The list below contains summaries of all Indiana incentives and laws related to Biodiesel.
The Indiana Economic Development Corporation administers the Indiana 21st Century Research and Technology Fund, which provides grants and loans to support proposals for economic development in high technology industry clusters. Incentives are available for qualified alternative fuel technologies and fuel-efficient vehicle production. (Reference Indiana Code 5-28-16-2)
A biodiesel producer located in Indiana may receive a credit of $1.00 per gallon of biodiesel produced. The Indiana Economic Development Corporation (IEDC) 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; this maximum incentive may be increased to $5 million with prior approval from IEDC. As of March 2011, no funds have been appropriated for this incentive. (Reference Indiana Code 6-3.1-27-8)
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 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. As of March 2011, no funds have been appropriated for this incentive. (Reference Indiana Code 6-3.1-27-9)
A governmental body, state educational institution, or instrumentality of the state that performs essential governmental functions on a statewide or local basis is entitled to a 10% price preference for the purchase of fuels containing at least 20% biodiesel (B20) by volume or fuels that are primarily ester-derived (other than alcohol) made from biological materials, such as oilseeds and animal fats, for use in operating compression and ignition engines. (Reference Indiana Code 5-22-15-1, 5-22-15-7, and 5-22-15-19)
Biodiesel blends of at least 20% (B20) that are used for personal, noncommercial use by the individual that produced the biodiesel portion of the fuel are exempt from the $0.16 per gallon license tax. The maximum number of gallons of fuel for which the exemption may be claimed is based on the percentage volume of biodiesel in each gallon used. (Reference Indiana Code 6-6-2.5-1.5, 6-6-2.5-28, and 6-6-2.5-30.5)
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:
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.
Biodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meet ASTM specification D6751. Blended biodiesel is a blend of biodiesel with petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least 2%. (Reference Indiana Code 6-3.1-27-1, 6-3.1-27-2, and 6-6-2.5-1.5)
Whenever possible, governmental entities and state educational institutions must fuel diesel vehicles with biodiesel blends containing at least 2% biodiesel (B2), gasoline vehicles with mid-level ethanol blends between 20% and 73%, and flexible fuel vehicles with E85. This requirement does not apply if such blends are prohibited under federal regulations or have not been approved by the vehicle manufacturer. Additional exemptions apply. (Reference Indiana Code 5-22-5-8 and 21-31-9-3)
The Indiana Economic Development Corporation 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. (Reference Indiana Code 36-7-32)
An individual may place alternative fuel into the fuel tank of a motor vehicle only if the vehicle has a valid alternative fuel decal affixed to the front windshield or the individual has submitted an application for a decal within the last 30 days. All heavy-duty AFVs and light-duty AFVs that public or private utilities own require vehicle decals. The cost of the decal varies according to vehicle type and the gross vehicle weight rating. The annual fee may be prorated if the vehicle is newly purchased, registered in Indiana, or converted to operate using an alternative fuel. (Reference Indiana Code 6-6-2.1-203 through 6-6-2.1-206)
Point of Contact
Fuel Tax Section
Indiana Department of Revenue
Phone: (317) 615-2630
http://www.in.gov/dor