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Energy efficiency is an important part of Indiana's energy future. Energy efficiency actions allow appliances and thermal insulation in homes and businesses do the same amount of work with less energy. Indiana's energy demand has increased over time, and without increased energy efficiency, the cost of these new power plants will be passed onto Indiana residents and business owners in the form of higher utility bills. Higher energy efficiency makes sense economically, and a variety of energy efficiency strategies, ranging from no-cost to low-cost and moderate cost, can save significant amounts of energy both in the home and in the workplace.
Residential Energy Efficiency Tax Credit: Energy efficient home improvements may qualify for a tax credit, and the maximum tax credit for all improvements made is $500. Eligible technology includes the following: water heaters, furnaces, boilers, heat pumps, air conditioners, building insulation, windows, and roofs. This credit expires 12/31/2016. Learn more about the required equipment specification and the specific dollar amounts for each type of equipment here.
Energy Efficient Commercial Buildings Tax Deduction: A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001. Energy savings must be calculated using qualified computer software approved by the IRS. Deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building envelope, or heating and cooling systems meet target levels that would reasonably contribute to an overall building savings of 50% if additional systems were installed. The credit expires 12/31/16. Learn more here.