An Indiana income tax credit is available for vehicles powered with natural gas (CNG or LNG). It applies only to vehicles weighing more than 33,000 pounds and purchased from an Indiana dealer. The Natural Gas Commercial Vehicle Indiana Income Tax Credit is effective Jan. 1, 2014, through Dec. 31, 2016. It can be applied against the purchasers’ adjusted gross income tax, financial institutions tax, and/or insurance premium tax.

The amount of the credit is figured by multiplying the difference between the price of the qualified vehicle and the price of a similarly equipped vehicle that is powered by a gasoline or diesel engine by 50 percent. The credit is the lesser of this result or $15,000.

The total value of these tax credits granted to a single taxpayer in a taxable year is limited to $150,000. The total of all credits for all taxpayers in a taxable year is the lesser of either $3 million per year, or the amount of sales tax collected on fuel purchased to power natural-gas vehicles. Also, only 200 credits can be awarded on a first-come, first-served basis each year.

2014 Total Credits Awarded as of March 14
Total number of credits awarded out of 20021
Total amount of credits awarded$ 315,000

To claim the credit, a dealer or purchaser must complete the Commercial Natural Gas Vehicle Credit Form. After the department receives the form and verifies the credit, the taxpayer will receive a certification number. He or she will also receive instructions on how to claim the credit on his/her tax return. The credit will be awarded only to those who file a credit form, receive a confirmation number, and submit a tax return before the credit reaches its annual limit.

For more information, you can read Information Bulletin #109.

If you have any questions about this credit or how to claim it, please contact us at (317) 615-2630.