2 of this chapter, the person must file the claim within:

(1) three (3) years after the tax is paid; or

(2) one (1) year after the tax is finally determined under IC 6-4.1-5-10;

whichever is later.

(b) A person must file a claim for a refund on a form prescribed by the department of state revenue. The claim must include:

(1) the amount of the refund claimed; and

(2) the reason the person is entitled to a refund.

(c) The amount of the refund that a person is entitled to receive under this chapter equals the amount of the erroneously or illegally collected tax, plus interest calculated as specified in subsection (d).

(d) If a tax payment that has been erroneously or illegally collected is not refunded within ninety (90) days after the later of the date on which:

(1) the refund claim is filed with the department of state revenue; or

(2) the department of state revenue receives:

(A) the inheritance tax return and order required under IC 6-4.1-5-10, in the case of a resident decedent; or

(B) the inheritance tax return, in the case of a nonresident decedent;

interest accrues at the rate of six percent (6%) per annum computed from the date under subdivision (1) or (2), whichever applies, until the tax payment is refunded.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.25; P.L.211-2007, SEC.33; P.L.182-2009(ss), SEC.232; P.L.205-2013, SEC.111.

IC 6-4.1-10-1.5RepealedAs added by P.L.205-2013, SEC.112. Repealed by P.L.79-2017, SEC.48.

IC 6-4.1-10-2Time limits for filing for property interests under IC 6-4.1-6 Sec. 2. The time limits prescribed in section 1 of this chapter for filing a refund claim do not apply if the claim is for the refund of inheritance tax which has been determined in the manner provided in IC 6-4.1-6.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-10-3Orders for refund; funds from which payable; credit Sec. 3. (a) The department of state revenue shall review each claim for refund and shall enter an order either approving, partially approving, or disapproving the refund. If the department either approves or partially approves a claim for refund, the department shall send a copy of the order to:

(1) the treasurer of the county that collected the tax, if the refund applies to inheritance tax collected as a result of a resident decedent's death; and

(2) the treasurer of state.

The treasurer of state shall pay the refund from money which is under his control and which has not otherwise been appropriated. The treasurer of state shall receive a credit for the county portion of the amount so refunded, and the county treasurer of the county owing the credit shall account for the credit on the county's inheritance tax report for the quarter in which the refund is paid.

(b) Within five (5) days after entering an order with respect to a claim for refund filed under section 1 of this chapter, the department shall send a copy of the order to the person who filed the claim.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.26; P.L.98-2000, SEC.5.

IC 6-4.1-10-4Appeal of refund order; complaint; jurisdiction Sec. 4. (a) A person who files a claim for the refund of inheritance tax or Indiana estate tax (paid before its repeal) may appeal any refund order which the department of state revenue enters with respect to the person's claim. To initiate the appeal, the person must, within ninety (90) days after the department enters the order, file a complaint in which the department is named as the defendant.

(b) The court which has jurisdiction over an appeal initiated under this section is:

(1) the probate court of the county in which administration of the estate is pending, if the appeal involves either a resident or a nonresident decedent's estate and administration of the estate is pending;

(2) the probate court of the county in which the decedent was domiciled at the time of the decedent's death, if the appeal involves a resident decedent's estate and no administration of the estate is pending in Indiana; or

(3) the probate court of any county in which any of the decedent's property was located at the time of the decedent's death, if the appeal involves a nonresident decedent's estate and no administration of the estate is pending in Indiana.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.27; P.L.205-2013, SEC.113.

IC 6-4.1-10-5Probate court determination; appeal Sec. 5. When an appeal is initiated under section 4 of this chapter, the probate court shall determine the amount of any tax refund due. Either party may appeal the probate court's decision to the tax court in accordance with the rules of appellate procedure.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980, P.L.57, SEC.28; P.L.59-1990, SEC.2.

IC 6-4.1-10-6Annual appropriation to pay refund Sec. 6. Amounts sufficient to pay the refunds provided for under this chapter are annually appropriated.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-11Chapter 11. RepealedRepealed by P.L.79-2017, SEC.49.

IC 6-4.1-11.5Chapter 11.5. RepealedRepealed by P.L.205-2013, SEC.122.

IC 6-4.1-12Chapter 12. General Administrative Provisions

6-4.1-12-0.5Inheritance tax not imposed on a transfer of property resulting from the death of an individual who dies after December 31, 2012 6-4.1-12-1Powers of the probate court 6-4.1-12-2Appraisal of transferred property interests 6-4.1-12-3Repealed 6-4.1-12-4Repealed 6-4.1-12-5Compromise agreements concerning tax or interest on delinquency 6-4.1-12-6Powers and duties of department of state revenue 6-4.1-12-6.5Determination of department of state revenue resulting in tax increase; statement in rules 6-4.1-12-7Investigative powers of department of state revenue; witness fees 6-4.1-12-8Inheritance tax administrator; appointment; salary 6-4.1-12-9Powers and duties of inheritance tax administrator 6-4.1-12-10Special auditor, appraiser, or counsel; compensation 6-4.1-12-11Information and investigations concerning non-resident's estates 6-4.1-12-12Disclosure of inheritance tax information; offense

IC 6-4.1-12-0.5Inheritance tax not imposed on a transfer of property resulting from the death of an individual who dies after December 31, 2012 Sec. 0.5. (a) For an individual who dies after December 31, 2012, there is no inheritance tax imposed on the decedent's transfer of property interests.

(b) Sections 1 through 12 of this chapter do not apply to a property interest transferred by a decedent whose death occurs after December 31, 2012.

As added by P.L.157-2012, SEC.15. Amended by P.L.205-2013, SEC.123.

IC 6-4.1-12-1Powers of the probate court Sec. 1. (a) Except as otherwise provided in this article, the probate court of the county:

(1) in which a resident decedent was domiciled at the time of the decedent's death; or

(2) in which the resident decedent's estate is being administered, if different from the county described in subdivision (1);

has jurisdiction to determine the inheritance tax imposed as a result of the resident decedent's death and to hear all matters related to the tax determination. However, if two (2) or more courts in a county have probate jurisdiction, the first court acquiring jurisdiction under this article acquires exclusive jurisdiction over the inheritance tax determination.

(b) In the case of an inheritance tax return filed after March 31, 2016, the probate court having jurisdiction under subsection (a) does not have the power to make original inheritance tax determinations. The probate court may hear the following matters with respect to an inheritance tax return filed after March 31, 2016, for a resident decedent:

(1) Any matter subject to IC 6-4.1-4-3 through IC 6-4.1-4-5.

(2) Any matter subject to IC 6-4.1-5-13.

(3) Petitions for a redetermination of inheritance tax due or a reappraisal of a property interest under IC 6-4.1-7.

(4) An appeal of a refund order under IC 6-4.1-10-4.

As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss), P.L.6, SEC.11; P.L.86-1995, SEC.9; P.L.190-2016, SEC.29.

IC 6-4.1-12-2Appraisal of transferred property interests Sec. 2. To determine the inheritance tax with respect to an inheritance tax return filed after March 31, 2016, the department of state revenue shall appraise a property interest transferred by a resident decedent.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.30; P.L.79-2017, SEC.50.

IC 6-4.1-12-3RepealedAs added by Acts 1976, P.L.18, SEC.1. Repealed by Acts 1982, P.L.1, SEC.71.

IC 6-4.1-12-4RepealedAs added by Acts 1976, P.L.18, SEC.1. Amended by P.L.190-2016, SEC.31. Repealed by P.L.79-2017, SEC.51.

IC 6-4.1-12-5Compromise agreements concerning tax or interest on delinquency Sec. 5. (a) If one (1) of the conditions listed in subsection (b) of this section exists, the department of state revenue may, with the advice and approval of the attorney general, enter into a compromise agreement concerning the amount of any inheritance tax, or interest charges on delinquent inheritance tax, to be collected under this article. The department may enter into such an agreement with the personal representative of a decedent's estate or with the transferee of property transferred by the decedent.

(b) The department may enter into a compromise agreement under this section only if the department and the attorney general believe that a substantial doubt exists as to:

(1) the right to impose the tax under applicable Indiana law;

(2) the constitutionality, under either the Indiana or United States Constitutions, of the imposition of the tax;

(3) the correct value of property transferred under a taxable transfer;

(4) the correct amount of tax due;

(5) the collectability of the tax; or

(6) whether the decedent was a resident or a non-resident of this state.

(c) After payment of the inheritance tax agreed to by the parties to a compromise agreement entered into under this section, the issue of the amount of tax to be collected may be reopened only if the agreement was entered into fraudulently.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-12-6Powers and duties of department of state revenue Sec. 6. The department of state revenue:

(1) shall supervise the enforcement of this article;

(2) shall supervise the collection of taxes imposed under this article;

(3) shall investigate the manner in which this article is administered and enforced in the various counties of this state;

(4) shall provide the forms and books required to implement this article;

(5) shall promulgate any rules or regulations which are necessary for the interpretation or the enforcement of this article;

(6) may investigate any facts or circumstances which are relevant to the taxes imposed under this article;

(7) shall provide the inheritance tax administrator with a secretary; and

(8) may provide the inheritance tax administrator with assistants, clerks, or stenographers.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-12-6.5Determination of department of state revenue resulting in tax increase; statement in rules Sec. 6.5. All changes in the department of state revenue's interpretations of IC 6-4.1 that could increase a person's tax liability must be stated in rules promulgated under IC 4-22-2. In no event may a change in a departmental interpretation of IC 6-4.1 that could increase a person's tax liability take effect before the date on which it is promulgated in a rule.

As added by Acts 1979, P.L.75, SEC.14.

IC 6-4.1-12-7Investigative powers of department of state revenue; witness fees Sec. 7. For the purpose of conducting an investigation described under section 6(3) or 6(6) of this chapter, the department of state revenue may:

(1) subpoena evidence;

(2) subpoena witnesses;

(3) administer oaths; or

(4) take testimony concerning any matter.

Each witness examined by the department is entitled to receive a fee equal to the same fee paid witnesses subpoenaed to appear before a court of record. The witness fee shall be paid in the same manner that erroneous tax payments are refunded under IC 6-4.1-10.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.79-2017, SEC.52.

IC 6-4.1-12-8Inheritance tax administrator; appointment; salary Sec. 8. The governor shall, with the advice of the department of state revenue, appoint a state inheritance tax administrator. The inheritance tax administrator shall receive a salary to be fixed in the manner prescribed in IC 4-12-1-13. In addition, he shall receive the same mileage and travel allowances which other state employees receive.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-12-9Powers and duties of inheritance tax administrator Sec. 9. The inheritance tax administrator:

(1) shall supervise the administration of this article;

(2) shall, on behalf of the department of state revenue, perform the administrative duties assigned to the department under this article;

(3) shall file reports with the department of state revenue on the first day of January, April, July, and October of each year;

(4) may, with the approval of the governor, employ special auditors or appraisers to appraise any property interest which is transferred by a decedent under a taxable transfer; and

(5) may, with the approval of the governor, employ special counsel to advise the administrator or to represent the administrator or the department of state revenue in any proceeding initiated by or against the administrator or the department.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-12-10Special auditor, appraiser, or counsel; compensation Sec. 10. A special auditor, appraiser, or counsel appointed by the inheritance tax administrator under section 9 of this chapter shall receive compensation for the individual's services in an amount fixed by the administrator and the governor. When a claim for the compensation is approved by the administrator and the governor, the state comptroller shall issue a warrant to the claimant in the amount so approved. The state comptroller shall draw the warrant on taxes collected under this article. The state treasurer shall pay the warrant.

As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.9-2024, SEC.197.

IC 6-4.1-12-11Information and investigations concerning non-resident's estates Sec. 11. The department of state revenue and the inheritance tax administrator shall gather information and make investigations concerning the estates of non-residents whose deaths result in the imposition of a tax under this article.

As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-12-12Disclosure of inheritance tax information; offense Sec. 12. (a) The department, the department's counsel, agents, clerks, stenographers, other employees, or former employees, or any other person who gains access to the inheritance tax files shall not divulge any information disclosed by the documents required to be filed under this article. However, disclosure may be made in the following cases:

(1) To comply with an order of a court.

(2) To the members and employees of the department.

(3) To the members and employees of county offices and courts to the extent they need the information for inheritance tax purposes. IC 5-14-3-6.5 does not apply to this subdivision.

(4) To the governor.

(5) To the attorney general.

(6) To any other legal representative of the state in any action pertaining to the tax due under this article.

(7) To any authorized officer of the United States, when the recipient agrees that the information is confidential and will be used solely for official purposes.

(8) Upon the receipt of a certified request, to any designated officer of a tax department of any other state, district, territory, or possession of the United States, when the state, district, territory, or possession permits the exchange of like information with the taxing officials of Indiana and when the recipient agrees that the information is confidential and will be used solely for tax collection purposes.

(9) Upon receipt of a written request, to the director of the department of child services or to the director of the division of family resources and to any county director of family and children, when the recipient agrees that the information is confidential and will be used only in connection with their official duties.

(10) To the attorney listed on the inheritance tax return under IC 6-4.1-4-1 or IC 6-4.1-4-7.

(11) To a devisee, an heir, a successor in interest, or a surviving joint tenant of the decedent for whom an inheritance tax return was filed or, upon the receipt of a written request, to an agent or attorney of a devisee, an heir, a successor in interest, or a surviving joint tenant of the decedent.

(b) Any person who knowingly violates this section:

(1) commits a Class C misdemeanor; and

(2) shall be immediately dismissed from the person's office or employment, if the person is an officer or employee of the state.

As added by P.L.26-1985, SEC.13. Amended by P.L.67-1988, SEC.3; P.L.58-1990, SEC.4; P.L.2-1992, SEC.70; P.L.4-1993, SEC.10; P.L.5-1993, SEC.22; P.L.145-2006, SEC.18.

IC 6-5ARTICLE 5. REPEALED[Pre-1975 Property Tax Recodification Citation:

6-5-1-34formerly 6-1-1-2(19).]Repealed by P.L.192-2002(ss), SEC.191.

IC 6-5.1ARTICLE 5.1. REPEALEDRepealed by P.L.80-1989, SEC.18.

IC 6-5.5ARTICLE 5.5. TAXATION OF FINANCIAL INSTITUTIONS

Ch. 1.Definitions Ch. 2.Imposition of Tax Ch. 3.Business Transaction Rules Ch. 4.Rules for Attributing Receipts Ch. 5.Alternative Calculations; Combined Returns Ch. 6.Returns Ch. 7.Penalties Ch. 8.Financial Institutions Tax Fund Ch. 9.Miscellaneous

IC 6-5.5-1Chapter 1. Definitions

6-5.5-1-1Application of definitions 6-5.5-1-2"Adjusted gross income" 6-5.5-1-3"Business of a financial institution" 6-5.5-1-4"Commercial domicile" 6-5.5-1-5"Compensation" 6-5.5-1-6"Corporation" 6-5.5-1-7"Department" 6-5.5-1-8"Employee" 6-5.5-1-9"Foreign bank" 6-5.5-1-10"Gross income" 6-5.5-1-11"Internal Revenue Code" 6-5.5-1-12"Nonresident taxpayer" 6-5.5-1-13"Resident taxpayer" 6-5.5-1-14"Subsidiary" 6-5.5-1-15"Taxable year" 6-5.5-1-16"Taxing jurisdiction" 6-5.5-1-17"Taxpayer" 6-5.5-1-18"Unitary business" 6-5.5-1-19"Partnership" 6-5.5-1-20"Bonus depreciation" 6-5.5-1-21"Loans arising in factoring"

IC 6-5.5-1-1Application of definitions Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-2"Adjusted gross income" Sec. 2. (a) Except as provided in subsections (b) through (d), "adjusted gross income" means taxable income as defined in Section 63 of the Internal Revenue Code, adjusted as follows:

(1) Add the following amounts:

(A) An amount equal to a deduction allowed or allowable under Section 166, Section 585, or Section 593 of the Internal Revenue Code.

(B) An amount equal to a deduction allowed or allowable under Section 170 of the Internal Revenue Code.

(C) An amount equal to a deduction or deductions allowed or allowable under Section 63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by a state of the United States or levied at the local level by any subdivision of a state of the United States.

(D) The amount of interest excluded under Section 103 of the Internal Revenue Code or under any other federal law, minus the associated expenses disallowed in the computation of taxable income under Section 265 of the Internal Revenue Code.

(E) An amount equal to the deduction allowed under Section 172 or 1212 of the Internal Revenue Code for net operating losses or net capital losses.

(F) For a taxpayer that is not a large bank (as defined in Section 585(c)(2) of the Internal Revenue Code), an amount equal to the recovery of a debt, or part of a debt, that becomes worthless to the extent a deduction was allowed from gross income in a prior taxable year under Section 166(a) of the Internal Revenue Code.

(G) Add 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 been made under Section 168(k) of the Internal Revenue Code to not apply bonus depreciation to the property in the year that it was placed in service.

(H) Add 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 the sum of:

(i) twenty-five thousand dollars ($25,000) to the extent deductions under Section 179 of the Internal Revenue Code were not elected as provided in item (ii); and

(ii) for taxable years beginning after December 31, 2017, the deductions elected under Section 179 of the Internal Revenue Code on property acquired in an exchange if the exchange would have been eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017, the exchange is not eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code, and the taxpayer made an election to take deductions under Section 179 of the Internal Revenue Code with regard to the acquired property in the year that the property was placed into service. The amount of deductions allowable for an item of property under this item may not exceed the amount of adjusted gross income realized on the property that would have been deferred under the Internal Revenue Code in effect on January 1, 2017.

(I) 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.

(J) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal Revenue Code for active financing income under Subpart F, Subtitle A, Chapter 1, Subchapter N of the Internal Revenue Code.

(K) Add an amount equal to the remainder of:

(i) the amount allowable as a deduction under Section 274(n) of the Internal Revenue Code; minus

(ii) the amount otherwise allowable as a deduction under Section 274(n) of the Internal Revenue Code, if Section 274(n)(2)(D) of the Internal Revenue Code was not in effect for amounts paid or incurred after December 31, 2020.

(2) Subtract the following amounts:

(A) Income that the United States Constitution or any statute of the United States prohibits from being used to measure the tax imposed by this chapter.

(B) Income that is derived from sources outside the United States, as defined by the Internal Revenue Code.

(C) An amount equal to a debt or part of a debt that becomes worthless, as permitted under Section 166(a) of the Internal Revenue Code.

(D) An amount equal to any bad debt reserves that are included in federal income because of accounting method changes required by Section 585(c)(3)(A) or Section 593 of the Internal Revenue Code.

(E) 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 been made under Section 168(k) of the Internal Revenue Code to not apply bonus depreciation.

(F) 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 the sum of:

(i) twenty-five thousand dollars ($25,000) to the extent deductions under Section 179 of the Internal Revenue Code were not elected as provided in item (ii); and

(ii) for taxable years beginning after December 31, 2017, the deductions elected under Section 179 of the Internal Revenue Code on property acquired in an exchange if the exchange would have been eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017, the exchange is not eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code, and the taxpayer made an election to take deductions under Section 179 of the Internal Revenue Code with regard to the acquired property in the year that the property was placed into service. The amount of deductions allowable for an item of property under this item may not exceed the amount of adjusted gross income realized on the property that would have been deferred under the Internal Revenue Code in effect on January 1, 2017.

(G) Income that is:

(i) exempt from taxation under IC 6-3-2-21.7; and

(ii) included in the taxpayer's taxable income under the Internal Revenue Code.

(H) The amount that would have been excluded from gross income but for the enactment of Section 118(b)(2) of the Internal Revenue Code for taxable years ending after December 22, 2017.

(I) For taxable years ending after March 12, 2020, an amount equal to the deduction disallowed pursuant to:

(i) Section 2301(e) of the CARES Act (Public Law 116-136), as modified by Sections 206 and 207 of the Taxpayer Certainty and Disaster Relief Tax Act (Division EE of Public Law 116-260); and

(ii) Section 3134(e) of the Internal Revenue Code.

(J) Subtract an amount equal to the deduction disallowed under Section 280C(h) of the Internal Revenue Code.

(3) Make the following adjustments:

(A) Subtract the amount of any interest expense paid or accrued in the current taxable year but not deducted as a result of the limitation imposed under Section 163(j)(1) of the Internal Revenue Code.

(B) Add any interest expense paid or accrued in a previous taxable year but allowed as a deduction under Section 163 of the Internal Revenue Code in the current taxable year.

(C) For taxable years beginning after December 31, 2021, add or subtract amounts related to specified research or experimental expenditures as required under IC 6-3-2-29.

(D) Add or subtract an amount equal to the modifications required for qualified production property under IC 6-3-2-30.

For purposes of this subdivision, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable under Section 163 of the Internal Revenue Code if the limitation under Section 163(j)(1) of the Internal Revenue Code did not exist.

(b) In the case of a credit union, "adjusted gross income" for a taxable year means the total transfers to undivided earnings minus dividends for that taxable year after statutory reserves are set aside under IC 28-7-1-24.

(c) In the case of an investment company, "adjusted gross income" means the company's federal taxable income adjusted as follows:

(1) 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.

(2) Make the following adjustments:

(A) Subtract the amount of any interest expense paid or accrued in the current taxable year but not deducted as a result of the limitation imposed under Section 163(j)(1) of the Internal Revenue Code.

(B) Add any interest expense paid or accrued in a previous taxable year but allowed as a deduction under Section 163 of the Internal Revenue Code in the current taxable year.

For purposes of this subdivision, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable under Section 163 of the Internal Revenue Code if the limitation under Section 163(j)(1) of the Internal Revenue Code did not exist.

(3) Multiply the amount determined after the adjustments in subdivisions (1) and (2) by the quotient of:

(A) the aggregate of the gross payments collected by the company during the taxable year from old and new business upon investment contracts issued by the company and held by residents of Indiana; divided by

(B) the total amount of gross payments collected during the taxable year by the company from the business upon investment contracts issued by the company and held by persons residing within Indiana and elsewhere.

(d) As used in subsection (c), "investment company" means a person, copartnership, association, limited liability company, or corporation, whether domestic or foreign, that:

(1) is registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.); and

(2) solicits or receives a payment to be made to itself and issues in exchange for the payment:

(A) a so-called bond;

(B) a share;

(C) a coupon;

(D) a certificate of membership;

(E) an agreement;

(F) a pretended agreement; or

(G) other evidences of obligation;

entitling the holder to anything of value at some future date, if the gross payments received by the company during the taxable year on outstanding investment contracts, plus interest and dividends earned on those contracts (by prorating the interest and dividends earned on investment contracts by the same proportion that certificate reserves (as defined by the Investment Company Act of 1940) is to the company's total assets) is at least fifty percent (50%) of the company's gross payments upon investment contracts plus gross income from all other sources except dividends from subsidiaries for the taxable year. The term "investment contract" means an instrument listed in clauses (A) through (G).

(e) If a partner is required to include an item of income, a deduction, or another tax attribute in the partner's adjusted gross income tax return pursuant to IC 6-3-4.5, such item shall be considered to be includible in the partner's federal adjusted gross income or federal taxable income, regardless of whether such item is actually required to be reported by the partner for federal income tax purposes. For purposes of this subsection:

(1) items for which a valid election is made under IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included in the partner's adjusted gross income or taxable income; and

(2) items for which the partnership did not make an election under IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the partnership is required to remit tax pursuant to IC 6-3-4.5-18, shall be included in the partner's adjusted gross income or taxable income.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.15; P.L.68-1991, SEC.1; P.L.8-1993, SEC.94; P.L.28-1997, SEC.20; P.L.119-1998, SEC.13; P.L.273-1999, SEC.52; P.L.105-2003, SEC.4; P.L.246-2005, SEC.75; P.L.223-2007, SEC.5; P.L.182-2009(ss), SEC.233; P.L.229-2011, SEC.94; P.L.171-2011, SEC.7; P.L.172-2011, SEC.80; P.L.6-2012, SEC.56; P.L.205-2013, SEC.124; P.L.250-2015, SEC.42; P.L.214-2018(ss), SEC.12; P.L.234-2019, SEC.16; P.L.165-2021, SEC.98; P.L.159-2021, SEC.26; P.L.199-2021, SEC.6; P.L.137-2022, SEC.55; P.L.194-2023, SEC.25; P.L.128-2026, SEC.23.

IC 6-5.5-1-3"Business of a financial institution" Sec. 3. "Business of a financial institution" has the meaning set forth in section 17(d) of this chapter.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-4"Commercial domicile" Sec. 4. "Commercial domicile" means:

(1) for a regulated financial corporation:

(A) the taxing jurisdiction under the laws of which it is organized; or

(B) if it is organized under the laws of the United States, the place designated as its principal office with the regulatory authority;

(2) if it is a foreign bank, the state where it has established a federal agency or federal branch under Section 4 of the International Banking Act of 1978 (12 U.S.C. 3102) or if it transacts business in more than one (1) state, its home state as provided in Section 5(c) of the International Banking Act of 1978 (12 U.S.C. 3103(c)); or

(3) for all other entities, the principal place from which the trade or business of the entity is directed or managed.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-5"Compensation" Sec. 5. "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-6"Corporation" Sec. 6. "Corporation" means an entity that is:

(1) a corporation (as defined in Internal Revenue Code Section 7701(a)(3)) for federal income tax purposes, including an entity taxed as a corporation under the Internal Revenue Code; and

(2) organized under the laws of the United States, this state, any other taxing jurisdiction, or a foreign government.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.16.

IC 6-5.5-1-7"Department" Sec. 7. "Department" refers to the department of state revenue.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-8"Employee" Sec. 8. "Employee" has the same meaning as it has for purposes of federal income tax withholding under Sections 3401 through 3404 of the Internal Revenue Code.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-9"Foreign bank" Sec. 9. "Foreign bank" means an entity organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that engages in the business of a financial institution or a subsidiary or affiliate organized under those laws of such an entity. The term includes foreign commercial banks, foreign merchant banks, and other foreign institutions that engage in banking activities that are usually in connection with the business of a financial institution in the countries where the foreign institutions are organized or operating.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-10"Gross income" Sec. 10. "Gross income" means gross income (as defined in Section 61 of the Internal Revenue Code) for federal income tax purposes.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-11"Internal Revenue Code" Sec. 11. "Internal Revenue Code" has the meaning set forth in IC 6-3-1-11. For purposes of IC 6-5.5, a reference to "article" in IC 6-3-1-11 is considered to also mean a reference in IC 6-5.5.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.165-2021, SEC.99.

IC 6-5.5-1-12"Nonresident taxpayer" Sec. 12. "Nonresident taxpayer" means a taxpayer that:

(1) is transacting business within Indiana, as provided in IC 6-5.5-3; and

(2) has its commercial domicile outside Indiana.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.2.

IC 6-5.5-1-13"Resident taxpayer" Sec. 13. "Resident taxpayer" means a taxpayer that:

(1) is transacting business within Indiana, as provided in IC 6-5.5-3; and

(2) has its commercial domicile in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-14"Subsidiary" Sec. 14. "Subsidiary" means:

(1) a corporation fifty percent (50%) or more of whose voting stock; or

(2) an entity other than a corporation that is taxed as a corporation under the Internal Revenue Code and fifty percent (50%) of whose net worth;

is owned by another legal entity.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.17.

IC 6-5.5-1-15"Taxable year" Sec. 15. "Taxable year", with respect to a taxpayer, means the taxable year of the taxpayer as shown on the taxpayer's return required to be filed under the Internal Revenue Code. If a taxpayer does not file a return under the Internal Revenue Code, the taxpayer's taxable year is the calendar year.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-16"Taxing jurisdiction" Sec. 16. "Taxing jurisdiction" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a territory or possession of the United States.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-1-17"Taxpayer" Sec. 17. (a) "Taxpayer" means a corporation that is transacting the business of a financial institution in Indiana, including any of the following:

(1) A holding company.

(2) A regulated financial corporation.

(3) A subsidiary of a holding company or regulated financial corporation.

(4) Any other corporation organized under the laws of the United States, this state, another taxing jurisdiction, or a foreign government that is carrying on the business of a financial institution.

(b) As used in this section, "holding company" means a corporation registered under the Bank Holding Company Act of 1956 (12 U.S.C. 1841 through 1849), as in effect on December 31, 1990, or registered as a savings and loan holding company other than a diversified savings and loan holding company (as defined in Section 10(a)(F) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1467a(1)(F)), as in effect on December 31, 1990).

(c) As used in this section, "regulated financial corporation" means:

(1) an institution, the deposits, shares, or accounts of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 through 1833e), as in effect on December 31, 1990;

(2) an institution that is a member of a Federal Home Loan Bank;

(3) any other bank or thrift institution incorporated or organized under the laws of a state that is engaged in the business of receiving deposits;

(4) a credit union incorporated and organized under the laws of this state;

(5) a production credit association organized under 12 U.S.C. 2071, as in effect on December 31, 1990;

(6) a corporation organized under 12 U.S.C. 611 through 631 (an Edge Act corporation), as in effect on December 31, 1990;

(7) a federal or state agency or branch of a foreign bank (as defined in 12 U.S.C. 3101, as in effect on December 31, 1990); or

(8) a trust company formed under IC 28-12.

(d) For purposes of this section and when used in this article, "business of a financial institution" means the following:

(1) For a holding company, a regulated financial corporation, or a subsidiary of either, the activities that each is authorized to perform under federal or state law, including the activities authorized by regulation or order of the Federal Reserve Board for such a subsidiary under Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(8)), as in effect on December 31, 1990.

(2) For any other corporation described in subsection (a)(4), all of the corporation's business activities if eighty percent (80%) or more of the corporation's gross income, excluding extraordinary income, is derived from one (1) or more of the following activities:

(A) Making, acquiring, selling, or servicing loans or extensions of credit. For the purpose of this subdivision, loans and extensions of credit include:

(i) secured or unsecured consumer loans;

(ii) installment obligations;

(iii) mortgage or other secured loans on real estate or tangible personal property;

(iv) credit card loans;

(v) secured and unsecured commercial loans of any type;

(vi) letters of credit and acceptance of drafts;

(vii) loans arising in factoring; and

(viii) any other transactions with a comparable economic effect.

(B) Leasing or acting as an agent, broker, or advisor in connection with leasing real and personal property that is the economic equivalent of the extension of credit if the transaction is not treated as a lease for federal income tax purposes.

(C) Operating a credit card, debit card, charge card, or similar business.

As used in this subdivision, "gross income" includes income from interest, fees, penalties, a market discount or other type of discount, rental income, the gain on a sale of intangible or other property evidencing a loan or extension of credit, and dividends or other income received as a means of furthering the activities set out in this subdivision.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.18; P.L.8-1991, SEC.4; P.L.68-1991, SEC.3; P.L.1-1992, SEC.18; P.L.119-1998, SEC.14.

IC 6-5.5-1-18"Unitary business" Sec. 18. (a) "Unitary business" means business activities or operations that are of mutual benefit, dependent upon, or contributory to one another, individually or as a group, in transacting the business of a financial institution. The term may be applied within a single legal entity or between multiple entities and without regard to whether each entity is a corporation, a partnership, a limited liability company, or a trust, provided that each member is either a holding company, a regulated financial corporation, a subsidiary of either, a corporation that conducts the business of a financial institution under IC 6-5.5-1-17(d)(2), or any other entity, regardless of its form, that conducts activities that would constitute the business of a financial institution under IC 6-5.5-1-17(d)(2) if the activities were conducted by a corporation. The term "unitary group" includes those entities that are engaged in a unitary business transacted wholly or partially within Indiana. However, the term does not include an entity that does not transact business in Indiana.

(b) Unity is presumed whenever there is unity of ownership, operation, and use evidenced by centralized management or executive force, centralized purchasing, advertising, accounting, or other controlled interaction among entities that are members of the unitary group, as described in subsection (a). However, the absence of these centralized activities does not necessarily evidence a nonunitary business.

(c) Unity of ownership, when a corporation is involved, does not exist unless that corporation is a member of a group of two (2) or more business entities and more than fifty percent (50%) of the voting stock of each member of the group is directly or indirectly owned by:

(1) a common owner or common owners, either corporate or noncorporate; or

(2) one (1) or more of the member corporations of the group.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.19; P.L.8-1993, SEC.95; P.L.129-2001, SEC.8.

IC 6-5.5-1-19"Partnership" Sec. 19. "Partnership" has the meaning set forth in IC 6-3-1-19.

As added by P.L.21-1990, SEC.20. Amended by P.L.159-2021, SEC.27.

IC 6-5.5-1-20"Bonus depreciation" Sec. 20. 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 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. For taxable years beginning after December 31, 2017, the term does not include any amount of additional first-year special depreciation allowance under Section 168(k) of the Internal Revenue Code in the amount of adjusted gross income realized on the exchange of property that otherwise would have been deferred under Section 1031 of the Internal Revenue Code in effect on January 1, 2017, if:

(1) the exchange would have been eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017;

(2) the exchange is not eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code; and

(3) the taxpayer claimed a deduction for the additional first-year special depreciation allowance under Section 168(k) of the Internal Revenue Code with regard to the acquired property.

For purposes of this section, if the taxpayer elected to claim a deduction under Section 179 of the Internal Revenue Code with regard to an item of acquired property, the adjusted gross income realized on the exchange must be reduced (but not below zero dollars ($0)) by the amount of the deduction under Section 179 of the Internal Revenue Code elected to be claimed on the acquired property.

As added by P.L.105-2003, SEC.5. Amended by P.L.246-2005, SEC.76; P.L.234-2019, SEC.17.

IC 6-5.5-1-21"Loans arising in factoring" Sec. 21. (a) "Loans arising in factoring" means:

(1) a loan or extension of credit secured by one (1) or more accounts receivable; or

(2) a sale of one (1) or more accounts receivable in which the purchaser has recourse against the seller for an uncollected accounts receivable.

(b) The term does not refer to:

(1) a sale of one (1) or more accounts receivable without recourse; or

(2) an assignment of an account receivable.

As added by P.L.146-2020, SEC.31.

