First Regular Session 115th General Assembly (2007)
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HOUSE ENROLLED ACT No. 1037
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-4-5; (07)HE1037.1.1. -->
SECTION 1. IC 6-2.5-4-5, AS AMENDED BY P.L.162-2006,
SECTION 21, AND AS AMENDED BY P.L.180-2006, SECTION 3,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JUNE 30, 2007]: Sec. 5. (a) As used in this section, a
"power subsidiary" means a corporation which is owned or controlled
by one (1) or more public utilities that furnish or sell electrical energy,
natural or artificial gas, water, steam, or steam heat and which produces
power exclusively for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or commodities
that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
to a person who acquires the services or commodities after June
30, 2006, and before July 1, 2007, 2009, through home energy
assistance (as defined in IC 6-2.5-5-16.5).
SOURCE: IC 6-2.5-5-16.5; (07)HE1037.1.2. -->
SECTION 2. IC 6-2.5-5-16.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JUNE 30, 2007]: Sec. 16.5. (a) The
following definitions apply throughout this section:
(1) "Home energy" means electricity, oil, gas, coal, propane, or
any other fuel for use as the principal source of heating or cooling
in residential dwellings.
(2) "Home energy assistance" means programs administered by
the state to supply home energy through the Low Income Home
Energy Assistance Block Grant under 42 U.S.C. 8261 et seq.
(b) Transactions involving home energy are exempt from the state
gross retail tax if the person acquiring the home energy acquires it after
June 30, 2006, and before July 1,
2007, 2009, through home energy
assistance.