Indiana Nonprofit Organization Unrelated Business Income Tax Booklet with Forms and Schedules
Extracted from PDF file 2021-indiana-form-it-20np.pdf, last modified November 2021
Nonprofit Organization Unrelated Business Income Tax Booklet with Forms and SchedulesINDIANA 2 0 2 1 IT-20NP Nonprofit Organization Unrelated Business Income Tax Booklet This booklet contains forms and instructions for preparing the Indiana adjusted gross income tax return on unrelated income of nonprofit organizations. SP 155 (R19 / 8-21) 2 Indiana Department of Revenue 2021 Nonprofit Organization Unrelated Business Income Tax Return INTIME e-Services Portal Available Deductions INTIME, DOR’s e-services tax portal available at intime.dor.in.gov, provides the following functionalities for IT-20NP customers: • Make payments using a bank account or credit card • View and respond to correspondence from DOR • Request and print return transcripts on-demand • Electronic delivery of correspondence • Online customer service support through secure messaging • • Increased Online Support for Tax Preparers A new deduction (634) is available to deduct certain expenses for which a deduction is not permitted for federal income tax purposes because an employer claimed a COVID-related employee retention credit. See page 9 for more information. A new deduction (636) is available to deduct interest and other amounts included in federal gross income and received from bonds issued by Indiana government and quasigovernment entities. See page 9 for more information. In addition to the functionality listed above, INTIME provides increased access and functionality for tax preparers. INTIME provides the following functionality for tax preparers: • Gain access to view and manage multiple customers under one login • Ability to file returns, make payments, and view file and pay history for clients • Request electronic power of attorney (ePOA) authorization to view customer accounts • View and respond to correspondence for clients Non-Unitary Partnership We strongly encourage all taxpayers to make payments and file returns electronically whenever possible. INTIME allows customers to make estimated payments electronically with just a few clicks. Computing the Tax Rate Several lines have been added to the form to reflect non-unitary partnership income. In addition, the offset credit section has been eliminated and replaced with lines 26-31 of the return. Schedule IN-UBI A new checkbox has been added to reflect nonprofits that have multiple lines of business. Schedule IN-UBI has been created to report income and losses for businesses that have multiple lines of business. The corporate AGI tax rate is as follows: After June 30, 2020, and before July 1, 2021............................ 5.25% After June 30, 2021........................................................................ 4.9% What’s New for 2021 How to Determine the Tax Rate References to the Internal Revenue Code Public Law (PL) 146-2020, Sec. 22, amended Indiana Code (IC) 6-3-1-11. The definition of adjusted gross income (AGI) is updated to correspond to the federal definition of adjusted gross income contained in the Internal Revenue Code (IRC). Any reference to the IRC and subsequent regulations means the Internal Revenue Code of 1986, as amended and in effect on March 31, 2021. For a complete summary of new legislation regarding taxation, please see the Synopsis of 2021 Legislation Affecting the Indiana Department of Revenue at www.in.gov/dor/ files/reference/legislative-synopsis-2021.pdf. For taxpayers whose taxable year begins when one rate is in effect and ends when a different rate is in effect, compute the tax as provided below. This includes calendar-year taxpayers, fiscalyear taxpayers, short-period taxpayers, and 52-53 week tax year taxpayers. However, if your taxable year begins and ends during a period when the same rate is in effect (for instance, a fiscal year from July 1, 2020 to June 30, 2021), no proration is necessary. How to Determine the Tax Rate for Calendar-Year, Fiscal-Year, Short-period, and 52-53 Week tax year Taxpayers Add-Backs • Pursuant to IC 6-3-2-1(c), the following steps must be used to determine the tax rate if a taxpayer is subject to different tax rates for a taxable period: • Multiply the tax rate in effect on June 30 of the taxable period by the number of days in the taxpayer’s taxable period that occurred before July 1 of the taxable year. • Multiply the tax rate in effect on July 1 of the taxable period by the number of days in the taxpayer’s taxable period that occurred after June 30 of the taxable year. • Add the amounts in Step 1 and Step 2, and then divide the sum by the total number of days in the taxpayer’s taxable year. • Round the rate determined in Step 3 to the nearest 0.01%. A new add-back (149) is available for the add-back of certain meal expenses and for which a deduction is allowable in determining federal adjusted gross income. See page 9 for more information. Credits • • A new credit (865) is available for EDGE credits based on non-resident employees working in Indiana. See page 14 for more information. School Scholarship Tax Credit Contribution Ceiling Increased. The total of allowable net contributions to the program has increased to $17.5 million for the program’s fiscal year of July 1, 2021 through June 30, 2022. 3 Annual Public Hearing In accordance with the Indiana Taxpayer Bill of Rights, the Indiana Department of Revenue will conduct an annual public hearing in Indianapolis in June of 2022. Event details will be listed at www.in.gov/dor/news-media-and-publications/dor-publicevents/annual-public-hearings. Please come and share feedback or comments about how DOR can better administer Indiana tax laws. If not able to attend, please submit feedback or comments in writing to: Indiana Department of Revenue, Commissioner’s Office, MS# 101, 100 N. Senate Avenue, Indianapolis, IN 46204. Our homepage provides access to forms, information bulletins and directives, tax publications, email, and various filing options. Visit www.in.gov/dor/. General Instructions for Form IT-20NP If filing federal Form 990 or 990T, enclose a copy of the federal return(s) with Form IT-20NP. Who Must File Form IT-20NP All nonprofit organizations must file Form IT-20NP to report any unrelated business income over $1,000 during the tax year. For further information concerning filing requirements and how to obtain status as a nonprofit organization, see Income Tax Information Bulletin #17 (www.in.gov/dor/files/reference/ib17.pdf). Forms for Specific Nonprofit Organizations Type of Entity Homeowner’s Association Federal Form Filed or Requirement Federal 1120-H Political Organization Federal 1120POL Indiana Form Federal Form 990 or 990T Utility Service Provider Religious or Apostolic Federal Form Organization 1065 Miscellaneous Information IT-20 15th day of the 5th month following close of the Not considered nonprofit organization for taxable year Indiana tax purposes. IT-20 15th day of the 5th month If nonprofit is filing an 1120-POL, report such following close of the income on IT-20NP, not the IT-20. taxable year IT-20NP A nonprofit organization or corporation must file Form IT-20NP and/or Form NP-20. After nonprofit status is granted, the organization must file the annual report (NP-20) to maintain state recognition of its sales tax exemption. If the organization has unrelated business income over $1,000 during the tax year, it must also file Form IT-20NP. For information about nonprofit filing requirements, get Income Tax Information Bulletin #17 at www.in.gov/ dor/files/reference/ib17.pdf. DOR recognizes the exempt status determined by the IRS. An organization registered as a nonprofit is subject to the AGIT unless the income is specifically exempt from taxation under the Adjusted Gross Income Tax Act (IC 6-3-2-2.8 and 6-3-2-3.1). The nonprofit organization is subject to both 15th day of the 5th month federal and state tax on income derived from an following close of the unrelated trade or business, as defined in IRS taxable year Section 513. NP-20 15th day of the 5th month following close of the taxable year URT-1 15th day, 4th month