Solar energy systems used for heating or cooling: out-of-pocket expenditures by the owner for the components and labor
Wind, hydroelectric, geothermal, solar thermal, solar PV, and other solar energy systems: the assessed value of the system
The property tax exemption is allowed every year that a qualifying system functions. Under H.B. 1234, renewable energy systems installed after December 31, 2014 are no longer eligible for a property tax exemption if the ownership of the property changes.
Public utilities and other electricity retailers (excluding net metered customers) may not claim a property tax exemption for wind or solar power devices.
Property owners that wish to claim this deduction must fill out Form 18865 and file it with the local county auditor. Questions about this incentive should be directed to the local auditor or assessor. Click here to find contact information for local officials. The Department of Local Government Finance outlines the incentive.
* Solar energy heating or cooling systems include solar energy systems used for domestic hot water and space heating, including heating of swimming pools, as well as industrial pre-heating.