Can we claim the deduction for the Indiana 529 Contribution ?

Yes, a credit can be claimed on your IN state return if you qualify.   There are two different options to lower your taxes.   They will be entered on your state tax return on the page titled Take a look at Indiana credits and taxes.

1. The Indiana529 Savings Plans, governed by the Indiana Education Savings Authority (IESA) and administered by Ascensus College Savings and College Savings Bank, allow Hoosiers to plan for their children's or loved one's future by making contributions into an investment account for higher education expenses.   Indiana taxpayers who contribute to an Indian529 account may be eligible for a 20% state income tax credit of up to $1,500 each year ($750 for married filing separately) on their contributions.
2. You may be eligible for a credit if you made a contribution(s) to Indiana’s ABLE 529A savings plan. The credit is 20% of the amount of the total contributions made during the taxable year, or $500, whichever is less. If you made a non-qualified withdrawal(s) from this plan, you will have to repay some or all of any credits previously claimed.