Sec. 10.5. (a) Transactions occurring on or after May 1, 2021, involving tangible personal property are exempt from the state gross retail tax, if:

(1) the property is classified as a utility scale battery energy storage system as defined in subsection (b);

(2) the person acquiring the property is:

(A) a public utility that furnishes or sells electrical energy; or

(B) a power subsidiary (as defined in IC 6-2.5-1-22.5) that furnishes or sells electrical energy to a public utility described in clause (A); and

(3) the person acquiring the property uses the property to store electrical energy in-front of the customer’s meter.

     (b) As used in this section, a “utility scale battery energy storage system” means a system capable of storing and releasing greater than 1MW of electrical energy for a minimum of one (1) hour utilizing an AC inverter and DC storage, or equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, and superconducting magnets, but does not include foundations or property used to directly or indirectly connect the AC inverter or DC storage of such system to electrical energy production equipment or the customer’s meter.

As added by P.L.159-2021, SEC.4. Amended by P.L.137-2022, SEC.26.