INDIANA 2 02 2 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.
| INDIANA 2 02 2 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. |
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SP 155
(R20 / 8-22)
Page 2 IT-20NP Nonprofit Booklet 2022
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INDIANA IT-20NP
Nonprofit Organization Unrelated Business Income Tax Booklet Year 2022
Contents
What’s New for 2022 ..............................................................................................................................................................4
General Information ..............................................................................................................................................................4
General Instructions for Form IT-20NP .............................................................................................................................4
Instructions for Completing Form IT-20NP ......................................................................................................................7
Certification of Signatures and Authorization Section ...................................................................................................12
Mailing Options ....................................................................................................................................................................12
Instructions for Indiana Apportionment of Adjusted Gross Income ............................................................................12
Other Credits Available to Nonprofit Organizations .......................................................................................................14
About Enterprise Zone Tax Credits ..................................................................................................................................15
Other Related Income Tax Filing Requirements of a Nonprofit Organization ............................................................18
IT-20NP Nonprofit Booklet 2022 Page 3
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INTIME e-Services Portal Available
INTIME, DOR’s e-services tax portal available at intime.dor.in.gov, General Information
provides the following functionalities for IT-20NP customers:
• Make payments using a bank account or credit card Computing the Tax Rate
• View and respond to correspondence from DOR The corporate AGI tax rate is 4.9%.
• Request and print return transcripts on-demand
• Electronic delivery of correspondence Annual Public Hearing
• Online customer service support through secure messaging In accordance with the Indiana Taxpayer Bill of Rights, the
Indiana Department of Revenue will conduct an annual public
Increased Online Support for Tax Preparers hearing in Indianapolis in June of 2023. Event details will be listed
In addition to the functionality listed above, INTIME provides at www.in.gov/dor/news-media-and-publications/dor-public-
increased access and functionality for tax preparers. INTIME events/annual-public-hearings. Please come and share feedback
provides the following functionality for tax preparers: or comments about how DOR can better administer Indiana tax
• Gain access to view and manage multiple customers under laws. If not able to attend, please submit feedback or comments
one login in writing to: Indiana Department of Revenue, Commissioner’s
• Ability to file returns, make payments, and view file and pay Office, MS# 101, 100 N. Senate Avenue, Indianapolis, IN 46204.
history for clients Our homepage provides access to forms, information bulletins
• Request electronic power of attorney (ePOA) authorization to and directives, tax publications, email, and various filing options.
view customer accounts Visit www.in.gov/dor/.
• View and respond to correspondence for clients
We strongly encourage all taxpayers to make payments and file
returns electronically whenever possible. INTIME allows customers General Instructions for Form IT-20NP
to make estimated payments electronically with just a few clicks. 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
What’s New for 2022 All nonprofit organizations must file Form IT-20NP to report any
unrelated business income over $1,000 during the tax year. For
References to the Internal Revenue Code further information concerning filing requirements and how to
The definition of adjusted gross income (AGI) is updated to obtain status as a nonprofit organization, see Income Tax Information
correspond to the federal definition of adjusted gross income Bulletin #17 at www.in.gov/dor/files/reference/ib17.pdf.
contained in the Internal Revenue Code (IRC). Any reference to
the IRC and subsequent regulations means the Internal Revenue Nonprofit Corporations (Domestic and Foreign)
Code of 1986, as amended and in effect on March 31, 2021. For a A corporation can be formed for profit or nonprofit purposes.
complete summary of new legislation regarding taxation, please see A nonprofit organization is an association whose purpose is to
the Synopsis of 2022 Legislation Affecting the Indiana Department of engage in activities that do not provide financial profit to the
Revenue at www.in.gov/dor/files/2022-legislative-synopsis.pdf. benefit of its members. Such corporations must obtain nonprofit
or tax exempt status from the IRS and Indiana Department of
Credits Revenue to be free from certain tax burdens.
• School Scholarship Tax Credit Contribution ceiling
increased. The total of allowable net contributions to the Accounting Methods and Taxable Year
program has increased to $18.5 million for the program’s DOR requires the use of the method of accounting that is used for
fiscal year of July 1, 2022 through June 30, 2023. federal income tax purposes. The taxable year for the unrelated
• A new credit (867) is available for qualifying donations to business income tax must be the same as the accounting period
approved foster care organizations. See page 15 for more adopted for federal adjusted gross income tax purposes. If the
details. apportionment provisions do not fairly reflect the organization’s
• A new credit (868) is available for the venture capital Indiana income, the taxpayer must petition DOR for permission
investment credit for amounts provided to a Qualified to use an alternative method.
Indiana Investment Fund. See page 18 for more
information. Due Date for Filing Form IT-20NP
• A new credit (869) is available for qualified film and media The Form IT-20NP return is due on or before the 15th day of the
productions. See page 15 for more information. 5th month following the close of the tax year.
• Beginning in 2022, the Headquarters Relocation Credit
(818) must be reported on Schedule IN-OCC. When an organization does not file a federal return pursuant to
the Internal Revenue Code, its tax year shall be the calendar year
Utility Receipts Tax and Utility Services Use Tax unless permission is otherwise granted.
The utility receipts tax has been repealed for gross receipts
received after June 30, 2022. In addition, the utility services use
tax has been repealed for billings issued after June 30, 2022.
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Exempt Organization Extensions for Filing Return
The unrelated business income of an exempt organization is DOR accepts the federal extension of time application (Form
subject to the AGI tax and must be reported on Form IT-20NP. 7004) or the federal electronic extension. If already approved for
If any part of the gross income received by such an organization a federal extension of time application (Form 7004) or the federal
is used for the private benefit or gain of any member, trustee, electronic extension, it is not necessary to contact DOR before
shareholder, employee, or associate, the organization will not be filing the annual return. Returns postmarked within one month
granted an exemption. The term “private benefit or gain” does not after the last date indicated on the federal extension are considered
include reasonable compensation paid to employees for work or timely filed. If a corporation does not need a federal extension of
services actually performed. time but needs one for filing a state return, an extension request
and prepayment of 90% can be submitted via INTIME, DOR’s
To preserve the exemption, a specific group or organization e-services portal at intime.dor.in.gov, or by submitting a letter
cannot be organized or maintained for private gain or profit. requesting an extension prior to the annual return’s due date.
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.
Forms for Specific Nonprofit Organizations
Federal Form
Type of Entity Filed or Indiana
Requirement Form Due Date Miscellaneous Information
15th day of the 5th month
Homeowner’s following close of the Not considered nonprofit organization for
Association Federal 1120-H IT-20 taxable year Indiana tax purposes.
15th day of the 5th month If nonprofit is filing an 1120-POL, report such
Political Organization following close of the income on IT-20NP, not the IT-20.
Federal 1120-POL IT-20 taxable year
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
Nonprofit unless the income is specifically exempt from
Organization taxation under the Adjusted Gross Income Tax
Act (IC 6-3-2-2.8 and 6-3-2-3.1). The nonprofit
15th day of the 5th month organization is subject to both federal and state
Federal Form 990 following close of the tax on income derived from an unrelated trade
or 990T IT-20NP taxable year or business, as defined in IRS Section 513.
For new nonprofits beginning in 2022 or later,
May 15 of the fifth year following formation
(i.e., May 15, 2027). For nonprofits formed in
2021 or earlier, see IC 6-2.5-5-25(d) for the
Federal Form 990 applicable deadline for the first report after
or 990T NP-20R May 15 every five years 2022, then every five years thereafter.
15th day of the 4th month
Utility Service following close of taxable
Provider URT-1 year
15th day of the 4th month
Religious or Apostolic
Federal Form following close of the
Organization
1065 IT-65 taxable year
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An extension of time granted under IC 6-8.1-6-1 waives the late the amount to be credited on line 40 of the IT-20NP return. An
payment penalty for the extension period on the balance of tax overpayment of estimated payments must be claimed on the
due, provided 90% of the current year’s total tax liability is paid annual return to obtain a refund. After a check is remitted for the
on or prior to the original due date. Use Form IT-6 to make an remainder of a year’s estimated income tax liability, no further
extension payment for the taxable year. This payment is processed estimated returns should be filed with DOR after the date of
as a fifth estimated payment. (See Income Tax Information Bulletin payment. All checks remitted to DOR should be accompanied
#15 at www.in.gov/dor/files/reference/ib15.pdf for more details.) by a return or a complete explanation for the payment. A zero
Any tax paid after the original due date must include interest. liability for a quarter does not require Form IT-6 to be filed.
