Solar energy system tax credit.
Solar energy system tax credit. Establishes a solar energy system tax credit. Provides that a taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year in which the taxpayer makes a qualified investment in a solar energy system equal to the lesser of: (1) 25% of the qualified expenditures made during the taxable year; or (2) $50,000. Requires the Indiana utility regulatory commission to adopt rules governing community solar facilities not later than July 1, 2026. Provides that, not later than 180 days after adoption of the rules, an electricity supplier shall begin: (1) allowing interconnection of the electricity supplier's facilities with community solar facilities in which three or more of the electricity supplier's customers have entered into a community solar subscription; and (2) crediting the electricity supplier's subscribing customers for the amount of electricity from the community solar facility for which the customer subscribes.
This bill, HB1371, aims to introduce a tax credit for individuals and businesses investing in solar energy systems. If passed, it would allow taxpayers to claim a credit of up to 25% of their investment or $50,000, whichever is less, against their state tax liability. The bill also mandates the Indiana Utility Regulatory Commission to establish rules for community solar facilities by July 1, 2026. Additionally, it requires electricity suppliers to connect with community solar projects where at least three customers participate and to credit these customers for the electricity generated by these projects.
The bill would primarily benefit those who invest in solar energy systems, encouraging renewable energy use. It would also impact electricity suppliers by requiring them to adopt new practices for community solar subscriptions. The current status of the bill is that it was introduced on January 13, 2025, and referred to the Committee on Ways and Means for further review.
As of January 13, 2025, the bill has been authored by Representative Boy and referred to the House Committee on Ways and Means. No further actions have been taken yet, and the bill is still in the early stages of the legislative process.