§305.12. Exemptions; software and digital products; business use; healthcare use

            A.(1) The sales and use tax imposed by taxing authorities shall not apply to computer software or prewritten computer software access services, information services, or digital products when all of the following conditions are met:

            (a) The service or product is purchased or licensed exclusively for commercial purposes.

            (b) The service or product is used by the business directly in the production of goods or services for sale to its customers.

            (c) The goods or services produced and sold by the business are subject to sales and use tax or to the insurance premium tax.

            (2) The exemption provided in this Subsection shall not apply to computer software or computer software access services not directly involved in the production of goods or services for the customers of the business.

            B. The use tax imposed by taxing authorities shall not apply to the use of digital products that are created solely for the business needs of the person who created the digital products and are not the type of digital products that are offered for sale.

            C. Digital products, prewritten computer software access services, and information services purchased and used by an FDIC-insured financial institution for storing, transmitting, processing, or analyzing customer and account information, facilitating transactions, account processes, investment processes, lending processes, security, and compliance shall be exempt from sales and use tax imposed by taxing authorities. This exemption shall also apply to an FDIC-insured financial institution's holding company, subsidiaries, and affiliates, and to a service corporation wholly owned by one or more FDIC-insured financial institutions.

            D. The sales and use tax imposed by taxing authorities shall not apply to digital products that are used by licensed healthcare facilities and providers for storing or transmitting healthcare information or for the diagnosis or treatment of a medical condition.

            Acts 2024, 3rd Ex. Sess., No. 10, §1, eff. Dec. 4, 2024.