Interest on the balance of tax due must be included with the return The quarterly estimated payment must be equal to the lesser of
when it is filed. Interest is computed from the original due date until 25% of the adjusted gross income tax liability for the taxable year
the date of payment. In November of each year, DOR establishes the or the annualized income installment calculated in the manner
interest rate for the next calendar year. See Departmental Notice #3 provided by IRC Section 6655(e) as applied to the corporation’s
at www.in.gov/dor/files/reference/dn03.pdf for interest rates. liability for adjusted gross income tax.
If a valid extension of time or a federal electronic extension to Electronic Payment Requirements
file, check box L on the front of the return. If applicable, enclose a If the amount of the nonprofit organization’s tax on unrelated
copy of the federal extension of time with the return when filing a business income exceeds an average liability of $5,000 per quarter
state return. (or $20,000 annually), quarterly estimated tax payments must
be remitted electronically via INTIME, DOR’s e-services portal
Amended Returns at intime.dor.in.gov, or with an electronic funds transfer (EFT).
To amend a previously filed Form IT-20NP, a corrected copy Because there is no minimum amount of payment, DOR encourages
of the original form must be filed. Check the box at the top of all taxpayers, even if not required to remit payment electronically, do
the form if filing an amended return. To claim a refund of an to so via INTIME or participate voluntarily in our EFT program.
overpayment, the return must be filed within three years from the
latter of the date of overpayment or the due date of the return. Note. Taxpayers remitting by EFT should not file quarterly IT-6
coupons. The amounts are reconciled when filing the annual
IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a income tax return.
reduction in tax liability resulting from a federal modification.
The claim for refund should be filed within 180 days from the date If notified of its requirement to remit payment electronically, the
of modification by the Internal Revenue Service. If an agreement organization must begin remitting tax payments via INTIME or
to extend the statute of limitations for an assessment is entered by EFT by the date/tax period specified by DOR.
into between the taxpayer and DOR, the period for filing a claim
for refund is likewise extended. Failure to comply may result in a 10% penalty on each quarterly
estimated income tax liability not paid electronically.
Estimated Quarterly Tax Payments
A nonprofit organization whose adjusted gross income tax Note. The Indiana Code does not require the extension of time
liability on unrelated business income exceeds $2,500 for a taxable to file payment or final payment due with the annual return to
year must file quarterly estimated tax payments. be paid electronically. Claim any INTIME or EFT payment as
an extension or estimated payment credit. Do not file a return
If the organization’s estimated payments exceed the tax liability, indicating an amount due if any remaining balance has been paid
credit should be claimed on the annual return, Form IT-20NP, or will be paid via INTIME or by EFT.
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 Penalty for Underpayment of Estimated Taxes
established, obtain Form E-6 to remit the initial payment and to Organizations estimating income taxes are subject to a 10%
request preprinted quarterly estimated IT-6 returns. underpayment penalty if they fail to timely file estimated tax
payments or fail to remit a sufficient amount. To avoid the
The quarterly estimated tax payments are submitted with an penalty, the required quarterly estimated payments must be at
appropriate Indiana voucher, Form IT-6, or via INTIME, DOR’s least 25% of the total income tax liability for the current taxable
e-services portal at intime.dor.in.gov, or by electronic funds year or 25% of the organization’s final income tax liability for the
transfer (EFT), depending on the amount of the payment due. previous tax year. The penalty for the underpayment of estimated
The quarterly due dates for estimated income tax payments for tax is assessed on the difference between the actual amount paid
calendar-year organizations are April 20, June 20, Sept. 20, and by the organization for each quarter and 25% of its final income
Dec. 20. Fiscal-year and short-year filers must remit by the 20th tax liability for the current tax year. Refer to Schedule IT-2220,
day of the 4th, 6th, 9th, and 12th months of the tax period. Penalty for the Underpayment of Corporate Income Taxes,
which is available online at www.in.gov/dor/tax-forms/2022-
Claim the credit for estimated and extension payments on lines corporatepartnership-income-tax-forms/.
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
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Use Schedule IT-2220 to show an exception to the penalty if the 900002 Rental of tangible personal property
nonprofit organization underpaid its income tax for any quarter. If 900003 Passive income activities with controlled
an exception to the penalty is not met, payment of the computed organizations
penalty must be included with the return. The required estimate 900004 Exploited exempt activities
should exceed the annualized income installment calculated in 999999 Unclassified establishments (unable to classify)
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 Questions K, L and M
taxable year. If either of these conditions is met, no penalty will be K. Check or complete all boxes that apply to the return.
assessed for the estimated period.
Check the “final return” box only if the nonprofit is dissolved,
Special rules may apply if the current or previous taxable year are liquidated, or has withdrawn from the state. Also, Form
short taxable years. If the previous taxable year was a short year, BC-100 must be filed to close out any sales and withholding
prorate the previous year’s tax to reflect the tax for current year. If the accounts. Go to www.in.gov/dor/tax-forms/business-tax-
current taxable year is a short year, then follow the same periods and forms/ to complete this form online.
percentages necessary to compute federal estimated tax payments.
See the instructions for Form IT-20 for further information. L. 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.
Instructions for Completing
M. Check the box if you have income or losses from multiple
Form IT-20NP lines of unrelated trades or businesses for the current taxable
year and/or you are reporting a loss from a previous year
Filing Period and Identification in which you had a suspended net operating loss due to the
File a 2022 Form IT-20NP return for a taxable year ending Dec. operation of multiple lines of unrelated trades or business in
31, 2022, a short tax year beginning in 2022, or a fiscal tax year a taxable year after 2017.
beginning in 2022 and ending in 2023. For a short or fiscal tax
year, at the top of the form fill in the beginning month and day Report of Unrelated Business Income
and the ending date of the taxable year. All organizations described in Internal Revenue Code (IRC)
Section 501(c) and IRC Section 401(a), including churches,
The identification section of the return must be completed religious organizations, hospitals, social organizations, business
regarding the tax year, name, address, county, date organized, leagues, pension trusts, and all other institutions, that are subject
Federal Employer Identification Number, business activity code to the tax imposed by IRC Section 511 are also subject to Indiana
number, and telephone number. Please use the full legal name of adjusted gross income tax on unrelated business income.
the organization and its current mailing address.
IC 6-3-2-3.1 provides that only the unrelated business income (as
For foreign addresses, please note the following: defined in IRC Section 513) of an organization otherwise exempt
• Enter the name of the city, town, or village in the box labeled from adjusted gross income tax under IC 6-3-2-2.8(1) is subject
City; to adjusted gross income tax. (This section does not apply to the
• Enter the name of the state or province in the box labeled State; United States, its agencies or instrumentalities or to the State of
• Enter the postal code in the box labeled ZIP Code; and Indiana, its agencies or political subdivisions.)
• Enter the 2-digit country code.
Pension trusts that would be taxed as a trust were it not for the
For a name change, check the box at the top of the return and exemption under IRC Section 501(a) will be taxed as a trust on
enclose copies of the amended Articles of Incorporation 4162 or any unrelated business income (as defined in IRC Section 513)
Amended Certificate of Authority filed with the Indiana Secretary and should file a Form IT-41.
of State with the return. The Federal Employer Identification
Number shown in the box in the upper-right corner of the return Income from bingo events; raffles; door prizes; charity game nights;
must be accurate and the same as used for federal purposes. festival events; and the sale of pull tabs, punchboards, and tip boards
are considered unrelated business income unless the organization
Enter the principal business activity code, from the North uses completely volunteer labor and is properly registered with the
American Industry Classification System (NAICS), in the Indiana Gaming Commission to conduct such activities.
designated block of the return. Use the six-digit activity code
reported on the federal corporation income tax return. The organization may have income from the sources enumerated on
IT-20NP schedules that is not subject to tax as unrelated business
Other Unrelated Business Activity numbers that might be income. To be subject to tax, the income must be from a trade or
applicable: business activity regularly carried on by the nonprofit organization
900000 Unrelated debt-financed activities that is not substantially related to its exempt purpose. Indiana
(other than rental or real estate) follows the Internal Revenue Service’s rulings regarding types of
900001 Investment activities by Section 501(c)(7), income substantially related to or not related to an organization’s
(9), or (17) organizations exempt purpose. Refer to Internal Revenue Service Publication 598.
