IC 6-5.5 ARTICLE 5.5. TAXATION OF FINANCIAL
INSTITUTIONS
IC 6-5.5-1
Chapter 1. Definitions
IC 6-5.5-1-1 Application of definitions
Sec. 1. The definitions in this chapter apply throughout this
article. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-2 "Adjusted gross income" defined
Sec. 2. (a) Except as provided in subsections (b) through (d),
"adjusted gross income" means taxable income as defined in Section
63 of the Internal Revenue Code, adjusted as follows:
(1) Add the following amounts:
(A) An amount equal to a deduction allowed or allowable
under Section 166, Section 585, or Section 593 of the
Internal Revenue Code.
(B) An amount equal to a deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(C) An amount equal to a deduction or deductions allowed
or allowable under Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the
state level by a state of the United States or levied at the
local level by any subdivision of a state of the United States.
(D) The amount of interest excluded under Section 103 of
the Internal Revenue Code or under any other federal law,
minus the associated expenses disallowed in the computation
of taxable income under Section 265 of the Internal Revenue
Code.
(E) An amount equal to the deduction allowed under Section
172 or 1212 of the Internal Revenue Code for net operating
losses or net capital losses.
(F) For a taxpayer that is not a large bank (as defined in
Section 585(c)(2) of the Internal Revenue Code), an amount
equal to the recovery of a debt, or part of a debt, that
becomes worthless to the extent a deduction was allowed
from gross income in a prior taxable year under Section
166(a) of the Internal Revenue Code.
(G) Add the amount necessary to make the adjusted gross
income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation to the property in the year
that it was placed in service.
(H) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable
year equal to the amount of adjusted gross income that
would have been computed had an election for federal
income tax purposes not been made for the year in which the
property was placed in service to take deductions under
Section 179 of the Internal Revenue Code in a total amount
exceeding twenty-five thousand dollars ($25,000).
(I) Add an amount equal to the amount that a taxpayer
claimed as a deduction for domestic production activities for
the taxable year under Section 199 of the Internal Revenue
Code for federal income tax purposes.
(J) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January
1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from
the adjusted gross income of any taxpayer that added an
amount to adjusted gross income in a previous year the
amount necessary to offset the amount included in federal
gross income as a result of the deferral of income arising
from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before
January 1, 2011, of an applicable debt instrument, as
provided in Section 108(i) of the Internal Revenue Code.
(K) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(v)
of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had
the classification not applied to the property in the year that
it was placed in service.
(L) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(ix) of the Internal Revenue Code equal to the
amount of adjusted gross income that would have been
computed had the classification not applied to the property
in the year that it was placed in service.
(M) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that claimed the
special allowance for qualified disaster assistance property
under Section 168(n) of the Internal Revenue Code equal to
the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the
property.
(N) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 179C of the Internal Revenue Code to expense
costs for qualified refinery property equal to the amount of
adjusted gross income that would have been computed had
an election for federal income tax purposes not been made
for the year.
(O) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 181 of the Internal Revenue Code to expense
costs for a qualified film or television production equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year.
(P) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that treated a loss
from the sale or exchange of preferred stock in:
(i) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(ii) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable
year or in an earlier taxable year equal to the amount of
adjusted gross income that would have been computed had
the loss not been treated as an ordinary loss.
(Q) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code for active
financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(2) Subtract the following amounts:
(A) Income that the United States Constitution or any statute
of the United States prohibits from being used to measure
the tax imposed by this chapter.
(B) Income that is derived from sources outside the United
States, as defined by the Internal Revenue Code.
(C) An amount equal to a debt or part of a debt that becomes
worthless, as permitted under Section 166(a) of the Internal
Revenue Code.
(D) An amount equal to any bad debt reserves that are
included in federal income because of accounting method
changes required by Section 585(c)(3)(A) or Section 593 of
the Internal Revenue Code.
(E) The amount necessary to make the adjusted gross income
of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation.
(F) The amount necessary to make the adjusted gross income
of any taxpayer that placed Section 179 property (as defined
in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year in which the property was placed
in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding
twenty-five thousand dollars ($25,000).
(G) Income that is:
(i) exempt from taxation under IC 6-3-2-21.7; and
(ii) included in the taxpayer's taxable income under the
Internal Revenue Code.
(b) In the case of a credit union, "adjusted gross income" for a
taxable year means the total transfers to undivided earnings minus
dividends for that taxable year after statutory reserves are set aside
under IC 28-7-1-24.
(c) In the case of an investment company, "adjusted gross income"
means the company's federal taxable income multiplied by the
quotient of:
(1) the aggregate of the gross payments collected by the
company during the taxable year from old and new business
upon investment contracts issued by the company and held by
residents of Indiana; divided by
(2) the total amount of gross payments collected during the
taxable year by the company from the business upon investment
contracts issued by the company and held by persons residing
within Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a
person, copartnership, association, limited liability company, or
corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues
in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if
the gross payments received by the company during the taxable
year on outstanding investment contracts, plus interest and
dividends earned on those contracts (by prorating the interest
and dividends earned on investment contracts by the same
proportion that certificate reserves (as defined by the
Investment Company Act of 1940) is to the company's total
assets) is at least fifty percent (50%) of the company's gross
payments upon investment contracts plus gross income from all
other sources except dividends from subsidiaries for the taxable
year. The term "investment contract" means an instrument listed
in clauses (A) through (G). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.15; P.L.68-1991, SEC.1; P.L.8-1993, SEC.94; P.L.28-1997,
SEC.20; P.L.119-1998, SEC.13; P.L.273-1999, SEC.52;
P.L.105-2003, SEC.4; P.L.246-2005, SEC.75; P.L.223-2007, SEC.5;
P.L.182-2009(ss), SEC.233.
