DOR: Credits

DOR: Credits
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Credits
All available Indiana tax credits are listed below, including a brief description of forms and schedules to use and who is eligible.
Learn more about credits by clicking on the credit name below.
Find current year tax forms
Individual Tax Credits
Adoption Credit
Details
You may be eligible for this credit if you claimed a federal adoption credit for a qualifying child. The credit is 20% of the federal credit, up to a maximum Indiana credit of $2,500 per child. If the credit exceeds your state tax liability for a taxable year, the excess is refundable to you.
Who is eligible?
Individuals who have a federal adoption credit for a taxable year.
Forms
Schedule 5
Schedule F
ABLE 529A Account Credit
Details
You may be eligible for this credit if you made a contribution(s) to Indiana’s ABLE 529A savings plan. The credit is 20% of the amount of the total contributions made during the taxable year, or $500, whichever is less. If you made a non-qualified withdrawal(s) from this plan, you will have to repay some or all of any credits previously claimed.
Who is eligible?
Individuals who make contributions to the InvestABLE Indiana plan.
Forms
Schedule IN-ABLE
Schedule 6
Schedule G
Credit for Taxes Paid to Other States
Details
Indiana residents must report all income for federal income tax purposes on their Indiana Individual Income tax return, including income from sources outside of Indiana.
When this happens, individuals may be subject to Individual Income tax by their state of residence and the state where the income originates. Tax treatment of out-of-state income depends on the types of income and the state from which the income is derived.
Indiana allows credits for Individual Income tax paid to most other states. This includes taxes paid to foreign countries and subdivisions of foreign countries.
Other taxes such as property taxes, Corporate Income taxes, and unincorporated business taxes are not allowed as a basis for claiming such credits. In addition, Indiana does not permit credits for local income taxes imposed in other states to be applied against Indiana state income taxes.
Furthermore, Indiana residents with income derived from Arizona and Oregon are not eligible to claim this credit for taxes paid on income derived from those states. Indiana residents with income from Washington, DC, may only claim this credit for the DC unincorporated business tax imposed directly on the individual.
For residents of Arizona, Oregon, and Washington, DC, the credit is available from Indiana for income taxes imposed by the state of residency on income subject to tax both in Indiana and the state of residency.
Who is eligible?
Certain individuals who receive income from other states.
Forms
Schedule 6
Schedule G
IT-40 booklet/IT-40PNR
Worksheets
Federal
Form 1116
Credit for Tax Paid to Localities in Other States
Details
Indiana residents must report all income for federal income tax purposes on their Indiana Individual Income tax return, including income from sources outside of Indiana.
When this happens, individuals may be subject to local income tax in their state of residence and in the locality where the income originates.
Indiana allows credits against Indiana local income tax for non-Indiana local income tax paid on income subject to local income tax in another state. Other taxes such as property taxes, Corporate Income taxes, and unincorporated business taxes are not allowed as a basis for claiming such credits. In addition, Indiana does not permit credits for state income taxes imposed in other states to be applied against Indiana local income taxes.
Who is eligible?
Certain individuals who receive income from other states.
Forms
Schedule 6
Schedule G
Indiana 529 Education Savings Plan Credit
Details
You may be eligible for a credit if you made a contribution(s) to Indiana’s 529 education savings plan. However, if you made a non-qualified withdrawal(s) from this plan, you may have to repay some or all of any credits previously claimed.
Who is eligible?
Individuals who made contributions to an Indiana 529 plan.
Forms
Schedule IN-529
Schedule 6
Schedule G
Indiana’s Earned Income Credit
Details
You may be eligible for Indiana’s earned income credit if you have claimed an earned income credit on your federal tax return. Get Schedule IN-EIC and review the detailed instructions as found in the
IT-40/IT-40PNR
instruction booklets.
Who is eligible?
Individuals may qualify for a state credit if they are eligible for the credit on their federal return.
Forms
Schedule IN-EIC
Schedule 5
Schedule F
Lake County (Indiana) Residential Income Tax Credit
Details
You may be eligible to claim a Lake County (Indiana) Residential Income tax credit if you meet all of the following requirements:
You paid property tax to Lake County (Indiana) on your residence, which is your principal dwelling. You must either own or be buying the residence under contract and must pay property tax to Lake County (Indiana) on that residence.
Your Modified Indiana Adjusted Gross Income is less than $18,600.
