IN HB1171

Expands sales tax exemption for research and development property to include any tangible personal property directly or indirectly used for research and development activities, effective July 1, 2013.

Defines "research and development property" as unused tangible personal property acquired for experimental or laboratory research on new products, new uses of existing products, or improving/testing existing products.

Exemption applies regardless of whether the property is used directly or indirectly in research and development, and regardless of whether the purchaser is a manufacturer or seller of the products being researched.

Maintains existing exemption for research and development equipment (laboratory equipment, computers, software, telecommunications equipment, and testing equipment) for transactions between July 1, 2007 and June 30, 2013.

Repeals a previous provision that allowed a 50% refund of gross retail tax on research and development equipment purchased between July 1, 2005 and June 30, 2007.