IC 6-5.5-1-3 "Business of a financial institution" defined
Sec. 3. "Business of a financial institution" has the meaning set
forth in section 17(d) of this chapter. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-4 "Commercial domicile" defined
Sec. 4. "Commercial domicile" means:
(1) for a regulated financial corporation:
(A) the taxing jurisdiction under the laws of which it is
organized; or
(B) if it is organized under the laws of the United States, the
place designated as its principal office with the regulatory
authority;
(2) if it is a foreign bank, the state where it has established a
federal agency or federal branch under Section 4 of the
International Banking Act of 1978 (12 U.S.C. 3102) or if it
transacts business in more than one (1) state, its home state as
provided in Section 5(c) of the International Banking Act of
1978 (12 U.S.C. 3103(c)); or
(3) for all other entities, the principal place from which the
trade or business of the entity is directed or managed. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-5 "Compensation" defined
Sec. 5. "Compensation" means wages, salaries, commissions, and
any other form of remuneration paid to employees for personal
services. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-6 "Corporation" defined
Sec. 6. "Corporation" means an entity that is:
(1) a corporation (as defined in Internal Revenue Code Section
7701(a)(3)) for federal income tax purposes, including an entity
taxed as a corporation under the Internal Revenue Code; and
(2) organized under the laws of the United States, this state, any
other taxing jurisdiction, or a foreign government. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.16.
IC 6-5.5-1-7 "Department" defined
Sec. 7. "Department" refers to the department of state revenue. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-8 "Employee" defined
Sec. 8. "Employee" has the same meaning as it has for purposes
of federal income tax withholding under Sections 3401 through 3404
of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-9 "Foreign bank" defined
Sec. 9. "Foreign bank" means an entity organized under the laws
of a foreign country, a territory of the United States, Puerto Rico,
Guam, American Samoa, or the Virgin Islands that engages in the
business of a financial institution or a subsidiary or affiliate
organized under those laws of such an entity. The term includes
foreign commercial banks, foreign merchant banks, and other foreign
institutions that engage in banking activities that are usually in
connection with the business of a financial institution in the countries
where the foreign institutions are organized or operating. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-10 "Gross income" defined
Sec. 10. "Gross income" means gross income (as defined in
Section 61 of the Internal Revenue Code) for federal income tax
purposes. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-11 "Internal Revenue Code" defined
Sec. 11. "Internal Revenue Code" has the meaning set forth in
IC 6-3-1-11. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-12 "Nonresident taxpayer" defined
Sec. 12. "Nonresident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile outside Indiana. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.2.
IC 6-5.5-1-13 "Resident taxpayer" defined
Sec. 13. "Resident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile in Indiana. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-14 "Subsidiary" defined
Sec. 14. "Subsidiary" means:
(1) a corporation fifty percent (50%) or more of whose voting
stock; or
(2) an entity other than a corporation that is taxed as a
corporation under the Internal Revenue Code and fifty percent
(50%) of whose net worth;
is owned by another legal entity. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.17.
IC 6-5.5-1-15 "Taxable year" defined
Sec. 15. "Taxable year", with respect to a taxpayer, means the
taxable year of the taxpayer as shown on the taxpayer's return
required to be filed under the Internal Revenue Code. If a taxpayer
does not file a return under the Internal Revenue Code, the taxpayer's
taxable year is the calendar year. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-16 "Taxing jurisdiction" defined
Sec. 16. "Taxing jurisdiction" means a state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, or a
territory or possession of the United States. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-17 "Taxpayer" defined
Sec. 17. (a) "Taxpayer" means a corporation that is transacting the
business of a financial institution in Indiana, including any of the
following:
(1) A holding company.
(2) A regulated financial corporation.
(3) A subsidiary of a holding company or regulated financial
corporation.
(4) Any other corporation organized under the laws of the
United States, this state, another taxing jurisdiction, or a foreign
government that is carrying on the business of a financial
institution.
(b) As used in this section, "holding company" means a
corporation registered under the Bank Holding Company Act of 1956
(12 U.S.C. 1841 through 1849), as in effect on December 31, 1990,
or registered as a savings and loan holding company other than a
diversified savings and loan holding company (as defined in Section
10(a)(F) of the Home Owners' Loan Act of 1933 (12 U.S.C.
1467a(1)(F)), as in effect on December 31, 1990).
(c) As used in this section, "regulated financial corporation"
means:
(1) an institution, the deposits, shares, or accounts of which are
insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 through 1833e), as in effect on December 31, 1990;
(2) an institution that is a member of a Federal Home Loan
Bank;
(3) any other bank or thrift institution incorporated or organized
under the laws of a state that is engaged in the business of
receiving deposits;
(4) a credit union incorporated and organized under the laws of
this state;
(5) a production credit association organized under 12 U.S.C.
2071, as in effect on December 31, 1990;
(6) a corporation organized under 12 U.S.C. 611 through 631
(an Edge Act corporation), as in effect on December 31, 1990;
(7) a federal or state agency or branch of a foreign bank (as
defined in 12 U.S.C. 3101, as in effect on December 31, 1990);
or
(8) a trust company formed under IC 28-12.
(d) For purposes of this section and when used in this article,
"business of a financial institution" means the following:
(1) For a holding company, a regulated financial corporation, or
a subsidiary of either, the activities that each is authorized to
perform under federal or state law, including the activities
authorized by regulation or order of the Federal Reserve Board
for such a subsidiary under Section 4(c)(8) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)(8)), as in effect on
December 31, 1990.
