Indiana Electric Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) Grant Program
Effective July 1, 2009, the Alternative Fuel Vehicle Grant Program, administered by the Indiana Office of Energy Development (OED), will offer grants to counties, cities, towns, townships, or school corporations to purchase Original Equipment Manufactured (OEM) AFVs and for AFV conversions, A recipient may be awarded $2,000 for each OEM AFV purchased, and up to $2,000 for each AFV conversion. Applications for the grant program must be reviewed and approved by OED, and the amount of grants awarded for all fiscal years may not exceed $1 million. (Reference House Bill 1554, 2009, and Indiana Code 4-4-32.3)
Alternative Fuel Vehicle (AFV) Manufacturer Tax Credit
The Indiana Economic Development Corporation (IEDC) may award tax credits under the Hoosier AFV Manufacturer Tax Credit to foster job creation, reduce dependency on imported energy sources, and reduce air pollution resulting from the manufacture or assembly of AFVs in Indiana. AFV manufacturers are eligible for tax credits of up to 15% of the qualified investment for which the credit is claimed. Qualified investments include expenditures in the state that are reasonable and necessary for the manufacture or assembly of AFVs. For the purpose of this incentive, AFVs are defined as vehicles designed to operate on E85, natural gas, liquefied petroleum gas, hydrogen, methanol, coal-derived liquid fuels, non-alcohol fuels derived from biological material, P-Series fuels, or electricity. Applications for this incentive must be reviewed and approved by the IEDC. The credit applies to taxable years beginning after December 31, 2006, and before December 31, 2012. Unused credits may be carried forward for up to nine consecutive taxable years. (Reference Indiana Code 6-3.1-31.9)
Vehicle Research and Development Grants
The Indiana 21st Century Research and Technology Fund is administered by the Indiana Economic Development Corporation and provides grants and loans to support proposals for economic development in areas including alternative fuel technologies and fuel-efficient vehicle production. (Reference Indiana Code 5-28-16-2)
State Laws and Regulations
Clean Vehicle Acquisition Requirements
Beginning January 1, 2010, a vehicle that is purchased or leased by a state entity must be a clean energy vehicle, unless the Indiana Department of Administration determines that the purchase or lease of the vehicle is inappropriate for its intended use, or the purchase or lease would cost 10% more than a comparable non-clean energy vehicle. A clean energy vehicle is defined as a vehicle that operates on one or more of the following energy sources: a rechargeable energy storage system; hydrogen; compressed natural gas (CNG); or liquefied natural gas (LNG). The Department of Administration will adopt rules or provide guidelines for the preferential purchase or lease of clean energy vehicles manufactured in Indiana or containing parts manufactured in Indiana. (Reference House Bill 1554, 2009, and Indiana Code 5-22-5-8.5)
Low-Speed Vehicle Access to Roadways
A low-speed vehicle is defined as a four-wheeled electric vehicle capable of achieving a maximum speed of 35 miles per hour (mph) that meets the standards in Title 49 of the Code of Federal Regulations, sections 571.500. An individual may not operate a low-speed vehicle on a highway that has a posted speed limit greater than 35 mph. (Reference Indiana Code 9-21-5-8.5 and 9-13-2-94.5)
Certified Technology Park Designation
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 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)
