Indiana Code Title 35. Criminal Law and Procedure § 35-47-5-10

(1) The ownership, possession, or operation of a machine gun by members of the military or naval forces of the United States, National Guard of Indiana, or Indiana State Guard, when on duty or practicing.

(2) The ownership or possession of machine guns kept for display as relics and which are rendered harmless and not usable.

(3) The ownership, possession, or operation of a machine gun by any of the law enforcement officers of this state or the United States while acting in the furtherance of their duties.

(4) The lawful display, testing, or use of fireworks.

(5) The ownership, possession, or operation of a machine gun by an agency of state government.

(6) The ownership, possession, or operation of a machine gun by persons permitted by law to engage in the business of manufacturing, assembling, conducting research on, or testing machine guns, airplanes, tanks, armored vehicles, or ordnance equipment or supplies while the person is acting within the scope of such business.

(7) The ownership, possession, or operation of a machine gun by persons possessing, or having applied to possess, machine guns under applicable United States statutes.  Such machine guns must be transferred as provided in this article.

(8) The ownership, possession, or operation of a machine gun by persons lawfully engaged in the manufacture, transportation, distribution, use or possession of any material, substance, or device for the sole purpose of industrial, agricultural, mining, construction, educational, or any other lawful use.

(9) The ownership, possession, or operation of:

not required to be registered in the National Firearms Registration and Transfer Record maintained by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives.