TaxByte: Indiana Delays Quantum Computing Tax Exemption and Launches Amnesty Program | TaxValet

Indiana has postponed the start date for its new sales tax exemption on quantum computing projects to January 1, 2026, and is rolling out a new tax amnesty program for unpaid taxes from before 2023. These changes come as part of the recently signed H.B. 1001.

New Indiana Sales Tax Rules Will Affect Tech Innovators and Delinquent Taxpayers

If your business is involved in quantum computing, defense tech, or advanced computing infrastructure in Indiana, there's a delay in the anticipated tax relief you were counting on. And if you have unpaid Indiana taxes from before 2023, you may soon have a limited-time opportunity to catch up without facing penalties or interest.

Indiana’s Sales Tax Exemption Delay and Amnesty Program Explained

Quantum Computing Tax Exemption Delayed

Originally scheduled to take effect immediately after H.B. 1601 was signed into law on May 1, the sales and use tax exemption for qualified quantum and defense-related projects has now been deferred. Under H.B. 1001, the effective date is pushed to January 1, 2026. This impacts exemptions tied to:

• Quantum computing research
  
  
• Advanced computing technologies
  
  
• Defense infrastructure projects

New Tax Amnesty Program Coming

Indiana will also roll out a tax amnesty program targeting liabilities incurred before January 1, 2023. While full program details are pending, this typically includes:

• Waived penalties and interest
  
  
• A window for taxpayers to voluntarily settle unpaid balances
  
  
• Relief for both businesses and individuals with past-due obligations
  
  

Past amnesty efforts have proven successful for the state. The last program in 2015 brought in $188 million. The new program is expected to generate between $145 million and $228 million in revenue.

Additional Update on Tax Credits

The state is also increasing the annual cap on certain economic development tax credits—from $250 million to $300 million starting in FY 2026—which may create more competitive opportunities for incentive programs.

What Indiana Businesses Should Do Now

Businesses involved in advanced technologies should:

• Reassess any 2025 planning that relied on the immediate tax exemption.
  
  
• Document expenses that might be eligible when the exemption becomes active in 2026.

Businesses (in any industry) selling in Indiana should:

• Evaluate if their businesses qualify for Indiana’s upcoming tax amnesty program. If you have unpaid tax liabilities from before January 1, 2023—regardless of your industry—this may be an opportunity to resolve them with reduced penalties or interest.
  
  

If you’re unsure whether you qualify for the exemption or the upcoming amnesty program, consult with a tax advisor or reach out to your tax compliance partner.

How TaxValet Helps You Stay Ahead of Indiana Tax Changes

At TaxValet, we monitor regulatory changes like Indiana’s sales tax exemption delay and new amnesty initiatives so you don’t have to. If you were expecting to claim the quantum computing exemption this year, we’ll adjust your filings and timelines accordingly. And if you may benefit from Indiana’s amnesty program, we’ll help you understand your eligibility and act quickly.

Need help navigating Indiana’s tax updates? Schedule a free consultation and let’s chat about how we can simplify compliance for your business.