Introduced Version




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.


Second Regular Session 113th General Assembly (2004)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2003 Regular Session of the General Assembly.


    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

    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.