Indiana – New Exemptions for Research and Development Property

SALT Report 2497 – The state of Indiana recently enacted legislation that creates a sales and use tax exemption for research and development property. According to the provisions in House Bill 1545 all retail transactions for research and development property must occur after June 30, 2013 and delivery of the property must also take place after that date. Additionally, a transaction will be considered as having occurred before July 1, 2013, even if the property is delivered after June 30, 2013, if the transaction is entered into and payment is made before July 1, 2013.

Qualified research and development property is tangible personal property that:

  • Has not previously been used in Indiana for any purpose,
  • Is acquired by the purchaser for research and development purposes, and
  • Is devoted to experimental or laboratory research and the development of new products, new uses of existing products, or improving or testing existing products

Qualified new research and development equipment consists of:

  • Laboratory equipment,
  • Research and development equipment,
  • Computers and computer software,
  • Telecommunications equipment, or
  • Testing equipment

This sales and use tax exemption applies regardless of whether the person purchasing the research and development property is a manufacturer or a seller.

For Further Information

Indiana State Legislature – House Bill 1545, Laws 2013