IC 6-5.5-2Chapter 2. Imposition of Tax

6-5.5-2-1Computation of franchise tax 6-5.5-2-2Repealed 6-5.5-2-3Apportioned income of taxpayer not filing combined return 6-5.5-2-4Apportioned income of taxpayer filing combined return for unitary group 6-5.5-2-5Repealed 6-5.5-2-5.3Repealed 6-5.5-2-6Credit for nonresident taxpayer 6-5.5-2-7Exemptions 6-5.5-2-8Partnerships; grantor or beneficiary of a trust; information return; withholding

IC 6-5.5-2-1Computation of franchise tax Sec. 1. (a) There is imposed on each taxpayer a franchise tax measured by the taxpayer's apportioned income for the privilege of exercising its franchise or the corporate privilege of transacting the business of a financial institution in Indiana. The amount of the tax for a taxable year shall be determined by multiplying the applicable rate under subsection (b) times the remainder of:

(1) the taxpayer's apportioned income; minus

(2) the taxpayer's deductible Indiana net operating losses as determined under this section; minus

(3) the taxpayer's net capital losses minus the taxpayer's net capital gains computed under the Internal Revenue Code for each taxable year or part of a taxable year beginning after December 31, 1989, multiplied by the apportionment percentage applicable to the taxpayer under this chapter for the taxable year of the loss.

A net capital loss for a taxable year is a net capital loss carryover to each of the five (5) taxable years that follow the taxable year in which the loss occurred.

(b) The following are the applicable tax rates to be used under subsection (a):

(1) For taxable years beginning before January 1, 2014, eight and five-tenths percent (8.5%).

(2) For taxable years beginning after December 31, 2013, and before January 1, 2015, eight percent (8.0%).

(3) For taxable years beginning after December 31, 2014, and before January 1, 2016, seven and five-tenths percent (7.5%).

(4) For taxable years beginning after December 31, 2015, and before January 1, 2017, seven percent (7.0%).

(5) For taxable years beginning after December 31, 2016, and before January 1, 2019, six and five-tenths percent (6.5%).

(6) For taxable years beginning after December 31, 2018, and before January 1, 2020, six and twenty-five hundredths percent (6.25%).

(7) For taxable years beginning after December 31, 2019, and before January 1, 2021, six percent (6.0%).

(8) For taxable years beginning after December 31, 2020, and before January 1, 2022, five and five-tenths percent (5.5%).

(9) For taxable years beginning after December 31, 2021, and before January 1, 2023, five percent (5.0%).

(10) For taxable years beginning after December 31, 2022, four and nine-tenths percent (4.9%).

(c) The amount of net operating losses deductible under subsection (a) is an amount equal to the net operating losses computed under the Internal Revenue Code, adjusted for the items set forth in IC 6-5.5-1-2, that are:

(1) incurred in each taxable year, or part of a year, beginning after December 31, 1989; and

(2) attributable to Indiana.

(d) The following apply to determining the amount of net operating losses that may be deducted under subsection (a):

(1) The amount of net operating losses that is attributable to Indiana is the taxpayer's total net operating losses under the Internal Revenue Code for the taxable year of the loss, adjusted for the items set forth in IC 6-5.5-1-2, multiplied by the apportionment percentage applicable to the taxpayer under this chapter for the taxable year of the loss.

(2) A net operating loss for any taxable year is a net operating loss carryover to each of the fifteen (15) taxable years that follow the taxable year in which the loss occurred.

(3) If the taxpayer has discharge of indebtedness excluded from federal gross income under Section 108(a)(1)(A), Section 108(a)(1)(B), or Section 108(a)(1)(C) of the Internal Revenue Code, the Indiana net operating loss available for use or carryover shall be reduced by the remainder of:

(A) the amount of discharge of indebtedness excluded from federal gross income, multiplied by the apportionment percentage applicable to the taxpayer under this chapter or IC 6-3 for the year of discharge; minus

(B) the amount of discharge of indebtedness excluded from federal gross income that reduced the tax attributes under Section 108(b)(2)(D), Section 108(b)(2)(E), or Section 108(b)(2)(F) of the Internal Revenue Code or was applied for federal tax purposes under Section 108(b)(5) of the Internal Revenue Code, multiplied by the apportionment percentage applicable to the taxpayer under this chapter or IC 6-3 for the year of discharge.

(4) For purposes of applying this subsection, the amount of the reduction computed under subdivision (3) shall be applied:

(A) first, as if the discharge of indebtedness was a modification of an item set forth in IC 6-5.5-1-2 that increased the taxpayer's adjusted gross income for the taxable year to zero (0), but only if the amount determined after modifications under IC 6-5.5-1-2 was less than zero (0); and

(B) after the application required under clause (A), as if the discharge of indebtedness was part of the taxpayer's apportioned income under subsection (a)(1), and prorated for the taxable year of discharge between taxpayer members of a unitary group as provided in subsection (e)(1). However, if the application of this clause results in a net operating loss of a member being reduced to zero (0), the excess shall not be considered income of the taxpayer nor shall it reduce the net operating loss of any other taxpayer member of a unitary group.

(5) For purposes of subdivisions (3) and (4), the provisions of Section 108(d)(6) and Section 108(d)(7) of the Internal Revenue Code shall apply.

(e) The following provisions apply to a combined return computing the tax on the basis of the income of the unitary group when the return is filed for more than one (1) taxpayer member of the unitary group for any taxable year:

(1) Any net capital loss or net operating loss attributable to Indiana in the combined return shall be prorated between each taxpayer member of the unitary group by the quotient of:

(A) the receipts of that taxpayer member attributable to Indiana under section 4 of this chapter; divided by

(B) the receipts of all taxpayer members of the unitary group attributable to Indiana.

(2) The net capital loss or net operating loss for that year, if any, to be carried forward to any subsequent year shall be limited to the capital gains or apportioned income for the subsequent year of that taxpayer, determined by the same receipts formula set out in subdivision (1).

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.21; P.L.68-1991, SEC.4; P.L.1-1992, SEC.19; P.L.6-2000, SEC.1; P.L.93-2013, SEC.5; P.L.80-2014, SEC.10; P.L.194-2023, SEC.26.

IC 6-5.5-2-2RepealedAs added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.22. Repealed by P.L.6-2000, SEC.5.

IC 6-5.5-2-3Apportioned income of taxpayer not filing combined return Sec. 3. For a taxpayer that is not filing a combined return, the taxpayer's apportioned income consists of the taxpayer's adjusted gross income for that year multiplied by the quotient of:

(1) the taxpayer's total receipts attributable to transacting business in Indiana, as determined under IC 6-5.5-4; divided by

(2) the taxpayer's total receipts from transacting business in all taxing jurisdictions, as determined under IC 6-5.5-4.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.6-2000, SEC.2.

IC 6-5.5-2-4Apportioned income of taxpayer filing combined return for unitary group Sec. 4. For a taxpayer filing a combined return for its unitary group, the group's apportioned income for a taxable year consists of:

(1) the aggregate adjusted gross income, from whatever source derived, of the members of the unitary group; multiplied by

(2) the quotient of:

(A) all the receipts of the taxpayer members of the unitary group that are attributable to transacting business in Indiana; divided by

(B) the receipts of all the members of the unitary group from transacting business in all taxing jurisdictions.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.5; P.L.6-2000, SEC.3.

IC 6-5.5-2-5RepealedAs added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.6. Repealed by P.L.6-2000, SEC.5.

IC 6-5.5-2-5.3RepealedAs added by P.L.21-1990, SEC.23. Repealed by P.L.6-2000, SEC.5.

IC 6-5.5-2-6Credit for nonresident taxpayer Sec. 6. (a) A nonresident taxpayer is entitled to a credit against the tax due under this article for the amount of net income tax, franchise tax, or other tax measured by net income that is due to the nonresident taxpayer's domiciliary state for a taxable year if:

(1) the receipt of interest or other income from a loan or loan transaction is attributed both to the taxpayer's domiciliary state under that state's laws and also to Indiana under IC 6-5.5-4; and

(2) the principal amount of the loan is at least two million dollars ($2,000,000).

(b) The amount of the credit for each taxable year is the lesser of:

(1) the portion of the net income tax, franchise tax, or other tax measured by net income actually paid by the nonresident taxpayer to its domiciliary state that is attributable to the loan or loan transaction; or

(2) the portion of the franchise tax due to Indiana under this article that is attributable to the loan or loan transaction.

The amount determined under subdivisions (1) and (2) shall be reduced by the amount of any credit for the tax due from the nonresident taxpayer under this article (calculated without the allowance for the credit provided under this section) and that may be used by the nonresident taxpayer in calculating the income tax due under the laws of the nonresident taxpayer's domiciliary state.

(c) As used in this section:

(1) "loan" or "loan transaction" refers to an obligation created in a single transaction to pay or repay a sum of money attributed as provided in subsection (a)(1);

(2) the "principal amount" of a loan is limited to the principal amount specified in the loan documents at the time of making the loan and reasonably expected to be advanced during the term of the loan, even though there is more than one (1) advancement. If the loan is a participation loan (as defined in IC 6-5.5-4-13), the principal amount must be calculated separately for each participant and is equal to that portion of the loan committed by each participant; and

(3) a "taxpayer's domiciliary state" is the taxing jurisdiction in which its commercial domicile is located.

(d) The amount of tax attributable to a loan or loan transaction, under the laws of the taxpayer's domiciliary state or under this article, is the portion of the total tax due to each state in an amount equal to the same proportion as the receipts from the loan or loan transaction bear to the total of the taxpayer's receipts.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.24; P.L.68-1991, SEC.7.

IC 6-5.5-2-7Exemptions Sec. 7. Notwithstanding any other provision of this article, there is no tax imposed on the adjusted gross income or apportioned income of the following:

(1) Insurance companies or organizations offering nonprofit agricultural organization insurance coverage subject to the tax under any of the following:

(A) IC 27-1-18-2.

(B) IC 27-1-2-2.3.

(C) IC 6-3.

(D) IC 6-8-15.

(2) International banking facilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System).

(3) Any corporation that is exempt from income tax under Section 1363 of the Internal Revenue Code.

(4) Any corporation exempt from federal income taxation under the Internal Revenue Code, except for the corporation's unrelated business income. However, this exemption does not apply to a corporation exempt from federal income taxation under Section 501(c)(14) of the Internal Revenue Code.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.25; P.L.68-1991, SEC.8; P.L.1-2003, SEC.47; P.L.269-2003, SEC.11; P.L.129-2014, SEC.2; P.L.194-2023, SEC.27.

IC 6-5.5-2-8Partnerships; grantor or beneficiary of a trust; information return; withholding Sec. 8. (a) If a corporation is:

(1) transacting the business of a financial institution (as defined in IC 6-5.5-1-17(d)); and

(2) is a partner in a partnership or the grantor and beneficiary of a trust transacting business in Indiana and the partnership or trust is conducting in Indiana an activity or activities that would constitute the business of a financial institution if transacted by a corporation;

the corporation is a taxpayer under this article and shall, in calculating the corporation's tax liability under this article, include in the corporation's adjusted or apportioned income the corporation's percentage of the partnership or trust adjusted gross income or apportioned income.

(b) A partnership or trust covered by subsection (a):

(1) shall file an information return on an appropriate schedule, with capital and operating losses, modifications, and credits required by this article and any other items specified in the return form by the department. If the taxpayer is a nonresident, or is a member of a unitary group with nonresident members filing a combined return, the return must show the apportionment percentage and supporting amounts necessary to compute the tax under IC 6-5.5-4. A partner's percentage share of the receipts of a taxpayer, for the purpose of apportionment, shall be calculated by using the partner's share of the partnership adjusted gross income;

(2) is subject to the provisions of IC 6-5.5-7-3 relating to taxpayers and IC 6-5.5-7-4 relating to persons when filing the information return; and

(3) shall withhold from all nonresident corporate partners or beneficiaries an amount prescribed in withholding instructions issued by the department. The amount required to be withheld shall be based upon the rate of tax prescribed in IC 6-5.5-2, unless the partner or beneficiary provides the partnership or trust with a written declaration that the partner or beneficiary is not subject to the tax. In such a case the amount withheld shall be the amount prescribed in the withholding instructions issued by the department based upon the Indiana adjusted gross income tax rates. The department shall issue procedures and directions for the withholding required by this subsection that are similar to those contained in IC 6-3-4 concerning the withholding of taxes.

As added by P.L.21-1990, SEC.26. Amended by P.L.68-1991, SEC.9.

IC 6-5.5-3Chapter 3. Business Transaction Rules

6-5.5-3-1Transacting business within state 6-5.5-3-2Maintains office 6-5.5-3-3Conducting business 6-5.5-3-4Regularly solicit business; presumption 6-5.5-3-5Tangible assets, intangible assets, and deposits attributable to state 6-5.5-3-6Tangible property; located in state 6-5.5-3-7Moving property; located in state 6-5.5-3-8Events not considered transacting business in state

IC 6-5.5-3-1Transacting business within state Sec. 1. For the purposes of this article, a taxpayer is transacting business within Indiana in a taxable year only if the taxpayer:

(1) maintains an office in Indiana;

(2) has an employee, representative, or independent contractor conducting business in Indiana;

(3) regularly sells products or services of any kind or nature to customers in Indiana that receive the product or service in Indiana;

(4) regularly solicits business from potential customers in Indiana;

(5) regularly performs services outside Indiana that are consumed within Indiana;

(6) regularly engages in transactions with customers in Indiana that involve intangible property, including loans, but not property described in section 8(5) of this chapter, and result in receipts flowing to the taxpayer from within Indiana;

(7) owns or leases tangible personal or real property located in Indiana; or

(8) regularly solicits and receives deposits from customers in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-3-2Maintains office Sec. 2. For purposes of this chapter, a taxpayer is considered to maintain an office wherever the taxpayer has established a regular, continuous, and fixed place of business.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-3-3Conducting business Sec. 3. An employee, representative, or independent contractor is considered to be conducting business in Indiana if:

(1) the employee, representative, or independent contractor is regularly engaged in the business of the taxpayer in Indiana;

(2) the office from which the employee's, representative's, or independent contractor's activities are directed or controlled is located in Indiana and a majority of the employee's, representative's, or independent contractor's service is not performed in any other taxing jurisdiction; or

(3) a contribution to the Indiana employment security fund is required under IC 22-4-2 with respect to compensation paid to the employee.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.27.

IC 6-5.5-3-4Regularly solicit business; presumption Sec. 4. A person is presumed, subject to rebuttal, to regularly solicit business within Indiana if:

(1) the person conducts activities described in section 1(3), 1(5), and 1(6) of this chapter with twenty (20) or more customers within Indiana during the taxable year; or

(2) the sum of the person's assets, including the assets arising from loan transactions, and the absolute value of the person's deposits attributable to Indiana equal at least five million dollars ($5,000,000).

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.28; P.L.68-1991, SEC.10.

IC 6-5.5-3-5Tangible assets, intangible assets, and deposits attributable to state Sec. 5. For purposes of this chapter, tangible assets are attributable to this state if they are located in Indiana. Intangible assets are attributable to this state if the income earned on those assets is attributable to this state under this article. Deposits are attributed to this state if they are deposits made by this state or residents, political subdivisions, or agencies and instrumentalities of this state regardless of whether the deposits are accepted or maintained by the taxpayer at locations within Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-3-6Tangible property; located in state Sec. 6. Except as otherwise provided in section 7 of this chapter, tangible property, including leased property, is considered to be located in Indiana if the property is physically situated in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-3-7Moving property; located in state Sec. 7. For purposes of this article, tangible personal property that is characteristically moving property, such as motor vehicles, rolling stock, aircraft, vessels, and mobile equipment, is considered to be located in Indiana if:

(1) the operation of the property is entirely in Indiana; or

(2) the operation of the property is not entirely in Indiana and:

(A) the operation outside Indiana is occasional and incidental to the operation in Indiana;

(B) the principal base of operations from which the property is sent out is in Indiana; or

(C) Indiana is the commercial domicile of the lessee or other user of the property and there is no principal base of operations.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-3-8Events not considered transacting business in state Sec. 8. Notwithstanding any other provision of this chapter, a taxpayer, except for a trust company formed under IC 28-1-4 (repealed July 1, 2022), is not considered to be transacting business in Indiana if the only activities of the taxpayer in Indiana are or are in connection with any of the following:

(1) Maintaining or defending an action or suit.

(2) Filing, modifying, renewing, extending, or transferring a mortgage, deed of trust, or security interest.

(3) Acquiring, foreclosing, or otherwise conveying property in Indiana as a result of a default under the terms of a mortgage, deed of trust, or other security instrument relating to the property.

(4) Selling tangible personal property, if taxation under this article is precluded by 15 U.S.C. 381 through 384.

(5) Owning an interest in the following types of property, including those activities within Indiana that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property or the income from the property, the collection of income from the property, or the acquisition or liquidation of collateral relating to the property:

(A) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company (as those terms are defined in the Internal Revenue Code).

(B) An interest in a loan backed security representing ownership or participation in a pool of promissory notes or certificates of interest that provide for payments in relation to payments or reasonable projections of payments on the notes or certificates.

(C) An interest in a loan or other asset from which the interest is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, and IC 6-5.5-4-6 and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner.

(D) An interest in the right to service or collect income from a loan or other asset from which interest on the loan or other asset is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, and IC 6-5.5-4-6 and in which the payment obligations were solicited and entered into by a person that is independent and not acting on behalf of the owner.

(E) An amount held in an escrow or a trust account with respect to property described in this subdivision.

(6) Acting:

(A) as an executor of an estate;

(B) as a trustee of a benefit plan;

(C) as a trustee of an employees' pension, profit sharing, or other retirement plan;

(D) as a trustee of a testamentary or inter vivos trust or corporate indenture; or

(E) in any other fiduciary capacity, including holding title to real property in Indiana.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.11; P.L.9-2022, SEC.10.

IC 6-5.5-4Chapter 4. Rules for Attributing Receipts

6-5.5-4-1Application of chapter 6-5.5-4-2Definitions 6-5.5-4-3Lease or rental of real or tangible personal property 6-5.5-4-4Secured loans or installment sales contracts; interest income and other receipts 6-5.5-4-5Unsecured consumer loans; interest income and other receipts 6-5.5-4-6Unsecured commercial loans or installment obligations; interest income and other receipts to be applied in state 6-5.5-4-7Fee income and other receipts from letters of credit, acceptance of drafts, and other guarantees of credit; apportionment 6-5.5-4-8Credit cards; apportionment of service charges, interest income, and fees 6-5.5-4-9Receipts from sale of assets; apportionment 6-5.5-4-10Receipts from performance of fiduciary and other services; apportionment 6-5.5-4-11Receipts from traveler's checks, money orders, or savings bonds 6-5.5-4-12Receipts from investments of financial institution in state securities 6-5.5-4-13Participation loans; apportionment of interest income and other receipts 6-5.5-4-14Repealed 6-5.5-4-15Repealed

IC 6-5.5-4-1Application of chapter Sec. 1. This chapter applies to all taxpayers.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.6-2000, SEC.4.

IC 6-5.5-4-2Definitions Sec. 2. For purposes of computing receipts or the receipts factor under this article the following apply:

(1) "Receipts" means gross income (as defined in IC 6-5.5-1-10), plus the gross income excluded under Section 103 of the Internal Revenue Code, less gross income derived from sources outside the United States. However, upon the disposition of assets such as securities and money market transactions, when derived from transactions and activities in the regular course of the taxpayer's trade or business, receipts are limited to the gain (as defined in Section 1001 of the Internal Revenue Code) that is recognized upon the disposition.

(2) "Money market instruments" means federal funds sold and securities purchased under agreements to resell, commercial paper, banker's acceptances, and purchased certificates of deposit and similar instruments.

(3) "Securities" means United States Treasury securities, obligations of United States government agencies and corporations, obligations of state and political subdivisions, corporate stock and other securities, participations in securities backed by mortgages held by United States or state government agencies, loan backed securities and similar investments.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.29; P.L.68-1991, SEC.12.

IC 6-5.5-4-3Lease or rental of real or tangible personal property Sec. 3. Receipts from the lease or rental of real or tangible personal property must be attributed to Indiana if the property is located in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-4Secured loans or installment sales contracts; interest income and other receipts Sec. 4. Interest income and other receipts from assets in the nature of loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property must be attributed to Indiana if the security or sale property is located in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-5Unsecured consumer loans; interest income and other receipts Sec. 5. Interest income and other receipts from consumer loans not secured by real or tangible personal property must be attributed to Indiana if the loan is made to a resident of Indiana, whether at a place of business, by a traveling loan officer, by mail, by telephone, or by other electronic means.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-6Unsecured commercial loans or installment obligations; interest income and other receipts to be applied in state Sec. 6. Interest income and other receipts from commercial loans and installment obligations not secured by real or tangible personal property must be attributed to Indiana if the proceeds of the loan are to be applied in Indiana. If it cannot be determined where the funds are to be applied, the income and receipts are attributed to the state in which the business applied for the loan. As used in this section, "applied for" means initial inquiry (including customer assistance in preparing the loan application) or submission of a completed loan application, whichever occurs first.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-7Fee income and other receipts from letters of credit, acceptance of drafts, and other guarantees of credit; apportionment Sec. 7. Fee income and other receipts from letters of credit, acceptance of drafts, and other devices for assuring or guaranteeing loans or credit must be apportioned in the same manner as interest income and other receipts from commercial loans are apportioned.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-8Credit cards; apportionment of service charges, interest income, and fees Sec. 8. Interest income, merchant discount, and other receipts including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders' fees must be attributed to the state to which the card charges and fees are regularly billed.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-9Receipts from sale of assets; apportionment Sec. 9. Receipts from the sale of an asset, tangible or intangible, must be apportioned in the manner that the income from the asset would be apportioned under this chapter.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-10Receipts from performance of fiduciary and other services; apportionment Sec. 10. Receipts from the performance of fiduciary and other services must be attributed to the state in which the benefits of the services are consumed. If the benefits are consumed in more than one (1) state, the receipts from those benefits must be apportioned to Indiana on a pro rata basis according to the portion of the benefits consumed in Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-11Receipts from traveler's checks, money orders, or savings bonds Sec. 11. Receipts from the issuance of traveler's checks, money orders, or United States savings bonds must be attributed to the state in which the traveler's checks, money orders, or bonds are purchased.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-12Receipts from investments of financial institution in state securities Sec. 12. Receipts from investments of a financial institution in securities of this state and its political subdivisions, agencies, and instrumentalities must be attributed to Indiana.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-13Participation loans; apportionment of interest income and other receipts Sec. 13. Interest income and other receipts from a participating financial institution's portion of participation loans must be attributed under this chapter. A participation loan is a loan in which more than one (1) lender is a creditor to a common borrower.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-4-14RepealedAs added by P.L.347-1989(ss), SEC.1. Repealed by P.L.68-1991, SEC.18.

IC 6-5.5-4-15RepealedAs added by P.L.347-1989(ss), SEC.1. Repealed by P.L.68-1991, SEC.18.

IC 6-5.5-5Chapter 5. Alternative Calculations; Combined Returns

6-5.5-5-1Members of unitary business; combined returns; fair representation of taxpayer income within state; reapportionment 6-5.5-5-2Members of unitary group; combined returns 6-5.5-5-3Information or records required

IC 6-5.5-5-1Members of unitary business; combined returns; fair representation of taxpayer income within state; reapportionment Sec. 1. (a) Except as provided in this section, a unitary group consisting of at least two (2) taxpayers shall file a combined return covering all the operations of the unitary business and including all of the members of the unitary business. However, only one (1) combined return needs to be filed, as provided in IC 6-5.5-6-1.

(b) If the department or taxpayer determines that the result of applying this section or article do not fairly represent the taxpayer's income within Indiana or the taxpayer's income within Indiana may be more fairly represented by a separate return, the taxpayer may petition for and the department may allow, or the department may require, in respect to all or a part of the taxpayer's business activity any of the following:

(1) Separate accounting.

(2) The filing of a separate return for the taxpayer.

(3) A reallocation of tax items between a taxpayer and a member of the taxpayer's unitary group or an entity that would be a member of a taxpayer's unitary group if it were transacting business in Indiana.

For purposes of this subsection, "tax items" means gross income, deductions, gains, losses, and credits used in computing the tax under this article, except the term shall exclude dividends or other distributions regardless of whether the amounts are deductible or taxable in computing taxable income under the Internal Revenue Code.

(c) Income apportioned under this article must reflect a change in adjusted gross income that is required to comply with a department order under this section.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.30; P.L.68-1991, SEC.13; P.L.1-2023, SEC.17.

IC 6-5.5-5-2Members of unitary group; combined returns Sec. 2. A combined return must include the adjusted gross income of all members of the unitary group, even if some of the members would not otherwise be subject to taxation under this article. The department may require a member of a unitary group to provide any information that is needed by the department to determine the unitary group's apportioned income under this article. However, income of corporations or other entities organized in foreign countries, except a foreign bank (or its subsidiary) that transacts business in the United States, shall not be included in the combined return. In calculating adjusted gross income, the taxpayer shall eliminate all income and deductions from transactions between entities that are included in the combined return. In addition, in computing receipts for the apportionment factor under IC 6-5.5-2-4(2), the taxpayer shall eliminate receipts between unitary group members included in the combined return.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.31; P.L.1-2023, SEC.18.

IC 6-5.5-5-3Information or records required Sec. 3. The department may require and the taxpayer shall furnish information or records that the department determines to be necessary for it to make the determination required under this article. The department may require this information to be included in the taxpayer's return.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-6Chapter 6. Returns

6-5.5-6-1Annual returns required 6-5.5-6-2Time for filing returns; extensions 6-5.5-6-3Quarterly estimated tax; quarterly payment by electronic fund transfer 6-5.5-6-4Payment of tax 6-5.5-6-5Certified copy of return 6-5.5-6-6Alteration or modification of return; notice; form; time; penalty 6-5.5-6-7Forms; certification of truth of information 6-5.5-6-8Transfer of property; liability for tax 6-5.5-6-9Preservation of records; examination

IC 6-5.5-6-1Annual returns required Sec. 1. Annual returns with respect to the tax imposed by this article shall be made by every taxpayer:

(1) having for the taxable year adjusted gross income or apportioned income subject to taxation under this article; or

(2) that would have had adjusted gross income or apportioned income subject to taxation under this article, but had a loss for that taxable year.

However, taxpayer members of a unitary group are required to file only one (1) return covering all members of the unitary group. The taxpayer member that files the return may be designated by the members of the unitary group pursuant to consents executed by each member. Each taxpayer member of a unitary group is jointly and severally liable for the tax liability of all members of the unitary group.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.14.

IC 6-5.5-6-2Time for filing returns; extensions Sec. 2. (a) Annual returns required by this chapter shall be filed with the department on or before the fifteenth day of the fifth month following the close of the taxpayer's taxable year. However, if a taxpayer receives an extension of time from the United States Internal Revenue Service for the filing of its federal income tax return for a taxable year, the department shall grant an extension of time to the taxpayer for the filing of a return required by this chapter for that taxable year to the date otherwise provided by IC 6-8.1-6-1. In addition, the department may grant an additional reasonable extension of time for filing a return required by this chapter as provided by IC 6-8.1-6-1.

(b) If the due date for a federal income tax return is extended by the Internal Revenue Service to a date that is later than the date specified in subsection (a), the department may extend the due date of a return required to be made under this chapter to reflect the due date permitted for the federal income tax return.

(c) If the due date for a federal income tax return in the Internal Revenue Code, as determined without regard to any extensions, Saturdays, Sundays, or holidays, is later than the date provided in subsection (a), the due date for the return made pursuant to this section shall be the later of the due date for the federal income tax return or the due date provided under this section.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.239-2017, SEC.18; P.L.137-2022, SEC.56.

IC 6-5.5-6-3Quarterly estimated tax; quarterly payment by electronic fund transfer Sec. 3. (a) Each taxpayer subject to taxation under this article shall report and pay quarterly an estimated tax equal to twenty-five percent (25%) of the taxpayer's total estimated tax liability imposed by this article for the taxable year. A taxpayer that uses a taxable year that ends on December 31 shall file the taxpayer's estimated quarterly financial institutions tax return and pay the tax to the department on or before April 20, June 20, September 20, and December 20 of the taxable year, without assessment or notice and demand from the department. If a taxpayer uses a taxable year that does not end on December 31, the due dates for filing the estimated quarterly financial institutions tax return and paying the tax are on or before the twentieth day of the fourth, sixth, ninth, and twelfth months of the taxpayer's taxable year. The department shall prescribe the manner and furnish the forms for reporting and payment.

(b) Subsection (a) is applicable only to taxpayers having a tax liability imposed under this article that exceeds two thousand five hundred dollars ($2,500) for the taxable year.

(c) If the department determines that a taxpayer's:

(1) estimated quarterly financial institutions tax liability for the current year; or

(2) average quarterly financial institutions tax payment for the preceding year;

exceeds five thousand dollars ($5,000), the taxpayer shall pay the quarterly financial institutions taxes due by electronic fund transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by overnight courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.

(d) If a taxpayer's financial institutions tax payment is made by electronic fund transfer, the taxpayer is not required to file a quarterly financial institutions tax return.

(e) If the taxpayer has a taxable year that is less than twelve (12) months, the estimated payments under this section shall be adjusted in the manner prescribed by Section 6655 of the Internal Revenue Code and applicable regulations.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991, SEC.15; P.L.28-1997, SEC.21; P.L.129-2001, SEC.9; P.L.211-2007, SEC.34; P.L.205-2025, SEC.13.

IC 6-5.5-6-4Payment of tax Sec. 4. When a taxpayer is required to file a tax return under this chapter, the taxpayer shall, without assessment or notice and demand from the department, pay the tax to the department at the time fixed for filing the return without regard to an extension of time for filing the return. In making an annual return and paying the tax due for a taxable year, a taxpayer is entitled to take a credit for any tax previously paid by it for the taxable year under this chapter.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-6-5Certified copy of return Sec. 5. A taxpayer shall furnish to the department at the department's request a true and correct copy of any tax return that the taxpayer has filed with the United States Internal Revenue Service. The copy shall be certified by the taxpayer under penalties of perjury.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-6-6Alteration or modification of return; notice; form; time; penalty Sec. 6. (a) Each taxpayer shall notify the department in writing of any alteration or modification of a federal income tax return filed with the United States Internal Revenue Service for a taxable year that begins after December 31, 1988, including any modification or alteration in the amount of tax, regardless of whether the modification or assessment results from an assessment.

(b) The taxpayer shall file the notice in the form required by the department within one (1) year after the alteration or modification is made. In the case of a taxpayer that files a combined return under this article, the date on which the alteration or modification is made shall be considered to be the last day on which an alteration or modification occurs for any entity filing as part of the combined return.

(c) For purposes of this section, a modification or alteration occurs on the date on which a:

(1) taxpayer files an amended federal income tax return;

(2) final determination is made concerning an assessment of deficiency;

(3) final determination is made concerning a claim for refund;

(4) taxpayer waives the restrictions on assessment and collection of all, or any part, of an underpayment of federal income tax by signing a federal Form 870, or any other Form prescribed by the Internal Revenue Service for that purpose. For purposes of this subdivision:

(A) a final determination does not occur with respect to any part of the underpayment that is not covered by the waiver; and

(B) if the signature of an authorized representative of the Internal Revenue Service is required to execute a waiver, the date of the final determination is the date of signing by the authorized representative of the Internal Revenue Service or by the taxpayer, whichever is later;

(5) taxpayer enters into a closing agreement with the Internal Revenue Service concerning the taxpayer's tax liability under Section 7121 of the Internal Revenue Code that is a final determination. The date the taxpayer enters into a closing agreement under this subdivision is the date the closing agreement is signed by an authorized representative of the Internal Revenue Service or by the taxpayer, whichever is later; or

(6) modification or alteration in an amount of tax, adjusted gross income, taxable income, credit, or other tax attribute is otherwise made that is a final determination;

for a taxable year, regardless of whether a modification or alteration results in an underpayment or overpayment of tax.

(d) For purposes of subsection (c)(2) through (c)(6), a final determination means an action or decision by a taxpayer, the Internal Revenue Service (including the Appeals Division), the United States Tax Court, or any other United States federal court concerning any disputed tax issue that:

(1) is final and conclusive; and

(2) cannot be reopened or appealed by a taxpayer or the Internal Revenue Service as a matter of law.

(e) If the federal modification or alteration results in a change in the taxpayer's federal adjusted gross income or income within Indiana, the taxpayer shall file an amended Indiana financial institutions tax return (as required by the department) and a copy of the taxpayer's amended federal income tax return with the department not later than the date that is one hundred eighty (180) days after the modification or alteration is made, if the modification or alteration occurs before January 1, 2026, and one (1) year if the modification or alteration occurs after December 31, 2025.

(f) The taxpayer shall pay an additional tax or penalty due under this article upon notice or demand from the department.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.242-2015, SEC.32; P.L.159-2021, SEC.28; P.L.128-2026, SEC.24.

IC 6-5.5-6-7Forms; certification of truth of information Sec. 7. A return required by this chapter and other information that is reasonably requested by the department must be on the forms that are prescribed by the department. The taxpayer or other person, corporation, or entity, when required by the department, shall certify under penalties of perjury to the truth of all information on the return or other document.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-6-8Transfer of property; liability for tax Sec. 8. In the case of a transferee of the property of a transferor, liability for an accrued tax liability of the transferor is transferred to the transferee as provided in Section 6901 of the Internal Revenue Code.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-6-9Preservation of records; examination Sec. 9. A taxpayer subject to taxation under this article shall keep and preserve records of the taxpayer's adjusted gross income and other books or accounts necessary to determine the amount of tax for which the taxpayer is liable under this article. Those records, books, and accounts shall be kept open for examination at any time by the department or its authorized agents.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-7Chapter 7. Penalties

6-5.5-7-1Failure to make payment; underpayments; estimated payments 6-5.5-7-2Violation of article; violation of preparing or filing return 6-5.5-7-3False entries in books; multiple books; failure to make return; false returns 6-5.5-7-4Failure to permit examination of books, records, or property; refusal to testify or produce records 6-5.5-7-5Concurrent jurisdiction of attorney general

IC 6-5.5-7-1Failure to make payment; underpayments; estimated payments Sec. 1. (a) For purposes of this section, "final tax liability" has the meaning set forth in IC 6-3-4-4.2(a)(1).

