Construction safety equipment and materials purchase transactions remain tax exempt with the passage of the 2021 Senate Enrolled Act (SEA) 383 which became effective on July 1. ICI worked with Indiana Department of Revenue (DOR) leadership during 2020 which laid the ground work for an opportunity to propose an amendment to Indiana Code during the 2021 Indiana legislative session. SEA 383 created a statutory exemption (IN Code 6-2.5-5-55) for Indiana state sales tax for purchases of safety related equipment and materials purchased for public works construction contracts.
Previously, exemption language was solely published in the DOR’s Information Bulletin #60 up until 2017. The DOR published a revised IB #60 on July 28, 2021. The exemption applies to purchases of equipment such as barrels, barricades, temporary signs, temporary erosion control and drainage materials, but does not apply to purchases of personal protective equipment such as gloves, face masks and high visibility clothing.
Please contact Dan Osborn with general questions about this topic. Consult with a ICI member tax or legal professional for technical assistance and advice.