INDIANA 2 02 2 IT-20 CORPORATE Income Tax Booklet
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SP 259
(R22 / 8-22)
Page 2 IT-20 Corporate Booklet 2022
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INDIANA IT-20 CORPORATE
Income Tax Booklet Year 2022 & Fiscal Years Ending in 2023
Contents
What’s New for 2022 ..............................................................................................................................................................4
General Information ..............................................................................................................................................................4
Introduction to Corporate Taxation ....................................................................................................................................4
General Filing Requirements ................................................................................................................................................4
Business Entities (in General) ...............................................................................................................................................5
General Filing Requirements for Form IT-20 ....................................................................................................................6
Mailing Options ....................................................................................................................................................................12
Instructions for Completing Form IT-20 ..........................................................................................................................12
Certification of Signatures and Authorization Section ...................................................................................................22
Mailing Options ....................................................................................................................................................................23
Specific Instructions for Completing IT-20, Schedule E ................................................................................................23
Specific Instructions for Completing Schedule IT-20PIC...............................................................................................24
Specific Instructions for Completing Form IT-20, Schedule F ......................................................................................24
Specific Instructions for Completing Schedule IT-2220 .................................................................................................25
Instructions for Schedule IT-20NOL .................................................................................................................................26
About Other Tax Liability Credits ......................................................................................................................................27
Special Reminders ................................................................................................................................................................32
Additional Information .......................................................................................................................................................33
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INTIME e-Services Portal Available Miscellaneous
INTIME, DOR’s e-services portal, available at intime.dor.in.gov, • The utility receipts tax has been repealed for receipts received
provides the following functionalities for IT-20 customers: after June 30, 2022.
• Make payments using a bank account or credit card • The utility services use tax has been repealed for billings
• View and respond to correspondence from DOR issued after June 30, 2022.
• Request and print return transcripts on-demand • Due to the reduction of the tax rate to 4.9%, Schedule M has
• Electronic delivery of correspondence been discontinued.
• Online customer service support through secure messaging
Increased Online Support for Tax Preparers
General Information
In addition to the functionality listed above, INTIME provides
increased access and functionality for tax preparers. INTIME Electronic Filing for Certain Corporations
provides the following functionality for tax preparers: For all taxable years ending after December 31, 2021, a corporation
• Gain access to view and manage multiple customers under with more than $1,000,000 in gross income for federal purposes
one login is required to file its IT-20 electronically. In addition, if the
• Ability to file returns, make payments, and view file and pay corporation files an amended return, the corporation must file the
history for clients amended return electronically if its federal gross income is greater
• Request electronic power of attorney (ePOA) authorization to than $1,000,000.
view customer accounts
• View and respond to correspondence for clients Annual Public Hearing
In accordance with the Indiana Taxpayer Bill of Rights, the Indiana
We strongly encourage all taxpayers to make payments and file Department of Revenue (DOR) will conduct an annual public
returns electronically whenever possible. INTIME also allows hearing in Indianapolis in June of 2023. Event details will be listed
customers to make estimated payments electronically with just a at www.in.gov/dor/news-media-and-publications/dor-public-
few clicks. events/annual-public-hearings. Please come and share feedback
or comments about how DOR can better administer Indiana tax
laws. If not able to attend, please submit feedback or comments in
What’s New for 2022 writing to: Indiana Department of Revenue, Commissioner’s Office
MS #101, 100 N. Senate Avenue, Indianapolis, IN 46204.
References to the Internal Revenue Code
The definition of adjusted gross income (AGI) is updated to
correspond to the federal definition of adjusted gross income
Introduction to Corporate Taxation
contained in the Internal Revenue Code (IRC). Any reference to
the IRC and subsequent regulations means the Internal Revenue Indiana has three kinds of corporate income tax:
Code of 1986, as amended and in effect on March 31, 2021. For a 1. A corporation doing business in Indiana is subject to the
complete summary of new legislation regarding taxation, please see Adjusted Gross Income (AGI) tax. Any corporation earning
the Synopsis of 2022 Legislation Affecting the Indiana Department income from Indiana sources is also subject to the AGI tax.
of Revenue at www.in.gov/dor/files/legislative-synopsis-2022.pdf. 2. Any entity transacting the business of a financial institution in
Indiana is subject to a Financial Institutions franchise tax (FIT).
Add-Backs Taxpayers subject to the FIT are exempt from the AGI tax.
• The portion of wagering taxes required to be added back as a 3. Any corporation providing utility services in Indiana is also
tax based on or measured by income is being phased out. See subject to the utility receipts tax (URT) for taxable receipts
page 14 for more information. received before July 1, 2022. Tax is imposed on the gross
receipts received from selling utility services. This tax in
Credits addition to any AGI tax liability.
• School Scholarship Tax Credit Contribution ceiling
increased. The total of allowable net contributions to the Indiana recognizes a variety of business organizations. How the
program has increased to $18.5 million for the program’s business is organized determines the type of tax return(s) it must
fiscal year of July 1, 2022 through June 30, 2023. file. It is important to know the tax-related requirements before
• A new credit (867) is available for qualifying donations to establishing operations in Indiana.
approved foster care organizations. See page 29 for more
details.
• A new credit (868) is available for the venture capital investment
credit for amounts provided to a Qualified Indiana Investment General Filing Requirements
Fund. See page 32 for more information.
• A new credit (869) is available for qualified film and media All types of corporations, business corporations, professional
productions. See page 29 for more information. corporations, C corporations, and S corporations have essentially
• Beginning in 2022, the Headquarters Relocation Credit the same filing requirements despite having different tax
(818) must be reported on Schedule IN-OCC. responsibilities. Any corporation doing business and having gross
income in Indiana must file a corporate income tax return. This
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must be done regardless of the presence of taxable income (unless Types of Corporate Entities and Returns to File
exempt under IRC section 501). Nonprofit entities can be organized formally or informally.
Contact the Internal Revenue Service for the federal requirements
Taxable Period to obtain nonprofit (commonly known as 501(c)(3)) status. The
Indiana tax law requires all corporations to adopt the corporation’s IRS publishes an information booklet titled Tax Exempt Status for
federal tax year for reporting income to Indiana. A federal entity Your Organization, Publication 557. Contact:
election or default classification is recognized for state AGI tax. Internal Revenue Service: (800) 829-1040
Publications: (800) 829-3676
Doing Business in Indiana www.irs.gov
For Indiana AGI tax purposes, the term doing business generally
means the operation of any business enterprise or activity in To register for nonprofit status with the state, submit a Nonprofit
Indiana, including but not limited to the following: Organization Application for Sales Tax Exemption (NP-20A,
• Maintenance of an office, a warehouse, a construction site, or which may be accessed here: www.in.gov/dor/tax-forms/
another place of business in Indiana; nonprofit-tax-forms). Contact:
• Maintenance of an inventory of merchandise or material for Indiana Department of Revenue
sale, distribution, or manufacture; Tax Administration
• Sale or distribution of merchandise to customers in Indiana P.O. Box 6197
directly from company-owned or -operated vehicles when Indianapolis, IN 46207-6197
the title of merchandise is transferred from the seller or (317) 232-0129
distributor to the customer at the time of sale or distribution;
• Rendering of a service to customers in Indiana; For-Profit Corporations (Domestic and Foreign)
• Ownership, rental, or operation of business or property (real A corporation can be formed for profit or nonprofit purposes.
or personal) in Indiana; Forming a corporation creates a specific legal entity. An
• Acceptance of orders in Indiana with no right of approval or organization incorporated in this state (a domestic corporation)
rejection in another state; must have Articles of Incorporation 4159 on file with the
• Interstate transportation; or Corporations Division of the Indiana Secretary of State.
• Maintenance of a public utility.
An organization incorporated in another state or with a foreign
Deriving Income from Indiana Sources government must have an Application for Certificate of Authority
If a corporation has business income both within and outside 38784 on file with the Indiana Secretary of State. This allows a
Indiana, the entity must apportion its income using the single- foreign (outside Indiana) corporation to do business in Indiana.
factor receipts formula under IC 6-3-2-2. Business income is all
income that is apportionable to Indiana under the constitution of For Indiana tax purposes, a corporation’s tax filing includes other
the United States. Nonbusiness income is all income other than less formal organizations and unincorporated entities, such as
business income. Nonbusiness income is specifically allocated general partnerships and nonprofit associations. To determine
under IC 6-3-2-2(g) through (k). which return to file, use the following list. File the specified state
form(s) to report the income, gains, losses, deductions, and credits.
Business Entities (in General) Note A. A limited liability company (LLC) may be classified for
federal income tax purposes as a partnership, a corporation, or an
Which Indiana Income Tax Form(s) to File? entity disregarded as an entity separate from its owner by applying
The type of form filed varies depending on how the corporation is the rules in federal regulation section 26 CFR 301.7701-3. An
organized and the type of income it earns. An organization filing LLC has members rather than shareholders. If an entity with more
a federal return and doing business in Indiana must also file the than one member was formed as an LLC, it generally is treated
comparable Indiana return. The name of the corporation (which as a partnership for federal income tax purposes. It therefore files
must include the word Corporation, Company, Incorporated, Federal Form 1065 and Indiana Form IT-65.
Limited, or an abbreviation thereof) must be included on all
returns. When filing Indiana corporate forms, use the federal Single-member LLC reporting defaults to disregarding the LLC as
employer identification number (FEIN) to identify the return. an entity separate from its sole member. The income and expenses
The IRS assigns this number to business entities at www.irs.gov/ of the LLC are included in the return filed by the member.
businesses/small-businesses-self-employed.
Either a single-member LLC or a multi-member LLC may elect
Our homepage provides access to forms, information bulletins to report its income and deductions as a corporate entity instead.
and directives, tax publications, email, and various filing options. The LLC can file a Form 1120 or Form 1120-A only if it has filed
Visit www.in.gov/dor. federal Form 8832, Entity Classification Election, to be treated as
a corporation. If this election is made for federal tax purposes, the
Unless otherwise specified, state tax returns are due on the 15th LLC will file Form 1120 and Indiana’s return, Form IT-20.
day of the 5th month following the close of the corporation’s
taxable year. Indiana recognizes federal extensions of time to file. An LLC can be formed under state law by filing Articles of
Organization with the Secretary of State. An LLC based outside
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of Indiana must file an Application for Certificate of Authority of Extensions for Filing Return
a Foreign Limited Liability Company to do business in Indiana, DOR accepts the federal extension of time application (Form
similar to what foreign corporations file. If the LLC qualifies 7004) or the federal electronic extension. If already approved for
under IRS guidelines to be treated as an association taxable as a a federal extension of time application (Form 7004) or the federal
corporation, it must file Form IT-20. electronic extension, it is not necessary to contact DOR before
filing the annual return. Returns postmarked within one month
Note B. A limited liability partnership (LLP) can be classified after the last date indicated on the federal extension are considered
for federal income tax purposes as a partnership, a corporation, timely filed. If a corporation does not need a federal extension of
or an entity disregarded as an entity separate from its owner by time but needs one for filing a state return, an extension request
applying the rules in federal regulation section 26 CFR 301.7701- and prepayment of 90% can be submitted via INTIME, DOR’s
3. The income of an LLP is taxed in the same way as a general e-services portal at intime.dor.in.gov, or by submitting a letter
partnership’s income is taxed. requesting an extension prior to the annual return’s due date.
An LLP can be formed under state law by filing Articles of To request an Indiana extension of time to file by letter, contact:
Registration of a Limited Liability Partnership with the Secretary Indiana Department of Revenue
of State. An LLP based outside of Indiana must file a Certificate of Corporate Income Tax
Authority or Notice of Foreign Limited Liability Partnership to do Tax Administration
business in Indiana, similar to what foreign corporations file. P.O. Box 7206
Indianapolis, IN 46207-7206
Note C. A limited partnership (LP) must have at least one general
partner and one limited partner. The income is generally taxed An extension of time granted under IC 6-8.1-6-1 waives the
in the same manner as a general partnership’s income. An LP can late payment penalty for the extension period on the balance of
be classified for federal income tax purposes as a partnership, a tax due, if at least 90% of the tax due is paid by the original due
corporation, or an entity disregarded as an entity separate from date and the remaining balance, plus interest, is paid in full by
its owner by applying the rules in federal regulation section 26 the extended due date. Use DOR’s e-services portal, INTIME, at
CFR 301.7701-3. The LP can be formed under state law by filing a intime.dor.in.gov and Form IT-6 to make an extension payment
Certificate of Limited Partnership with the Secretary of State. An for the taxable year. See Income Tax Information Bulletin #15 at
LP based outside of Indiana must file a Certificate of Authority or www.in.gov/dor/files/reference/ib15.pdf for more details. Any tax
Application of registration to do business in Indiana, similar to paid after the original due date must include interest.
what foreign corporations file.
Interest on the balance of tax due must be included with the
return when it is filed. Interest is computed from the original due
General Filing Requirements for date until the date of payment. Each October DOR establishes the
interest rate for the next calendar year. See Departmental Notice
Form IT-20 #3 available at www.in.gov/dor/files/dn03.pdf for interest rates.
What to Enclose with a State Corporate Return If a valid extension of time or a federal extension to file is
To complete a state income tax return, enclose copies of pages 1 approved, please check the box for question V on the front of the
through 5 of the completed U.S. Corporation Income Tax Return return. If applicable, enclose a copy of the federal extension of
(Form 1120) or the comparable federal return being filed. The time with the state return.
federal Schedule M-3 and any confirmation of an extension of
time to file the return must also be included.
Accounting Methods and Taxable Year
Use the same method of accounting for the AGIT that was used
Electronic Filing Requirements for federal income tax purposes. The taxable year for the AGIT
If a corporation has more than $1,000,000 in gross income for must also be the same as the accounting period used for federal
the taxable year, the corporation generally is required to file the income tax purposes. If the standard apportionment provisions
return (or, if applicable, an amended return) through Modernized do not fairly reflect Indiana income, DOR must be petitioned
e-File (MeF) using certified software. Certain exceptions to the for permission to use an alternative method. For an overview
electronic filing requirement apply; see Income Tax Information of corporate taxation, see Income Tax Information Bulletin #12
Bulletin #12 available at www.in.gov/dor/files/reference/ib12.pdf available at www.in.gov/dor/files/reference/ib12.pdf.
for more information on exceptions.
Consolidated Reporting
Adjusted Gross Income Tax Under the Adjusted Gross Income Tax Act, affiliated corporations
The Indiana AGIT is generally calculated using federal taxable have the privilege of electing to file a consolidated return. This is
income from federal Form 1120 or a comparable return and provided in IRC Section 1502 for those affiliates as defined in IRC
making Indiana modifications as required by IC 6-3-1-3.5(b). If Section 1504. The Indiana consolidated return must include any
there is income from sources both within and outside Indiana, member of the affiliated group under IRC Section 1504 having
use the apportionment and allocation formula on Form IT-20 income or loss attributable to Indiana during the year.
Schedule E to determine the AGI that’s attributed to Indiana.
The corporate AGI tax rate is 4.9%
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Federal Form
Type of Entity Filed or Indiana
Requirement Form Due Date Miscellaneous Information
If in business as a utility service, the utility
receipts tax (URT) on gross receipts might
be applicable for taxable receipts received
before July 1, 2022. Gross receipts are defined
as the value received for the retail sale of
utility services. Gross receipts are owed if
Any Entity
any of the following are furnished: Electrical
energy, Natural gas, Water, Steam, Sewage, or
Telecommunications services.
15th day of the 4th
Utility Service month following close See General Tax Information Bulletin 201 at
Provider URT-1 of the taxable year www.in.gov/dor/files/reference/gb201.pdf.
15th day of the 5th
month following close
Federal 1120 IT-20 of the taxable year
General or Regular If 80% or more of the taxpayer’s gross income
Corporation comes from extending credit, servicing loans, or a
15th day of the 5th credit card operation, the FIT applies (see 45 IAC
Financial month following close 17-2-4). See General Tax Information Bulletin
Institution Tax FIT-20 of the taxable year 200 at www.in.gov/dor/files/reference/gb200.pdf.
15th day, 10th month Check the appropriate box to question J on
Cooperative
following close of taxable Page 1 to indicate if it is necessary to file a
Association
Federal 1120-C IT-20 year 1120-C
15th day of the 5th
Corporation Engaged month following close
in Farming Federal 1120 IT-20 of the taxable year
15th day of the 5th If no U.S. address then the due date is the 15 th
Foreign Corporation Federal 1120 or month following close day of the 7 thmonth following the close of the
1120-F IT-20 of the taxable year taxable year.
