Electricity Laws and Incentives in Indiana
The list below contains summaries of all Indiana laws and incentives related to electricity.
Laws and Regulations
Certified Technology Park Designation
The Indiana Economic Development Corporation (IEDC) may designate an area as a certified technology park if certain criteria are met, including a commitment from at least one business engaged in a high technology activity that creates a significant number of jobs. The establishment of high technology activities and public facilities within a technology park serves a public purpose and benefits the public’s general welfare by encouraging investment, job creation and retention, and economic growth and diversity. High technology activities include advanced vehicles technology, which is any technology that involves electric vehicles, hybrid electric vehicles, or alternative fuel vehicles, or components used in the construction of these vehicles. For more information, see the IEDC Indiana Certified Technology Parks website.
(Reference Indiana Code 36-7-32)
Clean Vehicle Acquisition Requirements
Each state entity must purchase or lease a clean energy vehicle, unless the Indiana Department of Administration (Department) determines that the purchase or lease of the vehicle is inappropriate for its intended use, or the total cost of ownership of a clean energy vehicle is substantially more than a comparable non-clean energy vehicle. Additional exemptions apply. A clean energy vehicle is defined as a vehicle that operates on one or more alternative energy sources, including a rechargeable energy storage system, electricity, ethanol, biodiesel, hydrogen, natural gas, and propane. Before July 1, 2025, the Department must make recommendations to state entities regarding the procurement of clean energy vehicles. Each state entity must annually submit to the Department information regarding its use of clean energy vehicles.
(Reference House Bill 1194, 2024)
Electric Vehicle (EV) Deployment Impact Assessment
The Indiana 21st Century Energy Policy Development Taskforce (Taskforce) explores the impacts that fuel transitions and emerging technologies have on the Indiana electric grid. The Taskforce must, among other things, evaluate the impact of EV deployment on the electric grid capacity and reliability as well as EV charger ownership and responsibility. The Taskforce published a report of their findings and recommendations in October 2022.
(Reference Indiana Code 2-5-45.1)
Electric Vehicle (EV) Production Support
The EV Commission (Commission) is established to assess the EV market and labor force in Indiana. The Commission must:
- Evaluate EV production facilities and capabilities;
- Take inventory of skilled and non-skilled workers, training needs, and opportunities in the EV industry;
- Identify and leverage manufacturing competencies within the automotive industry to increase EV production; and,
- Identify opportunities for EV related research and development industry.
(Reference Indiana Code 9-13-3)
Electric Vehicle (EV) Registration Fee
EV owners are required to pay an additional registration fee of $221, and plug-in hybrid and hybrid electric vehicle owners are required to pay an additional registration fee of $74. EV fees will be updated annually based on the special fuel tax index factor. For more information, see the Indiana Bureau of Motor Vehicles Fee Chart
(Reference Indiana Code 9-18.1-5-12, 6-6-1.6-2(b), and C 6-6-1.6-3)
Lake Michigan Electric Vehicle (EV) Circuit
Indiana joined Michigan, Illinois, and Wisconsin (Signatory States) in signing the Lake Michigan EV Circuit Tour memorandum of understanding (MOU) to create an EV charging corridor along the Lake Michigan coastline that is intended to make it possible to seamlessly drive an EV across the Signatory States’ that border Lake Michigan. Signatory States are committed to:
- Coordinating on regional EV charging infrastructure siting and deployment strategies;
- Achieving a consistent EV charger user experience across Signatory States;
- Encouraging EV tourism around Lake Michigan;
- Removing barriers to EV adoption and reducing range anxiety;
- Identifying and developing best practices for EV charging, infrastructure optimization, information sharing, and electricity demand management;
- Providing reliable long-distance driving routes for EV drivers.
The Signatory States will maintain a working group composed of senior leadership from each state who will meet and report on the above actions. For more information, see the MOU.
Public Utility Definition
A person or joint agency that owns, operates, or leases electric vehicle chargers for use by the public is not defined as a public utility.
