Energy Savings Tax Credit (Corporate)

May 17, 2011

Summary

Indiana offers a tax credit to individuals and small businesses for the costs associated with purchasing Energy Star qualified air conditioners, furnaces, programmable thermostats and water heaters (collectively heating and cooling equipment). The credit may be claimed against the state income tax, insurance premium tax, or financial institutions tax. The amount of the tax credit is set at 20% of the expenditures for qualified heating and cooling equipment up to $100 per taxable year. Credits in excess of a taxpayer's liability for a given year may not be refunded, carried over to succeeding years, or carried back to prior years.

Pass through entities such as partnerships and limited liability corporations (LLC) are permitted to pass the tax credit to individual partners or shareholders based on the individual's share of the entity's distributable income. Individuals using this option remain entitled to take an additional tax credit for their own personal qualified energy savings expenditures, but may not take more than one tax credit for the same project.

It is important to note that the energy savings tax credit can only be claimed for the 2009 and 2010 tax years. The total value of all credits granted under this law cannot exceed $1 million per fiscal year.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Indiana
Incentive Type:	Corporate Tax Credit
Web Site:	http://www.in.gov/dor/reference/files/ib100.pdf
Administrator:	Indiana Department of Revenue
Start Date:	01/01/2009
Eligible Renewable/Other Technologies:	Water Heaters Furnaces Air conditioners Programmable Thermostats
Incentive Amount:	20% of qualified expenditures
Maximum Incentive:	$100 per taxable year
Equipment Requirements:	Equipment must be Energy Star qualified
Carryover Provisions:	Carryover not permitted

Authorities

Name:	Ind. Code Â§ 6-3.1-31.5
Date Enacted:	05/04/2007
Effective Date:	01/01/2009
Expiration Date:	12/31/2010

Contact

Name:	Public Information
Organization:	Indiana Department of Revenue
Address:	100 N Senate Ave Indianapolis IN 46204
Phone:	(317) 232-2240
Email:	individualtaxassistance@dor.in.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.