Indiana Propane Laws and Incentives
State Incentives
Alternative Fueling Station Grant Program
Effective July 1, 2009, the Alternative Fueling Station Grant Program, administered by the Indiana Office of Energy Development (OED), will offer 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 and compressed natural gas. 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 4-4-32.2)
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
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)
Alternative Fuel Vehicle (AFV) Decals
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. Vehicle decals must be purchased annually for all heavy-duty AFVs and for light- and heavy-duty AFVs owned by public or private utilities. 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)
