Corporate Close-Up: Indiana Budget Corporate Creates Credits and Amnesty

Indiana Gov., Mike Pence, signed H.B. 1001, the State Biennial Budget Bill, enacting a new corporate income tax credits and requiring a future tax amnesty program.

Effective July 1, 2015, Indiana’s economic development for a growing economy (EDGE) tax credit is amended to cap the amount of credits that may be awarded in the state for projects creating jobs in Indiana. The cap was set to $255 million dollars. The amendment expires as of July 1, 2016.

Effective Jan. 1, 2016, there will be a credit against the corporate income tax for a hospital that is equal to 10 percent of the property taxes paid in Indiana that year for property that is used as a hospital. The credit may not be carried forward or back to any other tax year and the credit cannot exceed the taxpayer’ income tax for the tax year.

Also, the Indiana code section for Settlement of Tax Liability Disputes was amended to include a provision that requires a tax amnesty program be established by the Indiana Department of State Revenue for up to an eight week period not to end later than Jan. 1, 2017. The amnesty program will cover taxes due and payable prior to Jan. 1, 2013. Taxpayers not eligible for the amnesty program include: 

  1. Taxpayers with liabilities resulting from the taxpayer’s failure to comply with the Indiana required adjustment of gross income from federal taxable income with regard to the tax imposed by Wagering Taxes or Taxation of Slot Machine Wagering; or

  2. If the taxpayer participated in any previous amnesty program as of Dec. 31, 2014 or under the Amnesty Program for unpaid use tax on claimed race horses.

For a list of other states with future tax amnesty programs, check out “Is Tax Amnesty a Trend for 2015

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