Credit and Deduction Changes
- Effective Jan. 1, 2014 (retroactive), the credit for natural gas-powered vehicles no longer applies to vehicles using alternative fuel and no longer requires the vehicle to be used in providing public transportation. The credit also now requires that the vehicle be purchased or leased from a dealer in Indiana and weigh more than 33,000 pounds to be eligible. Refer to Information Bulletin #109 for more information.
- Effective Jan. 1, 2014, winners of Olympic medals (Gold, Silver, Bronze) are able to deduct an amount up to the value of an Olympic medal and prize money paid by the United States Olympic Committee.
- Effective Jan. 1, 2014, pass-through entities are eligible to claim the Industrial Recovery Tax Credit.
- Effective July 1, 2014, taxpayers may continue to carry forward any unused tax credit from a prior taxable year even after the tax credit has been repealed, except as otherwise expressly provided.
- Effective July 1, 2014, the Venture Capital Investment credit is repealed.
- Several tax credits have been repealed, effective Jan. 1, 2015: the Indiana Riverboat Building credit, Voluntary Remediation credit, Blended Biodiesel credit, Ethanol Production credit, Prison Investment Credit, and New Employer credit.
- Effective Jan. 1, 2015, taxpayers may claim a state adoption credit. The credit will be limited to the lesser of 10 percent of the adoption credit granted of the taxpayer’s federal tax return or the annual state tax liability. Look for this credit on the 2015 tax return in 2016.
- Effective Jan. 1, 2015, the income limitation for purposes of calculating the Lake County Residential Income Tax Credit will be based on Indiana adjusted gross income instead of earned income. Look for this change on the 2015 tax return in 2016.
- Effective July 1, 2014, the following Indiana counties may adopt an ordinance to have a referendum to increase their local option income tax (LOIT) for purposes of funding central Indiana transportation: Delaware, Hamilton, Hancock, Johnson, Madison, and Marion. If the county(s) does not adopt an ordinance to have a referendum, certain townships in the county(s) can request a referendum if the township is located adjacent to a county or another township where a public transportation project has been approved. If a township approves the referendum, the additional tax rate applies to only county taxpayers who reside in the township where the voters have approved a referendum.
- Effective Jan. 1, 2015, the credit for local taxes paid outside of Indiana may be used to offset the county economic development income tax. Another credit available in 2016 on 2015 tax returns.
Same-sex Marriage Tax Filing Guidance
Same-sex marriages are legal in Indiana based on court rulings. Same-sex couples should file their state return using the same marital status as is used on their federal tax return.
Extension of Time to File
Effective Jan. 1, 2015, the state individual extension of time to file due date is extended from June 15 to Oct. 15 (plus 30 days, or until Nov. 14) of the tax year. Also, any penalty shall be based on the amount of tax not paid on or before the end of the extension period (Nov. 14).