You are not claiming the Homeowner’s Residential Property Tax Deduction.
Who is eligible?
Individuals who paid property taxes in Lake County Indiana with an Indiana adjusted gross income less than $18,600 who does not claim a residential property tax deduction.
Forms
Complete Worksheets A & B in
IT-40 Booklet
or
IT-40PNR Booklet
Schedule 5
Schedule F
Physician Practice Ownership Credit
Details
Physician-owned medical practices
must apply with DOR
in order to file for this credit for its owners after June 30 of a calendar year but not later than June 30 of the subsequent calendar year.
Learn more about the annual limit
and qualifications in
Income Tax Information Bulletin #123
Who is eligible?
Physicians must be in the practice of medicine and provide health care service to patients for at least six months of a given calendar year.
Have an ownership interest in a corporation, limited liability company, partnership, or other legal entity organized to provide primary health care services as a physician owned entity.
May not be employed by a health care system (as defined in IC 16-18-21-68.5).
For credits first available for 2025 and later, the practice must apply for the credit on behalf of its owners.
Forms
Schedule IN-OCC
Schedule IN-PPOTC
Public School Educator Expense Credit
Details
If you are an eligible educator working for an Indiana school corporation, you may be entitled to a credit for qualified expenses paid for certain classroom supplies. The credit can be as much as $100 ($200 if married filing jointly and both spouses meet the requirements, but not more than $100 each).
You are an eligible educator if, during the taxable year, you are employed in a Kindergarten–12 Indiana public school as a:
Teacher
Librarian
Counselor
Principal
Superintendent
Who is eligible?
Eligible educators working for an Indiana school corporation who may be entitled to qualified expenses for classroom supplies.
Forms
Schedule 6
Schedule G
Residential Historic Rehabilitation Credit
Details
A credit is available for the repair and rehabilitation of residential property that is listed on the Indiana Register of Historic Sites and Structures, is at least 50 years old, and will be used as your primary residence. All work must meet the Secretary of the Interior’s Standards for Rehabilitation of Historic Properties.
Who is eligible?
Individuals who repair or rehabilitate a residential property listed on the Indiana Register of Historic Sites and Structures, is at least 50 years old, and is your primary residence.
Forms
Schedule 6
Schedule G
Unified Tax Credit for the Elderly
Details
The credit ranges from $40 to $140, depending on your age, marital status and income, and must be claimed no later than June 30 following the close of the tax year.
Who is eligible?
People who meet these requirements:
You and/or your spouse are age 65 or older by the end of the tax year.
You must file a joint return if you were married and living together at any time during the year.
Your federal adjusted gross income must be less than $10,000.
You must claim the credit within three years of the due date of your return (e.g., for 2023, the credit must be claimed by April 15, 2027).
You must have been a resident of Indiana for six months or more during the tax year.
You must not have been in prison for 180 days or more during the tax year.
Forms
SC-40
Schedule 5
Schedule F
Business Tax Credits
Affordable and Workforce Housing Credit
Details
A credit is available for a portion of the expenditures made by an owner for qualified low-income housing projects in Indiana for taxable years beginning in 2024 and later. The credit is awarded by the Indiana Housing and Community Development Authority (IHCDA). A credit awarded by IHCDA is a five-year credit. For example, a $1 million credit awarded in 2026 will be a $200,000 credit for each year from 2026 to 2030.
Who is eligible?
An owner of a qualified low-income housing project whose application is approved by IHCDA.
Forms
Schedule IN-OCC
Community Revitalization Enhancement District Credit
Details
A state and local income tax liability credit is available for a qualified investment made within a community revitalization enhancement district. The expenditure must be made under a plan adopted by an advisory commission on industrial development and approved by the Indiana Economic Development Corporation before it is made. The credit is equal to 25% of the qualified investment made by the taxpayer during the taxable year.
This credit is available to pass-through entities, such as members of partnerships and S corporations.
The credit is nonrefundable and cannot be carried back. You may carry forward any excess credit to the next tax year.
Who is eligible?
A state
and
local income tax liability credit is available for a qualified investment made within a community revitalization enhancement district.
Forms
Schedule 6
Schedule G
Employer Child Care Expenditure Credit
Details
A credit is available for employers with 100 or fewer employees who incur certain costs for establishing new Indiana licensed childcare facilities for their employees’ children. This credit is not available for employers who were in the business of operating a childcare facility prior to making qualified expenditures allowable for this credit.
