republic-os/legislation/us/states/in/2023/sb-419.md

---
type: "Bill"
title: "State tax matters."
description: "Changes the definition of \"Internal Revenue Code\" in the adjusted gross income tax law to mean the Internal Revenue Code of 1986 as amended and in effect on January 1, 2023. Makes certain changes regarding net operating losses for purposes of determinating state adjusted gross income. Provides that certain amounts for providing or expanding access to broadband service in Indiana may be subtracted from a taxpayer's state corporate adjusted gross income. Provides for successor liability for certain unpaid taxes following a business asset sale. Repeals an outdated provision requiring separate exemption certificates for manufacturers and wholesalers. Makes a clarifying change to the sales tax exemption that applies to power subsidiaries. Clarifies the acquisition date for purposes of adding back interest from tax exempt bonds issued by another state in determining Indiana adjusted gross income. Amends provisions regarding the exemption for certain income derived from patents. Provides that tax paid by an electing partnership is deposited in the state general fund. Makes clarifying changes and technical corrections to the affordable and workforce housing tax credit. Specifies the deposit and distribution of interest with respect to certain taxes. Authorizes the department of state revenue to publish or disclose the status of a governmental or nonprofit entity's sales tax exemption certificate. Provides that a person who knowingly or intentionally sells, purchases, installs, transfers, or possesses: (1) an automated sales suppression device or a zapper; or (2) phantom-ware; commits a class A misdemeanor, and increases the penalty if certain circumstances exist. Makes clarifying and technical corrections to provisions under the electronic cigarette tax. Makes certain changes to a provision contained in P.L.1-2023. Provides that an individual who is an Indiana resident and a member of a health care sharing ministry is entitled to an adjusted gross income tax deduction. Requires a taxpayer to: (1) deduct from the taxpayer's adjusted gross income for a taxable year the amount of specified research or experimental expenditures paid or incurred by the taxpayer during the taxable year; and (2) add to the taxpayer's adjusted gross income an amount equal to the deduction claimed under Section 174 of the Internal Revenue Code for the taxable year. Provides that certain transactions involving a person's acquisition of agricultural machinery, tools, or equipment are exempt from the application of the state gross retail tax. Provides that if an organization provides nonprofit agricultural organization insurance coverage, the organization is subject to a nonprofit agricultural organization health coverage tax unless the organization: (1) files a notice of election with the insurance commissioner and the commissioner of the department of state revenue on or before November 30 of a taxable year; and (2) states in the notice of election that the organization elects to be subject to state income tax for the taxable year. Provides that compensation received by an individual who: (1) is not a resident of Indiana; and (2) receives compensation for employment duties performed in Indiana for 30 days or less during the calendar year; is exempt from the adjusted gross income tax. Provides a sales tax exemption for certain components of a solar or wind energy system."
jurisdiction: "us/states/in"
legislature: "Indiana General Assembly"
session: "2023"
identifier: "SB 419"
citation: "Indiana SB 419 (2023)"
classification: ["bill"]
subjects: ["CRIMES AND OFFENSES generally", "INCOME TAXES", "Adjusted Gross Income Taxes", "NONPROFIT CORPORATIONS AND ORGANIZATIONS", "REVENUE", "DEPARTMENT OF"]
status: "enacted"
primary_sponsors: ["Jeffrey Thompson", "Scott Baldwin", "Travis Holdman"]
version_count: 5
action_count: 33
vote_count: 1
first_action: "2023-01-19"
last_action: "2023-05-04"
source: "openstates"
source_identifier: "ocd-bill/0dec2b35-b86d-48b1-827b-20c31ea0d44c"
source_url: "http://iga.in.gov/legislative/2023/bills/senate/419"
source_hash: "7e54b4ee558a1bbac63fdb586da8bc0f88b71095bd99f84b005ff1b96cc76e0e"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-in"]
---