(2) For any other corporation described in subsection (a)(4), all
of the corporation's business activities if eighty percent (80%)
or more of the corporation's gross income, excluding
extraordinary income, is derived from one (1) or more of the
following activities:
(A) Making, acquiring, selling, or servicing loans or
extensions of credit. For the purpose of this subdivision,
loans and extensions of credit include:
(i) secured or unsecured consumer loans;
(ii) installment obligations;
(iii) mortgage or other secured loans on real estate or
tangible personal property;
(iv) credit card loans;
(v) secured and unsecured commercial loans of any type;
(vi) letters of credit and acceptance of drafts;
(vii) loans arising in factoring; and
(viii) any other transactions with a comparable economic
effect.
(B) Leasing or acting as an agent, broker, or advisor in
connection with leasing real and personal property that is the
economic equivalent of the extension of credit if the
transaction is not treated as a lease for federal income tax
purposes.
(C) Operating a credit card, debit card, charge card, or
similar business.
As used in this subdivision, "gross income" includes income
from interest, fees, penalties, a market discount or other type of
discount, rental income, the gain on a sale of intangible or other
property evidencing a loan or extension of credit, and dividends
or other income received as a means of furthering the activities
set out in this subdivision. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.18; P.L.8-1991, SEC.4; P.L.68-1991, SEC.3; P.L.1-1992,
SEC.18; P.L.119-1998, SEC.14.
IC 6-5.5-1-18 "Unitary business" defined
Sec. 18. (a) "Unitary business" means business activities or
operations that are of mutual benefit, dependent upon, or
contributory to one another, individually or as a group, in transacting
the business of a financial institution. The term may be applied
within a single legal entity or between multiple entities and without
regard to whether each entity is a corporation, a partnership, a
limited liability company, or a trust, provided that each member is
either a holding company, a regulated financial corporation, a
subsidiary of either, a corporation that conducts the business of a
financial institution under IC 6-5.5-1-17(d)(2), or any other entity,
regardless of its form, that conducts activities that would constitute
the business of a financial institution under IC 6-5.5-1-17(d)(2) if the
activities were conducted by a corporation. The term "unitary group"
includes those entities that are engaged in a unitary business
transacted wholly or partially within Indiana. However, the term does
not include an entity that does not transact business in Indiana.
(b) Unity is presumed whenever there is unity of ownership,
operation, and use evidenced by centralized management or
executive force, centralized purchasing, advertising, accounting, or
other controlled interaction among entities that are members of the
unitary group, as described in subsection (a). However, the absence
of these centralized activities does not necessarily evidence a
nonunitary business.
(c) Unity of ownership, when a corporation is involved, does not
exist unless that corporation is a member of a group of two (2) or
more business entities and more than fifty percent (50%) of the
voting stock of each member of the group is directly or indirectly
owned by:
(1) a common owner or common owners, either corporate or
noncorporate; or
(2) one (1) or more of the member corporations of the group. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.19; P.L.8-1993, SEC.95; P.L.129-2001, SEC.8.
IC 6-5.5-1-19 "Partnership" defined
Sec. 19. "Partnership" means an association of two (2) or more
entities formed to conduct a business, including but not limited to;
(1) a limited partnership, a syndicate, a group, a pool, a joint
venture, or an incorporated association; or
(2) a similar entity if the income for federal income tax
purposes is taxed to the equity participants in that business,
however characterized. As added by P.L.21-1990, SEC.20.
IC 6-5.5-1-20 "Bonus depreciation" defined
Sec. 20. As used in this article, "bonus depreciation" means an
amount equal to that part of any depreciation allowance allowed in
computing the taxpayer's federal taxable income that is attributable
to the additional first-year special depreciation allowance (bonus
depreciation) for qualified property allowed under Section 168(k) of
the Internal Revenue Code, including the special depreciation
allowance for 50-percent bonus depreciation property. As added by P.L.105-2003, SEC.5. Amended by P.L.246-2005,
SEC.76.
IC 6-5.5 ARTICLE 5.5. TAXATION OF FINANCIAL
INSTITUTIONS
IC 6-5.5-1
Chapter 1. Definitions
IC 6-5.5-1-1 Application of definitions
Sec. 1. The definitions in this chapter apply throughout this
article. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-2 "Adjusted gross income" defined
Sec. 2. (a) Except as provided in subsections (b) through (d),
"adjusted gross income" means taxable income as defined in Section
63 of the Internal Revenue Code, adjusted as follows:
(1) Add the following amounts:
(A) An amount equal to a deduction allowed or allowable
under Section 166, Section 585, or Section 593 of the
Internal Revenue Code.
(B) An amount equal to a deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(C) An amount equal to a deduction or deductions allowed
or allowable under Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the
state level by a state of the United States or levied at the
local level by any subdivision of a state of the United States.
(D) The amount of interest excluded under Section 103 of
the Internal Revenue Code or under any other federal law,
minus the associated expenses disallowed in the computation
of taxable income under Section 265 of the Internal Revenue
Code.
(E) An amount equal to the deduction allowed under Section
172 or 1212 of the Internal Revenue Code for net operating
losses or net capital losses.
(F) For a taxpayer that is not a large bank (as defined in
Section 585(c)(2) of the Internal Revenue Code), an amount
equal to the recovery of a debt, or part of a debt, that
becomes worthless to the extent a deduction was allowed
from gross income in a prior taxable year under Section
166(a) of the Internal Revenue Code.
(G) Add the amount necessary to make the adjusted gross
income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation to the property in the year
that it was placed in service.
(H) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable
year equal to the amount of adjusted gross income that
would have been computed had an election for federal
income tax purposes not been made for the year in which the
property was placed in service to take deductions under
Section 179 of the Internal Revenue Code in a total amount
exceeding twenty-five thousand dollars ($25,000).
(I) Add an amount equal to the amount that a taxpayer
claimed as a deduction for domestic production activities for
the taxable year under Section 199 of the Internal Revenue
Code for federal income tax purposes.