IT-20NP Nonprofit Booklet 2022 Page 7
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Exclusions from Unrelated Business Income Form 990T, Exempt Organization Business Income Tax Return.
Items that do not constitute income from an “unrelated trade or If you are including a loss from Schedule IN-UBI, include the
business” include: amount of unrelated business taxable income allowed to be used
• Any trade or business in which substantially all the work is as a federal net operating loss for the taxable year.
performed for the organization without compensation;
• Any trade or business carried on by a charitable organization Line 2. Enter the amount of non-unitary partnership income
or by a state college or university primarily for the convenience included in Line 1. Attach information detailing the sources
of its members, students, patients, officers, or employees; of income, including the name of the partnership, federal K-1
• Any trade or business consisting of selling merchandise, distributive share of income from a partnership, and Indiana IN
substantially all of which has been received by the K-1 share of income from the partnership. This should be in the
organization as gifts or contributions; form provided by Schedule F of the IT-20, lines 9 through 11. List
• The furnishing by a qualified hospital at or near cost of each partnership separately.
certain common services, including purchasing, billing and
collection, and record keeping, to small hospitals, i.e. serving Line 3. In computing unrelated business taxable income, a
fewer than 100 in-patients; specific deduction of $1,000 is allowed. However, the $1,000
• Qualified public entertainment activities of certain types specific deduction is not allowed in computing a net operating
of exempt organizations when a qualifying organization loss (NOL) deduction. Generally, the deduction is limited to
regularly conducts as one of its substantial exempt purposes $1,000 regardless of the number of unrelated businesses in which
an agriculture and educational fair or exposition; the organization is engaged. An exception is provided in the case
• Qualified convention and trade show activities of a qualifying of a diocese, a province of a religious order, or a convention or an
organization that regularly conducts, as one of its substantial association of churches that may claim a specific deduction for
exempt purposes, a show that stimulates interest in, and each parish, individual church, district, or other local unit, to the
demand for, the products of a particular industry or segment extent these unrelated businesses are not separate legal entities. In
of an industry; these cases, the specific deduction is limited to the lower of $1,000
• Certain charity gaming events as long as the organization is or the gross income derived from an unrelated trade or business
properly licensed; regularly carried on by the local unit.
• Certain pole rentals, by a mutual or cooperative telephone or
electric company; Line 4. Subtract line 2 and line 3 from line 1.
• Certain distributions of low-cost articles, incidental to the
solicitation of charitable contributions, and the exchange or Lines 5 through 8. Add or subtract any modifications to Indiana
rental of mailing lists by charitable organizations; and adjusted gross income. Enter the applicable 3-digit code for each
• Sponsorship payments for which the payer receives modification beside “Code No.” If an amount is an addition to
no substantial return benefit other than the use or Indiana adjusted gross income, enter the amount as a positive
acknowledgement of the name, logo, or product lines of the number. If an amount is a deduction or otherwise reduces Indiana
payer’s trade or business in connection with the organization’s adjusted gross income, enter the amount as a negative number.
activities. If you have more than four modifications, include a separate
schedule as an attachment listing those modifications, three-digit
Adjusted Gross Income Tax Computation for codes, and modification amounts.
Unrelated Business Income
Under the Adjusted Gross Income Tax Act, DOR recognizes the Adding Back Depreciation Expenses
method of accounting used for federal income tax purposes. If Several of the discontinued add-backs were created by timing
income is received from activity outside Indiana that is subject differences between federal and Indiana allowable expenses.
to tax in another state, the apportionment formula must be Following is an example of how to report a difference.
used. Enclose the completed Schedule E or Schedule E-7 with
the return. Example. ABC Company has qualified restaurant equipment. For
federal tax purposes, they use the accelerated 15-year recovery
Note. Round all entries to the nearest whole dollar amount. Do period for an asset placed in service in 2009. Since 2009, ABC
not use a comma in dollar amounts of four digits or more. For Company has been adding back the depreciation expense taken
example, instead of entering “3,455” enter “3455.” for federal purposes that exceeded the amount allowable for
Indiana purposes. The accumulated depreciation on such an asset
Important. If you are completing Schedule IN-UBI, lines 1-8 and through 2012 is, therefore, different for federal and state purposes.
12 apply only to income the lines of business that have generated This difference will remain until the asset is fully depreciated or
positive unrelated business taxable income for the taxable year. until the time of its disposition.
However, if you are using a net operating loss from an unrelated
line of business against income from that line of business, you will In this example, the asset was acquired in January 2009 at a
use the portion of amounts reported on Schedule IN-UBI from purchase price of $120,000. This normally would have a 25-year
the loss 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
Line 1. Enter unrelated business taxable income (before net reported a qualified restaurant equipment add-back until the end
operating loss deduction and specific deductions) from federal of the 15-year recovery period.
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If this asset was sold before being fully depreciated, the catch-up year of purchase and in later years must be adjusted to reflect the
modification would be reflected in the year of the sale. However, if additional first-year depreciation deduction, including the special
this property is held through 2023 (the 15th year of depreciation), depreciation allowance for 100% bonus depreciation property,
ABC Company will report a negative $9,600 catch-up add-back until the property is sold or otherwise fully depreciated for
on the 2023 state tax return. Indiana purposes.
Enter the following modifications on these lines. Note. The net amount determined for the net bonus depreciation
or the IRC Section 179 add-back might be a negative figure
Federal Gross Repatriated Dividend Add-Back (3-digit code: 138) (because of a higher depreciation allowable in subsequent years).
Enter the amount reportable on federal Form 965, Part II, Line 17 If it is, use a minus sign to denote that. (If the taxable income is a
and reportable as unrelated business income for federal income loss, this adjustment increases a loss when added back.) Enclose a
tax purposes. statement to explain the adjustment.
Charitable Contributions Special rules may apply if the Section 179 expensing is taken
Enter an amount equal to any IRC Section 170 deduction claimed against property acquired in a like-kind exchange. See Income
on the federal return. Tax Information Bulletin #118 at www.in.gov/dor/files/reference/
ib118.pdf for additional information.
State Income Taxes (3-digit code: 100)
Enter all taxes based on or measured by income levied at the state OOS Municipal Obligation Interest (3-digit code: 137)
level and claimed on the federal return. Do not enter any property Interest earned from a direct obligation of a state or political
taxes or local income taxes on this line. subdivision other than Indiana (out of state, or OOS) is taxable by
Indiana if the obligation is acquired after Dec. 31, 2011. Interest
Bonus Depreciation (3-digit code: 104) earned from obligations held or acquired before Jan. 1, 2012, is
Add or subtract an amount to bonus depreciation in excess of any not subject to Indiana income tax and should not be reported as
regular depreciation that would be allowed had not an election an add-back.
under IRC Section 168(k) been made as applied to property
in the year that it was placed into service. Taxpayers who own Note. Interest earned from obligations of Puerto Rico, Guam,
property for which additional first year special depreciation Virgin Islands, American Samoa, or Northern Mariana is not
for qualified property, including 100% bonus depreciation, was included in federal gross income and is exempt under federal
allowed in the current taxable year or in an earlier taxable year law. There is no add-back for interest earned on these obligations.
must add or subtract an amount necessary to make the adjusted For more information, see Income Tax Information Bulletin #19,
gross income equal to the amount computed without applying online at www.in.gov/dor/files/reference/ib19.pdf.
any bonus depreciation. The subsequent depreciation allowance
is to be calculated as if no bonus depreciation was allowed until Meal Deduction Add-Back (3-digit code: 149)
the property is disposed or fully depreciated for Indiana purposes. If you:
Income Tax Information Bulletin #118 at www.in.gov/dor/files/ • claimed a deduction for meal expenses with regard to food
reference/ib118.pdf explains this initial required modification on and beverages provided by a restaurant in computing your
the allowance of depreciation for state tax purposes. federal taxable income; AND
• the deduction would have been limited to 50% of the meal
Special rules may apply if the bonus depreciation is taken against expenses if the expenses had been incurred before Jan. 1, 2021,
property acquired in a like-kind exchange. See Income Tax add back the amount deducted for federal purposes in excess of
Information Bulletin #118 at www.in.gov/dor/files/reference/ 50% of the food or beverage expenses.
ib118.pdf for additional information.
Do not add back any amount for which an exception to the 50%
Section 179 Expense (3-digit code: 105) limitation was in effect for amounts paid before Jan. 1, 2021.
