Various tax matters.

Authors: Senator Brandt Hershman, Senator Brent Steele

Co-authors: Senator John Broden, Senator Lonnie Randolph

Sponsors: Representative Todd Huston

Co-Sponsors: Representative Steven Stemler, Representative Terry Goodin, Representative Edward Clere

Advisors: Senator Brent Steele, Senator Lonnie Randolph, Senator Jon Ford, Senator Mark Messmer


Eliminates the World War I veteran property tax deduction for property taxes imposed for an assessment date after 2015. Provides that the equipment eligible for the double direct sales tax exemption includes material handling equipment purchased for the purpose of transporting materials into production activities from an onsite location. Provides that: (1) the cutting of steel bars into billets; and (2) the felling of trees for further use in production or for sale in the ordinary course of business; is to be treated as processing of tangible personal property for purposes of the double direct sales tax exemption for certain manufacturing activities. Eliminates the taxation of income that is attributed to a state that does not have an income tax (the "throwback rule"). Specifies that gross receipts derived from the sale of computer software shall be treated as sales of tangible personal property. Increases the maximum amount of the state income tax deduction for federal civil service annuity income to $8,000 for 2015 and $16,000 for 2016 and thereafter. Provides that the deduction is also available to a surviving spouse. Extends the sunset date of the venture capital investment tax credit and the Hoosier business investment tax credit from January 1, 2017, to January 1, 2021. Provides that upgrading or building passing lines or automated switches on a rail line is an eligible logistics investment for purposes of the Hoosier business investment tax credit. Provides that, in the case of the Hoosier business investment tax credit, the Indiana economic development corporation (IEDC) may under a written agreement accelerate payment (at a discounted amount) of any unused excess tax credit that certain taxpayers would otherwise be eligible to carry forward to a subsequent tax year. Provides that the total amount of such accelerated tax credits that the IEDC may approve may not exceed $17 million in a state fiscal year. Provides that after December 31, 2015, qualified investments for purposes of the community revitalization enhancement district tax credit do not include a taxpayer's expenditures made on property that is classified as residential for property tax purposes. Eliminates various add backs for purposes of determining Indiana adjusted gross income. Provides that business income is all income apportionable to the state under the Constitution of the United States. Eliminates various income tax deductions, exemptions, and credits. Broadens the add back to Indiana adjusted gross income related to intercompany interest expenses. Makes technical corrections and conforming amendments. Provides that in addition to any appropriations made in HEA 1001-2015, there is appropriated from the state general fund to the department of correction $9,000,000 in the state fiscal year beginning July 1, 2016, for community corrections programs.