Tax Credits for Recycling in Indiana

Recycling helps conserve resources.

If you live in Indiana, understanding the various tax credits for recycling is important if you would like to save money on your next tax return. Like many states throughout the country, Indiana offers residents a number of tax incentives to promote recycling and to keep the ecosystems of the state intact and healthy. In order to receive the benefits of these tax credits, you must also understand which recyclable products can be applied to your tax return.

Business Construction and Improvement Tax Credits

The state of Indiana is committed to promoting environmentally friendly business practices. As a result, any business that purchases buildings, equipment and land involved in converting paper or other recyclable products into new materials is offered complete property tax exemptions for that property. Regardless of the amount that the building, renovations or equipment costs, whether very high or very low, the state allows all property tax for that location to be waived.

Electronics Recycling

Individuals or businesses that choose to recycle old computers, cell phones or other consumer electronics are allowed to claim tax credits on the salvage value of the unit, as determined by the recycling center. The salvage value is determined depending on the age of the unit, working condition and the various working parts associated with the particular model. Many centers will also offer free transportation for larger items to promote proper disposal of the items.

Auto Recycling

Individuals that choose to recycle old, broken down vehicles or vehicles that have been severely damaged in an accident can claim the salvage value of the vehicle on their taxes as well. To recycle a broken down vehicle, contact a local vehicle recycling center and arrange for a pick-up. Pick-ups on vehicles are free and do not detract from the amount you can claim in tax credits on your tax return. While most values are certainly much lower than the initial purchase price, they do save you significant money come tax time.

Vinyl Recycling

Indiana offers tax credits for recycling certain vinyl products. All vinyl home siding or vinyl wood products used for both interior and exterior products can be recycled at local recycling centers. If you have large amounts of vinyl that you would like recycled, the recycling center can send a vehicle to pick up the recyclable products free of charge. Once the recycling process has been complete, you will be issued a receipt for a tax credit for between $50 and $200, depending on the amount of product that was recycled. Your tax credit will be determined by the recycling center.

References

• U.S. Master Tax Law Guide; CHH Tax Law Editors; 2011