Maximize Your Indiana Tax Credits:
A Step-By-Step Guide To Claiming Your Award

You’ve secured one of Indiana’s business tax credits (EDGE, HBI, RTC, etc.). Now what? Ensuring you properly claim your award is critical to maximizing your benefits. Follow this step-by-step approach to guarantee you’re not leaving money on the table.

Step 1: Include the certification letter in your tax filing.

The Indiana Economic Development Corporation (IEDC) issues a certification letter confirming your tax credit. This letter must be attached to your Indiana income tax return for the relevant tax year.

Step 2: Complete the required Indiana tax form.

Indiana requires a specific tax form to claim your awarded credit. The form varies based on the incentive program in which you’re enrolled. Ensure the correct form is completed and submitted with your Indiana tax return.

Step 3: Determine credit utilization based on business structure.

• For corporations: The tax credit applies at the entity level to offset corporate tax liability.
• For pass-through entities (S-corps, partnerships, LLCs): Depending on the type of credit being awarded, the tax credit may be utilized at the entity level or it may be passed through to individual owners via the Indiana K-1 form.
• For individuals: If passed through, owners report the credit on their personal Indiana tax return.

Step 4: Understand whether the credit offsets liability or results in a refund.

• The tax credit reduces Indiana income tax owed.
• If the credit amount exceeds tax liability, a refund may or may not be issued, depending on the credit’s refundability.
• Some credits are non-refundable and can only be used to offset existing tax liability but will likely have a carryforward provision.

Step 5: File with the Indiana Department of Revenue (IDOR).

The IDOR processes tax filings and credits. If any issues arise with your credit application or refund, you may need to contact the IDOR for resolution.

Step 6: Seek assistance.

Maximizing tax credits can be complex. The team at KSM Location Advisors is here to help ensure you properly utilize your credit. Work with a tax professional to determine the best strategy for reporting and optimization.

Key Takeaway

To successfully claim your Indiana tax credit:
✔ Attach the certification letter to your tax return.
✔ File the correct tax forms based on the program requirements.
✔ Determine whether the credit is applied at the entity or individual level.
✔ Consult with a tax expert to ensure proper reporting and maximum benefit.

Need help navigating Indiana tax credits? Contact KSM Location Advisors today!