(b) The penalty at the rate prescribed by IC 6-8.1-10-2.1(b) shall be assessed by the department on a taxpayer who fails to make payments as required in IC 6-5.5-6. However, no penalty shall be assessed for a quarterly payment if the payment equals or exceeds:

(1) twenty percent (20%) of the final tax liability for the taxable year; or

(2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year.

(c) The penalty for an underpayment of tax on a quarterly return shall only be assessed on the difference between the actual amount paid by the taxpayer on the quarterly return and the lesser of:

(1) twenty percent (20%) of the taxpayer's final tax liability for the taxable year; or

(2) twenty-five percent (25%) of the taxpayer's final tax liability for the taxpayer's previous taxable year.

A payment required to be made in the manner prescribed in IC 6-5.5-6-3(c), but not paid in such a prescribed manner, shall be subject to the penalty provided in IC 6-8.1-10-2.1(b)(5).

(d) For a corporation required to make estimated payments under this section:

(1) if a corporation has a current taxable year that is less than twelve (12) months, the amounts under subsections (b) and (c) shall be adjusted in the same manner as an estimated payment required under IC 6-3-4-4.2; and

(2) any taxes withheld on behalf of the corporation under IC 6-3-4 or IC 6-5.5-2-8, and any taxes remitted on behalf of the corporation under IC 6-3-2.1, shall be treated as estimated tax payments on behalf of the corporation for purposes of this section. Such taxes shall be attributed to each required payment in the manner the underlying income is attributed under Section 6655 of the Internal Revenue Code.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.1-1991, SEC.55; P.L.159-2021, SEC.29; P.L.205-2025, SEC.14; P.L.128-2026, SEC.25.

IC 6-5.5-7-2Violation of article; violation of preparing or filing return Sec. 2. A taxpayer who:

(1) violates IC 6-5.5; or

(2) fails to comply with the request of the department made under IC 6-5.5-6;

commits a Class C infraction.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-7-3False entries in books; multiple books; failure to make return; false returns Sec. 3. A taxpayer who:

(1) makes false entries in the taxpayer's books;

(2) keeps more than one (1) set of books;

(3) fails to make a return required to be made under this chapter; or

(4) makes a false return or false statement in a return;

with intent to defraud the state or to evade the payment of a tax imposed under this article commits a Level 6 felony.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.158-2013, SEC.90.

IC 6-5.5-7-4Failure to permit examination of books, records, or property; refusal to testify or produce records Sec. 4. A person who knowingly:

(1) fails to permit the examination of any book, paper, account, record, or other data by the department or its authorized agents;

(2) fails to permit the inspection or appraisal of any property by the department or its authorized agents; or

(3) refuses to offer testimony or produce a record;

required under this article commits a Level 6 felony.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.158-2013, SEC.91.

IC 6-5.5-7-5Concurrent jurisdiction of attorney general Sec. 5. The attorney general has concurrent jurisdiction with prosecuting attorneys in instituting and prosecuting actions under sections 2 through 4 of this chapter.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-8Chapter 8. Financial Institutions Tax Fund

6-5.5-8-1Establishment; purpose; investment of money in fund; reversion of funds 6-5.5-8-2Semiannual distributions to counties 6-5.5-8-3Procedure for making semiannual distributions to counties 6-5.5-8-4Appropriation

IC 6-5.5-8-1Establishment; purpose; investment of money in fund; reversion of funds Sec. 1. (a) The financial institutions tax fund is established for the purpose of making distributions to counties and for providing revenue for state appropriations. The fund shall be administered by the treasurer of state.

(b) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.

(c) Money in the fund at the end of a fiscal year does not revert to the state general fund.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-8-2Semiannual distributions to counties Sec. 2. (a) On or before December 1 and June 1 of each year the state comptroller shall calculate and transfer from the financial institutions tax fund to each county auditor for distribution to the taxing units (as defined in IC 6-1.1-1-21) in the county, an amount equal to fifty percent (50%) of the sum of the distributions under this section for all the taxing units of the county for the state fiscal year. The amount of a taxing unit's distribution for the state fiscal year is equal to the result of:

(1) an amount equal to forty percent (40%) of the total financial institutions tax revenue collected during the preceding state fiscal year; multiplied by

(2) a fraction equal to:

(A) the amount of the guaranteed distributions received by the taxing unit under this chapter during calendar year 2012 (based on the best information available to the department); divided by

(B) the total amount of all guaranteed distributions received by all taxing units under this chapter during calendar year 2012 (based on the best information available to the department).

The state comptroller shall calculate the amounts of all distributions under this section.

(b) The county auditor shall distribute the distributions received under subsection (a) to the taxing units in the county at the same time that the county auditor makes the semiannual distribution of real property taxes to the taxing units.

(c) A taxing unit may deposit a distribution received under subsection (a) in any fund maintained by the taxing unit, and the distribution may be used for any purpose allowed by law.

(d) This subsection applies to a taxing unit that did not receive a guaranteed distribution under this chapter during calendar year 2012 because the taxing unit was subsequently established as a result of a merger or consolidation of two (2) or more taxing units that received a guaranteed distribution under this chapter during calendar year 2012. The amount of the guaranteed distribution used in the numerator of the fraction described in subsection (a)(2) equals the combined guaranteed distributions received during calendar year 2012 by each taxing unit that was subsequently merged or consolidated into the current taxing unit.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.32; P.L.61-1991, SEC.5; P.L.68-1991, SEC.16; P.L.273-1999, SEC.58; P.L.90-2002, SEC.303; P.L.192-2002(ss), SEC.129; P.L.146-2008, SEC.351; P.L.205-2013, SEC.125; P.L.38-2021, SEC.47; P.L.9-2024, SEC.198; P.L.137-2024, SEC.14; P.L.120-2025, SEC.3.

IC 6-5.5-8-3Procedure for making semiannual distributions to counties Sec. 3. (a) Before April 15 and October 15 of each year, the state comptroller shall determine the amount of the next semiannual distribution under section 2 of this chapter for counties. The amounts determined by the state comptroller shall be based on the best information available to the department.

(b) In order to make the distributions required by this chapter, the state comptroller shall draw warrants on the financial institutions tax fund payable to the county, and the treasurer of state shall pay the warrants.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.33; P.L.205-2013, SEC.126; P.L.9-2024, SEC.199.

IC 6-5.5-8-4Appropriation Sec. 4. There is appropriated from the financial institutions tax fund an amount necessary to make the distributions required by this chapter.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-9Chapter 9. Miscellaneous

6-5.5-9-1Rules 6-5.5-9-2Other provisions applicable to IC 6-5.5 6-5.5-9-3Effect of tax under IC 6-5.5 held inapplicable or invalid 6-5.5-9-4Exemption from income taxes 6-5.5-9-5Depositor or owner of capital stock, share accounts, certificates of indebtedness, or investment in taxpayer with principal offices in state; tax liability

IC 6-5.5-9-1Rules Sec. 1. The department shall adopt rules under IC 4-22-2 to implement this article.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-9-2Other provisions applicable to IC 6-5.5 Sec. 2. For purposes of administration and enforcement the provisions of IC 6-8.1 that are applicable to a listed tax and an income tax apply to the tax imposed by this article.

As added by P.L.347-1989(ss), SEC.1.

IC 6-5.5-9-3Effect of tax under IC 6-5.5 held inapplicable or invalid Sec. 3. If the tax imposed by this article is held inapplicable or invalid with respect to a taxpayer, then notwithstanding the statute of limitations set forth in IC 6-8.1-5-2(a), the taxpayer is liable for the taxes imposed for the taxable periods with respect to which the tax under this article is held inapplicable or invalid.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.34; P.L.192-2002(ss), SEC.130; P.L.1-2003, SEC.48.

IC 6-5.5-9-4Exemption from income taxes Sec. 4. (a) A taxpayer who is subject to taxation under this article for a taxable year or part of a taxable year is not, for that taxable year or part of a taxable year, subject to the income taxes imposed by IC 6-3.

(b) The exemption provided for the taxes listed in subsection (a) does not apply to a taxpayer to the extent the taxpayer is acting in a fiduciary capacity.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.35; P.L.1-1991, SEC.56; P.L.192-2002(ss), SEC.131.

IC 6-5.5-9-5Depositor or owner of capital stock, share accounts, certificates of indebtedness, or investment in taxpayer with principal offices in state; tax liability Sec. 5. A depositor or owner of capital stock, capital shares, share accounts, certificates of indebtedness or investment, or comparable investment or interest in a taxpayer with its principal offices in Indiana is not liable for taxation under this article with respect to that interest.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990, SEC.36.

IC 6-6ARTICLE 6. MOTOR FUEL AND VEHICLE EXCISE TAXES

Ch. 1.Repealed Ch. 1.1.Gasoline Tax Ch. 1.5.Repealed Ch. 1.6.Fuel Tax Index Factors Ch. 2.Repealed Ch. 2.1.Repealed Ch. 2.5.Special Fuel Tax Ch. 3.Repealed Ch. 4.Repealed Ch. 4.1.Motor Carrier Fuel Tax Ch. 5.Motor Vehicle Excise Tax Ch. 5.1.Excise Tax on Recreational Vehicles and Truck Campers Ch. 5.5.Commercial Vehicle Excise Tax Ch. 6.Commercial Vessel Tonnage Tax Ch. 6.5.Aircraft License Excise Tax Ch. 6.6.Repealed Ch. 7.Repealed Ch. 8.Repealed Ch. 9.Auto Rental Excise Tax Ch. 9.5.Vanderburgh County Supplemental Auto Rental Excise Tax Ch. 9.7.Marion County Supplemental Auto Rental Excise Tax Ch. 10.Repealed Ch. 11.Boat Excise Tax Ch. 12.Road Tax Credit Ch. 13.Aviation Fuel Excise Tax Ch. 14.Alternative Fuel Decals Ch. 15.Heavy Equipment Rental Excise Tax Ch. 16.Vehicle Sharing Excise Tax

IC 6-6-1Chapter 1. RepealedRepealed by Acts 1979, P.L.79, SEC.2.

IC 6-6-1.1Chapter 1.1. Gasoline Tax

6-6-1.1-101Short title 6-6-1.1-102Application of definitions and rules of construction 6-6-1.1-103Definitions 6-6-1.1-104Rules of construction 6-6-1.1-105Citation to prior law 6-6-1.1-201Rate and burden of tax 6-6-1.1-201.5Repealed 6-6-1.1-202Time considered received; in-state gasoline; withdrawal from refinery or terminal 6-6-1.1-203Time considered received; imported gasoline; storage 6-6-1.1-204Time considered received; imported gasoline; use directly from transport 6-6-1.1-205Time considered received; imported gasoline; transport by licensed distributor 6-6-1.1-206Time considered received; in-state gasoline produced or blended 6-6-1.1-207Time considered received; in-state gasoline not covered by IC 6-6-1.1-202 through IC 6-6-1.1-206 6-6-1.1-208Imported gasoline; motor vehicle fuel supply tanks; exemption 6-6-1.1-209Inventory tax; imposition; computation; listed tax 6-6-1.1-301Exemptions 6-6-1.1-302Application for exemption permit; persons eligible 6-6-1.1-303Application for exemption permit; form; fee 6-6-1.1-304Application for exemption permit; investigation 6-6-1.1-305Exemption permit holders; issuance of certificate to distributors 6-6-1.1-401License to distributor; requirement 6-6-1.1-402License to distributor; application; contents 6-6-1.1-403License to distributor; denial; grounds; hearing 6-6-1.1-404License to distributor; foreign corporations 6-6-1.1-405License to distributor; financial statement; fee 6-6-1.1-405.5Investigations to enforce chapter 6-6-1.1-406License to distributor; bond, letter of credit, or cash deposit 6-6-1.1-407Bond or letter of credit of distributor unsatisfactory; reduction of cash deposit 6-6-1.1-408Amount of bond, letter of credit, or cash deposit insufficient; new requirements; cancellation of certificate 6-6-1.1-409Release of surety of distributor's bond or institution issuing letter of credit; retaining cash deposit; notice; cancellation of license 6-6-1.1-410Financial statements; increased bond, letter of credit, or cash deposit amounts 6-6-1.1-411Temporary license; investigation; conditions and requirements 6-6-1.1-412Permanent license; minimum gallonage 6-6-1.1-413No permanent license; insufficient gallonage 6-6-1.1-414License nonassignable; new license required 6-6-1.1-415Cancellation of distributor's license; grounds; notice; hearing 6-6-1.1-416Cancellation of license on distributor's request; requisites 6-6-1.1-417Cancellation of distributor's license for inactiveness; notice 6-6-1.1-418Listing of licensed distributors; index of applications and bonds 6-6-1.1-501Monthly reports to determine tax liability; itemized contents 6-6-1.1-502Monthly payment of tax due; computation 6-6-1.1-503Repealed 6-6-1.1-504Purchaser other than licensed distributor; same reports; payment of tax 6-6-1.1-505Repealed 6-6-1.1-506Repealed 6-6-1.1-507Repealed 6-6-1.1-508Repealed 6-6-1.1-509Repealed 6-6-1.1-510Repealed 6-6-1.1-511Repealed 6-6-1.1-512Discontinuance, sale, or transfer of distributor's business; notice to administrator 6-6-1.1-513Discontinuance, sale, or transfer of distributor's business; accrued tax liabilities due and payable 6-6-1.1-514Sale or transfer of distributor's business; liability of purchaser or transferee for any accrued unpaid tax, penalty, and interest 6-6-1.1-515Reports; electronic filing 6-6-1.1-601Repealed 6-6-1.1-602Repealed 6-6-1.1-603Repealed 6-6-1.1-604Repealed 6-6-1.1-605Repealed 6-6-1.1-606Monthly reports of all deliveries of gasoline in and from Indiana; forms; contents 6-6-1.1-606.5Registration and licensure of persons transporting gasoline in and from Indiana; persons qualified to accept delivery of gasoline; transporter emblems; language of invoices or manifests; legitimate diversion 6-6-1.1-606.6Penalties; improper delivery of gasoline 6-6-1.1-607Monthly accounting of all gasoline delivered to or withdrawn from refinery or terminal; lessor report of leased storage space 6-6-1.1-608Waiver of reports required by IC 6-6-1.1-606 and IC 6-6-1.1-607; time limitations 6-6-1.1-701Deduction for exempted gasoline 6-6-1.1-702Sale or exchange agreement; deduction 6-6-1.1-703Sale of tax exempt gasoline; deduction 6-6-1.1-704Refund or deduction 6-6-1.1-705Deduction for evaporation, shrinkage, losses, and tax related expenses 6-6-1.1-801Tax collected by distributor as state money in trust; liability; use restricted to authorized purposes 6-6-1.1-801.5Tax receipts; transfer 6-6-1.1-802Deposit of tax receipts 6-6-1.1-803Refunds and costs; payment 6-6-1.1-804Repealed 6-6-1.1-805Motor fuel tax fund; transfer of residue balance to highway account 6-6-1.1-806Repealed 6-6-1.1-901Refund to purchaser for gasoline lost or destroyed; limitations; requisites; distributor excepted 6-6-1.1-902Refund to local transit system; interest 6-6-1.1-902.5Refund to rural transit system; interest 6-6-1.1-903Refund for tax paid on gasoline purchased or used for designated purposes; interest 6-6-1.1-904Repealed 6-6-1.1-904.1Refund; required procedures 6-6-1.1-905Repealed 6-6-1.1-906Refunds or credits; rules and regulations 6-6-1.1-907Refund or deduction; payment of tax in error; warrant; payment; requisites 6-6-1.1-908Deduction in lieu of warrant for payment of refund 6-6-1.1-909Gasoline tax refund account 6-6-1.1-910Class action for refund of tax; prerequisites 6-6-1.1-1001Repealed 6-6-1.1-1002Repealed 6-6-1.1-1003Repealed 6-6-1.1-1004Repealed 6-6-1.1-1005Repealed 6-6-1.1-1006Repealed 6-6-1.1-1007Repealed 6-6-1.1-1008Sealing pumps; impoundment of vehicles or tanks; report of meter readings 6-6-1.1-1009Cumulative remedies 6-6-1.1-1101Repealed 6-6-1.1-1102Repealed 6-6-1.1-1103Requests of another state for information 6-6-1.1-1104Repealed 6-6-1.1-1105Repealed 6-6-1.1-1106Repealed 6-6-1.1-1107Repealed 6-6-1.1-1108Repealed 6-6-1.1-1109Repealed 6-6-1.1-1110Gallonage totalizers; sealing; installation; evidence 6-6-1.1-1201Repealed 6-6-1.1-1202Identification markings on transportation equipment 6-6-1.1-1203Separate statement of tax rate on sales or delivery slips, bills, or statements 6-6-1.1-1204Political subdivisions; excise tax prohibited 6-6-1.1-1205Criminal proceedings; precedence 6-6-1.1-1206Suit against state to resolve tax dispute; jurisdiction; limitation 6-6-1.1-1301Repealed 6-6-1.1-1302Repealed 6-6-1.1-1303Repealed 6-6-1.1-1304Repealed 6-6-1.1-1305Submission of false information on invoice to support refund or credit; forfeiture 6-6-1.1-1306Fraudulent procurement of refund or credit; offense 6-6-1.1-1307Submission of multiple invoices for refund; offense 6-6-1.1-1308Failure to pay tax collected to administrator; offense 6-6-1.1-1309Distributor; violations; offense 6-6-1.1-1310Use of untaxed gasoline; offense 6-6-1.1-1311Use or sale in Indiana of tax-exempt gasoline purchased for export; offense; tax liability; export sales excepted 6-6-1.1-1312Reckless violations; offense 6-6-1.1-1313Evasion of tax; offense 6-6-1.1-1314Failure to keep books and records; penalty 6-6-1.1-1315Failure to file reports; incomplete reports; civil penalty 6-6-1.1-1316Breaking fuel pump seals; failure to report meter readings; removing post signs; failure to notify; offenses

IC 6-6-1.1-101Short title Sec. 101. This chapter shall be known and may be cited as the "Gasoline Tax Law."

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.4.

IC 6-6-1.1-102Application of definitions and rules of construction Sec. 102. The definitions and rules of construction contained in sections 103 and 104 of this chapter apply throughout this chapter unless the context clearly requires otherwise.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-103Definitions Sec. 103. As used in this chapter:

(a) "Administrator" means the administrative head of the department of state revenue or the administrator's designee.

(b) "Dealer" means a person, except a distributor, engaged in the business of selling gasoline in Indiana.

(c) "Department" means the department of state revenue.

(d) "Distributor" means a person who first receives gasoline in Indiana. However, "distributor" does not include the United States or any of its agencies unless their inclusion is permitted under the Constitution and laws of the United States.

(e) "Licensed distributor" means a person holding a valid distributor's license issued by the administrator.

(f) "Marine facility" means a marina or boat livery.

(g) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline, including casinghead and absorption or natural gasoline, regardless of their classifications or uses; and

(2) any liquid, which when subjected to distillation of gasoline, naphtha, kerosene, and similar petroleum products with American Society for Testing Materials Designation D-86, shows not less than ten percent (10%) distilled (recovered) below three hundred forty-seven degrees Fahrenheit (347 degrees F) or one hundred seventy-five degrees Centigrade (175 degrees C), and not less than ninety-five percent (95%) distilled (recovered) below four hundred sixty-four degrees Fahrenheit (464 degrees F) or two hundred forty degrees Centigrade (240 degrees C).

However, the term "gasoline" does not include liquefied gases which would not exist as liquids at a temperature of sixty degrees Fahrenheit (60 degrees F) or sixteen degrees Centigrade (16 degrees C), and a pressure of fourteen and seven-tenths (14.7) pounds per square inch absolute, or denatured, wood, or ethyl alcohol, ether, turpentine, or acetates, unless such product is used as an additive in the manufacture, compounding, or blending of a liquid within subdivision (2) or is otherwise blended with a liquid described in subdivision (2) (including ethanol used in E85), in which event only the quantity so used is considered gasoline. In addition, "gasoline" does not include those liquids which meet the specifications of subdivision (2) but which are especially designated for use other than as a fuel for internal combustion engines.

(h) "Motor vehicle" means a vehicle, except a vehicle operated on rails, which is propelled by an internal combustion engine or motor and is designed to permit its mobile use on public highways.

(i) "Person" means a natural person, partnership, firm, association, corporation, limited liability company, representative appointed by a court, or the state or its political subdivisions.

(j) "Public highway" means the entire width between boundary lines of every publicly maintained way in Indiana including streets and alleys in cities and towns when any part of the way is open to public use for vehicle travel.

(k) "Taxable marine facility" means a marine facility located on an Indiana lake.

(l) "Taxicab" means a motor vehicle which is:

(1) designed to carry not more than seven (7) individuals, including the driver;

(2) held out to the public for hire at a fare regulated by municipal ordinance and based upon length of trips or time consumed;

(3) not operated over a definite route; and

(4) a part of a commercial enterprise in the business of providing taxicab service.

(m) "Terminal" means a marine or pipeline gasoline facility.

(n) "Metered pump" means a stationary pump having a meter that is capable of measuring the amount of gasoline dispensed through it.

(o) "Billed gallons" means the gallons indicated on an invoice for payment to a supplier.

(p) "Export" for gasoline and fuels taxed in the same manner as gasoline under the origin state's statutes means the sale for export and delivery out of a state by or for the seller that is:

(1) an export by the seller in the origin state; and

(2) an import by the seller in the destination state.

(q) "Import" for gasoline and fuels taxed in the same manner as gasoline under the origin state's statutes means the purchase for export and transportation out of a state by or for the purchaser that is:

(1) an export by the purchaser in the origin state; and

(2) an import by the purchaser in the destination state.

(r) "Rack" means a dock, platform, or open bay:

(1) located at a refinery or terminal; and

(2) having a system of metered pipes and hoses to load fuel into a tank wagon or tank transport.

(s) "E85" means a fuel blend nominally consisting of eighty-five percent (85%) ethanol and fifteen percent (15%) gasoline (as described in subsection (g)(2)) that meets American Society for Testing and Materials standard specification 5798-99 for fuel ethanol for automotive spark-ignition engines (Ed75Ed85).

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.5; P.L.97-1987, SEC.1; P.L.69-1991, SEC.1; P.L.8-1993, SEC.96; P.L.122-2006, SEC.18.

IC 6-6-1.1-104Rules of construction Sec. 104. (a) Whenever a masculine gender pronoun is used in this chapter, it refers to the masculine, feminine, or neuter, whichever is appropriate.

(b) The singular form of any noun as used in this chapter includes the plural, and the plural includes the singular, where appropriate.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-105Citation to prior law Sec. 105. If a provision of the prior motor fuel or marine fuel tax laws (IC 6-6-1 and IC 6-6-1.5) has been replaced in the same form or in a restated form, by a provision of this chapter, then a citation to the provision of the prior law shall be construed as a citation to the corresponding provision of this chapter.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-201Rate and burden of tax Sec. 201. (a) A license tax is imposed on the use of all gasoline used in Indiana at the applicable rate specified in subsection (b), except as otherwise provided by this chapter. The distributor shall initially pay the tax on the billed gallonage of all gasoline the distributor receives in this state, less any deductions authorized by this chapter. The distributor shall then add the per gallon amount of tax to the selling price of each gallon of gasoline sold in this state and collected from the purchaser so that the ultimate consumer bears the burden of the tax.

(b) The license tax described in subsection (a) is imposed at the following applicable rate per gallon:

(1) Before July 1, 2017, eighteen cents ($0.18).

(2) For July 1, 2017, through June 30, 2018, the lesser of:

(A) the rate resulting from using the factors determined under IC 6-6-1.6-2; or

(B) twenty-eight cents ($0.28).

(3) Beginning July 1, 2018, and each July 1 through July 1, 2027, the department shall determine an applicable rate equal to the product of:

(A) the rate in effect on June 30; multiplied by

(B) the factor determined under IC 6-6-1.6-3.

The rate shall be rounded to the nearest cent ($0.01). After June 30, 2018, the new applicable rate may not exceed the rate in effect on June 30 plus one cent ($0.01). However, the new rate may not be less than the rate in effect on June 30. If the calculation of a new rate would produce a rate that is less than the rate in effect on June 30, the new rate shall be the rate in effect on June 30. The department shall publish the rate that will take effect on July 1 on the department's website not later than June 1.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.6; Acts 1980, P.L.10, SEC.6; P.L.59-1985, SEC.9; P.L.68-1988, SEC.1; P.L.69-1991, SEC.2; P.L.192-2002(ss), SEC.132; P.L.218-2017, SEC.35; P.L.159-2021, SEC.30; P.L.201-2023, SEC.106.

IC 6-6-1.1-201.5RepealedAs added by Acts 1980, P.L.10, SEC.7. Amended by Acts 1981, P.L.88, SEC.5. Repealed by P.L.59-1985, SEC.37.

IC 6-6-1.1-202Time considered received; in-state gasoline; withdrawal from refinery or terminal Sec. 202. (a) For purposes of this chapter, gasoline is considered received when it is withdrawn from an in-state refinery or terminal for sale or use in this state or for transfer to a destination in this state, unless the destination is another in-state refinery or terminal.

(b) Gasoline is received by the owner of the gasoline when it is withdrawn from the refinery or terminal. However, if the gasoline is withdrawn for delivery or transportation to or for the account of the holder of a distributor license, then the gasoline is received by the distributor to whom or for whose account it is delivered or transported.

(c) Only when gasoline is withdrawn for delivery or transportation to a person who sells and distributes by tank car, tank truck, or transport is that person a distributor as defined by section 103(d) of this chapter.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.2; Acts 1980, P.L.51, SEC.7.

IC 6-6-1.1-203Time considered received; imported gasoline; storage Sec. 203. Gasoline is received by the owner at the time it is unloaded in this state if it is imported into this state and placed in storage at a place other than a refinery or terminal.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.8.

IC 6-6-1.1-204Time considered received; imported gasoline; use directly from transport Sec. 204. If the gasoline referred to in section 203 of this chapter is used in this state directly from the transportation equipment by which it is transported, then it is received when it is brought into this state and by the person who uses it in this state.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.9.

IC 6-6-1.1-205Time considered received; imported gasoline; transport by licensed distributor Sec. 205. Gasoline shipped or brought into this state by a licensed distributor which is sold and delivered in this state directly to someone other than a licensed distributor is considered received by the distributor shipping or bringing the fuel into this state.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.10.

IC 6-6-1.1-206Time considered received; in-state gasoline produced or blended Sec. 206. Gasoline produced, compounded, or blended in this state at a place other than a refinery or terminal is considered received at the time and by the owner of the gasoline when it is produced, compounded, or blended.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.11.

IC 6-6-1.1-207Time considered received; in-state gasoline not covered by IC 6-6-1.1-202 through IC 6-6-1.1-206 Sec. 207. Gasoline acquired in this state by any person not covered by sections 202 through 206 of this chapter is considered received at the time of acquisition by the person acquiring it, unless the person from whom the gasoline is acquired has paid or incurred liability for, or is exempt under section 301 of this chapter from, the tax imposed on the gasoline.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.12.

IC 6-6-1.1-208Imported gasoline; motor vehicle fuel supply tanks; exemption Sec. 208. Any person who brings gasoline into this state in the fuel supply tank directly connected to the motor of the motor vehicle is not liable for the tax imposed under this chapter.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.13.

IC 6-6-1.1-209Inventory tax; imposition; computation; listed tax Sec. 209. (a) Persons having title to gasoline in storage and held for sale on the effective date of an increase in the license tax rate imposed under section 201 of this chapter are subject to an inventory tax based upon the gallonage in storage as of the close of the business day preceding the effective date of the increased license tax rate.

(b) Persons subject to the tax imposed under this section shall:

(1) take an inventory to determine the gallonage in storage for purposes of determining the inventory tax;

(2) report that gallonage on forms provided by the administrator; and

(3) pay the tax due within thirty (30) days of the prescribed inventory date.

(c) The amount of the inventory tax is equal to the inventory tax rate times the gallonage in storage as determined under subsection (a). The inventory tax rate is equal to the difference of the increased license tax rate minus the previous license tax rate.

(d) The inventory tax shall be considered a listed tax for the purposes of IC 6-8.1.

As added by P.L.59-1985, SEC.10.

IC 6-6-1.1-301Exemptions Sec. 301. The following transactions are exempt from the gasoline tax:

(1) Gasoline exported from Indiana to another state, territory, or foreign country.

(2) Gasoline sold to the United States or an agency or instrumentality thereof.

(3) Gasoline sold to a post exchange or other concessionaire on a federal reservation within Indiana; however, the post exchange or concessionaire shall collect, report, and pay to the administrator any tax permitted by federal law on gasoline sold.

(4) Gasoline used by a licensed distributor for any purpose other than the generation of power for the propulsion of motor vehicles upon the public highways.

(5) Gasoline received by a licensed distributor and thereafter lost or destroyed, except by evaporation, shrinkage, or unknown cause, while the distributor is still the owner.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.3; Acts 1980, P.L.51, SEC.14.

IC 6-6-1.1-302Application for exemption permit; persons eligible Sec. 302. The following persons may apply to the administrator for an exemption permit:

(1) A person who operates an airport where he sells gasoline for the exclusive purpose of propelling aircraft engines or motors.

(2) A person engaged at an airport in the business of selling gasoline for exclusive use in aircraft engines or motors.

(3) A person who operates a marine facility, except a taxable marine facility, and who sells gasoline at that facility for the exclusive purpose of propelling motorboat engines.

Such a person may apply for an exemption permit whether or not he is a licensed distributor.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.15.

IC 6-6-1.1-303Application for exemption permit; form; fee Sec. 303. (a) A person must apply for an exemption permit on the form prescribed by the administrator. A fifteen dollar ($15) permit fee must be paid before an exemption permit may be issued.

(b) An exemption permit is conditioned on the following terms:

(1) The permit holder shall sell all gasoline purchased tax free under the exemption permit for the exclusive purpose of propelling the engines or motors of aircraft or motorboats.

(2) The permit holder shall keep for a period of three (3) years, complete records of all gasoline purchased, acquired, stored, used, or disposed of by him.

(3) The permit holder shall provide the administrator with such reports of gasoline purchased, acquired, used, or disposed of as the administrator may require.

(4) The permit holder shall permit the administrator or his authorized agent to examine during regular business hours any of the records of the applicant pertaining to the acquisition, use, and distribution of gasoline and any of the equipment of the applicant used for the receipt, storage, or use of gasoline.

(5) The permit holder shall not purchase gasoline tax free for use in motor vehicles.

(6) The permit holder shall not sell any gasoline acquired tax free under the exemption permit unless it is sold tax free and delivered directly into the fuel supply tank of an aircraft or motorboat.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.16; P.L.97-1987, SEC.2.

IC 6-6-1.1-304Application for exemption permit; investigation Sec. 304. The administrator may make any investigation he considers necessary when reviewing an application for an exemption permit.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-305Exemption permit holders; issuance of certificate to distributors Sec. 305. A person who holds an exemption permit may issue an executed exemption certificate to a licensed distributor. The licensed distributor may then sell gasoline to that person free of the tax imposed by this chapter.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-401License to distributor; requirement Sec. 401. A person desiring to receive gasoline within Indiana without paying gasoline tax to his supplier must hold an uncanceled license issued by the administrator to do business as a distributor. For purposes of this section and section 415 of this chapter, "supplier" means a distributor or person who sells gasoline.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.4; Acts 1980, P.L.51, SEC.17.

IC 6-6-1.1-402License to distributor; application; contents Sec. 402. To obtain a license, every person desiring to operate as a distributor must, before commencing operations as a distributor, file with the administrator a sworn application containing the following information:

(1) The name under which the distributor will transact business in Indiana.

(2) The location, including street address, of the applicant's principal place of business.

(3) The name and complete residence address of the owner or the names and addresses of the partners, if the applicant is a partnership, the names and addresses of the managers and members, if the applicant is a limited liability company, or the names and addresses of the principal officers, if the applicant is a corporation or association.

(4) Any other information the administrator reasonably requires.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.97-1987, SEC.3; P.L.8-1993, SEC.97.

IC 6-6-1.1-403License to distributor; denial; grounds; hearing Sec. 403. (a) The administrator may refuse to issue a license to do business as a distributor in Indiana if:

(1) the application is filed by a person whose license has previously been cancelled for cause;

(2) the application is not filed in good faith, as determined by the administrator;

(3) the application is filed by some person as a subterfuge for the real person in interest whose license has previously been cancelled for cause;

(4) the applicant has an outstanding listed tax liability; or

(5) the applicant has not complied with a filing requirement of the department.

(b) Before being denied a license as a distributor, the applicant is entitled to a hearing with five (5) days written notice. At the hearing the applicant may appear in person or by counsel and present testimony.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.96-1989, SEC.1.

IC 6-6-1.1-404License to distributor; foreign corporations Sec. 404. No license may be issued to a foreign corporation unless it is properly qualified to do business in Indiana.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-405License to distributor; financial statement; fee Sec. 405. No license may be issued unless the application is accompanied by a current financial statement and a license fee of one hundred dollars ($100). The applicant shall pay the license fee to the administrator.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-405.5Investigations to enforce chapter Sec. 405.5. The administrator may make any investigation the administrator considers reasonably necessary for the enforcement of this chapter.

As added by P.L.69-1991, SEC.3.

IC 6-6-1.1-406License to distributor; bond, letter of credit, or cash deposit Sec. 406. (a) Concurrently with the filing of an application for a distributor's license, the department may require an applicant to file with the administrator a surety bond, a letter of credit, or a cash deposit:

(1) in an amount of not less than two thousand dollars ($2,000) nor more than a three (3) month tax liability for the applicant as estimated by the administrator; and

(2) conditioned upon the prompt filing of true reports and payment of all gasoline taxes levied by the state, together with any penalties and interest, and upon faithful compliance with the provisions of this chapter.