(Reference Indiana Code 8-1-2-1.3)
Regional Electric Vehicle (REV) Midwest Plan
Indiana joined Illinois, Michigan, Minnesota, and Wisconsin (Signatory States) in signing the REV Midwest memorandum of understanding (MOU) to accelerate vehicle electrification in the Midwest. Signatory States are committed to:
- Accelerate medium- and heavy-duty fleet electrification;
- Collaborate on regional electric vehicle (EV) charger siting and deployment analyses with a focus on commercial routes;
- Standardize regulations, messaging, and customer experience related to EVs across state lines;
- Evaluate opportunities for workforce development;
- Identify historically underserved communities for equitable EV charger development and EV adoption; and,
- Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet and report on the above actions. For more information, see the REV Midwest Partnership Announcement.
Utility Electric Vehicle (EV) Charger Pilot Program Authorization
Electric utilities may request approval from the Indiana Utility Regulatory Commission to implement a pilot program to evaluate the feasibility and design of large-scale EV charger deployment to support public-use EV adoption. Public-use EVs include electric school buses, electric transit buses, and EVs used to deliver goods and services to the public. Eligible pilot program proposals include those that:
- Install, own, or operate EV chargers or make-ready EV chargers for public-use EVs; and,
- Provide incentives or rebates to customers to encourage the purchase of EVs and installation of EV chargers.
Utilities must also include plans to install EV chargers in underserved and diverse communities.
(Reference Indiana Code 8-1-43)
Utility Electric Vehicle (EV) Planning
The Indiana Utility Regulatory Commission has the authority to promote the electrification of the transportation sector by designating specifics issues related to EV planning that each utility must include in its next integrated resource plan.
(Reference Indiana Utility Regulatory Commission Docket No. 45816)
Utility / Private Incentives
Commercial Electric Vehicle (EV) Charger Rebate - Duke Energy
Duke Energy offers rebates of up to $500 to commercial customers for the installation of Level 2 EV chargers at workplaces, multifamily housing, fleets, or publicly available locations. For more information, including application requirements and rebate amounts, see the Duke Energy Commercial Charger Rebate website.
Commercial Electric Vehicle (EV) Charger Rebate - Indiana Michigan Power
Indiana Michigan Power offers commercial, fleet, and multifamily housing customers a rebate of $250 per Level 2 EV charging port installed or five years’ worth of revenue credits to apply against construction costs of new business facilities to serve newly installed EV chargers. Incentives are available on a first-come, first-served basis. For more information, see the Indiana Michigan Power Charge at Work in Indiana website.
Electric School Bus and Infrastructure Rebate – Duke Energy
Duke Energy offers public and charter schools rebates of up to $197,000 for the purchase of electric school buses and associated charging infrastructure. Buses purchased with this rebate must participate in a vehicle-to-grid demonstration and study. Funding is available for up to six electric school buses. Rebates are available on a first-come, first-served basis. For more information, including eligibility requirements, see the Duke Energy Electric School Bus Charging website.
Electric Vehicle (EV) Charger Rebate – Applied Energy Services (AES) Indiana
AES Indiana offers residential customers a $250 rebate for the purchase of a new Level 2 EV charger. Customers must enroll in a managed charging program. For more information, including a list of eligible EV chargers, see the AES Indiana EV Managed Charging Program website.
Point of Contact
Katie Alspaugh
Electric Vehicle Program Manager
AES Indiana
Phone: 463-239-7514
katie.alspaugh@aes.com
Electric Vehicle (EV) Charger Rental Program – Duke Energy
Duke Energy allows residential and commercial customers to rent Level 2 and direct current (DC) fast chargers for a flat rate each month. For more information, see the Duke Energy EV Programs website.
Electric Vehicle (EV) Infrastructure Support
Indiana utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current (DC) fast chargers connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DC fast charger sites. For more information, including a list of participating utilities and states, see the NEHC website.
