Indiana Economic Development Corporation Issues Guidance on Patent Income Tax Exemption

The Indiana Economic Development Corporation June 1 issued guidance on the Exemption for Patent-Derived Income for individual income and corporate income tax purposes. The guidance includes information explaining that: 1) the exemption applies to income derived from utility and plant patents only; 2) taxpayers can’t claim the exemption for income derived from a particular patent for more than 10 taxable years; 3) the exemption percentage begins at 50 percent for the first five taxable years and decreases over the next five taxable years to 10 percent; 4) the exemption is available only for taxpayers domiciled in Indiana who are either ...