New Indiana Law Offers Tax Benefits for LLC, Sub S Corp.

Click on the image to be taken to preliminary guidance on this tax issue as of March 9, 2023, from the Indiana Department of Revenue.

Indiana Senate Enrolled Act 2 has been signed into law and can impact your 2022 tax filings if your company is an LLC or Sub S Corporation, according to the Indiana Manufactured Housing Association-Recreation Vehicle Industry Association (IMHA-RVIC).

The new law is retroactively effective for taxable years beginning on or after Jan. 1, 2022.  The bill also provides a refundable tax credit equal to the amount of tax paid by the electing entity with regard to the owner’s share. Another credit is available for pass-through entity taxes that are imposed by and paid to another state.  This change provides tax relief to Indiana small businesses by allowing them to receive an unlimited federal deduction for their state tax payments.

The Indiana Department of Revenue has prepared preliminary guidance on this tax issue as of March 9, 2023: www.in.gov/dor/files/ptet-instructions.pdf

Click here to see the actual Senate Enrolled Act 2.

Source: https://rvbusiness.com/new-indiana-law-offers-tax-benefits-for-llc-sub-s-corp/