1. Research Expense Tax Credit (REC) – Credit for qualified research expenses in Indiana.
  2. Indiana Code § 6-3.1-4 – Statute establishing the Indiana research expense credit.
  3. Indiana Code § 6-3.1-4-1 (Definitions) – Defines terms used in the research credit statute.
  4. Indiana Code § 6-3.1-4-2 (Amount of Credit; Computation) – Calculation methods for the Indiana research credit.
  5. Indiana Code § 6-3.1-4-2.5 (Alternative Computation for Aerospace) – Special credit calculation for aerospace sector contracts.
  6. Indiana Qualified Research Expense (IQRE) – Research expenses incurred specifically within Indiana.
  7. Qualified Research Expense (QRE) – Eligible costs for research and development activities.
  8. IRC § 41 (Internal Revenue Code Section 41) – Federal law defining the R&D tax credit.
  9. IRC § 41(b) (Definition of QRE) – Federal definition of qualified research expenses.
  10. IRC § 41(c) (Base Amount Definition) – Federal rules for calculating the base amount.
  11. IRC § 41(d) (Definition of Qualified Research) – Federal criteria defining qualified research activities.
  12. Base Amount (for REC) – Benchmark amount to determine excess research expenses.
  13. Fixed Base Percentage (for IQRE) – Percentage used to calculate the base amount.
  14. Average Annual Gross Receipts (4 Prior Years) – Revenue average used for base amount calculation.
  15. Gross Receipts Attributable to Indiana – Portion of revenue derived from Indiana sources.
  16. Taxpayer (IC § 6-3.1-4-1) – Entity or individual claiming the research credit.
  17. Pass-Through Entity (PTE) – Business passing income and credits to owners.
  18. Adjusted Gross Income Tax (IC § 6-3) – Indiana tax against which the credit applies.
  19. Indiana Department of Revenue (DOR) – State agency administering Indiana tax laws.
  20. Schedule IN-EDGE-R (Research Expense Credit Form) – Form to claim the Indiana research credit.
  21. Schedule IN K-1 (Pass-Through Credit) – Form reporting credit share to partners/shareholders.
  22. Tiered Credit Rate (15% and 10%) – Rates applied based on expense amount thresholds.
  23. $1 Million Threshold (for Tiered Rate) – Expense limit changing credit rate from 15% to 10%.
  24. Alternative Incremental Credit (AIC) – Optional method for calculating the research credit.
  25. AIC 10% Rate (for Average QREs) – Rate applied to excess average research expenses.
  26. AIC 5% Rate (for Limited QRE History) – Rate for taxpayers with short research history.
  27. Average IQRE (3 preceding taxable years) – Three-year average of Indiana qualified expenses.
  28. Carryforward Period (10 Years) – Unused credits carried forward up to ten years.
  29. Nonrefundable Credit – Credit cannot exceed tax liability; no refund.
  30. Research Conducted in Indiana – Activities must occur within Indiana for eligibility.
  31. Wages for Qualified Services (in Indiana) – Pay for employees performing research in Indiana.
  32. Cost of Supplies (in Indiana) – Materials consumed for research within Indiana.
  33. Contract Research Expenses (65% in Indiana) – Partial deduction for third-party research in Indiana.
  34. Substantially All (Process of Experimentation) – 80% rule for the process of experimentation.
  35. Exclusion: Government-Funded Research – Research paid by government grants is ineligible.
  36. Exclusion: Research Outside Indiana – Expenses incurred outside Indiana are not eligible.
  37. Research and Development Sales Tax Exemption – Tax exemption for R&D equipment purchases.
  38. Research and Development Equipment (Sales Tax) – Machinery used for R&D exempt from sales tax.
  39. Research and Development Property (Sales Tax) – Tangible property acquired for research activities.
  40. Ind. Code § 6-2.5-5-40 (Sales Tax Exemption) – Statute for R&D sales tax exemption.
  41. Internal Use Software Guidelines (DOR) – Rules for software developed for internal operations.
  42. Funded Research Exclusions (DOR) – Research paid by others is not eligible.
  43. Disclosure of Reasons for Not Claiming the Federal Credit – Explanation required if federal credit not claimed.
  44. 50% of Average IQRE (AIC Calculation) – Limitation factor in Alternative Incremental Credit calculation.
  45. Aerospace Contractor (Alternative Calculation) – Specific calculation for aerospace defense contractors.
  46. United States Department of Defense Contractor – Contractor eligibility for aerospace credit provisions.
  47. IC § 6-3-2-29 (R&D Expense Decoupling) – Indiana treatment of federal R&D expense deductions.
  48. Full Deductibility of R&D Expenses (State) – Indiana allows full deduction of research expenses.
  49. IRC § 174 (Amortization Decoupling) – Indiana decouples from federal amortization requirements.
  50. Grantor Trust (Beneficiary Eligibility) – Trust beneficiaries may claim pass-through credits.