SB 212

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    SENATE ENROLLED ACT No. 212
    AN ACT to amend the Indiana Code concerning taxation.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 6-3-1-11, AS AMENDED BY P.L.194-2023,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) Except as
provided in subsection (e), the term "Internal Revenue Code" means
the Internal Revenue Code of 1986 of the United States as amended
and in effect on January 1, 2023.
    (b) Whenever the Internal Revenue Code is mentioned in this
article, or in another provision of the Indiana Code that cites the
definition of "Internal Revenue Code" provided in this section, the
particular provisions that are referred to, together with all the other
provisions of the Internal Revenue Code in effect on January 1, 2023,
that pertain to the provisions specifically mentioned, shall be regarded
as incorporated in this article by reference and have the same force and
effect as though fully set forth in this article. To the extent that a
federal statute in the United States Code is enacted or amended in a
title other than the Internal Revenue Code on or before January 1,
2023, and affects federal adjusted gross income, federal taxable
income, federal tax credits, or other federal tax attributes, the federal
statute shall be considered to be part of the Internal Revenue Code as
amended and in effect on January 1, 2023. To the extent:
      (1) the provisions of the Internal Revenue Code apply to this
      article, regulations adopted under Section 7805(a) of the Internal
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      Revenue Code, and in effect on January 1, 2023; and
      (2) a federal statute in the United States Code that is enacted or
      amended in a title other than the Internal Revenue Code on or
      before January 1, 2023, and affects federal adjusted gross income,
      federal taxable income, federal tax credits, or other federal tax
      attributes applies to this article, regulations adopted under the
      federal statute of the United States Code and in effect on January
      1, 2023;
shall be regarded as rules adopted by the department under this article,
unless the department adopts specific rules that supersede the
regulation.
    (c) An amendment to the Internal Revenue Code made by an act
passed by Congress before January 1, 2023, other than the federal 21st
Century Cures Act (P.L. 114-255) and the federal Disaster Tax Relief
and Airport and Airway Extension Act of 2017 (P.L. 115-63), that is
effective for any taxable year that began before January 1, 2023, and
that affects:
      (1) individual adjusted gross income (as defined in Section 62 of
      the Internal Revenue Code);
      (2) corporate taxable income (as defined in Section 63 of the
      Internal Revenue Code);
      (3) trust and estate taxable income (as defined in Section 641(b)
      of the Internal Revenue Code);
      (4) life insurance company taxable income (as defined in Section
      801(b) of the Internal Revenue Code);
      (5) mutual insurance company taxable income (as defined in
      Section 821(b) of the Internal Revenue Code); or
      (6) taxable income (as defined in Section 832 of the Internal
      Revenue Code);
is also effective for that same taxable year for purposes of determining
adjusted gross income under section 3.5 of this chapter and
IC 6-5.5-1-2.
    (d) This subsection applies to a taxable year ending before January
1, 2013. The following provisions of the Internal Revenue Code that
were amended by the Tax Relief Act, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are
treated as though they were not amended by the Tax Relief Act,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010 (P.L. 111-312):
      (1) Section 1367(a)(2) of the Internal Revenue Code pertaining to
      an adjustment of basis of the stock of shareholders.
      (2) Section 871(k)(1)(C) and 871(k)(2)(C) of the Internal
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      Revenue Code pertaining the treatment of certain dividends of
      regulated investment companies.
      (3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code
      pertaining to regulated investment companies qualified entity
      treatment.
      (4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code
      pertaining to the modification of tax treatment of certain
      payments to controlling exempt organizations.
      (5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code
      pertaining to the limitations on percentage depletion in the case
      of oil and gas wells.
      (6) Section 451(i)(3) of the Internal Revenue Code pertaining to
      special rule for sales or dispositions to implement Federal Energy
      Regulatory Commission or state electric restructuring policy for
      qualified electric utilities.
      (7) Section 954(c)(6) of the Internal Revenue Code pertaining to
      the look-through treatment of payments between related
      controlled foreign corporation under foreign personal holding
      company rules.
The department shall develop forms and adopt any necessary rules
under IC 4-22-2 to implement this subsection.
    (e) Solely for purposes of the provisions specified in subsection
(f), the term "Internal Revenue Code" shall mean the Internal
Revenue Code as in effect on July 4, 2025, and any reference to
January 1, 2023, in this section shall be applied as if the reference
is to July 4, 2025.
    (f) The provisions to which subsection (e) is to be applied are as
follows:
      (1) Section 23 of the Internal Revenue Code.
      (2) Section 168(e)(3)(B)(vi) of the Internal Revenue Code.
      (3) Section 223(c)(2)(E) of the Internal Revenue Code.
    SECTION 2. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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