Electric Vehicles: Indiana Laws
Certified Technology Park Designation
The Indiana Economic Development Corporation (IDEC) 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 purchase or lease would cost 20% 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 the following: a rechargeable energy storage system, hydrogen, natural gas, and propane. Each state entity must annually submit to the Department information regarding its use of clean energy vehicles. (Reference Indiana Code 5-22-5-8.5)
Electric Drive Vehicle Registration Fee
Battery electric vehicle owners are required to pay an additional registration fee of $150, and plug-in hybrid and hybrid electric vehicles are required to pay an additional registration fee of $50. The Indiana Bureau of Motor Vehicles will determine new fee amounts every five years. (Reference Indiana Code 9-18.1-5-12)
Electrical Vehicles: Indiana 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. The Clean Diesel Across Indiana program provides grants ranging from $10,000 to $75,000 for projects throughout the state. Eligible applicants include private and public entities that operate equipment serving the public, including private bus fleets and sanitation fleets. 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.
Medium and Heavy Duty Grant Program
The Indiana Department of Environmental Management (IDEM) allocates a portion of its designated funds from the Volkswagen Environmental Mitigation Trust for the replacement or repower of eligible on-road 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, forklifts, port cargo handling equipment, and freight-switcher locomotives. Applicants requesting funding must be registered with the Indiana Secretary of State. 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)
EVs use a battery to store the electrical energy that powers the motor. EV batteries are charged by plugging the vehicle into an electric power source. Although electricity production may contribute to air pollution, the U.S. Environmental Protection Agency (EPA) considers EVs to be zero-emission vehicles because their motors produce no exhaust or emissions. Since EVs use no other fuel, they help reduce petroleum consumption.
Currently available EVs have a shorter range per charge than most conventional vehicles have per tank of gas. EV manufacturers typically target a minimum range of 100 miles. According to the U.S. Department of Transportation’s Federal Highway Administration, 100 miles is sufficient for more than 90% of all house- hold vehicle trips in the United States.
Light-duty HEV, PHEV, and EV models are currently available from a number of auto manufacturers, with additional models expected to be released in coming years. There are also a variety of medium and heavy-duty options available.
Retro and reinstated tax credits for AF/Infrastructure SD
In 2013, President Obama signed Public Law 112-240, the American Taxpayer Relief Act of 2012. The resulting changes are available for review on the Alternative Fuels Data Center (AFDC) Federal Laws and Incentives page. Specifically, the Act: Expands the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit to include a credit for eligible two- and three-wheeled plug-in electric drive vehicles, valid through December 31, 2013.