Expired, Repealed, and Archived Indiana Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Volkswagen (VW) Settlement Allocation

Archived: 06/10/2021

The Indiana Department of Environmental Management (IDEM) and the Indiana Volkswagen Environmental Mitigation Trust Fund Committee (Committee) are responsible for establishing a plan to allocate any funds Indiana receives from the VW Environmental Mitigation Trust. IDEM and the Committee will ensure that the funds are distributed in alignment with the purpose of the VW Environmental Mitigation Trust to offset oxides of nitrogen emissions from vehicles. For more information, and a list of projects eligible for funding, see the Indiana VW Mitigation Trust Program website. (Reference Executive Order 17-22, 2017)

Ethanol Blend Infrastructure Grants

Expired: 06/01/2019

The Indiana Office of Energy Development and the Indiana Corn Marketing Council administer the Hoosier Homegrown Fuels Blender Pump Program (HHF Program). The HHF Program provides grants to increase public fueling infrastructure availability for higher blends of ethanol. Funds are available to eligible applicants for 70% to 79% of the purchase price of E15 to E85 blender pumps and related hardware. Qualifying dispensers must be available for public use and must dispense higher ethanol blends for a minimum period of five years. The program is not currently accepting applications (verified verified May 2019). For more information about the application process, see the HHF Program website.

E85 Fuel Use Incentive

Expired: 01/01/2019

A political subdivision that purchases E85 for use in flexible fuel vehicles (FFVs) may be entitled to a monthly incentive payment of $33.33 for each FFV owned by the political subdivision for fewer than five years. The political subdivision is eligible if 75% of its motor vehicle fuel purchases were E85 in the previous month. A political subdivision is defined as a municipal corporation or special taxing district. This incentive expires January 1, 2019. (Reference Indiana Code 6-6-1.1-103, 8-14-2-8, and 36-1-2-13)

Residential Electric Vehicle Charging Incentive - NIPSCO

Expired: 12/31/2018

NIPSCO's IN-Charge At Home Electric Vehicle Program (Program) offers a reduced rate for plug-in electric vehicle charging during off-peak hours for those enrolled in the Program. The Program is in effect until December 31, 2018. For more information, see the NIPSCO IN-Charge Electric Vehicle Program website.

Natural Gas Tax Exemption for Public Transportation

Expired: 12/31/2017

Natural gas purchased by a public transportation corporation to fuel a vehicle used for public transportation is exempt from the state gross retail tax until December 31, 2017. (Reference Indiana Code 6-2.5-5-27)

Natural Gas Vehicle (NGV) Rebate for Fleets

Archived: 05/01/2017

Citizens Gas & Coke Utility (Citizens) offers rebates for qualified compressed natural gas (CNG) vehicle conversions or for the purchase of an original equipment manufacturer dedicated or bi-fuel CNG vehicle. Used NGVs may also qualify. Rebates are available to fleet operators on a case-by-case basis. Citizens will examine each project on the merits of providing the rebate based on hours of operation or miles driven, per vehicle, per year.

Public Electric Vehicle Supply Equipment (EVSE) Funding - NIPSCO

Archived: 05/01/2017

NIPSCO's IN-Charge Around Town Electric Vehicle Program (Program) offers funding for the cost of up to two public EVSE, specifically for universities, workplaces, apartments, governmental public areas, major transportation corridors, and commercial and retail locations. NIPSCO offers 50% of the cost to purchase and install qualified public EVSE, up to $3,000 for Level 2 and up to $37,500 for DC fast. The Program is in effect until January 31, 2017, and is available on a first-come, first-served basis. The Program has reached capacity as of March 2016, but applicants may join a wait list for funding. For more information, see the NIPSCO IN-Charge Electric Vehicle Program website.