(J) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January
1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from
the adjusted gross income of any taxpayer that added an
amount to adjusted gross income in a previous year the
amount necessary to offset the amount included in federal
gross income as a result of the deferral of income arising
from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before
January 1, 2011, of an applicable debt instrument, as
provided in Section 108(i) of the Internal Revenue Code.
(K) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(v)
of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had
the classification not applied to the property in the year that
it was placed in service.
(L) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(ix) of the Internal Revenue Code equal to the
amount of adjusted gross income that would have been
computed had the classification not applied to the property
in the year that it was placed in service.
(M) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that claimed the
special allowance for qualified disaster assistance property
under Section 168(n) of the Internal Revenue Code equal to
the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the
property.
(N) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 179C of the Internal Revenue Code to expense
costs for qualified refinery property equal to the amount of
adjusted gross income that would have been computed had
an election for federal income tax purposes not been made
for the year.
(O) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 181 of the Internal Revenue Code to expense
costs for a qualified film or television production equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year.
(P) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that treated a loss
from the sale or exchange of preferred stock in:
(i) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(ii) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable
year or in an earlier taxable year equal to the amount of
adjusted gross income that would have been computed had
the loss not been treated as an ordinary loss.
(Q) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code for active
financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(2) Subtract the following amounts:
(A) Income that the United States Constitution or any statute
of the United States prohibits from being used to measure
the tax imposed by this chapter.
(B) Income that is derived from sources outside the United
States, as defined by the Internal Revenue Code.
(C) An amount equal to a debt or part of a debt that becomes
worthless, as permitted under Section 166(a) of the Internal
Revenue Code.
(D) An amount equal to any bad debt reserves that are
included in federal income because of accounting method
changes required by Section 585(c)(3)(A) or Section 593 of
the Internal Revenue Code.
(E) The amount necessary to make the adjusted gross income
of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation.
(F) The amount necessary to make the adjusted gross income
of any taxpayer that placed Section 179 property (as defined
in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year in which the property was placed
in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding
twenty-five thousand dollars ($25,000).
(G) Income that is:
(i) exempt from taxation under IC 6-3-2-21.7; and
(ii) included in the taxpayer's taxable income under the
Internal Revenue Code.
(b) In the case of a credit union, "adjusted gross income" for a
taxable year means the total transfers to undivided earnings minus
dividends for that taxable year after statutory reserves are set aside
under IC 28-7-1-24.
(c) In the case of an investment company, "adjusted gross income"
means the company's federal taxable income multiplied by the
quotient of:
(1) the aggregate of the gross payments collected by the
company during the taxable year from old and new business
upon investment contracts issued by the company and held by
residents of Indiana; divided by
(2) the total amount of gross payments collected during the
taxable year by the company from the business upon investment
contracts issued by the company and held by persons residing
within Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a
person, copartnership, association, limited liability company, or
corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues
in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if
the gross payments received by the company during the taxable
year on outstanding investment contracts, plus interest and
dividends earned on those contracts (by prorating the interest
and dividends earned on investment contracts by the same
proportion that certificate reserves (as defined by the
Investment Company Act of 1940) is to the company's total
assets) is at least fifty percent (50%) of the company's gross
payments upon investment contracts plus gross income from all
other sources except dividends from subsidiaries for the taxable
year. The term "investment contract" means an instrument listed
in clauses (A) through (G). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.15; P.L.68-1991, SEC.1; P.L.8-1993, SEC.94; P.L.28-1997,
SEC.20; P.L.119-1998, SEC.13; P.L.273-1999, SEC.52;
P.L.105-2003, SEC.4; P.L.246-2005, SEC.75; P.L.223-2007, SEC.5;
P.L.182-2009(ss), SEC.233.
IC 6-5.5-1-3 "Business of a financial institution" defined
Sec. 3. "Business of a financial institution" has the meaning set
forth in section 17(d) of this chapter. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-4 "Commercial domicile" defined
Sec. 4. "Commercial domicile" means:
(1) for a regulated financial corporation:
(A) the taxing jurisdiction under the laws of which it is
organized; or
(B) if it is organized under the laws of the United States, the
place designated as its principal office with the regulatory
authority;
(2) if it is a foreign bank, the state where it has established a
federal agency or federal branch under Section 4 of the
International Banking Act of 1978 (12 U.S.C. 3102) or if it
transacts business in more than one (1) state, its home state as
provided in Section 5(c) of the International Banking Act of
1978 (12 U.S.C. 3103(c)); or
(3) for all other entities, the principal place from which the
trade or business of the entity is directed or managed. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-5 "Compensation" defined
Sec. 5. "Compensation" means wages, salaries, commissions, and
any other form of remuneration paid to employees for personal
services. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-6 "Corporation" defined
Sec. 6. "Corporation" means an entity that is:
(1) a corporation (as defined in Internal Revenue Code Section
7701(a)(3)) for federal income tax purposes, including an entity
taxed as a corporation under the Internal Revenue Code; and
(2) organized under the laws of the United States, this state, any
other taxing jurisdiction, or a foreign government. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.16.
IC 6-5.5-1-7 "Department" defined
Sec. 7. "Department" refers to the department of state revenue. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-8 "Employee" defined
Sec. 8. "Employee" has the same meaning as it has for purposes
of federal income tax withholding under Sections 3401 through 3404
of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-9 "Foreign bank" defined
Sec. 9. "Foreign bank" means an entity organized under the laws
of a foreign country, a territory of the United States, Puerto Rico,
Guam, American Samoa, or the Virgin Islands that engages in the
business of a financial institution or a subsidiary or affiliate
organized under those laws of such an entity. The term includes
foreign commercial banks, foreign merchant banks, and other foreign
institutions that engage in banking activities that are usually in
connection with the business of a financial institution in the countries
where the foreign institutions are organized or operating. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-10 "Gross income" defined
Sec. 10. "Gross income" means gross income (as defined in
Section 61 of the Internal Revenue Code) for federal income tax
purposes. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-11 "Internal Revenue Code" defined
Sec. 11. "Internal Revenue Code" has the meaning set forth in
IC 6-3-1-11. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-12 "Nonresident taxpayer" defined
Sec. 12. "Nonresident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile outside Indiana. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.2.
