Section 50IAC5.1-12-2. Air pollution control exemption

   (a) Personal property owned by a public utility company may qualify for exemption as an air pollution control system if:

(1) it is part of a stationary or unlicensed mobile air pollution control system of a:

(A) private manufacturing;

(B) fabricating;

(C) assembling;

(D) extracting;

(E) mining;

(F) processing;

(G) generating;

(H) refining; or

(I) other;

industrial facility;

(2) it is not primarily used in the production of property for sale;

(3) it is employed predominantly in the operation of an air pollution control system;

(4) the air pollution control system is designed and used for the improvement of public health and welfare by the prevention or elimination of air contamination caused by industrial waste or contaminants;

(5) a sanitary treatment or elimination service for the waste or contaminants is not provided by public authorities; and

(6) it is acquired for the purpose of complying with any state, local, or federal environmental quality statutes, regulations, or standards.

  (b) The property that is exempt under this section includes the following personal property:

(1) Personal property that is under construction or in the process of installation and that will be used for the purposes described in subsection (a) when placed in service.

(2) Spare parts held exclusively for installation in or as part of personal property that qualifies for the exemption under this section.

  (c) Generally, personal property such as paint spray booths or dust collectors do not qualify for exemption under this section, since they are primarily used to remove particulates, dust, or fumes from the work area and/or in the production of property for sale. Dust collecting baghouses or stack scrubbers which are primarily designed and used to prevent or eliminate pollutant contamination of the air outside of, or away from, the production plant generally would qualify for exemption since such systems primarily benefit the general public. The specific facts and circumstances of each taxpayer's equipment and operations must be considered in determining whether each item of property qualifies under this section.

  (d) The amount of the exemption claimed is specifically limited to the value of the personal property that is attributable to the stationary or unlicensed mobile industrial air purification system. (Department of Local Government Finance; 50 IAC 5.1-12-2; filed Dec 15, 1993, 5:00 p.m.: 17 IR 967; reinstated by IC 6-1.1-8-44, eff Jul 1, 2003)