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Energy Efficient Home Credit (45L) in Indiana 2026

Calculate your energy efficient home credit (45l) tax savings in Indiana. With Indiana's 3.05% top state tax rate, your combined savings are higher.

Indiana Tax Overview

State Income Tax
3.05%
flat
Sales Tax
7%
avg combined: 7%
Property Tax Rate
0.83%
Median Income
$61,944

Low flat 3.05%. County taxes add 0.5-2.96%. Uses federal AGI. Property tax caps 1-3%.

Indiana Income Tax Brackets (Single)

3.05%
$0 +
Your bracket
$5,000
Est. Total Savings
$5,000
Max Deduction
Tax Credit
Deduction Type
25.1%
Combined Tax Rate

Energy Efficient Home Credit (45L) Savings Calculator for Indiana

$
$

Federal Savings

$5,000

22% bracket

Indiana State

$0

3.05% rate

Total Savings

$5,000

25.1% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Indiana

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 3.05% Indiana state tax on top of federal savings.

Eligibility Requirements

Builders or developers of new energy-efficient homes

  • 1$2,500 for ENERGY STAR certified homes
  • 2$5,000 for DOE Zero Energy Ready homes
  • 3Must meet prevailing wage requirements for full credit

Indiana residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 3.05%.

Common Mistakes to Avoid

  • !Not obtaining required certifications before claiming
  • !Missing prevailing wage requirements
  • !Failing to meet the 50% energy savings threshold
  • !Forgetting to claim the deduction on your Indiana state return (missing up to 3.05% additional savings)

Indiana Filing Tips

Account for county tax on top of 3.05%. Indiana uses federal AGI with state adjustments. Property taxes are capped. College and teacher credits available.

Required Tax Forms

Form 8908Form 3800

File these forms with your federal tax return to claim the energy efficient home credit (45l). Indiana may require additional state-specific forms.

Other Tax Deductions in Indiana

Mortgage Interest Deduction

Housing

~$3,985
est. savings

Property Tax Deduction

Housing

~$2,505
est. savings

Home Office Deduction

Housing

~$1,366
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,555
est. savings

PMI Premium Deduction

Housing

~$1,253
est. savings

Mortgage Points Deduction

Housing

~$2,277
est. savings

Energy Efficient Home Credit (45L) in Neighboring States

Michigan

4.25% top rate (flat)

~$2,500
-2,500 vs Indiana

Ohio

3.5% top rate (progressive)

~$2,500
-2,500 vs Indiana

Kentucky

4% top rate (flat)

~$2,500
-2,500 vs Indiana

Illinois

4.95% top rate (flat)

~$2,500
-2,500 vs Indiana

Tax Calculators for Indiana Cities

IndianapolisFort WayneEvansvilleSouth BendCarmelFishersBloomingtonHammondLafayetteNoblesville

Calculate Your Full Tax Savings in Indiana

Use our free tax calculators to optimize your entire tax return for Indiana.

Income Tax CalculatorIndiana Income TaxFull Energy Efficient Home Credit (45L) Guide

Frequently Asked Questions

How much can I save with the Energy Efficient Home Credit (45L) in Indiana?

In Indiana, the energy efficient home credit (45l) can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in Indiana state tax savings at the 3.05% marginal rate. The national average savings is $2,500/year.

What is the Indiana state income tax rate?

Indiana has a flat income tax system with a top rate of 3.05%. Low flat 3.05%. County taxes add 0.5-2.96%. Uses federal AGI. Property tax caps 1-3%.

Who qualifies for the Energy Efficient Home Credit (45L) in Indiana?

Builders or developers of new energy-efficient homes. The eligibility requirements are the same whether you live in Indiana or another state, as this is a federal tax credit. However, your total savings will vary based on Indiana's 3.05% top state tax rate.

What tax forms do I need to claim the Energy Efficient Home Credit (45L) in Indiana?

To claim the energy efficient home credit (45l), you need to file Form 8908 and Form 3800 with your federal return. Indiana residents should also check if the state allows this deduction on their state return for additional savings of up to 3.05%. Filing status affects your deduction limits and tax bracket.

Is the Energy Efficient Home Credit (45L) better in Indiana than in states without income tax?

Yes, Indiana residents benefit more because the state's 3.05% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 25.1% means more savings per dollar deducted.

What is the standard deduction in Indiana for 2026?

Indiana's standard deduction is $0 for single filers and $0 for married filing jointly. Account for county tax on top of 3.05%. Indiana uses federal AGI with state adjustments. Property taxes are capped. College and teacher credits available.

Related Calculators

Mortgage Interest Deduction in Indiana

Avg savings: $3,500/year

Property Tax Deduction in Indiana

Avg savings: $2,200/year

Home Office Deduction in Indiana

Avg savings: $1,200/year

Home Energy Tax Credit in Indiana

Avg savings: $1,800/year

Residential Solar Tax Credit in Indiana

Avg savings: $7,500/year

Military Moving Expenses in Indiana

Avg savings: $4,000/year