According to the Indiana instructions, the following changes are being made for tax year 2024:
Update
Line 1 of Form IT-40, assumes conformity with the Internal Revenue Code of 1986, as amended and in effect on January 1, 2023. If the 2025 Indiana General Assembly does not conform to the most current changes to the Internal Revenue Code, you may be required to amend your tax return later to reflect any differences between Indiana and federal law. You can check the DOR’s homepage at www.in.gov/dor for updates.
What's new for Credits?
- ABLE 529A Account Credit (872) - Taxpayers who contribute to Indiana ABLE accounts may claim this credit.
- Employer Child Care Expenditure Credit (876) - Employers who made qualified expenditures related to the construction of child care facilities for employees' children may claim this credit.
- Employment of Individuals with Disability Tax Credit (877) - Employers who hired new employees with disabilities that were placed with the employer through a vocational rehabilitation program may claim this credit.
- Health Reimbursement Arrangement Credit (878) - This credit may be claimed by certain employers who create health reimbursement arrangements for their employees in 2024.
What's new with Add-Backs (Additions)?
- NOL Reduction Due to Debt Discharge (155) - This new add-back has been created for purposes of reporting net operating loss carryforwards eliminated as a result of debt discharges.
What's new for Deductions?
- Health Care Sharing Ministry Deduction (643) - This new deduction allows for taxpayers to deduct payments made to health sharing ministries for membership in those ministries.
- The Active Duty Military Compensation Deduction has been increased to 100% of compensation.
Miscellaneous
- Schedule IN-OCC Form Changes - For 2024, Schedule IN-OCC includes a new Part B, which is used to report - 1. Any credits that are being carried forward from previous years. 2. Any credits that are not fully used and being carried forward to future years. 3. Any credits that are not fully used, even if the credit is not available for future carryforward.
To view the full list of changes, please see page 3 of IT-40 Instructions.