Add or subtract the amount necessary to make the adjusted gross
income of the taxpayer that placed any IRC Section 179 property Example. Monosyllabic, Inc. incurs $2,000 in meal expenses
in service in the current taxable year or in an earlier taxable year during 2022 and deducts the entire $2,000 in computing its
equal to the amount of adjusted gross income that would have 2022 federal taxable income. The meal expenses would have
been computed as if the federal limit for expensing under IRC qualified for only a 50% limitation under pre-2021 IRC § 274.
section 179 was $25,000 as opposed to $1,000,000 (adjusted for Monosyllabic, Inc. is required to add back $1,000.
inflation).
Indiana Lottery Winnings Annuity Deduction (3-digit code: 629)
Indiana has adopted an expensing cap of $25,000. This Proceeds from a winning Hoosier Lottery ticket from a lottery
modification affects the basis of the property if a higher Section held prior to July 1, 2002, may be deducted from Indiana adjusted
179 limit was applied. The federal increase to a $1,000,000 gross income. Entities that have purchased Hoosier Lottery prizes
deduction was not allowed for purposes of calculating Indiana from a winning ticket holder for valuable consideration are not
adjusted gross income. However, the $2,500,000 threshold for eligible for this deduction.
phase-out (adjusted for inflation) is allowed for purposes of
calculating Indiana AGI. The depreciation allowances in the
IT-20NP Nonprofit Booklet 2022 Page 9
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COVID-related Employee Retention Credit Disallowed Schedule IN-UBI and otherwise added into the Lines 1-8 and 12.
Expenses Deduction (3-digit code: 634)
If you had a deduction that was disallowed for federal purposes Line 14. Add lines 11 and 12, and subtract line 13.
because an employer claimed a federal COVID-related employee
retention credit, deduct the amount that was: Line 15. Enter any income from Form 1120-POL.
• disallowed for federal purposes; and
• that otherwise would have been allowable in determining Line 16. Add line 14 and line 15. Indiana adjusted gross income
Indiana adjusted gross income. tax for taxable year.
Do not deduct any amounts for amounts disallowed for non- If line 16 is a negative figure, enter zero.
COVID related employee retention credits such as disaster-related
employee retention credits. Line 17. Multiply line 16 by the tax rate. (See page 4 for the tax
rate and how to compute it.)
For 2022, amounts deducted under this section generally should
reflect amounts passed through from partnerships or trusts Summary of Calculations
that had taxable years beginning in 2021 or cases where the Line 18. IC 6-2.5-3-2 imposes a use tax at the rate of 7% on the
modification was suspended due to federal loss limitations for use, storage, and consumption of tangible personal property in
nonprofits with multiple lines of business. If the deduction is from Indiana when sales tax was not paid at the point of purchase and
a source other than a partnership or trust, you may be asked to no exemption from tax exists. Nonprofit organizations qualify for
provide IRS Form 941 to the department. exemption from use tax under the following conditions:
• The nonprofit organization is exempt from the gross retail
Indiana-only Tax-exempt Bonds Deduction (3-digit code: 636) sales tax under IC 6-2.5-5-22 through 26;
If you had interest from a bond issued by or in the name of certain • The property or service is used to further its nonprofit
Indiana government subdivisions or entities or amounts received purpose; or
upon redemption or maturity of the bond, deduct any interest or • The organization is not operated predominantly for social
other income included in federal gross income. Do not deduct purposes.
any bond interest that is excluded from federal gross income.
In addition, if you sell the bond, do not deduct any amounts for Purchases of tangible personal property to be used by
which the bond is sold in excess of your purchase price. See IC organizations operated predominately for social purposes are
6-8-5-1 for further information regarding the deduction. 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
Line 9. Add lines 4 through 8. courses, swimming pools, dances, parties, and other similar social
activities, the organization is considered to be predominately
Line 10. If apportioning income, enter the Indiana percentage operated for social purposes. In no instance will purchases for the
(rounded to two decimal places) from line 9 of IT-20 Schedule E, private benefit of any member of the organization or any other
Apportionment of Adjusted Gross Income. Do not enter 100%. individual, such as meals or lodging, be eligible for exemption.
Enclose Schedule E and see instructions on page 12 for this Registered merchants for Indiana will report nonexempt purchases
schedule. on Form ST-103, Indiana Sales/Use Tax Return. If Form ST-103
is not required or all taxable purchases have not been properly
Line 11. Multiply line 9 by the Indiana apportionment percentage included on the ST-103 return, complete the Sales/Use Tax
for state tax on line 10. If line 10 is not applicable, enter the Worksheet on page 11 and report the tax due on this line.
amount from line 9.
Caution. Do not report any amounts from the ST-103 on this
Line 12. Enter the amount of non-unitary partnership income worksheet or on Form IT-20NP. Find additional information
attributable to Indiana . See the instructions for Form IT-20 for regarding sales/use tax for nonprofit organizations in Sales Tax
further information. Include a schedule detailing the sources Information Bulletin #10 (www.in.gov/dor/files/reference/sib10.
of income, including the name of the partnership, federal K-1 pdf) or by calling (317) 232-2240.
distributive share of income partnership, and Indiana IN K-1 share
of income from the partnership. List each partnership separately. Line 19. Add lines 17 and 18.
Line 13. Enter as a positive figure the full amount of the available Credits and Payment Computation
Indiana NOL carryover deduction as calculated on revised Line 20. Enter the total amount of estimated quarterly income
Schedule IT-20NOL. If carrying over an NOL deduction, enclose tax payments made for the tax year. Itemize each payment in the
Schedule IT-20NOL, as effective on or after Jan. 1, 2004. This spaces provided.
corporate form is available from DOR at www.in.gov/dor/tax-
forms/2022-corporatepartnership-income-tax-forms/. Line 21. Enter the total amount paid with valid extension.
Please review Schedule IT-20NOL and its instructions before Line 22. Enter the amount of prior-year overpayment credit.
entering an amount on line 11. Do not include amounts reported on
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Sales/Use Tax Worksheet
List all purchases made during the tax year from out-of-state retailers.
Column A Column B Column C
Description of personal property purchased from out-of-state retailer Date of purchase(s) Purchase Price of
Property(s)
Magazine subscriptions:
Mail order purchases:
Internet purchases:
Other purchases:
1. Total purchase price of property subject to the sales/use tax: enter total of Columns C .............................. 1
2. Sales/use tax: Multiply line 1 by .07 (7%) ..................................................................................................... 2
3. Sales tax previously paid on the above items (up to 7% per item) ............................................................... 3
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 .................................................................................. 4
Line 23. Enter any withholding credits from Schedule IN K-1s Line 31. If claiming any credits on IN-OCC including credits passed
that you may have received. In addition, if you have a portion of through from Schedule IN K-1 Part 2, enter the total of those credits
a Headquarters Relocation Credit that is refundable, include the here and enclose Schedule IN-OCC with the return. The credit
refundable portion on this line. You must provide any Schedule codes reported on IN-OCC are 818, 820, 835, 849, 858, 860, 863,
IN K-1s necessary to verify withholding credits as well as any 865, 867, 868, 869, 1818, 1820, 1835, 1849, 1858, 1860, 1863, 1865,
certifications from IEDC supporting the refundable Headquarters 1867, 1868, and 1869. Failure to enclose the IN-OCC with the return
Relocation Credit. will result in the denial in any of the credits listed above.
Line 24. Economic Development for a Growing Economy Line 32. Add lines 20 through 31. Note that certain credits may
Credit (EDGE) not exceed the amount of tax liability on line 17.
This credit is for businesses that conduct certain activities
designed to foster job creation in Indiana. It is a refundable tax Line 33. If line 19 is greater than line 32, enter the difference here.
liability credit. Note. Schedule IN-EDGE must be completed and
enclosed the return. Otherwise, the credit will not be allowed. A Line 34. Enter the amount of calculated penalty for the
PIN also must be obtained from the IEDC. underpayment of income taxes from Schedule IT-2220. Enclose
a completed Schedule IT-2220, which is available at www.in.gov/
Contact the Indiana Economic Development Corporation at One dor/tax-forms/2022-corporatepartnership-income-tax-forms/.
