Sales and Use Tax Exemption for Electrical Generating Equipment (Indiana)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	Indiana
Name	Sales and Use Tax Exemption for Electrical Generating Equipment
Incentive Type	Sales Tax Incentive
Applicable Sector	Commercial, Industrial, Residential
Eligible Technologies	Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Program Administrator	Indiana Department of Revenue
References	DSIRE

Summary

In Indiana, transactions involving manufacturing machinery, tools, and equipment are exempt from the state gross retail tax if the property is used for the production of tangible personal property, which includes electricity. Therefore, equipment, machinery, and tools used in the production of renewable electricity may also be eligible for this exemption.

In 2009, the Indiana Department of Revenue (DOR) issued a ruling specifically for wind turbines, clarifying that the foundation, tower, nacelle, gearbox, generator, yaw motors, blades and related component parts are all exempt from the state sales and use tax. However, the DOR ruled that that any "property which consists of or becomes part of a transformer in an electrical interconnection system for a wind turbine" are taxable.

The DOR has not ruled on the specific components of other renewable energy systems.

Incentive Contact

Contact Name	Sales Tax Contact
Department	Indiana Department of Revenue
Phone	(317) 233-4015
Website	http://www.ai.org/dor/3325.htm

Authorities (Please contact the if there are any file problems.)

Authority 1:	IC 6-2.5-5-3(b)

Authority 2:	IC 6-2.5-3-4(a)

Authority 3:	45 IAC 2.2-5-8(c)

Authority 4:	Revenue Ruling #2009-06ST
Date Enacted	2009-06-10

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.