15th day of the 5th
Foreign Sales
month following close
Corporation
Federal 1120-FSC IT-20 of the taxable year
15th day of the 5th
Homeowner’s month following close Not considered nonprofit organization for
Association Federal 1120-H IT-20 of the taxable year Indiana tax purposes.
Interest Charge
Domestic 15th day, 10th month
International Sales Federal following close of
Corporation 1120-IC-DISC IT-20 taxable year
A domestic insurance company organized
under the laws of the state of Indiana that
elects to file the corporation income tax return
Life Insurance instead of the insurance premium tax return
Company must file Form IT-20 and mark the appropriate
15th day of the 5th check box to question J on page 1 of the return.
month following close It will be exempt from the insurance premium
Federal 1120-L IT-20 of the taxable year tax if it elects to pay the AGIT.
15th day of the 4th
Federal 1065 or month following close
Limited Liability 1065B IT-65 of the taxable year See page 5
Company 15th day of the 5th
month following close
Federal 1120 IT-20 of the taxable year
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Federal Form
Type of Entity Filed or Indiana
Requirement Form Due Date Miscellaneous Information
15th day of the 4th
Federal 1065 or month following close
Limited Liability 1065-B IT-65 of the taxable year See page 6
Partnership 15th day of the 5th
month following close
Federal 1120 IT-20 of the taxable year
15th day of the 4th
Federal 1065 or month following close
1065B IT-65 of the taxable year See page 6
Limited Partnership
15th day of the 5th
month following close
Federal 1120 IT-20 of the taxable year
Nuclear 15th day of the 5th
Decommissioning month following close
Funds Federal 1120-ND IT-20 of the taxable year
15th day of the 5th If nonprofit is filing an 1120-POL, report such
Political Organization Federal 1120- month following close income on IT-20NP, not the IT-20.
POL IT-20 of the taxable year
A domestic insurance company organized
under the laws of the state of Indiana that
elects to file the corporation income tax return
Property & Casualty instead of the insurance premium tax return
Insurance Company must file Form IT-20 and mark the appropriate
15th day of the 5th check box to question J on page 1 of the return.
month following close It will be exempt from the insurance premium
Federal 1120-PC IT-20 of the taxable year tax if it elects to pay the AGIT.
A publicly traded partnership (PTP) that
is treated as a partnership and not as a
corporation for federal income tax purposes
must file on Form IT-65. A PTP that is treated
Publicly Traded 15th day of the 4th as a corporation for federal income tax
Partnership Federal 1065 or month following close purposes under IRC Section 7704 must file on
1065B IT-65 of the taxable year Form IT-20.
15th day of the 5th
month following close
Federal 1120 IT-20 of the taxable year
A corporation, a trust, or an association that
meets certain conditions under IRC Section
856 can elect to be treated as a real estate
Real Estate investment trust (REIT) for the tax year. It does
Investment Trust this by figuring its taxable income as a REIT
15th day of the 5th on federal Form 1120-REIT. An entity filing
Federal 1120- month following close as a REIT files Form IT-20 or Form FIT-20 to
REIT IT-20 of the taxable year report business activity income in Indiana.
A corporation, a partnership, a trust, or an
entity that meets certain conditions under IRC
Real Estate Mortgage Section 860D can elect to be treated as a real
Investment Conduit 15th day of the 4th estate investment conduit (REMIC) for the tax
month following close year. It does this by figuring its taxable income
Federal 1066 IT-20 of the taxable year as an REMIC on federal Form 1066.
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Federal Form
Type of Entity Filed or Indiana
Requirement Form Due Date Miscellaneous Information
A regulated financial corporation, subsidiary
of a holding company, or regulated financial
corporation can elect to be treated as a
regulated investment company (RIC). It
Regulated Investment
does this by filing Form 1120-RIC. For state
Company
purposes, the RIC must use Form IT-20
15th day of the 5th or Form FIT-20 to report federal taxable
month following close income, deductions, gains, and losses from the
Federal 1120-RIC IT-20 of the taxable year operation of an RIC in Indiana.
A corporation incorporated in the United
States can elect S corporation treatment. The
corporation must submit IRS Form 2553 to
the IRS for recognition of its status. This is a
separate legal and taxable entity. It can have
S Corporation
no more than 100 owners. An S corporation
is exempt from federal income tax except on
15th day of the 4th certain capital gains and passive income. Any
month following close income taxed at the corporate level is subject to
Federal 1120S IT-20S of the taxable year the Indiana corporate AGIT.
15th day of the 5th
Settlement Fund month following close
Federal 1120-SF IT-20 of the taxable year
A nonprofit organization or corporation must
file Form NP-20 and, if reporting unrelated
business income, IT-20NP. After nonprofit
status is granted, the organization must
file Form NP-20R every five years (see IC
6-2.5-5-25(d) for special rules applicable for
2024-2027)) to maintain state recognition of
its sales tax exemption. If the organization
has unrelated business income over $1,000
during the tax year, it must also file Form IT-
20NP. For information about nonprofit filing
requirements, see Income Tax Information
Nonprofit Bulletin #17, available at www.in.gov/dor/files/
Organization reference/ib17.pdf. DOR recognizes the exempt
status determined by the IRS. An organization
registered as a nonprofit is subject to the AGIT
unless the income is specifically exempt from
taxation under the Adjusted Gross Income Tax
Act (IC 6-3-2-2.8 and 6-3-2-3.1). The nonprofit
15th day of the 5th organization is subject to both federal and state
Federal 990 or month following close tax on income derived from an unrelated trade
990T IT-20NP of the taxable year or business, as defined in IRC Section 513.
For nonprofits that filed an NP-20 in 2022, see
Federal 990 or May 15 every five years IC 6-2.5-5-25(d) for the due date of the first
990T NP-20R after the formation NP-20R filing.
Religious or Apostolic 15th day of the 4th
Federal 1065 IT-65 month following close
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To file a consolidated return for AGIT purposes, the parent Form IT-20RECAP, Reconciliation of Federal Taxable Income,
corporation must own at least 80% of each subsidiary’s voting must be completed detailing the following:
stock and own at least 80% of the total value of the stock, either 1. The federal taxable income;
directly or through a chain of includible corporations. The 2. The intercompany eliminations; and
affiliated group may not include any corporation that does not 3. The members’ adjusted gross income tax.
have taxable income or loss from Indiana sources.
A list of the corporations that are members of the unitary group
To elect to file a consolidated return for Indiana purposes, the filing for the reporting unitary filer must be enclosed with the
return must be filed by the due date or the extended due date. return, noting each entity’s federal employer identification number.
An election to file a consolidated return cannot be done on a The computation of apportionment factor for the combined group’s
retroactive basis. Notify DOR by completing Schedule 8-D, members detailing the apportionment information for each entity
Schedule of Indiana Affiliated Group Members. Indicate the must also be included. Entities that have a sales factor numerator
affiliated corporations included in the consolidated return. greater than zero are taxable members. Each taxable member will
After an affiliated group elects to file consolidated for Indiana be assigned a share of business income according to its relative share
purposes, it must continue to do so through all subsequent (its percentage share without considering any nontaxable member’s
years of filing. In addition, a worksheet must accompany the share) of the unitary group’s Indiana (adjusted) sales factors.
annual return supporting each of the participating affiliates’
information that reconciles to the reported consolidated AGI or Additional information concerning unitary requirements is available
loss. Schedule 8-D is available at www.in.gov/dor/tax-forms/2022- from the Tax Policy Division at TaxPolicy@dor.IN.gov or Tax Policy
corporatepartnership-income-tax-forms/. Directive #6 at www.in.gov/dor/files/reference/poldir06.pdf.
If a consolidated group has a change in membership (i.e., a Quarterly Estimated Payments
new corporation joins or a corporation leaves), the pre-change A corporation with estimated adjusted gross income tax (AGIT)
consolidated status of the group will continue absent a request to liability exceeding $2,500 for a taxable year must make quarterly
change filing status. If a company is acquired by or merges with estimated tax payments. The quarterly estimated tax payments
another corporation, the consolidated status of the acquiring must be submitted through INTIME, DOR’s e-services portal
corporation controls absent a request to change filing status. at intime.dor.in.gov, by electronic funds transfer (EFT), or by
submitting an appropriate Indiana voucher along with Form IT-6,
If the group wants to revoke the election in a subsequent tax year, depending on the amount due.
it must make a request to DOR demonstrating good cause for
the request and receive written permission from DOR prior to The quarterly due dates for estimated payments are the 20th day
filing the separate returns. The group must make its request to of the 4th, 6th, 9th, and 12th months of the taxpayer’s tax period,
discontinue filing consolidated at least 90 days before the return’s regardless of whether filing on a calendar year, fiscal year, or short
due date, or the request will be denied. year basis. Taxpayers should use the reporting taxpayer’s federal
identification number (FEIN) when remitting payments on behalf
Unitary (Combined) Filing Status of a group in a consolidated or combined return.
A taxpayer must petition DOR for permission to file a combined
income tax return for a unitary group. The petition must be filed Visit INTIME, DOR’s e-services portal, at intime.dor.in.gov to
no later than 30 days after the end of the tax year for which the make an estimated tax payment or view payment history.
entity is seeking permission.
Claim credit for all estimated payments on lines 34 through 36
Permission will be granted if combined reporting will more fairly of Form IT-20. Refunds reflected on the annual corporate return
reflect the unitary group’s Indiana source income. However, from overpayments of estimated payments may be applied to the
combined reporting is limited to the “water’s-edge” of the United next taxable year’s estimated liability or refunded directly to the
States unless specifically requested and approved otherwise. The taxpayer. Apply the overpayments to the next year’s estimated
petition may be submitted through the DOR website at www. liability by entering the refund amount to be credited to the next
in.gov/dor/legal-resources/requesting-policy-guidance or it may year’s estimated payments on line 48 of Form IT-20. An election
be mailed to: to apply an overpayment to the following year is irrevocable. If
Indiana Department of Revenue the overpayment is reduced due to an error on the return or an
Tax Policy Division adjustment by DOR, the amount to be refunded will be corrected
100 N. Senate Avenue, N 248 MS 102 before any changes are made to the estimated account for next
Indianapolis, IN 46204 year. A refund may be offset and applied to other liabilities under
IC 6-8.1-9-2(a) and 6-8.1-9.5 before it is credited to the following
Caution. After permission has been granted to file on a combined year’s estimated tax account.
basis, the taxpayer must continue to file returns on this basis
until DOR grants permission to use an alternative method. The The quarterly estimated payment must be equal to the lesser of:
taxpayer filing the combined return must petition DOR within • 25% of the AGIT liability for the taxable year; or
30 days after the end of the tax year for permission to stop filing a • The annualized income installment calculated in the
combined return. manner provided by IRC Section 6655(e) as applied to the
corporation’s liability for AGIT.
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Penalty for Underpayment of Estimated Tax tax return, and related schedules, of the tax year being amended.
Those required to pay estimated tax are subject to a 10% Please enclose a concise explanation of the change(s) along with
underpayment penalty if estimated quarterly payments are not corrected schedules and any other documentation. Payment of any
filed or are not paid in full. The required estimate should exceed: balance due must accompany the amended return.
• The annualized income installment calculated in the manner
provided by IRC Section 6655(e) as applied to the liability; or Indiana Code (IC) 6-3-4-6 requires taxpayers to notify DOR of
• 25% of the final tax liability for the prior taxable year. any changes (federal adjustment, RAR, etc.) made to a federal
income tax return within 180 days of such change. Federal waivers
If either of these conditions are met, no underpayment of should be enclosed, if applicable. Please attach a copy of the
estimated tax penalty will be assessed for the estimated period. federal RAR and/or federal audit report to the amended return.
If taxes were underpaid for any quarter, use Schedule IT-2220 to IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a
show an exception to the penalty. If none of the exceptions are reduction in tax due to a federal modification. A taxpayer can file
met, include payment of the computed penalty with the return. a claim for refund within 180 days from the date of notice of the
The underpayment penalty is the difference between the amount final modification by the IRS. Therefore, an overpayment due to a
paid for each quarter and 25% of the final income tax for the change of a federal income tax liability must be claimed within the
current tax year. Special rules may apply to short taxable year or latest of: the three-year period from the due date of the return, the
first time filers. See the instructions for completing Schedule IT- date of payment, or within six months of the taxpayer’s notification
2220, Penalty for the Underpayment of Corporate Income Tax. of the final modification by the IRS. If the taxpayer and DOR agree
to an extension of the statute of limitations for an assessment, the
Electronic Funds Transfer Requirements period for filing a claim for refund is also extended.
If the required corporate quarterly estimated payment determined
by DOR exceeds $5,000, the corporation is required to submit the Credits and payments. If a change is made to any of the payments
payment by electronic funds transfer. DOR prefers this be completed and/or credits reported on the original return, please attach any
through the e-services portal, INTIME. Failure to submit a required schedules, statements or cancelled checks that support such change.
quarterly payment electronically will result in a penalty of 10% A tax payment made with the original return or tax refund received
being assessed at the time the annual income tax return is filed. from filing the original return (entered as a negative amount)
The penalty is computed on each payment required to be made should be included on Line 37 Other payments, credits plus any
electronically that is instead submitted by another means. amounts included on this line when the original return was filed.
Note that an overpayment carried to the following year’s estimated
If DOR notifies a corporation that it must remit by EFT, the tax account on the originally filed return should be treated as a
corporation must begin remitting tax payments via EFT by the refund and entered on Line 37. Once the overpayment is carried
date/tax period specified by DOR. forward, it cannot be reversed. A statement should be attached with
an explanation of the amount included on Line 37.
DOR also assesses a penalty of $35 on any payment on which it
cannot obtain payment. Remittance due or refund. If the amount of tax due (Line 33) is
greater than the payments and credits (Line 40), enter the balance
Amended Returns of tax due on Line 41. If the amended return is submitted after the
What form should be filed to amend a return? For tax years due date of the original return, including valid extensions, a 10%
beginning prior to January 1, 2019, a taxpayer should file Form penalty is due on the balance of tax due or $5, whichever is greater.
IT-20X to amend a previously filed corporate income tax return.
This form is available at www.in.gov/dor/tax-forms/indiana-state- Note. A $10 per day penalty (maximum $250) may apply to zero
prior-year-tax-forms/2019-corporatepartnership-income-tax- tax liability returns delinquently filed.
forms/. Taxpayers should follow the instructions included with
Form IT-20X. A taxpayer should file Form IT-20X along with If a tax payment is made after the original return due date, the
the completed form IT-20 and schedules as amended to amend a payment must include interest. Interest is calculated from the
previously filed corporate income tax return. original return due date until the date the payment is made. For
current interest rates see Departmental Notice #3 available at
For tax years beginning on or after January 1, 2019, a taxpayer www.in.gov/dor/files/dn03.pdf.
should file Form IT-20 for the tax year being amended. For
periods beginning on or after January 1, 2019, a taxpayer should If the amount of tax due (Line 33) is less than the payments
not use Form IT-20X to file an amended return. and credits (Line 40), enter the overpayment on Line 46. If the
overpayment is to be refunded, enter the overpayment amount on
Completing the amended return. To amend a previously filed Line 47. If the overpayment is to be carried forward to the next
Indiana corporate income tax return, Form IT-20 must be completed following year’s estimated tax account, enter the amount on Line
with one of the boxes checked at the top of Form IT-20. Check the 48. Interest may or may not be due on the overpayment. Please
first box if the return is being amended for any reason other than refer to General Tax Information Bulletin 101, available at www.
a federal audit. Check the second box if amending the return due in.gov/dor/files/reference/gb101.pdf. The statute of limitations for
to a federal audit. Complete Form IT-20 with the amended figures. refund claims is 3 years from the due date of the original return
Taxpayers should refer to the instructions for the corporation income or 3 years from the date of the overpayment occurred, whichever
IT-20 Corporate Booklet 2022 Page 11
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is later. Extensions of time extend the due date of the return. List the two-digit county code number if filing a return for a
Quarterly payments are considered to be made on the due date of corporate address located in Indiana. See Departmental Notice
the return filed for a taxable period. #1, located at www.in.gov/dor/files/reference/dn01.pdf, for a list
of 2-digit county code numbers. Enter “00” (two zeroes) in the
Note. An extension of time to file does not extend the time to county box D if the corporate address lies outside of Indiana.
pay any tax due. Tax due must be paid by the original due date.
