Introduced Version




Citations Affected: IC 6-3-2-20 .

Synopsis: Tax deduction for energy efficient items. Establishes an income tax deduction for a taxpayer who purchases for personal use certain energy efficient electrical appliances, heating and cooling products, or fuel cells. Makes the amount of the deduction the lesser of: (1) the cost of the purchase, delivery, and installation of one or more specified items; or (2) $1,000. Establishes requirements for claiming the deduction.

Effective: January 1, 2003 (retroactive).

Ayres, Aguilera, Ruppel

    January 23, 2003, read first time and referred to Committee on Ways and Means.


First Regular Session 113th General Assembly (2003)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3-2-20; (03)IN1934.1.1. -->     SECTION 1. IC 6-3-2-20 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]: Sec. 20. (a) As used in this section, "taxpayer" includes an individual filing an individual return or a husband and wife filing a joint return.
    (b) A taxpayer is entitled to a deduction from the taxpayer's adjusted gross income for a particular taxable year if, during that taxable year, the taxpayer purchases for use in the taxpayer's residence any of following:
        (1) Any of the following electrical appliances or heating and cooling products that meet or exceed the applicable Energy Star efficiency standards developed by the United States Environmental Protection Agency and the United States Department of Energy:
            (A) Clothes washer.
            (B) Refrigerator.
            (C) Dishwasher.
            (D) Room air conditioner.
            (E) Dehumidifier.
            (F) Boiler.
            (G) Central air conditioner.
            (H) Electric air source heat pump.
            (I) Furnace.
            (J) Geothermal heat pump.
            (K) Programmable thermostat.
        (2) A natural gas heat pump that has a coefficient of performance of at least 1.25 for heating and at least 0.70 for cooling.
        (3) An electric heat pump that has a heating season performance factor of at least 7.5 and a cooling seasonal energy efficiency ratio of at least 13.5.
        (4) An electric heat pump hot water heater that has an energy factor of at least 1.7.
        (5) An advanced natural gas water heater that has an energy factor of at least 0.65.
        (6) A central air conditioner that has a cooling seasonal energy efficiency ratio of at least 13.5.
        (7) A fuel cell that:
            (A) generates electricity and heat by using an electrochemical process;
            (B) has an electricity only generation efficiency greater than thirty-five percent (35%); and
            (C) has a generating capacity of at least two (2) kilowatts.
    (c) The amount of the deduction allowed under this section in a particular taxable year is the lesser of:
        (1) the total amount the taxpayer pays for:
            (A) one (1) or more items described in subsection (b); and
            (B) the delivery and installation of one (1) or more items described in subsection (b); or
        (2) one thousand dollars ($1,000).
    (d) To obtain a deduction under this section, a taxpayer must claim the deduction on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer must submit to the department proof of the taxpayer's cost for the purchase, delivery, and installation of all items used by the taxpayer to claim a deduction under this section.

SOURCE: ; (03)IN1934.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)] IC 6-3-2-20 , as added by this act, applies only to taxable years beginning after December 31, 2002.
SOURCE: ; (03)IN1934.1.3. -->     SECTION 3. An emergency is declared for this act.