Citations Affected:
IC 6-3-9
Synopsis: Renewable energy tax credit. Provides that a taxpayer who
owns an existing building or purchases a new building is entitled to a
credit against the taxpayer's state tax liability if the taxpayer installs a
qualified energy system in a building located in Indiana. Defines
"qualified energy system" to include solar energy systems, geothermal
systems, hydroelectric systems, and certain energy conservation
measures. Provides that in the case of a qualified energy system
installed in a single family dwelling, the amount of the credit equals the
lesser of: (1) $3,000; or (2) 25% of the costs of the qualified energy
system and its installation. Provides that in the case of a qualified
energy system installed in a building that is not a single family
dwelling, the amount of the credit equals the lesser of: (1) $10,000; or
(2) 25% of the costs of the qualified energy system and its installation.
Provides that any amount of the credit that exceeds a taxpayer's state
tax liability for a taxable year may be carried forward to succeeding
taxable years. Requires the department of commerce to adopt rules for
determining if an energy system is a qualified energy system. Requires
a taxpayer to obtain a qualified energy system certificate from the
department of commerce in order to claim the credit for a particular
energy system.
Effective: Upon passage; January 1, 2002.
January 11, 2001, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
liability for the year during which the qualified energy system is
installed.
(b) Except as provided in subsection (c), the amount of the credit
a taxpayer is entitled to under this chapter is determined in STEP
THREE of the following formula:
STEP ONE: Add:
(A) the costs paid by the taxpayer for the qualified energy
system; to
(B) the amount paid for its installation and the materials
used in its installation.
STEP TWO: Reduce the amount determined under STEP
ONE by any amounts that the taxpayer received as a grant
from any public entity for installing the qualified energy
system.
STEP THREE: Determine the lesser of:
(A) three thousand dollars ($3,000); or
(B) the amount determined under STEP TWO multiplied
by twenty-five hundredths (0.25).
(c) This subsection applies if the qualified energy system is
installed in a building that is not a single family dwelling. The
amount of the credit that a taxpayer is entitled to under this
chapter is determined in STEP THREE of the following formula:
STEP ONE: Add:
(A) the costs paid by the taxpayer for the qualified energy
system; to
(B) the amount paid for its installation and the materials
used in its installation.
STEP TWO: Reduce the amount determined under STEP
ONE by any amounts that the taxpayer received as a grant
from any public entity for installing the qualified energy
system.
STEP THREE: Determine the lesser of:
(A) ten thousand dollars ($10,000); or
(B) the amount determined under STEP TWO multiplied
by twenty-five hundredths (0.25).
Sec. 7. (a) The amount of the credit provided by this chapter
that a taxpayer uses during a particular taxable year may not
exceed the taxpayer's state tax liability for that taxable year. If the
credit provided by this chapter exceeds a taxpayer's state tax
liability for the taxable year for which it is first claimed, then the
excess may be carried over to succeeding taxable years and used as
a credit against the taxpayer's state tax liability for those taxable
years. The amount of the credit carryover from a taxable year shall
be reduced to the extent that the carryover is used by the taxpayer
to obtain a credit under this chapter for any subsequent taxable
year. The credit provided by this chapter may be carried over until
it is completely used.
(b) If a credit is carried over and used in a later taxable year
under subsection (a), the taxpayer claiming the credit must provide
the department with proof that the taxpayer is entitled to the
carryover amount.
Sec. 8. Except in the case of a husband and wife filing a joint
return, if there is more than one (1) taxpayer who owns a building
for which a qualified energy system is installed, each taxpayer may
use the credit provided by this chapter in proportion to the
taxpayer's ownership interest in the building. In the case of a
husband and wife who own a building jointly and who file separate
tax returns, each may claim the credit in equal shares or either of
them may claim the entire credit.
Sec. 9. If an energy device is used in conjunction with two (2) or
more qualified energy systems, the credit allowed under this
chapter for the energy device may be:
(1) claimed for any one (1) of the qualified energy systems; or
(2) divided equally among all of the qualified energy systems.
Sec. 10. A home builder may not claim a credit under this
chapter for the installation of a qualified energy system in a home
that the home builder has constructed for sale or has caused to be
constructed for sale. However, the original purchaser of the home
may claim the credit under this chapter. The original purchaser
must first claim the credit for the taxable year during which the
purchaser acquires legal title to the home.
Sec. 11. (a) Except as provided in subsection (b), the department
shall adopt rules under
IC 4-22-2
to implement this chapter.
(b) The department of commerce shall adopt rules for
determining performance and quality standards for determining
if an energy system is a qualified energy system.
Sec. 12. (a) In order to claim the credit allowed under this
chapter for a particular energy system, the taxpayer must first file
an application for a qualified energy system certificate with the
department of commerce. The department of commerce shall
prescribe the form and contents of the application.
(b) Upon receipt of an application filed under subsection (a), the
department of commerce shall determine whether the energy
system in question is a qualified energy system. If the department
of commerce determines that the energy system is a qualified
energy system, the department of commerce shall issue a qualified
energy system certificate to the applicant.
Sec. 13. To obtain the credit allowed under this chapter, the
taxpayer must file with the department:
(1) proof of the taxpayer's costs for the purchase and
installation of the qualified energy system;
(2) a list of the persons or corporations that supplied labor or
materials for the installation; and
(3) a qualified energy system certificate issued by the
department of commerce under section 12 of this chapter.
Sec. 14. This chapter expires January 1, 2011. However, any
portion of the credit that is carried forward to succeeding tax years
may be claimed until the total amount of the credit is used in the
manner provided by section 7 of this chapter.