following close of taxable year IT-65 15th day of the 4th month following close of the taxable year Nonprofit Organization Federal Form 990 or 990T Due Date 4 Nonprofit Corporations (Domestic and Foreign) extension payment for the taxable year. This payment is processed as a fifth estimated payment. (See Income Tax Information Bulletin #15 at www.in.gov/dor/files/reference/ib15.pdf for more details.) Any tax paid after the original due date must include interest. A corporation can be formed for profit or nonprofit purposes. A nonprofit organization is an association whose purpose is to engage in activities that do not provide financial profit to the benefit of its members. Such corporations must obtain nonprofit or tax exempt status from the IRS and Indiana Department of Revenue to be free from certain tax burdens. Interest on the balance of tax due must be included with the return when it is filed. Interest is computed from the original due date until the date of payment. In November of each year, DOR establishes the interest rate for the next calendar year. See Departmental Notice #3 at www.in.gov/dor/files/reference/dn03. pdf for interest rates. Accounting Methods and Taxable Year DOR requires the use of the method of accounting that is used for federal income tax purposes. The taxable year for the unrelated business income tax must be the same as the accounting period adopted for federal adjusted gross income tax purposes. If the apportionment provisions do not fairly reflect the organization’s Indiana income, the taxpayer must petition DOR for permission to use an alternative method. If a valid extension of time or a federal electronic extension to file, check box L on the front of the return. If applicable, enclose a copy of the federal extension of time with the return when filing a state return. Amended Returns Due Date for Filing Form IT-20NP To amend a previously filed Form IT-20NP, a corrected copy of the original form must be filed. Check the box at the top of the form if filing an amended return. To claim a refund of an overpayment, the return must be filed within three years from the latter of the date of overpayment or the due date of the return. The Form IT-20NP return is due on or before the 15th day of the 5th month following the close of the tax year. When an organization does not file a federal return pursuant to the Internal Revenue Code, its tax year shall be the calendar year unless permission is otherwise granted. IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a reduction in tax liability resulting from a federal modification. The claim for refund should be filed within 180 days from the date of modification by the Internal Revenue Service. If an agreement to extend the statute of limitations for an assessment is entered into between the taxpayer and DOR, the period for filing a claim for refund is likewise extended. Exempt Organization The unrelated business income of an exempt organization is subject to the AGI tax and must be reported on Form IT-20NP. If any part of the gross income received by such an organization is used for the private benefit or gain of any member, trustee, shareholder, employee, or associate, the organization will not be granted an exemption. The term “private benefit or gain” does not include reasonable compensation paid to employees for work or services actually performed. Estimated Quarterly Tax Payments A nonprofit organization whose adjusted gross income tax liability on unrelated business income exceeds $2,500 for a taxable year must file quarterly estimated tax payments. To preserve the exemption, a specific group or organization cannot be organized or maintained for private gain or profit. If the organization’s estimated payments exceed the tax liability, credit should be claimed on the annual return, Form IT-20NP, to request a refund or carry over the excess amount to the next year’s estimated tax account. If an estimated account needs to be established, obtain Form E-6 to remit the initial payment and to request preprinted quarterly estimated IT-6 returns. Extensions for Filing Return DOR accepts the federal extension of time application (Form 7004) or the federal electronic extension. If already approved for a federal extension of time application (Form 7004) or the federal electronic extension, it is not necessary to contact DOR before filing the annual return. Returns postmarked within 30 days after the last date indicated on the federal extension are considered timely filed. If a corporation does not need a federal extension of time but needs one for filing a state return, an extension request and prepayment of 90% can be submitted via INTIME, DOR’s e-services portal at intime.dor. in.gov, or by submitting a letter requesting an extension prior to the annual return’s due date. The quarterly estimated tax payments are submitted with an appropriate Indiana voucher, Form IT-6, or via INTIME, DOR’s e-services portal at intime.dor.in.gov, or by electronic funds transfer (EFT), depending on the amount of the payment due. The quarterly due dates for estimated income tax payments for calendar-year organizations are April 20, June 20, Sept. 20, and Dec. 20. Fiscal-year and short-year filers must remit by the 20th day of the 4th, 6th, 9th, and 12th months of the tax period. To request an Indiana extension of time to file by letter, contact the Indiana Department of Revenue, P.O. Box 7228 , Indianapolis, IN 46207-7228. An extension of time granted under IC 6-8.1-6-1 waives the late payment penalty for the extension period on the balance of tax due, provided 90% of the current year’s total tax liability is paid on or prior to the original due date. Use Form IT-6 to make an Claim the credit for estimated and extension payments on lines 20 and 21 of Form IT-20NP. Taxpayers should note that refunds reflected on the annual corporate income tax return may be applied to the next taxable year’s estimated liability by entering the amount to be credited on line 40 of the IT-20NP return. An overpayment of estimated payments must be claimed on the annual return to obtain a refund. After a check is remitted for the 5 remainder of a year’s estimated income tax liability, no further estimated returns should be filed with DOR after the date of payment. All checks remitted to DOR should be accompanied by a return or a complete explanation for the payment. A zero liability for a quarter does not require Form IT-6 to be filed. Use Schedule IT-2220 to show an exception to the penalty if the nonprofit organization underpaid its income tax for any quarter. If an exception to the penalty is not met, payment of the computed penalty must be included with the return. The required estimate should exceed the annualized income installment calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s liability or 25% of the final tax liability for the prior taxable year. If either of these conditions is met, no penalty will be assessed for the estimated period. The quarterly estimated payment must be equal to the lesser of 25% of the adjusted gross income tax liability for the taxable year or the annualized income installment calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s liability for adjusted gross income tax. Special rules may apply if the current or previous taxable year are short taxable years. If the previous taxable year was a short year, prorate the previous year’s tax to reflect the tax for current year. If the current taxable year is a short year, then follow the same periods and percentages necessary to compute federal estimated tax payments. See the instructions for Form IT-20 for further information. To establish an estimated account, contact DOR to remit the initial payment and to request preprinted quarterly estimated IT-6 returns. For further instructions, refer to Income Tax Information Bulletin #11 at www.in.gov/dor/files/reference/ib11.pdf. Electronic Payment Requirements If the amount of the nonprofit organization’s tax on unrelated business income exceeds an average liability of $5,000 per quarter (or $20,000 annually), quarterly estimated tax payments must be remitted electronically via INTIME, DOR’s e-services portal