Solar Energy System / Geothermal Device Deduction

A geothermal device is a device, installed after December 31, 1981, designed to use the natural heat from the earth to provide hot water, produce electricity, or generate heating or cooling. The Indiana Department of Environmental Management (IDEM) shall certify whether a geothermal device qualifies for a deduction upon application by the property owner.
Solar energy systems, including solar thermal air systems and any solar energy heating or cooling system, that are used for domestic hot water and/or space heat or preheating for an industrial process. This includes pool heating.

For geothermal devices, the deduction amount equals the remainder of the assessed value of the real property with the geothermal device minus the assessed value of the real property without the geothermal device.
For solar energy systems, the amount of deduction equals the out-of-pocket expenditures by the owner(or a previous owner) of the real property for the component units, and the labor involved in installing the components that are unique to the system is needed to collect, store or distribute solar energy.

Real Property

For geothermal devices, the application or Sales Disclosure Form must be completed and dated by December 31st in the calendar year for which the person wishes to obtain the deduction and filed with accompanying certification with the county auditor on or before January 5 of the immediately succeeding calendar year.
For solar energy systems, the deadline is the same, but IDEM certification is not necessary.

For geothermal devices, the application or Sales Disclosure form must be completed, dated, and filed with accompanying certification with the county auditor during the twelve (12) months before March 31 of each year for which the person wishes to obtain the deduction.
For solar energy systems, the deadline is the same, but IDEM certification is not necessary.

View All