(b) The administrator shall determine the amount of the distributor's bond, cash deposit, or letter of credit. If the applicant files a bond or a letter of credit, the bond or letter of credit must:

(1) be with a surety company or financial institution approved by the administrator;

(2) name the applicant as the principal and the state as the obligee; and

(3) be on forms prescribed by the department.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.18; P.L.77-1985, SEC.1; P.L.97-1987, SEC.4; P.L.96-1989, SEC.2; P.L.69-1991, SEC.4.

IC 6-6-1.1-407Bond or letter of credit of distributor unsatisfactory; reduction of cash deposit Sec. 407. (a) The administrator may require a distributor to file a new bond or new letter of credit, with a satisfactory surety or financial institution in the same form and amount if:

(1) liability upon the old bond or letter of credit is discharged or reduced by judgment rendered, payment made, or otherwise; or

(2) in the opinion of the administrator any surety on the old bond or financial institution on the old letter of credit becomes unsatisfactory.

If the new bond or new letter of credit is unsatisfactory, the administrator shall cancel the license of the distributor. If the new bond or new letter of credit is satisfactorily furnished, the administrator shall release in writing the surety on the old bond or financial institution on the old letter of credit from any liability accruing after the effective date of the new bond or new letter of credit.

(b) If a distributor has a cash deposit with the administrator and the deposit is reduced by a judgment rendered, payment made, or otherwise, the administrator may require the distributor to make a new deposit equal to the amount of the reduction.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.97-1987, SEC.5.

IC 6-6-1.1-408Amount of bond, letter of credit, or cash deposit insufficient; new requirements; cancellation of certificate Sec. 408. (a) If the administrator reasonably determines that the amount of the existing bond, letter of credit, or cash deposit is insufficient to insure payment to the state of the tax and any penalty and interest for which the distributor is or may become liable, then the distributor shall upon written demand of the administrator file a new bond or letter of credit, or increase the cash deposit. The administrator shall give the distributor at least fifteen (15) days to secure the new bond or letter of credit or make the increased cash deposit.

(b) The new bond, letter of credit, or cash deposit must meet the requirements set forth in section 406 of this chapter.

(c) If the new bond, letter of credit, or cash deposit required under this section is unsatisfactory, the administrator shall cancel the distributor's license certificate.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.77-1985, SEC.2; P.L.97-1987, SEC.6; P.L.69-1991, SEC.5.

IC 6-6-1.1-409Release of surety of distributor's bond or institution issuing letter of credit; retaining cash deposit; notice; cancellation of license Sec. 409. (a) Sixty (60) days after making a written request for release to the administrator, the surety of a bond furnished by a distributor is released from any liability to the state accruing on the bond after the sixty (60) day period. The release does not affect any liability accruing before the expiration of the sixty (60) day period.

(b) One hundred eighty (180) days after making a written request for release to the administrator, the financial institution issuing the letter of credit for a distributor is released from any liability accruing on the letter of credit.

(c) The administrator shall promptly notify the distributor furnishing the bond or letter of credit that a release has been requested, and unless the distributor obtains a new bond or letter of credit which meets the requirements of section 406 of this chapter and files with the administrator:

(1) the new bond within the sixty (60) day period; or

(2) the new letter of credit within the one hundred eighty (180) day period;

the administrator shall cancel the distributor's license.

(d) Sixty (60) days after making a written request for release to the administrator, the cash deposit provided by a distributor is cancelled as security for any obligation accruing after the expiration of the sixty (60) day period. However, the administrator may retain all or part of the cash deposit for up to three (3) years and one (1) day as security for any obligations accruing before the effective date of the cancellation. Any part of the deposit that is not retained by the administrator shall be released to the distributor. Before the expiration of the sixty (60) day period, the distributor must provide the administrator with a bond or letter of credit that satisfies section 406 of this chapter, or the administrator shall cancel the distributor's license.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.97-1987, SEC.7.

IC 6-6-1.1-410Financial statements; increased bond, letter of credit, or cash deposit amounts Sec. 410. The administrator may in his reasonable discretion require a distributor to furnish current certified, audited financial statements. If the administrator determines that a distributor's financial condition warrants an increase in the distributor's bond, letter of credit, or cash deposit, the administrator may require the distributor to furnish an increased bond, letter of credit, or cash deposit.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.97-1987, SEC.8.

IC 6-6-1.1-411Temporary license; investigation; conditions and requirements Sec. 411. The administrator may make any investigation he considers necessary once an application has been properly filed, the license fee paid, and the bonding requirements met. If all conditions and requirements of this chapter have been met, the administrator shall issue to the applicant a temporary license to transact business as a distributor in Indiana. The temporary license is valid for one (1) year.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-412Permanent license; minimum gallonage Sec. 412. If an Indiana based distributor distributes at least five hundred thousand (500,000) gallons of gasoline during the year that the temporary license is in effect and complies with all the other provisions of this chapter, the administrator shall issue a permanent license to the distributor without charge. The permanent license is effective unless canceled under this chapter.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.19.

IC 6-6-1.1-413No permanent license; insufficient gallonage Sec. 413. If an Indiana based distributor does not distribute at least five hundred thousand (500,000) gallons of gasoline during the year that the temporary license is in effect, the administrator may not issue a permanent license to that distributor.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.20.

IC 6-6-1.1-414License nonassignable; new license required Sec. 414. A license issued under this chapter is not assignable and is valid only for the distributor in whose name it is issued. If there is a change in name or ownership, the distributor shall apply for a new license.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-415Cancellation of distributor's license; grounds; notice; hearing Sec. 415. (a) The administrator may, after fifteen (15) days written notice, cancel a distributor's license if the distributor:

(1) files a false monthly report of the information required by this chapter;

(2) fails or refuses to file the monthly report required by this chapter;

(3) fails or refuses to pay the full amount of the tax imposed by this chapter on the expiration of the fifteen (15) day notice period provided by this subsection;

(4) is an Indiana distributor and fails to distribute five hundred thousand (500,000) gallons or more of gasoline during a twelve (12) month period;

(5) fails to file a surety bond, letter of credit, or cash deposit as required by section 406 of this chapter;

(6) fails to honor a subpoena issued by the department under IC 6-8.1-3-12;

(7) knowingly breaks the seal on a pump sealed under section 1008 or 1110 of this chapter; or

(8) fails or refuses to comply with IC 6-8.1-5-4 or section 1314 of this chapter.

(b) The distributor may appear at the time and place given in the notice to show cause why the distributor's license should not be canceled. Notice of the hearing and of the cancellation must be sent by registered or certified mail to the distributor's last known address appearing in the administrator's files. A distributor whose license is canceled may not sell gasoline in Indiana without paying the tax imposed under this chapter to the supplier (as defined in section 401 of this chapter).

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.5; Acts 1980, P.L.51, SEC.21; P.L.97-1987, SEC.9; P.L.96-1989, SEC.3; P.L.69-1991, SEC.6.

IC 6-6-1.1-416Cancellation of license on distributor's request; requisites Sec. 416. A distributor may make a written request to the administrator to cancel his license, and the administrator may cancel the license effective sixty (60) days from receipt of the request if prior to cancellation the distributor has paid all tax, penalty, and interest accruing under this chapter.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-417Cancellation of distributor's license for inactiveness; notice Sec. 417. If the administrator determines that a distributor has not received, used, or sold gasoline for a period of six (6) months, and is no longer engaged as a distributor, the administrator may cancel the license by giving sixty (60) days' notice mailed to that person's last known address appearing in the administrator's files.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.22.

IC 6-6-1.1-418Listing of licensed distributors; index of applications and bonds Sec. 418. The administrator shall keep a file and alphabetical index of all applications and bonds, and shall keep a record of all licensed distributors. The administrator shall furnish to each licensed distributor, before August 16 of each year, a complete list of all licensed distributors as of the preceding July 1. The administrator shall also furnish to each licensed distributor monthly supplements showing any changes in the list.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-501Monthly reports to determine tax liability; itemized contents Sec. 501. To determine his tax liability under this chapter, each distributor shall file a sworn report with the administrator by the twentieth day of each calendar month. The administrator may require the following information to be included in the report:

(1) An itemized statement of the number of invoiced gallons of gasoline received by the distributor within Indiana during the preceding calendar month, as determined under sections 202 through 207 of this chapter. The administrator may require that the statement include the date, place, and quantity of each receipt of gasoline, the point of origin, the method by which and the name of the person from whom the gasoline was received, and any other information which the administrator requires.

(2) An itemized statement showing the deductions provided by sections 701 through 705 of this chapter, together with such details to support each deduction as the administrator may require.

(3) An itemized statement showing the gallons of gasoline sold to a marine facility for which the distributor does not receive an exemption certificate authorized by section 305 of this chapter.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.6; Acts 1980, P.L.51, SEC.23.

IC 6-6-1.1-502Monthly payment of tax due; computation Sec. 502. (a) Except as provided in subsection (b), at the time of filing each monthly report, each distributor shall pay to the administrator the full amount of tax due under this chapter for the preceding calendar month, computed as follows:

(1) Enter the total number of invoiced gallons of gasoline received during the preceding calendar month.

(2) Subtract the number of gallons for which deductions are provided by sections 701 through 705 of this chapter from the number of gallons entered under subdivision (1).

(3) Subtract the number of gallons reported under section 501(3) of this chapter.

(4) Multiply the number of invoiced gallons remaining after making the computation in subdivisions (2) and (3) by the tax rate prescribed by section 201 of this chapter to compute that part of the gasoline tax to be deposited in the highway, road, and street fund under section 802(2) of this chapter or in the motor fuel tax fund under section 802(3) of this chapter.

(5) Multiply the number of gallons subtracted under subdivision (3) by the tax rate prescribed by section 201 of this chapter to compute that part of the gasoline tax to be deposited in the fish and wildlife fund under section 802(1) of this chapter.

(b) If the department determines that a distributor's:

(1) estimated monthly gasoline tax liability for the current year; or

(2) average monthly gasoline tax liability for the preceding year;

exceeds five thousand dollars ($5,000), the distributor shall pay the monthly gasoline taxes due by electronic fund transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by overnight courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.24; Acts 1980, P.L.10, SEC.8; Acts 1981, P.L.93, SEC.1; P.L.59-1985, SEC.11; P.L.92-1987, SEC.5; P.L.63-1988, SEC.12; P.L.28-1997, SEC.22; P.L.211-2007, SEC.35.

IC 6-6-1.1-503RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-504Purchaser other than licensed distributor; same reports; payment of tax Sec. 504. Every person other than a licensed distributor who purchases or otherwise acquires taxable gasoline and unknowingly fails to pay the gasoline tax to either a licensed Indiana distributor or Indiana dealer shall make the same reports and payment required of distributors under this chapter. However, the person is not entitled to any deductions or credits.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.25.

IC 6-6-1.1-505RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.7; Acts 1980, P.L.51, SEC.26. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-506RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-507RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-508RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-509RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-510RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-511RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-512Discontinuance, sale, or transfer of distributor's business; notice to administrator Sec. 512. If a distributor intends to discontinue, sell, or transfer his business, he must give written notice to the administrator at least ten (10) days prior to his ceasing business. The notice shall give the date of discontinuance or the date of sale or transfer and the name and address of the purchaser or transferee.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-513Discontinuance, sale, or transfer of distributor's business; accrued tax liabilities due and payable Sec. 513. Notwithstanding any other provision of this chapter, any tax, penalty, and interest which have accrued under this chapter are due and payable at the time a distributor discontinues, sells, or transfers his business. The distributor shall file a report and pay any tax, penalty, and interest within ten (10) days after the discontinuance, sale, or transfer.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-514Sale or transfer of distributor's business; liability of purchaser or transferee for any accrued unpaid tax, penalty, and interest Sec. 514. If a distributor fails to give notice to the administrator as required by section 512 of this chapter, the purchaser or transferee of his business is liable to the state for all unpaid tax, penalty, and interest accrued under this chapter against the distributor through the date of sale or transfer. However, the purchaser's or transferee's liability is limited to the value of the property and business acquired from the distributor.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-515Reports; electronic filing Sec. 515. The administrator may require that all reports required to be filed under section 209, 501, 502, 504, or 606 of this chapter must be filed in an electronic format prescribed by the administrator.

As added by P.L.176-2006, SEC.3.

IC 6-6-1.1-601RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.8; Acts 1980, P.L.51, SEC.27. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-602RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-603RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.9; Acts 1980, P.L.51, SEC.28. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-604RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.29. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-605RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-606Monthly reports of all deliveries of gasoline in and from Indiana; forms; contents Sec. 606. (a) Every person, including persons engaged in for-hire interstate or intrastate commerce, who:

(1) transports gasoline by any manner from a point outside Indiana to a point in Indiana; and

(2) is not a licensed distributor;

shall report to the administrator on forms prescribed by the department all deliveries of gasoline from a point outside Indiana to a point in Indiana.

(b) The reports required by subsection (a) must cover monthly periods and must show the following:

(1) The name and address of the person to whom deliveries of gasoline have actually been made.

(2) The name and address of the originally named consignee, if gasoline has been delivered to a person other than the originally named consignee.

(3) The point of origin, point of delivery, date of delivery, number and initials of each tank car, and the number of gallons contained in each car, if the gasoline has been shipped by rail.

(4) The number of gallons contained in the boat, barge, or vessel, if the gasoline has been shipped by water.

(5) The number of gallons contained in each tank truck, if the gasoline has been shipped by motor truck.

(6) The manner in which the gasoline has been delivered if the delivery is not covered by clauses (1) through (5).

(7) Additional information relating to gasoline shipments as the administrator reasonably may require.

(c) Every person, including persons engaged in for-hire interstate or intrastate commerce who:

(1) transports gasoline from a point in Indiana to a point outside Indiana; and

(2) is not a licensed distributor in Indiana;

shall report to the administrator on forms prescribed by the department all gasoline transported from a point inside Indiana to a point outside Indiana.

(d) The report required by subsection (c) must be made under oath on a form prescribed by the administrator, must cover monthly periods, and must show the following:

(1) The name and address of the person to whom deliveries of gasoline have actually been made.

(2) The name and address of the originally named consignee, if gasoline has been delivered to a person other than the originally named consignee.

(3) The point of origin, point of delivery, date of delivery, number and initials of each tank car, and the number of gallons contained in each car if the gasoline has been shipped by rail.

(4) The name and number of gallons contained in the boat, barge, or vessel if the gasoline has been shipped by water.

(5) The registration number and number of gallons contained in each tank truck if the gasoline has been shipped by motor truck.

(6) The manner in which the gasoline has been delivered if the delivery is not covered by clauses (1) through (5).

(7) Additional information relating to gasoline shipments as the administrator reasonably may require.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.30; P.L.69-1991, SEC.7.

IC 6-6-1.1-606.5Registration and licensure of persons transporting gasoline in and from Indiana; persons qualified to accept delivery of gasoline; transporter emblems; language of invoices or manifests; legitimate diversion Sec. 606.5. (a) Every person included within the terms of section 606(a) and 606(c) of this chapter shall register with the administrator before engaging in those activities. The administrator shall issue a transportation license to a person who registers with the administrator under this section.

(b) Every person included within the terms of section 606(a) of this chapter who transports gasoline in a vehicle on the highways in Indiana for purposes other than use and consumption by that person may not make a delivery of that gasoline to any person in Indiana other than a licensed distributor except:

(1) when the tax imposed by this chapter on the receipt of the transported gasoline was charged and collected by the parties; and

(2) under the circumstances described in section 205 of this chapter.

(c) Every person included within the terms of section 606(c) of this chapter who transports gasoline in a vehicle upon the highways of Indiana for purposes other than use and consumption by that person may not, on the journey carrying that gasoline to points outside Indiana, make delivery of that fuel to any person in Indiana.

(d) A distributor's or an Indiana transportation license is required for a person or the person's agent acting in the person's behalf to operate a vehicle for the purpose of delivering gasoline within the boundaries of Indiana when the vehicle has a total tank capacity of at least eight hundred fifty (850) gallons.

(e) The operator of a vehicle to which this section applies shall at all times when engaged in the transporting of gasoline on the highways have with the vehicle an invoice or manifest showing the origin, quantity, nature, and destination of the gasoline that is being transported.

(f) The department shall provide for relief if a shipment of gasoline is legitimately diverted from the represented destination state after the shipping paper has been issued by a terminal operator or if a terminal operator failed to cause proper information to be printed on the shipping paper. Provisions for relief under this subsection:

(1) must require that the shipper or its agent obtain a diversion number within twenty-four (24) hours of the diversion and report the number on the shipper's or agent's monthly return to the department; and

(2) must be consistent with the refund provisions of this chapter.

As added by P.L.69-1991, SEC.8. Amended by P.L.129-2001, SEC.10; P.L.182-2009(ss), SEC.234; P.L.234-2019, SEC.18; P.L.146-2020, SEC.32.

IC 6-6-1.1-606.6Penalties; improper delivery of gasoline Sec. 606.6. (a) Except as provided in subsection (c), every person included within the terms of section 606(a) of this chapter who transports gasoline in a vehicle on the highways of Indiana in a vehicle having a total tank capacity of less than eight hundred fifty (850) gallons is liable to the state for a penalty equal to the rate provided in section 201 of this chapter on all gasoline transported into Indiana and delivered to any person other than a licensed distributor.

(b) Except as provided in subsection (c), every person included within the terms of section 606(c) of this chapter who transports gasoline in a vehicle on the highways of Indiana is liable to the state for a penalty equal to the rate provided in section 201 of this chapter on all gasoline:

(1) received by the person for transportation to a point outside Indiana;

(2) not in fact transported to a point outside Indiana; and

(3) in fact delivered to a person other than a licensed distributor inside Indiana.

(c) The following are excluded when computing any liability under this section:

(1) All deliveries of gasoline when the tax imposed by law was charged or collected by the parties under the circumstances described in this section.

(2) Deliveries of gasoline used in computing the tax under section 301 of this chapter.

As added by P.L.69-1991, SEC.9.

IC 6-6-1.1-607Monthly accounting of all gasoline delivered to or withdrawn from refinery or terminal; lessor report of leased storage space Sec. 607. (a) Every person owning or operating a refinery or terminal in Indiana shall, on forms prescribed by the administrator, make a monthly accounting to the administrator of all gasoline withdrawn from a refinery or terminal, and all gasoline delivered to and withdrawn from any terminal, whether or not the fuel is owned by the owner or operator.

(b) Every person owning or operating a refinery or terminal in Indiana who leases storage space in that refinery or terminal for gasoline to another person shall on forms prescribed by the administrator make a monthly accounting to the administrator with respect to the leased storage space. The report shall show the following:

(1) The name of the lessee.

(2) The volume of storage space that is leased.

(3) The volume of gasoline existing in that storage space at the beginning and end of the month.

(4) The monthly throughput which is:

(A) the total volume of gasoline put into the storage space during the month; and

(B) the total volume of gasoline removed from the storage space during the month.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.31; P.L.69-1991, SEC.10.

IC 6-6-1.1-608Waiver of reports required by IC 6-6-1.1-606 and IC 6-6-1.1-607; time limitations Sec. 608. The reports required by sections 606 and 607 of this chapter are for information purposes only and the administrator may waive their filing if they are unnecessary for the proper administration of this chapter. Persons required to file reports under this chapter shall file them with the administrator within the time period established by section 501 of this chapter for filing distributors' reports of gasoline received.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.32.

IC 6-6-1.1-701Deduction for exempted gasoline Sec. 701. A licensed distributor who receives gasoline that qualifies for an exemption under section 301 of this chapter is entitled to a deduction for that gasoline after furnishing such proof as the administrator may require. The deduction must be claimed on the report covering the month of export, loss, destruction, or sale.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.33.

IC 6-6-1.1-702Sale or exchange agreement; deduction Sec. 702. A licensed distributor who receives gasoline in Indiana and then delivers it to or for the account of another licensed distributor in Indiana under a sale or exchange agreement is entitled to a deduction for that gasoline. The deduction must be claimed on the report covering the month of delivery.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.34.

IC 6-6-1.1-703Sale of tax exempt gasoline; deduction Sec. 703. A licensed distributor who sells tax exempt gasoline described in section 302 of this chapter is entitled to a deduction for that gasoline. The deduction must be claimed on the report covering the month of sale.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.35.

IC 6-6-1.1-704Refund or deduction Sec. 704. A licensed distributor who pays any gasoline tax in error, or who is entitled to a refund or credit under this chapter, may, upon authorization by the administrator, take a deduction in lieu of a refund on subsequent monthly reports for the amount of gasoline on which the tax was paid.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.36.

IC 6-6-1.1-705Deduction for evaporation, shrinkage, losses, and tax related expenses Sec. 705. (a) If a monthly report is filed and the amount due is remitted at or before the time required by this chapter, a distributor is entitled to a deduction equal to one and six-tenths percent (1.6%) of the remainder of:

(1) the number of invoiced gallons of gasoline he received in Indiana during the preceding calendar month; minus

(2) the deductions claimed by the distributor under sections 701 through 704 of this chapter.

This deduction is a flat allowance to cover evaporation, shrinkage, losses (except losses covered by section 301(5) of this chapter), and the distributor's expenses in collecting and timely remitting the tax imposed by this chapter.

(b) If a monthly report is filed or the amount due is remitted later than the time required under this chapter, the distributor shall pay to the administrator all of the gasoline tax the distributor received from the sale of gasoline covered by the late report, reduced by payments made under IC 6-8.1-8-1.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.37; P.L.77-1985, SEC.3; P.L.59-1985, SEC.12; P.L.92-1987, SEC.6.

IC 6-6-1.1-801Tax collected by distributor as state money in trust; liability; use restricted to authorized purposes Sec. 801. Until a distributor pays the license tax on gasoline he receives, the tax money he collects on the sale of gasoline is state money. A distributor who collects such license tax money shall hold it in trust for the state and for payment to the department as provided in this chapter. In the case of a corporate or partnership distributor, every officer, employee, or member of the employer who in that capacity is under a duty to collect the tax, is personally liable for the tax, penalty, and interest. Taxes collected on gasoline, except those collected at a taxable marine facility, shall be used only for highway purposes and for payment of any part of the cost of traffic policing and traffic safety incurred by the state or any of its political subdivisions, as may be authorized by law.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.10; Acts 1980, P.L.51, SEC.38.

IC 6-6-1.1-801.5Tax receipts; transfer Sec. 801.5. The administrator shall transfer the first seventy million dollars ($70,000,000) of the taxes that are collected under this chapter during a state fiscal year to the state highway road construction and improvement fund.

As added by Acts 1981, P.L.88, SEC.6. Amended by P.L.68-1988, SEC.2; P.L.18-1990, SEC.21; P.L.192-2002(ss), SEC.133; P.L.218-2017, SEC.36.

IC 6-6-1.1-802Deposit of tax receipts Sec. 802. The administrator shall, after the transfer specified in section 801.5 of this chapter, deposit the remainder of the revenues collected under this chapter in the following manner:

(1) The taxes collected with respect to gasoline delivered to a taxable marine facility shall be deposited in the fish and wildlife fund established by IC 14-22-3-2.

(2) Twenty-five percent (25%) of the taxes collected under this chapter, except the taxes referred to in subdivision (1), shall be deposited in the highway, road and street fund established under IC 8-14-2-2.1.

(3) The remainder of the revenues collected under this chapter shall be deposited in the motor fuel tax fund of the motor vehicle highway account.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.39; Acts 1980, P.L.10, SEC.9; Acts 1981, P.L.93, SEC.2; Acts 1981, P.L.88, SEC.7; P.L.1-1995, SEC.50.

IC 6-6-1.1-803Refunds and costs; payment Sec. 803. All receipts of the motor fuel tax fund are available for payment of refunds authorized by this chapter and payment of the costs of administering and enforcing of this chapter.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-804RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1979, P.L.71, SEC.19.

IC 6-6-1.1-805Motor fuel tax fund; transfer of residue balance to highway account Sec. 805. Any balance remaining in the motor fuel tax fund after making the payments required by section 803 of this chapter shall be transferred to the motor vehicle highway account for distribution as provided by law.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.11.

IC 6-6-1.1-806RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1981, P.L.93, SEC.11.

IC 6-6-1.1-901Refund to purchaser for gasoline lost or destroyed; limitations; requisites; distributor excepted Sec. 901. A person, except a distributor, who has purchased gasoline in Indiana and has paid the tax imposed on it by this chapter is entitled to a refund (without interest) of the amount of tax paid on gasoline in excess of one hundred (100) gallons which is lost or destroyed, except by evaporation, shrinkage, or unknown cause, while he owns it. To obtain the refund, the person:

(1) must, within five (5) days after the loss or destruction is discovered, notify the administrator in writing of the amount of gasoline lost or destroyed; and

(2) must, within sixty (60) days after notice is given, file with the administrator an affidavit that is sworn to by the person having custody of the gasoline at the time of loss or destruction and that sets forth in full the circumstances and amount of the loss or destruction and any other information the administrator may require.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.40; Acts 1981, P.L.93, SEC.3.

IC 6-6-1.1-902Refund to local transit system; interest Sec. 902. (a) A local transit system is entitled to a refund of tax paid on gasoline used:

(1) for transporting persons for compensation by means of a motor vehicle or trackless trolley; or

(2) in a maintenance or an administrative vehicle that is used by the local transit system to support the transit service.

(b) If a refund is not issued within ninety (90) days of filing of the verified statement and all supplemental information required by IC 6-6-1.1-904.1, the department shall pay interest at the rate established by IC 6-8.1-9 computed from the date of filing of the refund application until a date determined by the administrator that does not precede by more than thirty (30) days the date on which the refund is made.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.41; Acts 1981, P.L.93, SEC.4; P.L.1-1991, SEC.57; P.L.85-1995, SEC.11; P.L.234-2019, SEC.19.

IC 6-6-1.1-902.5Refund to rural transit system; interest Sec. 902.5. (a) A rural transit system is entitled to a refund of tax paid on gasoline used for transporting persons for compensation by means of a motor vehicle or trackless trolley. However, the transporting must be done:

(1) within a service area that is not larger than the rural transit system service area and the counties contiguous to that rural transit system service area; and

(2) under a written contract between the rural transit system and the county providers within the service area that meets the requirements prescribed by the department.

(b) If a refund is not issued within ninety (90) days of filing of the verified statement and all supplemental information required by section 904.1 of this chapter, the department shall pay interest at the rate established by IC 6-8.1-10-1(c) computed from the date of filing of the refund application until a date determined by the administrator that does not precede by more than thirty (30) days the date on which the refund is made.

As added by P.L.45-1994, SEC.1. Amended by P.L.2-1995, SEC.34; P.L.234-2019, SEC.20.

IC 6-6-1.1-903Refund for tax paid on gasoline purchased or used for designated purposes; interest Sec. 903. (a) A person is entitled to a refund of gasoline tax paid on gasoline purchased or used for the following purposes:

(1) Operating stationary gas engines.

(2) Operating equipment mounted on motor vehicles, whether or not operated by the engine propelling the motor vehicle.

(3) Operating a tractor used for agricultural purposes.

(3.1) Operating implements of agriculture (as defined in IC 9-13-2-77).

(4) Operating motorboats or aircraft.

(5) Cleaning or dyeing.

(6) Other commercial use, except propelling motor vehicles operated in whole or in part on an Indiana public highway.

(7) Operating a taxicab (as defined in section 103 of this chapter).

(8) Used to create racing fuel and the fuel:

(A) consists of a fuel blend nominally consisting of more than eighty-nine percent (89%) ethanol and less than eleven percent (11%) gasoline;

(B) will not be blended to become a fuel that can be used for propelling a motor vehicle operated in whole or in part on an Indiana public highway; and

(C) will be resold by the person purchasing the fuel to a purchaser that is located in another state, territory, or foreign country.

(b) If a refund is not issued within ninety (90) days of filing of the verified statement and all supplemental information required by IC 6-6-1.1-904.1, the department shall pay interest at the rate established by IC 6-8.1-9 computed from the date of filing of the verified statement and all supplemental information required by the department until a date determined by the administrator that does not precede by more than thirty (30) days the date on which the refund is made.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.12; Acts 1980, P.L.51, SEC.42; Acts 1981, P.L.93, SEC.5; P.L.97-1987, SEC.10; P.L.2-1991, SEC.40; P.L.1-1991, SEC.58; P.L.210-2005, SEC.2; P.L.204-2016, SEC.27.

IC 6-6-1.1-904RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.43; P.L.82-1983, SEC.10; P.L.48-1990, SEC.4. Repealed by P.L.1-1991, SEC.59.

IC 6-6-1.1-904.1Refund; required procedures Sec. 904.1. (a) To claim a refund under section 902, 902.5, or 903, of this chapter, a person must present to the administrator a statement that contains a written verification that it is made under penalties of perjury and that sets forth the total amount of gasoline purchased and used for purposes other than propelling a motor vehicle on an Indiana public highway. The statement must be filed by April 15 of the year succeeding three (3) years after the date the gasoline was purchased, and it must be accompanied by the original invoice or a certified copy of the original invoice. Such a copy must be certified by the supplier on forms prescribed by the administrator. In addition, the original invoice or certified copy must show either:

(1) that payment for the purchase has been made and the amount of tax paid on the purchase; or

(2) that the gasoline was charged to a credit card approved by the administrator under procedures designed to assure the state will not be liable for the credit card charges if the claimant does not pay for the purchases.

(b) The administrator may make any investigations the administrator considers necessary before refunding the gasoline taxes to the consumer.

As added by P.L.1-1991, SEC.60. Amended by P.L.45-1994, SEC.2.

IC 6-6-1.1-905RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.13. Repealed by P.L.96-1989, SEC.25.

IC 6-6-1.1-906Refunds or credits; rules and regulations Sec. 906. The department shall adopt necessary rules and regulations consistent with this chapter for the filing of refund or credit claims and for the granting of refunds or credits.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.1-2010, SEC.35.

IC 6-6-1.1-907Refund or deduction; payment of tax in error; warrant; payment; requisites Sec. 907. (a) If the administrator determines that a licensed distributor has paid gasoline tax in error or is entitled to a refund or deduction, the administrator may issue a warrant in favor of that person. The treasurer of state shall accept the warrant and make payment out of the revolving fund established in section 909 of this chapter.

(b) No refund shall be made under this section unless the written claim describes the reason the refund should be allowed. The claim must be sworn to by the claimant and filed with the administrator, on forms prescribed by the administrator, within three (3) years after the end of the calendar year containing the taxable period in which the tax was erroneously collected.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.44; P.L.97-1987, SEC.11.

IC 6-6-1.1-908Deduction in lieu of warrant for payment of refund Sec. 908. In lieu of issuing the warrant prescribed by section 907(a) of this chapter, the administrator may elect to permit the deduction authorized by section 704 of this chapter.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-909Gasoline tax refund account Sec. 909. The administrator shall establish a revolving fund known as the gasoline tax refund account. The amount in the fund may not exceed seventy-five thousand dollars ($75,000), and the administrator shall maintain the fund in a public depository designated by the state board of finance. The administrator shall draw checks against the fund for each approved refund. As the checks are returned paid by the depository, the administrator shall issue a warrant on the motor fuel tax fund in the amount of the checks returned paid, for the purpose of maintaining the depository balance at the authorized amount.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-910Class action for refund of tax; prerequisites Sec. 910. A class action for the refund of a tax subject to this chapter may not be maintained in any court, including the Indiana tax court, on behalf of any person who has not complied with the requirements of sections 901 through 908 of this chapter before the certification of a class. A refund of taxes to a member of a class in a class action is subject to the time limits set forth in sections 901 through 908 of this chapter based on the time the class member filed the required claim for refund with the department.

As added by P.L.60-1990, SEC.1.

IC 6-6-1.1-1001RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.45. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1002RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1003RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1004RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1005RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1006RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.46. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1007RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.47. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1008Sealing pumps; impoundment of vehicles or tanks; report of meter readings Sec. 1008. (a) If any of the conditions specified in subsection (b) occur, the administrator may seal a gasoline pump, gasohol pump, aviation gasoline pump, or marina gasoline pump; impound any vehicle or tank that does not have a sealable pump; and post a sign that states that no transactions involving gasoline or gasohol, or both, can be made at the person's location.

(b) The administrator may take the actions specified in subsection (a) if:

(1) a licensed distributor becomes delinquent in the payment of any amount due under this chapter;

(2) there is evidence that the revenue of a licensed distributor is in jeopardy;

(3) a distributor is operating without the license required by this chapter;

(4) a licensed distributor is operating without the bond, letter of credit, or cash deposit required by this chapter; or

(5) a person has received gasoline in this state and the gasoline tax has not been remitted to the state as required by section 504 of this chapter.

(c) The pumps may be sealed and the sign posted until:

(1) all reports are filed and the fees, taxes, fines, and penalties imposed by this chapter are paid;

(2) the interest and penalties imposed by IC 6-8.1-10-1 and IC 6-8.1-10-2.1 are paid in full;

(3) the license required by this chapter is obtained; and

(4) the bond, letter of credit, or cash deposit required by this chapter is provided.

(d) The administrator may require any person operating under this chapter to report meter readings that show the amount of fuel dispensed or used from a metered pump.

(e) The administrator may authorize the state police department to impound any vehicle or tank under subsection (a) on behalf of the department of state revenue.

As added by P.L.97-1987, SEC.12. Amended by P.L.1-1991, SEC.61.

IC 6-6-1.1-1009Cumulative remedies Sec. 1009. The remedies provided to the department by this chapter are cumulative, and the election to use a remedy may not be construed to exclude the use of any other remedy.

As added by P.L.97-1987, SEC.13.

IC 6-6-1.1-1101RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1102RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1103Requests of another state for information Sec. 1103. Upon request from an official who enforces the gasoline laws of another state, the administrator shall furnish the official with any information he has relating to the receipt, sale, use, transportation, or shipment of gasoline by any person.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.48.

IC 6-6-1.1-1104RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1105RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1106RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1107RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1108RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1109RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1110Gallonage totalizers; sealing; installation; evidence Sec. 1110. (a) The administrator may seal gallonage totalizers of metered pumps operated by or on behalf of a dealer or licensed distributor.