The credit is 50% of the employer’s qualified expenditures for Indiana licensed childcare facilities, up to a maximum credit of $100,000. The amount of allowable credits is $2.5 million per state fiscal year and is awarded in the order of returns claiming the credit.
Who is eligible?
Employers with 100 or fewer employees with capital expenses related to establishing childcare facilities for their employees.
Forms
Schedule 6
Schedule G
Employment of Individuals with Disability Tax Credit
Details
A credit is available for employers who employ individuals with a disability who were referred through a vocational rehabilitation services program for individuals with a disability and who were initially hired after Dec. 31, 2023.
For a benefit corporation that employs no more than 50 individuals, and the majority of the employees are eligible individuals, the amount of credit for the first year is 30%, second year is 40%, third and later years is 50%.
For employers who do not meet the definition of a benefit corporation and employ 500 or fewer employees, the amount of credit for the first year is 20%, second year is 30%, third and later years is 40%.
Who is eligible?
A benefit corporation defined in IC 23-1.3-2-3 that did not have more than 50 employees at any time during the taxable year and the credit eligible employee was referred through a vocational rehabilitation services program for individuals with a disability.
An employer that did not have more than 500 employees at any time during the taxable year and the credit-eligible employee was referred through a vocational rehabilitation services program for individuals with a disability.
Forms
Schedule 6
Schedule G
Enterprise Zone Employment Expense Credit
Details
This credit is based on qualified investments made in Indiana and 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 the enterprise zone. This credit has expired. Prior years’ credits are available for carryforward.
Who is eligible?
Businesses in certain designated enterprise zones.
Forms
Schedule EZ
Schedule 6
Schedule G
Film and Media Production Credit
Details
A credit is available for qualified film and media productions. This credit is administered and must be approved by the
Indiana Economic Development Corporation
Who is eligible?
Qualified media productions that incur qualified production expenses.
Forms
Schedule IN-OCC
Headquarters Relocation Credit
Details
A business with annual worldwide revenue of $50 million, and at least 75 employees (for credits awarded before July 1, 2022), which relocates its corporate headquarters to Indiana may be eligible for a credit. The credit may be as much as 50% of the cost incurred in relocating the headquarters.
Who is eligible?
A business with an annual worldwide revenue of $50 million and at least 75 employees (for credits awarded before July 1, 2022), that relocates corporate headquarters to Indiana.
Forms
Schedule IN-OCC
(non-refundable)
Schedule 5
(refundable)
Schedule F
(refundable)
Health Reimbursement Arrangement Credit
Details
A credit is available for certain employers who create health reimbursement arrangements for their employees in 2024 or later.
Amount of credit for a qualified contribution for a qualified taxpayer with less than 50 employees, is up to $400 in the first year per covered employee.
The credit decreases to $200 per covered employee in the second year.
Total tax credits granted are limited to $10 million in any taxable fiscal year.
Who is eligible?
An employer that did not have more than 49 employees at any time during the taxable year and provided an amount toward the health reimbursement arrangement. This credit cannot be passed through to the owners of pass-through entities.
Forms
Schedule IN-OCC
Hoosier Business Investment Credit
Details
This credit is for qualified investments, which include the purchase of new telecommunications, production, manufacturing, fabrication, processing, refining, or finishing equipment. Pass-through entities are eligible for this credit.
This credit is administered by the
Indiana Economic Development Corporation
Who is eligible?
Individuals who made qualified investments of the purchase of new qualified equipment.
Forms
Schedule IN-OCC
Schedule 6
Schedule G
Indiana’s Research Expense Credit
Details
Indiana has a research expense credit that is similar to the federal credit for research and experimental expenses incurred in Indiana.
If you are claiming the credit as an owner of a partnership or S corporation, your Schedule IN K-1 must be provided to support your claim.
A completed
Form IT-20REC
must be kept with your records as DOR may require you to provide this information.
For more on this tax credit,
visit the Indiana Research Expense Credit webpage
Who is eligible?
Businesses that incur research and experimental expenses in Indiana.
Forms
IT-20REC
Schedule 6
Schedule G
Individual Development Account Credit
Details
A credit is available for qualified contributions made to a community development corporation participating in an Individual Development Account (IDA) program. The organization must have an approved program number from the
Indiana Housing and Community Development Authority (IHCDA)
before a contribution qualifies for preapproval. Applications for the credit are filed through the IHCDA.
