| 1 | 1 | | |
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| 2 | 2 | | Introduced Version |
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| 3 | 3 | | HOUSE BILL No. 1219 |
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| 4 | 4 | | _____ |
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| 5 | 5 | | DIGEST OF INTRODUCED BILL |
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| 6 | 6 | | Citations Affected: IC 6-1.1-12-41.4; IC 6-2.5-5-2.5. |
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| 7 | 7 | | Synopsis: Taxation of grain processing equipment. Provides an |
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| 8 | 8 | | assessed value deduction for eligible grain processing equipment equal |
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| 9 | 9 | | to 100% of the assessed value for assessment dates beginning in 2026. |
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| 10 | 10 | | However, limits the deduction to 10 consecutive years in the case of an |
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| 11 | 11 | | owner of the equipment who is a grain buyer or warehouse subject to |
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| 12 | 12 | | licensing by the Indiana grain buyers and warehouse licensing agency. |
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| 13 | 13 | | Provides a sales tax exemption for equipment used in storing, drying, |
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| 14 | 14 | | moving, removing, and handling agriculturally cultivated grain crops. |
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| 15 | 15 | | Effective: July 1, 2025; January 1, 2026. |
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| 16 | 16 | | Culp |
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| 17 | 17 | | January 8, 2025, read first time and referred to Committee on Ways and Means. |
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| 18 | 18 | | 2025 IN 1219—LS 7060/DI 120 Introduced |
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| 19 | 19 | | First Regular Session of the 124th General Assembly (2025) |
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| 20 | 20 | | PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana |
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| 21 | 21 | | Constitution) is being amended, the text of the existing provision will appear in this style type, |
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| 22 | 22 | | additions will appear in this style type, and deletions will appear in this style type. |
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| 23 | 23 | | Additions: Whenever a new statutory provision is being enacted (or a new constitutional |
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| 24 | 24 | | provision adopted), the text of the new provision will appear in this style type. Also, the |
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| 25 | 25 | | word NEW will appear in that style type in the introductory clause of each SECTION that adds |
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| 26 | 26 | | a new provision to the Indiana Code or the Indiana Constitution. |
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| 27 | 27 | | Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts |
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| 28 | 28 | | between statutes enacted by the 2024 Regular Session of the General Assembly. |
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| 29 | 29 | | HOUSE BILL No. 1219 |
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| 30 | 30 | | A BILL FOR AN ACT to amend the Indiana Code concerning |
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| 31 | 31 | | taxation. |
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| 32 | 32 | | Be it enacted by the General Assembly of the State of Indiana: |
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| 33 | 33 | | 1 SECTION 1. IC 6-1.1-12-41.4 IS ADDED TO THE INDIANA |
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| 34 | 34 | | 2 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 35 | 35 | | 3 [EFFECTIVE JANUARY 1, 2026]: Sec. 41.4. (a) As used in this |
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| 36 | 36 | | 4 section, "eligible grain processing equipment" refers to equipment |
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| 37 | 37 | | 5 used exclusively for the drying, handling, and storage of |
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| 38 | 38 | | 6 agriculturally cultivated grain crops, including: |
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| 39 | 39 | | 7 (1) grain bins; |
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| 40 | 40 | | 8 (2) grain dryers; |
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| 41 | 41 | | 9 (3) augers; |
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| 42 | 42 | | 10 (4) grain spreaders; |
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| 43 | 43 | | 11 (5) climate control systems, including fans and heaters; |
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| 44 | 44 | | 12 (6) underfloor unloading systems; |
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| 45 | 45 | | 13 (7) grain sweepers and vacuum equipment; and |
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| 46 | 46 | | 14 (8) aerating and drying floors. |
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| 47 | 47 | | 15 (b) The owner of eligible grain processing equipment that is |
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| 48 | 48 | | 16 assessed as real property or assessed as personal property is |
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| 49 | 49 | | 17 entitled to a deduction from the assessed value equal to one |
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| 50 | 50 | | 2025 IN 1219—LS 7060/DI 120 2 |
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| 51 | 51 | | 1 hundred percent (100%) of the assessed value of the eligible grain |
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| 52 | 52 | | 2 processing equipment for assessments made in 2026 and thereafter, |
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| 53 | 53 | | 3 except as provided in subsections (c) and (d). |
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| 54 | 54 | | 4 (c) In the case of an owner of eligible grain processing |
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| 55 | 55 | | 5 equipment who is a grain buyer or warehouse subject to licensing |
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| 56 | 56 | | 6 under IC 26-3-7, the deduction under this section applies only if: |
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| 57 | 57 | | 7 (1) the eligible grain processing equipment is used at a facility |
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| 58 | 58 | | 8 that accepts delivery of agriculturally cultivated grain crops |
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| 59 | 59 | | 9 directly from farmers; and |
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| 60 | 60 | | 10 (2) the grain buyer or warehouse holds a license issued by the |
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| 61 | 61 | | 11 Indiana grain buyers and warehouse licensing agency under |
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| 62 | 62 | | 12 IC 26-3-7. |
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| 63 | 63 | | 13 (d) In the case of a grain buyer or warehouse described in |
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| 64 | 64 | | 14 subsection (c), the deduction under subsection (b) applies for ten |
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| 65 | 65 | | 15 (10) consecutive taxable years beginning the year the eligible grain |
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| 66 | 66 | | 16 processing equipment is first placed in service. This limitation does |
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| 67 | 67 | | 17 not apply otherwise to taxpayers who are not a grain buyer or |
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| 68 | 68 | | 18 warehouse described in subsection (c). |
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| 69 | 69 | | 19 SECTION 2. IC 6-2.5-5-2.5 IS ADDED TO THE INDIANA CODE |
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| 70 | 70 | | 20 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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| 71 | 71 | | 21 1, 2025]: Sec. 2.5. (a) As used in this section, "commercial purpose" |
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| 72 | 72 | | 22 means a business purpose engaged in by a person for pecuniary |
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| 73 | 73 | | 23 gain. |
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| 74 | 74 | | 24 (b) Transactions involving equipment purchased for the purpose |
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| 75 | 75 | | 25 of storing, drying, moving, removing, and handling agriculturally |
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| 76 | 76 | | 26 cultivated grain crops are exempt from the state gross retail tax if |
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| 77 | 77 | | 27 the equipment is directly used in the drying, handling, and storage |
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| 78 | 78 | | 28 of agriculturally cultivated grain crops for commercial purposes. |
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| 79 | 79 | | 2025 IN 1219—LS 7060/DI 120 |
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