Sales and Use Tax Exemption for Electrical Generating Equipment (Indiana)
Last modified on February 12, 2015.
Financial Incentive Program
|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|
|Energy Category||Renewable Energy Incentive Programs|
|Program Administrator||Indiana Department of Revenue|
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.
|Contact Name||Sales Tax Contact|
|Department||Indiana Department of Revenue|
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|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.