PTET Instructions, Form & FAQ
Gov. Eric Holcomb signed Senate Enrolled Act 2 into law Feb. 22, 2023, authorizing certain pass-through entities to voluntarily elect to pay tax at the entity level based on each owner’s total share of adjusted gross income. It is retroactively effective for taxable years beginning on or after Jan. 1, 2022.
The bill also provides a refundable tax credit equal to the amount of tax paid by the electing entity with regard to the owner's share. Another credit is available for pass-through entity taxes that are imposed by and paid to another state. This change seeks to provide tax relief to Indiana small businesses by allowing them to receive an unlimited federal deduction for their state tax payments.
DOR will not be issuing or modifying any other pass-through entity forms or schedules for tax year 2022 other than the IN-PTET form that is already available. Refer to the instructions for filling out existing the pass-through entity forms and schedule to reflect Pass Through Entity Tax.