Who is eligible?
S corporations and partnerships may take this credit and pass through the unused portion to their shareholders and partners if qualified contributions were made to a community development corporation participating in an IDA program.
Forms
Schedule 6
Schedule G
Industrial Recovery Credit
Details
This credit is based on a taxpayer’s qualified investment in a vacant industrial facility located in a designated industrial recovery site. If the Indiana Economic Development Corporation approves the application and the plan for rehabilitation, you are entitled to a credit based on the “qualified investment.” The minimum age for a facility to be eligible for this credit has been reduced from 20 years to 15 years. This credit is available to pass-through entities, such as members of partnerships and S corporations.
Who is eligible?
Businesses that made a qualified investment in a vacant industrial facility.
Forms
Schedule 6
Schedule G
Mine Reclamation Credit
Details
A credit is available for a qualified investment at a mine reclamation site. This credit is administered and must be approved by the
Indiana Economic Development Corporation
Who is eligible?
Businesses that mine reclamation sites qualified investments at a mine reclamation site.
Forms
Schedule 6
Schedule G
Railroad Tax Credit for Qualified Infrastructure Investment
Details
This Tax Credit is comprised of the Railroad Expenditures Tax Credit and New Rail Infrastructure Expenditures Tax Credit.
Learn more about the annual limit and qualifications in Income Tax Information Bulletin #125
Who is eligible?
Railroad companies with qualifying expenditures.
Forms
Application for Railroad Tax Credit for Qualified Infrastructure Investment
Schedule IN-OCC
Redevelopment Tax Credit
Details
This credit is based on a taxpayer’s rehabilitation or redevelopment expenses incurred for vacant or underutilized real property. If the Indiana Economic Development Corporation approves the application and the plan for rehabilitation, you are entitled to a credit based on the “qualified investment.” This credit is available to pass-through entities, such as members of partnerships and S corporations.
Who is eligible?
Businesses that made a qualified investment for rehabilitation or development of real property.
Forms
Schedule IN-OCC
Small Modular Nuclear Reactor Tax Credit
Details
Allows 20% of expenditures incurred in the manufacturing of a small modular nuclear reactor as tax credit against AGI, FIT, or Insurance Premiums Tax. No credit caps, including aggregate. It is nonrefundable, may be carried forward indefinitely, and passed through. More than one credit for the same qualified investment cannot be made.
Learn more from Information Bulletin #124
Before claiming the credit, taxpayers must submit the following to DOR:
Information verifying that the taxpayer’s qualified investment was made with respect to a small modular nuclear reactor that will be manufactured in Indiana
and
All information that the department determines is necessary for the calculation of the credit.
Who is eligible?
Businesses that manufacture small modular nuclear reactors.
Forms
Schedule IN-OCC
Individual and Business Tax Credits
Attainable Homeownership Tax Credit
Details
A credit of 50% of any allowable contributions up to a maximum of $10,000 per taxable year is available for certain contributions to Habitat for Humanity of Indiana. The total amount of credits per state fiscal year is limited to $4 million.
Certification for this credit must be obtained from
Habitat for Humanity of Indiana
Who is eligible?
Individuals who make contributions of cash and other property to Habitat for Humanity of Indiana.
Forms
Schedule IN-OCC
College Donation Credit
Details
If you donated money or property to an Indiana college or university, you may be able to take a credit.
Individuals filing a single return: the credit is the lesser of one-half of the amount contributed, or $100.
Individuals filing a joint return: the credit is the lesser of one-half of the amount contributed, or $200.
Corporations can claim a credit of 10% of the adjusted gross income tax liability or $1,000, or whichever is less.
Tuition paid to a college or university is not a contribution and does not qualify for this credit.
Who is eligible?
Individuals who donated money or property to an Indiana college or university.
Forms
Schedule CC-40
Schedule 6
Schedule G
Economic Development for a Growing Economy Credit (EDGE) & Economic Development for a Growing Economy Retention Credit (EDGE-R)
Details
Businesses that conduct certain activities designed to foster job creation and/or job retention in Indiana may be eligible for one or both of these credits.
This credit is available to pass-through entities, such as members of partnerships and S corporations.
Who is eligible?
Qualifying business income that fosters job creation or retention in Indiana.