Interest and penalty are calculated on late payments from the due Enter the principal business activity code, from the North
date of the payment. American Industry Classification System (NAICS), in the
designated block of the return. Use the six-digit activity code
Note. If the corporation is undergoing a bankruptcy proceeding, mail reported on the federal corporation income tax return.
the amended return to: Indiana Department of Revenue, Bankruptcy
Section MS 108, 100 N. Senate Ave., Indianapolis, IN 46204-2253. Question J and Other Fill-in Lines
All corporations filing an Indiana corporation income tax return
must complete the top portion of the form, including questions J
through W. Check or complete all boxes that apply to the return.
Mailing Options
If you owe tax, please mail the amended return to: J. Check the “final return” box only if the corporation is
Indiana Department of Revenue dissolved, liquidated, or has withdrawn from the state.
P.O. Box 7087
Indianapolis, IN 46207-7087 Also, the Form BC-100 must be filed to close out any sales
and withholding accounts. Visit www.in.gov/dor/tax-forms/
If you do not owe any tax, please mail the amended return to: business-tax-forms/ to complete this form online.
Indiana Department of Revenue
P.O. Box 7231 K. Enter the date of incorporation for the company in field one
Indianapolis, IN 46207-7231 and enter the state of incorporation in field two.
L. Enter the corporation’s state of commercial domicile.
Instructions for Completing Form IT-20 M. Enter the year the initial Indiana return was filed.
Filing Period and Identification N. Enter the corporation’s address where records are kept.
File a 2022 Form IT-20 return for a taxable year ending Dec. 31,
2022; a short tax year beginning in 2022; or a fiscal year beginning O. If the corporation made estimated tax payments under a
in 2022 and ending in 2023. For a short or fiscal tax year, fill in the different federal employer identification number (FEIN), check
beginning month and day and the ending date of the taxable year this box. Attach a scheduling listing all the other identification
at the top of the form. numbers that have been used when making payments.
A correct Form IT-20 must be submitted. Please use the P. Check this box if filing federal Form 1120 as a consolidated
corporation’s full legal name and present mailing address. return.
For foreign addresses, please note the following:
• Enter the name of the city, town, or village in the box labeled Q. Check this box if filing on a unitary basis, to indicate that
City; material changes in circumstances have occurred since the
• Enter the name of the state or province in the box labeled last petition has been filed. If this box is checked, enclose a
State; and statement indicating those changes.
• Enter the postal code in the box labeled ZIP Code; and
• Enter the 2-digit country code. R. Check this box if 80% or more of the gross income for the tax
year is derived from making, acquiring, selling, or servicing
Check the appropriate box at the top of Form IT-20 if filing an loans or extensions of credit. If this box is checked, do not
amended return. file Form IT-20. Instead, Form FIT-20, the Indiana financial
institution tax return, must be filed.
For a name change, check the box at the top of the return. Enclose
copies of Amended Articles of Incorporation or an Amended S. Check yes to indicate if filing an Indiana consolidated
Certificate of Authority filed with the Indiana Secretary of State return. If so, complete and enclose Schedule 8-D, Schedule of
with the return. Indiana Affiliated Group Members.
The federal employer identification number shown in the box in the T. Check this box if filing a combined return on a unitary
return’s upper-right corner must be accurate and identical to that basis. If so, enclose the unitary apportionment addendum.
used on the federal corporation income tax return. Consolidated
filers must use the federal employer identification number of the U. Check this box if the corporation deducted for any intangible
corporation designated as the reporting corporation. expenses or directly related interest expenses paid to affiliates.
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Complete and enclose Schedule IT-20PIC. Also, enclose for federal purposes that exceeded the amount allowable for
federal Form 851, Affiliations Schedule, with the return. Indiana purposes. The accumulated depreciation on such an asset
through 2012 is, therefore, different for federal and state purposes.
V. Check this box if the corporation has a valid extension of time This difference will remain until the asset is fully depreciated or
or an electronic federal extension of time to file the return. If until the time of its disposition.
applicable, enclose a copy of federal Form 7004 with the return.
In this example, the asset was acquired in January 2009 at a
W. Check this box if reporting income from disregarded entities. purchase price of $120,000. This normally would have a 25-year
If this box is checked, please enclose a list of the disregarded recovery period, but IRC Sec. 168 allows for a 15-year recovery
entities with the return. period. Tax year 2012 is the last year ABC Company will have
reported a qualified restaurant equipment add-back until the end
Computation of Adjusted Gross Income Tax of the 15-year recovery period.
Unitary filers should use the combined group’s totals and relative
formula percentage for entries on all lines except 18 and 20. If this asset was sold before being fully depreciated (using
Compute the Indiana portion of a net operating loss deduction, straight-line depreciation), the catch-up modification would be
if any, on line 20. Base it on the relative formula percentage as reflected in the year of the sale. However, if this property is held
applied for the loss year. through 2023 (the 15th year of depreciation), ABC Company will
report a negative $12,800 catch-up add-back on the corporation’s
Important: 2023 state tax return.
• Please round all entries to the nearest whole dollar amount.
• Please do not use a comma in dollar amounts of four digits or The following add-backs and deductions should
more. For example, instead of entering “3,455” enter “3455.” be entered on lines 4 through 10.
Income Conformity Add-Back
Line 1 - Federal Taxable Income Before this publication was finalized Indiana had not conformed
Enter the federal taxable income (as defined under IRC Sections to any changes to the Internal Revenue Code (IRC) that may
63, 801, or 832) before any federal net operating loss (NOL) have become law after March 31, 2021. Therefore, the IRC used
deduction and/or special deductions from Form 1120 (pro forma to figure Indiana income may not wind up being the same as the
U.S. Corporation Income Tax Return) for the taxable period. IRC used to figure federal income.
Some organizations can enter federal taxable income after the
$100 specific deduction. Political organizations and homeowner This add-back is specific to these annual current year conformity
associations are allowed a $100 specific deduction. issues. If uncertainty exists as to whether or not Indiana will adopt
some or all of the federal legislation passed after March 31, 2021,
Line 2 - Federal Deduction of Qualifying Dividends that acts to modify federal AGI, you may add-back those items
Enter the special deductions from Schedule C, federal Form 1120. as an “other” add-back. In the event those items are adopted, an
Use the amount reportable to Indiana if filing as a consolidated amended return should be filed to recoup the add-back(s).
group. See line 12 for Indiana’s treatment of any remaining foreign
source dividends. Conformity Add-Back – Positive Entry (3-digit code: 120)
This add-back is only for current year conformity issues.
Line 3 - Subtotal Federal Taxable Income Before NOL Conformity issues for preceding tax years must be addressed
Subtract line 2 from line 1. on the add-back line specific to the item in question. If the state
legislature does not conform to federal code changes enacted after
Modifications to Adjusted Gross Income, March 31, 2021, you may have to amend your return at a later date
Lines 4 - 11 to reflect any differences between Indiana and federal law. You may
Enter any add-backs and deductions on lines 4 through 10. wish to periodically check for updates at www.in.gov/dor.
Enter the name of the add-back/deduction, its 3-digit code,
and its amount. Use minus signs to denote negative amounts. Conformity Add-Back – Negative Entry (3-digit code: 147)
Also include the proportionate share of Indiana modifications This add-back generally is based on conformity issues arising
attributable from a unitary partnership, prior to apportionment. from a previous year. However, in rare cases this can arise from
Attach additional sheets if necessary. conformity issues arising in the current year where the IRC treats
an item as taxable or nondeductible that was previously exempt
Adding Back Depreciation Expenses or deductible. For more information, see Income Tax Information
Several of the discontinued add-backs were created by timing Bulletin 119 at www.in.gov/dor/files/ib119.pdf.
differences between federal and Indiana allowable expenses. The
following is an example of how to report a difference. One example that occurs periodically is when there is a federal
disaster. Congress will amend the IRC to permit IRA withdrawals
Example. ABC Company has qualified restaurant equipment. For to be included over three years (e.g., a 2022 withdrawal would be
federal tax purposes, they use the accelerated 15-year recovery included one-third in 2022, one-third in 2023, and one-third in
period for an asset placed in service in 2009. Since 2009, ABC 2024). If Indiana decoupled from the IRC, the whole amount would
Company has been adding back the depreciation expense taken be included in 2022, none in 2023, and none in 2024. The Code 120
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would be for the two-thirds add-back in 2022, the Code 147 would be If you are filing as a REIT, add back the IRC Section 965(c) deduction
for the one-third deduction in 2023 and 2024. These have occurred using 3-digit code 139. If you have made an IRC Section 965(m)
from time to time but (1) did not affect Indiana because of the election, Indiana follows the federal treatment for that election.
specific disaster and (2) the IRC conformity date was updated in time.
Related Company Intangible Expense Add-Back
Tax Add-Back (3-digit code: 100) (3-digit code: 140)
Add back all state taxes based on or measured by income, levied Add back the net result from Schedule IT-20PIC Part 1, line 12. A
by any state, which were deducted on the federal tax return. corporation subject to the AGI tax must add to its taxable income
any intangible expenses deducted in determining federal taxable
Wagering taxes fall within this category to be added back. income. A corporation answering yes to question U on the front
However, the amount to be added back is being phased out. of the return must complete Schedule IT-20PIC. Instructions are
See the following instructions. attached to the schedule.
• Wagering taxes. The portion of wagering taxes required to The following definitions apply to corporations for the purpose
be added back as a tax based on or measured by income is of disclosing activities and amounts involving transactions of
being reduced (phased out). For wagering taxes, such as the intangible property to the extent required under IC 6-3-2-20:
riverboat wagering tax (IC 4-33-13), supplemental wagering
tax (IC 4-33-12), state slot machine wagering tax (IC 4-35-8), • Affiliated group has the meaning set forth in IRC Section
sports wagering tax (IC 4-38-10), and similar taxes imposed 1504, except that the ownership percentage is determined
by other states based on wagering receipts, only a portion of using 50% instead of 80%.
the taxes are required to be added back. The percentage of
taxes required to be added back is determined by the first date • Foreign corporation means a corporation that:
of the taxpayer’s taxable year, and is determined as follows: ο Is organized under the laws of a country other than the
2020 – 75%; 2021 – 62.5%; 2022 – 50%; 2023 – 37.5% 2024 United States; and
–25.0%; 2025 – 12.5%; 2026 and later – no add back required. ο Would be a member of the same affiliated group as the
For example, Casino X, Inc., remits $10,000,000 in riverboat taxpayer if the corporation were organized under the
wagering taxes in 2022. Instead of Casino X adding back the laws of the United States.
full $10,000,000, Casino X will add back $5,000,000.
• Intangible expense means the following amounts, to the
Note. Income, losses and/or expenses from other schedules extent these amounts are allowed as deductions from taxable
and forms may flow through to federal Schedules C, E income under IRC Section 63: expenses; losses; and costs
and F. K-1 may be included on federal Schedule E, while directly for, related to, or in connection with the acquisition,
expenses from federal Form 8829 may be included on federal use, maintenance, management, ownership, sale, exchange, or
Schedule C. Make sure to check these schedules and forms any other disposition of intangible property. Also included in
for any deduction that needs to be added back. For example, the term are royalties, patent fees, technical fees, copyright fees,
partnership income from federal Schedule K-1 may be licensing fees, and other substantially similar expenses and costs.
included on federal Schedule E, while expenses from federal
Form 8829 may be included on federal Schedule C. Make • Makes a disclosure means a taxpayer provides the following
sure to check these schedules and forms for any deduction information about a transaction of a member of the same
that needs to be added back. affiliated group or a foreign corporation involving an
intangible expense and any directly related interest expense:
Charitable Contributions (3-digit code: 114) the recipient’s name; the state of the recipient’s commercial
Add back all charitable contributions deducted when computing domicile; the amount paid to the recipient; a copy of federal
federal net taxable income. Form 851 (Affiliation Schedule); and the information needed to
determine the taxpayer’s status under the allowed exceptions.
Note. Also see the Infrastructure Fund Gift Deduction on page 16.
• Recipient means a member of the taxpayer’s affiliated group
Federal Gross Repatriated Dividend Add-Back (3-digit code: 138) who is paid income that corresponds to an intangible expense
Add back the amount necessary to make the dividend equal to or any directly related interest expense.
the gross deemed dividend reportable for federal tax purposes. If
you claimed a deduction under IRC section 965(c) for federal tax • Unrelated party means a person who is not a member of the
purposes, the add-back will equal federal Form 965, Part II, Line same affiliated group.
17. The total amount included in adjusted gross income will equal • Valid business purpose means one or more transactions
the gross amount of dividends reported prior to any deduction that have sufficient economic substance, other than the
under IRC section 965(c). avoidance or reduction of taxes that, alone or in combination,
constitute the primary motivation for a business activity or
Note. This income after the add-back and after any deduction for change the taxpayer’s economic position in a meaningful way.
Section 78 gross-up related to the deemed dividend is treated as a A meaningful change in the taxpayer’s economic position
foreign source dividend. Filers should use Schedule IT-20FSD to includes, but is not limited to:
calculate the proper deduction for Indiana taxes.
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ο An increase in market share Meal Deduction Add-Back (3-digit code: 149)
ο Its entry into new business markets; or If you:
ο Its compliance with a regulatory requirement of federal, • claimed a deduction for meal expenses with regard to food
state, or local government. and beverages provided by a restaurant in computing your
federal taxable income; AND
Related Company Interest Expense Add-Back (3-digit code: 141) • the deduction would have been limited to 50% of the meal
Add back the net result from Schedule IT-20PIC Part 2, line 12. A expenses if the expenses had been incurred before Jan. 1, 2021,
corporation subject to the AGI tax must add to its taxable income add back the amount deducted for federal purposes in excess of
any directly related interest expenses deducted in determining 50% of the food or beverage expenses.
federal taxable income. A corporation answering yes to question
U on the front of the return must complete Schedule IT-20PIC. Do not add back any amount for which an exception to the 50%
Instructions are attached to the schedule. limitation was in effect for amounts paid before Jan. 1, 2021.
• Directly related interest expenses means interest expenses Example. Monosyllabic, Inc. incurs $2,000 in meal expenses
that are either paid to or accrued/incurred as a liability to a during 2022 and deducts the entire $2,000 in computing its
recipient if: 2022 federal taxable income. The meal expenses would have
ο The amounts represent income from making loans; and qualified for only a 50% limitation under pre-2021 IRC § 274.
the recipient originally received the loaned funds from Monosyllabic, Inc. is required to add back $1,000.
the payment of expenses by the taxpayer, by a member of
the same affiliated group, or by a foreign corporation. Dividends Paid to Shareholders of a Captive Real Estate
Investment Trust (3-digit code: 116)
• Interest expense means an interest expense allowable under Add back the amount of any deduction for dividends paid to
IRC Section 163, determined without regard to the limitation shareholders of a captive real estate investment trust (REIT). A
under IRC Section 163(j). If interest expenses paid or incurred captive REIT is defined as a corporation, a trust, or an association:
in the current year are disallowed as a result of IRC Section • That is considered a REIT under Section 856 of the IRC;
163(j), the portion of the interest expenses that constitutes • That is not regularly traded on an established securities
directly related interest expenses are required to be added market;
back in the current year. If an interest expense is disallowed • That is not organized in a country that has a tax treaty with
under IRC Section 163(j) in the current year but allowed in a the United States Treasury governing the tax treatment of
later year, any portion of that interest expense deducted in the these trusts; and
later year is not required to be added back in the later year. • In which more than 50% of the voting power or shares is
owned or controlled by one entity.
