Indiana Code Title 6. Taxation § 6-2.5-5-4

Sec. 4. Transactions involving tangible personal property, including material handling equipment purchased for the purpose of transporting materials into activities described in this section from an onsite location, are exempt from the state gross retail tax if the person acquiring the property acquires it for the person's direct use in the direct production of the machinery, tools, or equipment described in section 2 or 3 of this chapter.