E85 Retail Sales Reporting

Repealed: 04/27/2017

A retailer who dispenses E85 must report to the Indiana Department of State Revenue the total number of gallons of E85 sold from a metered pump. (Reference House Bill 1002, 2017, and Indiana Code 6-2.5-6 and 6-2.5-7-5)

Alternative Fuel Vehicle (AFV) Manufacturer Tax Credit

Expired: 12/31/2016

The Indiana Economic Development Corporation (IEDC) may award tax credits under the Hoosier AFV Manufacturer Tax Credit to foster job creation, reduce dependence on imported energy sources, and reduce air pollution resulting from the manufacture or assembly of light-duty AFVs in Indiana. AFV manufacturers are eligible for tax credits of up to 15% of qualified investments, which include expenditures in the state that are reasonable and necessary for the manufacture or assembly of AFVs. To be eligible, the manufacturer must compensate its employees at least 150% of the state's hourly minimum wage and agree to maintain operations for at least 10 years. Additional restrictions apply. For the purpose of this incentive, AFVs are defined as vehicles designed to operate on E85, biodiesel, natural gas, liquefied petroleum gas (propane), hydrogen, methanol, coal-derived liquid fuels, non-alcohol fuels derived from biological material, P-Series fuels, or electricity. IEDC must review and approved applications for this incentive. The credit applies to taxable years beginning after December 31, 2006, and before December 31, 2016. Unused credits may be carried forward for up to nine consecutive taxable years. Reference Indiana Code 6-3.1-31.9)

Natural Gas Vehicle (NGV) Tax Credit

Expired: 12/31/2016

Individuals and entities that place into service an NGV with a gross vehicle weight rating of more than 33,000 pounds may be eligible for a tax credit for 50% of the incremental cost of the NGV, up to $15,000. The vehicle must be purchased or leased from a dealer located in Indiana. One individual or entity may claim up to $150,000 in such credits per year. Other restrictions apply. The credit expires December 31, 2016. Unused credits may be carried forward for up to six consecutive taxable years. (Reference Indiana Code 6-3.1-34.6)

Community Alternative Fuel Vehicle (AFV) Fleet Grants

Archived: 04/30/2016

The Community Conservation Challenge (CCC) program, which the Indiana Office of Energy Development (OED) administers, offers grants ranging from $25,000 to $100,000 for community energy conservation efforts, including projects that deploy AFVs in fleets. Eligible entities include local governments, schools, businesses, universities, and non-profit agencies. For more information, see the OED CCC website.

Propane School Bus Grants

Archived: 11/01/2015

The Indiana Office of Energy Development (OED) administers the Propane School Bus Grant, which is available to Indiana public school corporations for the purchase of at least two new propane school buses. Applicants may receive a maximum grant of $10,000 per bus, up to $50,000 per applicant, toward the incremental cost. For more information, including the grant application deadline, see the OED Propane School Bus Grant website.

Plug-In Electric Vehicle (PEV) and Hybrid Electric Vehicle (HEV) Road Impact Fee Study

Archived: 05/31/2015

The Interim Study Committee on Road Impact Fees (Committee) will study issues related to the imposition of road impact fees on PEV and HEV users. The Committee must report its findings and recommendations to the legislative council by November 1, 2013. (Reference Indiana Code 2-5-36.3)

Repealed: 01/01/2015

The following was repealed by Public Law 190, 2014: A taxpayer that produces biodiesel at a facility located in Indiana is entitled to a credit of $1 per gallon of biodiesel that is used to produce blended biodiesel (diesel/biodiesel blends of at least 2% biodiesel). (Reference Indiana Code 6-3.1-27)

Biodiesel Blending Tax Credit

Repealed: 01/01/2015

The following was repealed by Public Law 190, 2014: A biodiesel blender located in Indiana may receive a credit of $0.02 per gallon of blended biodiesel produced at a facility located in Indiana. The Indiana Economic Development Corporation (IDEC) must review and approve applications for this incentive. The IEDC may grant a single taxpayer no more than $3 million total for all taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website. (Reference Indiana Code 6-3.1-27-9)

Biodiesel Production Tax Credit

Repealed: 01/01/2015

The following was repealed by Public Law 190, 2014: A biodiesel producer located in Indiana may receive a credit of $1.00 per gallon of biodiesel produced and used in biodiesel blends. The Indiana Economic Development Corporation (IEDC) must review and approve applications for this incentive. The IEDC may approve up to $5 million in credits for a single producer for all taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website. (Reference Indiana Code 6-3.1-27-8)

Ethanol Production Tax Credit

Repealed: 01/01/2015

The following was repealed by Public Law 190, 2014: An ethanol producer located in Indiana is entitled to a credit of $0.125 per gallon of ethanol produced, including cellulosic ethanol. The Indiana Economic Development Corporation must review and approve applications for this credit. The credit granted to a single taxpayer may not exceed the following amounts for all taxable years:

Tax Credit Annual Production
$2 million More than 40 million and less than 60 million gallons of grain ethanol
$3 million At least 60 million gallons of grain ethanol
$20 million At least 20 million gallons of cellulosic ethanol

Any unused credit may be carried forward for the following taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website.