See the instructions for the Related Company Intangible Expense
for additional definitions apply to corporations for the purpose Net Bonus Depreciation Allowance (3-digit code: 104)
of disclosing activities and amounts involving transactions of Add or subtract an amount attributable to bonus depreciation.
intangible property to the extent required under IC 6-3-2-20. Do this if it’s in excess of any regular depreciation allowed if
the corporation did not elect under IRC Section 168(k) to have
Excess Federal Interest Deduction Modification (3-digit code: 142) it applied to property in the year the property was placed into
IRC Section 163(j) limits the federal interest deduction for most service. If property is owned, it is possible to have been allowed
business interest to 30% (50% for 2019 and 2020 in certain cases) to take additional first-year special depreciation for qualified
of adjusted taxable income plus business interest. However, property in the current taxable year or an earlier taxable year. If
Indiana decoupled from this provision. Subtract an amount equal this is the case, add or subtract an amount that makes the AGI
to the amount as a deduction for excess business interest under equal the amount computed as if no bonus depreciation had
IRC Section 163(j) in the year in which the interest was first paid been permitted. (The first-year special depreciation for qualified
or accrued. If you are deducting any business interest carried over property includes 100% bonus depreciation.) If property subject
from a previous year, add the amount of this interest deducted. to a modification under this add-back is sold or disposed of
during the taxable year, use this add-back to report the previously
Federal GILTI Deduction Add-Back (3-digit code: 143) disallowed depreciation. Enclose a statement to explain the
If you received any global intangible low taxed income, add back adjustment being made. Income Tax Information Bulletin #118
the 50% deduction claimed under IRC Section 250(a)(1)(B)(i). at www.in.gov/dor/files/reference/ib118.pdf explains this initial
This amount should be reflected, in whole or in part, on federal required modification on the allowance of depreciation for state
Form 1120, Schedule C, Line 22. Do not report a negative amount tax purposes.
with this code.
Special rules may apply if the bonus depreciation is taken against
GILTI § 78 Deduction Add-Back (3-digit code: 146) property acquired in a like-kind exchange. See Income Tax
Add back any amount of IRC Section 78 income deducted under Information Bulletin #118 at www.in.gov/dor/files/reference/
IRC Section 250(a)(1)(B)(ii). This amount should be reflected in ib118.pdf for additional information.
part on federal Form 1120, Schedule C, Line 22. The sum of Code
143 and Code 146 should not be greater than federal Form 1120,
Schedule C, Line 22. Do not report a negative amount with this code.
IT-20 Corporate Booklet 2022 Page 15
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Excess IRC Section 179 Deduction (3-digit code: 105) You must maintain the completed Schedule IN-PAT with your
Add or subtract the amount necessary to make the adjusted gross records as DOR can require you to provide it at a later date. You
income of the taxpayer that placed any IRC Section 179 property may get Schedule IN-PAT at www.in.gov/dor/tax-forms/2022-
in service in the current taxable year or in an earlier taxable year individual-income-tax-forms.
equal to the amount of adjusted gross income that would have been
computed as if the federal limit for expensing under IRC section For more information about this deduction see Income Tax
179 was $25,000 as opposed to $1,000,000 (adjusted for inflation). Information Bulletin #104 at www.in.gov/dor/files/reference/
ib104.pdf.
Indiana has adopted an expensing cap of $25,000. The federal
increase to a $1,000,000 deduction was not allowed for purposes OOS Municipal Obligation Interest Add-Back (3-digit code: 137)
of calculating Indiana adjusted gross income. However, the Interest earned from a direct obligation of a state or political
$2,500,000 threshold for phase-out (adjusted for inflation) is subdivision other than Indiana (out of state, or OOS) is taxable by
allowed for purposes of calculating Indiana AGI. The depreciation Indiana if the obligation is acquired after Dec. 31, 2011. Interest
allowances in the year of purchase and in later years must earned from obligations held or acquired before Jan. 1, 2012, is
be adjusted to reflect the additional first-year depreciation not subject to Indiana income tax and should not be reported as
deduction, including the special depreciation allowance for 100% an add-back.
bonus depreciation property, until the property is sold or fully
depreciated. If property subject to a modification under this Note. Interest earned from obligations of Puerto Rico, Guam,
add-back is sold or disposed of during the taxable year, use this Virgin Islands, American Samoa, or Northern Mariana is not
add-back to report the previously disallowed depreciation. included in federal gross income and is exempt under federal
law. There is no add-back for interest earned on these obligations.
Note. The net amount determined for the net bonus depreciation For more information, see Income Tax Information Bulletin #19
or the IRC Section 179 add-back might be a negative figure available at www.in.gov/dor/files/reference/ib19.pdf.
(because of a higher depreciation basis in subsequent years). If
it is, use a minus sign to denote that. (If the taxable income is a Indiana Lottery Winnings Annuity Deduction (3-digit code: 629)
loss, this adjustment increases a loss when added back.) Enclose a If a taxpayer receives proceeds from a winning Hoosier Lottery
statement to explain the adjustment. ticket for a lottery held prior to July 1, 2002, those proceeds may
be deducted from the taxpayer’s Indiana adjusted gross income.
Special rules may apply if the Section 179 expensing is taken This deduction applies only to prizes won from the Hoosier
against property acquired in a like-kind exchange. See Income Lottery Commission; proceeds from other state lotteries or from
Tax Information Bulletin #118 at www.in.gov/dor/files/reference/ other gambling sources, such as casinos, are not deductible. In
ib118.pdf for additional information. addition, proceeds from winning Hoosier Lottery tickets for
lotteries held after June 30, 2002, are not deductible.
Interest on U.S. Government Obligations (3-digit code: 610)
Subtract the interest or any proportionate share of interest from Individuals or entities that have purchased Hoosier Lottery prizes
U.S. government obligations included on the federal income tax from a winning ticket holder for valuable consideration are not
return, Form 1120, and Form 1065 (if a unitary relationship exists). eligible for this deduction.
However, this is not a total exclusion. First deduct all related expenses
from the exempt dividend or interest income. These expenses are Infrastructure Fund Gift Deduction (3-digit code: 631)
limited to the amount of income each obligation generates. For a You may be eligible to claim a deduction if a contribution has been
list of eligible items, refer to Income Tax Information Bulletin #19 made to a regional development infrastructure fund. You should
available at www.in.gov/dor/files/reference/ib19.pdf. keep detailed records of the contribution as DOR can require you
to provide this information at a later date.
Foreign Gross-Up (3-digit code: 119)
Subtract the amount of foreign gross-up determined by Government or Civic Group Capital Contribution Deduction
computing the federal foreign tax credit on Form 1118. This (3-digit code: 633)
should be reflected on federal Schedule C. Subtract any amounts included in federal taxable income that are
capital contributions from a government or civic group and not
Note. The federal foreign tax credit is not allowed for Indiana excluded under IRC Section 118.
income tax purposes.
COVID-related Employee Retention Credit Disallowed
Qualified Patents Income (3-digit code: 622) Expenses Deduction (3-digit code: 634)
Some of the income from qualified patents included in federal If you had a deduction that was disallowed for federal purposes
taxable income may be exempt from Indiana adjusted gross income because an employer claimed a federal COVID-related employee
tax. A qualified patent is a utility patent or a plant patent issued after retention credit, deduct the amount that was:
Dec. 31, 2007, for an invention resulting from a development process • disallowed for federal purposes; and
conducted in Indiana. The term does not include a design patent. • that otherwise would have been allowable in determining
Indiana adjusted gross income.
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Do not deduct any amounts for amounts disallowed for non- Asset acquired
COVID related employee retention credits such as disaster-related Jan. 2009 Federal Add- Indiana
employee retention credits. $120,000 purchase Depreciation Back Depreciation
price
For 2022, this should only be claimed if the deduction is reported
as the result of a pass through entity’s reporting if the pass Year 1 (2009) 8,000 4,924 3,076
through entity’s taxable year began in 2021. Year 2 (2010) 8,000 4,924 3,076
Year 3 (2011) 8,000 4,924 3,076
Indiana-only Tax-exempt Bonds Deduction (3-digit code: 636)
If you had interest from a bond issued by or in the name of certain Year 4 (2012) 8,000 4,924 3,076
Indiana government subdivisions or entities or amounts received Year 5 (2013)
8,000 8,000
upon redemption or maturity of the bond, deduct any interest or Accumulated 0
40,000 20,304
other income included in federal gross income. Do not deduct Depreciation
any bond interest that is excluded from federal gross income.
Year 6 – 15
In addition, if you sell the bond, do not deduct any amounts for 80,000 80,000
Accumulated 0
which the bond is sold in excess of your purchase price. See IC 120,000 100,304
Depreciation
6-8-5-1 for further information regarding the deduction.
Year 16 – 38
Certain Discontinued Add-Backs: How and When to Report a Accumulated 0 0 0
Final Catch-Up Modification Depreciation
Required add-backs for the following modifications were Year 39 (or year of
eliminated, effective Jan. 1, 2013: disposition) 0 -19,696 19,696
• Motorsports Entertainment Complex, Code 130 Add-back
• Qualified Advance Mining Safety Equipment, Code 126
• Qualified Electric Utility Amortization, Code 135 Tax year 2012 is the last year The Blankenship Corp reported an
• Qualified Environmental Remediation Costs, Code 121 add-back until the end of the recovery period. Had this asset been
• Qualified Leasehold Improvement Property, Code 129 sold before being fully depreciated, the catch-up modification
• Qualified Restaurant Improvement Property, Code 108 would be reflected in the year of the sale. If this property is held
• Qualified Retail Improvement Property, Code 109 through 2048 (the 39th year of depreciation), The Blankenship
• Start-Up Expenditures, Code 131 Corp will report a negative $19,696 catch-up add-back on the
2048 state tax return.
Required add-backs for the following modifications have been
eliminated, effective Jan. 1, 2016: Enter the associated 3-digit code on lines 4 through 10 if
• Qualified Disaster Assistance Property Code 110 reporting a final catch-up modification.
• Qualified Refinery Property Code 111
• Qualified Film or Television Production Code 112 Line 11 - Modified Adjusted Gross Income
Enter the sum of income and modifications. Add/subtract lines 4
If any of these add-backs have been previously reported, see the through 10. Use a minus sign to denote a negative amount.
following example for guidance as to how to figure and report a
final catch-up modification. Other Adjustments
Example. The Blankenship Corp has qualified restaurant Line 12 - Foreign Source Dividends
equipment. For federal tax purposes the corporation used the IC 6-3-2-12 allows a deduction from AGI. It must be equal
accelerated 15-year recovery period for an asset placed in service to the amount of the foreign source dividend included in the
since 2009. Since 2009 The Blankenship Corp had been adding back corporation’s AGI for the tax year multiplied by one of the
the depreciation expense taken for federal purposes that exceeded following percentages:
the amount allowable for Indiana purposes. The accumulated • 100% if the corporation including the foreign source dividend
depreciation on such an asset through 2012 was, therefore, different in its AGI owns stock. It must also possess at least 80% of
for federal and state purposes. This difference will remain until the the total combined voting power of all classes of stock of the
asset is fully depreciated or until the time of its disposition. foreign corporation from where the dividend is derived.
• 85% if the corporation including the foreign source dividend
A simple illustration: in its AGI owns stock. It must also possess at least 50% but less
Asset – acquired January, 2009 – qualified restaurant property – than 80% of the total combined voting power of all classes of
purchase price $120,000. This normally would have had a 39-year stock of the foreign corporation from where the dividend is
recovery period; IRC Sec. 168 allows for a 15-year recovery period. derived.
• 50% if the corporation including the foreign source dividend
in its AGI owns stock. It must also possess less than 50% of
the total combined voting power of all classes of stock of the
foreign corporation from where the dividend is derived.
IT-20 Corporate Booklet 2022 Page 17
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Complete and enclose Schedule IT-20FSD. Instructions are Addition of Allocated and Previously Apportioned
attached to the schedule. Failure to include Schedule FSD with the Income to Indiana Treatment of Partnership Income
tax return will result in the denial of this deduction. The corporate partner’s and the partnership’s activities might
constitute a unitary business under established standards,
The term foreign source dividend means a dividend from a disregarding ownership requirements. If so, the business income
foreign corporation. It includes any amount a taxpayer is required of the unitary business attributable to Indiana is determined by
to include in the gross income for a tax year under IRC Section the single-factor apportionment formula. The formula consists
951 (Subpart F, controlled foreign corporations). The Indiana of the corporate partner’s share of the partnership’s sales for any
foreign source dividend deduction is based on “foreign source partnership year ending within or with the corporate partner’s
dividends” after the federal special deductions. Do not include income year. The partner’s proportionate shares of all the
any amount treated as a dividend under IRC Section 78, including partnership’s (unapportioned) state income taxes and charitable
any amount associated with GILTI income. Refer to Indiana contributions and other required modifications are added back to
Income Tax Information Bulletin #78 available at www.in.gov/ determine the partner’s AGI.
dor/files/reference/ib78.pdf for more information.
The corporate partner’s activities and the partnership’s activities
Foreign source dividends include the gross amount of repatriated might not constitute a unitary business under established
dividends under IRC Section 965 and included in Indiana standards. If they don’t, the corporate partner’s share of the
adjusted gross income. Foreign source dividends also include the partnership income attributable to Indiana is determined at the
amount of GILTI income included in federal taxable income prior partnership level as follows:
to the IRC section 250 deduction. 1. If the partnership has income from sources within and
outside Indiana, the income from the sources within Indiana
Caution. Do not use line 12 to deduct out-of-state income or is determined by a formula consisting of the sales of the
make any other adjustment. Instead, see the instructions for Form partnership.
IT-20 Schedules E and F beginning on page 23. 2. If the partnership has income from sources entirely within
Indiana or entirely outside Indiana, the income is not subject
Line 13 - Subtotal of Income to formula apportionment. Instead, all the partnership income
Subtract line 12 from line 11 and enter the balance here. will be allocated entirely to Indiana or to another state.
Line 14 - Other Adjustments to Modified Adjusted Refer to 45 IAC 3.1-1-153. For non-unitary partners, taxable
Gross Income partnership distributions included in federal AGI are deducted on
Enter the net nonbusiness income (loss) and tiered/non-unitary line 14 of the return. Non-unitary partnership income attributed
partnership distribution from Form IT-20 Schedule F, column C, to Indiana, including any apportioned pro rata modifications, is
line 10. Also enclose a completed Form IT-20 Schedule F. entered on line 18.
Line 15 - Taxable Business Income Refer to the instructions for Schedule F for more information.
Subtract line 14 from line 13. Losses are treated the same as income; however, losses cannot
exceed the limits imposed by IRC Section 704.
Apportionment of Income for an Entity with
Multistate Activities Line 18 - Indiana Nonbusiness and Non-unitary Partnership
Income
Lines 16a through 16d - Apportionment Method Applied Enter Indiana net nonbusiness income (loss) and Indiana non-
If applicable, enter the Indiana apportionment percent from the unitary partnership income from Schedule F, column D, line 11.
completed schedule. (Round to two decimal places; for example,
98.46%.) Check box 16a if using Form IT-20 Schedule E, line Line 19 - Indiana Adjusted Gross Income
9. Check box 16b if using Schedule E-7, Apportionment for Enter the total of line 17 and line 18.
Interstate Transportation. (This schedule is available separately
on request.) Check box 16c if using another approved method. Deduction from Indiana Adjusted Gross Income
(The appropriate schedule must be enclosed.) Do not enter 100%
on this line. Failure to include to appropriate schedule or check Line 20 - Indiana Net Operating Loss Deduction
appropriate box to indicate apportionment method may result in Enter, as a positive figure, the combined amount of all available
an adjustment in the apportionment percentage to 100% and may Indiana NOL carryover deductions for this taxable year as calculated
result in delay in the processing of your return and/or refund. on Part 2, column A of Schedule IT-20NOL(s). This amount should
not exceed line 19. Support for the entry from each loss year must
Line 17 - Indiana Apportioned Business Income be enclosed with the return. Please review the revised Schedule
Multiply line 15 by the apportionment percentage on line 16d, if IT-20NOL, and instructions before entering an amount on line 20.
applicable. Otherwise, enter the amount from line 15. Failure to include schedule IT-20NOL in support of deduction will
result in denial of deduction claimed. You must file an IT-20 for each
year that you have a net operating loss, including any amendments
that change, create, or eliminate the loss.
Page 18 IT-20 Corporate Booklet 2022
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Line 21 - Taxable Adjusted Gross Income For more information regarding use tax, visit DOR’s website at
Subtract line 20 from line 19. Enter the result here. If it is a www.in.gov/dor.
positive figure, also enter this amount on line 22.
Complete the worksheet below to figure the tax. If sales tax was
Tax Calculation paid to the state where the item was originally purchased, a credit
can be taken against the Indiana use tax for an amount up to 7%.
Line 22 - Taxable Adjusted Gross Income, continued Show this credit on the worksheet.
Enter the amount of AGI subject to tax from line 21.
Carry the total calculated sales/use tax due to line 24 on the return.
Line 23 - Adjusted Gross Income Tax
Multiply the amount on line 22 by 4.9%. If the insurance gross Caution. Do not include the amounts reported on Form ST-103
premium tax is paid, enter zero (0). on this worksheet or on Form IT-20.
