Indiana Tax Law Changes Affect Financial Institutions
(May 6, 2013)
Indiana Gov. Mike Pence signed two bills on Apr. 26, 2013, that have an impact on the taxation of Indiana financial institutions.
The first, House Bill 1018, reduces the tax rate on financial institutions from 8.5 percent to 6.5 percent as follows:
|Taxable Years Beginning on or After
|Jan. 1, 2014
|Jan. 1, 2015
|Jan. 1, 2016
|Jan. 1, 2017
The second, House Bill 1001, adopts the Internal Revenue Code as of Jan. 1, 2013, for purposes of the tax on financial institutions. The bill also restores Indiana’s conformity to a number of federal provisions, retroactive to the 2012 tax year, including conformity to the reduced holding period for S corporation built-in gains. Taxpayers should evaluate the implications of the retroactive conformity changes and consider the need to file amended Indiana returns.
For More Information