Indiana

Data center sales-and-use tax exemption

Incentive or explicitly supportive policy

In effect This instrument is recorded as currently in effect as of the dataset date.

In plain English

Who it affects: Applies to operators of a qualified data center. The Indiana Economic Development Corporation's fact sheet says a center must reach a minimum investment within 5 years of receiving its exemption certificate: $25 million in counties under 50,000 people, $100 million between 50,000 and 100,000, and $150 million at 100,000 or more.

What it changes: The fact sheet says operators can buy qualifying equipment and energy free of sales and use tax for up to 25 years, or up to 50 if the Corporation awards it for an investment exceeding $750 million. Each project is evaluated individually, and the Corporation must approve planned equipment purchases first. Operators report every calendar year during the contract.

Easy to misread: The personal property tax exemption is separate: the fact sheet says local governments may also provide it to data center owners who invest at least $25 million in real and personal property in the facility.

About these figures: These figures come from an undated agency fact sheet whose file properties show a last change on 1 November 2023, before the 2025 and 2026 acts recorded separately, so they may not be current.

  • Minimum investment, counties with less than 50,000 people: $25 million (Eligibility)
  • Minimum investment, counties between 50,000 and 100,000 people: $100 million (Eligibility)
  • Minimum investment, counties with 100,000 or more people: $150 million (Eligibility)
  • Time to reach the minimum: Within 5 years of receiving an exemption certificate from the Department of Revenue (Eligibility)
  • Longest exemption: Not to exceed 25 years for investments of less than $750 million; up to 50 years if the investment exceeds $750 million (Description)
  • Yearly report: Detailed line-item report of eligible expenditures and tax not paid, verified by an independent third party (Reporting Requirements)

Written from Indiana Economic Development Corporation fact sheet, Data Center Sales Tax Exemption (undated), read on 3 November 2026. A reading aid, not legal advice. The document controls.

Summary

As reviewed on 23 September 2026, Indiana Code 6-2.5-15 in the official 2026 Indiana Code still provides a state sales and use tax exemption for qualified data center equipment, including electricity used by that equipment, under certificates issued by the Indiana Economic Development Corporation. A certificate lasts not more than 25 years, or up to 50 years for a qualified data center user whose qualified investment is $750 million or more. The 2025 act extending the chapter to quantum and advanced computing networks and the 2026 act adding a local payment of up to 1 percent on electricity for newly permitted and certified data centers are recorded separately. No 2026 act pausing or ending new certificates was found in the official 2026 session laws. The 25-year and 50-year figures are maximum certificate terms, so no single expiration is stored.

Scope

Indiana Code 6-2.5-15, as printed in the official Indiana Code 2026, exempts from the state gross retail tax the sale of qualified data center equipment (a term that includes electricity used by that equipment, other than for administration) sold to an approved qualified data center user and located in a qualified data center. The Indiana Economic Development Corporation issues specific transaction award certificates, which expire not later than 25 years after issuance, or, for a qualified data center user, 50 years if the qualified investment is $750,000,000 or greater. A qualified data center must reach a minimum qualified investment within five years of $150 million, $100 million or $25 million depending on county population. Since 1 July 2026, section 15.5 requires a local payment of not more than 1 percent of the unpaid sales and use tax on electricity for data centers whose local permit and certificate are both issued after 30 June 2026. The corporation's program page describes the same exemption for equipment and energy for up to 25 years, or up to 50 years where the investment exceeds $750 million, and says local governments may provide a separate personal property tax exemption; that local exemption is not a statewide requirement.

Geographic scope
Indiana
Jurisdiction
State
Authority type
Government agency
Issuing authority
Indiana Economic Development Corporation

Dates

Adopted
No adoption day is recorded
Effective
Several dates apply; see the source
Scheduled expiration
See completion condition
Ended
Not recorded as ended
Completion condition
The page describes a certificate period not to exceed 25 years, or up to 50 years if the investment exceeds $750 million. Those are maximum award terms, not one program-wide end date.
Source document
The source page states no document date
Last checked
3 November 2026
About this date

This record was last checked before the tracker date, 11 November 2026. An earlier check date does not by itself mean the record's status has changed.

What this does not establish

  • The primary source is the administering agency's program page; the statute, Indiana Code 6-2.5-15 as printed in the official Indiana Code 2026, was opened on 23 September 2026 and is listed as a supporting source.
  • The statute sets the 50-year maximum for a qualified data center user whose qualified investment is $750,000,000 or greater; the program page says the investment must exceed $750 million.
  • Since 1 July 2026, section 15.5 (P.L.157-2026) adds a local payment condition for data centers whose local permit and certificate are both issued after 30 June 2026; that amendment is recorded separately, as is the 2025 amendment (P.L.178-2025).
  • The official Acts of Indiana 2026 were searched for 'data center' on 23 September 2026; no act pausing or ending new certificates was found. This is a search result, not a clearance.
  • News items on the same agency page about appointments and other industries are not part of this exemption.
  • The statute could not be re-opened on 3 November 2026, so what this record says of it still rests on the 23 September 2026 reading.

Unresolved questions

  • The program page does not yet describe the section 15.5 local payment condition.
  • The page does not list current certificate holders.

Relationships

Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.

Sources

Primary source: Indiana Economic Development Corporation page on iedc.in.gov

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