at intime.dor.in.gov , or with an electronic funds transfer (EFT). Because there is no minimum amount of payment, DOR encourages all taxpayers, even if not required to remit payment electronically, do to so via INTIME or participate voluntarily in our EFT program. Instructions for Completing Form IT-20NP Filing Period and Identification File a 2021 Form IT-20NP return for a taxable year ending Dec. 31, 2021, a short tax year beginning in 2021, or a fiscal tax year beginning in 2021 and ending in 2022. For a short or fiscal tax year, at the top of the form fill in the beginning month and day and the ending date of the taxable year. Note. Taxpayers remitting by EFT should not file quarterly IT-6 coupons. The amounts are reconciled when filing the annual income tax return. The identification section of the return must be completed regarding the tax year, name, address, county, date organized, Federal Employer Identification Number, business activity code number, and telephone number. Please use the full legal name of the organization and its current mailing address. If notified of its requirement to remit payment electronically, the organization must begin remitting tax payments via INTIME or by EFT by the date/tax period specified by DOR. For foreign addresses, please note the following: • Enter the name of the city, town, or village in the box labeled City; • Enter the name of the state or province in the box labeled State; • Enter the postal code in the box labeled ZIP Code; and • Enter the 2-digit country code. Failure to comply may result in a 10% penalty on each quarterly estimated income tax liability not paid electronically. Note. The Indiana Code does not require the extension of time to file payment or final payment due with the annual return to be paid electronically. Claim any INTIME or EFT payment as an extension or estimated payment credit. Do not file a return indicating an amount due if any remaining balance has been paid or will be paid via INTIME or by EFT. For a name change, check the box at the top of the return and enclose copies of the amended Articles of Incorporation 4162 or Amended Certificate of Authority filed with the Indiana Secretary of State with the return. The Federal Employer Identification Number shown in the box in the upper-right corner of the return must be accurate and the same as used for federal purposes. Penalty for Underpayment of Estimated Taxes Organizations estimating income taxes are subject to a 10% underpayment penalty if they fail to timely file estimated tax payments or fail to remit a sufficient amount. To avoid the penalty, the required quarterly estimated payments must be at least 25% of the total income tax liability for the current taxable year or 25% of the organization’s final income tax liability for the previous tax year. The penalty for the underpayment of estimated tax is assessed on the difference between the actual amount paid by the organization for each quarter and 25% of its final income tax liability for the current tax year. Refer to Schedule IT-2220, Penalty for the Underpayment of Corporate Income Taxes, which is available online at www.in.gov/dor/tax-forms/2021corporatepartnership-income-tax-forms/. Enter the principal business activity code, from the North American Industry Classification System (NAICS), in the designated block of the return. Use the six-digit activity code reported on the federal corporation income tax return. Other Unrelated Business Activity numbers that might be applicable: 900000 Unrelated debt-financed activities (other than rental or real estate) 6 900001 Investment activities by Section 501(c)(7), (9), or (17) organizations 900002 Rental of tangible personal property 900003 Passive income activities with controlled organizations 900004 Exploited exempt activities 999999 Unclassified establishments (unable to classify) income. To be subject to tax, the income must be from a trade or business activity regularly carried on by the nonprofit organization that is not substantially related to its exempt purpose. Indiana follows the Internal Revenue Service’s rulings regarding types of income substantially related to or not related to an organization’s exempt purpose. Refer to Internal Revenue Service Publication 598. Exclusions from Unrelated Business Income Items that do not constitute income from an “unrelated trade or business” include: • Any trade or business in which substantially all the work is performed for the organization without compensation; • Any trade or business carried on by a charitable organization or by a state college or university primarily for the convenience of its members, students, patients, officers, or employees; • Any trade or business consisting of selling merchandise, substantially all of which has been received by the organization as gifts or contributions; • The furnishing by a qualified hospital at or near cost of certain common services, including purchasing, billing and collection, and record keeping, to small hospitals, i.e. serving fewer than 100 in-patients; • Qualified public entertainment activities of certain types of exempt organizations when a qualifying organization regularly conducts as one of its substantial exempt purposes an agriculture and educational fair or exposition; • Qualified convention and trade show activities of a qualifying organization that regularly conducts, as one of its substantial exempt purposes, a show that stimulates interest in, and demand for, the products of a particular industry or segment of an industry; • Certain charity gaming events as long as the organization is properly licensed; • Certain pole rentals, by a mutual or cooperative telephone or electric company; • Certain distributions of low-cost articles, incidental to the solicitation of charitable contributions, and the exchange or rental of mailing lists by charitable organizations; and • Sponsorship payments for which the payer receives no substantial return benefit other than the use or acknowledgement of the name, logo, or product lines of the payer’s trade or business in connection with the organization’s activities. Questions K, L and M K. Check or complete all boxes that apply to the return. Check the “final return” box only if the nonprofit is dissolved, liquidated, or has withdrawn from the state. Also, Form BC-100 must be filed to close out any sales and withholding accounts. Go to www.in.gov/dor/taxforms/business-tax-forms/ to complete this form online. L. Check the appropriate box if filing Indiana Schedule M, Alternate Adjusted Gross Income Tax Calculation. Check the Yes box if an extension of time to file the return is in effect. If applicable, enclose a copy of federal Form 7004 when filing a state return. M. Check the box if you have income or losses from multiple lines of unrelated trades or businesses for the current taxable year and/or you are reporting a loss from a previous year in which you had a suspended net operating loss due to the operation of multiple lines of unrelated trades or business in a taxable year after 2017. Report of Unrelated Business Income All organizations described in Internal Revenue Code (IRC) Section 501(c) and IRC Section 401(a), including churches, religious organizations, hospitals, social organizations, business leagues, pension trusts, and all other institutions, that are subject to the tax imposed by IRC Section 511 are also subject to Indiana adjusted gross income tax on unrelated business income. IC 6-3-2-3.1 provides that only the unrelated business income (as defined in IRC Section 513) of an organization otherwise exempt from adjusted gross income tax under IC 6-3-2-2.8(1) is subject to adjusted gross income tax. (This section does not apply to the United States, its agencies or instrumentalities or to the State of Indiana, its agencies or political subdivisions.) Adjusted Gross Income Tax Computation for Unrelated Business Income Under the Adjusted Gross Income Tax Act, DOR recognizes the method of accounting used for federal income tax purposes. If income is received from activity outside Indiana that is subject to tax in another state, the apportionment formula must be used. Enclose the completed