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Dear Editor:
With our state legislature passing SB1 (Senate Bill 1, now Senate Enrolled Act 1), homeowners have been told that there will be significant reductions to their property taxes.
What wasn’t touted was the elimination of significant property tax deductions for energy conservation.
If you are a homeowner that invested in wind, solar, hydroelectric, and/or geothermal energy saving/generating systems, you likely have received a letter from your County Auditor informing you that the property tax deduction you received for installing those systems has been eliminated through SEA 1. The change to the Indiana Code was subtle as the deductions described in IC 6-1.1-12-27 through 36 now apply “only to property taxes imposed for an assessment date before January 1, 2025.”
I understand how our legislators were looking for means to offset the revised supplemental homestead deductions. However, eliminating the homeowners’ deductions that incentivized energy conservation investments seems truly shortsighted. One could argue that the incentive to invest in energy conservation could be a lower electric bill or, simply, reducing one’s “carbon footprint.” However, Indiana had shown itself as being forward-thinking by providing further incentives through property tax deductions for such energy conservation investments. Regrettably, such forward thinking has now taken a u-turn.
I believe it is important for me to disclose why I am writing this letter to the editor. I am a homeowner who invested in a geothermal heating/cooling system for my home. It would be appropriate to answer the question of whether I would have invested in the geothermal system had no property tax incentive existed. My answer is, “Yes, I would have made the investment regardless of any property tax incentive.”
I believe energy conservation is important for many reasons. However, I suspect there are many homeowners who might need financial incentives to make large financial investments in energy conservation equipment such as wind, solar, or geothermal energy saving/generating systems. This is where Indiana’s property tax deductions for such systems played a crucial role.
I’m disappointed that these property tax incentives for energy conservation have now been eliminated.
Parvin Gillim
Sheridan