(Reference Indiana Code 6-3.1-28)

Alternative Fuel Vehicle (AFV) Grant Program

Archived: 03/29/2014

The Alternative Fuel Vehicle Grant Program offers grants to counties, cities, towns, townships, or school corporations to purchase original equipment manufacturer (OEM) AFVs and for the cost of AFV conversions. Qualified entities may receive $2,000 for each OEM AFV purchased, and up to $2,000 for each AFV conversion. Eligible AFVs include dedicated and bi-fuel liquefied petroleum gas (propane) and compressed natural gas vehicles. The Indiana Office of Energy Development must review and approve applications for the grant program, and the grant funding awarded for all fiscal years may not exceed $1 million. The grant program is closed and applications are not currently being accepted (verified May 2013). (Reference Indiana Code 4-4-32.3)

Alternative Fueling Station Grant Program

Archived: 03/29/2014

The Alternative Fueling Station Grant Program provides grants of up to $20,000 for installing new alternative fueling stations or converting existing fueling stations to dispense alternative fuels. Eligible alternative fuels include liquefied petroleum gas (propane) and compressed natural gas. The Indiana Office of Energy Development must review and approve applications for the grant program, and the grant funding awarded for all fiscal years may not exceed $1 million. No funds are currently appropriated for this incentive (verified May 2013). (Reference Indiana Code 4-4-32.2)

E85 Use

Archived: 03/29/2014

As part of the Indiana Greening the Government Initiative, all fleet vehicles based in Indianapolis that are capable of using E85 must operate using E85 fuel whenever possible. Use of other biobased fuels and oils is also encouraged. (Reference Executive Order 05-21, 2005)

Natural Gas Vehicle (NGV) Safety Requirement

Archived: 08/01/2013

An individual may not operate an NGV on a highway outside the corporate limits of a municipality from a half hour after sunset to a half hour before sunrise unless the vehicle carries at least three red electric lanterns or three portable red emergency reflectors. NGVs are prohibited from carrying a flare, fuse, or signal produced by flame. (Reference Indiana Code 9-19-5-6)

Electric Vehicle Supply Equipment (EVSE) Incentive - Duke Energy

Archived: 12/31/2012

As part of Indiana's Project Plug-IN initiative, Duke Energy is conducting a two-year pilot program that provides qualified residential and commercial customers with Level 2 EVSE. Duke Energy will install the EVSE at the home (covering up to $1,000 in installation costs) or business (covering up to $1,500 in installation costs) and service the equipment for the duration of the pilot program. Duke Energy will remotely access the EVSE to collect information in an effort to better understand charging habits and the impact on the power grid. At the end of the pilot program, participants will be able to keep the EVSE at no additional cost.

E85 Fuel Retailer Tax Credit

Archived: 04/01/2012

An E85 retailer may deduct $0.18 from the required state gross retail tax for every gallon of E85 sold before July 1, 2020. Reimbursement is contingent upon available funding from the Retail Merchant E85 Deduction Reimbursement Fund (Fund), which the Indiana State Budget Agency maintains. On July 1 of each year, the Indiana Corn Marketing Council (Council) will ensure that the Fund totals at least $500,000. As necessary, the Council will transfer the difference into the Fund. (Reference Indiana Code 6-2.5-7-5, 6-6-1.1-103, 15-15-12-30.5, and 15-15-12-32.5)

Support for Use of Higher Ethanol Blends

Archived: 04/01/2012

The Indiana House supports education related to the use of higher ethanol blends in non-flexible fuel vehicles, citing studies that show environmental and economic benefits of using higher ethanol blends. The House also encourages the U.S. Environmental Protection Agency to authorize the use of higher ethanol blends in non-flexible fuel vehicles. (Reference House Resolution 77, 2009)

Regional Biofuels Promotion Plan

Archived: 01/01/2012

Indiana has joined Iowa, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:

  • Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
  • Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
  • Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
  • By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.