North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility Corporations required to make quarterly estimated payments
requirements. For more information call (317) 232-8800 or visit are permitted to use the annualized income installment method
www.iedc.in.gov for additional information. calculated in the manner provided by IRC Section 6655(e) as
applied to the corporation’s adjusted gross income tax liability. If
Line 25. Economic Development for a Growing Economy using this method, please check the box on this line and enclose
Retention Credit (EDGE-R) a copy of the calculations when filing the tax return. DOR will
This credit is for businesses that conduct certain activities designed review each request on a case-by-case basis.
to foster job retention in Indiana. It is a refundable tax liability credit.
Note. If a taxpayer’s annual liability exceeds $2,500, filing
Note. Schedule IN-EDGE-R must be completed and enclosed quarterly estimated payments to remit 25% of the estimated
with the return. Otherwise, the credit will not be allowed. A PIN annual tax liability is required.
also must be obtained from the IEDC.
Line 35. For the current rate of interest charged see Departmental
Contact the Indiana Economic Development Corporation at One Notice #3 available at www.in.gov/dor/files/reference/dn03.pdf.
North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
requirements. Visit www.iedc.in.gov for additional information. Line 36. Enter the penalty amount that applies:
• If the return with payment is made after the original due date,
Lines 26 through 30. Enter the total amount of offset a penalty that is the greater of $5 or 10% of the balance of tax
(nonrefundable) credits. due on line 33 must be entered. The penalty for paying late is
not imposed if all three of the following conditions are met:
Note. Any credits required to be listed on Schedule IN-OCC ο A valid extension of time to file exists;
should be included on Line 31 instead of lines 26 through 30. ο At least 90% of the tax liability was paid by the original
due date; and
IT-20NP Nonprofit Booklet 2022 Page 11
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ο The remaining tax is paid by the extended due date. statement to DOR. The statement must include a name, Federal
• If the return showing no tax liability on line 19 is filed late, a Employer Identification Number of the entity, and the year of the
penalty for failure to file by the due date will be $10 per day tax return. Mail the statement to Indiana Department of Revenue,
that the return is past due, up to a maximum of $250. P.O. Box 7206, Indianapolis, IN 46207-7206.
Line 37. Add lines 33 through 36. Make a separate payment for Officer Information
each return filed. Payments to DOR must be made with U.S. funds. 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
Line 38. Enter the result of line 32 minus lines 19, 34, 35, and 36. number DOR can call if there are any questions about the tax return.
Also, provide an email address if contact via email is desired.
Line 39. Enter the portion of the overpayment to be refunded.
Paid Preparer Information
Line 40. If electing to credit all or a portion of the overpayment to Fill out this area if a paid preparer completed this tax return. The
next year’s estimated adjusted gross income tax account, enter the paid preparer must sign and date the return. In addition, please
amount of the overpayment to be applied. An election to apply an enter the following:
overpayment to the following year is irrevocable. • The paid preparer’s email address;
• The name of the firm the paid preparer is employed by;
The sum of lines 39 and 40 must equal the amount of the total • The paid preparer’s PTIN (personal tax identification
overpayment on line 38. If the overpayment is reduced due to an number). This must be the paid preparer’s PTIN; do not enter
error on the return or an adjustment by DOR, the amount to be an FEIN or Social Security number;
refunded (line 39) will be corrected before any changes are made • The paid preparer’s complete address.
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. Note. Complete this area even if the paid preparer is the same
individual designated as the personal representative.
Schedule IN-UBI
If you have multiple lines of business, please complete Schedule IN-
UBI before completing the lines below and follow the instructions on
Mailing Options
that schedule. Attach a copy of Schedule IN-UBI with your IT-20NP. Please mail completed returns to:
Indiana Department of Revenue
P.O. Box 7228
Certification of Signatures and Indianapolis, IN 46207-7228
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 Instructions for Indiana Apportionment
return with the preparer by checking the authorization box above
of Adjusted Gross Income
the line for the name of the personal representative.
Use of Apportionment Schedule E
Personal Representative Information If an organization has unrelated business (adjusted gross) income
Typically, DOR contacts the entity if there are any questions from both within and outside Indiana, the organization must
or concerns about the tax return. If DOR can discuss the tax apportion its income by means of the formula under IC 6-3-2-2.
return with someone else (e.g., the person who prepared it or a
designated person), complete this area. DOR will not accept returns filed for adjusted gross income tax
purposes using the separate accounting method. IT-20 Schedule
First, check the “Yes” box that follows the sentence “I authorize E (or Schedule E-7 for interstate transportation companies) must
the Department to discuss my tax return with my personal be used unless written permission is granted from DOR. The term
representative.” “everywhere” does not include sales of a foreign corporation in a
place outside the United States.
Next, enter:
• The name of the individual designated as the entity’s personal Part I - Apportionment of Adjusted Gross Income
representative; and
• The individual’s email address. Sales/Receipts. The sales factor is a fraction. The numerator
is the total receipts of the taxpayer in Indiana during the tax
If this area is completed, DOR is authorized to contact the year. The denominator is the total receipts of the taxpayer in
personal representative, instead of the entity, about this tax return. all jurisdictions during the tax year. Only include receipts that
After the return is filed, DOR will communicate primarily with resulted from unrelated business income.
the designated personal representative.
In the case of certain receipts, all or a portion of the receipts are
Note. The authorization for DOR to be in contact with the personal not included.
representative can be revoked at any time. To do so, submit a signed
Page 12 IT-20NP Nonprofit Booklet 2022
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• For receipts includible under IRC section 965 or GILTI (IRC • Receipts from investments are attributed to Indiana if the
Section 951A), the amount included as a receipt is the amount taxpayer’s commercial domicile is in Indiana.
included in adjusted gross income minus any amount claimed
as a foreign source dividend under IC 6-3-2-12. • Gross receipts from the performance of certain communications
• For receipts from the sale of securities, including stocks, and broadcast services are attributed to Indiana if the income-
bonds, options, and future and forward contracts, only the producing activity is in Indiana. If such activities are conducted
net gain from the sale is treated as a receipt. partly within and partly outside Indiana, the gross receipts
• For receipts from hedging or similar transactions, only the net from the services are attributable to Indiana if the direct costs
gain resulting from both sets of transactions is treated as a receipt. incurred in Indiana related to those receipts are greater than the
direct costs incurred in any other state, unless the activities are
The numerator of the receipts factor must include the following to otherwise directly attributed to Indiana according to IC 6-3-2-
the extent included in the receipts denominator: 2.2 or IC 6-3-2-2(f).
• All sales made in Indiana;
• All sales made from Indiana to the U.S. government; • Receipts from other services and other intangibles are
• All receipts from sales of business property in Indiana; and attributed to Indiana if the benefit of the service or intangible
• All interest, dividend, or other intangible income earned in is received in Indiana. Please see Multistate Tax Commission
Indiana. regulations for further information on whether the receipts
from a particular transaction are attributed to Indiana.
The numerator contains intangible income attributed to Indiana,
including interest from consumer and commercial loans, Sales to the United States Government. The United States
installment sales contracts, and credit and debit cards as government is the purchaser when it makes direct payment to
prescribed under IC 6-3-2-2.2. the seller. A sale to the United States government of tangible
personal property is in Indiana if it is shipped from an office, a
Total receipts include gross sales of real and tangible personal store, a warehouse, or another place of storage in Indiana. See the
property less returns and allowances. Sales of tangible personal previous rules for sales other than tangible personal property if
property are in Indiana if the property is delivered or shipped to such sales are made to the United States government.
a purchaser within Indiana regardless of the f.o.b. point or other
conditions of sale. Indiana no longer requires the inclusion of Other Gross Receipts. On line 6, report other gross business
“throwback” sales in the numerator of the receipts factor. receipts not included elsewhere and pro rata gross receipts from
all unitary partnerships, excluding from the factors the portion of
Sales or receipts not specifically assigned above shall be assigned distributive share income derived from a non-unitary partnership
as follows: [45 IAC 3.1-1-153(b)]. Only include receipts that resulted from
• Gross receipts from the sale, rental, or lease of real property unrelated business income.
are in Indiana if the real property is located in Indiana;
On line 7, report direct premiums and annuity considerations
• Gross receipts from the rental, lease, or licensing of the use received during the taxable year for insurance upon property
of tangible personal property are in Indiana if the property is or risks in Indiana. The terms direct premiums and annuity
in Indiana. If property was both within and outside Indiana considerations mean the gross premiums received from direct
during the tax year, the gross receipts are considered in business as reported in the corporation’s annual statement filed
Indiana to the extent the property was used in Indiana; with the Department of Insurance.