(b) If the administrator determines that a metered pump operated by or on behalf of a dealer or licensed distributor is without an effectively sealable gallonage totalizer, the dealer or licensed distributor shall at the administrator's request:

(1) adapt the pump to the administrator's specifications so that it may be effectively sealed; or

(2) replace, in whole or in part, the pump with an effectively sealable gallonage totalizer, as determined by the administrator.

(c) A dealer's or licensed distributor's failure to comply with subsection (a) or (b) is considered evidence that the revenue of the dealer or licensed distributor is in jeopardy.

As added by P.L.97-1987, SEC.14.

IC 6-6-1.1-1201RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.14. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1202Identification markings on transportation equipment Sec. 1202. A vehicle which transports gasoline on a public Indiana highway must have the name and address of the person, firm, limited liability company, or corporation transporting the gasoline on both sides of the driver's compartment. The information must appear in letters at least six (6) inches high with a stroke at least three-fourths (3/4) inch wide and in a color contrasting to the background on which the letters are placed. However, a distributor licensed in Indiana is not required to display his name and address on transportation equipment if the equipment is identified with the trade or product name or insignia generally used in identifying such equipment, and the name or insignia is well-known throughout the area in which the equipment is operated.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.49; P.L.8-1993, SEC.98.

IC 6-6-1.1-1203Separate statement of tax rate on sales or delivery slips, bills, or statements Sec. 1203. Distributors and all persons selling gasoline shall state the rate of the tax separately from the price of the gasoline on all sales or delivery slips, bills, and statements which indicate the price of gasoline.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.15; Acts 1980, P.L.51, SEC.50.

IC 6-6-1.1-1204Political subdivisions; excise tax prohibited Sec. 1204. (a) No city, town, county, township, or other subdivision or municipal corporation of the state may levy or collect:

(1) an excise tax on or measured by the sale, receipt, distribution, or use of gasoline; or

(2) an excise, privilege, or occupational tax on the business of manufacturing, selling, or distributing gasoline.

(b) The provisions of subsection (a) may not be construed as to relieve a distributor or dealer from payment of a state tax or state store license.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.51; P.L.192-2002(ss), SEC.134.

IC 6-6-1.1-1205Criminal proceedings; precedence Sec. 1205. All criminal proceedings arising under this chapter have precedence in court over all other cases, excepting cases in which the state or public is a moving party.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.291-1985, SEC.8.

IC 6-6-1.1-1206Suit against state to resolve tax dispute; jurisdiction; limitation Sec. 1206. A person who claims that any gasoline tax, penalty, or interest was erroneously or illegally collected, or that a refund was wrongfully denied may initiate a suit against the state. The tax court has original jurisdiction of the suit, which must be commenced within three (3) years from:

(1) the date of payment of the tax, penalty, or interest; or

(2) the date of final rejection by the administrator of a refund claim.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.16; Acts 1980, P.L.51, SEC.52; P.L.291-1985, SEC.9.

IC 6-6-1.1-1301RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.17. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1302RepealedAs added by Acts 1979, P.L.79, SEC.1. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1303RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.53. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1304RepealedAs added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.321, SEC.4. Repealed by Acts 1980, P.L.61, SEC.15.

IC 6-6-1.1-1305Submission of false information on invoice to support refund or credit; forfeiture Sec. 1305. A person who changes the date, name, gallonage, or other information shown on an invoice used to support a refund or a credit claim under section 904.1 of this chapter, or who submits false information on an invoice, forfeits the right to a refund or credit on that invoice. However, the administrator may approve a claim supported by an altered or changed invoice if he finds that the change or alteration was not made to improperly obtain a refund.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1979, P.L.71, SEC.18; P.L.1-1991, SEC.62.

IC 6-6-1.1-1306Fraudulent procurement of refund or credit; offense Sec. 1306. A person who makes a false statement in connection with a refund or credit application under section 904.1 of this chapter, or who collects or causes to be repaid to a person money to which that person is not entitled commits a Class B infraction.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.1-1991, SEC.63.

IC 6-6-1.1-1307Submission of multiple invoices for refund; offense Sec. 1307. A person who submits an original invoice and a certified copy of an invoice, or two (2) or more certified copies of an invoice, to the administrator under section 904.1 of this chapter for the same transaction commits a Class B misdemeanor.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.1-1991, SEC.64.

IC 6-6-1.1-1308Failure to pay tax collected to administrator; offense Sec. 1308. A person who receives or collects money as tax imposed under this chapter on gasoline on which the person has not paid the tax, and knowingly fails to pay the money to the administrator as required under this chapter, commits a Level 6 felony.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.54; P.L.158-2013, SEC.92.

IC 6-6-1.1-1309Distributor; violations; offense Sec. 1309. Except as otherwise provided by this chapter, a distributor who:

(1) recklessly fails to file the returns or statements and to pay the taxes as required by this chapter; or

(2) knowingly fails to keep correct records, books, and accounts required by this chapter;

commits a Class B misdemeanor.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.61, SEC.9.

IC 6-6-1.1-1310Use of untaxed gasoline; offense Sec. 1310. A person who knowingly uses gasoline on which the tax has not been paid commits a Class B misdemeanor.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.55.

IC 6-6-1.1-1311Use or sale in Indiana of tax-exempt gasoline purchased for export; offense; tax liability; export sales excepted Sec. 1311. (a) Except as otherwise permitted by this chapter, a person who purchases tax-exempt gasoline for export and uses or sells any of the gasoline in Indiana with the intent to avoid payment of the tax imposed by this chapter commits a Class A misdemeanor. In addition, for purposes of this chapter, such a person is considered the "distributor" with respect to all gasoline so purchased and to have "received" the gasoline as defined in this chapter, and he is liable for the full amount of the tax imposed by this chapter on the gasoline and a penalty equal to fifty percent (50%) of that tax.

(b) Subsection (a) does not apply if the gasoline is sold in Indiana for export, provided the person furnishes proof at the time and in the manner prescribed by the administrator.

As added by Acts 1979, P.L.79, SEC.1. Amended by Acts 1980, P.L.51, SEC.56.

IC 6-6-1.1-1312Reckless violations; offense Sec. 1312. A person who recklessly violates a provision of this chapter for which no specific penalty is provided commits a Class B misdemeanor.

As added by Acts 1979, P.L.79, SEC.1.

IC 6-6-1.1-1313Evasion of tax; offense Sec. 1313. A person who violates sections 1309 through 1311 of this chapter with intent to evade the tax imposed by this chapter or to defraud the state commits a Level 6 felony.

As added by Acts 1979, P.L.79, SEC.1. Amended by P.L.158-2013, SEC.93.

IC 6-6-1.1-1314Failure to keep books and records; penalty Sec. 1314. A person subject to the tax imposed under section 201 of this chapter who fails to keep books and records as required by IC 6-8.1-5 is subject to the penalty under IC 6-8.1-10-4.

As added by P.L.97-1987, SEC.15.

IC 6-6-1.1-1315Failure to file reports; incomplete reports; civil penalty Sec. 1315. A person who:

(1) is subject to the tax imposed by section 201 of this chapter; and

(2) fails to file a report or files an incomplete report required by section 501 or 606 of this chapter;

is subject to a civil penalty of one hundred dollars ($100) for each violation, as reasonably determined by the department. As used in this section, an incomplete report includes a report that does not include all schedules required by the administrator.

As added by P.L.97-1987, SEC.16.

IC 6-6-1.1-1316Breaking fuel pump seals; failure to report meter readings; removing post signs; failure to notify; offenses Sec. 1316. (a) A person:

(1) who knowingly breaks a seal on a sealed fuel pump without authorization; or

(2) who knowingly fails or refuses to report meter readings under section 1008 or section 1110 of this chapter;

commits a Level 6 felony.

(b) A person who, without authorization:

(1) removes;

(2) alters;

(3) defaces; or

(4) covers;

a sign posted by the department that states that no transactions involving gasoline, gasohol, aviation gasoline, or marina gasoline may be made at a location commits a Class B misdemeanor. However, the offense is a Level 6 felony if it is committed with the intent to evade the tax imposed by this chapter or to defraud the state.

(c) A dealer or licensed distributor shall notify the department of:

(1) a broken fuel pump seal; or

(2) a removed, altered, defaced, or covered sign that has been posted by the department.

(d) A dealer or licensed distributor that knowingly fails to notify the department, as required by subsection (c), within two (2) days after:

(1) a fuel pump seal is broken; or

(2) a sign posted by the department has been removed, altered, defaced, or covered;

commits a Level 6 felony.

As added by P.L.97-1987, SEC.17. Amended by P.L.158-2013, SEC.94.

IC 6-6-1.5Chapter 1.5. RepealedRepealed by Acts 1979, P.L.79, SEC.2.

IC 6-6-1.6Chapter 1.6. Fuel Tax Index Factors

6-6-1.6-1Definitions 6-6-1.6-2Determination of rates; July 1, 2017 6-6-1.6-3Calculation of annual index factors

IC 6-6-1.6-1Definitions Sec. 1. The following definitions apply throughout this chapter:

(1) "CPI-U" means the Consumer Price Index for all Urban Consumers, U.S. city average, all items, using the index base period of 1982-84 equal to one hundred (100), as published by the Bureau of Labor Statistics of the United States Department of Labor.

(2) "Department" refers to the department of state revenue.

(3) "IPI" means Indiana personal income.

As added by P.L.218-2017, SEC.37.

IC 6-6-1.6-2Determination of rates; July 1, 2017 Sec. 2. (a) The department shall determine a new tax rate for the gasoline tax, the special fuel tax, and the motor carrier surcharge tax (before its repeal) to take effect July 1, 2017. The department shall determine the new rate before June 1, 2017. The new rate shall be determined by using annual factors and applying a method that is based on an annual factor being in place each year from the beginning of the period specified for each factor and that uses the resulting rounded rate for purposes of determining the following year rate change.

(b) The gasoline tax index factor to be used each year equals the following:

STEP ONE: Determine the year over year change in the CPI-U beginning in 2003 through 2016.

STEP TWO: Determine the year over year change in the IPI beginning in 2003 through 2016.

STEP THREE: Add for each year:

(A) the STEP ONE result; and

(B) the STEP TWO result.

STEP FOUR: Divide the STEP THREE result by two (2).

(c) The special fuel index factor and motor carrier surcharge tax index factor (before the repeal of the motor carrier surcharge tax) to be used each year equals the following:

STEP ONE: Determine the year over year change in the CPI-U beginning in 1989 through 2016.

STEP TWO: Determine the year over year change in the IPI beginning in 1989 through 2016.

STEP THREE: Add for each year:

(A) the STEP ONE result; and

(B) the STEP TWO result.

STEP FOUR: Divide the STEP THREE result by two (2).

As added by P.L.218-2017, SEC.37. Amended by P.L.185-2018, SEC.2.

IC 6-6-1.6-3Calculation of annual index factors Sec. 3. (a) The department shall calculate an annual index factor to be used for the rate to take effect each July 1 beginning in 2018 through July 1, 2027. The department shall determine the index factor before June 1 of each year using the method described in subsection (b).

(b) The annual gasoline tax index factor and special fuel index factor equals the following:

STEP ONE: Divide the annual CPI-U for the year preceding the determination year by the annual CPI-U for the year immediately preceding that year.

STEP TWO: Divide the annual IPI for the year preceding the determination year by the annual IPI for the year immediately preceding that year.

STEP THREE: Add:

(A) the STEP ONE result; and

(B) the STEP TWO result.

STEP FOUR: Divide the STEP THREE result by two (2).

(c) If the CPI-U or IPI for a preceding year is revised, corrected, or updated after May 31 of that year, the department shall use the CPI-U or IPI as published for the preceding year prior to revision.

As added by P.L.218-2017, SEC.37. Amended by P.L.185-2018, SEC.3; P.L.159-2021, SEC.31; P.L.201-2023, SEC.107.

IC 6-6-2Chapter 2. RepealedRepealed by Acts 1980, P.L.51, SEC.66.

IC 6-6-2.1Chapter 2.1. RepealedRepealed by P.L.277-2013, SEC.7.

IC 6-6-2.5Chapter 2.5. Special Fuel Tax

6-6-2.5-1"Alternative fuel" 6-6-2.5-1.5"Biodiesel" 6-6-2.5-2"Blender" 6-6-2.5-3"Blending" 6-6-2.5-4"Bulk end user" 6-6-2.5-5"Bulk plant" 6-6-2.5-6"Commissioner" 6-6-2.5-6.5"Compressed natural gas product fuel station" 6-6-2.5-7"Department" 6-6-2.5-8"Destination state" 6-6-2.5-8.5"Dyed fuel user" 6-6-2.5-9"Export" 6-6-2.5-10"Exporter" 6-6-2.5-11Repealed 6-6-2.5-12"Heating oil" 6-6-2.5-13"Import" 6-6-2.5-13.1"Import verification number" 6-6-2.5-14"Invoiced gallons" 6-6-2.5-15"Liquid" 6-6-2.5-16"Motor vehicle" 6-6-2.5-16.1"Permissive supplier" 6-6-2.5-16.5"Natural gas product" 6-6-2.5-17"Person" 6-6-2.5-18"Public highway" 6-6-2.5-19"Rack" 6-6-2.5-20"Received" 6-6-2.5-21"Retailer" 6-6-2.5-22"Special fuel" 6-6-2.5-22.5"Special fuel gallon" 6-6-2.5-23"Supplier" 6-6-2.5-24"Terminal" 6-6-2.5-25"Terminal operator" 6-6-2.5-25.1"Transfer in bulk into or within a terminal" 6-6-2.5-25.9"Transporter" 6-6-2.5-26"Transmix" 6-6-2.5-26.1"Transport truck" 6-6-2.5-26.2"Two party exchange" 6-6-2.5-26.5"Truck stop" 6-6-2.5-27"Wholesaler" 6-6-2.5-28License tax; presumptions; computation; liability for collection and remittance; sulfur content; penalty 6-6-2.5-29Inventory tax; exclusions; amount 6-6-2.5-30Exemptions from special fuel tax; provision of export information; refunds 6-6-2.5-30.5Exemption from special fuel tax; restricted personal, noncommercial use 6-6-2.5-31Exempted special fuels; dye requirements and specifications; markers 6-6-2.5-32Refunds; circumstances; claims; investigations 6-6-2.5-32.5Refund of special fuel tax; qualification; claim for refund 6-6-2.5-32.7Refund of special fuel tax; compressed natural gas product fuel station; computation; collection allowance 6-6-2.5-33Payment of interest on refund claim 6-6-2.5-34Supplier deduction for gallons purchased; prohibition; customer refunds; application 6-6-2.5-35Collection and remittance of special fuel tax 6-6-2.5-36Remittance of tax; procedures; deadline 6-6-2.5-37Costs of collection, reporting, and remittance; retention of portion of remittance; amount; failure to report or remit on time 6-6-2.5-38Duties and responsibilities of supplier in collection of tax; liability 6-6-2.5-39Consumption of tax-exempt dyed or marked fuel for nonexempt purpose; remittance of tax 6-6-2.5-40Transportation of special fuel; requirements and procedures; violations 6-6-2.5-41Licenses 6-6-2.5-42Application for license; form and content; investigation 6-6-2.5-43Repealed 6-6-2.5-44Surety bond or cash deposit; filing by applicants 6-6-2.5-45Disclosure of financial records; increase in bond or cash deposit 6-6-2.5-46Filing of new bond; conditions; cancellation of license; reduction of cash deposit by judgment; additional deposit 6-6-2.5-47Deposit insufficient to ensure payment; written demand to file new bond; requirements; cancellation of license 6-6-2.5-48Release of surety from liability; written request; notice; cancellation 6-6-2.5-49Denial of license; hearing; notice 6-6-2.5-50Issuance of license 6-6-2.5-51Validity of license 6-6-2.5-52Transfer of license; prohibition 6-6-2.5-53Display of license at place of business 6-6-2.5-54Discontinuance of business; surrender of license 6-6-2.5-55Notice of discontinuance, sale, or transfer of business; content; liability 6-6-2.5-56Repealed 6-6-2.5-56.5Suppliers, permissive suppliers, and licensed importers; reporting requirements; violations 6-6-2.5-57Terminal operators; reporting requirements; inventory records 6-6-2.5-58Final report upon discontinuance, sale, or transfer of business or revocation of license; payment of taxes and penalties 6-6-2.5-59Exporters; reporting requirements 6-6-2.5-60Transporters; reporting requirements; failure to report; penalty; waiver of report 6-6-2.5-61Composite and modified reports 6-6-2.5-62Special fuel restrictions; violations; exemptions 6-6-2.5-63Failure of suppliers, permissive suppliers, importers, and blenders to collect or timely remit tax; penalties 6-6-2.5-64Civil penalties; exemption 6-6-2.5-65Shipping documents; violations; impoundment, seizure, and sale of vehicle; evidence; release 6-6-2.5-66Listed tax 6-6-2.5-67Use of tax revenues 6-6-2.5-68Deposit of revenue 6-6-2.5-69Class actions for refund of tax; prerequisites 6-6-2.5-70Inspections 6-6-2.5-71Sealing special fuel or kerosene pump; compliance; penalty 6-6-2.5-72Reports; electronic filing

IC 6-6-2.5-1"Alternative fuel" Sec. 1. As used in this chapter, "alternative fuel" means a liquefied petroleum gas, not including a biodiesel fuel or biodiesel blend, used in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance. The term includes all forms of fuel commonly or commercially known or sold as butane, propane, hydrogen, hythane, electricity, or any other fuel used to propel a motor vehicle on a highway that is not subject to the tax imposed under section 28 of this chapter or the tax imposed under IC 6-6-1.1.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.122-2006, SEC.19; P.L.277-2013, SEC.8; P.L.212-2014, SEC.4; P.L.211-2023, SEC.2.

IC 6-6-2.5-1.5"Biodiesel" Sec. 1.5. (a) As used in this chapter, "biodiesel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats that meets American Society for Testing and Materials specifications D6751-03a Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels, as well as other fuels of the same derivation capable of use in the generation of power for the propulsion of a motor vehicle, airplane, or motorboat.

(b) As used in this chapter, "blended biodiesel" means a blend of biodiesel with petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least two percent (2%). A biodiesel blend may be described as "Bxx" where "xx" represents the volume percentage of biodiesel fuel. "B2" is the type of biodiesel blend with the least volume percentage of biodiesel fuel, and "B99" is the type of biodiesel fuel with the most volume percentage of biodiesel fuel. The term does not include biodiesel (B100).

As added by P.L.122-2006, SEC.20.

IC 6-6-2.5-2"Blender" Sec. 2. As used in this chapter, "blender" means a person who engages in the process of blending.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-3"Blending" Sec. 3. As used in this chapter, "blending" means the mixing of one (1) or more petroleum products, with or without another product, excluding biodiesel or blended biodiesel, if the product obtained by the blending is capable of use in the generation of power for the propulsion of a motor vehicle, an airplane, or a motorboat. The term does not include that blending that occurs in the process of refining by the original refiner of crude petroleum or the blending of a de minimis amount of products such as carburetor detergent, oxidation inhibitor, lubricating oil, and greases.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.13; P.L.122-2006, SEC.21.

IC 6-6-2.5-4"Bulk end user" Sec. 4. As used in this chapter, "bulk end user" means a person who receives into the person's own storage facilities at least two hundred forty thousand (240,000) gallons annually of special fuel for the person's own consumption.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-5"Bulk plant" Sec. 5. As used in this chapter, "bulk plant" means a gasoline or special fuel storage facility, other than a terminal, that is primarily used for redistribution of gasoline and special fuel by a motor vehicle with a capacity of not more than five thousand four hundred (5,400) gallons.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.14.

IC 6-6-2.5-6"Commissioner" Sec. 6. As used in this chapter, "commissioner" means the administrative head of the department or that person's designee.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-6.5"Compressed natural gas product fuel station" Sec. 6.5. As used in this chapter, "compressed natural gas product fuel station" means a fuel station that purchases special fuel, converts it into compressed natural gas product, and sells the compressed natural gas product from a metered pump at the same location.

As added by P.L.236-2023, SEC.83.

IC 6-6-2.5-7"Department" Sec. 7. As used in this chapter, "department" means the department of state revenue.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-8"Destination state" Sec. 8. As used in this chapter, "destination state" means the state for which a motor vehicle or barge is destined for off-loading into storage facilities for consumption or resale.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-8.5"Dyed fuel user" Sec. 8.5. As used in this chapter, "dyed fuel user" means a person that qualifies for the federal diesel fuel tax exemption under Section 4082 of the Internal Revenue Code to operate motor vehicles on the highways with dyed fuel in the fuel supply tank.

As added by P.L.61-1996, SEC.1.

IC 6-6-2.5-9"Export" Sec. 9. As used in this chapter, "export" means:

(1) with respect to a seller, when special fuel is delivered out-of-state by or for the seller; and

(2) with respect to a purchaser, when special fuel is delivered out-of-state by or for the purchaser.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-10"Exporter" Sec. 10. As used in this chapter, "exporter" means any person, other than a supplier, who purchases special fuel in Indiana for the purpose of transporting or delivering the fuel to another state or country.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-11RepealedAs added by P.L.277-1993(ss), SEC.44. Repealed by P.L.210-2005, SEC.76.

IC 6-6-2.5-12"Heating oil" Sec. 12. As used in this chapter, "heating oil" means a special fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-13"Import" Sec. 13. As used in this chapter, "import" means:

(1) with respect to a seller, when special fuel is delivered into Indiana from out-of-state by or for the seller; and

(2) with respect to a purchaser, when special fuel is delivered into Indiana from out-of-state by or for the purchaser.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-13.1"Import verification number" Sec. 13.1. As used in this chapter, "import verification number" means the number assigned by the department, or the department's designee or appointee, with respect to a single transport truck delivery into Indiana from another state upon request for an assigned number by a licensed importer or transporter carrying undyed or unmarked special fuel, or both, into Indiana for the account of a licensed importer.

As added by P.L.18-1994, SEC.12. Amended by P.L.85-1995, SEC.15.

IC 6-6-2.5-14"Invoiced gallons" Sec. 14. As used in this chapter, "invoiced gallons" means the gallons accurately billed on an invoice on payment to a supplier.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.13.

IC 6-6-2.5-15"Liquid" Sec. 15. As used in this chapter, "liquid" means any substance that is liquid in excess of sixty (60) degrees fahrenheit and a pressure of fourteen and seven-tenths (14.7) pounds per square inch absolute.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-16"Motor vehicle" Sec. 16. As used in this chapter, "motor vehicle" means a vehicle designed principally for road use and that is propelled by an internal combustion engine or motor.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.14.

IC 6-6-2.5-16.1"Permissive supplier" Sec. 16.1. As used in this chapter, "permissive supplier" means any person who does not meet the geographic jurisdictional connections to Indiana required of a supplier (as defined in section 23 of this chapter), but who holds an inventory position in a federally qualified terminal located outside of Indiana and who is registered under Section 4101 of the Internal Revenue Code.

As added by P.L.18-1994, SEC.15.

IC 6-6-2.5-16.5"Natural gas product" Sec. 16.5. As used in this chapter, "natural gas product" means:

(1) a liquid or compressed natural gas product; or

(2) a combination of liquefied petroleum gas and a compressed natural gas product;

used in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance.

As added by P.L.212-2014, SEC.5.

IC 6-6-2.5-17"Person" Sec. 17. As used in this chapter, "person" means a natural person, a partnership, a firm, an association, a corporation, a representative appointed by a court, the state, a political subdivision (as defined in IC 36-1-2-13), or any other entity, group, or syndicate.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-18"Public highway" Sec. 18. As used in this chapter, "public highway" means the entire width between boundary lines of each publicly maintained way in Indiana, including streets and alleys in cities and towns, when any part of the way is open to the public use for motor vehicle travel.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.16.

IC 6-6-2.5-19"Rack" Sec. 19. As used in this chapter, "rack" means a dock, a platform, or an open bay with a series of metered pipes and hoses for delivering special fuel from a refinery or terminal into a motor vehicle, rail car, or marine vessel.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-20"Received" Sec. 20. As used in this chapter, "received" means the removal from any refinery or terminal in Indiana, or the entry into Indiana of any special fuel for consumption, use, sale, or warehousing, except for transfers in bulk into or within a terminal in Indiana between registered suppliers. The tax imposed under section 28 of this chapter with respect to special fuel removed from terminals within Indiana and with respect to special fuel which is the subject of a tax precollection agreement pursuant to section 35(j) of this chapter, shall be imposed at the same time and in the same manner as the tax imposed by Sections 4081 to 4083 of the Internal Revenue Code. The definitions of the terms "removal", "entry", and "transfers in bulk" shall have the same meanings described in the Internal Revenue Code or Code of Federal Regulations.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.17.

IC 6-6-2.5-21"Retailer" Sec. 21. As used in this chapter, "retailer" means a person that engages in the business of selling or distributing special fuel to the end user within Indiana.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-22"Special fuel" Sec. 22. As used in this chapter, "special fuel" means all combustible gases and liquids that are:

(1) suitable for the generation of power in an internal combustion engine or motor; or

(2) used exclusively for heating, industrial, or farm purposes other than for the operation of a motor vehicle.

Special fuel includes biodiesel and blended biodiesel (as defined in IC 6-6-2.5-1.5) and natural gas products. However, the term does not include an alternative fuel, gasoline (as defined in IC 6-6-1.1-103), ethanol produced, stored, or sold for the manufacture of or compounding or blending with gasoline, kerosene, and jet fuel (if the purchaser of the jet fuel has provided to the seller proof of the purchaser's federal jet fuel registration at or before the time of sale).

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.18; P.L.122-2006, SEC.22; P.L.277-2013, SEC.9; P.L.212-2014, SEC.6.

IC 6-6-2.5-22.5"Special fuel gallon" Sec. 22.5. As used in this chapter, "special fuel gallon" means:

(1) except as provided in subdivisions (2) and (3), a gallon of special fuel;

(2) a diesel gallon equivalent (as defined in IC 6-6-4.1-1(f)), in the case of a special fuel that is liquid natural gas; or

(3) a gasoline gallon equivalent (as defined in IC 6-6-4.1-1(g)), in the case of a special fuel that is compressed natural gas.

As added by P.L.218-2017, SEC.38.

IC 6-6-2.5-23"Supplier" Sec. 23. As used in this chapter, "supplier" means a person that imports or acquires immediately upon import into Indiana special fuel by pipeline or marine vessel from within a state, territory, or possession of the United States into a terminal or that imports special fuel into Indiana from a foreign country, or that produces, manufactures, or refines special fuel within Indiana, or that owns special fuel in the pipeline and terminal distribution system in Indiana, and is subject to the general taxing or police jurisdiction of Indiana, and in any case is also registered under Section 4101 of the Internal Revenue Code for transactions in taxable motor fuels in the bulk distribution system. A terminal operator shall not be considered a supplier merely because the terminal operator handles special fuel consigned to it within a terminal.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.19.

IC 6-6-2.5-24"Terminal" Sec. 24. As used in this chapter, "terminal" means a fuel storage and distribution facility that is supplied by pipeline or marine vessel, and from which special fuel may be removed at a rack and that has been registered as a qualified terminal by the Internal Revenue Service for receipt of taxable motor fuels free of federal motor fuel taxes.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.20.

IC 6-6-2.5-25"Terminal operator" Sec. 25. As used in this chapter, "terminal operator" means the person who by ownership or contractual agreement is charged with the responsibility and physical control over the operation of the terminal. However, there shall be only one (1) person charged with responsibility as operator at each terminal for purposes of this chapter.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-25.1"Transfer in bulk into or within a terminal" Sec. 25.1. As used in this chapter, "transfer in bulk into or within a terminal" includes the following:

(1) A marine barge movement of fuel from a refinery or terminal to a terminal.

(2) Pipeline movements of fuel from a refinery or terminal to terminal.

(3) Book transfers of product within a terminal between suppliers before completion of removal across the rack.

(4) Two (2) party exchanges between licensed suppliers and permissive suppliers.

As added by P.L.18-1994, SEC.21.

IC 6-6-2.5-25.9"Transporter" Sec. 25.9. As used in this chapter, "transporter" means the person and its agent, including the driver, that transports special fuel.

As added by P.L.85-1995, SEC.16.

IC 6-6-2.5-26"Transmix" Sec. 26. As used in this chapter, "transmix" means the buffer between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-26.1"Transport truck" Sec. 26.1. As used in this chapter, "transport truck" means a vehicle designed to transport motor fuel in bulk from a terminal in lots greater than five thousand four hundred (5,400) gallons.

As added by P.L.18-1994, SEC.22. Amended by P.L.85-1995, SEC.17.

IC 6-6-2.5-26.2"Two party exchange" Sec. 26.2. As used in this chapter, "two (2) party exchange" means a transaction in which a product is transferred from one (1) licensed supplier or permissive supplier to another when:

(1) the transaction includes a transfer from the person who holds the original inventory position for special fuel in the terminal as indicated in the records of the terminal operator; and

(2) the exchange transaction is completed before removal from the terminal by the receiving exchange partner, provided that the terminal operator in the terminal operator's books and records treats the receiving exchange party as the supplier that receives the product for purposes of reporting the events to the state of Indiana.

As added by P.L.18-1994, SEC.23.

IC 6-6-2.5-26.5"Truck stop" Sec. 26.5. As used in this chapter, "truck stop" means a place of business designed for providing service to trucks and truck drivers, including selling fuel to truck drivers and providing support facilities for truck drivers.

As added by P.L.227-2013, SEC.18.

IC 6-6-2.5-27"Wholesaler" Sec. 27. As used in this chapter, "wholesaler" means a person that acquires special fuel from a supplier or from another wholesaler for subsequent resale to a retail establishment or bulk end user by tank cars, motor vehicles, or both.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.24.

IC 6-6-2.5-28License tax; presumptions; computation; liability for collection and remittance; sulfur content; penalty Sec. 28. (a) A license tax is imposed on all special fuel sold or used in producing or generating power for propelling motor vehicles, except fuel used under section 30(a)(8) or 30.5 of this chapter, at the applicable rate specified in subsection (b). The tax shall be paid at those times, in the manner, and by those persons specified in this section and section 35 of this chapter.

(b) The license tax described in subsection (a) is imposed at the following applicable rate per special fuel gallon:

(1) Before July 1, 2017, sixteen cents ($0.16).

(2) For July 1, 2017, through June 30, 2018, the lesser of:

(A) the rate resulting from using the factors determined under IC 6-6-1.6-2; or

(B) twenty-six cents ($0.26).

(3) For July 1, 2018, through June 30, 2019, the product of:

(A) the sum of:

(i) the rate in effect on June 30; and

(ii) twenty-one cents ($0.21); multiplied by

(B) the factor determined under IC 6-6-1.6-3.

(4) Beginning July 1, 2019, and each July 1 through July 1, 2027, the department shall determine an applicable rate equal to the product of:

(A) the rate in effect on June 30; multiplied by

(B) the factor determined under IC 6-6-1.6-3.

The rate shall be rounded to the nearest cent ($0.01). However, after June 30, 2018, and before July 1, 2019, the new applicable rate may not exceed the rate in effect on June 30 plus twenty-three cents ($0.23). After June 30, 2019, the new applicable rate may not exceed the rate in effect on June 30 plus two cents ($0.02). However, the new rate may not be less than the rate in effect on June 30. If the calculation of a new rate would produce a rate that is less than the rate in effect on June 30, the new rate shall be the rate in effect on June 30. The department shall publish the rate that will take effect on July 1 on the department's website not later than June 1.

(c) The department shall consider it a rebuttable presumption that all undyed or unmarked special fuel, or both, received in Indiana is to be sold for use in propelling motor vehicles.

(d) Except as provided in subsection (e), the tax imposed on special fuel by subsection (a) shall be measured by invoiced gallons (or diesel or gasoline gallon equivalents in the case of a special fuel described in section 22.5(2) or 22.5(3) of this chapter) of nonexempt special fuel received by a licensed supplier in Indiana for sale or resale in Indiana or with respect to special fuel subject to a tax precollection agreement under section 35(j) of this chapter, such special fuel removed by a licensed supplier from a terminal outside of Indiana for sale for export or for export to Indiana and in any case shall generally be determined in the same manner as the tax imposed by Section 4081 of the Internal Revenue Code and Code of Federal Regulations.

(e) The tax imposed by subsection (a) on special fuel imported into Indiana, other than into a terminal, is imposed at the time the product is entered into Indiana and shall be measured by invoiced gallons received at a terminal or at a bulk plant.

(f) In computing the tax, all special fuel in process of transfer from tank steamers at boat terminal transfers and held in storage pending wholesale bulk distribution by land transportation, or in tanks and equipment used in receiving and storing special fuel from interstate pipelines pending wholesale bulk reshipment, shall not be subject to tax.

(g) The department shall consider it a rebuttable presumption that special fuel consumed in a motor vehicle plated for general highway use is subject to the tax imposed under this chapter. A person claiming exempt use of special fuel in such a vehicle must maintain adequate records as required by the department to document the vehicle's taxable and exempt use.

(h) A person that engages in blending fuel for taxable sale or use in Indiana is primarily liable for the collection and remittance of the tax imposed under subsection (a). The person shall remit the tax due in conjunction with the filing of a monthly report in the form prescribed by the department.

(i) A person that receives special fuel that has been blended for taxable sale or use in Indiana is secondarily liable to the state for the tax imposed under subsection (a).

(j) A person may not use special fuel on an Indiana public highway if the special fuel contains a sulfur content that exceeds five one-hundredths of one percent (0.05%). A person who knowingly:

(1) violates; or

(2) aids or abets another person to violate;

this subsection commits a Class A infraction. However, the violation is a Class A misdemeanor if the person has committed one (1) prior unrelated violation of this subsection, and a Level 6 felony if the person has committed more than one (1) unrelated violation of this subsection.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.25; P.L.85-1995, SEC.18; P.L.33-2007, SEC.1; P.L.277-2013, SEC.10; P.L.158-2013, SEC.95; P.L.190-2014, SEC.24; P.L.218-2017, SEC.39; P.L.185-2018, SEC.4; P.L.159-2021, SEC.32; P.L.201-2023, SEC.108.