IC 6-5.5-1-13 "Resident taxpayer" defined
Sec. 13. "Resident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile in Indiana. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-14 "Subsidiary" defined
Sec. 14. "Subsidiary" means:
(1) a corporation fifty percent (50%) or more of whose voting
stock; or
(2) an entity other than a corporation that is taxed as a
corporation under the Internal Revenue Code and fifty percent
(50%) of whose net worth;
is owned by another legal entity. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.17.
IC 6-5.5-1-15 "Taxable year" defined
Sec. 15. "Taxable year", with respect to a taxpayer, means the
taxable year of the taxpayer as shown on the taxpayer's return
required to be filed under the Internal Revenue Code. If a taxpayer
does not file a return under the Internal Revenue Code, the taxpayer's
taxable year is the calendar year. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-16 "Taxing jurisdiction" defined
Sec. 16. "Taxing jurisdiction" means a state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, or a
territory or possession of the United States. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-17 "Taxpayer" defined
Sec. 17. (a) "Taxpayer" means a corporation that is transacting the
business of a financial institution in Indiana, including any of the
following:
(1) A holding company.
(2) A regulated financial corporation.
(3) A subsidiary of a holding company or regulated financial
corporation.
(4) Any other corporation organized under the laws of the
United States, this state, another taxing jurisdiction, or a foreign
government that is carrying on the business of a financial
institution.
(b) As used in this section, "holding company" means a
corporation registered under the Bank Holding Company Act of 1956
(12 U.S.C. 1841 through 1849), as in effect on December 31, 1990,
or registered as a savings and loan holding company other than a
diversified savings and loan holding company (as defined in Section
10(a)(F) of the Home Owners' Loan Act of 1933 (12 U.S.C.
1467a(1)(F)), as in effect on December 31, 1990).
(c) As used in this section, "regulated financial corporation"
means:
(1) an institution, the deposits, shares, or accounts of which are
insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 through 1833e), as in effect on December 31, 1990;
(2) an institution that is a member of a Federal Home Loan
Bank;
(3) any other bank or thrift institution incorporated or organized
under the laws of a state that is engaged in the business of
receiving deposits;
(4) a credit union incorporated and organized under the laws of
this state;
(5) a production credit association organized under 12 U.S.C.
2071, as in effect on December 31, 1990;
(6) a corporation organized under 12 U.S.C. 611 through 631
(an Edge Act corporation), as in effect on December 31, 1990;
(7) a federal or state agency or branch of a foreign bank (as
defined in 12 U.S.C. 3101, as in effect on December 31, 1990);
or
(8) a trust company formed under IC 28-12.
(d) For purposes of this section and when used in this article,
"business of a financial institution" means the following:
(1) For a holding company, a regulated financial corporation, or
a subsidiary of either, the activities that each is authorized to
perform under federal or state law, including the activities
authorized by regulation or order of the Federal Reserve Board
for such a subsidiary under Section 4(c)(8) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)(8)), as in effect on
December 31, 1990.
(2) For any other corporation described in subsection (a)(4), all
of the corporation's business activities if eighty percent (80%)
or more of the corporation's gross income, excluding
extraordinary income, is derived from one (1) or more of the
following activities:
(A) Making, acquiring, selling, or servicing loans or
extensions of credit. For the purpose of this subdivision,
loans and extensions of credit include:
(i) secured or unsecured consumer loans;
(ii) installment obligations;
(iii) mortgage or other secured loans on real estate or
tangible personal property;
(iv) credit card loans;
(v) secured and unsecured commercial loans of any type;
(vi) letters of credit and acceptance of drafts;
(vii) loans arising in factoring; and
(viii) any other transactions with a comparable economic
effect.
(B) Leasing or acting as an agent, broker, or advisor in
connection with leasing real and personal property that is the
economic equivalent of the extension of credit if the
transaction is not treated as a lease for federal income tax
purposes.
(C) Operating a credit card, debit card, charge card, or
similar business.
As used in this subdivision, "gross income" includes income
from interest, fees, penalties, a market discount or other type of
discount, rental income, the gain on a sale of intangible or other
property evidencing a loan or extension of credit, and dividends
or other income received as a means of furthering the activities
set out in this subdivision. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.18; P.L.8-1991, SEC.4; P.L.68-1991, SEC.3; P.L.1-1992,
SEC.18; P.L.119-1998, SEC.14.
IC 6-5.5-1-18 "Unitary business" defined
Sec. 18. (a) "Unitary business" means business activities or
operations that are of mutual benefit, dependent upon, or
contributory to one another, individually or as a group, in transacting
the business of a financial institution. The term may be applied
within a single legal entity or between multiple entities and without
regard to whether each entity is a corporation, a partnership, a
limited liability company, or a trust, provided that each member is
either a holding company, a regulated financial corporation, a
subsidiary of either, a corporation that conducts the business of a
financial institution under IC 6-5.5-1-17(d)(2), or any other entity,
regardless of its form, that conducts activities that would constitute
the business of a financial institution under IC 6-5.5-1-17(d)(2) if the
activities were conducted by a corporation. The term "unitary group"
includes those entities that are engaged in a unitary business
transacted wholly or partially within Indiana. However, the term does
not include an entity that does not transact business in Indiana.
