House Bill 1369 Summary

• Expands the sales tax exemption for research and development property to include any tangible personal property (not limited to specified equipment types like laboratory equipment, computers, and testing equipment) used for research and development activities.

• Exempts retail transactions involving the expanded research and development property from state gross retail tax when delivery occurs after June 30, 2012.

• Increases the percentage used to calculate contract research expenses for Indiana college research from 65% to 100% under Section 41(b) of the Internal Revenue Code for expenses paid or incurred after December 31, 2011.

• Defines "Indiana college research" as qualified research conducted in Indiana after December 31, 2011, by a state educational institution or approved postsecondary educational institution.

• Effective January 1, 2012 (retroactive) and July 1, 2012.