Forms
Schedule IN-EDGE
Schedule IN-EDGE-R
Schedule 5
Schedule F
Foster Care Donations Credit
Details
A credit is available for qualifying donations to approved foster care organizations, or the Insuring Foster Youth Trust Fund. The credit is 50% of the donation made to qualifying organizations, up to a maximum of $10,000 per taxable year.
Indiana Department of Revenue
administers and approves this credit
Who is eligible?
Taxpayers who donate to qualified foster care organizations or to the Insuring Foster Youth Trust Fund.
Forms
Schedule IN-OCC
Historic Rehabilitation Tax Credit
Details
A credit is available for taxpayers who incur approved qualified rehabilitation expenditures for the restoration and preservation of qualified historic structures.
This credit is administered and must be approved by the
Indiana Economic Development Corporation
Who is eligible?
Individuals who incurred qualified rehabilitation expenses are eligible for 25% of those expenses if:
They incurred costs and expenses for the restoration and preservation of a qualified historic structure;
The costs and expenses are defined as a qualified rehabilitation expenditure in IRC Section 47(c)(2);
and
The costs and expenses are at least $5,000
Forms
Schedule IN-OCC
Indiana State and County Tax Withholding Credits
Details
Claim the Indiana state and Indiana county tax withholding amounts as credits when you file your Indiana income tax return (Forms
IT-40
IT-40PNR
IT-40RNR
or
IT-40X
).
Indiana withholding amounts may be found on any of the following forms:
W-2: Wage and Tax Statement
W-2G: Certain Gambling Winnings
1099-G: Certain Government Payments
1099-R: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, etc.
1099-MISC: Miscellaneous Income
Schedule IN K-1: Shareholder's/Partner's Share of IN AGI, Deductions, Modifications and Credits
WH-4852: Indiana Substitute for Form W-2 or Form 1099-R (Indiana form)
Do not claim other state's or non-Indiana locality withholding amounts on your Indiana Income tax return. Contact those states/localities for instructions on how to claim those credits.
Who is eligible?
Individuals with Indiana and/or county withholding taxes.
Forms
Schedule 5
Schedule F
Schedule IN-W
Neighborhood Assistance Credit
Details
Those who made or engaged in activities to upgrade areas in Indiana may be able to claim a credit for this assistance. Pass-through entities are eligible for this credit.
Do not report fees paid to your neighborhood association on this line, as they are not eligible for this credit
Contact the
Indiana Housing & Community Development Authority
with questions.
Indiana Housing & Community Development Authority
Neighborhood Assistance Program
30 S. Meridian St., Suite 1000
Indianapolis, IN 46204
317-232-7777 (within Indianapolis)
800-872-0371 (outside Indianapolis)
Who is eligible?
Certain individuals who made a contribution or engaged in activities to upgrade areas in Indiana.
Forms
Schedule 6
Schedule G
Pass Through Entity Tax (PTET) Credit
Details
A credit is available for an entity owner of a partnership or S corporation that has elected to pay PTET. This credit is also available to owners of pass-through entities who pass along PTET from another entity.
Who is eligible?
Taxpayers who are partners in a partnership or a shareholder of an S corporation that has elected to pay PTET.
Forms
Schedule 5
Schedule F
School Scholarship Credit
Details
A credit equal to 50% of the amount of a contribution is available to certain scholarship-granting organizations (SGOs). There are no limits on how much a donor can contribute.
See updated School Scholarship Credit information
Who is eligible?
Individuals who donate to certain scholarship-granting organizations.
Forms
Schedule IN-OCC
Schedule 6
Schedule G
Venture Capital Investment Credit
Details
A taxpayer who provides qualified investment capital to a qualified Indiana business may be eligible for this credit.
Who is eligible?
Individuals who provide qualified investment capital to a qualified Indiana business.
Forms
Schedule IN-OCC
Venture Capital Investment Credit Qualified Indiana Investment Fund
Details
A credit is available for the venture capital investment credit for amounts provided to a qualified Indiana investment fund. This credit is administered and must be approved by the
Indiana Economic Development Corporation
Who is eligible?
A taxpayer who provides qualified investment capital (either debt or equity capital) to a qualified Indiana investment fund.
Forms
Schedule IN-OCC
Resources
Filing Requirements and Specific Tax Benefits Available to the Elderly (IB #26)
Credits for taxes paid to other states (IB # 28)
Summary of Tax Credits Available to Income Taxpayers (IB #59)
Current Year Tax Forms
Tax Deductions
Contact DOR
Indiana Department of Revenue
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