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Category: Indiana

Indiana Insulation Deduction


Indiana no longer allows the insulation deduction effective tax year 2016.


You may be able to take this deduction if you installed new insulation in your Indiana home during a prior tax year.  


Insulation includes weather stripping, double pane windows, storm doors and storm windows. To take this deduction the following requirements must be met:

* The insulating items must have been installed in your principal place of residence located in Indiana.

* The part of your home where the insulating items were installed must have been built before January 1, 2011.

* The insulating items must be an upgrade and not a replacement or like-kind item (e.g. replacing a double pane window with a new double pane window does not qualify, but replacing a double pane window with a triple pane window does qualify), and

* The deduction must be taken in the year the insulating items were installed.


You are allowed to deduct the actual cost of qualifying items, including labor, up to a maximum of $1,000.

IMPORTANT: When claiming this deduction, maintain with your records the following information (as the department can require you to provide this information at a later date):

* Item(s) purchased

* Purchase price

* Place of purchase

* Date of purchase

* Date of installation

* Amount paid for labor (you cannot include the cost of labor that you did yourself)


For more information about this deduction, see Income Tax Information Bulletin #43.