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SUBJECT: Energy Star Heating and Cooling Equipment Tax Credit

REFERENCE: IC 6-3.1-31.5

INTRODUCTION

Effective for taxable years beginning after December 31, 2008 through December 31, 2010 there is a tax credit for energy star heating and cooling equipment purchased by an individual or a small business which is independently owned with less than 100 employees and less than $10,000,000 in annual gross receipts.

DEFINITIONS

ENTITLEMENT TO THE CREDIT

A taxpayer is entitled to a credit for a taxable year equal to the lesser of 20% of the amount of the expenditures for energy star heating and cooling equipment or $100. The amount of the credit may not exceed a taxpayer's state tax liability, and a taxpayer is not entitled to a carry back, carry forward or refund of any unused credit. A taxpayer may not sell, assign, convey or otherwise transfer the tax credit.

If the taxpayer is a pass through entity that does not have any state tax liability, the credit shall be allocated to the partners, shareholders or members of the pass through entity.

MAXIMUM CREDITS ALLOWED

The total amount of tax credits allowed for all taxpayers in a fiscal year may not exceed $1,000,000. The taxpayer must claim the credit on the taxpayer's annual tax return and submit proof that the taxpayer is entitled to the credit.

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John Eckart

Commissioner

Posted: 08/01/2007 by Legislative Services Agency