Line 24 - Sales/Use Tax Nonrefundable Tax Liability Credits
IC 6-2.5-3-2 imposes a use tax on the use, storage, and Nonrefundable credits are limited to the amount of AGI tax.
consumption of tangible personal property in Indiana if: These credits, when combined, cannot be greater than the amount
• The property was purchased or rented in a retail transaction, shown on Form IT-20 line 23. If the total of the credits is more
wherever located; and than the AGI (line 23), adjust the entries by recalculating the
• Indiana sales tax was not paid. credits to the amounts applied on lines 25b through 31b. Enclose
the supporting schedule(s) and/or documentation requested for
The use tax rate is 7%. If taxable items were purchased from outside each credit claimed. See the following example.
Indiana , through the mail (for instance, by catalog or an offer
through the mail), through radio or television advertising, and/or Example. The line 25b college credit of $1,000 plus the line 26b
over the Internet, these purchases may be subject to Indiana sales credit for research expense of $25,000 equals $26,000 total credit.
and use tax if sales tax was not paid at the time of purchase. Line 23 AGI tax is $16,000. Because the combined credits are
$10,000 more than the state tax liability, reduce the total amount
Examples of taxable items include of credits applied (in this case, the $25,000 research credit) by
• Magazine subscriptions; enclosing an explanation showing the calculations. Some credits
• Office supplies; have provisions that allow the unused portion to be carried
• Electronic components; forward and applied in the following year.
• Computer software; and
• Rental equipment. Line 25 - College and University Contribution Credit
A corporate taxpayer might be able to claim a credit against its
Any property that is purchased free of tax, by use of an exemption income tax liability if it made a charitable contribution to one of
certificate or from out of state, and converted to a nonexempt the following:
use by the business is also subject to the use tax at the time of the • A college located within Indiana;
conversion. • A university located within Indiana; or
• A corporation or foundation organized for the benefit of a
Use tax is computed on an annual basis. It should be reported on post-secondary educational institution located within Indiana.
this line if not previously reported on Form ST-103 or directly
through INTIME, DOR’s e-services portal at intime.dor.in.gov.
Sales/Use Tax Worksheet
List all purchases made during the tax year from out-of-state retailers.
Column A Column B Column C
Description of personal property purchased from out-of-state retailer Date of purchase(s) Purchase Price of
Property(s)
Magazine subscriptions:
Mail order purchases:
Internet purchases:
Other purchases:
1. Total purchase price of property subject to the sales/use tax: enter total of Columns C .............................. 1
2. Sales/use tax: Multiply line 1 by .07 (7%) ..................................................................................................... 2
3. Sales tax previously paid on the above items (up to 7% per item) ............................................................... 3
4. Total amount due: Subtract line 3 from line 2. Carry to Form IT-20, line 24. If the amount is negative,
enter zero and put no entry on line 24 of the IT-20 ....................................................................................... 4
IT-20 Corporate Booklet 2022 Page 19
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Limitation for this credit. A corporation is allowed a tax credit Additional inquiries may be directed to:
for contributions to qualified Indiana institutions equal to 50% Indiana Economic Development Corporation,
of the amount of money or property contributed, limited to the One North Capitol, Suite 700,
lesser of: Indianapolis, IN 46204
• 10% of the corporation’s AGI tax for the year when the gifts are Phone: (317) 232-8800
made (computed without regard to any credits against the tax); Website: www.iedc.in.gov
or
• $1,000. Claim the enterprise zone loan interest tax credit on line 28b, and
enclose Schedule LIC with the return. Otherwise, the credit will
To claim this credit, complete Schedule CC-40 with the return. be denied.
Enter the amount of allowable credit on line 25b. For more
information see Schedule CC-40 at www.in.gov/dor/tax- Lines 29 through 31 – Other Nonrefundable Credits
forms/2022-corporatepartnership-income-tax-forms/. It is possible to be eligible to claim other tax liability reduction
credits. List any other qualified credits separately on lines 30
Line 26 - Indiana Research Expense Credit through 31. Each of the credits is assigned a three-digit code.
Indiana has a research expense credit that is similar to the federal
credit (Form 6765). This credit is for increasing research activities If claiming any credits on Schedule IN-OCC, enter the total of
based on qualifying expenses paid in carrying on a trade or those credits on line 29 and enclose Schedule IN-OCC with the
business in Indiana. Compute the state credit by using Schedule return. Otherwise, the credits will be denied.
IT-20REC. Claim this credit on line 26b of Form IT-20, and
enclose Schedule IT-20REC. To claim a portion of a prior-year When claiming the credits on lines 30 and 31, enter the name
Indiana Research Expense Credit, please include the Schedule of each credit, its three-digit code, and the amount claimed. If
IT-20REC from the prior year being utilized. Failure to include claiming more credits, enter the information in the space to the
IT-20REC will result in denial of your claimed credit. left of line 32. Increase line 32 by the amount of the additional
credit(s). Attach a detailed schedule of other credits claimed. For
Schedule IT-20REC is available at www.in.gov/dor/tax- a list of credits see “About Other Tax Liability Credits” beginning
forms/2022-corporatepartnership-income-tax-forms/. on page 27. For more information, see Income Tax Information
For more information visit www.in.gov/dor. Bulletin #59 available at www.in.gov/dor/files/reference/ib59.pdf.
Line 27 - Enterprise Zone Employment Expense Credit Restriction for Certain Tax Credits – Limited to One per Project
This credit is based on qualified investments made within an Within a certain group of credits, a taxpayer may not be granted
Indiana enterprise zone. It is the lesser of 10% of qualifying wages more than one credit for the same project. The entity can choose
or $1,500 per qualified employee. It is limited to the amount of tax the credit to be applied. However, changing the credit selected or
liability on income derived from an enterprise zone. See “About redirecting the investment for a different credit in subsequent years
Enterprise Zone Tax Credits” on page 28. is not permitted. See Income Tax Information Bulletin #59 available
at www.in.gov/dor/files/reference/ib59.pdf for more information.
For more information, see Income Tax Information Bulletin #66,
available at www.in.gov/dor/files/reference/ib66.pdf and Indiana Six credits are included in this group:
Schedule EZ 1, 2, and 3 available at www.in.gov/dor/tax-forms/ 1. Alternative fuel vehicle manufacturer credit;
enterprise-zone-forms/. Additional inquiries may be directed to: 2. Community revitalization enhancement district credit;
Indiana Economic Development Corporation (IEDC), One North 3. Enterprise zone investment cost credit;
Capitol, Suite 700, Indianapolis, IN 46204. Phone: (317) 232-8800. 4. Hoosier business investment credit;
Website: www.iedc.in.gov. 5. Industrial recovery credit; and
6. Venture capital investment credit.
Claim the enterprise zone employment expense tax credit on line
27b. Enclose Schedule EZ 1, 2, and 3 with the return, otherwise Order of Credit Application
the credit will be denied. If claiming more than one credit, first use the credits that cannot
be carried over and applied against the state AGI in another year.
Line 28 - Enterprise Zone Loan Interest Credit Next, use the credits that can be carried over for a limited number
This credit is for up to 5% of the interest received from all of years and applied against the state AGI. If one or more credits
qualified loans made during a tax year beginning before January are available, apply the credits in the order that the credits would
1, 2018, for use in an Indiana enterprise zone. See “About expire. Finally, use the credits that can be carried over and applied
Enterprise Zone Tax Credits” on page 28. against the state AGI in another year. The only exception to this
rule is that a current-year research expense credit must be applied
For more information, see Income Tax Information Bulletin #66, before any research expense credit carryforwards are allowed.
available at www.in.gov/dor/files/reference/ib66.pdf and Indiana
Schedule LIC at www.in.gov/dor/tax-forms/enterprise-zone-forms/. Example. A business has the following credits available to be claimed:
• A neighborhood assistance credit
• A school scholarship credit that can be carried forward to
2023, and
Page 20 IT-20 Corporate Booklet 2022
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• A community revitalization enhancement district credit with Note. Certain Motorsports Investment District Income (prize
an indefinite carryforward winnings) and IN state and Marion County withholding taxes
may be reported on Form IN-MSID and/or Form IN-MSID-A.
The taxpayer would apply the credits in the following order
until the credit is exhausted or their liability is reduced to zero, If the corporation receives Form IN-MSID, it should issue to itself
whichever comes first: a Form IN-MSID-A in order to claim the credit for the Indiana
• A neighborhood assistance credit state and county (if any) withholding amounts on line 37. Make
• A school scholarship credit expiring in 2023, and sure to include Form IN-MSID-A when filing.
• A community revitalization enhancement district credit
A detailed explanation must be enclosed for any credits claimed
See the instructions for line 37 for refundable tax liability credits. on this line.
For more information, see Income Tax Information Bulletin #59,
available at www.in.gov/dor/files/reference/ib59.pdf. Headquarters Relocation Credit (refundable portion)
A business with annual worldwide revenue of $50 million, at least
Line 32 - Total Nonrefundable Tax Liability Credits 75 employees (for credits awarded before July 1, 2022), and which
Enter the total of the nonrefundable tax liability credits reported relocates its corporate headquarters to Indiana may be eligible for a
on lines 25b through 31b. Keep in mind all the restrictions and credit. The credit may be as much as 50 percent of the cost incurred
limitations. If there are more credits to claim, enter the information in relocating the headquarters. Generally, this credit is nonrefundable.
on the space to the left of line 32. Increase line 32 by the amount of
the additional credit(s). Attach a detailed explanation or schedule of Some or all of this credit may be refundable. This credit is
additional credits claimed. Nonrefundable credits are limited to the administered by the Indiana Economic Development Corporation.
amount of AGIT shown on line 23. If the IEDC has ruled some or all of this credit to be refundable,
enter on this line the refundable amount of the credit less the
Line 33 - Total Taxes Due portion of the credit used to offset your tax liability. You must
Total the amount of taxes due: Subtract line 32 from the total of maintain the documentation provided to you that supports the
lines 23 and 24. The result may not be less than zero (0). refundable portion of this credit as DOR may request it.
Caution. The total of all nonrefundable credits (line 32) is limited to For more information (including limitations on the credit and the
the amount of the adjusted gross income tax liability (line 23) unless application process), see Income Tax Information Bulletin #97,
otherwise noted. If the total nonrefundable credits exceeds the tax available at www.in.gov/dor/files/reference/ib97.pdf.
liability, the amounts on lines 25b through 31b must be adjusted.
Line 38 - Economic Development for a Growing Economy
Also see instructions for lines 36 and 37 regarding specific Credit (EDGE)
refundable state tax liability credits. Enter the amount of Economic Development for a Growing
Economy (EDGE) credit being claimed from line 19 of Schedule
Credit for Estimated Tax, Other Payments, and IN-EDGE. Complete Schedule IN-EDGE and enclose it with the
Refundable Credits return. Otherwise, this credit will be denied.
Line 34 - Quarterly Estimated Credits Line 39 - Economic Development for a Growing Economy
Enter the total amount of the estimated quarterly income tax Retention Credit (EDGE-R)
payments for the taxable year remitted with Form IT-6 or Enter the amount of the EDGE-R credit being claimed from line
electronically via INTIME, DOR’s e-services portal at intime.dor. 19 of Schedule IN-EDGE-R. Complete Schedule IN-EDGE-R and
in.gov or by electronic funds transfer (EFT). enclose it with the return. Otherwise, this credit will be denied.
Line 35 - Overpayment Credit Line 40 - Total Payments and Credits
Enter the amount of overpayment, if any, carried over to or made for Add the entries on lines 34 through 39.
this taxable year. Specify the ending tax year(s) of the overpayment.
Balance of Tax Due or Overpayment
Line 36 - Amount of Extension Payment
Enter the amount previously paid with a valid extension of time to Line 41 - Balance of Tax Due
file the return. Enter the net tax due (subtract line 40 from line 33).
Line 37 - Other Payment, Credits Line 42 - Penalty for the Underpayment of Tax
Claim the amount of any other payments and/or refundable tax Enter the penalty for the underpayment of estimated corporate
liability credits allowed for this tax year. This would include any income tax from Schedule IT-2220. Enclose a completed copy of this
credits for composite taxes paid by, and refundable credits passed schedule even if an exception to the underpayment penalty is met.
to, the corporation from a pass-through entity, evidenced on Corporations required to make quarterly estimated payments can use
Schedule IN K-1. Enclose a complete explanation for any entries the annualized income installment method calculated in the manner
made on this line. provided by IRC Section 6655(e) as applied to the corporation’s AGI
tax liability. If using this method, please check the box on this line on
IT-20 Corporate Booklet 2022 Page 21
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Schedule IT-2220. Also enclose a copy of the calculations when filing
the tax return. DOR will review each request on a case-by-case basis.
Certification of Signatures and
Line 43 - Interest Authorization Section
If a payment is made after the original due date, the payment must Sign, date, and print the corporation name on the return. If a paid
include interest. Interest is calculated from the original due date preparer completes the return, authorize DOR to discuss the tax
until the date the payment is made. For current interest rates see return with the preparer by checking the authorization box above
Departmental Notice #3 available at www.in.gov/dor/files/dn03. the line for the name of the personal representative.
pdf, or contact DOR by calling (317) 232-0129.
Personal Representative Information
Note. An extension of time to file does not extend the time to Typically, DOR contacts the corporation if there are any questions
pay any tax due. Tax due must be paid by the original due date. or concerns about the tax return. If DOR can discuss the tax
Interest and penalty are calculated on late payments from the due return with someone else (e.g., the person who prepared it or a
date of the payment. designated person), complete this area.
Line 44 - Late Payment Penalty First, check the “Yes” box that follows the sentence “I authorize
Enter the penalty amount that applies: the Department to discuss my tax return with my personal
• If the return with payment is filed after the original due date, representative.”
a penalty must be entered. The penalty is the greater of $5 or
10% of the balance of tax due. The penalty for paying late is Next, enter:
not imposed if all three of the following conditions are met: • The name of the individual designated as the corporation’s
1. A valid extension of time to file exists; personal representative; and
2. At least 90% of the tax liability was paid by the original • The individual’s email address.
due date; and
3. The remaining tax and interest is paid by the extended If this area is completed, DOR is authorized to contact the
due date. personal representative, instead of the corporation, about this tax
• If the return showing no tax liability (lines 23 and 24) is filed return. After the return is filed, DOR will communicate primarily
late, the penalty for failure to file by the due date is $10 per with the designated personal representative.
day that the return is past due, up to a maximum of $250.
Note. You can decide at any time to revoke the authorization for
Line 45 - Total Amount Owed DOR to be in contact with your personal representative. To do so,
If a payment is due, enter the net total tax plus any applicable you must tell us in a signed statement. Include your name, your
penalties and interest on this line. Remit this amount. A separate Federal Employer Identification Number, and the year of your tax
payment must accompany each return filed. return. Mail your statement to: Indiana Department of Revenue,
P.O. Box 7206, Indianapolis, IN 46207-7206.
Line 46 - Overpayment
If the corporation has overpaid its tax liability, enter the result of Corporate Officer Information
line 40 minus lines 33, 42, and 44. An officer of the organization must sign and date the tax return and
enter the officer’s name and title. Please provide a daytime telephone
If the return is timely filed, a portion or all of the corporation’s number DOR can call if there are any questions about the tax return.
overpayment can be credited to the following year’s estimated tax Also, provide an email address if contact via email is desired.
account. Complete line 48. Enter the portion to be refunded on
line 47. Paid Preparer Information
Fill out this area if a paid preparer completed this tax return. The
Line 47 - Refund paid preparer must sign and date the return. In addition, please
Enter the amount of overpayment requested as a direct refund. enter the following:
• The paid preparer’s email address;
Line 48 - Overpayment Credit • The name of the firm the paid preparer is employed by;
Enter the portion of the overpayment from line 46 to be credited • The paid preparer’s PTIN (personal tax identification
to the following year’s estimated tax account. The total of lines 47 number). This must be the paid preparer’s PTIN; do not enter
and 48 must equal the amount shown on line 46. an FEIN or Social Security number;
• The paid preparer’s complete address.
Note. If the overpayment is reduced because of an error on the
return or an adjustment by DOR, the amount refunded (line 47) Note. Complete this area even if the paid preparer is the same
will be corrected before any changes are made to the amount on individual designated as the personal representative.
line 48. A refund may be applied to other liabilities as provided
under IC 6-8.1-9-2(a) and 6-8.1-9.5. An election to apply an
overpayment to the following year is irrevocable.
