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

From Open Energy Information


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[1]


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


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.[1]


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