IC 6-6-2.5-29Inventory tax; exclusions; amount Sec. 29. (a) Persons having title to special fuel in storage and held for sale on the effective date of an increase in the license tax rate imposed under section 28 of this chapter are subject to an inventory tax based on the gallons in storage as of the close of the business day preceding the effective date of the increased license tax rate.

(b) Persons subject to the tax imposed under this section shall:

(1) take an inventory to determine the gallons in storage for purposes of determining the inventory tax;

(2) report the gallons listed in subdivision (1) on forms provided by the commissioner; and

(3) pay the tax due not more than thirty (30) days after the prescribed inventory date.

In determining the amount of special fuel tax due under this section, the person may exclude the amount of special fuel that will not be pumped out of the storage tank because the special fuel is below the mouth of the draw pipe. For this purpose, the person may deduct two hundred (200) gallons for a storage tank with a capacity of less than ten thousand (10,000) gallons, and four hundred (400) gallons for a storage tank with a capacity that exceeds ten thousand (10,000) gallons.

(c) The amount of the inventory tax is equal to the inventory tax rate times the gallons in storage as determined under subsection (b). The inventory tax rate is equal to the difference of the increased license tax rate minus the previous license tax rate.

(d) The inventory tax shall be considered a listed tax for the purposes of IC 6-8.1.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-30Exemptions from special fuel tax; provision of export information; refunds Sec. 30. (a) The following are exempt from the special fuel tax:

(1) Special fuel sold by a supplier to a licensed exporter for export from Indiana to another state or country to which the exporter is specifically licensed to export exports by a supplier, or exports for which the destination state special fuel tax has been paid to the supplier and proof of export is available in the form of a destination state bill of lading.

(2) Special fuel sold to the United States or an agency or instrumentality thereof.

(3) Special fuel sold to a post exchange or other concessionaire on a federal reservation within Indiana. However, the post exchange or concessionaire shall collect, report, and pay quarterly to the department any tax permitted by federal law on special fuel sold.

(4) Special fuel sold to a public transportation corporation established under IC 36-9-4 and used for the transportation of persons for compensation within the territory of the corporation.

(5) Special fuel sold to a public transit department of a municipality and used for the transportation of persons for compensation within a service area, no part of which is more than five (5) miles outside the corporate limits of the municipality.

(6) Special fuel sold to a common carrier of passengers, including a business operating a taxicab (as defined in IC 6-6-1.1-103(l)) and used by the carrier to transport passengers within a service area that is not larger than one (1) county, and counties contiguous to that county.

(7) The portion of special fuel determined by the commissioner to have been used to operate equipment attached to a motor vehicle, if the special fuel was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment.

(8) Special fuel used for nonhighway purposes, used as heating oil, or in trains.

(9) Special fuel sold by a supplier to an unlicensed person for export from Indiana to another state and the special fuel has been dye addityzed in accordance with section 31 of this chapter.

(10) Sales of transmix between licensed suppliers.

(11) Special fuel sold or removed via truck or rail from a terminal or refinery, if the destination is an Indiana terminal or refinery.

(12) Special fuel received at an Indiana terminal or refinery, if the tax on the special fuel has previously been paid. If this subdivision applies, the receiving supplier is entitled to a credit on the receiving supplier's Indiana Special Fuel Supplier's Tax Return for the tax paid to the receiving supplier's vendor or directly to the state.

(13) The difference between the amount of special fuel purchased by a compressed natural gas product fuel station and the amount of compressed natural gas product produced and sold by the compressed natural gas product fuel station.

(b) The exemption from tax provided under subsection (a)(4) through (a)(7) shall be applied for through the refund procedures established in section 32 of this chapter. The exemption from tax provided under subsection (a)(13) shall be applied for through the refund procedures established in section 32.7 of this chapter.

(c) The department shall provide information to licensed suppliers of the destination state or states to which exporters are authorized to export.

(d) Subject to gallonage limits and other conditions established by the department, the department shall provide for refund of the tax imposed by this chapter to a wholesale distributor exporting undyed special fuel out of a bulk plant in this state in a vehicle capable of carrying not more than five thousand four hundred (5,400) gallons if the destination of that vehicle does not exceed twenty-five (25) miles from the border of Indiana.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.26; P.L.100-1995, SEC.1; P.L.218-2017, SEC.40; P.L.236-2023, SEC.84.

IC 6-6-2.5-30.5Exemption from special fuel tax; restricted personal, noncommercial use Sec. 30.5. (a) Except as provided in subsection (b), special fuel is exempt from the special fuel tax if:

(1) the special fuel has a nominal biodiesel content of at least twenty percent (20%);

(2) the special fuel is used only for a personal, noncommercial use and is not for resale; and

(3) the individual using the special fuel:

(A) produces the biodiesel content of the special fuel; and

(B) obtains an exemption certificate under subsection (c) before using the special fuel.

(b) The maximum number of gallons of special fuel for which an individual may claim the exemption under this section in a year is equal to:

(1) two thousand (2,000); divided by

(2) the average percentage volume of biodiesel in each gallon used by the individual.

(c) The department shall issue an exemption certificate to an individual who produces evidence of nontaxability under subsection (a)(1), (a)(2), and (a)(3). A certificate issued under this subsection is valid for a period determined by the department, but not to exceed five (5) years. The department may allow an individual to renew an exemption certification for additional five (5) year periods. An exemption certificate applies only to special fuel described in subsection (a). An individual holding a certificate issued under this subsection shall notify the department:

(1) of any address change by the individual; and

(2) when the individual ceases using special fuel that is exempt under this section.

(d) An individual who is issued an exemption certificate under this section must submit to the department a report, in a form prescribed by the department, not later than January 20 of each year. The report must include:

(1) the number of gallons of special fuel in the immediately preceding year; and

(2) the average percentage volume of biodiesel in each gallon of special fuel;

to which the exemption was applied in the calendar year ending on the immediately preceding December 31.

(e) An individual who is issued an exemption certificate under this section is not subject to the reporting requirements under section 35 of this chapter.

As added by P.L.33-2007, SEC.2.

IC 6-6-2.5-31Exempted special fuels; dye requirements and specifications; markers Sec. 31. (a) Special fuel exempted under section 30(a)(8) of this chapter shall have dye added to it at or before the time of withdrawal at a terminal or refinery rack. At the option of the supplier, the dye added may be either:

(1) dye required to be added pursuant to United States Environmental Protection Agency requirements; or

(2) dye with specifications and amounts as required by the department.

(b) The department may require that special fuel exempted under section 30(a)(8) of this chapter shall have a marker added to the special fuel not later than the time of withdrawal at a terminal or refinery rack. The marker must meet the specifications required by the department.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.19.

IC 6-6-2.5-32Refunds; circumstances; claims; investigations Sec. 32. (a) Special fuel tax that has been collected by a supplier on special fuel used for an exempt purpose, including section 30(a)(4) through 30(a)(7) of this chapter and pretaxed exempt fuel under section 30(a)(8) of this chapter, but which was not dyed or marked, or both, in accordance with section 31 of this chapter, shall be refunded by the department to the user or the user's assignee under rules adopted by the department, in accordance with subsection (c), upon presentation of proof of exempt use by the end user in the form that the department prescribes. A person that claims a refund under section 32.7 of this chapter for special fuel tax collected on compressed natural gas product may not claim a refund under this subsection for the same special fuel tax.

(b) Special fuel tax that has been collected by a supplier on special fuel that was removed from a terminal or refinery for delivery in Indiana, and was exported by a licensed exporter shall be refunded by the department to the licensed exporter in accordance with subsection (c), upon presentation of proof of export in the form that the department prescribes.

(c) Special fuel tax that has been erroneously paid by a person shall be refunded by the department in accordance with subsection (d).

(d) To claim a refund under subsections (a) through (c), a person must present to the department a statement that contains a written verification that the claim is made under penalties of perjury and lists the total amount of special fuel purchased and used for non-highway purposes. The claim must be filed not more than three (3) years after the date the special fuel was purchased. The statement must show that payment for the purchase has been made and the amount of tax paid on the purchase has been remitted.

(e) The department may make any investigations it considers necessary before refunding the special fuel tax to a person.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.20; P.L.236-2023, SEC.85.

IC 6-6-2.5-32.5Refund of special fuel tax; qualification; claim for refund Sec. 32.5. (a) A person that pays the tax imposed by this chapter on the use of special fuel in the operation of a for-hire bus (as defined in IC 9-13-2-66.7) is entitled to a refund of the tax without interest if the person has:

(1) consumed the special fuel outside Indiana;

(2) paid a special fuel tax or highway use tax for the special fuel in at least one (1) state or other jurisdiction outside Indiana; and

(3) complied with subsection (b).

(b) To qualify for a refund under this section, a special fuel user shall submit to the department a claim for a refund, in the form prescribed by the department, that includes the following information:

(1) Any evidence requested by the department of the following:

(A) Payment of the tax imposed by this chapter.

(B) Payment of taxes in another state or jurisdiction outside Indiana.

(2) Any other information reasonably requested by the department.

As added by P.L.85-1995, SEC.21. Amended by P.L.198-2016, SEC.27.

IC 6-6-2.5-32.7Refund of special fuel tax; compressed natural gas product fuel station; computation; collection allowance Sec. 32.7. (a) A person is entitled to a quarterly refund of the special fuel tax paid under this chapter on the difference between the amount of special fuel purchased by a compressed natural gas product fuel station and the amount of compressed natural gas product produced and sold by the compressed natural gas product fuel station. The refund amount is in addition to the collection allowance the person may receive under section 37 of this chapter. A person that claims a refund under section 32 of this chapter for special fuel tax may not claim a refund under this section for the same special fuel tax.

(b) To qualify for a quarterly refund under this section, a person shall submit to the department a statement that contains a written verification that the claim is made under penalties of perjury and lists the total amount of natural gas purchased and the total amount of compressed natural gas for which the person claims a refund. The claim must be filed not later than the end of the third month following the end of the calendar quarter the compressed natural gas qualified for a special fuel tax refund under subsection (a). No interest may be paid on a refund made under this section.

(c) A refund claim must be in the form prescribed by the department and include any information reasonably requested by the department.

(d) The department may make any investigations it considers necessary before refunding the tax to a person.

As added by P.L.236-2023, SEC.86.

IC 6-6-2.5-33Payment of interest on refund claim Sec. 33. If a claim for refund is not issued within ninety (90) days of the filing required by section 32 of this chapter, the department shall pay interest at the rate established by IC 6-8.1-9 from a date that is ninety (90) days after the date that the department receives the claim for refund and all necessary documentation until a date, determined by the commissioner, that does not precede by more than thirty (30) days, the date on which the refund is made.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.22.

IC 6-6-2.5-34Supplier deduction for gallons purchased; prohibition; customer refunds; application Sec. 34. No supplier shall claim a deduction from taxable gallons for gallons actually purchased by the customer, notwithstanding that the supplier has issued a corrective credit or rebilling to a customer adjusting the tax liability. The only remedy available to a customer to offset liability for special fuel tax paid is to apply for a refund as provided by section 32(d) of this chapter.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-35Collection and remittance of special fuel tax Sec. 35. (a) The tax on special fuel received by a licensed supplier in Indiana that is imposed by section 28 of this chapter shall be collected and remitted to the state by the supplier who receives taxable gallons in accordance with subsection (b).

(b) On or before the fifteenth day of each month, licensed suppliers and licensed permissive suppliers shall make an estimated payment of all taxes imposed on transactions that occurred during the previous calendar month equal to:

(1) one hundred percent (100%) of the amount remitted by the licensed supplier or licensed permissive supplier for the month preceding the previous calendar month; or

(2) ninety-five percent (95%) of the amount actually due and payable by the licensed supplier or licensed permissive supplier for the previous month.

Any remaining tax imposed on transactions occurring during a calendar month shall be due and payable on or before the twentieth day of the following month, except as provided in subsection (i). Underpayments of estimated taxes due and owing the department are not subject to a penalty under section 63(a) of this chapter.

(c) A supplier who sells special fuel shall collect from the purchaser the special fuel tax imposed under section 28 of this chapter. At the election of an eligible purchaser, the seller shall not require a payment of special fuel tax from the purchaser at a time that is earlier than the date on which the tax is required to be remitted by the supplier under subsection (b). This election shall be subject to a condition that the eligible purchaser's remittances of all amounts of tax due the seller shall be paid by electronic funds transfer on or before the due date of the remittance by the supplier to the department, and the eligible purchaser's election under this subsection may be terminated by the seller if the eligible purchaser does not make timely payments to the seller as required by this subsection.

(d) As used in this section, "eligible purchaser" means a person who has authority from the department to make the election under subsection (c) and includes every person who is licensed and in good standing as a special fuel dealer or special fuel user, as determined by the department, as of July 1, 1993, who has purchased a minimum of two hundred forty thousand (240,000) taxable gallons of special fuel each year in the preceding two (2) years, or who otherwise meets the financial responsibility and bonding requirements of subsection (e).

(e) Each purchaser that desires to make an election under subsection (c) shall present evidence of the purchaser's eligible purchaser status to the purchaser's seller. The department shall determine whether the purchaser is an eligible purchaser. The department may require a purchaser that pays the tax to a supplier to file with the department a surety bond payable to the state, upon which the purchaser is the obligor or other financial security, in an amount satisfactory to the department. The department may require that the bond indemnify the department against bad debt deductions claimed by the supplier under subsection (g).

(f) The department shall have the authority to rescind a purchaser's eligibility and election to defer special fuel tax remittances upon a showing of good cause, including failure to make timely payment under subsection (c), by sending written notice to all suppliers and eligible purchasers. The department may require further assurance of the purchaser's financial responsibility, or may increase the bond requirement for that purchaser, or any other action that the department may require to ensure remittance of the special fuel tax.

(g) In computing the amount of special fuel tax due, the supplier and permissive supplier shall be entitled to a deduction from the tax payable the amount of tax paid by the supplier that has become uncollectible from a purchaser. The department shall adopt rules establishing the evidence a supplier must provide to receive the deduction. The deduction shall be claimed on the first return following the date of the failure of the purchaser if the payment remains unpaid as of the filing date of that return or the deduction shall be disallowed. The claim shall identify the defaulting purchaser and any tax liability that remains unpaid. If a purchaser fails to make a timely payment of the amount of tax due, the supplier's deduction shall be limited to the amount due from the purchaser, plus any tax that accrues from that purchaser for a period of ten (10) days following the date of failure to pay. No additional deduction shall be allowed until the department has authorized the purchaser to make a new election under subsection (e). The department may require the deduction to be reported in the same manner as prescribed in Section 166 of the Internal Revenue Code.

(h) The supplier and each reseller of special fuel is considered to be a collection agent for this state with respect to that special fuel tax, which shall be set out on all invoices and billings as a separate line item.

(i) Except as provided in subsection (e), the tax imposed by section 28 of this chapter on special fuel imported from another state shall be paid by the licensed importer who has imported the nonexempt special fuel not later than three (3) business days after the earlier of:

(1) the time that the nonexempt special fuel entered into Indiana; or

(2) the time that a valid import verification number was assigned by the department under rules and procedures adopted by the department.

However, if the importer and the importer's reseller have previously entered into a tax precollection agreement as described in subsection (j), and the agreement remains in effect, the supplier with whom the agreement has been made shall become jointly liable with the importer for the tax and shall remit the tax to the department on behalf of the importer. This subsection does not apply to an importer with respect to imports in vehicles with a capacity of not more than five thousand four hundred (5,400) gallons.

(j) The department, a licensed importer, the reseller to a licensed importer, and a licensed supplier or permissive supplier may jointly enter into an agreement for the licensed supplier or permissive supplier to precollect and remit the tax imposed by this chapter with respect to special fuel imported from a terminal or refinery outside of Indiana in the same manner and at the same time as the tax would arise and be paid under this chapter if the special fuel had been received by the licensed supplier or permissive supplier at a terminal or refinery in Indiana. If the supplier is also the importer, the agreement shall be entered into between the supplier and the department. However, any licensed supplier or permissive supplier may make an election with the department to treat all out-of-state terminal or refinery removals with an Indiana destination as shown on the terminal-issued or refinery-issued shipping paper as if the removals were received by the supplier in Indiana pursuant to section 28 of this chapter and subsection (a), for all purposes. In this case, the election and notice of the election to a supplier's customers shall operate instead of a three (3) party precollection agreement. The department may impose requirements reasonably necessary for the enforcement of this subsection.

(k) Each licensed importer who is liable for the tax imposed by this chapter on nonexempt special fuel imported by a fuel transport truck having less than five thousand four hundred (5,400) gallons capacity, for which tax has not previously been paid to a supplier, shall remit the special fuel tax for the preceding month's import activities with the importer's monthly report of activities. A licensed importer shall be allowed to retain two-thirds (2/3) of the collection allowance provided for in section 37(a) of this chapter for the tax timely remitted by the importer directly to the state, subject to the same pass through provided for in section 37(a) of this chapter.

(l) A licensed importer shall be allowed to retain two-thirds (2/3) of the amount allowed in section 37(a) of this chapter of the tax timely remitted by the licensed importer directly to the state, subject to the same pass through provided for in section 37(a) of this chapter.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.27; P.L.61-1996, SEC.2; P.L.65-1997, SEC.1; P.L.218-2017, SEC.41.

IC 6-6-2.5-36Remittance of tax; procedures; deadline Sec. 36. All suppliers required to remit the special fuel tax shall remit the special fuel taxes due by electronic fund transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by overnight courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-37Costs of collection, reporting, and remittance; retention of portion of remittance; amount; failure to report or remit on time Sec. 37. (a) Every supplier and permissive supplier who properly remits tax under this chapter shall be allowed to retain one and six-tenths percent (1.6%) of the tax to cover the costs of collecting, reporting, and timely remitting the tax imposed by this chapter.

(b) The amount that the supplier is permitted to retain under subsection (a) shall be distributed by the supplier as follows:

(1) One-third (1/3) retained by the supplier.

(2) Two-thirds (2/3) to the wholesale distributor. If the special fuel is resold by that wholesale distributor or another wholesale distributor to an eligible purchaser, the last wholesale distributor in the distribution process shall pass on one-half (1/2) of the two-thirds (2/3) to the eligible purchaser.

(3) If an eligible purchaser is the direct purchaser from a supplier, and that retail dealer or bulk end user is responsible for shipping the product, then the supplier shall pass through two-thirds (2/3) to the retail dealer or bulk end user. If the supplier is responsible for shipping the product, the supplier shall retain two-thirds (2/3) and pass through one-third (1/3) to the eligible purchaser.

The amount a person receives under this subsection is in addition to the amount of the person's refund claim under section 32.7 of this chapter.

(c) If a monthly report is filed or the amount due is remitted later than the time required by this chapter, the supplier shall pay to the department all of the special fuel tax the dealer collected from the sale of special fuel during the reporting period.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.28; P.L.236-2023, SEC.87.

IC 6-6-2.5-38Duties and responsibilities of supplier in collection of tax; liability Sec. 38. The tax the supplier collects on the sale of special fuel belongs to the state. A supplier shall hold the money in trust for the state and for payment to the department as provided in this chapter. In the case of a corporation or partnership, each officer, employee, or member of the employer who is in that capacity is under a duty to collect the tax, and is personally liable for the tax, penalty, and interest.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-39Consumption of tax-exempt dyed or marked fuel for nonexempt purpose; remittance of tax Sec. 39. Any person who has consumed tax-exempt dyed or marked special fuel, or both, for a nonexempt purpose, as permitted under section 62 of this chapter, shall remit the tax due by filing a monthly report and remitting the tax due on forms prescribed by the department.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995, SEC.23.

IC 6-6-2.5-40Transportation of special fuel; requirements and procedures; violations Sec. 40. (a) Each person operating a refinery, terminal, or bulk plant in Indiana shall prepare and provide to the driver of every vehicle receiving special fuel at the facility a shipping document setting out on its face the destination state as represented to the terminal operator by the shipper or the shipper's agent, except that an operator of a bulk plant in Indiana delivering special fuel into a vehicle with a capacity of not more than five thousand four hundred (5,400) gallons for subsequent delivery to an end consumer in Indiana is exempt from this requirement.

(b) Every person transporting special fuel in vehicles upon the Indiana public highways shall carry on board a shipping paper issued by the terminal operator or the bulk plant operator of the facility where the special fuel was obtained, which shipping paper shall set out on its face the state of destination of the special fuel transported in the vehicle, except that operators of vehicles with a capacity of not more than five thousand four hundred (5,400) gallons that have received special fuel at a bulk plant in Indiana for delivery to an end consumer in Indiana are exempt from this provision with respect to the special fuel. A person who violates this subsection commits a Class A infraction (as defined in IC 34-28-5-4).

(c) Every person transporting special fuel in vehicles upon the public highways of Indiana shall provide the original or a copy of the terminal issued shipping document accompanying the shipment to the operator of the retail outlet or bulk plant to which delivery of the shipment was made. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(d) Each operator of a special fuel retail outlet or bulk plant shall receive, examine, and retain for a period of thirty (30) days at the delivery location the terminal issued shipping document received from the transporter for every shipment of special fuel that is delivered to that location, with record retention of the shipping paper of three (3) years required offsite. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(e) No bulk end user, retail dealer, bulk plant operator, or wholesale distributor shall knowingly accept delivery of special fuel into storage facilities in Indiana if that delivery is not accompanied by a shipping paper issued by the terminal operator or bulk plant operator that sets out on its face Indiana as the state of destination of the special fuel. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(f) The department shall provide for relief in a case where a shipment of special fuel is legitimately diverted from the represented destination state after the shipping paper has been issued by the terminal operator or where the terminal operator failed to cause proper information to be printed on the shipping paper. These relief provisions shall include a provision requiring that the shipper or its agent obtain a diversion number within twenty-four (24) hours of the diversion and report the number on the shipper's or agent's monthly return to the department, and the relief provision shall be consistent with the refund provisions of this chapter.

(g) The supplier and the terminal operator shall be entitled to rely for all purposes of this chapter on the representation by the shipper or the shipper's agent as to the shipper's intended state of destination or tax exempt use. The shipper, the importer, the transporter, the shipper's agent, and any purchaser, not the supplier or terminal operator, shall be jointly liable for any tax otherwise due to the state as a result of a diversion of the special fuel from the represented destination state.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.29; P.L.85-1995, SEC.24; P.L.1-1998, SEC.80; P.L.158-2013, SEC.96; P.L.234-2019, SEC.21.

IC 6-6-2.5-41Licenses Sec. 41. (a) Each supplier engaged in business in Indiana as a supplier shall first obtain a supplier's license. The fee for a supplier's license shall be five hundred dollars ($500).

(b) Any person who desires to collect the tax imposed by this chapter as a supplier and who meets the definition of a permissive supplier may obtain a permissive supplier's license. Application for or possession of a permissive supplier's license shall not in itself subject the applicant or licensee to the jurisdiction of Indiana for any other purpose than administration and enforcement of this chapter. The fee for a permissive supplier's license is fifty dollars ($50).

(c) Each terminal operator other than a supplier licensed under subsection (a) engaged in business in Indiana as a terminal operator shall first obtain a terminal operator's license for each terminal site. The fee for a terminal operator's license is three hundred dollars ($300).

(d) Each exporter engaged in business in Indiana as an exporter shall first obtain an exporter's license. However, in order to obtain a license to export special fuel from Indiana to another specified state, a person shall be licensed either to collect and remit special fuel taxes or be licensed to deal in tax free special fuel in that other specified state of destination. The fee for an exporter's license is two hundred dollars ($200).

(e) Each person who is not licensed as a supplier shall obtain a transporter's license before transporting special fuel by whatever manner from a point outside Indiana to a point inside Indiana, or from a point inside Indiana to a point outside Indiana, regardless of whether the person is engaged for hire in interstate commerce or for hire in intrastate commerce. The registration fee for a transporter's license is fifty dollars ($50).

(f) Each person who wishes to cause special fuel to be delivered into Indiana on the person's own behalf, for the person's own account, or for resale to an Indiana purchaser, from another state in a fuel transport vehicle having a capacity of more than five thousand four hundred (5,400) gallons, or in a pipeline or barge shipment into storage facilities other than a qualified terminal, shall first make an application for and obtain an importer's license. The fee for an importer's license is two hundred dollars ($200). This subsection does not apply to a person who imports special fuel that is exempt because the special fuel has been dyed or marked, or both, in accordance with section 31 of this chapter. This subsection does not apply to a person who imports nonexempt special fuels meeting the following conditions:

(1) The special fuel is subject to one (1) or more tax precollection agreements with suppliers as provided in section 35 of this chapter.

(2) The special fuel tax precollection by the supplier is expressly evidenced on the terminal-issued shipping paper as specifically provided in section 62(e)(2) of this chapter.

(g) A person desiring to import special fuel to an Indiana destination who does not enter into an agreement to prepay Indiana special fuel tax to a supplier or permissive supplier under section 35 of this chapter on the imports must do the following:

(1) Obtain a valid license under subsection (f).

(2) Obtain an import verification number from the department not earlier than twenty-four (24) hours before entering the state with each import, if importing in a vehicle with a capacity of more than five thousand four hundred (5,400) gallons.

(3) Display a proper import verification number on the shipping document, if importing in a vehicle with a capacity of more than five thousand four hundred (5,400) gallons.

(h) The department may require a person that wants to blend special fuel to first obtain a license from the department. The department may establish reasonable requirements for the proper enforcement of this subsection, including the following:

(1) Guidelines under which a person may be required to obtain a license.

(2) A requirement that a licensee file reports in the form and manner required by the department.

(3) A requirement that a licensee meet the bonding requirements specified by the department.

(i) The department may require a person that:

(1) is subject to the special fuel tax under this chapter;

(2) qualifies for a federal diesel fuel tax exemption under Section 4082 of the Internal Revenue Code; and

(3) is purchasing red dyed low sulfur diesel fuel;

to register with the department as a dyed fuel user. The department may establish reasonable requirements for the proper enforcement of this subsection, including guidelines under which a person may be required to register and the form and manner of reports a registrant is required to file.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.30; P.L.85-1995, SEC.25; P.L.61-1996, SEC.3; P.L.227-2013, SEC.19; P.L.118-2024, SEC.13.

IC 6-6-2.5-42Application for license; form and content; investigation Sec. 42. (a) Each application for a license under section 41 of this chapter shall be made upon a form prepared and furnished by the department. It shall be subscribed to by the applicant and shall contain the information as the department may reasonably require for the administration of this chapter, including the applicant's federal identification number and, with respect to the applicant for an exporter's license, a copy of the applicant's license to purchase or handle special fuel tax free in the specified destination state or states for which the export license is to be issued.

(b) The department shall investigate each applicant for a license under this section. No license shall be issued if the department determines that any one (1) of the following exists:

(1) The application is not filed in good faith.

(2) The applicant is not the real party in interest.

(3) The license of the real party in interest has been revoked for cause.

(4) Other reasonable cause for non-issuance exists.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.146-2020, SEC.33.

IC 6-6-2.5-43RepealedAs added by P.L.277-1993(ss), SEC.44. Repealed by P.L.146-2020, SEC.34.

IC 6-6-2.5-44Surety bond or cash deposit; filing by applicants Sec. 44. (a) Concurrently with the filing of an application for a license under this chapter, the department may require the applicant to file with the commissioner a surety bond or cash deposit:

(1) in an amount determined by the commissioner of not less than two thousand dollars ($2,000) or not more than a two (2) month tax liability for the applicant as estimated by the commissioner; and

(2) conditioned upon the keeping of records and the making of full and complete reports and payments as required by this chapter.

(b) If the applicant files a bond, the bond must:

(1) be with a surety company approved by the commissioner;

(2) name the applicant as the principal and the state as the obligee; and

(3) be on forms prescribed by the department.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-45Disclosure of financial records; increase in bond or cash deposit Sec. 45. The commissioner may, at the commissioner's reasonable discretion, require a licensee to furnish current certified, audited financial statements. If the commissioner determines that a licensee's financial condition warrants an increase in the bond or cash deposit, the commissioner may require the licensee to furnish an increased bond or cash deposit.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-46Filing of new bond; conditions; cancellation of license; reduction of cash deposit by judgment; additional deposit Sec. 46. (a) The commissioner may require a licensee to file a new bond with a satisfactory surety in the same form and amount if:

(1) liability upon the previous bond is discharged or reduced by the judgment rendered, payment made, or otherwise disposed of; or

(2) in the opinion of the commissioner, any surety on the previous bond becomes unsatisfactory.

If the new bond is unsatisfactory, the commissioner shall cancel the license. If the new bond is satisfactorily furnished, the commissioner shall release in writing the surety on the previous bond from any liability accruing after the effective date of the new bond.

(b) If a licensee has a cash deposit with the commissioner and the deposit is reduced by a judgment rendered, payment made, or otherwise disposed of, the commissioner may require the licensee to make a new deposit equal to the amount of the reduction.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-47Deposit insufficient to ensure payment; written demand to file new bond; requirements; cancellation of license Sec. 47. (a) If the commissioner reasonably determines that the amount of the existing bond or cash deposit is insufficient to ensure payment to the state of the tax and any penalty and interest for which the licensee is or may become liable, the licensee shall, upon written demand of the commissioner, file a new bond or increase the cash deposit. The commissioner shall allow the licensee at least thirty (30) days to secure the increased bond or cash deposit.

(b) The new bond or cash deposit must meet the requirements set forth in this chapter.

(c) If the new bond or cash deposit required under this section is unsatisfactory, the commissioner shall cancel the licensee's license certificate.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.31.

IC 6-6-2.5-48Release of surety from liability; written request; notice; cancellation Sec. 48. (a) Sixty (60) days after making a written request for release to the commissioner, the surety of a bond furnished by a licensee is released from any liability to the state accruing on the bond after the sixty (60) day period. The release does not affect any liability accruing before the expiration of the sixty (60) day period.

(b) The commissioner shall promptly notify the licensee furnishing the bond that a release has been requested. Unless the licensee obtains a new bond that meets the requirements of this chapter and files with the commissioner the new bond within the sixty (60) day period, the commissioner shall cancel the license.

(c) Sixty (60) days after making a written request for release to the commissioner, the cash deposit provided by a licensee is canceled as security for any obligation accruing after the expiration of the sixty (60) day period. However, the commissioner may retain all or part of the cash deposit for up to three (3) years and one (1) day as security for any obligations accruing before the effective date of the cancellation. Any part of the deposit that is not retained by the commissioner shall be released to the licensee. Before the expiration of the sixty (60) day period, the licensee must provide the commissioner with a bond that satisfies the requirements of this chapter or the commissioner shall cancel the license.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-49Denial of license; hearing; notice Sec. 49. Before being denied a license, the department shall grant the applicant a hearing of which the applicant shall be given at least five (5) days written notice.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-50Issuance of license Sec. 50. If the application and bond are approved, the department shall issue a license and as many copies as the licensee has places of business for which a license is required.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-51Validity of license Sec. 51. A license is valid until suspended, revoked for cause, or canceled.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-52Transfer of license; prohibition Sec. 52. No license is transferable to another person or to another place of business.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-53Display of license at place of business Sec. 53. Each license shall be preserved and conspicuously displayed at the place of business for which it is issued.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-54Discontinuance of business; surrender of license Sec. 54. Upon the discontinuance of the business, the license issued for the place shall be immediately surrendered to the department.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-55Notice of discontinuance, sale, or transfer of business; content; liability Sec. 55. Whenever any person licensed to do business under this chapter discontinues, sells, or transfers the business, the licensee shall immediately notify the department in writing of the discontinuance, sale, or transfer. The notice shall give the date of discontinuance, sale, or transfer and in the event of the sale or transfer of the business, the name and address of the purchaser or transferee. The licensee shall be liable for all taxes, interest, and penalties that accrue or may be owing and any criminal liability for misuse of the license that occurs prior to issuance of the notice.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-56RepealedAs added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.32. Repealed by P.L.61-1996, SEC.24.

IC 6-6-2.5-56.5Suppliers, permissive suppliers, and licensed importers; reporting requirements; violations Sec. 56.5. (a) For the purpose of determining the amount of special tax due, every supplier shall file with the department on forms prescribed and furnished by the department a verified statement by the supplier. The department may require the reporting of any information reasonably necessary to determine the amount of special fuel tax due.

(b) The reports required by this section that contain information for the preceding calendar month shall be filed before the twentieth day of each month.

(c) Each supplier and permissive supplier shall separately report:

(1) all loads of special fuel received by the supplier or permissive supplier for export to another state; and

(2) all loads of special fuel removed by the supplier or permissive supplier out of an out-of-state terminal for delivery to Indiana and sold tax free to persons for import into Indiana;

in accordance with the shipping papers issued by the terminal operator. A person who knowingly violates this subsection commits a Level 6 felony.

(d) Each licensed importer shall file monthly with the department a verified sworn statement of operations within Indiana and any other information with respect to the source and means of transportation of special fuel as the department may require and on forms prescribed and furnished by the department. A person who knowingly violates this subsection commits a Level 6 felony.

As added by P.L.65-1997, SEC.2. Amended by P.L.158-2013, SEC.97.

IC 6-6-2.5-57Terminal operators; reporting requirements; inventory records Sec. 57. (a) Each person operating a terminal in Indiana shall file monthly reports of operations within Indiana on forms prescribed by the department. The department may require the reporting of any information it considers reasonably necessary.

(b) For purposes of reporting and determining tax liability under this chapter, every licensee shall maintain inventory records as required by the department.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-58Final report upon discontinuance, sale, or transfer of business or revocation of license; payment of taxes and penalties Sec. 58. Every licensee shall, upon the discontinuance, sale, or transfer of the business or upon the cancellation or revocation of a license, make a report as required under this chapter marked "Final Report", and shall pay all special fuel taxes and penalties that may be due the state except as may otherwise be provided by law. The payment shall be made to the department in accordance with sections 35 and 36 of this chapter.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-59Exporters; reporting requirements Sec. 59. Each person operating as an exporter shall file monthly reports with the department on forms prescribed and furnished by the department concerning the amount of special fuel exported from Indiana. The department may require the reporting of any information it considers reasonably necessary. However, the report shall contain the following information:

(1) The special fuel loaded in Indiana for delivery outside of Indiana.

