Indiana Code Title 6. Taxation § 6-3.1-4-2.5

(1) The aerospace industry is adversely affected by the calculation of qualified research expense credits under this chapter, based on the Internal Revenue Code's treatment of federal defense spending trends in the 1980s.

(2) This adverse impact creates a disincentive for making qualified research expenditures in Indiana.

(3) Manufacturers of aerospace and jet propulsion equipment have been a major in-state employer of science and engineering graduates from Indiana universities.

(4) The presence of a strong aerospace manufacturing base furthers the state's interest in maintaining the viability of a United States government military installation that is used for the design, construction, maintenance, and testing of electronic devices and ordnance.

(5) The creation of an alternative qualified research expense credit promotes vital state interests.

(1) is primarily engaged in the production of civil and military jet propulsion systems;

(2) is certified by the Indiana economic development corporation as an aerospace advanced manufacturer;

(3) is a United States Department of Defense contractor;  and

(4) maintains one (1) or more manufacturing facilities in Indiana employing at least three thousand (3,000) employees in full-time employment positions that pay on average more than four hundred percent (400%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.

(1) the taxpayer's Indiana qualified research expenses for the taxable year;  minus

(2) fifty percent (50%) of the taxpayer's average Indiana qualified research expenses for the three (3) taxable years preceding the taxable year for which the credit is being determined.