Citations Affected: IC 6-2.5-5-4.5.
Synopsis: Sales tax exemption for research equipment. Exempts
research and development equipment from sales tax.
Effective: July 1, 2004.
January 8, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
SECTION 1. IC 6-2.5-5-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 4.5. (a) As used in this section, "research and
development equipment" means tangible personal property that:
(1) is installed after June 30, 2004;
(2) consists of:
(A) laboratory equipment;
(B) research and development equipment;
(C) computers and computer software;
(D) telecommunications equipment; or
(E) testing equipment;
(3) is used in research and development activities devoted directly and exclusively to experimental or laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products;
(4) is acquired by the owner for a purpose described in this subsection; and
(5) was never before used by the owner for any purpose in Indiana.
The term does not include equipment installed in facilities used for or in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising or promotion, or research in connection with literacy, history, or similar projects.
(b) A retail transaction that involves research and development equipment is exempt from the state gross retail tax.
SECTION 2. [EFFECTIVE JULY 1, 2004] IC 6-2.5-5-4.5, as added by this act, applies to retail transactions that occur after June 30, 2004.