Schedule E or Schedule E-7 with the return. Pension trusts that would be taxed as a trust were it not for the exemption under IRC Section 501(a) will be taxed as a trust on any unrelated business income (as defined in IRC Section 513) and should file a Form IT-41. Income from bingo events; raffles; door prizes; charity game nights; festival events; and the sale of pull tabs, punchboards, and tip boards are considered unrelated business income unless the organization uses completely volunteer labor and is properly registered with the Indiana Gaming Commission to conduct such activities. Note. Round all entries to the nearest whole dollar amount. Do not use a comma in dollar amounts of four digits or more. For example, instead of entering “3,455” enter “3455.” Important: If you are completing Schedule IN-UBI, lines 1-8 and 12 apply only to income the lines of business that have generated positive unrelated business taxable income for the taxable year. The organization may have income from the sources enumerated on IT-20NP schedules that is not subject to tax as unrelated business 7 However, if you are using a net operating loss from an unrelated line of business against income from that line of business, you will use the portion of amounts reported on Schedule IN-UBI from the loss year. In this example, the asset was acquired in January 2009 at a purchase price of $120,000. This normally would have a 25-year recovery period, but IRC Sec. 168 allows for a 15-year recovery period. Tax year 2012 is the last year ABC Company will have reported a qualified restaurant equipment add-back until the end of the 15-year recovery period. Line 1. Enter unrelated business taxable income (before net operating loss deduction and specific deductions) from federal Form 990T, Exempt Organization Business Income Tax Return. If you are including a loss from Schedule IN-UBI, include the amount of unrelated business taxable income allowed to be used as a federal net operating loss for the taxable year. If this asset was sold before being fully depreciated, the catch-up modification would be reflected in the year of the sale. However, if this property is held through 2023 (the 15th year of depreciation), ABC Company will report a negative $9,600 catch-up add-back on the 2023 state tax return. Line 2. Enter the amount of non-unitary partnership income included in Line 1. Attach information detailing the sources of income, including the name of the partnership, federal K-1 distributive share of income partnership, and Indiana IN K-1 share of income from the partnership. This should be in the form provided by Schedule F of the IT-20, lines 9 through 11. List each partnership separately. Enter the following modifications on these lines. Federal Gross Repatriated Dividend Add-Back (3-digit code: 138) Enter the amount reportable on federal Form 965, Part II, Line 17 and reportable as unrelated business income for federal income tax purposes. Line 3. In computing unrelated business taxable income, a specific deduction of $1,000 is allowed. However, the $1,000 specific deduction is not allowed in computing a net operating loss (NOL) deduction. Generally, the deduction is limited to $1,000 regardless of the number of unrelated businesses in which the organization is engaged. An exception is provided in the case of a diocese, a province of a religious order, or a convention or an association of churches that may claim a specific deduction for each parish, individual church, district, or other local unit, to the extent these unrelated businesses are not separate legal entities. In these cases, the specific deduction is limited to the lower of $1,000 or the gross income derived from an unrelated trade or business regularly carried on by the local unit. Charitable Contributions – Enter an amount equal to any IRC Section 170 deduction claimed on the federal return. State Income Taxes (3-digit code: 100) Enter all taxes based on or measured by income levied at the state level and claimed on the federal return. Do not enter any property taxes or local income taxes on this line. Bonus Depreciation (3-digit code: 104) Add or subtract an amount to bonus depreciation in excess of any regular depreciation that would be allowed had not an election under IRC Section 168(k) been made as applied to property in the year that it was placed into service. Taxpayers who own property for which additional first year special depreciation for qualified property, including 100% bonus depreciation, was allowed in the current taxable year or in an earlier taxable year must add or subtract an amount necessary to make the adjusted gross income equal to the amount computed without applying any bonus depreciation. The subsequent depreciation allowance is to be calculated as if no bonus depreciation was allowed until the property is disposed or fully depreciated for Indiana purposes. Income Tax Information Bulletin #118 (www.in.gov/dor/files/ reference/ib118.pdf) explains this initial required modification on the allowance of depreciation for state tax purposes. Line 4. Subtract line 2 and line 3 from line 1. Lines 5 through 8. Add or subtract any modifications to Indiana adjusted gross income. Enter the applicable 3-digit code for each modification beside “Code No.” If an amount is an addition to Indiana adjusted gross income, enter the amount as a positive number. If an amount is a deduction or otherwise reduces Indiana adjusted gross income, enter the amount as a negative number. If you have more than four modifications, include a separate schedule as an attachment listing those modifications, three-digit codes, and modification amounts. Adding Back Depreciation Expenses Several of the discontinued add-backs were created by timing differences between federal and Indiana allowable expenses. Following is an example of how to report a difference. Special rules may apply if the bonus depreciation is taken against property acquired in a like-kind exchange. See Income Tax Information Bulletin #118 at www.in.gov/dor/files/reference/ ib118.pdf for additional information. Example. ABC Company has qualified restaurant equipment. For federal tax purposes, they use the accelerated 15-year recovery period for an asset placed in service in 2009. Since 2009, ABC Company has been adding back the depreciation expense taken for federal purposes that exceeded the amount allowable for Indiana purposes. The accumulated depreciation on such an asset through 2012 is, therefore, different for federal and state purposes. This difference will remain until the asset is fully depreciated or until the time of its disposition. Section 179 Expense (3-digit code: 105) Add or subtract the amount necessary to make the adjusted gross income of the taxpayer that placed any IRC Section 179 property 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 as if the federal limit for expensing under IRC section 179 was $25,000 as opposed to $1,000,000 (adjusted for inflation). Indiana has adopted an expensing cap of $25,000. This modification affects the basis of the property if a higher Section 179 limit was 8 applied. The federal increase to a $1,000,000 deduction was not allowed for purposes of calculating Indiana adjusted gross income. However, the $2,500,000 threshold for phase-out (adjusted for inflation) is allowed for purposes of calculating Indiana AGI. The depreciation allowances in the year of purchase and in later years must be adjusted to reflect the additional first-year depreciation deduction, including the special depreciation allowance for 100% bonus depreciation property, until the property is sold or otherwise fully depreciated for Indiana purposes. from a winning ticket holder for valuable consideration are not eligible for this deduction. COVID-related Employee Retention Credit Disallowed Expenses Deduction (3-digit code: 634) If you had a deduction that was disallowed for federal purposes because an employer claimed a federal COVID-related employee retention credit, deduct the amount that was: • disallowed for federal purposes; and • that otherwise would have been allowable in determining Indiana adjusted gross income. Note. The net amount determined for