(2) The gallons delivered to taxing jurisdictions outside Indiana.

(3) The name and federal employer identification number of the receiver of the exported special fuel.

(4) The date of the shipments.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-60Transporters; reporting requirements; failure to report; penalty; waiver of report Sec. 60. (a) Each person operating as a transporter in Indiana shall file monthly reports with the department on forms prescribed and furnished by the department concerning the amount of special fuel transported in Indiana. The department may require the reporting of any information it considers reasonably necessary to track the movement of special fuel in Indiana.

(b) If a transporter fails to make the reports required by this section, the person is subject to a civil penalty of one thousand dollars ($1,000) for each violation, as reasonably determined by the department.

(c) The reports required by this section are for information purposes only and the commissioner may waive the filing of the reports if the reports are unnecessary for the proper administration of this chapter.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-61Composite and modified reports Sec. 61. The department may aggregate the information required in any of the reports required by this chapter into one (1) or more composite or modified reports in order to avoid duplicate reporting.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-62Special fuel restrictions; violations; exemptions Sec. 62. (a) No person shall import, sell, use, deliver, or store in Indiana special fuel in bulk as to which dye or a marker, or both, has not been added in accordance with section 31 of this chapter, or as to which the tax imposed by this chapter has not been paid to or accrued by a licensed supplier or licensed permissive supplier as shown by a notation on a terminal-issued shipping paper subject to the following exceptions:

(1) A supplier shall be exempt from this provision with respect to special fuel manufactured in Indiana or imported by pipeline or waterborne barge and stored within a terminal in Indiana.

(2) An end user shall be exempt from this provision with respect to special fuel in a vehicle supply tank when the fuel was placed in the vehicle supply tank outside of Indiana.

(3) A licensed importer, and transporter operating on the importer's behalf, that transports in vehicles with a capacity of more than five thousand four hundred (5,400) gallons shall be exempt from this prohibition if the importer or the transporter has met all of the following conditions:

(A) The importer or the transporter before entering onto the highways of Indiana has obtained an import verification number from the department not earlier than twenty-four (24) hours before entering Indiana.

(B) The import verification number must be set out prominently and indelibly on the face of each copy of the terminal-issued shipping paper carried on board the transport truck.

(C) The terminal origin and the importer's name and address must be set out prominently on the face of each copy of the terminal-issued shipping paper.

(D) The terminal-issued shipping paper data otherwise required by this chapter is present.

(E) All tax imposed by this chapter with respect to previously requested import verification number activity on the account of the importer or the transporter has been timely remitted.

In every case, a transporter acting in good faith is entitled to rely upon representations made to the transporter by the fuel supplier or importer and when acting in good faith is not liable for the negligence or malfeasance of another person. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(b) No person shall export special fuel from Indiana unless that person has obtained an exporter's license or a supplier's license or has paid the destination state special fuel tax to the supplier and can demonstrate proof of export in the form of a destination state bill of lading. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(c) No person shall operate or maintain a motor vehicle on any public highway in Indiana with special fuel contained in the fuel supply tank for the motor vehicle that contains dye or a marker, or both, as provided under section 31 of this chapter. This provision does not apply to persons operating motor vehicles that have received fuel into their fuel tanks outside of Indiana in a jurisdiction that permits introduction of dyed or marked, or both, special fuel of that color and type into the motor fuel tank of highway vehicles or to a person that qualifies for the federal fuel tax exemption under Section 4082 of the Internal Revenue Code and that is registered with the department as a dyed fuel user. A person who knowingly:

(1) violates; or

(2) aids and abets another person in violating;

this subsection commits a Class A infraction. However, the violation is a Class A misdemeanor if the person has committed one (1) prior unrelated violation of this subsection, and a Level 6 felony if the person has committed more than one (1) prior unrelated violation of this subsection.

(d) No person shall engage in any business activity in Indiana as to which a license is required by section 41 of this chapter unless the person shall have first obtained the license. A person who knowingly violates or knowingly aids and abets another person in violating this subsection commits a Level 6 felony.

(e) No person shall operate a motor vehicle with a capacity of more than five thousand four hundred (5,400) gallons that is engaged in the shipment of special fuel on the public highways of Indiana and that is destined for a delivery point in Indiana, as shown on the terminal-issued shipping papers, without having on board a terminal-issued shipping paper indicating with respect to any special fuel purchased:

(1) under claim of exempt use, a notation describing the load or the appropriate portion of the load as Indiana tax exempt special fuel;

(2) if not purchased under a claim of exempt use, a notation describing the load or the appropriate portion thereof as Indiana taxed or pretaxed special fuel; or

(3) if imported by or on behalf of a licensed importer instead of the pretaxed notation, a valid verification number provided before entry into Indiana by the department or the department's designee or appointee, and the valid verification number may be handwritten on the shipping paper by the transporter or importer.

A person is in violation of subdivision (1) or (2) (whichever applies) if the person boards the vehicle with a shipping paper that does not meet the requirements described in the applicable subdivision (1) or (2). A person in violation of this subsection commits a Class A infraction (as defined in IC 34-28-5-4).

(f) A person may not sell or purchase any product for use in the supply tank of a motor vehicle for general highway use that does not meet ASTM standards as published in the annual Book of Standards and its supplements unless amended or modified by rules adopted by the department under IC 4-22-2. The transporter and the transporter's agent and customer have the exclusive duty to dispose of any product in violation of this section in the manner provided by federal and state law. A person who knowingly:

(1) violates; or

(2) aids and abets another in violating;

this subsection commits a Level 6 felony.

(g) This subsection does not apply to the following:

(1) A person that:

(A) inadvertently manipulates the dye or marker concentration of special fuel or coloration of special fuel; and

(B) contacts the department within one (1) business day after the date on which the contamination occurs.

(2) A person that affects the dye or marker concentration of special fuel by engaging in the blending of the fuel, if the blender:

(A) collects or remits, or both, all tax due as provided in section 28(h) of this chapter;

(B) maintains adequate records as required by the department to account for the fuel that is blended and its status as a taxable or exempt sale or use; and

(C) is otherwise in compliance with this subsection.

A person may not manipulate the dye or marker concentration of a special fuel or the coloration of special fuel after the special fuel is removed from a terminal or refinery rack for sale or use in Indiana. A person who knowingly violates or aids and abets another person to violate this subsection commits a Level 6 felony.

(h) This subsection does not apply to a person that receives blended fuel from a person in compliance with subsection (g)(2). A person may not sell or consume special fuel if the special fuel dye or marker concentration or coloration has been manipulated, inadvertently or otherwise, after the special fuel has been removed from a terminal or refinery rack for sale or use in Indiana. A person who knowingly:

(1) violates; or

(2) aids and abets another to violate;

this subsection commits a Level 6 felony.

(i) A person may not engage in blending fuel for taxable use in Indiana without collecting and remitting the tax due on the untaxed portion of the fuel that is blended. A person who knowingly:

(1) violates; or

(2) aids and abets another to violate;

this subsection commits a Level 6 felony.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.33; P.L.85-1995, SEC.26; P.L.61-1996, SEC.4; P.L.1-1998, SEC.81; P.L.158-2013, SEC.98; P.L.218-2017, SEC.42.

IC 6-6-2.5-63Failure of suppliers, permissive suppliers, importers, and blenders to collect or timely remit tax; penalties Sec. 63. (a) A supplier, permissive supplier, importer, or blender who knowingly fails to collect or timely remit tax otherwise required to be paid to the department under section 35 of this chapter or pursuant to a tax precollection agreement under section 35 of this chapter is liable for the uncollected tax plus a penalty equal to one hundred percent (100%) of the uncollected tax.

(b) Collection of a special fuel tax arising from an out-of-state transaction does not in itself subject a supplier or permissive supplier to the jurisdiction of Indiana for any tax liability arising outside of this chapter.

(c) A person who fails or refuses to pay over to the state the tax on special fuel at the time required in this chapter or who fraudulently withholds or appropriates or otherwise uses the money or any portion thereof belonging to the state commits a Level 6 felony.

(d) A person who negligently disregards any provision of this chapter is subject to a civil penalty of five hundred dollars ($500) for each separate occurrence of negligent disregard as determined by the commissioner.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.34; P.L.65-1997, SEC.3; P.L.158-2013, SEC.99.

IC 6-6-2.5-64Civil penalties; exemption Sec. 64. (a) If any person liable for the tax files a false or fraudulent return, there shall be added to the tax an amount equal to the tax the person evaded or attempted to evade.

(b) The department shall impose a civil penalty of one thousand dollars ($1,000) for a person's first occurrence of transporting special fuel without adequate shipping papers as required under sections 40, 41(g), and 62(e) of this chapter, unless the person shall have complied with rules adopted under IC 4-22-2. Each subsequent occurrence described in this subsection is subject to a civil penalty of five thousand dollars ($5,000).

(c) The department shall impose a civil penalty on the operator of a vehicle of two hundred dollars ($200) for the initial occurrence, two thousand five hundred dollars ($2,500) for the second occurrence, and five thousand dollars ($5,000) for the third and each subsequent occurrence of a violation of either:

(1) the prohibition of use of dyed or marked special fuel, or both, on the Indiana public highways, except for a person that qualifies for the federal fuel tax exemption under Section 4082 of the Internal Revenue Code and that is registered with the department as a dyed fuel user; or

(2) the use of special fuel in violation of section 28(j) of this chapter.

(d) A supplier that makes sales for export to a person:

(1) who does not have an appropriate export license; or

(2) without collection of the destination state tax on special fuel nonexempt in the destination state;

shall be subject to a civil penalty equal to the amount of Indiana's special fuel tax in addition to the tax due.

(e) The department may impose a civil penalty of one thousand dollars ($1,000) for each occurrence against every terminal operator that fails to meet shipping paper issuance requirements under section 40 of this chapter.

(f) Each importer or transporter who knowingly imports undyed or unmarked special fuel, or both, in a transport truck without:

(1) a valid importer license;

(2) a supplier license;

(3) an import verification number, if transporting in a vehicle with a capacity of more than five thousand four hundred (5,400) gallons; or

(4) a shipping paper showing on the paper's face as required under this chapter that Indiana special fuel tax is not due;

is subject to a civil penalty of ten thousand dollars ($10,000) for each occurrence described in this subsection.

(g) This subsection does not apply to a person if section 62(g) of this chapter does not apply to the person. A:

(1) person that manipulates the dye or marker concentration of special fuel or the coloration of special fuel after the special fuel is removed from a terminal or refinery rack for sale or use in Indiana; and

(2) person that receives the special fuel;

are jointly and severally liable for the special fuel tax due on the portion of untaxed fuel plus a penalty equal to the greater of one hundred percent (100%) of the tax due or one thousand dollars ($1,000).

(h) A person that engages in blending fuel for taxable sale or use in Indiana and does not collect and remit all tax due on untaxed fuel that is blended is liable for the tax due plus a penalty that is equal to the greater of one hundred percent (100%) of the tax due or one thousand dollars ($1,000).

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.35; P.L.85-1995, SEC.27; P.L.61-1996, SEC.5; P.L.218-2017, SEC.43.

IC 6-6-2.5-65Shipping documents; violations; impoundment, seizure, and sale of vehicle; evidence; release Sec. 65. (a) If a person is found operating a motor vehicle in violation of section 40(b), 40(c), or 62(e) of this chapter, the vehicle and its cargo is subject to impoundment, seizure, and subsequent sale, in accordance with IC 6-8.1. The failure of the operator of a motor vehicle to have on-board when loaded a terminal-issued bill of lading with a destination state machine printed on its face or which fails to meet the descriptive annotation requirements in section 40(b), 41(g)(2), 41(g)(3), or 62(e) of this chapter, whichever may apply, shall be presumptive evidence of a violation sufficient to warrant impoundment and seizure of the vehicle and its cargo.

(b) After a person:

(1) is found in violation of section 62(c) of this chapter; and

(2) pays the tax due to the state;

the department shall issue a release to the person. The release must permit the dyed or marked special fuel, or both, that is the subject of the violation to be consumed on Indiana public highways within a grace period of twenty-four (24) hours after the time that the release is issued. After the grace period expires, the person shall be considered in violation of section 62(c) of this chapter if the person or the person's agent operates or maintains the same motor vehicle on an Indiana public highway with special fuel containing dye or a marker, or both.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994, SEC.36; P.L.85-1995, SEC.28; P.L.61-1996, SEC.6.

IC 6-6-2.5-66Listed tax Sec. 66. The special fuel tax is a listed tax for purposes of IC 6-8.1.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-67Use of tax revenues Sec. 67. The tax collected on the use of special fuel shall be used only for highway purposes and for payment of any part of the cost of traffic policing and traffic safety incurred by the state or any of its political subdivisions, as authorized by law.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-68Deposit of revenue Sec. 68. (a) Each month, the first one and five tenths percent (1.5%) of revenue collected under this chapter shall be deposited in the motor carrier regulation fund administered by the department.

(b) All revenue collected under this chapter that remains after the distribution of revenue specified under subsection (a) shall be used in the same manner as the revenue collected under IC 6-6-1.1. The administrator shall deposit the revenues collected under this chapter that remain after the distribution of revenues specified under subsection (a) in the same manner that revenues are deposited under IC 6-6-1.1-802.

As added by P.L.277-1993(ss), SEC.44. Amended by P.L.218-2017, SEC.44; P.L.185-2018, SEC.5.

IC 6-6-2.5-69Class actions for refund of tax; prerequisites Sec. 69. A class action for the refund of a tax subject to this chapter may not be maintained in any court, including the Indiana tax court, on behalf of a person who has not complied with sections 32 and 33 of this chapter before the certification of a class. A refund of taxes to a member of a class in a class action is subject to the time limits set forth in sections 33 and 34 of this chapter based on the time the class member filed the required claim for refund with the department.

As added by P.L.277-1993(ss), SEC.44.

IC 6-6-2.5-70Inspections Sec. 70. (a) The department may conduct inspections for and enforce the laws concerning coloration of diesel fuel violations, sulfur content violations, marker violations, and shipping paper violations at any place where taxable fuel is or may be loaded in transport vehicles, produced, or stored. These places may include, but are not limited to:

(1) a terminal;

(2) a fuel storage facility that is not a terminal;

(3) a retail fuel facility; or

(4) a designated inspection site (defined as any state highway inspection station, weigh station, agricultural inspection station, mobile station, or other location designated by the commissioner).

(b) Inspections to determine violations under this chapter and enforcement of this chapter may be conducted by the state police department, agents of the department, Indiana state police motor carrier inspectors (in addition to their duties defined under IC 10-11-2-26), and any other law enforcement officer through procedures established by the department. Agents of the department have the same power and authority provided to authorized personnel under IC 16-44-2-11 and IC 16-44-2-12.

(c) The department may determine and approve all equipment used to test dyes, markers, and the chemical composition of fuel inspected under this chapter.

As added by P.L.18-1994, SEC.37. Amended by P.L.85-1995, SEC.29; P.L.2-2003, SEC.37.

IC 6-6-2.5-71Sealing special fuel or kerosene pump; compliance; penalty Sec. 71. (a) The department or any agent of the department may seal a special fuel or kerosene pump or impound a vehicle that does not have a sealable pump and post a sign that states that transactions involving special fuel or kerosene may not be made at the person's location if any of the following occur:

(1) A person becomes delinquent in payment of a tax due under this chapter.

(2) There is evidence that the revenue of the seller of fuel is in jeopardy.

(3) A person sells special fuel or kerosene without being licensed as required by this chapter.

(4) A person sells special fuel or kerosene without being bonded as required by the department.

(5) A person sells fuel that is taxable under this chapter without charging special fuel tax. However, this subdivision does not apply to a seller that acts in good faith and sells undyed special fuel to a person with a valid tax exemption certificate on file with the seller.

(6) A person sells dyed or marked special fuel for use in a motor vehicle operated on a public highway.

(b) A pump sealed under subsection (a) may remain sealed and a sign posted under subsection (a) may remain posted until all of the following have occurred:

(1) All reports are filed and the fees and taxes imposed under this chapter are paid in full.

(2) The interest and penalties imposed under this chapter, IC 6-8.1-10-1, and IC 6-8.1-10-2 (repealed) are paid in full.

(3) The license required by this chapter is obtained.

(4) The bond, letter of credit, or cash deposit required by this chapter is provided in the amount required by the department.

(c) A person that sells special fuel or kerosene in Indiana shall allow the agents of the department to seal gallonage totalizers of metered pumps operated by or on behalf of the person selling special fuel or kerosene.

(d) If the department determines that a person is selling special fuel or kerosene from a metered pump in Indiana without an effectively sealable gallonage totalizer, the seller, at the department's request, shall:

(1) adapt the pump to the department's specifications so that the pump may be effectively sealed; or

(2) replace, in whole or in part, the pump with a pump employing an effectively sealable gallonage totalizer, as determined by the department.

(e) A person's failure to comply with subsection (c) or (d) shall be considered evidence that the revenue of the person is in jeopardy.

(f) A person that, without authorization, removes, alters, defaces, or covers a sign that:

(1) is posted by the department; and

(2) states that transactions involving special fuel or kerosene may not be made at a location;

commits a Class B misdemeanor. However, the offense is a Level 6 felony if the offense is committed with intent to evade the tax imposed by this chapter or defraud the state.

(g) A person that sells special fuel or kerosene shall notify the department of the following:

(1) A broken fuel pump seal.

(2) A removed, altered, defaced, or covered sign that was posted by the department.

(h) A person that sells special fuel or kerosene that fails to notify the department, as required by subsection (g), after:

(1) a fuel pump seal is broken; or

(2) a sign that was posted by the department is removed, altered, defaced, or covered;

commits a Level 6 felony.

As added by P.L.85-1995, SEC.30. Amended by P.L.158-2013, SEC.100.

IC 6-6-2.5-72Reports; electronic filing Sec. 72. The administrator may require that all reports required to be filed under section 56.5, 57, or 60 of this chapter must be filed in an electronic format prescribed by the administrator.

As added by P.L.176-2006, SEC.4.

IC 6-6-3Chapter 3. RepealedRepealed by Acts 1980, P.L.51, SEC.66.

IC 6-6-4Chapter 4. RepealedRepealed by Acts 1982, P.L.59, SEC.7.

IC 6-6-4.1Chapter 4.1. Motor Carrier Fuel Tax

6-6-4.1-1Definitions 6-6-4.1-2Applicability of chapter 6-6-4.1-3Leased motor vehicles 6-6-4.1-4Imposition of tax; rates; computation of amount of fuel consumed in Indiana 6-6-4.1-4.3Repealed 6-6-4.1-4.5Repealed 6-6-4.1-4.7Certification for proportional use credit 6-6-4.1-4.8Claim for proportional use credit 6-6-4.1-5Disposition of tax revenue 6-6-4.1-6Credits against tax 6-6-4.1-7Computation of credits; refunds; interest 6-6-4.1-7.1Class action for refund of tax; prerequisites 6-6-4.1-8Bond, letter of credit, or cash deposit; furnishing; release from liability; retaining cash deposit 6-6-4.1-9Presumption of consumption rate 6-6-4.1-10Quarterly reports; exemptions 6-6-4.1-11Pooled services; joint reports; calculation of tax; contents of reports 6-6-4.1-12Annual permit, cab card, and emblem; exemption 6-6-4.1-13Special trip permits; repair and maintenance permits 6-6-4.1-14Reciprocity 6-6-4.1-14.5Agreements; limitations; transmittals 6-6-4.1-15Enforcement 6-6-4.1-16Agreements for cooperative audit of reports and returns 6-6-4.1-17Suspension or revocation of permit or temporary authorization; reinstatement 6-6-4.1-18Violations; penalties 6-6-4.1-19Impoundment of commercial motor vehicle; release of cargo 6-6-4.1-20Failure to keep books and records; penalty 6-6-4.1-21Repealed 6-6-4.1-22Carriers; interest on nonpayment 6-6-4.1-23Penalty 6-6-4.1-24Proposed assessment; protest; hearing 6-6-4.1-25Registration or licensure of vehicle required to obtain annual motor carrier fuel tax permit or license; proof of issuance of permit or license 6-6-4.1-26Issuance of excess size or weight permit; proof of registration under this chapter or International Fuel Tax Agreement 6-6-4.1-27Information sharing; confidential information

IC 6-6-4.1-1Definitions Sec. 1. As used in this chapter:

(a) "Carrier" means a person who operates or causes to be operated a commercial motor vehicle on any highway in Indiana.

(b) "Commercial motor vehicle" means a vehicle which is listed in section 2(a) of this chapter and which is not excluded from the application of this chapter under section 2(b) of this chapter.

(c) "Commissioner" means the commissioner of the Indiana department of state revenue.

(d) "Declared gross weight" means the weight at which a motor vehicle is registered with:

(1) the bureau of motor vehicles; or

(2) a state other than Indiana.

(e) "Department" means the Indiana department of state revenue.

(f) "Diesel gallon equivalent" means the amount of an alternative fuel or natural gas product that produces the same number of British thermal units of energy as a gallon of diesel fuel.

(g) "Gasoline gallon equivalent" means the amount of an alternative fuel or natural gas product that produces the same number of British thermal units of energy as a gallon of gasoline.

(h) "Highway" means the entire width between the boundary lines of every publicly maintained way that is open in any part to the use of the public for purposes of vehicular travel.

(i) "Motor fuel" means gasoline (as defined in IC 6-6-1.1), special fuel (as defined in IC 6-6-2.5), and alternative fuel (as defined in IC 6-6-2.5).

(j) "Quarter" means calendar quarter.

(k) "Motor vehicle" has the meaning set forth in IC 6-6-1.1-103.

(l) "Recreational vehicle" means motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure. A vehicle is not a recreational vehicle if the vehicle is used in connection with a business.

(m) "Alternative fuel" has the meaning set forth in IC 6-6-2.5-1.

(n) "Special fuel" has the meaning set forth in IC 6-6-2.5-22.

(o) "Natural gas product" has the meaning set forth in IC 6-6-2.5-16.5.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.73-1986, SEC.16; P.L.96-1989, SEC.8; P.L.60-1990, SEC.3; P.L.277-1993(ss), SEC.45; P.L.277-2013, SEC.11; P.L.218-2017, SEC.45; P.L.185-2018, SEC.6; P.L.234-2019, SEC.22.

IC 6-6-4.1-2Applicability of chapter Sec. 2. (a) Except as provided in subsection (b), this chapter applies to each:

(1) road tractor;

(2) tractor truck;

(3) truck having more than two (2) axles;

(4) truck having a gross weight or a declared gross weight greater than twenty-six thousand (26,000) pounds;

(5) vehicle used in combination if the gross weight or the declared gross weight of the combination is greater than twenty-six thousand (26,000) pounds; and

(6) qualified motor vehicle that is subject to the tax reporting requirements of the International Fuel Tax Agreement;

that is propelled by motor fuel.

(b) This chapter does not apply to the following:

(1) A vehicle operated by:

(A) this state;

(B) a political subdivision (as defined in IC 36-1-2-13);

(C) the United States; or

(D) an agency of states and the United States, or of two (2) or more states, in which this state participates.

(2) Trucks, trailers, or semitrailers and tractors that are registered as farm trucks, farm trailers, or farm semitrailers and tractors under IC 9-18 (before its expiration), IC 9-18.1-7, or a similar law of another state.

(3) A bus (as defined in IC 9-13-2-17).

(4) A vehicle described in subsection (a)(1) through (a)(3) when the vehicle is displaying a dealer registration plate.

(5) A recreational vehicle.

(6) A pickup truck that:

(A) is modified to include a third free rotating axle;

(B) has a gross weight not greater than twenty-six thousand (26,000) pounds; and

(C) is operated solely for personal use and not for commercial use.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.89-1983, SEC.1; P.L.77-1985, SEC.26; P.L.97-1987, SEC.37; P.L.8-1988, SEC.3; P.L.96-1989, SEC.9; P.L.60-1990, SEC.4; P.L.2-1991, SEC.42; P.L.24-2007, SEC.1; P.L.45-2011, SEC.1; P.L.215-2014, SEC.1; P.L.198-2016, SEC.28; P.L.211-2023, SEC.3.

IC 6-6-4.1-3Leased motor vehicles Sec. 3. (a) Except as otherwise provided in this section, every commercial motor vehicle leased to a carrier is subject to this chapter to the same extent and in the same manner as commercial motor vehicles owned by the carrier.

(b) Except as provided in subsection (f), the department may consider a lessor of commercial motor vehicles to be a carrier with respect to the operation of the vehicles it leases to others if the lessor:

(1) supplies or pays for the motor fuel consumed by the vehicles; or

(2) makes rental or other charges calculated to include the cost of the motor fuel consumed by the vehicles.

(c) The department shall provide, by rules adopted under IC 4-22-2, for the presentation by a lessor to other carriers and to the public of evidence and identification of carrier status determined under this section.

(d) Any commercial motor vehicles leased from a lessor who is considered a carrier under subsection (b) may be excluded from the lessee's reports and liabilities under this chapter.

(e) This section governs the primary liability under this chapter of lessors and lessees of commercial motor vehicles. If a lessor or lessee who is primarily liable fails, in whole or in part, to discharge the lessor's or lessee's liability, the lessor or lessee and the other lessor or lessee who is a party to the lease transaction are responsible for compliance with this chapter and are jointly and severally liable for payment of the tax. However, the aggregate taxes collected by the department may not exceed the amount of tax that would have resulted from the operation of the leased vehicle by the owner, plus any applicable costs and penalties.

(f) This subsection does not apply if the motor vehicle is leased to the same person under two (2) or more consecutive leases. If a motor vehicle is leased for less than thirty (30) days, the holder of an annual permit issued under section 12 of this chapter for the motor vehicle is liable for the motor carrier fuel tax.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.96-1989, SEC.10.

IC 6-6-4.1-4Imposition of tax; rates; computation of amount of fuel consumed in Indiana Sec. 4. (a) A tax is imposed on the consumption of motor fuel by a carrier in its operations on highways in Indiana. The rate of this tax is determined as follows:

(1) When imposed upon the consumption of special fuel (other than an alternative fuel or a natural gas product), the tax rate is the same rate per gallon as the rate per gallon at which special fuel is taxed under IC 6-6-2.5.

(2) When imposed upon the consumption of gasoline, the tax rate is the same rate per gallon as the rate per gallon at which gasoline is taxed under IC 6-6-1.1.

(3) When imposed upon the consumption of a natural gas product or an alternative fuel, the tax rate is one (1) of the following:

(A) The same rate per diesel gallon equivalent as the rate per gallon at which special fuel is taxed under IC 6-6-2.5, in the case of liquid natural gas.

(B) The same rate per gasoline gallon equivalent at which special fuel is taxed under IC 6-6-2.5, in the case of compressed natural gas or an alternative fuel commonly or commercially known or sold as butane or propane.

(C) The same rate per gallon equivalent at which special fuel is taxed under IC 6-6-2.5, in the case of an alternative fuel not commonly known or sold as butane or propane, divided by:

(i) the carrier's average miles per gallon for all vehicles in the fleet that consume motor fuels described in subdivision (1), if the fleet has both vehicles that consume motor fuels described in subdivision (1) and vehicles that consume alternative fuels that are not commonly or commercially known or sold as butane or propane; or

(ii) the carrier's average miles per gallon for the preceding quarter of Indiana based International Fuel Tax Agreement vehicles consuming motor fuels described in subdivision (1), if all vehicles in the fleet consume an alternative fuel that is not commonly or commercially known or sold as butane or propane.

The tax shall be paid quarterly by the carrier to the department on or before the last day of the month immediately following the quarter. The department shall publish on its website each quarter the average miles per gallon for the preceding quarter for a vehicle described in subdivision (3)(C)(ii).

(b) Except for an alternative fuel that is not commonly or commercially known or sold as butane or propane, the amount of motor fuel consumed by a carrier in its operations on highways in Indiana is the total amount of motor fuel consumed in its entire operations within and without Indiana, multiplied by a fraction. The numerator of the fraction is the total number of miles traveled on highways in Indiana, and the denominator of the fraction is the total number of miles traveled within and without Indiana.

(c) The amount of tax that a carrier shall pay for a particular quarter under this section equals the product of the tax rate in effect for that quarter, multiplied by:

(1) except as provided in subdivision (2), the amount of motor fuel consumed by the carrier in its operation on highways in Indiana and upon which the carrier has not paid tax imposed under IC 6-6-1.1, IC 6-6-2.5, or section 4.5 of this chapter (before its repeal); or

(2) the miles traveled on highways in Indiana for an alternative fuel that is not commonly or commercially known or sold as butane or propane.

(d) Subject to section 4.8 of this chapter, a carrier is entitled to a proportional use credit against the tax imposed under this section for that portion of motor fuel used to propel equipment mounted on a motor vehicle having a common reservoir for locomotion on the highway and the operation of the equipment, as determined by rule of the commissioner. An application for a proportional use credit under this subsection shall be filed on a quarterly basis on a form prescribed by the department.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.90-1983, SEC.1; P.L.77-1985, SEC.27; P.L.59-1985, SEC.16; P.L.97-1987, SEC.38; P.L.69-1991, SEC.12; P.L.277-1993(ss), SEC.46; P.L.85-1995, SEC.31; P.L.222-1999, SEC.3; P.L.277-2013, SEC.12; P.L.218-2017, SEC.46; P.L.185-2018, SEC.7; P.L.234-2019, SEC.23; P.L.211-2023, SEC.4.

IC 6-6-4.1-4.3RepealedAs added by P.L.218-2017, SEC.47. Repealed by P.L.185-2018, SEC.8.

IC 6-6-4.1-4.5RepealedAs added by P.L.59-1985, SEC.17. Amended by P.L.8-1988, SEC.4; P.L.69-1991, SEC.13; P.L.85-1995, SEC.32; P.L.222-1999, SEC.4; P.L.277-2013, SEC.13; P.L.218-2017, SEC.48. Repealed by P.L.185-2018, SEC.9.

IC 6-6-4.1-4.7Certification for proportional use credit Sec. 4.7. (a) This section applies only to a claim for a proportional use credit under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal) for taxes first due and payable after July 31, 1999.

(b) A carrier must be certified by the department in order to qualify for a proportional use credit under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal).

(c) A carrier must apply to the department for certification before April 1 of the first calendar year for which the proportional use credit will be claimed. An application for certification must be in writing upon forms prescribed by the department and must be signed and verified by the carrier. The department must include on all application forms suitable spaces for a listing of the following:

(1) The carrier's federal Social Security number or federal tax identification number.

(2) The address of the carrier's principal place of business.

(3) A description of each of the carrier's vehicles that has a common fuel supply reservoir for both locomotion on a public highway and a commercial purpose.

(4) The vehicle identification number for each vehicle described in subdivision (3).

(d) The department may certify that a carrier is qualified to claim a proportional use credit under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal) only upon payment by the carrier to the department of a one (1) time fee of seven dollars ($7). The carrier must pay the fee at the time the application for certification is submitted to the department. The department shall deposit the fee in the motor carrier regulation fund established by IC 8-2.1-23-1.

(e) A carrier must notify the department, on forms prescribed by the department, of any change of address by the carrier. The carrier must provide the notice not more than ten (10) days after the change of address. The department may revoke or suspend the certification of a carrier that fails to comply with this subsection.

(f) All certificates issued under this section are personal and may not be transferred.

(g) The department may require a carrier that has been issued a certificate under this section to submit additional information from time to time at reasonable intervals, as determined by the department.

(h) The department may adopt rules under IC 4-22-2 to carry out this section.

As added by P.L.222-1999, SEC.5. Amended by P.L.218-2017, SEC.49; P.L.185-2018, SEC.10.

IC 6-6-4.1-4.8Claim for proportional use credit Sec. 4.8. (a) This section applies only to a claim for a proportional use credit under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal) for taxes first due and payable after July 31, 1999.

(b) In order to obtain a proportional use credit against taxes imposed under section 4 of this chapter or section 4.5 of this chapter (before its repeal) a carrier must file a claim with the department. The claim must be submitted on a form prescribed by the department and must be filed with the quarterly return for the taxable period for which the proportional use credit is claimed. A carrier is not entitled to a proportional use credit under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal) unless the carrier:

(1) has paid in full the taxes to which the credit applies, except for an alternative fuel; and

(2) has filed a claim for the credit on or before the due date of the corresponding quarterly return for the taxable period for which the proportional use credit is claimed.

A credit approved under this section shall, subject to this section, be refunded to the carrier without interest.

(c) The department shall determine the aggregate amount of proportional use credits claimed under section 4(d) of this chapter or section 4.5(e) of this chapter (before its repeal) for each quarter. The department may approve the full amount of a proportional use credit claimed by a carrier if the aggregate amount of proportional use credits claimed for the quarter and for the fiscal year do not exceed the limits set forth in subsection (d). If the aggregate amount of proportional use credits claimed in a quarter exceeds the limits set forth in subsection (d), the department shall pay the claims for that quarter on a pro rata basis.

(d) The department may not approve more than three million five hundred thousand dollars ($3,500,000) of proportional use credits under this section in a state fiscal year. In addition, the amount of proportional use credits the department may approve under this section for a quarter may not exceed the following:

(1) For the quarter ending September 30 of a year, an amount equal to one million three hundred seventy-five thousand dollars ($1,375,000).

(2) For the quarter ending December 31 of a year, an amount equal to:

(A) six hundred twenty-five thousand dollars ($625,000); plus

(B) the greater of zero (0) or the result of:

(i) the limit determined for the previous quarter under this subsection; minus

(ii) the aggregate amount of claims approved for the previous quarter.

(3) For the quarter ending March 31 of a year, an amount equal to:

(A) six hundred twenty-five thousand dollars ($625,000); plus

(B) the greater of zero (0) or the result of:

(i) the limit determined for the previous quarter under this subsection; minus

(ii) the aggregate amount of claims approved for the previous quarter.