# Indiana SB 419 (2023) — State tax matters.

Changes the definition of "Internal Revenue Code" in the adjusted gross income tax law to mean the Internal Revenue Code of 1986 as amended and in effect on January 1, 2023. Makes certain changes regarding net operating losses for purposes of determinating state adjusted gross income. Provides that certain amounts for providing or expanding access to broadband service in Indiana may be subtracted from a taxpayer's state corporate adjusted gross income. Provides for successor liability for certain unpaid taxes following a business asset sale. Repeals an outdated provision requiring separate exemption certificates for manufacturers and wholesalers. Makes a clarifying change to the sales tax exemption that applies to power subsidiaries. Clarifies the acquisition date for purposes of adding back interest from tax exempt bonds issued by another state in determining Indiana adjusted gross income. Amends provisions regarding the exemption for certain income derived from patents. Provides that tax paid by an electing partnership is deposited in the state general fund. Makes clarifying changes and technical corrections to the affordable and workforce housing tax credit. Specifies the deposit and distribution of interest with respect to certain taxes. Authorizes the department of state revenue to publish or disclose the status of a governmental or nonprofit entity's sales tax exemption certificate. Provides that a person who knowingly or intentionally sells, purchases, installs, transfers, or possesses: (1) an automated sales suppression device or a zapper; or (2) phantom-ware; commits a class A misdemeanor, and increases the penalty if certain circumstances exist. Makes clarifying and technical corrections to provisions under the electronic cigarette tax. Makes certain changes to a provision contained in P.L.1-2023. Provides that an individual who is an Indiana resident and a member of a health care sharing ministry is entitled to an adjusted gross income tax deduction. Requires a taxpayer to: (1) deduct from the taxpayer's adjusted gross income for a taxable year the amount of specified research or experimental expenditures paid or incurred by the taxpayer during the taxable year; and (2) add to the taxpayer's adjusted gross income an amount equal to the deduction claimed under Section 174 of the Internal Revenue Code for the taxable year. Provides that certain transactions involving a person's acquisition of agricultural machinery, tools, or equipment are exempt from the application of the state gross retail tax. Provides that if an organization provides nonprofit agricultural organization insurance coverage, the organization is subject to a nonprofit agricultural organization health coverage tax unless the organization: (1) files a notice of election with the insurance commissioner and the commissioner of the department of state revenue on or before November 30 of a taxable year; and (2) states in the notice of election that the organization elects to be subject to state income tax for the taxable year. Provides that compensation received by an individual who: (1) is not a resident of Indiana; and (2) receives compensation for employment duties performed in Indiana for 30 days or less during the calendar year; is exempt from the adjusted gross income tax. Provides a sales tax exemption for certain components of a solar or wind energy system.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Engrossed Senate Bill (H)** (committee substitute) — [source](http://in-proxy.openstates.org/2023/bills/SB0419/versions/SB0419.04.ENGH)
2. **Enrolled Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2023/bills/SB0419/versions/SB0419.05.ENRH)
3. **Introduced Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2023/bills/SB0419/versions/SB0419.01.INTR)
4. **Senate Bill (H)** (committee substitute) — [source](http://in-proxy.openstates.org/2023/bills/SB0419/versions/SB0419.03.COMH)
5. **Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2023/bills/SB0419/versions/SB0419.02.COMS)

## Votes

- SB 419 - Thompson - 3rd Reading — **96–2** (pass) · lower

## Sponsors

- Jeffrey Thompson — primary (person)
- Scott Baldwin — primary (person)
- Travis Holdman — primary (person)
- Carey Hamilton — cosponsor (person)
- Gregory Porter — cosponsor (person)
- Lonnie Randolph — coauthor (person)
- Robert Cherry — cosponsor (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2023-01-19** Authored by Senator Holdman
- **2023-01-19** First reading: referred to Committee on Tax and Fiscal Policy `reading-1, referral-committee`
- **2023-02-21** Committee report: amend do pass, adopted `committee-passage`
- **2023-02-23** Second reading: ordered engrossed `reading-2`
- **2023-02-23** Senator Baldwin added as second author
- **2023-02-27** Third reading: passed; Roll Call 174: yeas 49, nays 0 `passage, reading-3, reading-3`
- **2023-02-27** House sponsor: Representative Thompson
- **2023-02-27** Cosponsor: Representative Cherry
- **2023-02-27** Senator Randolph added as coauthor
- **2023-02-28** Referred to the House `referral`
- **2023-03-06** First reading: referred to Committee on Ways and Means `reading-1, referral-committee`
- **2023-03-16** Representative Porter added as cosponsor
- **2023-04-03** Representative Hamilton added as cosponsor
- **2023-04-06** Committee report: amend do pass, adopted `committee-passage`
- **2023-04-11** Amendment #2 (Thompson) prevailed; voice vote `amendment-passage`
- **2023-04-11** Second reading: amended, ordered engrossed `reading-2`
- **2023-04-17** Third reading: passed; Roll Call 435: yeas 96, nays 2 `passage, reading-3, reading-3`
- **2023-04-18** Returned to the Senate with amendments `receipt`
- **2023-04-18** Motion to dissent filed `filing`
- **2023-04-18** Senate dissented from House amendments
- **2023-04-19** Senate conferees appointed: Holdman and Melton
- **2023-04-19** Senate advisors appointed: Randolph Lonnie M and Baldwin
- **2023-04-19** House conferees appointed: Thompson and Porter
- **2023-04-19** House advisors appointed: Cherry, Snow, Smaltz, Greene and Hamilton
- **2023-04-26** CCR # 1 filed in the Senate `filing`
- **2023-04-26** CCR # 1 filed in the House `filing`
- **2023-04-27** Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 533: yeas 95, nays 0
- **2023-04-27** Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 505: yeas 49, nays 0
- **2023-04-28** Signed by the President of the Senate `passage`
- **2023-04-28** Signed by the President Pro Tempore `passage`
- **2023-05-01** Signed by the Speaker `passage`
- **2023-05-04** Signed by the Governor `executive-signature`
- **2023-05-04** Public Law 194 `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/0dec2b35-b86d-48b1-827b-20c31ea0d44c`. Confidence: reported (aggregated from official Indiana legislature records).