In This Section

Senate Enrolled Act 2: Taxation of Pass-Through Entities (SEA 2) enacting a pass-through entity tax for Indiana has been signed into law by Gov. Holcomb with a retroactive date of Jan. 1, 2022. The bill was fast tracked through the Statehouse to allow CPAs, already midway into tax season, as much time as possible to assist clients during tax season, while allowing taxpayers the greatest opportunity to benefit from the work around. 

The INCPAS advocacy team worked with elected officials and multiple stakeholders to ensure clear guidance and a timely implementation.

A few items of note on PTET:

  • There are 29 states (and 1 locality) that have enacted a PTE tax — all of which are effective in 2022 or earlier.
  • There is a strong desire among the Indiana business community and legislature to enact with a retroactive effective date of Jan. 1, 2022.
  • The election is optional, unlike CT where the election is mandated.
  • There are Safe Harbor provisions that waive penalties during the initial implementation.
See below for additional information and resources — we will be updating this page regularly.


Recorded Resource

In case you missed the live In the Know session, we recorded this event for you to watch. While watching the recording now does not count for CPE, there is a lot of great information to take away.


Indiana CPA-Political Action Committee

The PAC builds and leverages relationships with elected officials and represents your interests as a CPA. Learn more about the PAC here.

Contribute to the Indiana CPA-PAC to help ensure our voices are heard on policies that affect you and how you do business. Your support for the PAC helps uphold the integrity and effectiveness of the profession.

Now we've made it even easier to contribute by adding new payment options. Please make a PAC contribution today by either:

  1. Texting CPAPAC to (202) 858-1233.
  2. Contribute online.

Your INCPAS Connection to Advocacy

Sherrill Rude, CAE 
(317) 726-5016
Sherrill Rude, CAE