(b) Unity is presumed whenever there is unity of ownership,
operation, and use evidenced by centralized management or
executive force, centralized purchasing, advertising, accounting, or
other controlled interaction among entities that are members of the
unitary group, as described in subsection (a). However, the absence
of these centralized activities does not necessarily evidence a
nonunitary business.
(c) Unity of ownership, when a corporation is involved, does not
exist unless that corporation is a member of a group of two (2) or
more business entities and more than fifty percent (50%) of the
voting stock of each member of the group is directly or indirectly
owned by:
(1) a common owner or common owners, either corporate or
noncorporate; or
(2) one (1) or more of the member corporations of the group. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.19; P.L.8-1993, SEC.95; P.L.129-2001, SEC.8.
IC 6-5.5-1-19 "Partnership" defined
Sec. 19. "Partnership" means an association of two (2) or more
entities formed to conduct a business, including but not limited to;
(1) a limited partnership, a syndicate, a group, a pool, a joint
venture, or an incorporated association; or
(2) a similar entity if the income for federal income tax
purposes is taxed to the equity participants in that business,
however characterized. As added by P.L.21-1990, SEC.20.
IC 6-5.5-1-20 "Bonus depreciation" defined
Sec. 20. As used in this article, "bonus depreciation" means an
amount equal to that part of any depreciation allowance allowed in
computing the taxpayer's federal taxable income that is attributable
to the additional first-year special depreciation allowance (bonus
depreciation) for qualified property allowed under Section 168(k) of
the Internal Revenue Code, including the special depreciation
allowance for 50-percent bonus depreciation property. As added by P.L.105-2003, SEC.5. Amended by P.L.246-2005,
SEC.76.
IC 6-5.5 ARTICLE 5.5. TAXATION OF FINANCIAL
INSTITUTIONS
IC 6-5.5-1
Chapter 1. Definitions
IC 6-5.5-1-1 Application of definitions
Sec. 1. The definitions in this chapter apply throughout this
article. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-2 "Adjusted gross income" defined
Sec. 2. (a) Except as provided in subsections (b) through (d),
"adjusted gross income" means taxable income as defined in Section
63 of the Internal Revenue Code, adjusted as follows:
(1) Add the following amounts:
(A) An amount equal to a deduction allowed or allowable
under Section 166, Section 585, or Section 593 of the
Internal Revenue Code.
(B) An amount equal to a deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(C) An amount equal to a deduction or deductions allowed
or allowable under Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the
state level by a state of the United States or levied at the
local level by any subdivision of a state of the United States.
(D) The amount of interest excluded under Section 103 of
the Internal Revenue Code or under any other federal law,
minus the associated expenses disallowed in the computation
of taxable income under Section 265 of the Internal Revenue
Code.
(E) An amount equal to the deduction allowed under Section
172 or 1212 of the Internal Revenue Code for net operating
losses or net capital losses.
(F) For a taxpayer that is not a large bank (as defined in
Section 585(c)(2) of the Internal Revenue Code), an amount
equal to the recovery of a debt, or part of a debt, that
becomes worthless to the extent a deduction was allowed
from gross income in a prior taxable year under Section
166(a) of the Internal Revenue Code.
(G) Add the amount necessary to make the adjusted gross
income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation to the property in the year
that it was placed in service.
(H) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable
year equal to the amount of adjusted gross income that
would have been computed had an election for federal
income tax purposes not been made for the year in which the
property was placed in service to take deductions under
Section 179 of the Internal Revenue Code in a total amount
exceeding twenty-five thousand dollars ($25,000).
(I) Add an amount equal to the amount that a taxpayer
claimed as a deduction for domestic production activities for
the taxable year under Section 199 of the Internal Revenue
Code for federal income tax purposes.
(J) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January
1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from
the adjusted gross income of any taxpayer that added an
amount to adjusted gross income in a previous year the
amount necessary to offset the amount included in federal
gross income as a result of the deferral of income arising
from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before
January 1, 2011, of an applicable debt instrument, as
provided in Section 108(i) of the Internal Revenue Code.
(K) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(v)
of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had
the classification not applied to the property in the year that
it was placed in service.
(L) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail
improvement property in service during the taxable year and
that was classified as 15-year property under Section
168(e)(3)(E)(ix) of the Internal Revenue Code equal to the
amount of adjusted gross income that would have been
computed had the classification not applied to the property
in the year that it was placed in service.
(M) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that claimed the
special allowance for qualified disaster assistance property
under Section 168(n) of the Internal Revenue Code equal to
the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the
property.
(N) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 179C of the Internal Revenue Code to expense
costs for qualified refinery property equal to the amount of
adjusted gross income that would have been computed had
an election for federal income tax purposes not been made
for the year.
(O) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 181 of the Internal Revenue Code to expense
costs for a qualified film or television production equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year.
(P) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that treated a loss
from the sale or exchange of preferred stock in:
(i) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(ii) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable
year or in an earlier taxable year equal to the amount of
adjusted gross income that would have been computed had
the loss not been treated as an ordinary loss.
(Q) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code for active
financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(2) Subtract the following amounts:
(A) Income that the United States Constitution or any statute
of the United States prohibits from being used to measure
the tax imposed by this chapter.
(B) Income that is derived from sources outside the United
States, as defined by the Internal Revenue Code.
(C) An amount equal to a debt or part of a debt that becomes
worthless, as permitted under Section 166(a) of the Internal
Revenue Code.
(D) An amount equal to any bad debt reserves that are
included in federal income because of accounting method
changes required by Section 585(c)(3)(A) or Section 593 of
the Internal Revenue Code.
(E) The amount necessary to make the adjusted gross income
of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue
Code to apply bonus depreciation.
