Rep. Jeff Thompson

INDIANA ACTION ALERT for HB 1234

Contact your state representative via email today

and/or call  800-382-9841 or 800-382-9842.

HB 1234 is on 3rd reading and final passage

in the House on Monday, Feb. 3  at 10 am.

One of Indiana's only financial incentives for residential tax payers who have solar, wind and geothermal energy systems is the ability NOT TO BE PENALIZED by paying higher property taxes resulting from an increase in their assessed value of the property after installing one of these renewable energy systems. This is now in jeopardy and it could get worse.

HB 1234 will reduce this meager financial incentive by 50%!

Ask your Indiana State Representative to oppose HB 1234 as currently written and/or tell them to ask Rep. Jeff Thompson to amend the bill if it moves to the Indiana State Senate to remove this language which will hamper solar, wind and geothermal systems for residential tax payers.

DSIREUSA Explanation of current incentive.

If HB 1234 is authored by Rep. Jeffrey Thompson (R-Lizton) See http://www.in.gov/legislative/house_republicans/homepages/r28/bio.htm

If Rep. Jeff Thompson is your state legislator, please contact him h28@iga.in.gov or (317) 232-9790 (office) or (317) 994-6329 (in district).

To find out who your state representative is visit:

 http://iga.in.gov/legislative/2014/legislators/

Here is part of the Synopsis for HB 1234

Synopsis: Property tax matters. Provides that for residential real
property or a mobile home that is not assessed as real property and that
is equipped with a solar, wind, geothermal, or hydroelectric heating or
cooling system, the assessed value of the property is not to be increased
if the improvement replaces a traditional heating or cooling system.
Changes the assessed value deduction amounts from 100% to 50% of
the out-of-pocket costs for solar, wind, geothermal, and hydroelectric
devices that are placed on residential property.

 

SECTION 2. IC 6-1.1-4-43 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
12 JANUARY 1, 2015]: Sec. 43. The assessed value of residential real
13 property or a mobile home that is not assessed as real property is
14 not to be changed as a result of an improvement that:
15 (1) consists of a solar, wind, geothermal, or hydroelectric
16 heating or cooling system; and (2) replaces an existing heating or cooling system.

...

 28    (e) The percentage to be used in this section for:
29 (1) residential real property or a mobile home that is not
30 assessed as real property is fifty percent (50%); and
31 (2) any property not covered by subdivision (1) is one hundred
32 percent (100%).

Download a copy of HB 1234 HERE >

HB1234.03.ENGH

The Fiscal Impact Statement for HB 1234 states:

Summary of Legislation: (Amended) Energy Systems: The bill provides that for residential real property or a mobile home that is not assessed as real property and that is equipped with a solar, wind, geothermal, or hydroelectric heating or cooling system, the assessed value of the property is not to be increased if the improvement replaces a traditional heating or cooling system. It also changes the assessed value deduction amounts from 100% to 50% of the out-of-pocket costs for solar, wind, geothermal, and hydroelectric devices that are placed on residential property.

...

Explanation of Local Revenues: Energy Systems - Assessments: Under this provision, an assessor would be prohibited from changing the assessed value of residential property if an existing heating or cooling system is replaced with a solar, wind, geothermal, or hydroelectric heating or cooling system. If the new system is worth more than the old system, then this provision would result in a loss of new assessed value.

Energy Systems - Deductions: This provision would shift part of about $2 M in net property tax to owners of energy systems from other taxpayers. The other part of the $2 M represents a possible reduction in circuit breaker losses for some local civil units and school corporations. For residential property, this provision would limit the deduction for solar, wind, geothermal, and hydroelectric devices to 50% of the system's cost. Currently, all property owners may deduct 100% of the system cost from the property's AV.
For taxes payable in 2013 (2012 in LaPorte County), there were 2,080 residential deductions for solar and wind systems, totaling $32.1 M. There were also 10,728 residential deductions for hydroelectric and geothermal systems, totaling $146.9 M. The total residential deduction for all energy systems was $179.1 M, or 72% of the total for energy systems deductions claimed by the owners of both residential and nonresidential property.

Under the bill, deductions would decline by $89.5 M and the tax base would rise by that amount. At an average residential tax rate, this AV equates to about $2 M in net tax.

Download the Fiscal Impact Statement HERE >

HB1234.02.COMH.FN001

Of you have any questions or need additional information, please contact Laura.Arnold@IndianaDG.net or call (317) 635-1701.