Exemptions

Sec. 5. (a) Generally, any taxpayer which is taxable under the FIT (IC 6-5.5) is exempt from the following:

(1) Indiana's gross income tax (IC 6-2.1).

(2) Adjusted gross income tax (IC 6-3).

(3) Supplemental net income tax (IC 6-3-8).

(4) Bank tax (IC 6-5-10).

(5) Savings and loan tax (IC 6-5-11).

(6) Production credit association tax (IC 6-5-12).

However, in the case of a partnership with a corporate partner, transacting the business of a financial institution, only the income subject to FIT

shall be exempt from the above listed taxes. (See 45 IAC 17-4-4 regarding the tax liability for corporate partners of a partnership which

is doing the business of a financial institution.) NOTE: The exemptions provided for the taxes listed in subdivisions (1) through (3) do not apply

to a taxpayer to the extent the taxpayer is acting in a fiduciary capacity.

(b) Four (4) types of corporations are exempt from the FIT as follows:

(1) Insurance companies subject to tax under IC 27-1-18-2 or IC 6-2.1.

(2) International banking facilities, as defined in Regulation D of the Board of Governors of the Federal Reserve

System.

(3) Subchapter S corporations, as defined in Section 1363 of the Internal Revenue Code.

(4) Any corporation which is exempt from taxation under the Internal Revenue Code except for the corporation's unrelated business

income.