New Legislation Part 1 – Business Taxes
Dec. 10, 2013 – TaxTalk Blog
The holidays are upon us. And that means tax season is right around the corner. With that in mind, let’s look at some of the key changes to Indiana’s tax laws and to the tax forms businesses will need to know as they file their taxes:
- Several add backs have been eliminated and no longer have to be added back when determining adjusted gross income:
- Qualified restaurant property, qualified leasehold property, qualified retail improvement property, and seven-year property for a motorsports entertainment complex
- Expensing of environmental remediation costs
- Qualified advanced mine safety equipment
- Additional business startup expenditures
- Oil and gas well depletion deduction
- Qualified electric utility amortization
- The School Scholarship Credit can now be carried forward for nine years after the unused credit year, and the cap on this credit has increased from $5 million to $7.5 million.
- The Coal Combustion Credit has been repealed.
- The financial institutions tax is being reduced. The current rate is 8.5%, but it will decrease to 8% on Jan. 1, 2014.
- Truck stop owners now must obtain a truck stop owner’s license from the department.
- A new aviation fuel excise tax that replaced Indiana’s fuel sales tax went into effect on July 1, 2013. The tax is $0.10 per gallon of aviation fuel purchased in Indiana.
- The town of Cloverdale has adopted a 1% food and beverage tax.
Changes to the Forms
In addition to the legislative changes, some of the department’s forms also have undergone changes. The most significant change has occurred to the IT-65 for partnerships. What used to be a one-page form has now expanded to two pages. Not only will taxpayers find the revised IT-65easier to read, but the new format will also increase the speed and accuracy with which the department can process it.
The IT-65, as well as the IT-20S, has a new line for reporting the withholding taxes the partnership or S corporation has paid for nonresident members who have opted out of the composite return. This change in department procedure enables nonresident partners and shareholders to opt out of the composite filing. When that happens, the partnership or S corporation will use the newly created Form IT-6WTH to file and remit the withholding taxes for those members. For a more detailed explanation of opting out of the composite return, visit www.in.gov/dor/4918.htm or see page 12.
Taxpayers will also notice two new lines on all of the major corporate returns (IT-20, IT-20S, IT-65, IT-20NP, and FIT-20). The EDGE and EDGE-R credits each has its own line on the returns now. There’s also a new schedule that taxpayers claiming these credits will need to complete and submit.
Also, the bottom section of each of the returns, where information for paid preparers and personal representatives is listed, has been reorganized to help taxpayers more easily enter the information.
All the 2013 corporate forms and booklets are now available on the department’s website at www.in.gov/dor/4879.htm.
For more information about these legislative changes and more, see the 2013 Legislative Synopsis.
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