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 2026 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?
- Affordable and Workforce Housing Credit 871 (new)- Available for developers of affordable rental housing in the state of Indiana.
- New Rail Infrastructure Expenditures Tax Credit 883 (new)- Available for qualified new rail infrastructure expenditures.
- Railroad Expenditures Tax Credit 882 (new)- Available for qualified railroad expenditures.
- Small Modular Nuclear Reactor Tax Credit 884 (new)- Available for qualified infrastructure investments for the manufacture of small modular nuclear reactors.
- Physicians Practice Ownership Credit (880)- This credit has been expanded to include owners of entities that are engaged in any medical practice.
What's new for Deductions?
- The COVID- related Employee Retention Credit Disallowed Expenses Deduction (634) has been reinstated.
Miscellaneous
- Schedule CT-40- A new box has been added to report your (and your spouse if married filing jointly) principal residence as of January 1.
To view the full list of changes, please see page 3 of IT-40 Instructions.