the net bonus depreciation or the IRC Section 179 add-back might be a negative figure (because of a higher depreciation allowable in subsequent years). If it is, use a minus sign to denote that. (If the taxable income is a loss, this adjustment increases a loss when added back.) Enclose a statement to explain the adjustment. Do not deduct any amounts for amounts disallowed for nonCOVID related employee retention credits such as disaster-related employee retention credits. Indiana-only Tax-exempt Bonds Deduction (3-digit code: 636) If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities or amounts received upon redemption or maturity of the bond, deduct any interest or other income included in federal gross income. Do not deduct any bond interest that is excluded from federal gross income. In addition, if you sell the bond, do not deduct any amounts for which the bond is sold in excess of your purchase price. See IC 6-8-5-1 for further information regarding the deduction. Special rules may apply if the Section 179 expensing is taken against property acquired in a like-kind exchange. See Income Tax Information Bulletin #118 at www.in.gov/dor/files/reference/ ib118.pdf for additional information. OOS Municipal Obligation Interest (3-digit code: 137) Interest earned from a direct obligation of a state or political subdivision other than Indiana (out of state, or OOS) is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. Interest earned from obligations held or acquired before Jan. 1, 2012, is not subject to Indiana income tax and should not be reported as an add-back. Line 9. Add lines 4 through 8. Line 10. If apportioning income, enter the Indiana percentage (rounded to two decimal places) from line 9 of IT-20 Schedule E, Apportionment of Adjusted Gross Income. Do not enter 100%. Note. Interest earned from obligations of Puerto Rico, Guam, Virgin Islands, American Samoa, or Northern Mariana is not included in federal gross income and is exempt under federal law. There is no add-back for interest earned on these obligations. For more information, see Income Tax Information Bulletin #19, online at www.in.gov/dor/files/reference/ib19.pdf. Enclose Schedule E and see instructions on page 12 for this schedule. Line 11. Multiply line 9 by the Indiana apportionment percentage for state tax on line 10. If line 10 is not applicable, enter the amount from line 9. Meal Deduction Add-Back (3-digit code: 149) If you: • claimed a deduction for meal expenses with regard to food and beverages provided by a restaurant in computing your federal taxable income; AND • the deduction would have been limited to 50% of the meal expenses if the expenses had been incurred before Jan. 1, 2021, add back the amount deducted for federal purposes in excess of 50% of the food or beverage expenses. Line 12. Enter the amount of non-unitary partnership income attributable to Indiana . See the instructions for Form IT-20 for further information. Include a schedule detailing the sources of income, including the name of the partnership, federal K-1 distributive share of income partnership, and Indiana IN K-1 share of income from the partnership. List each partnership separately. Line 13. Enter as a positive figure the full amount of the available Indiana NOL carryover deduction as calculated on revised Schedule IT-20NOL. If carrying over an NOL deduction, enclose Schedule IT-20NOL, as effective on or after Jan. 1, 2004. This corporate form is available from DOR at www.in.gov/dor/taxforms/2021-corporatepartnership-income-tax-forms/. Do not add back any amount for which an exception to the 50% limitation was in effect for amounts paid before Jan. 1, 2021. Example: Monosyllabic, Inc. incurs $2,000 in meal expenses during 2021 and deducts the entire $2,000 in computing its 2021 federal taxable income. The meal expenses would have qualified for only a 50% limitation under pre-2021 IRC § 274. Monosyllabic, Inc. is required to add back $1,000. Please review Schedule IT-20NOL and its instructions before entering an amount on line 11. Do not include amounts reported on Schedule IN-UBI and otherwise added into the Lines 1-8 and 12. Indiana Lottery Winnings Annuity Deduction (3-digit code: 629) Proceeds from a winning Hoosier Lottery ticket from a lottery held prior to July 1, 2002, may be deducted from Indiana adjusted gross income. Entities that have purchased Hoosier Lottery prizes Line 14. Add lines 11 and 12, and subtract line 13. Line 15. Enter any income from Form 1120-POL. 9 Sales/Use Tax Worksheet List all purchases made during the year from out-of-state companies. Column A Description of personal property purchased from out-of-state retailer Column B Column C Date of Purchase(s) Purchase Price Magazine subscriptions: Mail order purchases: Internet purchases: Other purchases: 1. Total purchase price of property subject to the sales/use tax.............................................................. 1C 2. Sales/use tax: Multiply line 1 by .07 (7%)............................................................................................ 2C 3. Sales tax previously paid on the above items (up to 7% per item)...................................................... 3C 4. Total amount due: Subtract line 3 from line 2. Carry to Form IT-20NP, line 18. If the amount is negative, enter zero and put no entry on line 18 of the IT-20NP................................................................... 4C Line 16. Add line 14 and line 15. Indiana adjusted gross income tax for taxable year. If line 16 is a negative figure, enter zero. Line 17. Multiply line 16 by the tax rate. (See page 3 for the tax rate and how to compute it.) Qualified taxable income derived from a designated Indiana Military Base Enhancement Area (MBEA) is subject to tax at the rate of 5%. It’s possible to qualify as an MBEA taxpayer under IC 6-3-2-1.5. If qualified, complete and enclose a copy of Schedule M, Alternate Adjusted Gross Income Tax Calculation and check question box K. (Schedule on the front of Form IT-20NP. This form is available in the current-year Indiana Corporate Income Tax Booklet, which can be found online at www.in.gov/dor/tax-forms/2021corporatepartnership-income-tax-forms/.) Summary of Calculations Line 18. IC 6-2.5-3-2 imposes a use tax at the rate of 7% on the use, storage, and consumption of tangible personal property in Indiana when sales tax was not paid at the point of purchase and no exemption from tax exists. Nonprofit organizations qualify for exemption from use tax under the following conditions: • The nonprofit organization is exempt from the gross retail sales tax under IC 6-2.5-5-22 through 26; • The property or service is used to further its nonprofit purpose; or • The organization is not operated predominantly for social purposes. Purchases of tangible personal property to be used by organizations operated predominately for social purposes are subject to use tax. If more than 50% of the expenditures are for or related to social activities such as food and beverage services, golf courses, swimming pools, dances, parties, and other similar social activities, the organization is considered to be predominately operated for social purposes. In no instance will purchases for the private benefit of any member of the organization or any other individual, such as meals or lodging, be eligible for exemption. Registered merchants for Indiana will report nonexempt purchases on Form ST-103, Indiana Sales/Use Tax Return. If Form ST-103 is not required or all taxable purchases have not been properly included on the ST-103 return, complete the Sales/ Use Tax Worksheet above and report the tax due on this line. Caution: Do not report any amounts from the ST-103 on this worksheet or on Form IT-20NP. Find additional information regarding sales/use tax for nonprofit organizations in Sales Tax Information Bulletin #10 (www.in.gov/dor/files/reference/sib10. pdf) or by calling (317) 232-2240. Line 19. Add lines 17 and 18. Credits and Payment Computation Line 20. Enter the total amount of estimated quarterly income tax payments made for the tax year. Itemize each payment in the spaces provided. Line 21. Enter the total amount paid with valid extension. Line 22. Enter the amount of prior-year overpayment credit. Line 23. Enter any withholding credits from Schedule IN K-1s that you may have received. In addition, if you have a portion of a Headquarters Relocation Credit that is refundable, include the refundable portion on this line. You must provide any Schedule IN K-1s necessary to verify withholding credits as well as any certifications from IEDC supporting the refundable Headquarters Relocation Credit. Line 24. Economic Development for a Growing Economy Credit (EDGE) This credit is for businesses that conduct certain activities designed to foster job creation in Indiana. It is a refundable tax liability credit. Note. Schedule IN-EDGE must be completed and enclosed the return. Otherwise, the credit will not be allowed. A PIN also must be obtained from the IEDC. Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility 10 requirements. For more information call (317) 232-8800 or visit www.iedc.in.gov for additional information. Line 25. Economic Development for a Growing Economy Retention Credit (EDGE-R) This credit is for businesses that conduct certain activities designed to foster job retention in Indiana. It is a refundable tax liability credit. The aggregate amount of credits awarded for projects to retain existing jobs in Indiana is capped at $10 million per year. Note. Schedule IN-EDGE-R must be completed and enclosed with the return. Otherwise, the credit will not be allowed. A PIN also must be obtained from the IEDC. • penalty for paying late is not imposed if all three of the following conditions are met: o A valid extension of time to file exists; o At least 90% of the tax liability was paid by the original due date; and o The remaining tax is paid by the extended due date. If the return showing no tax liability on line 19 is filed late, a penalty for failure to file by the due date will be $10 per day that the return is past due, up to a maximum of $250. Line 37. Add lines 33 through 36. Make a separate payment for each return filed. Payments to DOR must be made with U.S. funds. Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility requirements. Visit www.iedc.in.gov for additional information. Line 38. Enter the result of line 32 minus lines 19, 34, 35, and 36. Lines 26 through 30. Enter the total amount of offset (nonrefundable) credits. Line 40. If electing to credit all or a portion of the overpayment to next year’s estimated adjusted gross income tax account, enter the amount of the overpayment to be applied. An election to apply an overpayment to the following year is irrevocable. Note. Any credits required to be listed on Schedule IN-OCC should be included on Line 31 instead of lines 26 through 30. Line 31. If claiming any credits on IN-OCC including credits passed through from Schedule IN K-1 Part 2, enter the total of those credits here and enclose Schedule IN-OCC with the return. The credit codes reported on IN-OCC are 820, 835, 849, 858, 860, 863, 865, 1820, 1835, 1849, 1858, 1860, 1863, and 1865. Failure to enclose the IN-OCC with the return will result in the denial in any of the credits listed above. Line 32. Add lines 20 through 31. Note that certain credits may not exceed the amount of tax liability on line 17. Line 39. Enter the portion of the overpayment to be refunded. The sum of lines 39 and 40 must equal the amount of the total overpayment on line 38. If the overpayment is reduced due to an error on the return or an adjustment by DOR, the amount to be refunded (line 39) will be corrected before any changes are made to the amount on line 40. Any refund due may be applied to other liabilities under IC 6-8.1-9-2(a), IC 6-8.1-9.5, and IC 6-8.1-9.7. Schedule IN-UBI If you have multiple lines of business, please complete Schedule INUBI before completing the lines below and follow the instructions on that schedule. Attach a copy of Schedule IN-UBI with your IT-20NP. Line 33. If line 19 is greater than line 32, enter the difference here. Line 34. Enter the amount of calculated penalty for the underpayment of income taxes from Schedule IT-2220. Enclose a completed Schedule IT-2220, which is available at www.in.gov/ dor/tax-forms/2021-corporatepartnership-income-tax-forms/. Corporations required to make quarterly estimated payments are permitted to use the annualized income installment method calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s adjusted gross income tax liability. If using this method, please check the box on this line and enclose a copy of the calculations when filing the tax return. DOR will review each request on a case-by-case basis. Note. If a taxpayer’s annual liability exceeds $2,500, filing quarterly estimated payments to remit 25% of the estimated annual tax liability is required. Line 35. For the current rate of interest charged see Departmental Notice #3 available at www.in.gov/dor/files/reference/dn03.pdf. Line 36. Enter the penalty amount that applies: • If the return with payment is made after the original due date, a penalty that is the greater of $5 or 10% of the balance of tax due on line 33 must be entered. The Certification of Signatures and Authorization Section Sign, date, and print the entity’s name on the return. If a paid preparer completes the return, authorize DOR to discuss the tax return with the preparer by checking the authorization box above the line for the name of the personal representative. Personal Representative Information Typically, DOR contacts the entity if there are any questions or concerns about the tax return. If DOR can discuss the tax return with someone else (e.g., the person who prepared it or a designated person), complete this area. First, check the “Yes” box that follows the sentence “I authorize the Department to discuss my tax return with my personal representative.” Next, enter: • The name of the individual designated as the entity’s personal representative; and • The individual’s email address. If this area is completed, DOR is authorized to contact the 11 personal representative, instead of the entity, about this tax return. After the return is filed, DOR will communicate primarily with the designated personal representative. Note. The authorization for DOR to be in contact with the personal representative can be revoked at any time. To do so, submit a signed statement to DOR. The statement must include a name, Federal Employer Identification Number of the entity, and the year of the tax return. Mail the statement to Indiana Department of Revenue, P.O. Box 7206, Indianapolis, IN 46207-7206. Officer Information An officer of the organization must sign and date the tax return and enter the officer’s name and title. Please provide a daytime telephone number DOR can call if there are any questions about the tax return. Also, provide an email address if contact via email is desired. Paid Preparer Information Fill out this area if a paid preparer completed this tax return. The paid preparer must sign and date the return. In addition, please enter the following: • The paid preparer’s email address; • The name of the firm the paid preparer is employed by; • The paid preparer’s PTIN (personal tax identification number). This must be the paid preparer’s PTIN; do not enter an FEIN or Social Security number; • The paid preparer’s complete address. Note. Complete this area even if the paid preparer is the same individual designated as the personal representative. Mailing Options Please mail completed returns to: Indiana Department of Revenue P.O. Box 7228 Indianapolis, IN 46207-7228 Instructions for Indiana Apportionment of Adjusted Gross Income all jurisdictions during the tax year. Only include receipts that resulted from unrelated business income. In the case of certain receipts, all or a portion of the receipts are not included. • For receipts includible under IRC section 965 or GILTI (IRC Section 951A), the amount included as a receipt is the amount included in adjusted gross income minus any amount claimed as a foreign source dividend under IC 6-3-2-12. • For receipts from the sale of securities, including stocks, bonds, options, and future and forward contracts, only the net gain from the sale is treated as