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Incentives/Policies for Renewables & Efficiency

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Sales and Use Tax Exemption for Electrical Generating Equipment   

Last DSIRE Review: 10/30/2014
Program Overview:
State: Indiana
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other Technologies: Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric
Applicable Sectors: Commercial, Industrial, Residential
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:
Date Enacted:
Revenue Ruling #2009-06ST

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.

  Sales Tax Contact
Indiana Department of Revenue
Phone: (317) 233-4015
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.