Page 22 IT-20 Corporate Booklet 2022
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Total receipts include gross sales of real and tangible personal
property less returns and allowances. Sales of tangible personal
Mailing Options
If taxes are owed, please mail the completed return to: property are in Indiana if the property is delivered or shipped to
Indiana Department of Revenue a purchaser within Indiana regardless of the f.o.b. point or other
P.O. Box 7087 conditions of sale. For tax years beginning on or after Jan. 1, 2016,
Indianapolis, IN 46207-7087 Indiana no longer requires the inclusion of “throwback” sales in
the numerator of the receipts factor.
If taxes are not owed, please mail the completed return to:
Indiana Department of Revenue Sales or receipts not specifically assigned above shall be assigned
P.O. Box 7231 as follows:
Indianapolis, IN 46207-7231
• Gross receipts from the sale, rental, or lease of real property are
attributed to Indiana if the real property is located in Indiana;
• Gross receipts from the rental, lease, or licensing of the use
Specific Instructions for Completing of tangible personal property are attributed to Indiana if the
IT-20, Schedule E property is in Indiana. If property was both within and outside
Indiana during the tax year, the gross receipts are considered in
Use of Apportionment Schedule Indiana to the extent the property was used in Indiana;
Under the Adjusted Gross Income Tax Act, taxable income from • Interest income and other receipts from loans or installment
a trade or business carried on within and outside Indiana is sales contracts that are primarily secured by or deal with real
computed using a single-factor formula based on receipts. For or tangible personal property are attributed to Indiana if the
more information, see Income Tax Information Bulletin #12, security or sale property is located in Indiana; consumer loans
available at www.in.gov/dor/files/reference/ib12.pdf. not secured by real or tangible personal property are attributed
to Indiana if the loan is made to an Indiana resident; and
Note. Interstate transportation corporations should consult commercial loans and installment obligations not secured by
Schedule E-7 for details on apportionment of income. This real or tangible personal property are attributed to Indiana if
schedule is available at www.in.gov/dor/tax-forms/2022- the proceeds of the loan are applied in Indiana.
corporatepartnership-income-tax-forms/. • Interest income, merchant discounts, travel and entertainment
credit card receivables, and credit card holder’s fees are attributed
Part I - Apportionment of Adjusted Gross Income to Indiana where the card charges and fees are regularly billed.
Sales/Receipts. The sales factor is a fraction. The numerator • Receipts from the performance of fiduciary and other services
is the total receipts of the taxpayer in Indiana during the tax are attributed to Indiana where the benefits of the services
year. The denominator is the total receipts of the taxpayer in all are consumed. Receipts from the issuance of traveler’s checks,
jurisdictions during the tax year. money orders, or United States savings bonds are attributed to
the state where those items are purchased.
In the case of certain receipts, all or a portion of the receipts are • Receipts from investments are attributed to Indiana if the
not included. taxpayer’s commercial domicile is in Indiana.
• For receipts includible under IRC section 965 or GILTI (IRC • Gross receipts from the performance of certain
Section 951A), the amount included as a receipt is the amount telecommunications and broadcast services are attributed
included in adjusted gross income minus any amount claimed to Indiana if the income-producing activity is in Indiana. If
as a foreign source dividend under IC 6-3-2-12. such activities are conducted partly within and partly outside
• For receipts from the sale of securities, including stocks, Indiana, the gross receipts from the services are attributable to
bonds, options, and future and forward contracts, only the Indiana if the direct costs incurred in Indiana related to those
net gain from the sale is treated as a receipt. receipts are greater than the direct costs incurred in any other
• For receipts from hedging or similar transactions, only the state, unless the activities are otherwise directly attributed to
net gain resulting from both sets of transactions is treated as Indiana according to IC 6-3-2-2.2 or IC 6-3-2-2(f).
a receipt. • Receipts from other services and other intangibles are
attributed to Indiana if the benefit of the service or intangible
The numerator of the receipts factor must include the following to is received in Indiana. Please see Multistate Tax Commission
the extent included in the receipts numerator: regulations for further information on whether the receipts
• All sales made in Indiana; from a particular transaction are attributed to Indiana.
• All sales made from Indiana to the U.S. government;
• All receipts from sales of business property in Indiana; and Sales to the United States Government. The United States
• All interest, dividend, or other intangible income earned in government is the purchaser when it makes direct payment to the
Indiana. seller. A sale to the United States government of tangible personal
property is attributed to Indiana if it is shipped from an office, a
The numerator contains intangible income attributed to store, a warehouse, or another place of storage in Indiana. See the
Indiana, including interest from consumer and commercial previous rules for sales other than tangible personal property if
loans, installment sales contracts, and credit and debit cards as such sales are made to the United States government.
prescribed under IC 6-3-2-2.2.
IT-20 Corporate Booklet 2022 Page 23
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Other Gross Receipts. On line 6, report other gross business
receipts not included elsewhere and pro rata gross receipts from
Specific Instructions for Completing
all unitary partnerships, excluding from the factors the portion of
distributive share income derived from a non-unitary partnership Form IT-20, Schedule F
[45 IAC 3.1-1-153(b)].
Allocation of Nonbusiness Income and Indiana
On line 7, report direct premiums and annuity considerations received Non-unitary Partnership Income
during the taxable year for insurance upon property or risks in In general, all of the taxpayer’s transactions and activities that are
Indiana. The terms direct premiums and annuity considerations mean dependent on or contribute to the operations of the taxpayer’s
the gross premiums received from direct business as reported in the economic enterprise as a whole constitute the taxpayer’s trade or
corporation’s annual statement filed with the Department of Insurance. business and are classified as business income. Indiana Code (IC)
6-3-1-20 defines “business income” to include all income that is
Total Receipts. Complete all lines as indicated. Add all the receipts apportionable to a state under the US Constitution.
in Column A (lines 1A through 7A), and enter the total online 8A.
In addition, enter the total receipts from everywhere on line 8B. Nonbusiness income is defined as all income not properly
classified as business income.
Apportionment of Income for Indiana
Divide line 8A by line 8B. Multiply by 100 to arrive at a percentage With partnership income, the relationship between a corporate
rounded to the nearest second decimal place. This is the Indiana partner and the partnership controls how the business income
apportionment percentage; carry it to the apportionment entry line is reported. If a unitary relationship exists, the corporate partner
on the return, line 16d on Form IT-20. Enter this amount on line 9. includes its unapportioned share of the partnership’s income
along with its own in the computation of business income subject
DOR will not accept returns filed for AGI tax purposes using to apportionment. The partner includes its pro rata share of
the separate accounting method. Form IT-20, Schedule E must partnership receipts in the apportionment factor.
be used unless DOR has granted written permission. The term
everywhere does not include sales of a foreign corporation in a Note. Partnership distributions included in federal taxable income
place outside the United States. Refer to 45 IAC 3.1-1-153 for tax derived from a partnership not having a unitary relationship with a
treatment of unitary corporate partners. corporate partner (taxpayer) are reported on line 9, column C. All
non-unitary partnership distributions attributed to Indiana must
Important Note. Do not include Schedule E reflecting 0 receipts be entered on line 9, column D for Indiana AGI. These include the
in the denominator unless you are apportioning 100% of taxable apportioned share of the partnership’s Indiana modifications.
income to Indiana. Failure to complete Schedule E or check the
appropriate box if using another apportionment method may result Likewise, any previously apportioned income, including
in DOR computing tax due based on 100% of your taxable income. distributions from tiered partnerships, is treated as allocated
income and is reported on line 9, column C. This is not part of the
Use of any apportionment method other than Schedule E or tax base of apportioned business income.
Schedule E-7 requires prior permission from DOR. If permitted
to use an alternative method, you must attach a supporting The taxpayer’s pro rata portion of such income and modifications
schedule to compute apportioned business income. that were previously attributed to Indiana are carried to line 9,
column D. The total on line 9D is added to the corporation’s
Part II - Business/Other Income Questionnaire nonbusiness income that is allocated to Indiana. It is also added
Complete all applicable questions in this section. If income is to any other business income apportioned to Indiana. These totals
apportioned, enclose the completed Schedule E, Apportionment determine the taxpayer’s total taxable income.
of Income, with Form IT-20.
Line (1) Dividends from nonbusiness sources are allocated to
Indiana if the commercial domicile is in Indiana. Net dividends
from an FSC or a DISC (after federal Schedule C deduction) are
Specific Instructions for Completing treated as business income and must be apportioned.
Schedule IT-20PIC
Line (2) Interest from nonbusiness sources is allocated to Indiana
Transactions involving any member(s) of the same affiliated group if the commercial domicile is in Indiana.
(with a 50% ownership threshold as opposed to 80%) or foreign
corporation(s) involving an intangible expense or interest expenses Line (3) Net capital gains or losses from the sale of nonbusiness
should be reported on the Schedule IT-20PIC. Filers will also use intangible personal property are allocated to Indiana.
this schedule to report any directly related interest expense paid,
accrued, or incurred in transactions with one or more members Net capital gains or losses from the sale or exchange of nonbusiness
of the same affiliated group or one or more foreign corporations. tangible personal property are allocated to Indiana if:
Use Part 1 to report royalties, patent, copyright, or other intangible • The property had a location in Indiana at the time of the sale; or
expenses. Use Part 2 to report interest expenses. Instructions are • The taxpayer’s commercial domicile is in Indiana and the
attached to the schedule. taxpayer is not taxable in the state where the property is located.
Page 24 IT-20 Corporate Booklet 2022
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Note. If the property sold was used previously by the business, the
capital gain or loss from the transaction is business income.
Specific Instructions for Completing
Line (4) Rents and royalties from real property to the extent Schedule IT-2220
they constitute nonbusiness income are allocated to Indiana if
the real property is located in Indiana. Rents and royalties from Who Should File?
nonbusiness tangible personal property are allocated to Indiana to Schedule IT-2220 must be completed and enclosed with Form
the extent the property is used in Indiana. IT-20 any time the corporation did not pay the required amount of
estimated AGI tax in any particular quarter. The schedule must also
The extent of utilization is determined by multiplying the rents and be completed if the corporation meets an exception to the penalty
royalties by the following fraction: The numerator is the number of for underpayment as provided for in Indiana Code 6-3-4-4.1.
days of the property’s physical location in Indiana during the rental
or royalty periods in the tax year. The denominator is the number What Is the Required Amount?
of days of the property’s physical location everywhere during the Qualified estimated payments should equal 25% of the total
rental or royalty periods in the tax year. Such nonbusiness rents income tax due for the year. To avoid the penalty, the quarterly
and royalties are taxed by Indiana if: estimate must equal at least 25% of the final income tax liability
• The taxpayer’s commercial domicile is in Indiana; and for the prior taxable year, 25% of the final income tax liability
• The taxpayer is not organized under the laws of or taxable in for the current taxable year, or equal to the payments required
the state in which the property is used. under the annualized method. If this is the first taxable year of a
corporation, no estimated tax payment is required.
Line (5) Patents, copyrights, and royalties from intangible
property to the extent the income is nonbusiness income, are Corporations having annual income tax liabilities exceeding
allocated to Indiana: $2,500 are subject to an underpayment penalty if:
• To the extent the taxpayer uses the patent, copyright, or • They fail to file estimated tax payments; or
royalty in Indiana; or • They fail to remit a sufficient amount on a quarterly basis.
• To the extent the taxpayer uses the patent, copyright, or
royalty in a state where the taxpayer is not taxable and the Quarterly payments are due whenever the AGI tax liability
taxpayer’s commercial domicile is in Indiana. exceeds $2,500 for a taxable year.
A patent is used in a state to the extent it is employed in PART I - How to Figure Underpayment of
production or other processing in the state or to the extent the Corporate Taxes
patented product is produced in the state. These schedules must be used by an entity to determine whether
the minimum amount of tax was paid timely. To complete these:
A copyright is used in a state to the extent printing or other • Enter the total Indiana AGI tax for the taxable year from
publication originated in the state. Form IT-20
• Enter the total tax reduction credits (college credit,
Line (6) Other Nonbusiness Income. Enter other nonbusiness neighborhood assistance credit, etc.) reported on Form IT-20.
income not included on lines (1) through (5) and line (9). Do not enter estimated tax payments, extension payments,
or prior year’s overpayment credit. Do not enter an amount
Line (7) Total Nonbusiness Income. Enter the gross amount greater than the amount on Line 1.
subtotals from lines (1) through (6), column A. • Subtract line 2 from line 1. This is the current year’s tax liability.
If it is zero, STOP. This means there is no underpayment
Line (8) Total Related Expenses. Add the subtotals of all related penalty owed.
nonbusiness expenses attributed to excluded income from lines
(1) through (6), column B. PART II - How to Figure Exception to
Underpayment Penalty
Line (9) Distributive Share Income from non-unitary partnerships IC 6-3-4-4.1(c) states that every corporation subject to AGI is
and tiered partnerships: In column C, enter the total non-unitary required to report and pay an estimated tax equal to the lesser of:
partnership and tiered partnership income reported on the federal • 25% of the corporation’s estimated adjusted gross income tax
return. In column D, enter the modified apportioned Indiana income liability for the taxable year (Schedule IT-2220); or
from Form IT-65 Schedule IN K-1. Additionally, enter any portion of • The annualized income installment calculated in the manner
tiered partnership income attributed to Indiana in this column. provided by Section 6655(e) of the IRC as applied to the
corporation’s liability for AGI tax.
Line (10) Total Net Nonbusiness Income and Non-unitary
Partnership Income (loss). Add all the subtotals from column C. Special Note for Final Short- or Fiscal-Year Filers. If the previous
Enter the amount of column C on line 14 of Form IT-20. year was for a period of less than 12 months, it is possible to meet
the exception by demonstrating what the liability would have been
Line (11) Total Indiana Nonbusiness Income and Indiana Non- if a 12-month return had been filed. For example, if the previous
unitary Partnership Income. Add all the subtotals from column year was for 6 months, double the total tax for that year. Then enter
D. Enter the amount of column D on line 18 of Form IT-20. 25% of this total. If last year’s tax was zero, enter zero on line 9.
IT-20 Corporate Booklet 2022 Page 25
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Proceed to Part III to recalculate the actual underpayment. Note. The net operating loss deduction computed under IC 6-3-
2-2.6 is available to carry forward up to twenty (20) years. No
PART III - How to Figure the Penalty carryback of NOL deductions is permitted.
The penalty for the underpayment of estimated taxes is assessed
on a quarterly basis. It is based on the difference between the All loss years ending after Jan. 1, 2004, and preexisting NOLs
amount paid for each quarter and 25% of the final tax liability carried over to a taxable year after this date must be recalculated
for the current year. If any underpayment is shown on line 10, by applying the amended provisions of this act.
continue by completing lines 11 through 15 in each column.
Then proceed to the next column. Deductions for NOLs that were incurred in taxable years ending
before Jan. 1, 2004, and carried back or forward and deducted in
11. Enter the remaining overpayment, if any, from line 14 of the taxable years ending before Jan. 1, 2004, are calculated under the
preceding quarter. This amount should have any previous law in effect for the year the NOL was incurred. You must have a
underpayment balance deducted from it. return on file supporting the net operating loss. This includes any
amended returns on which the loss was reported or adjusted.
12. Add line 6 in Part II and line 11 for each quarter.
Who Should File Schedule IT-20NOL?
13. Enter the current year’s quarterly tax due. Figure this by When claiming the loss deduction, corporate taxpayers and
dividing line 3 in Part I by the number of quarters in the nonprofit organizations subject to the AGI tax and having an
taxable period. The divisor cannot be less than 1. Enter the NOL must complete and enclose this schedule with the following
result in each column. See the note for short-period filers. Indiana corporation tax return forms:
• IT-20;
14. Subtract line 13 from line 12. If line 12 is less than line 13, • IT-20NP; or
enter the resulting underpayment and use a minus sign to • IT-20X.
denote the negative amount. If line 12 is greater than line 13,
carry the difference as an overpayment to line 11 of the next Schedule IT-20NOL is not in itself a claim for refund, but an
column. Before doing this, though, deduct any remaining attachment to show how much of the Indiana NOL deduction is
underpayments shown on line 14 of the preceding columns. applied and available to carry over. Corporations doing business as
financial institutions may not use this schedule. Those corporations
15. Multiply the amount of underpayment on line 14 for each must complete Schedule FIT-20NOL. Any NOL incurred for FIT
column by 10% if an exception to the penalty for the quarter purposes cannot be used to claim a deduction on Form IT-20.
was not met on line 10. Enter zero on line 15 if line 10 is zero
or greater for the quarter. Enclose the completed Schedule IT-20NOL, Part 1, with the loss
year return.
