Sales and Use Tax Exemption for Electrical Generating Equipment (Indiana)
Summary
Last modified on February 12, 2015.
Financial Incentive Program
Place | Indiana
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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] |
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 |
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Department | Indiana Department of Revenue
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Phone | (317) 233-4015
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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)
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Authority 2: | IC 6-2.5-3-4(a)
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Authority 3: | 45 IAC 2.2-5-8(c)
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Authority 4: | Revenue Ruling #2009-06ST |
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Date Enacted | 2009-06-10
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- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]
References
- ↑ 1.0 1.1 "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid
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