a receipt. • For receipts from hedging or similar transactions, only the net gain resulting from both sets of transactions is treated as a receipt. The numerator of the receipts factor must include the following to the extent included in the receipts denominator: • All sales made in Indiana; • All sales made from Indiana to the U.S. government; • All receipts from sales of business property in Indiana; and • All interest, dividend, or other intangible income earned in Indiana. The numerator contains intangible income attributed to Indiana, including interest from consumer and commercial loans, installment sales contracts, and credit and debit cards as prescribed under IC 6-3-2-2.2. Total receipts include gross sales of real and tangible personal property less returns and allowances. Sales of tangible personal property are in Indiana if the property is delivered or shipped to a purchaser within Indiana regardless of the f.o.b. point or other conditions of sale. Indiana no longer requires the inclusion of “throwback” sales in the numerator of the receipts factor. Sales or receipts not specifically assigned above shall be assigned as follows: • Gross receipts from the sale, rental, or lease of real property are in Indiana if the real property is located in Indiana; • Gross receipts from the rental, lease, or licensing of the use of tangible personal property are in Indiana if the property is in Indiana. If property was both within and outside Indiana during the tax year, the gross receipts are considered in Indiana to the extent the property was used in Indiana; • Interest income and other receipts from loans or installment sales contracts that are primarily secured by or deal with real or tangible personal property are attributed to Indiana if the security or sale property is located in Indiana; consumer loans not secured by real or tangible personal property are attributed to Indiana if the loan is made to an Indiana resident; and commercial loans and installment obligations not secured by real or tangible personal property are attributed to Indiana if the proceeds of the loan are applied in Indiana. • Interest income, merchant discounts, travel and entertainment credit card receivables, and credit card holder’s fees are attributed to the state where the card charges and fees are regularly billed. Use of Apportionment Schedule E If an organization has unrelated business (adjusted gross) income from both within and outside Indiana, the organization must apportion its income by means of the formula under IC 6-3-2-2. DOR will not accept returns filed for adjusted gross income tax purposes using the separate accounting method. IT-20 Schedule E (or Schedule E-7 for interstate transportation companies) must be used unless written permission is granted from DOR. The term “everywhere” does not include sales of a foreign corporation in a place outside the United States. Part I - Apportionment of Adjusted Gross Income Sales/Receipts: The sales factor is a fraction. The numerator is the total receipts of the taxpayer in Indiana during the tax year. The denominator is the total receipts of the taxpayer in 12 • Receipts from the performance of fiduciary and other services are attributed to the state where the benefits of the services are consumed. Receipts from the issuance of traveler’s checks, money orders, or United States savings bonds are attributed to the state where those items are purchased. • Receipts from investments are attributed to Indiana if the taxpayer’s commercial domicile is in Indiana. • Gross receipts from the performance of certain communications and broadcast services are attributed to Indiana if the incomeproducing activity is in Indiana. If such activities are conducted partly within and partly outside Indiana, the gross receipts from the services are attributable to Indiana if the direct costs incurred in Indiana related to those receipts are greater than the direct costs incurred in any other state, unless the activities are otherwise directly attributed to Indiana according to IC 6-3-22.2 or IC 6-3-2-2(f). • Receipts from other services and other intangibles are attributed to Indiana if the benefit of the service or intangible is received in Indiana. Please see Multistate Tax Commission regulations for further information on whether the receipts from a particular transaction are attributed to Indiana. Sales to the United States Government: The United States government is the purchaser when it makes direct payment to the seller. A sale to the United States government of tangible personal property is in Indiana if it is shipped from an office, a store, a warehouse, or another place of storage in Indiana. See the previous rules for sales other than tangible personal property if such sales are made to the United States government. Other Gross Receipts: On line 6, report other gross business receipts not included elsewhere and pro rata gross receipts from all unitary partnerships, excluding from the factors the portion of distributive share income derived from a non-unitary partnership [45 IAC 3.1-1-153(b)]. Only include receipts that resulted from unrelated business income. On line 7, report direct premiums and annuity considerations received during the taxable year for insurance upon property or risks in Indiana. The terms direct premiums and annuity considerations mean the gross premiums received from direct business as reported in the corporation’s annual statement filed with the Department of Insurance. Total Receipts: Complete all lines as indicated. Add all the receipts in Column A (lines 1A through 7A), and enter the total on line 8A. In addition, enter the total receipts from everywhere on line 8B. Apportionment of Income for Indiana Divide line 8A by line 8B. Multiply by 100 to arrive at a percentage rounded to the nearest second decimal place. This is the Indiana apportionment percentage; carry it to the apportionment entry line on the return, line 10 on Form IT-20NP. DOR will not accept returns filed for AGI tax purposes using the separate accounting method. Form IT-20NP, Schedule E or Schedule E-7 must be used unless DOR has granted written permission. The term everywhere does not include sales of a foreign corporation in a place outside the United States. Refer to 45 IAC 3.1-1-153 for tax treatment of unitary corporate partners. Important Note: Do not include Schedule E reflecting 0 receipts in the denominator unless you are apportioning 100% of taxable income to Indiana. Failure to complete Schedule E or check the appropriate box if using another apportionment method may result in DOR computing tax due based on 100% of your taxable income. Use of any apportionment method other than Schedule E or Schedule E-7 requires prior permission from DOR. If permitted to use an alternative method, you must attach a supporting schedule to compute apportioned business income. Part II - Business/Other Income Questionnaire Complete all applicable questions in this section. If income is apportioned, enclose the completed Schedule E or Schedule E-7 with Form IT-20NP. Other Credits Available to Nonprofit Organizations The following credits cannot be refunded; their purpose is to help reduce your state tax due. See Income Tax Information Bulletin #59 at www.in.gov/dor/files/reference/ib59.pdf for more information about the credits. Order of Credit Application If claiming more than one credit, first use the credits that cannot be carried over and applied against the state AGI tax in another year. Next, use the credits that can be carried over for a limited number of years and applied against the state AGI tax. If one or more credits are available, apply the credits in the order that the credits would expire. Finally, use the credits that can be carried over and applied against the state AGI tax in another year. Example: A taxpayer has a neighborhood assistance credit for which no carryover is available, a school scholarship credit that can be carried forward to 2023, and a community revitalization enhancement district credit with an indefinite carryforward. The taxpayer would apply the credits in the following order until the credit is exhausted or the taxpayer’s liability