Allocation and apportionment of income of multistate corporations

Sec. 37. Division of Income in General. Corporations doing business both within and without Indiana shall determine their income from

Indiana sources through the use of the allocation and apportionment provisions contained in IC 6-3-2-2(b)-(n), which generally follow

the Uniform Division of Income For Tax Purposes Act. The multistate corporation must first determine what part of its adjusted gross income

constitutes business income [See Regulation 6-3-1-20(010) [45 IAC 3.1-1-29]] and what part is nonbusiness income. Business

income is apportioned to this state based on the 3-factor (or other approved) formula. Nonbusiness income is allocated to specific jurisdictions

pursuant to paragraphs (g)-(k) of IC 6-3-2-2. Business income apportioned to this state plus nonbusiness income allocated to Indiana plus

the modifications required by IC 6-3-1-3.5(b) gives the total of the taxpayer's net income which is subject to adjusted gross income tax.

As used above, the word "apportionment" refers to the division of income between states by use of the 3-factor (or other approved) formula;

"allocation" means the assignment of income to a particular jurisdiction.

(Department of State Revenue; Reg 6-3-2-2(b)(010);

filed Oct 15, 1979, 11:15 am: 2 IR 1523; errata, 2 IR 1743)