CHAPTER 5. DEDUCTIONS

IC 6-2.3-5
    Chapter 5. Deductions

IC 6-2.3-5-1
Annual operating deduction
    Sec. 1. (a) Each taxable year a taxpayer is entitled to deduct fromthe taxpayer's gross receipts an amount equal to the product of:
        (1) one thousand dollars ($1,000); multiplied by
        (2) a fraction.
The numerator of the fraction is the number of days in the taxpayer'staxable year for which the taxpayer is subject to the utility receiptstax, and the denominator of the fraction is the number of days in thetaxpayer's taxable year.
    (b) If a taxpayer files quarterly gross receipts tax returns thetaxpayer may use a proportionate part of the deduction provided bysubsection (a) for each return filed.
    (c) A taxpayer is entitled to only one (1) deduction under thissection each taxable year, regardless of the number of partners orparticipants in the organization.
    (d) An affiliated group that files a consolidated return underIC 6-2.3-6-5 is entitled to only one (1) deduction under this sectionon that consolidated return.
As added by P.L.192-2002(ss), SEC.47.

IC 6-2.3-5-2
Bad debts
    Sec. 2. Each taxable year, a taxpayer that reports the taxpayer'sgross receipts on an accrual basis is entitled to deduct bad debts fromthe taxpayer's gross receipts in the same manner provided inIC 6-2.5-6-9.
As added by P.L.192-2002(ss), SEC.47.

IC 6-2.3-5-3
Resource recovery system
    Sec. 3. (a) Except as provided in subsection (b), if:
        (1) for federal income tax purposes a taxpayer is allowed adepreciation deduction for a particular taxable year with respectto a resource recovery system; and
        (2) the resource recovery system processes solid waste orhazardous waste;
the taxpayer is entitled to a deduction from the taxpayer's grossreceipts for that same taxable year. The amount of the deductionequals the total depreciation deductions that the taxpayer is allowed,with respect to the system, for that taxable year under Sections 167and 179 of the Internal Revenue Code.
    (b) A taxpayer is not entitled to the deduction provided by thissection for a particular taxable year with respect to a resourcerecovery system that is directly used to dispose of hazardous wasteif during that taxable year the taxpayer:
        (1) is convicted of any criminal violation under IC 13, including

IC 13-7-13-3 (before its repeal) or IC 13-7-13-4 (before itsrepeal); or
        (2) is subject to an order or consent decree based upon aviolation of a federal or state rule, regulation, or statutegoverning the treatment, storage, or disposal of hazardouswastes that had a major or moderate potential for harm.
As added by P.L.192-2002(ss), SEC.47. Amended by P.L.137-2007,SEC.4.

IC 6-2.3-5-4
Amount received for return of empty containers
    Sec. 4. (a) Each taxable year a taxpayer is entitled to deduct fromthe taxpayer's gross receipts the amount paid by the taxpayer duringthat taxable year for the return of an empty container of the typecustomarily returned by the buyer of the contents for reuse as acontainer.
    (b) If a taxpayer is required to file quarterly gross receipts taxreturns, the taxpayer may claim the deduction provided by thissection on those returns.
As added by P.L.192-2002(ss), SEC.47.

IC 6-2.3-5-5
Interstate mobile telecommunications
    Sec. 5. A taxpayer is entitled to a deduction for gross receiptsexempt from taxation under IC 6-8.1-15 and the MobileTelecommunications Sourcing Act (4 U.S.C. 116 et seq.).
As added by P.L.192-2002(ss), SEC.47.

IC 6-2.3-5-6
Bottled water or gas
    Sec. 6. A taxpayer is entitled to a deduction for retail sales ofbottled water or gas to the extent that the purchase of the water or gaswas treated as a retail transaction under IC 6-2.3-3-6.
As added by P.L.192-2002(ss), SEC.47.