2023 Corporate/Partnership/Fiduciary 
                   Administrative Highlights 
         
Add-Backs and Modifications 
• Tax Add-Back 
  The portion of wagering taxes required to be added back as a tax based on or measured by income is being 
  phased out. The percentage of taxes required to be added back for 2023 is 37.5%. 
   
• Net Operating Loss Reporting  
  o Add-back code 151 has been added for certain modifications required to be applied against a net operating 
    loss arising from a federal excess business loss. 
  o Add-back code 152 has been added for certain modifications required to be applied against a nonprofit's net 
    operating loss when the nonprofit is required to report losses separately for each trade or business. 
  o Add-back code 153 has been added for certain modifications required to be applied against a net operating 
    loss when the taxpayer also has excess inclusion income. 
  o IT-20NOL has been revised to align with the net operating loss reporting changes. 
     
• Specified Research or Experimental Expenditures Add-Back (3-digit code 154) 
  o A new add-back is available for specified research and experimental expenses required to be amortized for 
    federal income tax purposes. 
 
Credits 
• Mine Reclamation Tax Credit  (3-digit code 874) 
  o A new nonrefundable credit is available for qualified investments at a mine reclamation site.   
  o Credit must be approved by IEDC.   
  o The credit  for a taxable year cannot exceed 30% of the IEDC-approved qualified investment for the taxable 
    year or $5,000,000, whichever is less. 
 
Deductions 
• Broadband Expansion Grants Deduction (3-digit code 640) 
  o New deduction available to exempt certain amounts for providing or expanding access to broadband service 
    in Indiana. 
  o Must be claimed on IT-20. 
   
• Small Employer Health Insurance Premium Deduction (3-digit code 639) 
  A new deduction is available to allow the deduction for the portion of small employer health insurance 
  premiums that is disallowed for federal purposes as a result of claiming the credit under IRC section 45R. 
   
• Specified Research or Experimental Expenditures Deduction (3-digit code 641) 

   Rev. 09/28/2023                                                                    Page  1of  2
 

  A new deduction to permit a current-year deduction for specified research and experimental 
  expenses otherwise required to be amortized for federal tax purposes. 
 
Miscellaneous 
• Pass Through Entity Tax (PTET) for Tax Year 2023 and forward 
  o In 2023, P.L. 1-2023 was enacted to create a new Pass Through Entity Tax (PTET) for partnerships and S 
    corporations. The tax is imposed at the election of the partnership or S corporation.  
  o A new Schedule PTET has been added to report PTET and amounts of PTET passed through to partners and 
    shareholders. 
  o Reporting PTET has been added to IT-20S, IT-65, Schedule Composite, Schedule Composite-COR, IT-41 
    Schedule 1, IT-20S/IT-65 Schedule IN K-1 and IT-41 Schedule IN K-1. 
     
• Penalty for Failure to Include Nonresident Partners on Schedule Composite/Composite-COR  
  o The line to report the $500 penalty for failure to report all nonresident partners and shareholders on 
    composite schedules has been removed from IT-20S and IT-65.  
  o However, DOR will continue to assess the penalty if an S Corporation or partnership does not include all 
    nonresident shareholders or partners as otherwise required. 
   
• Nonprofit Agricultural Organization Health Coverage Tax 
  o An organization offering nonprofit agricultural organization insurance coverage may elect to be subject to 
    the adjusted gross income tax instead of the insurance premiums tax. 
  o Notice of election must be filed with the Indiana Department of Insurance and the Indiana Department of 
    Revenue on or before November 30 of a taxable year. 
     
• Repeal of Election to Be Taxed at the Partnership Level on Audit Adjustments 
  o The election for a partnership to be taxed at the partnership level on audit adjustments or amended returns 
    was repealed effective April 30, 2023. 
  o Schedule IN-EL has been removed.  
     
• Nonprofit Organization's Report  
  NP-20R replaces NP-20 and must be filed every five (5) years. 

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