Indiana Qualified Patents Exemption Schedule
Extracted from PDF file 2023-indiana-form-in-pat.pdf, last modified December 2020
Qualified Patents Exemption ScheduleSchedule IN-PAT State Form 54084 (R15 / 9-22) Indiana Department of Revenue Enclosure Sequence No. 22 2022 Qualified Patents Exemption Schedule Part 1 □ Name of Corporation, Nonprofit Organization, or Individual Check one Enter NAICS Code* Enter ID Number SSN □ FEIN □ PTIN *Visit www.naics.com for a complete listing of business codes. Part 2 Name of Patent Patent Filing Date Description of Patent Number of Employees on Patent Filing Date Part 3 (Column 1) Claiming Exemption for (List Tax Period Ending) (Column 2) Amount of Income from a Qualified Patent (Column 3) Multiply by Percentage Allowed 1st year _______ x 0.50 2nd year _______ x 0.50 3rd year _______ x 0.50 4th year _______ x 0.50 5th year _______ x 0.50 6th year _______ x 0.40 7th year _______ x 0.30 8th year _______ x 0.20 9th year _______ x 0.10 10th year _______ x 0.10 Enclose this schedule with Form IT-20, IT-20NP, IT-40, or IT-40PNR. *24100000000* 24100000000 (Column 4) Amount of Exemption Claimed Instructions for Completing Schedule IN-PAT Qualified Patents Exemption Public Law 223-2007 SECTIONS 1, 2, and 11 amended Indiana Code (IC) 6-3-1-3.5 and adds IC 6-3-2-21.7, effective Jan. 1, 2008. Income from qualified patents included in federal taxable income is exempt from the adjusted gross income of individuals, corporations, and insurance companies for taxable years beginning after Dec. 31, 2007. • A qualified patent is a utility patent or a plant patent issued after Dec. 31, 2007, for an invention resulting from a development process conducted in Indiana. The term does not include a design patent. • The exemption from income includes licensing fees or other income received for the use of the patent, royalties received for the infringement, receipts from the sale of a qualified patent, or income from the taxpayer’s own use of the patent to produce the claimed invention. Who Should File Schedule IN-PAT? Any individual Indiana resident, any corporation (including affiliates) that has fewer than 500 employees and is domiciled in Indiana, and any nonprofit organization that is domiciled in Indiana should complete Schedule IN-PAT if they are subject to the adjusted gross income tax and they have income from a qualified patent. Schedule IN-PAT should be enclosed with your Indiana tax return (Form IT-40, Form IT-20, or Form IT-20NP). Carryforward Years The exemption may not be claimed for more than 10 years. For the first 5 years, 50% of the amount of income received from the patent is exempt; the percentage declines by 10% each year starting in the sixth year that the exemption is claimed. The total amount of exemptions a taxpayer can claim in a taxable year may not exceed $5 million. This exemption applies only to utility patents issued under 35 U.S.C. 101 and plant patents issued under 35 U.S.C. 161 for inventions resulting from development processes conducted in Indiana. The exemption does not include design patents issued under 35 U.S.C. 171. Part 2 Enter the name and filing date of the patent. Enter a description of the patent. Enter the number of employees the entity had on the patent filing date. To qualify for this exemption, the entity must have fewer than 500 employees. Part 3 Column 1. Fill in the tax years for which you are taking the qualified patents income exemption. The exemption can be claimed for up to 10 years. Column 2. Enter the amount of income earned from the patent. Column 3. Multiply the amount of income earned from the patent by the corresponding percentage. For the first 5 years, 50% of the amount of income received from the patent is exempt; the percentage declines by 10% each year starting in the sixth year that the exemption is claimed. Column 4. Enter the amount of the exemption you are claiming (Column 2 multiplied by Column 3). Enter this amount on Form IT-20 (line 10), Form IT-20NP (line 4), Form IT-40 Schedule 2 (under line 11), or Form IT-40PNR Schedule C (under line 11). The total amount of exemptions claimed in a taxable year may not exceed $5 million. Enclose this schedule with your Indiana tax return. For more information, get Income Tax Information Bulletin #104 at www.in.gov/dor/files/reference/ib104.pdf. Part 1 Enter the name of the individual, corporation, or nonprofit organization claiming the exemption. Enter the Social Security number, Federal Employer Identification Number, or Individual Taxpayer identification number. Enter the North American Industry Classification System (NAICS) business code for the patent. You can find a listing of all the NAICS codes at www.naics.com. *24100000000* 24100000000
More about the Indiana Form IN-PAT Corporate Income Tax TY 2023
We last updated the Qualified Patents Exemption Schedule in February 2024, so this is the latest version of Form IN-PAT, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form IN-PAT directly from TaxFormFinder. You can print other Indiana tax forms here.
Other Indiana Corporate Income Tax Forms:
|Corporate Adjusted Gross Income Tax Forms and Schedules
|Nonprofit Organization's Annual Report
|Current Year Partnership Return Booklet with Forms and Schedules
|Fiduciary Estimated Tax and Extension Payment Voucher
|Nonprofit Organization Unrelated Business Income Tax Booklet with Forms and Schedules
Indiana usually releases forms for the current tax year between January and April. We last updated Indiana Form IN-PAT from the Department of Revenue in February 2024.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Indiana Form IN-PAT
We have a total of thirteen past-year versions of Form IN-PAT in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Indiana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.