(F) The amount necessary to make the adjusted gross income
of any taxpayer that placed Section 179 property (as defined
in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes
not been made for the year in which the property was placed
in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding
twenty-five thousand dollars ($25,000).
(G) Income that is:
(i) exempt from taxation under IC 6-3-2-21.7; and
(ii) included in the taxpayer's taxable income under the
Internal Revenue Code.
(b) In the case of a credit union, "adjusted gross income" for a
taxable year means the total transfers to undivided earnings minus
dividends for that taxable year after statutory reserves are set aside
under IC 28-7-1-24.
(c) In the case of an investment company, "adjusted gross income"
means the company's federal taxable income multiplied by the
quotient of:
(1) the aggregate of the gross payments collected by the
company during the taxable year from old and new business
upon investment contracts issued by the company and held by
residents of Indiana; divided by
(2) the total amount of gross payments collected during the
taxable year by the company from the business upon investment
contracts issued by the company and held by persons residing
within Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a
person, copartnership, association, limited liability company, or
corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues
in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if
the gross payments received by the company during the taxable
year on outstanding investment contracts, plus interest and
dividends earned on those contracts (by prorating the interest
and dividends earned on investment contracts by the same
proportion that certificate reserves (as defined by the
Investment Company Act of 1940) is to the company's total
assets) is at least fifty percent (50%) of the company's gross
payments upon investment contracts plus gross income from all
other sources except dividends from subsidiaries for the taxable
year. The term "investment contract" means an instrument listed
in clauses (A) through (G). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.15; P.L.68-1991, SEC.1; P.L.8-1993, SEC.94; P.L.28-1997,
SEC.20; P.L.119-1998, SEC.13; P.L.273-1999, SEC.52;
P.L.105-2003, SEC.4; P.L.246-2005, SEC.75; P.L.223-2007, SEC.5;
P.L.182-2009(ss), SEC.233.
IC 6-5.5-1-3 "Business of a financial institution" defined
Sec. 3. "Business of a financial institution" has the meaning set
forth in section 17(d) of this chapter. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-4 "Commercial domicile" defined
Sec. 4. "Commercial domicile" means:
(1) for a regulated financial corporation:
(A) the taxing jurisdiction under the laws of which it is
organized; or
(B) if it is organized under the laws of the United States, the
place designated as its principal office with the regulatory
authority;
(2) if it is a foreign bank, the state where it has established a
federal agency or federal branch under Section 4 of the
International Banking Act of 1978 (12 U.S.C. 3102) or if it
transacts business in more than one (1) state, its home state as
provided in Section 5(c) of the International Banking Act of
1978 (12 U.S.C. 3103(c)); or
(3) for all other entities, the principal place from which the
trade or business of the entity is directed or managed. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-5 "Compensation" defined
Sec. 5. "Compensation" means wages, salaries, commissions, and
any other form of remuneration paid to employees for personal
services. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-6 "Corporation" defined
Sec. 6. "Corporation" means an entity that is:
(1) a corporation (as defined in Internal Revenue Code Section
7701(a)(3)) for federal income tax purposes, including an entity
taxed as a corporation under the Internal Revenue Code; and
(2) organized under the laws of the United States, this state, any
other taxing jurisdiction, or a foreign government. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.16.
IC 6-5.5-1-7 "Department" defined
Sec. 7. "Department" refers to the department of state revenue. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-8 "Employee" defined
Sec. 8. "Employee" has the same meaning as it has for purposes
of federal income tax withholding under Sections 3401 through 3404
of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-9 "Foreign bank" defined
Sec. 9. "Foreign bank" means an entity organized under the laws
of a foreign country, a territory of the United States, Puerto Rico,
Guam, American Samoa, or the Virgin Islands that engages in the
business of a financial institution or a subsidiary or affiliate
organized under those laws of such an entity. The term includes
foreign commercial banks, foreign merchant banks, and other foreign
institutions that engage in banking activities that are usually in
connection with the business of a financial institution in the countries
where the foreign institutions are organized or operating. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-10 "Gross income" defined
Sec. 10. "Gross income" means gross income (as defined in
Section 61 of the Internal Revenue Code) for federal income tax
purposes. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-11 "Internal Revenue Code" defined
Sec. 11. "Internal Revenue Code" has the meaning set forth in
IC 6-3-1-11. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-12 "Nonresident taxpayer" defined
Sec. 12. "Nonresident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile outside Indiana. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.2.
IC 6-5.5-1-13 "Resident taxpayer" defined
Sec. 13. "Resident taxpayer" means a taxpayer that:
(1) is transacting business within Indiana, as provided in
IC 6-5.5-3; and
(2) has its commercial domicile in Indiana. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-14 "Subsidiary" defined
Sec. 14. "Subsidiary" means:
(1) a corporation fifty percent (50%) or more of whose voting
stock; or
(2) an entity other than a corporation that is taxed as a
corporation under the Internal Revenue Code and fifty percent
(50%) of whose net worth;
is owned by another legal entity. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.17.
IC 6-5.5-1-15 "Taxable year" defined
Sec. 15. "Taxable year", with respect to a taxpayer, means the
taxable year of the taxpayer as shown on the taxpayer's return
required to be filed under the Internal Revenue Code. If a taxpayer
does not file a return under the Internal Revenue Code, the taxpayer's
taxable year is the calendar year. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-16 "Taxing jurisdiction" defined
Sec. 16. "Taxing jurisdiction" means a state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, or a
territory or possession of the United States. As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-1-17 "Taxpayer" defined
Sec. 17. (a) "Taxpayer" means a corporation that is transacting the
business of a financial institution in Indiana, including any of the
following:
(1) A holding company.
(2) A regulated financial corporation.
