Mid-America Energy Resources, Inc. v. Indiana Department of State Revenue

Mid-America Energy Resources (“MAER”) challenges the Department of Revenue’s (“Department”) finding that they do not qualify for the equipment and consumption exemptions as producers of chilled water used to condition air. MAER asserts that its chilling process produces “other tangible personal property” while the Department claims that MAER provides a service. The central issue before this Court is whether MAER’s chilling of water constitutes “direct production” of “other tangible personal property” for purposes of the industrial exemptions.

FACTS

The parties do not dispute the material facts.…