(4) For the quarter ending June 30 of a year, an amount equal to:

(A) eight hundred seventy-five thousand dollars ($875,000); plus

(B) the greater of zero (0) or the result of:

(i) the limit determined for the previous quarter under this subsection; minus

(ii) the aggregate amount of claims approved for the previous quarter.

(e) A carrier that is exempt from the quarterly reporting requirements under section 10 of this chapter must continue to file a quarterly return under this section to obtain a proportional use credit.

As added by P.L.222-1999, SEC.6. Amended by P.L.176-2006, SEC.5; P.L.218-2017, SEC.50; P.L.185-2018, SEC.11; P.L.211-2023, SEC.5.

IC 6-6-4.1-5Disposition of tax revenue Sec. 5. (a) The department shall deposit revenue collected under sections 4 and 12 of this chapter in the state highway fund (IC 8-23-9-54).

(b) The department shall deposit revenue collected under sections 4.3 and 4.5 of this chapter (before their repeal) as follows:

(1) Forty-seven and seventy-five hundredths percent (47.75%) in the state highway fund (IC 8-23-9-54).

(2) Forty-seven and seventy-five hundredths percent (47.75%) in the motor vehicle highway account (IC 8-14-1).

(3) Four and five-tenths percent (4.5%) in the motor carrier regulation fund administered by the department.

(c) The department shall deposit revenue collected under section 13 of this chapter as follows:

(1) Thirty-five percent (35%) in the motor vehicle highway account (IC 8-14-1).

(2) Sixty-five percent (65%) in the state highway fund (IC 8-23-9-54).

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.59-1985, SEC.18; P.L.8-1988, SEC.5; P.L.18-1990, SEC.23; P.L.218-2017, SEC.51; P.L.185-2018, SEC.12.

IC 6-6-4.1-6Credits against tax Sec. 6. (a) A carrier is entitled to a credit against the tax imposed under section 4 of this chapter if the carrier, or a lessor operating under the carrier's annual permit, has:

(1) paid the tax imposed under IC 6-6-1.1 or IC 6-6-2.5 and section 4.5 of this chapter (before its repeal) on motor fuel purchased in Indiana;

(2) consumed the motor fuel outside Indiana; and

(3) paid a gasoline, special fuel, or road tax with respect to the fuel in one (1) or more other states or jurisdictions.

(b) The amount of credit for a quarter is equal to the tax paid under IC 6-6-1.1, IC 6-6-2.5, and section 4.5 of this chapter (before its repeal) on motor fuel that:

(1) was purchased in Indiana;

(2) was consumed outside Indiana; and

(3) with respect to which the carrier paid a gasoline, special fuel, or road tax to another state or jurisdiction.

(c) To qualify for the credit, the carrier shall submit any evidence required by the department of payment of the tax imposed under IC 6-6-1.1 or IC 6-6-2.5 and section 4.5 of this chapter (before its repeal).

(d) A credit earned by a carrier in a particular quarter shall be applied against the carrier's tax liability under this chapter for that quarter before any credit carryover is applied against that liability under section 7 of this chapter.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.28; P.L.277-1993(ss), SEC.47; P.L.218-2017, SEC.52; P.L.185-2018, SEC.13.

IC 6-6-4.1-7Computation of credits; refunds; interest Sec. 7. (a) As used in this section, the credit of a carrier for any quarter is the amount by which the credit to which the carrier is entitled under section 6 of this chapter for that quarter exceeds the tax liability of the carrier under section 4 of this chapter and section 4.5 of this chapter (before its repeal) for that quarter.

(b) The credit for any quarter shall be allowed as a credit against the tax for which the carrier would otherwise be liable in the quarter in which the credit accrued.

(c) A carrier is entitled to the refund of any credit not previously used to offset a tax liability or for any erroneously paid tax or penalty. To obtain the refund, the carrier shall submit to the department a properly completed application in accordance with rules adopted by the department under IC 4-22-2. The application must be submitted within three (3) years after the end of:

(1) the quarter in which the credit accrued; or

(2) the calendar year that contains the taxable period in which the tax or penalty was erroneously paid.

Along with the application, the carrier shall submit any evidence required by the department and any reports required by the department under this chapter.

(d) The department shall pay interest on any part of a refund that is not made within ninety (90) days after the date on which all of the following have been completed:

(1) The filing of:

(A) the properly completed application for refund; or

(B) the quarterly return on which a refund is claimed.

(2) The submission of any evidence required by the department of payment of the tax imposed under IC 6-6-1.1 or IC 6-6-2.5 and section 4.5 of this chapter (before its repeal).

(3) The submission of reports required by the department under this chapter.

(4) The furnishing of a surety bond, letter of credit, or cash deposit under section 8 of this chapter.

(e) The department shall pay interest at the rate established under IC 6-8.1-9 from the date of:

(1) the refund application;

(2) the due date of a timely filed quarterly return on which a refund is claimed; or

(3) the filing date of a quarterly return on which a refund is claimed, if the quarterly refund is filed after the due date of the quarterly return;

to a date determined by the department that does not precede the date on which the refund is made by more than thirty (30) days.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.29; P.L.97-1987, SEC.39; P.L.96-1989, SEC.11; P.L.69-1991, SEC.14; P.L.277-1993(ss), SEC.48; P.L.218-2017, SEC.53; P.L.185-2018, SEC.14.

IC 6-6-4.1-7.1Class action for refund of tax; prerequisites Sec. 7.1. A class action for the refund of a tax subject to this chapter may not be maintained in any court, including the Indiana tax court, on behalf of any person who has not complied with the requirements of section 7 of this chapter before the certification of a class. A refund of taxes to a member of a class in a class action is subject to the time limits set forth in section 7 of this chapter based on the time the class member filed the required claim for refund with the department.

As added by P.L.60-1990, SEC.5. Amended by P.L.1-1991, SEC.66.

IC 6-6-4.1-8Bond, letter of credit, or cash deposit; furnishing; release from liability; retaining cash deposit Sec. 8. (a) A carrier shall, at the request of the department and for cause, furnish a surety bond, letter of credit, or cash deposit to the department in order to ensure payment of the taxes imposed under this chapter and to permit the department to make a refund to the carrier under section 7 of this chapter. The bond, letter of credit, or cash deposit must be:

(1) in an amount of not less than two (2) times the amount of tax due or refund requested under this chapter for the reporting period applicable to the carrier, as determined by the department;

(2) payable to the state;

(3) conditioned that the carrier will pay all taxes for which the carrier is or becomes liable under this chapter from the date of the bond, letter of credit, or cash deposit to thirty (30) days after either the carrier, the surety, or the financial institution notifies the department that the bond, letter of credit, or cash deposit has been cancelled; and

(4) executed by a surety authorized under Indiana law in the case of a bond or by a financial institution approved by the commissioner in the case of a letter of credit.

(b) Sixty (60) days after making a written request for release to the commissioner, the surety of a bond furnished by a carrier is released from any liability to the state accruing on the bond after the sixty (60) day period. The release does not affect any liability accruing before the expiration of the sixty (60) day period.

(c) One hundred eighty (180) days after making a written request for release to the commissioner, the financial institution issuing the letter of credit for a carrier is released from any liability accruing on the letter of credit.

(d) The commissioner shall promptly notify the carrier furnishing the bond or letter of credit that a release has been requested. Unless the carrier furnishes a new bond within the sixty (60) day period or a new letter of credit within the one hundred eighty (180) day period, the commissioner shall cancel the carrier's annual permit.

(e) Sixty (60) days after making a written request for release to the commissioner, the cash deposit provided by a carrier is cancelled as security for any obligation accruing after the expiration of the sixty (60) day period. However, the administrator may retain all or part of the cash deposit for up to three (3) years and one (1) day as security for any obligation accruing before the effective date of the cancellation. Any part of the deposit that is not retained by the commissioner shall be released to the carrier. Before the expiration of the sixty (60) day period, the carrier must provide a bond or letter of credit or the commissioner shall cancel the carrier's annual permit.

(f) The department has cause for requiring security from a carrier under this section if:

(1) a carrier fails to file timely reports required by this chapter;

(2) a carrier fails to remit the tax imposed by this chapter; or

(3) an audit of a carrier's operations under this chapter causes the department to reasonably believe that tax collection or remittance required by this chapter is in jeopardy.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.30; P.L.97-1987, SEC.40; P.L.60-1990, SEC.6.

IC 6-6-4.1-9Presumption of consumption rate Sec. 9. (a) Except as provided in subsection (b), if there are no records showing the number of miles actually operated per gallon of motor fuel and if section 11(c) of this chapter is inapplicable, it is presumed for purposes of this chapter that one (1) gallon of motor fuel is consumed for every four (4) miles traveled.

(b) This section does not apply to an alternative fuel that is not commonly or commercially known or sold as butane or propane.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.211-2023, SEC.6.

IC 6-6-4.1-10Quarterly reports; exemptions Sec. 10. (a) Except as provided in section 13 of this chapter, each carrier subject to the tax imposed under this chapter shall submit to the department such quarterly reports of the operations of commercial motor vehicles giving rise to the carrier's tax liability as the department may require. The carrier shall submit each quarterly report required under this subsection on or before the last day of the month immediately following that quarter.

(b) Subject to the restrictions of subsection (d) and section 4.8 of this chapter, a carrier is exempt from the quarterly reporting requirements of this section if all or substantially all of:

(1) the mileage of the carrier in the previous calendar year was the result of operations in Indiana; and

(2) the motor fuel used in the operations of the carrier in the previous calendar year was purchased in Indiana and the carrier paid the tax imposed under IC 6-6-1.1 or IC 6-6-2.5.

(c) A carrier is required to report and to pay the tax imposed by this chapter only on alternative fuel if:

(1) all or substantially all of the mileage of the carrier in a quarter is the result of operations in Indiana; and

(2) the motor fuel used for operations during the quarter was purchased in Indiana, some of which was alternative fuel.

(d) A carrier that is exempt under subsection (b) or meets the requirements of subsection (c) is subject to section 20 of this chapter and is required to keep books and records as required by IC 6-8.1-5 regarding the tax imposed under section 4 of this chapter.

(e) Each carrier shall submit to the department any other reports required by the department.

(f) All reports required to be filed under this chapter must be filed in an electronic format prescribed by the department.

(g) All taxes required to be remitted under this chapter must be remitted in an electronic format prescribed by the department.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.45-2011, SEC.2; P.L.211-2023, SEC.7.

IC 6-6-4.1-11Pooled services; joint reports; calculation of tax; contents of reports Sec. 11. (a) In lieu of filing individual reports under section 10 of this chapter, two (2) or more carriers regularly engaged in the transportation of passengers on through buses and through tickets in pooled service may make joint reports of their operations in Indiana. The tax imposed by this chapter shall be calculated on the basis of the joint reports as though the carriers were a single carrier. The carriers making the reports are jointly and severally liable for the tax.

(b) Joint reports made under subsection (a) must show the total number of miles traveled in Indiana and the total number of gallons of motor fuel purchased in Indiana by the reporting carriers. Credits or refunds to which the carriers making a joint return are entitled are not allowed as credits or refunds to any other carrier. Carriers filing joint reports shall permit all carriers engaged in pooled operations with them in Indiana to join them in filing joint reports.

(c) For purposes of this chapter, there is a rebuttable presumption that the vehicles of carriers filing joint reports consumed one (1) gallon of motor fuel for every six (6) miles traveled.

As added by Acts 1982, P.L.59, SEC.1.

IC 6-6-4.1-12Annual permit, cab card, and emblem; exemption Sec. 12. (a) Except as provided in subsection (h) and as authorized under section 13 of this chapter, a carrier may operate a commercial motor vehicle upon the highways in Indiana only if the carrier has been issued an annual permit, cab card, and emblem under this section.

(b) Except as provided in subsection (h), the department shall issue:

(1) an annual permit; and

(2) a cab card and an emblem for each commercial motor vehicle that will be operated by the carrier upon the highways in Indiana;

to a carrier who applies for an annual permit and pays to the department an annual permit fee of twenty-five dollars ($25) not later than September 1 of the year before the annual permit is effective under subsection (c).

(c) Except as provided in subsection (h), the annual permit, cab card, and emblem are effective from January 1 of each year through December 31 of the same year. The department may extend the expiration date of the annual permit, cab card, and emblem for no more than sixty (60) days. The annual permit, each cab card, and each emblem issued to a carrier remain the property of this state and may be suspended or revoked by the department for any violation of this chapter or of the rules concerning this chapter adopted by the department under IC 4-22-2.

(d) Except as provided in subsection (h), as evidence of compliance with this section, and for the purpose of enforcement, a carrier shall display on each commercial motor vehicle an emblem when the vehicle is being operated by the carrier in Indiana. The carrier shall affix the emblem to the vehicle in the location designated by the department. The carrier shall display in each vehicle the cab card issued by the department. The carrier shall retain the original annual permit at the address shown on the annual permit. During the month of December, the carrier shall display the cab card and emblem that are valid through December 31 or a full year cab card and emblem issued to the carrier for the ensuing twelve (12) months. If the department grants an extension of the expiration date, the carrier shall continue to display the cab card and emblem upon which the extension was granted.

(e) If a commercial motor vehicle is operated by more than one (1) carrier, as evidence of compliance with this section and for purposes of enforcement each carrier shall display in the commercial motor vehicle a reproduced copy of the carrier's annual permit when the vehicle is being operated by the carrier in Indiana.

(f) A person who fails to display an emblem required by this section on a commercial motor vehicle, does not have proof in the vehicle that the annual permit has been obtained, and operates that vehicle on an Indiana highway commits a Class C infraction. Each day of operation without an emblem constitutes a separate infraction. Notwithstanding IC 34-28-5-4, a judgment of not less than one hundred dollars ($100) shall be entered for each Class C infraction under this subsection.

(g) A person who displays an altered, false, or fictitious cab card required by this section in a commercial motor vehicle, does not have proof in the vehicle that the annual permit has been obtained, and operates that vehicle on an Indiana highway commits a Class C infraction. Each day of operation with an altered, false, or fictitious cab card constitutes a separate infraction.

(h) A carrier is exempt from the requirements under subsections (a) through (d) if the carrier is exempt from the quarterly reporting requirement under section 10(b) of this chapter.

(i) A carrier that meets the requirements of section 10(c) of this chapter shall display an emblem on a vehicle that consumes alternative fuel.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.31; P.L.8-1988, SEC.6; P.L.60-1990, SEC.7; P.L.69-1991, SEC.15; P.L.1-1998, SEC.82; P.L.182-2009(ss), SEC.235; P.L.211-2023, SEC.8.

IC 6-6-4.1-13Special trip permits; repair and maintenance permits Sec. 13. (a) A carrier may, in lieu of paying the tax imposed under this chapter that would otherwise result from the operation of a particular commercial motor vehicle, obtain from the department a trip permit authorizing the carrier to operate the commercial motor vehicle for a period of five (5) consecutive days. The department shall specify the beginning and ending days on the face of the permit. The fee for a trip permit for each commercial motor vehicle is fifty dollars ($50). The report otherwise required under section 10 of this chapter is not required with respect to a vehicle for which a trip permit has been issued under this subsection.

(b) The department may issue a temporary written authorization if unforeseen or uncertain circumstances require operations by a carrier of a commercial motor vehicle for which neither a trip permit described in subsection (a) nor an annual permit described in section 12 of this chapter has been obtained. A temporary authorization may be issued only if the department finds that undue hardship would result if operation under a temporary authorization were prohibited. A carrier who receives a temporary authorization shall:

(1) pay the trip permit fee at the time the temporary authorization is issued; or

(2) subsequently apply for and obtain an annual permit.

(c) A carrier may obtain an International Fuel Tax Agreement (IFTA) repair and maintenance permit to:

(1) travel from another state into Indiana to repair or maintain any of the carrier's motor vehicles, semitrailers (as defined in IC 9-13-2-164), or trailers (as defined in IC 9-13-2-184); and

(2) return to the same state after the repair or maintenance is completed.

The permit allows the travel described in this section. In addition to any other fee established in this chapter, and instead of paying the quarterly motor fuel tax imposed under this chapter, a carrier may pay an annual IFTA repair and maintenance fee of forty dollars ($40) and receive an IFTA annual repair and maintenance permit. The IFTA annual repair and maintenance permit and fee applies to all of the motor vehicles operated by a carrier. The IFTA annual repair and maintenance permit is not transferable to another carrier. A carrier may not carry cargo or passengers under the IFTA annual repair and maintenance permit. All fees collected under this subsection shall be deposited in the motor carrier regulation fund (IC 8-2.1-23). The report otherwise required under section 10 of this chapter is not required with respect to a motor vehicle that is operated under an IFTA annual repair and maintenance permit.

(d) A carrier may obtain an International Registration Plan (IRP) repair and maintenance permit to:

(1) travel from another state into Indiana to repair or maintain any of the carrier's motor vehicles, semitrailers (as defined in IC 9-13-2-164), or trailers (as defined in IC 9-13-2-184); and

(2) return to the same state after the repair or maintenance is completed.

The permit allows the travel described in this section. In addition to any other fee established in this chapter, and instead of paying apportioned or temporary IRP fees under IC 9-18.1, a carrier may pay an annual IRP repair and maintenance fee of forty dollars ($40) and receive an IRP annual repair and maintenance permit. The IRP annual repair and maintenance permit and fee apply to all of the motor vehicles operated by a carrier. The IRP annual repair and maintenance permit is not transferable to another carrier. A carrier may not carry cargo or passengers under the IRP annual repair and maintenance permit. All fees collected under this subsection shall be deposited in the motor carrier regulation fund (IC 8-2.1-23).

(e) A person may obtain a repair and maintenance permit to:

(1) move an unregistered off-road vehicle from a quarry or mine to a maintenance or repair facility; and

(2) return the unregistered off-road vehicle to its place of origin.

The fee for the permit is forty dollars ($40). The permit is an annual permit and applies to all unregistered off-road vehicles from the same quarry or mine.

(f) A carrier may obtain a repair, maintenance, and relocation permit to:

(1) move a yard tractor from a terminal or loading or spotting facility to:

(A) a maintenance or repair facility; or

(B) another terminal or loading or spotting facility; and

(2) return the yard tractor to its place of origin.

The fee for the permit is forty dollars ($40). The permit is an annual permit and applies to all yard tractors operated by the carrier. The permit is not transferable to another carrier. A carrier may not carry cargo or transport or draw a semitrailer or other vehicle under the permit. A carrier may operate a yard tractor under the permit instead of paying the tax imposed under this chapter. As used in this subsection, "yard tractor" refers to a tractor that is used to move semitrailers around a terminal or a loading or spotting facility. The term also refers to a tractor that is operated on a highway with a permit issued under this section if the tractor is ordinarily used to move semitrailers around a terminal or spotting facility.

(g) The department shall establish procedures, by rules adopted under IC 4-22-2, for:

(1) the issuance and use of trip permits, temporary authorizations, and repair and maintenance permits; and

(2) the display in commercial motor vehicles of evidence of compliance with this chapter.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.32; P.L.59-1985, SEC.19; P.L.46-1994, SEC.1; P.L.88-1998, SEC.1; P.L.150-2001, SEC.1; P.L.182-2009(ss), SEC.236; P.L.262-2013, SEC.1; P.L.198-2016, SEC.29; P.L.257-2017, SEC.9.

IC 6-6-4.1-14Reciprocity Sec. 14. (a) The commissioner or, with the commissioner's approval, the reciprocity commission created by IC 9-28-4 may enter into and become a member of the International Fuel Tax Agreement or other reciprocal agreements with the appropriate official or officials from any other state or jurisdiction under which all or any part of the requirements of the Indiana Administrative Code are waived with respect to motor carriers that use in Indiana motor fuel upon which tax has been paid to the other state or jurisdiction. An agreement may be made under this subsection only with a state or jurisdiction that grants equivalent privileges with respect to motor fuel consumed in the other state or jurisdiction and on which a tax has been paid to this state.

(b) The commissioner or, with the commissioner's approval, the reciprocity commission created by IC 9-28-4 may enter into the International Registration Plan, the International Fuel Tax Agreement, or other reciprocal agreements with the appropriate official or officials of any other state or jurisdiction to exempt commercial motor vehicles licensed in the other state or jurisdiction from any of the requirements that would otherwise be imposed by this chapter, including the requirements for trip permits, temporary authorizations, repair and maintenance permits, and annual permits and the payment of fees for permits and authorizations. An agreement may be made under this subsection only with a state or jurisdiction that grants equivalent exemptions to motor vehicles licensed in Indiana.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.2-1991, SEC.43; P.L.46-1994, SEC.2; P.L.129-2001, SEC.11.

IC 6-6-4.1-14.5Agreements; limitations; transmittals Sec. 14.5. (a) The International Fuel Tax Agreement and any other agreement authorized under IC 6-6, IC 6-8.1, or IC 9-28 shall be limited to the following matters:

(1) Determining the base state for users.

(2) Specifying records requirements for users.

(3) Specifying audit procedures.

(4) Exchanging information.

(5) Defining persons eligible for tax licensing.

(6) Defining qualified motor vehicles.

(7) Determining if bonding is required.

(8) Specifying reporting requirements and periods, including the following:

(A) Establishing uniform penalties and interest rates for late reporting.

(B) Determining methods for collecting and forwarding motor fuel taxes, special fuel taxes, and penalties to another state or jurisdiction.

(9) Any other provisions designed to facilitate the administration of the agreement.

(b) The International Fuel Tax Agreement and any other agreement authorized under IC 6-6, IC 6-8.1, or IC 9-28 do not limit the authority of the general assembly to do any of the following:

(1) Determine whether to impose a tax.

(2) Determine tax rates.

(3) Define tax exemptions or deductions.

(4) Determine what constitutes a taxable event that results in the imposition of a tax.

(5) Determine any other matters related to the powers described in subdivisions (1) through (4).

(c) If:

(1) Indiana becomes a member of the International Fuel Tax Agreement;

(2) another member jurisdiction of the International Fuel Tax Agreement nets all of its International Fuel Tax Agreement returns received in a month according to the terms of the International Fuel Tax Agreement; and

(3) the overall result of the netting is that:

(A) more of the tax prescribed in section 4 of this chapter or section 4.5 of this chapter (before its repeal) was collected and will be transmitted to the department; or

(B) more of the tax prescribed in IC 6-6-1.1 or IC 6-6-2.5 must be refunded to carriers and will be transmitted from the department;

the transmittal described in subdivision (3) shall be done through the International Fuel Tax Agreement Clearinghouse or its successor program according to the terms of the International Fuel Tax Agreement.

(d) The funds received or requested as part of a transmittal described in subsection (c) shall be deposited or credited in the following manner:

(1) A transmittal to the department from a member jurisdiction of the International Fuel Tax Agreement of a collection of the tax prescribed in section 4 of this chapter or section 4.5 of this chapter (before its repeal) from carriers based in that member jurisdiction shall be deposited in the manner prescribed in section 5 of this chapter.

(2) A request to the department from a member jurisdiction of the International Fuel Tax Agreement of amounts of the tax prescribed in IC 6-6-1.1 or IC 6-6-2.5 to be refunded to carriers based in that member jurisdiction shall be credited in the manner prescribed in IC 6-6-1.1-803.

As added by P.L.129-2001, SEC.12. Amended by P.L.185-2018, SEC.15.

IC 6-6-4.1-15Enforcement Sec. 15. The commissioner shall enforce this chapter. The state police department shall assist the commissioner in the enforcement of this chapter.

As added by Acts 1982, P.L.59, SEC.1.

IC 6-6-4.1-16Agreements for cooperative audit of reports and returns Sec. 16. The department may enter into the International Fuel Tax Agreement or any other agreements for:

(1) furnishing information to and receiving information from other states, jurisdictions, or the International Fuel Tax Agreement clearinghouse, except as prohibited by IC 6-8.1-3-7; and

(2) the cooperative audit of the reports and returns of carriers with the appropriate authorities of any other state or jurisdiction that imposes a tax similar to the tax imposed under this chapter.

An officer or employee of another state or jurisdiction who audits reports and returns under an agreement made under this chapter or IC 6-8.1-3-12 is considered an authorized agent of this state for the purpose of the audit. A cooperative audit conducted under an agreement made under this section has the same effect as an audit conducted by the department.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.129-2001, SEC.13.

IC 6-6-4.1-17Suspension or revocation of permit or temporary authorization; reinstatement Sec. 17. If a carrier:

(1) fails to file a quarterly report required by this chapter;

(2) fails to pay the tax imposed under section 4 of this chapter or section 4.5 of this chapter (before its repeal);

(3) files a report after the date established under this chapter;

(4) with respect to a listed tax (as defined in IC 6-8.1-1-1), fails to file all tax returns or information reports or to pay all taxes, penalties, and interest;

(5) fails to file a form or report required under this chapter or the International Fuel Tax Agreement in an electronic format prescribed by the department; or

(6) fails to remit taxes under section 10(g) of this chapter;

the commissioner may suspend or revoke any annual permit, trip permit, temporary authorization, or repair and maintenance permit issued to the carrier. The commissioner may reinstate a permit or temporary authorization if a carrier files all required returns and reports and pays all outstanding liabilities.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985, SEC.33; P.L.59-1985, SEC.20; P.L.46-1994, SEC.3; P.L.45-2011, SEC.3; P.L.185-2018, SEC.16; P.L.211-2023, SEC.9.

IC 6-6-4.1-18Violations; penalties Sec. 18. (a) A person who knowingly makes a false statement or knowingly presents a fraudulent receipt for the sale of motor fuel for the purpose of:

(1) obtaining;

(2) attempting to obtain; or

(3) assisting any other person to obtain or attempt to obtain;

a credit, refund, or reduction of liability for the tax imposed under this chapter commits a Class C infraction.

(b) A carrier who knowingly violates this chapter, except for a violation covered by section 17 of this chapter, commits a Class C infraction.

As added by Acts 1982, P.L.59, SEC.1.

IC 6-6-4.1-19Impoundment of commercial motor vehicle; release of cargo Sec. 19. (a) The department or the state police department may impound a carrier's commercial motor vehicle if:

(1) the carrier has not obtained an annual permit, a trip permit, a temporary authorization, or a repair and maintenance permit (as required under sections 12 through 13 of this chapter) and the vehicle is operating on an Indiana highway;

(2) there is not an emblem displayed on the vehicle as required by section 12 of this chapter, the driver does not have proof in the vehicle that the annual permit has been obtained, and the vehicle is operating on an Indiana highway; or

(3) the cab card required under section 12 of this chapter is altered, false, or fictitious, the driver does not have proof in the vehicle that the annual permit has been obtained, and the vehicle is operating on an Indiana highway.

(b) To obtain possession of a vehicle impounded under this section, the carrier must first obtain:

(1) the annual permit, trip permit, temporary authorization, or repair and maintenance permit;

(2) a cab card; and

(3) an emblem for the vehicle;

as required by this chapter.

(c) Any cargo in an impounded vehicle shall be released, if the cargo is to be loaded into another commercial motor vehicle that is in compliance with this chapter.

As added by P.L.97-1987, SEC.41. Amended by P.L.8-1988, SEC.7; P.L.46-1994, SEC.4.

IC 6-6-4.1-20Failure to keep books and records; penalty Sec. 20. A person subject to the taxes imposed under section 4 of this chapter, section 4.3 of this chapter (before its repeal), and section 4.5 of this chapter (before its repeal) who fails to keep the books and records as required by IC 6-8.1-5 is subject to the penalty imposed under IC 6-8.1-10-4.

As added by P.L.97-1987, SEC.42. Amended by P.L.185-2018, SEC.17; P.L.215-2018(ss), SEC.3.

IC 6-6-4.1-21RepealedAs added by P.L.97-1987, SEC.43. Amended by P.L.218-2017, SEC.54; P.L.185-2018, SEC.18; P.L.215-2018(ss), SEC.4. Repealed by P.L.146-2020, SEC.35.

IC 6-6-4.1-22Carriers; interest on nonpayment Sec. 22. (a) If a carrier:

(1) fails to file a return for taxes due under this chapter;

(2) fails to pay the full amount of tax shown on the carrier's return by the due date for the return or the payment; or

(3) incurs a deficiency upon a determination by the department;

the carrier is subject to interest on the nonpayment.

(b) The interest for a failure described in subsection (a) is the rate of interest calculated under the interest provisions of the International Fuel Tax Agreement entered into by the department under IC 6-8.1-3-14.

As added by P.L.60-1990, SEC.8. Amended by P.L.129-2001, SEC.14; P.L.218-2017, SEC.55.

IC 6-6-4.1-23Penalty Sec. 23. (a) If a person:

(1) fails to file a return for the tax due under this chapter on or by the due date for the return;

(2) fails to pay the full amount of tax shown on the person's return on or by the due date for the payment; or

(3) incurs, upon examination by the department, a deficiency that is due to negligence;

the person is subject to a penalty.

(b) The penalty for a failure described in subsection (a) is the penalty calculated under the penalty provisions of the International Fuel Tax Agreement entered into by the department under IC 6-8.1-3-14.

As added by P.L.60-1990, SEC.9. Amended by P.L.1-1991, SEC.67; P.L.129-2001, SEC.15.

IC 6-6-4.1-24Proposed assessment; protest; hearing Sec. 24. (a) If the department believes that a person has not reported the proper amount of tax due, the department shall make a proposed assessment of the amount of the unpaid tax on the basis of the best information available to the department. The amount of the assessment is:

(1) considered a tax payment not made by the due date;

(2) subject to sections 22 and 23 of this chapter; and

(3) subject to IC 6-8.1-10 concerning the imposition of penalties and interest.

(b) The department shall issue notice and prescribe a period for payment and protest under the provisions of the International Fuel Tax Agreement entered into by the department pursuant to IC 6-8.1-3-14. The notice of proposed assessment is prima facie evidence that the department's claim for the unpaid tax is valid. The burden of proving that the proposed assessment is wrong rests with the person against whom the proposed assessment is made. If the person files a protest and requires a hearing on the protest, the department shall set the hearing at the department's earliest convenient time and shall notify the person by United States mail of the time, date, and location of the hearing. The department may hold the hearing at the location of the department's choice in Indiana.

As added by P.L.60-1990, SEC.10. Amended by P.L.129-2001, SEC.16.

IC 6-6-4.1-25Registration or licensure of vehicle required to obtain annual motor carrier fuel tax permit or license; proof of issuance of permit or license Sec. 25. This section applies whenever the owner is required by law to obtain an annual motor carrier fuel tax permit or a license under the International Fuel Tax Agreement under IC 6-8.1-3-14 from the department. The bureau of motor vehicles may not register or license a motor bus, truck, tractor, trailer, or semitrailer used or intended to be used by the owner for transportation of property until the owner furnishes the bureau of motor vehicles with reasonable proof that the owner has a permit or license issued by the department.

As added by P.L.69-1991, SEC.16. Amended by P.L.129-2001, SEC.17.

IC 6-6-4.1-26Issuance of excess size or weight permit; proof of registration under this chapter or International Fuel Tax Agreement Sec. 26. A special permit may not be issued under IC 9-20-6 to a carrier that is required to be registered under this chapter or under the International Fuel Tax Agreement under IC 6-8.1-3-14 until the carrier furnishes reasonable proof of registration:

(1) under this chapter or under the International Fuel Tax Agreement under IC 6-8.1-3-14; and

(2) under IC 9-18.1, if applicable.

As added by P.L.69-1991, SEC.17. Amended by P.L.1-1992, SEC.21; P.L.129-2001, SEC.18; P.L.257-2017, SEC.10.

IC 6-6-4.1-27Information sharing; confidential information Sec. 27. (a) Notwithstanding IC 6-8.1-7 and IC 9-14-12-1, the department, the bureau of motor vehicles, and the Indiana department of transportation shall share the information regarding motor carriers and motor vehicles that is reasonably necessary for the effective administration and enforcement of IC 6-6-4.1, IC 8-2.1, and IC 9.

(b) For purposes of this section, the department may not divulge information:

(1) regarding the motor carrier fuel taxes paid by specific motor carriers; or

(2) contained on quarterly tax reports of specific motor carriers.

The department may provide statistical information that does not identify the amount of tax paid by a specific carrier.

As added by P.L.69-1991, SEC.18. Amended by P.L.1-1992, SEC.22; P.L.198-2016, SEC.30.

IC 6-6-5Chapter 5. Motor Vehicle Excise Tax

6-6-5-0.1Application of certain amendments to chapter 6-6-5-0.5Application 6-6-5-1Definitions; applicability 6-6-5-2Vehicle excise tax; imposition; proof of payment of property tax not required; unpaid tax 6-6-5-3Valuation of vehicles 6-6-5-3.5Trailer registration; weight; fees 6-6-5-4Repealed 6-6-5-5Amount of tax credit against tax 6-6-5-5.1Repealed 6-6-5-5.2Credit for certain veterans who are not eligible for a property tax deduction 6-6-5-5.5Repealed 6-6-5-5.6Repealed 6-6-5-5.7Repealed 6-6-5-6Repealed 6-6-5-6.7"Passenger motor vehicle"; credits for rental vehicles; inspection of records 6-6-5-7Repealed 6-6-5-7.2Application of section; proration of tax; credits; refund for destroyed vehicle not replaced 6-6-5-7.4Refund of taxes paid for vehicle used in other state 6-6-5-7.5Repealed 6-6-5-7.7Tax credit or refund claims; inspection of records; improperly allowed claims 6-6-5-7.9Repealed 6-6-5-8Repealed 6-6-5-9Administration and collection of taxes; service charge; report; distribution of credited delinquent taxes 6-6-5-9.5Excise tax replacement disbursement; calculation and procedure; transfers from state general fund 6-6-5-10Collection procedures; duties of county officials; distribution 6-6-5-10Collection procedures; duties of county officials; distribution 6-6-5-10.4Verification of taxes collected for each taxing unit 6-6-5-10.5Municipal corporations; estimates of amounts to be distributed 6-6-5-11Registration of vehicle without payment of tax; offenses 6-6-5-12Repealed 6-6-5-13Agents for collection of tax 6-6-5-14Limitations on indebtedness of political or municipal corporations; effect 6-6-5-15Consolidation of taxes for taxpayers owning more than one vehicle 6-6-5-16Appropriation for administration