16. Add the amounts on line 15 for all quarters, and enter the
result. This is the total underpayment penalty due. Carry this Whenever an NOL deduction is claimed, enclose a separately
amount to the appropriate line on the front of Form IT-20. completed and recomputed NOL schedule of each loss year. Use
revised Schedule IT-20NOL, update Part 2 as needed, and enclose
Short-Period Returns. Lines 9 and 13 must be changed to a copy with the return(s) that claim an NOL deduction.
correspond with the short-period estimated return if the short-
period return is required for a second or later taxable year. The For special rules regarding post-2017 net operating losses for
number of installment payments are determined in accordance with non-profits, please see the specific instructions for the IT-20NP.
the number of periods you are required to use for federal purposes
for the short-year return. If your return is required to use equal Indiana Treatment of NOL Deduction for Adjusted
installment payments for federal purposes, divide the amounts by Gross Income Tax Purposes
the number of required payments. If you are permitted to use an PL 81-2004, effective Jan. 1, 2004, provides for an NOL deduction
annualization method for computing the required payments, check from total Indiana AGI. This deduction is equal to the amount of
the box indicating that you are using an annualization method and a federal NOL, computed under IRC Section 172. It must be for
compute your required payments and penalties using the annualized the taxable year, be derived from sources within Indiana, and be
required payments. For lines 7 through 16, complete only those adjusted for modifications required under IC 6-3-1-3.5.
columns corresponding with the number of full quarters being filed.
Modifications include:
• The add-back of property taxes (for tax periods 1998 and before);
• Income taxes;
Instructions for Schedule IT-20NOL • Charitable contributions;
Indiana Net Operating Loss Deduction • The deduction of interest on U.S. government obligations;
Public Law 81-2004 amended IC 6-3-2-2.6 to provide a net operating • A deduction for foreign gross-up; and
loss (NOL) deduction from Indiana AGI after adding back any other • Bonus depreciation.
NOL deductions taken pursuant to IRC Section 172. The amount of
the unused Indiana balance is available for the following year. Other state deductions (i.e., foreign source dividends) from AGI
may not be used to compute the available NOL.
Page 26 IT-20 Corporate Booklet 2022
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Use aggregate amounts if filing a consolidated return. Affiliated PART 2 - Computation of Indiana Net Operating
groups or corporations involved in mergers must follow the same Loss Deduction and Carryover
guidelines as provided by the IRC and rulings issued by the IRS Schedule IT-20NOL must be completed for each year a loss
regarding treatment of NOL deductions. More than one Schedule occurs. Copies of the schedule should be enclosed with returns
IT-20NOL might be required to comply with these guidelines. for all years an NOL deduction is claimed. If more than one NOL
from different loss years is available, a separate Schedule IT-
Per IC 6-3-2-2.6, corporations are entitled to a net operating loss 20NOL must be completed for each NOL deduction applied.
deduction. The net operating loss deduction will be used up to
the amount of the Indiana adjusted gross income. However, an Note. Any NOL carried forward and deducted in a taxable year
Indiana net operating loss may not be carried over for more than beginning after Dec. 31, 2003, is reduced by the amount of the
20 taxable years after the taxable year of the loss. NOL previously deducted in an earlier year.
PART 1 - Computation of Indiana Net Operating Loss Enter the month, date, and year of the loss year.
Enter the name and federal employer identification number
(FEIN) of the entity reporting or incurring the NOL, and the Column A. For each succeeding year after the loss year, enter the
tax year of the NOL. This entity must be included in the Indiana amount of NOL deduction used.
corporate tax return for the loss year, and must have activity in
Indiana for that tax period. Column B. For each succeeding year after the loss year, enter
the balance of net operating loss deduction remaining available
Line 1. Taxable Business Income from Form IT-20, line 15, or for carryover. This is the amount from Column B of the previous
from Form IT-20NP, line 8. period minus the amount in Column A for the relevant year.
Line 2. Add any amount deducted as foreign-source dividends Any amount remaining in Column B after the 20th period
reported on Form IT-20, line 12, supported by Schedule IT- following the loss year is not available for further use.
20FSD. This amount is not permitted in the computation of the
Indiana net operating loss deduction under IC 6-3-2-2.6 Net Operating Loss Deduction. For reporting purposes of the
taxable year return, claim this full amount as a positive deduction
Line 3. Add any amount reported as a modification to federal on the following lines:
net operating losses required under IRC §172(d). These amounts • Line 20 of Form IT-20;
are disallowed in determining the federal net operating loss • Line 13 of Form IT-20NP; or
deduction and therefore not permitted in the computation of the • Line 2B of Indiana Amended Form IT-20X
Indiana net operating loss deduction under IC 6-3-2-2.6.
For any questions concerning Indiana’s treatment of an NOL
Line 4. Add any amount deducted for contributions to a regional deduction, contact: Indiana Department of Revenue, Tax
development authority infrastructure fund, as allowed by IC Administration, P.O. Box 7206, Indianapolis, IN 46207-7206.
6-3-2-26. This amount is not permitted in the computation of the
Indiana net operating loss deduction under IC 6-3-2-2.6.
About Other Tax Liability Credits
Line 5. Subtract any amount deducted under IRC §250(a)(1)
(B) representing the 50% deduction for global intangible low-
Alternative Fuel Vehicle Manufacturer Credit 845
taxed income for federal purposes and required included in gross This credit has been repealed. However, any previously approved
income. This amount should be added back as part of Line 3. yet unused credit is available to be claimed.
Line 6. Sub-total lines 1 through 5 Also see Income Tax Information Bulletin #103, available at www.
in.gov/dor/files/reference/ib103.pdf.
Line 7. Enter the apportionment percentage from Form IT-20 line
16(d) or from Form IT-20NP line 9, as computed on Schedule E. Enter 8 4 5 on lines 30a and 31a under Other Nonrefundable Credits
if claiming this credit. Enclose a certificate of verification from the
Line 8. Multiply line 6 by line 7 and enter result. IEDC for the allowable amount of credit. Also enclose a proof of
investment with the return, otherwise the credit will be denied.
Line 9. Add or subtract Indiana nonbusiness income (loss) and
Indiana non-unitary partnership income reported on Form IT-20 Note. See the Restriction for Certain Tax Credits - Limited to
line 18, as detailed on Schedule F. One per Project on page 32.
Line 10. Add lines 8 and 9. If the result is a negative figure, this
Coal Gasification Technology Investment Credit 806
is the Indiana NOL deduction available. If this result is a positive A credit is available for a qualified investment in an integrated
figure, you do not have an available Indiana NOL deduction for coal gasification power plant or fluidized bed combustion
this tax period. technology. It must serve Indiana gas utility and electric utility
consumers to qualify. This can include an investment in a facility
IT-20 Corporate Booklet 2022 Page 27
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located in Indiana that converts coal into synthesis gas that can be Enter 8 0 8 on lines 30a and 31a under Other Nonrefundable
used as a substitute for natural gas. Credits if claiming this credit. Enclose the certification from the
IEDC, otherwise the credit will be denied.
For more information, contact Indiana Economic Development
Corporation’s website at www.iedc.in.gov or contact them at One Economic Development for a Growing Economy
North Capitol, Suite 700, Indianapolis, IN 46204. Income Tax (EDGE)
Information Bulletin #99 is also available at www.in.gov/dor/files/ This credit is for businesses that conduct certain activities designed
reference/ib99.pdf. to foster job creation in Indiana. It is a refundable tax liability credit.
Enter 8 0 6 on lines 30a and 31a under Other Nonrefundable Note. Schedule IN-EDGE must be completed and enclosed with
Credits if claiming this credit. Enclose a copy of the utility regulatory the return. Otherwise, the credit will not be allowed. A PIN also
commission’s determination and the certificate of compliance issued must be obtained from the IEDC.
by IEDC with the return, otherwise the credit will be denied.
Claim this credit on line 38 of the return.
College and University Contribution Credit 807
A corporate taxpayer might be eligible for a credit if it made any Contact the Indiana Economic Development Corporation at One
charitable contributions to a college, university, or corporation North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
or foundation organized for the benefit of a post-secondary requirements. For more information call (317) 232-8800 or visit
educational institution located within Indiana. Compute this credit www.iedc.in.gov.
on College Credit Schedule CC-40. Claim this credit on line 25 of
the return. Complete and enclose College Credit Schedule CC-40 Economic Development for a Growing Economy
with the return, otherwise the credit will be denied. Retention (EDGE-R) Credit
This credit is for businesses that conduct certain activities designed to
Schedule CC-40 is available at www.in.gov/dor/tax-forms/2022- foster job retention in Indiana. It is a refundable tax liability credit.
corporatepartnership-income-tax-forms/.
Note. Schedule IN-EDGE-R must be completed and enclosed
See Income Tax Information Bulletin #14 available at www.in.gov/ with the return. Otherwise, the credit will not be allowed.
dor/files/reference/ib14.pdf for eligibility requirements or visit
www.in.gov/dor for more information. Claim this credit on line 39 of the return.
Community Revitalization Enhancement District Contact the Indiana Economic Development Corporation at One
Credit 808 North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
A state and local income tax liability credit is available for a requirements. Visit www.iedc.in.gov for additional information.
qualified investment for the redevelopment or rehabilitation of
property within a community revitalization enhancement district. Economic Development for a Growing Economy -
Nonresident Employees (EDGE-NR) 865
To be eligible for the credit, the intended expenditure plan must This credit is for incremental state income tax amounts that would
be approved by the IEDC before the expenditure is made. The have been withheld on employees from reciprocal states if those
credit is equal to 25% of the IEDC-approved qualified investment employees had been subject to Indiana state tax withholding. Owners
made by the taxpayer during the tax year. DOR has the authority of pass-through entities such as S corporations, partnerships, limited
to disallow any credit if the taxpayer: liability companies, etc., are eligible for this credit. Unlike the EDGE
• Ceases existing operations; and EDGE-R credits, the EDGE-NR credit is a non-refundable credit.
• Substantially reduces its operations within the district or
elsewhere in Indiana; or This credit is administered by the IEDC. Contact them at One
• Reduces other Indiana operations to relocate them into the North Capitol, Suite 700, Indianapolis, IN 46204, via website at
district. www.iedc.in.gov, or by phone at (317) 232-8800.
The taxpayer can assign the credit to a lessee who remains subject The approved credit must be reported on Schedule IN-OCC,
to the same requirements. The assignment must be in writing. found at www.in.gov/dor/tax-forms/2022-individual-income-tax-
Also, any consideration may not exceed the value of the part of forms. Make sure to enclose this schedule with your tax filing. If
the credit assigned. Both parties must report the assignment on you are claiming this credit as an owner of a pass-through entity
state income tax returns for the year of assignment. such as S corporations, partnerships, limited liability companies,
etc., make sure to keep Schedule IN K-1 with your records as
Contact the Indiana Economic Development Corporation at One DOR can require you to provide this information.
North Capitol, Suite 700, Indianapolis, IN 46204, or visit their
website at www.iedc.in.gov for more information about this credit. About Enterprise Zone Tax Credits
Certain areas within Indiana have been designated as enterprise
Note. See the section “Restriction for Certain Tax Credits - zones. Enterprise zones are established to encourage investment
Limited to One per Project” on page 32. and job growth in distressed urban areas.
Page 28 IT-20 Corporate Booklet 2022
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For more information, see Income Tax Information Bulletin #66 Foster Care Donations Credit 867
available at www.in.gov/dor/files/reference/ib66.pdf or contact: Effective starting in taxable year 2022, a credit for donations
Indiana Economic Development Corporation to qualifying foster care organizations is available. The credit
One North Capitol, Suite 700 is 50% of the donation made to qualifying organizations, up to
Indianapolis, IN 46204 a maximum of $10,000 per taxable year. In addition, no more
Phone: (317) 232-8800 than $2,000,000 in credits can be awarded during a state fiscal
Website: www.iedc.in.gov year. See www.in.gov/dor/tax-forms/foster-care-credit-donation-
information/ for further information regarding the application
Enterprise Zone Employment Expense Credit 812 and approval process.
This credit is based on qualified investments made within an
Indiana enterprise zone. It is the lesser of 10% of qualifying wages This credit must be reported on Schedule IN-OCC, found at www.
or $1,500 per qualified employee, up to the amount of tax liability in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-
on income derived from an enterprise zone. Claim this credit on forms/. Make sure to enclose this schedule with your tax filing.
line 27 of the return.
Enclose the approval letter from the Department of Revenue with
For more information on how to calculate this credit, See Indiana the return, otherwise the credit will be denied.
Schedule EZ Parts 1, 2, and 3 available at www.in.gov/dor/tax-
forms/enterprise-zone-forms/.
Headquarters Relocation Credit 818
Complete line 27b if claiming this credit. Also enclose Schedule A business may be eligible for a credit if it meets one of two sets
EZ 2 with the return, otherwise the credit will be denied. of criteria. The first set of criteria (“first test”) is that the business
meets all of the following:
Enterprise Zone Loan Interest Credit 814 • Has an annual worldwide revenue of $50 million;
This credit can be for up to 5% of the interest received from all • Has at least 75 Indiana employees (for credits awarded before
qualified loans before January 1, 2018, for use in an Indiana enterprise July 1, 2022); and
zone. Claim this credit on line 28 of the return. See Income Tax • Relocates its corporate headquarters to Indiana.
Information Bulletin #66 available at www.in.gov/dor/files/reference/
ib66.pdf for more information on how to calculate this credit. The second set of criteria (“second test”) is that the business meets
either (1) or (2), meets (3), and meets (4) or (5):
Note. Schedule LIC must be enclosed if claiming this credit; it is 1. Received at least $4 million in venture capital in the six
available at www.in.gov/dor/tax-forms/enterprise-zone-forms/. For months immediately preceding the business’s application for
additional information, contact Indiana Economic Development this tax credit.
Corporation, One North Capitol, Suite 700, Indianapolis, IN 46204. 2. Closes on at least $4,000,000 in venture capital not more than
six months after submitting the business’s application for this
Complete line 28b if claiming this credit. Enclose Schedule LIC tax credit.
with the return, otherwise your credit will be denied. 3. Has at least 10 Indiana employees (for credits awarded before
July 1, 2022).
Ethanol Production Credit 815 4. Relocates its corporate headquarters to Indiana.
This credit has been repealed. However, any previously approved 5. Relocates the number of jobs equal to 80% of the business’s
yet unused credit is available to be claimed. total payroll during the immediately preceding quarter to an
Indiana location.
Film and Media Production Tax Credit 869
Effective July 1, 2022, a credit is available for expenses incurred The credit may be as much as 50% of the cost incurred in
for qualified film and media production expenses. The amount relocating the taxpayer’s headquarters. For more information
of the taxpayer’s credit is equal to the taxpayer’s qualified film (including limitations on the credit and the application process),
and media production expenses multiplied by a percentage see Income Tax Information Bulletin #97, available at www.
determined by the Indiana Economic Development Corporation, in.gov/dor/files/reference/ib97.pdf.
but not more than 30% of the expenses.
Beginning with the 2022 tax year, this credit must be reported on
Note. Certification for this credit must be obtained from the Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2022-
Indiana Economic Development Corporation. See iedc.in.gov/ corporatepartnership-income-tax-forms/. Make sure to enclose
indiana-advantages/investments/film-and-media-tax-credit for this schedule with your tax filing.
further information.
This credit is administered by the IEDC. You may contact them at
This credit must be reported on Schedule IN-OCC, found at www. One North Capitol, Suite 700, Indianapolis, IN 46204, via website
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax- at www.iedc.in.gov, or by phone at (317) 232-8800.
forms/. Make sure to enclose this schedule with your tax filing.
Submit a copy of the certificate from the Indiana Economic
Enclose the certification letter from the IEDC with the return, Development Corporation verifying the amount of tax credit for the
otherwise the credit will be denied. taxable year with the return. Otherwise, the credit will be denied.
