§ 6-2.5-5-10.5 — Tangible personal property exemption; public utility or power subsidiary; "utility scale battery energy storage system"

Indiana § 6-2.5-5-10.5

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 5: Exempt Transactions of Retail Merchant

Text

5. (a) Transactions occurring on or after
May 1, 2021, involving tangible personal property are exempt from the
state gross retail tax, if:
(1) the property is classified as a utility scale battery energy
storage system as defined in subsection (b);
(2) the person acquiring the property is:
(A) a public utility that furnishes or sells electrical energy; or
(B) a power subsidiary (as defined in IC 6-2.5-1-22.5) that
furnishes or sells electrical energy to a public utility described
in clause (A); and
(3) the person acquiring the property uses the property to store
electrical energy in-front of the customer's meter.
(b) As used in this section, a "utility scale battery energy storage
system" means a system capable of storing and releasing greater than
1MW of electrical energy for a minimum of one (1) hour utilizing an
AC inverter and DC storage, or equipment which receives, stores, and
delivers energy using batteries, compressed air, pumped hydropower,
hydrogen storage (including hydrolysis), thermal energy storage,
regenerative fuel cells, flywheels, capacitors, and superconducting
magnets, but does not include foundations or property used to directly
or indirectly connect the AC inverter or DC storage of such system to
electrical energy production equipment or the customer's meter.

Legislative History

As added by P.L.159-2021, SEC.4. Amended by P.L.137-2022, SEC.26.