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Indiana

Indiana

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Property Tax Exemption   

Last DSIRE Review: 03/06/2013
Program Overview:
State: Indiana
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Wind, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Solar Pool Heating, Geothermal Direct-Use
Applicable Sectors: Commercial, Industrial, Residential
Amount:Solar Thermal and Solar Space Heat installed before 2012: Out-of-pocket expenditures by the owner for the components and labor
Wind, Hydroelectric, and Geothermal: The value of the device
Solar Thermal, Solar PV, and other Solar Energy Systems installed after 2011: The value of the device
Start Date:03/01/2010
Web Site: http://www.in.gov/oed/2379.htm
Authority 1:
Date Enacted:
Ind. Code ยง 6-1.1-12-26 et seq.
1975 (subsequently amended)
Summary:

In Indiana, systems that generate energy using solar, wind, hydropower or geothermal resources -- including geothermal heat pumps -- are exempt from property tax. (The definition of "solar" is restricted to active solar systems used for heating or cooling.*) The exemption is allowed every year that a qualifying system functions. Significantly, the entire renewable energy system and affiliated equipment that is unique to the system, including equipment for storage and distribution, are exempt from property tax. The exemption applies to both real property and mobile homes equipped with renewable energy systems and may only be claimed by property owners. In April 2011, Indiana enacted S.B. 481, which specifically prohibits public utilities and other electricity retailers from claiming the exemption on wind power devices. Net metering customers can still claim the exemption.

In March 2012, solar PV was added to the list of technologies eligible for property tax exemption. For any solar thermal, photovoltaic, and other solar energy systems installed after December 31, 2011, the assessed value of the system is exempt from property taxes.

Property owners that wish to claim this deduction must fill out Form 18865 and file it with the local county auditor. Questions about this incentive should be directed to the local auditor or assessor. Click here to find contact information for local officials. The Department of Local Government Finance outlines the incentive.

*In March 2010, H.B. 1068 modified the definition of solar and specified that solar systems for domestic hot water and space heating, including heating of swimming pools, as well as industrial pre-heating to be included. The law also specifies directly the amount of the exemption is the out-of-pocket expenses for components and labor directly related and unique to the solar system.


 
Contact:
  Find Your Local Assessor
Indiana Department of Local Government Finance
Indianapolis, IN 46204
Web Site: http://www.in.gov/dlgf/2440.htm
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.