(Indiana) Renewable Energy Property Tax Exemption

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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.

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 § 6-1.1-12-26 et seq. 
1975 (subsequently amended)
Authority 2:
Date Enacted:
Date Effective:
H.B. 1072
03/19/2012
01/01/2012
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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