IT-20 Corporate Booklet 2022 Page 29
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Important. If the IEDC has granted a refundable credit under Indiana Insurance Guaranty Association
the second test, see the instructions on page 21 for completing Credit 817
Form IT-20, Line 37. An insurance company might be eligible to claim a tax credit of
up to 20% of an assessment paid to either the Indiana Insurance
Historic Building Rehabilitation Credit 819 Guaranty Association or the Indiana Life and Health Insurance
This credit has been repealed. However, any previously approved Guaranty Association (see IC 27-6-8-15 and IC 27-8-8-16).
yet unused credit is available to be claimed. Enter 8 1 9 on lines 30a
and 31a under Other Nonrefundable Credits if claiming this credit. Enter 8 1 7 on lines 30a and 31a under Other Nonrefundable Credits
if claiming this credit. Enclose a supporting assessment and credit
Hoosier Business Investment Credit 820 documentation with the return, otherwise the credit will be denied.
This credit is for qualified investments, including costs associated
with the following: Indiana Research Expense Credit 822
• Constructing special-purpose buildings and foundations; Indiana has a research expense credit similar to the federal credit
• Making onsite infrastructure improvements; (Form 6765) for increasing research activities for qualifying
• Modernizing existing equipment; expenses paid in carrying on a trade or business in Indiana.
• Purchasing equipment used to make motion pictures or Compute the credit using Schedule IT-20REC.
audio production;
• Purchasing or constructing new equipment directly related to Claim this credit on line 26 of the return.
expanding the workforce in Indiana;
• Retooling existing machinery and equipment; Schedule IT-20REC is available at www.in.gov/dor/tax-forms/2022-
• Purchasing retooled or refurbished machinery; corporatepartnership-income-tax-forms/. To claim this credit,
• Constructing or modernizing transportation or logistical complete the schedule and enter the amount of credit allowed on
distribution facilities; line 26b. Enclose Schedule IT-20REC with the return, otherwise the
• Improving the transportation of goods via highway, rail, air, credit will be denied. For more information visit www.in.gov/dor.
or water; Filers claiming the Research Expense credit are required to maintain
• Improving warehousing and logistical capabilities; and keep documentation supporting the credit in a usable form.
• Purchasing new pollution control, energy conservation, or
renewable energy generation equipment; and Individual Development Account Credit 823
• Purchasing new onsite digital manufacturing equipment. A credit is available for qualified contributions made to a
community development corporation participating in an
This credit is administered by the IEDC. Contact them at One Individual Development Account (IDA) program. The IDA
North Capitol, Suite 700, Indianapolis, IN 46204. Visit the IEDC’s program is designed to assist qualifying low-income residents
website at www.iedc.in.gov or call at (317) 232-8800. See Income in accumulating savings and building personal finance skills.
Tax Information Bulletin #95 at www.in.gov/dor/files/reference/ The organization must have an approved program number from
ib95.pdf for additional information. Submit a copy of the the Indiana Housing and Community Development Authority
certificate from the IEDC verifying the amount of tax credit for (IHCDA) before a contribution qualifies for preapproval. The
the taxable year with the return. credit is equal to 50% of the qualified contribution, which must
not be less than $100 and not more than $50,000.
Note. See the section “Restriction for Certain Tax Credits -
Limited to One per Project” on page 32. Applications for the credit are filed through the IHCDA. To
request additional information about the definitions, procedures,
Indiana Comprehensive Health Insurance and qualifications for obtaining this credit, contact Indiana
Association (ICHIA) 821 Housing and Community Development Authority, 30 S. Meridian
IC 27-8-10-2.4 provides that for each tax year beginning after Street, Suite 1000, Indianapolis, IN 46204.
Dec. 31, 2006, an insurance company can annually claim a credit
against AGI tax and premiums tax. This credit is equal to 10% of Enter 8 2 3 on lines 30a and 31a under Other Nonrefundable
the amount of the assessments paid before Jan. 1, 2005, against Credits if claiming this credit. Keep any approval certification or
which a tax credit has not been taken before Jan. 1, 2005. letter of credit assignment with your records as DOR can require
you to provide this Information at a later date.
To claim this credit, provide a signed copy of the completed State
of Indiana Assessment Tax Credit Form to show the amount of Industrial Recovery Credit 824
paid assessments against which a tax credit has not been taken as This credit is based on a taxpayer’s qualified investment in
of Dec. 31, 2004, which was filed with the ICHIA. If the maximum a vacant industrial facility located in a designated industrial
amount of credit exceeds the tax liability for the year, the unused recovery site. If the Indiana Economic Development Corporation
portion of the credit year can be carried forward. approves the application and the plan for rehabilitation, you
are entitled to a credit based on the “qualified investment.” The
Enter 8 2 1 on lines 30a and 31a under Other Nonrefundable minimum age for a facility to be eligible for this credit has been
Credits if claiming this credit. reduced from 20 years to 15 years. This credit is available to pass-
through entities such as S corporations, partnerships, limited
liability companies, etc.
Page 30 IT-20 Corporate Booklet 2022
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Note. Except for in situations described in the next sentence, Redevelopment Tax Credit 863
a taxpayer is entitled to receive this credit only for a qualified You may be eligible for a credit if you make a qualified investment
investment made before January 1, 2020. A taxpayer is entitled to for the redevelopment or rehabilitation of real property located
receive a credit for a qualified investment made after December within a qualified redevelopment site.
31, 2019, and before January 1, 2030, if the taxpayer is awarded a
credit under: This credit is administered by the Indiana Economic Development
• an application approved by the Indiana Economic Corporation (IEDC), One North Capitol, Suite 700, Indianapolis,
Development Corporation (IEDC) before January 1, 2020; or IN, 46204. Visit the IEDC website at www.iedc.in.gov or call (317)
• an agreement entered into by the taxpayer and IEDC before 232-8800 for additional information.
January 1, 2021.
The approved credit must be reported on Schedule IN-OCC,
Important. Any unused credit existing before Jan. 01, 2020, is still found at www.in.gov/dor/tax-forms/2022-individual-income-tax-
eligible for carryforward for an unlimited number of years. forms. Make sure to enclose this schedule with your tax filing.
For additional information regarding procedures for obtaining this Riverboat Building Credit 832
credit, contact the Indiana Economic Development Corporation, This credit has been repealed. However, any previously approved
One North Capitol, Suite 700, Indianapolis, IN 46204, call (317) yet unused credit is available to be claimed.
232-8800, or visit their website at www.iedc.in.gov.
Enter 8 3 2 on lines 30a and 31a under Other Nonrefundable
Note. See the section “Restriction for Certain Tax Credits - Credits if claiming this credit. Enclose certification from the
Limited to One per Project” on page 32. IEDC, the credit assignment, and proof of an investment with the
return. Otherwise, the credit will be denied.
Military Base Investment Cost Credit 826
This credit has been repealed. However, any previously approved School Scholarship Credit 849
yet unused credit is available to be claimed. A credit is available for donations to certain scholarship-granting
organizations (SGOs). The amount of a taxpayer’s credit is equal
Military Base Recovery Credit 827 to 50% of the amount of the contribution made to the SGO for a
This credit has been repealed. However, any previously approved school scholarship program. In some cases, the department may
yet unused credit is available to be claimed. round the credit down to the nearest dollar if the department
receives information that the credit should be the amount as
Natural Gas Commercial Vehicle Credit 858 rounded down. While there are no limits to how much a donor
This credit has been repealed. However, any previously approved can contribute to a qualified SGO, the entire tax credit program
yet unused credit is available to be claimed. cannot award more than $18.5 million in credits per state fiscal
year of July 1, 2022 – June 30, 2023.
The carryforward portion of the previously approved credit must
be reported on Schedule IN-OCC, found at www.in.gov/dor/tax- To qualify for the credit, you must make a contribution to
forms/2022-corporatepartnership-income-tax-forms/. Make sure a scholarship granting organization that is certified by the
to enclose this schedule with your tax filing. For more information Department of Education. Visit the Indiana Department of
about this credit, see Income Tax Information Bulletin #109 Education’s website at www.in.gov/doe/students/indiana-choice-
available online at www.in.gov/dor/files/reference/ib109.pdf. scholarship-program/ for additional information.
Neighborhood Assistance Credit 828 The approved credit must be reported on Schedule IN-OCC, found
If you made a contribution or engaged in activities to upgrade at www.in.gov/dor/tax-forms/2022-corporatepartnership-income-
areas in Indiana, you may be able to claim a credit for this tax-forms/. Make sure to enclose this schedule with your tax filing.
assistance. Contact the Indiana Housing & Community
Development Authority, Neighborhood Assistance Program, 30 S. Venture Capital Investment Credit 835
Meridian, Suite 1000, Indianapolis, IN 46204, telephone number A taxpayer who provides qualified investment capital to a
(317) 232-7777 (800-872-0371 outside Indianapolis), for more qualified Indiana business may be eligible for this credit. Per IC
information. Pass-through entities are eligible for the credit. 6-3.1-24-8, for calendar years beginning after Dec. 31, 2010, the
maximum credit available to a qualified business is $1 million.
Enter 8 2 8 on lines 30a and 31a under Other Nonrefundable
Credits if claiming this credit. Enclose an approved Form NC-20, Note. Certification for this credit must be obtained from the
otherwise the credit will be denied. Indiana Economic Development Corporation, Development
Finance Office, VCI Credit Program, One North Capitol, Suite 700,
New Employer Credit 850 Indianapolis, IN 46204. Apply online through the IEDC’s website
This credit has been repealed. However, any previously approved www.iedc.in.gov, or call (317) 232-8800 for more information.
yet unused credit is available to be claimed.
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This credit must be reported on Schedule IN-OCC, found at www.
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-
Special Reminders
forms/. Make sure to enclose this schedule with your tax filing. • A corporation electing to file as an S corporation must file on
Form IT-20S.
Note. See the Restriction for Certain Tax Credits - Limited to • A regular C corporation must file Form FIT-20, Indiana
One per Project below. Financial Institution Income Tax Return, instead of Form
IT-20 when 80% of its gross income is derived from activities
Venture Capital Investment Credit – Qualified that constitute the business of a financial institution.
Indiana Investment Credit 868 • If there is more than $1,000 in gross retail receipts from the
A taxpayer who provides qualified investment capital (either debt sale of utility services received before July 1, 2022, filing Form
or equity capital) to a qualified Indiana investment fund may be URT-1 (Utility Receipts Tax Return), in addition to Form IT-
eligible for this credit. 20, might be required.
• A Nonprofit Corporation must file Form IT-20NP and/or
Note. Certification for this credit must be obtained from the Form NP-20. See IT-20NP booklet for more information.
Indiana Economic Development Corporation, Development • A corporation filing on a fiscal or short-year basis must enter
Finance Office, VCI Credit Program, One North Capitol, Suite its tax year beginning and ending dates on the return.
700, Indianapolis, IN 46204. • An NOL deduction must be recalculated by completing
revised Schedule IT-20NOL, found at www.in.gov/dor/tax-
This credit must be reported on Schedule IN-OCC, found at www. forms/2022-corporatepartnership-income-tax-forms/.
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax- • Nonbusiness income must be supported by completing Form
forms/. Make sure to enclose this schedule with your tax filing. IT-20, Schedule F, Allocation of Non-business Income and
Indiana Non-unitary Partnership Income.
Apply online through the IEDC’s website at www.iedc.in.gov or • The Penalty for Underpayment of Corporate Income Tax,
call (317) 232-8800 for more information. Schedule IT-2220, must be completed and enclosed with the
return to reflect the applicable penalty and/or exceptions.
Enclose the certification letter from the IEDC with the return, • If an extension of time to file exists, prepay at least 90% of the
otherwise the credit will be denied. Do not claim this credit before tax due by the original due date. Failure to do so will result in
July 1, 2023. a 10% penalty on the amount paid after the original due date.
Interest will be due on any payment made after the original
Restriction for Certain Tax Credits - Limited to due date. Indicate on question V whether there is one file
One Per Project a valid state extension of time, a federal Form 7004, or an
A taxpayer may not be granted more than one credit for the electronic extension to file.
same project. The credits that are included are the alternative • Corporations filing consolidated returns must enclose Schedule
fuel vehicle manufacturer credit, community revitalization 8-D to list the affiliated Indiana group. In addition, a schedule
enhancement district credit, enterprise zone investment cost that reflects the net federal taxable income, inter-company
credit, Hoosier business investment credit, industrial recovery receipts, and Indiana modifications of each corporation must
credit, and the venture capital investment credit. Apply this accompany the return to support the AGI calculation.
restriction when figuring your credits. • DOR requires that the appropriate lines be completed on
the official forms. For example, do not refer to a separate
schedule when computing the AGI tax. Rather, complete the
return in full. Failure to do so causes delays in processing and
may result in notices of assessment being issued.
• Enclose copies of pages 1 through 5 of the federal
Corporation Income Tax Return, Schedule M-3, or pro forma
form with the Indiana corporation income tax return. This
requirement is made under the authority of IC 6-8.1-5-4(d).
• If the name change box is checked, Amended Articles of
Incorporation or Amended Certificate of Authority filed
with the Indiana Secretary of State must be enclosed with the
return copies.
• Check the “final return” box on question J only if the
corporation is dissolved, is liquidated, or withdrew from the
state. Form BC-100 must be timely filed to close out any state
sales and withholding accounts.
Page 32 IT-20 Corporate Booklet 2022
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An RRMC must be displayed at each location of business. A
company that provides a service but has no employees might not
Additional Information
need to register. If unsure, contact DOR at (317) 232-2240.
Starting a New Business in Indiana
Formal business organizations require some filing with the Registering Multiple Locations. To register multiple locations
Secretary of State, Corporations Division. It is suggested to or add a location to an existing business visit INBiz (inbiz.
consult an attorney before forming a formal business entity. in.gov). Go to INTIME (intime.dor.in.gov) to register additional
locations, add additional tax types, manage accounts, and request
After a business entity has formed or been granted authority to do consolidating locations for certain business taxes.
business in Indiana, it has an ongoing responsibility to file regular
business entity reports. These reports are due every two years Sales Tax Exemption Certificates
for both nonprofit organizations and for-profit businesses. The Registered retail merchants must collect Indiana sales tax on any
filings are due during the anniversary month of the organization’s sale of tangible personal property unless the customer presents a
formation. (See IC 23-0.5-2-13.) valid exemption certificate. The exemption certificate is kept by
the seller as part of its business records and sales invoices. It must:
All organizational filings and reports for formal business entities • Be legible;
should be sent to: Indiana Secretary of State, Business Services • Be signed; and
Division, 302 W. Washington Street, Room E018, Indianapolis, IN • Include the customer’s tax exempt number.
46204.
A business registered as a retail merchant can issue an exemption
For more detailed information about new businesses, check out certificate and purchase tangible personal property exempt from
the general requirements for starting business in the Business sales tax when the property is:
Owner’s Guide to State Government. • Purchased for resale;
• Made into property being resold;
Registering with the Indiana Department of Revenue • Directly used in the manufacturing of tangible personal
When starting a new business in Indiana, the new business owner property to be sold; or
might need to register with DOR. Registration is required if • Exempt by law.
the business owner will have employees. It’s also required if the
business owner intends to sell (retail or wholesale) or rent or lease INTIME
tangible personal property. Legislation requires the filing and remitting of withholding and
sales tax electronically.
Any company registering for Indiana withholding tax must
provide its federal employer identification number (FEIN). If Businesses can file and remit their sales and withholding taxes
a business owner does not have an FEIN, visit www.irs.gov to through INTIME, DOR’s e-services portal at intime.dor.in.gov,
register for one. which enables businesses to manage business tax obligations
for Indiana retail sales, withholding, out-of-state sales, metered
INBiz (inbiz.in.gov) can be used to register with DOR for the pump sales, tire fees, fuel taxes, wireless prepaid fees, and Type II
following: gaming taxes.
• Alcohol and tobacco tax;
• Retail Sales tax; Information on how businesses can make payments electronically
• Out-of-State Sales tax; is available at www.in.gov/dor/online-services/pay-taxes-
• Tire Fee tax; electronically/.
• Fuel Taxes;
• Wireless Prepaid Fees; Alternatively, businesses can have a software vendor or tax
• Type II Gaming taxes; professional manage tax obligations. This still meets the
• Withholding tax; electronic mandate requirement because the software vendor or
• Food and beverage tax; tax professional will file and pay electronically. Another option
• County innkeeper’s tax; and for sales tax compliance is meeting the Streamlined Sales Tax
• Motor vehicle rental excise tax. requirements. For more information, visit www.in.gov/dor/
business-tax/sales-tax/streamlined-sales-tax/.
If it is indicated on a business tax registration that a business will
be collecting Indiana gross retail sales tax, the business will be
issued a Registered Retail Merchants Certificate (RRMC).
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