Tax Incentives
State Tax Credits
State Tax Credit for EnergyStar No Longer Available
From the Indiana Department of Revenue:
FOR IMMEDIATE RELEASE
Contact: Stephanie McFarland, APR
(317) 234-3793
Energy Star Credit Has Reached Its Cap
INDIANAPOLIS (March 3, 2011) – The Indiana Department of Revenue announced today that as of March 1, 2011, claims toward the Energy Star Heating & Cooling Equipment Credit had reached the state’s $1 million limit, which the legislature assigned to cover claims toward this credit. Any claims received after the cap was reached will be denied.
A denial of the claim will result in a manual adjustment to the taxpayer’s return. This could cause a slight delay in processing those returns. Those taxpayers’ whose claims have been denied will be notified in writing from the state revenue agency.
Tax year 2010 was the last year to claim the Energy Star Heating & Cooling Equipment Credit.
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State Tax Deductions
From the Indiana Department of Revenue (IDOR):
Insulation Tax Deduction (via IC 6-3-2-5)
The State of Indiana offers a tax deduction, up to $1000, for the purchase and installation of residential insulation.
For more information, please see IDOR’s Information Bulletin #43
http://www.in.gov/dor/reference/files/ib43.pdf
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 IDOR’s Information Bulletin #105
http://www.in.gov/dor/reference/files/ib105.pdf
Other Incentives
Energy EfficiencyEPA 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.
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, http://www.in.gov/dlgf.
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, http://www.in.gov/dlgf.
Federal Program
Visitors to Washington, D.C. for President-elect Obama's Inauguration viewed residential-scale wind turbines on display at the U.S. Botanical Gardens on the Mall. Today's small wind turbine systems, large enough to power an average home, cost about $30,000, with some systems ranging from $10,000 to $70,000.
The good news is that a federal-level investment tax credit (ITC) is now available to consumers wanting to purchase small wind turbines for home, farm or business use. Owners of small wind systems with 100 kilowatts (kw) of capacity and less can receive a credit for 30 percent of the total installed cost of the system. 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.
Business and Industrial Tax Credits
Additional tax credit programs can be found by visiting the Indiana Economic Development Corporation.