• Interest income and other receipts from loans or installment Total Receipts. Complete all lines as indicated. Add all the receipts
sales contracts that are primarily secured by or deal with real in Column A (lines 1A through 7A), and enter the total on line 8A.
or tangible personal property are attributed to Indiana if the In addition, enter the total receipts from everywhere on line 8B.
security or sale property is located in Indiana; consumer loans
not secured by real or tangible personal property are attributed Apportionment of Income for Indiana
to Indiana if the loan is made to an Indiana resident; and Divide line 8A by line 8B. Multiply by 100 to arrive at a percentage
commercial loans and installment obligations not secured by rounded to the nearest second decimal place. This is the Indiana
real or tangible personal property are attributed to Indiana if apportionment percentage; carry it to the apportionment entry
the proceeds of the loan are applied in Indiana. line on the return, line 10 on Form IT-20NP.
• Interest income, merchant discounts, travel and entertainment DOR will not accept returns filed for AGI tax purposes using
credit card receivables, and credit card holder’s fees are attributed the separate accounting method. Form IT-20NP, Schedule E
to the state where the card charges and fees are regularly billed. or Schedule E-7 must be used unless DOR has granted written
permission. The term everywhere does not include sales of a
• Receipts from the performance of fiduciary and other services foreign corporation in a place outside the United States. Refer to
are attributed to the state where the benefits of the services 45 IAC 3.1-1-153 for tax treatment of unitary corporate partners.
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.
IT-20NP Nonprofit Booklet 2022 Page 13
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Important Note. Do not include Schedule E reflecting 0 receipts Six credits are included in this group:
in the denominator unless you are apportioning 100% of taxable • Alternative fuel vehicle manufacturer credit;
income to Indiana. Failure to complete Schedule E or check the • Community revitalization enhancement district credit;
appropriate box if using another apportionment method may result • Enterprise zone investment cost credit;
in DOR computing tax due based on 100% of your taxable income. • Hoosier business investment credit;
• Industrial recovery credit; and
Use of any apportionment method other than Schedule E or • Venture capital investment credit.
Schedule E-7 requires prior permission from DOR. If permitted
to use an alternative method, you must attach a supporting Apply this restriction first when figuring credits.
schedule to compute apportioned business income.
Alternative Fuel Vehicle Manufacturer Credit 845
Part II - Business/Other Income Questionnaire This credit has been repealed. However, any previously approved
Complete all applicable questions in this section. If income is yet unused credit is available to be claimed.
apportioned, enclose the completed Schedule E or Schedule E-7
with Form IT-20NP. 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.
Other Credits Available to Nonprofit
College and University Contribution Credit 807
Organizations A corporate taxpayer might be eligible for a credit if it made any
charitable contributions to a college, university, or corporation
The following credits cannot be refunded; their purpose is to or foundation organized for the benefit of a post-secondary
help reduce your state tax due. See Income Tax Information educational institution located within Indiana. Complete and
Bulletin #59 at www.in.gov/dor/files/reference/ib59.pdf for more enclose College Credit Schedule CC-40 with the return, otherwise
information about the credits. the credit will be denied.
Order of Credit Application See Income Tax Information Bulletin #14 at www.in.gov/dor/
If claiming more than one credit, first use the credits that cannot files/reference/ib14.pdf for eligibility requirements. For more
be carried over and applied against the state AGI tax in another information, visit www.in.gov/dor/.
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 Community Revitalization Enhancement District
more credits are available, apply the credits in the order that the Credit 808
credits would expire. Finally, use the credits that can be carried A state and local income tax liability credit is available for a
over and applied against the state AGI tax in another year. qualified investment for the redevelopment or rehabilitation of
property within a community revitalization enhancement district.
Example. A taxpayer has a neighborhood assistance credit for
which no carryover is available, a school scholarship credit that To be eligible for the credit, the intended expenditure plan must
can be carried forward to 2023, and a community revitalization be approved by the IEDC before the expenditure is made. The
enhancement district credit with an indefinite carryforward. The credit is equal to 25% of the IEDC-approved qualified investment
taxpayer would apply the credits in the following order until the made by the taxpayer during the tax year. DOR has the authority
credit is exhausted or the taxpayer’s liability is reduced to zero, to disallow any credit if the taxpayer:
whichever comes first: • Ceases existing operations;
• Neighborhood assistance credit • Substantially reduces its operations within the district or
• School scholarship credit expiring in 2023 elsewhere in Indiana; or
• Community revitalization enhancement district credit • Reduces other Indiana operations to relocate them into the
district.
For more information about Indiana tax credits, get Income Tax
Information Bulletin #59 at www.in.gov/dor/files/reference/ib59.pdf. The taxpayer can assign the credit to a lessee who remains subject
to the same requirements. The assignment must be in writing.
Restriction for Certain Tax Credits – Limited to Also, any consideration may not exceed the value of the part of
One per Project the credit assigned. Both parties must report the assignment on
Within a certain group of credits, a taxpayer may not be granted state income tax returns for the year of assignment.
more than one credit for the same project. The taxpayer can
choose the credit to be applied but is not permitted to change the Contact the Indiana Economic Development Corporation at One
credit selected or redirect the investment for a different credit in North Capitol, Suite 700, Indianapolis, IN 46204, or visit the IEDC
subsequent years. Refer to Income Tax Information Bulletin #59 website at www.iedc.in.gov for more information about this credit.
at www.in.gov/dor/files/reference/ib59.pdf for more information.
Enclose the certification from the IEDC, otherwise the credit will
be denied.
Page 14 IT-20NP Nonprofit Booklet 2022
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Note. Schedule LIC must be enclosed if claiming this credit; it is
available at www.in.gov/dor/tax-forms/enterprise-zone-forms/.
About Enterprise Zone Tax Credits
Certain areas within Indiana have been designated as enterprise Contact the Indiana Economic Development Corporation at 1 N.
zones. Enterprise zones are established to encourage investment Capitol Ave., Suite 700, Indianapolis, IN 46204; call them at (317)
and job growth in distressed urban areas. 232-8800; or visit the website at www.iedc.in.gov for additional
information.
Enterprise zone maps are available at www.in.gov/dor/business-
tax/enterprise-zone-maps/. Enclose Schedule LIC with the return, otherwise the credit will be
denied.
For more information, get Income Tax Information Bulletin
#66 at www.in.gov/dor/files/reference/ib66.pdf. The Indiana Ethanol Production Credit 815
Economic Development Corporation at 1 N. Capitol Ave. can be This credit has been repealed. However, any previously approved
contacted at (317) 232-8800, via website at www.iedc.in.gov, or in yet unused credit is available to be claimed.
person at Suite 700, Indianapolis, IN 46204.
Film and Media Production Tax Credit 869
Economic Development for a Growing Economy - Effective July 1, 2022, a credit is available for expenses incurred
Nonresident Employees (EDGE-NR) 865 for qualified film and media production expenses. The amount
This credit is for incremental state income tax amounts that would of the taxpayer’s credit is equal to the taxpayer’s qualified film
have been withheld on employees from reciprocal states if those and media production expenses multiplied by a percentage
employees had been subject to Indiana state tax withholding. determined by the Indiana Economic Development Corporation,
Owners of pass-through entities such as S corporations, but not more than 30% of the expenses.
partnerships, limited liability companies, etc., are eligible for this
credit. Unlike the EDGE and EDGE-R credits, the EDGE-NR Note. Certification for this credit must be obtained from the
credit is a non-refundable credit. Indiana Economic Development Corporation. See iedc.in.gov/
indiana-advantages/investments/film-and-media-tax-credit for
This credit is administered by the IEDC. Contact them at One further information.
North Capitol, Suite 700, Indianapolis, IN 46204, via website at
www.iedc.in.gov, or by phone at (317) 232-8800. This credit must be reported on Schedule IN-OCC, found at www.