Biofuel Infrastructure Grant Program

Expired: 01/01/2011

The Indiana State Department of Agriculture (ISDA) may award grants of up to $20,000 to qualified individuals or entities that purchase, convert, or retrofit any part of an existing fueling station for the purpose of dispensing E85. ISDA may also award competitive grants for 50% of qualified costs, up to $100,000, for installing infrastructure used to produce or distribute biofuels. Biofuels are defined as agriculturally-based sources of renewable energy, such as crops and aquatic plans, converted into a liquid or gaseous fuel. ISDA must review and approve applications for this grant program. ISDA may not award more than one grant per fueling station or infrastructure project, and the total grant funding awarded for all fiscal years may not exceed $1 million. (Reference House Bill 1261, 2010, and Indiana Code 15-11-11)

Biodiesel Retailer Tax Credit

Expired: 12/31/2010

Through December 31, 2010, a taxpayer that is a fuel retailer and distributes blended biodiesel for retail purposes is entitled to a credit of $0.01 per gallon of blended biodiesel distributed. As of August 2010, no funds have been appropriated for this incentive. (Reference Indiana Code 6-3.1-27-10)

Alternative Fuel Vehicle (AFV) Grant Program

Expired: 09/02/2006

The Indiana Office of Energy and Defense Development (OED) administers the AFV Grant Program. The AFV Grant Program offers up to $75,000 in cost-share grants to vehicle fleets for the use of compressed natural gas (CNG), liquid petroleum gas (LPG), or electricity as alternatives to conventional gasoline or diesel fuel. Grants are awarded for refueling infrastructure and vehicle purchase or conversion. Eligible project costs include public-access refueling infrastructure (CNG, LPG, and hydrogen), vehicle conversion costs (CNG and LPG), and incremental costs of original equipment manufacturer AFVs (CNG, hydrogen, and hybrid-electric). Strong preference will be given to applicants who are members of a Clean Cities Coalition and to projects that are located in an Indiana county in nonattainment status for ozone or particulate matter. Applications must be received by OED or postmarked by September 1, 2006, in order to be eligible. Projects must be completed by May 31, 2007, and each grantee must commit to use the alternative fuel until December 31, 2008.

Alternative Fuel Vehicle (AFV) Grants

Expired: 03/31/2006

The Office of the Lieutenant Governor, Energy Group administers the AFV Grant Program for projects that involve the purchase of AFVs, conversion of conventionally fueled vehicles to operate on alternative fuels, installation of AFV refueling facilities, purchase and use of renewable transportation fuels, or combinations of these purposes. AFVs include vehicles capable of operating on electricity, ethanol, propane, hydrogen and natural gas, as defined by the Energy Policy Act of 1992 (EPAct). They do not include hybrid electric vehicles. Grant amounts range from $2,000 to $50,000 and are determined according to the following formulas:

  1. For the purchase of OEM AFVs for which the manufacturer produces a conventionally fueled equivalent, 80% of the incremental cost is eligible for funding.
  2. For the purchase of OEM AFVs for which the manufacturer does not produce a conventionally fueled equivalent, 30% of the overall cost of the vehicle is eligible for funding.
  3. For the conversion of vehicles to run on an alternative fuel, 80% of the cost of conversion is eligible for funding.
  4. For the purchase and installation of refueling facilities for an alternative fuel to be used in vehicles, 50% of the facility cost is eligible for funding.
  5. For the purchase and use of E85 or biodiesel in blends of 20% or higher, 50% of the incremental cost is eligible for funding.

Project budgets may include funding from third party sources, but the applicant itself must directly contribute at least 20% of the project's total budget. If a grant is awarded, the applicant will receive funds on a reimbursement basis only. Businesses, non-profit institutions and units of local government (including public school systems) are eligible to apply. AFV grants will not be awarded to fund research projects. Entities that are required to purchase alternative fuel vehicles under the Energy Policy Act of 1992 are not eligible for grants under this program.