Indiana R&D Tax Credit Explained for Corporations

Indiana and the R&D Tax Credit

State Credit Name: Indiana Research Expense Tax Credit

Expiration Date: Indefinite

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: 10 year carry forward period, but no carry back

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Special Notes:

Credit is 15% of the increase in Indiana QRE’s paid or incurred over the base amount up to $1 million.
The credit is 10% of any excess of QRE’s over $1 million.
For tax years after 2009, the the Alternative Simplified Credit Method is allowed. The credit is 10% of the excess of the current year’s QRE’s that is in excess of 50% of the average of the previous years’ QRE’s. If the taxpayer does not have 3 prior years of QRE’s then the credit is 5%.

Find out more

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location at 9445 Indianapolis Boulevard, Highland, Indiana provides R&D tax credit consulting and advisory services to Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Hammond, Gary and Lafayette.

If you have any questions or need further assistance, please call or email our local Indiana Partner on (219) 230-9956.
Feel free to book a quick teleconference with one of our Indiana R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.

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Indiana R&D Tax Credit Filing Instructions

To claim the R&D tax credit in Indiana, businesses must conduct qualified research activities within the state and generally align their calculations with federal Section 41 of the Internal Revenue Code, though Indiana has its own specific calculation methods and definitions for qualified expenses. The credit is typically calculated as 15% of the first $1 million of qualified research expenses (QREs) that exceed a base amount, and 10% for QREs exceeding $1 million. An alternative incremental method is also available. To make the claim, businesses must file Indiana Form IT-20REC, Indiana Research Expense Credit, and enclose it with their annual state income tax return (such as Form IT-20 for corporations). A copy of the federal Form 6765 (Credit for Increasing Research Activities) should also be attached to the IT-20REC. It’s crucial to maintain detailed records of all Indiana-based research activities and expenses to support the claim.

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Indiana Patent of the Year – 2024/2025

EnPower Inc. has been awarded the 2024/2025 Patent of the Year for its innovative multilayer electrode design. Their invention, detailed in U.S. Patent No. 11929505, titled ‘Electrode having an interphase structure’, introduces a novel approach to enhancing the performance of rechargeable batteries.

This patented electrode features a composite structure comprising two active material layers separated by an interphase layer. The interphase layer is characterized by a non-planar boundary, where discrete “fingers” of particles from each layer interlock, creating a robust mechanical bond. This design improves the electrode’s structural integrity and facilitates better electrical conductivity between the layers.

One of the key advantages of this interphase structure is its ability to accommodate the volume changes that occur during the charging and discharging cycles of a battery. By maintaining the cohesion between layers, the electrode reduces the risk of delamination, which can lead to capacity loss and shortened battery life.

Furthermore, the interphase layer’s unique morphology enhances the electrode’s overall performance by optimizing ionic and electronic transport pathways. This innovation holds promise for a wide range of applications, from consumer electronics to electric vehicles, where efficient and durable batteries are essential.