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Tax Incentives
Indiana Tax Incentives
Insulation Tax Deduction (via IC 6-3-2-5)
The State of Indiana offers a tax deduction of up to $1000 for the purchase and installation of residential insulation. For more information, please see Indiana Department of Revenue’s Information Bulletin #43.
Solar Powered Roof Vents/Fans Deduction (via IC 3-6-2-3.5)
Beginning in 2009, the State of Indiana offers a tax deduction for the purchase and installation of solar powered roof vents or fans. The amount of the deduction is equivalent to the lesser of either 50% of the installed cost or $1000. For more information, please see Indiana Department of Revenue’s Information Bulletin #105
Solar and Wind Technologies
Indiana offers a state property tax deduction for the installation of solar or wind technologies. A form is required that is available here (look for the DLGF section "Deduction Forms" at the bottom of the page). For more information please contact your county tax office or the Indiana Department of Local Government Finance.
E85 and Biodiesel Tax Credit Forms
The Indiana Department of Revenue provides the forms for E85 and Biodiesel tax credits.
Geothermal Technologies
Indiana offers a state property tax deduction for the installation of geothermal technologies. A form is required that is available here (look for the DLGF section "Deduction Forms" at the bottom of the page). For more information please contact your county tax office or the Indiana Department of Local Government Finance.
Business and Industrial Tax Credits
Additional tax credit programs can be found by visiting the Indiana Economic Development Corporation.
County, City, and Utility Incentives
A database by Energy.gov provides information on local incentives offered by Indiana counties, cities, and utilities. The database sorts information by location, technology, or sector.
Federal Incentives
Residential Renewable Energy Tax Credit
A federal-level investment tax credit (ITC) is now available to consumers wanting to purchase small wind turbines, solar panels, or geothermal heat pumps. The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from Oct. 3, 2008 through Dec. 31, 2016. The credit covers 30% of the equipment cost, though some technologies have a credit cap of $2000. More details and a complete list of eligible technologies can be found here.
Business Energy Investment Tax Credit
A federal investment tax credit (ITC) is available for commercial, industrial, utility, and agricultural sectors who purchase solar, wind, biomass, geothermal, or fuel cell technologies. The credit ranges from 10% - 30% and generally applies to equipment installed on or before December 31, 2016. More details and a complete list of eligible technologies can be found here.
Energy Efficiency
EPA provides tax credits and incentives for various projects involving efficiency and efficiency measures for both consumers, home-owners and businesses. These are provided by the Energy Policy Act of 2005.
Homeowners and Home Builders
- Summary of Tax Credits for Homeowners
- IRS Notice 2006-26
- Tax Credits for Home Builders
- IRS Notice 2006-27
- IRS Notice 2006-28
Tax Credits for Appliance Manufacturers
Tax Deductions for Commercial Buildings
Links
Alternative Fuels
Federal Income Tax Credits exist for the installation of alternative fuel systems. The infrastructure development provision was part of the 2005 Energy Policy Act and provides a 30% federal income tax credit, up to $30,000 per property, to install alternative fuel dispensing systems.
