Senate Bill 448

Indiana Senate Bill 448 has been signed into law and is effective as of July 1, 2009. The law specifies that enterprise information technology equipment purchased after June 30, 2009, by an eligible business or its transferee, is exempt from personal property taxation for a period agreed to by a local designating body.

The law defines enterprise information technology equipment as:

1. Hardware supporting computing, networking, or data storage functions, including servers and routers
2. Networking systems having an industry designation as equipment within the "enterprise" or "data center" class of networking systems that support the computing, networking, or data storage functions
3. Generators and other equipment used to ensure an uninterrupted power supply to such hardware and networking systems.

The equipment cannot include computer hardware designed for single user, workstation, or departmental level use.

The law defines an eligible business as an entity that meets the following requirements:

1. The entity is engaged in a business that operates one or more facilities dedicated to computing, networking, or data storage activities
2. The entity is located in a facility or data center in Indiana
3. The entity invests in the aggregate at least $10,000,000 in personal property and real property in Indiana after June 30, 2009
4. The average employee wage of the entity is at least 125% of the county average wage for each county in which the entity conducts business operations.

For more information about Senate Bill 448, visit the State of Indiana website.