IN HB1340

Exempts from Indiana state sales tax the sale of electrical energy, natural or artificial gas, water, steam, and steam heating service by public utilities or power subsidiaries to commercial and domestic consumers, effective July 1, 2026

Repeals IC 6-2.5-4-5, which currently treats public utilities and power subsidiaries as retail merchants making taxable retail transactions when furnishing these utility services

Removes the definition of "unitary transaction" as it applies to public utility commodities and services billed on a single statement

Eliminates the retail merchant collection allowance for utility providers described in IC 6-2.5-4-6, meaning telecommunications providers would no longer receive compensation for collecting and remitting sales tax

Makes conforming amendments to multiple sections of Indiana Code including exemptions for government entities, data centers, and tax confidentiality provisions to reflect the new utility exemption structure