The State of Indiana offers a geothermal property tax deduction [DOCX] for owners and contract buyers of real property or personal property mobile/manufactured homes equipped with a geothermal heating or cooling device. In order to receive this deduction, taxpayers must file a completed Statement for Deduction of Assessed Valuation - State Form 18865 (available on the IDEM Agency Forms page), accompanied by proof of certification, with their county auditor’s office. Information concerning the various steps which must be followed in order to receive this deduction is available from the Indiana Department of Local Government Finance.
- For submittal information, please refer to the Geothermal Division: (317) 232-8670, owqgeoth@idem.IN.gov.
Property Ownership Change
According to IC 6-1.1-12-35.5, Notwithstanding any other law, if there is a change in ownership of real property, or a mobile home that is not assessed as real property:
- that is equipped with a geothermal energy heating or cooling device; and
- whose previous owner received a property tax deduction under section 34 of this chapter for the geothermal energy heating or cooling device prior to the change in ownership; the new owner shall be eligible for the property tax deduction following the change in ownership and, in subsequent taxable years, shall not be required to obtain a determination of qualification from the Department of Environmental Management under subsection (b) and shall not be required to file a certified statement of qualification with the county auditor under subsection (a) to remain eligible for the property tax deduction.
Interested parties can access information concerning geothermal devices that have been certified by the Indiana Department of Environmental Management by visiting the agency’s Virtual File Cabinet and selecting “Document Search.” From there, follow these steps: click on the drop-down menu for “Program” and choose “OWQ;” click on the drop-down menu for “Document Type” and choose “Application;” click on the drop-down menu for “Application Type” and choose “Geothermal Program;” click on “Search.”
Federal Tax Credit Information
- 2022 Federal Tax Credits for Consumer Energy Efficiency (click on "Savings for Homeowners" and, then "Geothermal Heat Pumps")
Other Ways for Homeowners to Get Involved
- Household Waste (HHW)
- Recycle Indiana
- Protecting Children at Child Care
- Choose a childcare facility that is taking steps to protect children from environmental health threats
- Report Environmental Problems in Indiana