Transactions are exempt from the state gross retail tax when:

1. (1) a 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 IC 6-2.5-4-5 ;
2. (2) a power subsidiary or person sells the services or commodities listed in IC 6-2.5-4-5 to another public utility or power subsidiary or a person described in IC 6-2.5-4-6 ; or

3. (3) a power subsidiary or person sells the services or commodities listed in IC 6-2.5-4-5 and all of the following conditions are satisfied:

   1. (A) The services or commodities are sold to a business that:

      1. (i) relocates all or part of its operations to a facility; or

      2. (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 36-7-14.5-12.5 that is or formerly was a military base (as defined in IC 36-7-30-1 (c)), or a qualified military base enhancement area established under IC 36-7-34 .

   2. (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 relocated to the facility, or expanded in the facility, commence.
   3. (C) The sales of the services or commodities are separately metered for use by the relocated or expanded operations.

   4. (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:

      1. (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 ).
      2. (ii) The business is a United States Department of Defense contractor.
      3. (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.

   5. (E) In the case of a business that uses the services and 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:

      1. (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 ).

      2. (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.

As added by P.L.137-2022, SEC.24. Amended by P.L.11-2023, SEC.24; P.L.194-2023, SEC.2; P.L.23-2026, SEC.34.