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-
The approved credit must be reported on Schedule IN-OCC, forms/. Make sure to enclose this schedule with your tax filing.
found at www.in.gov/dor/tax-forms/2022-individual-income-tax-
forms/. Make sure to enclose this schedule with your tax filing. If Enclose the certification letter from the IEDC with the return,
you are claiming this credit as an owner of a pass-through entity otherwise the credit will be denied.
such as S corporations, partnerships, limited liability companies,
etc., make sure to keep Schedule IN K-1 with your records as Foster Care Donations Credit 867
DOR can require you to provide this information. Effective starting in taxable year 2022, a credit for donations
to qualifying foster care organizations is available. The credit
Enterprise Zone Employment Expense Credit 812 is 50% of the donation made to qualifying organizations, up to
This credit is based on qualified investments made within an a maximum of $10,000 per taxable year. In addition, no more
Indiana enterprise zone. It is the lesser of 10% of qualifying wages than $2,000,000 in credits can be awarded during a state fiscal
or $1,500 per qualified employee, up to the amount of tax liability year. See www.in.gov/dor/tax-forms/foster-care-credit-donation-
on income derived from an enterprise zone. information/ for further information regarding the application
and approval process.
For more information on how to calculate this credit, get Indiana
Schedule EZ Parts 1, 2, and 3 online at www.in.gov/dor/tax- This credit must be reported on Schedule IN-OCC, found at www.
forms/enterprise-zone-forms/. in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-
forms/. Make sure to enclose this schedule with your tax filing.
Enclose Schedule EZ 2 with the return, otherwise the credit will
be denied. Enclose the approval letter from the Department of Revenue 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 Headquarters Relocation Credit 818
qualified loans made during a tax year for use in an Indiana A business may be eligible for a credit if it meets one of two sets
enterprise zone. However, this credit cannot be claimed for loans of criteria. The first set of criteria (“first test”) is that the business
made after December 31, 2017. meets all of the following:
• Has an annual worldwide revenue of $50 million;
Get Income Tax Information Bulletin #66 at www.in.gov/dor/files/ • Has at least 75 Indiana employees (for credits awarded before
reference/ib66.pdf for more information on how to calculate this July 1, 2022); and
credit. • Relocates its corporate headquarters to Indiana.
IT-20NP Nonprofit Booklet 2022 Page 15
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The second set of criteria (“second test”) is that the business meets • Purchasing new onsite digital manufacturing equipment.
either (1) or (2), meets (3), and meets (4) or (5):
1. Received at least $4 million in venture capital in the six This credit is administered by the IEDC. Contact them at One
months immediately preceding the business’s application for North Capitol, Suite 700, Indianapolis, IN 46204. Visit the IEDC’s
this tax credit. website at www.iedc.in.gov or call (317) 232-8800. See Income
2. Closes on at least $4,000,000 in venture capital not more than Tax Information Bulletin #95 at www.in.gov/dor/files/reference/
six months after submitting the business’s application for this ib95.pdf for additional information. Submit a certificate from the
tax credit. IEDC verifying the amount of the tax credit for the taxable year to
3. Has at least 10 Indiana employees (for credits awarded before the Department of Revenue.
July 1, 2022).
4. Relocates its corporate headquarters to Indiana. Note. See the section “Restriction for Certain Tax Credits -
5. Relocates the number of jobs equal to 80% of the business’s Limited to One per Project” beginning on page 14.
total payroll during the immediately preceding quarter to an
Indiana location. Enclose certification from the IEDC with the return, otherwise
the credit will be denied.
The credit may be as much as 50% of the cost incurred in
relocating the taxpayer’s headquarters. For more information Indiana Comprehensive Health Insurance
(including limitations on the credit and the application process), Association (ICHIA) 821
see Income Tax Information Bulletin #97, available at www. IC 27-8-10-2.4 provides that for each tax year beginning after
in.gov/dor/files/reference/ib97.pdf. Dec. 31, 2006, an insurance company can annually claim a credit
against AGI tax and premiums tax. This credit is equal to 10% of
Beginning with the 2022 tax year, this credit must be reported on the amount of the assessments paid before Jan. 1, 2005, against
Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2022- which a tax credit has not been taken before Jan. 1, 2005.
corporatepartnership-income-tax-forms/. Make sure to enclose
this schedule with your tax filing. To claim this credit, provide a signed copy of the completed State
of Indiana Assessment Tax Credit Form to show the amount of
This credit is administered by the IEDC. You may contact them at paid assessments against which a tax credit has not been taken as
One North Capitol, Suite 700, Indianapolis, IN 46204, via website of Dec. 31, 2004, which was filed with the ICHIA. If the maximum
at www.iedc.in.gov, or by phone at (317) 232-8800. amount of credit exceeds the tax liability for the year, the unused
portion of the credit year can be carried forward.
Submit a copy of the certificate from the Indiana Economic
Development Corporation verifying the amount of tax credit for the Indiana Insurance Guaranty Association
taxable year with the return. Otherwise, the credit will be denied. Credit 817
An insurance company might be eligible to claim a tax credit of
Important. If the IEDC has granted a refundable credit under up to 20% of an assessment paid to either the Indiana Insurance
the second test, see the instructions on page 11 for completing Guaranty Association or the Indiana Life and Health Insurance
Form IT-20NP, Line 23. Guaranty Association (see IC 27-6-8-15 and IC 27-8-8-16).
Historic Building Rehabilitation Credit 819 Enclose a supporting assessment and credit documentation with
This credit has been repealed. However, any previously approved the return, otherwise the credit will be denied.
yet unused credit is available to be claimed.
Indiana Research Expense Credit 822
Hoosier Business Investment Credit 820 Indiana has a research expense credit similar to the federal credit
This credit is for qualified investments, including costs associated (Form 6765) for increasing research activities for qualifying expenses
with the following: paid in carrying on a trade or business in Indiana. Compute the
• Constructing special-purpose buildings and foundations; credit using Schedule IT-20REC, which is available online at www.
• Making onsite infrastructure improvements; in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-
• Modernizing existing equipment; forms/. Enclose Schedule IT-20REC with the return, otherwise the
• Purchasing equipment used to make motion pictures or credit will be denied. Filers claiming the research expense credit
audio production; should keep documentation supporting the credit in a usable form.
• Purchasing or constructing new equipment directly related to
expanding the workforce in Indiana; Individual Development Account Credit 823
• Retooling existing machinery and equipment; A credit is available for qualified contributions made to a
• Constructing or modernizing transportation or logistical community development corporation participating in an
distribution facilities; Individual Development Account (IDA) program. The IDA
• Improving the transportation of goods via highway, rail, air, program is designed to assist qualifying low-income residents
or water; and in accumulating savings and building personal finance skills.
• Improving warehousing and logistical capabilities. The organization must have an approved program number from
• Purchasing new pollution control, energy conservation, or the Indiana Housing and Community Development Authority
renewable energy generation equipment; and (IHCDA) before a contribution qualifies for preapproval. The
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credit is equal to 50% of the qualified contribution, which must The carryforward portion of the previously approved credit must
not be less than $100 and not more than $50,000. be reported on Schedule IN-OCC, found at www.in.gov/dor/tax-
forms/2022-corporatepartnership-income-tax-forms/. Make sure
Applications for the credit are filed through the IHCDA. To to enclose this schedule with your tax filing. For more information
request additional information about the definitions, procedures, about this credit, see Income Tax Information Bulletin #109
and qualifications for obtaining this credit, contact the Indiana available online at www.in.gov/dor/files/reference/ib109.pdf.
Housing and Community Development Authority, 30 S. Meridian
Street, Suite 1000, Indianapolis, IN 46204, (317) 232-7777. Neighborhood Assistance Credit 828
If the taxpayer made a contribution or engaged in activities to
Industrial Recovery Credit 824 upgrade areas in Indiana, a credit can be claimed for this assistance.
This credit is based on a taxpayer’s qualified investment in Effective July 1, 2014, contributions to organizations that provide
a vacant industrial facility located in a designated industrial services to individuals who are ex-offenders are also eligible for
recovery site. If the Indiana Economic Development Corporation this credit. For more information, contact the Indiana Housing and
approves the application and the plan for rehabilitation, you Community Development Authority, Neighborhood Assistance
are entitled to a credit based on the “qualified investment.” The Program, 30 S. Meridian Street, Suite 1000, or call (317) 232-7777
minimum age for a facility to be eligible for this credit has been within Indianapolis or (800) 872-0371 outside of Indianapolis.
reduced from 20 years to 15 years. This credit is available to pass-
through entities such as S corporations, partnerships, limited Enclose an approved Form NC-20, otherwise the credit will be
liability companies, etc. denied.
