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