Electric Vehicle (EV) Time-Of-Use (TOU) Rate and EV Charger Rebate - Indiana Michigan Power
Indiana Michigan Power offers a TOU rate to residential customers who own or lease a qualified EV. Indiana Michigan Power may require customers to install a metering system that is capable of separately tracking EV charging. Residential customers that enroll in the EV TOU rate may also be eligible for a $500 rebate for the purchase of a Level 2 EV charger or for the pre-wiring necessary to support a Level 2 EV charger. For more information, see the Indiana Michigan Power Rates and Tariffs website.
Electric Vehicle (EV) Time-Of-Use (TOU) Rates - Applied Energy Services (AES) Indiana
AES Indiana offers a TOU rate to residential and business customers who own a licensed EV. Customers who are considering purchasing Level 2 EV chargers should contact AES Indiana to discuss the benefits and requirements of participating in the program. Only customers in AES territory are eligible. Restrictions apply. For more information, see the AES Indiana EVs website.
Point of Contact
Katie Alspaugh
Electric Vehicle Program Manager
AES Indiana
Phone: 463-239-7514
katie.alspaugh@aes.com
Residential Electric Vehicle (EV) Time-Of-Use Rebate – Duke Energy
Duke Energy offers a quarterly incentive of $50 to residential customers who charge their EV during off-peak hours. Customers may receive a maximum of $200 annually. Rebates are available on a first-come, first-served basis. For more information, including how to apply, see the Duke Energy Off-Peak Charging Credit website.
Small Business Electric Vehicle (EV) Time-Of-Use (TOU) Rate and EV Charger Rebate – IMP
Indiana Michigan Power offers a TOU rate to small commercial customers that own an EV. Small commercial customers that enroll in the EV TOU rate may also be eligible for a $500 rebate for the purchase of a Level 2 EV charger or for the pre-wiring necessary to support a Level 2 EV charger. Eligible small commercial customers must average less than 4,500 kilowatt-hours of electricity monthly. For more information, see the Indiana Michigan Power Charge at Work in Indiana website.
State Incentives
Diesel Vehicle Retrofit and Improvement Grants
The Indiana Department of Environmental Management (IDEM) administers the DieselWise Indiana grant programs to support projects that reduce diesel emissions. DieselWise provides grants ranging from $50,000 to $1,000,000 for projects throughout the state. Eligible applicants include private and public entities that operate diesel powered equipment. Eligible projects include replacing or converting a diesel vehicle or vehicle component with one that operates on alternative fuel, as well as installing exhaust retrofit technologies, idle reduction technologies, aerodynamic technologies, and low rolling resistance tires. For more information see the IDEM DieselWise website.
Indiana's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Indiana Department of Transportation (INDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Indiana’s NEVI planning process, see the INDOT EV Charging Infrastructure Network website. To review Indiana’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Medium- and Heavy-Duty Grant Program
The Indiana Department of Environmental Management (IDEM) allocates a portion of the Volkswagen (VW) Environmental Mitigation Trust funds for the replacement or repower of eligible on- and off-road vehicles and equipment. Eligible on-road vehicles and equipment include Class 4-8 trucks and Class 4-8 school, shuttle, and public transit buses. Eligible off-road vehicles and equipment include airport ground support equipment, ferries, forklifts, port cargo handling equipment, and freight-switcher locomotives. All vehicles and equipment must be certified or verified by the U.S. Environmental Protection Agency or the California Air Resources Board. Applicants proposing alternative fuel equipment or vehicle projects must identify the availability of fueling infrastructure. Additional terms and conditions apply. For more information, including current requests for proposals, see the IDEM Indiana VW Mitigation Trust Program website.
Vehicle Research and Development Grants
The Indiana 21st Century Research and Technology Fund provides grants and loans to support economic development in high technology industry clusters. Incentives are available for qualified alternative fuel technologies and fuel-efficient vehicle development and production. For more information, see the Indiana Venture Development website.
(Reference Indiana Code 5-28-16-2)
More Laws and Incentives
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