(3) A subsidiary of a holding company or regulated financial
corporation.
(4) Any other corporation organized under the laws of the
United States, this state, another taxing jurisdiction, or a foreign
government that is carrying on the business of a financial
institution.
(b) As used in this section, "holding company" means a
corporation registered under the Bank Holding Company Act of 1956
(12 U.S.C. 1841 through 1849), as in effect on December 31, 1990,
or registered as a savings and loan holding company other than a
diversified savings and loan holding company (as defined in Section
10(a)(F) of the Home Owners' Loan Act of 1933 (12 U.S.C.
1467a(1)(F)), as in effect on December 31, 1990).
(c) As used in this section, "regulated financial corporation"
means:
(1) an institution, the deposits, shares, or accounts of which are
insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 through 1833e), as in effect on December 31, 1990;
(2) an institution that is a member of a Federal Home Loan
Bank;
(3) any other bank or thrift institution incorporated or organized
under the laws of a state that is engaged in the business of
receiving deposits;
(4) a credit union incorporated and organized under the laws of
this state;
(5) a production credit association organized under 12 U.S.C.
2071, as in effect on December 31, 1990;
(6) a corporation organized under 12 U.S.C. 611 through 631
(an Edge Act corporation), as in effect on December 31, 1990;
(7) a federal or state agency or branch of a foreign bank (as
defined in 12 U.S.C. 3101, as in effect on December 31, 1990);
or
(8) a trust company formed under IC 28-12.
(d) For purposes of this section and when used in this article,
"business of a financial institution" means the following:
(1) For a holding company, a regulated financial corporation, or
a subsidiary of either, the activities that each is authorized to
perform under federal or state law, including the activities
authorized by regulation or order of the Federal Reserve Board
for such a subsidiary under Section 4(c)(8) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)(8)), as in effect on
December 31, 1990.
(2) For any other corporation described in subsection (a)(4), all
of the corporation's business activities if eighty percent (80%)
or more of the corporation's gross income, excluding
extraordinary income, is derived from one (1) or more of the
following activities:
(A) Making, acquiring, selling, or servicing loans or
extensions of credit. For the purpose of this subdivision,
loans and extensions of credit include:
(i) secured or unsecured consumer loans;
(ii) installment obligations;
(iii) mortgage or other secured loans on real estate or
tangible personal property;
(iv) credit card loans;
(v) secured and unsecured commercial loans of any type;
(vi) letters of credit and acceptance of drafts;
(vii) loans arising in factoring; and
(viii) any other transactions with a comparable economic
effect.
(B) Leasing or acting as an agent, broker, or advisor in
connection with leasing real and personal property that is the
economic equivalent of the extension of credit if the
transaction is not treated as a lease for federal income tax
purposes.
(C) Operating a credit card, debit card, charge card, or
similar business.
As used in this subdivision, "gross income" includes income
from interest, fees, penalties, a market discount or other type of
discount, rental income, the gain on a sale of intangible or other
property evidencing a loan or extension of credit, and dividends
or other income received as a means of furthering the activities
set out in this subdivision. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.18; P.L.8-1991, SEC.4; P.L.68-1991, SEC.3; P.L.1-1992,
SEC.18; P.L.119-1998, SEC.14.
IC 6-5.5-1-18 "Unitary business" defined
Sec. 18. (a) "Unitary business" means business activities or
operations that are of mutual benefit, dependent upon, or
contributory to one another, individually or as a group, in transacting
the business of a financial institution. The term may be applied
within a single legal entity or between multiple entities and without
regard to whether each entity is a corporation, a partnership, a
limited liability company, or a trust, provided that each member is
either a holding company, a regulated financial corporation, a
subsidiary of either, a corporation that conducts the business of a
financial institution under IC 6-5.5-1-17(d)(2), or any other entity,
regardless of its form, that conducts activities that would constitute
the business of a financial institution under IC 6-5.5-1-17(d)(2) if the
activities were conducted by a corporation. The term "unitary group"
includes those entities that are engaged in a unitary business
transacted wholly or partially within Indiana. However, the term does
not include an entity that does not transact business in Indiana.
(b) Unity is presumed whenever there is unity of ownership,
operation, and use evidenced by centralized management or
executive force, centralized purchasing, advertising, accounting, or
other controlled interaction among entities that are members of the
unitary group, as described in subsection (a). However, the absence
of these centralized activities does not necessarily evidence a
nonunitary business.
(c) Unity of ownership, when a corporation is involved, does not
exist unless that corporation is a member of a group of two (2) or
more business entities and more than fifty percent (50%) of the
voting stock of each member of the group is directly or indirectly
owned by:
(1) a common owner or common owners, either corporate or
noncorporate; or
(2) one (1) or more of the member corporations of the group. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.19; P.L.8-1993, SEC.95; P.L.129-2001, SEC.8.
IC 6-5.5-1-19 "Partnership" defined
Sec. 19. "Partnership" means an association of two (2) or more
entities formed to conduct a business, including but not limited to;
(1) a limited partnership, a syndicate, a group, a pool, a joint
venture, or an incorporated association; or
(2) a similar entity if the income for federal income tax
purposes is taxed to the equity participants in that business,
however characterized. As added by P.L.21-1990, SEC.20.
IC 6-5.5-1-20 "Bonus depreciation" defined
Sec. 20. As used in this article, "bonus depreciation" means an
amount equal to that part of any depreciation allowance allowed in
computing the taxpayer's federal taxable income that is attributable
to the additional first-year special depreciation allowance (bonus
depreciation) for qualified property allowed under Section 168(k) of
the Internal Revenue Code, including the special depreciation
allowance for 50-percent bonus depreciation property. As added by P.L.105-2003, SEC.5. Amended by P.L.246-2005,
SEC.76.