is reduced to zero, whichever comes first: • Neighborhood assistance credit • School scholarship credit expiring in 2023 • Community revitalization enhancement district credit For more information about Indiana tax credits, get Income Tax Information Bulletin #59 at www.in.gov/dor/files/reference/ib59.pdf. Restriction for Certain Tax Credits – Limited to One per Project Within a certain group of credits, a taxpayer may not be granted more than one credit for the same project. The taxpayer can choose the credit to be applied but is not permitted to change the credit selected or redirect the investment for a different credit in 13 subsequent years. Refer to Income Tax Information Bulletin #59 at www.in.gov/dor/files/reference/ib59.pdf for more information. Six credits are included in this group: • Alternative fuel vehicle manufacturer credit; • Community revitalization enhancement district credit; • Enterprise zone investment cost credit; • Hoosier business investment credit; • Industrial recovery credit; and • Venture capital investment credit. Apply this restriction first when figuring credits. Alternative Fuel Vehicle Manufacturer Credit 845 This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. Enclose a certificate of verification from the IEDC for the allowable amount of credit. Also enclose a proof of investment with the return, otherwise the credit will be denied. College and University Contribution Credit 807 A corporate taxpayer might be eligible for a credit if it made any charitable contributions to a college, university, or corporation or foundation organized for the benefit of a post-secondary educational institution located within Indiana. Complete and enclose College Credit Schedule CC-40 with the return, otherwise the credit will be denied. See Income Tax Information Bulletin #14 at www.in.gov/dor/ files/reference/ib14.pdf for eligibility requirements. For more information, visit www.in.gov/dor/. Community Revitalization Enhancement District Credit 808 A state and local income tax liability credit is available for a qualified investment for the redevelopment or rehabilitation of property within a community revitalization enhancement district. To be eligible for the credit, the intended expenditure plan must be approved by the IEDC before the expenditure is made. The credit is equal to 25% of the IEDC-approved qualified investment made by the taxpayer during the tax year. DOR has the authority to disallow any credit if the taxpayer: • Ceases existing operations; • Substantially reduces its operations within the district or elsewhere in Indiana; or • Reduces other Indiana operations to relocate them into the district. The taxpayer can assign the credit to a lessee who remains subject to the same requirements. The assignment must be in writing. Also, any consideration may not exceed the value of the part of the credit assigned. Both parties must report the assignment on state income tax returns for the year of assignment. Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204, or visit the IEDC website at www.iedc.in.gov for more information about this credit. Enclose the certification from the IEDC, otherwise the credit will be denied. About Enterprise Zone Tax Credits Certain areas within Indiana have been designated as enterprise zones. Enterprise zones are established to encourage investment and job growth in distressed urban areas. Enterprise zone maps are available at www.in.gov/dor/businesstax/enterprise-zone-maps/. For more information, get Income Tax Information Bulletin #66 at www.in.gov/dor/files/reference/ib66.pdf. The Indiana Economic Development Corporation at 1 N. Capitol Ave. can be contacted at (317) 232-8800, via website at www.iedc.in.gov, or in person at Suite 700, Indianapolis, IN 46204. Economic Development for a Growing Economy Nonresident Employees (EDGE-NR) 865 This credit is for incremental state income tax amounts that would have been withheld on employees from reciprocal states if those employees had been subject to Indiana state tax withholding. Owners of pass-through entities such as S corporations, partnerships, limited liability companies, etc., are eligible for this credit. Unlike the EDGE and EDGE-R credits, the EDGE-NR credit is a non-refundable credit. This credit is administered by the IEDC. Contact them at One North Capitol, Suite 700, Indianapolis, IN 46204, via website at www.iedc.in.gov, or by phone at (317) 232-8800. The approved credit must be reported on Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2021-individual-income-taxforms/. Make sure to enclose this schedule with your tax filing. If you are claiming this credit as an owner of a pass-through entity such as S corporations, partnerships, limited liability companies, etc., make sure to keep Schedule IN K-1 with your records as DOR can require you to provide this information. Enterprise Zone Employment Expense Credit 812 This credit is based on qualified investments made within an Indiana enterprise zone. It is the lesser of 10% of qualifying wages or $1,500 per qualified employee, up to the amount of tax liability on income derived from an enterprise zone. For more information on how to calculate this credit, get Indiana Schedule EZ Parts 1, 2, and 3 online at www.in.gov/dor/taxforms/enterprise-zone-forms/. Enclose Schedule EZ 2 with the return, otherwise the credit will be denied. Enterprise Zone Loan Interest Credit 814 This credit can be for up to 5% of the interest received from all qualified loans made during a tax year for use in an Indiana enterprise zone. However, this credit cannot be claimed for loans made after December 31, 2017. 14 Get Income Tax Information Bulletin #66 at www.in.gov/dor/files/ reference/ib66.pdf for more information on how to calculate this credit. Historic Building Rehabilitation Credit 819 Note. Schedule LIC must be enclosed if claiming this credit; it is available at www.in.gov/dor/tax-forms/enterprise-zone-forms/. Contact the Indiana Economic Development Corporation at 1 N. Capitol Ave., Suite 700, Indianapolis, IN 46204; call them at (317) 232-8800; or visit the website at www.iedc.in.gov for additional information. Hoosier Business Investment Credit 820 Enclose Schedule LIC with the return, otherwise the credit will be denied. Ethanol Production Credit 815 This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. Headquarters Relocation Credit 818 A business may be eligible for a credit if it meets one of two sets of criteria. The first set of criteria (“first test”) is that the business meets all of the following: • Has an annual worldwide revenue of $50 million; • Has at least 75 Indiana employees; and • Relocates its corporate headquarters to Indiana. The second set of criteria (“second test”) is that the business meets either (1) or (2), meets (3), and meets (4) or (5): 1. Received at least $4 million in venture capital in the six months immediately preceding the business’s application for this tax credit.
More about the Indiana Form IT-20NP Corporate Income Tax Tax Return TY 2021
We last updated the Nonprofit Organization Unrelated Business Income Tax Booklet with Forms and Schedules in March 2022, so this is the latest version of Form IT-20NP, fully updated for tax year 2021. You can download or print current or past-year PDFs of Form IT-20NP directly from TaxFormFinder. You can print other Indiana tax forms here.
Other Indiana Corporate Income Tax Forms:
|Form Code||Form Name|
|IT-65 Booklet||Current Year Partnership Return Booklet with Forms and Schedules|
|IT-20S Booklet||Current Year S Corporation Income Tax Booklet with Forms and Schedules|
|Schedule IN K-1||Shareholder's/Partner's Share of IN AGI, Deductions, Modifications and Credits|
|Form NP-20||Nonprofit Organization's Annual Report|
|IT-20 Booklet||Current Year Corporate Adjusted Gross 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 IT-20NP from the Department of Revenue in March 2022.
Form IT-20NP is an Indiana Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
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 IT-20NP
We have a total of eleven past-year versions of Form IT-20NP 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.