Note. Effective July 1, 2019, except for in situations described New Employer Credit 850
in the next sentence, a taxpayer is entitled to receive this credit This credit has been repealed. However, any previously approved
only for a qualified investment made before January 1, 2020. A yet unused credit is available to be claimed.
taxpayer is entitled to receive a credit for a qualified investment
made after December 31, 2019, and before January 1, 2030, if the Redevelopment Tax Credit 863
taxpayer is awarded a credit under: You may be eligible for a credit if you make a qualified investment
• an application approved by the Indiana Economic for the redevelopment or rehabilitation of real property located
Development Corporation (IEDC) before January 1, 2020; or within a qualified redevelopment site.
• an agreement entered into by the taxpayer and IEDC before
January 1, 2021. This credit is administered by the Indiana Economic Development
Corporation (IEDC), One North Capitol, Suite 700, Indianapolis,
Important. Any unused credit existing before Jan. 01, 2020, is still IN, 46204. Visit the IEDC website at www.iedc.in.gov or call (317)
eligible for carryforward for an unlimited number of years. 232- 8800 for additional information.
For additional information regarding procedures for obtaining this The approved credit must be reported on Schedule IN-OCC, found
credit, contact the Indiana Economic Development Corporation, at www.in.gov/dor/tax-forms/2022-corporatepartnership-income-
One North Capitol, Suite 700, Indianapolis, IN 46204, call (317) tax-forms/. Make sure to enclose this schedule with your tax filing.
232-8800, or visit their website at www.iedc.in.gov.
School Scholarship Credit 849
Note. See the section “Restriction for Certain Tax Credits - A credit is available for contributions to school scholarship
Limited to One per Project” beginning on page 14. programs. A taxpayer that makes a qualifying contribution to a
scholarship granting organization (SGO) is entitled to a credit
Enclose an approval certification from the IEDC or a letter of against the taxpayer’s state tax liability in the taxable year in which
assignment with the return, otherwise the credit will be denied. the contribution is made. The amount of a taxpayer’s credit is
equal to 50% of the amount of the contribution made to the SGO
Military Base Investment Cost Credit 826 for a school scholarship program. In some cases, the department
This credit has been repealed. However, any previously approved may round the credit down to the nearest dollar if the department
yet unused credit is available to be claimed. receives information that the credit should be the amount as
rounded down. In some cases, the department may round the
Military Base Recovery Credit 827 credit down to the nearest dollar if the department receives
This credit has been repealed. However, any previously approved information that the credit should be the amount as rounded
yet unused credit is available to be claimed. down. Effective Jan. 1, 2013, this credit can now be carried
forward for nine years after the unused credit year.
Natural Gas Commercial Vehicle Credit 858
This credit has sunset. However, any previously approved yet Note. Credits that apply to taxable years beginning before Jan. 1,
unused credit is available to be claimed. 2013, may not be carried forward.
This carryforward credit is available to pass-through entities, such To qualify for the credit, the taxpayer must:
as members of partnerships and S corporations. • Make a contribution to a scholarship granting organization that
is certified by the Department of Education under IC 20-51;
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• Make the contribution directly to the SGO;
• Designate in writing to the SGO that the contribution is to be
Other Related Income Tax Filing
used solely for a school scholarship program or have written
confirmation from the SGO that the contribution will be used Requirements of a Nonprofit
solely for a school scholarship program. Organization
Although there are no limits on the size of a qualifying Utility Receipts Tax Form URT-1
contribution to an SGO, the entire tax credit program has a limit IC 6-2.3-2-1 imposed a utility receipts tax on the gross receipts
of $18.5 million in credits per state fiscal year of July 1, 2022 from the retail sale of utility services. For gross receipts received
through June 30, 2023. after June 30, 2022, the utility receipts tax no longer applies. The
utility services subject to tax include electrical energy, natural gas,
Venture Capital Investment Credit 835 water, steam, sewage, and telecommunications.
A taxpayer who provides qualified investment capital to a
qualified Indiana business may be eligible for this credit. Per IC Gross receipts are defined as the value received for the retail sale of
6-3.1-24-8, for calendar years beginning after Dec. 31, 2010, the utility services. If a taxpayer has more than $1,000 in gross receipts
maximum credit available to a qualified business is $1 million. from the sale of utility services, Form URT-1 (Utility Receipts Tax
The carryforward provision is limited to five years. Return) might be required in addition to the annual Form IT-20 and
IT-20NP. For more information, refer to General Tax Information
Note. Certification for this credit must be obtained from the Bulletin #201 at www.in.gov/dor/files/reference/gb201.pdf.
Indiana Economic Development Corporation, Development
Finance Office, VCI Credit Program, One North Capitol, Suite The URT-1 return is due on the 15th day of the 4th month
700, Indianapolis, IN 46204. Apply online through the IEDC’s following the close of the taxpayer’s tax year.
website at www.iedc.in.gov, or call (317) 232-8800 for more
information. Utility Services Use Tax Form USU-103
The organization might be subject to an excise tax on the
This credit must be reported on Schedule IN-OCC, found at www. consumption of utility services if the organization purchased
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax- utility services from outside Indiana and became the end user
forms/. Make sure to enclose this schedule with your tax filing. in Indiana. Utility services use tax (USUT) is due if the utility
If you are claiming this credit as an owner of pass-through entity receipts tax is not payable by the seller. The person who consumes
such as S corporation, partnership, limited liability company, etc., the utility service in Indiana is liable for the USUT tax based on
make sure to keep Schedule IN K-1 with your records as DOR can the price of the purchase. Unless the seller of the utility service
require you to provide this information. is registered with DOR to collect the USUT on the organization’s
behalf, pay the tax on Form USU-103. For more information,
Venture Capital Investment Credit – Qualified refer to General Tax Information Bulletin #202 at www.in.gov/
Indiana Investment Fund 868 dor/files/reference/gb202.pdf.
A taxpayer who provides qualified investment capital (either debt
or equity capital) to a qualified Indiana investment fund may be The USU-103 return is due monthly by the 30th day following the
eligible for this credit. end of each month. USUT is not due for billings issued after June
30, 2022.
Note. Certification for this credit must be obtained from the
Indiana Economic Development Corporation, Development Voluntary Disclosure Program
Finance Office, VCI Credit Program, One North Capitol, Suite A taxpayer may have an unmet filing requirement with Indiana.
700, Indianapolis, IN 46204. To learn more about DOR’s Voluntary Disclosure Program,
contact DOR at: Voluntary Disclosure Program-MS#104,
This credit must be reported on Schedule IN-OCC, found at www. Indiana Department of Revenue, 100 N. Senate Ave., IGCN #241,
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax- Indianapolis, IN 46204.
forms/. Make sure to enclose this schedule with your tax filing.
Application for Nonprofit Status and Registration
Apply online through the IEDC’s website at www.iedc.in.gov or Contact the Internal Revenue Service for federal requirements to
call (317) 232-8800 for more information. obtain nonprofit status. The IRS publishes an information booklet
titled “Tax Exempt Status for Your Organization,” Publication 557.
Enclose the certification letter from the IEDC with the return,
otherwise the credit will be denied. This credit may not be Contact:
claimed before July 1, 2023. Internal Revenue Service: (877) 829-5500
Publications: https://apps.irs.gov/app/picklist/list/
formsPublications.html
www.irs.gov
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To register for nonprofit status with the state, submit a Nonprofit
Organization Application for Sales Tax Exemption (NP-20A).
Contact:
Indiana Department of Revenue
P.O. Box 1261
Indianapolis, IN 46207-1261
(317) 232-2240
After nonprofit status is granted, file the Indiana Nonprofit
Organization’s Annual Report NP-20R every five years to
maintain state recognition of the sales tax exemption. If the
organization has unrelated business income over $1,000 during
the tax year, it must also file Form IT-20NP with DOR. For
more about nonprofit filing requirements, refer to Income Tax
Information Bulletin #17 at www.in.gov/dor/files/reference/ib17.
pdf.
The Indiana Nonprofit Organization’s Report is due May 15 of
the fifth year after formation and every fifth year thereafter (see
IC 6-2.5-5-25(d) for special rules regarding organizations formed
before 2022). The income tax return is due on the 15th day of
the fifth month following the close of the organization’s tax year
unless another date is specifically provided in this booklet.
Charity Gaming Activities
For information about charity gaming activities, please contact:
Indiana Gaming Commission
101 W. Washington Street East Tower, Suite 1600
Indianapolis, IN 46204
(317) 23-BINGO ((317) 232-4646)
Web address: www.in.gov/igc/
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