(1) There is exempt from the use tax imposed by this chapter the fabrication of computer software by a person, or its direct employee, for the person's own use and consumption. The exemption provided by this section shall not apply to computer software that is fabricated by any agent of the person using the computer software unless the agent is also a direct employee of the person. For purposes of this section, the term “direct employee” means an employee to whom the person is obligated to issue a federal form W-2, wage and tax statement, and with respect to whom the person has responsibility for withholding taxes under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101-3126), or such other entity or affiliate that upon petition to the commissioner has been approved as having that responsibility under this section.
(2) There is exempt from the tax imposed by this chapter the access and use of software that remains in the possession of the dealer who provides the software or in the possession of a third party on behalf of such dealer, as described in § 67-6-231(b), where such access and use of the software is solely by a person or such person's direct employee, as defined in subsection (a), for the exclusive purpose of fabricating other software that is both: Owned by that person; and
(3) For that person's own use and consumption.